Full text of Commercial and Financial Chronicle : May 14, 1942, Vol. 155, No. 4072, Section 2

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Final Edition

H U R S D A

In 2 Sections

Section 2

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FINANC&&f€<»RONICLE
»

Reg. U. 6. Pat.

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Volume 155

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Number 4072

.»<■{' ,'r

c

New

„.

v

^

living for mankind throughout the world, Henry H. Heimann, Ex¬
Manager of the National Association of Credit Men; declared
May 11 in his keynote address, "Credit for the Duration—and

After!" before the 47th annual Credit Congress in
National
Association
of
Credit^

With

men.

this

prediction,

financial
States

in

vention

look

executives
attendance

that

the

which
will

the

"It will

combined

ability

able

con¬

not

those

that

best

make

tion.

"we must

fact

are

the

at

over¬

nations

duced^'

to

produce
greatest contribu¬

which

and

of

to

life

have

means."

mary

gress
sored
tion

faced, Mr, Heimann said, is

rising price structures to
the point of serious inflation.
"It

by the Cincinnati

Associa¬

trol

the

approach our program in a cow¬
ardly fashion," he warned. "This
war
entails sacrifice, not for the
other; fellow, but' for you and me,
for every living; human, being."

of

tional

Credit

Men

and

is

Na¬

Association of Credit Men,

was

planned
problems and
credit

abuses,
ject engaging
delegates was
tion, it was

to

discuss

the

elimination

credit
of

the underlying sub¬
the attention of the
the ills of distribu¬

of

idle," he said, "to speak of

.con¬

of inflationary force?; if we

Mr, Heimann went

on to say:
No segment of our people, ir¬

indicated by Fred¬
Schrop, Director of the
meetings.
"If it were not for the
extraordinary problems of distri¬
erick

con¬

Although the pri¬
purpose of the Credit Con¬
(May 10-14), jointly spon¬

that

respective

H.

strength
tude, or

Pair Too

their

of

Simple (Boxed)

:

1865 I

Washington Ahead of the

News

1865

Moody's Bond Prices and Yields
Moody's Common Stock Averages.-.
Items About

Banks and Trust

Cos.

1875

1875
1880

Trading on New York Exchange
NYSE Odd-Lot Trading,.....;

1879

NYSE

1876

1875

Bpnd Market Values...;...,,;

State of

Trade
^1866

General Review

Commodity Prices—Domestic Index
Carloadings
Weekly Engineering Construction..
Paperboard Industry Statistics.....
Weekly Lumber Movement..
Fertilizer

Price

Index...

1878
1878
1877
1875
1879
1876

Weekly Coal and Coke Output

1877

Bank Debits

1876

........;..........

Bankers'

Acceptances Lower.... >1874
Weekly Steel Review1880
April Shipments at Record
1876
Output in First Four Months
1879
Moody's Daily Commodity Index.. 1875
Weekly Electric Power Output
1873
Weekly Crude Oil Production..
1874
Non-Ferrous Metals Market

1874

April Department Store Sales
1879
Mortgage Recordings Decline 1877
Automobile Production Down 60% 1875

March

their bellicose atti¬
their blustering de(Continued on page 1870)
or

Federal Taxes

Utilities....

Menace

1870

Sound Labor Policy Essential;,.,,. 1870
To Aid Coffee Roasters

1870

Urges Synthetic Rubber from Grain 1870
Rice—1870

Pearl

Credit

Prosperity Keystone 1870
of

Holding Systems

Essential

1888

..

1868
Repair Parts Manufacture..... 1868
Urges Increased Lower Inc. Taxes 1868

Transportation in War Effort
Cut

By CARLISLE BARGERON

are

any

for

written

always asking of us
number of expert

business

men.
They are the Un¬
have their hopes and what they
in Washington is about Trends.
I know- of
economists who operate profitable services

But they

telling them about these trends but it is
them
stand

chart.

a

it

It is

Now get out your map

and

field

the

your

But it

they have been.
element

Some of

are

and

I

inclined
have

Babson.
•

The
stance

had

econ¬

overlook

to

in

eco¬

broad¬

our

minded, most advanced

omists
this

these

into

enters

nomic factors.
est

Now, the human

mind,

Prof.

'

was

this

in¬

Fannie Perkins.

She

should

have

idea

an

which

Asks

Company Financial Data 1871

1871

CaSh Gifts for War Effort..........

1871

May Food Stamp List
Modify Walsh-Healey Act

1871
1871

Heads New

York C.

trend

of

Senate Cuts

1871

Treasury Urges Voluntary Savings.
Appointed to War Labor Board
United Nations Flag Observance...
Named to N. Y. Cotton Exchange..

1871
1871
1872
1872

Says Price Freezing Requires

was

an

She doped out
had

commerce

i.........

1872

Liquidating Mortgages
April Business Failures Lower
SEC Amends Holding Co. Rule

1872
1872
1872

Discuss Real

1872

Farmers

A. I. B.

Estate War Problems.

Program Conference

North,

March

instead of vice versa or
Well,
a
one-sided

ways.

trend

didn't

constitute
was

commerce

determined

only thing
do, obviously, was to turn the
map upside down.
That is to say,
turn

it

so

that

the

commerce

or

trends would flow northward and

then, turn it again,

that they

so

would flow southward.. This

con¬

1872
1872
1872

Living. Costs Expand
1872
Explained.... 1872
Hawaiian Sugar Exports Higher
1872
Pool

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

1872

FDR Greets Child Congress........

1876

To Call

1876

Second

Age Groups.

.

Says Registration of Women
Unnecessary

1877

turmoil, but
simply toying with
\

Anyway, from

that

War Funds Reach 162 Billions

1877

Wheat Growers Approve Market

Quotas
Farin

.....

Production

Increases

.

new

regulation

merely

appears

undertaken

ever

this side of the Atlantic and the

on

This task has been undertaken

by a regime which
notoriously weak in administration, and at a time when
national election campaigns are about to
get under way.
Will it be possible to administer
prices, ration sugar, tires,
gasoline, and do all the rest that seems to be on the way—
and yet keep it all free of politics as Mr.
Hopkins was never
able to do with his WPA? There are a
good many who sup¬
that

pose

assured

some

of

measure

effectiveness

by local administration of all,

tifarious activities,-'but it is to be recalled that
worst abuses of the WPA

fairness

and

Crop Report at May 1

.1879

some

of the

"local" and "locally" per¬

were

petrated.

Regulation Not Simple
.

Let it not be supposed that these sundry
regulations

which' local boards must

administer, are all simple rule-ofprice ceiling rules as written and as
they now stand appear indeed to be utterly beyond any¬
thing in the nature of precise administration. Their en¬
forcement must of
necessity be of the hit or miss order^
since an army of men and women would be
required to
apply the procedures literally with fairness and effectiveness
—if, indeed, they could be applied at all. Sugar rationing
appears relatively simple on paper, but enforcement would
thumb affairs.

Retail

(Continued on-page 1867)

Far Too
/

am

,'V 'l

' />'

confident

l

'

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*

•;

*

and in almost

* '

'

'

;

*

Simple

J

l1

'

I* '

''

'

.

.

' '

V

that the sentiment in every city
every

and

homestead of this entire land

is that when

have

we

we

have

won

this war—and by that I

when

mean

completely subdued those whose will and practice

1869

would be to enslave the world—when

Capitalism Can Make Economics A
1869

Murray Again Heads N. Y. Cotton
;
Exchange...; s,,,,.,,. ;. .. 1869

selves from threat of
bonds—we have

slavery and

we

many

only cleared the

Have thus freed

millions from its
for

way

our

our"

very

real task.

Egypt'sSugar Crop Down.;.y. 1869
Security Issues Registered in First
Quarter

If!! One Reader
"The Financial Chronicle has been
had the copies bound and kept for

Running through
whose

file

1906—and
your

mind

so

useful that

we

have

still another to

the

1880.

value

of

Can there be any doubt in

binding

your

copies

of

the

Chronicle, of having at your finger tips a complete
record of all important financial developments?
The new
Financial Chronicle was designed for binding. With the larger
size, bound volumes will be thinner, will

will be easier

to

handle.

This is merely

a

we
want you to get
Financial Chronicle.

Ruies

Articles

•

open

flat and




Resales

.

'
1880

lightenment

Sees

under

cies

the fight

as a

use

the full force of

our.

influence and

Nation to plan and establish continuing

which

a

new

and the sacrifice

world
we

may

en¬

agen¬

develop—a world worth

have made for it.

Honorary Degree.. 1880

For America must choose

Treasury 2% Issue Oversubscribed. 1880
Living Standard at 1932 Low 1875

Narrow

war:

isolationism,

one

of three

courses

which inevitably

after this

means

the loss

Building Advances Near Record.... 1875
Churchill

Reviews

OPA Granted Tire

War

Progress..,

1873

Rationing Power 1873

of

our

the

own

liberty; international imperialism,

sacrifice

of

some

other nation*s liberty;

or

which

means

the creation

Preliminary U. S. Debt at April 30. 1873
Price

Ceiling Rules Explained
Lower

tions

suggestion—passed along to you because
full value from your subscription to the

.1874

Against

Opposes Auto Confiscation... 1880

Dr. Stonier Gets

Treasury Asks

1

1876

April 30

Conservation

Patented
AAA

reference."

correspondence, we find a subscriber
copies dates back to 1887—another to

Financial

page

Soil

Supreme Court'

our

of bound

about

More

We must then

1877

.;....

Federal Debt Limit at

N.

Y.

Trade

....

Group

of

1867

for every race

a

and

every

an

equality of opportunity

nation.—Wendell L. Willkie.

Urges 48-Hour

Week
To Increase Fuel

world in which there shall be

1867

Tax Exemp¬

1867

Oil Supply

1866

Three-Gallon ,Gas Ration Limit...,,. .1?66

is

most, of these mul¬

or

1878
1878

-

of

task

every town

Science

success

(Continued on page 1870)

'u

Each

impression that there are those who regard restrictions as
possessing some occult virtue in dnd of themselves, or per¬
haps have reached a strange psychological state character¬
ized by an "inner
compulsion" to: sweeten the souls of
American citizens by
imposing hardships upon them.
But, however all this may be, we have now entered
upon a campaign of endless regulation, and in so doing have
saddled upon ourselves the most
staggering administrative

-

General

are

close meanwhile.

a

to whet the appetite of the irrepressible Mr.
Henderson,
and it must be said that it is at times difficult to avoid the

Foreign Trade Rankers Meeting.... 1876

that

words.

to

Thtetf-American Shipping

Create

Farm Prices -9S% o£, Rarity.....,,...

it created trade

optimism to suppose that we-have as yet tasted of all the
compulsions with which we shall become acquainted during
the next year or two unless this war comes
unexpectedly

Govt. Cost Contracts

stituted, as you must be well
trade activity.
Of course,
some
cynical people would say,

aware,

we

Copy

people of the United States are now launched upon
of regulation and control with which nothing in
their experience even
remotely compares. It would be
quite accurate to use such terms in describing the regimen¬
tation even now
being imposed or scheduled for the im¬
mediate future. It would,
however, require a good deal of

1871

TVA Fund

WPB Controls Rubber Products

always been from the South to the
both

a

orgy

1871

O. C

Convention Managers to Meet
Naval Shore Facilities Funds

now

human element in

the

She

to

that

seems

OP A

Heads Bankers Priorities Group....

to have commerce. The

would have always been this way,
I do not know.

didn't.

and Miss Perkins

country

same

it

into the inventive

economist at heart.

of
1933.
We have here a geography
;of the North and of the South.
They
have
apparently
always
been in conflict.
Just why two
in

over

but

that

And think of the period

sections

War Funds Increased.;...'.. 7r■ 1868

Subsidies

her

taken

then I shall proceed
to chart our future, one of the
most amazing endeavors ever un¬
dertaken by even such men as
Prof. Babson.
ruler.

ambition to draw

RFC

are<^

we

going—and

;

now my

chart of where we have been--one must under¬

a

where

realize

to

v.«,«

is

political

Simplification

column is

"V

Price 60 Cents

Pacific.

Miscellaneous

Federal

touchables of America.

\

\

.

The

an

Financial Situation

Now American

This

>

•/

1865

Regular Features

about

are

One of the very important home
front economic battles that, we

bring to the world a realization
of just what the better way of

1

'

on

On

the

cerned,"

productive
facilities

credit

abuses

members

our

of

"most

arid

creditevils

need," he said, "the

efforts

said^

he

v.■&;,'}>■-

Page
Utilities in Reality A Tax
Stockholders..,,.;.........,. 1866

Taxes

From

our

be

44

from

Cincinnati of the

credit problems would
comparatively
small,"
Mr.
Schrop pointed out in a statement
issued May 6 preliminary to the
meeting. "The chaotic state of the
merchandising
field
has
pro¬
bution,

Mr.

Heimann cautioned the credit and

-

t-1

'

v .

America's living standards,

ecutive
on

fV

■

.

INDEX

the post-war interdependence of nations will tend to lift the standard
of

.«

GENERAL CONTENTS

Prosperity Keystone in | Posl-Warl Era
on

Ofllcef

'

York, N. Y., Thursday, May 14, 1942

Sees U. S. Credit And Resources As
Despite the war's adverse effect

T

»

«

If

world

problems only

were

really

so

simple!

-

I

THE

1866

COMMERCIAL & FINANCIAL CHRONICLE

Taxes On Utilities In

Co¬
ordinator on May 11 announced a
new
program
designed to in¬
crease heavy fuel oil supplies in
The Office of the Petroleum

_

the

the expense of gaso¬

at

East

line and to increase the

extraordi¬

movement of oil by tank car,
according to an Associated Press
dispatch from Washington.
The
program provides:
Formation of a joint tank car

nary

[ subcommittee for the East, Midf die
West and
Gulf districts
I charged with the responsibility
of obtaining maximum effici¬
ency in use of tank cars aM as¬
suring that the cars. will be
utilized to meet critical problems of supply in each district.
Movement of 75,000 additional
barrels of heavy fuel oil daily
from the Gulf Coast and the
same amount from
the Middle
.

'

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'

;

Thursday, May 14; 1942

electric

power
who ask for it.

Reality

A Tax On Stockholdeis

"

.

West.

Vr' ?H

industry;, is still batting, the power; out to all
'• *;
; V:';
v
A/word is in order for the gas industry. ^Overshadowed
by its younger but now bigger utility brother, the electric
power industry,its annual gross of nearly $1,000,000,000 is
often-overlooked by outside . commentators on the utility
business.: From 1929 to 1939 it quietly increased the in¬
dustrial use of gas by about 40% while coal consumption
2§!|By harold Flemingwas tumbling
30 % and coke by;:"31%, and fueir oil con¬
It has been sometimes said that the Administration
^
~
in Washington decided to destroy the utility holding com¬ sumption rose only 2.3%.
But its big achievement has been in providing the arms
panies through higher taxes when it found that it could
program with vastly improved methods of heat treatment:
not break them up through the Section. 11 death-sentence.
There is nothing to this canard for a multitude of Shipments of gas-using equipment for industrial use are at
new
peaks. | In the modern tank, gas is used for some 15
reasons.
In the first place the tax increase, was. not aimed
different heating operations in hardening the armor plate.
especially at the utilities. It was aimed even more at the Technical research has made it
possible to get far superior
banks, particularly through the method of increasing the
results in a heating cycle of 100 hours than would have
"surtax" instead of the "normal tax.-- In fact the addi¬
Natural
tional surtax is a peculiar kind of surtax which; does not required 400 to 600 hours in the first World War.
affect the utilities quite as much ..as ..certain other indus¬ gas companies are now playing a major role in supplying
industrial fuel to the war program.
Meantime the gas in¬
tries.
If it is passed, their normal-tax-plus-surtax will be
dustry rtwo years before the war began in Europe, started
only about 50%; (not 55.%) of what is.left after the excess
to prepare itself against a state of war here, by learning
profits tax on everything over 95'%" of their average earnings
how to protect plants, transmission lines and other facilities
m 1936-1939. •
f
U from air'raids and sabotage. ;
.
But there are other reasons for rejecting this far-fetched
"£! .»

Editorial-

Fuel Oil Flow Guts

■■

4

v

Coast

East

of

Arrangement

••

,

plies among East Coast refiners
so
all shall receive amounts in

of ways of "getting"
One is the tried and
testect way of competing with them with tax^yersL mo&y,
which continues;
Another is to apply "prudent investment"
or "original cost" theories to their books regardless of .the
Supreme Court's recent decision (not in accord with it) in
the Natural Gas Pipeline Company case.
And still another
is to keep right on prodding them with the death-sentence,

proportion to their runs during

which the Commission says

mini- theory.
One is that there are plenty
% mum amounts of crude oil shall the
holding companies besides taxes.
be used by refineries which are
refinery operations so that

;v

.

•••v-

making petroleum war products
so that heavy fuel oil pro¬

and

<

duction will be increased

at the

of gasoline.
;
/
Apportionment of crude sup-

expense

-

i

..

,

.

of 1941.
an
additional

it is going to do.
However, the tax proposals do hit hard.

the last six months

Movement

of

"

of East Texas
crude into the East daily so that
refinery operations there may
barrels

100,000

■;4
yi'

400,000 barrels

be maintained at

«

: :.v

daily.

additional barrels of gasoline daily
into the East by Great Lakes
of

Movement

10,000

tankers.

of the SoutheastStates from points of entry

Supplying

v:'

'

Taking a list

big companies, by and .large their common-stock
earnings will be sheared by a half to three-quarters by the
tax.' That is not really a tax on the companies but on the

of

the

stockholders.

It

is

a

particularly hard one because the

companies have been"'taking care of their own needs for
cash substantially through increased depreciation charges
in recent years,'and: have been paying a large portion of
the net remainder after taxes to the stockholders in divi¬

stockholders are among the hardestby the recent proposals, as the
sippi River.
current below-1932 level of utility share averages indicates.
;
Utilization of rail facilities
It will be difficult for the industry to recoup this in order
for at least 100,000 barrels of oil
daily up the Atlantic seaboard to continue obtaining for its stockholders a '"fair return"
from the South; '
on their money. : Getting rate increases is no way to
pro¬
In order to increase heavy fuel
tect stockholders'; return anyway;; it is usually done; by
available from the Middle West
economical and thrifty operation, which lowers costs, and
the industry refining committee
raises the net—and then by fighting off. the efforts of poli¬
is required to work out refinery
schedules to produce' the fuel at ticians, commissions, and consumers to: seize this through

"f

ern

Gulf

the

on

Coast

and Missis-

Hence utility

dends.

hit of all stockholder groups

->

•

■

-

the expense of motor gasoline and
is

called

upon

to

arrange

rate reductions.

pur¬

compensating rate increases can be obtained,
of heavy fuel-oil so that supplies
probably, from large industrial users through the so-called
may be concentrated at Midwest¬
"coal and tax clauses."
Such users understand The fiscal
Some

chases, sales, exchanges and loans

ern

points from where they may
East in train-load lots, the

move

dispatch added.

'

-■

■

■

problems of the power companies, do not feel their rates
heavily at present, and would rather be presented with a
bill for higher rates today than after the war when they
may be eager for every possible operating economy.
Some
increase might theoretically be obtained from residential
consumers.
But here the problem; is political and involves

question of stirring up a hornet's nest by raising the
Price Administrator Leon Hen¬
initial rates, paid by all customers, or the stepped down
derson on May 9 set the basic
rates for the third, fourth, or remainder block of electricity
gasoline ration at three gallons a
the

effective

week,

(May

tomorrow

for motorists of the Eastern
seaboard who register on May 12,

<15)

and

14

who

13

and

in

non-essential

the order, there

are

the

Under

will be five kinds

of ration cards issued

show

engaged

driving.

which will

gallonage purchaseable

'during
the seven-week
period
from May 15 to July 1, viz:
A card holders—non-essential
motorists

.

miles

■

B-l

driving less

than six

card holders—Those who

daily—33 gallons.
B-2

.

Sispyhus,
for the simple reason that out of each $1,000,000 of reve¬
nue
recouped through rate increases the tax-gatherer would
still garner his 72% or 88%. > *
r
However, the whole thing is nearly a labor of

One of
ture is the

the curious

absence,

so

aspects of the present utility pic¬
far, of any power shortage—except

last fall in the Tennessee

daily—21 gallons. ::

must drive from six to ten miles

■N

bought. by the consumer, in which case the consumer may
by the simple process of turning off the lights
when he goes out.
!
'
\

retaliate

card holders—Those who

the 'Federal
the country of an
impending power shortage, and belaboring the companies
for shortsighted expansion programs.
"

Power

Commission

has

Valley.

For

years

been! warning

The State Of Trade
heavy industries continue to report further substan-»
especially as compared with last year's figures. Steel pro¬
duction in the United States will reach the highest levels on record
In the current week, according to the American Iron & Steel Insti¬
;• % Most of the

tial gains,

tute.

'

-

'

-

1'

-

-

weeks

last

from

The latest level will result in pro- •

a

comes

rate of;

—

1,691,800

tons

net

And along comes news that industry after

sumption goods and services alreaay have brought into being an
over-all freezing of commodity

Edison

Electric

amount

of

i

The

Institute.

distributed

electricity

industry
in
the week
amounted to 3,304,602,000 kilowatt
the

by

of 1.3% over the
output of the preceding week and
an
improvement of 12.2% over
the-corresponding week in 1941.
Loading of revenue freight for
the week ended
May 2 totaled

hours,

gain

a

.

449

from the preceding week

cars




1784],

Yet, except for minor shortages here and

there,-the

also

labor

drastic controls
will; become in¬

creasingly necessary/v
v
Labor-management committees
for

production' drives have
in
100
additional

war

formed

been

plants, bringing the total to 700,
it was announced by War Produc¬
tion
Board officials.
These- 700

plants are now engaged in step¬
ping up the production of planes,

1,000,000 workmen and managers
enlisted in the drive.

64,605 more
corresponding week in

are

193,357

ing concrete gains in war produc¬

'his

year,

two

cars

than the
1941 and
above the same period

years ago.

This total was 137.74%

-

of

aver¬

loadings for the correspond¬

age

ing .week «of ' the

>

preceding

10

is

B.

Co.

Goodrich

F.

Sug¬

the Akron plant of
company for speeding
pro¬

gestions
this

at

duction have increased 75%

March

years

those report¬

Prominent among

tion

♦

29,

the

when

since

Committee

began functioning; Two-thirds of
i|be suggestions submitted by
war1 workers have been so sound they

However, it is pointed out that
has yet to

the American economy
be

transformed

.

The

basis.
is

to go.-

has a

*

-

,

V.

Paul

Chairman

Manpower

the; War

full

a

long

It

:

war

..

'

McNutt of
Commission

between now and the
end of the year 10,500,000 addi¬
tional workers will be needed in
war
industry.
Since there are
that

says

7,500,000 workers in defense

about

plants now,, this would bring the
total number of persons so em¬

far

ployedthat to

above

any

estimate

is pointed out

It

made.

hitherto

already been put into prac-

transition ^ve
but informed, *:ice'

still

it

state

sources

>

of

under wayr

now

way

to

process

provide these added work¬

is reported that output of
materials J is running well

ahead of schedule, and that offi-

well pleased
being made
toward the goal set by President
Roosevelt in his message to Con¬

cial

is

Washington
the

with

progress

gress' calling
and

1942

of

in

production

for

1943

185,000 planes,

120,000 tanks, 55,000 anti-aircraft
and 18,000,000 tons of com¬
mercial shipping.
guns

The
now

Washington

in

planners

believe that estimates'of war

fiscal year
beginning July 1, next, can be in¬
in¬ creased from $56,000,000,000 to
a
$14,000,000,000
dustry.- Vast numbers of persons $70,000,000,000,
will have to be moved from their jump. It is pointed out that this
millions

of

women,

young expenditures for the

retired

persons- and men already
will have to be brought into

present homes to the communities
where the war plants are located.
Vocational training programs,
which

have

persons

enrolled

to date, will

3,750,000

have to be

greatly extended.
Observers

state

retailers

page

for

358,904 cars, according to reports \ tanks, guns and other war impleby the railroads with the ments under a voluntary plan of¬
by
Donald
M.
Nelson,
of
American
Rail¬ fered
roads. This was aklecrease of 2,- Chairman of the WPB. More than

unable to fill all orders.

May 7 issue,

Similar

prices.

con-

filed

show its effects.

[The 'gas' ration cards were de¬

a

Association,

high-minded bodies before 1940 for over-capacity, is now

scribed in

dwindling supply of

and

production. A contraseasonal gain in
electric power
production for the week ended
May 2, 1942, was reported by the

away

-

will be

tric power

Maryland, West Virginia and Vir¬
ginia, it was stated.

with rain.

soon

tion effort is the report on elec-

applied .to 93 counties in west¬
ern
New
York,
Pennsylvania,

industry, criticized by the TNEC and other farseeing and

which

or

of unobtainable for replacement purposes. Leon Henderson predicted
the previous all-time high of 1,- anew that a year from now the
681,600 tons for the week ended civilian standard of living of the
March 23,
I Nation will have fallen to that
Another factor that reflects the of 1932.
Rapidly expanding employment
steadily expanding war produc¬
of

duction

that the con¬
traction of civilian goods produc¬

to

—

replaced,

steel ingots,, or 10,200 tons above

be

Along

ness

full point

a

up

98.6%.<S>

of

rate

ers,

must drive from ten to fourteen

miles daily—45 gallons.
B-3 card holders—Those who

of capacity,

Schedules have been set at 99.6%

the war and accelerates American busi¬
activity 1 (and power consumption) * - un¬
dreamed of by the Power Commission.
Along comes the
I. must drive more than fourteen
two-ocean navy program and puts such a burden on the
?
miles daily—57 gallons.
X card holders
"Essential" builders of steam and hydro-turbines that
they cannot
<,'■ motorists, such as doctors who
possibly fill the stepped-up requirements of the power com¬
cannot predict their daily mile¬
Along comes an almost un¬
age—unlimited gasoline for es¬ panies for new generators.
sential uses.
precedented water shortage on the Atlantic Seaboard in
This rationing program will not
1941, the effects of which have not yet entirely been washed

•|

.

tion

of

is

only
are

now

beginning

to

Even at this time
selling many types

merchandise which

cannot be

is almost
ed

three times the report¬

estimate

of

the

war

cost

to

Germany in 1941.

Naturally

these huge

tures

for

more

thousands

find

war

mean

of

expendi¬

that

many

workers

wiil

jobs in industries making
such goods, that the amount of
ready cash in the hands of con¬
sumers will increase to new highs
and that eventually, after present
stocks are exhausted, many lines

.Volume 155
*.of merchandise

,

available -for

THE

Number 4072
longerrwilI be

the public' to

its money on.

f

/ »;

^

-

IKE FINANCIAL SITUATION

spend
'*

.

C

;

making further gains, and
even, though the amount of money

ily

'

?in

circulation

'

is

at

all-time

an

peak, retail trade is slackening,
not only in department stores, but
liri mailorder-hbuses, independent
,

stores

■

and

in

chain-store

some

;

organizations. Most companies are
'still
reporting gains in dollar

sales, but they

quite small and

are

do not begin to reflect the in4

f

]

in

creases i

prices

about 19% above

a

which average
year ago. This

; means that fewer units of meiv
) chandise; are; moving across store
'counters
and
into
Consumer
hands.
'
•

Observers state that the Outlook
for retail trade during the second
half of the year is clouded some 4
what by prospects of further re-?
i strictiVe action aimed at reducing
;

'

consuiher

The
•

purchasing power.7

Federal

action

Reserve

Board's

in

curtailing ; consumer
credit, further, is the mOst recent

.

indication
-

the

that

Government

is determined to bolster its price

ceiling program with supplemen¬
Um
der the new regulations the maxi¬

taryantirinflatiqnarymoves,
-

-

■■■

.

,v

.'sf j.')„

permissible maturity of instalment sales has been reduced to
12 months.
:
•
<
7
;

'7

'jj.'.• V '■*'

:Vj5f

-

!

i
y:

■

I j

be difficult in many sections,?
particularly the larger com¬
munities, were a.marked disposition to develop on the pari
of the public to evade it.? The
rationing of gasoline raises
much more difficult questions, and will avoid serious scan¬ remarkable.
Such a spirit will not long, survive a situation in
dal only if the public virtually enforces it upon itself—that
is, in the larger centers of population at least. If to such which the multifarious-: control organizations now being
tasks as these we presently; add regulation of
wages V and organized earn the doubtful reputation which the practical
salaries—well, who will, be left to fight the war after, all administrative performance;;-of the V WPA or the NRA
the requirements of the regulatory forces have been met? fastened upon these agencies.
:
There would appear,to be but one condition under
which such ambitious programs of control over the lives of
Before
Secretary ' Morgenthau
made this proposal there
the vast multitude of people dn the United States, can
appeared
reallyj
to be no likelihood that the House
have any reasonable hopej of succeeding. That condition i$
Committee would revise the pres¬
h
one in which the rank and; file
'throughout the land ard
ent personal
exemptions.
Chair¬
Secretary of the Treasury MorT man
thoroughly convinced of the! necessity, of the undertakings
Doughton said on May 12
genthau proposed to the Hous^ that the Committee
in question and intelligently cooperative m
hopes to get
;seeing that
Ways and Means Committee on down to votes on rates
and ex¬
they are made to work. The cooperation that is essential May 7 lowering the personal in¬
emptions soon. \ : /
i% of course, not: that of' the marplot who noses about the come-tax exemptions so as to prof
The Joint Committee on Inter¬
neighborhood ' grocery store j 'or 'pries into the affairs■■ of duce an additional $1,100,000,000 nal Revenue
Taxation, headed by
in
revenue,
thus
bringing
the Colin
friends and acquaintances in; the. hope of finding something
F; Stam, on May 12 recom¬
Treasury's pending tax revenue
mended to the House
to make a fuss about.
That! kind of cooperation we shall
group an
program from its original $7,600,proposal
for
doubtless have in I abundance; but it will make more diffi-f 000,000 to $8,700,000,000. In a let¬ alternate
raising
$1,547,000,000
under
a new sched¬
cult, not easier, the- work of ihose who undertake to admin^ ter to Chairman Doughton (Dem., ule on. individual
income
taxes.
N.
C.), the Secretary said that
ister these control systems. ;It is the
steady, level-headed, "the time has now come" to lower The plan was said to have been
offered as a substitute ■ for the
solid; citizens m e^ch qommhnity who-must form the real
personal exemptions under the in¬
of
back-bone of enforcement of such controls/
dividual income tax to $600 for Treasury-proposed' increase
,

Treasury Asks Out lit

r

,

It
,

is

half of the

tensified

.both,
.sions

year

with

the

second

witness in¬
drives or pro¬

may

spending,

limiting

consequent

retail

on

that

savings

for

grams

.

believed

or

repercus-

In view of

trade.

single persons, $1,200 for married
couples and $300 * for> each de¬
pendent.

.A Poqr Start

It must in all candor be said that the Administration
has made a very poor start in gaining the confidence of

of

such individuals.

000

of

The

tenderness with which the'affairs

politically powerful groups

failed to

come

to

Mr. Morgenthau

are.

touched

can

the; attention, of all such solid

large

volume

buying public

on

May 5

In
the

;of

retail

to

sales

commodies

of

on

in for their

come

.sharp .of1 dark. talk. As

every,

$100,000,000
6,900,000 new

from

March

on

3,

yield

with

persons

for

and

the

$1,000, with
dependent credit
normal
from

rates

tax

4%

rate

to

would

6%

range

to

80%, as compared
present -rates of 6% to
The
Treasury's
surtax
schedule^ proposes rates
the

77%.

ranging

from 12% to 86%.

dependent—would
relatively insignificant

"a

to

raised

11%

with

each

amount of

be

to $500 and for

persons

persons

surtax

from

credit of

a

in

recommendations

retained. > The
would

Committee

$3,200,000,000

the present $400

his: tax recommendations to

$400

single

married

yield,

come

married

•

The House group on

May 6 Jaid

aside

temporarily the question of
incomes."
How- post-war refunds of excess profits
over, he explained at
that time to corporations. The Joint Comthat he would ask for lower ex-/mittee on Internal Revenue Taxers

-

have

for

low¬

Secretary said that a further low¬
ering of the present exemptions—
$750 for single persons, $1,500 for

exhibition of official uncertainty and
bickering can
scarcely failto leave manyt.wondering; if the authorities
Regulation as it applies to retail¬ know what they are about. • The rubber situation is -like
ers at an all-day meeting in Washunto it. One moment the public is given the impression that
i ngton with official $ of the Offic^ the outlook; is fairly comfortable; the next we are told
thej
of Price Administration. The regu4 most alarming stories about
shortages or prospective shorts
lation which becomes effective as ages.
Recently it has been automobiles themselves which
an

given a detailed explanation
the General Maximum Price

would

this

—

3

March

and

taxpayers.

The readiness to:

.were

which

revenue

$4,300,000,000

the

$1,100,000,000/through 'the
lowered exemptions.
The sched¬
ule involves
lowering exemptions

explained that,

approximately $1,100,000,-

new

would

citizens.

purchasing

of

the

ering

scarcely have

place one group under alL manner of re¬
strictions while leaving others virtually free, of interfer¬
power
on
hand, sales are hot
likely to fall below last year, re- ence has been plain as, a pikestaff' from the first.
The ap¬
-gardless of possible restrictions.
parent inability of. the? authorities at Washington to agree
or even come near
agreeing as to what ought or ought not
to be done has not helped matters.:
Price Rules Explained
Possibly the many false
Retail trade associations repre¬ starts, conflicting statements and differences of opinion dur¬
senting? somewhat over 700,000 ing the past six months or more about the gasoline situation
establishments that deal directly
along theeastern,seaboard best illustrate this point Such
;with the
the

•

.

mum
;

1867

some
proportion of the individual wage earners), the peo¬
ple by and large appear to be prepared to do what is neces¬
sary and to make what sacrifices are required to
bring
the undertaking to a successful conclusion at as
early a
date as-possible./ All in all, the
degree of public coopera¬
tion and the relative lack of complaint have been and are

i

•fContinued From First Page)

-

-

-:.r'■'

Even though employment cur4
?rently is at high levels and stead¬
-

r

COMMERCIAL & FINANCIAL CHRONICLE

from the

revenue

earn-

of very low

emptions when he

ation told the House

"felt thai? the

Committe<

expenditures of this group addecj. earlier the? same day (May- 6
materially to the danger of infla-1 that the tentatively-approxed ex
tion."? Mr.
Morgenthau's March ■ cess-profits rate of 94% (referrec
proposals
were
referred
to/in to in our May 7 issue, page 1777^
these

columns

of

March

952.

onej

5,

page

>

In .his

Mr.

"wih seriously hamper the wai
[effort, stimulate inefficiency• or

recommendation, I Jhe

latest

part of the corporation

anc

tend,

toward inflation'? ? unless
some incentive is granted in the
few exceptions over all prices} Yet there has of late been-talk of
"requisitioning'' cars now ing the social security tax pro- '-f°rrn of a post-war credit. Chairgram- so that $2,000,000,000: more • man Doughton said that Commitreference
thereto
appeared in in operation;
would
accrue
from
these
in- [ tee members desired to give the
these colums April 30, page 1705
Meanwhile the ordinary citizen doing his best to
under-j creased taxes. Mr. Morgenthau's i Question further study and had
stand
)and May 7, page 1785.
precisely what the. situation is respecting such things] letter to Chairman Doughton, as' therefore laid aside consideration
The meeting was one of hun¬ finds it next to impossible to obtain information.
No one made public May, 7, follows: ^
- °* various proposals. It is reportdreds
I
have
hepn
rpcon<;iderin0 ^ ^y the; Associated Press thai
being held in virtually seems to know why. the situation as to rubber or rubber tires
May 18, 1942, places

ceiling with

a

knows, used

cars are a; drug on

the market in many sections.;

Morgenthau

also- reiterated

•

his previous proposal for expand-.

'

-

every

to
v

>

State in the Union in order

give retailers an opportunity

to

ask

regarding the

questions

regulation as it affects their vari4
ous

situations.

The

of

session

morning

the

'

Washington meeting was devoted
rto

addresses

brief

by Price Ad¬

ministrator Leon Henderson, J.

:

Deputy

>

Merle

Administrators,

so

much

more7 hazardous

or

or

of

the

Branch; in "the

Trade

Division, presided
V-

The

;

Relations

as

Chairman.

afjternoon -session was de-4

reports

This
tional

,

;

questions

and answers,

;

000

associations

and

answered

by Mr. Fainsod and members of
the staff.

Vv




~r

1

'

has

would

Now these
cessful

are

not:

detailedrcontrol

circumstances favorable to

a

suc¬

of

,;the 'individuar iives of prac¬
tically all American citizen^.They, "place; an added and

new

failure

addi¬

an

.

increase in

revenue

as

"the

least that the American
people can afford to provide at
very,

wholly unnecessary burdeni- upon any machinery which
for that purpose/;They : could well cause the

this

time."

critical

Mt

would

bring the total additional rev¬
enue of the tax program to $8,4

machinery"to 'operate; and the result of such
would b£ jrif initqly [m
thanincrely fall4

ing short of

taxpayers.!

which I then described

may be set up
failure: of that
a

produce

of approxmiately

would, of course, be in addition
to
the
$7,600,000,000
in
new
revenue
proposed on March 3,

700,000,000.

.

an

I

<

-

;

•

should like also to empha¬

size the

need of

expanding the
and of
'increasing taxes for this pur¬
pose by approximately $2,000,000,000 a year. I hope the Com-.
from numerous bureaucrats with vested interests in
•mittee will proceed as soon as
public
office, certain groups who style themselves representatives / possible after completing a tax
bill
to f.*a 4;consideration ;■ of
of the farmers (and possibly*;
although, not. certainly some
changes in the Social Security
farmers themselves) and trouble
Law.
Social Security program

>

trade

time

$1,100,000,000,. of which $100,-i
000,000 would come from 6,900,-i

-

raised by members of the various

the

upon which that
computed—be withheld by
Government until after the

is

the

to revise the program

revenue

Such

Serious^

objective set forth—a goal which in many
instances is not in - any event
during the course of which many
wholly worthy. The rank
and file in this country
of the problems peculiar to retail
appear, despite much ranting to the
establishments under the General contrary in some, quarters, to be ; fully cognizant of the
Maximum Price Regulation were enormity of the war tasks we have set for ourselves.
Apart

.voted to

opinion

my

now come

nnly : to Mr. Hen¬
resign himself to restrictions;
necessity of which he is; by no means fully convinced.
Failure Would Be

Presi-j

OPA Retail

new

come—the base
tax

$300 for each dependent.

Wells, Acting Chief Council of the

;head

In

virtually all instances, the public
willing to take the word of such officials as
Henderson (ratherp
appajrently, than that of .Mr. Ickes)

the

as

expendi¬

tures.

S38 !uS8ested infor

mally that 10% of a corporation's
adjusted excess profits net in¬

must either be

vices Division of OPA, and John

serve

pro?

con¬

deed the fact is that in

serious student distressed., S6 also is it with Various

of

that the situation is- acute mid; will
jyield
derson's^ programs—or else"

Cooperative Food Dis¬

war

war
and
be repaid in perhaps
presented to the Committee on five equal
instalments.
The re¬
March 30 by lowering the pro¬
payments would be tax-free. An¬
posed personal exemptions un-4 other
plan would divert 20% of
der the individual income tax
the/same base but would make
to $600 for single persons, $l,-j the
repayments fully taxable as
200
for
married
couples
and income.-

established Retail Trade and Ser¬

tributors of America to

stantly increasing

(possibly for other" than strictly military purposes). The
welter of confusing and conflicting reports of the
progress
{or, lack of it) with, synthetic ;rubber plans hulst leave the

Mr.

dent of the

gram

;

Fainsod, director of the recently

leave from his position as

certain aspects of the tax
in the light of our

disturbing than it

three months ago. ; No one, of
course, knows
how much of these materials is
going abroad on lease-lend

Retail Trade and
^Services Divi¬
sion, Hector Lazo, who has taken

r

two

techniques .which *make^po^ibleServiceable tires with
Kf mhch less rubber? than has in the past been
customary. In-;

•Galbraith and Dexter M. Keezer,
,

should be
was

•

making labor leaders (and

z:x

I

T

j-i

"jrb'rr-

"*T,nr;

NY Chamber Of Commerce

Urges 48-Hour Work Week
The Chamber of Commerce of
the State of New
York, at its an¬
nual

meeting

May 7, adopted

on

resolution calling for the abol¬
ishment of the 40-hour work week
in favor of a 48-hour week.
The

a

resolution,

recommended by the
Chamber's Special Committee on
Industrial Problems and Relations,
headed

by Lewis

R.

Gwyn. said
period of na¬
tional emergency when the serv¬
that

<

ices

"during
of

this

skilled

workers

are

urgently needed the Chamber of
Commerce regards 48 hours
proper

minimum

week's

work."

resolution
tention

of

The

further
a

as

measure

said

the

of

a

Chamber's
that

"re¬

40-hour week,

with
penalty overtime, jeopardizes the
success

of

our

recommends

appropriate

effort;
Congress
'legislation
to
war

that

end."

V

V

and
pass

thii

Thursday, May 14, 1942

1868

regarded sales for cash, as the

Simplification of Holding Company Systems^
i
Essential For Survival Says Burke of SEG

-

X desirable pattern ofv compliance
; with section lLt|b):r.r Plans for
.the exchange."of-, securities hetcj'
in

company's

holding

a

folio for senior securities of the

financing

plans of distribution do not in¬

On the

volve the sale of securities on
the market,
and consequently

of

holding

our

Mr.

Burke

went

on

made

clear

our

to

say,

to

"I

operating company
new
construction.

"

have

ordinary

common

that

holding

our

for

that

belief

entirely, and who would be,

the demands of the war

indeed

well

them

effort, as
with the uncer¬
tainties of the future."
to

as

pany's

cope

have

been,

in

even

assets

1;

its

to

of

.

security

.

seemed

have

holders

to

us

a

Company, New York, addressing acquire strategic materials and
the economic-conference of the for
financing other war activities.
National
Association
of Mutual
In urging approval of the capi¬
Savings Banks.
■
a-'
tal increase, Secretary of Com¬

promising solution, on the
whole.
Plans of exchange and

more

-

public funds

scuttling of desirable legislative
objectives by those who are op¬
posed to them for other reasons

into
shape
to % meet
their
present
pressing financial problems and
put their structures

to

plans

or'

Substantially increased taxation
A
Senate
Banking and Cur¬
upon incomes
of all kinds, and rency Subcommittee on May 8 ap¬
especially
those
of
the., lower proved a $5,000,000,000 increase
brackets, was said on May 6 to be in the capital of the Reconstruc¬
imperative by
Murray Shields, tion
Finance
Corporation
for
economist
of. the
Irving Trust loans to expand war production,

reorganization providing for the
distribution of a. holding com¬

used

be

man¬

agements act as promptly as pos¬
sible

hand, the war must not
as can
excuse for the

other

requires

sense

company

company,,

from

essential

in

and

opposed to

;

war

economically and expeditiously,
without any
possible adverse

peace-time.

Mr. Burke went on to point out
"there
are
obvious
ahd
state¬ that
ment that "on the basis of your tangible advantages to be gained
from
a
reorganization, such as
experience and ours, we can see
at a glance
that the corporate improvement of credit standing,
removal of impediments to rais¬
and financial structures of many
of our holding company systems ing new capital, and elimination

the complex hold¬
ing company security structure
into

all

an

mony, Associated Press Washing¬
large a vol¬ ton advices stated:
ume of obligations payable upon
p/ Giving an over-all picture of
demand, or of increasing the
the RFC's war time lending and
floating debt to a point where
spending / program, Mr. Jones
refunding is a difficult prob- "said that the agency and its
lem. Although a service charge
subsidiaries made commitments
of $3 to $6 billions per annum
totaling $14,300,000,000, of which
would not be too heavy a bur$576,000,000 had been canceled
den
to
bear
if
our
national
for various reasons and $565,income holds as high as $120,000,000 repaid. •'./>.
;

•

'

stock struc¬

common

/

.

do

of

not

peace-time"

standards

the

meet

even

added,

he

and,

meet said, "under section II (e) neces¬
the requirements of our war-time sary corporate changes may be
made
economically
and
expe¬
economy."
Continuing, he said:
ditiously and with full protection
First and foremost, we face
of the rights of all classes of in¬
the immediate necessity of put¬
ting our operating companies
into shape to finance war-time
construction, as well as to with-

H;

K

to

of readjust¬

shocks

the

stand
ment

post-war

a

economy.

The

production of many essen¬

tial

war

for

calls

materials

a

tremendous amount of electrical

which, in turn, requires
cash for plant expansion and
maintenance.
The
situation

the

;

v,
v

the

of

amount

tion 11

debt

It is

plus

or

•

■

v

/?
'
■

...

by

to

the
fi-

systems is heavily underscored.
the circumstances, un¬

would

i

>,

the

to

..reasons

contrary,

structures

further delay.
As

a

it

that

;

with

with
full

the
„

at

war

and

operating in

with them.

for

order

a

It is for this reason,

example, that the Commis*




prices,"
at

is entered,

place,

we

the

/

the rail¬

In part he said:

addition

at the

of

taxes

He

said that

asked.

tax of

sales

heavy

a

15

of"

be

.

.

to

me

best to meet the necessities

our

situation," said Mr. Shields,

history—as

our
we

also

have

we

to

There

locations.

hauls

A

;i
a

and

to

from

He

the

Canal.

Intercoastal

moving

almost

traffic

direction

to

?

the

the cost of
A

normal

With the withdrawal of

trend.

shipping
.coastal

from

im¬

more

the great coastwise ton¬
formerly handled by these
vessels is moving via the rail¬

fort,

roads.

J

,

White

Mr.

were

said

that

! taxes.
This
> an
increase

and

the

Office

of

keep

in

Transportation

day

by day
touch
with
the,
transportation situation, and both
are
assisting the railroads when

••

to

flow

materials

of

maintain

for the

war

effort," he

added.

"I do not remember a
since my connection with
industry when all of the
agencies affecting our transpor¬

those

even

Australia,
South

no

:

other time.

-

.

how

to

get
Shields said:

more

.

V

-

have

„

never

re¬

divestment of

mere

subsidiaries

or

next.

in the

Rehabilitation of

tax

America,

of

tation

than

ognizes,

,

interests

of

The Commission
of course, that

market

for

equity

inrec¬

machine

have

worked

sympathetically,

greater

singleness

they

are

or

of

.

with

in

purpose,

working

at

time."

\

The

War

Production

Board

•

'.prior to the war;
'

in the open market at this time.

Mr. Burke likewise stated:

Finally, and most important, during the period from April 1
however, sales are only one of to Sept. 30, manufacturers may
a
number of possible methods produce 70% of the total dollar
of
complying with the Act. volume of operating replacement
Even under peace-time condi¬ parts sold by them in the corre¬
tions, the Commission has never sponding quarters' of last year.' '
>

.

exempt

;r

domestic

no
•

v

ail in-

in income which bring
for the year to

to

stocks

one

to

reduce

his

would apply

living and should yield the
Treasury $10 to $12 billions per

'annum.

-'V"

.

Mr. Shields
war

surtax

come

than

;

thought, "A special

upon

of 20%

fensible

corporation in¬

would be
the

de¬

more

much

higher
rates contemplated by Mr. Mor¬
genthau."
Taken altogether, he
thought that these and certain

$1,000 or less, and
other
income to a

increase

above $1,500; of 331/3%
upon all increases in income of
$1,500 to $2,500, and of 50%
upon
all increases in income
lareer than $2,500, would force

standard

of

income

amount

point

of

automobiles, tires and
refrigerators frozen by Govern¬
ment regulations. v
<
' v <
as

.

graduated scale for increases
brought incomes above
that level.
,
A tax of 20%
upon
all increases in income
from
1940
to
1942, : which
which

$200,000,000.

of

Purchase

a

•

parts essential to operation of the
vehicle. ' The order provides that

The
would best
is one

"which

reason,
.

.

conditions

$1,500 or less, and

on

and for that May 5 ordered a sharp reduction
it is unlikely that it will in the manufacture of repair parts
permit, let alone require, wide¬ for automobiles and light trucks
spread sales of utility securities and limited
the
production to

which

would

which
total

incomes.
tax

these

creases

;

Cut Mfr. of Repair Parts

of

meet

^

the
se¬

their

sort

this

than

private

such

^

-

more

practically
all
airplanes in this
country for Army and Navy use.

who can pay
least disadvan¬

people

•

Purchase

the

tage
to themselves
and the
community as a whole are those
who have had sharp increases

regard

the

.

with the

railroad in

Agreement to buy the entire
1942 Cuban sugar crop at a cost

-

taxes

a

Newfoundland and development
of
new
air
lines
in
South

question of
taxes, Mr.

the

more

to

The

time

and

rowing authority:
Importation of 6,000,000 hides
this year and an equal amount

.

.

Considering: the

Zealand

the equivalent of

ties as among those accounting
for the RFC's need for new bor¬

brackets; this being justi¬
in a war but perhaps at

low

imported from

New

Africa

United

year's domestic production.
He listed these other activi¬

a

everybody, including part-time
-workers who are in the very
fied

the

760,000
from
Latin

copper

America and had

taxes

would

It

of

tons

present

income

brackets. '

low

free

the

and -•/ men,

hurt

ously

.

necessary

ing $1,395,000,000. r
Also,
he
said,
the
States
has
purchased

proposed
by
Secretary
Morgenthau
in
the brackets
already taxed heavily, but more
of an
increase in the; Tower
brackets.
Nevertheless,
the
amount of the increase is so
small that it should not seri-

:

Defense

in

authorized

"

be less of

" would

had

purchase of machine tools cost¬

all income

-

pro¬

annual

of aluminum from Can¬

and

ada

than

not

the railroads doing a

Commission

/ pounds

from

in

added, will be increased more
: - • '
The RFC, Mr. Jones said, has
contracted to buy 1,370,000,000

living.

deductible

not

nage

the

that

result

than 10,000,000 tons.

payments covering wages, divi¬
dends, ;Jj taxable
interest, etc.,
with no exemptions, the tax to
be collected at the source and

Atlantic

our

for

waters

would

magnesium, compared with
33,000,000 pounds a year/ ago,
and
800,000 -tons of synthetic
rubber capacity, compared with
25,000 tons. Steel capacity, he

income tax of 5% col-

war

lected monthly upon

-

estimated

production of 600,000,000 pounds

could
be
justified in peace¬
time, for it would tend to raise

is

by

altogether

synthetic "rubber

of
•'

list of goods now sub¬
ject to excise taxes.
It would
be burdensome i and it hardly

"

for

000,000

$468,000,000 for ordnance plants
$182,000,000 for shipyards.

the long

Pearl Harbor
closing of the Panama

following

Coast,

production

and

•

'addition to present taxes upon

•

long
the " West
the

plant

totaled

production; $734,000,000 for ex¬
pansion of the steel industry;

everything sold at retail

except food for consumption at
home.
Such a tax would be in

traffic dis¬

are

aircraft

$1,912,000,000.
Other totals were $360,000,000
for magnesium plants; $700,-

retail sales tax of 5%

war

upon

unfore¬

meet

/ •

alone

gram

the
are—

now

and unexpected

seen

and

doing

to

production,

He testified that commitments
for

.

of

aluminum

added, was about 1,000,000,000 pounds per year.

20%

or

would involve the danger

seasonable business in

heaviest

*;j especially

curities of utility companies is
less favorable than that existing

are

war-time econV omy.
Our war needs are para¬
mount, of course, and nothing
can
be'permitted to interfere
*

deter-

-

he

540,000,000
The present

he

are:

achieving of corporate
simplification as ends in them¬
selves, to be pursued without

present

the

are

the

mere

vestors.

great flexibility and with
we

situation

non-retainable

regard for the dominating

fact that

raised?"

a year ago.

of

rate

and

ago

years

pounds

_

is

of the Act must be administered

be

not such sales

"distress

at

Commission

fully in
thought that
both the integration and corporate simplification provisions
accord

would

or

the

garded the

as

The Commissioner further said:

:v

be

not

time the

.

Commission

Commission

billions

additional

portant missions in the war ef¬

would

which

mine whether

and

justifying a general moratorium
;•
on the corporate and financial
simplification of our holding
company
systems
establish
beyond question the necessity of
..r their
having reasonably conservative capital structures now.
The

predicted with

accuracy-

doing.

are

In

*

prevailing at the time
order is complied with or

would

^

.

the

In the second

on

roads

two
-

$25,000,000,000 of its securities to
available
outlets
as
they
now
exist.
"But how can $20 or $30

.

without

relied

eco¬

York, f Mr.

New

vivid outline of what

a

or

not—it

enforced
-

fact, the very

are

does

our

our

;

matter of

factors

the

at

than
the
reducing consumption below those
r. "If we
standards of minimum expendi¬
do not bring the war' to a vic¬
tures Which' it
is desirable to
torious
end, what we may do
maintain socially."
afterwards \ is
of
little • conse¬
"The specific levies which seem
quence," he said, and sketched

enforceable

and

did

nearby course of the war.

denied

situation

holding
company
systems
should proceed with the simpli¬
fication of their corporate and
financial

r>.

that

clear

seem

it

compelling

are

Co.,

in

more

any

undue

not even make such appli¬

it

as

.1938.

only
splen¬
cation until at least one year did job upon their own account,
after the order has been en¬ but were receiving the best of co¬
tered.
Even if the Act did re¬ operation from the Government
quire forced sales of utility agencies and shippers and the
properties or securities—and it public generally;
can be categorically stated that
"The Interstate Com me r c e

may

Under

there

a

mission,

nancially sick holding company

less

the
dis¬
.

rails could not be

simplifica¬
only
Federal court of equity,
application by the Com¬
is

order

upon

above

follow,

divestment

national in¬
$55,000,000,000
from
1932 through
our

were

,

annual

production of
aluminum, Mr. Jones predicted,
would
reach ; 2,100,000,000
pounds when all plants have
been finished, compared with a
production of 300,000,000 pounds

Mr. Shields computed that the
May 7 by Roy B. White,.
can
dispose of about
of the Baltimore and Treasury

on

Banks

ings

As to this "mis¬

conception," he stated:

them, and with the complete
uncertainty as to the duration
of the war and of the period of
reconstruction

of

was

effort

industry

The

to average

come

v :■

it"

White said that the future of the

or

securities."

A

need for the rehabilitation of

v

-..

site

tion

companies

•

,

rail and much of it in the oppo¬

increased

holding

;v

;

geographic inte¬
gration requires the immediate
disposition of properties or port¬

undoubtedly affect the flow of
cash from these companies to
the

..

that compliance with an order for

All of these factors will

of

any

Burke

Commissioner

folio

probability

•*

Railroad

Ohio

holders.

face the possibility
of increased operating costs and
the

•

war

rail

President

complications
of a holding

structure

simplification

taxes.

v'.v

the

today, unless the holding
company structures are simplified.
In addition, our operating

companies

..ty.

^

great

cussed

indeed,

Linked With War

The

^system,' and of any
inequitable distribution of vot¬
ing i powet among its security

? ' make

are

<i-y.,

-

American

company

'

additional-operating com'■'V pany debt can only tend to

1

of

unnecessary

in

"'f of

holding company securities more speculative than they

elimination

the

pre¬

already exceeds what is sound.
It is obvious that the creation

-

(e)."

He added:
For those systems which do
not see fit to take advantage of
this
voluntary procedure
for
accomplishing a necessary sim¬
plification of their corporate
and financial structures, section
11 '(b) (2) provides an alterna¬
tive method for attaining the
same
objective.
Under that
section the Commission may in¬
stitute proceedings to require

of many of them

stocks

ferred

.

tional Association of Mutual Sav¬

difficult to see how many of
the operating companies in our
holding company systems can
finance, this new construction
without further borrowing.
Yet

is

.

systems availing them¬
voluntarily of the conven¬
ient machinery provided by sec¬
selves

war.

cannot simply mark time.

caused

company

financing war-time construction

■

: v

predict "that

to

dislocations

,000,000,000, such a charge would
represent a significant figure,

Transportation Future

nomic conference held by the Na¬

Companies,
confronted with the necessity of
the

tion- of

economic

by the war and its aftermath will
in
many
other
holding

cannot be frozen for the dura¬

r

,

result

energy,

'■

Mr.

consumers."

and

ventured

Burke

liquidating dividends.

as

"Furthermore," £ he

;

"still less do such structures

vestors

its
,

assets

of

to the distribution

dividends."

distributing

then

and

Jesse Jones told the Senate

merce

of accumulating too

capitalizing

ture

.

-

by simply re¬

economy,

.

;>;;debt and heavy service charges,

effects either to investors or to
our war

-

.

.

policies should Banking group on May 8 that as
be adopted which would mini- a result of the Government's
plant
.-"mize certain known and un¬ expansion program "it looks like
necessary risks su^ as:
\
we
are
going to have
ample
The risk of amassing a huge aluminum."
Reporting his testi¬

in¬

production. Plans of
distribution may be worked out

-

Wartime fiscal

vestments in Government bonds
or

He said:

a

not absorbed

are

diverted

or

Mr. Burke also made the

of obstacles

"For RFC War Activity

And On Lower Incomes

port¬

"Simplification of the corporate and financial structures of many
holding company systems is highly desirable, if not essential,
if they are to stand a reasonable chance of survival during this war
and the period of reconstruction to follow,'' it was stated on May 6
by Edmund Burke, Jr., a member of the Securities and Exchange
Commission, in addressing the 22nd annual conference of the
National
Association of Mutual^
sion has given full right of way
Savings Banks in New York City.

P't

More FuMds Approved

UrgesHigherTaxes,

taxes

would

$20 to $30 billions
an

.

.

.

amount sufficient to enable the

Treasury
of

yield another
".

per year

to

reduce

borrowing which

desirable in

a

the

margin

seems

period such

as"

to

be

this."

Volume 155

Number 4072

THE COMMERCIAL & FINANCIAL CHRONICLE

^nter Wheat
.

■v

As Of
yJ,

May I

3.6%

" The Department of Agriculture; at'Washington On May 11 issued
report as of May 1, 1942.
The report shows the abandon¬

its crop

ment of winter wheat at
at

3-3,319,000

1940.

Last

12.9%A

acres

the

year

This

as

6.3%, leaving acreage remaining for harvest
compared with 40,313,000 acres harvested in
abandonment of winter wheat acreage was

year's production

of winter wheat

is:now

estimated

at 646,875,000 bushels, which com-^

with

a

569,417,000 bushels.

report in part:
General

g

Report

>

£ 'V

-

On May 1 crop prospects on the
above average ex¬

in

cept

April

a; few

States.
During
growth in a large east¬

crop

and southeastern

ern

tarded

by

weather.

area

dry
west frequent

over

delayed farming operations
a
large area that stretches

more

than

central

a

thousand miles from

North

Dakota

central

to

Texas and bends westward in the
middle to

Bowl."

iii

both

In

towards

areas

return

a

normal

more

further

would

the former "Dust

cover

weather

the

improve

tional crop prospects.
There is a dry area

na¬

more

in

south

rain would have

been

helpful in Idaho and sur¬
rounding States but in the Great
Plains, where adequate reserves
of soil moisture at this

season

are

need rain

East/

largely

-

In

in

some

much

Atlantic

the* need

is/ urgent
yield prospects will decline
rapidly unless rain comes soon but
even
in * northeastern:
States,
areas

and

not been seriously
May 1 and prospects
still for a national yield of

growth

-

checked
were

,had
to

tame
hay per j acre somewhere
around the average during recent

years,.

excluding drought seasons.

small increase in
acreage this suggests
that tame
hay production still may be about
the same as last year.
Moisture
Allowing for

conditions

a

far have been favor¬

so

able for; wild arid prairie hay in
the Great Plains States, and an¬
other large crop is probable. Con¬
ditions

"

Texas and

which

States

crops

the

Coast

re¬

was

rains with local floods and storms
have

of

unseasonally

Farther

Belt

t Hay

whole seemed

1

Corn

determine the national output.

Of

As

May 1, 1842

,

ern

•'

Crop

conditions, prospects.; at
seem good in both east¬
and western portions of the
dry

this time

Below is the

less

than "last. year's
13.6% above, average,

vested',/ from.1 volunteer

acreage

as

lar

also

appear

favorable for

growing a large tonnage of sorg¬
hum
forage in the
Southwest.
Stocks of hay on
were

little

a

farms

over

on

ago

parts of the country are

and

crop

yields last

year were

the highest on record.
'Pastures

and

:

have

ranges

a

good start in most States and on
May 1 were reported in better
condition than on May 1 in any of

large this

good

and

fair yield is now indicated.

Early

.

In

.

able

prospects

grapes,

.

infestation

for apples,

cherries, plums and

pears,

prunes

but /in/some/North^

rain

cool weather in

/

/;

■

;

:

have

1

in

were

Production is forecast

Minnesota

(1931-40)
the
1,307,420 acres,; The
greatest increase this year is ex¬
pected to be made in the acreage
planted to tomatoes for process¬
ing, for canners and tomato prod¬
ucts manufacturers plan to in¬
crease this year's - planted acreage

asked

early
to

March

increase

farmers
plantings

recent survey in the princi¬

pal northern States indicates

some

increases in Idaho, North Dakota,

Michigan. Wisconsin, and Maine.

ceding

10

years

average was

marked
feed
:

area*

where

harvest .has. started,

and- in

Eagle-Lake

area

Wharton-

harvest is expected to start about

{ Feed grain production should be 29% over 1941.
Green pea pro-\ May 10. ; Harvest of/ the Lower
fully up to normal. Notwithstand¬ cessors rank second with a 26% | Valley crop is about over.
Cool,
wet weather has been
ing the vspesawing, between - wgt increase.-{v
unfavorable
nf. v* j.




:

x

and

range

generally

were

in our present1
world, have been found to be two,
he asserted: First: Money incomescreated
through the process of
production and distribution must;
be

sufficient to

buy and

pay

for

virtually the entire for-sale prod¬
uct. ; Second: Those money in-;
comes
must
be
used
regularly,
fully and promptly/directly or in¬
directly, to buy and pay for cur¬
rently produced goods and serv¬
ices.
Otherwise,
there
is
no
dependable market to keep the
profit motive in productive activ-;

ity.

Murray Again Heads
N. Y. Cotton Exchange
Robert J. Murray has been nom¬
inated for

of

third

a

term

Presi¬

as

dent of the New York Cotton Ex¬

change, it

The average' May 1 condition

of

normal

May
for

livestock,
compared

1

last

the

The

was

with

7.

was

announced

Alliot

Eric

has

May.

on

named

been

says:

and only ,73%
1931-40 average.

1,

condition

average

dairy
obtained by

May

teen

"

<

.

:

In

the

address

an

Conference

presented before
Post-War

on

:

/;

Re¬

known

only

as

art, could

an

transformed into

by the use of the principles of
a
self-feeding capitalism.
Just
how

Dr.

Goodbar, economist, at¬
and author, would bring

torney

transformation of

the

about

nomics into

an

exact

eco¬

science,'was

According to Dr. Goodbar, post¬
reconstruction

real

"new

perity,

if

era"

of

can

start

lasting

members

of

the

has

Hensel

Trustee

as

been

of

the

Gratuity Fund for a period of
three years. James B.
Irwin,
James C. Royce, and John R.
Tolar, 3rd have been nominated

/

for Inspectors of Election.

;

The annual election of the Ex¬

change is
and the

be

to

new

held

June

on

officers will

their posts on June 4.

1

assume

The

nom¬

inating
committee
consisted
of
Clayton
B./ Jones,
Arthur .J.
Pertsch, Charles B. Vose, John E.¬

Layton, and William E. Farnell.

a

pros¬

principles of

the

Pertsch

Smith, Eugene Bascho, William C.

explained in detail.
war

J*

been

D.

nominated

be

exact science

an

have

Herman

construction at the University of

Minnesota,
in
Minneapolis, on
May 8, Dr. Joseph E. Goodbar,
speaking on the subject, "A SelfFeeding Capitalism," made the
statement that economics, hitherto

the

for

have been

renominated,
these being: Bernard J. Conlin,
Milton
S.
Erlanger, J. Henry
Fellers,
Tinney
C.
Figgatt,
Richard T.
Harriss, Frank J.
Knell, Jerome Lewine, J. Robert
Lindsay, Elwood P. McEnany,
Perry E. Moore, John H. Scat-1
terty," Charles Slaughter, and
Philip B. Weld.

.

Economics A Science

present

Board

1, averaged 182%

of normal.

Managers

and Mervin S. Van Brunt. Thir¬

on

•

on

of

nominated,, Arthur

y

Treas¬

as

members

new

Board

the condition of pastures in those
States
where
milk / cows
were

grazed

term

/ Vv/y /"'y^y'

_

Two

of

third

a

The announcement likewise

urer.

on

year

May

for

ated

83%. of
84%

pastures, which is
placing the greatest emphasis

Egyptian Sugar Crop Less

real

Cane sugar production in Egypt
during the current '1941-42 season
is estimated at 168,000 long tons,
would be:
/ /
raw value, as compared with 173,First: A full and virtually
000 tons last season, a decrease
complete sale, at a profit, every
of 5,000
tons, or approximately
year, of all production intended
3%, according to advices received
for sale;
science

economic

the

,

.

/
'*

Second:

Third:
reasons

/ business

_

benefits

.

,

Resulting

this

from

dependable market, the demand
for workers would rapidly ex¬
pand until practically all will¬
ing and competent persons have
found dependable jobs:
•

-

-

effectively

are

Among

applied.

the

where

improvement

prospects

types

peak

Antonio

/,•

Vice-President,
to
succeed
pasture for the United States, ob¬ for
combining State figures Gustave I. Tolson, who has en¬
according to the importance of tered the military service, and
pasture in furnishing feed for all William J. Jung has been nomin¬

is practically complete.
In
Texas, conditions are fairly good
San

y

tained by

crop

the

any

favorable.

while harvest of the South Florida

in

in

April rains supplied
needed moisture.
In the Western.
States
pastures
also
showed

are

month ago. Shipments from North
Florida are approaching a

than

v

conditions necessary,

The basic

but largely absent

However, pasture

Texas where

below the 10-year average because
of a reduction in acreage for har¬
vest.

the date

since 1934.

condition improved in many South
Central
States,
particularly
in

situation

Wisconsin

for

poorer
year

prospects

and

con¬

dition in 60 years of record, while
those
in
North
Carolina
were

at

Were

tend to increase, now seems likely
to be about 3% larger than last

reported at the poorest

were

.soil moisture

for

average

May 1 were generally suffer¬
ing from lack of moisture which
approached drought proportions
in some areas.
Virginia pastures

Rye

the

above

on-

unusually good in the western
two-thirds of the Nation.'

1

sections west

Pastures in Southeastern States

are

May

well

were

desire. .■/// •

of

earlier.

weather in April, it is still heavy,
and moisture reserves in the soil

on

some

because

time .of year and. were in
almost as good condition as a year

only two years of
higher yields since 1909.
While
growth was retarded
by
cool

Rye prospects

development

this

There

been

excellent.

Eastern States and

many

of the Rocky Mountains, pastures
for the country as a whole on May

The indicated yield on May 1 of

lent prospect for the
crop.

in

delayed

17.8 .bushels per acre7
(harvested)
is further evidence of the excel¬

North

tables in 1941 and during the pre¬

,

spread into northern
Oklahoma and Kansas but damage

principal iayj6rabie;f/vF^

show rather favor¬

sections

,

.

there has been* slight.

and

reports" from

fruit

which farmers did not at first in¬

a

Fifth: We could apply these-.
principles to revive and sustain
'. the prosperity of the whole

^

.

and

j /
; u

.

-

were

a

,

.

In

planting time. Plants
growth during April

made

,J; ers to be shifted from one job to
another;
.////

.

Central States peach buds
Oats (Southern States)
badly damaged by winter
The May 1 condition—58%—is
and
spring
freezes.
In
the
South¬
the past ten
years
except last
•10 points below average and 23
ern
States another* large peach
year.
With numbers of produc¬
crop,-somewhat short of last sea¬ points, below- May/ 1. last year.
ing livestock and poultry above or
son's record output, is in prospect. Prospects are that this year's pro¬
approaching previous peaks, and
duction of oats, in the Southern
large reserves of grain and hay ], Natiohal supplies of. commercial
•States/ will be /materially belqw
on hand,
the production of live¬ vegetables for market are likely the
10-year average.
In Texas
stock and livestock products seems to be moderately above those of
and Oklahoma, damage by
"grepn
likely to continue outstandingly last year. The lack of rain is now
bugs" 'is'"' causing extensive loss.
heavy
for
some
time.
During being felt along nearly the whole There was excessive
moisture in
April milk production was 4% length of the Atlantic and Gulf the oats
producing districts/: of
above
production in April last Coasts and there have been some
Oklahoma, but; about a normal
year and with 14% more hens egg delays
from cool weather and amount in Texas. • These States
rain in West Coast trucking areas. have
production was up about 17%.
well over half the acreage
Forecasts for individual crops The vegetable yields, per acre esti¬
of oats in the entire. South.
In
can
be only approximations this mated to date however average
North Carolina,
South Carolina
early in the season but no signs somewhat higher than in most re¬ and
Georgia, the oats need rain.
of shortage have
The
increase
in
appeared and cent seasons.
Farmers in these States are re¬
fairly heavy production of most labor, costs is being felt in some ported to have seeded
,58%
of
groups of crops
still seems the vegetable producing areas.
This their oats last fall and winter—
most probable outcome.
may
reduce / shipments more continuing the trend
away from
The area sown to winter wheat quickly
than
usual
if
market spring
seeding.
\
was the smallest, except for one prices
decline.
The prospective
Early Potatoes
year,
since 1914, but with less production of vegetables in States
abandonment and
a
The condition
higher in¬ usually shipping during May is ;
of
early Irish
dicated yield per acre than in any about 22% above last year and is potatoes in the 10 Southern States
of the last 10 years production well above average;
and California on
t :
May 1 was 78%,
is now expected to total about 1
An
expansion'of about 20% slightly better than on April 1,*
and
647,000,000 bushels.
This is 22,- over 1941 is in prospect for 1942
equal to the 10-year (1930-39)
000,000 bushels above prospects in "the aggregate acreage planted average;1
„
/ r: /
- ; .y
a month
ago and would be only to
important truck crops for proc¬ / In , Kern
County,
California,
24,000,000 bushels less than the essing.
If ■ commercial
proces¬
harvesting has - been proceeding
large croo harvested last year. sors carry out their early season for at least* two weeks.
Cool
The principal spring wheat areas
plans, the acreage planted to 11 weather has retarded development
have also had
good rains, and vegetables for canning, freezing, but has enabled
growers to delay
prospects
seem
favorable. :Rve or other processing will reach the harvest for better sizes. The con¬
shows prospects for an unusually record
high level of about 2,000,- dition in Florida on May 1 was
good yield on a large acreage.
000 acres.
A total of 1,693,230 17% above the 10-year
average
acres
was
planted to these vege¬ and considerably higher than a
/ The
acreage in
late potatoes,

year.

are irregu¬
result; of too

a

.

May 1

compared with nearly 13,000,000
last year and 11,000,000 to 16,000,-

.

as

In the Georgia

11,000,000 tons

northward:

most

much like what they were a year

late

much rain at

.

ih

and

even; £ temporary
shortage * of
jobs, would merely cause work-

.

'

~r *

Alabama, the crop needs rain.
outside world, or any part of it;
potato areas yields
year in Kansas and parts of ad¬
willing to apply the principle,
:
have
been
cut
by
dry weather
or
we
could
joining
States. / Remaining
for
produce
lasting
harvest are 3-3,319,000 acres, ap¬ during the past 4 weeks.
The
prosperity in our own boundar-/
South
Carolina
crop
developed
ies alone.
proximately 8% less than last
;,/y
/'-'•// (■■■'■■y
during
the
latter
year, even with the much greater satisfactorily
Achievement of those results,;
reduction in seeded acreage. Win¬ part of April but recent weather
Dr. Goodbar stated, becomes a
terkill arid prospective abandon¬ has /been too dry.
Potatoes in
necessity of economic science, just
ment, estimated at 6.3%, are low North Carolina and Virginia have as
production
of : water; from
because of the continuously favor¬ made favorable growth and gen¬
hydrogen and oxygen is a neces-Z
able■ moisture supply : in" most of erally are in good condition.
No
sity of chemical science, when ap-/
the
States
through the spring. drought damage has been re¬ propriate Conditions are applied.:
'
./ ; J
.
Abandonment ; was ~ heavy
in ported.
The
profit motive, natural re-;
Pastures
Illinois and * Missouri where the
sources and human beings are the
Wet fall hindered
Prospects for abundant feed main economic ingredients in¬
seeding opera¬
tions.
Greenbugs caused severe from pastures this spring are gen¬ volved.
Economic science con¬
damage in* north; central Texas erally good in most parts of the sists in
providing conditions suit¬
and south*central Oklahoma/ The country. •
Despite the need for able for producing the results wewhich is expected to be

53,279,000 bushels, the largest
protection against
000 tons in other seasons since the
crop since 1938/■ The acreage re¬
summer drought, moisture condi¬
droughts. .Allowing for stocks on maining
for
harvest
3,776,000
tions
appear
better than
they
hand, and for further increases in acres is the largest since
1939, and
have been at.: this season in a
livestock it seems likely that sup¬ the indicated
yield of 14.1 bushels
dozen
years.
Eastern moisture
plies of hay per head of stock will per acre is the highest since 1935.
shortages are locally serious and
be plentiful again this season in Indicated
production, acreage and
disturbing, particularly where
the western Corn Belt and Great
yield are all well above last year
moisture for germination is lack¬
Plains States, and probably about and. the
10-year
(1930-39) aver¬
ing and where the growth of grass
saverage in the eastern Corn Belt age.
:
in pastures and meadows has been
and
west
ofV the Rockies.
But
Prospects are excellent in
checked, but the season is early
they
are
uncertain
and
now
North Dakota, South Dakota and
and major crops with the possible
largely dependent on May and
Nebraska;
where winter loss of
exception of hay are not yet
early June rainfall from Virginia
threatened. ? Growing conditions
acreage was comparatively light
most needed

the, northeastern

Stands in Louisiana

v

,.

crop,

but
j The
production allows for wheat har¬

potatoes/in

section \>f Texas."

'T

and

harvest of 671,293,000
bushels last year and an average
10-year (1930-39) production of

pares

for

;y,

The indicated production of win¬
ter wheat- is 646,875,000 bushels,

1869

be

There

for

would

be

no

depressions, and the

cycle would therefore

-traced

by

rising
slightly undulating line;

"Fourth:

.

but

a-

Technological

-

by

Lamborn

from

-

provements,* instead of causing

&

Co.,

It

is

York,

New

added. .that

usually,

harvesting

of

commences

in December and ter¬

minates

in

the. crop

June.

Egypt's

home

production, which is controlled by
one

company

under

Government

regulation, is sufficient to supply
its local

<

im-

Cairo.

requirements. Last year's,

consumption amounted to 147,000
tons,

j4-*,--

•

j111

«

•

•••♦.

■••

'•

From

y

COMMERCIAL & FINANCIAL CHRONICLE

THE

1870

U. S. Credit*Resources

Sound Labor Policy

Washington;

(Continued from First Page)jV
an
ambitious
undertakings
it
be

would

natural

only

that

we

broader
If the geography of the

should now apply it on a
scale.
relative

positions of the North and
South in this one country can be

turned

upside

jiggled,

and

again

and
then

down

v

back

why

shouldn't the world map be done
the

way? :i

same

that
of Miss

I have forgotten

.

to tell
ingredient

essential

the

Perkins'

success

discov¬

at least her statement, that

ery, or

Southerners;; did

the

you

the

was

not

Rubber From Grain
"The greatest menace the utili¬
ties
face
today - is
greatly in¬

the

York, who on May 6 spoke in par¬
ticular of the stability evidenced
by the industry in flush times or
the reverse at the Conference of
Mutual
York;

New

situation faced

the

to

in

Banks

Savings
As

*

utilities incident to Federal
taxation, Mr. Kellogg said:
by

wear

this

"In

Well, if you forced shoes
people, they would have
to buy those shoes from the North
and the sending of those shoes to
the South and the sending back

In 1941, when the

the

over

goods and vegetables to
in payment of these

previous

of makers of non-durable

those

Association

National

National

the

of

synthetic

of the economic conference

York

leaders.

tee

of

Association

Mutual Savings Banks, said:

29%,

;

to

of

wide labor

Stocks of

*

the

available

large

material

Roosevelt's

spite of President

and wheat "as

corn

for

reserve
raw

|

;

;

the

reduced

v

net

idea which Henry
Wallace enunciated at a meeting
It

if

which launched a new
organization and a new magazine.The purpose of the two is to pro¬
mote free trade among the nations
after
this
war.
From
Henry's
words it is inescapable • that we
are
out to put shoes on the In¬
dians, the Egyptians, the Mandalayians, the Indo-Chinese, the
Malayans, even the Japs; if they
Will ever
lay down their arms
and enter into our integration of
meeting

Reserve
::

should

that

told

be

aside

their

civilization,

"This

result

standing of
which

ice

the

1

\

-

*

,

great public serv¬
is not operated for.
a

feasible

lowest

essential

size

ting

could

tell

you

electric rates

"De¬

so

happens that

used

to

as a

me

as
•

or

alcohol

production,

r o u

g

h

■

at best, can only restore
purchasing power that a;
X rising
price
structurehas
the

at

added:

cal

\

metals.

in. computing

annual

industry;
r

stocks

this
the

in

as

240,000 tons of syn¬
processing facilities would be a limiting factor,

taxable

as

that

are

an

the

capital
essential part of
their

actual

cost

of fur¬

be

to

■;

the

probable

excesses.

describe

the

'

production by many times that

£

amount.:"h'A.•

supporting data, have been

-

The

war

extended its effect to

They ture's announcement of amended
and

coffee

for rough,

standards

tification should be made with-

,

in 24 -hours of -the time the cofv

fee arrives in this country..

as

savings
physical effort.

I

,

*

..

PearjL, respectively. These changes
said

Department

the

were

of the rice
Other amendments, it

quested by members

and I believe that we cam industry.
count
upon
an
understanding is indicated, provide a more
gress

treatment

culties." '•

.

of

our

XzX

special
'

diffi¬

re¬

ple and more
official

sim¬

flexible form of the

standards.

;;

~.'

This will fol-;

or

programs
v

[

;

be'
placed as equitably as possible
or, in the end, it will throw;
our economic machinery out of!
adjustment ' and
disrupt ' our
forces of

and

must

production.

the

In

burden

the

But

matter

self-denial

of

unselfishness, let

est in

our

conduct.

us

be hon¬

The ration¬

program
now
in
would in many instances

ing

if hoarding

severe

the

effect
be less

and selfish-'

had not been the order of

ness

;

A rush to escape the
is a definite

day.

sacrifce

common

contribution to the cause of dic¬

tatorship.
in

We

.

the

credit

fraternity,

definite and impor-;
tant part to play in trying to
bring stability to these prohave

v

a

very

We must have the cour-

grams.
age

1If

to play our part.
we

that credit is to be;

see

restricted in open accounts, we

i

can

that

only object in case we see*
the restrictions will not

accomplish the objective, name-1
ly, curtailment of purchasing so
more goods will be avail-,
able
for the "war effort and

that

man

more

armaments.

present," Mr. Townson ards/which become effective May
"WPB will make % this in¬ 15, also change the subclass names
available to- any .-. pro¬ Japan and California — Japan to
spective coffee buyer who wishes Southern Pearl and California!
to inquire." ■■■•;!.f; '■■!■:
^ Vv;* •;:

brought to the attention of the
appropriate committee of Con¬

.

-

goods,

amendments to the

formation

our.

can

the mili-

in

be
-

low, whether the sacrifce takes
the form of heavier tax bills,
restricted
use
of
peacetime;

brown, and

said,

soul

call for sacrifice.

According to the De¬
of
Agriculture, - the
official stand¬

Japan.

partment
.

sacrifces, how

and

ple that the burden is equally
distributed
according to their
ability and they will meet any-

:

gue

power

devoted

to;
v

•

cannot in this period ar¬

We

"For the

-

are

Convince the American peo¬

*'•

American Pearl Rice

i Now

*

-

make

tary struggle?

should specify the amount - of, milled rice, including substitution
excess, the port of arrival and of the-name American Pearl for
the name of the ship."'; This no¬ the class of rice formerly known

exempt

excess

monly understood in industry
generally.
These; suggestions,
with

of any

should

:

utilities
profits tax,
since, under Commission regu¬
lation, they cannot have 'excess
profits' as the term is com-

K

that position are inyited to; Federal- rice standards on May 6
notify the Food Supply Branch with the Department of Agricul¬

average

capital structure and hence
charges upon them are a

would

may

in

de¬

nishing service. Another method
from

willing;

heart

production

Beyond

ofr about

Roasters who find themselves

capital per dollar

sales

part of the

no

-

Unless

do defend it and

to

thetic rubber,

coffee, said the
announcement,: which

-

be defended at all costs.
we

distilling

existing

of that

part

Board's

upon

much fixed

of

transit

in

no

end,

plants, converted to high proof
alcohol production by the use
of a minimum quantity of criti-

•

therefore be unable to accept all

the theory that
the utilities require eight times

have to put my




ways

dividends

common

income,

youngster

end to
nickel in the Bap¬
tist missions collection box to help
the Chinese—we were taking our
"rightful place" in world affairs
that early. But now, like it or not,
we
are going
to have to supply,
not only them but all the other
peoples of the earth with shoes.
gripe

;

•

various

are

ductions

there is nothing that can be done.
It

correct

coffee

in;

of

period for the per-'
capital.
I do not mean to suggest that
it is no period for thrift. Sav-,
ings ware never* more • essen-v
tial.
But those savings in the,
This is

.

...

preferred dividends and estab¬
lished

mocratic" South voting for them,

it

Townson, Chief of
the Food Supply Branch of the
War Production Board, said on
May 9 that WPB is willing to aid
coffee roasters in disposing of ex¬
cess
coffee
imports.... Under an
amendment to the coffee order,

have

interest

manent accumulation of

■

Douglas C.

who

of;

laws

,

t h

One of these would be to allow

Henry and his crowd have
the world by the grips.
There is
no apparent chance
of unseating
them.
As long as they have the
Eastern
European
immigration
bloc of the highly industrialized
Eastern states, together with the
Solid

/"proof

.

which the special difficulties of
the utilities could be obviated.

sophisticated;

the

needed to

as great as the re¬
they actually would afford.

"There

v

possibly be?
I'll
and' it is an amazing

and

cent

10 times

or

lief

it

bloc

excess

per

for taxes would have to be nine i

thing.

colored

and

in

measure

economic

of

] - ously make it all-inclusive;

just issued, a roaster's inventory i V
Supplies
of raw
materials—
of green coffee may not exceed a
wheat and corn—are sufficient
latory route; for, with the tax
two-month
supply.
Some
roasters
rates
for expanding synthetic rubber
approaching
90%,
the

be, and what will
> We are get¬

right

be

to

rates

v

Federal taxes by the rate regu¬

Henry have to sell?
what

income

tax

it impracticable to solve
the financial problem of the
utility, arising from the size of

the; perfect world
is
achieved,

we

the

makes
V

ambition
will

where

of

profits

Henry Wallace is a free trader
things—but I am won¬

after

war

electric

"Strangely enough, the very

in

—in many

his

power

industries, and
utility industry in
this country furnishes 7/8ths of
the total public supply.

writer.)

of

electric

role

plays in all
the

ballast from Aus¬
tralia, the great wool growing
country, after transporting some
6,000 soldiers, and our eliminating
the cuffs of trousers, a tremendous
sacrifice, to save wool. (The par¬
ticular
ship and record of its
voyage are definitely known to

dering,

strongest

keeping the utili¬
ties strong upon account of the

Maybe it would be such a crazy
as that of a ship recently

.

the

incentive for

situation

this

effort, the

war

has

Government

world commerce?,

returning

with its

nection

con¬

some

the most (

ready to'

defending our'
economic system.
Hence,, we
must stand back of a price con-;
trol program, constantly correct
its
weaknesses; and couragethe

;

-

projects
In

crisis,

advantage."

least 200,000,000 gallons of alco; hoi for
making butadiene could
labor;
But
it
does
want a
f; be produced after allowing for
sound labor policy and it wants
production of alcohol for war
this labor policy decided demo¬
j-purposes. It should be undercratically by Congress. ;: It does v" stood, however, that production
not want long drawn out delays ? : of this
total quantity of alcohol
while appointed—not elected—
would require complete mobilindividuals, try to build a na¬
X ization of the entire alcohol intional policy, company by com¬
dustry.
pany, day by day, and month
0
About 80,000,000 bushels of
by month.
\
wheat or corn would be reCongress! should decide once X quired to produce 200,000,000
and for all whether our Army
1 'gallons of alcohol, which in turn
and
Navy
are
going
to
be
jf could produce 220,000 tons of
equipped with all-out produc¬
butadiene.
This would
make
tion by industry and labor, or
approximately 240,000 tons of
only with goods stamped; with .-.. synthetic rubber. That is the
a union label.
1
% * h
approximate volume of
syni I'thetic rubber production which
could be obtained from grain
To Aid Coffee Roasters

just sufficient to attract
new
capital to the business.
This service - at - cost principle
clearly is recognized by the
Federal
Government
by
ex¬
own power

-

be

'

Management does not seek to
nullify any existing gains, for

turn

from all Federal taxes.

in. this

"undue

no

-

in

violation

even

must

liquidated.
the raw ma¬
In
addition, they must be,
terials— corn and wheat — are
dedicated for use during^a re-;
readily at hand. Considerable
expansion of facilities for mak- | adjustment period. We are face
to face with the. proposition of
Aing alcohol out of grain is pos¬
not only
saving our
way
of.
sible in existing plants with the
life,
but also of saving ourr
/-use of relatively small amounts
life's savings.
Whatever accu-?
; of copper and steel.
Available
has been the reward:
J i data indicate that if existing 1 mulation
of thrift and of industry should
J
J' plants were converted to high

danger?

Management,
seeks

utility picture by the im¬
pact of regulation by the State
Commissions, one of their func¬
tions being to limit the amount
earned by the utilities to a re¬

empting its

-

in this hour of
•

of butadiene.

And

war.

have said,

As I

much the services of others may

the

if

^reduction

i be needed.
I ask you—is that
what the American people want

thing as 'excess profits' has
been constantly eliminated from

*

union has been put * ahead, of

does

acquiesce

-

f European countries for the pro-

con¬

a

We do not wish these unnat-'
restrictions
in -• eras
of!

conservative

) .'to be produced from ethyl alco-

Allies need.., Loyalty to

and

costs

of

so

.

allocation for a
substantial amount of butadiene

•

food

part

;

an

a

production line, no matter: how
i

already

of

are

peace. We recognize they vio- v
late sound economic laws—but!

upon

not

good standing have the right to
defend their country upon the

Such

cost.

our

is

loyalty to the nation.- In such
shops only union -members in

obviously is not

that gives me
pause about Henry's undertaking
is this: He promises that we are to
help industrialize India, Egypt,
China,, all the rest of the nations
of the globe.
Then, where in the
name
of Heaven, would you get
your

ta

a

thing

only

The

and

place in util¬

people they are.
V

.

profit, but to produce a neces¬
sary service for the people at

democracy-loving

professedly

r

•

question of draining off warproduced excess profits but of
seriously affecting the financial

they do not go in for these things,
then you wonder just what sort of
a

made

* are

It

ders.

a

from

so

take

ity net income.

insisting that they wear shoes., we
intend to-"integrate" and to "co¬
ordinate" them.
To be integrated
and coordinated will undoubtedly
enhance

for

proposals

rates

tax

would

1941

that '; they

think

Treasury

Corporation

has; made

J

earner,

r

t

war orf:; hoi, and that a plant for this
question of
f: operation is under construction.
ability
to
help
produce the
I ' Alcohol has been used in Rus¬
goods our-soldiers and-*sailors
sia, Poland, Germany, and other

1

further reduction of 30% below

purposes and desires, and also co¬
ordinations. In fairness to all the

beseeching,r I

In 1942,

by 3.3%.

effective, it is estimated that a

-

,

foreign people whom we are now

the

increased

It was a

New York recently.

in

stockholders

the

was

plants, to work

for

income

~

*

testimony

I understand that the Rubber

\

'

put into effect.

Wickard's

follows, in part:

wage

.

ural

rubber.-

pi Secretary

It

trolled economy.
K

<

.

the

miss

can¬

spheres if it

uncovered.

the'
farmer,
or
the
extremely i
wealthy. Limitations of profits
are part of limitations of wages.

butadiene offers the

possibility :; of greatly in¬
urging that no group take "un- best
due advantage" of the situation creasing our production of syn¬
to
further
selfish
interests. thetic rubber as early as
next
Certain
Selfish
labor ; leaders year."- He urged that at least 80,seem
determined to clamp a 000,000 bushels of grain be used
closed shop policy upon indus¬ in* the manufacture of synthetic

the
9%.

and

i

f

the middle class f

cannot apply to

Limitations

of the war to create a nation¬
monopoly.- This, in

fourth

a

rationing

determined

advantage

Forestry
farm crops
and syn¬

leaves

thetic rubber, Secretary Wickard
Said he believes that using part

f

take

of

uses

A price control program
not work in three

Agriculture and

on

|

seem

v

'

to be successful

are

in production of alcohol

labor

utility gross
shoes, constituted commerce or
!
grew
but
Despite
the
activity.
,
;
f;
higher rates for Federal taxes
;
You can't escape these things
in that year, manufacturing inand it is amazing that no one had
try, regardless of what the cost
dustry as a whole, with its great
ever
thought about it before.
I !•',.- increase in volume, was able to H may be to our victory effort;1!':
insist that Miss Perkins should
The closed shop, being forced
pay these higher tax rates and
get credit for the elaboration of
still show a gain of 20% in net I
Upon many industries' by those
her idea.'
It is the idea which
who are taking "undue advanincome for stockholders.
With
BEW, Board of Economic Warfare,
the utilities, however,- the in¬
tages," means, for: one thing,
headed by Henry
Wallace, has
that only paid-up union memcrease
of 67% in their Federal
now sounded off that it intends to
bers
are
permitted, in many
income and excess profits taxes I
goods

we

rubber

investigating

-••••;

Certain

|
and |

year,

the

(Continued from First Page) v.
mands, should escape this sac¬
rifice—nor can they escape it if

;

during the cal¬
of Manufacturers,' and President endar
year
1943," Secretary of
of
the
Curtis
Publishing- Co., Agriculture Wickard declared on
Philadelphia,
in" addressing on May 8. Testifying before a sub¬
May 6 the opening session in New committee of the Senate Commit¬

49%

increased

manufacturers

of

man

goods

durable

of

sales

gross

Prosperity Keystone

V- Asserting the willingness of in¬
"Immediate attention should be
dustry to do tis full part in the given to' expanding the present
war
effort,
and appealing rfor program for butadiene production
equal cooperation by all v labor from grain alcohol so as to make
groups, Walter D. Fuller,. Chair¬ possible
greater
production
of

stability

handicap rather

a

help.

a

their

case,

be

to

seems

than

North

the

W. Kellogg,

Charles

those

of cotton

taxes,"
s a i dj
President of
Edison Electric Institute. New
Federal

creased

shoes.
on

Thursday, May 14, 1942

about

dictatorial

,

fine--

points because, facing dictators
on the field of battle, our democratic way must be
flexibleenough to permit, for a limited

period
V.? sterner

And

if

of time, the
use
of
policies and practices.
we

join in these efforts

these hardships, then
the right to demand*

and accept
we

have

return to the peaceful way of
life we have known.

./a

.Volume 155-

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4072

Cash Gifts Aid War; Effort

OPA Seeks Financial

A

Data From Gorps.<
p A

general

financial

reporting

designed to provide basic

program

.financial

data

for
studies of price control problems
in

:

necessary

industries where
information
is
not

ade¬

many

quate

available

instituted

was

now

May

on

.2

flood

of

donations to

effort,

IM Commerce Chamber

cash

unrequested

on
April 28, was described by
Secretary Morgenthau on May 3,
as an impressive demonstration of
the virility of the voluntary spirit

American life. : The voluntary
principle is the basis of the Treas¬
ury's new quota campaign to sell
in

by Price Administrator Leon
Henderson.
Reporting forms and $1,000,000,000 worth of War-Sav¬
an. instruction book
requiring bal-: ings Bonds every1 month.
The
ance
sheet and income account
Treasury Department in indicat¬
data, were. sent May 10 to about
ing this on May 3 said; * « • - .25,000 business corporations, with
After consultation with lead¬
over
$250,000 assets each, en¬
ers in labor, industry and 'agri¬
gaged in manufacturing, mining,
culture, " Treasury officials beconstruction, wholesale trade, re¬
came convinced that the people
tail trade and related fields.'; The
of the nation would prefer an
announcement from the OPA also
opportunity to subscribe volun¬
states:

Frederick
of

the

Bank

•

The

initial

annual

.financial

report (Form A) and the first
interim or quarterly financial
report (Form B) of companies

t

;

using the

calendar

must be filed

year

ing such purchases.
The con:
tiiiued waves of outright con¬
tributions to pay for the tools
basis
Vof vwar have strengthened, this

with OPA within

30 days after receipt of the re¬

If the fiscal

quest.

J

year

to be

covered by the initial annual

'

report is other than the calendar
year, the report must be filed
within three months of the close
of the fiscal year or within 30

days

.

—

later.

and

whichever date is the
All

subsequent

interim

filed within

reports

annual

are

to be

months" and

three

*

one

month,

respectively, after
period covered.
None of these reports need be
certified by independent public
the close of the

,

.

tarily to the War Bonds rather
than resort to legislation requir¬

conviction.

initiated

the

quate financial information

on

large numbers of business

en¬

terprises affected by price

ac¬

tion.
come

were

The 1940 corporation in¬
tax returns show there

were

retail

in the

trade

wholesale trade
or

in

or

manufactur¬

can

ual checks.

State of New York.

who

The amount is

ex¬

for his

Hamilton

National

;

mittee of the

•

American Bankers

almost

effort and sacrifice of

a

people.
At

the

time

same

ped with rubber tires

tons

7,"

"

Co.; Andrew
J;W. Robertson, V Chairman
of
Westinghouse Electric Manu>; factoring Co. and Frederick E.
^;•;WaHamsph,•• President of New
York Central Lines.
*
Vice-Presidents • elected
for

war

minds

ings

Bonds

designed

.

were

particular

three

terms

year

fill

to

Treasurer

for

the

last

existing

15

T.

j

.

,

Committee

!

Agriculture

WaS-Healey Actj

the two in according with respect
to wages and hours received final

Congressional
the

action

House

minor

Senate

House

had

on

May

concurred

4;

in a

amendment.

The

1939

and

of

the

Pan

which is the

largest private

in

of

expressing apprecia-,

In

1

fill

carry

a

before June 1.

Army, Navy,

the

Maritime

Lend

and

war

Lease

-

for which

program
or

other substitutes
are

impractical,

specified

items

and

power

and

cranes

Chairman of the Committee to
:

cept

an

appointment

as

-

on

adoption
measure

ac-

enntraefq on
on
that baqiq because
contracts
that,basis
because

financial

consultant to the War Production
Board.

The

•




■»<

■

r

the

weekly hour

by the Walsh-Healey Act.

■

<

also

have

a

quota

upon

"Then

for

indi¬

viduals, widely publicized in
cent
months,
particularly
States

in

vasses
war

which

been

nave

bond

systematic

re¬

in

can¬

conducted

committees.

by

Roughly,

he

said, this individual or per¬
sonal quota can be said to
average
10%
or
more
for
all
income
Actually, it is somewhat

lower for
comes

persons with small in¬
and, naturally, higher than

in the

case

of

with

persons

larger incomes."
Describing the
far-flung measures necessary to
attain

-Treasury

objectives,

Mr.

The order provides that after
June 1 each manufacturer's pro¬

payroll
have to

duction

times.

schedule, regardless of
or

not it is

orders

war

specified
proved

or

items,

by

the

designed to

orders for the

be

must

Director

of

dustry

Operations.

allotment
be
In

plans

would

multiplied about five
the

of

case

the group

of

25,000,000
persons
regularly
employed by the larger industrial

ap¬

and

In-

Federal, State and local govern¬
ments, Mr. Graves said, they are

-

Proposed

schedules must be submitted to
WPB on form PD-446.
This

to

commercial

be

concerns

approached

by

and

by

systematic

canvass.

will

provide a means of pre¬
venting any manufacturer from
using critical material to pro¬
duce equipment that would be

chamber until the enemies of the

New WLB Members
The Presidential appointment of

useless without rubber tires and

Cyrus

of

the United -States Rubber Co.* as
an alternate employer member of

preventing

non-essential

production

for

uses.

defeated.

Treasury Stresses Need

these columns May .7, page 1782.

Of Voluntary Savings

Ching,

Vice-President

the

National

was

announced

War
on

Labor

of

Board

May 5.

Mr. Ching succeeds L. N. Bent,
Vice-President
of
the
Hercules

encouraging word for the Powder Co., who asked to be re¬
lieved because of the pressure of
voluntary distribution
Mr.. Ching has
of War Savings Bonds was given other war work.
\ Limits Fuitds for TVA
been serving as an associate mem¬
on May 6
by Harold N. Graves,
The Senate on May 6 passed
Assistant to the Secretary of the ber.
the
$2,125,000,000
Independent
Alternate members of the War
Treasury.
Mr. Graves outlined
Offices Appropriation Bill after
progress and requirements of the Labor Board may act in a labor
adopting an amendment abolish¬
bond program at the economic dispute in the absence of regular
ing the Tennessee Valley Author¬
conference
held
in New York members, while associate mem¬
ity's revolving; fund.
The TVA
City by the National Association bers act as mediators. The follow¬
amendment, sponsored by Sen¬
of Mutual Savings Banks.
Mr, ing
appointments
of
associate
ator McKellar. (Dem., Tenn.) and
members of the Board also were
Graves in his address said:
approved by
a
42-to-38 vote,
announced on May 5:
May 1 of this year marked
would require the- Authority to
the first anniversary of the De¬
Arthur S. Meyer, Chairman
get congressional appropriations
of the New York State Board,
fense Savings Bond program,
for its future expenditures.
For¬
An

Senate: Votes Supply Bill;

merly the TVA used the
from
power

the

<

continued

as

sale

of

and I believe it will be appro¬

revenues

offsent an approximate drop of $1,from the

amounts

agencies spent in the
rent "fiscal year.

same

the
cur-

of

The

program

1

x-

ury

•

the Treas-

from sales of Defense Sav¬

ings Bonds of all issues from
that date through April 30 of
this year,

in round figures, was

$5,400,000,000. if. The

largest

share of this amount came from
the

sale

which

of

Af«

bonds

amounted

900,000.000.
f»r»l

United

The total

year

1-Vt-

on

to

series

about

E,
$2,-

Receipts from the
L1

rv v»

J

C*

V\

AV%

Jn

Rosenberg, New York Regional
of the Social Security

Director

Board; : Patrick

launched

was

ago.
amount realized by
a

Mediation, representing the

public and replacing Mrs. Anna

priate

its

light and
its revolving fund, but

ot.r200000<000

fixed

maximum

dis¬

new

based

was

Graves said that bond sales under

fill

Waller*

Mr.

Okla.

the bill

Senate

plan

try and business generally.
we

power

May

City,

approved
while

April 27.

He added that the

shovels.

permits industries which have coL its
revenues
to
the
Federal
; who has been
a
member of the lective bargaining contracts' cov¬ Treasury.
When the House passed this bill
; committee since its formation sev-r ering an annual income for 2;080
,eral months ago, succeeds Mark hours of work, as provided by on Jan. 22 it totaled $2,096,048,875.
'A. Brown, Vice-President of the the Fair Labor Standards Act, to This is about
$29,000,000 below
Harris Trust Co., Chicago, as the participate in the war effort. Un¬ the Senate
measure, but differ¬
Committee's Chairman. Mr. Brown der the law as previously ■■ stated ences will be adjusted in confer¬
The totals, however, reprerecently- resigned
his
post
as such firms could not obtain public ence-.

Ponca

24
on

that

rate.

self-

are:

of that program.

came

War

out

propelled earth moving graders,
carrying and hauling scrapers,

year

March

objective is to have at least 10%
of the national income invested in

10%

if the House agrees to this amend¬
ment it- will have to turn over all

.

•

the job

He emphasized that "our over-all

The

sum

.

was

satis¬

savings resources of the Nation
that voluntary purchases of War
Savings Bonds can be maintained.

groups.

and helpful for me to
up the results of the first

Association, was announced May 6
.by
Henry - W.;; Koeneke,
ABA
President, who is President of the
of Ponca
Security Bank
City;

Mr. Graves said it

results

of

of the Treasury to so organize the

production
schedules
specifically approved by the
Director of Industry Operations.
on

whether

dency, Mr; Hasler declared that
"Service for Victory" must be the
goal of every member of the
were

on or

for rubber tires

of Pan Ameri¬

Reference to the nomination of
the above officers
appeared in

these

measure

State and county quotas.
Next in
order' come the quotas for indus¬

on

or

tion of his elevation to the Presi¬

nation

which

rating higher than
which shipments must

steel wheels

his

canism.

view

some

A-2,

in

re-,

cause

of

orders; to fill orders for speci¬
fied items of equipment needed

and

work in the

L-82-a

Commission

group

appreciation

purchasers, and
Treasury have been

to

tribution

to

American

number of South American

Director

May 1 and June 1 no
rubber-tired construction equip¬
ment can be produced except

v

States and the 20 Latin American

publics

the

Between

in the coun¬
try devoted to fostering friendly
relations
between
the
United

a

average,

preference
be made

,

nations, he has been decorated by

of

ance

be¬

oldest

this

steady increase in

a

Savings Bonds." He pointed
this goal required sales
j Industry Operations, except for;
$1,000,000,000 a month,
■f. orders placed prior to the issu- : practically
double
the
present

Vice-President in 1941; As

Society,

May Food Stamp List

in

to

of at least

Bar-,

.

inclined

7,500,

the industry's produc¬
capacity is only about 5,100

rose

small

the

at

we

faction.

ihorizationof

.

elected .Chairman of the Execu-

tive

President

when

,

to

estimated

applying to rub¬
ber-tired • construction
equip¬
ment, WPB prohibits the future
sale, lease, trade, loan, delivery,
shipment or transfer of any new
equipment without specific au-

also

v

sales

with

exceed

Japa¬

total sales amounted to

they reflect

shovels by military
and essential civilian users are
to

sales

I; stantially below

for these

year

month

the

Harbor, and

$3,400,000,000, an average
$700,000,000 a month,
or ipore than twice as much as
the
monthly
average
before
Pearl Harbor.
Although March
and April sales have fallen sub-

and

In its order

yeaJP: Willeby T. Cor-

ei® an<?

in

greatly

7

of almost

and

cranes

are

units.

of

chamber

which

Dec.

about

and

power

were made

been more than maintained.
In
the five months from December

whereas

Jr., Secretary, were,
The

shovels,

tion

years,

Gwynne,. dean

of

that

to May

•

vacancies Were General James G.

came a

purpose.

affected

the sale and pro¬

on

duction

cranes

>

letter1

Stamps

this

tires

.

requirements this

and to check the

and

for

rubber

year,

$530,000,000. With some
fluctuation, this increase has

demand for military and essen¬
tial; clviUan
activities.
Total

who was inducted
?ffl^e immediately following
cost of living, and re-;
isJ;lection, has been a member
the reader that War Sav-i! °f
®.; Chamber since 1918, was

the

of

restrictions

Roy E, Tomlinson, President
.of National Biscuit

stressirig the urgent importance |; w1 Hr
of setting aside a substantial]
r
part of current income'to-fi-'j. Mr, Hasler,
nance

are

in

equip¬

.

united elected three members-at-large on
the Executive Committee to serve

the

normally

tubes,
;
Q Elected ; with
Mr.
Hasler
to' says the Board, which states:
v
At the same time, WPB, in
serve as Vice-Presidents for four-:
Limitation Order L-82, placed
"year terms were:

example of the interest, re-elected.

an

as

Legislation bringing the Walsh-

C.,
as
Chairman of the Priorities Com-i
D.

the

consecutive terms.

patriotism and lauds it" well Davis,

-

the

served

tion

equipment

Last

attacked Pearl

nese

Chairman of by Limitation Order L-82-a. Last
& Trust Co., year the construction machinery
limit of two industry used approximately 8,000

edged on behalf of Secretary chamber of commerce executives,
Morgenthau by a friendly little who has been Executive ' Viceletter which thanks the donor President .since 1924, and B. Col-

The appointment of Wilmer J; Healey Act into line with the Fair
Waller, Vice-President and Cash¬ Labor Standards Act and making

Washington,

Bank

of rub¬

types

a
.

the

through
November,
an
average of about $290,000,000 a

ber-tired construction equipment.
More than 70 items of construc¬

stock; old gold and was continued in that post.
H.
offers where the value, if any, Boardman
Spalding, Chairman of
has not been ascertained.;
the Executive Committee; Colonel

Modify

of

had

the

He succeeds

Percy H. Johnston,
the .Chemical

of

month.

all

for

$2,000,000,000

distribution

of

> ' :
sales

in the seven-month period from

rubber, Assumed .rigid control on
May 2 over the production and

of

clusive

The Department of

ier

174-year-old

Commerce

■

which contributed to the survey
of
Industrial
Corporation Re¬

Bank,

of

,

,

:

Pan Ameri¬

May 7 became the

on

48th President of the

Chamber

York

total

about

Board, act¬
substantial amounts of

save

approximately two and

Of

May

..

rising

Waller Heads Committee

of the

New

were

half billion.

The War Production

ing to

Harbord,

announced on April 30 that)all
fresh vegetables (including;ppta-i
ports conducted by the FTC.
Time "lags" in filing, the dif¬ toes), fresh apples, oranges, grape¬
ficulty of assembling, and the fruit, and pears; and eight other
technical weaknesses for OPA foods
will be available
during
needs in the material available May to families taking part in
in other reports
such as the the Food Stamp program. Partici-i
FTC, SEC, income tax, bank, pants can buy the foods with blue'
and credit
reports — even if food stamps at local stores; in J alt
they
were
legally
accessible areas where the program is, op¬
and
readily available would erating. Itemizing the foods avail-*
V hamper OPA's efforts to keep able for blue stamps, the Departs
price control actions abreast of ment announces that the May list,
which is the same as for Aprils
current business conditions.
The confidential nature of the includes shell eggs, butter, fresh
reports will be, strictly observed, apples, oranges, grapefruit, pears,
and
fresh vegetables
(including
the Administrator said, although
the reports will be available on potatoes), corn meal, dried prunes,
hominy (corn) grits, dry edible
a confidential basis to war plan¬
wheat
flour,
enriched
ning agencies, such as the War beans,
Production Board, when needed, wheat flour, self-rising flour, en¬
riched self-rising flour, and whole
thus
providing a
centralized
wheat (Graham) flour.
regularly recurring source of in¬
formation for such agencies.

.

Society,

Continental

of

This number is exclusive of

construction, mining, and
agricultural
fields.
However,
OPA pointed out, only about 2,500 of these companies are re*
quired to file with the Secur¬
ities and Exchange Commission
and a great number of these are
duplicated in • the smaller list
ing,

Co.

ap¬
A ; new treasurer, William S.
proximately 15,000; individual Gray, Jr., President of the Central
donations grouped and treated Hanover Bank & Trust
Co., was
as single gifts as,
for example, also v elected ; succeeding
Leon
was done in the case of an aero¬
Fraser, who had held that office
nautical corporation whose, ,7,- since1940.
William
B.
Scar¬
000 employees sent in individ¬
borough who has been Assistant

69,000

companies,
each
having assets of $250,000 or
more, and that 30,000 of these

of The

Trust

Every cash gift is aeknowl-* Charles

program
because of the absence of ade¬

.

Board
&

Chairman * of
Radio
Since June, 1940, a totalrof
Corp. of America and Howard C.
13,895 cash donations have been Smith, - Trustee of the Franklin
received, ; totaling: $614,670,57.' Savings Hank.

accountants.

OPA

V

E," Hasler, Chairman

and President

■

■

WPB Controls Equip. Of
Rubber Tire Construction

Elects HasEer Pres.

help finance the war
in
Washington

received

since the President's fireside talk

1871

.

Mine

Fagan,
Workers,

of the
Pitts¬

burgh, representing labor and
replacing James B. Carey, CIO
Secretary, who resigned; Robert
Black, President of the White
Motors Co. of Cleveland,
resenting management and

rep¬
suc¬

ceeding Mr. Ching; and Fred A.

Kraft, American Viscose Corp.,

Wilmington,
employers.

Del.,

representing

THE

1872

Honor United Nations

Flags On June 14: FDR
his

In

proclamation

annual

COMMERCIAL & FINANCIAL

Says Price Freezing
Will Ferce Subsidies

Sen. Walter F. George (D., Ga.),
designating June 14 as Flag Day,
President Roosevelt on
May 9 Chairman of the Senate Finance
asked
the American people to
Committee on May 5, predicted
honor not only our colors but also that
the
Government will be

flags of the other 25 United
The President said that

forced
to subsidize some busi¬
nesses
under the general price"now we freezing order to avoid hardship
are fightng in the greatest cause
and bankruptcy. In reporting this,
the world has known" as part of International News Service
ad¬
a great whole and that "unless all
vices from Washington, as given
triumph, all will fail."
:
in. the
"Wall - Street ; Journal,"

the

Nations.

because

fitting

is

this

.

of

text

The

President's

the

added:

proclamation follows:
p

.

;

nag Day,

For

many

Price

is

custom

,% aside June 14 in honor of the
I. Flag, the Emblem of our free¬
dom, our strength, and our unity
f as an independent nation under
God.
Now we are fighting in
the greatest cause the world has
known.
We are fightng to free
the people of this earth from
the
most
ruthless, the most
savage
enemy the world has
ever
seen.
We are dedicating
; all that we have and all that
we are to the combat.
We will
not stop this side of victory, //•
;
We, as a nation, are not fightt ing alone. In this planetary war
we are a part of a great whole:
We
are
fighting shoulder to

the

of

.

Office

of

Administration have dis¬

of subsidies

closed that offering

it has been
to set

years

American

our

Officials

y

1942

discussion, and is re¬

under

garded as part of the over-all
price freezing plan, //v
"It
seems
to me that they
will
have
to
subsidize some
businesses

if prices are frozen

■

March,"
said
Senator
George.
"For example, fruits
and
vegetable
canners
must
plan
their
business
a. year
ahead,
and with wages; not
frozen they would find them¬
selves in difficulty under the
freezing order,
"Retailers find themselves in

as

i

'

•

difficult position in having
prices frozen while goods
have been bought on a basis
which required an increase to
enable the retailers to make
their

profits."

pies of the United Nations, the
massed, angered forces of com¬
mon humanity.
Unless all tri¬

(D.,
Mich.), who handled price-con¬
trol legislation in the Senate,

umph, all will fail.

said

it is fitting
traditional Flag Day

For these reasons

that
we

on our

honor not only our own

lors, but also the

who have, with us, signed the
Declaration by United Nations,

J

heard discus¬
alternative method of

meeting the "lag" faced by re¬
This involves setting

Col-

flags of those

Brown

that he had

sion of an

tailers.
•

;■■■

back the

Under Way Principles Of Cost

,

/

;

:

;

'

failures

division

dropped^ to

624

Bureau

TD

Mgrs. To Convene

5000.

■

prepared un¬
der the direction of Eric A.. Camconventions
for
man, Chief, and Maurice E. PolouApril last year.
Construction in¬
others, will hold their own con¬
solvencies were 65 with $1,033,000
bot, Assistant Chief, of the Ac¬
clave in New York City, Aug. 19
liabilities from 70 with $1*120,000
counting Advisory Branch of the
to 21, it was announced April 27
WPB.
Copies can be obtained
liabilities in April, 1941. V Com¬
by C. N; Nichols, Executive Di¬ from the Superintendent of Docu¬
mercial Service failures numbered
rector of the Convention and Vis-;
38
with: $335,000
ments, Government Printing Of¬
liabilities as
itors Bureau of the Commerce and
fice; Washington,/ D. C., .at 10c
compared with 35 with $573,000
Industry
Association
of
New
each.
'
:
liabilties in April last,year. "
York,
Inc.
He
said
that
New
York
When the country
is divided
City's invitation to the Interna¬
according to Federal Reserve Dis¬
tional Association of Convention Ship More
tricts, it appears that ten districts
Bureaus has been accepted and
'• Advices received
by the New
had
fewer
insolvencies than in
that managers and directors from
York Coffee & Sugar Exchange
April, 1941, while two districts
35
of the principal
convention from Honolulu show that Hawaii
had more.
• .V
cities of the United > States and
shipped 108,066 short tons of raw
Canada would attend.
Henry T.
sugar to the United States during
involving
with

-

$3,829,000compared
$3,970,000

745- involving

in

Convention

who

The

booklet was

bureau "managers,

arrange

Hawaiian Sugar

.

Prentiss

Sen.

A LB; Program

April Failures Lower J

For Govt. Contracts
April business failures were be¬ For Institute Conference
i
low the high total for/the year
A
handbook:
which
explains
p. Leaders who will preside over
reached in March and were also the
departmental and Institute principles for determining costs
below the April total of last year.
conferences
to
be held
at the under Government contracts has
Business casualties last month, ac¬
annual convention of the Ameri¬ just been prepared by the Ac¬
cording to Dun & Bradstreet, Inc., can Institute of Banking in New
counting Advisory Branch of the
totaled 938 and involved $9,282,000
In an¬
Orleans, June 8 to 11, are arrang¬ War Production Board.
liabilities as compared with 1,048
ing programs for the conference nouncing this on May 6 the WPB
involving $12,011,000 in March,
sessions,
it
is
announced " by explains: '
and 1,149 involving $13,827,000 in
George T. Newell, A.I.B. Presi¬
For
some
time costs under
April, 1941.
•
/;/.\
.''.J-- / dent, who is Vice President of the
government contracts have been
The falling off from March took
Manufacturers
Trust
Co.,
New
based
on
a/decision
of
the
place in all the divisions of com¬ York City.
Treasury
originally- issued to
merce and industry into which the
The
departmental conferences
carry out the profit limitation
insolvencies are~ divided. - Com¬
of the convention will deal with
provisions of the former Vinsonpared with April, 1941, the same
bank management, bank opera-:
Trammell Act.
This decision
remark is
true
except for one
is known as TD 5000 and has
tions, business development and
divsion, the Commercial Service.
been regarded by Government
advertising, credits, savings bank¬
Manufacturing
failures num¬
departments as the most satis¬
bered
146 last month involving ing, and trust business and invest¬
ments.,: The Institute conferences
factory
existing definition of
$2,953,000
liabilities,
compared
will consider chapter administra-;
costs.
The booklet just issued is
with 188 in March with $3,737,000
not a revision or an interpreta¬
liabilities. Wholesale insolvencies tion, chapter publicity, debating,
tion of TD 5000 but explains in
decreased
to 65
with $1,132,000 education/public relations, public
speaking, and bank women's work.
simple and complete terms the
liabilities from 108 with $3,743,000
principles of costs as covered by
a
year ago.* In the retail trade

/ a

valiant peo-

shoulder with the
,

of

i

Thursday, May 14, 1942

CHRONICLE

price-freezing date on

wholesale prices;

SEC Amends
The

Utility Rule
and

Exchange

Commission announced on May
the

j "

Securities

7

adoption of an amendment to
Public Utility

Davis, Secretary-Manager of the April — exceeding the 90,536-ton
Indianapolis Convention and Pub¬ shipments
during the previous
licity Bureau, is President of the three months of the year.
The
Association
and" J.
S.
Turner,

Exchange's announcement added:
Manager of the. Convention Bu¬
Shipments during the firstreau of the Cincinnati Chamber of
Company
Act
of
-1935.
will have to be subsidies if some
third of the year now total 198,This rule
says
the
Commission,
Commerce,
is
Secretary-Treasur¬
action, such as this is not taken,"
582 tons, all raws to West Coast
tyranny we all oppose, to those
automatically excludes from the er.
he said. Retailers can't be held
ports, or a rate of 592,000 tons
whose lands have escaped the
category
of
"electric
utility
com¬
to March prices unless all other
for the full year.
Moreover, if
scars
of battle, to those who
pany"
and
"gas
utility
company,"
factors affecting them are pro¬
the April rate is maintained, a
Authorize $800 Million
V have long been heroically fight¬
for the purposes of the Act, cer¬
portionately fixed."
full million tons can be brought
ing in the blaze and havoc of
tain companies primarily engaged
Naval Shore Facilities
here in. 1942, or/j^titwice as
Senator
■\ war.
Taft, Republican, of
in other businesses. The Commis¬
President Roosevelt signed on
much as Washington authorities
It is also fitting, in this time Ohio,
according , to Associated sion further states: ; "
have counted on.
April 28 legislation authorizing
of stress, that we express our Press Washington accounts May 5,
1
The rule provides that such
an
devotion
to f our
$800,000,000 expansion in the
courageous suggested that it would be much
During January-April of last
companies, although having a
Navy's shore facilities.
mothers, many of whom are simpler merely to adjust prices so
year,
exports from
Hawaii
certain amount of public utility
Tentative
allocations
of
the
sending out their sons to do that the payment of subsidies
totaled 274,321 tons of which,
/ business, shall not be deemed
would
not
be
necessary.
"I
think
amount
would
be
as
follows:
battle with the enemy and all
however, 78,797 tons were for
electric or gas utility companies
of whom are so loyally contrib¬ it is silly to say that an absolutely
Fleet
Atlantic Coast points.
facilities,
$4,000,000;
Ignoring
if their gross sales of electric
uting to the waging of the war rigid price level must be main¬
the East Coast shipments, there¬
aviation facilities, $168,780,000;
energy or gross retail sales of
on the home front.
V
tained," he told reporters.
fore, shipments
to the West
lighter-than-air program, $25,natural or manufactured gas did
Now, therefore, I, Franklin
Coast this year are up to the
000,000; storage facilities, $119,not exceed $100,000 for the pre¬
D. Roosevelt, President of the
volume
shipped
during
the
000,000;
liquid
fuel
storage,
vious
calendar
year,
which
Farmers Paying Off Mtgs.
United States of America, do
same months of last year.
This
$100,000,000;
Marine
Corps
amount is computed after ex¬
hereby ask that on Flag Day, / Evidence that farmers will fol¬
training facilities,
$20,000,000; J: is in sharp contrast to shipment
cluding certain classes of trans¬
June 14, 1942, the people of our low the President's suggestion to
from
Cuba
and
Puerto
Rico
ordnance
storage
-facilities,
actions specified in paragraph
nation honor the peoples of the pay off their mortgage indebted¬
running
$150,000,000; personnel training / which—together—are
(b)
of
the
rule.
The
amend¬
United Kingdom of Great Brit- ness is found in the record made
nearly. 40% under last year's
<•; and housing facilities, $100,000,ment to the rule adopts a new
ain and Northern Ireland, the by Federal land bank borrowers
movement.
/
000; hospital and dispensary fa¬
class of sales which are to be
/
Union of Soviet Socialist Re¬ in the last year, the Department
cilities, $40,500,000; shore radio
excluded
from
consideration,
publics, China, Australia, Bel- of Agriculture reported on May
facilities, $11,000,000; Naval Re¬
namely, certain wholesale sales
Inter-Amer. Shipping
search
Laboratory,
$720,000;
?f: gium, Canada, Costa Rica, Cuba, 11. At the same time the Depart¬
of electric energy in connection
f Czechoslovakia, the Dominican ment said:
Formation of an inter-American
miscellaneous
structures,
$25,with the war emergency activ¬
Republic, El Salvador, Greece,
Farmers broke all record in
pool to alleviate the
000,000; floating dry dock pro¬ shipping
ities.
The general effect of the
Guatemala,
Haiti,
Honduras,
1941 in the amount of payments
growing merchant marine prob¬
gram, $36,000,000.
rule is
to prevent
companies
v
India, Luxembourg, the Nether¬
on
lem of the Western Hemisphere
principal on their Federal
which would not otherwise be
Completion
of
Congressional
lands, New Zealand, Nicaragua,
land
bank
and
Commissioner
was disclosed on May 5 by Secre¬
subject to the Act, as subsid¬ action on this bill was referred to
Norway, Panama, Poland, the
loans.
In addition they rolled
tary of State Hull and Ambassador
iaries
of
registered
holding in our issue of April 30, page 1704.
Union of South Africa, Yugo>
' Juan Carlos Blanco of Uruguay.
up a
sizeable amount for ap¬
companies or/as public utility
■/
slavia—knowing
only
in the
In reporting this, Associated Press
plication to their debts during
companies, from
losing that
strength and valor of our un¬
periods
when
their
incomes
Washington advices said:
Living Cost Up
status as a result of wartime
swerving unity shall we find
might not be so large.
Mr. Blanco said Uruguay was
Living costs for wage earners
interchange of power.
the force to bring freedom and
"Borrowers
from the
Federal
donating one vessel to the pool
and lower-salaried clerical work¬
peace to mankind.
land banks," said A.
and that he would sign a trans¬
G. Black,
ers
increased from February to
I direct the officials of the
To Discuss War Problems
Governor of the Farm Credit Adfer contract in the near future.
March in 66 of the 67 industrial
Federal Government, and I re¬
The Board of Directors of the cities surveyed each month by the
Mr. Hull told his press con¬
minstration, "are paying off their
quest the officials of the State
loans at a rapid rate."
Association
of
Real Division of Industrial Economics
He added: National
ference that Uruguay was show¬
y : and local governments, to have
ing additional interest in the
This situation has been true Estate Boards will meet in Chi¬ of The Conference Board.
The
our Colors displayed on all gov¬
Allies cause by contributing the
for some time.
In 1941 borrow¬ cago on May 22 to review action Board on May 1 stated that the
ernment buildings on Flag Day,
ship which he said he believed
ers
repaid bank loans in their that may be advisable in .the largest
increase
was
2.8% in
and I urge the people of the
was
a Danish vessel
seized by
entirety—prior
to
maturity—• whole range of real estate work Meadville,
Pennsylvania, the
United States to fly the Ameri¬
the Uruguayan Government last
amounting to $56,000,000, com¬ connected with or affected by the smallest 0.2% in New Orleans. A
can
Flag from their homes in
war
summer.
program,
v The • executive
pared with $36,000,000 the year
slight decline of 0.1% occurred in
honor of the Nation's mothers
before.
They made payments committee will meet with Asso¬ Saginaw, Mich.
: - It
was
assumed that other
In the United
and their valiant sons
in the
American nations which seized
totalling nearly $73,000,000 on ciation President, David B. Simp¬ States as a whole, the cost of
service, and to arrange, where
son
on
May 21... -// //. ;'/•/ //'///;, living rose 1.1%. The Board fur¬
the
principal of their loans,
refugee
ships
last
summer
feasible, for joint displays of the
A
meeting
of the - Realtors' ther reported:/
compared to $60,000,000 in 1940.
would contribute to the pool. *
/ /;//.
Emblems of the freedom-loving
In addition, they have deposited Washington Committee, made up
The cost of living was higher
nations on that day.
v
The Secretary said he did not
to date in the future payment of heads of the Association's insti¬
this March than in March, 1941, / know, what flag the Uruguay
tutes
and
divisions,
willbe
held
funds
nearly
$6,000,000
with
in all the cities for which comship would fly, but informed
New Cotton Exch. Member
which to meet unfavorable con¬ as part of the directors' meeting. >
parable figures are available. /-sources said it would be the
ditions.
Last year also $53,000,- Coincidental meetings are sched¬
At a meeting of the Board of
colors of one of the American
The largest increase was 16.8%
000 was paid on installments on uled of the governing bodies of
nations that have declared war
Managers of the New York Cot¬
in Syracuse, the smallest, 8.1%
the
American
Institute
of
Real
the principal of Commissioner
ton
Exchange held on May 7,
against the Axis, probably the
in Newark. In the United States
Appraisers,
the
Home
/ loans, compared to $46,000,000 Estate
/Robert Lang of New York City
United
States.
Uruguay
has
Builders
Institute
of
America,
the
in
1940.
Borrowers
paid $23,as
a
whole the cost of living
was elected to membership in the
severed relations with Germany,
000,000 on these loans prior to National Institute of Real Estate
Exchange.
Mr. Lang is a mem¬
rose
11.4% from March, 1941,
maturity last year, compared to Brokers, and their important com¬
Japan and Italy,
ber of the New York Coffee and
to March,-1942.: / ;/
? /V.v-j
mittees on May 21. ' »
- — >-•'
v
$15,000,000 in 1940.
Sugar Exchange.
paying homage to those Nations
awaiting
liberation from the

*

T

"It

seems

to

.,

me

that

there

Rule U-7 under the

Holding

,

,

*

"

,

Pool

■

—

—

In March

•

v

<

.

.

j..




,

...

Volume 155-

Number 4072

3: THE COMMERCIAL & FINANCIAL CHRONICLE

■■

Debt

Preliminary Debt Statement Of The
s United States
April 30, 1942
"

■

ment, is
Public

111999455840--32-6.—054—6 —
made

as

Eonds—

Panama Canal loan of 1961—

3%

Conversion

3'/v

Conversion bonds of

2V2%

11994552--—3—.
bonds of

(23d to

1946-49—.

1951-55—.-..-J

1949-52—.

2%%

23/4 %
2 Va %

489,080,100.00

454,135,200.00
818,627,000.00

Electric

'

2 '/a %

—

23/4 %

1,518,737,650.00

:

-

540,843,550.00
450,978,400.00
918,780,600.00

23/4 %

of

2%

of

-

2>/4%

1948-50

of

2 J/4 %

I

.

England
Atlantic___7-.«_—.—

of

1939)—.—

—

—

1948-50

2%

2'/2%

(Mar.,

West

724,677,900.00

„

2 %

;

•United

—w.J

D-1939

D-1940

Series

D-1941

Series

E-1941

{

„

Series

P-1941

Series

G-1941

Series

E-1942

Series

P-1942

Series

G-1942

Unclassified

——————J—

—

—'

————

—

—

14

Apr.

4

3,348,608

484.937,104.50

Apr.

11

3,320,858

800,257,121.75

Apr.

18

3,307,700

993,082,065.00

2

9—

187,173,694.50

....

392,699,655.64

Depositary bonds—

3%

Adjusted service bonds of 1945.

Total

———

;

B-l942, maturing Sept.

15,

1942-

series

C-1942,

maturing Dec.

15,

1942-

232,375,200.00

maturing June 15,
VteW 'series B-1943, maturing Dec. 15,
3%
series C-19 43, maturing Sept. 15,

1943L

t-Vi 629,113,400.00

19431943-

420,971,500.00
279,473,800.00

3A%

15,

1943-

65,963,700.00

Vo%

series A-1943,

34%

series

D-1943,

maturing

Mar.

A-1944,

maturing June

15,

1944-

series

B-1944,

maturing Mar.

15,

1944

515,210,400.00

series

C-1944,

maturing Sept.

15,

1944-

283,006,000.00

series

A-1945,

maturing Mar.

15,

1945—

718,012,200.00

series A-1946,

maturing Mar.

15,

1946-

502,866,000.00

1%

5 the
it

Dec.

B-1943, matur'g Aug.

1,

1943

$29,592,325.00
1,891,645,600.00

A-1944,

matur'g Jan.

1,

1944

18,568,700.00

B-1944, matur'g Jan.

1,

1944

804,196,000.00

service

Adjusted

(Government

bonds

Treasury Notes—
Federal

June

30,

fund

trust
.

to

Federal

trust

fund

June

Civil

and

Foreign

1943

30,

and

30,

third

the

4

maturing
:

6,338,000.00

Japan

Prime
in

treacherously
States and

United

in

the

we

are

Far

East.

now.

in

Minister

the

to

we

:

9,650,000.00

Federal Savings and Loan Insurance

maturing June 30, 1945

Certificates of Indebtedness—

series,

X

,

25,975,000.00

.4, 95,000,000.00

fund series,

5,050,000.00

trust fund series,

longer

no

are

Total' Interest-bearing
Matured debt

on

that
^

535,000,000.00
2,932,600,000.00

—

it

tonight

This would

much

very

bad

cheer

difference
drive

that

come

to

sooner

good cheer or be"
it

to

will

make

We

us.

to the end and do

on

no

shall
our

;

reference

to

which

I

$64,496,347,919.79
107,503,530.26

the

operation

the

use

since
and

commercial

was

the

harbor

splendid

to

ex¬

of

secure

all

paralyzed

our

you

use

mention

in

the

des-

this odious

to

forestall the Japanese and

the first for once,

w?*h

filled me

leakage

was-

or

a

no

question

of

breach of cohfi-

'

dence. " 4
As

think

-

4

4"

they
say,
great - minds
alike, but shrewd surmise

extends

of the substances
known as synthetic

Excepted from OPA control
by the amendment are tires to
be sold for military use or ex¬
port, or tires for use on air¬
planes.
The WPB also retains
control,
under the Rationing
Regulations, of tires for vehicles
in the hands of manufacturers,
distributors, and retailers.
The

delegation contained in
supersedes the
powers
delegated
by Rubber
Order, M-15-c, but all actions

the
r

amendment

heretofore

apprehension.

There

also

power

rubber.

take Madagascar

and
be

us

passenger

4

the sea
I felt a shiver

for

as

or any

commonly

communica¬

was

amendment

rationing

rubber,

Diego

time I saw the word
"Madagascar"
in
the
news¬
papers.
All these articles with
diagrams and measured maps,
showing how very important it

of

well

confusion existed

delegated
to OPA by WPB Directive No. 1
4 to cover all tires, whether made
4 of cri|de, scrap, or reclaimed

444-:-;4-7:4-

must tell

as

some

certain

The

the

While troops were on
I

but

jurisdiction over tires
types of industrial
equipment. The new regulation
(Amendment No. 1 to Supple¬
mentary Directive 1-B) makps
clear that power to ration this
type of tire resides in the OPA.

tions with India and the Middle
East.

on

known

to the

as

for

the

more

Board

this

making

Under previous delegations of
authority by the WPB, the OPA
had power to ration tires for

Suaraz, which, if it had fallen
into Japanese hands, might have

with

their assault may
make use of poison gas against
the armies and people of Rus¬
sia.
We are ourselves firmly
to

task

first

Its

of

resolved not

taken

...

the OPA said:

every

the

must

Germans

was

In

6.

use,

pedition left these shares.

the

unknown

months

three

is

Production

War

May

:

.

than two months since

disposal once they
marshalled and de-

the

the

Indian Ocean, as to which

decision

np

Authority to ration all types of
tires, including synthetic, for all
purposes,
including
industrial
equipment, was delegated to the
Office of Price Administration by

precautions
to
prevent
Madagascar falling into enemy
hands by some dishonorable and
feebly drifting or connivance
by Vichy like that which in¬
jured us so much in Indo-China.
It

do

To Ration All Tires

We have found it necessary to

which

resources

also made by the

7

us, we can

OPA Given Power

French Island of Madagascar

:4

helping

our

if it

as

wide

was

God

other.

take

un¬

survey

against

we

he said: 4

.

2,379,000,000.00

maturing

debt outstanding———————— -—--—




the

4 to you. The Soviet Government
4 have expressed to us the view

$18,600,000.00

which interest has ceased——.————;

doubt

no

But be it

it.

the British Government to occupy

well armed.

we

gas

has

Reference

poison gas, Mr. Churchill had the
following to say: 4
:
matter

maturing

1942—------—-r—-——-7—------—--

not

deserve it and the facts endorse

Prime Minister to the decision of

are

we

that
unprovoked

largest possible scale far
against the military
objective in Germany.

4,7 There, however, is one serious

444.*'4

June 30, 1942-„^w—^—————

2%%, Unemployment

war

am

should
anything happen to Hitler and
Europe.
;44'4 : v 4V:4;
Therefore, tonight I give you
a message of-good cheer.
You

it plain

the

the

on

fully
veloped, as they can be and as
they will be, we may stride for-

With

4%

Unemployment trust

I

duty, win o? die. ^

been
committed
will use our great
and growing air superiority in
the West to carry gas warfare

growing confidence.

3,924,943,000.00

Adjusted service certificate fund series, matur¬
ing Jan. 1, 1943—t-——j:————-

our

ward, into

Corpora¬
—

have

pass

4-4.:-

used against ourselves and
are satisfied that this new

by Hitler

conquer.

We

are

matur-

make

poison

outrage

reverses

many

are

when

at

we

in the

stating

last war,

through

But

of

were

if

chapter opened at

Britain

"as

are

55,000,000.00

1946——-—-r-———
Service life insurance fund

formidable scale.

a

and

overwhelming
1,215,000.00

—

Eastern

to make predictions, but

them low.

Use Of Poison Oas

use

...

--

strengths

manifest.

that
overwhelming
air
supported by covering
military
operations, will lay

Huh, howeverv we haVe not ne¬
glected to make preparations

"the
long

5,279,000.00

series,

-'

chap¬

will come, or how it will come,
I cannot tell.

1944----

>-

■

1,136,000.00

Federal Deposit Insurance Corporation
maturing Dec. 1, 1944 to 1946----—-:—

June 30,

itself into

739,300,000.00

2%

2V2</o

that

can see

we

call

in

Now

'

1942 to

true

power,

weapon

complete and final
victory," added:
We have only to endure and

112,000,000.00

—

this

of

British and American seapower
will grip and hold the Japanese

unless it is used first
;by the Germans. 5 Knowing our

it has

as

and defeats to

National

tion

1,698,492

which > then began,
glory."
May it

armed.

•

series,
maturing June 30, 1945 and 1946—:—-

2%

1,688,434

1,436,928

.

would

The

maturing

Government life insurance fund series,

June

3%

1,699,822

1,429.032

2,515,515

Pearl Harbor when the military

■

2%

1,454,505

2,503.899

second chapter, Britain
ended with Hitler's at¬
upon Russia.
:

persevere

1946——i_
——
4 % Alaska Railroad retirement fund series, matur¬
ing June 30, 1942 to 1946—
—,
2% Postal Savings System series, matur'g June 30,
June

I

2,499,060

12.2

1942 to 1946—

ing June 30, 1942 to 1946
——:
Canal Zone retirement fund series,

prone

+ 11.6

30, 1944 to 1946
Service retirement fund series, matur¬

4 %

1,709.331

+ 10.9

4

That is where

$937,900,000.00

retirement fund—-

series, maturing June

1,469,810

+

7-,

insurance
30,
1944

—.—

series, maturing June 30,

2,528,868

3,003,921

Now we are not alone.
We
have mighty allies.
There
can only be one end.
When it

Service

+ 14.2

Russian; ally,7 exactly

moving

603,000,000.00

4%

1,696,543

France..,}

attacked the

,/.;'7

1,328,100,000.00

3%
4%

v,-

————

1946-———

30,

trust fund:
maturing

series,

1,480,738

treat

party

fund,

survivors insurance
30, 1946

account

2,529,908

2,950,448

punishment

the

+ 14.3

2,944,906

.

times

many

side of the

become

to

1,953,364,000.00

-

series, maturing June

retirement

railroad

insurance

life

1944——

old-age

either

clearly defined chap¬

1,5Q7,035,000.00

series,

old-age and survivors
maturing June

1,663,291

wish

that

series,

1946

2%%

3%

to

1942

Federal

2!/2%
.•.-■v..

,

account

reserve

before

1,679,589

1,465,076

2,905,581
2,897,307

war

divide

The fourth

500,157,956.40

old-age & survivors insurance

old-age

3%

1,687,229

1,480,208

continue.

—

——

1,514,553

2,524,066
2,493,690

shall

I

Special Issues—Boiids—
series 1946)

1,537,747

2,508,321

I

Great
4 >/a %

1,687,229

2,550,000

+ 12.4

Russian

(maturity value)

and

+ 12.5

+ 13.1

alone

7

abitious and greedy nation.
^
Time will, however, be needed

1929

1932

1940

+ 12.5

on

ter,

series A-1942, maturing Nov. 1, 1942.

Treasury bills

feat

conclusion

to

seems

tack

Indebtedness—

of

3,351,126

>

1941

is

contribution to the final de¬

our

i-: V--."

.

—

2,975,407
2,959,646

The
alone,

8,314,920,225.00
Certificates

greater
than
the ' power of
Japan. And we also will make

we

2,744,362,625.00

Vz'A

14.2

The first ended with the over¬

Series—

1943

3,304,602

of the

course

7:4

530,838,700.00

A-1943, matur'g Aug. 1,

10.9.:

running by the Nazis of West¬
ern
Europe
and the fall of

,

1,165,903,100.00
Tar

12.2

Prime

four very

$635,064,400.00

1945

15,

tial

2,983,048

ters.

maturing

series D-1944,

,

2.1

"

$4,404,654,500.00

Sept. 15, 1944—i—_—
34% series B-1945, maturing

•

far unfolded

so

National Defense Series—

3/4%

; 18.1

of his two years
of service as Great
Minister, Winston Churchill, in a broadcast from
London May 10, reporting on the operations of the war, briefly
summarized the war's chapter as follows:
If we look back today over'®'
—
—

415,519,000.00

series

1%

1%

'34 %

3

—.

the

With

Britain's

$342,143,300.00

series

the

But

25.3

Warns Axis Powers Against

Treasury Notes—Regular Series—
1%%

theatre.

and;

230,178,740.00

2%
l

,8.4

'4-^ 12.47/ '■

Chiirchill Reviews Progress Of War;

$45,363,327,738.39

-

—————

Eastern

22,0

over

'

76,361.000.00

—

concluding remarks the

strength of the United States
expressed in units of modern
war power—actual
and poten-

9.0

2,983,591
>

3,345,502

3.273,190

25

May

May

8,951,013,118.39
2%

3,357,032

Apr.

819,827,400.00

—.•—

—

--3,357,444

—

445,681,452.75

J

his

Far

11.6

,

(Thousands of Kilowatt-Hours)

1941

28

1,304,448,412.50

.1

sales

In

-

Prime Minister said:

1,269,324,900.00
1,139,484,143.75

J**

Europe.
Mada¬
safeguard of

the United Nations.

7 229,107,034.00

——

—

of

19.8

% Change

1942

21_

403,525,662.50

Series

Week Ended—

Mar.

C-1937

future

the

gascar rests under

1942

Mar

Series
Series

place among great powers
of the world is indispensable to

74.0

4':

11.6

Mar.

310.614,908.75

C-1938

United States

/

$170,849,562.75

B-l'

restoration to

7-;;,R>3.3 ^77

20.1

DATA FOR RECENT WEEKS

35,909,784,700.00

States, .Savings Bonds-r-serfes •; A-1935i.i.—

Series

Total

1,500,781,300.00

Series
'

3.3

Pacifio^Coast—

1,014,018,900.00
.——J—.

marched

and

whose

her

13.0

9.4

16.1

14.8

510,413,950.00 r

—

—

2'/4%

"

10.1

?

.

-

2,716,046,700.00

9.0

-

11.1
8.9

1,448,747,650.00
J—

1967-72—

known

and

'

7-7

10.2

Rocky

1952-54—'' 1,023,568,350.00 '•

2'/2 %

Central

7,

9.7

8.7

-

_

Southern -.States-«-»^—
,

1,115,368,400.00

1941)—————

1956-58—

-2ya%

__

—

•1953-55—J.—

.

have

with

_

Middle

Central Industrial

571,431,150.00
1,118,051,100.00
1954-56-i.w-.—* 680,692,350.00
(Dec.,

been

,

1,185,841,200.00
1,485,384,600.00
4. 701,072,900.00

—

1947

i: of

;2%

i

1960-65—————

not

esti¬
The Japanese war lords canand \ not be indifferent to the losses
power industry of the United States for the week ended May 9, 1942,
of aircraft inflicted upon them
was 3,351,126,000 kwh., which compares with 3,003,921,000 kwh. in the
at so many points and particu¬
corresponding period in 1941, a gain of 11.6%. - The output for the
larly off the northern coasts of
week ended May 2, >1942, was estimated to be 3,304,602,000 kwh.,
4 Australia and in their repulse
an increase of 12.2% over the corresponding week in 1941.1
j at Colombo and Trincomalee. 4
At
PERCENTAGE INCREASE OVER PREVIOUS
the ' start
the
pent-up,
YEAR;
-Week Endedsaved-up resources of Japan
Major Geographical Divisions—
May 9, '42
May 2, '42
Apr. 25, '42
Apr. 18, '42
were
bound to prevail in the
8.0
7.0 ; y
10.8
New
7.8

1,223,495,850.00

:

had

We hold these places in trust
that gallant France which

stated at current redemption values.

are

losses

that**

soldiers

our

The Edison Electric Institute, in its current weekly report,
mated that the production of electricity by the electric light

491,375,100.00
2,611,092,150.00

—

1958-63—J_—_

2W%

$70,649,771,306.07

Shows 11.6% Gain Over Same Week in 1941

71,035,873,400.00

-

——

—_J

1948—

all others

.

learned

of

for

Output For Week Ended May 9,1942

f

'7 755,431,000.00 ?•'
1,400,528,250.00

1945_..__...

..2 v»%

—.—

their

we

public debt and guaranteed obligations

gross

relief

difficulties

fectually carried out.

7

1951-54—1,626,687,150.00 r
1956-59....-I_—i._—981,826,550.00 ;
1949-53—• 1,786,129.150.00

23/4%

-2%

—

-

obligations not owned by the Treasury

"Series G is stated at par;

v

J945-47^wiki--ii-u_i^ii^y^^w^ 1,214,428,950.00 V

2% %

"2%

-

Total

1,036.692,400.00

3Va%

1946-48—,

Guaranteed

64,961,317,825.79
5.688,453.480.28

u——————_

——

$195,990,180.00

3%

3 Va %

the Treasury)

$758,945,800.00

L——
1943-47_-i.-^—i—V

3%

.

that I

as

aggravated and that the opera¬
tion had been swiftly and ef¬

3,752,069.75
357,466,375.74

117,295,680.00

49th series)

1947-52—

1944-54

2y» %

I

13,133,500.00

1946-56-_^_i,^_>__l':^^

3'/4%

V

15,761,000.00

4 %

3>/4 'to

<•

1946——

series of

,'

able

and

161,049,603.50
2,023,117.42

———

Total gross public debt (including $2,590,426,500 advanced to gov¬
ernmental agencies for which their obligations are owned by

$49,800,000.00

—

3%%
3% %

.

1947——

Postal Savings bonds

Treasury Bonds—4V4%

,

notes

dangerous as leak¬
was with consider¬

the

-

and

bank

Old demand notes and fractional currency———.

f

r

3%

'

.

bank

Reserve

National

of

Thrift and Treasury savings stamps—

!
;

•

>

retirement

for

be

age, and it

may

156,039,430.93

:

-

$190,641,585.07

the basis of the daily Treasury state¬

up on

Issues—

reserve—..—.——

Federal

follows:

as

gold

Deposits

44 The preliminary statement of the public debt of the United States
April 30, 1942,

cC
.$346,681,016.00

Bearing No Interest-—

United States

Less

1873

taken

by

the

OPA

pursuant to the latter order, or
in

accordance

with

other

ra-4

tioning directives or regulations
are ratified, approved, and con¬
firmed.

"

Bankers Dollar Acceptances Outstanding
On April 30 Decline to $177,293,000

Daily Average Crude Oil Production For Week
f
Ended May 2,1942 Declines 246,350 Barrels

The volume of bankers dollar

acceptances outstanding decreased
Petroleum Institute estimates that the daily
crude oil production for the week ended May 2, 1942 $5,382,000 during April to $177,293,000 on April 30, according to the

American

The

average gross

of 246,350 barrels from the pre¬
also 272,100 barrels below
last year and was also 331,the month of April as rec¬
of Petroleum Coordinator. Further de¬

monthly report of the Acceptance Analysis Unit of the Federal Re¬
serve Bank of New York, issued May 12.
This compares with a total

3,335,000 barrels, a decrease

was

ceding week.
The current figure was
the output for the corresponding period
800 barrels under the daily average for

—Actual Production—

estate

|v

:■

O.P.C.

a

Week

Allow-

Ended

ables
Beginning

Recommen-

dations

May 2
1942

4 Weeks

From

/.

Ended

Previous

May 2

May 3

1942

1941

Week

.

April 1
436,900

b404,650

+

3,900

398,850

408,650

253,400

253,400

b255,300

+

2,100

249,450

209,100

4,000

4,200

April

Nebraska

b3,900

5,000

__

161,800

North Texas

East

:ft,'.;:
Lr

-ft

ft

K-

1,134,000 cl,174,801

Texas

Louisiana

Arkansas

5,550

205,950
144,900

Indiana

&

304,000

Ind.)

47,300

218,700

232,800

222,050

1,049,100

1,199,750

+

4,150

79,450

72,100

232,500

7,350

244,050

235,450

314,350

3,200

323,500

307,550

73,685

73,600

100

73,500

72,350

3,450

95,350

+

354.400

295,150

18,200

b20,850

+

—

102,600

103,200

60,200

63,200

—

/

Wyoming

23,700

Montana

Colorado

297,050

322,900

19,800

21,800

ft +

4,500

100,500

93,250

i

2,400

60,000

38,000

3,007,000

3,666,800

Total United States

21,600

5,750

77,900

108,800

225,750

2,868,300

2,911,300

621,800

20,600

632,900

595,800

3,335,000

246,350

3,501,200

3,507,100

PRODUCTION OF GASOLINE; STOCKS
AND UNFINISHED GASOLINE AND GAS AND FUEL
OIL, WEEK ENDED MAY 2, 1942
:- v:-:
STILLS;

in

Capacity
,

:

% Re-

porting

!

Production,

Louisi¬
North
Arkansas

Louisiana

-

B.

of

eStocks

of Gas

of Re-

Oil and

sidual

Distillate

Fuel

Fuels

Oil

92.0

501

3.995

382

628

703

89.7

2,498

21,842

2,558

3,383

418

81.1

355

84.9

1,260

10,072

886

1,663

138

50.7

83

60.1

292

2,481

293

583

11,576

57,988

4,366

*

1,454

75.1

591

90.9

17,179

M.
86.9

3,441

73.5

10,371 clOl,376

29,638

79,939

25, 1942

4,684

86.9

3,506

74.9

10,535

102,897

29,240

81,107

Bur.

basis

May

of

Mines

1941

3,

the

•At

180

v

■

,

32.021

95.823

12.188

3,772

11,052,000

17,561,000

$219,561,000

NATURE

30

Aug.

31
31

Sept.

30

Julyy

July

236,010,050
235,034,177
215,881,724

Aug.

Sept.

Oct.

31

221,115,945

Oct

Nov.

30

222.599,000

Nov.

Dec.

30

232,644,000

Dec.

1941

Jan.

31

229,230,000

Jan.

Feb.

29

233,015,000

Feb.

Mar.

30

229,705,000

Mar.

223,305,000

Apr.

Apr.

30

'

Issued By

under

ease

quantities of 1,000 to
per

or

ore

in

10,000 tons

in which the base
high-grade 48% Mn ore

contract

orice

has

purchases

manganese

on

been

$48

raised

per

ton.

further reported

unit,
The publication
to

as

$1

per

follows:




037

tons,

tion

of

under
tion

way

of

that

indicating

the

metal

for

on

and
domestic
mained unchanged.

eign

in

drying

up

;

,

•

,

ft

,■

%

79

offices,

gional

three

re¬

offices

area

throughout the country are dis¬
Conservation

Soil

,

activities

Service

'

,

ft

iii addition

of

pervised

-

by

one

formerly
or

su¬

area

more

offices in a State will be handled

from

single State office.

a

ft
1941-

$213,685,000
206,149,000

May

31___

June

30

$215,005,000
212,932,000
209.899,00C

Tin

Further restriction in use of tin

188,350,000

July

31

31

181,813,000

Aug.

30___

197,472,000

176,614,000

Sept.

30_

176,801,000

to conserve

184.806,000

ity tin
continues at 52c. per
pound, all positions. Chinese, 99%,
is quotable at 51.125c. per pound.
London tin not quoted.
.ft

_

186,789,000

Oct.

3 U4.

196,683,000

Nov.

29

208,659,000

Dec.

31___

193,590.000

___

194,220,000

1942—

197,278,000

31_

212,777,000

Jan.

31

28

211.865.000

Feb.

28___

i._ 217,312,000

Mar.

31_i._

-l- 219,561,000

Apr.

30

both for¬

30

190.010.000

for containers is

182.675,000

planned by WPB
supplies. Straits qual¬

Quicksilver

177.293,000

___

Trading in quicksilver was de¬
scribed as routine in character,

The emergency

because

continue

as

in

market in London has been

jthe

and

past, a certain quantity being set

the

At"

grades during the

market

in

week,

at

Zinc

•

with

line

tonnages

Act

The Division of Industry

cept on presentation

("E.

OF METALS

an

by the cus¬

allocation

Domest., Refin.

certificate

be

thought that the supply situation first

of

'

issued
each

on

or

month.

about

Zinc

the
pro¬

Exp., Refin.

&

M. J."

Straits Tin,
New York

QUOTATIONS)
Zinc

-Lead
New York

St. Louis

•

St. Louis

11.775

11.700

52.000

1

11.775

11.700

52.000

6.50

6.35

\ 11.775,

11.700

52.000

6.50

6.35

8.25

11.775'

11.700

52.000

6.50

6.35

8.25 \

11.700

52.000

6.50

6.35

8.25

11.700

52,000

6.50

6.35

8.25

>

11.700

52.000

6.50

6.35

8.25

:

>/;'

ft,4

ft 11.775

5

>

ft 11.775,

?6

■

Average

11.775

Average prices for

,

6.35

calendar week ended May 2 are:

8.25
,

8.25
'

Domestic

export copper, Lo.b. refinery, 11.700c.;
Straits tin, 52.000c.; New York lead. 6.500c.; St. Louis lead, 6.350c.;
St. Louis zinc, ,8.250c.; and silver, 35.125c.
.>ftftft-v ft ft:
f.o.b. refinery, 11.775c.;

copper

above

The

are "M. & M. M.'s" appraisal of the major United
reported by- producers and agencies, > They are reduced

quotations

based on sales

markets

States
to the

noted. All prices are in cents per pound.
Copper, lead and zinc quotations are based on sales for both prompt and future
deliveries; tin quotations are for prompt delivery ■only.
basis of cash, New

In

figures

prices

York or St. Louis, as

trade,' domestic copper prices are quoted on a delivered basis; that is,
consumers' plants.
As delivery charges vary with the destination, the
above are net prices at refineries on the Atlantic seaboard.
Delivered
in New England average 0.225c. per pound above the refinery basis.
ft . _ . ft
the

delivered

tomer of

at¬

Mon¬

from

30

ftft.

Oper¬

Senators

pur¬

was

6.50

2

J

by

The meeting

lahoma, and Minnesota.

PRICES

—j—Electrolytic Copper
v

in Congress

tana, Idaho, Utah, California, Ok¬

unchanged.

Apr. May

law.

tended

the trade

move

no

of the Silver Purchase

and the domestic silver

chase

The price situation con¬

believes.
tinues

for repeal

by

released

officials in Washington,

A

:

•

informal meeting held in

he knew of

going into complete control so far
as distribution is concerned, sales
in the future will move more in

and

.

an

against

the

during

S. Treasury
unchanged
at

the U.

also

the week previous.

■

lead

common

<

5,346 tons in Washington April 29, Secretary
Shipments for Morgenthau assured Western Sen¬
ators that the Treasury did not
the week ended May 2 involved
plan to seek repeal of silver legis¬
5,205 tons, and the backlog de¬
lation.; Moreover, he stated that
creased to 89,349 tons. With zinc

last

DAILY

of

and
are

quiet

price un¬
The New York
the

35$c. and, 35c., respectively.

industry sold 3,220 tons

zinc

of the ordinary

conservation

prices

of

The Prime Western division

pool in lead for

of

Official

needs.

gency

with

steady,

changed at 23^d.

aside from time to time for emer¬

released promptly,
the plan of setting aside a per¬
centage of the domestic output
each month may be modified. On
the other hand, the Government
is stockpiling lead of foreign ori¬
gin.
Domestic
consumption
of
lead is being held down to about
70,000 tons a month. Scrap lead
is
coming out more freely
to
smelters

will

bution

re¬

copper

under WPB regula¬ Operations. Allocation certificates

Those in the

1942

12,

ft

May was established officially at
15% of March's rate of produc¬
tion. In view of the fact that pool

industry who i will

tions.

MAY

elimination

continued.

at

shown

Export

is

of land resources

use

the Food for Freedom pro¬

the

to

,

Dealers' Selling Rates
ft

£

(

Consump¬
non-essentials issued by the Director of Industry

promptly.

copper

got

more

31

6.50c., New York,
6.35c., St. Louis.

alloca¬

promote

It is announced that

$138,809,000

*

,

Lead

tinued

May

to

23,263,000

Total

I

'

price schedule on

efficient

7,113,000

ACCEPTANCES,

BANKERS'

Markets" in its issue of May 7 reported that
ations, WPB, on May 1 issued
the formal zinc order placing the metal under full allocation on General Preference Order
M-ll,;
June 1 was issued during the last week. The regulations, which were
together with amendments, plac¬
about in line with expectations, were issued in time to permit the
ing zinc under full allocation, ef¬
industry to study the document well in advance of the effective date. fective June 1. The plan control¬
Confusion about the status of ferromanganese prices was cleared up
ling distribution of zinc has been
on
May 1 when OPA announced^
drawn up along the lines of the
Copper
<
that higher ore costs warrant an
regulations governing copper.
advance in the price of $15 per
Sales of copper in the domestic Producers of
zinc, all grades, will
ton. Metals Reserve Co. issued a market for the week totaled 51,- not be
permitted to ship zinc ex¬
domestic

28,651,000

said,

Department '

be

gram.

the last
week
amounted
to
6,267 tons.
Quotations on common lead con¬

WPB—Ferromanganese Advanced

would

reorganiza¬

BY ACCEPTING BANKS

31__

strictly

Prices

tons in March.

domestic

,

the

tion,
~

9,767,000

15,609,000

14,256,000

;

-

Net result of the

April 30, 1941

in

"Metal and Mineral

of

erably.

March 31, 1942

duced from foreign ores in bond with
the
price
situation
un¬
con¬
find that may be re-exported provided an changed. Spot metal in New York
extra supplies of copper are be¬ export license has been issued by held at $197.30 to $199.21.
Office
of
#
Export Control,
ing stored by the Government. the
Silver
The tonnage sold during April in¬ Board of Economic Warfare.
During the past week the silver
volved 95,139 tons, against 87,682
Zinc oxide and zinc dust distri¬

might

Sales
•

~

CREDIT

li.496,000

31

June

244,530,440

at

in transit, and in

Non-Ferrous Metals—Zinc Allocation Order

new

OF

April 30, 1942

Washington

office will be reduced consid-

$42,268,000.

year,

the

and

offices
for

1940—

May

$246,574,727

31

91,889

e At refineries,

301,000

$182,675,000

orders.

barrels; unfinished, 7,573,000 barrels,
pipe lines.
request of the Office of the Petroleum Coordinator.

/

field

82

Service, including three major
regional
headquarters.
The
staffs of the remaining regional

«v

/

to close

necessary

offices of the Soil Conservation

667,000

11,302,000

%

31, 1939:

be

495,000

$177,293,000

ft
%■

1939—

_

93,803,000

Finished,

a

bulk terminals,

i/2

June

15,694

65.0

160

84.9

4,684

S.

U.

13,943

45,807

1,549

84.5

May 2, 1942_
U. S. B. of M.

basis April

f; *

-

eStocks

174

89.7

___

basis

Tot.

,90

May

totals

784

787

S.

U.

228,000

3,TOT,000

'f\ the Department said it would

4,962,000

29,1J6,000
1,764,000

%

...

2,528,000

•

31,259,000

,

month since May

all

784

2,383

_

California
Tot.

184,000

2,394~000

PRIME

ON

3,357,000

1,231,000

;

^ 884,000 ^

750,000

metal is being

Inland Texas—

and

Appalachian
Ind., 111., Ky._—
Okla., Kansas, Mo
Focky Mountain

5,270,000

11,558,000

}

The following table, compiled by us, furnishes a record of the
volume of bankers' acceptances outstanding at the close of each

Gulf,
Gulf,

5,147,000

of others
$52,596,000
Decrease for month, $7,172,000.

150

•Combin'd: East Coast,

ana

919,000

25,087,000

Bills

trolled consumption now

,*»

at ReStocks
Crude
fineries Finished
Runs to Stills Includ. and UnDaily
% Op- Natural finished
Average erated Blended Gasoline

1,604,000

147,109,000

•

$125,680,000

60

120

OF

reported

23190

3,943,000/'

Dealers' Buying Rates
i/2
■

30

c

2,806,000

15,388,000 "

-

RATES

MARKET

9,844,000

17,356,000

;

$86,213,000

CURRENT

113,135,000

9,213,000

2,998,000

assigned to work
with
farmers, - local
groups and other agencies
in
solving
production
and '" con¬
servation problems.
To do this
directly

$29,792,000

$31,301,000

110,096,000

2,525,000

offices will be

'

.

$103,352,000

BILLS HELD

bills

/.

April 30, 1941

1942

16,882,000

goods stored in or shipped
between foreign countries

Gasoline

"

,<•*.'

1

Poten-

include

section

this

.

*

Daily Refining

Texas

credits

'■*

•

March 31,

16,703,000

Based on

Own

DISTRICTS (

: >A $96,697,000
.____

realignment of the
skilled technical Tmployees now working in Wash¬
ington,
regional
and
other
Through

■'

$31,272,000

TO

war¬

The Depart¬

ment in its announcement said:

STATES

OUTSTANDING—UNITED

Decrease

$5,382,000.

Dollar exchange

plus an estimate of unreported amounts and are
therefore on a Bureau of Mines basis

V

Rate

shipments

Domestic warehouse

of Barrels of 42 Gallons Each)
Figures

'

')■

tial

month,

1940—

(Figures in Thousands

.

for

1——

Domestic

for week ended 7 a. m. April 29.
c This is the net basic 30-day allowable as of April 1, but experience indicates that
it will increase as new wells are completed, and if any upward revisions are made
With a few exceptions, notably Panhandle
(shut down 10 days) and aviatien grade
fields (nine days) the entire State was ordered shut down on April 3, 4, 6, 6, 10, 11 12,
13, 17, 18, 19, 20, 24, 25, 26, 27, 29 and 30.
d Rcommendation of Conservation Committee of California Oil Producers.
FINISHED

San Francisco

3,800

5,100

50

;

Exports

26,000.

TO

Louis

Imports-

Kans., Neb., Miss., Ind. figures are

RUNS

St.

Dallas

>

CRUDE

8

Minneapolis
Kansas City

derivatives recovered
rates were for crude
oil only.
State allowables are also calculated on the same basis beginning with April.
It may be that certain wells will be found incapable of producing the
allowables
granted.
Actual State production may, for this reason, prove to be less than the
allowables.
The Bureau of Mines reported the daily average production of natural
gasoline in January, 1942, in barrels as follows:
Oklahoma, 29,000; Kansas, 6,000;
Texas, 114,000; Louisiana, 21,000; Arkansas, 2,000; California, 43,000; other States,
b Okla.,

Chicago

11

petroleum liquids, including crude oil, condensate and natural gas
from ojl, condensate and gas fields.
Formerly the recommended

including New Mexico;

7

19,100

i:

recommendations represent the production of

a.Beginning with April the O.P.C.

Atlanta

73,600

92,600

2,850

73,650

d659,800

659,800

California

6

I

:

Days

2,713,200

86,000

86,000

Mexico

>•: Total East of Calif.

+

5,250

6,900

—

Richmond

28,450

3,650

21,600

:

5

r

&

2,250

90,750

88,900

Cleveland

10

175,100

181,250

__

Michigan

New

1
-

(not incl.

Eastern

4

;
'

;

help with

time land problems.

April 30 follows:

RESERVE

,

■;

_

ACCORDING

896,500

b91,250

:'

Illinois

74,950

42,400

49,800

._

210,250

338.466

74,000

_

Mississippi

111.

313,000

__

125,800

176,950

79,450

81,850

Coastal Louisiana
Total

135,100

73,900

and ranchers more

agency,

April 30, 1942

76,850

89,450

14,250

114,500

FEDERAL

Grand Total

11,550

146,400

Louisiana

North

Philadelphia

12

50,050

78,050

Central Texas—

East Texas

Total

+

140,150

West Texas

Boston

New York

3

Decrease

78,500

Panhandle Texas

1
2

9

436,900

servation Service to give farmers

credits.

ACCEPTANCES

BY

'

Kansas

DOLLAR

Federal Reserve District—

Ended

Oklahoma
__

BANKERS'

Week

Change

warehouse

domestic

The Reserve Bank's report for

PRODUCTION (FIGURES IN BARRELS) / ' -

CRUDE OIL

and

ments

v

production of vital war
crops, the U.
S. Department of
Agriculture on May 5 announced
a reorganization of the Soil Con¬
per-acre

$182,675,000 outstanding on March 31 and with $219,561,000 on
April 30, 1941.
Aft
/'-ft'fA-AA
The decline in comparisons with a month and a year ago were
attributed to decreases in all branches of credit except domestic ship¬

follow:
Reports received from refining companies owning 86.9% of
the 4 684 000 barrel estimated daily potential refining capacity of
the United States, indicate that the industry as a whole ran to
stills
on a Bureau of Mines' basis, 3,441,000 barrels
of crude oil
daily during the week, and that all companies had in storage at
refineries, bulk terminals, in transit and in pipe lines as of the
end of the week, 101,376,000 barrels'of finished and unfinished
gasoline
The total amount of gasoline produced by all companies
is estimated to have been 10,371,000 barrels during the week.. DAILY AVERAGE

More Soil Conservation;,
Calling for greater use of soilsaving methods to increase; the

of

by the Office
reported by the Institute

ommended
tails as

Thursday, May 14, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1874

quotations for copper are

reduced to neftat refineries on the Atlantic sea¬

business, owing to World War II, most sellers are restricting offer¬
transactions, dollar basis. Quotations for the present reflect this change
in method of doing business.
A total of .05c. is deducted from f.a.s. basis (lighterage,
etc.) to arrive at the f.o.b. refinery quotation.
board.

On foreign

ings to f a s

Volume 155

a

New York Stock
The

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4072

Securities

1875

Moody's Bond Prices And Bond Yield Averages Moody's Daily
Commodity Index

Exchange Odd-LoJ Trading

.Moody's computed bond prices and bond yield averages are
Exchange Gommission has. made .public a. —
summary for the weeks ended April 25 and May 2, 1942, of complete
given in the following tables:
—
figures showing the daily volume of stock transactions for the
/
, MOODY'S
BOND PRICESt
odd-lot account of all odd-lot dealers and specialists who handle
(Based on Average Yields)
odd lots on the New York Stock Exchange, continuing a series of
V. S.
1942—
Avge.
;;\V- X'xy X y v'r;X"■ vV'
y/"V:;'.'
current, figures being published by the Commission.
The figures
Govt.
Daily
CorpoCorporate by Ratings •
Corporate by Groups •
are based upon reports filed with the
Bonds
rate•
Aaa
Aa
A
Baa
R.R.
P. V.
Indus
Commission by the odd-lot Averages
dealers and specialists.
117.72
106.56
May 12
116.22
113.12
92.06
107.44
96.69
110.70
113.70
*

■v

and

Tuesday, May -5——231.6
Wednesday, May 6———231.7
Thursday, May 7—232.3
Friday, May 8i«—232.3
Saturday, May 9
232.0
Monday,. May 11
232.0
Tuesday, May 12——l-'-L.-- 231.9
Two weeks ago, April 28-—*.-:
230.1
Month ago, April 11—233.7

,

,

.

—

■

-

117.74

106.56

116.02

113.12

107.44

92.20

96.69

110.70

113.70

117.76

106.74

116.22

113.12

107.62

92.20

96.69

110.70

113.70

Year

117.79

106.74

116.22

113.12

107.62

92.20

96.69

110.70

113.70

1941

7

117.83

106.74

116.22

113.12

107.44

92.20

96.54

110.70

113.70

6

117.98

106.74

116.22

113.12

107.62

92.06

76.54

110.70

113.70

118.01

106.74'

116.02

113.12

107.62

92.20

96.69

110.70

113.70

117.86

106.74

116.22

113.12

107.44

92.20

96.69

110,70

113.70

117.98

108.74

116.22

113.12 * 107.44

92.20"

96.69

110.70

113.70

117.90

106.56

110.70

113.70

STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODD-LOT DEALERS AND

SPECIALISTS ON THE NEW YORK STOCK EXCHANGE
Week Ended-

.•

May 2

April 25

Odd-lot-Sales by Dealers:
?
(Customers' Purchases)
Number

of

orders

'Number

of

shares

XyX

11,155

j

-

11,500

.

4

__

'

(Dollar value

Odd-lot Purchases by Dealers;
:;
'(Customers' Sales)
Number of orders:
Customers'

\

269,088

281,874

$9,640,804

$11,246,664

Apr.

x^y,„w.
: /

/

other

sales..-i^^-1-^-.i-i;

267

2&33S

10,166

11,239

__

116.22

113.12

92.06

96.69

117.80

106.74

116.22

113.12

107.62

92.06

96.69

110.70

113.70

17

118.08

106.92

116.41

113.70

107.62

92.20

96.85

110.88

113.89

118.06

106.92

116.41

113.89

107.62

92.35

97.16

110.70

114.08

118.10

106.92

116.22

113.70

107.62

92.20

97,00

110.52

114.08

118.20

106.74

116.22

113.50

107.62

91.91

97.00

110.34

113.50

117.80

106.21

115.63

113.12

107.09

91.34

96.85

109.79

112.93

117.33

106.21

115.43

112.93

107.27

91.34

96.85

109.60

112.75

117.32

106.21

115.63

112.93

107.27

91.62

96.85

109.79

113.31

116.34

106.39

115.63

113.31

107.62

91.62

96.85

110.15

2

Mar. 27

20
'

•

10,433

11,574

9,111

9,262

251,781

269,438

Customers'* total'

,

24

'

shdrt

•Customers'

2

;

J3

Feb.

27

—

6

—

,

107.44

i

Number "of shares:

•

v

'

,.'

-

j

,,

Customers' short sales

•

•Customers' other sales

j

Customers' total sales.

260,892

value^^_22-^--i-

1,299,460

Dollar

.

■

"

20—

13-

2 278,700

Jan. 30

$9,476,846

23

-

...

—

"

Round-lot Sales by Dealers; *
-

..

:. 120

820

Price Administrator Leon Hen¬

113.31

predicted on May 6 that
although
people
have
enough
money for the highest standard of
living in history, the national

116.32

106.56

115.82

113.31

107.80

91.62

96.85

110.34.113.50

level will be forced down in the

116.27

106.74

116.41

113.50

107.80

91.77

97.16

110.70

113.50

117.02

106.74

116.41

113.50

107.80

91.91

97.16

110.70

113.70

next 12 months to the low stand¬

117.08

106.92

116.22

113.70

107.80

92.06

97.31

110.52

113.70

117.51

114.08

107.62

91.91

97.31

110.70

113.70

107.62

91.91

97.31

110.52

113.70

■

106.92

116.41

113.89

9

118.00

106.92

116.61

114.08

107.62

91.77

97.16

110.70

113.89

2

117.61

106.04

115.82

113.50

107.09

90.63

95.92

110.34

113.31

1942—w

118.27

106.92

116.61

114.08

107.98

92.50

97.47

110.88

64,830

67,810

114.08

1942—__

115.90

106.04

115.43

112.93

107.09

90.63

95.92

109.60

112.75

120.05

108.52

118.60

116.02

109.60

92.50

97.78

112.56

116.4)

1941—.

115.89

105.52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

1 Yearago
May 12, 1941-

118.51

106.56

116.80

113.31

107.09

91.62

97.16

110.70

112.75

115.43

103.47

116.41

112.75

102.96

85.33

91.48

108.88

111.44

High
Low

1941—

High
64,950

Total sales

;

Round-lot Purchases by Dealers:
Number of shares.

•

'

customers'

odd-lot

orders,

'

to

liquidate

round lot are reported with '.'other sales.','

f

72,830

4

>■

v

-

Mr.

May

11,

1940_

explained the
rationing systems ' to
State representatives, who gath¬
ered in Washington to consider

MOODY'S

(Based
1942—
t

the

"•

1

;

•*

X#

"We

'

4-

Aa

:

Corporate by Groups
Baa

;r,r.

3.00

3.31

4.27

3.96

3.13

2.97

3.36

2.85

3.00

3.31

4.26

3.96

3.13

2.97

3.35

2.84

3.00

3.30

4.26

3.96

3.13

2.97

3.35

2.84

3.00

3.30

4.26

3.96

3.13

2.97

3.35

2.84

3.00

3.31

4.26

3.97

3.13

2.97

3.30

4.27

3.13

2.97

A

2.84

3.97

Indus

3.13

2.97

3.96

3.13

2.97

2.84

3.00

3.31

4.26

3.96

3.13

2.97

2.84

3.00

3.31

3.35

3.96

4.27

3.13

_

"But

,

minion Bureau of Statistics.

j

,,

<•,.*.

T

,

-

3.00

3.30

4.27 /"

2.97

3.30

4.26

3.95

3.12

2.96

action—it

3.34

2.83

2.96

3.30

4.25

3.93 X

3.13

2.95

3.34

2.84

2.97

3.30

4.26

3.94

3.14

2.95

the

.

.

3.96

3.13
.

2.84

2.98

3.30

4.28

3.94

2.87

3.00

3.33

4.32

3.95

2.88

3.01

3.32

4.32

3.95

3.19

3.02

3,01

3.32

4.30

3.95

3.18

2.99

2,99

3.30

4,30

3.95

3.16

2.99

3.29

4.30

3.95 t;

3.15

2.98

'

——

3.38

2.87

..MM.........-

3.37

.2.87

3.15

*

•

Commercial

i-

"

.

>

Passen-

cial

cars

and

(all

.Vehicles)

..

v

ger

-

and road

/;•
Total

tractors

cars

February
March

-

,1941—

February

a

ger--.

and

•

X

T3

Jan.

30

—

"23

16
-.

..

.

2

He

3.35

2.83

2.98

3.35

2.83

2.98

3.29

4.28

3.93

3.13

2.97

would

2.84

2.97

3.29

4.27

3.92

3.14

2.97

cratically,

3.34

2.84

2.95

3.30

4.28

3.92

3.13

2.97

2.86

2.99

3.29

2.98

4.29

3.93

I

3.13

High 1942
Low-X-1942'"

-•

High 1941
Low. 1941
„■

i

485,622

81,934

20,181

3,989

16,192

6,216

88,294

20,188

3,192

16,996

394,513

91,109

23,710

10,647

13,063

410,196

97,638

26,044

12,093

13,951

1940—
February
423,620

_

2.83

2.96

3.30

4.28

3.92

3.14

2.97

3.34

2.82

2.95

3.30

4.29

3.93

3.13

2.96

2.86

2.98

3.33

4.37

4.01

3.15

2.99

State.

3.39

2.88

3.01

3.33

4.37

4.01

3.19

3.02

not

'

3.34

2.82

2.95

3.28

4.24

3.91

3.12

2.95

3.42

2.86

3.06

3.39

4.47

4.03

3.20

3.08

organizations.

y'.X

3.25

2.72

2.85

3.19

4.24

3.89

3.03

2.82

3.36

2.81

2.99

3.33

4.30

3.93

3.13

3.02

3.54

2.83

3.02

3.57

4.76

4.31

3,23

3.09

into

X

2 Years ago

11,

Expressing
the
conviction
local
cooperation would
the programs successful,;

he added that if local commit¬

x

1940-it.^wi.y

tees

computed from average yields on the basis of one "typical" bond (3%$
maturing in 25 years) and do not purport to show either the average level or tht
average movement of actual price quotations.
They merely serve to Illustrate in a more eom
prehensive Way the relative levels and the relative movement pf yield averages, the lat
ter being the true picture of the bond market.,
•1

of

Indexes

computing these

was

to

■

Weekly Statistics Of Paperboard Industry
We give herewith

5.414

Paperboard Association, Chicago, 111., in relation to activity in the

4,587

paperboard .industry.

1933

—■

1

1934

1935

1941

'

9.3

6.1

5.4

-4.4

3.9

4.1

4.8

3.7

3.5

3.3

7.0

8.0

6.3
.2.7-

,

:

5.3

-

'

'

;

4.5

,

4.3

3.9

6.0

1941

r

5.5

.

.

6.4

/

3.7

5.5

5.4

.5.7,

6.5

6.6

,

5.0

'XX4.3

;

-

'

•

.

,

:

.

XO

,!■

4.4
4.7
4,,.

»er,1941

6.6

>—

6.2

-

6.7

.

4.8"

'

5.8

5.9

6.4

4.0

5.9

6.0

6.4

6.5

7.3

8.2

7.4x;.y

7.2

7.2

7.4

1942

7.7

8.2

8.5

7.7

8.3

8.9




6.1

demo¬

^

•

4.6
4.6

v

A-"- 3.9

■

v

6.9

;

7.7

5.2

7.6

5.4

7.6

^ 5.3
5.6 .X;.;.:

;X.'' 6.0
Xv 6.1 *

4.1

-

-

'

147,419
162,493

,

7

'

140,263
166,095
165,360
169.735
167,040

;

V

.

86
101!

530,549
827,514 "
525,088
514,622
528,698

101

522,320
610,542

163,067

177.823

165.081

505,233

101

14,——,150,745
21—157,563

Feb.

28

-i

102
102
102

101
101

368,424
367.424
165,240
164,601V

162,894

Feb.
Feb.

88
;

102

102
102
102

101
102

496,272
493,947

:

-

100

V

102

14

166,130

476,182

100

21

157,908

169,444

465,439

144,061

168,394

442,556

101
100

161,888

169,249
153,269

100
S3
94

101
101
101

93

100

90

99

7

-

i

140,125

—

;

Apr.
Apr.

6.3
6.8

4_
11—

——

129.834

153,442

139.026 V

156.201

436,029
428,322
404,199
388,320

135,273

152,569

371,365

145.000

—

Apr.

18——

Anr.

25———————

—

.

:
V

.

May

2—

4.5

7.3

4.5

7.2

4.6

7.1

Note—-Unfilled orders of the prior week plus orders received, less production, do not
necessarily equal the unfilled orders at the close. Compensation for delinquent report?,

7.7

orders made for or filled

7.8

orders.

'•

XX'

Cumulative

Mar. 28

"

m

'

Mar.

5.9
X

4.1

5.0

'

Percent of Activity
Current

Tons

Mar.

5.9

i:

: Tons

6.4

5.8

3.9-xy.

;
X.

x

8—

17—167,846
24—
161,713
31
181,070

Mar.

5.0
5.3

i

"

::

institutions

home-owner

9%

v

stock, and other items made necessary adjustments of

unfillej

brought

quarter's contribu¬

of

the

to

credit

high

the
to

mark

achieved during the same period
a

according to
the
Sayings and Loan
League, Chicago. A gain of 13.8%
year

United
in

ago,

States

March

was

101
101
101
101

-1, 6.1

'

v

c;

first

these

nation's

ment

6.4

H

6.6

6.5

X

6.0

'

yf,;;

4.2 '

These

<

10—w———.

Feb,

of

loan

volume

represent the total pared with February

Orders '.
Remaining

Production

Tons

Jan.

Jan,

1

Received

,

Jan,
Jan.

6.2

;

6.5

6.3

Jan.

,

4.8,.
'4.4..

1942

tion

by the League.

1942—Week Ended—

5.3

4.2-

4.3

4.9

:::v 6.8
'

,

I-

olyX 4.4

■

6.4

5.9

,

.

6.5

6.8

—

-r

the time operated.

STATISTICAL REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
Orders

4.2

.

6.2 L

6.4

—

x

4.5
;

■

-

■

6.5

6.9

1941

sr.

4.3

4.5

'6.2^;-v

on

advanced to equal 100%, so that they

,

4.2
'

activity of the mill based

are

Period

'*> '

6.1
.

;

1941—>r, 1941 —■t 1942 —
y. 1942 —

,

4.2

production, and also a figure which indi¬

Unfilled

•.

:

6.3

■

.

4.4'.

.
.

e.o<

,

yy- 3.5

'4.1

83% of the total in¬

statement each week from each

industry.

..

4.0

'<

3.9

3.6

'

6.2 ' 'A;:
6.2
•

6.2

'

—

&

6.2

r

6.2

.5.6

Month— v-xx/,

1941 „—
February, 1941 —
March, 1941
April, 1941
May, 1941
June, 1941

6.7

6.9

V'.

January,

4.6

6.9

6.3

—-

....

(200)

figures

a

X:;XX 3.5%

,

2.7

5.3

1940

4.3

3.0

3.9

1939

(10)3.2%
,

,

5.0

6.3

4.8

•
—.

1.7%
2.8

V

3.4

3.4

1936
1938

*

(15)

2.6%
3.7

Yield

Insurance

Banks

3.7

•

1937

Average

°

(25)
.

3.5

~

—

-.'.v'.i'

•

the

within

member of the orders and
cates the

ON 200 COMMON STOCKS

Utilities

7.4

7.3

1932,

the

and remodellers in March

latest figures received by us from the National

12,779

8.7

.

under

$87,367,000 which savings,
building and loan associations ad¬
to home buyers, builders

12,025

6.6

tl.4

.193T'.^——

proceed

cratic system.

vanced

16,612

(25)
4.4%

(125)

4.0%

success

Advances Near Record

18.193

p..:,

: 4.9

a

The

70,698

Railroads;

>

make

not

pub¬

66.276

MOODY'S WEIGHTED AVERAGE YIELD

1930 '

could

them, it would be impossible;

coupon,

352,922

'

1929

politics in the

make

These prices are

337.756

Moody's Common Sfock Weighled Average Yield
Year—

,

He added that he would

tolerate any

that

1941-L-L

12,

The members of this Association represent

.

demo¬

with local persons,
as
possible, organized
control groups
for each

3.34

dustry, and its program includes
*

administered

3.39

Year ago

May

,

.

be

far

as

f

.;i:,

March

March

in
we

3.34

3.36

V20'.

t The latest complete list of bonds used In
lished in the Issue of Oct. 2, 1941, page 409.i

trucks

cars-

'"V

—

that

.

62,200

-u—

-V

offensive
months

promised the group that
the price and rationing systems

,.

1942—

;

15

'

month

.

••

Commer-

■

,i

trucks

Passen-

Total

Year

:

•

Canada (Production)

United States (Factory Sales)

for

probable
to

get a civilian standard of
living equivalent, to 1932, which
was the low of all lows during
the depression."
"
'

3.01

X

is
12

will

2.98

3.18

y

next

.

Feb,;'*27

May

NUMBER OF VEHICLES (INCLUDING CHASSIS)

not

are

we

needs

2.84
2.83

3.38

—.—.*

—

'

3.35

3.38

.IS
6

-

Figures: of automobile; production in February, 1942, appeared in
the April 16, 1942, issue of the "Chronicle," page 1547.
/

because

3.34

3.35

20

mercial cars, trucks, or road tractors have been included in the num¬
ber shown as making passenger cars and in the number making com¬

respectively. The figures for
passenger cars include those for taxicabs.
The figures for commer¬
cial cars, trucks, and. iroad tractors include those for ambulances,
funeral cars, fire apparatus, street sweepers, station wagons, and
buses, but the number of such special purpose vehicles is very small
and hence a negligible factor in any analysis for which the figures
may be used.
Canadian production figures are supplied 'by the Do¬

the

country

3.96

4.26

.

of

money

2.97

4.26

3.31

X

.

of

goods
been," Mii.

"Out

2.97

3.30

3.00

2.85
.2.84

said.

going to have for civilian pro-'
duction enough metals, skilled
labor
and
materials—using
these to make bombers, tanks
and other
things that a free

x 3.00

3.35

3.35

,

X 3.00

P. V.

highest level

ever

in people's
pockets, we would be able to
buy a standard of living ex-,
ceeding all the dreams of the
idea boys in the back room.

''

1

mercial cars, trucks, or road tractors,

at the

are

'

"

.

Corporate by Ratings

"

2.84

Aaa

3.36

;

£

17

r

manufacturers also making commercial cars, trucks, or road tractors).
It should be noted that those making both passenger cars and com¬

on

of production of civilian

amount

i';

*

his remarks, Asso¬
ciated Press advices stated: ^ '

Prices)
•

trade
v

Reporting

Henderson

3.36

3.35

,~M.w

Capt, Bureau of xthb Cerisus^ Department of Commerce. .
:/
2
I ' Statistics for 1942 are based on data received from 69 manufac¬
turers in the United States, 20 making passenger cars and 63 making MarX>'27-^^^
''Vy"

Individual Closing

State

of

removal

barriers.

"

_

.

2

AVERAGES t

\feXXXX''

rate

,

12

Factory sales of automobiles manufactured in the United States, ^ ■'y:;i 1;
XX.,.
9
including complete units or vehicles reported as assembled in for¬
eign countries from parts made in the United States, for March, 1942,
7
8
consisted /of 94,510
vehicles^of Hvhich*;6,216' Were^passen^
5
88,294 commercial cars, trucks, and road tractors, as compared with
JSi.lX;. 4
134,134 vehicles in February, 1942, 507,834 vehicles in March, 1941,
2
'v.
and 423,620 vehicles in March, 1940.
These statistics comprise data
for the entire industry and; were released May 8„ by" Director J. C. Aprjx,24

on

Corpo-*

K': Average '

May

YIELD

BOND

Avge.

Daily,

-

.

,

Automobile Production Down 69% Since January

commercial cars, trucks, or road tractors (14 of the 20 passenger car

and

that there has

*

j'

-

Henderson

price

than a

long position which is less

a

ard of 1932.-

2 Years ago

tSales to offset

With "other sales,"-

are "reported

sales

and

Low

,

75,960

;

•

......

*Sales marked "short exempt"

-

68,630

220.0

derson

116.22

^

171.6

234.0

—————

'

106.92

Number of shares;

">. .'Short sales,
•: tother

17

Sees Living Standard
- j
At 1932 Low In Year

117.60

16

—_

Low—Feb.

1942 High—April 7
Low—Jan. 2

*

-

ago, May 12_„—191.8
High—Sept. 9
219.9

for

the

was

Total

first

as

com¬

reported
disburse¬

three

months

$243,656,000.

The League^.on°
May 11 further reported:
Construction loans of $21,775,000 represented a $1,000,000
gain over February but a $1,-:
000,000
drop
from
January,
showing the contradictory in¬
fluences of (1) war restrictions
on home
building materials in
March and (2) natural seasonal
trends toward higher construc¬
tion loan volume every spring,
according to A. D. Theobald,
Assistant Vice President-Treas-'
urer

tion

of the League.

lending

where

was

war

Construc¬
largely in areas

industries

have

given low-cost housing its chief
impetus of a generation, Mr.
Theobald

said,

WPB order L-41

although

the

had not then,

been promulgated.

Thursday, May 14, 1942

& FINANCIAL CHRONICLE

THE COMMERCIAL

1876

Y. Stock Exchange li:Fertillzer Ass'n Price Index Advances / /

Market Value Of Bonds On N.

A slight rise in the general level of wholesale commodity prices
announced on May .'7 that as of were
registered last week by the price index compiled by The
the close of business April 30, 1942, there were 1,163 bond issues National Fertilizer Association May 11.
In the week ended May 9,
aggregating $60,571,662,883 par value listed on the Stock Exchange,
1942, this index rose to 128.0 from 127.9 in the preceding week.
A
with a total market value of $57,923,553,616.
This compares with month ago the index was 125.9 and a year ago, 105.8, based on the
1,166 bond issues aggregating $60,578,981,933 par value listed on the 1935-39 average as 100,
/.,.•/
:
5-.
Stock Exchange on March 31 with a total market value of $58,The small increase in the all-commodity group index was due
140,382,211.
'
■
l "/>
•
* . v->
primarily to advancing quotations for cotton,- grains, and textiles.
In the following tables listed bonds are classified by govern¬
The sharpest advance was recorded by the farm products group in¬
:

York Stock Exchange

The New

<•

/■■-

,

31, 1942

-Mar.

—.Apr, 30, 1942

Government (incl.
State, Cities, etc.)—
companies:

S.

U.

/ $

•'v.// $

N. Y.

if.-vSi

42,752,196,854

^

-

Price

Market Value

Price

Market Value

;

$

■

42,923,656,980

106.21

;

34,756,820

99.43

34,957,700

100.00

103.16
93.70

15,075,000

100.50

13,539,969
17,070,yl3
14,250,000

103.77'

Building

17,357,214

•

equipment-

and office

Chemical

-

equipment

Electrical

—

97.84

36.325.000

103.79

■

92.16

<74,778,000

98.20

was

36,362,500

103.89

-

99.23

58,447,265

99.59

104.26

208,078,687

104.37

9,346,214

68.05

9,335,053

67.97

Machinery

45,118.317

98.99

45,151,559

Mining

92,306,155

57.66

50,863,746

100.15

92,106,938
56,943,303

596,517,259

102.21

and metals
(excluding iron)—-—
Paper and publishing

'

Petroleum
Railroad

—

63.35 '

6,549,969,131

—

;

102.56

63.96

'Retail merchandising

12,000,749

78.47

12,078,295

78.61

71,963,790

97.94

96.35

62.67

building and operatingShipping services
Steel, iron and coke

11,127.840

97.00

70,795,303
10,898,400

17.585,703

63.46

17,365,882

552,625,211

100.20

553,495,730

25.923,310

97.65

25,758,058

97.03

Textiles■'

39,782,813

118.15

39,881,782

105.79

3,263,723,142
102,768,195

106,21

Utilities:

•

(operating)

"'Gas and electric
n

Gas and electric

:

1,191,843,115

1,194,599,945

84,495,266

57.36

81,363,663

55.11

99,012,100
31,545,000

companies oper.

S.

Miscellaneous businesses
:■

S. companies
government
Foreign companies
. b
,tv
All lifted bonds
Total

56.71

31,697,500

103.93

Each Group

the

Bears to

t''< '*

'

"

'

'''

'h

T'

1

/ /,r

May 2

May 2

1942

1942

125.3

126.1

;:

'

__

Oil

Cottonseed

Cotton

listed

___

_

__

■■■■

—

80.61

699,411,026

80.76

Metals

6.1

Building

58,140,382,211

95.97

1.3

Chemicals and

95.63

materials
drugs.
_

.3

Fertilizers

.3

Farm

108.9

114.0

137.3

100.5

190.5

193.2

113.2

113.8

115.9

94.3

118.3

_

_

__

_

machinery

30

May 31
June

29

July

31_r

—

Aug.! 31
Sept. 30
31

Nov.

30_

future."

I
for

of the

The

continued:

feel,

named

of
op¬

trust, that
the First

oldest

Ameri¬

republic,
is
truly
your
home, a place where the ideals

__

__

-

Washington,- Bolivar,- San
Tiradentes, > O'Higgins ;

Martin,

other

the

and

liberators

great

find expression in a Con¬
gress devoted to the Interests
may

of children.

.

—

deliberations

"Your

v

the

and

firmness of your purpose to ap¬

132.3

131.8

98.6

117.4

104.5

ply to the practical concerns of
every-day life the principleswhich

128.1

127.9

128.1

114.9

149.5

149.1

149.0

123.5

104.4

104.4

103.4

151.7

151.6

139.9

120.7

120.7

120.3

118.8

118.7

118.8

107.0

115.3

115.3

115.3

101.2

104.1

104.1

104.1

99.7

128.0

127.9

125.9

105.8

116.5

:

declare,

here

will

you

will contribute in great measure,:;,to the extension and fulfillment

104.5,.

92.86

31

Feb;

28—'

94.32

of the
the

good-neighbor policy as
principle of interna-'

basic

tional association."

92.48

52,321,710,056

87.87

June 30

53,237,234,699

94.80

90.14

July 31_iL__v

53,259,696,637

95.04 n

48,601,638,211

90.86

Aug. 30

49,238,728,732
49,643,200,867

91.33

Sept. 30

92.08

Oct.

31

50,438,409,964
50,755,887,399
50,831,283,315

92.84

Nov.

29

93.58

Dec.

31

-

Mar.>31——

May 9,

were:

1942,

1942, 99.6; May 10

May 2,

99.7;

___

—

.

94.86

53,418,055,935

94.74

55,106,635,894

95.25 7

54,812,793,945

94.80

55,033,616,312

94.50

_

Jan.

31

50,374,446,095

93.05

Feb.

28

50,277,456,796

92.72

Mar.

31

52,252,053,607

93.73

Apr.

30_

_

_

_

_

___

__

___

56,261,398,371

95.24

57,584,410,504

95.13

58,140,382,211

95.97

57.923,553,616

9o.ti3

the

steel products by subsidiary companies
of the United States Steel Corporation for the month of April, 1942,
totaled 1,758,894 net tons.
7
Shipments of finished

.

.

Hershey,
Selective

of

Director

May 2 instructed State
of

on

draft directors to include some

Highest April-Steel Shipments On Record

registered Feb.

who

men

16

and 36-44 age groups) "in
said

(20-21

the June calls. Gen. Hershey

the request came from the War
"If the / first' age
in the pre¬ Department.
group (men registered in October
ceding month (March), a decrease of 22,044 net tons, and with 1,687,and July, 1941) has been exhaust¬
674 net tons in the corresponding month in 1941 (April), an increase
ed, the call should be made only
of 71,220 net tons.

1942—

93.84

Groups

B.

Lewis

Gen.

Service,

;

53,216,867,646
_

__

To Call 2nd Age
r-Maj.

April shipments compare with 1,780,938 net tons

The

1942 to date, shipments were 6,895,312 net tons com¬

For the year

pared with 6,638,945 net tons in the

Sfafufory Debt Limit As Of April 30, 1942

:

net tons.*

of 256,367

crease

the

upon

.

second

groups

age

(Feb. 16,. 1942, registrants)," Gen.
comparable period of 1941, an in¬ Hershey's instructions said. {
1
' ' '* ' " •

"If the first; age group is not
shipments during April were the highest on record for that exhausted the; local board will
month in the history of the corporation.
call upon each group 'in propor¬
•In the table below we list the figures by months for various
tion to
the number of Class 1
periods since January, 1929; <
i"
registrants remaining in each."
The

-

//
The Treasury Department made public on May 4 its monthly re¬
port showing the face amount of public debt obligations issued under
the Second Liberty Bond Act (as amended) outstanding on April 30,

.

1942, totaled $66,402,752,921, thus leaving the face amount of obliga¬
which may be issued subject to the $125,000,000,000 statutory

tions

1,738,893

—^

Januarys
February
March

public debt obligations ($66,402,752,921) should be deducted $2,006,^198,132 (the unearned discount on savings bonds), reducing the total
to $64,396,554,789, and to this figure should be added $564,763,036 the
other public debt obligations outstanding which, however, are not

—

April

—-

1,548,451

1,780.938

1,720,366

1,758,894; '

1,687,674
1,745,295

—

-

—

September
October

—

-

' ? 907,904

November

.

1,296,887
1,392,838

With; respect to the

registration

of men 18 and 19 years

" 627,047 -

1,605.510

1,617,302
1,701,874

ident

550,551
509,811
524,994
484,611
615,521
635,645
730.312
749,328
765,868

1,110,050 inducted
931,744

;

745,364
885,636
1,086,683'

.

v

1,364,801
1,388,407

607,562

1,209,684

'1,455,604

-

1,529,241

1,572,408
1,425,352
1,544,623

1,345,855
Ml,406,205

20,458,937

14,976,110

11,752,116

*42,000

' 37,639

*44,865

29,159

*12,827

20,417,000

15,013,749

11,707,251

7,315,506

16,812,650

,

1,443,969

old, Pres-.v
his

told

Roosevelt

press

that he had
not received a report from Gov¬
ernment officials on whether he
would ask for a change in the

conference on May 1

1,480,008
1,500,281
1,262.874
1,333,385 present law to permit them to be

1,846,036

1,624,186

______

December

771,752
795,689

1^084,057.

1929

1938

570,264
522,395

845,108 '

931,905

.

1,668,637
1,666,667
: 1,753,665
1,664,227
1,851,279

-

July ___J_
August

subject to the statutory limitation.; Thus, the total gross debt out¬
standing as.of April 30 was $64,961,317,825.
The following is the Treasury's report for April 30:
Section 21 of the Second Liberty Bond Act, as amended, pro-

1,145,592
1,009,256

1,682,454

1,616.587 :

May——
June

<

1939"
870,868
747,427

1940

1941

1942;-

In another table in the report, the
Treasury indicates that from the total face amount of outstanding
debt limitation at $58,597,247,079.

.

base

National

47,665,777,410

«1941—
Jan.

52,518,036,554

49,611,937,544
46,936,861,020

—

combined

82.4.

1941,

94.22

31—

Dec,

Price

groups

on-1926-1928

"■Indexes

Average
Market Value

Apr: 30
May 30

—

Oct.

Under

service.

military

into

present law they are sub¬

,

Total

vides that the face amount of obligations issued under authority
of that Act, "shall not exceed in the aggregate $125,000,000,000
/ outstanding at any one time."
The following table shows the face amount of obligations out;

Treasury-

(maturity value)-

Adjusted

—:—

service

—

.

bills

(matur.

,

'

""

•

\w

1,953,364,000

•<

week

< *
18,632.862,225

$66,306,555,871

which interest has ceased—

^V;,-:"-.?"*-: •-=^'

-

weeks

.

APRIL

\>

30,

SUMMARY BY

[In

-

„

$58,597,247,079

1942

;

obligations

millions of

rent

V1

'V

,

Add'

other

public

debt

j

Matured obligations on
no

$66,402,752,921
2,006,198,132

—

/////:

$64,396,554,789

;

.

which interest has ceased-

—__i—'

interest

•

—

•

$195,990,180
11,306.480
' 357,466.376

„

;;.

...^

,.

746

V

Richmond

of April 30, 1942—_ 1J

"

'

*

Approximate

maturity

value.
Principal amount (current
debt statement, $8,951,013,118.

according to preliminary public




8,792
4,849

National City,Bank of New York;:

Egil Mack, Vice-President, Seattle

,

r

370

redemption" Value)
^

v:

-

'

City"__
centers*

I33 other

reporting centers

1

;

_i-_1

^Included in the national series covering

i

;

-

979

'

12,828

-

v

4.830 ;

\
\

6.938

1,059 :

141 centers,

323

4.962

4,097

1,445

22,363

19,152

302

4,590

3,796

189

2,669

2,218

291

c

313

reporting centers™.

cisco; I. C. Raymond Atkin, VicePresident of J. P. Morgan & Co.;-

5,935

Kansas

York

6,899

7,640

373

140 other

51,966

-

10,545

248 '

New

7,090
o

Foreign Exchange Control Board;.
P.
A.
Kinnoch, Vice-President,
American Trust Co., San Fran¬

389

Minneapolis

$64,961,317,825

8,403
54.479

Bank
of the:

697

434

City

563

the

557

2,010 ;

Francisco

1941

1942

4,074

Ended
May .7,

of

Chairman

f

Atlanta

Louis

13 Weeks

May 6,

and

"

Chicago

Total 274
Total gross debt outstanding as

is Presi¬

514

564,763,036

;

Na-i

First

901

657

Philadelphia
Cleveland

San

"

1941

5,282 '

York

Dallas

"

the

Governor

of Canada

-

^

May 7,

May 6,
1942

St.

obligations outstanding but

subject to the statutory limitation: j
-Interest-bearing
(pre-war, etc.) —
not

Bearing

zl

.

|

dollars]

•

Boston

bonds' (difference between cur-

redemption value and maturity value)

DISTRICTS

Week Ended

New

Issued

) under authority of the Second Liberty Bond Act, as amended
Deduct, unearned discount on savings

Salinger,T

Harry

of

tional Bank of Chicago,

Towers,

FEDERAL RESERVE

..4

public, debt

outstanding

of

which

the

Foreign

ended

RECONCILEMENT WITH DAILY STATEMENT OF THE UNITED STATES TREASURY,

amount

„

Vice-President

of

ended May 6

13

66,402,752,921

4

Association

of

of

convention

annual

as

Federal Reserve District—
:"

§:

30% From Last Year

ing centers there was an increase of 19%.

96,197,050

"V-

under above authority

amount of obligations issuable

To Meet In Ontario
The

reported by banks in leading centers for the dent, will; be held at the Seig¬
aggregated $12,828,000,000.
Total debits during niory Club, Ontario, Canada, on
May 6 amounted to $142,33G,000,000, or 13% June 4 and 5.
Various phases of
above the total reported for the corresponding period a year ago. international trade will be/dis-i
At banks in New York City there was an increase of 4% compared cussed and -included among
the:
with the corresponding period a year ago, and at the other report¬ speakers
will
be: Graham
F. ;:
debits

Bank

4.439.635.000

,

value)

Foreign Trade Bankers

be comprehended

Trade

Bank Debits Up

^

the

-

-■:

.

$47,673,693,646 U---.

'

Matured obligations, on

-

$12,239,863,225

.

■

Total. face

the year 1941, are subject

currently reported during

tary service.

Bankers

/>*/■/

Face

as

"

'

$35,909,784,700
10,957:211,250 ;
76,361,000
730,336,696

•

Treasury notes
Certificates of Indebtedness

16,825,477 ject to registration but not mili¬

,

i

-

—

Depositary

Treasury

shipments

adjustments reflecting annual tonnage reconciliations.
These will
In the cumulative yearly shipments as stated in the annual report.

$125,000,000,000

outstanding at any one time

Outstanding as of April 30, 1942:
Interest-bearing:

"*

7,286,347

to

Total face amount that may be

^Savings

•

•Decrease.
Note—The monthly

limitation:

,

t

Total

under this

/ standing and the face amount which can still be issued

by mos.

adjust

Yearly

.

.

will

city

midst

fullest

119.2

$

$
50,006,387,149

1

.:,A

All

100.0

'•

'■■■ "

1941—

Price

Market Value

Mar. 30——

.

1941

136.8

materials-

.3

May 10

1942

137.7

^

_

Apr. 4

101.6

__

Fertilizer

■>

"

159.0

_

__

..

Ago

Ago

136.8

_

commodities

Miscellaneous
Textiles

7.1

Year

; 122.4

_

_

Month

159.3

132.0

Fuels

8.2

"i

Average

-

the

the

message

President

-

138.7

_

___

__

_

Grains

the Exchange:

on

if940-~-

.

'

159.3

i:-Livestock:

;

table, compiled by us, gives a two-year compariand the total average price of bonds

_

_

Products

Farm

23.0

10.8

57,923,553.616

.-

Fats and Oils

50.53

52.44

•

the

the

of the total market value

son

"

■'

Foods

■-&?'

:Week

Week

Group

.

Total Index

78.47

77.99

1,174.247,263
698.171,779

in

"You

.

•

of
Preceding

Latest

13,384,634,521
1,132,679,684

13,298.937,720

assured

President's

1*1935-1939= 1001

<"

%

?;

17.3

\

.

Apr.

103,101,343

and

portunity

Compiled by The National Fertilizer Association

//'• /'■

U.

Foreign

The following

54.46

103.43

safeguarded; in

can

WEEKLY WHOLESALE COMMODITY PRICE INDEX

j

97.43

106.54

be
war

y.

25.3

106.21

utilities
—
abroad—

••'•vv;' Miscellaneous

95.77

98,139,642

(holding)—

•Communications
U.

_

in"

by

delegates, who came from such
long distances "in order that we
may counsel together concerning
the ways in which childhood may;

declines; in the second preceding week there were
17 advances and 11 declines.
*
.
.
7

100.26

3,261,225.966

•jTobacco

open¬

Congress

it

for

advances and 24

95.00

118.44

of the

expressed the wish
might have been possiblehim personally to greet the

that

'

,

the week 21 price series included in the index ad¬
vanced while only 4 declined; in the preceding week there were 11

read at the

message

the President

result of lower prices

:

beef, and chickens.

a

session

Breckenridge
Long, Assistant Secretary of State,1

During

100.18

598,723,403

6,617,350,832

cotton,

the food price index, -vflhich declined as a

were

world'"one

Washington,

rose

for eggs,

57.52

oRubber

.Ship

••

98.63
:.

previous week's loss.

of the

portion

good

a
raw

In

ing

building material and the fertilizer material indexes,
fractionally.
The only other group average to change

the

were

■

which

58,231,610

Land and realty

back

95.00 r

207,846,047

Financial
Pood

74.504,750

index

for

the

told

fighting to make the •
of hope and:
freedom and development for all'
human beings."
>

price index rose as a result of higher prices for cottonseed meal and
cattle feed.
Other group averages that advanced during the week

13,461,107

Business

Nations

future

and cotton goods took the textile
to the level of April 18.
An upturn in the price of

increases

Roosevelt

Eighth Pan-American Child Con¬
gress on May 2 that the United

gasoline was responsible for a rise in the fuel price index to the
highest level recorded in many years.
The miscellaneous commodity

Automobile
—

regained

Price

$

,/■

■

105.76

Amusements

'

which

dex

,

Average

Average
■r

and

with the aggregate market value

mental and industrial groups,
average
price for each:
s
f
Group—

President

,

.

Greets Child Congress T;

s

\

4.523

3.725

240

3.829

3,124

810

12,393

10,177

9,880

First

142,330

125,886

3.703

49,289

47.464

80,352

67,968

867

12,689

10-,454

with>1919.

Vice-President, The;

Bank,/.Seattle,;

National

and ; Philip P.-:McGovern, ;
Assistant Vice-President,
Manu¬

Wash.,

facturers

City.;

5,310

available beginning

Wilbert Ward,

Trust

Co.r New: York-

The Secretary of the Asso-<

ciation, Fred B. Tedford, AssistantVice-President: of
tional

P4ank

charge of

,

of

the

First

Chicago,

is

Na--

in )

arrangement^.,1

THE COMMERCIAL & FINANCIAL CHRONICLE

No Need To Register

.

/

;

}" * iPresident: Roosevelt
•at his press

May 1
voluntary regis-;

for

tration

women

of

'disclosed

-

conference

that plans

a

on

for

work

war

•

being;

The

President

decision

had

said

been

that

made

on

the basis of

a report from Paul V.
Director
of
the
War
Manpower
Commission, > which

"McNutt,

showedthat

•

there

are

more

Division, U. S. Department of the Interior;
in'its latest coal report .states that the total production of soft coal in
the week ended May 2, 1942, is estimated at 11,300,000 net tons.
This
indicates a slight decrease—200,000 tons, or 1.7%—from the output in
the preceding week.
<V; //. ■ .■... '
.

Securities amounting to
$366,854,000 were effectively registered
the Securities Act of 1933
during the first quarter of 1942,
compared with a quarterly average of
$696,788,000 for the entire
year 1941, the Securities and
Exchange Commission announced on
April 29. * After deducting securities registered for the account bf
under

The U. S. Bureau of Mines reported that production of Pennsylr

vania anthracite for the week ended May 2 was estimated at 1,321,000 tons, an increase of 32,000 tons, or
2.5%, over the preceding week.
When compared with the output in the corresponding week of 1941,
there was an increase of 263,000 tons (about 25%). The calendar year

others

there

who

want

jobs

are

Public

to date shows a gain of 13.5% when compared with the corresponding
period of 1941.1
-

than

work

available.

The

•

President indicated that there
about
Tor

1,500,000

United

the

Employment

Service

other

can

women

States

and

that

register at the
1,500 field offices throughout the
country.
Mr.
McNutt's
conclu¬
sions^

against

women
:

after

was

the

reached, it is stated,

consultation

with

women

.Board

and

other

NET

1,500,000 women
for work wanted jobs

registered
in war irn
;; dustry, the President, said ; that
apparently enough were seeking
-these jobs to meet the present sit¬
uation. The informal report of
the Advisory Council, the Presi¬
dent said, recommended that ex¬
isting States laws and regulations
governing working conditions for
;

,

should be maintained and

extended

to

where

States

safeguards
provided.
proper

decision

$May 2,
"■Bituminous coal—

not

not

Daily

million

more

or

that

additional

women

be

employed

in

indus¬

war

will

pansion of war production
bring
women
' into
war

rapidly 'to '-a

4,Od0',0ob—out
of

-total

jobs

probable total of
or an ^expected

20,000,000

or

more

war

Workers.

1941

1937

143,697

162,749

average-——

1,883

1,916

834

1,862

1,382

1,594

5,342

5,737

5,618

107,910

102,126

02,421

was

of

registering

referred

in

to

these

23, page 1619.

equiv.. of

output

—_—_—-

for

""Includes

of

of

purposes

WariFunds $162 Billions ;
The War Production Board

nounced

April

on

30

funds made available by
or

the

that war
Congress

Reconstruction

Finance

since

Corporation

June,
1940,
totaled
$162,416,000,000
when
'-President
Roosevelt
signed the
"Sixth Supplemental War Appro¬
priation Act of 1942

and net contract authoriza¬

tions
tion

cash appropria¬

carried

This Act

April 28.

on

of

The War

$19,138,000,000.

Production Board in its announce¬
ment further reports:

$162,416,000,000 total in¬
approximately
$6,000,000,000 for the Navy Depart¬
ment, which does not become

,

?,

spending

availablefor
fiscal

v:

until

1943, and has not been
officially for specific

702).

1939, page

yearbook,

^Subject

does not
contracted
by foreign governments for war
The

purposes.

total

include $4,096,000,000
'

production in the United States.
The

1

most

important

item of

expenditure provided for in the
latest

-

is

$8,761,-

airplanes,

g Posts,

appropriation
for

000,000

depots and stations call for $6,-

123,000,000, virtually double the
amount

previously appropriated

for such
ous

ered in the Act

^

Miscellane¬

purposes.

munitions and supplies cov¬
came

000,000.

-

to

$2,268,-

PRODUCTION

ESTIMATED

The Act also includes:

$750,-

000,000 for pay, subsistence and
travel

of

armed

the;

forces,

$728,000,000 for ordnance, $348,-

OF

§May 2,
Penn.

'

•

anthracite— \?

■

PENNSYLVANIA

$129,000,000

for

expenditures*"

r

miscellaneous
J




ANTHRACITE

May 3,

1942

1941

1942 ' '

1,321,000

1,289,000

tCommercial production

1,255,000

1,225,000

145,600

161,200

1,171,000

1,169,500

total——

AND

COKE

May 2,

May 3,

1942

1941

2,605,600

States

and

1929

.

washery

and

tExcludes

dredge

coal,

1,718,000

by

fuel.

colliery

\

WEEKLY

current

and

ments

are

subject to revision
,V; y; ,•

X

vJ

' v .'t; >' •' •.1
V

„

•

April 25

State—.

—

April 18
1942

3
41

53

53

11

116

1^

437

.....

Iowa

Maryland

_

1

977

-

v

__

New Mexico

Ohio

Pennsylvania bituminous
Texas—

__

Utah

;

Virginia

—

70

99

72

184

'713

508

1,471

.

3io

30

,

173

39

..

Ill

84

42

31

782

786

385
..

130

v

2

32

27

21

20

31

35

21

19

21

750

63

'

:>
?

2,888

153

158

5

6
"•

19

■

362

•

1,966

26 IK

7

.

70

16
60

36

30

2,310

4

30

Virginia—Southern

2,326

tWest Virginia—Northern

895

Wyoming

Total bituminous

_

_

i '1.

coal

EFFECTIVE

V

.

♦Includes

——

operations

on

I

'

tt-

records

♦"Alaska,

of

the

V

•

2,018 i-

766

3,531

45

121

15

20

44

288

.f\
.

■■••:'.

32

70

197

249

30

30

35

1,768
576

1,630

1,256

469

778

"71

116

105

84

:

•

6,705

10,836

1,289

1,318

689

902

1,615

1,974

12,789

12,833

'2,255

8,753

8,320

12,810

,

and

UAverage

South

weekly

Dakota

rate

included

for

with

month.

entire
"other

Western

Weekly Engineering Construction Sets Record
Spectacular
construction

week.

gains

in

war

construction

skyrocketed

engineered

volume to the highest peak in history
during the

past

The week's

total, $434,955,000, climbed 45% above the for¬
mer high of
$298,718,000 recorded for the week of July 10, 1941, ac¬
cording to "Engineering News-Record" May 7. ■ The volume was
138% higher than last week, and 502% above the
corresponding week
last year.

"

'

-

/*.-•

-

by 140%, and gained 753% over a year ago.
the prime factor behind the construction
gains, and in reaching a
new
all-time high, increased 144% over the
preceding week and
1,523% over the 1941 week. State and municipal construction was up
92% over a week ago, but was 12% below a year ago.
ago

than doubled its last week's

total, but

was

26%

lower than in the 1941 week.
The

Warrants

construction

Private

—-——

construction

—

Public, construction
State

and

Federalv

municipal

—•

aa-iix-.-—: v>

last week and the

for

^

1933

^

'

V

3,: el

•

$182,270,000

Loan

17,191,000

417,764,000

-11,318,000

^162,648,00.0::

21,644,000
i

e

Amount

,

s

Percent

1942

'

$151,636,000 $151,630,000 46.0
39,585,000

12.0

78,295,962
'

_u_

78,295.962 23.7

-.,-

Jan.-,

Avg.

;
19411 Amount

v\

Mar., Avg.

;

<

,

33.4

$141,930,000

24.8

39,585,000

1942# 1941

504,

36.9

14.0

31.4
8.1

—v

11.1

70,538,946

43,356,325 13.2 20.6

14,582,364

5.1' 12.1

2.6

16,805,800

5.9

3.2

$366,854,035 $329,673,287 100.0 100.0 $283,442,110 100.0

100.0

36

.70,710,937

11

16,805,800

21.9

8.3

,

parti¬
beneficial

secur.

of

ctfs

16,805,800

5.1

2

1.1

(v.t.

dep.)

9,826,336

Total

79

396,120,000

Mortgage Recordings Activity Decline

Bank

Board

notes

necessitated

that

by

"the

Letter," the Federal Home

curtailment

efforts is

of

residential

con¬

being clearly re¬
flected in the current volume of mortgage financing by leading types
of lenders throughout the country."
"Recordings of $20,000 or less
during March, for the second consecutive month, failed to exceed
recordings during the same month of the preceding year," says the
Board, which notes that it was pointed out last month that this is the
first time this has happened since the recording study was begun in
1939.
While it is still not possible to label this the beginning of a
our

war

now

complete reversal; in the trend of ; recordings, there are many indica^
tions that such is the case, says the Board, which further reports:
'
Recordings during March numbered 116,000 and amounted to
$336,000,000 and, while evidencing appreciable gains from Febru^
ary, represented a decline from March, 1941, of 4% in amount and
6% in number. Recordings by insurance companies and by other
mortgagees in this March-to-March comparison reflect strong
gains, particularly when it is noted that savings and loan associa¬
tions, bank and trust companies, and mutual savings banks reveal
declines in the

same

comparison.

,:N v

% Change,. Cumulative
%

Assoc'ns—$100,296

Insurance

Cos.

Bank

& Tr.

Mut.

Sav.

—

Cos._

Bks.__

Individuals
—

Total

9.7

23.3

12,162

3.6

60,322

18.0

52,120

15.5

•

from

Volume

% of

Feb.

(000)

Total

+ 15.6

$113,574 -32.6

+ 14.4

27,842

+ 11.21.

86,178

-

8.0

24.7
-

recorded

March,

Recordings

1942-

January-March

-

Mar.,

(000)

1941
—

4.7

+ 17.3
—

9.4

4.0 —13.2

-

1941

$277,620

$294,752

92,258

79,249

225,938239,681
36,090

14,016

+13.0 1

59,646

17.1

+

1.1

172,738

47,624

13.6

+

9.4

148,429

+ 11.5

-

V

1942

+16.9

——-.-.•■•••--$335,636-100.6 +13.4 $348,880 100.0
During

or

29.9

32,650

78,086

>

Mar., '41

Total

(000)

Lender—
S. & L.

Of

Volume

Type of

•

Chg.

Mar., '42

38,609

-

'?S;:"
% % '
Change
5.8 '
+16.4
—•
—

5.7
6.5

165,979

+

135,113

^ 9.9

4.1.

3.8 $953,073 $953,383 —r^..

6.03

first quarter of this year all mortgage lenders
than $953,000,000 of non-farm mortgages of $20,000

the

more

less—a decline of less than

one-half of 1 % from recordings dur¬

ing the same period of last year. First quarter recordings of prior
years reveal a 1939-1940 gain of 13% and a 1940-1941 gain of 16%.
This break in the upward trend of real estate financing indicates

increase in real estate transactions resulting from popuplus liquidation of institutionally owned properties
is not sufficient to offset the effect of curtailed residential conthat any

$434,955,000

8,304,000

173,966,000
m

-Amount

•

6.4

etc.
or rights___

struction

cur¬

48,968,000

24,577,000

Mar.,

39,585,009

;.-

Proposed
For Sale by Issuers '

Jan.-

.

In its April 27 "Mortgage Recording

May 7,1942

23,273,000

24,391,000:

Substitution,
»J..
Percent

Securities

of

March

"

$72,241,000

&

Grand

unprecedented construction volume brought the
$3,326,739,000, an increase of 64% over the 19-week
period last year. Public work, $3,048,112,000, was 106% higher than
in the 1941 period as a result of the 181% gain in Federal work. Pri¬
vate construction, $268,627,000, was 52% lower than a year ago.

Apr. 30, 1942

or

certificates

Substitute

to

May 8, 1941

^

7

stock

interest,

ctfs.

No. of
Issues

stock

cipation,

Others

Construction volumes for the 1941 week,
rent week are:\ '

-

Certificates

week's

total

OF

Total, Less Securities

i

,

bonds

amt.

Common

and
topped a week
Federal work was

more

investment

utilities

REGISTRATIONS UNDER THE SECURITIES ACT
By Types of Securities—Jan. 1 to March 31, 194# ' -

.

bonds

Preferred

Public construction accounted for 96% of the week's
total,
also established a new record.
The public volume

Private work

electric

*"6

tt:.

&

Mines.

,

Type of Security

Face

7,851

of

management

37%, and

or

'.-

59

y-y tt

Bureau

Open-end

j:
>„.
...Total Securities V;
yEffectively Registered

Unsecured

♦"16

v

364

+

>

Secured

tt

Georgia, North Carolina,
ttLess than 1,000 tons.

sale.

$24,004,000,

Vvfe'sift'.

22

W.; C. & O.; Virginian; K. & M.; B. C. & G.;
and on the B. & O. in Kanawha,
Mason, and Clay counties. tRest of State, including
the Panhandle District and Grant,
Mineral, and Tucker counties,
tlncludes Arizona,
California, Idaho, Nevada, and Oregon. §Data for Pennsylvania anthracite from pub¬

States."

.

.

42

1,566

the N.

for

for

Reserved for Conversion

52

11,515

^

";

V

,

188

i;

11,500

SPennsylvania anthracite

Total, all coal——

118

tt

After

$274,207,000 net

indebtedness, $15,904'-

138

14

;>

904

:

127

tOther Western States.

registered

accounted

•

♦West

remained

of the issuers.

use

620

127

..,

410

"

15

7

50

402

Washington

Other expenses of dis¬

0.7% of gross proceeds.

or

000, or 26%.

^100

v.-

"

1.104

24

4

..

ik;

8

82

compensation.

$1,791,000,

514

;

,,19

!5

155

963

39

.

8.7%;

•

53

6

30

was no

'

71

2,881
—

5

5

761

—

4*

412

17

**

42

26

r::-v

of

$14,838,000, or 23%. New money uses absorbed $24,124,000, or;39%
of net proceeds.
Purchase of securities for investment was tb T
quire $22,027,000, or 35%, and retirement of

1923

3

60

———.

Montana—

1937

-

21

121

216

..

41

—

Michigan

55

136

Missouri

to be distributed

were

compensation

Compensation to distributors aggregated $?,of gross proceeds of all issues, including

which there

on

securities

avge.

295

2:

>'"

315;

455

48

and

Kansas

1940

April 24

•

1

1,276
'

Indiana-*!.,

11%,

or

average

Registrations becoming effective in March aggregated $86,215,000, of which $65,271,000 were registered by issuers for cash sale.
Manufacturing companies accounted for $26,105,000, or 40% of the
trusts

'"April 27

1941

3

1,302

.

April 26

391

105

_

an

2.6%

was

proceeds for the

STATES

operators.)

4

Georgia and North Carolina_

the

387

Arkansas and Oklahoma—

Illinois—

from

at

r;

1942

Yy

-i

Colorado

BY

$32,343,000,

deducting these costs of flotation there

to

HApril

Alaska
'

§Subject

based on railroad carloadings and river ship¬
receipt of monthly tonnage reports from district
S -

y «Y' y,-

Alabama

available.

OF

1.1%.

tribution amounted to
authorized

from

are
on

final annual returns

of

or

not

industries

agreements

agency

444,000 which

.

>•

PRODUCTION

weekly estimates

sources

data

truck

by

COAL,
[In Thousands of Net Tons]

,

(The

shipped

tComparable
'

"

ESTIMATED

>

coal

averag&.of

second in

were

amounted to

2,152,300

t

20,383,700

.

and

$146,095,000,

absorbed

$4,475,000, or 2%, were intended to be sold directly to investors
the
issuers,
and
on
these
compensation
to
distributors

some

total—

"Includes

securities

or

bankers averaged 1.9% ;

By-product coke—^
United

of

investment

under

May 4,

1,058,000 19,843,000 17,476,000 25,491,000
1,005,000 18,851,000 16,602,000 23,656,000

39,100

Purchase

or

Beehive coke—

United States

90%, while

or

A breakdown by
type of distribution showed that
$246,624(000,
87% of the securities registered by issuers for
sale, were under¬
written and on these the rate of
compensation to the investment

.

Calendar year to date

Apr. 25

"Total, incl. colliery fuel

Total

$31,000,000 for naval ships and

*'

(In Net Tons)

000,000 for industrial facilities,

,

1

Week Ended

1942

-

and

v ::
(

$254,194,000,

for cash sale.
Manufacturing cpfrivolume, with $75,187,000, or 27%. Financial
companies were third, with $32,173,000, or 11%,
and transportation and communication
companies were fourth,
with $25,675,000, Or 9%/
V -

into

:

to revision.

1941.

year

issuers of all

panies

§Subject to current adjustment.

allocated
A

by

the

convenience

equivalent coal assuming
6,000,000 b.t.u. per barrel of oil and 13,100 b.t.u. per pound of coal.
Note that most of
the supply of
petroleum products is not directly competitive with coal.
(Minerals

lished

The

cludes

statistical

■

produced during the week converted

Tennessee———
an¬

and

for the

206,000,

yy I'f

lignite.

barrels

comparison

of

$39,14%, as compared with a quarterly average of T2%
in 1941. y.yv.v.v-;-"
..^(.
Electric, gas and water utility companies accounted for $148,803,000, or 53% of the volume registered during the first quarter

!

'

historical

made

quarterly

61.2%

weekly

•

North and South Dakota—
-

1941

be

of- indebtedness and retirement of stock
accounted for
or
53% of net proceeds, compared with a

May 1,

May 3,

1942

Kentucky—Western———* (11226

..Consideration
women

§May 2,
192,194

Kentucky—Eastern—

columns of April

May 3,
5,003

a

tries this year, and that 1943's ex¬

OF

PETROLEUM

1942

to

predicted

THOUSANDS

to

were

purposes—$46,144,000 'for new plant and equipmentand
$42,497,000 for working capital. In 1941, the quarterly average of
net proceeds
going for new money purposes was 26%. Repayment

tCrude petroleumCoal

„

will

Apr. 25

IN

CRUDE

offerings

money

-January 1 to Date-

11,500

and State

McNutt

OF

-

1942

mine

•'

Mr.

COAL,

PRODUCTION

11,300

incl.

permanent

ditions change.

ON

SOFT

fuel

Total,

operations.

register
the
.President added, saying that such
a listing might be ordered if con¬
is

DATA

OF

for

An analysis prepared by the Research and Statistics Subdivision of the Trading and
Exchange Division shows that $88,641,000j;or 32.3% of net-proceeds, were to be expended for new

;

PRODUCTION

WltH COMPARABLE

revision.

The

women

STATES

intended

not

cash sale, says the
Commission,
$283,442,000 registered by the issuers for cash sale.

.:
t:

!

Week Ended

not Tiow

are

UNITED

TONS

TTotal

While admitting that not all of

even

ESTIMATED

production

the

women

15,600 tons during the same period.

Government

agencies.

production

for the week ended May 2

increase of

an

those

$28,546,000, or about 10%, were to be offered to holders of securities
of the issuers.
The Commission's announcement further stated:->

1,500 net tons when compared with the output
for the week ended April 25.
Coke from beehive ovens decreased

registering

members of the Federal Advisory
Council v; of the
Social
Security

?

The Bureau of Mines also reported that the estimated

of byproduct coke in the United States
showed

registered

women

with

work

are

and

there remained

-

women

Reports 79 Security Issues TDialing :" v
$368,854,000 Registered In i st Quarter

The Bituminous Coal

-«

-had been abandoned for the time
*this

SEC

Weekly Goal And Coke Production Statistics

(

Women, Says President

+

1C77

■

lation

shifts

struction.

•

2

\

.

v

.

•

..

..

•

•

•

<

v

y' \ '

Thursday, May 14, 1942

THE COMMERCIAL & FINANCIAL CHRONICLE

1878

-V

Railroads

Freight Car Loadings During Week

Revenue

Ended May

Alabama,
Atl.

ended May 2, totaled

8.1%, and above the same week in

or

cars,

Miscellaneous

Coast Line.

Ala——

Coast—

&

2 decreased

■

Richmond,-Fred. & Potomac

favorable vote of 81.8%,

1,519

•:

2,907

>■■,

253

.

■

7

,

831

1,681

1,383

'

___

587

3,196
18,869 V'

21,907

196
:

1941.

3,442

i

1,169

commodities under the quota sys¬

6,196

tem.-In

1,387

1,045

2,086

513

404

1,220

610

322

422

.

1.1,554

.

10,712

■

>;

5,467

8,020 V

;

25,266

20,918

24,308

734

656

435

1,044

130

151

140

—

Winston-Salem Southbound

i

16.681
639
7

•903 7

792

129,808

22,854

Chicago

Great

Chicago,

Milw., St. P. & Pac

2,716

21,612

4,098

3,893

Chicago, St. Paul, Minn. & Omaha__
Duluth,

Missabe

Duluth,

South Shore &

& Iron

Range____

Northern

Green Bay

_

_

21,820.

1,243

1,219

10,147

12,960
vV; 3,359
9,693

3,333

3,671

'

8,612

564

524

6,334

10,119

5,332

•;

498

4,914

,455

731

Lake Superior &

1,855

.

6,840

1,659

,

8,043.

5,416

9,656

9,538

85

51

2,009

4,123

3,456

2,019

_

Minn., St.

2,401

•

v

-769

,

2,152

:

2,614

3,045

"

1

Pacific

Northern

'

10,431

4,311

4,576

197

170

556

323

2,695

2,573

1,663

3,404

1,892

135,058

96,061

60,503

48,986

-

':;Ore loading amounted to 78,997 cars, an increase of 8,086 cars
above the preceding week, but a decrease of 274 cars below the
corresponding week in 1941.

*.

158

7 7

International
Spokane, Portland & Seattle;

Spokane

V

,

.

weeks of January-

Four

of

weeks
weeks

corresponding

Colorado

«...

February

1941

Four weeks of April—
Week of May

2—

Total

Denver

& Rio Grande Western

Denver

&

3,858,273

3,454,409

3,215,565

2,866,565

2,465,685
2,489,280

Missouri-Illinois

3,351,038

2,793,630

2.495,212

Nevada

858,904

974,299

665,547

14,362,427

12,974,914

11,331,289

a summary

During this period 81 roads showed
the

& Pekin Union

Ann

Arbor

& Aroostook

Bangor

Boston & Maine—

Indianapolis & Louisville-

Chicago,

Received from
Connections

i.

Vermont

Central
Delaware

&

Lackawanna & Western-

Delaware,
Detroit

Hudson

Mackinac

&

& Ironton
Detroit & Toledo Shore Line
Detroit, Toledo
Erie

Western

Trunk

River
Lehigh & New England—
Lehigh Valley

Lehigh

Maine

Hudson

&

Central-

1942

1941

606

1,415

1,306

1,928

1,724

1,708

V

249

302

7,123

9,362

7,111

16,651

13,151

L

1,238

1,223

J,973

1,993

16

20

64

45

Missouri

1,406

2,395

2.495

5,220

13,226

9,214

St.

&

&

7,710

264

304

286

140

131

Texas

1,749

3,394

2,476

1,297

1,137

8,799

9,716

278

352

273

3,054

2,220

15,032

15,435

11,792

17,024

12,912

4,075

6,016

4,830

8,100

7,273

212

336

316

3,858

2,258

2,367

2,322

2,056

1,885

1,172

9,933

9,995

8,181

12,459

8,255

2,393

3,111

2,498

3,838

3,082

3,819

4,576

385

358

2,281

1,715

1,866

40

55

51,357

39,362

56,019

36,224

Hartford
New York, Ontario & Western
New York, Chicago & St. Louis
N. Y., Susquehanna & Western
Pittsburgh & Lake Erie—

10,881

12,293

9,113

21,204

15,791

1,056

1,092

1,255

3,345

2,415

7,632

? 6,522

5,081

15,104

10,875

594

534

385

1,524

1,750

8,339

7,453

5,987

9,919

:'i 7,472

Marquette
& Shawmut
Shawmut & North
Pittsburgh & West Virginia

5,604

7,085

5,984

6,238

5,124

785

351

856

35

56

401

410

325

310

225

Central

York

Lines

N. Y., N. H. &

Fere

Pittsburgh

Pittsburgh,
Rutland

——

Wabash

1,183

-

-

Wheeling & Lake Erie

3,152

1,042
628

1,080

1,185

5,140

12,276

9,709

5,769

5,229

3,695

4,741

.I 3,279

171,473

232,716

144,096

177,757

.

Akron, Canton & Youngstown
Baltimore & Ohio———
Bessemer

Buffalo

&

Lake

Creek

&

—

Erie

Gauley—

;(

14,267

14,717

12,714

12,751

483

362

177

1,974

1,671

1,553

690

740

426

1,127

42,340

37,300

30,197

28,002

6,769

7,021

2,508

2,205

°339

83

308

•1

1,327

1.255

7,276

7,954

6,953

691

646

309

73

223

27

112

78

47

&

Pennsylvania—

148

Ligonier Valley
Long Island
Fenn-Reading

r

663

794

1

2,391

191

pointed out that the quota vote
will

2,711

186

1,110

805

2,089

1,810

42,385

2,627

3,325

2,318

1,566

2,247

2,028

372

428

309

992

943

622

430

416

.259

216

216

173

16L

.475

363

5,503

3,750

15,344

13,550

3,141

1,767

1,640

235

189

4,470

:

Lines—

120

107

8,107

7,058

;v

:•

,.

3,715

12,156 v,
84

3.046

2,420

6,142.,
2,081 V

10,636

7.155

6,383

4,477

3,788

3,774

114

154

141

38

16

36

—:
•v

84,675

V 48,385

.

10,359

169

118

*7,375

.v5,117

5,215

2,925

4,580

3.62!

34

57,790

17,989
1,632
.iw;. *

*

41,034

Considerable

cies

attacking these probfronts.
There is
the problem of motor transport
in getting products off the farms
of

V

"

'

.

aging foods. Immediately ahead
are
wheat storage and transportation difficulties.
Unusu¬
ally large- quantities of wheat

v

48

33

a.

37

817

772

608

3,575

2,947

1,756

1,425

1,206

2,568

1,627

5-2

Commodity Groups—

1942

All Commodities....

v

■; 4-4

4-25

4-18

1942

1942

Percentage changes to

5-3

v

98.6

98.3

T 97.9

83.2

+0.1

104.8

105.2

104.2

74.4

0.0

99.9

.'99.6

98.6

>97.2

120.0

119.8

119.8

118.1

■

-

1942.'. 1941

1942

1941

-1942

'
Farmers'

year.

May 2, 1942, from
' 4-25
4-4 ' " ?-3

104.8

98.7

';

must be stored

18

70

Lines

Farm

products

86.624

78,896

60,425

67,506

43,851

Foods..

——

16,254

17,768

13,806

29,240

17,232

Hides and leather products

——

20,932

19,862

14,190

7,630
13,601

7,130

—

4,187

;

Total

191,052

3,500

177,479

•,

..

.

; 3,307

136,153

176,573

6,870

113,785

Pocahontas District-

Chesapeake & Ohio

29,052

17,756

24,361

13,525

Norfolk & Western

23,623

15,283

20,450

7,259

4,748

2,245

4,097

2,377

Virginian

:

7,628
5,336

1,632

Textile

—

...

products—
Fuel and lighting materials.—.;..
Metals and metal products..—
——

•

+0.8

+18.6

+ 0.6

+ 40.9

57.423




35.284

48.908

23.161

14.596

97.2

97.0 '

78.6

78.5: •78.1

+ 2.8 '+2 8V1
+ 1.6

+ 14.3

80.9

■+0.2

+ 0.2

+ 20.1

74.2*

:'78.3

0.3

+

0.1

+ 0.4 '+

5.9

103.3

103.9

103.8

97.9

0.0

+ 0.1

+

6.1

108.8

108.8

110.5

100.3

—0.1

—1.6

+

8.4

Building materials.—.—
Chemicals and allied products—

97.1

97.1

97.1

97.1

82.8

0.0

0.0

104.6

104.4

104.4

104.3

91.9

+ 0.2

+ 0.3

;

—0.4

Raw materials.,

0.0

90.0

89.6

78.5

100.4

99.9

99.4

*77.5

—0.3

—0.7

92.6

92.7

92.8

85.1

—0.1

—0.3

Manufactured products.

99.1

98.9

98.6

98.2)

+

0.2

+ 0.9

+ 15.4

97.3

97.3

96.9

96.6

85.2 ,.v,

0.0

+0.7

+14.2

95.6

95.6

95.5

95.6

86.4

o.oo.o

+10.6

89.6

r

;

r

85.9

8.7

at this

time last year.
Largest
comparative gains are from the
unusually heavy marketings of
hogs at relatively high prices;
income
from
other
livestock

v

.

,

and

All commodities other than farm
,

production

:
Farm income is rising seasonally now; but less sharply than

-

+ 29.2

'+

of

ceived and prices paid by farmhas been closed.
^ r 1

;

+ 14.1

89.6

92.5

costs

.

•

+ 13.8

100.1

the farms this

>/•'. ers

+ 17.3

•

on

'

considerably higher this
Spring than last, but the long¬
standing gap between prices reare

'

:

Semimanufactured articles...

animal

larger

than

„.

products also, is
at this time last

All commodities other than farm

u
'<

r

+

+ 0.2

103.9

•

5

97.0'

78.0

105.0

Housefurnishing goods..
Miscellaneous commodities-

products and foods

,

97.0

>

108.7

products
—

v

assembling points, and

transport to processing
and ; market
centers.

There is the problem of having

'

t-

,

many

sufficient containers and equipment for processing and pack¬

r,

-

13,575

20,961
*

V

(1926=100)

rail

plants

early
,

on

to initial

for the principal groups

,

,

-

was ex¬

are

lems

pri¬
order by

for April 4, 1942, and May 3,
1941, and the percentage changes from a week ago, a month ago
,

concern

Federal agricultural agen-

year.
>

•

Statistics, U. S. Department of Labor, re¬

•

further

products transported, processed,
.distributed, and stored later this

highest level since late in 1926. The index has risen 0.8% since
in April and is now 18.6% higher than at this time last year.:,

'

announcement

pressed, however, over possible
difficulties
in
getting
farm

May 7 that notwithstanding the fact that trading in

•

May advices covering the

said:'

commodity markets slackened after the recent freeze

year ago:

War Food Production

ment's

Office of Price Administration, its weekly index of nearly 900
price series continued to rise. With a gain of 0.1 % during the week
ended May 2 the index advanced to 98.7% of the 1926 average, the

a

<

new records in the production
milk, eggs, meats and other
protective foods are being made
month after month.
The Depart¬

.■

and

available.

of

Wholesale Price Index In May 2 Week

2

be made

that

Further Advance In Labor Bureau's

on

to

a

pective agricultural situation, the
Department of Agriculture reports

a

The Bureau of Labor

Department

per

features of the current and pros¬

•.-'-32
■

not

In its

42

.

$1.14

Farmers All-Out For

4,081

6,044
.,

43,897

.

;

could

3,179

*

16,489

:.

-

~

,.4,073

.

the

available

* newly-an¬
bushel loan
on
the 1942 wheat crop. . According to the law, if quotas
had been turned down, loans

;,

figures revised.
^Previous week's figure.

ported

enable

.:'.j make

263

...

1,604

2,874

—1_—-

Orleans

'i ,181

156

...

3,835

i

Pacific

meat

and

62.743

2,310

—

..

119

...

2,306

Because

program.

as dairy, poultry,
production, soybeans,
flax, it was said.
It was

and

10,657

4

3,671

loan
war¬

such

essary,

1,466

'

Seashore

Pennsylvania System
Reading
Co.Union (Pittsburgh)
Western Maryland

Total

1

6,821
-

79,397-

96,836 'i

5.553

'

13-

1,920

Central R. R. of New Jersey
Cumberland

V'V*

96

of commodities for the past three weeks,

Cambria & Indiana
Cornwall

0

1.702

The following table shows index numbers
Allegheny District—

0

Note—Previous year's

the

647

6,668

11

.

9.998

Weatherford M. W. & N. W._

2.299

437

453

306

Wichita Falls & Southern....—

mary

5,578

189,856

Total

905

•i

439

23,451

.

Arkansas

New

694

•7

432

Louis Southwestern

Texas

146

27,867

Island

Quanah Acme & Pacific..—.
St. Louis-San Francisco——

1,383

549

1,507

wheat

crop

national

plenty of wheat
for all wartime needs, acreage
allotments are needed to help
divert wheat acreage to other
production which is more nec¬

1,468

761

469

>

109,247 '

the Nation has

nounced

Southern—!

Pacific

Missouri

2,258 %

v

V

time

1,177

1,205

1,528 %S,

247

& Arkansas

&

;.V

1,467
3,421
17

1,009

and

the

features

District—

Missouri-Kansas-Texas

6,232

48,220

Montour

862

MidlandValley—

7,056

&

959

113,251

,

—

Lines..;

Litchfield & Madison...

1,129

6,803

Monongahela

'

1940

569

9,888

1,097
2.040

<

.

of

2.848

v.14...

28,167

*

Grand

New

Coast

Louisiana

1941

8,842

1,414

.

—

Kansas City

498

40 U

Indiana

Central

Total

901

1.996.

j

2,045

Kansas, Oklahoma & Gulf

1942

1,373

1,500

4,946

474

International-Great Northern

Freight Loaded
Eastern District-

666

2,205

356

—

Pacific

Western

Gulf

ENDED APRIL 25

Total Revenue

—

—

Burlington-Rock

FROM CONNECTIONS
Total Loads

Railroads

676

2,410

10

Pacific System

Southwestern

OF CARS)—-WEEK

758

857

9,393

v

allotment

age

;

1

..

355

Peoria & Western

favorable quota vote will
materially strengthen the acre-

781

2,621

■

corresponding week last year.

(NUMBER

3.092

-

Utah

increases when compared with

REVENUE FREIGHT LOADED AND RECEIVED

11,205

Pacific

Western

Toledo,

of the freight carloadings for

10.873
V 2.352

City

•; ..
Department officials said that

9,143

872

V:v--

1,877

211

.

Southern Pacific (Pacific)

railroads and systems for the week ended May 2, 1942.

the separate

;

.

the

92

157

9,841;

13,493

2,763

Northern

Peoria

2,496

12,527

1,939 V

North

8,007

4,091

2,457
2,492 >

—

504

.

14,475

11,036
'

11,529

Lake

Fort Worth & Denver

:i :-!;7 654

V

15,448

Illinois Terminal

Union

table is

Salt

3,066,011

•

The following

2,652

& Southern

1940

3,122,773
3,171,439

March

of

18,029

3,322

734

& Garfield
Burlington & Quincy.
Chicago & Illinois Midland
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois

and Northwestern, but all districts
1942

Four

19,904

3,497

Chicago,

reported increases over 1940.
Five

20,998

Alton

Bingham

reported increases compared with the

All districts

►.

of 1941.

Atcli., Top. & Santa Fe System

1941.

week in 1941 except the Eastern

v

?

ulations will be similar to those

amounted to 14,056 cars, an increase of eight cars
the preceding week, and an increase of 3,783 cars above the

corresponding week in

132,8407

Central Western District—

Coke loading
above

Total

"

quotas, wheat seeded
within AAA. acreage allotments
may be marketed without re¬
striction. However, wheat pro¬
duced on acreage in excess qf
the allotment will be subject to
; a ; per-bushel * penalty
of 57
cents, half the basic loan rate
which nationally will average
$1.14 to farmers. All other reg¬

4,082

15,661

637

\

.

Under

131

139

U

23,073

566

/•,

areas.

277

320

quo¬

64,310 opposed. Of approximately 2,100 wheat coun¬
ties voting, returns have been
tabulated from 1,886, which ineludes virtually all major wheat

"3,812

561

598,

'

.fi

referendum

and

tas

10,955

>

the

of wheat marketing

3,115

2,402
18,513

21,638

& Western

Ishpeming
Minneapolis & St. Louis
Paul & S. S. M

16,912

10,937

.

9,981

570

_

_

•

23,720-

Atlantic.

Elgin, Joliet & Eastern
Ft. Dodge. Des Moines & South
Great

23,062

2,547

19,858

Western

4

May

tabulated, 288,227 were in

v

Chicago & North Western

advices

their

favor
78,946

113,362 ?

99,596

District—

Northwestern

loading for the week of May 2 totaled
above the preceding week, and
an
corresponding week in 1941.
Live stock loading amounted to 13,885 cars, an increase of 100
cars above the preceding week, and an increase of 1,050 cars above
the corresponding week in 1941.
In the Western Districts alone,
loading of live stock for the week of May 2 totaled 11,113 cars, an
increase of 619 cars above the preceding week, and an increase of
1,421 cars above the corresponding week in 1941.
Forest products loading totaled 50,407 cars, a decrease of 853 cars
below the preceding week, but an increase of 7,733 cars above the
corresponding week in 1941.
an increase of 373 cars
increase of 2,430 cars above the
cars,

111,089

market

also

its

tobacco,

votes

grain

Total

Growers of cotton,

Department added:
Of the 352,537

*

25,516

a

and ; peanuts

996

11,256

,9,214

,

in

81%

of

347

K

457

v;.

:

vote

cast

V;

1,526

3.05Q

favorable

818

442

766

,3,402

+

5,303

4.042

90

.

3,486

:

succes¬

that growers have ap¬

year

proved wheat marketing quotas
in a national referendum, having

12.594
:

'

10,677

123

:■

178

sive

3,267
7"

16.529

'

This is the second

turns.

868

.

4,050

3,813

162

92

1,891

v

of Agriculture on

May 4 in an announcement based
on nearly complete unofficial re¬

302

107

2,557

.

.7

.

1,052

269

16,878

U. S. Department

295

.

+;

VI,035
.

22,808

/

—

360 ; >

.

■•:

25

51

.1,181
'

2,017

231

,

169

4,605

1,'.

—

Line

Air

272

26,793

L._

St.

Northern:

System
Tennessee
Central...

alone, grain and grain products

22,673

the

1,506

1,176

394 :

&

Southern

products loading totaled 36,193 cars, an in¬
crease of 516 cars above the preceding week, and an increase of 2,339
cars above the corresponding week in 1941.
In the Western Districts
and

3,897

1.790

28,402

—

,

approved marketing quotas for
Nation's
1942 crop
with a
said the

4,351

«

-

'

to 169,419 cars, a decrease of 240 cars
week, but an increase of 76,633 cars above the
corresponding week in 1941 which was affected by strike.
Grain

6,260

wheat'1 growers

referendum held May

a

8,944

1,927

404.'

Southern

Piedmont

Seaboard

2

'V.

v.;:

.

.

1,191,.

„

Macon, Dublin & Savannah—

loading amounted

voting in

427

40

—JJ

Mississippi Central
Nashville, Chattanooga

Coal

1,106

3,926

203

Southern—

Illinois Central System
Louisville & Nashville

below the preceding

1,760

1,176

8,975 .;vi

; 173

Gainesville Midland.

Norfolk

i,--United;XStates

.189

2,731

•

Georgia & Florida—
Gulf, Mobile & Ohio—

of

Loading

'Vl';.

'424

'

707

552

1,682

387

;

merchandise less than carload lot freight totaled
112,736 cars, a decrease of 10,844 cars below the preceding week, and
a decrease of 50,955 cars below the corresponding week in 1941.
'■

7.'

v.

.

1941?;

V

-4,693

-12,559

,

1,701

&

Georgia

cars, an increase
and an increase of 24,296 cars

J

% Of Wheat Growers ■
Approve Market Quotas

■

-676

:
•

1942

•

•v.: 212

,'J..

79 8

489,

Florida East Coast..

week.

>19407

.;

829

4,148
Carolina

<

81

.

v

Connections"

351 cv

;v:>.

815

—

13,029

Western

Columbus & Greenville-

freight loading totaled 383,211

above the preceding week,

of

Clinchfield

corresponding week in 1941.

above the

Atlantic

Charleston

1940 was 193,357

for the week of May

Loading of revenue freight

cars

Birmingham &

1941

|
323 i
V: 832

Northern——

R. R.

P.—W.

Atlanta,

Durham

2,449 cars, or 0.3% below the preceding
of 778

Tennessee &

W.

&

1942

■

Central of Georgia.

29.1%.

cars, or

District—

Southern

858,904 cars, the Association of American Railroads announced on
May 7.
The increase above the corresponding week in 1941 was

64,605

Total Loads 15;

.

Received from

■i'.'lSV'.

Total Revenue

Freight Loaded.

2,1942, Totaled 858,994 Cars

Loading of revenue freight for the week

•'

•

v

tv.

t

I

t

5

■■

•

(Vi'j'ii'in

•(..
,?

;itw

'ti'

o f."+-

+r"i

v

.

year.

•

:

V

Volume 155;

Number 4Q72^? ^

Lumber Movement—Week

THE COMMERCIAI; & FINANCIAL CHRONICLE

Sfed

Ended May 2f 1942

Oriputln First Foar Mwriks
Exceeds 194!

Lumber production during the
week ended May 2, 1942, was 4%
less than the previous week,
ments
were
2%
greater,

business

18%

less,

reports to the
Manufacturers

new

according

National

to

Lumber

Association

ments

from

25%

tion; new orders 21% above
duction.

pro¬

of this

year

round-lot

stock

transactions

for

Short sales

Reported

shown

are

separately from other sales in

The data published are based upon weekly reports filed with the

New York Stock Exchange and the New York
their respective members.

New York Stock

of 1,660,213 tons of steel was produced per week
during April, only % of 1% below the peak of 1,668,829 tons per
week produced in March. In April a year ago, an average of 1,574,401 tons of steel was produced per week.

number of reports

received———-—
1. Reports showing transactions as specialists

2.

During the past month the steel industry operated at an average
of 97.7% of rated capacity, as against 98.2% of capacity in March. In
April, 1941, the industry operated at 97.6% of a considerably smaller
total capacity than is available today.

the floor
3.

of

1942

for

the

was

4%

PRODUCTION OF OPEN HEARTH,

BESSEMER AND ELECTRIC; STEEL INGOTS
STEEL FOR CASTINGS

'

•-

below

,

corresponding weeks of
1941; shipments were 6% above
the shipments,
and new orders
period.

duction, and shipments
above production/

of

f

Net tons

r

capacity

February-

.6,321,056:;
7,392,91k

March.

transactions-

no

j'':.

__

.

™_.

2, 1942, for the corre¬
sponding week a year ago, and
for the previous week, follows in

••

6

————

months-

.Mills ctwU-'v- .438

August

96.8

0,230,354

:r96.5

y

.

249,048

279,319

^ 293,803

295,922

352,472

Hardwoods

'

-

1942 Week

Mills

-

Production..

mm

— *•«■» «■* «•» «■» «■»

Shipments
Orders

-

—r

6;754,179

S7.6

7i044,565

1,574,401
1,590,195

4.29

98.5

6,792,751

98.1

1,583,392

4.29

20*591,495

98.1

1,582,744

13.01

97.9

1,579,753

25.87

8,812,224,

93.3

1,541,227

4.42

6,997,496

95.6

1,579,570

4.43

.01,811,754

96.3

1,591,531

4.28

20,621,474

95.1

1,570,562

13.13

.

1,576,658

39.00

7,236,068 f
6,960,885

1,633,424

4.43

98.2

1,622,584

4.29

7,150,315

97.9

1,617,718

4.42

21,347,268

98.3

1,624,602

13.14

i.—

December
4 th

11,486—100%
12,991
113
11,338
99

———
.

quarter

Total

SuTotaf Round-Lot Sates:

97.3

82,836,946

of

the

Bessemer

-

..

—

—

'

*

6,996,520

2,133,140

1,835,280

125,250

118,630

Account of Mem¬

the

,

,

,

sales

Short

.

\

of year.

Bureau's
announcement
'continued:: \v
:
The

sales

Total

The

general level of local
market prices received by farm-

•

■

\
■

"

-

:

April, although usually there is

there

—

—.—

—^—

sales

—.

*

.—

\

'

Total

.

—

-

—.

—

1

——

t

Short

Total

on

"-52,650

39,970
176,320-

for Account

of

Members*

WithouU
:

;•

variation—.

seasonal^adjustment

Federal Reserve
District—

^

i
;

down 2.
All
except
cotton,
meat animals, and truck crops
were still below parity.
The general level of prices
paid by farmers for commodities
bought on April 15 was 151%

5;

the

was

1

point,

higher

than

March 15, arid 27 points
than
in mid-April last

Slight

This

1910-14 average.

advances

on

higher
year.

occurred

in

prices of commodities used for
both
family maintenance and
for farm

production.




<

-

•

9

.

Atlanta

—17

+

2

+ 23

+ 18

+ 31

—18

+

3

+ 31

+ 33

+ 41

+ 16

—14

+

7

+ 33

+ 21

+46

+ 25

+ 24

—13

+ 12

+ 41

+ 35

+ 45

+ 31

8

+ 15

r+ 15

—13

6

+

Louis

—

2

+15

'

2

—

—

+
+

Francisco

s

.'.y-ys. v; * ■

Minneapolis
Kansas City

.

+ 24

Totat sales

Total

+

INDEX,

3

+ 15

+

7

+ 24

+ 13

+

6

;

+ 23

+ 21

+ 34

+ 20

+

3-

+

2

: v. + 28

+ 21

+ 37

+21

+ 15

+ 18

+ 31

+ 14

+ 20

+ 14

+ 34

+ 19

+ 15

+

8

+ 25

+ 13

+ 25

+ 25

+ 29

+ 23 i

-

*

ft

-J

—

,

3

r

+ ia

+ 21

7

+

7

3

r

+

14

+ 20

—21

+

3

+ 13

+ 21

—

+15

—12

8

+ 13'

WITHOUT

—

.

SEASONAL

Total sales

3

•

+ 10

+

5.

ADJUSTMENT

Apr.

11

120

Apr.

12

Apr

18

135

Apr.

19

129

Apr.

26

134

May

2'——;———

+ 26

+ 21

(1935-39

Total

Revised.

+ 35

daily

1.39

8,375

630

25

6,440
2.63

39,620

6,465

2.73

sales

—

32,895

Other sales b

5,125

3.615

57,545

42,710

Total
c:

sales

■.•-.-..•■•■.•.■.-•■■■•••■••••ih#"****!

Odd-Lot Transactions for the

3_„.^

62,670

14.30

46,325

14,59

Account of Special¬

ists—

Customers?

325

sales

short

50

25,648

21,785>

25,973

21,785

15,667

12,356

+ 21

136

Total

purchases

Total

sales.1

—

———

associate Exchange members, their
and their partners, including special partners.
a Shares in members' transactions as per cent of twice total round-lot volume.
In
calculating these percentages, the total members' transactions is. compared with twice
the total round-lot volume on the Exchange for the reason that the total of members*
transactions includes both purchases and sales, while the Exchange volume includes
•The term "members" includes

all regular and

firms

114
124

——v-

♦Not shown separately but

refer to

3,775

8,825

9,455

.

purchases

Short

AVERAGE=100)

included in United States total.
/Monthly
sales in calendar month; April 1942 figures estimated
from weekly sales. fDuring March and April changes from a year ago reflect in part
the fact that Easter was on April 13 last year while* this year it was on April 5,
On
this account it is estimated that in comparisons with last year allowance should be
made for an increase of about 4%
for the month of March as a whole and for a
r

indexes

1.20

4. Total—

1941—

1942;—

May

10O

3,675

3,575

9,355

—

sales

Customers' other sales c_.

; u. S. total

10.47

3.775

3,575

—L.—

Other sales b

1

WEEKLY

36,085

initiated off the floor-

purchf :es

Short

1

+

6

+ 13

—

10.47

: 4,975
0

-~-.

+17

8

'

Dallas

I—-—i

—

3,490

32,595

'

+10

——

purchases

Other sales' b.

.

.

"

San

•

'

+ 16

+ '4

+

.

-

'0^0-t

'

:

.Short1 sales

3. Other transactions

.+ 15

r+27

',.y'

20,745

4,495

45,145

49,640

—

initiated on the floor-

Other transactions

,

10&,

8

+ 14

,

271,555

25,290

Total' sales

ago- (per centjf ■

8

y

357,675

%a

'

+18

+ 13

———

352,050

.

:

.

sales

Other sales b

Total

+

+

Cleveland

St.

99

3,765
267,790

of

purchases

Short

■

+

Philadelphia

Chicago

products were
major groups

of

llff

Account

%a Apr. 25, '42

5,625

"

Total

Apr,, 1941
104

—^—

the

for

they are registered—

in the

126

•,

—

>

Total for Week of—

Transactions of specialists in stocks, ih which

1.
'

-

Richmond

Meat animals were up 10; fruit,.;
7; chickens and eggs, 1 point,
Grains declined 2 points.
Dairy

124

*114

—,

..

,

"

;;

:

—-One week ending
-—-Four weeks endingYear to
May 2 Apr. 25 Apr. 1-8 Apr. 11 May 2 Mar. 28 Feb. 28 Jan. 31 May 2
+16
+ 20
+19
—20
+
7
+ 28
+ 17
+ 38
+ 22

-

.

Boston:

cotton

117;

Feb., 1942

Change.from corresponding periodayear

r

.

New York

in

"Members:

;

Adiusted for seasonal

sales b

——

11.65

(Shares)

Apr. 18, '42

Transactions

216,290

11.70

the New York Curb Exchange and Stock

—————.

Total sales

2.55

211,280

-235,740.
288,390

Short sales

8. Round-Lot

50,420

2.58

;

sales

Transactions

an¬

7,800

42,620

-.-i—'

'-.u——————
a,—w---

Total Round-Lot Stock Sales

2.

Mar., 1942

2.72

43,320

9,090

51,670

'210,650

sales

Other sales h

■;

(1923-25 AVERAGE=100)

Apr,, 1942-

and
cottonseed amounted to 7 points.
advance

of 129%

50,330

,

Total purchases

increase at this time

an

2.74

60,760

sales

4. Total—

Other

System

6,300

44,030

49,240

Short sales
Other sales b

.

.

INDEX OF DEPARTMENT STORE SALESt

period.
The

Reserve

5,700

75,030
80,730

—

"> Total' purchases
-

considerable amount of anticipatory

was a

buying.

for

Federal

6.38

49,330

"

I1";

The Board's seasonally adjusted index dropped to 117% of

first, quarter, when

agricultural commodities
rose 4 points during the month
ended April 15.
Advances recorded in prices received for
cotton, fruit, meat animals, and
poultry • more than offset de¬
clines i in prices of grains and
dairy
products
during
this
ers

the

of

Governors

1923-25 average, as compared with, an average

the

,

of

115,540"

6.38

36,160

3v Other transactions' initiated off the floors

May 7 that the value of department store sales declined

somewhat in

-

.

'

!

Board
on

25,870

89,670

146,900

—-—

Other sales b——

tons, electric 2,586,320 net

net

—

purchases

Short

>

-

.

sales

37.860

109,040

Other transactions initiated on the floor-

2.

52.14

1,588,741

—_—

_—

Other sales b —;—.————

*

April Department Store Sales

subsequent downturns in prices of
wheat and some other grains.

f

,

'

,

The

%a

:

88,130
1,767,150

bers, Except for the Odd-Lot Accounts of Odd-Lot
and Specialists;
I. Transactions of specialists in stocks in which
they are registered—
'
Total purchases ■«.
—
—
i;

A, Total Round-Lot Sales'.

of nounced

Apr. 25, r42

Dealers

to paid was 99% of parity.. De¬
partment of Agriculture officials

view

vV

82,250
2,050,890

1

pointed out, however, that .-the
general average of prices received
by farmers may be lower now

(Shares)

Apr. 18, '42

;

'

Round-Lot Transactions for

tons. ■ Beginning July 1, 1941, the
percentages of capacity operated are calculated on weekly capacities of 1,459,132
net tons open hearth, 130,292 net tons Bessemer and 62,761 net tons electric ingots
and steel for castings, total 1,652,185 net tons; based on annual capacities as follows:
Open hearth, v76,079,130 net tons, - Bessemer 6,793,400- net tons,: Electric 3,272,370
netvtons.hio-':::

commodities

-

sales b

Total sales

The percentages of capacity operated iht the first 6 months are calculated on weekly
capacities of 1,430,102 net tons open hearth, 134,187 net tons Bessemer and 49,603
net
tons electric
ingots and steel for castings, total 1,613,892 net tons; based on
annual capacities as of Jan. 1, 1941, as follows:
Open hearth 74,565,510 net tons,

bought by farmers also advanced
and the ratio of prices received

in

55;
568

'

on the New York Stock Exchange and Round-Let

Short sales

■

animals, cotton,
during the month ended
April 15 lifted the general level
of prices received by farmers to
150% of their pre-World War I

mid-month

572

-Week Ended-—

percentages of capacity operated are .calculated on weekly, capacities of
1,438,029 net tons open hearth, 128,911 net tons Bessemer and 71,682 net tons electric
ingots and steel for castings, total 1,698,622 net tons; based on annual capacities as
of Jan. 1, 1942 as follows: Open hearth 78,107,260 net tons, Bessemer 6,721,400 net
tons, electric 3,737,510 net tons*
'

in prices of meat

at

•:

Stock Transactions for Account of Members*

Note—The

Agricultural
Department of

and fruit

than

46

5,

Total Round-Lot Stock Sales

.-•;v

Reports by Companies which in 1941 made 98.5% of the Open Hearth,
Bessemer
and
87.8%
of the Electric Ingot and Steel for Castings

on

Production.'

of

of

—

_

'i

reports in the various classifications may total' more than the num¬
reports received because a single report may carry entries in more than one

of

Total

tinuation of local market increases

Prices

:"i

other transactions initiated off

'

96.9

98.9

61,483,678
.

November

'

U. S.
Agriculture, announces that con¬

level.

15

The number of

4.43

40,868,204

t monthi

99% of Parity

Economies,

84

'

classification.

Total

Bureau

on

——■.

Reports showing no transactions

370

Farm Prices

transactions initiated

719

90

specialists resulting from such odd-lot transactions are not segregated from the
specialists' other round-lot trades. On the New York Stock Exchange, on the other
hand, all but a fraction of the odd-lot transactions are effected by dealers engaged
solely in the odd-lot-business. As a result, the round-lot transactions of specialists hi
stocks in which they are registered are not directly comparable on the two exchanges.

4.00

4.43

Quarter

100%

The

4.43

12.86

—

tBased

r

1,562,608
1,557,589

1,576,727

mtft •-» W

October.

19*2 Week

228,173—100%
285,430
125
279,253
122

specialists—

as

April 25

.

of

489

258,606

Shipments-.. 298,421
Orders
290,591

1

4.29

97.7

.

3rd

Production._ 239,659

Softwoods

-

1,660,213

Previous

Wk. (rev.)

458

,

4.

12.86

1,635,994
■

20;276,709

—.

1

1942,V

.

other

721

Note—On the New York Curb Exchange, odd-lot transactions are handled solely by
specialists in the stocks in which they are registered and the round-lot transactions

1,608,127

:

1941

Reports showing

Other

SOFTWOODS AND HARDWOODS

Week

2.

ber

2nd Quarter
1st

6,022,352

thousand board feet:
1

Reports showing transactions

4.43

1,668,829

received————————

1.

3. Reports showing
the floor

4.00 ir-

,

99.6

June

ended May

1942

Exchange

'

4.43
,

number of reports

the-floor

in month

1,630,264

:

97.7

7,124,003,

>

.

Week

of weeks

98.3

7,122,313

5

Softwoods and Hardwoods
Record for the current week

.

production*
(nettons/

650

—Week Ended*

all companies

98.2

21.038.889

1st Quarter——.

gross stocks was 61% on May 2,
1942, compared with 39% a year Februaxy:';^^
ago.
Unfilled orders were 32% March
greater than a year ago; gross
Jst Quarter.
stocks were 16% less.
-

■

143
.

New York Curb

Total

1,C08,335

196.0

V

633

W

19411
January

:

105'®

146

Reports showing

AND

Number

94.7

7,124,922

Supply and Demand Comparisons
•;
The ratio of unfilled orders to

"

169

128

Reports showing other transactions initiated off

4.

«^AU'Gompftnies^;r^:c'GftIeulate<t

January-

17%'

were

177

on

——

the. floor

Estimated Production

.

4

~

1942 t

For the 17 weeks of 1942,
was 29% above pro¬

business

new

>

Period

1,009

April 18

Percent

11% above the orders of the 1941

April 25

1,012

.

'

-

—

April 18
;

Reports showing other transactions initiated

;

Exchange

———Week Ended

Total

Comparisons

production

weeks

Curb Exchange by

These reports are classified as follows:

average

•

17

all

of

account

:

'

first

the

ended April 18 and 25,

series of current figures being published weekly by the

a

these figures.

last month was slightly below the record output
of 7,392,911 tons achieved in the longer month of March.
An

of

of these exchanges in the weeks

Commission.

was

Steel production

-

Year-to-Date

-

for the first four months

the volume
members

28,161,202
tons, compared with 27,030,888 tons in the corresponding months of
1941. Production in April this year exceeded by almost 5lk% the
total of 6,754,179 tons of steel produced in April a year ago.
I

Compared
with: the
corresponding week of 1941, pro¬
duction was 7% less, shipments,
7% greater, and new business 2%
less.
The industry stood at 129%
of the average of production in
the corresponding week of 193539
and
152
of average
1935-39
shipments in the same week.

the

on

continuing

The total

Ship¬
produc¬

above

Exchange Commission has made public fig¬

showing the daily volume of total round-lot stock sales

ures

of 1841.

softwood mills.

were

By 4%

New York Stock Exchange and the New York Curb Exchange and

operations of representative nardand

Record Total

ingots and castings during
April, as announced May 8 by the American Iron and .Steel Institute,
brought total steel output in the first four months of this year more
than 4% over the tonnage produced in the-corresponding period

regional associations covering the
wood

Trading On New York Exchanges
The Securities and

Production of 7,122,313 tons of steel

ship¬

1879

average

corresponding decrease for the month of April as a whole.

■>

.~-

yy

•

only sales.
b Round-lot

short

sales which

Included with

are

are

v-"-

Sales marked' "short exempt" are

c

exempted from restriction by the Commission

"other sales."

rules

included with "other sales."

In part, the telegram said:
The
confiscation feature

Steel

of

Output At Record High—Plate
Supply Situation Shows Improvement

legislation

would
result in serious injustice and
the

pending

Mellon

the

York, of which Leslie J, Christensen of the National City Bank is

as

re¬

"Since one step in winning of war is the providing of all steel
plates needed by the nation's shipyards, reports of improvement in
the plate supply situation must be classified as good news," says

value of personal prop¬
erty that might be taken over
by the Government for viola-

gards

President of
National Bank, Pitts¬

Richard K. Mellon,

Associates of New

controversy

court

much

Bank Credit

Thursday,'May 14, 1942

COMMERCIAL & FINANCIAL CHRONICLE

THE

1880

burgh, has been granted a leave
of absence in order to serve as a

Federal

the

of

tions

speed

"The

Iron

"For

many

Age"

its

in

months

today

of

issue

plate

(May

14), adding, in part:
of sharp increases in

because

demands,

limit. The proposed law would
announced on May 7
differentiate between the shipbuilding, have outrun production from plate mills and from
that J. P. Morgan & Co. Inc. had Major in the United States Army. ;• not
other mills pressed into service to<$
person
who unwittingly was
become a member.
;This makes Lawrence N. Murray, Vice-Pres¬
roll this product.
ident of the bank, has been made
In March and compared with 98.6% one week
guilty of drivng at a rate of 41
practically every large bank in
First Vice-President and thereby
however,
shipments
of ago, 97.2% one month ago and
& miles an hour and the person April,
the metropolitan New York area
becomes chief executive officer of
This repre¬
who was wilfully driving at the plates on Maritime Commission 99.2% one year ago.
a member of the credit organiza¬
orders
the institution while Mr. Mellon
actually met the tonnages sents an increase of 1.0 points or
tion,
Robert C. Brown of the
| rate of 70 miles an hour. \
asked.
1.0%
from
the
Some
is on leave.
The Mellon Bank
shipyards report no
preceding week.
As
bearing on
the proposed
Morgan bank will be its represen¬
loss of production due to short¬ The operating rate for the week
also announces the retirement of
tative.
legislation, United Press advices

President,

Vicethus

McEldowney,
as
and
Director,

W.

A.

President

pointed

regular

Assistant Vice-Pres¬
formerly
an
'
*
<

an

He
was
Assistant Cashier.
ident.

soon

reported to have urged the
Military Affairs Commit¬
tee on that day to approve legis¬
lation authorizng Federal requisi¬

automobiles

private

of

States

and seizure of cars whose owners

about 11,000

be paid to

plates.
The raw
situation, particularly
in
scrap,
has eased throughout
the industry and furnaces now
idle for the most part are down
for repairs.
The weekly produc¬
tion of steel ingots in the United

Senate

tioning

is

-

well

tons."

of

driving more
hour.
From the

convicted

are

steel

materials

seven

were

12.57%

of

dividend

final

A

will

that

of

ages

Washington, May 6, stated
government officials

from

meeting of the
Board of Directors of the National terminating 40 years' active serv¬
ice.
He will continue his asso¬
City Bank of New York on May 5
ciation with the organization in an
Frederick C. Windisch was ap¬
advisory capacity.
the

At

800

one

tons

one

-

.

tons

tons

million

1.6

over

i'

<

beginning May 11 is equivalent
1,691,800 tons of steel ingots
and castings, compared to 1,674,-

to

one week ago,
1,651,100
month ago and 1,601,000

V-

year ago.

"Steel,"
summary

markets,

/

of Cleveland, in its
of the iron and steel1

May 11 stated in part:

on

The American Iron and Steel "Each month sees more steel on
Executive creditors of the closed Commer¬ than 40 miles an
Corn Ex¬ cial National Bank, Washington, same advices (United Press) we Institute on May 11 announced mill books carrying top priority
that telegraphic reports which it and the point below which deliv¬
change National Bank and Trust D.
C., Harry J. Hall, receiver of quote further:
eries can not be made is con¬
Company
of Philadelphia," was
They are understood to have had received indicated that, the
the bank, announced on May 6.
Rapid spread of
elected a member of the board of
told the Senate Military Affairs operating rate of steel companies stantly rising.
directors of that bank in place of
The
Committee, which is considering having 91% of the steel capacity production to war goods as more
payment,
amounting to
consumers
convert from civilian
Hale Holden, Jr., who is retiring
requisitioning legislation, that of the industry will be 99.6% of
$703,000, brings total dividends to
capacity for the week beginning work is indicated by the greater
from the
board because he is
no rubber will be available one

I

Alison
Scully,
Vice-President of the
C.

leaving the city.

82.57%.

•

from today for civlian
that all synthetic rubber
developed will be needed for
war weapons, and that civilian
users will have to depend upon

year

May

11

(a

record),

high

new

diversification

of
buyers, many
taking forms of steel differ¬
widely from their normal

now

uses;

Patented Articles

Fixing Resale Price of

Department of Justice against 10 leading
hardboard industry and the Univis Lens Company,

the

in

were upheld by the United States
The latter, according to the Associated
Press, ruled that agency and licensing agreements in these fields
constituted illegal price fixing even though patents were involved.

bifocal

of

maker

further#

patent "can¬
not control the resale price of
The holder of a

patented articles which he
sold

.

.

.

has

price
vendees"

by stipulating

his

by

maintenance

censing system are $3.25 a pair
for the blanks sold by the lens

either

to wholesalers, and $4
pair for those sold to finish¬
ing retailers; $7 a pair for fin¬
ished
lenses
sold
by whole¬

There was no dissent in

,

involved

case

agreements made by the Masonite
Corporation,; of
Chicago,
with
nine
other
companies

-

manufactured

which

Corporation, of
Chicago; Certain-teed Products
Corporation,
of
New
York;
Celotex

°

Johns-Manville

AAA

;

its

derson

hardboard

v

and1 other

terms

and

the

set

maximum

prices,

conditions

of

sale.

Court'sopin¬

factors

agreements
patents,

and
And

down

struck

were

the

that the proposal
"is untimely, unnecessary and
would
do
more
harm
than
Declaring

good," Thomas P. Henry of De¬
troit, Mich., President of the
National Motoring Body, pre¬
dicted that
enactment of the

agency

bill

the Masonite
the
opinion

both

of

them

tend

would

discourage

to

voluntary cooperation on the
part of the motorists, discourage
State action and tend to break

as

'

defenses.

down State enforcement proce¬

As to the Supreme

dures.

'

Court's rul¬
ing in the case of the Univis
Lens Co.,
the Associated Press

Association," he said, "strongly

stated:

favors

The Univis Company,

I

»

t l« 1 «?t» K*




H

* 'l»

#

Automobile

conservation

lowered

the

and

limit
through
observation,
State
legislation and strong State and

of Day¬

speed

voluntary

Ohio,
makes multifocal
lens
blanks, rough pieces of
glass composed of two or more
pieces of different refractive
power, on which it holds pat!

•

"...

American

"The

ton,

;;' -ents, 4

.

local enforcement.

tain all this
resort
*

*

to

can

such

as.the bill

We

are

cer¬

be had without

drastic

measure

in,question."*.5

<

•

10,000,000

are

Br. Stonier Honored

Stonier, Director of The
Graduate School of Banking, was
the recipient of the

.-

•

President to acquire
private automobiles and tires—
by requisitioning if necessary—
to a total value of $5,000,000,000.
owners

would

receive

"fair

price,"

which

would

fixed

by the Price Administra¬

tion.
;

a

be

v.*v
C.)

N.

indicated

after

the session that the Committee
will

into

write

vision

the

bill

a

pro¬

authorizing Government

requisitioning of cars that exa 40-mile speed limit and
another section establishing that

:'ceed

speed

as a

national policy.

said

He

sented

a

the

witnesses

pre¬

picture of the rubber

/situation "which is more serious
than has ever been expressed to
the people of

this country."

"Actiially the rubber shortage
perilous
from
a
military
standpoint," he said. "In order
to provide our Army with rub¬
is

ber,

" (•-not

we are

J

anni¬
com¬

Rutgers Uni¬
versity at New
Bjuns wick,
N. J.,

May

on

de¬

The

10.

gree was con-;

ferred

Robert

This

.

~

Dr* Harold stonier

his work

as

increases

demand on ingots
rolling
demands
rapid
supply, the effect being felt in
decreased
tonnage available for
lighter finished steel products.

"Improvement
is

ing,

whose

held

each

have sufficient current tonnage to

operate near capacity.
reserves

winter

contribu¬
v.

to
of

;

the

adult

education and
especially
in
recognition of

School of Bank¬

resident, sessions
at

are

Rutgers.
of Bank¬

officers.

Now

in

its

it has a capacity en¬
rollment of 600 student bank of¬
faculty of 50 consist¬

ing of bankers, government offi¬
cials
and
university
teachers.

the

Among

is

concern

for

returning
these

felt

over

period.

that

from

dormant

results

but

exhausted

the

good

are

Col¬

sources

tonnage will fall back to produc¬
tion

from
current
fabrication,
cutting down the flow ma¬
terially.
One effect from auto¬
thus

mobile

wrecking

is

increase

an

in cast

grades, which has relieved
the tight situation of foundries to
Licensing of

degree.

scrap

material dealers will afford closer

the

control of

industry

viola¬

as

tions of ceiling regulations can be
with

dealt

by

revocation

latter

are

li¬

of

barring the offended from
trading. - ; Registration
must be made by June 20."
cense,

further

Treasury Offering of 2%

several

/

Bonds Oversubscribed
May

on

from

that

8

the

show

Banks

serve

tions for the cash

an¬

reports

Federal

Re¬

that subscript

offering of $1,-

250,000,000 of 2% Treasury bonds
of 1949-51 aggregate $3,287,000,000.
Subscriptions in amounts up
to and

including $10,000, totaling
$69,000,000, were allotted
in full. Subscriptions in amounts
about

$10,000 were allotted '38%
straight percentage basis, but

over

a

on

less than

not

$10,000 on any one
with adjustments
necessary to the $100 de¬

subscription,
where

nomination.

year,

a

However,

not be built for next

can

and

received

The Graduate School

ficers and

consumers

recognition of

summer

bank

supply

scrap

nounced

ing began its existence at Rutgers
in 1935 with a student body of
sixth

in

being held and most

f The Treasury Department

founder and director

of the Graduate

steel

Rutgers, in

field
«

tonnage of

rail

as

C.:

::

With respect to

the 2%% Treas¬

registered bonds of

ury

which

were

the

1962-67,

offered to the

public

day

(May 4), the
Treasury revealed that these sales
on

for

same

the

first

three

days totaled
The
subscription
including Dr. Eugene E. Agger, books for thesfr 2V2%
bonds, de¬
head of Rutgers' economics de¬
signed especially for investment
partment and Banking Commis¬ by other than commercial banks,
sioner
for New Jersey, who is will close at the end of
business
members

of

the

Rutgers faculty,

associate director of the Graduate

In

School.

given

the

"Service

to

Rutgers
award
Education." He

$633,705,500.

(May
14).
Subscriptions
in the mail before mid¬
for night will be considered as hav¬
was
ing been entered on time.

1937 Dr. Stonier was

today
placed

given further recognition on May
10 for his
contribution to pro¬
fessional

business

Details

as

to

the

offering

education these Treasury bonds

going to have to get through the Graduate School of
*"•"
but every Banking; vv,M'

every * pound

considerable

Clothier,
President
of

his

>

-

upon

Dr. Stonier by
Dr.

4"

'

rails for export under lend-lease.

some

200

Chairman Robert R. Reynolds

(Dem.,
;

17 6th
versary

mencement of

tion

the

The

honorary de¬

of Doctor of Letters at the

gree

'

is intensified by recent allocations

of

when

For Education Work

'

"

t

.

"Steady trend toward heavier
products, plates, bars and shapes,

are

Harold

Downey (Dem., Calif.), author¬
izing

lines.

lections

in the

They were called primarily
testimony on a bill spon¬
sored
by
Senator
Sheridan

ing

prospects

_1J^IWI?

for

tee^ according to\ the Cleveland
"Plain Dealer" of May 10, from

ion, delivered by Justice Doug¬
las, said that, except for two
factors, "there can be no doubt
that this is a price-fixing com¬
bination which is illegal per se
under the Sherman Act." These
two

-

Supreme

■T

Smith.

"

Commit¬

Affairs

lation.

Petroleum
Co-Ordinator
Ralph K. Davies, Chairman Joseph B. Eastman, of the Defense
Transportation Board; Arthur B.
Newhall, representing the War
Production Board; F. Eberstadt,
representing
the
Army
and
Navy
Munitions
Board,
and
Budget
Director i Harold
D.

Opposes Bill To

Miltary

to be developing in the
Senate against the proposed legis¬

peared

uty

which the following is also taken:

The

;

Senate

that

Robert P; Patterson, Dep¬

War

Confiscate Automobiles

minimum

Associated Press
accounts
indicated
formidable
opposition ap¬
11

May

in addition to Mr. Hen¬
were Undersecretary of

group

National Gypsum Com¬
pany,
of Buffalo; Wood Con¬
version Company, of Cloquet,
Opposition to a Federal speed
Minn.; Armstrong Cork Com¬
law of 40 miles an hour, carrying
pany,
of Lancaster, Pa., and
the
penalty
of confiscation of
Dant & Russell, Inc., of Port¬
vehicles for violations, has been
land, Ore.
expressed by the American Auto¬
■
Under the agreements, Ma¬ mobile Association in a telegram
sonite
appointed
the
other to Senator Robert R. Reynolds of
firms as agents for the sale of
North Carolina, Chairman of the

York;

which

He said
at today's

Washington

Appearing before the Senate

the

control

privately-

number of

by

to a man."

eastern seaboard states.

paten¬
price at
which the finished lens is sold."

Corpora¬

Sales

tion, of
New York; Insulite
Company, of Minneapolis;
Flintkote
Company,
of New

of

doing

can

the

mate

car

affected

discussed

was;

owned automobiles at 34,000,000,

-does not follow that the
tee

requests for conservation

Latest available statistics esti¬

the patented prod¬

of

by

legislation is being sought,
pointed out, is a warn¬

the

than five tires

first

five tires would be "of little use

was

of their tires.

work
on
the
blank which he has purchased
from the patentee's licensee, it
uct,

Govern¬

more

the

meeting, and pointed out that
:an
automobile "with less than

steps

ment

because the licensee
takes the final step in the man¬
ufacture

the

ing to all autoists of what lies
ahead unless they heed Govern¬

"merely

involved

firms

other

The
were

,

that
it

that

ruled

-1 believed

"drastic"

immediately.

in preparation for
requisitioning when, and if, it
becomes
necessary.? 1 The fac*.

for

decision

this

On

merely is taking all neces¬

sary

consumers

"The

done

be

Others
ment

tinted, lenses sold to
by prescription and
finishing retailers."

$20

building
material.
Masonite
holds patents on hardboard, a
synthetic board made of wood
chips.
Some of the other firms
hold
patents
on
competitive
products.
,

'

doubted that anything

salers; $16 a pair for white, and

sold

or

Ad¬

Henderson,

committeemen

with

be

requisitioning orders.

of those who testified, is re¬

would

a

hardboard

The

Price

tires.
Leon

Several'

company

of the two cases.

private

over

tial in the near future.

li¬

the

under

maintained

and

violating the Sherman
Anti-Trust Act, the Court said.

without

and

will

ported to have said that re¬
quisitioning may be come essen¬

Chief
Justice Stone, said that Univis
collected 50 cents royalty for
each pair of lens blanks sold
and that "the prices prescribed

reported:

vehicles

one

—
The Court's opinion, by

■

to

ministrator

May 11.

Press

Associated

The

glasses,

eye

Supreme Court on

take

required

owner

be

may

"believed

mitteemen

how

to

as

Government

the

soon

available.

are

differed

Opinion

Anti-trust suits of the
firms

stocks

whatever

Court Holds

Violates Trust Law Supreme

that is available in this
country."
Mr. Reynolds and other com¬

ounce

;*

in

these columns

1792.

of

were

of
given

May 7, page