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may 14 1943
Final
Edition
ESTABLISHED
•
O
YEARS
In
2 Sections-Section
1
©
ommatcial
Financial
U. S.
Reg.
Volume
157
Number 4176
New
CersCen Elected Head
■
conducted by mail ballot, re¬
sulted on May
8
in
the elec-
tion
of
E.
Support
Price 60 Cents
By OLIN GLENN SAXON
President of
i
:
■
:
and
*
Desirable For All Concerned
Stockholders As Well As Management Would Benefit
Pennsylvania Economy League
7'.
i
:,; 7"
Copy
a
Simplification Of Proxy Rules
A 300 Billion Dollar Debt?
The 50th annual election of of¬
ficers held by the New York State
Bankers Association, and the first
ever
Office
York, N. Y., Thursday, May 13, 1943
Can The United States
Of H. Y. State Bankers
Pat.
By CLARENCE O. DIMMOCK, Jr.
Dimmock, Snyder & Van Patten
r\V;7';
■='■7
Professor of Economics,
Yale University
Now that a large crop of proxy statements for annual
stockholders meetings has been reaped this Spring under the
estimated, the U. S.. will spend about 62%
new
proxy rules (effective Jan. 15, 1943) of the Securities
National Bank of its national income for war
purposes, the United King¬
and Exchange Commission, the proof of the
and Trust Co.,
pudding is at
dom 69% of its income, New Zealand, 63%, Canada 45%,
New
York
hand and it appears timely to analyze, in the light of hind¬
and Australia 40%.
City, to the
sight, the palatableness of the dish which both the manageAss ociation's
Estimates of the post-war national debt of the United
ments
and
p r e s i d ency. States
stockholders
be cut 25% if the executive sal¬
vary widely, ranging from $250,M r,
Gersten
of
ary is $20,000 a year or more.'"
corpora¬
will take of¬ 000,000,000 to $500,000,000,000, depending
tions are cur¬
[The following is an excerpt
fice on May upon the length of the war.
In any case
from the recent proxy statement
rently eating.
14, succeeding the debt, in honest money, will be an allof American Smelting and Re¬
The follow¬
John P. Myers,
time world's record.
It staggers all imaging is a ran¬
fining Company.]
v.'7.v ; 7,
President
o f
dom harvest
ination as well as the comprehension of 1
"Apart from the remuneration
the Plattsburg
Chester
Ger-
sten, President
of
the
In 1943, it is
Public
,
„
National Bank
E.
and Trust
Co.,
Plattsburg.
Chester Gersten
}l Other officers elected include C.
George Niebank, President, Bank
of
who does not believe in the "deficit
spending'- and "we will owe it to our¬
selves" doctrines, preached by Keynes, of
anyone
of
tomac.
Jamestown, Vice-President; and
Burnham : Guild,
President,
First National Bank and Trust Co.,
Walton, Treasurer.
The Association, whose mem¬
bership of 854 includes 671 of the
V:.'%■;v%;:v'--'-
1942,
pro x y
tatements
to
used
expenditure of $2,000,000,000
the world has
once
again settled down to relative stability.
it
that the
holder's
the
to
vote
following
[The
proposal
recent
1761)
cor¬
the
the
upon
of directors.
election
on page
INDEX
the respective
merely
wanted
of
porations
aggre¬
Claren.ce Dimmock
man¬
stockholders
remuneration
(Continued
be
borne in mind
agements
.
ceived remuneration aggregat¬
ing $180.00 from General Cable
these
should
.
by officers and direc¬
above
stated, during
Kenneth C. Brownell
$240.00
from
General
Cable Corporation and $160.00
from Revere Copper and Brass
Incorporated; Charles Earl .re¬
the an¬
alysis appear¬
ing below. In
excerpts
.
received
point
reading
as
gating
up
reported current rate of Federal
per week,
some estimate that the debt will be $240,State's 697 commercial banks and 000,000,000 on June 30, 1944, .with $70r
trust companies, voted last Janu¬
Dr. O. Glenn Saxon
000,000,000 to $100,000,000,000 more for
ary to abandon plans for its an¬
each year of global war thereafter.
nual convention in order to con*
Y
It is quite doubtful if we can actually spend $2,000,000,serve transportation facilities and
000 per week. But it is reasonable to assume that the war
manpower needed in the prosecu(Continued on page 1772)
will necessitate a total debt of $300,000,000,000 to $350,-
Illinois
tors
s
At the
000,000,000 by the end of 1945 or before
received
which Will be
Jv'vS;^7 v '%:•/
77';
ex¬
cent
London, and Hansen, of Harvard, and prac¬
ticed so fervently of. late years on the Po¬
E,
few
a
cepts from re¬
proxy
Page
Bank
and
Canadian
is
stock¬
a
contained
statement
in
of
Standard Brands, Inc.]
7
"
'Resolved that if the Stand¬
Insurance
Stocks....... 1760
Calendar of New Security
Securities
investment Trusts
Flotations. 1775
.......
.1761
.........
..............
.
1760
Municipal News and Notes.......... 1774
Our Reporter On
Our
Governments
1762
Reporter's Report..............1771
.
Assuming a final gross debt of, say, $350,000,000,000,
gigantic sum, the equivalent of our entire national
Special material and items of wealth in 1940, be redeemed in money of present or pre-war
interest with reference to dealer
purchasing power, or will it be repudiated directly or in¬
activities in the above State starts
flated out indirectly in whole or in part?
on page 1758.
i
Corporates-Municipals
can
be paid, and will be, if our people
have the moral fibre and economic good sense to do it.
If
x
QUICK ACTION ON DESIGN
this
The
answer
is, it
(Continued
AND CONSTRUCTION
also
-
can
1764)
on page
ard
Brands
Incorporated
not
declare
a
least
200
mon
stock
dividend
share
a
for
on
its
fiscal
the
does
of
at
com¬
CONSTRUCTORS
WILLIAM STREET
NEW YORK
..........
1757
1770
Salesman's
Corner...... .1771
Securities
Tomorrow's Markets—Walter
Says
Whyte
...1756
(provided the 200 a snare
earned), that all executive
salaries of the Standard Brands
Incorporated, parent company
or any of its subsidiaries shall
Bond
Victory
is
with
Sanderson & Porter
Chicago
..
the chase
national bank
FINANCING and VALUATIONS
52
>
1942
is
:
MANAGEMENT PROBLEMS
ENGINEERS and
.
Real Estate Securities
year
SURVEYS AND REPORTS
lit connection
Securities
Railroad
Whatever the Cost
individual series of
NEW
INVESTMENT
SECURITIES
HUGH
64 Wall Street, New York
BOSTON
PHILADELPHIA
Albany
Buffalo
Pittsburgh
Williamsport
Troy
Syracuse
Dallas
Broaden your customer
for Banks, Brokers
service with Chase
and Dealers
correspondent
YORKSJOCKS, INC
Prospectus
Established 1927
San Francisco
Established 1856
Service
Buy More War Bonds
R. H. Johnson & Co.
OF THE CITY OF NEW YORK
Brokerage
W.
on
LONG
Request
and
COMPANY
INCORPORATED
Hardy & Co.
Members New
15 EXCHANGE PLACE
634 SO. SPRING ST.
JERSEY CITY
LOS ANGELES
facilities
Members New York Stock Exchange
York Curb Exchange
New York
30 Broad St.
Tele. NY 1-733
Tel. DIgby 4-8400
Member Federal Deposit
Insurance
Corporation
H. Hentz & Co.
Actual Trading Markets, always
Members
New
New
Stock
Curb
York
York
Purolator
AVIATIONS
Products, Inc.
RAILS
Federal Machine and
Exchange
Exchange
Exchange
Inc.
Chicago Board
of Trade
New Orleans Cotton Exchange
York
New
Exchange,
INDUSTRIALS
N. Y. Cotton
Exchange Bldg.
Welder Co.
Kobbe, Gearhart & Co.
NEW YORK
DETROIT
MEXICO,
GENEVA,
D.
P.,
PITTSBURGH
MEXICO,
SWITZERLAND
REYNOLDS & CO.
INCORPORATED
Members
N.
Y.
Security Dealers
45 Nassau Street
Tel.
REctor 2-3600
Ass'n
New York
Teletype N. Y. 1-576
Philadelphia Telephone:
NEW YORK CITY
'
other Exchanges
Basic Reports upon request
CHICAGO
WALL STREET
99
Cotton
Commodity
And
LAMBORK & CO.
Enterprise 6015
Members New York Stock Exchange
120 Broadway
New York. N. Y.
Telephone: TtEctor 2-7400
Bell
Teletype NY
1-635
HART SMITH & CO.
Exports—Imports—Futures
Members
New York Security Dealers
52 WILLIAM ST., N.
Y.
SUGAR
Assn.
HAnover 2-6980
-
Bell Teletype NY
New York
1-395
Montreal
Toronto
DIgby 4-2727
& FINANCIAL CHRONICLE
THE 1 COMMERCIAL
1754
-
•
■
Thursday, May 13, 1943
•
;Trading Markets in:
We Maintain Active Markets in V. S. FUNDS
Farnsworth Television
for '
Alabama Mills
United Gas
CANADIAN INDUSTRIALS
Liberty Aircraft
Nu-Enamel
United Gas Improvement
Bought
Members
40
y
'
1920
Security
York
New
Members N. Y. Stock Exchange and Other
Ass'n
Dealers
Goodbody & Co.
:
Telephone
BELL TELETYPE NY
BArclay
7-0100
Stock
Teletype NY
-
f"
Elk Horn Coal Com. & Pfd.
Tel.
REctor
on
and Ryan,
Mr. Hill
Segal Lock & Hard. Pfd.
the Gold
expert, Dr. E. W. Kemmerer, of Princeton, N. J.
plan for an "International Clearing Union" drawn up by Lord
(J. M.) Keynes and sponsored by^
—
—
the British, one avowed purpose complete management of money,
being "to supplant gold as a gov- In a modern age it is called "un-
Mitchell & Company
Stock Exchange
B^adway, N. Y.
factor."
Lines of battle,
therefore, appear to be drawn be-;
tween those, like Dr. Kemmerer,
who cling to gold, and those, like
Lord
Keynes,
who
want
discretionary monetary
powers
to
"correct a potential
deficiency,"
Y. 1-1227 >
To Dealers
only
Copper Canyon Mining
Data
or
request
on
an
even
excess
at the
"of world pur-
What, let us ask
chasing power."
that
outset, is claimed to be the
with
the
gold standard
makes
people
want
to
leave
Cuba Co. $1 Par
it?
matter
50c—70c
Cuban Atlantic Sugar
A number of faults
Wanted
at
Prices
Net
W. J. McCahan Sugar
gold
standard.
Pfd.
Jersey City, N. i. |
It
critics of the
is said to be
scientific."
But the main complaint is that the gold standard
causes such cyclical' disturbances
as that of 1929, a charge which we
will now examine in detail,
It must be admitted at once
that no economic product, under
any system of free enterprise, ineluding gold and money, can be
free from cycles of production,
Somebody has to estimate the
quantities which normal demand
will
absorb
and,
our £ fallible
human nature being what .it so
unfortunately is, these estimates
are
quite likely to be wrong,
value,
fluctuating either overrunning the correct
with the discovery of new mine amount or falling short of it...
fields.
It is'accused of permitting
This cyclical process is .consome management of money withveniently illustrated by the lowly
out being consistent and allowing
(Continued on page 1767)
unstable
George A. Rogers & Co., Inc.
| New York, N.Y.
with gold by
found
Moody's Investors Pfd."
usually
are
in
Ch. & N. W. Conv.
American
adver¬
tising
Colortype Pfd.
trade
n
full-
papers
a
p a g e
adver-
E. de Willers & Co.
u.
120
H.
and
mert
W.-Kastor
&
Broadway,
REctor 2-7634
New
York
Teletype NY 1-2361
Sons, has an¬
t h
nounced
e
opening of his
w n
agency,
Hill Advertis¬
Punta
ing, Inc., with
offices
Park
Camaguey
Sugar
250
at
Alegre Sugar
Vertientes
Avenue,
New York.
A
••
branch
will be
Farnsworth Television :
office
opened
Chi¬
in
soon
Great. Amer. Industries
Weston Hill
cago.
Botany Worsted Mills
tisement, A New Kind of Adver¬
tising Agency Is
in the Making,
& Pfd.
Com.
outlining his proposed policies.
New products and processes will
be
emphasized in the plans of the
agency, Mr. Hill stated.
Staff personnel, accounts
and
new
;•>'
similar
ments.
probably be interested in the statement made by
the President of Kennecott Copper at the recent stockholders' meet¬
4%s 1949
Houston Oil Pfd.
re¬
data
will
J.F.Reilly&Co.
Members
York
New
Security
made
be
public in forthcoming announce¬
>
Stock Market Comments
Ph. & Read. C.&l. 6s 1949
Ruthrauff
for
Blackett-Sample-Hum-
in
other
*
branch offices
insert¬
cently
ed
copy
a
erning
WOrth 2-4230
Teletype N.
The timeliness of
emphasized within the week by publication, April 7,
this article was
of
Bell
Standard," written by the internationally famous monetary
as a
executive
1 has invited
Hearst Consol. Publ. "A"
our
MOP Gen. 4s 1975
for
writer and
well-known
Hill,
article in that issue entitled "The Future of
an
Orleans, La.-Birmingham, Ala.
Direct wires to
2-7815
Advertising Agency
Weston
creative
"The Commercial and Financial Chronicle" of April
reader comment
St., New York, N. Y.
NY 1-1557
New
Weston Milt Forms Own
many years
Consol. Mach. Tool Units
25 Broad
Exchange
BROADWAY, NEW YORK
120
1-672
By FRANK CIST
>
Stock
York Curb Exchange
New
Of The Gold Standard"
Allen B. Du Mont Labor. "A"
120
Preferred
Members New York Stock Exchange
NEW YORK
-
1-423
Merchants Refrig. 5% 72 &
Baltimore
&
.■
Members
York
New
Comment On "The Future
Members
Quoted
—
McDonnell &fo. Steiner, Rouse & Co.
'
Principal Exchanges
115 BROADWAY
HA 2-2772
PI., N.Y.
Exchange
Sold
—
CANADIAN BANKS
KING & KING
Established.
Common
CANADIAN RAILS
Common
"
Residu al Certificates
CANADIAN MINES
.
Debardelaben 4s, 1957
Ralston Steel Car
Improvement;
CANADIAN UTILITIES
'• ' -Vw/'
Dealers Assn.
New York, N. Y.
ill Broadway,
REctor 2-5288
Bell
'
System
Teletype,
NY
1-2480
Investors will
BYRNBUN CORP.
ing to the effect that the company for the first quarter- of this year
excess profits tax at a rate of 90%
and the normal
at the rate of 50%.
Later developments, of course,
calculated their
(formerly Knox Hat Co.)
and surtax
may
indicate that this
the
rn
Bought—Sold
other
hand
it
may
be
a
companies for the war's duration,
although it may be that we have
"coming events cast their
shadows before." *
i;1
-
passed the peak of restrictions on
consumer goods.
Generally speaking, we would
This leads us, too, to make the
comment that one is pretty much
blindfolded these days in attempt¬
H. G. BRUNS & CO.
20 Pine Street
ing to forecast
ate
New York
new
Telephone: WHitehall 3-1223
Bell
Teletype NY
earnings.
tax
1-1843
be
Long-Bell Lumber Com.
rates uncertain and
earnings' predictions
on
high
*
can
The
Mail
There
has
been
some
evidence
days and weeks of an in¬
creasing investor interest in mail
Alegre Sugar
order
shares; Sears Roebuck and
Montgomery Ward. In our view
OTeene<mdCompaYvu
Members
N.
Y.
this
Bell
St., N.Y.
chases made at this time may be
premature.
We say this because
it is obvious that
priorities will
Tel. HAnover 2-4850
Teletypes—NY
1-1126
&
1127
continue to
adversely affect these
Trading Markets in
We
of Toledo,
Inc.,
in
G. A. Saxton A Co., Inc.
WHitehall 4-4970 II
1-609
||
or
selling
as
of
York
charge
New
12
15
or
ferior to Sears.
these
stocks
if
one
Vicetheir
City
that current purchases
quite
appears
reasonable
may
degree
of
patience..
bit
be
market
fatigued
Market
as
Outlook
whole
a
acts
Offer Convenient Record
For Security
Congressional
perhaps it will
less dynamic
as
corporate-tax
dis¬
cussions get under way.—Ralph E.
Samuel & Co.
sterling investing corporation
BOwIing Green 9-0480
New York
:
Telephone WHitehall 4-8120
Teletype NY 1-1919
New York Water Service Pfd.
Scranton
simple
at
a
Ohio Match
record
records, taxable income, profit or
loss on sales, and other informa¬
tion of importance to investors.
Copies of this record may be se¬
cured from Wayne Hummer & Co.
cost of
one
Spg. Brook W.S. Pfd.
Deep Rock Oil
RobertC. Mayer&Co.,lnc.
Established 1915
30
Pine Street,
Telephone
Bell System
New York
DIgby 4-7900
Teletype NY 1-1790
dollar each.
pleasure in announcing that
Mr. Charles J.
has
us
become
in
our
Stimpson
associated
with
trading department
before
of these securities.
42 BROADWAY
Broadway
Bell System
Exchanges, have published
and convenient loosefor
listing security
transactions and holdings; it in¬
a
l
us
Members New York Curb Exchange
65
Stock
We take
while to check
any
Members New York Stock Exchange
Spokane Int'l Ry. Esc. Recpts.
Transactions
cludes sections for bond and stock
a
and
somewhat
Edward A. Pureed & Co.
office.
leaf
Near-Term
Warren Bros."B"&"C"
Braun, j Bosworth
new
Autogiro Corp.
Wayne Hummer & Co., 105 West
clear
The
the
Adams Street, Chicago, 111., mem¬
bers of the New York and Chicago
although
a
of
the
beyond
war,
require
it
Woolley Jr., who have been asso¬
ciated with Hipkins & Topping,
will be in the trading department,
reasonably
are
looks
Kellett
Stewart R. Terrill and James F.,
Specialize in
It will he worth your
buying
comparative
the last
WHOLE MORTGAGES
All Maturities
NY
Co.,
Presidents
TRUST COMPANY PARTICIPATIONS
Refunding 5s
ST., N. Y.
Teletype
in
record
TITLE COMPANY CERTIFICATES
Missouri Pacific
70 PINE
better
months, but this business has been
done at a gross profit margin in¬
interest is justified although
hasten to make the comment
that it is quite possible that
pur¬
Association
37 Wall
sales
we
Security Dealers
the
had
priced
in recent
Punta
has
By and large we feel that both
Companies
James
office at One Wall Street.
\ better
investment
rating
Ward, although
its sales volume is probably more
dependent on "hard goods."
On
the other hand, Montgomery Ward
of
Order
&
newly-opened
*
Preferred
Vertientes-Camaguey Sugar
Hipkins and
Topping, formerly partners in
Hipkins & Topping, have become
associated with Braun, Bosworth
than Montgomery
un¬
only
a highly tentative
basis,—
sounding words for mere
*
D.
A.
regard Sears as possessing a some¬
the
"guess work."
Elastic Stop Nut
&
are
Clifton
what
corpor¬
determined, but *in addition the
factor of re-negotiation is becom¬
ing increasingly important. Con¬
sequently it seems obvious to us
that
Common
share
per
For not only
Dumont Labratories
With Brasm, Bosworth
merely ultra-conservative accounting, but
was
of
case
Hipkins And Topping
.
NEW YORK
SreeueaniComponu
Members New
York Security Dealers Ass'n.
37 Wall Street, N. Y. C.
Bell Teletypes—NY
Tel IIAnover 2-4850
1-1126 & 1127
Volume 157 ■' Number 4176
The
THE COMMERCIAL & FINANCIAL CHRONICLE
and'
COMMERCIAL
1755
;
'
FINANCIAL
j
CHRONICLE
William B. Dana
1
25 Spruce
.
>
Street, New York
Herbert
D.
Punta Alegre
-
,
William Dana Seibert, President
William D. Riggs, Business
!
Vertientes
twice
issue
on
LlCHTinSTEIH
B. S.
AND COMPANY
Sugar
One
Public
Utility and Industrial
Week Nearer
YOUR TEETH
Trask & Co.
Sp
encer
Sugar
revery
Niquero Sugar
You
Telephone HAnover 2-4300
'
Exchange
out
with
of
those
much
of
99 WALL
"
-
g-et
with
skin
check
Teletype NY 1-5
Members New York Stock
Monday]
can
soletes
the
25 Broad Street, New York /
.
New
Victory!
SKIN OF
PREFERRED STOCKS
Camag'y
Vicana
week
a
•Thursday (general news and ad¬
vertising issue) with a statistical
V
offerings of
Est.
Manager
Thursday, May 13, 1943
Published
interested in
Seibert,
Editor and Publisher
^
are
■,
BEekman 3-3341
:
Antilla Sugar
Company
Publishers
;
We
Reg. U. S. Patent Office
■
ohthan
more
teeth
your
if
you
first.
us
STREET, NEW YORK
Telephone:
WHitehall
4-6551
Other Offices:
Chicago—In charge of
Gray, Western Representative,'
Field Building (Telephone State
0613).]
London—Edwards & Smith, 1 Drapers''
Gardens, London, E.G.
Fred
H.
Copyright
Company.
1943
.
Reentered
by
B.
32
Dana
1
,
as
William
STRAUSS BROS.
Members
York
New
Security
second-class matter Feb¬
Ass'n
Board of Trade Bldg.
Broadway
CHICAGO
NEW YORK
ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
Dealers
^
DIgby 4-8640
Harrison 2075
Teletype NY 1-832, 834
Teletype CG 129
States
and
Posessions, $26.00
per year; in Dominion
$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.
of
Are
20 YEARS WITH G-M
Relieving England
Capital Frozen In England
Belonging To Those In Foreign Countries
In
analysis of the Keynes and Morgenthau foreign exchange
plans, Benjamin M. Anderson, Ph. D.,-asserts that "ob¬
viously foreign exchange stabilization is a desirable thing if we can
get it in a sound way without creating worse evils." "But," he ob¬
an
stabilization
subscriptions
and
advertise¬
ments must be made in New York funds.
and
In
Co.
Title
Co.
Ctfs.
Mtge.
&
all
Bank
Invited
Mtge.
Co.
Ctfs.
Title
Co.'s
Lawyers
Dr. B. M. Anderson Views Both As
In
ESTATE_SECURITIES
Lawyers
Of Burden Of Paying
NOTE—On account of the fluctuations
Jn the rate of exchange, remittances for
Specialists
Inquiries
Bond
Canada,
foreign
We
REAL
National Brain Trust"
3, 1879.
L Subscriptions in United
Avers Keynes And Morgenthau Stabiliza¬
tion Plans Would Set Up Super-
other
Trust
Ctfs.
Participations
Complete Statistical Information
J.GOLDWATER&COi
INC.
Members New York Security Dealers Assn.
39
Broadway, New York, N. Y.
HAnover
"instability of a weak currency in the foreign exchanges is
merely a symptom of an underlying financial disease, and to peg
the foreign exchange rate with-*>
out correcting the fundamentals pressed
after the war, an em¬
is merely to- mask the symptom barrassed
debtor
rather
than a
2-897®
Teletype
NY
1-1201
serves,
Inquiries Solicited
BOND AND MORTGAGE
and
the
let
to
GUARANTEE COMPANY
-
disease
j
-
hidden
Cerlificates
are
powerful creditor.
debt
tional
Alfred
P.
Sloan, Jr.
Sloan, Jr., Chairman
Uewburger, Loeb & Co.
England of
I Members New York Stock Exchange
Corporation, on May 10 celebrated
the completion of 20 years as chief
executive of the company,
be
of
St., N.Y.
Bell
WHitehall 4-6330
Teletype
NY
1-2033
Board
the
General
of
Motors
"is
their
organization will hold
"fite nite" at the
Downtown
Athletic
Club,
on
a
and
dinner
The group
usually holds a golf outing each
Spring, but has decided to have
a
dinner this year to continue
their
traditional
get-together.
May
Thursday,
27.
five-round boxing bouts,
sponsored
by
the
Downtown
Athletic
Club
and
featuring
"Golden
Glove" and "Diamond
Belt" metropolitan and New York
State champions, will be a spe¬
cial attraction of the evening.
— Varnedoe,
Inc., Savannah
Bank & Trust Co. Building, an^
nounce
that
Millard
Thompson
SAVANNAH,
Chisholm
&
is
Woltz
now
stitutions
GA.
Co.,
with
(associated
Benj.
M.
to say:
"Without
as
manager
Fifty-five members of the Top¬
in the armed serv¬
of the trading
E.
with
M.
Fitch &
Co.,
J, Slimpson
Greene
Co., 37 Wall Street,
City, members of the
York Security Dealers Asso-
Greene
sw
ew
Wiih
Trading Dept.
&
ading
Situation Interesting
current
The
the
West
in
situation
orton,
ith
become
has
them
in
associated
trading
their
&
Kiely
possibilities
attractive
to D. F. Bernheimer &
according
Co., Inc., 42
,,
de-
ma¬
terial
on
issue
had
upon
this
be
may
request.
Ferron R. Davis Opens
(Special
to The Financial
President
in
a
—
general
Ferron
securities
business. Mr. Davis was
with
H.
Marshall
E.
$3.50 Cumulative
Earnings
of $9.00 per share
1, 1943.
We
he made
it
a
Descriptive Circular on Request
formerly
&
Co.
for
are
pleased to
111
York
Security
Dealers- Assn
Broadway, New York, N. Y.
REctor 2-5288
Bell
System
Teletype,
N.
Y.
1-2480
1
Federal Screw Works
common
and rights
Neighbor
again to place conspicuously before
MmiOh&
"good neighbor" policy
This time he has chosen
one
of his favorite
COrtlandt 7-6190
Bell System Teletype NY 1-84
point to inform the press that he had felt obliged to
be
quoted
is
it
exactly,
not
to determine precisely what
All
accounts
the
Jacksonville Gas 5s & Common
President
commission"
the
on
deal
and
the interest rate on the
unduly
high.
He
seems
loan
rather
M;
170 Broadway
plainly to imply that Bo¬
want
he did say about this
terest
and
of
the
matter
Great American Industries
have
saying that an in¬
of 8% was charged,
rate
have
some
him
adding
investors of this country
to Bolivia within
Indiana Limestone 6s, 1952
an
One Park Ave., 2-6s, 1951
The only Joan
8%*"commission."
by the
transaction.
the
dates fixed
livia did not really need or
the money,
000
Beacon Hotel Inc., 2-4s, 1958 W. S.
by the President was a $14,000,-
but was persuaded to
accept it by "supersalesmanship"
the part
of the underwriters.
Since upon such occasions the
President does not permit himself
on
31V2-year, loan (or some part
thereof,
portion
a
for
withheld
sale
of. it being
in
Europe)
bearing a coupon rate of 7% and
.
(Continued
on page
Frank C. Masterson & Co.
Members
64
New
York
Exchange
Curb
NEW YORK
WALL ST.
Teletype NY 1-1140
HAnover 2-9470
1774)
Stock Exchange
New York, N. Y.
Tele.
NY 1-210
Your Records
We
Make A
Specialty of Dealing in
1
TIFFANY &
CORNING
Mr. Millard
Thompson Woltz
associated
with
as
Manager of our Trading
1
Bought
BRADSTREET, INC.
.U
..
Members
Varnedoe, Chisholm & Co., Inc.
Capital Stock
—
Sold
—
Quoted
Bristol & Willett
-
SAVANNAH, GEORGIA
Lines, Inc.
GLASS WORKS
SINGER MANUFACTURING CO.
DUN &
us
CO.
JOHNSON & JOHNSON PFD.
(formerly of E. M. Fitch & Co., Inc.,
Philadelphia)
now
U. S. Truck
announce
BLAUNER, SIMONS & CO.
2-0600
chosen
easy
Department
HAnover
Members
New
Stromberg-Carfson
by American investors through an
underwriting firm, whjch Presi¬
dent Roosevelt
appears
to feel
that
is
25 Broad St.
J.F.Reilly&Co.
From a press
remarks
we
"The Keynes and Morgenthau
Foreign
Exchange
Stabilization
;(:■ (Continued on page 1773)
apologize to his visitor for a loan®made some years ago to Bolivia to
Preferred
Accumulations $17.50 per share
Members New York
V
.
FASHION PARK, Inc.
1942 in excess
4'.—5Vi's
/
quote:
public what he is pleased to term his
That
of April
has
toward Latin America.
fixing
Chronicle)
SOUTH BEND, IND.
engage
'Missouri Pacific
Bartgis Brothers
Please Note in
as
May 11.
of
his
on
exploited" the borrowing coun¬
try by charging an exorbitant
interesting descriptive
many years.
irtment.
hard
be
will
merce
summary
Virginia-Pittsburgh Coal Co. First techniques—that of gratuitously damning investment bankers.
At
Mortgage Income 6s of 1947 offers the conclusion of redent conversations with the President of Bolivia,
R. Davis has
of
department
this
on
4's—4'/2's—5's
Anderson, who is Professor
Bolivia's Good
The
opened offices in the
Charles J.
years in the City National Bank Building to
;impson, for many
'
Editorial—
Coal
West Va.-Pittsburgh
York
ation, announce that
relief
the
5's
Mid-Continent Airlines
whom
.
Dr.
Inc., of Philadelphia.
Broadway, New York City, from
ices.
n
coun¬
tries." He goes
Vy 4'S
v-
Frisco
Mr. Woltz was for¬
department.
merly
i
foreign
England
score
them
Anderson
on
Eight
pers are now
•ji V];
fund."
burden of Economics of the University of
paying California at Los Angeles and
great sums of Consulting Economist of the Cap¬
capital
now ital Research Company, Los An¬
frozen*
in geles, discussed the two stabiliza¬
England and tion plaus at a dinner given by
belonging
to the officers and directors of the
men
and
in¬ Los Angeles Chamber of Com¬
"Toppers" Will Hold Woltz Trading Mgr. At
Varnedoe, Ghisholm
Spring Dinner May 27
The Toppers, an association of
municipal bond men, announce
relieve
to
of the
.
that
St. Paul
bank,
can
-
Alfred P.
specialists)
of
40 Wall
4's—5'.—6's
be put into the interna¬
can
land
Seaboard Airline
If this frozen
however, and Eng¬
given the more than
23 years provided for in the Mor¬
swallowed genthau plan to pay it off, she is
whole by the relieved
of
the
burden.
The
M o r g enthau creditors
of the
fund
bear the
and the United States
plan,"
says burden,
Dr. Anderson, will be the chief creditor of the
pur¬
of the
Keynes
plan,
-
.
{
A
pose
AND TRUST CO.
(We
e."
w o r s
TITLE GUARANTEE
<
grow
'Established,
New
York
Security
1920
.
Dealers
„
..
•
Association
CRAIGMYLE, PINNEY & CO.
.Members
115
Broadway, New York
Bell
Tel. BArclay 7-0700
System Teletype ATY 1-1493
ONE
New
WALL
Telephone
York
Stock
Exchange
STREET, NEW YORK
WHitehall
4-5290
:
1756
Security Dealers Association
R. Hoe & Co., Inc.
Over-the-Counter Securities
1-376-377
Trinity Place, N.Y.C.—HA-2-2400—Teletype NY
74
Securities Units
Botany Worsted Mills A & Pfd.
National Paper &
Wires
to
Buffalo
Detroit
Pittsburgh
-
Walter
Trading Markets
Trinity Place, New York
Telephone:
v
\ i
BOwling Green
St. Louis
-
1944
Whyte
Chicago & Alton
staying
vising
3s, 1949
from
away
Chicago, Mil. & St. P.
5s, 1975 & 5s, 2000
Lehigh Valley
market broke. But after
dull
a
period of a couple of weeks, it
snapped back nicely, with
some of the stocks even get¬
ting above their old highs.
4s, 2003
Missouri Pacific
s
%
Seaboard Airline
sjs
obviously
good that nobody feels pes¬
5s, 1931—6s, 1945
Others Traded
simistic about
because
so
the near-term
Broadway, New York
COrtlandt 7-9400
Teletype NY 1-1950
89
Devonshire
Walnut
Sic
a
continuance of
ket
Of Commerce Chamber
E.
Chamber
and
deceptive instrument of price
national
units,
principle is to
challenge competition in the same
way.
This system must be
unilateral
action
exchange
depreciations
broken up at all costs if we are to
that
vented."
avoid
general collapse.
a
be
can
terminated
national action.
This
.
It
inter¬
...
by
„•
.
10 years ago,
Feb. 15,
1933, to be exact, and although it
has
taken
time,
considerable
agreement with the foregoing is
now being expressed.
On April 7,
was
currency
war
".
..
"to
help eliminate bilateral
clearing arrangements,
currency
devices, and
discriminating \ exchange
prac¬
exchange
multiple
a
name,
World,"
Salesmen
are
the
three distinct expres¬
same
high places
thought coming
both sides of
on
Atlantic,
all of them com¬
pelled by the force of circum¬
stances.' Here then is our prob¬
lem.
How do
To
Wanted
198.)
page
These
we
solve it?
having experience and knowl¬
edge of securities.
ply
question the motives of the
by
following day the British
for
an
international
proposals
relative
values
exchange
ican
plans
unfair.
to
Jt
.
would manifestly be
better, a priori,
the
with
objectives* --But
in
Hasler, President
of Commerce
of
has
been
a
bull
given.
mar¬
If the
averages decline and if
such a decline is followed by
a
we
are
enterprise.
(3) The sale and distribution of
securities;
(4) The
maintenance
adequate free and open
of
an
market
:Jc
nancial
*
did go through
Their ability
through was so obvious
in¬
all; our sole concern is their
proposals.
By what method do
us
(Continued
of
Obviously
the
market
is
inflationary
on page
Trader
1774)
Long experience
in
character*
All
the
Deep Rock Oil Attractive
Common stock of
speculative public is
in the market.
If I had any
it when I was in
Deep Rock Oil
doubts of
offers interesting possibilities ac¬
cording to an analysis prepared by New York I have no doubts
Doyle, O'Connor & Co., 135 S. La
after speaking to people in
Salle Street, Chicago, 111.
Copies
of this analysis may be had from the
Southwest, from where
the firm upon request.
(Continued
on page
1769)
Capable
Violent churning of low-priced issues regardless of quality,
the swift flow of trading activity from group to group, ignoring of
unfavorable news, except temporarily
and then quick recovery,
warnings against uninformed speculation, confirmations of nominal
sound
sweeps.
guide-posts,
huge turnqver
ir
speculative bonds and uneasiness
bears
unconvinced.
still
Buyers rush in precipitately when
inevitable
corrective
reactions
There
materialize.
innumer¬
are
Box
of
statistical
M
nancial
6,
Commercial & Fi¬
Street, New York, N. Y.
stored
DALLAS
Bought
—
Dr.
times and better days.
The
The
What
of
ever-present
can
Inflation
questions:
I do to preserve my cap¬
So'western Pub. Serv. Com. & Pfd.
Dallas Ry. & Terminal 6% 1951
All
'(Texas Utility Preferred Stocks
Check
us
on
Southwestern Securities
RAUSCHER, PIERCE & CO.
DALLAS, TEXAS
Houston
Substance
of
-
including
from the good
food,
earth.
How
can
I
San Antonio
Wealth
that
ST. LOUIS
come
These
con¬
comitants of solid wealth
are
es¬
sential in the general scheme, but
they
are bright marks for the taxgatherer and therefore the hard-
to
as
the
came
the
deep-thinking
investor
the earth, knowing that
SAINT LOUIS
509 OUVE ST.
Bell
System
Teletype—-SL 80
first of the great fortunes
therefrom,
surest
so
refuge
it
now
affords
against
the
through storm and strife of
dangerous
this distractive period with a rea¬
times.—From Peter P. McDermott
sonably whole financial skin?—
are in every mind.
These are dif-1 & Co.'s "Investment Survey."
ital?
Quoted
Pepper
Republic Insurance
Transportation facilities, proc¬
essing equipment, manufacturing
plants,
sales organizations,
are
part of the general wealth, but
all dependent on the raw mate¬
headed,
Shadow
—
Southern Union Gas Common
otherwise left alone to await other
rials,
Sold
free
by Mother Nature,
only mined when profitable, and
turns
The
Unusually
background.
Chronicle, 25 Spruce
able
curity prices.
developing prof¬
situations.
ficult problems and make each of
and nu¬
reactions,
for
all types
in
of over-the-counter securities.
itable
potential buyers to
take
for the sale and exchange of such and so well advertised that
prices higher ultimately. The newsecurities.
there is hardly a person in¬ rich are with us in mounting num¬
The other members of the com¬
terested in the stock market bers. There is said to be a spread
mittee are William R. Coe Jr.,
of
around
$43 billion between
Vice-President and Treasurer of who wasn't and isn't aware of
funds available to buy goods and
the Virginian Ry.; Chauncey L. it. And even the small shakegoods to buy. The homely solu¬
Waddell, Executive Vice-Presi¬ out of the end of last week
tion of permitting more things to
dent of Barrett, Herrick & Co.;
didn't dampen the bullish en¬ be sold to take up this slack is
Benjamin
First
ViceStrong,
too simple.
Therefore these stu¬
'' ;Cv
President of the U. S. Trust Co., thusiasm.
pendous funds are finding their
*
;Jc
Jfc
and Francis M. Weld of White,
way into the market place. These
Weld & Co.
There is little doubt but are fruitful causes of higher se¬
that the
Chronicle, 25 Spruce
St., New York.
harbingers of such markets have appeared in the preliminary up¬
yearning
The averages
the upside.
to go
Box
objectives familiar to
Securities And Inflation
merous
on
Address
11, The Commercial & Fi¬
loftiest
not
.
in productive
re¬
stating
*
same
:}c
Please
only
were
credit; them
terested
letter
qualifications.
R
rally which does not get in high-grades, Government us go deeper into investment sub¬
the
State
of
New
York, an¬ above
previous highs; and if spending that staggers the imag¬ jects. We seek diligently for some
nounced on May 11 the appoint¬
ination, Lease-Lend distribution form of wealth that can ride out
ment of a Special Committee on subsequently they get under
It is
at breath-taking expense.
Thes'- an inflationary hurricane.
Investment and Securities headed their previous
lows, then a
not cash, for that buys less and
things promote inflation as well
by Fairman R. Dick of Dick & bear market signal has been
It is not consumers goods,
as
attend it.
They are inflation, less.
Merle
Smith.
The
committee,
given.
If contrariwise, both so plain that he who runs may for they are perishable. It can
whose appointment was author¬
read.
Surplus funds are seeking hardly be heavy goods, for the
ized at the April 1 meeting of the averages don't break the pre¬
tremendous over-production will
sanctuary.
Chamber, is charged with the vious lows and go through
make them of small value.
The
study of and recommendations their old highs, a bull market
Helping It Along
irrefutable 'answer is that real
relative to:
is still on.
In the week just
The advance, creeping up for wealth is in the ground. Oil, gold,
(1) The accumulation of capital
passed the latter is what you over a year, has produced many silver, iron, coal, copper, zinc,
from savings;
sold-out-bulls long of cash and lead,
asbestos, sulphur, chrome,
(2) The investment of capital saw.
manganese, and
other minerals,
investment
Broadway, New York
authors of the British and Amer¬
tices."
The
165
pre¬
the instability of foreign
sions of the
No. 6 of its stated objectives
are
exchange remained the principal
obstacle to full revival."
("One
from
cies.
so
competitive
layman, Wen¬
to state in
plain language which all could
understand
that, after the last
Willkie by
national fund to stabilize
curren¬
and
It remained for
dell
last, there were published our
Treasury's proposals for an inter¬
cussed Dow
Dick Heads Committee
Frederick
sjc
According to the much-dis¬
theory if the av¬
erages make a high, that is,
in both averages, a signal of
St.
Pennypacker 3333
of the
insidious
most
St.
Teletype BS 264
PHILADELPHIA
1528
where the
rather than the future trend.
BOSTON
Lafayette 3300
the
this
longer term is considered you clearing union after the war were
can
get all shades of opinion. also made public. Object "B" of
this plan was expressed as fol¬
However, this column is con¬
lows:
"We need an orderly and
cerned with the immediate,
agreed method of determining the
J. Arthur Warmer & Co
120
Of course,
establish
To
•
future.
it is
COMPANY,
Inc.
destruction hitherto conceived...
was
Sic
This action is
HODSON &
the most effective
artificiality devised to achieve favorable balances is the deliberate
depreciation of exchange.
Its effectiveness is the more complete
...
Looking at the market from
a
day-to-day angle there is
nothing obvious to the eye
that is disturbing.
Yes, back
in the beginning of April the
5s, 1948
4s—5s—5 H s—5 Yi
*
*
*
the Finance Committee of
the Senate, your humble servant stated, in part:
"The most recent and, let it be recognized,
long side.
Chicago, Mil. & Gary
Street, New York
BOwling Green 9-3530
NY 1-375
By RENE LEON
Despite bull market resump¬
tion signal market action is
not convincing.
Continue ad¬
5s, 1987
AIGELTINGER & CO.
76 William
Teletype:
'
,
9-7400
Once upon a time, testifying before
By WALTER WHYTE
Central R. R. of N. J.
request
On the Treasury's Plan
For the Stabilization of Currencies
Says
Baltimore & Ohio
on
1914
Established
74
Tomorrow's Markets
Railroad Bond
4s,
-
Circular
1
Type Com. & Pfd.
Cleveland
-
1914
HouRsseSTrqster,
t
Long Bell Lumber
Private
Common Stock
.vr©; Since
Trading Markets
International Power
Thursday, May 13, 1943
.
Markets in
Troster, Currie & Summers
Members New York
"
THE COMMERCIAL & FINANCIAL CHRONICLE
come
Members St. Louis Stock Exchange
Volume 157
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4176
*
Certain Fixed Interest Bearing Railroad
REORGANIZATION
will be
Reorganization Securities
Legal Investments for Savings Banks in Massachusetts
have
We
RAILS
1757
analyzed
the
new
law
and
list
the
railroad
new
"
which, in
all of the
; securities
;
quoting
our
new
Analysis available
Inquiries Invited
opinion,
will be legal; also
law pertaining to railroads.
request
on
on
OFFERINGS WANTED
letterhead
own
Sun Life
PFLUGFELDER, BAMPTON & RUST
NEWBORG 6- CO.
Members
MEMBERS
61
Exchange
Exchange
New York
Stock Exchange
Boston Stock Exchange
New
York
Stock
Assurance
Exchange
Broadway
l/J": °f
New York
New York
New York
Stock
York
Curl)
New
York
New
Cocoa Exchange
Coffee & Sugar Exch.
Canada
Cotton Exchange
New York Mercantile Exchange
Baltimore
.? New
York
Produce
•
Exchange
Chicago Board of Trade
f Chicago Mercantile Exchange
Pittsburgh Stock Exchange
St. Louis Stock Exch. (Assoc.) v Commodity Exchange, Inc.
'
Winnipeg Grain Exchange
Salt Lake City Stock Exchange
Chicago Stock Exchange
Philadelphia Stock Exchange
•••':
\;//
1
•
..
'
V "•
HART SMITH & CO.
Railroad Securities
52
WILLIAM
ST.,
Bell
HAnover 2-6540
Y.
N.
HAnover 2-0980
'
;
The various securities of Alleghany Corporation have enjoyed
Sharply increased interest recently, running into new high ground
Tele. NY 1-2972
30 BROAD ST.. NEW YORK
/;./
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
Teletype NY
New York
1-395
Montreal
Toronto
by substantial margins as the problem of the 1944 maturity has been
cleaned
New Haven Railroad Continues To Forge
Ahead
Reports Highest Gross Income For Any April On
Record; Substantial Portion Of Gross Carried To Net
up.
One phase of the operation has caused considerable
amusement:in/financial.circles. Not very long ago Mr. Young and
associates, on behalf of the Chesapeake & Ohio as a minority
stockholder of Erie, were incensed*
his
failure
of
competitive bids
on
the
over
R. M. Horner Forms
.
Own Investment Go.
when
ence
monthly gross
•was
running
at
only
;
of the
third
a
>, John B. Cornell to Head
about
Horner
formed
has
R.
M. Horner
April
30
Broad Street, New York
will
to
engage
mate.
The
:
M.
Robert
esti¬
April
Trading Department
business
bring
in
City,
general securities
a
Associated
business.
gross
Co., with offices at
with
Mr.
-revenues
for
Horner
first
four
department is John B. Cornell.
Mr. Horner was formerly Vice-
The
of
months
;the
$ 5 6,6 3 3,0 0 0.
here
on
.'will
be
af-
partment; prior thereto he was in
charge ' of "the1' reorganization
.fected
by
the
securities department of Roggen-
o
p e r a
t i ons
•suspension of
freight
rate
t
and
increases
&
burg
Howard S. Palmer
a
nell
:/I '
in the past he
Callahan, Cor¬
Co., and Du Val, Cornell
Co.,
and
partner in
was
&
'
fares,
;which Mr. Palmer has estimated
:will reduce New Haven's gross by
commutation
.interstate
& Co.
$400,000
Certain Rail Bonds Now
a
.
realized in five of the ten
pre-war years. The record month¬
ly highs being reported in gross
are particularly
significant when
•gross
one
considers
per
ton
mile
that
mile and
22%
are
average
rates
Investments for
Savings Banks
and
fixed
Certain
taking a heavy toll, a substan¬
portion of the increase in
is being carried down to
.net. Net operating income for the
ings banks in Massachusetts, ac¬
cording to a new law.
Pflug-
the
have
new
New
York
prepared
Exchange,
analysis of the
Stock
an
law and list the
new
railroad
will
.first quarter
of the year was 53%
.'above a year, ago and further
.year-to-year gains ahe indicated
iin subsequent months. ' In con¬
be legal;
also quoted in the
analysis is all of the new law per¬
taining to railroads.
Copies of
this interesting analysis may be
had from Pflugfelder, Bampton &
Rust
upon
request
written
upon
letterhead.
trast to the experience of many
Mother of the reorganization roads
Warren Brothers
.these earnings are being utilized
.for the rapid repayment of ac¬
cruals for past-due interest on the
Warren Brothers «A" "B" "C"
company's mortgage bonds.
Dioffer interesting possibilities ac¬
.visionals have already been made
cording to a circular just issued by
current as to interest and it seems
Goodbody & Co., 115 Broadway,
,likely that bonds secured under
New York City, members of the
Vthe 1st & Refunding Mortgage
current
by
the
time
reorganization is de¬
York
Merrill Lynch, Pierce Co.
Financial
Chronicle)
ATLANTA, GA.—Joseph A. Mc¬
has become associated
with Merrill Lynch, Pierce, FenCord, Jr.,
&
Beane,
it
prevailing levels for coupon bonds
may,
25
.Street.-Mr. McCord
North
was
Pryor
formerly
assistant manager of. the Atlanta
'office of Thomson & McKinnon.
Copies of this interesting circular
may be had from Aigeltinger &
Co. upon request.
of
■,
issues.
same
Inquiries
relieves
only
Telephone HAnover 2-1355
'
Teletype NY 1-1310
LER0Y A. STRASBURGER & CO,
-
1
WALL
WHitchall
YORK
NEW
STREET,
3-3450
Teletype: NY 1-2050
had
there
sion
been
retired
ST. LOUIS RAILROAD
ing
(in reorganization)
by the sale of
had
terest
charge
750,
Minneapolis & St. Louis 6s 1932
Minneapolis
1934
& St. Louis 5s
Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis 5s 1962
Central
5s
in¬
the
annual
4s
1951,,
Des
rate
&
($3.00
regular
Ohio
in
recent
and
$0.50
the loss of annual income
of
the
stock
will
large
commit
itself
extra)
through
proportion
of
interest
and
expenses
for
the
some
purchase
other
later
addition
to
the
bank
bonds
on
and bank
Even
loans.
allowing for annual expenses and
as much as $600,000 this
would
than
bank
will
the
prior
culates
debt
leave
of
balance
a
$3,000,000
Furthermore,
purposes.
the hope has been
expressed that
the
present clarification of the
Alleghany picture may make pos¬
sible the lower coupon refunding
of the other bond issues.
In any
$2,823,900.
While Al¬
leghany Corporation has large in¬ event, the coverage of income
vestments tied up in the Missouri
should • bring
about the c fairly
Pacific situation which may be of
rapid reduction in the bank loan.
substantial value in the
short
The
revenue-producing
asset at the
present time, is represented by
approximately 1,850,000 shares of
below 4%
the
to
of
rate
year
less
would
also
benefit
4han
the regular .prebe
in
posi¬
and in
a
directly,
order, once the company
position to resume any
in
was
The
payments.
pre¬
(5%%—$100 par) is
dividend
$3,671,464.
cumulations
ing
has
viously in
a
on
been
1931) the
requirements of
Due to the heavy
this stock
paid
poor
since
May 1,
shares
common
ob¬
are
position
long-term basis.
ac¬
(noth¬
even
on
'.
Defaulted RR. Bond Index
The defaulted railroad bond in¬
dex
of
Rust,
Pflugfelder,
61
City,
shows the
from Jan.
Bampton
Broadway,
York
following
range
1, 1939, to date; high—
59%, low—14%; May 12
58%.
&
New
•
'
•
•
.
price—
-
'
-
agreement provides for
been
of
call
ry
cut in
a
interest
when the principal has
reduced
These recent
dividend
wish
loan
consideration
common
We
to
As
ac-
of
time, the most important invest¬
ment, and r practically the only
At the present annual
a
to
amount to
Chesaoeake & Ohio
the
at
ferreds
interest
more
year for future
and other cor¬
a
retirement
porate
now
course
after
and taxes.
preferred dividend
dividend
taxes of
maturity
loans
income
expenses
ferred stock
twice the annual interest charges
$19,600,000 Alleghany Corporation
has
outstanding
$21,661,000 of 5s, 1949, and $19,137,000
of 5s, 1950.
Aggregate an¬
nual interest requirements on the
and
of
N. Y.
$6,475,000 a year, or more than
in
loan of
bonds
Incorporated
New York,
now
a
charges;
annual
utilized
new
1935
Dodge 4s
rate, and the extra paid in the
past few years, the holdings of
Chesapeake & Ohio stock bring
bonds.
In
cumula¬
outstanding at 667,539 shares with
retirement 'of
and
two
$21.25
to
of income in
requirements
taxes to the
funds perhaps
& Fort
Bell Teletype NY 1-897
rapid reduction in the bank loan,
with
Moines
Wall Street
63
divert
to
or
ance
$300,000
Frederic H. Hatch & Co.
years
amounts
111,000
about
share, involv¬
aggregate of only $2,358,less than one year's bal¬
an
tion
$1,132,350.
At
maintained by
Chesa¬
peake
only
1938
Iowa Central
Iowa
of
an
preferred
prior
Accumulations
amount to
.
bonds
of
share.
a
MINNEAPOLIS &
slightly greater extent than
income will be cut
v.*
v .•
••
the
tive dividends at the rate of $2.50
turity early next year, but, also,
reduces annual interest
charges
a
for
amount
the
over
•I?"'"'
v
tions
stock which is outstanding in the
shares and is entitled to
company's ability to meet the ma¬
to
I
|
apprehen¬
the
NEW YORK
ONE WALL ST.
Invited
for; the redemption of the $22,647,000 5s, 1944.
rThe operation
below
$10,000,000.
Guaranteed
developments car-
and
particularly favorable implica-
your
Leased Line
attention
following rather interesting comparison:
1st
Approximate
Mileage
Funded
Operated
Railroad
Debt
Quarter
Operating
Net
Stocks
Income
$434J)00J)00
317,600,000
$11,883,000
8,000
Paul
11,000
434,000.000
13.573,000
SEABOARD
4,000
177,000,000
11,221,000
Missouri
St.
Common stock of R. Hoe &
Co.,
Inc. offers attractive possibilities
according to a circular being dis¬
tributed by Aigeltinger & Co., 76
William Street, New York, N. Y.
Railroad Securities
,
not
J Specializing in
:
the whole
Alleghany picture has certainly
been
clearing up nicely.
Pro¬
ceeds from the sale of the 85,000
shares
of
Chesapeake
& Ohio
common,
together with a bank
loan of $19,600,000, were utilized
Rock
R. Hoe Co. Attractive
Form
substantial concessions below
at
■
Be- that, as
Copies of this circular may be had
upon request from Goodbody &
Co.
ner
of.
Registered
SERVICE
•
Alleghany's holdings of Chesa¬
peake & Ohio stock was disposed
Stock
•Jos. A. McCord, Jr., With
to The
In
Exchange
BROKERAGE
BOND
RAILROAD BONDS
point, judging by the man¬
which -a large block of
Exchange and
other leading national exchanges.
New
a
upon.
(Special
a
York Stock
New
supply several lots of
can
in
and
interest
bearing
railroad reorganization securities
will be legal investments for sav¬
\
tial
-gross
.
this
ner
excess
securities which, in their opinion,
final plan of
change in sentiment on
a
are
cided
date
what of
tion
passenger felder, Bampton & Rust, 61 Broad¬
28%, respec¬ way, New York City, members of
While increased costs and taxes
be
that
$297,500.
At the same time it is
kU expected that Alleghany Corpora¬
per
tively, lower than in the previous
peak, 1929.
will
Members
We
apparently been some¬
sale
month.
.Nevertheless,
revenues
for the Legal
.first half of the year should run
Mass.
in excess of the full 12 months'
than:
.more
Since
McLaughlin, Baird & Reuss
get
Amott, Baker & Co., the
Chesapeake & Ohio stock.
Inc.f for many years. Mr. Cornell
The bank loan carries an inter¬
was previously with Atlantic In¬
est rate of only 4% for a total an¬
vesting Corp.' in the trading de¬ nual .charge
of
$784,000.,
The
-approximately
From
of the trading
manager
to
there has
President of
to
year
as
bonds.
of
sale
President of the New York, New Haven &
Hartford Railroad Co., is estimating that gross revenues in April,
1943, ran to approximately $14,825,000. While this will show a slight
seasonal decline from the March level (the latter, incidentally, rep¬
resented the first $15,000,000 month in the company's history) it will
be the
highest gross for any April on record and 20% above
the highly
satisfactory showing*
of
a
year, earlier.
These fig¬
ures
contrast
sharply with the
New Haven's depression experi¬
S. Palmer,
Howard
Erie
its proposed
(These
Pacific
Island
7,000
11,962,000
figures, while not guaranteed by us, have been
from sources we believe to be reliable.)
obtained
1. h. rothchild &
co.
120
broadway
COrtlandt 7-0136
Adams & Peck
63
specialists in rails
n.
y. c.
Tele. NY 1-1293
Wall Street, New
EOwling Green 9-8120
Boston
York
Tele. NY 1-724
Philadelphia
Hartford
1.
!r Keeping a Record of
UTILITY
PUBLIC
have
We
RAILROAD
published
loose-leaf
venient
has
BONDS
to
service.
taxable income, profit or loss on
sales, and other vital information of im¬
portance to investors. Particularly valu¬
bond
for
stock
and
' •V'J
'
'1
Y'.V1
Consolidated Dearborn
industry
rec¬
Corp.
furnish
or
and
expanded
greatly
complete
It in¬
cludes
been
equipped
record
MUNICIPAL
sections
•/.!.'*
Research Department
;
security transactions and holdings;
>v
Our
simple and, con¬
for listing your
a
'•
-
Your Securities
INDUSTRIAL
Thursday, May 13, 1943
& FINANCIAL CHRONICLE
THE COMMERCIAL
1758
with
investors
Inquiries
company
on
Com. & Debs.
is
Merchants
a
any
Distilling Co.
Standard Silica
invited.
are
Corp'n
ords,
able
now.
More than 5,000
in
fg
%
WAYNE HUMMER & CO.
Members of
Chicago;;
New York
We have
8-Cent Fare
market
Chicago traction bond issues rose to peak levels for
or three years in heavy trading in the over-the-counter
last
portation system for the city through unification of the street car
Doyle, O'Connor & Co.
Incorporated
CG
9600
Dealers
of
135 S. La Salle St.
Dearborn
1200
lines.
elevated
and
the
Transit
Rapid
(street
"The
to
points,
claim it will be
I
rose
5
of the
bonds
that
and
Chicago
(elevated lines)
Co.
advanced
The
Chicago City and Connect¬
ing
Railways
said
2
3
to
points.
1927
of
5s
have
to
®
Surface
Chicago
Lines
car)
issues
that
reported
were
the widest
shown
petitioner
Toronto
liquidation
by
or
:11|#
inc.
Analysis
on
request
Illinois
Commerce
& Co.
Commission,
has
Commission
The
does
able to
security
any
The
Salle
St.
CG
1520
1399
proposed the setting
up of a new unified company, to
be called the Chicago Transit Co.,
which was to operate as a single
unit in the street-car properties,
plan
elevated
lines
the?
and
sub¬
new
system now under construc¬
tion.
Under the proposal a total
way
of
JOHN J. O'BRIEN
of
8-Cent
Permanent
Made
Fare
Chicago Stock Exchange
Commission
The
Chicago Board of Trade
New York Curb
Exchange (Associate)
sion
So.
La
Salle
Street
Tel.
Central
5775
A
sion
Tele.
year
make
8-cent street-car
ago the Commis¬
authorized
had
CG 1660
an
Surface
to
authority
the
permanent
fare.
Chicago
in its deci¬
Chicago
the
gave
Lines
231
and
securities
lines
surface
$43,000,000 to holders of elevated
lines obligations.
co. & ;
Members
$179,000,000 of securities was
to be issued, of which $136,000,000
would be given to present holders
of
tempo¬
a
raise in the fare from 7 to
rary
8 cents, and the higher rate
effect
since
has
20,
been
in
1942.
In making the 8-cent fare
overrode
of
recommendation
the
Office
the
istration,
April
Commission
the
permanent,
Price
of
which
had
Admin¬
urged
a
reversion to the lower charge as
an
anti-inflationary
The
Commission decided that
.return
to
in
result
the
a
an
measure.
fare
7-cent
operating
a
not
even
raise the
junior to
petitioner
in
ating
on
of higher
view
costs
payroll
and
rulings
oper¬
of
ex¬
penses.
The
Straus Securities Company
135 South La Salle
Commission
St., Chicago, III.
Tfltlypr-C'.GO 6S0-6SI
Trl.phonf-tNOo.CT S700
of
the
came
the
Commerce
a
fulfillment
as
of
expectations
local
se¬
dealers, who had freely
predicted that the unification plan
would be rejected.
The general
feeling, moreover, had been that
the 8-cent fare would be placed
on
a
permanent basis because it
was understood,
as the Commis¬
sion decided, that the lower fare
would result in operating losses.
curity
REAL ESTATE
SECURITIES
In
unification
plan, the Commission said in part:
passing
&
tion
of America.
embraced
$2,650,000 City of
obligations, $343,000 of
the Chicago Board of Education,
$653,000 of the Chicago Park Dis¬
trict and $2,569,000 of the Sanitary
District of Chicago,
All of the
bonds
are
optional on various
Chicago
1945-1948.
dates
INDUSTRIAL
&
Preferred
Stocks
CASWELL 6- CO.
120 South La Salle Street
Phone Central
the
5690
Ihe
rejecting
the
the
part
Kelly, Mayor of Chicago, who de¬
clared that he could not see "how
a
small
can throw
of work up
body of men
the
for
of
results
grabs."
years
Sidley, Chairman of
Com¬
Federal Judge
Michael L. Igoe to represent the
William P.
the Traction Reorganization
court in the case,
submitted a re¬
port to the court Monday on the
of
decision
permission
Judge Igoe to file a petition
rehearing of the case before
from
for
Com¬
Commerce
the
He received
mission.
prob¬
sufficient
to
serve
the
rate."
The
said
ing
further:
from non-bank¬
That
was
the
sources.
minimum
$370,000,000
some
assigned
to
When
goal was crossed, sights
set on a $500,000,000 total.
quota
Chicago.
Metropolitan
this
The
wound
area
with
the
around
tions
the
up
non-bank
total
drive
subscrip¬
$630,000,000
mark.
Unlisted
Stocks
unlisted
activity
in
followed
Trading
the
has
pattern
recent
dealings on the New
York Stock Exchange, dealers re¬
ported. Activity has centered in
low-priced isfeues, with trading
running at a brisk pace.
Such
issues as Majestic Radio, Frank¬
lin County Coal and Consolidated
part of the proceeds.
examples of the prices paid
by banks and investment firms
for the bonds, a block of $1,484,000
Dearborn have met with demand
City of Chicago 3s, optional Jan.
at
sold by the benefit
103.47, or a yield basis
of 0.90%, and a block of $1,443,000
Sanitary District 4s, carrying the
same
call date, brought a price
of 105.08, or a 0.93% basis.
it
a
As
1945,
1,
fund
was
at
Among features,
pointed out that Northern
Continental Utility preferred had
rising prices.
was
advanced from 6V2
in January to
18, and in the last couple of weeks
Bendix Home
Appliances had ad¬
V
vanced from 33 to 41.
War
r
Drive
Loan
;Investment
Bank
bankers
played an
important part in success of the
Second
War
Chicago
securities
145
in
drive
Loan
Metropolitan
the
The
area.
and
dealers
bond
-vJ
Stocks
stocks of
Chicago Loop banks has run at a
dull
pace
at irregularly higher
price
movements, dealers said.
Recent
trading
Continental
in
Illinois National was
Chi¬
cago,
Surface Lines and the Chi¬
cago
Rapid Transit Co. are in
Federal court receiverships, and
large corporations and the prin¬
cipal executives of the companies
through personal solicitation.
Judge Igoe is handling the cases.
At the same time, Judge Igoe
The securities dealers themselves
the bid side at the end
of last week at 95, compared with
97 Vz on April 24.
In the same
period shares of the First National
Bank of Chicago rose 2 points.
Gains extending to 5 points were
had
shown in other bank issues.
Both
Commission.
the
file
to
case
the
various parties
requested
briefs
unification
the
Judge Igoe said: "If
no authority to pass
briefs,
this
question
than
happier
will be
one
no
court."
this
The
before Judge Igoe was con¬
case
tinued
to
May
preparation
of
17
to
the
permit the
petition for
Harry M. Payne, partner of Webster, Marsh & Co., was nominated
Chairman of the Board of Governors
of the
Chicago Stock Exchange, it was announced on May 4 by Paul
H. Davis, Chairman
which
filed
serious
proposition,
that the whole thing
now
(the merger
its
to
following
man
M.
of
seems to have been done
naught," William H. Sexton,
special traction authority for the
city, told the court. "This leaves
conditions chaotic right now when
for
John
Bil¬
E.
Dempsey,
Dempsey-
feeling
raises the question of the
Detmer & Co.;
I
increase
can't
help
for
ask
Fletcher
F.
Garlock, F. S.
Moseley
Mayor Kelly said the city's re¬
will
W.
lings,
Sadler
& Co.; Joseph
ICC's authority."
quest
present
the need
service.
that this
Governors:'
Chair¬
Board,
Alfred
L.
Baker & Co.;
Betts,
the
for
conditions
the
nominated
were
three years as
serve
Arthur
plan)
war
of the Exchange's 1943 Nominating Committee,
report of nominees of all offices to be filled at
annual election to be held June 7 next.
The
"Chicago is now confronted with
very
on
to succeed Arthur M. Betts as
rehearing.
a
working
men
Harry Pape Nominated As Chairman Of
Governing Board Of Chicago Stock Exchange
the ICC has
on
725
on
discussing the
authority in rejecting the
plan.
In asking for
sion's
about
quoted
in the
extent of the Commerce Commis¬
R.
.
&
Charles
Co.;
rehearing of the case
for an opportunity to
P
e r r
i go,
Street, was nominated for a oneyear
term.
ernors were
Watler
/
J.'
This slate
of Gov¬
,
nominated to succeed
Buhler,
M.
Ralph
Thomas E. Hosty, Harry
M. Payne, Richard
W. Phillips,
Sampson Rogers, Jr., and R. Ar¬
thur Wood, whose terms will ex¬
Cleary,
pire upon the election of their suc¬
cessors.
Messrs. Wood and Cleary
retiring from the Board be¬
of the provisions of the
Constitution of the Exchange lim¬
are
cause
iting the election of Governors to
two successive terms.
Walter J.
Horn blower
Buhler, Thomas E. Hosty,
posed financial structure of trac¬
&
tion
unification "at any rate of
Frederick
J.
fare
necessary
to make the fi¬
out even." The city
Stannard,
135
Richard
W.
the soundness of the pro¬
prove
nances
come
that "there has to be
Street;
Bar¬
rett
Harry
M.
Payne
Wendell,
Lee
a
high enough to support the
rate
Weeks;
South LaSalle
structure."
Higginson
Corp.; Edwin
T. Wood, 120
Chicago Municipal Bonds
Bonds of
sold
feature
a
Chicago governmental
at all-time
highs to
strong municipal mar-
Elmer
for
a
A.
Kurzka,
Fred
W.
Co., was nominated
two-year term, and John R.
Fairman
&
Burdick, Jr.,
208
South
Phillips and Sampson Rogers,
Jr. are the other retiring Gov¬
ernors.
Arthur M.
Betts, retiring Chair¬
has served five consecutive
terms as Chairman of the Board
of Governors of the Chicago Stock
man,
Exchange.
Mr. Betts has served
longer as the elected
Exchange than
South LaSalle Street.
units
Commission
raise
to
departments of downtown banks
had
the job
of covering 3,500
a
Monday
definite
that the petitioner (Chi¬
Transit Co.) will possess,
pursuant to all of the proposals
submitted
herein, the financial
resources required to acquire fa¬
cilities
was
mittee appointed by
cago
no
<
Mr. Whipple's job
in subscriptions
$276,000
to
the
benefit
fund,
which represented the difference
•with
in
met with no
of Edward J.
plan
favor
on
Kelly
Commission
ability
exists
public adequately at a reasonable
CHICAGO
Teletype CG 1122
on
Co., and President of the InBankers
Association
vestment
were
previously had opposed the 8-cent
street-car fare, but the Mayor said
"There
Common
Decision Irks Mayor
by
under
N. Whip¬
ple, partner of Bacon, Whipple
stocks
would
loss
part of the street-car com¬
pany,
The
bonds.
Action
conducted
was
Fund of Chicago of a total
$6,215,000 of bonds held in its
investment account.
The liquida¬
of
for
decided
was fi¬
unification plan
the
in
been
nancially uhsound.
CHICAGO
Andover
it
that
years.
that
La
the
Metropolitan f
in
drive
the leadership of Jay
any
tion situation back into the virtual
Ryan-Nichols
South
of
rejecting the unification plan, had
the
effect
of
casting the trac¬
muddle
105
decision
156
across.
The
pal Employees' Annuity and Ben¬
between the prices paid for the
even claim it can obtain
substantial loan from the Re-!' tax-exempts and those at which
construction Finance Corporation they were sold.
The benefit fund
made a $6,000,000 investment in
or from any other source."
the new Treasury 2s of 1950-1952
the
CG
job of putting the Treasury;
drive
does not
price of 6 to 10.
Tele.
1430
Chicago
from
Meanwhile
the
the
mortgage
a
Andover
Phone
percentage" advance in moving
AMPCO METAL
Salle St.
CHICAGO
After
analyzing the winning
capital
necessary
to modernize
its equipment and facilities to a bids, bankers declared that Chi¬
cago
bonds
never
before
had
degree sufficient to afford ade-1
The
quate mass transportation opera-.! traded at such high levels.
tion by the medium of sales of sale resulted in a book profit of
bonds
So. La
208
efit
week, following a decision of the Illinois Commerce
Commission in rejecting a plan to provide one great local trans¬
request)
on
the
was
principal
of
Rejected
Prices of
the last two
Common Stock
Indianapolis
and
Retirement Board of the Munici¬
For Chicago Tractions Made Permanent;
Unification Plan
DEEP ROCK OIL
(Copy
sion
York
Stock Exchanges
v.;
ket in the late stages of the Seqond War Loan drive.
The occa¬
an
analysis of
York
New
Chicago Brevities
prepared
Exchange
exchanges
231 South LaSalle Street
the Principal Exchanges
105 West Adams Street, Chicago
Milwaukee
Boston
$tock
principal
all
Member New
vr;
York
and
■
INCORPORATED
v
Members
v
New
t
C.ALLYN™COMPANY
FAROLL BROTHERS
THOMSON & McKINNON
Price $1.
use.
LaSalle
any
head of the
other mem¬
ber.
Paul B. Skinner,
Hornblower &
Leo M.
Apgar, Apgar,
Daniels & Co.; William A. Fuller,
Weeks;
THE
Number 4176
Volume 157
William A. Fuller & Co.;
V
John J.
Griffin, 120 South LaSalle Street,
and
Henry
L.
Vehmeyer,
120
South LaSalle Street, were chosen
nominees
as
the
for
1944
Consolidated Dearborn Corp'n
Chicago Rys. A 5s of 1927
Preferred
CRUTTENDEN & CO.
C. L. Schmidt & Co.
,
Members New York Stock Exchange
Telephone
Established 1922
CHICAGO
announcement
had the following .to say regard¬
Exchange's
Kneeland & Co.
INCORPORATED
Private
Direct
Stock Exchange
BOARD OF TRADE BUILDING
'
Wires
to-
and
East
BLVD.,
CHICAGO
8(586 and Postal Telephone
Tel. WAB.
West Coasts
Chicago, Illinois
JACKSON
W.
141
209 South La Salle Street
Teletype
Chicago 35
;
Tele. CG 878
Tel. Randolph 6960
and Chicago
Dearborn 0500
120 South La Salle Street
Bidgood.
The
Coal Co.
United Stock Yards
ber, Jackson & Curtis; Frederick
R.
Tuerk,
Cruttenden
&
Co.;
Chancellor Dougall and Clyde H.
City P. S. Co.
Federal Screw Works
Common
Nominating
Kansas
Chicago, Wilmington & Franklin
Reliance Steel
Nom¬
Commit¬
tee which presented the report on
May 4 consisted of Paul H. Davis,
Chairman, Paul H. Davis & Co.;
Michael J. O'Brien, Paine, Web¬
1943
Howard Aircraft Corp'n
Trading Interest in:
inating Committee.
The
1759
COMMERCIALS FINANCIAL CHRONICLE
610, 641 &
CG
Tele.
642
ing Mr. Payne's career:
nominee
Payne, the
M.
Harry
of
Board
the
of
Chairman
for
Sigarlh Johnson How
Governors, is a partner of the
firm of Webster, Marsh & Co., 120,
South LaSalle Street.
His firm"
has
been
of the two general
one
Exchange
the
dealers on
odd-lot
1924, and are also specialists
23
issues on
the Exchange,
since
in
(Special
Johnson
Radio Corporation of
Swift & Co., three
of the most active dual listed is¬
Edison Co.,
Mr.
and
Ife
Chicago.
in
School
in the
department of the
Chicago "Tribune" in 1918. When
the "Journal of Commerce" was
started his business career
continued
Payne
Mr.
that
with
work
advertising
his
and continued in the
advertising business until he was
admitted to membership in the
newspaper,
Exchange
on
has been on
Nov. 8, 1922.
He
the floor of the Ex¬
thereto was
CHICAGO,
"
prominently iden¬
the Chicago
Stock Exchange since he was first
elected a Governor in 1929.
He
has served on practically every
committee of the Exchange since
that date. He has been a member
of the Executive Committee for
three years and was Chairman of
that group during a part of 1942.
He has been
tified officially with
Wills Harris, Hail Go.
(Special
to
The Financial
Chronicle)
ILL. — Hempstead
Washburne has become associated
CHICAGO,
—
Marion R.
Stock
the New York and Chicago
Mr.
Exchanges.
associated
Baty
has/been
with the firm as man¬
of the government and mu¬
ager
nicipal department.
ue.
has
with Doyle,
Culbertson
he
was
Co.,
La
So.
will send, upon request,
STOCKS
•
Straus
Securities
Co.,
So.
135
Marmon-Herrington
of
Co., Inc.,
The Steel Products En¬
-V'.';.
Salle
St., will send to anyone, on re¬
quest, late earnings and data on
Machine
Gisholt
General
Co.
Box
will
firm
This
Common,
Co.
Corp. ^Common,
Steel
Reliance
.
Common.
furnish
also
quo¬
all Chicago Real Estate
on
Securities.
tions.
...
for many
years Vice-President for Brokaw
& Co., forming his own business in
was
$
...
Cruttenden
Salle
memorandum
1932,
So.
209
La
recent
furnish
on
■'r-fX-i
'
,
*
*
Kneeland
&
*
Co.,
circular
There
is
.
V.'■
sj«
Thomson
.market.
McKinnon's
of the
Consolidated
the
in
should
price of these tissues, and
be
of
interest
to
holders
and
prospective buyers.
Copy of
the Review may be had, free of
charge, by addressing the Statis¬
tical Library, Thomson & McKin¬
non,
Investment Securities
Public
was
Utility
Industrial
231 So. La Salle St., Chicago.
in the
in
Exch. Members
E. H. Rollins & Sons
CHICAGO, ILL.•—Memberships
The Chicago Stock Exchange
have been posted for transfer to
■
%
•
v-'.v' •/•/v- and Dr. Henry
'
V'.■
•
,
John J. O'Brien & Co., 231
This advertisement is neither
an
offer to sell
nor a
solicitation of
an
So.
Issues
Trading Markets
Leading Over-Counter Securities
We Maintain Active
showing Balance Sidney L. Castle of Chicago, part¬
Sheet and up-to-date figures.
On ner of Carter H. Harrison & Co.,
•
Railroad
-
Municipal
-
"Incorporated
South La Salle
135
.
'
/
- •
offer to buy any of these securities,
-
.
Central 7540
CG 530
Direct
Wires
'Principal
G. Langworthy of
Dubuque, Iowa.
Street,
CHICAGO
Dearborn Corp.,
request.
Blvd., Chicago
of
weekly
May 3 highlights the further gains
141 W. Jack¬
on
Board of Trade
141 W. Jackson
&
Review
York Stock Exchange
New
and Chicago
interest
in the rubber stocks group
securities
DANIEL F. RICE & CO.
Members
considerable
To Be Cgo
Blvd., have just completed a
revised
$
Le Roi Co. com¬
stock, upon request.
mon
son
■
Co.,
&
will
St.,
*
#
COMMODITIES
St., have, through their
Statistical Dept., prepared recent
To
Cities
the
Offices In
Throughout
Our
Country
•
«■
Specialists
The offering is made only by the Prospectus.
CHICAGO AREA
$7,500,000
Cul-
Salle Street.
BONDS
-
Salle
La
*
*
Caswell & Co., 120 So. La
tations
TRACTION SECURITIES
•Solui Morrell & Co.
!
%
Fifteen Year 3% Debentures
Mr.
with
Due
Dated May 1, 1943
Prior thereto
Stuart &
Brailsford & Co.
May J, 1958
208 S.
with William R.
Inc. and
analysis, which is available on
request.
in all
associated
O'Connor & Co., Inc.,
Mason, Moran & Co.
have recent figures
contained
Metal, Inc.,
Ampco
on
request.
Financial Chronicle)
previously
208
Co.,
&
*
to aid returning govern¬
ments in their preliminary opera¬
become
South La
135
CG 972
'
-X-r'X.X *
Stock, showing recent earnings.
or
.7
-
Ryan-Nichols & Co., 105 So. La
gineering Co., and Foote Bros.
Gear & Machine Corp.
Sent on
Government at
,
Randolph 5686
request.
analysis of Vinco Corp. Common
Boyle, O'Connor & Go.
bertson
on
analysis
Salle St.,
and
v
(Special to The
may
accommodated, as an extra
stock
has been printed
and is
available at the cost to Adams &
help set up civil governments in
the countries reclaimed from the
f
231 S. La Salle St.
finan¬
standpoint.
be
University of Virginia.
This
school
trains
administrators
to
G. Culberlscn Wills
Copies
in
the
Clarke
complete picture of
a
historical
and
separatte pages of this brochure,
Brailsford
CHICAGO, ILL.—John Walter
Clarke, President and Treasurer of
John W. Clarke, Inc., 135 South
La Salle Street, has been commis¬
sioned a major in the U. S. Army
and.
will
leave
shortly for the
Major
This is
cial
Salle St., now
issue,
Listed and Unlisted
the four companies from a
Co
School of Military
a
transportation and real estate.
Dealers who request reprints of
one
SECURITIES
St., have
comprehensive booklet
Aetna Life Affiliated Compan¬
ies.
lumber, coal, utilities,
describes
*
Salle
La
So.
209
Diversification is the keynote
covers
,y.
Paine, Webber, Jackson & Cur¬
on
and
$
*
compiled
market
which
on re¬
MIDDLE WESTERN
Iv,/- X:.;
enhancement pos¬
sibilities, which are benefiting at
the present time, because of their
direct or indirect war participa¬
tion and potential post-war val¬
Hall & Company, 111
Liphardt With Dickson
(Hpecjal to The Financial Chronicle >
West Monroe Street.
Mr. Wash¬
burne was formerly Chicago cor¬
CHICAGO, ILL. — Edward H.
respondent for the Mercantile- Liphardt has become connected
Commerce Bank & Trust, Com¬ with R. S. Dickson & Co., Inc., 135
Mr. Liphardt
pany of St. Louis. Prior thereto he S. La Salle Street.
was
with Farwell, Chapman & for many years was with John W.
•
Co., was an officer of McGowen, Clarke, Inc.'
Cassady & White. Inc. and the
First of Michigan Corporation.
CHICAGO, ILL.—John C.
Chicago Slock Exchange
Information
6s of 1960-61.
tis,
with Harris,
.
exceptional
an
Government of Teru,
and
Curb,
job of compilation, art work and
is in color.
There are 15 situa¬
Clarke A Major
Axis,
Hempstead Washburae
ILL.
Baty will shortly become a part¬
ner in Wayne Hummer & Co., 105
West Adams Street, members of
that
since
continuously
change
time.
& Co. and prior
partner in Blake Brothers.
Wayne Hummer Go. To
Llaricn R. Baty
advertising
Organized,
This is
Members
New York Slock Exchange
dis¬ quest.
dealer
for
available
tribution.
Super¬
'
Capital Gain" and have additional
copies
American
on
2nd Pfd., listed on N. Y.
power,
For
Opportunity
Present
With
erage
is 44 ypars of age
graduate of Hyde Park
a
High
with Shearson, Ham-
their
data
terse
HICKS & PRICE
St., have compiled some
La Salle
receiving compliments on
new
brochure, "Securities,
are
tions- which offer better than av¬
a
Payne
is
was
So. La Salle
Adams & Co., 231
St.,
the Board.
on
sues
mill
and
America
The Financial Chronicle)
to
CHICAGO, ILL. — Sigarth N.
Johnson has joined the staff of
Alfred O'Gara & Co., 209 South
La Salle Street.
In the past Mr.
which are Commonwealth
among
Chicago Recommendations
With Alfred O'Gara
Charles Sincere &
La Salle St.
CG 95
Tel. State 9868
Price 99% and accrued interest
Co..A:'
The
[Thomson, McKinnon f
Florida Offices Open
Thomson
,
nounce
McKinnon
&
office
at
Palm
Florida, for the Summer,
be obtained in any state in which the announcement is circulated from
their
Beach,
but that
A. G. Iteeker & Co.
....
.
The First Host on
Hallyarten & Co.
office, which is
Central
.-
.
Corporation
M.ehntan ftrot hers
St.
during the Sum¬
Lee
months.
under¬
distribution of securi¬
ties, providing investment dealers
with
attractive issues
for their
clients. Maintaining no retail de¬
-
Itiyyinson Corporation
Smith. Harney & Co.
Morrill Lynch. Pierce. Fennor & Reane
Harris, Hull & Company
May 12,1943
of our own, we compete
with dealers, but serve
exclusively.
Inquiries in¬
partment
in
no
them
way
vited.
(Incorporated)
The Wisconsin Company
floyd d. chiif
120
Petersburg will
also remain open
Republic Company
-
.
Incorporated
lAidenhury. Thalmann & Co.
(Incorporated)
year-round office/ Their offices
at
Miami, Jacksonville, Tampa,
and
specialize exclusively in
writing and
a
Orlando
SERVING INVESTMENT DEALERS
We
an¬
their headquarters at their
West Palm Beach
such of the undersigned as are
compliance with, the securities law in such state.
personnel of that office will
make
mer
may
registered dealers and are offering these securities in
that they have closed
seasonal
the
Prospectus
South La Salle
Chicago
co.
Street
THE COMMERCIAL & FINANCIAL CHRONICLE
1760
Thursday, May 13, 1943
Louis W. Roland With
National Fire
Insurance
York
New
blemoeri
and
Slock
DIgby
Telephone
Bell
L
4-2S2S
York
CITY
as
It is
Insurance Stocks
e. a. van deusen
of fire insurance stocks on the
that this year's premium
Generally speaking, it seems quite certain
will, in all probability, exceed that of last year; that total
funds available for investment by the companies are larger than in
of last year's ocean marine
loss
ably
On
favorable
less
the
recent
of
that
with
etc.
years,
side,
Association
Off¬
vested assets will be lower.
setting
fact
funds
Analyzed
item
is the
average volume of
invested by the companies
this
last
Inquiries
of
and
price of
has
stocks
insurance
First
York
New
lows of
April 29, 1942, the appre¬
ciation
has
31.5%.
At present
"
;
market levels, what
does the investor in fire insurance
is
money? '.This
and it is > en¬
get for his
fair
a
question,
titled to
fair
a
however,
necessary,
It is not
answer.
elaborate
to
what has already been told so
on
times regarding the funda¬
many
mental
the fire
insur¬
business, the diversification
ance
of
of
nature
risk
long
which
it represents,
successful history
and
earnings and .dividends, etc.
its
of
This
Pacific
•
story, and it can be
granted that the fire in¬
old
an
taken for
business
surance
exist
will
so
free enterprise exists, and
that the "old line" companies are
long
as
going to stay in business to grow
and
prosper
as
the nation grows
and prospers.
.
The pertimept
question is; what
are
representative fire insurance
companies earning, and what earn¬
ings can the investor buy with
low
for
statistical reply is attempted
a
a
of 28 representative
companies, on what would appear
o
be a fairly reasonable basis of
earnings.
Current
Yield
Div. Yield
Earnings
Agricultural
Eankers
&
Northern
4.6 %
47.0%
8.3
2.8
33.8
73'/2
8.1
4.4
54.3
7.22
8.0
4.5
2.70
7.4
3.8
51.4
4.9
66.2
102
:
:
7.4
7.58
United
States
Fire Association
St.
Paul
Fire
&
Marine
Fidelity-Phenix
Boston
__
4.54
6.8
3.8
56.0
_
18.10
6.5
3.6
55.4
3.17
6.4
4.4
68.8
38.95
6.4
3.5
54.7
50
607
? '
.
...
_
..
F.
&
Insurance of
N.
American
(New
National
Fire
__
3.7
4.1
4.63
5.9
3.2
54.3
1.40
5.9
5.0
84.7
3.18
_
__
ings
for
ured
on
net
3.8
71.5
•2.6
51.0
1.48
4.9
4.0
81.5
4.9
56%
2.65
4.7
3.2
income
4.14
4.7
3.4
operating earn¬
1942
reduced
5%, plus net underwriting profits
averaged for the five years from
1937
to
1941
inclusive.
Net
un¬
derwriting results for 1942 were
given no consideration in view of
their abnormal character.
Brunswick and
a
tween
a
dividend yield, the
4.0% and ranges be¬
high of 5.5% for New
is
issued
Ira
by
'
national
If
an
in
interesting
retained in the business.
choice.
yield,
But
is
he
he
looking
has
should
for
quite
look
a
be¬
of
holders
ness
which dividends bear to
Bank
are
shown
in
earnings,
the
last
5.3%,
a
below-average
yield of 6.2%, 85.5%
earning
of earnings
as
dividends and only
record
of
York
New
as
of
the
of
close
Industry Series
Agricultural
Automobile
coverage
Stock
ended
123,792 to
_______
Government Bonds Series—.
Insurance
Stock
Series
DISTRIBUTORS
of
GROUP,
assets
amounted
on
to
$8,720,010,
which
equivalent
to
$19.96
per
was;
share.
vance
This
an
ad¬
year-end
$16.12, and a gain of
represents
of 23.8% from the
valuation of
50.0%
for
the
full
12
months'
Prospectus and
period.
investment
increased from $34,253,145
$44,500,970 and the number of
shares-outstanding increased by
more
than
48,000 shares.
Net
asset value
per
share increased
from $14.64 to $18.62.
From the
to
of
France
on
June
from
or
Established 1SQ4
One
Wall
Street, New
York
10, 1940,
Insuranshares
assets
on
Certificates,
March
31,
Inc.
1943,
totalled $4,759,657 and liquidating
value
per
share
amounted
to
$9.74.
Custodian Funds
Certificates of Participation in
Trust Funds
investing their capital
.12
a^
follows:
Series
.22
B-l, 2, 3 and 4 in Bonds
.12
.13
Series
.18
K-l, 2 in Preferred Stocks
.16
—
Series
S-l, 2, 3, 4 in Common Stocks
.19
Series
—,
Series
.11
—
Utility Industry Series
Railroad
Steel
dealer,
CALVIN BULLOCK
value
fall
additional
data obtainable from your own
,00
Oil Industry Series
Public
YORK
.
.24
Merchandising Series _U.18
Railroad
Incorporated
63 WALL STREET— NEW
Machinery Industry Series,——
Metals
Request
Investor?, Inc.—
March 31,
1943,
.13
Series,—.
on
during
the
quarter
31, 1943, from $9,$10,858,925.
Net asset
share increased from
.18
Series—
Industry
Prospectus
March
Series__
.10
Series..—,35
Industry Series—,—
Business Equip. Industry Series
Chemical Industry Series,
Electrical Equip. Industry Series——
Food
A Class of Groip Securities, Inc.
$.17
.
Supply
Building
SHARES
Chemical Fund, Inc.—Net assets
increased
Industry
Industry
■
per
busi¬
Alcohol & Dist. Industry Series
.15
.09
...
Equip. Industry Series.,,—
Industry Series,,,:
Tobacco
distributed
asset
This
May 5.
Aviation
which
Directors
of
RAILROAD
share of $3 preferred
stock
and
asset value of $12.04
per share of class A stock. Vc;.' r:.:fi
—Net
declared the following
dividends
on
the
Special Stock of
the
Company, payable May 25, 1943 to stock¬
yond this to earning yield, which
is far more significant.
Particu¬
larly significant is the percent
and
to
$3,-
loans were
•
has
Inc.,
Se¬
31, 1942.
Capital Administration Co., Ltd.
assets after deducting $1,-
,
Board
Fund,
to March 31, 1943, the net asset
value per share increased 55%.
NOTICES
YORK STOCKS, INC.
NEW
The
investor
Dec.
Investors—During
the first quarter of 1943 net asset
Stocks,
dividend
on
Incorporated
retained
Custodian
"S3"—During the fiscal year
ended March 31, 1943, net assets
increased from $349,237 to $1,033,577. Net asset value per share
(Continued on page 1773)
• •
as¬
an
memorandum
a
Keystone
ries
31, 1943, exceeded
utility
systems, value per
attractive vehicle $8.91 to $9.65.
for participation in the' rise in
Fundamental
prices of utility shares, according
Net
low of 2.6 % for
Hartford Fire.
than
Eastern
represents
DIVIDEND
Aetna.
As regards
average
whose holdings are
ment company
87.8
4.3
that, on this column. It will be noted, for in¬
basis, the average earning yield stance, that an average 62.8% of
for the group is 6.37%, that 12
earnings are distributed as divi¬
stocks
show
an
earning yield dends, and thus 37.2% are rein¬
above average and that 16 stocks vested in the business.
An in¬
show an earning yield below av¬
teresting example of an individual
erage.
The range is from 9.8% stock is Home, which shows an
for
Pacific
Fire
to
4.7%
for above-average dividend yield of
and
United
48.6%
It will be observed
Phoenix
Attractive
preference stock
of
Corporation,
an
invest¬
..
—Net
$3
72.4
company are fig¬
basis of net invest¬
for
The
68.1
88%
March
on
amounted
dividend yield of
3.8%, an above-average earning
yield of 7.4%, 51.4% of earn¬
ings distributed as dividends and
62.9
3.4
5.3
5.1
each
the
5.4
2.51
4.85
1.37
_
United Corp.
March
31,
1943,
$454,673. During the
fiscal year, net asset value per
share
increased
from
$17.90 to
$23.78, or more than 32%.
ended
year
$44,000,000 and were 18.3% high¬
$89.79
below-average
81.5
sets
Shares, Inc.—Net
March 31, 1943.
Another
59.6
30%
__
_
___
Estimated
4.8
3.4
47
——
_
•?
5.9
5.7
95%
__
__
•:
1.23
2.38
.
Dividend
on
the business.
example is
Providence-Washington
with
a
69.5
$6,078,483,
which
was
equivalent to a liquidating value
of
$24.84
per
share of capital
stock outstanding.
897,255
partner in Eisele & King.
Se¬
amounted to
talled
prior thereto was a
16.5%
60.6
5.9
59%
___
__
Phoenix
ment
6.1
2.85
20%
__
_
_
American
Aetna
_
_.
Hanover
63.9
Corp.—
1943, to¬
bank
85.5
3.9
41%
—
_
Haven)
Hampshire
5.3
6.1
Investing
March 31,
on
of
York City and
Fund,
$1.94 to $3.29 a share,
Street
Broad
er
Custodian
Keystone
ries "SI"—Net assets at the fiscal
gain of 69.5%.
300,000
Co.
6.2
from
year
individual floor broker in New
62.8
78%
_
_
Equitable
Security
Hartford
.:■*
23%
America-
Alliance
American
4.8
7.74
__
be
77.4
4.0
6.2
.
48%
M.
..
will
A. Augenblick, Exchange
member, and Richard E. Kohn.
Mr. Augenblick has been active as
3n
of
Net assets
exchanges.
Copies of the memorandum dis¬
cussing the situation may be had
upon request from Ira Haupt &
1.87
30%
—
...
River
Springfield
6.37
1.80
29
_
1943, iincluding $10,debentures outstand¬
ing, totalled $22,025,053 as com¬
pared
with
$16,938,056
a
year
earlier.
Offering price of the
common
stock
rose
during the
,
Harry
leading
1.54
_
Great
_
Partners
hand:
31,
000,000
partner in Ran¬
76.4
281
_
•ii-v-:
_
51.4
5.5
__
_
Continental
New
_
______
_
Home
North
_
3.7
7.2
V-•
Average
Franklin
__
____
_—
7.2
2.35
66%
_—
3.92
32%
—
March
Prior
Company.
a
Place.
Edison
to
54%
Fire
Brunswick
New
&
was
Haupt & Co., Ill Broadway, New
York City, members of the New
York Stock Exchange and other
'
rarity in investment company re¬
appreciation" is an<s>-
Affiliated Fund, Inc.—Assets on
department
Kohn, members of the New York
Exchange, will be formed
as
of June 1 with offices at 14
56.3
36%
—
—
5.90
90
—
__
_
Shippers-..
Providence-Washington
9.8%
14.65
$10.56
'
176
a
■
bond
utility
stocks
"unrealized
first quarter reports now at
Stock
large
Div. % of
Est. Earn.
107%
public
the
of
industrial
concentrated for the most part in
Est. Net
—
Stock
NEWARK, N. J.—Augenblick &
group
assumed
something of
was
going on not only in the
markets, but in the' investment
company field as well.
I The following figures are from
other
and
In the tabulation be¬
his dollar?
Op. Earnings
Fire.
of the New York
NYSE Firm In Newark
is
Quarter Reports
which in recent years of depressed mar¬
been
City,
ftugenbiick & Kohn,
5-4-43
National Union
York
New
a
280
L. A.
-
become
item
eloquent testimonial of what has
>
Asked Price
Company
or
become
Angeles
San Francisco
-
279
A.
LOS ANGELES
scribed by different accountants, represents the excess market value
cost of securities held. The existence of such excess market value
cipal of James P. Cleaver & Co.,
Inc.
.V
: ; v
;.:^Vv;,Y.rr
Seattle
L.
had
ports
Goodbody & Co.,
Broadway,
Greene
index of 18
1942, to 115.2 on May 5, 1943, an
appreciation of 9.3%.
Since the
been
Chicago
-
TELETYPE
sheet
A balance
WIRES
PRIVATE
steadily mounting since the close
1942.
As measured by Stand¬
stocks, they have advanced from
an
index
of 105.4 on Dec. 30,
with
thereto he
CALIFORNIA
210 West 7th St., Los
been
of
& Poor's weekly
has
Cleaver
P.
James
of
(P. C. T.)
\
JERSEY CITY
the
dolph & Cleaver and was a prin¬
OF
Meanwhile the market
INCORPORATED
over
ager
Orders solicited.
invited.
tnv.S
Goodbody Trading Depl
and
Butler-Huff & Co.
throughout 1942.
stocks
Compared
-
Booklet Service
Brokers.
&
1943 will be substan¬
throughout
ard
Dealers
Trading daily 7 a. in. to 5 p. m.
tially above the average invested
fire
Reviewed
-
to
*
Investment Trusts
leading na¬
tional exchanges, in their trading
department.
Mr. Cleaver was formerly man¬
Quoted
-
Bulletin and
Special
the
that
Sold
*
Jas P. Cleaver Joins
Exchange
BANK STOCKS
-
Prospectus on request
again to be found rather frequently in their statements
for the quarter ended on March 31, 1943.
This item, variously de¬
members
Bought
t
CHICAGO
kets
115
INSURANCE &
creasing, that taxes will be higher,
and that the rate of return on in¬
'
63 Wall Street, New York
Mr. Noland is a former
associated
that expenses are in¬
it is known
«*'***
v
volume
1942; that there will be no repetition
experience; that the burning^
ratio is likely to compare favor¬
-
■■■
■
'VtfA•>•'*»/
A. • •
of
Saratoga Springs Rotary Club.
simple matter to appraise the relative investment worth
basis of near-term earning prospects.
no
.
president of the Saratoga County
Bankers
,y|by
:
Lord, Abbett >r. Ca
&
known
Bank and continued in that office
until 1941.
—
Av..V.;.'.
i
the Saratoga
State Waters Corporation, which
was acquired in 1932 by the State.
In 1933 he became president of
the reorganized Saratoga National
Bank and Insurance Stocks
This Week
y
the
State of
New
the organizer and operat¬
executive
ing
1-1248-49
Teletype—NY
well
is
Noland
Mr.
Gibbs. Manager Trading Department
A
iJ \
d i
s
:•>: f .f
throughout
Telephone: BArclay 7-3500
NEW YORK
1 WALL ST.
^
York Stock Exchange, in their In¬
vestment Department.
Exchange
NEW YORK
BROADWAY,
120
exchangee
leading
other
Exchange
Stock
'
Co., 120 Broadway, New
York City, members of the New
Laird, Bissell & Meeds
York
Noland,
Springs,
&
son
Unlisted Issues
New
formerly of
New York, is
associated with Finch, Wil¬
now
Inquiries invited in all
Members
W.
Saratoga
Stocks
Pittsburgh
Fire of
Louis
Insurance
National Union
AFFILIATED
Finch, Wilson & Co.
Bank and
Industry Series—
T.
F.
.20
i— .17
.25
'__—
CHALKER, Treasurer
Prospectus
from
may
authorized
The PARKER
ONE
COURT
be obtained
Prospectus may be obtained from
local investment dealer or
your
dealers, or
CORPORATION
ST.,
BOSTON
The Keystone Corp. of Boston
50 CONGRESS
STREET, 'BOSTON,
MASS.
;.r\1
Volume
of
the Commission has
action to
enjoin proxy solicitation or the
holding of a stockholders meeting
Desirable For All Concerned
remuneration
and
14
tion
aggre¬
Act,
power to bring an
•
.
contained in Sec¬
acts
or
will
or
relatively short
was
"
All Issues
is
person
any
the
practices which constitute
constitute a violation of
.
or
.
Bought—Sold—Quoted
of
regulation there¬
(Italics supplied),
provisions of (the Act)
Congress merely del¬
any
rule
egated complete authority to the
Commission to make such laws under,-.
and simple."
$260.00 from
General
Cable Corporation, $220.00 from
? Revere
Copper and Brass Incorporated and $100.00 1 from
; two of said foreign corporations;
.
v
'
"(and so on for half of another
printed page.)
[The following is an excerpt
from
the
recent
proxy ; state¬
gating
that
Commission
Dominion of Canada
shall appear to the
it
"whenever
engaged or about to engage in any
(Continued from first page)
John
C; Emison of the Act was
Corporation;
the
the
Simplification Of Proxy Rules
/ received
1761
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4176
157
or
Wood, Giundy & Co.
regarding proxies as the Commis¬ i; Armed with the foregoing au¬
sion saw fit through the adoption thority,
the v Commission
pre¬
of whatever rules or regulations scribed its first proxy rules in
1
Incorporated
it wished— September, 1935. They were quite
Bell System Teletype NY 1-920 ■
enactment sim¬ simple and did not materially
change previous corporate prac¬
ply making it unlawful to so¬
licit proxies for listed securities tice.
They
did
prohibit
the
"in contravention of such rules solicitation of proxies by means
and regulations as' the Commis¬ of any communication or ..state¬
sion may prescribe as necessary ment which was false or mislead¬
:'/5 By BRUCE WILLIAMS
or
appropriate in the public in¬ ing with respect to a material fact
terest or for the protection of in¬ and
required the filing of the
Although everyone agrees that a pay-as-you-earn tax system
vestors."
Thus,, the only legisla¬ proxy solicitation material with has manifold advantages, particularly in a wartime economy, we are
tive guide-posts for Commission the
Commission—thereby bring¬ still fighting over the details of an acceptable plan. As this is written
proxy
regulations
were
their ing into play the above outlined the Senate version of the Ruml-Carlson skip-a-year plan appears to
necessity or appropriateness "in criminal, civil and injunctive pen¬ have the best chance of enactment.
where
the material
was
the public interest or for the pro¬ alties
Canada is on a pay-as-you-earn tax basis.
And for the benefit
tection of investors."
The Con¬ false
or
misleading.
This,
of of our collectivist-minded Treas-^
Minister pointed out, this makes
gressional committee reports did course, was desirable and height¬ ury Department, it should be
it possible to rewrite contracts,
not throw much additional light ened the care taken in prepara¬ noted that the Canadian system is
upon
the legislative intent, al¬ tion of proxy solicitation material a modified version of the Ruml reducing cost to the Government,
though the Senate committee was to see that it met the tests of plan. What may be news to some keeping profits on a reasonable
"Any officer of the Corpora¬
tion and also any director of
the Corporation other than a
I director acting only in that ca-
(except Mr. Grace, the
pacity
a director of the
Corporation, who has waived all
right to a pension thereunder),
may be eligible to participate
:.'J President and
;
the Amended Pension Plan
; in
'
Sub-
and
Corporation
the
of
'
that
subject
1115/ Canadian > Securities 55/51
poration.]
;
the
on
the Congressional
Steel: Cor¬
Bethlehem
of
ment
Companies which was
approved by the stockholders of
the Corporation at their Ansidiary
interested
apparently
in having
stockholders informed as to "ma¬
•/..
truthfulness and clarity.
Americans,
after Canadian
; nual Meeting held on April 8, jor questions of policy" and the
inviting comments by corporate just such
*1941.
Such Plan provides, in
House committee also seemed to
ment in
and
substance
;
of
by "insiders" and
interest"
their
"disclosure
in
interested
be
that any Employee (ex¬
cept as therein otherwise provided) of the Corporation or of
any subsidiary company (as the
term "a subsidiary company" is
defined in such Plan) of the
; things,
:
However, on Oct. 1, 1938,
!
executives
other
among
Street, New York
14 Wall
.
and
and re¬
lawyers
ceiving substantial remonstrances,
the Commission made a complete
"adequate
explanation
of
the revision of its proxy rules by im¬
management policies which they posing detailed items of informa¬
intended to pursue."
tion which had to be furnished
Thus, assuming such a broad stockholders in the form of a
,
"
delegation by Congress of legis¬
lative power to an administrative
is
however,
business
man
that a
proposed
for
plan to his Govern¬
a
1941—nearly
December,
18 months ago!
The
fund.'
it
proxy
of
ment
his
erroneous
profit is something squeezed out
of the public—that it comes from
plan and finding
hearty endorse¬
business associates,
holding up prices and extracting
more
The approach Mr. Mainguy. submitted the plan
Corporation who, at the time of
to the problem, as contained in to Finance Minister Ilsley.
Al¬
his retirement, shall have had
body does not violate the Consti¬ those rules, is the same as that though
Canada did not adopt
/ at least 25 years continuous
tution, the field appears to be now'in effect uhder the present pay-as-you-earn taxes until over
service and shall have attained
practically unrestricted for the rules. Last Winter, the Commis¬ a year later, Mr. Mainguy has re¬
the age of 65 years shall upon
Commission
to
make whatever sion
again made substantial re¬ ceived official recognition as the
;
his retirement be entitled to a
laws on the subject that it de¬
vision of the rules, which added real originator of the idea in Can¬
pension in a monthly amount
sires; and a fine up to $10,000 and materially to the items of" infor¬ ada..
;
//■: / "/■''' '
; equal to 1% of the average imprisonment up to two years
mation required to be furnished
These facts should in no way
monthly compensation received
may be imposed for "willful" vio¬ and which went into effect Jan.
detract from the credit Mr. Ruml
by him for the 120 calendar lation of any of such Commission15, 1943. /
*
v\ - / /
deserves for having originated the
months next preceding his remade laws. This is only the crim¬
To indicate the breadth of the field plan in this country.
He and Mr.
tirement,
multiplied
by
the inal penalty and in normal course
covered by the proxy rules, while Mainguy do not know each other.
number of years of his continwould be enforced through the
: uous
service, but no pension office of the Attorney General of the term "proxy rules" is com¬ They should get acquainted.
V
"
;•
v'- "V.
/: > .:
,*.
monly used, Section 14 of the Se¬
: -r
y:'.,?:,
the United States.
Some here and in England are
(and so on for another printed
A further penalty, of a
civil curities and Exchange Act ap¬
plies to "any proxy or consent or predicting that the end of the war
.'page.) / v
nature and perhaps more serious,
'
have the
idea that
people
many
completely
the
won
,
"Too
the details of his
that
too large under a con¬
are
tract and to make a voluntary re¬
After working out
Montreal.
of
contractor to tell us that his
a
profits
is Philip N. Mainguy,
man
He added: 'It is quite usual
scale.
statement.
from the consumer.
"The
truth
modern
in
society,'
of course, is
precisely the reverse*
Increased profit cdmes from in¬
creased efficiency which permits
lower costs which permit wider
"
distribution.
/' '
"The motor car industry
for
ex¬
ample: Its profits have increased
in measure as its efficiency and
•
the quality of its product have
creased and their sale price
.
in¬
has
•
been reduced.
,
■
•
•••'•
V
*
•
t
■
;
•
■
.■
that
ocally
.
....
.
of modern
"The whole history
industry ..." demonstrates
,
.
the
most
unequiv-1
profitable
firms have been those which have
.
j
[The following
is an excerpt
statement
from the recent proxy
.of D. A. Schulte, Inc.].
/
/y/
"During said fiscal year
v
2. This Company paid to
the
Tilford
and
V
under
666.67
of $16,agreement
an
which
Company was granted the
this
j.
.
sum
made in 1932 pursuant to
•
. ..
Park
candy under the
; name of "Park & Tilford". This
.'agreement
expired June
30,
sell
right to
r
3.
chases
ler's
Company made purof candy " from
Huy-
This
'
:
(a) of the Act which provides, in
substance, that "any person who
shall make or cause to be made
amounts
in
aggregating
•
$9,691.80. ///;'
J
statement in any application,
any
report or document filed pursuant
pursuant to (the Act) or any rule
or
regulation thereunder . v. »,
which statement was at the time
ization"
may
^'failure/ to
Thus,
the
spect
stock
take
ex¬
form
the
of
or
dissent."
rules
apply to
object
proxy
solicitations
light of the circum¬
under which it was made I
stances
any
change, and the rules themselves
add that a "consent" or "author¬
the
in
and
of/ consents
of bond issues
proxies.
;
as
in
V
•
'
This
March 10,
'
Company
1942.
•
,
v
ious
This
Company
The"
added
kinds of smokers' articles,
which
Dunhill of London, Inc., at prices apgregating
/ from Alfred
'
-
both
to
similar
"
'
the Stockholders,
they considered it
formation upon
even
though
•
At the outset, it should be re¬
membered that the Securities and
Exchange Commission was first
given its authority over proxy so¬
licitation on June 6, 1934, under
the Securities Exchange Act of
1934. This Act provided for regu¬
lation
of
securities
from
many
'
•
The proxy
solicitation provision
-4,
rather
tion
must
as
formalistic
in
not
.V-.'-'.'-/
For
proxy
suant to the proxy.
such as whether or
the proxy is revocable by the
fications
may
subject
to
briefly as follows:
(a) of the Act shall stockholder; a summary of any
1. Election of directors;
rights
of
dissenting
be made by means of any form appraisal
2.
Election of officers other
stockholders with respect to any
of proxy, notice of meeting, or
than directors; '
matter to be acted upon pursuant
*
other communication containing
3. Election of auditors; '
to' the
proxy;
the manner in
any ' statement
which, at the
which the proxy soliciation is to
/ 4. Any plan-providing for re¬
time and in the light of the cirmuneration of any director, of¬
cumstances
under
which it is be made and who is to bear its
ficer or employee or with re¬
made, is false or misleading with expense; and whether the man¬
spect to any other compensation
respect to any material fact, or agement or other named persons
of any director or officer; '
;
omits to state any material fact are/making the solicitation and
5.
Any
amendment
of the
any
direct or indirect interest
necessary in order to make the
which they may have in any mat¬
charter, by-laws or other docu¬
statements therein- not- false or
,
ter to be acted upon pursuant to
or necessary to corthe
proxy. * Apart
from- such
statement in any earlier
communication with respect to formalistic information, the items
the solicitation of a proxy for tof information required in proxy
by the proxy rules
the same meeting or subject mat- statements
ter which has become false or have been classified by the Com¬
rect any
1
(
•
•
'
misleading."
Moreover, under Section 21 (e)
o.
investors
who
of
Canada
and
Can¬
exchange for out-securities of the cor¬
poration;
: : /V '■//'■/* > v
poration
standing
,
8. Any plan of merger or con¬
solidation,. or
any
liquidation
plan or plan involving acquisi¬
tion of the assets/or securities
of another company;
9.
any
.
ment;
6. Authorization or issuance
of
!
securities otherwise than in
exchange for outstanding secur¬
ities of the corporation; ;
be acted upon pur¬
7.
Any
plan
Acquisition or disposition of
property;. •
/ / *•
,
respect to any
10. Action with
•
any
in
'
involving the
modification of any class of semission according to the type of
~curities of the corporation, or the
matter to
y
issuance of securities of the cor¬
These classi¬
summarized
be
14
misleading
'
•
adian
.
•
•
*
interested in the bonds of the.
are
key to profits
and in all • kinds of
and
such."
informa¬
all
1
'
dealers
Dominion
the
as
'■"/ *
*
Provinces, we recommend
business, and Mr. Howe made it the 28-page handbook published
very plain.
As the experience of by Wood, Gundy & Co., Inc. (New:
York office, 14 Wall Street). This
war contractors increases as their
little book contains a complete
operations gain in 'organization, statistical
summary of all issues
efficiency
and repetition' their outstanding as of January, 1943.
! '
'
profits increase.
Constantly, the agement skill.
everywhere
statements,
follows:.
is
shameful.-
or
system of indi¬
enterprise.
Let's recog¬
vidual
said,
"That
illicit
as
nize and honor it
'when he sees how costs
can
be brought down by organ¬
ization, efficiency and repetition.'
requirements of the
statements, cer¬
appear
generally much
profit.
amazed,' Mr. Howe
1
'
'
aspects, and proxy regulation was
only one of the numerous and
varied phases covered.
tain
is
years-
democratic
the
about the real nature of
/ " 'One
recent
Profit is the indispensable fuel of
M.P','s
Canadians
and
proxy
well as
as
war
'
V,/
*"
penalty,,
the
for
mentioned injunc¬
penalties
below
contracts that should show
of 1934, even where
corporations do not have any
to
profit
on
'
}•■
vant.
necessary.
rules
above
Too
about
profit
in
profit.
often they have talked about
of Commons some in¬
House
formation
'
■
'
perfectly, immaterial and irrele¬
Now let's see why this was
As
mentioned crim¬
Section
proxy
had
test
"Businessmen
have talked too little about
"Hon. C. D. Howe recently gave
the
Jisted securities.
"Nov,: solicitation
whatsover
statements is intended. They
to force the foregoing in¬
another
such
itself,
has
of liability,
presumably would apply to
the
the
tive
i'
of the
draftsmen of the above mentioned
criticism
No
Commission,
inal and civil
$13,764.04."
(and so on for five more
items.)
-
change Act
misleading." (Italics supplied).
purchased
merchandise, consisting of var5.
•
making money
out of this efficiency, this man-.
Recognize It"
received
price which was affected by such spect of securities of registered
from Huylfer's the sum of $1,statement, for damages caused by public utility holding companies
386.98 pursuant to an arrangesuch reliance, unless the person (or their subsidiaries) and regis¬
ment for assistance to Huyler's sued shall
prove that he acted in tered investment companies sub¬
in real estate problems.
This
good faith and had no knowledge ject to the proxy rules adopted
arrangement was cancelled on that such statement- was false or under the
Securities: and Ex¬
4.
Each of.
the worker.
,
Also, while the rules originally
with respect
fact, shall be
person (not know¬
or
them is saving or
material
any
consumer
thinking:
well as -.//. "Profit Is Honorable; Let's
misleading
or
<
such
re¬
applied only to corporations hav¬
ing •;< securities - listed on an ex¬
liable to any
change, further rules adopted un¬
ing that such statement was false der the Public Utility Holding
or
misleading), who, in, reliance Gompany Act of 1935 and the In¬
vestment Company Act of 1940
upon such statement, shall have
purchased or sold a security at a make proxy solicitation in re¬
false
to
1942.
•
be imposed under Section 18 authorization in respect of
security", registered on an
may
paid the best wages/had the best
will not -halt the trend
toward skill and management, and gave
collectivism and greater regimen¬ the public the best value for itSv
• ; /
' v '/v'; //;{.■/., v..
tation of the individual by the money.
"Who pays for such profits; out
State..
The
following. editorial
of whose hide do they come? Cer¬
from the "Financial Post" of Can¬
ada is,, a refreshing antidote to tainly it isn't the taxpayer, or the
asset, capital or surplus account
of the
corporation;
11. Action with
-
respect to any
the corporation or of
directors, officers or commit-,
tees or any minutes of meetings
of its directors or stockholders;
report of
its
*
12. A catch-all provision where
action
is
to
be
taken
with
(Continued on page 1762)
re-
THE COMMERCIAL & FINANCIAL CHRONICLE
1762
Oui Reporter On
By S. F. PORTER
The 2s
racing ahead, leading the market from the start
are
.
.
.
,
ities banks
Cctn.
fouy»
gradual price advances in the bond that has a limited number of
buyers. . * v/'../' J1 • /
(3) Concentrate on the issue which is most oversubscribed, for
although this is an obvious statement to speculative interests, it is
especially important during these days of unprecedented borrowing
We're seeing a pattern
develop—a pattern of
entirely
new.
of their security
is involved.
get the most benefit.
There's
no
■ -
•
I
'
;
,
.
question of the market's stability, its attractiveness
.
of
the
field
in
an
election of
an
Morgenthau last week stated in his usual conservative
manner that
"August" was the first possible date for a financing,
but a superficial glance at the figures indicates the Treasury can
proxies.
Even
further
must
as
from
or
..
..
.
"
*
.
observer's reluctance
to admit the obvious, the obvious must be admitted. .
The market
acts well and looks wonderful.
And for once, all the dealers
seem to be on the right side and are making money. ...
/
But to get back to the 2s.... The big play in this bond now appears
to be over.
Assuming the market does go higher, which is what
the above suggests, the most we can expect from the 2s in the near
The
reasons
are
good that despite
so
any
.
.
.
%
another
future is
(ii)
rest for a while.
and that isn't
.
.
of
tive
The
One
of
the cheapest issues
the board today is the 2%s of
on
.
ture.
.
;
...
•
•'
therefore....
According to one dealer, "There's a point or more in the 2%s
on." . . . According to another checked on this angle,
"That's one of the best issues out."
from this day
...
judgment, naturally, but remember the supply of
tax-exempts is dwindling all the time while the demand and urgent
ment
exempts is skyrocketing.
.
.
.
And the 2%s
the partial
carry
.
.
on
.
other
any
must
nominee,
His
and
the
name
tion
.
or
other
of
which it is carried
(ii)
The
person
The "on sale" 2%s of 1969/64
each
of
class
securities
indebted¬
outstanding at the end of
well
the 2s
as
because
.
the rate
.
.
.
There
a group.
be
must
top.
...
As
one
trader put it, "The buying
.
9/15/72/67.
...
Selling at 100%, to yield 2.45%
to
call
.
loan of
date.
.
.
.
.
.
.
lions of the obligations, lighten up. ... In the meantime the issue is
there to be bought while cheap and to be held for years. . . .
"Free riders" have been in this loan, of course, and it would be
silly to deny that.
But they're taking their time about selling
and freezing their profits.
Apparently, that "bottom" at par and
the general conviction that the Federal Reserve and Treasury really
.
.
.
.
.
.
have this market in hand have had great > influence on free riding
psychology and tactics.
The 2s would have gone beyond 100.12 the day the allotment
•;* I
{ ■ •'/.{ j.* " -if >■';
),
y./
' .*
...
f
.
.
their
names.
was
directors
without
disclosure.
theory
nel
Board
loan
on
than
of
the
than
more
than
giving
$100,000,
the
*
.
,
eral
supervision.
done
and
what
as
paid to the
in each
persons
group.
Each person, other than a
director, officer or employee of
(1)
the
corporation, must be named
where
propose
policies
the
of
the past year ex¬
$20,000, and the amount
during
ceeded
such
remuneration
and
-the
.
.
No other total
comes
even
near
to this.
The borrowing side of the financing calendar is going to be blank
during the balance of this fiscal year but the Treasury still has some
major refundings coming up.
And it's possible that at the time
of the refunding deals, Morgenthau will pick up a few billions in
,
...
of
the
certificate
and
bill issues, which are
Morgenthau must refund
The $454,000,000 of 3%% bonds of 1947/43, also coming up June 15.
The
$324,000,000 of RFC l%s, up for repayment July 15.'.v
And the
$279,000,000 of Is, maturing September 15. . .
It looks like small
stuff after the multi-billion-dollar deal we've just had, but the activ¬
ity will be there nevertheless.
>.
.,>/
simply "rolled over"
as
the dates
do,
discount
come up,
the $629,000,000 of 1%% notes, coming due June 15.
.
.
.
,
.
.
...
.
.
well
as
transactions
have
daily
If the per¬
incapable,
integrity,
inattentive to the corporation's
affairs,
an
unhealthy situation
well arise for the stockhold¬
An
course,
able
management, of
offset a weak Board,
the corporate theory,
can
but, under
the
Board
is
relationship
ment
supposed to have a
toward the manage¬
somewhat
akin
to
of
that
Congress
toward the
executive
branch of the Government.
It is
generally considered unhealthy,
potentially so, for the legisla¬
or
branch
to
executive
be subservient
branch, and
to
some¬
thing of the same theory exists
in respect of the relationship be¬
tween the corporation's Board of
Directors and its management.
of
of
Through the previous practice
omitting to disclose the names
the
management's
proposed
nominees for
directors, incapable
managements
were
able
to
en¬
hance their chances of staying in
office.
Corporate managements,
of
have ready access to
corporation's records,
course,
all
of
the
names
the
the
of the stockholders and
corporate
funds.
Through
such
facilities,
even
incapable
managements did not usually find
it difficult to obtain enough prox¬
ies
stockholders
from
whatever
directors
situation
of
to
to
elect
they desired.
stimulated
to
directors
subservient
Outside
to
or
corporation who
charge of its affairs.
tion
.
of
and
By "man¬
agement" I refer to the officers of
his aggregrate remunera¬
REFUNDING CALENDAR
cash, too.
Board
officers have
ment should carry out.
the
tion
.
The
periodically
the
major importance the manage¬
tion
the
.
person¬
Directors
is,
highly important to
stockholders of a corporation. The
Board
of
Directors
ordinarily
tive
$9,914,000,000, banks were permitted to buy $2,039,Entire issue totals $4,796,000,000, making it the biggest
the board.
of
such
corporate
course,
managements
.
the
in vogue, the
now
of the
This
.
making
Under
for the 2s totaled
.
is,
Previously, the
quite prevalent for
managements of corporations to
solicit proxies for the election of
ers.
subsidiaries
its
.
Longest-term bond out but only 2% the banks can buy, and that's
an important point. .
Only long-term banks can buy that is close
,
The issue appears attractive to any institution that can
afford the maturity but it may be that it will not come into its own
until the insurance companies and savings banks, which hold mil¬
to par.
of
000,000.
.
directors
the proxy rules,
quite properly, require disclosure
may
and
.
on
of
above indicated,
or
forth
set
.
is considerably more important"—and that tells the story.
One bond that has many interesting angles is the 2%,%
election
an
course, the identity of the di¬
rectors proposed to be elected. As
or
...
the demand has been
with
of
is
.
.
their part.
on
lacking in diligence
.
.
understanding
sonnel of the Board
of
officers
.
.
be
The most important information
to
a
stockholder
in
connection
the
and
directors
.
.
should
the
as
•
.
full
of
.
.
line
relatively un¬
important
information, particu¬
larly where such unimportant in¬
formation imposes a substantial
burden upon the corporation in
preparing it or only tells the un¬
aggregate amount of remunera¬
are
of the bank-buying
the
exclude
to
more
in
of
such
doing well, too, but not nearly
corporation owned directly or
capacity in which it was re¬
angle.
Experts
indirectly by the director or
ceived must be stated.
look for a gradual upswing in the 2Yzs after the initial.fuss is over.
nominee.
A mere summary, as set forth
These are good bonds and will get better as time goes on, but
(iv) If more than 10% of any above, of the proxy statement re¬
for now, they're in the shade.
class of securities are benefical- quirements for an election of di¬
Total outstanding of the new 2%s exceeds amount of previous
ly owned by the director or rectors gives some 'indication of
issues.
Here's the comparison: there are $2,118,000,000 of the
nominee and his associates, the how
detailed
and
complicated
1967/62 loan out, selling above 100^2; there are $2,831,000,000 of the
approximate aggregate amount they are. The ostensible purpose
1968/63 loan out, selling around 100%; there are $3,738,000,000 of
of each class of securities bene- of the Commission in making such
the 1969/64 loan out, selling slightly below 100Vs.
Issues seem
in line so all may be expected to move up together.
Although
the 1969/64 issue will get the bigger play over the coming weeks.
figure of 16% was announced had not the Federal Reserve inter¬
There has been some selling in the market but right through vened and sold some bonds to
keep prices down.
Subscriptions
as
to
meets
of
$50,000 but not more than $100,000, and the number who received
(iii) Approximate amount of
INSIDE TIIE MARKET
and
drawn
what
except
number who received
corpora¬
which
aggregate
the corporation
officers and direc¬
corporation) who,
during the past year, received
remuneration exceeding $20,000
but not more than $50,000, the
on.
in
year
relevant, it
considers
(other
director first became such.
.
largest
amount
tors
occupation
the
quired
corporation
or
organization
considered
me
Directors
(k)
following
principal
to
that only really im¬
portant information should be re¬
of
corporation as
shown:
be
(i)
the
any
to set forth all information which
the number of employees of the
the
of
proxy
elects the officers of the corpora¬
tion and is charged with its gen¬
all
the directors
except
officers
each
...
No good on maturity
price comparisons but it may be an exceedingly profitable move
.
director
rules fall
such attempt.
Recognizing that it is impossible
of
directors must be set forth
corporation
acting solely in that capacity,
such arrangement or understand¬
ing must be briefly described.
(e) As to each director and
possible that you might work out a switch from the 2s—
market action basis alone.
and
persons
the
prospective di¬
as a
the
and
short
preceding paragraph (i) with re¬
spect to individual officers and
understanding between
of the persons making the
or
re¬
(j) Information comparable to
arrange¬
an
ben¬
that outlined in the immediately
or
nominee
-or
taking a profit on these—and into the 2%s.
or
or
plans,
annual
the year, together with
of interest thereon.
director or nominee
is proposed to be
pursuant to
solicitation
tax-exempt clause that all institutions outside of the savings banks
and life insurance companies can use.
It's
been
elected
and
>
Use your own
■
any
(2) The bond is in the intermediate maturity classification and
comes right before the basket of 23/2S now available.
(3) It has been outstanding for some time and is well absorbed,
need for
has
.
any
all
to
retirements
subsidiaries
year,
ness
tion must be shown.
(d) If
information
the
of overdo % of the outstanding
voting securities of the corpora¬
12/15/65/60, selling at a premium of 10% points to yield 2.04% to
call date.
That's a stiff premium, of course, but:
(1) The issue is tax-exempt and if you can use tax exemption
there is no need for additional explanation of the value of this fea¬
its
the
during the
indebtedness
arising from transactions in the
ordinary course of business, and
and amount of
by all holders
names
owned
or
estimated
and
of each class of voting securities
ofthe
corporation
must
be
shown.
.
qualifications
rector,
far
practice
benefit pursuant
the
past
number
outstanding
his
indebtedness to
as
voting rights must be dis¬
(b)
any
forth;
tirement;
(iv)
His
closed.
.
:/.,■•\v'-\ >
■
summarized
$20,000,
the previous year
efits to him in the event of
(a) Any stockholders cumula¬
may be wise, therefore, for a holder of the 2s to consider
lightening up on his 2s and switching into an outstanding issue for
permanent investment. . . . There'll be plenty of buyers for the 2s r"(c) The
at this level and the market Won't be affected.
V
/
securities
2Ms OF 1965
be
may
than
and
solicita¬
management
services;
pension
follows:
j It
THE
for
tion of proxies for election of di¬
rectors
>
.
and
The proxy rule requirements in
respect
re¬
(iii) The amount paid by the
corporation and its subsidiaries
rules, such
proxy
of construction
of
discourages
stockholders
from
voting by proxy due to lack of
over
must be set
involved.
indicated for a new loan.
:•■.
." There are other issues on the list, though, that seem to be out
of line on the other side...
To be underpriced as of this moment....
or
the
more
which
ambiguity, and thereby limit my¬
the fundamental problems
A higher premium would place it out of line
.
healthy
from
a
nature
all
which mignt reasonably be con¬
sidered relevant to a nominee's
favorable aspect of the story and
more
increase
or
directors.
its
and
Where the remuneration
totals
should
elected
least, however, it
extremely difficult to
be
forth
set
nominees
be
directly or indi¬
a description of all
corporation
received for
self to
point and then the issue must stop and
or
technical
problems
as
.
,
.
.
.
less
arise
.
complete control.
legal questions of
merous
more
ceipt, including the receipt of
securities,
options
and other
property for services and the
exercise of options previously
my
that commercial banks will remain heavy buyers.
And we know that the support behind the market is powerful
and informed.
And we know that liquidation is light and is under
.
.
of
transactions involved in its
discussion any analysis of the nu¬
,
the
subsidiaries,
rectly, with
analysis
require¬
get by comfortably until October, so let us assume the Fall will be
the date.
And we know bank deposits are going up and going
remuneration
to
the
say
seems
corporation or any
was
or
is to be a
$20,000, the following must
be shown for the past year:
(i)
His total remuneration
proxy
from
during the past year
proposed transaction
than
restricted, I
so
any
the
not
might be
ceived
directors,
eliminate
nom¬
in
p
/
As to each director, each
for director, and each
officer (not a director) who re¬
this being the most frequently re¬
current occasion for solicitation of
Secretary
or
shown
(i)
holders
its
statement
proxy
ments for
.
to continue up so
any
indirect in¬
or
director
be
nominee
as
article be restricted to
,
..
...
each
party
indicated by the above
summary, it is necessary that this
as of today.
.
In fact, the situation looks so good that it's almost
frightening..
It's just not natural for things to go along so smoothly
despite the long list of reasons for the excellent action. ... For in¬
stance.
We know there'll be no more borrowings until Fall. .
.
broad
a
rules,
should
subsidiary
As the Commission has covered
such
2s?
in
or
the
consent
whether
to which the
and apply to every con¬
ceivable type of activity of those
corporations where any vote or
institutional management watching these trends froirt the start will
SELL TIIE
of
must
transaction
tions,
financing and
war
terest
inee
tremendous number of corpora¬
a
of office
nominee.
(h) Any direct
,
foregoing, it is ap¬
parent that the proxy rules cover
And the person or
...
From
:
be
must
term
would
,
deals.
market movements which is
to
action
ers
(2) Expect the major movement in new issues to occur in the
bond the commercial banks can purchase and look for more
one
their
pursuant
requirements, in determining
To
new
present any matter
at any security hold¬
meeting, the proxy state¬
ment must identify such matter
and show the disposition of it
proposed by the persons solicit¬
ing the proxies.
:
for
and
disclosed
mation
(g) The business experience
during the last five years must
be
briefly described for each
that
intends
.
nominees
The
holder, in the light of the infor¬
shown.
makipg
persons
solicitation are in¬
any
other person
proxy
formed
v.
■
»«
•
Also, if the
the
,
.
(f)
ally referred to above;
13.
the
named
spect to any matter not specific¬
.
requirements is to aid the stock¬
substantial.
(Continued from page 1761)
As
predicted, they're a much better speculative bond than the 2%s and,
for some time, they'll continue to be. . . . It's a beautiful market all
around, of course, but the action of this one bond is particularly
significant.
And from the Government mart's movements in the
last several days we may now draw these conclusions: :
;.-.v
(1) If you're interested in playing the market swings during this
coming year of war financing, restrict your operations to the secur-
They're already up to 100% and showing no signs of fatigue.
fically owned by such associates
must be shown,
naming each
associate
whose
holdings are
Simplification Of
Proxy Rules Desirable
"Governments"
Thursday, May 13, 1943
:
cause
who
the
some
elec¬
would
be
the
management,
such directors, in turn, re-elect¬
ing the management as officers
of the corporation.
As a prac¬
tical
matter, such a procedure
management self-perpetuation
was
found possible by incapable
managements until the corpora¬
of
tion's
affairs had
deteriorated
to
such
a point that it was almost on
the doorstep of bankruptcy. Then,
under many practical handicaps,
a group of stockholders would or¬
ganize and engage in a proxy war
(Continued on page 1764)
Volume 157
Number 4176
THE COMMERCIAL & FINANCIAL CHRONICLE
1763
Secret of 'Radar' Out;
Device to Spot Enemy
.
WASHINGTON, April 24,
-
War, and.Navy Departments
The
today
lifted, in part, the veil of secrecy that
has shrouded one Of the two services'
hash-hush
most
the
detection
"Radar/'
■
'
defense
device
devices—
known
as
"'
from
are
using
the word
Navy
ai#|;
THESECRET WEAPON,
other source."
RADAR GUARDS COAST
the
United, states entered
Radar has been standing
war
guard
even
the Army and
convinced. that the enemy
Since the
Until today, newspapers were pro¬
hibited
released until
ready has- Information from some
our
on
of
bridges
coasts 'and
a
TELLS THE SENSATIONAL STORY OF
the
on
battleships,'
American
maintaining
constant
vigil
over
"Radar/' which is an abbreviation of
the skies and the seas for
"Radio-Detectlng-and-Ranging/'
ing hostile aircraft and warships. In
.
into the hands, of our enemies, the
War
.
and
Navy
Departments dis¬
closed that the device is being widely
jUsed by land forces to detect
inching
111
enemy, a
ap
<^b:
some
installed long before the war.
;
It
J
outlying military posts .and on-%
of our ships Radar had been
some
Satisfied, apparently, that by now
early models of Radar have fallen
approach-
was
(hot theh
Radar>
a
radio detecting
known
that
to
the
enabled
a
•'
device
public
private
i
;
as
f
PHILCO AT WAR
at
Pearl Harbor to
of
d^t»-,-<yjapproach
Japanesewi*-**-^
^^^sjj'tb.-
NOW THE SECRET IS OUT ! The Radar--the fabulous secret
victory is officially revealed. It's story of Philco's vital contribution to
weapon
whose miraculous power
Radar
RAdio Detection And
means
Ranging. Radar seeks
beyond the
range
or
the
of human
enemy
eyes
and
Through ultra-high frequency radio
waves,
it locates and
seeks out the
enemy
"through fog, clouds, storms
-'
-
Throughout Philco's overwhelming leadership in radio, its laboratories
out
have pioneered in the field of ultra-high frequency radio waves, upon
which
Radar is based. When the Jap struck and our fighting forces asked
Philco
to
ears.
darkness"!
measures
the dis¬
perform "impossible" iasks of Radar development and production, Philco
laboratories and production lines were ready. And they
won
their Army-
Navy UE" for "performing today what yesterday seemed impossible"!
While Philco soldiers of production are turning out tank radios, commu¬
tance to enemy
targets. It warns against
the approach of
hostile; forces. Fog,
nications equipment, ordnance and storage
weapon,
is
story that
clouds, storms
upon
or
darkness have
its miraculous powers!
no
effect
But
war
of their major
one
war
batteries, Radar, the
has yet been told from the annals of
even
more
war
Philco
can
name
.
secret
production.
important is the vision of the peacetime sequel to their
achievements. In radio, television, refrigeration,
the future
once
assignments. Theirs is the most dramatic
air conditioning, only
reveal the untold progress that will appear under the famous
.
.
when
peace
is made secure!
THE COMMERCIAL & FINANCIAL CHRONICLE
1764
Thursday, May 13, 1943
reaching $42,900,000,000. Since the outbreak of war in 1941,
it has risen by leaps to about $130,000,000,000 today, And
will approximate $250,000,000,000 by June 30, 1944.
It is
all payable in dollars of no definite standard. It can be re¬
deemed in dollars of any value determined by Congress or
(Continued from first page)
(if the power of devaluation is again delegated, as it was in
we want to preserve our constitutional democracy and to
1933), by the President at his discretion.
;
>
avoid totalitarian dictatorship, the debt must be repaid in
On the record, therefore, the chances of redemption, in
dollars of approximately their present value.
Otherwise dollars of present or pre-war value, of a national debt of
we will have fought the war to end
dictatorship only to $300,000,000,000 or more would appear uncertain.
embark upon the road to dictatorship, despite victory,
The higher the debt goes, the greater will be the pres¬
through the route of national bankruptcy, the direct cause of sure to redeem it in dollars of much lower value than at
the Italian, Russian and German dictatorships of today.
present or pre-war rather than tax it away over a long period
of years.
The Nation's Debt Record
However, sustained integrity of purpose in gov¬
ernment and the economic good sense of our people, who
However, our debt record as a nation is confusing and
are
realizing increasingly the issues underlying debt repu¬
conflicting. Despite our present good intentions, our past
performances in debt redemption cast shadows of doubt diation, are good omens that we shall again have the moral
over the future.
In the final anaysis, the decision will rest fibre to redeem the debt honestly.
Simplification Of
Can The United States Support
Proxy Rules Desimio
A 300 Billion Dollar Debt?
(Continued from
1763)
page
the
with
deavor
management in an en¬
to
non-subservient
cause
be elected which,
directors to
in
turn, would throw out the inca¬
pable management.
One theory of a beneficial ef¬
fect to be hoped for from proxy
statements can be illustrated by
the
above-mentioned problem of
self-perpetuation
by
incapable
managements. The theory of this
benefit is "preventative" in na¬
ture, and rests upon the supposed
caused the
would
which
embarrassment
be
management if wide¬
spread publicity among the stock¬
their corporation was
holders of
given to the fact that they pro¬
with the ballot box.
posed to elect a slate of directors
Let's look at the record briefly. In our colonial period,
who were lacking in ability or
reputation.
As above set forth, despite widespread prevalence of straight-laced, stiff-necked
the new proxy rules require that
blue laws, and the like, 12 of the 13 original colonies de¬
the
proxy
statement must not
frauded their creditors and citizens by currency manipula¬
only name each proposed nominee
for election as a director, but also tion of various types-—ten of them depreciated their cur¬
state his principal occupation and rencies 50% or more in
gold value. In some the currencies
the name of the corporation or
became utterly worthless.
other organization in which such
occupation is carried on, Further,
During the Revolution the paper monies issued by many
in the case of a nominee who has of the States
depreciated 99% and were finally repudiated.
not previously been elected a di¬
Alexander Hamilton, by gargantuan efforts, finally was able
rector by stockholders, his busi¬
to establish the credit of the newly born United States by
ness experience for the last five
full redemption at gold parity of all foreign loans made to
years must be briefly described.
the
when
Thus,
knows
management
that, in soliciting proxies,
it must set forth the above-men¬
information
tioned
it
nominees
regarding the
have
to
proposes
directors, and that such
information
will
receive wide¬
elected
as
spread publicity among the stock¬
of their corporation, the
holders
effect
hoped for is that the man¬
agement will be discouraged from
proposing "dummy" directors or
persons who cannot meet the tests
of ability and integrity.
It is
possible that this theory may have
the desired results, but it seems
to
to
me
"wishful
toward
tend
ade¬
&1be sub¬
surface
at least, do not appear to be lack¬
ing in reputation, ability or in¬
tegrity.
thinking." I believe that
quate supply of directors
ways be found who will
servient but who, on the
an
can
the Continental
Congress. By
a log rolling deal with Jeffer¬
able to effect Federal assumption
of all State debts incurred as a result of the Revolutionary
War, in exchange for an agreement to remove the Capital
from Philadelphia to Washington.
To do so, however, he
was politically forced to repudiate entirely the
paper money,
issued during the war by the Continental Congress, which
had already become practically worthless.
son,
Hamilton finally
was
during the past
proposed transac¬
tion to which the corporation or
a
subsidiary was or is to be a
party. This requirement necessi¬
in
year or
any
tates
disclosure
tions
between
where
they
of
all
two
have
transac¬
corporations
common di¬
a
Even transactions
rector.
years
later, the
new
nation
tions
as
are
"immaterial
significant."
and
in¬
Obviously, such dis¬
closure pursuant to proxy rule re¬
quirements
carries
with
it
the
inference that something might be
wrong with the transaction and
that it should be closely scrutin¬
ized.
threat
The
of
baseless'though they
law
may
suits,
be, and
the questions and criticism which
might result through insufficient
knowledge of the facts on the part
of the .stockholders might well
have the tendency to discourage
such
transactions,
even
though, if
consummated, they would be ben¬
eficial to both corporations.
It
seems
mission
farther
to
me
has
than
that the Com¬
gone
is
considerably
desirable
in
its
disclosure requirements with the
result that the benefits from the
"preventative" aspect might well
be outweighed by the detriments.
I do not wish to
suggest that there
should
not
be
proper
disclosure
of
transactions between directors
and
their corporation.
But
a
proxy' statement
(Continued
does
on page
not
strike
1765)
on March 22 announced that at
50,000,000 investors in war bonds
and 25,000,000 participants in payroll savings. ,In addition,
there are about 25,000,000 bank depositors and more than
50,000,000 insurance policyholders in the United States.
that time there
were over
Approximately 30,000,000 persons are being taxed on their
payrolls, establishing credits in Washington for old-age pen¬
sions and unemployment compensation.
There are several
millions of holders of obligations of private corporations
and individuals totaling $115,000,000,000, others who hold
obligations of the States, counties and cities totaling $16,000,000,000.
In January, 1943, the banks of the country
held 47% of the total Federal interest-bearing debt and the
the insurance companies held 10%, a total between them of
57% of the entire Federal debt, then estimated at $114,300,000,000.
In the aggregate, therefore, more than half our
population, and, in fact, every family in the country,- has a
direct and vital stake in preservation of the present or prewar
purchasing power of the dollar.
was
,
rency
of the Confederacy be repudiated.
In subsequent
Will Politics Force
Repudiation?
At present,
in light of various over-ambitious, unofficial
post-war plans, the future is not too reassuring.
For in¬
stance, assume for the moment a national income after the
war of $100,000,000,000 and a
gross national debt of $350,000,000,000. The State and local governments are spending
$1,200,000,000. It rose in 1919 to a peak of $25,500,000,OOOjin bonds containing the gold clause promise of the Gov¬
$9,000,000,000 annually; the Federal expenditures over the
past 10 years averaged $8,000,000,000. This makes a total
of $17,000,000,000 for ordinary expenses of government.
Add $6,000,000,000 to $8,000,000,000 for interest on the post¬
war debt, between
$10,000,000,000 to $20,000,000,000 esti¬
mated for "Cradle to the Grave" social security, $20,000,000,000 for the post-war armed services (as estimated recently
by Vice-President Wallace), and $1,000,000,000 at least for
veterans and dependents.
This totals to about $70,000,000,000 of the $100,000,000,000 estimated national income with¬
out allowances for debt redemption, world-wide relief, and
other favorite projects. There's the major cause of most of
the doubt. Merely to tabulate the costs shows the absurdity
ernment to redeem the bonds in
of the
the war,
honesty and integrity prevailed. They were made
fully at par, and the Supreme Court cour¬
ageously enforced the gold clause in all contracts. At the
close of the war, the Federal debt was only $2,700,000,000,
redeemable
and within 28 years
it was reduced to less than $1,000,000,000, the lowest in all our history since 1862.
in the
ordinary course of business must
be set forth, except such transac¬
People's Stake
Secretary Morgenthau
All who advocate the cowardly way of inflation or di¬
able rect repudiation will do well to examine the real temper of
to declare a dividend to the States from a surplus in the the
people before accepting the easy road of repudiation or
national treasury.
A little political courage and patience inflation rather than the harder, more courageous road of
would have permitted full redemption with honor.
honesty and integrity. The people can readily recall the
In the '30s and '40s of the 19th century some of our utter destruction of the middle classes, of the salaried and
States repudiated bonds sold to foreign investors to secure wagexlasses, as a result of European,inflations which paved
funds for .internal development of State resources,
railway the way for violent revolution and dictatorships—the French
Revolution in 1789, Russian Communism in 1917, under
construction, etc. " 'v.
r\
Lenin and Trotsky, Fascism under Mussolini in Italy in
Following the Civil War, the Federal Government, to
.
discourage rebellion, rightly insisted that all bonds and cur¬ 1921, and Hitlerism in Germany in 1932.
Yet, less than 50
Moreover, this "preventative"
theory can be carried too far, with years certain States again defaulted on bonds sold abroad.
the result of discouraging trans¬
A Proud Civil War Record
actions which, if
consummated,
might be of considerable benefit
During the Civil War Federal bonds and greenbacks, not
to the corporation.
For instance, redeemable in
gold on demand, depreciated about 65% in
as
above
set
forth, the proxy
terms of gold.
Following the war three political campaigns
rules require disclosure of any
direct or indirect interest of each were fought to determine whether these bonds and green¬
director or nominee for director backs should be redeemed at
par.
Finally, 15 years after
in any transaction
The
Another Proud Record
We entered the first World War with
a
national debt of
about
program.
gold dollars of the same
Recent assurances have come from Washington.
of date of issue. This clause had become necessary
The
to assure their sale to the public, which was skeptical of Gov¬
Congress has just voted to discontinue the President's power
ernment promises in the light of the record. In the 10 years to devalue the
currency.
The present huge holdings of
following 1919 this debt was reduced to $16,900,000,000, at $22,500,000,000 of gold bullion, more than 90% of the total
the rate of almost $1,000,000,000 per year, with an average world
supply, are cited as a safeguard against currency de¬
annual national income of about $72,000,000,000 for the
preciation.
period. Yet in this period Federal taxes were substantially
There would be still more confidence in the future, if
weight
as
reduced from 8.7%
average
of only 5.6%
of the national income hr 1921 to
.
'
;
The Gold Clause Repudiation
'
an
the currency were again redeemable in gold on demand, and
if
gold
were
again allowed to circulate freely.
This
move
would go far to prevent any currency depreciation.
The
revival of the sanctity of the gold clause, protected by con¬
stitutional amendment, would give complete assurance.
The depression years, 1930-33, increased the debt to
$22,500,000,000. In 1933, gold payments were outlawed by
The next question is the vital one—can we redeem a
the Federal Government on both Government and private
$350,000,000,000 gross debt in honest dollars, and, if so,
contracts, thereby repudiating the Government's protnise
how?
to redeem its bonds and currency in gold dollars at a fixed
The answer is yes, if we have the political
courage to
weight. This action of the Federal Government was sus¬
attempt it.
tained by the Supreme Court in 1935.
All bonds, Federal
and private, since then, have been permitted to carry no
The British Experience
protection against devaluation.
Great Britain for many years has carried a national
From 1933 to
1941
the Federal debt almost
doubled, debt
more
than
200% greater than its national income,
-Volume
157
Number 4176
THE COMMERCIAL
& FINANCIAL CHRONICLE
1765
treating the debt more or less as a permanent one. Yet it present levels, more than making up in increased volume
quite consistently maintained a balanced budget in the years what is lost in lower prices.
> It would
preceding the present war. ■
appear quite feasible for us to maintain a per¬
r '-
Simplification Of
;
The Napoleonic Wars, 1793 to 1815, caused an expan¬
sion in British debt from
£245,000,000 to £734,000,000. This
manent minimum national income of
debt is
3
or more.
reported to have been greater in relation to British
national income at that time than the debt of the 1930s in
relation to British national income
of that
period.
While
between 1815 and 1850 this debt of Britain remained sta¬
tionary, yet, because of the rapid increase in population and
productivity resulting from the
Industrial Revolution, / the debt, which to many in 1815
seemed unbearable, in subsequent years was
negligible.
the substantial increase in
Our First World War
National income is, at best,
Experience
inadequate and danger¬
It is variously defined and its methods of
determination are subject to grave defects. Yet, if used with
extreme caution and qualifications, it is helpful in con¬
.v
ous
an
concept.
clusions not otherwise available.
In the period 1909-13, our estimated national income
averaged $30,700,000,000. The Federal tax take during this
period was only 2.2% of the national income. The war in¬
flation raised prices from 1909-1913 through 1920 (Whole¬
sale Commodity Index) by 126%.
National income rose to
$73,500,000,000 in 1920, but due to the price rise, the real
national income probably did not rise as much as 10%.
:
During the war, however, the Federal tax take rose to a
high of. all time up to then of 5.9% of the estimated national
income in 1919, 8.4% in 1920, and 8.7% in 1921. This was
the
high point
until the-' Roosevelt - Administration took
office.
•
From
1920
through 1932 prices fell sharply, but na¬
tional income rose to a peak of about $80,000,000,000 in
1929 (before adjustment to price changes) and fell to about
$45,000,000,000 in 1933, the low since 1917. However, esti¬
mated national income for 1919-38 averaged $66,600,000,000
in current prices and $70,000,000,000 after price adjustment.
Average
ment,
national income, therefore, after price adjust¬
about 55% during the period 1919-38 over the
rose
period 1909-13.
This real gain of 55% was due to a sharp increase in
population and increased production arising out of improved
machine technology. We not only held the gains of the war
period, but greatly improved upon them. Despite the sub¬
even
to
$100,000,000,000, and
expand it to $150,000,000,000
over the next 50 years
In the immediate post-war
years of reconstruction
abroad and satisfaction of bottled-up demands at
as
being
an
appropriate place
Firstly, with
the
titled.
Necessary Changes In Federal Policies
All this, however, will
require governmental policies
fostering maximum production based on lower costs rather
than subsidized restriction
of
production with prices arti¬
transaction,
the
odds
are
greatly in favor of its being given
a
thorough investigation by in¬
terested stockholders (and their
lawyers).
In
this
connection
the
present
proxy rules are tending to require
much of the information contained
ficially pegged by government above their true level. It
in the Form 10-K reports to be
will require maximum
employment rather than subsidized
duplicated in proxy statements.
unemployment, wages and hours determined by collective
Obviously, the reason for this
bargaining on a free, rather than a statutory, artificial mar¬ is that the average stockholder
ket.
It will require encouragement of lower rather than never sees these rather volum¬
inous Form 10-K reports because
higher prices, and the re-establishment of free determina¬
he usually has only a small in¬
tion of prices on a free
competitive market.
It will also vestment in a large company and
require recognition of the fallacies that higher prices make disproportionate effort and ex¬
for prosperity and that we will have more for distribution pense would be incurred by him
in having an investigation made
among all of us by restricting production.
It will also re¬ of the Commission's files.
/
'
quire the rehabilitation of the profit motive as the necessary
But, firstly, it is highly doubt¬
stimulant and incentive to maximum production.
ful that the average stockholder
All this will mean full employment of
capital, plant, is interested in such voluminous
and man power.
It will mean greater and surer social information or that he would take
the time to read it even if
printed
security without Government domination.
It will mean and mailed to him. To
include a
higher real wages, a higher standard of living, and in the large part of it in proxy state¬
long run a shorter work week than the Government can ever ments adds substantially to the
already lengthy and complicated
assure
by legislation.
,
nature of proxy statements which
is further enhanced by the care
How The Debt Can Be Paid
From 1922
through 1932 the Federal tax take averaged
of the national income, but under the present
administration it ro£e in the 1930s to'an
average of 6Vi%,
$67,000,000,000 before adjustment for
price changes, compared with' $38,000,000,000 in 1914, an and in 1938 reached 9.7%, the all-time high until the present
increase of 76%, while prices in 1939 were only 14%
higher war.
than in 1914. In this period, however, per capita productiv¬
In 1932 Federal, State and local taxes took 17.4% of
ity probably did not increase because of unemployment and the national income, 4% going to the Federal Government,
shorter hours.
13.4%. to the others. By 1938 the total take was 22.4% of
:
the national income, 9.7 % going to the Federal Government.
National income in 1940 is estimated at
$76,000,000,000,
was
me
for such disclosure./
home, it the brevity desirable for a proxy
should be comparatively easy. In fact, we
may well be short statement, it is usually difficult
to
describe
a
transaction
of man and woman power to do the
ade¬
job, rather than be faced
quately so that a stockholder can
with unemployment.
understand it fully.
Secondly, if
In subsequent years, the full
working force, capital the transaction is described in the
funds and productive
report (usually Form 10-K) made
capacity of the nation can be kept
fully at work, especially if we gradually accept t^ie doctrine annually by the corporation to the
Securities and Exchange Commis¬
of buying abroad those
things produced cheaper there and sion and the stock
exchange upon
selling there those things'we can produce cheaper here. Our which the corporation's securities
real standards of living will be raised
thereby, through are listed, sufficient disclosure of
the transaction should be accom¬
lower prices, and huge
foreign markets will be opened to us.
plished.
Those reports may be
Furthermore, only by allowing our debtors to pay us their examined
by any stockholder (or
debts in surpluses of our imports over our
exports, can we any person, for that matter) and
receive repayment of
huge sums to which we will be en¬ if there is anything wrong with
sequent "great depression" years 1930-35, in 1939 estimated only 4V2%
national income
(Continued from page 1764)
necessary on the part of manage¬
ments that no
criminal, civil or
injunctive
and
the
penalties
tendency
be
on
incurred
the part of
the staff of the Commission to
gard
statements
re¬
being
prepared more for the "average
moron"
than
for
the
"average
stockholder." Already the staff of
proxy
as
the Commision is getting itself in¬
to
a position of
urging certain in¬
formation to be contained on the
$117,000,000,000, and for 1943 at $135,000,000,000, In 1933 England and France took in taxes for all govern¬ first page of the
proxy statement
all before adjustment for price changes. In 1940 the Whole¬ ment 26.7% and 27.8%, respectively, of their national in¬ for fear that stockholders will
not
sale Commodity Index (1926^100) stood at 78.6 (IV2 points comes, while in 1938 they took only 21.7% and 24.9%, re¬ read beyond the first page.
over 1939).
Secondly, items of information
By March, 1943, the index rose to 103.3, an in¬ spectively.
With a minimum national income of $100,000,000,000, now required in proxy statements
crease of almost 35% over 1939.
Reduced to 1939 prices,
tend to show only narrow seg¬
the estimated 1943 national income would be almost $100,- expanding over the coming years, and an annual tax take
ments, in an unfavorable light, of
000,000,000 compared with $67,000,000,0001 in 1939, evi¬ of not more than 25% for all government purposes (State, a picture which, as a whole, may
local and Federal) we would have a minimum of $25,000,- be very attractive.
For instance,
dencing 3 very substantial* real increase in production!
000,000 for all governmental purposes. In the '30s the State in showing transactions with and
of
directors, the
Can The Debt Be Paid In Honest Dollars?
and local expenditures averaged $8,000,000,000 and the compensation
benefit which the corporation re¬
Federal expenditures $8,100,000,000 though the average ceived from
■V Consequently, if the last war and
the transactions or
post-war periods are
fairly accurate precedents, we can expect, at least, to hold Federal expenditures in 1923-1933 were only $3,000,000,- services of the directors cannot
also be depicted.
In this connec¬
000 per year.
and even to improve upon the present war level of
pro¬
tion, it should be remembered
duction and of national income, despite sharp fluctuations
Allowing $8,000,000,000 per year for State and local that
penalties, both criminal and
in prices and national income which can be expected over governments, we will have $17,000,000,000 for Federal pur¬ civil, can be
imposed for mislead¬
a
Since a ing statements which blacken the
period of time. We should, if the forces of production, poses out of the $25,000,000,000 total tax take.
picture by failing to show the'
capital and labor are permitted to operate without bureau¬ national income of $100,000,000,000, with a relatively static whole facts. If a stockholder sold
cratic domination, look forward to expansion-of our na¬ population, will mean relative full employment and reason¬ his
security because of misleading
able farm incomes, Federal subsidies for relief (which cost information on the bearish
tional income over the next 50 years very '
side,
substantially,
he would have a cause of action for
despite the fact that by 1960-70 our population is expected $25,000,000,000 in the last ten years) and for agriculture, etc.,
damages just as much as though
to become more or less static with an average increase of can be substantially reduced, if not eliminated.
Ordinary he had
bought the security in re¬
about 1^000,000 persons per year until then.
We can over¬ Federal expenditures of the '30s can therefore reasonably liance upon misleading informa¬
be cut from an average of $8,100,000,000 to
come this by full utilization of our of man and woman
tion on the bullish side. Although
$6,000,000,000,
power,
by increased production per man hour through constantly still a 100'% increase over the average Federal expenditures done pursuant to Commission
mandate, the present proxy state¬
improved machine technology and cost-saving devices, and, for 1923-33.
ments do tend to emphasize only
if necessary, by a longer work week than 40 hours. V
Subtracting the $6,000,000,000 from the $17,000,000,000 the bearish side of the story and*
left after the State and local expenditures, leaves only $11,- in this way may give some un¬
•By 1960 we should have a population of 150,000,000.
000,000,000 for increased veterans' benefits ($557,000,000 in justifiable impetus to security
sales
If we in the meantime take advantage of our reduced costs
with a detrimental effect
1940), for annual delft retirement and interest, and for addi¬
upon stockholders wholly outside
of production (resulting from increased supply of skilled tional costs of the armed services.
Allowing $1,000,000,000 the contemplation of Congress.
in 1942 at
•
A quite likely effect of most of
labor, improved plant and equipment, and increased machine for additional veteran and dependents' benefits, $10,000,the proxy statement disclosures
technology growing out of the war) to reduce prices and tap 000,000 is left for these other purposes.
This clearly does not allow much for interest, amortiza¬ upon the stockholder who reads
the huge unexploited markets at home and abroad in the
it is merely to cause him not to
tion, the armed forces, and emergency expenditures, but we sign and send in his
proxy be¬
lower income-groups, we will use our productive
plant, our are
cause he cannot
using minimum
magnificent labor force, and
maximum.
,
our
huge capital funds to the
Our national income in dollars,
despite lower
prices based on lower costs, could increase substantially
over
revenue
figures.
fully understand
all
Offsetting, Realizable Assets
Assuming
a gross
debt of $350,000,000,000, there
(Continued
on page
1766)
of
the
necessarily
are
ference
information
be
that
left
and
with
must
the
in¬
something is wrong
(Continued on page 1766)
,
I
*f|
Simplification Of
Can The United States
the information would not have
This makes much
to be set forth.
Support
(Continued from page 1765)
/
;
'
:
;
management's many off-setting items which can be listed. The Director of
a quorum
of the Federal Budget Bureau recently stated that at the end
stockholders represented at the of the war the Government would have on hand
$50,000,meeting, and adds to the expense
000,000 of surplus supplies (exclusive of plant and equip¬
of proxy solicitation by necessi¬
This sum is greater
tating follow-up letters and more ment) /scattered all over the world.
extensive
canvassing of stock¬ than our entire national debt in 1941 and about the same
holders. Further, under most State at
present exchange rates as Britain's entire national debt
corporation laws, failure to obtain in 1942 after three
years of the present war.
.
a quorum
merely results in the
We have advanced to our Allies under - "lease-lend"
election not being held and the
directors then in office become about $10,000,000,000 and we can reasonably expect that
of
task
"hold-over"
fect
account to reach
practical ef¬
same
also the matter
though they had been re¬
as
Allies
In such case the purpose
elected.
;
with; sub¬
directors
stantially the
of the proxy rules would be large¬
ly nullified. In the light of such
a
result some corporations have
-
/
on
$25,000,000,000 before the end. There is
of about $14,000,000,000 due us from the
account of the last
„
war.
-
The Government has also invested at least
Thursday, May 13, 1943
stand, except in emergencies, without disastrous reper¬
cussions. • However, even a total tax take of 3 0 % • of the na¬
tional income, yielding an additional $5,000,000,000 for the
Federal Government, would be only 7.6% more than was
taken
tion
obtaining
,
.
jjiW* r^M
by all Government in the United States in 1938 when
were considerably lower than in 1941, not to men¬
present war-time rates.
;
\
; l
tax rates
"
the
difficult
more
'
j.
,
A 300 Billion Dollar Debt?
(Continued from page 1765)
:
iMVWrt«l»Ua<-WS^UAil^n,
THE COMMERCIAL & FINANCIAL CHRONICLE
1766
or
¥!►
$5,000,000,-
000 in Government owned plants for war production and
$25,000,000,*000 in other construction.; Probably another
$5,000,000,000 will have: been invested in real estate and
$5,000,000,000 in loans to Latin American countries. Prob¬
ably as much as $25,000,000,000 will be in Government
;
Owned shipping at the end of the war.
These figures do
not include many billions of dollars of Government financed
managements.
''./.v.;
A much happier solution than
plants and equipment, industrial and other, much of which
requiring
such "detailed
proxy is under
option to private industries at the end of the war.
statements would seem to be to
All in all, the total will amount to more than $150,000,require any information, which
reasonably may be considered of 000,000, more than three times our national debt in 1941.
"sufficient
importance and releLet's hope that at least $75,000,000,000 will be salvaged
vance, to be included in the Form
to reduce the gross debt over a period of years from $350,10-K
filed
annually with the
It can be done, if
Commission; This filing could be 000,000,000 to, say, $275,000,000,000.
"
seriously considered omitting en¬
tirely any proxy solicitation so as
to eliminate the work and ex¬
pense involved but without such
omission having any practical ef-r
feet upon their directorships or
It is also well to remember that
over
the next 50 to 100
national income can be reasonably expected to
reach $150,000,000,000. A 25 % or lower tax take on such ah
income would give the Federal Government ample leeway
to balance the budget, reduce taxes, or increase the annual
debt redemption rate.
'- •
—
-:
years
our
-
..
Lotteries For Debt Retirement'
m
vide
.
Another device worthy of some consideration to pro¬
good margin of safety for possible emergencies and
the huge debt more rapidly in any case, is an
annual lottery, conducted by the Federal•'Government. ■■■Tt
could reasonably be expected to yieldi from-$5^000,000,000
to $10,000,000,000 per year, if;properly> managed, with ade¬
quate prizes.
Our people love to gaihblef. sis. i$ evidenced
by the stock market, the dog And "horse races, our national
game of "craps" and the widespread popularity of bingo.
Some will object, on moral grounds;:butlthe.alternative.
lotteries may. be much worse,' to say the. least.;; Lotteries
have been used by governments in the past, and our laudable
objectives will fully justify them. In any case, they would
be as palatable as a sales tax to raise a like amount. ;
' I
a
to reduce
"
:■;■
In
closing
a
'Post-War
TaxationJ";\ \
word must be said about post-war taxation.
•
'
1
material.:
solicitation : material
.
The
could
at such
since 1929 has gone
rapid pace that the wealthy are fast disappear¬
there is the will to do it.
And it will be much easier to ing and the so-called middle class is seriously threatened. In
salvage 50%; ($75,000,000,000) than to produce that same these groups lie the savers of the nation, whose capital is
so vital to economic
volume and to tax it from our people.
progress. ,' .' '
.
; r' /
-"
"
!
•
-
made concurrently with the filing
of the- management's proxy so-
licitation
•
Redistribution of wealth and income
proxy
state
on
a
^
In 1917 there were 141 Federal tax returns of $1,000,figure a salvage of only one-third, or $50,000,on file and that copies would be
000 or more.
In 1920 there were only 33, by 1921 only 21.
000,000, leaving a net debt of $300,000,000,000 to be repaid
furnished to any stockholder up¬
over the years.; With a minimum national income of $100,They rose again to more than 500 in 1929 to fall to only 41
on request and upon payment of
in 1935.1v;Bf/;'%';^
a
small charge which should be 000,000,000 we can, judging from British experience, rea¬
as low as possible but sufficiently
sonably. sustain a national debt of twice the size of our 4® In 1938 the total income of all persons- receiving $5,000
high to discourage "idle curiosity" national
income, or, say, a net debt of $200,000,000,000. In or more was only $6,500,000,000^ only enough; to finance
requests. -' "Any" opposition proxy
this war 344 weeks at the reported rate of expenditures-?solicitation could then circularize fact, there are many reasons to believe that our country
the stockholders and make such can sustain a greater debt in relation to our national income $2,000,000,000 per week.
;
1
:
|
use as it wished of the material
than the British can. The $300,000,000,000 figure will, how¬
Since the war began, wages and weekly pay-rolls have
on file with the Commission,
so
ever, severely strain all our resources to carry it, and bal¬ risen much more rapidly than cost of living.: So: likewise
long as it made no false or misance income and expenditures.
But it can and must be with income of farmers. Industrial workers and farmersvare
leading statements nor omitted any
; material facts.
In this way, it is borne and redeemed in honest dollars, if we are to avoid the chief beneficiaries of the increased national income aris-^
that the further information
But let's
was
?
•
that the
believed
a
national
great majority
who are doing
good job and are not vulnerable
of
bankruptcy and dictatorship. -
-
■
;
-
managements
A Balanced
Budget Necessary
to
proxy statements.
hand,
those
properly
would
counter
just
they
tion
as
present
It makes
as
On the other
managements
should be at¬
undoubtedly en¬
vigorous opposi¬
now
do
under
the
rules, and would
forced, in defending them¬
selves, to answer and explain any
substantive points of attack made
by opposition in at least as much
proxy
With
be
detail
more
national income of
a
$100,000,000,000
we
j by taking the entire national income, repay it all in three
years.
By taking $3,000,000,000 for debt redemption, we
can
repay it in 100 years and maintain a balanced budget,
but probably on fewer and
but the carrying charges will be heavy.
highly concentrated items
than would have resulted through
the initial information in the cur¬
rent form of proxy statement.
Opposition to the management
is accorded substantial help under
the proxy rules, probably on the
theory of the supposedly inherent
advantages which the manage¬
has
ment
revamped so as to
larger yield from the; lower-income groups and
ease the strain on the higher-income levels, if we are to
maintain the savings so vital to our machine technology and
to our steady economic progress.
* '
Post-war taxes must be levied with an eye to reducing
costs of production, encouragement of saving, and preserva¬
tion of our free economy from government ownership or
could, bureaucratic domination of all economic activity.
in
a
proxy
For
war.
'
Assuming a debt retirement of $3,000,000,000 per year
subtracting that sum from $10,000,000,000 still avail¬
able from our assumed annual Federal revenues of $17,000,000,000, we have left $7,000,000,000 per year for interest
on the debt, for additional expenses for the armed services
and for emergency expenditures, if we are to keep the budget
and
in balance.
.
Interest On The Debt
instance, the information required
to be set forth by the opposition
is much simpler than in the case
A debt of
$300,000,000,000, converted into bonds with
maturity date (rather than permanent bonds)
as
a
practical matter, consists can possibly be carried at an interest rate of, say, 2%.
If
only of the formalistic matters
necessary, to assure this rate, special inducements could be
above mentioned and the abovementioned items (d), (e) and (h), offered, such as partial inheritance or income tax exemp¬
where their proposed nominees tion, or redemption in gold dollars of a fixed weight.
This
had not previously been directors rate would mean an interest
charge annually of $6,000,000,of the
corporation, plus a brief
000, leaving only $1,000,000,000 for the armed forces and
description of the business ex¬
perience of each nominee during emergencies.
of management
solicitation, and,
the last five years.
opposition
own
its
list
own
Of course, the
usually obtain its
can
of
stockholders
and
do
circularization direct, but,
under the proxy rules, the man¬
agement must mail the opposition
proxy
being
solicitation material
tendered
payment
upon
of
the
expense therefore.
It also would seem that the
above-mentioned theory of letting
the opposition point
up the mat¬
ters at issue could be applied to
(Continued
on
page
1768)
a
relatively little difference how long it takes
to repay the debt. What matters most is popular confidence
in the honesty and integrity of purpose of the Government
to repay it.
And the best means of establishing that con¬
fidence is the maintenance of a balanced budget, which has
not been attained by the Federal Government since 1930.
few
tacked
war effort.
'4
The Federal tax structure must be
secure
attack would be spared many
undesirable effects of the present
which
1 ing from the
an
indefinite
With
substantial
support |rom the rest of the
presumably will be policing for some years
to come to maintain peace, $1,000,000,000 should, after a
reasonable time, suffice for maintenance of the armed
some
world, which
we
forces.
In
-
of
emergencies, such as necessary subsidies in
various quarters, or additional funds for the armed services,
or additional interest on the debt (if a 2% rate proves too
case
time to time
by 5%, but 25% of the national income for
low), the total tax take could be raised temporarily from
taxes is, from past experience, about all that a nation can
Declining Private Debt
.
.
^
One
encouraging note, worthy of mention, is'that be¬
tween 1930 and 1940, while the Federal debt increased about
$32,000,000,000 and State and local debt rose $1,500,000,
000, a total increase of $33,500,000,000, private debt in
the United States declined $28,600,000,000, almost offsetting
the rise in government debt. If the private debt, which was
$115,000,000,000 in 1940, can be cut to $80,000,000,000 by
1945, and steadily reduced under conditions of high pro¬
duction, as seems feasible, the governmental debt can be
maintained more readily.
There is also real hope that State and local debt and
taxes can be substantially reduced during the war and the
subsequent years of increased productivity.
Taxpayers'
groups, such as the Pennsylvania Economy League, are now
operating in 32 States, advocating good government at less
cost, and making the people tax- and debt-conscious.
"A Little
Just
Repudiation—-A Little Inflation"
word in
regard to the all-too-prevalent view that
huge post-war debt by a little repu¬
diation, a little inflation, and a little taxation.
It won't
work.
Repudiation or inflation, in large or small doses,
penalizes those who can least afford to pay. They do not
take into account the individual's ability to pay, and they
are unscientific and utterly dishonest.
There is no assurance that inflation, based on devalua¬
tion, would work in any case. A 50% devaluation, in hopes
of doubling prices, would probably be offset in five years
or less by lower prices resulting, from lower
production
costs,, arising out of the war and from increased competition
and rising production, as prices in the early stages began to
we can
a
take
care
of the
Volume
157'
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4176
will be upset by
competitive devaluations by other nations, selling to us and
our customers. Also, we have no assurance that simultaneous
devaluations by the various nations would have any effect
at all, if the same rates were used by all. Finally, controlled
inflation, wherever attempted, has never worked without
rise.; Furthermore, devaluation can and
complete dictatorship. Small doses are ineffectual and are
offset.
They are then followed by larger and larger doses
until the middle class is destroyed.
Of course, controlled
inflation will work if all prices are enforced by the bayonet,
the firing squad, and the concentration camp.
disaster
of
tion
what
matter,
economists
men
There is
Easy Way Out
ployment."
The
easy
v
Franklin D. Roosevelt,
today the fate of this Nation in his hands. We can
only hope that he and his Administration will remember
that principle and couple it with another just as vital and
holds
just as powerfully expressed by the President:
liberal governments are wrecked on the rocks of
"Too often
loose fiscal
policy."
The CHRONICLE invites the comments
of its readers on
expressed by Dr. Saxon, or on any related phases
the subject under discussion.—Editor.
the views
of
Comment On "The Future
our
"sound
fidence by ignoring
know
money"
public
con¬
the fact.
trouble, on the analysis
presented, while it arose
partly out of tariffs, was due even
more, perhaps, to the superabun¬
dant credit made possible by the
The
Act
of
Federal
Reserve
The
1913.
of management of
area
so
credit
greatly expanded by
restraining hand
of
gold, which could operate de¬
cisively only after the legal sup¬
ply of credit had exhausted itself,
was thereby indefinitely removed
from the
controls.
What the
sponsors
pared to that of 1929.
and
of the Fed¬
eral Reserve Act failed to see was
that gold cannot be "economized"
certain point, and the
legal amount of bank credit which
can
be issued upon a given gold
base cannot be
indefinitely in¬
creased without making the gold
standard a mockery.
Just as a
a
bruises
active
are
Small cuts
normal
character, is
the
to
the
important both for
winning of the war and for
body, but while the peace which follows.
Keynes
shed as much blood in
gives
such
a
plan.
the aggregate as deeper cuts, the Whether that plan will ultimately
be so developed and fashioned as
latter make the trouble.
Still another criticism, and one to reinstate gold as a standard or
orthodox they
here
beyond
author of that statement,
and
that Act that the
road out of debt. "Taxes are paid in
the sweat of every man who labors, because they are a
burden on production.
If excessive, they are reflected in
idle factories, and tax-sold farms.
Our workers may never
see a tax bill, but they pay in deductions from wages, in¬
creased costs of what they buy, or in broad cessation of em¬
no
and
not regain
will
had been
No
must
and what to do
Something was clearly
about it.
the
we
wrong
was
1767
human
may
advanced by Lord Keynes, is
whether
that
and
demand
and
is
inelastic
it will continue
to
sub¬
ordinate gold to the outer fringes
of control, useful for sale to us at
under a gold standard does
not respond to the laws of supply
money
$35 an ounce but otherwise sub¬
stantially superseded, will depend
largely on ourselves and Britain.
But the Bank of England, which
in
production.
"Money has, both
in the long
period, a
will
have
much
to
say
about
zero, or at any rate a very small
British monetary policy, has, since
elasticity of production, so far as
the time of Bagehot, according to
private enterprise is concerned, as Walter
Leaf, invariably put the
distinct from the monetary au¬
public welfare ahead of private
thority: elasticity of production
profit.
In this case British wel¬
meaning, in this context, the re¬
fare is closely tied to world wel¬
sponse of the quantity of labor
fare.
It seems, accordingly, more
applied in producing it to a rise
likely that Lord Keynes, who has
in the quantity of labor which a
on occasion severely ridiculed the
unit
of
it
will
command."—
orthodox banking fraternity, has
Keynes
was
speaking
of gold
been put by the Bank of England
Theory of Employment, Interest in
his present position in order,
and Money," Harcourt Brace &
because of his influence in Wash¬
Co., New York, 1936, page 230.
ington, to help enable the bank
run
and
in
the
short
.
.
All that can be said of this am¬ to "sell"
Washington a currency
biguous assertion is that if Lord scheme which will prove really
glass of icewater does not become Keynes
was
speaking of
gold workable, than that he has sud¬
a highball because we add a drop
when he talked about "elasticity
denly been able to persuade the
of whiskey to it, so does a mone¬ of
production," then he was mis¬ bank of the virtues of his Utopi'an
tary system not become a gold taken, because the general in¬
ideas for totalitarian controls for
standard if we overdilute the in¬ crease of about
70% in the price money.
On this hypothesis it
fluence of gold.
This is clear of gold in the early '30's nearly
would be a reasonable guess that,
enough in any extreme case.
A doubled the quantity mined, in unless the United States continues.
system which permitted the issu¬ spite of the efforts by
South to
upset
the
world
monetary
ance of a million dollars of bank
Africa to discourage mining of
applecart, the Keynes plan or any
deposits to each dollar of gold their high-grade ore, and thus, de¬ other
plan which proves accept¬
would not be called a gold stand¬
veloped a very obvious "elas¬
(
able
by the most optimistic.
The
question is one of degree, of the
length to which we can go in
weakening the influence of gold
ard
bank
the
to
will
prove
no
If, on the more than a useful stopgap in a
hand, he was talking of profound
and
well-considered
bank
deposits
when
he
said program looking to ultimate res¬
"money" was "inelastic," then it toration of a proper gold standard.
(Continued from page 1754)
on
the quantity of money with¬ is difficult to
figure out what he
potato.
So brief is its growing George Paish had on the Federal out emasculating the forces of meant when he spoke of "the re¬
Reserve
authorities, or did not supply and demand.
season that errors in estimate as
sponse of the quantity of labor
to the proper scale of production have, there was at least no time
If this conclusion is accepted, applied to producing" bank de¬
when they could not, had they
are not long in being detected.
If
then two
others follow.
First, posits.
wished to do so, have added sub¬
that the
conventional definition
production is too great and mar¬
There will always be an area
stantially to member bank re¬ of the gold standard has been in¬
ket
prices
are
correspondingly
of management, of course, under
serves by open market purchases
low, farmers tend to be discour¬
adequate to put gold in effective any system which supplements
of
Government
bonds.
Charts control of the volume of
money
aged and underplant and under¬
metallic
money
with paper or
published by the Board of Gov¬ and should be amended to forbid
With over a century of service,
produce. The next year the crop
credit.
And the wider this area
of the
Federal Reserve
is smaller, prices rule higher and ernors
any abnormal proportion of credit the wider are likely to be our the American Bank Reporter for
the
farmer
turns optimist.
He System show that there was actu¬ to gold.
Secondly, that under cyclical
monetary
fluctuations March, 1943, is off the press and
then tends to overplant and over¬ ally less Federal Reserve credit the definition as thus revised we
about the point of monetary bal¬ now in the hands of its subscrib¬
in use in 1929 than there had been
were
not
on
an
effective gold ance.
produce, thus closing the circle on
But if we destroy control ers. The desk edition, 6^x3^2 in.,
There was thus no
a normal two-year cycle.
In the in 1920-21.
standard in 1929 and have not
of this directory is particularly
by gold in order to avoid these
legal shortage of Federal Reserve been since the passage of the Fed¬
case of a crop like apples, which
fluctuations, we necessarily de¬ adapted for desk use and the
credit nor of gold in 1929.
takes longer to bring into bearing,
eral Reserve Act.
It is, in fact,
stroy gold as a means of identify¬ traveling man's suit case.
the
error
in estimate becomes
It follows that if the quantity probable that the critics of the ing the point of balance.
In concise form, the desk edi¬
And we
more
slowly manifest and the of money which could have been gold standard, when they use the do so without
setting up any tion contains an alphabetical list
cycle is longer, as are those of made available by our banks to term, are really talking about a alternative means of finding this of all the banks in the United
gold or factories or money.
American business in 1929 was different thing from its defenders point.
No man or men have yet States and Canada, arranged by
The important point, however, still
Dr. been found who knew this point States. The tabular arrangement
largely in the discretion of when they use the term.
is the admission at the outset that the Federal Reserve authorities, Kemmerer, for instance, is plainly of balance.
•;
shows the names of the official
the production of gold, and of any as it
was, then that quantity was discussing a standard under which
"The best hope for the future," personnel, correspondents in New
money on a metallic base, ebbs still being managed at that time. gold, if it is not in constant and
says Dr. Kemmerer, "consists in York,
Philadelphia, Boston and
and flows in a cyclical pattern. And it was
being managed along immediate control of the volume the improvement of
the gold other money centers, with char¬
This admission does not lead to
accepted lines.
Throughout the of money, at any rate sets defi¬ standard rather than in substitu¬ ter number of each national bank
the
mistaken
conclusion
that years 1926-29 the levels of both nite and practical limits to over- tion of some other standard in its
as well
as the capital, loan,
de¬
therefore gold, under an orthodox wholesale and retail (cost of liv¬ expansion.
Most critics, on the place."
What could now be done posit, surplus and profits, secur¬
gold standard, caused the boom ing) prices were apparently be¬ other hand, when they condemn to improve our gold standard?
ities and cash on hand, and due
and collapse of 1929.
Gold had ing held at about the level—re¬ gold are thinking about what On the theories here
presented the from banks.
relatively little to do with either cently accepted as a "normal" passed muster for a gold standard first
step should be to amend the
In addition, the listings include
boom or collapse.
What are the level—of the year 1926. Had gold in 1929, a standard which, on the Federal Reserve Act to
require
the principal Loan, Trust and In¬
facts?
If gold caused the boom it been in command, under an or¬ foregoing analysis, was so highly
orthodox limits to deposits with
vestment Companies, the attor¬
must have been a surplus of gold. thodox gold standard, the defla¬ diluted that it should not have
reference
to
their
gold
base.
neys in the large towns and cities;
If it caused the collapse it must tion would have occurred years been permitted to be called a gold
Then, as an alternative to a sub¬ also a list of banking institutions
have
been
a
deficiency which earlier
and,
presumably,
have standard at all. The trouble with stantial rise in general prices we
in tfye principal cities abroad.
caused the collapse.
been less catastrophic.
gold in 1929, in other words, was might well revise downward our
The book is published by The
It was, in the first place, not a
not that it failed, but that it was
Not only did our gold policies
present excessive price for gold.
Charles Steurer Press, Inc., 420
not fairly tried.
surplus of gold which caused the contribute
And then, as a means of curing
to
world-wide
dis¬
East 149th Street, New York, N.Y.
boom.
Sir George Paish, writing
A few other arguments may be and preventing the recurrence of
order in the '20's, but so did also
mm
in "The Tariff Review" of No¬
our
tariff increases. The conten¬ touched
upon.
It
has
been serious world maldistribution of
vember, 1927, two years before
tion, therefore, that laissez faire claimed that the arbitrary fixing gold we should renounce further
the final smash, prophesied the
and gold demonstrated their in¬ of the quantity of our money by tariff
increases.
A
change of
trouble because of our deficiency
adequacy in 1929 bases itself on a some central authority (not a po¬ heart in these matters would be a
of gold.
Even then, in his ortho¬ distortion of the facts.
Laissez litical authority, of course, Heaven powerful weapon both for war
dox
opinion, our gold reserves faire did not have a real chance
forbid!) will do away with mone¬ and peace.
We cannot convinc¬
were
inadequate.
Two
years
The Department of Commerce
in that period.
Arbitrary inter¬ tary cycles. And so, of course, it ingly fight for "free enterprise"
later, at the peak of the boom, in ferences
disrupted
the
normal will. So would the fixing of any while reserving the right for our¬ announced on April 30 the estab¬
spite of unwisely large gold im¬
lishment
within
its Bureau of
workings of the laws of supply other production quota do away selves to interfere at will with the
ports in the previous decade, our and demand both as to the flow with cycles for that product. But
workings of free enterprise in Foreign and Domestic Commerce
monetary gold stocks, instead of
of goods and gold in international it would do away with free enter¬ these important fields of tariffs of the Office of Foreign Invest¬
being maintained at an orthodox channels because of our
tariffs, prise along with them. And with¬ and money.
ment Information to supply in¬
ratio of 10% of the $60,000,000,000,
and
as
to the quantity of our out ending mistakes.
A final word may not be out of
One of the
more
or
less of our combined
formation to American business
1929 should be place
money through our policies, con¬ clear lessons of
about the
Keynes
plan.
bank deposits and hand-to-hand
tradictory
as
these
were,
of that excessive profits and expan¬ With present gold reserves so interested in developing new en¬
Of The Gold Standard"
ticity of production."
other
New March 1943
Am, Bank
Reporter
Directory Now Ready
Foreign Investment
Information Service
had been permitted to fall
"economizing"
and
"sterilizing" sion—and a bad cycle—occurred largely monopolized by the United
of that amount.
gold.
That this signal record of in spite of "managing" the quan¬ States, no widespread use of the
By orthodox tests we had too
mismanagement should now be tity of money to hold prices gold standard can be reestablished
little gold reserves and the boom
cited as proof that still more man¬ stable.
until either this gold has been re¬
arose in spite of this deficiency.
agement will be the cure is odd
It is also claimed that a proces¬ distributed through purchases of
This
shortage, although clear
logic.
sion
of
small
cycles
under a foreign goods by us or until, at
enough
by
conventional tests,
It is not enough, however, to tightertie to gold will be quite as the very least, the rest of the
was not a controlling factor under
been
given time to
demonstrate that the advocates of disastrous in the aggregate as less world has
the Federal Reserve Act, which
mine itself new stocks.
Mean¬
had
so
greatly expanded
the managed money are mistaken in frequent cycles such as that of while some
currency arrangement
1929.
Both experience and anal¬
amount of credit which could be blaming gold for the collapse of
must be thought out which will
1929.
That does no more than tell ogy should discourage this con¬
put out on a given gold base that
tention.
The 1920-21 cycle, for enable the doing of international
us what was not wrong with our
the limit never came in sight.
economic
system at that time. instance, was a mere trifle, eco¬ business. Some hope in the mat¬
Whatever psychological effect
ter, even though makeshift in
warnings, such as that
of Sir But if we are to prevent a repeti¬ nomically and politically, com¬
^
money,
to
less than 7%
terprises in Latin America.
service
will
The
work in cooperation
•
the
RFC
agencies
States
and
Commission
American
Bank,
Export-Import
with
the
United
of the Inter-
Development Commis¬
sion. Eric Johnson is chairman
of
the United States Commission and
Nelson Rockefeller is head
I
n
t
e
r-American
Commission.
.
of the
Development
...
..
\
THE COMMERCIAL & FINANCIAL CHRONICLE
176S
with
utilities and investment compan¬
The experience of 1942 strikingly demonstrates
that the nation is largely dependent upon the
$1,880,985
transportation facilities of its railroads. Never be¬
fore have they been called upon to move such a
tremendous volume of traffic.
That their per¬
contribution
to the war effort is widely recognized.
Your Company has participated fully with the
other rail carriers, of the country in this vital
formance
constitutes
an
outstanding
against $838,185 in 1941.:
as
•:i
Net
and
-
'
Net Income
transferred
addition
the
to
the
was
credit
of
$49,082,183
Profit
and
vastly expanded
industrial
This diverted to the rails
and intercoastal service.
This result reflects the unprecedented vol¬
of traffic,
The
both freight and passenger,
occa¬
declared
a
petroleum products that formerly moved to
the eastern seaboard by water.
Further diversion
of both freight and passenger traffic to the rails,
the extent of which cannot be accurately measured,
followed gasoline rationing and the rubber short¬
In the field of passenger traffic the volume
greatly expanded by troop movements.
This abnormal
wartime traffic volume has had
pronounced effect upon the business of the Com¬
pany.
Not since 1929 has it had a year of com¬
parable gross revenues. Despite heavily increased
costs for taxes, wages and materials, the Company
earned in 1942 a net income of $49,082,183, equal to
$7.61 a share. Increased operating efficiency, re¬
a
flected
in
substantial reduction in the
a
ratio of
operating
expenses to gross revenues, and lower
annual interest charges incident to the Company's
policy of debt retirement, contributed to this result.
included
an
increase
of
$91,375,731, or 27.1%, in
increase of $45,649,168, or
freight revenue, and an
68.5%, in passenger revenue.
The volume of revenue freight moved, as meas¬
ured by the number of tons moved one mile, was
36.1% larger than in 1941.
The revenue per ton
mile, however, declined to 8.65 mills, the lowest
since 1918.
The classes of freight accounting for
the largest gains in tonnage, with the percentages
of increase over 1941, were: Products of Agricul¬
ture, 14.4%; Products of Mines, 14.5%; Manufac¬
tures and Miscellaneous, 19.7%.
Passenger traffic, as measured by the number of
revenue
passengers carried one mile, increased
55.5% above 1941.
Revenue per passenger mile
averaged 2.058 cents, the lowest, except for 1940
and 1941, since 1917.
The movement of armed
forces in active
military service contributed largely
to the increased volume of passenger traffic, which
was further augmented by members of the armed
forces traveling on furlough at reduced fares.
In
ume
both freight and passenger traffic, the vol¬
moved constituted an all-time high in the
,
of Directors, on November 11, 1942,
dividend of $1.00 per share on the
v-
'>j-!■J'-iJ/-Taxes
Railway tax accruals were $82,890,104, greater
by $39,478,275, or 90.9%, than in 1941 and equiv¬
alent to $12.86 per share of stock.
Increased per¬
sonnel and higher wage rates necessitated larger
payments under the Federal railroad retirement
and unemployment insurance acts, which payments
amounted to $15,204,144, compared with $12,729,288
in 1941, and represent 2.56 cents out of each dollar
of operating revenue.
United States income and
excess
profits
tax
accruals
were
$41,579,081,
as
t
capital stock, payable January 15, 1943, to stock¬
(which,
holders.
and Loss.
Simplification Of
Proxy Roles Desirable
(Continued from page 1766)
permit the presentation of stock¬
holders proposals for action at
the stockholders' meeting rather
than requiring the management to
do so.
The present rules require
that the management set forth all
proposals
which
any
security
holders intend to present at the
stockholders
meeting,
together
with
of
a
each
statement
of the
reasons
such
proposals
that
so
reduction of $51,318,857 was
effected in the amount of capital obligations (in¬
cluding amounts due the State of New York on ac¬
count of grade crossing eliminations, and for equip¬
ment acquired under railroad equipment agree¬
ments assigned to banks) of the Company and its
lessor companies outstanding in the hands of the
public.
At the end of the year the total of such
obligations was $917,737,246, compared with $969,056,103 at the end of 1941, and $1,108,807,952 at the
year a
end of 1932.
-
Interest
charges on an annual basis on the obliga¬
tions outstanding at the end of 1942 were $11,353,106 less than
on
the obligations outstanding at the
end of 1932.
In the four years
1943-1946 inclusive, the Com¬
pany will be called upon to provide for approxi¬
mately $50,464,000 of maturing obligations of the
As above
proxy
outlined,
formation
could
statements.
other in¬
any
avail¬
made
be
able to stockholders through Form
10-K
reports or through com¬
munications
to
stockholders
by
opposition to the management
that thinks it has a sufficiently
any
meritorious
to
case
present to the
stockholders.
It is
made
of
ments
new
....•>
urged that
the
analysis be
state¬
an
many
proxy
available
now
under
the
-
rules with the view of sim¬
Payroll
costs,
including
taxes,
,
tant information
nominee's
menting the
the
quirements
to
Commission
supple¬
reflect
Form
the
10-K
authorized by the Interstate Com¬
railroads in the early
part of 1942 following wage increases made effec¬
tive at the close of 1941.
Corresponding increases
were, with but few exceptions, made applicable to
the Company's intrastate traffic within the various
states in which the Company operates.
The in¬
crease in passenger fares was 10 per cent.
It ap¬
plies as yet only to a small portion of the commu¬
tation traffic.
The increase in freight rates varied
from 3 to 6 per cent, depending on the commodity,
and spread over the total freight traffic amounts to
about 4.5 per cent.
An effort is now being made
by the Office of Price Administration, the Depart¬
ment of Agriculture, and other governmental agen¬
cies, to secure cancellation of the increases in
whole or in part in a proceeding now pending
before the Interstate Commerce Commission.
fares
For
were
Commission for all
Comparative
Income Account,
Statistical Issue dated May 17th.
Balance
Sheet,
etc.,
see
Summarizing,
the
following
there is no highly undesirable aspects of the
limitation upon the amount of proxy rule requirements may be
language required to describe the stressed:
proposal although the reasons for
They result in long, compli¬
the proposal must be limited to
cated proxy statements which,
100 words. In order to discourage
quite probably, are not generally
read by stockholders;
management baiting, by virtue of
this rule, it is suggested that the
They greatly add to the diffi¬
culties and expense of proxy so¬
security holders making the pro¬
posals be required, themselves, to
licitation and have a tendency
have their proposals printed at
toward
disenfranchisement of
their own expense, but to permit
stockholders by. encouraging cor¬
them to be mailed with the man¬
porations to refrain from proxy
agement's material
(or, if the
solicitation;
management objects to the en¬
They impose substantial bur¬
closure with its material, at the
dens
upon
the
corporations
which have listed securities and
corporation's expense). This would
are
possible
and
of this rule and
'.A2T?
•
•
re¬
on
of
invites
vul¬
views
*
expressed
by
any re-
?
subject
~
under discussion—Editor.
President Sees Need
This would facil¬
man¬
the
■
readers
its
Dimmock, or on
lated - phases of the
itate opposition solicitation on any
points where the particular
agement may be properly
CHRONICLE
comments
Mr.
deems
tion material.
the
the
extent
reasonably
necessary and requiring the filing
of Form 10-K concurrently with
the filing of the proxy solicita¬
For World
nerable.
President
Body Of Law
Roosevelt, in
a
mes¬
simplifying the proxy state¬ sage to the American Society of
ment requirements, such informa¬ International Law, on April
30
tion as stockholdings (except in said that the nations of the world
must have a definite body of law
cases exceeding 10%
ownership of
a class of
stock), and compensa¬ for its dependence and that "it
In
di¬
cannot permit a recurrence of the
present reign of lawlessness." The
President further said that such
and
not
transactions
require
directors,
of
the
stock
or,
nominal
ownership by
if required, only a
amount
need be owned.
be just as good a di¬
rector without owning stock as he
can
where he does own some.
A
man
can
However,
one
if he is
interested
in
class of stock of the
corpora¬
tion to
as
of
issue, he, of
the
tend
Freight and Passenger Rates
Increases in interstate freight rates and passen¬
merce
The
statements by
proxy
broadening
tion
having failed to effect a settlement, the matter is
now in abeyance pending further action under the
Railway Labor Act and Executive Orders of the
President of the United States.
On January 25,
1943, other organizations, representing locomotive
enginemen and firemen, conductors, trainmen and
switchmen, served notices requesting a further
wage increase of 30%, with a minimum increase of
$3.00 applied to the daily rates.
ger
use a fair sense of pro¬
portion as to what is and is not
really important to stockholders.
the director-
on
qualifications,
the in¬
creased rates of pay and vacation allowances which as such extraneous material as
became effective December 1, 1941, following the compensation to officers, employ¬
settlement of demands of organizations represent¬ ees and others who are not even
nominees
for
directors.
These
ing railroad employes.
On September 15, 1942, organizations represent¬ items do not have any great bear¬
ing fifteen groups of railway employes served ing upon the nominees qualifica¬
Much has been written as
notices requesting a further increase in pay of 20c tions.
to whether directors should or
per hour with a minimum hourly rate of 70c, and
also the adoption of a "union shop" rule.
Follow¬ need not own securities of their
ing rejection of these requests by the railroads, corporation. Most State corpora¬
the services of the National Mediation Board were tion laws and, I believe, most cor¬
invoked by the labor organizations, but, its efforts poration charters or by-laws, do
:
alysis to
statements
proxy
they stress really impor¬
rector with respect to the corpora¬
tion should be eliminated, as well
Wage Increase
security holder in
support of each proposal (such
reasons being limited to 100 words tend to discourage purely specious
per proposal),
Perfectly ridicu¬ proposals,
/
present
prac¬
a
.
quirements for
Capital Obligations
During the
large
favor
to
extent
an
such
director to such
should
be
course, may
class in his
statement.
rectors
extent that it
an
disclosed
in
a
body of law "must be a steadily
growing one, tempered by past
experience but capable of fulfill¬
ing the needs of a rapidly chang¬
ing world.",
;
a
proxy
Compensation to di¬
be judged in the
should
.
.
.
Mr. Roosevelt's message,- sent to
the Society's annual session
in
Washington
and
addressed
to,
Frederic R. Coudert, President of
the organization, follows:
v';.
"The
objects and purposes of
Society, namely, to foster the
study of international law and to
the
the
promote
maintenance
lations
establishment
of
the
on
and
international
basis
of
re¬
law
and
justice; are praiseworthy, and the
Society's record in promoting in-,
in
terest
this
important field
pride.
is
a
matter of justifiable
;
"Objective and enlightened dis¬
10%
as
director activities and this might
bear upon his qualifications as a
cussion
of
the
rules
of
-.:'
conduct
that
should govern the relations
between nations tends to focus in¬
terest
on a
subject, the importance
of which is too little emphasized.
"With
war
raging on all seas
far-flung lands, we are
face to face with the proposition
and
in
light of their abilities and duties
and the consequent benefit to the that the alternative to such shock¬
corporation, and the mere state¬ ing destruction as exists today is a
ment of a dollar amount of com¬ definite body of law accepted and
pensation to a director is ob¬ followed by nations in their rela¬
viously meaningless.
The
conclusion
respect
is
true
in
same
of
transactions between the corpora¬
tion and a director—the story is
not
complete
holder
the
unless
knows
the
benefit
stock¬
which
the
tions
with each other.
sufficient
to
hope
tional problems will
,
"Men
about
saved and that law
same
information
directors whose terms
ing and who
are
are
for
expir¬
not coming up
they do in the
for directors,
information obviously
has no bearing upon the qualifi¬
cations of the proposed nominees.
and
of
It
as
nominees
not
We know too
well that progress is achieved the
hard way.:
^
dying
the
It is
that interna¬
automatically
adjust themselves.
corporation received.The
proxy rules require disclosure of
case
tue
than the
the- detriments
without
plifying and clarifying the rules
foregoing unfavorable as¬ to the end that their burdens and
pects could be largely eliminated detrimental aspects may be min¬
by simplifying the proxy rule re¬ imized, endeavoring in such an¬
for re-election
lous
as
benefit to the stock¬
more
holders
The
;
since 1916.
much
matter, cannot be done)
showing the whole picture, no
unfavorable or bearish impression would be given the stock¬
holders of record December 10, 1942.
The amount
of this dividend, $6,447,394, was charged to Profit
Company's history.
Railway operating expenses (before taxes, other
deductions, and fixed charges) were $402,669,598.
This was an increase over the previous year of
$71,231,487, or 21.5%, due to the greater volume of
business as well as a larger maintenance program,
greater accruals for depreciation, increased rates
of pay and higher costs of materials and supplies.
Railway operating ratio was 67.83, the lowest
forth
set
that management proxy statements)
stressing such information, and
confined
thereto,
would
have
tical
Company and its lessor companies.
Operating Revenues and Expenses
Railway operating revenues totaled $593,666,096,
more by $145,876,441, or 32.6%, than in 1941, and
ileges
or
dealt
in - over-thecounter,
thereby tending to
discourage the listing of secur¬
ities upon stock exchanges; and
They stress the disclosure of
facts which, viewed alone, put
managements in an unfavorable
light and give rise to bearish
tendencies
in
security values,
whereas, if additional facts could
be
was
was
:
Board
huge volume of traffic, the major part of which
age.
(
Dividend
production for war, other factors influenced the
upsurge of railroad traffic during the year.
First
among these was the disruption of shipping along
the Atlantic coast, and the withdrawal for war
transport elsewhere of vessels formerly in coastal
a
£
sioned by the war.
transportation effort.
In
to
/
■
':
income, after all deductions,
was
Loss.
ume
excess
ad¬
are
earlier in this article. It is believed-
unlisted trading priv¬
mitted to
1941.
Accruals for
profits taxes totaled
securities
whose
ies)
$7,592,388 in
Canadian income and
corporations
other
by
EXTRACTS FROM ANNUAL REPORT—1942
compared
incurred
(except
such burdens not being
THE MEW YORK CENTRAL RAILROAD COMPANY
To the Stockholders:
Thursday, May 13, 1943
on
that
the
battle
fields
civilization
are
may
be
by which
we
have learned to govern our con¬
duct toward our
neighbor, and not
force, shall prevail.
The body -of:
law under which our
civilization
such
must advance must be a* steadily-
is
growing one, tempered by past
experience but capable of fulfill¬
ing the needs of a rapidly chang-'
ing world. The world must have;
should
submitted
that
disclosure
be
required of only the
following information in the man¬
agement's proxy statements: the
names
and business experience of
the proposed directors, as well as
any
arrangement
ing
whereby
or
any
understand¬
of them
reasonably be considered
a
resentative
may
of
on
the
Board
rep¬
an¬
such law for its
cannot
permit
dependence.
a recurrence
present reign of lawlessness.
"There has scarcely been a
when there
now
for
was
It:
of the
C.
•
I
time1
greater need than,
constructive
thinking
the looking to the supremacy of law,*
stockholdings owned or repre¬ justice and common decency in
sented where they exceed 10% of the relations between nations and!
a
class; any cumulative voting their
peoples. Learned organiza¬
rights; the amount of stock out¬
standing of each class; and the tions, such as your society, are in
other,
person
or
company;
.
which, therefore, are required to
comply with the proxy rules, formalistic
matters
referred
to va position to play a helpful part."'
Volume 157
Number 4176
THE COMMERCIAL & FINANCIAL
CHRONICLE
New WLB Wage Edict (s
Tomorrow's Markets
Inflationary
Says L. H. Brown, President of Mns-Hanviile
Lewis H. Brown,
President of Johns-Manville,
asserted
May 8
that the War Labor Board has "determined
to relinquish the fight
against inflation by breaking through its own 'Little Steel'
formula,"
said the New York
"World-Telegram" of May 8, which also gives
the following:
The
statement
establishing
of
crease
maintenance of
a
membership
checkoff
with
following the WLB
in-^>
hour and
the
union
NY Bond Club State
Richard
Shields
nated
111., factory.
of
ef¬
the
of
blanket
nomi¬
the
Peabody &
will
Bond
take
Co.
place
The
at
the
of
ing the past
W.
believe
nated
should
Johnston, of Smith,
Co., has been nomi¬
&
for
secretary,
and
Walter
Wilson, of Morgan Stanley &
Company, for treasurer.
that you have
Lewis H. Brown
and
Board
scrap the 'Little
Steel' formula,
and that it is no longer in effect,"
of
three
Governors, to
include
years,
for
serve
T.
Jerrold
to
"This
is too
matter
the welfare
Bryce,
of
Clark,
Dodge & Co.,
Brandi, of Dillon,
Read & Co., and Henry C.
Brunie,
of the Empire
Trust Company.
James
Coggeshall,
Jr.,
of
The
First
Boston
Corporation,
has
vi¬
Frederick
of the country
Almost every¬
Texas who
is
interested
of
and
reasons,
own
businesses
with
obviously
good that thinking of the
market as too high, or on the
verge of a break seems sheer
madness.
"
r
tvi':
I
so
*
have
*
stressed
time
and again that nowhere is
unanimity so dangerous as in
the
stock market.
sons
for
off
said
inflation,"
that
tension
Mr.
continuation
a
of
The
under
alone.
-ft
This
the
ex¬
board's
policy on
wages may compel Johns-Manville
to abandon its
Black,
W.
above the present ceilings.
He said nothing has happened
tent
policy
forms
Members
Johns-Manville's consis¬
of
opposition
the
of
closed
check-off.
is
working at
*
*
doesn't
both
.
that
mean
prices
effort and will continue to do
under
so
circumstances
any
to the best of
our
"If maintenance of
is ordered I wish you to know that
we
war
and
us
accept it only
can
torial
to which
one
as
we
NEW
dicta¬
a
imposed
measure
nominating
Perry E. Hall,
will sub¬
only
war
and will
under the discipline of
regard as applicable
only for the period of the war."
"I
realize
government
that
efforts
than
hold
to
the
signed
Chas.
line
take
W.
S'
i'V
1
"i A
against rising costs of living have
Street
York
the
&
Co.,
members of
He
from
of
wrote
the
stock
a
also
1934 to early
by
new
wrote
a
feature
insurance
policy of price and wage controls
everybody.
To try to keep
ahead of price rises by increasing
other
weekly
in
1942
he
industries.
Scranton
&
supervise
Co.
With
investment
engage
in
Chas.
Laffan
this
is
something about
present
market
ing
which
interesting
insurance
'
,
,
•
4
in the firm's research and
J |
'•
'
y
,
*
'
SI
'
•
r
.
,
1
Eric
Chronicle)
A.
'
•
*
'
.
'.
*
r
annually $530,000
on
each June
-
1, 1944 to 1953,
'
inclusive
are to be issued under an Agreement to be dated as of June I, 1943'
provide for the issuance of $5,300,000 par amount of Certificates to be secured
to cost
approximately $7,175,000,
0.875%
1947
1.65%
1951
;
2.20%
1.20
1948
1.85
1952
2.25
1.40
1949
2.00
1953
2.30
2.10
Issuance and sale of these Certificates
Circular may be obtained in
subject to approval by the Interstate Commerce Commission. The Offering
State in which this announcement is circulatedfrom only such of the
undersigned and other dealers as may lawfully offer these securities in such State,
are
any
;
1
"
»
1
.p
„
1
-l
i:V< 1 y',' A'-t./-"
"L
r
;
'«!
*
h
r
*
^
.HALSEY, STUART & CO. INC.
department.
Straus Securities Co.
Financial
'
*
analysis
Eric A. Johnston Will
The
'
•
(PHILADELPHIA PLAN)
•
Address N. Y. Bond Club
to
on
$5,300,000
standard-gauge rolling stock, estimated
portfolios
promotional work
Liguori O'Donnell With
(Special
notes
companies.
to
W.
Johnston,
LADENBURG.THALMANN &.CO.
President of
BLAIR &,CO., INC.
OTIS &CO.
(incorporated)
E.H. ROLLINS &. SONS
CENTRAL REPUBLIC COMPANY
'
GARY,
Donnell
IND.—Liguori
has
become
A.
United
States,
will
address
the
Bond Club of New York at its next
with
.
incorporated
the Chamber of Commerce of the
O'-
associated
Straus
Securities
Co.,
as
luncheon meeting to be held at
representative in Gary with of¬
the Bankers Club on May 19.
Al¬
fices at 504 Broadway. Mr. O'bert H. Gordon, President of the
Donnell was formerly president of
Bond
Club, will preside at the
O'Donnell & Co., Inc.
J. E. Pepper Co-Manager
(incorporated)
EQUITABLE SECURITIES CORPORATION
HORNBLOWER & WEEKS
.
HALLGARTEN & CO.
FIRST OF MICHIGAN CORPORATION
GREGORY &SON
luncheon.
SCHWABACHER &, CO.
incorporated
f
M—ln
-
I Now David Morris & Co.
PA.—John E. Pepper, j
The firm name of William Morof Reynolds & Co.'s of¬ :ris & Co., 52 Wall Street, New
Pottsville, Pa. has also York City, specialists in over-the-
EDWARD LOWBER STOKES & CO,
F. S. YANTIS & CO.
incorporated
YORK,
manager
fice
at
become
co-manager
of the firm's
office at
counter
securities
has
been
York, Pa., in the YorkBuilding.
Joseph H.
Mosser remains as manager of the
changed to David Morris & Co.
York office.
the "Chronicle"
town
Hotel
Formation
Co.
was
of
David
previously
of
Morris
reported
April 29.
&
in
To be dated June 1, 1943. Principal and semi-annual dividends (December 1 and
June 1) payable in New York City.
Definitive Certificates in coupon form in the denomination of $1,000,
registerable
as to
principal. Not redeemable prior
to
maturity. These Certificates are offered for delivery when, as and if received by us. It is expected that Certificates in
temporary or definitive form will be ready for delivery in New York City on or about June 1, 1943. The
information
contained herein has been carefully compiled from sources considered reliable, and while not
guaranteed as to
ness or
May 13, 1943.
be
request, together with the current
1950
will
may
issue of "News & Views" contain¬
There
discontinued
Mr.
a
had from Butler-Huff & Co.
upon
1946
communications, rubber and
as
business.
Copies of the "Evaluator"
1945
column
writing about the stock market
the employee inevitably
will be the loser."
the
1944
Daily Telegraph"
prior to the war.
com¬
brief discussion of the position of
MATURITIES AND YIELDS
1942.
cover
in which
well
as
in
and unyielding
and
panies and 37 banks
signal
only to step
back and do pratt-falls but
before going into acrobatics
managed to pull a lot of
people along with it.
j.
market
low
against fate
compara¬
Certificates
which will
"New
Commerce"
Early
race
These
for the "London
for
a
unconditionally as to principal and dividends by endorsement
by The New York Central Railroad Company,
208
the
however, without disastrous infla¬
tion, is for the government to fol¬
creates a
1
.
daily for the "Wall Street
Journal" from
He
a
contains
tive analysis of 82 insurance
To be guaranteed
has re¬
position with
twice
wages
'
To be due
staff for
"The only way it can be solved,
courageous
'
"Wall
Scranton
Journal"
column
a
gave
only
bull
2%Equipment Trust Certificates
years,
a
Street,
Journal
1927.
difficult position," he
asserted.
"I am in full sympathy
with the phase of this problem.
a
I
:
Stock Exchange.
Laffan came to the "Wall
Mr.
prices,
particularly food prices, have risen
to an extent which has placed em¬
"Evaluator"
not
Equipment Trust of 1943
New York
not been effective and that
ployees in
of
fifteen
to
Church
the
of
member
a
Street Journal" editorial
more
mit
Bank Evaluator
New York Central Railroad
»
HAVEN, CONN.—Robert
Laffan,
upon
when
averages
market
■
Chas. W. Ssranten Go.
membership
Ins. &
the
were
this
necessarily at any
icith those of the
They are presented as
those of the author only.]
an
Rob!. Laffan Jsins
ana
ability.
in
not
coincide
Chronicle.
the
or
Whyte
expressed
National
capacity to produce goods for the
war
time
do
The current issue of the "Insur¬
ance and
Bank Stock
times
were
*
Chairman, v. Walter
F.
Blaine,
Henry H. Egly Joseph H. King,
and Joseph A. W. Iglehart.
and
'
"Johns-Manville
of
committee
all
to
shop
reason
price
article
views
easy thing to sit
Evaluator,"
defy analysis. by idly and watch stocks go issued by Butler-Huff & Co. of
accept it or leave through old highs. I remem¬ California, 210 West Seventh St.,
is
now
You can't
being distributed.
The
argue ber,
however, when there
E. Hutton
Co., Joseph H.¬
King, of Union Securities Corpor¬
ation, and Lee M. Limbert of
Blyth & Co., Inc.
to
maintain" policy of not
asking for general price increases
relax
Chase
[The
But
untouched.
'
Thursday.
—Walter
con¬
that the fat has been removed.
not
applies.
More next
which
ordinary market
the
But
given
before to hold all profits and
^-^Jehart,
&
"patriotic but diffi-
cult
to
The
to do
wait still
that may start the mar¬
ket downhill the fact remains
H.
of
And
can't, I won't advise read¬
here last week and the week
cause
It's
can't
change my opinion.
until it does the advice
easy
piece of
decline; a
ditions would leave the
rea¬
I
to
open
a
may set off a
minor piece of news
with it.
•
possible that
news
Continuing as governors will
be: Harry W. Beebe, of Harriman
Ripley & Co., Inc., Eugene R.
Brown
and
ers
this
You either
it
It is
whatever
here
is
it.
Perhaps by the
the question of
time the next column is writ¬
becomes para¬
ten
enough signs will appear
But with the public
structure
*
it
now
mount.
their
whatever
bring myself to buying.
Of course,
>
head
But
are
hope.
if I
are going down imme¬
diately. The very reason that
to go unpublished."
the public is in and anxious
Contending the company's posi¬
to get in deeper will, for the
tion in opposing the increase has
time being, either make for
been based entirely on "four sinbeen nominated to serve
cere attempts
to co-operate with;Beel1 nominated to serve the un- higher prices or a prevention
the
the government in its efforts to exP»'ed term of George D. Woods
of any wide open break. But
he wrote.
tal
advances
a mass
security prices (and their standing by with wide
number surprised me) is con¬
purses the answer is not
vinced that prices are bound to find.
*
to rise. They point to all sorts
sji
:K
Nominations for members of the
to
on
hope,
on
body in "Arkansas, Louisiana timing
W.
informed
now
based
this is written.
year.
Fenton
Barney
the country at
determined
been
of
vice-president, the post
held by Mr. de La Chapelle dur¬
wage
large
has
president of
Kidder,
office
increase.
"I
Chapelle,
Henry G. Riter, 3rd, of Riter &
Co., has been nominated for the
ing of the in¬
From
prices ad¬ does not ring true. What it
is gone. is I can't put my finger on.
originally
(Continued from page 1756)
Club's annual meeting to be held
on June 9.;
the
flationary
Co.,
for
election
warn¬
fects
&
La
year
sent previous¬
to
de
Club of New York for the ensuing
to succeed Albert H. Gordon,
Brown
made public a
letter he had
be
Qhgpgjjg
voluntary
Waukegan,
ly
jjg
dues at
Board
order
Whyte
Says
which
on
vanced
in
of
the company's
Mr.
directive
wage
cents pe.r
ordering
union
issued
was
general
a
on
Walter
the basis
1769
accuracy, we
believe it to be
complete¬
correct
as
of this date.
various
1770
New York Title & Mortgage Co.
SERIES C-2
Complete descriptive circular will be sent upon request.
Seligman, Lubetkin & Co.
Incorporated
Members
York Security
New
Dealers Association
41 Broad Street
New York
Telephone HAnover 2-2100
Teletype NY 1-592
Trading Market In
Real Estate Securities
PARK CENTRAL HOTEL
Series C-2
Mortgage Trustees Sell A Property Which
Has Been A Drain On The Trust Estate For
(870 Seventh Avenue)
55% of Cost
We believe that this sale is significant in that it shows
clearly
Certificates at present levels of approx¬
imately 38 are considerably underpriced.
If a property such as the Mecca Theatre and the adjoining stores,
occupying the west side of Avenue A from 14th to 15th Streets, New
that the Series C-2 Mortgage
General Mortgage 4^'s, 1957
York
the
City,
be sold for all cash in the amount of $170,000 when
can
actual
not
income
real estate taxes,
clusion
is
income
excess
'
well-known
a
axiom.
With
buildings limited for the
tion, purchasers of real
new
dura¬
estate
must confine their search for this
of investment
type
Telephone: DIgby 4-4950
Bell Teletype:
properties
NY 1-953
in
with
pancy
sufficient
return
on
There
Park Genfral Hotel General Mortgage
Basis
Oorporalion
of
able
the
these
bondholders.
has
Trustee
the Plan of Modification
that
Mortgage Bonds
May 1,
holders
will
There
be
interest
nual
semi-an¬
another
the/original funded
of $22.50
due July 1.
Bonds purchased to¬
day will be entitled to these pay¬
hotel with its present
ments.
Second
payment
mortgages
Despite the fact that hotel busi¬
in
than
now
York
New
is
far
better
during the Worlds Fair
the bonds of this property are
currently selling below the high
era,
price reached at that time.
Because
of
its
size
large
excellent
location, this 1,600-room
hotel is receiving a good share of
the current hotel boom
.
ing
The bonds
with them stock represent¬
carry
equal share in two-thirds
an
of the ownership of the property,
a feature that is not only a hedge
against inflation but which should
the bondholders to re¬
the maximum benefit from
permit
ceive
the
property.
The
for
gross
the
oyer
income of the hotel
single
year
of
1942
Total
was
$2,500,000, yet at the present
price at which the General Mort¬
gage
Bonds with stock are quoted,
value of the entire
property,
including the furniture and fur¬
nishing contained therein, is being
placed at less than $3,000,000. This
is in interesting contrast' with the
original cost of the hotel, which
was
in
excess
of
$11,000,000, and
the value of $6,750,000 placed on
the property by the City of New
York in its 1942-43 assessment.
It is also
interesting to
compare
Funded
Debt—
$1,200,000
—_—
mortgage
bonds
4,055,000
■
—
_
basis.
first
institution
loan.
the
The
$5,255,000
block
hotel, occupying the entire
front
did
between
55th
York
its theatre and amusement district
accessible to the shop¬
ping and business sections of the
city. Moreover, the buildings are
relatively modern and well main¬
tained
(erected 1925 and 1927).
The buildings are 31 stories high
and contain a total of 1,600 rooms.
addition to its
In
the
other features,
hotel contains
a
large indoor
swimming pool.
were
Mortgage Bonds
issued in reorganization of
the property
effected in 1935. Un¬
der the plan, funded
debt was
sharply reduced and the bond is¬
sue
placed on an income basis,
per
at
annum
thereafter
failure
be
of
the
that
was
Connecticut
so
a
new
of
interest
until
fixed
at
rate
of
4V2%
Feb.
the
1,
1940,
this
rate,
a
$1,-
from
the
Life
Insur¬
requiring
any
bondholders'
the
stipulation.
in
somewhat
was
of
loan
obtained
without
Co.
not
earnings
materially in¬
Mutual
modification
could
However,
hotel
creased
of
outstanding at
of interest pay¬
the bonds and was suf¬
on
ficient
refund
to
j mortgage
and
which
to
to
the
old
provide
pay
first
funds
the back in¬
terest to the bondholders.
the
Cer¬
Active Markets
in¬
N.Y.TitleJtge.
Prudence Collaterals
Trustees,
less
or
for
demand
tificates.
Series
A-18
through
necessity
devoted their past ef¬
keeping properties in con¬
improving income, now
find themselves in a position to
take
advantage of greatly im¬
and
all
other
forts to
TITLE CO. CERTIFICATES & MTGS.
dition and
proved real estate conditions and
SIEGEL
to
39 Broadway. N. Y.
liquidate at much better prices
than in the past.
One important
point to be considered in the cer¬
tificated issues such
that
the
cost
the
of
Trusts
good market liquidations should
a
in
many
and
in
cost.
be
made
but
to
liquidation
80%
cost
can¬
that
assume
be
level.
of
excess
believe
we
could
or
in
to
estimate
accurate
reasonable
75%
close
cases
some
An
not
be
cases
it
final
around
the
With this fu¬
Of
necessity, however,
there will be certain expenses to
be paid for the plan of modification and, of course, brokerage
commission
for
the
1-1942
System Teletype
IBA 31st Oosivention
Proceedings En look
The Investment
ciation
of
available
a
loan.
new
These
items, if charged to 1943
income, may lower this estimate.
Regardless of this contingency, the
Bankers
has
America
Asso-.
made
booklet containing
the!
proceedings of its 31st annual
meeting and war finanri\ confer¬
ence, which was held /OcY
18-20
in New York City. FulNd£«uls of
the meeting are given in the\ub-r
lication, in which is also presented
the list of the 1942-43 officers and'
national
governors,
the bonds.
CO.
DIgby 4-2370
Series C-2
as
to
Bell
&
committees,,
committees, constitution and by-laws and group;
group executive
constitution,
Cities Service Looks Good
Common stock of Cities Service.
in
Alstyne,
safe coverage of interest require¬
Street, New York City, members
ments
of the New York Stock Exchange.
apparently is considerably better
than in 1942.
In a letter to the
dated
bondholders
of
balance
same
the
on
would
indicate
bonds.
securities
these
seem
current
All
like
in
computations in arriving at
they deducted certain
required in their plan of
Now that the plan
modification.
ings continue as in the past sev¬
eral months, we do not believe it
and if
earn¬
management
suspended
payments July 1, would be too optimistic to esti¬
1942, and instead made substan- mate earnings as much as twice
tial periodic principal payments the 1943 interest requirement on
a
all,
good
a
A condensed statement of
showed
earnings would be equivalent to
7.5% on the bonds.
However, in
reserves
section
of
the
1943
relative improvement as the
this figure,
the
increase
before
past two
&
depreciation
years
is
as
for
the
follows:
upon
request from Van
NY Title and Mtg.
1941
$1,220,899
$1,128,670
629.398
_________
Service
563,709
41
&
expenses-
577, to2
$2,269,530
1,985,520
1,815 Ofii
—
34,459
15,776
Real
estate
taxes-
200 475
204,911
First
mtge.
interest
48.030
50,149
3.297
5.270
Other
expenses
Amortization
229.082
Balance
Genl.
mtge. interest
Earned
per
bond—
Ctfs.
have prepared an
650,566
$2,500,863
income—
Total
Costs
Wall
Series C-2 Interesting
Gross Income:
Other
52
earn¬
1942
Roome
Co.,
Alstyne, Noel & Co.
appreciation.
ings
Noel
Copies of the memorandum may,
price!be had
speculation for income and
months of January and February,
their
remarkable
April 4, 1943,
estimated that if
has been abandoned
interest
substantial
Business thus far in 1943
in 1941.
continued.
fixed
the
of
Mortgage
more
sub¬
considera¬
for
earnings of this and other hotels
the hotel
year
requirement which is now being
The
the
have
Court
1942 were 5.65% on
bonds compared with 4.40%
Published earnings of
the
that
the
capital.
doubt
no
to
Company offers an attractive sit¬
uation according to an interesting,
memorandum just issued by Van.
for the
the
the invested
is
This
excess
suspension
with
is the
fair
a
pay
the ing at the time the Tr.ustees took
bondholders possession.
With this thought in
Sufficient consents mind, it is quite possible that in
obtained.
ments
informed that it
are
the sale
together
with the cash involved, the Trus¬
tees
would be permitted to ac¬
cept certificates in part payment.
Such a procedure should create a
to
bondholders
the
loan
show
to
Mortgage
the management
General
cumulative
of
General
ance
condi¬
con¬
occu¬
the properties is in most cases the
amount of the mortgage outstand¬
because
from
and
is
the
and is easily
in¬
principal
payments
jeopardy in case a
bankruptcy action was necessary
Streets,
is
their
physical
rolls
in
56th
and
new
rent
completed
or
the first mortgage
City,
the
have
to
Avenue
but a short
distance above Times Square with
New
was
reason for
that the lenders
was
want
not
terest
making
Seventh
of
measure
apparent
request
fixed
The
This
by the holder of
mortgage and later by
200,000
$10,878,103
mortgage
General
The
the
...
—
;
Present
First
Total
and
$8,500,000
2,000,000
378,103
——
;„v
___
who
fixed interest.
mortgages
Notes
ness
debt of the
debt:
Original Funded Debt—
First
foreclosure
tion
paid to bond-: placed
January, 1943, totaling $45 per $1,000 bond, will be
of record May 17, 1943.^—
they
manner
a
required
of the
to place them on an income / basis
1943, because of insufficient support from
The interest therefor remains fixed at 41/2%.
The
advised that interest payments due July, 1942, and
General
abandoned
was
made
was
of line with
tion certain proposals for
of
property in which,
activity ip /the purchase
and
sale
of
income
producing
properties and it is our conten¬
new
terest
first
We
creased
mortgage
ing for
the
announcement
avoid
to
which had
while, negotiat¬
first mortgage.' It
also gave them time to solicit the
bondholders' approval to return
to a 4V2% cumulative income in¬
|
4Y2 Points In Back Interest Will Be Paid May 18.
21/4 Points Accrued Interest Will Be Paid July 1.
Yield Of Over 10% Obtainable. Earnings Increasing.
An
In this
become due.
were
81® Seventh demise
first mortgage
the
to
good
dition
on
out
seems
tions.
mit
liquidation in
prices
of a 55%
Ownership of real estate as a
reliable hedge against inflation is
New York
Exchange Place
certifi¬
to
38
intention of the Trustees to
ratio to cost.
New York Curb Exchange
40
distributions
prospect and a fair yield on
capital, the approximate
present price level of Series C-2,
invested
in
( jVew Yor/c S£oc/c Exchange
c
enabling it to make
1
ture
cate holders will command
Co.
&
Shaskan
and
good
net
Estate
could'*
it
expenses
the logical con¬
properties
income
to
the
that
providing
Trust
from
operating
cover
182,484
5.65%
178.363
182,484
4.40%
Seligman, Lubetkin & Co., Inc.,
Broad Street, New York City,
analysis of series
certificates,originally issued and guaranteed
by New York Title and Mortgage
C-2
first
mortgage
Company.
;
Copies of this analysis may be
had from Seligman, Lubetkin &
Co.
upon
request.
Volume
Number 4176
157
THE COMMERCIAL & FINANCIAL CHRONICLE
OUR
Houston Light & Power
REPORTER'S
Common Stock Offered
Preliminary
inquiry
reported
by dealers indicated a quick
cleaning up of the $38,000,000 of
31/4%,
30-year
bonds of the Public Service Com¬
of Indiana, which
pany
were
ex¬
pected to be placed on the market
today.
Dealers reported a
broad in-
terest, with a number of New
England
insurance
companies
-
applying
to
the
selling
for sizeable amounts.
•
The
bonds
petitive bidding
the
company
a
for
the
which
issue
in
com¬
on Monday with
syndicate paying
successful
the
group
>
sold
were
price of 101.0969
will
mature
in 1973.
offering
price of 102%
was
fixed at
V2
point to
less
dealers, and it was expected that
subscription books would close
without undue delay.
Proceeds
suer,
of
est,
of
which
amount
"A" 4s
equivalent
an
series
not scheduled to
are
ma¬
ture until the Fall of 1969.
issue,
new
&
Light Co., was made
a countrywide group
of 69 investment
banking firms
headed by Smith, Barney & Co.,
Lazard Freres & Co. and Blyth &
Co., Inc. Other principal under¬
writers
are:
Goldman, Sachs &
Co.; Harriman Ripley & Co., Inc.;
Kidder, Peabody & Co.; Lehman
Brothers; Mellon Securities Corp.;
May
12
by
Stone & Webster and Blodget Inc.;
Union
Securities Corp.; *- Merrill
Lynch, Pierce, Fenner & Beane;
Glore, Forgan & Co.; Lee Higginson
Corp. and Spencer Trask &
•
known
Se¬
stock, made last year. Of the total
500,000 shares outstanding, 257,336 shares were distributed
pub¬
licly through the operation of the
exchange offer.
of
The
the Public
New
bit
a
slow, such
Service Company
Hampshire
$20,500,000
3*4s and the Erie Railroad's
$10,000,000 of one-to-ten-year
Both
time
ual,
when
issues
investor
institutional
was
direction
corporate financing to reach mar¬
ket in the wake of the recently
came
at
individ¬
turning strong in
Second Victory Loan
Drive of the Treasury, which for
several
weeks
kept a large part
of the underwriting and security
dealers'
fraternity
rather
com¬
pletely occupied.
and
with
the
Although
huge
The
the
war-fi¬
private undertakings con¬
suffered some neglect
sequently
marketwise.
But
within
the
past
fortnight, reports indicate both is¬
have
sues
been
moving
more
freely, with practically all of the
Eries
placed
and
of the New
with
the
Light
completion
ing
&
either
of
Power
will
subsidiary
a
National
Electric
or
Bond
&
apply in due
stock
Stock
Light
& Power Co.
smaller
for listing
course
the
on
New
York
Exchange.
The
Houston
bal¬
Hampshires hav¬
Houston
other
and
cities,
Galveston
towns,
as
serves
and
148
villages
well
as
sive
rural
in
area
and
exten¬
an
Texas.
Its
franchise dates from 1882 and for
the year
important, and must be
be
in many
overcome
before the sale
cases
There
experienced salesmen who actually
are
use
"big name"
securities to open an account.
They select a nationally known stock
that is listed on the Stock Exchange, and although they can make no
income
after
dend
and
after
to
$5.05
stock
ten
par
per
?
the
a
has
per
share
-t
than the Public Service Company
first
sale
the
effort
is
charged to the cost of
fact that people
like to talk about things with which they
Confidence is inspired when well-known securities
are
acquainted.
are
recommended.
It's the
situation from
same
a
selling standpoint
when your haberdasher tells you it's an Arrow
collar, or a Stetson
Your new prospect, who has just recently made your acquaint¬
as
hat.
has the
ance,
reaction if you recommend
same
household by-word.
A salesman's job
is to do business.
a
security that is
Any legitimate procedure
that will help him to gain this
objective should have the support of
organization and his salesmanager.
Whenever a salesman can
offer a "big name" security*to his clientele
(providing, of course,
that such a security is suitable for recommendation) then we believe
so.
These companies have spent millions of dollars in
advertising to build
up
their
with
names
CASH IN ON THIS GOOD WILL?
IN THIS
TEED
1
the
•,
,
public—WHY
likewise
was
cata¬
This
which
would
dow"
in
announcement
an
appears
offering of these
as
a
Bonds
the win¬
parlance of
the
"go
the
out
matter
of
for sale
record
or
as
a
The offer is made
CONNECTION WE SUGGEST THAT THE GUARAN¬
STOCKS
OF
OUR
MAJOR
RAILROADS
ONE OF THE BEST OPPORTUNITIES
TODAY
by
Chicago
a
'
NEW ISSUE
WISHES TO SELL PRESTIGE-BUILDING SECURITIES THAT WE
KNOW OF.
In addition, THESE STOCKS ARE TRADED OVER
COUNTER.
tinuous
dividend
Look
at
them—notice
payments,
their
their
long records of
outlook today, their
bright
in
Middle
the
indicated
was
the
in
that
the READING, etc., etc." This is material for
:
sales campaign IF YOU
a
BESIDES, THE RAILS ARE IN FAVOR NOW, WITH BOTH IN¬
VESTORS AS WELL AS SPECULATORS.
Here is
a
combination of "Big Name" securities,
favorable market
RECEPTIVE
attractive yields,
position, and in addition, THE PUBLIC IS IN A
MOOD
TOWARD
RAILROAD
A sales campaign based upon the
that you believe to be attractive
SECURITIES
only
and
solicitation
is
under
circumstances
no
of-urn offer to
buy
that
any
to
of
be
siich
construed
Bonds.
as
>
only by the Prospectus.
of
$38,000,000
None-the-Iess, it
area.
the
bulk
expectation
that
a
*
sizeable part of the loan would
wind
up
York
Public Service
investors.
hands of New
in the
Company of Indiana, Inc.
Totalling $7,500,000, the sale of
the debentures with
First
15-year ma¬
a
the
provide
would
turity,
com¬
pany with funds for liquidation
of certain notes, aggregating about
and
$5,384,700,
with
money
Dated
for
Mortgage Bonds, Series E, 314%, due May 1,1973
Due
May 1, 1943
May 1, 1973
carrying increased receivables and
to reduce current liabilities.
"Photo-Finish"
A
When it comes to serials and in¬
termediates,
such
PRICE
railroad
as
102%% AND ACCRUED
INTEREST
equipment trust obligations, bank¬
ers are
thinking pretty much in
the
price terms these days.
quite clearly illus¬
again early in the week
same
This
was
trated
Copies of the Prospectus
when the New York Central mar¬
keted
issue
an
of
$5,300,000
as
of
may
may
be obtained in any State
from
only
such
dealers
participating
in
this
issue
legally offer these Bonds under the securities laws of such State.
certificates.
bid for the is¬
sue,
all of them specifying a
coupon rate of 2%.
A differ¬
ential of only nine cents on a
one-to-ten year
Three
$100
of
groups
Harriman Ripley & Co.
Kuhn, Loeb & Co.
piece separated the bids
winning group and its
the
Incorporated
nearest competitor.
'
The
successful
bidders
paid
a
of 99.279 while the runner
bid 99.27, with the third bid
fixing a price of 99.1399.
price
Blyth & Co., Inc.
The First Boston Corporation
Mellon Securities Corporation
up
Drexel & Co.
Older Issues Cleaning Up
things returned to more
less normal in the investment
Goldman, Sachs & Co.
Kidder, Peabody & Co.
With
or
market now that the Treasury has
temporarily
satisfied
its
war
heeds, reports indicate that buy¬
ers are showing more interest in
issues
that
have
been
shelves for a while.
Some
resting
*
preceded the Treasury's under-
Spencer Trask & Co.
A. G. Becker & Co.
Incorporated
Dominick & Dominick
on
of the flotations which
Eastman, Dillon & Co.
New
York, May 13, 1943.
W. E. Hutton & Co.
NOW!
offering of a GUARANTEED RAIL
today SHOULD BRING RESULTS.
\
find takers
still
WANT TO OFFER SECURITIES THAT PEOPLE KNOW ABOUT—
it
the
offering would
was
West,
con¬
reasonable prices in comparison with many other railroad securities—
THEN REMEMBER THAT YOU CAN SAY TO YOUR PROSPECT:
"Here is a dividend that is guaranteed by the New York Central, or
house, and with the issuer well
known
OFFER
TO THE SALESMAN WHO
Street.
Sponsored
NOT
.
,
the public of¬
fering of John Morell & Company
logued among dealers as an issue
a
his
past
common
ably..
annum.
the
on
common
For
Houston
divi¬
$2,526,490,
share
no
outstanding.
years
Fed¬
profits
excess
was
per
500,000 shares of
for
preferred
requirements,
equal
1942 net
provision
taxes, including
taxes,
It is
this
of Indiana project,
debentures
can
made.
THE
ended Dec. 31,
paid dividends of $3.60
;
offerings are not representative of well-known com¬
Although the fact that a security of a well-known company
is certainly nothing in itself to recommend an
investment, from the
standpoint of the sales psychology behind such an objection, it is
panies.
he should do
company
ing been whittled down consider¬
considerably
or
Share Co.
Houston Lighting
the
be
to
affiliate
an
&
the
Light¬
cease
Power
Co.
of
sale of these shares Houston
eral
ance
Another Fast Operation
the
Securities
tion that their
on
nancing.
of
Name"
new account.
&
a
interest,
and
a
"Big
One of the difficulties encountered by salesmen
specializing in
over-the-counter securities is that they are often met with the objec¬
commission
Power
communities
those
marks
Accounts—Use
opening the
National
collateral trust notes.
ries "E," is the.first sizeable new
completed
offering
New
GUARANTEED RAILS LOOK LIKE ONE ANSWER!
of
of
as
present
The Securities Salesman's Corner
Open
further step toward the dissolution
will
both
as
holders of National's $6 preferred
The sale of these shares, priced
taking proved
stock of Hous¬
common
Lighting & Power Co. owned
by National which were unex¬
changed under the offer to the
■
of
outstanding
The
Power
of
the
to
redemption, at 106^4 and inter¬
■
Lighting & Power Co.,
most important oper¬
the
ating units in the Electric Bond &
Share System and formerly 100%
controlled subsidiary of National
be applied toward
to
are
formerly
owned by National Power & Light
Co.
These shares represent the
ton
is¬
accruing
stock
common
rest of the
of
one
Co.
The public
a
& Power
of Houston
REPORT
■
mortgage
$54,' will complete the distri¬
bution to the public of the entire
500,000 shares of Houston Lighting
Public
offering- > of
242,664
shares of the no par common stock
•
first
at
1771
L. F. Rothschild & Co.
NOTICES
DIVIDEND
Gersten Heads New York State Bankers
Scotland
According
war.
to
upon
Mr. Mar¬
research findings.
of the State Bankers Association,
Charing Cross, S. W. I
have
Burlington Gardens, W. I
declared
W. I
standing
1943,
record
of
TOTAL ASSETS
the out¬
on
in
Committee
Associated Banks:
bank.
1817)
(ESTABLISHED
£8,780,000
Capital
Paid-Up
Reserve
6,150,000
8,780,000
Fund
Reserve
Liability of Prop.
'''/v'V i£J:
Sept.,
General
E.
Niebank
the
prosecu-
to
conserve
and
war
<
in the banks which are
engaged in selling gov¬
actively
Secretary-Treasurer.
agriculture,
and
industry
handling the counting and clear¬
Inc.
Spencer iuUogjj &
Manager
A
of
dividend
quarterly
$0.40 per share
declared
1943,
to Stockholders of record
May 22, 1943.
on
ing of ration coupons, and other¬
effort, in the
ha-
payable. June
stock,
the
been
wise aiding the war
10,
face
of the close
as
business
the oldest
JAMES
L.
of
growing
trained
WICKSTEAD,
With over
ir
Guinea
offers the most complete
of
shortages
personnel.
Treasurer
largest bank in Australasia.
and
branches
870
States of Australia,
all
in
New
and
London,
and
efficient
Offer Common Stock
Zealand, Fiji, Papua and New
■
r>:
Dividend No.
International Minerals
Berkeley Square, W. 1
arrangements with Banks
throughout the U. S. A.
the close of business
purchase warrants for purchase of
May 28, 1943.
I
John P. Myers
Robert
Theodore Rokahr
A.
& Chemical
Minerals
NATIONAL BANK
entitle
ISewmont Mining
of EGYPT
1
Cairo
FUND
ical
1943, a dividend of 37^ cents
declared on the capital stock of
Newrnont Mining Corporation, payable June
IS, 1943 to stockholders of record at the close
of business May 28, 1943.
On May 12,
.
£3,000,000
....
£3,000,000
CAPITAL
PAID
FULLY
share
Street, E.
William
all
Branches
i
principal
.
in
Towns
preparation and sale of
mixed fertilizers. In
1936 the company widened the
scope of its business by partici¬
pating in the development of a
potash mining enterprise which
was
merged with the company
complete
EGYPT
New
Dividend
A
SUDAN
the
and
The New York Central Railroad Co.
in
of
York,
May
(50j)
Cents
Fifty
12,
per
1943.
share
the
capital stock of this Company has been
payable July 15,
1943, at the Office
of the Treasurer,
466 Lexington Avenue, New
York, to stockholders of record at the close of
business June 11, 1943.
R. P. AHRENS, Treasurer.
on
organization
and
rock
C.
the
Corp., since its
1909, has been engaged in the
mining and sale of phosphate
AGENCY
LONDON
King
7
;
in
was
H. E. DODGE, Treasurer.
and
to
a like number of comshares at $8,125 per share at
International Minerals & Chem¬
Dividend No. 59
per
RESERVE
holders
time until Feb. 1, 1947.
any
Corporation
Cairo
Register No.
The
Corp.
the
purchase
mon
Commercial
International
of
stock
common
Barnet
warrants
Office
'
garten & Co. are offering today,
at $10 per warrant, 150,000 stock
H. E. DODGE, Treasurer,
Head
;
Hornblower & Weeks and Hail-
dividend of Twenty-five
declared on the capital
stock of Magma Copper Company, payable
June 15, 1943, to • stockholders of record at
Agency
:
83
On May 12, 1943, a
Cents per share was
E. C. "
Threadneedle Street,
47
Magma Gopper Company
these
•
.
OFFICES:
LONDON
29
in
interested
•
Purchase Warrants of
lnvestori
to
service
banking
travellers
and
traders
it
countries.
v
'
ernment securities, financing war
of
6
Trust
manpower
.
time
SYDNEY
the
of
tion
in
needed
facilities
Joseph A. Broderick
Burnham Guild
£23,710,000
of New South Wales Is
The Bank
C. George
£150,939,354
George Street,
Office:
and
1929.
ly postponed in order to prevent
encroachment upon transportation
share on the common stock, without
value, of this Company has been de¬
payable June 30, 1943, to stock¬
holders of record at the close of business
Juno 10, 1943. Transfer books will not be
closed. Checks will be mailed.
;■
W. E. HAWKINSON,
clared,
30th
DAVIDSON, K.B.E.,
ALFRED
SIR
Head
'
■
Assets
1941
Aggregate
*
The State Bankers Association's
par
May 6,1943.
re-
1
annual convention was indefinite¬
per
NEW SOUTH WALES
he
time
Bank
Co. in January,
($0.25)
cents
twenty-five
of
dividend
A
the
at
National
Public
MFG. CO.
COMMON DIVIDEND NO. 76
BANK OF
ap¬
was
at
assume
ALMS-CHALMERS
!
the end of 1928 to
the
presidency
of the
signed
Glyn Mills & Co.
Australia and New Zealand
Gersten
Mr.
held
he
tion
Ltd,
Bank,
Deacon's
Williams
worked
practically every department of
the
Chairman, Finance
National
and
pointed Assistant Cashier in 1919,
Second
Vice-President
in ; 1924,
Vice-President, 1926, which posi¬
HUTCHINSON
B. E.
1910 with the
i
banking
started
Commerce
of
Bank
his
He
in
career
May 20, 1943.
£98,263,226
''
educated in New York public
schools,
of business
close
the
at
share
stock, payable
to
stockholders
common
14,
June
per
*
native of New York' City and
Is
dividend of seventy-
a
($.75)
five cents
a
was
of Chrysler Corporation
The directors
64 New Bond Street,
ON
DIVIDEND
COMMON STOCK
Smitbfield, E. C. I
8 West
49
PRODUCTS
MAKING WAR
NOW
Bisbopsgale, E. C. 2
3
t,
the
page)
Secretary,
OFFICES:
LONDON
year—Theodore
one
Co., Utica.
the Association's shall said:
For State Vice-President of the
"It is the belief
of our state
efforts
that
would
Trust Division of the ABA for
normally have gone into planning banking leaders that the average
term of one year—Andrew Wil¬
and
staging a convention have bank will receive more benefit
been
devoted
to
research into from this type of activity than son, Jr., President, County Trust
wartime banking
problems and from any amount of oratory, golf¬ Co., White Plains.
Mr, Gerstcn, the new President
the publication of reports based ing and other features tradition-
of
from first
Harold Marshall,
OFFICE—Edinburgh
throughout
of
term
yy
tion
Incorporated by Royal Charter 1727
Branches
for
Division of the ABA
Bank
State
Group
Rokahr,
Vice-President
and
Treasurer, First Bank and Trust
(Continued
Royal Bank of Scotland
HEAD
Thursday, May 13, 1943
THE COMMERCIAL & FINANCIAL CHRONICLE
;
1772
or
<
1942.
in
declared
Recent
NATIONAL BANK
Andrew Wilson,
of INDIA, LIMITED
Bankers
Head
the
to
and
Office:
quarterly dividend
shore on $5 Dividend
the
cents
a
a
share
dividend of
on
Common
Stock have been declared, pay¬
26, Bishopsgate,
able June 30,
in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
1943, to respective
Branches
Paid-Up
Reserve
The
Bank
Capital
Capital
£2,000,000
Fund
and
Trusteeships
Philadelphia, Pa.
ment.
of
every
and
Executorships
Mn Loeb
Group Offers
Public Service of
An Arsenal In Wartime;
Industry In Peace
Indiana Bonds
A
The Railroad Equipment
indus¬
try is an arsenal in wartime and a
great industry in peace, and its
securities offer interesting possi¬
bilities according to a study of the
industry and the Railroad Equip¬
ment Series
of New York Stocks,
Inc., being distributed by Hugh W.
Long & Company, Inc., 15 Ex¬
change Place, Jersey City, N. J.
Copies of this interesting study
may be had from Hugh W. Long
& Co. upon request.
•
large banking group headed
by Kuhn, Loeb & Co., New York,
is
today offering for public sub¬
scription
an
issue
Public
Service
diana,
Inc.
of
$38,000,000
of
Company
ZVi%
series
E
In¬
first
mortgage bonds, due May 1, 1973
and
priced at
interest.
the
102%
and accrued
interest
Preliminary
in
offering indicated that the is¬
would
sue
be
quickly
absorbed.
Proceeds of the financing will be
Cytryn Now A Partner
In E. F.
Edward
applied by
Waterbury Co.
been
ad¬
partnership
with
Ed¬
mitted
to
ward F.
Waterbury in E. F. "Water-
the
company
toward
redemption of an equivalent
the
has
Cytryn
amount of 4% series A first mort¬
gage
bonds which have a matur¬
date
of
Sept.
1,
1969.
Re7
bury & Co., 60 Broad Street, New
ity
York City.
demption price of latter is 106.25.
this
ballot,
also
conducted
through the mail, was the unani¬
mous election of a group of nom¬
of
banking's wartime inees which included the follow¬
include financing the war ing:
Two members of the executive
effort through bank purchases and
sales to customers of Government committee of the A.B.A. for term
i
has
the
potassium chlorate plantV
Park, near Cincin¬
new
just
Columbia
at
The potassium salts for
nati.
this t
plant will come from the com¬
pany's mining operation in New
Mexico
and,
when
equipment
again becomes available, plants
for
producing
other potassium
chemicals are contemplated on the
Columbia Park site.
jobs
also undertaken
Great
of
"Some
£2,200,000
description
exchange business
conducts
banking
April 27, 1943
paralyzing
almost
of
face
shortages of manpower and equip¬
I. W. MORRIS, Treasurer
£4,000,000
com¬
duction
THE UNITED GAS IMPR0VEMENTC0.
JO
the
discloses that pro¬
commenced at
which
ment,
Marshall
Harold J.
Babcock
ally associated with a trade con¬ officers, the member banks during
vention.
Hence our efforts have the week of May 3 balloted for of¬
been directed along lines which ficers to represent the New York
State
banks
in
the
American
we believe will help bankers per¬
The result
form wartime duties effectively in Bankers Association.
of $1.25 a
Preferred Stock and
in
Uganda
London, E. C.
Subscribed
Perrin L.
Jr.
holders of record May 28, 1943.
Government
Colony
Kenya
The current
in
progress
pany's diversification program is
revealed by the registration state¬
securities,
providing * credit for of three years—Perrin L. Babcock,
agriculture
and
war
industry, Vice President, Onondaga County
handling, auditing and clearing Savings Bank, Syracuse, and John
President, Plattsburg
ration coupons, and at the same P. Myers,
Bank
and
Trust
Co.,
time servicing an unprecedented National
Plattsburg.
volume of new deposits created by
For member and alternate for
the geared-up economy of the na¬
nominating committee of ABA for
tion at war."
Research
the
projects carried on by
Association during the past
twelve
months
include
power
survey
which
a
indicated
that the banks have replaced
men
man¬
6,000
lost to the armed forces with
officers
women
studies
thrift
of
war
account
public
term
ing
year
A.
Robert
National
ABA for term of
banks by
committees.
electing regular
duction
of
Bank
Division
of
epsom
of
pro-
salt and silica
a plant in Augusta, Ga,
Effective Nov. 30, 1942, the com¬
gel .at
acquired
pany
Amino
as a
going business
Co., one of two
producers
in
this
Products
commercial
country of a vegetable protein de¬
rivative in demand by makers of
liquid and dehydrated soups and
the Army
for one of its
rations as an ingredient to en¬
hance taste.
Another recent ad¬
by
is
tle
products
defluorinated phosphate cat¬
a
feed
raw
material,
material
tions.
its
the
to
the
the
essential
which
for
phosphate
Due
situation,
For State Vice-President of
government
to
the
relations, Bank, New York City.
stabilization
addition
—
of the potassium
follows by about a
commencement
from
agencies,
and the examination of
In
one
economic
credit
directors'
of
opening
month
dition to the company's
_
Barnet, President, Irving Savings
banking service charges, compet¬
financing,
City.
For State Vice-President of
interest Savings Division of the ABA for
financing,
industry
and
publicity
York
employees,
and
computation methods, agricultural
credit,
year—member: H. C.
Brown, President, First National
Bank, Glens Falls, and alternate:
Joseph A. Broderick, President,
East
River Savings
Bank, New
terms of one
The
chlorate plant
comes
rock
opera-
food
5
shortage
company
states
it for fertilizer
the
that demand upon
the
currently is in excess of its pro¬
duction.
B.
one
year—Henry
Kingman, Vice-President, Mer¬
chants National Bank, Dunkirk.
For State Vice-President of the
The
company
will not receive
of the proceeds from the sale
of
the stock purchase warrants
which are already outstanding.
any
!
Volume
157
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4176
tinued to be drained of goods. Our
United States.
commodity prices
Says Keynes And Morgenthau Plans
can
into
W
of
are in essence the
Each would create a great
three
i need
billion
1920-21.
post-war
Had
following
everybody
when
boom
violent crisis
our
taken
we
•./'' / licking
from
dollars
We went
rose.
the
was
our
Armistice,
braced for
much it, we should have had no such
Government.
sums properly used would
severe shock as we went
through
lave
solved
the
central
banks
or
treasuries
of
problem, had in late 1920 and the first eight
stabilization funds of the various *;hey been conditioned on drastic months of 1921.
This boom and
nternal financial reforms.
Two crisis were due precisely to what
governments of the world.
The
lundred million
resources
of
the
the
international
dollars, loaned
Keynes-Morgenthau
plans
to
bank
would
be
in
both
cases
Germany in 1924, after the propose to repeat, the artificial
drawn primarily from the treas¬ mark had fallen to a trillion to support
of
foreign
exchanges
uries
or
stabilization
funds
or
one, accompanied by drastic in¬ without the correction of the fun¬
national
4
same,
,;:V
violent
our
1919-20, and
of
(Continued from page 1755)
plans
bank
deal
to
inter-1 our
the
with
smaller
•
and
central banks of the countries fi¬
ternal
nancially
oreign supervision, set Germany
on the
upward path again under
strong
(which means
the United States), and
chiefly
these
would be
resources
supporting the
used in
currencies
of the
he
reforms
a
measure
of
loans,
drastic
eign exchange markets./
plans
national
Brain
think
the
for
of
plan
for
The
contains
some
United
the
super-
which
and
world
do.
to
a
up
Trust
the
governments
what
is to
tell
to
the world
Morgenthau
safeguards
States
not
con¬
1927.
the
But
reforms and for¬
when
we
gave
,
,
(
Keynes
which
fund/
the
the
would
that
bank could
international
tell
the Congress
of the United States
what to do and that the Congress
would be obliged to do it.
With
respect to this provision, there is
veto
no
the part of the United
on
shortlived
reaction
into
a
strong boom by
ernment's
them
continued
an
continued
on
a
sterling should have fallen
along
with
drachmae.
francs
and
explanation
The
lire
was
,
and
that England interposed her great
credit and financial prestige be¬
losses
"What
of
minds
the
are
of
authors
into
of
which
of
Lord
Keynes's hidden
Europe
great scale.
We
export surplus of 410 mil¬
great asset of multilateral clear¬
ings,
Great
able
whereby
(fcr
example)
Britain could offset favor¬
balances
exports
vorable
to
arising out of her
Europe against unfa¬
balances
due
to
the
extend
1919-20,
if
create
and
in
she
full
sterling
could
long
of
her
obligations
she
as
took
debtor to
net
for
international
•;
*
"The
thau
.
attitude
and
'
;
of
to
the
discreditable
,,,
creditor,
good
this burden unloaded
Both
from
rose
$7.18 to $9.76,
of
the
American
plan.
<
the
plans are British plans
my opinion.
Both grow out
of
long
trends
in
Keynesian
This
ts
under
no
circumstances
of
Zj_/
to
be construed
offer to buy,
an
any
National Bond & Share
Net assets
tailed
March
on
$8,254,864,
$22.93
/
.
••.
■■
■
with
toward
net
a
a
very
By what right
share
per
asset
$18.06
value
Dec.
on
share
per
of
31,
on
>.
here
sent
which
they
for
have
safety
and
right to
By what right can
demand back?
every
England refuse to honor the ster¬
ling balances of the Scandinavian
banks which have trusted
her, or
withhold the gold of the National
Bank
of
Norway which
to
have
when
the
come
Germans
to
is
exchange
worse
f
evils.
invaded
that
By what right can Eng¬
land hope after the war to con¬
tinue
to freeze funds owned
by
the Dominions in the
sterling bloc
or by India?
;
"If England cannot pay,
let her
say so frankly, beg the indulgence
of her creditors, and do the best
thetic
She will find
financial
world
a
$11.93
$2,983,906
This
was
share
per
Dec. 31,
•?*!".'5,
if?
v-'-.-v.v
t
$10.17
sympa¬
which be¬
sets
on
}♦
ing of the financial
different
the
112,000, and net asset value
share
on
was
$12.73
as
world
so
that all
All
strong.
the
of
of them appear
good, bac
and hopeless, look the foreign ex¬
change market level in the eye
Bad money becomes as good as
good money, and, if the process
is
continued, good money be¬
comes
as
Dec. 31, 1942, and $10.29 a year
ago.
Wellington Fund, Inc.—Net
sets
on
March
$8,967,414,
per
share
as a
"Similar
in
1921.
vivid
as
per
a year
earlier.
solicitation
*.* •'••• «.v- y.-'V• v/ .'/,,r;A.h.v-.v;;
share
we
memory
of
a
in
1921
futile
application
of
Keynes-Morgenthau
idea.
seen
based
on
exchange
a
great
the
a
and
GOLDMAN, SACHS & CO.
on
CO., INC.
KIDDER, PEABODY & CO.
Incorporated
We
post-war boom
the
HARRIMAN RIPLEY & CO.
the
LEHMAN BROTHERS
pegging of foreign
and
BLYTH &
made
were
had
harmful
had
LAZARD FRERES & CO.
MELLON SECURITIES CORPORATION
STONE & WEBSTER AND BLODGET
Incorporated
artificia
support of foreign exchange, anc
we
had
1920-21
that
seen
the
great
crisis
of
UNION SECURITIES CORPORATION
following the collapse of
needless
"Following
Government
MERRILL
LYNCH, PIERCE, FENNER & BEANE
post-war boom.
the
Armistice
loaned
our
our
Euro¬
Allies nearly three billion
dollars, which was used in peg¬
GLORE, FORGAN % CO.
pean
ging and
supporting the foreign
exchange rates.
"Europe needed help. It needed
loans from outside, but it did not
May 12, 1943.
LEE MIGGINSON CORPORATION
share
$5,352,723,
bad money.
proposals
But
SMITH, BARNEY & CO.
as¬
1943, totalled
$15.74
with
compared
$11.97
or
31,
moneys,
bad
per
against $10.99
Copies of the Prospectus may be obtained from only such of the undersigned as may
legally offer this Stock in compliance with the securities laws of the respective States.
o"
resources
countries
as¬
March 31, 1943 totaled $7,-
grow worse.
"The Keynes and Morgenthau
plans propose in substance a pool-
with
share
1942.
Common Stock
Price $54
per
per
George Putnam Fund—Net
instability of
weak currency in the foreign ex¬
changes is merely a symptom of
an
underlying financial disease
and to peg the foreign exchange
rate without correcting the funda¬
mentals is merely to mask the
symptom and to let the disease
March
compared
net asset value of
on
on
equivalent to
Obviously, for¬
stabilization is
But
31,
sup¬
England
county?
can.
31, 1943.
ental currencies.
eign
and
March
New England Fund—Net assets
amounted to
HOUSTON LIGHTING & POWER COMPANY
desirable thing if we can get it in
a
sound
way
without creating
$20.19
1942,
1942.
as
c.'.'.iJ.••'/•..':/••..
to
This compares
242,664 Shares
•
Corp.—I
equivalent
share.
per
an
Offering of this Stock for sale, or as an offer to buy, or
of such Stock, the offer is made only by means of the Prospectus.
;
i
:•••
ap-j
31, 1943, to-
thinking and in British monetary
policy.
"The avowed purpose, as dis¬
tinguished from the hidden pur¬
poses
of
the
plans,
is
the
stabilization of the foreign ex¬
change rates at the end of the
war so that exports to Continen¬
tal Europe may not be hampered
by the weakness of the Contin¬
or
proximately 36%.
the
in
;■
Investment Trusts
Keynes plan, though I am not sure
that they are understood by the
authors
them."
we
have
she
on
(Continued from page 1760)
Morgen¬
refuse to give back to the
outside world the gold which they
can
few other
a
financially strong countries find'
.
plans
one.
to
deteri¬
balances' is
war
us
international
great
financial mechanism, under which
the
fund. / But
the
Keynes
'abnormal
and
let
dollar
pains
should have been net
US.
But
have
States.
Then she would
have had her profits clear of risk
so
a
aid.
the United States and
poured the francs and the life and
the
drachmae
as
constituting
liquidation
financial
international
an
posed
,
I think, out of his
recollection of this episode.
Sec¬
tion 14 of the Keynes plan says,
'This
would
give everyone the
purposes
the
these transactions.
purposes grows,
to
lion dollars in
■
on
"One
Gov¬
January, 1919.
In
June, 1919, we had an export sur¬
of this
of 625 million dollars of
elaborate super-national machin¬ plus
nearly 600
million was
ery?
Why did we never have it which
before?
I may say that there are with Europe.
Our markets con¬
hidden purposes in the proposals,
purposes
clear
enough
in the
States.
fund
boom
been
and it would not have been
turned
our
the
had
we
which
loans
there
remain
that
Our exports to
Europe.
had
was
rangements had been in existence
orating
was
England was balancing her
budget and straightening out her
finances, and it was anomalous
Finance Ministers continued
"A
would, indeed, have been
nice for England if the pro¬
posed Keynes or Morgenthau ar¬
rest.''
without
followed the Armistice
"It
very
during
which will make
concessions,
not
other terms?'
any
lieves in her long-run future and
on
United
„
Government ceased
.
mean
period
that sterling went down with the
the
pean
4 *.
lief and reconstruction
further, but the striking thing
strings, after
Armistice, and they used it
for
supporting the foreign ex¬
changes, the • Continental Euro¬
money
our
to drift, refrained from taxing, re¬
tween us and the Continent.
She
plan, in¬
frained from balancing their bud¬
was
buying here in great quan¬
cluding a veto on certain points,
gets, borrowed banknotes from
but the Morgenthau plan makes
tities, giving us her sterling and
their
central
banks,
refrained dollar obligations and
it the obligation of member coun¬
reselling on
from
controlling
their
money the Continent for
tries 'to adopt appropriate legis¬
francs, lire and
markets and took the easy way.
drachmae.
lation or decrees to carry out its
She, too, had a great
The three billions did no lasting
boom, and for a time great paper
undertakings to the fund and to
good.
profits.
She had ultimately great
facilitate
the
activities
of
the
in
tained
4,
set
internal
"When
How, indeed,
any country hope to start up
trade with Europe during the re¬
making loans, at the end of June,
1919,
the
exchanges weakened
eign supervision, straightened out
Hungary in 1925 and Poland in
"Both
1
•
Very
much
accompanied by
weak and debtor countries in for¬
'
damentals.;
Plan.
Dawes
smaller
1773
SPENCER TRASK & CO.
or
Thursday, May 13, 1943
FINANCIAL CHRONICLE
THE COMMERCIAL &
1774
Total indebtedness of the
ments.
Municipal News & Notes
Treasury's Plan For
Discusses
Stabilization Of World Currencies
(Continued from page 1756)
system
which had so dismally failed in
days to come?
The very word the narrower confines of national
Times must indeed have
stabilization has a static conno¬ affairs.
tation ill-attuned to our times, and changed if "nothing succeeds like
they propose to achieve stabiliza¬
tion of currencies in the dynamic
it
certainly less pretentious
convincing to offer us
were
but
more
international' field
the
failure."
And
,
so
.
...
a
'
:
it is high time
Net funded debt of the City
that we
W. Baird Jr., City
Philadelphia, stated
a
luncheon address
Adgar
1927,
of
Treasurer
in
recently
of Phila¬
Club
Bond
the
before
.
of
Philadelphia has been reduced
more than $95,000,000 during the
past 10 years and is today smaller
than it has been at any time since
There will be further
reductions during 1944-45-46 by
sounder principles.
Be it remem¬ an amount in excess of $30,000,000,
bered that the true function of
he said.
called
and. returned
halt
a
to
delphia.
achieve com¬
parative stability. In this connec¬
tion the British plan is the less
ambitious and the more elastic. government is to coin and regu¬
The debt reduction to date was
not
manage,
money;
for accomplished largely during a
It is no
cut and dry proposal; late,
management,
as
distinct from period of great financial hardships
rather it is a sort of trial balloon,
regulation, is a continuous process and without forced refunding or
a challenge for the production of
which no money system can with¬
extension of the city's obligations,
something better which it will
stand.
he declared.
certainly evoke.
By comparison
The sooner we put hard money
our own plan is marked by com¬
"From the figures I have just
back into the hands of all peoples,
cited you can appreciate the
pleteness and finality.
But both
the better will be our chances for
are
managed currency plans and
fact that Philadelphia has put
a
plan designed to
,
the
in
dangerous
such
as
treme.
ex¬
essentials,
its
to
down
Boiled
plan is an invita¬
tion to all who would participate
in it to aid and abet us in the
American
the
stability,
monetary
ounce
'■
of gold
thus
This
of
side
either
is
weighs
still
ver
is
an
of sil¬
480 grains on
frontier, and
to regulation.
any
amenable
not
because
or an ounce
true
of paper
or
al¬
financial
its
Treasurer
current operat¬
City
"Our
stated.
good
in
house
the
order,"
ing position is excellent and as
time goes
on
our
under
should,
balance sheet
normal
con¬
ditions, continue to steadily im¬
perpetuation of a great blunder loys, whose values are subject to
and to make of that blunder the fluctuations once they cross the
prove."
boundary lines because they mere¬
The city's cash balance stood on
very
cornerstone of the future
ly represent the credit of the is¬
international monetary structure.
April 30 at about $34,000,000—a
suer
and, therefore, must always
It would create the "Unitas" as
greater sum of money than the
Moreover, whereas
exchange me* be managed.
hard money is in itself actual pay¬
it would tie the "Unitas"
to gold at $35 per ounce and, by ment, paper merely postpones ul¬
timate payment. But hard money
asking
other
nations
to
link
their own currency units to the must be economically priced to
be freely acceptable and to fur¬
"Unitas," it would invite them to
barter real values in the form of nish to regulation the indispen¬
sable
limitations
of production.
goods and services for extrinsic
values in the form of gold on an For if it takes $12 to $15 to pro¬
duce an ounce of gold, it doesn't
arbitrary price -basis of our own
make sense to ask people to bar¬
fixing. They could not do other¬
international
the
dium;
the
of "Unitas" suggested in
wise in their attempt to create
reserves
ter for
ices.
$35 in goods and serv¬
Nor will the community
it
willingly labor for the sole ben¬
efit of the owners and producers
the plan.
city has
posit,
even
before had on de¬
out.
pointed
Baird
Mr.
this
show
"Our
revenues
every
indication of being greater
year
treated
gold
as
commodity
a
to
be
exploited for profit, exported
fancy price, but much too
expensive for home consumption.
That is the position of gold to¬
day, and America is "holding the
bag."
In this awkward business,
at
a
America has
There
is
as
unmined
and
there
is
a
silent partner.
much
in
buried
Africa
refined
and
so
it
the
as
in
looks
contrary,
stabilization
gold buried
South
And
as
though
our
the
of
very
fact that
currencies
is be¬
ing widely discussed is good rea¬
son for hope.
An additional cause
for
optimism is the recent refusal
Congress to extend the Ad¬
reserves,
of which Britain and ministration's power to raise still
America are the trustees as well
further the price 'of gold.
That
as
the owners, call to them for
in the light of past experience the
some
action which
will rescue
request should have been made
gold from sterility.
Some action at all passes all comprehension
which, price-wise, will place these and readily points to the inspir¬
reserves within the reach of those
ation of the Treasury's proposal
nations who, alone by their co¬
for currency stabilization.
It is
operation, can restore to gold its that Midas-like concept, the de¬
former utility.
Are Britain and lusion that
magic resides in dead
America ready to make that sac¬
metal, which we must at all cost
rifice?
Will they willingly con¬
dispel for the sake of progress.
tribute to peace a fraction of what
Else we bar access to one of the
they are compelled to spend for four precious freedoms we have
Fort Knox.
war?
The world's two great
Time
will
tell.
In
the
meantime, the American Treas¬
ury's plan points in the wrong
direction.
We have been
living in
an
era
characterized by a growing mania
for
currency
management and,
like opium, currency management
is
habit-forming.
Peculiar
of
opiates is that their dosage must
ever
be
increased.
This
seems
equally true of managed currency;
else how explain the attempt to
widen its scope by extending to
by
complete the year 1943 with a net
1942
;f;
surplus."
Legislature have approved bills
authorizing the creation of the
State Bridge Finance Corporation
and empowering it to refund the
the
of
two
latter
agencies.
Sponsors of the measures expect
that the existing 4% indebtedness
can be refunded through the new
at about Vh%,
agency
Chicago Area Debtors Cut
1942 Debts By $24,500,000
sold
in
the
to
1927.
It
known
make
early
not customary at
underwriters
for
time
that
public at 98 V2
was
their
to
commission,
President
the
but
says
that
shown
any
understanding of the
fact that a borrower,
so
to
fortunate
have
daddy"
an
$67,152,000
supply his
to
needs for
factors
mination
of
enter into the deter¬
the
price
the
bor¬
One is the gen¬
eral level of interest rates ruling
rower
at the
must pay.
time; the other is the status
of the borrower in the market.
If such mundane considerations
held
any
interest for the Presi¬
dent, a little inquiry would have
revealed that at the time these
bonds were offered in this mar¬
san-!
district receded to $102,-..
from $110,688,000.
All of the six units had lower
995,000
net
ago.
bopded debt totals than a year
iThe Chicago Park District
total
its
lowered
by
than
more
$72,480,000
from
$78,551,000.
Smaller reductions
were
reported by Cook County,
the board of education, and the
$6,000,000
Forest
to
District.
Preserve
debt
Floating
taxing
the
of
units, which includes such items
r,
'
unpaid bills, salaries and
judgments, declined $5,283,000,
aggregating
$20,605,000
and
as
indebtedness by
approximately $24,549,000 in the
their
aggregate
ended
months
12
March
31,
ac¬
$25,888,000 on
The city cut
its floating debt almost in half
comparing
their
with
March
to a recent analysis of
quarterly financial state-
cording
1942.
of
original offering
have the credulity
school boy can
record
vious to us that if
it
ob¬
seems
there was any
in
this
case,
the
American
people,
not Bolivia,
were the victims.
Bolivia at least
exploitation
figure
few years interest on
the bonds and a
back.
part
of
their
$8,228,040
and
however,
trouble the President a
three
other
units
reported in¬
with the totals of the park
district and the county each rising
creases,
than $1,000,000.
more
The
of
hand,
the
the
was
that
six
had
■
one
smaller
amount of tax anticipation war¬
rants outstanding than last year.
The
district's
park
clined
to
de¬
The
of the
in statement
shown
was
total
$7,874,000 from $8,largest increase
605,000.
county, whose total advanced to
to
$10,370,000 from $6,580,000.
Municipalities have the
of obtaining higher,
tors.
ler,
pros¬
pect
over,
has, more¬
for a good while past been
actively engaged in the same
of
type
exploitation.
at
estate tax
revenues
for the time being, in
the opinion of Edwin H. Spengleast
$250,000,000 or more. These
figures, of course, do not take into
account
the vast quantities
of
goods for which in some instances
we have no earthly use, the same
Administration
has
bought
or
agreed to buy from Latin Amer¬
ica.
Doubtless the rates of inter¬
of
the
real
department
of
eco¬
sion
the
of
effect of the
war
on
property tax collections in a book
published by the Tax Institute of
Philadelphia.
■'
"Should
the
be
war
a
long
one,
the added Federal income
and
excise
taxes,
bond
sales,
and rising costs of living might
various Latin
some
stabilized,
or
nomics of Brooklyn College.
He
made this statement in a discus¬
American coun¬
tries.
In addition stabilization
loan
accommodations
to
Latin
Americancountries amounted to
to
■%,
Says Long War Will
Require Local Economy
dollars, but there has
been no suggestion that any of
them be applied to the mountain¬
ous debt owed to American inves¬
of
The Administration
/
great deal
—despite all that he and his asso¬
ciates have said about protecting
investors.
Latin America is now
long
*
the
on
only
a
v
•
.
district,
park
other
•
good
appear
reductions in
floating debt structures. The
their
That phase of the matter
not,
; •
*
governmental
able to report
other loans to Latin Amer¬
ica
throughout this "interesting
era"
of
which
the
President
does
*•
and
bills
Forest; Preserve Dis¬
the Sanitary District,
trict
many
speaks.
V\'-. A"
the
included
unpaid
in
Two other of the
units,
principal
The same is true of a
Last year's
$15,450,000
of
payrolls.
the face value of
trifling
payrolls, and the bal-'
by judgments.
ance
got 92 cents of each dollar of the
face value of the bonds; the lend¬
a
the
were
to accept.
got
Floating debt
municipality amounted
bills and
He is apparently aware
these bonds have been
in total default for a dozen years,
but would have us believe that
the reason is found in the cost of
the
loan — an
explanation no
95%.
that all
this
in the ag¬
decline
the
$7,974,000, of which $3,093,-"
479 was represented by unpaid
at
ers
make
to
the date of their
From
31,
gregate possible.
On June 15, 1942
reasons which do not ordinarily
—no later figures have been per¬
enter into a business transaction,
mitted to reach the public, so far
must pay the price fixed by the
as we are aware—the Export-Im¬
market, but this failure of un¬
port Bank had outstanding some
derstanding does not alter the
$575,000,000 in loan commitments
fact in the slightest.
Ordinarily
two
and
ago,
year
a
itary
>
major governmental
units in the Chicago area reduced
unless he is
(or unfortunate) as
addled-pated "gold
to
bonded indebtedness of the
■
six
The
*
$293,567,000
March 31 from $321,269,000
declined
year
earlier, a reduction of
1 $27,702,000. Redemptions by the
City of Chicago and the San-,
£ itary District of Chicago fig-,
ured
prominently in this de¬
cline.
The
city
cut its net
bonded debt to $58,755,000 from
approximately $4,365,500 of out¬
standing bonds of the Alabama
Bridge Corporation and the Ala¬
bama
Bridge
Authority.
The
legislation provides for dissolu¬
tion
an¬
,
the Alabama
branches of
tax
a
Approves Bridge Refunding
Both
1943
of
sale
the
Net bonded debt of the six
on
Legislature
some
ticipation warrants.
units
Alabama
$407,837,000,
was
flected
(Continued from page 1755)
be
Treasury had made a false start.
But of that we needn't despair; on
of
$31,000,000 higher than the March
31 figure, but this increase re¬
creasing costs of materials and
the
probable demand for new
services, all indications point to
the fact that
Philadelphia will
to
priced well below the haps close enough according to
New Deal standards.
cost of its production; for, unlike
Neither the President nor his
silver's, gold's commercial utility
New Deal
associates have ever
is very limited.
soon
our
estimated
as
Bolivia's Good Neighbor
the
borrower
received
92%
of the
/■". Needless to say that this they
of gold.
They rightfully demand
will never accept; for the yellow
face amount of the obligation, in
equality of treatment for all pro¬
metal hasn't the same fascination
which case the "spread" was 6V2
ducers, with special shelter and
for them as it seems to have for
points.
subsidy to none.
.the
How the President found an 8%
author^ of our Treasury's
In justification of the $35 per
commission
in
this
plan. They know that gold's val¬
deal,
the
ounce
price for gold some point
ue
is purely extrinsic, and that
reader; must determine for him¬
to the premium over that price
self. "Tt is beyond us.
He may
unless, by common consent, it is
now
being paid in certain mar¬
endowed with a utility which it
have
obtained
something
ap¬
kets.
But they ignore the purely
doesn't
otherwise
possess,
the
artificial scarcity of the metal, proaching an 8% rate by apply¬
yellow metal degenerates to the
now
surrounded by restrictions ing the coupon rate of 7% to the
position of a doubtful luxury—
92% of the face value of the loan,
of every kind.
They also over¬
and so they do without it.
which he says is all that the bor¬
look the fact that this premium
rower
received, and adding the
When in 1934 we raised the
is being paid with paper money
price of gold by some 70%, we which the buyers of gold distrust. amount required annually during
acted
independently.
We con¬ Instead of a shortage there is a the life of the bond to amortize
the discount.
Even such proce¬
sulted no one.
The absurdity of
superabundance of gold, as evi¬
our act was such as to render it
denced by the figures of recent dure, which would certainly be
somewhat unusual in such a case,
difficult for any nation, however
production.
But the metal is
willing, permanently to return to sterilized as rapidly as it is pro¬ and would morover have included
a gold basis.
Even the chief gold duced—hence its seeming scarcity. the cost of the .commission of
producing countries continued the Were gold, like silver, to be de¬ which the President complains,
regime of managed currency, as monetized, it would flood the would leave the rate a substan¬
witness
South
Africa,
Canada, markets like a tidal wave and tial fraction below 8%—but per¬
Australia, Mexico and Peru. They
781,000,
which compared with
$463,330,000 a year earlier.
Total indebtedness at the close
budgetary requirements
in December, 1942.
Even considering the, steadily in¬
than
31 was $438,-
six units on March
in
result
on
the
force
such
taxpayers'
local
drastic
a
heavy
purses
governments
policy
drain
as
into
to
a
of retrenchment
*
because of lack of revenue," Mr.
Spehgler wrote,
f
Major Sales
Scheduled
The
calendar
awards of
of
$500,000
pending bond
is cur¬
or more
discount
est charged on the loans recently rently restricted to the $2,700,000
proclaimed by forcing worship of rate was 4%; that the official made are lower than 8%, but this State of Minnesota rural credit
call money rate was 4%; the very
the Golden Calf.
For unless we
lower rate merely serves to en¬ deficiency fund certificates of in¬
grade
corporation
bonds
endow gold with real utility by best
large the degree of exploitation debtedness, for which bids will be
were yielding upwards of 4.25%
monetizing it wisely, we shall be
of
the
American people,
who received until June 2. The issue
market
prices;
many
high
left with a large yellow pile, still at
would need a large measure of matures semi-annually from July
grade corporate bonds were yield¬
heavy, still ductile, but quite use¬
naivete to expect very substan¬
1, 1951 to Jan. 1, 1953. At the
less.
Devoid of monetary stabil¬ ing very nearly 5%; that the Bo¬ tial
previous sale of similar obliga¬
repayments.
\
livian 8s of 1947, which had been
ity, trade will languish, unem¬
tions the successful bidder was a
Will the President of Bolivia,
ployment will spread, and the outstanding four or five years,
or
of some of the^ other Latin syndicate headed by the Wellsroad will be paved over which had sold within the year as low
American-nations, in the 1950's Dickey Co. of Minneapolis, and
future oppressors will march all as 96V2] and that the Bolivian 7s
the second high offer was made
have the grace to apologize for
of 1958 (to which the President
over again.
by the National City Bank of New
their exploitation of the Ameri¬
But if we act wisely, recent was presumably referring) sold in
York and associates.
can people during the 1940's?
the open market one year from
history will not repeat itself.
ket the Federal Reserve
Volume
157
Number 4176
THE COMMERCIAL & FINANCIAL CHRONICLE
1775
Calendar of New Security Flotations;
OFFERINGS
HOUSTON
LIGHTING
i
Lighting & Power
Houston
statement
a
with
shares
of
or
value.
par
and
&
POWER
the
common
has filed
Co.
SEC
CO.
for
242,664
stock, without nominal
The stock
is
already issued
outstanding.
Address—900
Fannin
St.,
Houston, Tex.
public utility.
Business—Operating
Offering—Price to the public to be sup¬
plied by amendment.
J
Underwriting—The shares to be offered
Chicago; The First Boston Corp.; Lehman
Brothers; Smith, Barney & Co.; Hallgarten
& Co.; Ladenburg, Thalmann &
Co.; Merrill
Lynch, Pierce, Fenner & Beane, New York;
Central
Republic Co.; Harris, Hall &
Lee Higginson Corp., Chicago;
Inc.;
Wisconsin Co.,
Co.,
New
York.
Co.,
The
Milwaukee, and Kuhn, Loeb
..M
:v" //'/''v
.
Offering—Price to
the public
nished by amendment. ;
Proceeds—Net
proceeds
to be fur¬
will
be
used
$275,000,
and
Kuhn,
$900,000.
York,
Offered
&
Co.
12,
May
and
Loeb
&
owned
are
by National Power & Light Co,
which
was
filed
by
Houston
says that latter has been advised by Na¬
Statement
tional
that
chase
the
made.
v
firm
no
commitment
securities
:v.V;
to
pur¬
has.
registered
been
'
Proceeds—Proceeds from sales will go
to
The proposed
sale is part of the program of National to
liquidate in compliance with an order of
National Power & Light Co.
the
Securities
As
of
part
note, due 1944, in the
$2,500,000, and to prepay
serially to 1948,
in the face amount of $2,850,000,
requiring
of
its
its
Exchange
Commission.
National-pro¬
program
common
holdings
$6
own
shares
of
PUBLIC
SERVICE
Public
filed
Service
CO.
Co.
OF
of
registration
a
000,000
Indiana,
first
Address—110
North
bonds,
preferred,
Houston
common
v
of
two
share
one
total
amount
was
500,000
shares
257,336
exchange
registered
The
offered
the
to
Dec.
offer.
holdings after
exchange offer.
were
31,
balance
balances,
(3-30-43).
of
Na¬
of
April 16, 1943, to defer
-■
Bids—National Power &
Light Co. on
April 28, 1943, asked for bids to be opened
May 10, 1943, on 242,664 shares of com¬
Co.
of
to
reduce
and
the
Houston
Lighting
&
Power
The
issue was awarded to a syndicate
by Smith, Barney & Co. (the only
bid submitted) at $51.85 a share.
;
Registration
statement
effective
5:30
purchase,
tion
Illinois
Street,
(4-28-43).
In
fixed
issue
''iyf
amendment
an
dated
the
to
May
given
have
follows:
as
with
agreed
the
to
will
&
amounts
purchase
A. G. Becker &
and
be
to
bidding
Commission.
be
supplied
ment.
and
by
under
are
Co., Inc.,
Chicago,
$1,500,000; First Boston Corp.,
New
York,
$750,000;
Lehman
Brothers,
New York, $750,000; Smith,
Barney & Co.,
New
York,
$750,000;
Hallgarten
&
Co.,
New York, $500,000; Ladenburg, Thalmann
& Co.,
demption,
of
to
the
sale
(EWT)
p.
public
amend¬
amendment.
days
toward
after
the
the
re¬
issu¬
of
(4-7-43).
headed
on April 18, 1943.
May 12, 1943, at $54 a share by
& Co. and 68 investment
nerits
Awarded
ciate,
28,
effective 3
p.
bid of
ion statements will in normal
throughout the country.
INTERNATIONAL
MINERALS
-f!?
&
'
International Minerals & Chemical Corp.
has filed
861
registration statement for 184,-
a
stock
purchase
shares of
r
184,861
value $5
par
share.
r.
and
warrants
stock,
common
;/.
v
Address—20
North
per
Wacker
Drive,
Business—Engaged, directly or through
subsidiaries, in the mining and sale of
phosphate rock and preparation and sale
of complete or mixed fertilizers.
Underwriters—Hornblower
Hallgarten
&
Co.
underwriters
Act
of
Weeks
total
prices
at
of
are
to
stock
150,000
to
offered
be
be
chase
warrants
be
pur¬
the
to
fixed
supplied
All
of
chase
the
offered
are
by
the
post-effective
present
the
terms
stock
company
pur¬
were
•originally acquired by the First York Corp.
.Hornblower
Co.
&
Weeks
and
Hallgarten &
purchased 25,000 of the stock purchase
warrants
from
First
FUNDS,
Corp, and have
right to purchase additional warrants.
Proceeds—The company will not receive
any of the proceeds of the stock purchase
'warrants
being offered, but will receive
.$8,125 per share for each share of com¬
mon
stock, if any, sold through exercise
"of stock
purchase warrants.
Any
pro¬
received
added
to
for
2,500
registra¬
a
certificates
Indentures)-of
of
Trust
B.
Congress St.,
Boston, Mass.
trust.
Offering
Aggregate
offering
price is
given as $3,000,000. Proposed public offer¬
ing is on
tive.
—
date
registration
V)
:
Proceeds—For
becomes
V ;
..
.
Goldblatt
tration
the
of
plan.
BROS.,
statement
Savings
for
9,000
of Goldblatt Bros., Inc.,
filed
regis¬
a
memberships
Sharing Plan
and 150,000 shares
150,000
./
(4-9-43).
;
-
capital stock of Goldblatt Bros.,
value $8 per share.
common
Inc.,
y
net
proceeds
anteed
the
of
cumulative
public
debentures
preferred
which, with
company
pursuant to
the
$35,000,000
at
—
and
a
sale,
and
account
own
of
the
stock
shares
decorative
phalt
in
the
for
or
par
Address—333
Offered May 13 by Hornblower & Weeks,
and Hallgarten & Co., at $10 per warrant.
of
such
acquired
.
(4-29-43).
PROPERTIES, INC.
Properties, Inc., has filed a
statement
for
$3,100,000
sinking fund 4% %
bonds
due
Mercantile
registration
secured
May
1,
are
1963*\
to
F.
Laird,
W.
Woolworth
Co.
Principal
—
Bissell
&
underwriters
Meeds
and
Spencer
Co., both of New York City.
Offering—Price to the
public will be
supplied by amendment.
Trask
products, as¬
chipboards
and
box-
and
and
its
line
of
State
com¬
Inc.,
&
—
York.
Proceeds—Net proceeds will be
used, to¬
gether with any necessary funds from its
treasury, to redeem all of its presents out¬
Offering —Price to the
supplied by amendment.
standing secured sinking
funds of the
company.
bonds
in
the
face
fund
amount
of
5 %%
S-l
gold
$3,031,000.
Indies
We
below
present
standing. ;V'L"..-:' ''V'.'v"•
mined
v.
twenty
Armour
&
7%
Co.
of
Delaware
statement
for
cumulative
April
1,
has
Business—Is
the
securities
sidiaries
holding
a
,
of
engaged
duction of
'-r'W, '
raw
company
several
owning
operating
$35,000,000
income
35-
debentures,
1978.
Offering
supplied
that
Price
—
by
will
to
the
amendment.
395,178
and
Stock
South
Yards,
livestock
America
and
the
-
for
the
slaugther
processing of meats
of
and
dates
or
list
a
of
statements
move
have
been
not
to
MORRELL
John
Morrell
tration
will
CO.
Co.
for
be
-
have
&
statement
debentures,
rate
&
filed
$7,500,000
a
regis¬
15-year
The interest
supplied by amendment.
due May 1,
Address—Ottumwa,
1958.
Iowa.
Business—Engaged in
provision business.
the
meat
of
retail
packing
and
Underwriting—A. G. Becker & Co., Inc.,
subsidiaries
general
public
will
Statement
will
Turpose—The
savings
mon,
be
The
offered
remaining
within
a
without
Worth,
says
shares
price
but not before July 17,
the consent of the under¬
preferred
per
395,178 shares. The 395,178
offered initially are shares
outstanding, of which 325,000
held
by
trustees
under
the
will
of
Percy
A.
its
of
face
the
sale
of
in
a
a
wide
number
and
9,000
estimated
berships which have
be offered
to
during
number
been
and
of
and
for
one
$10.
share
Distribution
which
of
of
additional
plant
S-2
j
(3-5-43).
(This list is incomplete
this week)
International Minerals 0$ Chemical
Corporation
Representing the right
Stock,
at
to purchase 150,000 shares
later than February 1, 1947,
$8,125 per share.
not
it that much
Price $10 per warrant
more!
Copies of the Prospectus may be obtained from such of the undersigned as
legally offer these securities in this State under applicable securities laws.
SCHENLEY
may
ROYAL RESERVE
HORNBLOWER & WEEKS
May 13, 1943.
60% grain neutral spirits. Blended whiskey, 86 proof. Schenley Distillers Corporation, N. Y. C.
and
Registration Statement No. 2-5105. Form
150,000 Stock Purchase Warrants
of Common
facilities,
equipment
may
I'll enjoy
to
working capital.
offering is made only by the Prospectus,
Scarce? Sure, but
is
by direct sales by the corporation
stock.
mem¬
employees of Goldblatt Bros.,
12 months following the
common,
,
This advertisement is not, and is under no circumstances to be construed
as, an offering of these securities for sale,
or as a solicitation
of an offer to buy any of such securities. The
the
Fort
brick.
treasury
installation
in
shares
as
is
Proceeds—Expansion
the
City Company of
dissolution;
53,691
by the National City Bank of New
York,
and
16,487
by
Avery Rockefeller
and the National
City Bank of New York
Inc.,
unit
Underwriting—None.
of
are
Street,
Texas.
be made
and
com¬
Offering—Present
offering
consists
of
2,000 units,
each
unit
consists
of
four
75,000
reasonable
being
York,
Fisher
Business—Manufacture
writers of the
shares
has filed a regis¬
10,000 shares of 7%
15,000 shares of
;
par.
no
shares
New
CORPORATION
Address—2500-22
the 470,178 shares regis¬
publicly offered as soon as
memberships in the
profit sharing plan represent
maximum
Inc.,
is
merchandise
deter*
Corporation
statement for
preferred stock and
be
thereafter,
1943,
Burtonite
tration
Chi¬
stores.
filed
whose
ne.
111.
,
Business—Principal business of company
the
*
Street,
Usuea
were
but
ago,
unknown
are
BURTONITE
of
be
effective.
issued
Street
and Racine
Ave.,
Chicago, 111.
Business—Engaged'
in
meat
packing
business, operating packing plants in North
Union
or
sub¬
principally in the pro¬
sugar and invert and
cane
black strap molasses in the Dominican Re¬
public and Cuba.
time
a
general
be
Address—60 East 42nd St., N. Y. City.
;
comes
filed
days
offering
practicable after registration statement be¬
DELEWARE
OF
will
the
OF OFFERINQ
UNDETERMINED
rt
SUGAR CORPORATION
Sugar Corporation has filed
whose registration
shares
CO
added
DATES
MONDAY, MAY 24
West
be
Registration Statement No. 2-5137. Form
S-l (5-6-43).
"
(4-29-43).
WEST INDIES
public
to
,
Proceeds—Will
Registration Statement No. 2-5135. Form
tered
TUESDAY, MAY 18
containers,
Principal
underwriters
are
Lehman Brothers,
New York;
A. C,
Allyn & Co., Inc., Chicago; Bacon, Whip¬
ple & Co., Chicago; Bear, Stearns &
Co.,
New York; A. G. Becker &
Co., Inc., Chi¬
cago;
Dominick & Dominick, New
York;
Graham, Parsons & Co., Phila.; Granbery,
Marache & Lord, New
York; Hallgaften &
Co., New York; Hemphill, Noyes &
Co.,
New York;
Hornblower &
Weeks,
New
York; Ladenburg, Thalmann & Co., New
York;
Laurence
M.
Marks
&
Co.,
New
York; Merrill Lynch,
Pierce, Fenner &
Beane, New York; Paine, Webber, Jackson
& Curtis, Boston; L. F.
Rothschild & Co.,
New York;
Schoellkopf, Hutton & Pomeroy,
Inc., Buffalo; Shields & Co., New
York;
I. M. Simon &
Co., St. Louis; Stroud &
Co., Inc., Phila.; Swiss American Corpora¬
tion, New York, and Wertheim &
Co., New
preferred
■'
its
others,
insulation ' board
solid
Underwriting
Registration Statement No. 2-5134. Form
A-2
for
asbestos-cement
corrugated
set-up and folding boxes, etc.
exchange offer, will retire
amount
par
either
account of
and
cago,
JOHN
South
of
shares
Goldblatt Bros.,
(4-28-43).
&
sale
the
asphalt
emulsions,
boards,
the
of
various
roofing and siding products, structural and
taken
not
stock.
rules
rules of the plan.
Registration Statement No. 2-5133. Form
*
8-1
the
shares
of
Address—43rd
has
Profit
and
The
stock of
with
the
A-2
due
INC.
Inc.,
registration state¬
becoming eligible for
registered,
are
registration
Bros.,
the
accordance
represent, the maxi¬
which, it is anticipated
may be purchased by the plan for its mem¬
bers during said period in accordance with
year
MONDAY, MAY 17
of
their
in
capital
which
ARMOUR
(4-27-43).
GOLDBLATT
the
mon
effec¬
Registration Statement No. 2-5131. Form
C-l
of
v.:;'v
investment.
date
upon
membership
mum
sponsor.
Registration Statement No. 2-5124. Form
the
and
has filed
Inc.,
Business—Investment
in
will
A
ment,
Underwriting—Trust Funds, Inc., is named
be
by the company
working capital.
effective
INC.
Fund,
Address—30
the
ceeds
Funds,
statement
Plans
York
the
registration statement for 470,178 shares
common stock, par value $1
per share.
The shares are
already issued and out¬
Commonwealth
will
Address—30 Rockefeller Plaza, N. Y.
City.
of
SUNDAY, MAY 16
tion
to
COMPANY
statement
Business
Either
directly, or through
subsidiaries, is engaged in the manufacture
the
upon
underwritten
a
TRUST
amendment.
outstanding
of
-warrants
effective, that
ng.
be
by amend¬
If the balance of 34,862 stock pur¬
ment.
become
course
as
per rule 930(b).
Offerings will rarely be made before the day follow-
and
to
Securities
the
taken
been
selling stockholders.
Company has filed a registra¬
for $3,000,000
15-year 3%
debentures due May 15, 1958.
in
exchange
pursuant
to
the
exchange
offer, with any other funds in the treas¬
ury which may be necessary, to the re¬
demption of a par amount of 7% guar¬
P.M. Eastern War Time
1933.
warrants
public
in
These issues
ago.
which the registra-
on
filing except in the case of the securforeign public authorities which normally
become effective in seven days.
These dates, unless otherwise
specified, are as of 4:30
Trust
Offering—A
chase
&
deemed
be
may
defined
as
offered
Underwriting
state-
twenty days after
Chic,
be
have
by amendment.
the
Flintkote
tion
101.0969.
ties of certain
CHEMICAL CORP.
debentures not
reason¬
TUESDAY, MAY 25
require more
debentures, to
by the com¬
of
a
(5-5-43).
FLINTKOTE
of
debentures
offer
will
share
Address—60 Wall Street, New York
City.
May 13 by tsmhn Loeb & Co. and
Business—Owns two commercial build¬
associates at 102%% and interest.
ings in New York City, each of which is
days
be. supplied
Proceeds—To
the
if the total
preferred stock de¬
would
within
face
subject,
of
issue
the
each
sell
after
the
for
$100
Offered
filed less than twenty
were
Will
A-2
to be fixed by amendment.
) ;
Proceeds—Company intends to apply the
m.
1943.
May 10, 1943, to a syndicate
Kuhn, Loeb & Co. and asso¬
by
on
grouped according to the dates
ire
s
■
and
rented
Barney
houses
exchange
for
exchange
entire
of
The
pany.
held,
shares
of
to
proposes
the initial offering.
Underwriting — Harriman Ripley & Co.,
Inc., head the underwriters.
Other names
of
stock
share,
per
shares
It
time
Registration Statement No. 2-5136. Form
MERCANTILE
statement
May
on
list of issues whose registration
a
stock
the
$100
basis
debentures
shares
preferred
,
Any additional moneys will be paid out of
funds in the company's
treasury.
Registration Statement No. 2-5123. Form
Registration
able
,
other
A-2
In
addition,
the
National
Cty Bank of New York holds 75,000 shares
which
hold¬
price
Indiana, first mortgage bonds, series A,
000; Central Republic Co., Inc., Chicago,
$400,000; Harris, Hall & Co.* Inc., Chicago,
$400,000; Lee Higginson Corp., Chicago,
$275,000;" Wisconsin Company, Milwaukee,
of 5:30
as
preferred
underwriters
due Sept. 1, 1969, at 106)4% of the
face amount which will require
$40,375,000,
exclusive of accrued interest and expenses.
(EWT)
Following is
of
for
U-50
various
the
to
523,581
such
the
on
posited
4%,
New York, $500,000; Merrill Lynch,
Pierce, Fenner & Beane, New York, $500,-
(EWT)
m,
Offered
Smith,
April 26, 1943,
on
amount
of
exchange
allotment
headed
p. m.
to
debentures
sale
series E bonds, of $3i,000,000 face amount of Public Service Co.
of
value
par
right
sale
,
of
applied
40
the
outstanding
of
underwriting will be sup¬
be
within
and
guaranteed cumulative
than
post-effective
post-effective
Proceeds—To
ance
7%
its
number
•
for
Rule
-
amounts
by
t:v" ■:.v
offered
Price
.
plied
proposed
$7,500,000 of 15-year debentures
at 3%, and the offering price to the
pub¬
lic at 99 plus accrued interest from
May
1, 1943, to date of delivery.
:
?
underwriters
gas,
Underwriters—Names
of
they
and
^
the
Morrell
its
on
energy
distribution
supply,
of
>■
John
rate
the
electric
Offering—Bonds
competitive
its; registration
11,
interest
principally
manufacture,
supply, distribu¬
and
offers
of
of
of
at
V
i:',
;"
Registration Statement No. 2-5132. Form
A-2
sale
liab¬
current
pay
in
Offering—Company
In¬
utility operating in the
transmission,
and
cur¬
for
E,
ers.
water.
larger "bank
necessity
borrowings, and to
ilities.\
The
vy-V, <'•
Amendment filed
stock
inventories
rent
which
termination
the
■.effective date.
mon
$5,384,750.
and
ac¬
Registration Statement No. 2-5117. Form
A-2
prepayments,
sum of
of
and
ter¬
being
1942,
stock
The
the
represents
tional's
the
such
,
of .which
of
for
common
National
in
for
interest, the
cheese
and
Rockefeller.
to
Ind.
Business—Public
by the company to carry additional receiv¬
ables
Co.
for
common
basis
on
dianapolis,
$38,-
series
butter
products.
Underwriting—Kuhn, Loeb & Co., New
York, head the underwriting group. Others
be supplied by amendment.
has
Inc.,
for
State of Indiana and is engaged
in the production, generation,
The remainder of net proceeds will be used
statement
of
cepted
aggregate
exclusive of
through the exchange
of
shares,
the
maturing
facture
INDIANA, INC,
statement
mortgage
3Vi»%, due May 1, 1973.
of
notes,
Houston
of
preferred
Houston
mination
2%
in
posed to divest itself of its entire holdings
of* Houston
1%%
amount
the
animal products and for
by-products.
In
conjunction with their meat packing oper¬
ations, company and subsidiaries manu¬
other
to
.
and
this
the
prepay
face
New
Becker
associates at 99 and interest.
.
,
Co.,
1943, by A. G.
HALLGARTEN & CO,
THE COMMERCIAL &
1776
Thursday, May 13, 1943
FINANCIAL CHRONICLE
Fort Pitt
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
Firm Trading
..
Penn Central Airlines
Markets
Bendix Home
PERUVIAN BONDS
Preferred
Appliances, Inc.
Erie Railroad
Majestic Radio & Television Corp.
All Issues
Two
common
C1ARL MARKS & CO- INC.
a
Warrants
Houston
stocks with post-war prospects,
selling between $3 and $4.
SPECIALISTS
M.S. WIEN&CO.
Trading markets and information on request
Dealers Ass'n
Members N. Y. Security
HAnover 2-8780
St., N.Y.
25 Broad
New York City
1
Ltg. & Power
Common
FOREIGN SECURITIES
50 Broad Street
Bridge Works
Common & 6s of 50
.
Teletype
Y.
n.
1-1397
Kobbe, Gearhart & Company
INCORPORATED
Members
"B" "C"
Warren Brothers "A"
;; 45
Circular
REOTOB
Request
on
philadelphia
Bell
telephone
new
Enterprise c015
2-3000
/
YORK
NEW
STREET,
Virginia-Pittsburgh
West
York Security Dealers Association
NASSAU
telephone
»
New
Coal Co.
Teletype
1-576
york
Income 6s, 1947
1st Mtge.
Bought, Sold & Quoted
Members
New
York
New
York
Curb
Exchange
'
Cotton Exchange
Chicago Board of Trade
-
D. A. Schulte,
Exchanges
Other Principal
and
115 BROADWAY
CHICAGO
(Listed
TELETYPE NY 1-672
7-0100
BARCLAY
Cumulative Convertible Preferred
October
not a candidate for re-^
a
the
Governor since 1928,
Vice-Chairman of the Board
since 1924, a
and
since May, 1941.
Board of
the
of
Members
Nine
three
of
term
years—
Walker &
Co., St. Louis, Mo.; Edgar Scott,
Montgomery, Scott & Co., Phila¬
delphia, Pa. ■;''••••
Exchange:
the
the
H. Prenatt Green, G. H.
of the
of
officers
newly-elected
public, of whom not less than
is a member of the Exchange:
For
; /<
Following are the names
other
one
Gratuity
the
of
Members
Two
Governors
Fund
Exchange
Four members of the
the
For
of three
term
years—
princi¬ Clinton S. Lutkins, R. W. Presspal places of business within the prich & Co.; William D. Scholle,
metropolitan area of the City of Scholle Brothers.
residing and having their
New York:
of
term
the
For
Robert
year-
one
&
the
Ernest
Co.;
Wilcox
Haffner,
B.
•William
&
Mallory,
Jones,
L.
P. LarMcDermott & Co.
Three allied members of non-
Hollister & Co.; Sylvester
kin, at Peter P.
,
and
residing
members
their
having
principal places of business
the metropolitan area of
within
City' of New York, who are
the
general or limited partners in
member firms engaged in a busi¬
ness
involving direct contact
the public:,
For the term
M.
Percy
&
with
V- t'";vv*''' '■ -J;■
two years—
of
Kuhn,
Stewart,
Loeb
Co.
.
the term of three years—
For
the
For
of three years—
term
Barney &
Maxwell, Tucker,
change^. Fv Edward Bosson, Put¬
nam
&
Co.,
Hartford,
Conn.;
Herbert F. Boynton, F. S. Moseley
& Co.
,
and having their
principal places of business out¬
side of the metropolitan area of
the City of New York, who are
general
or
officers
these
in
reported
limited
partners
in
of
issue
our
April 15, page 1381.
Issues
Report On Active
Foreign Securities
J
-
requests for
market
develop¬
in
,
foreign securities or in¬
foreign
curities, giving closing rates at
1, 1943. The firm analyzed
some 1,500 foreign issues in the
Preferred
New Class "B" and
Bought
——
Sold
—
"C"
Quoted
HAY, FALES & CO.
Members New York
71 Broadway
Stock Exchange
N.Y, BOwling Green 9-7027
Bell Teletype
NY 1-61
interest.
as
being of lesser
Copies of this interest¬
ing report may be had from
Marks & Co. upon request.
Carl
Situations of Interest
Rector
Tele. NY 1-2660
4'/2/41
S. H. dUNGER Co.
Developments In
New
40
Lackawanna Leased Lines
John Morrell & Go. Geb.
Products, Inc. offer
St
Co.
upon
request.
;
York
Teletype N. Y. 1-1779
Quotations" being dis¬
B. W. Pizzini St Co.,
an
.underwriting
group
which 55 Broadway, New York City,
made public offering May 12 of discusses recent developments in
a
$7,500,000 new issue of John "Lackawanna" leased line securi¬
Morrell & Co. 15-year 3% deben¬ ties
particularly affecting stock¬
Comparative Analysis of Lead¬
tures priced at 99%.
This marks holders in suggestions presented
ing Oil Companies—E. W. Axe
the first public financing for the for
adjusting the back income tax
& Co., Inc.r-Tarrytown Press, P.
100-year-old
Ottumwa
(Iowa) debts of the companies.
Copies
O. Box 157, Tarrytown, N. Y.—
meat-packing firm, which was of "Railroad Securities Quota¬
paper—35c—free to public librar¬
established in England in 1827
tions," which contains guaranteed
ies and non-profit institutions.
and which first extended opera¬ stock
quotations,
underlying
tions to the United States in 1865.
mortgage railroad bond
quota¬
American
As
He
Is,
The—
The founder and his descendants
tions, reorganization railroad bond
Nicholas Murray Butler—Charles
have been in continuous charge of
quotations, minority stock quota¬
management.
In 1929 a block of tions, and guaranteed telegraph Scribner's Sons, New York, N. Y.
—paper.
•
common
stock was publicly of¬
quotations, may be had upon re¬
fered on behalf of certain stock¬
quest frbm B. W. Pizzini & Co.
Five
Commercial
Types
of
A. G. Becker &
Co., Inc., headed
Securities
The Business
tributed by
MaiPs Bookshelf
holders.
addition to A. G. Becker
In
&
Co., Inc., other members rof the
underwriting group are:
Kuhn,
Loeb
& Co.; The First Boston
Synthetic Rubber, The—A State¬
ment
of "the over-all synthetic
Clothing Stock Looks Good
interesting descriptive cir¬
Fashion Park, Inc., which
An
cular
United States Rubber
Synthetic Rubber Di¬
vision, 1230 Sixth Avenue, New
York, N.,Y.—paper—free.
*
layman
on
the firm believes offers attractive
Lehman Brothers; Smith,
Barney & Co.; Hallgarten St Co.; possibilities, has been prepared
Ladenburg,
Thalmann
& Co.; for distribution by Blauner, Si¬
Merrill Lynch, Pierce, Fenner & mons & Co., 25 Broad Street, New
York City, members of the New
Beane; Central Republic Co.', Inc.;
York Stock Exchange.
Copies of
Harris, Hall & Co., Inc.; Lee Higthis circular may be had from
ginson Corp.,.. and The Wisconsin
Blauner, Simons & Co. upon re¬
^
Of the
proceeds of the new is¬
$5,384,750 will be used to re¬
deem two note issues and the re¬
mainder will be used by the com¬
quest.
'
ather corporate purposes.
tive
of
the
of
Directors
hydrators
outstanding debt
company other than the
Regulations
and
Economic Department, Bank for
International Settlements, Basle,
' Switzerland — paper — 9 Swiss
francs."
yy„'"..'V
t ■,
Foreign
for
Graham Adams Advances
to carry additional receiv¬
ables
and
inventories and for
above, the only
—
Company,
Exchange
Great Britain—Monetary
•,
sue
Following redemptions described
situation prepared for the
rubber
lected
the
National
Association
Graham Adams
De-
have
as
se¬
Execu¬
Secretary and General Man¬
Foreign
for
the
.
.
Exchange
Protectorate
and Moravia
Regulations
of
Bohemia
(in German)—Mone¬
tary and Economic Department of
the Bank for International Settle¬
of the Association. Mr. Adams
ments, Basle, Switzerland—paper
organized the Washington, D. C. —2 Swiss francs.
office at 815 Bowen Building and
ager
,
face has been serving in the capacity
Liberty-—Equality—Fraternity,
amount of 2% notes maturing se¬ of assistant to the President since
Essays
and
Addresses
on
the
rially to 1950 and $2,000,000 face February 1 of this year.
Problems of Today and Tomorrow
amount of 1%% notes, maturing
Nicholas
Murray
Butler —
serially from 1945 to 1948. There
Florida Bond Quotations
Charles
Scribner's
Sons,
New
are
in addition 389,700 outstand¬
Clyde C. Pierce Corporation, York, N. Y.—cloth $2.50.
ing shares of no-par capital stock.
Building,
Jacksonville,
The sinking fund provisions call Barnett
Looking Forward Through The
for retirement of $500,000 each on Fla., has prepared an interesting
of Research — Charles F.
circular containing quotations and Eyes
May 1, 1949 and 1950, and for
new
issue will be $2,400,000
—
i
May 1 of
information
on
Florida Municipal
revised classification
clusive.
The debentures may be and rating of the bonds. Copies of
redeemed at the option of the this* circular may be had upon re¬
company as a whoJe.or4n part on quest from Clyde C. Pierce Corpo¬
the
years
1951 to 1957, both in¬ bonds, and
a
attractive possibilities, according
to Reynolds & Co., -120 Broadway,
ration.
New York City, members of the 30 days' notice at the following
New York Stock Exchange.
In-i schedule: To and including May
May 1, 1951, at 101%; thereafter,
teresting basic reports upon these 1, 1945, at 103%; thereafter, to
to and including May l, 1954, at
companies may be had from Rey- [ and including'- May 1, 1948, at
nolds
Exchange PL, New
rhone DIgby 4-4832
current issue of "Railroad
The
Valley
Utica & Mohawk
York
2-2Q20
$800,000 redemptions on
Federal Machine & Welder Co.
and Purolator
Lionel Corp.
for Dealers
Broadway, New
Becker & Go. Offers
: -
„
Old Common &
Tel.
City, have issued their first peri¬
odical report on active foreign se¬
fourths of these
R. Hoe & Co. Pfds.
$1.91
.11
$6.54
.35
pany
preparation of this quotation list,
and
eliminated' 'about
three-
WARREN BROS.
120
field, and for quotation lists on
"Foreigns," Carl Marks & Co.,
Inc., 50 Broad Street, New York
May
Pfd.
Jan. 31, 1943
Markets and Situations
In answer to many
on
1-1043
Bliss 5% & 6%
3 mos. ended
Corp.;
,
teresting situations in the
allied mem¬
non-members of the Ex¬
change residing
of
Nomination
was
ments
or
M.
Rhoades & Co.; James G.
Purcell, Nugent & Ig'oe; David W.
Smyth, Filor, Bullard & Smyth.
Two allied members of the Ex¬
Loeb,
Co.; John C.
Anthony & Co.
bers or
year—
one
Koshland,: Carl
A.
Stephen
comments
members
of
term
Three members of the Exchange:
Irving D. Fish, Smith,
Two
Nominating
Committee
Co.
For
ton
Five Members of the
Boylan, at E. F. Hut-
P.
NY
HILL, THOMPSON & CO., INC.
in a busi¬
involving direct contact with
ness
Exchange
member of the Stock
City
Green 9-4970
preferred.
than $50 per share of
member firms engaged
Coleman has been
Mr.
election.
to more
Common, per share
Coleman & Co. was elected
for a one-year term.
In
addition to the election of a new Chairman, the Exchange members
elected the regular slate chosen by its Nominating Committee.
Mr. Coleman succeeds Robert L. Stott of Wagner, Stott & Co.,
was
1942 equal
Preferred, per share
Chairman
who
31,
Oct. 31, 1942
May 10, John A. Coleman of Adler,
of the Board of Governors
on
BOwling
Teletype
Bell
12 mos. ended
York Stock Exchange, held
annual election of the New
Telephone:
EARNINGS
Exchange
Of Governors of Hew York Slock
and Common
preferred has $8.75 dividend accumulations and is presently
convertible into 25 shares of common.
Net quick assets as of
LColeman Elected Chairman Of Board
At the
Co., Inc
York
The
.
John
Request
New
Broadway,
Exchange)
Curb
York
New
on
D. F. Bernheimer &
Inc.
42
105 WEST ADAMS ST.
NEW YORK
TELEPHONE
Description
MARKETS
SMALL NET
•
New York
Exchange
Stock
CO.
&
GOODBODY
1 102%;
thereafter to and including. 100Vz%f.and thereafter at 100%?,
Kettering, Vice-President of Gen¬
eral
Motors
in
Charge of Re¬
search
paper — Department
o f
Public Relations, General Motors,
Detroit, Mich.
—
Manual Of The St. Louis Stock
Exchange
for
1943
—
St.
Louis
Stock
Exchange, Security Buildting, St. Louis, Mo.—paper.
.
@FedFRASER