Full text of Commercial and Financial Chronicle : May 20, 1943, Vol. 157, No. 4178, Section 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

MAY 2 11943
Final
"■

Edition

WO*

In

ESTABLISHED OVER 100 YEARS

2 Sections-Section

1

'

ommetciG

Reg.

Volume

New

Number 4178

157

When Will The War

Until After Election Of

United

the

is

States

China

nor

Russia

Certainly

<

In Post-War Period
"

the

of

none

Axis

coun¬

tries

are

obligations outstanding on behalf of Axis
nations and their satellites, foreign bonds dealt in on Amer¬
ican markets have, since the outbreak of the present con¬

registered an aggregate enhancement in price, on the
quotations of more than $269 million. Details
presented in the table shown at the end of the article.

flict

basis of recent

has
t

writ-

no

constitu¬

e n

tion, although
is

fact

this
not

necessary

for

thesis

my

this

week.

Certain¬

England

ly

her

and

Em¬

pire group are
entire-

run on

1 y

different
i n ci p 1 e s

p r

All

the

whether

States.

means

it

like

Is

II

War

bound

is

above

we

World

the

than

United

Babson

W.

Roger

that

or

not

gradually

politics. Fur¬
thermore, the longer the war lasts
the more it will become involved
in
as

to

into

get

politics. This is especially true
fear of American invasion or

bombing disappears and there is a
(Continued on page 1876)

are

Bonds issued

behalf

o n

held

and

individuals, as
well

Special

with reference

interest

in the above

activities

items of

material and

to dealer
State ap¬

record

appre-

of

ciation

2,780% during
the period un¬
review

der

despite

of

visions

1917 and the bravery

a

which

without

Dr.

Max

Winkler

are

From

a

repu¬
quotation of only

of
Russian

5/16th, that is, 3.12% per bond

1939,

August,

in

bonds have risen to a

re¬

cently recorded price of 9, or $90

bond.

per

whether

sponding

It may well be doubted
there has been a corre¬

enhancement in value.
been

has

There

Moscow

or

intimation

no

that

elsewhere

QUICK ACTION ON DESIGN
AND CONSTRUCTION
also

Russia's

invalidating

decree

public debts has been or is about
modified.

to be revoked or

Victory is Worth...

Sandersons Porter
ENGINEERSand CONSTRUCTORS
52 WILLIAM STREET

about

$3,500,000, is of no special
significance. However, the status
of Finnish, loans may change sub¬
stantially
the

to

if

off

break

J''

r'

\

R. H. Johnson & Co.

Wholesale

>

1856

York

PHILADELPHIA

Albany
Buffalo
Pittsburgh
Williamsport

Stock

Cotton

of

Board
Cotton

Orleans

"

other

NEW

D.

■

GENEVA.

Dr. Walter E.

$77,000,-

:■

Bldg.

PITTSBURGH




which is
Sunday and

car,

other days, a sav-

1866)

on page

of the inflation" is pre¬

index

■,

Page

„

Bank

and

Insurance

Stocks

Calendar of New Security
Canadian

...1864

Flotations. 1878
..1866

Securities

taxed

away

that

ever

if "inflation" (what¬
mean) is to be

may

Personnel

Real

prevented.

Estate

Securities

is

It

doubtful

whether

many

or

of

tions

the
to

1861

1853

Securities

Salesman's

Tomorrow's
i

1874

Items

Securities

Railroad

Corner.

1869

Markets—Walter Whyte

I860

Says

great practical limita¬
usefulness of these

the

concepts, or of the great gaps in
the data available to those who

the

chase

bank

Broaden your customer

JERSEY CITY

Syracuse
Dallas

correspondent

Hardy & Co.

LOS ANGELES

service with Chase

facilities

York Stock Exchange

York Curb Exchange

New York

30 Broad St.

Member Federal Deposit

Insurance

Corporation

Tele. NY 1-733

Tel. DIeby 4-8400

lamborn & co.

Federal Machine and

INDUSTRIALS

99WALL STREET

Welder Co.

NEW YORK CITY

1

request

Kobbe, Gearhart & Co.
45

Y.

N.

Nassau

Security

Street

REctor 2-3600

Philadelphia

.

Dealers

Ass'n

New York

Teletype N. Y. 1-576

Telephone:

HART SMITH & CO.

REYNOLDS & CO.

INCORPORATED

MEXICO,,

SWITZERLAND

a

Spahr

Members New

RAILS

Tel.
-

are

to

Products, Inc.

YORK

P.,

on

(Continued

Members-New

INCORPORATED

AVIATIONS

Members

■

for business

and Dealers

634 SO. SPRING ST.

Exchanges

DETROIT

spent for

used for pleasure on

Service

Distributors

Basic Reports upon

-

money

000,000,
sav••
ings will Soar to above $40,000,000,000, and that "a severe inten¬

REQUEST

15 EXCHANGE PL.

Trade

Y. Cotton Exchange

funds

used),
or
is it
spent for
consumption?
Is
non-borrowed

not

Purolator

Inc.

Exchange

borrowed

that

extent

Exchange

Exchange,

it to calculate his

savings at any time.
Is money
spent for a home a saving (to the

i

Exchange

Commodity

MEXICO,

be hard put to

Exchange

Curb

York

CHICAGO

degree of slowness in the velocity
Any individual would

of money.

Bond Brokerage

/

Actual Trading Markets, always

Members

N.

about

involve months,

national

HUGH W/LONG and-GOMPANY

INVESTMENT SECURITIES

H. Hentz & Co.

And

limited

can

weeks, days, or hours, and in the
last analysis reduces itself to the

for Banks, Brokers
ON

PROSPECTUS

Troy

Chicagor

how much? It

$ 1 0 0,000,000,

FUND

BOND

Buy More War Bonds

64 Wall Street, New

New

al,

"'L;'

MANHATTAN

Whatever the Cost

BOSTON

York

relations with

Republic, which is now allied
against Russia and
(Continued on page 1868)

*-

New

may

o c

people are aware of the nature of
the concepts which are implied
States in these national income figures,

with Germany

Established 1927

»

United

the

/

San Francisco

NEW YORK

York

involves the element of time. But

1

OF THE CITY OF NEW YORK

FINANCING and VALUATIONS

New

exceed

State,

dicted.

The decline, aggregating

change.

■■

with

In connection

New

and heroism

Army in its strugglq

outstanding in the American mar¬
kets have shown relatively little

To be

.

MANAGEMENT PROBLEMS

Establisha

and Federal—

apparently simple concept of sav¬
in fact difficult to define
in any uniformly practical way.
The question
of saving always

REPORTS

SURVEYS AND

Chicago

ing is

Government ex-

courage

were

the

1943, that total
t itures—

p e n

their satisfaction with
Investment Trusts
.7.1863
Out of these figures comes an
of the Russian sol¬
1877
of
what
is
popularly Municipal News and Notes...
diers by buying Russian bonds ir¬ estimate
Our Reporter On Governments... .1880
respective of their inherent worth. called "the inflation gap" which
Our
Reporter's Report
1859
Bonds
of
European
neutrals many people insist should be

the

absolutely

ception,

Red

prior to

pressing

ex¬

diated."

was$>

1942

compile such estimates.
To take only one example: The

against
Hitlerite
Germany, the
trading and speculative fraternity
sification
may have
felt the need of ex¬

t o
"all

loans,

foreign

the

of

decree

according

for

income

$119,800,000,000, that it: is ex¬
pected to reach $140,000,000,000 in

are

commitments entered into

pro¬

Soviet

from

1862.

pears on page

insti¬

as

tutions, have
registered the

dollar

Corporates-Municipals

by

(sic),

vestors

there

sure,

in¬

American

example, the Department of Commerce's report says that

000
in
1943,
various references
that consumer
to Russia's obligations in "Mission
e x p enditures
to Moscow," the diary of Joseph
should decline
E. Davies, America's former Am¬
t o
$77,000,bassador to the Kremlin, and to
0 0 0,0 0 0
in
the
desirability of reaching an
1943 from the
agreement regarding them.
It is
almost
$82,also
possible that
Mr. Davies'
second
Mission ' to
Moscow has 000,000,000 of
1942, that if
given rise to renewed speculative
c o n s u m ers'
activities- in repudiated Russian
e x penditures
loans.
Even though there is not
for
available
the slightest connection between
supplies
are
Russia's
regard for contractual

f

Czarist Russia

$1,000

Connecticut

o

University

of national

income, such as those for 1942, sup¬
plied by the Department of Commerce, are being used these days
to support contentions regarding "inflation" and a Federal tax pro¬
gram that should be subjected to more careful scrutiny than they are
receiving.
<
national

Exclusive of

cies.

England

The estimates

For

By DR. MAX WINKLER

democra¬

Copy

By WALTER E. SPAHR
Professor of Economics, New York

!'

'

democracies.

are

To "Propa¬

Offers Suggestions

func¬

only

tioning constitutional democracy
engaged
in
the war.
Neither

a

Some Questionable Inferences Drawn
From Estimates Of National Income

ganda," Not Deterioration Of Investment Status
To Facilitate New Borrowings Here

that the

remember

Price 60 Cents

York, N. Y., Thursday, May 20, 1943

Attributes Disrepute Of Foreign Securities

November, 1944
us

Office

Pat.

Foreign Investments

Roger W. Babson Says Not

let

S.

The War And American

End?

First

TJ.

Enterprise 6015

Members

New

York

120 Broadway

Telephone:

New York, N. Y.

Exports—Imports—Futures

Members
New

Stock Exchange
52

York Security Dealers Assn.

WILLIAM

ST.,

N.

Y.

Bell Teletype NY

HAnover 2-0980
1-395

REctor 2-7400

Bell, Teletype

NY

1-635

sugar

New York

Montreal

Toronto

DIgby 4-2727

THE COMMERCIAL & FINANCIAL

1858

•.Trading Markets in:'

We Maintain Active Markets in U. S. FUNDS

■Continental Airlines

Common

40

Members N. Y. Stock

HA 2-2772

Exchange P1-, N.Y.

115

Moines & Sou.

legislation and new administrative bodies, the emer¬
gency rent laws, The Wagner Act, the moratorium on fore¬
Exchange Act, amongst
others. The pendulum was
swinging the other, way.

1-1227

No

doubt, there

defined

trend,

•

are

Copper Canyon Mining
30c—40c

Abraham

Illinois Zinc

George A. Rogers & Co., Inc.

Metz

M.

1

•

•

(Continued

•

on page

Com.

Pfd.

&

Inc.

&

Striithers Wells

.

Preferred

&

Common

sy2s,

1949

'V

v.V

H. G. BRUNS & CO.
New York

20 Pine Street

Telephone: WHitehall 3-1223
Bell

Teletype NY

:

1-1843

se¬

Edward A. Kole

1873)

1923

in

mind.

J.

New

*

-

.

South Shore Oil & Devel.

inflation

is

through .the

picture given by viewing the
rates for sending a letter.

1922

to

the end

1923, can be
ing figures:

Alegre Sugar

seen

of November,

from the follow¬
'
Marks

&yemeandcomp(m^
N.

Y.

Security. Dealers

Association

37 Wall
Bell

St., N.Y.

Tel. HAnover 2-4850

Teletypes—NY

1-1126

&

inflation

1127

January

1,

;2

December

15,

March

1923

1.

1922

25

100

1.

August 1, 1923
September 1, 1923

1,000

early

could

1919
1920,

during
months of

for

1913.

not

That,

of

commence

to

candle to what

period

and not

as

course,
hold a

as

a

business boom

inflation.

Inflation, even though terribly
October 1,
1923____
2,000,000
dangerous, seems to be a welcome
November 1,
1923—.
100,000,000
November 26, 1923
visitor to those who eagerly look
-i.__^40,000.000,000
While nothing on the order of forward to higher stock and com-;
neces¬

(Continued

as

of
an

1 E. de Wiliers & Co.
Broadway, New York

will

Punta

acquire

Alegre Sugar

Vertientes

Camaguey

Sugar
Farnsworth Television
Great. Amer. Industries

Botany Worsted Mills

floor

Com. & Pfd.

broker.

•''
*

Glark, Dodge
Co.
To Admit Bradshaw
P.

Bradshaw,

on

page 1865)

"■

Ill

'

•

York

New

Afembers '

Security

-

.

Dealers

Detroit

&

Utilities

Canada

Eastern
Eastern

fpi.We Specialize in

Tunnel

■

Be/I

System

Teletype.

NY

TRUST COMPANY PARTICIPATIONS

will become a partner in Clark,
Dodge & Co., 61 Wall Street, New
York C City,
Exchange
member
firm, as of today. Mr. Bradshaw
for many years has been active
an

as

Dumont

Laboratories

floor broker.

individual

BONDS AND STOCK

Correction
bought

the "Financial Chronicle" of

In

sold

quoted

May 6, it was reported that Wells-

Stuart

in

Members New York Stock Exchange

Wells, Jr. and Edward P.

Wells, 'previously with the
ton

Edward A. Pureed & Co.

Incorporated, had been
Minneapolis and that

Dickey,
formed

Members New York Curb Exchange

Day¬

65

Company and the Northwest¬
National

Bank

Broadway

Bell System

respectively,

WHitehall 4-8120,
Teletype NY 1-1919

would be officers.
We

have

this is in

informed

been

error

as

that

the corporation

Spokane Int'l Ry. Esc. Recpts.

is at the

present time entirely in¬
Stuart Wells, Jr. and
P. Weils are remaining
actively connected with the Day¬
ton Company and the Northwest¬
active

and

New York Water Service Pfd.

Edward

ern

Scranton Spg.

Brook W.S. Pfd-

Deep Rock Oil

National Bank.

Ohio Match

Robt. D. White Dies
R.

Robert Davis White, partner in
D. White &
Company, New

Roberifc Mayer&Co., Inc.

York investment

firm, died at the
age of seventy-two..
Mr. White
had been in Wall Street for fortytwo years,
in 1937.

Established

:<

Pine

30

1915

Water Bonds

&

It will be worth your

Stocks

buying

G. A. Saxton & Co., Inc.
II

II

70 PINE

ST., N.

Y.

Teletype

WHitehall 4-4970

NY

1-609

V




•

,

Street, New York

Telephone DIgby 4-7900

forming his own firm

Bell System Teletype NY 1-1790

;

-

COCA-COLA BOTTLING CO. OF LOS ANGELES
COCA-COLA BOTTLING "A" (CINCINNATI)

BOTTLERS, INC.

WHOLE MORTGAGES

Radio & Tel.

or

selling

while to check

any

us

before

42

HoiiRsseSTrqster

of these securities.

STERLING INVESTING CORPORATION
BROADWAY

l|

BOwling Green 9-0480

NEW YORK

•

of the New York Stock Exchange,

RED ROCK

Sugar Assoc.

Farnsworth

■

1-2480

member

COCA-COLA BOTTLING CO. OF N. Y.

TITLE COMPANY CERTIFICATES

Corp,

Assn.

Broadway, New York, N. Y.
REctor 2-52X8
fii

Trading Markets in:
Citizens

1

Teletype NY 1-2361

Stock

happened later in

75,000

the German inflation need

member

J.F.Reilly&Co.

Germany.
In fact, until the col¬
lapse occurred in 1920 we spoke
of the

Slepack

York

individual

ern

100

<

a

pack and Mr. Davis were former¬
ly partners in Slepack & Co. Mr.
Davis has recently been active as

In the United States we ran into

of

,

postal

Warrants

Members

\

The increase in the cost of postage
in Germany from the beginning

-

Perhaps one of the best ways
portray the ravages of the

vivid

Int'l Mineral & Chemical

Punta

something worth keeping

German

Preferred

&

is

degree.

and the
at which
time a dozen eggs reached the
price of $1.20 and sugar sold as
high as 33 cents a pound.
The
general price level, before the ex¬
plosion in the spring of 1920, was
approximately 235 on a basis of

to

Elastic Stop Nut
Common

%

where when inflation reached the
nth

was

Co., with offices at 120 Broad¬

an

period without paying too great a penalty.
In discussing inflation one hears considerable about "limited
inflation." Perhaps of all the perils in connection with inflation the
most
insidious is that of being^
lulled into a sense of false secur¬ sarily be contemplated as likely
ity by banking on "limited infla¬ to take place in the United Stat'es
tion."
When inflation once takes at this time, it is important to
hold, there is no telling how far know what has happened else¬
it will go, and it would seem that
what happened
in Germany in

;

Ph. & Read. C. & I. 6s 1949

New York City, in partner¬
ship with Edward J. Davis, also
an
Exchange member. Mr. Sle¬

subject of inflation is rightfully receiving a great deal of
particularly in respect to the type of investments to
which will supposedly carry one through the
inflationary

make

Annual report on request

mem¬

way,

The

1952

6s,

in

115

Exchange
membership of Earl W. Hance as
of May 27th and will form the
Exchange firm of M. J. Slepack

attention now,

Indiana Limestone

per

Stock Ex¬

Exchange- and .active

the

By EDWIN J. SCHLESINGER

Douglas Shoe

New York

Co.,

$50.00
1942

Will Be Formed

Inflation Would Leave Health Best Asset Of AH

Common

&

Colortype Pfd.

share

change and will act as alternate
the floor of the Exchange for
Harold Eliasberg. In the past, Mr.

Sydney

Byrndun Corp.

branch offices

on

Moses

breaking point,, find themselves in the position where it will
be impossible to continue doing business.
;
the
t
Under the manifesto of an "existing emergency,
if

will

partner

a

Samuel

bers of the

the

curity dealers must be par¬
ticularly alert lest many of
them
who
have
already
been
regulated to the

$7.37

15—20

become
E.

;

this

which

Now is the time that

Niquero Sugar

Ralph

our

over

1. J. Slepack Go.

vigilance on the
part of those who in the
end, were vitally affected,
is-one of the prime reasons.

65c—90c

about

Worthington

Earned

120

well

for

reasons

reasons

American
>

REctor 2-7634

that lack of

Cuba Co. $1 Par

earned

L.

individual floor broker.

writers do not intend to go
into.
It is enough to say

To Dealers only

New

Direct wires to

2-7815

Bel. Samuel Partner

the

and

NY 1-1557

WorSlsiisgfonrTo

Worthington

closures, and the Securities
mm

WOrth 2-4230
Y.

REctor

Broadway, New York City,

Broadway, N. Y,
N.

is. L.

:

new

New Issues

Teletype

Tel.

St., New York, N. Y.

NewOrleans, La.-Birmingham, Ala.

BROADWAY, NEW YORK

1-672 ''

Thus, landlords, real estate mortgagees, and manage¬
ment, have had their beneficial periods. Then along came

Baltimore Stock Exchange

Bell

120

25 Broad

Stock

Exchange
York Curb Exchange

New

:

,

York

shortly

Mitchell & Company
120

Members New York Stock Exchange
New

V

law.

Segal Lock & Hard. Pfd.

Members

NY

steiner; Rouse & Co.

$

During various phases of our activities, one group or
another has from time to time become a group favored by

Consol. Mach. Tool Units

Preferred

&

Quoted

Members

George

Elk Horn Coal Com. & Pfd.

&

Teletype

-

By ABRAHAM M. METZ and EDWARD A. KOLE

Allen B. Du Mont Labor. "A"

5's

'

7-0100

—

McDonnell & Ax

Over-the-Counter Sales as Principal

Axton-Fisher Tob. "A" & "B"

Ft. Dodge, Des

BArclay

^ NEW YORK

.

Sold

—

.

Exchange and Other Principal Exchanges

BROADWAY

Telephone

TELETYPE NY 1-423

BELL

Bought

/

Goodbody & Co.

As9'n

Dealers

Security

Ralston Steel Car

:

Established 1920
York

Debardelaben 4s, 1957

Residual Certificates

STEEP ROCK IRON MINES

KING

Alabama Mills

/

Improvement

BULOLO GOLD DREDGING

Common

New

United Gas

NORANDA MINES LTD.

United Gas Improvement

Members

for

KERR-ADDISON GOLD MINES

Nu-Enamel

&

Thursday, May 20, 1943

Z

Braniff Airways

KING

CHRONICLE

Established

1914

Members New York Security Dealers Association

74

Trinity Place, New York

Telephone:

Teletype:

BOwling Green 9-7400

NY 1-375

:

I

Volume

CHRONICLE

We

U. S. Patent Office

Reg.

William

Dana

B.

25 Spruce

Company

Street, New York

Herbert

!-

D.

William Dana Seibert,

Published

twice

1943

stuck

j

week

a

.

Spencer Trask & Co.

issue
Other

statistical

a

Copyright
Company.

1943

B.

William

by

32

Dana

second-class matter Feb¬

as

Canada,

$27.50

year; South and
Spain,
Mexico
and
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.

Central

year;

per

foreign

subscriptions

advertise¬

and

ments must be made in New York funds.

Inquiries Solicited
BOND AND MORTGAGE

GUARANTEE COMPANY

TITLE GUARANTEE
AND TRUST CO.

Teletype NY 1-832, 834

(We

specialists)

are

REPORTER'S

Members

40 Wall

York

New

St., N.Y.

Bell

REPORT

Stock

movement

Teletype

the

of

York

New

Se¬

Association How¬
Hoit, Hoit, Rose & Troster,
.74
Trinity
Place,
New
York,
N. Y.; Samuel H. Junger, S. H.
Junger Co., 40 Exchange Place,
New York, N. Y.; and L. D. Sher-

curity

Dealers

S.

L. D. Sherman & Co., 30
Street, New York, N. Y.,
elected to membership in

the Association.

Currie, Jr., a Gov¬
elected as representa¬

Also James
ernor, was

of

his

Currie

new

firm of Troster,

Summers of 74 Trinity

&

Place, : and

the

materials,

membership

of

Co., Inc., was trans¬
ferred to Luckhurst & Co., a co¬

Luckhurst &

partnership, with Herbert Singer
continuing as representative.

the

however,

situation
where

point

the

foreign

hostilities

prolonged,

is

who

those

whether

or

to

the

to a sudden end.

may come

it

destined

are

realized among
speculating'in the

fully
are

rails, that the near-term prospects
for the carriers are lii*ked close¬

ly with the war and its duration.
If the

several

for

chances

is to he prolonged

war

it is argued,

years,

sustained traffic

favor

volume, consequent high earn¬

ing of financial

sudden collapse

A

fic and revenues,

that

tended

the

of

B.

March

has

formed "Gordon

B.

March

Company, with offices
Street, to en¬

&

Devonshire

111

general securities busi¬
Mr. March was formerly a

in

ness.

partner
which

a

March

in

was

Kimball

&

Ben

Coal, 1st 6s, 1948

St.

Louis Pub.

w. s.

Inc. 4s,'64

St. Louis Pub. Ser. "A" Common :
Kansas

Preferred

SCIIERCK, RlCIITER
•:

.

Building, St. Louis, Mo.

Garfield

session of

D.

assures

the

traffic

substantial

The corporate new

issue market
pretty much into

back

bulge ( of activity in
preceding period. Only one
sizeable
offering,
$3,000,000
of
Flintkote Co. fifteen-year 3 per
cent debentures was offered pub¬
J

licly.
There
sue

was

in addition

an

is¬

of $3,500,000 of Baltimore &

Ohio

equipment trust

Railroad

certificates maturing serially in
from

one

to ten years.

-

<

things were comparatively
(Continued on page 1859)

But

Yes,

in the hands of Euro¬
gold is a blessing; in the

yes;

peans,

hands of Americans

this

And

a

4-6551

i

Specialists In

Title

Co.

Ctfa.

Mtge.

and

&

all

Bank

In

Co.

Co.

Ctfs.

Title

Co/a

Lawyers
Bond

Invited

Mtge.

other

Trust

Ctf».

Participations

Complete Statistical Information

.

J. GOLDWATER & CG

to

to

This

*

view

is

back

not

entirely

has

should

be

treated

be

to

tate-

Teletype

it

was

that

needed

to

1-1203

Consolidated
Textile
Co.
Memorandum

Request

on

J.F.Reilly&Co.
Members

York

New

Ill

v-V,!
Dealers Assn.

Security

.

•

Broadway, New York, N. Y.
'

HEctor 2'5288
Bell

System Teletype,

1-2480

N. Y.

continent."
offer

not

Stromberg-Carlson

Europe
rehabili¬

to

war-torn

did

Y.

N.

NY

"warehouse

as

returned

But Dr. Miller

Federal Screw Works

any

common

and rights

to how we should

as

(Continued

met

2-8970

new.

May, 1921, A. C.
Miller, then a member of the
board of governors (as they were

when

HAnover

.

as

far

gold

Broadway, New York,

sent it

toil!

our

39

foreigners,

able

be

again in return for the fruits

us

As

sapient

then

who will

of

INC.
Members New York Security Dealers Assn.

do is to return it to those

can

perspicacious,

suggestions

curse."

campaign

This

Bartgis Brothers

1869)

on page

American Bemberg

Thing Might Last 5 To 10 Years

Sees

Long-Term Trend of Stock Market Upward

After

s

more

there

than

a

who

those

are

that

some

kind

of

intermediate

an

They recognize,•• however, that the important
which to concentrate is the longer-term trend.
And cur¬
rently there are several good reasons for believing that longer-term
trend is probably upward:
1... Rising Government debt, cir-^
a
twice-taught
states¬
culating money, and bank deposits victory,
mark a strongly inflationary sit¬ manship should be able to lay the
'

uation..

=

COrtlandt 7-6190
System Teletype NY 1-84

170 Broadway
Bell

of

the form of autos, tires,

of

needs in

and countless other
things are piling up—and at the
same time the
purchasing power
with which to buy them is also
accumulating.
; /•
3. The political trend seems to
have changed to a direction more
favorable to private enterprise.
4. Military victory for United
forces

Note

lies

in

ahead;

Your

peace—a

That

There is

possibility
will

Great American Industries

duplicate

Republic Drill & Tool, Com.
at least

that

the

the remote

next

One Park Ave.,

peace

witness

expansion,
rather
than contraction, of internationa
6.

A number

of

new

or

young

industries—plastics, airlines, the
helicopter, synthetic rubber, tele¬
vision,
other
electronics,
light

W. S.

(Continued

We

Make A

on page

Frank C.Masterson & Co.
Members
64

New

York

Curb

Exchange

NEW YORK

ST.

WALL

Teletype NY 1-1140

HAnover 2-9470

1876)

Specialty of Dealing in

Harris-Seybold-

Tiffany & Co.
Corning Glass Works

$3.50 Cumulative Preferred

2-6s, 1951

Beacon Hotel Inc., 2-4s, 1958

trade.

after

Records

.minimum

(Va.)

Common, 6% Pfd. & 7% Pfd.

1918-1939.
5.

refrigerators

Nations

Central States Elec. Corp.

groundwork for at least 21 years

Month after month post-war

2.

HuilUhlj [o.

of rather steadily rising stock prices

year

believe

on

FASHION PARK, Inc.

Potter Co.

:

Johnson & Johnson Pfd.

5s Due 1951

Singer Manufacturing Co.

■

Common & Preferred

Accumulations $17.50 per share
of

April 1,
excess

1943.

Earnings

of $9.00 per share

SIMONS, UNBURN & CO.

Dun &

25 Broad St.

Bradstreet, Inc.

New York, N. Y.
Tele.

2-060®

y.

NY 1-210

Bought—Sold——Quoted

Bristol & Willett
Established

-

Members

New

York

Security

1920

Dealers

Association

Stock Exchange

Members New York

■




on

the American side of the Atlantic?

CRAIGMYLE, PINNEY & CO.
Members

New

York

Stock

Exchange

'

115
.

■-I':-*'

Are

Lawyers

of the Axis,

in the Doldrums

Back

HAnover

123

■'•v

glut of gold may cause

a

innumerable economic diseases

thing

Teletype SL 458

0225—L.

we

might be induced to accept some
of your 'saint-seducing' gold, but
then called) of the Federal Re
only as a favor to our rather, may
serve System prepared an elabo¬
we say, obtuse? American friends.
rate and erudite study of our gold
They mean so well and under¬
He sagely?' concluded
stand so little.
And then, besides, problem.
that we had far more gold than
gold has lost much of its.old-time
we
should have and the surplus
magic; or could we say that pos¬

Descriptive Circular on Request

Bell System

we

economic

correction is overdue.

as

Landreth

conditions

after the return of peace.

1942 in

Bought—Sold—Quoted

COMPANY

experts know it.
they have hatched

certain

City Public Service Common

Kansas City Public Service

that possibly we may

facing

be

w. 8.

7}£s, '53

Ser. Conv.

of the

spread the idea among
gullible citizens that "Well,

Please

Old

some

volume for at least several years

established in 1922.

Old Ben Coal, Inc. Deb.

situa-

plans to

though it is con¬
period*, of post¬

reconstruction

war

railroads

money

Well do

money

however, would naturally reflect
in a considerable letdown in traf¬

the

MASS.—Gordon

BOSTON,

gage

of

position.

momentary

Chronicle)

(Special to The Financial

feel

They

the

is

For that reason

ings, and persistent strengthen¬

the doldrums this week after the

Own Investment Firm

though with singular success among our
policy-making
New
Dealers,

in shaping the future of

civilization.

under

dropped

Gordon March Forms

truth

portant

our

war

of

meeting of the Board

a

Governors

war

into con¬
sideration the matter of wheth¬

By NY Dealers Assort

at

WHitehall

of the information can-

source

not be revealed.

less compelled to take

1-2033

NY

or

reached

has

For

T;

bad

come

S.—Doctor

STREET, NEW YORK

Inquiries

collapse unThe
railroad
bond market is tion
in
this
country is of far less we take a broad, forwardrapidly coming to be recognized greater importance to the future looking view of the gold problem
as a barometer of how the trad¬
Which, of
of
world
developments than is and "redistribute it."
ing fraternity views the outlook generally supposed.
While it is course, means that the gold that
for the duration of the war, judg¬ true that we
now—April 21—have we have because we were willing
ing by discussion around invest¬ $22,482,000,000 monetary gold in to exchange more goods for it
ment houses.
this country, our surplus gold is than any other country should be
The rail lien market, particu¬ not
How very origi¬
only NOT burdensome but as returned gratis.
How capacious minded!
larly that for secondary and les¬ the world war progresses toward nal!
It
now turns out that after years of
ser
grades, admittedly has been world ruin this sky-kissing pile of
reflecting the stimulus afforded yellow metal is going to become toil, sweat and planning to get
by
the tremendous burden
of more interesting and far more im¬ this gold the cleverest thing that

be

tive

D.

REAL ESTATE SECURITIES

have, in the 18 weeks ended April 21, lost

we

highest authority,

the

on

traders find themselves more or

Exchange

WHitehall 4-6330

v

New Members Elected

Pine

D.

Telephone:

neighbors and for our comrades in arms, is that foreign countries
have now, today, approximately $3,000,000,000 under "ear-mark" in
this country.
This can be stated®

The

er

were

stocks
as

Securities.

'

By W. W. PHILLIPS

the

Now,

man,

obsolete

Perhaps not

our

transportation of troops, etc.

Newburger, Loeb & Co.

4

real

a

$262,000,000 gold, or at an annual rate of nearly $760,000,000.
Another point that may be a distinct surprise to some of our
"liberals" who are agonizing over our disinclination to do more for

OUR

the

ard

those

think, provided yon

99 WALL

.

Giving Away Our Gold?

Almost unnoticed

business thrust on the carriers by

Certificates

At

you

Defunct

Exchange

CHICAGO
Harrison 2075
Teletype CG 129

DIgby 4-8640

per

America,

$29.50

NOTE—On account of the fluctuations
In the rate of exchange, remittances for

i

"degree" have you heen

on

bonds?

We

Are We

Board of Trade Bldg.

Broadway

Subscriptions in United States and
Posessions, $26.00 per year; in Dominion

V

r

v

Teletype NY 1-5

Members New York Stock

Dealers Ass'n

Security

York

New

NEW YORK

ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
3, 1879.

v

to

Telephone HAnover 2-4300

STRAUSS BROS.
Members

/

Reentered

of

as

-;>Y

25 Broad Street, New York

Chicago Tractions

and

Offices:

Gardens, London, E.C.

Cuba,

V

Monday].

on

Chicago—In charge of
•Fred H. Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'

i

Conestoga Traction

fevery

j Thursday (general news and ad¬
vertising issue) with

D. D. S.
To what

President

Thursday, May 20,

Victory!

Utility and Industrial

PREFERRED STOCKS

Assoc. Gas & Elec.

William D. Riggs, Business Manager

;

AND COMPANY

One Week Nearer

Public

Seibert,

Editor and Publisher

licHTEnmin

-

offerings of

High Grade

Southern Cit. Util.

'

3-3341

BEekman

;

interested in

are

Cons. Elec. & Gas

Publishers

!'■

.•

1859

COMMERCIAL and

The

FINANCIAL
1

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

157

,

Broadway, New York
'V

Tel. BArclay 7-0700

System Teletype NY 1-1493

ONE
■'

WALL STREET,

Telephone

NEW YORK

WHitehall

4-5290

1860

THE COMMERCIAL & FINANCIAL CHRONICLE

Inquiries Invited

Troster, Currie & Summers
Members New York Security Dealers Association

Thursday, May 20, 1943

PUBLIC

on

INDUSTRIAL

American Export Airlines

Trinity Place, N.Y.C.—HA-2-2400—'Teletype NY 1-376-377
We have

Delta Airlines

Braniff

74

Inland Airlines

RAILROAD

Airways

interest in

an

UTILITY

MUNICIPAL

Chicago South'n Airlines

Midcontinent Airlines

Continental Airlines

National Airlines

Jersey Insurance
Travelers Insurance
United States Fire Insurance
Bankers and
I

t

V

,»

Wires

Private

.•

Buffalo

to

A-CALIXNawCOMEANY

Shippers Insurance
.

•

t(

V

;

Cleveland

•

INCORPORATED

•'

-

Detroit

-

*

'

Pittsburgh

St.

-

^

Louis
120

Ward&Co.
Established

1926

Direct

Announcement

Milton

is

Blauner

bonds

Northeast Airlines

■.

made
as

of the withdrawal

Members New

Wires

to

BOSTON

—

York

Broadway, New York

Phone:
Bell

New York

Boston

Milwaukee

2-8700

REctor

Teletype NY 1-128 8

Security Dealers Association

HARTFORD

PHILADELPHIA

—

of

R. Hoe &

partner of the firm of

a

CHICAGO

v

Co., Inc.

Common Stock

Blaumer, Simons & Co.

We

announce

the opening of a

The remaining partners will continue business
under the firm

TRADING DEPARTMENT

of

name

in

Simons,' Linburn;
Members

BROAD

25

New

York

Stock

&

formerly

NEW YORK
MURRAY

RICHARD

partner of Toerge

and the association with

SIMONS

Department

& Schiffer

of

in the

us

AIGELTINGER & CO.

'

76 William

Trading

Chicago office

our

MR. BERNARD J. CUNNINGHAM

LINBURNZY

V

f

formerly

with Strauss Brothers

Tomorrow's Markets

/YYYvYYY

Walter

HICKS & PRICE

COMPARE

New

Current Price 25

Dividends

Return 8%

1942—$2.00

Reported earnings

per

share

York

NEW

Stock

,'Y.,
Chicago
Chicago Mercantile Exchange

Exchange

Simmons Boardman Publishing $3 pf stock

231

Return 12.5%

'

Reported

paid

in

1942—$3.00

earnings

per

share

St.

A

temporary oversold short
position indicates further ex¬

as

J. W. GOULD & CO.
120

Telephone:

COrtlandt

25%.

Teletype:

'

NY

No doubt

attitude

1-2312

of

industry.
Some
WE OWN

AND

war

OFFER

Conservative Oil Investments

uncertainty
*

^

selected
well

as

for

their

long-term

investment

their satisfactory current monthly

as

the

last

increased

Inquiries

Invited

on

any

Royalty

to

pre-war

pros¬

lion.

ESTABLISHED

EASTERN

522 FIFTH

OIL

ROYALTY

1925

Offerings

63.3

The

AVENUE, NEW YORK.

H. V. Blickensderfer

matches

Fahey Dept. KSgr.

Opens In Los Angeles For Baker 8 Company
(Special

LOS

to

The

Financial

Chronicle*

old V. Blickensderfer is

general

a

from

offices

Street.

Thomas

ANGELES, CALIF.—Har¬

Mr.

engaging

securities
at

523

business

West

Sixth

Blickensderfer

was

associated

J.

Fahey

with

capacity

million

in

was

tons

in

1921,

industry
from

but

of

none

steel

in

these

low

cost,

strength,

Murray Hill 2-4247

Thos.

factor, but

as a

;

has become

Baker

&

durability or abundant
Furthermore, the pro¬
duction
capacity for aluminum
and magnesium, present and pro¬
jected, is but an insignificant per¬
centage of steel consumption.
supply.

ASSOCIATION

Com¬

40 Wall Street, New York
City, in charge of the municipal
department. Mr. Fahey was for¬
pany,

merly with Churchill, Sims & Co.,
Inc. and prior thereto was man¬
ager of the municipal bond de¬
partment of Herbert M. May &

Conservatism

been carried to

may

The

habit of being

a

market"

the

have

well

extreme.

an

steel stocks have

"behind

the

post-war

outlook

for

the

the

in

Standard & Poor's;

companies

in 1942 these

showed

millions.—From
Letter" issued

net

a

"The

of

New

$215
York

by Hugh W. Long

& Co.

with

Davies

Van

&

Denburgh

Co.

and

&

Su'tro

Co.

Co.

William T. Burney Now
Is Wiih Sufro & Go.

making

up

the lost ground.

Steel will have to make

contribution

to

the

the world after the

a

407
of

to

The

Financial

Chronicle)

Montgomery Street, members

the

cisco

New York and

San

Fran¬

Stock

Exchanges and other
exchanges.
Mr. Burney

leading

for many years was in business for

himself
the

in

name

San

of

Francisco

under

Burney & Co.

New

ST. LOUIS

Jersey

Clark

major

rebuilding of
war.
A huge

(Special

to

Dodge, Boston

The

Financial

BpSTON, MASS. —George C.
Street.

Municipal Bonds

Stix

"stainless

4

Co.

509 OLIVE ST.
Bell

System Teletype—SL 80

toughness,

MArket

York

3-3430

2-4383




hardness

addition

and

Cavis has become associated with
Mr. Cavis in the past was

Manager of the statistical depart¬
ment

of

the

Boston

Smith, Barney & Co.

office

of

Recently he

a director of Industrial Asso¬
ciates of Massachusetts.

was

re-

overcome

gradually dwindled to
where

a

has

point

brokers

some

are

tions."

\ 7.

Y'YY

*

.

v

/

*

/V;Y-Y^/, *YY;

The rank and file

bullish;

>

,

*

still

are

is

a

now

being

have

tempered

Others

caution.

a

thrown

by

little bolder

caution

to

the

winds,

gotten out of their
long positions and are, per¬
haps for the first time in their
lives, actually short of .stocks.
to be

news

contin¬

conspicuous by its

absence.
*

*

Y'Y

*

The

North

African

cam¬

paign is over.
We are now
driving the Japs out of Attu
and last but
hardly least our
block

busters

are

hash out of Central

But

while

make

all

cheerful

making
Germany.

these

events

reading only

very naive will consider
them as bullish market am¬

to

With Blyth & Co. Inc.

munition.

weight—making

able to

a

The record
to

them adapt¬
variety of uses.

vast

those

(Special

SAN

gives little support

who

class

the

steels

to

The

Financial

JOSE,

Chronicle)

CALIF.—Paul

only
L.

Muth has become associated with

as

"war babies."
it

is

that year with the net of 1942 and
Members St. Louis Stock Exchange

is

Volume

the

In this BLyth & Co., Inc., Russ Building,
interesting to San Francisco, Calif.
Mr. Muth
compare
the
net
earnings
of was formerly an officer of Bankpeace-time 1937, and the highs of america Company, in charge of

1891

Phone—REctor

In

heat.

Paul Muth Associated

connection

Rippel & Co.

18 Clinton St., Newark, N. J.

steel."

last two
warm—the market

like it, too,

the

weather-

the

anyway,
were

by

*

sistence to corrosion and "fatigue,"
these have a high ratio of strength

merely

New

"new" materials

concerned, the steel industry
is
rapidly expanding its
manufacturing facilities of those
alloys best known to the layman

SAINT LOUIS

Insurance Stocks

Established

as

itself

to

J. S.

As far

* ;•

warm

Chronicle)

Clark, Dodge & Co., 70 Federal

now

well,

ues

accumu¬

as

Bank and

*

With the

Meanwhile the

George Cavis Joins

lating in the automobile,
rail
equipment, construction and other

deferred demand is

con¬

couple of days of
dullness isn't scaring them
SAN
FRANCISCO, CALIF.—
But if the public is bull¬
William Travis Burney has be¬ out.
come associated with Sutro &
Co., ish, its customary optimism
(Special

initial stages of a major advance.

are

NEWARK

rally too large to

beginning to mutter about
something called "condi¬

Later,

however, they have an
equally well established habit of

catching

sider.

days

.

fields.

formerly

Bruce,

such

Believe

in

acts

*

■

against a
figure of about 35 mil¬

velopment,
,

DEALERS

regarding

prospered.
aluminum,
magnesium, plywood and plastics
is another potential post-war de¬

returns.

william f. ferris & co.
Member:

risen

is the investors' apparent

cause

v -

.

war

65.4

and

Competition

Dealer

stocks have

the possibility of post-'*>

see

1919

carefully

have been laggards during the bull

While many industrial

major contributing

a

over-capacity

after

pects

group

rally.

involved

50% to 100% from their lows in 1942, the steel stocks advanced about

Broadway, New York

7-4550

a

II.

of

tension

risks

1942—$3.28
The steel stocks

&

By WALTER WHYTE

Salle

The Steel Stocks In World War II
market of World War

in

S. La

Randolph 5G8G and State 1700

Current Price 24

Dividends

Says—

Exchange

CHICAGO

Street '<

Bowling Green 9-1432

1942—$2.35

Stock

YORK

One Wall

Whyte

Members

,

Crowell-Collier Publishing common stock

in

Street, New York

BOwling Green 9-3530

of

E.' LINBURN

ERNEST A.

.

paid

request

office under the direction of

'

'

■.'/

on

MR. AUGUST A. SCHENCK

Exchange

ST.

'•

New York

our

Co.

Circular

their

present

Net

he

was

for

quotations.
$196.7 millions

and iron

companies

as

in
27

1937
steel

reported by

local

was

Gersten

office.

San
&

Co.

Schutz & Co.

Prior

Jose

.

a

first

matter of fact

landing

North Africa found
tion

in the

Pacific

in

reflec¬

price movement.

Subsequent
theatre

a

or

events
in

found

the

the

in

that
South

market

thereto

Manager

and

As

the

Murray

for
A.

strangely lackadaisical. The
answer, or a partial answer,
(Continued

on page

1873)

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

157

1861

J ~

Western Pacific

REORGANIZATION

Old and New Securities

Ifil):

;aMg:

RAILS

Circular

on

request

Abitibi Pr.&

Pap. 5s, '53, Bds.,C/ds

Aldred Inveslmenl Trust 4 Vis, 1967

Inquiries Invited

Brown

PFLUGFELDER, BAMPTON & RUST

NEWBORG 6- CO.

Members

York

New

Stock

Exchange

MEMBERS
New

York

Stock

Exchange

New

York

Curb

Cocoa

New York

61

Exchange
8c Sugar Exch.

Exchange

New

York

Coffee

Stock Exchange
Boston Stock Exchange

New

York

Chicago Stock Exchange
Philadelphia Stock Exchange
Pittsburgh Stock Exchange
St. Louis Stock Exch. (Assoc.)
Salt Lake City Stock Exchange

New

New York Mercantile

Telephone—DIgby 4-4933

Produce

York

HART SMITH & CO.

Exchange

52

Railroad Securities
The rail market has

Tel*. NY 1-2972

15 marked the tenth an¬
niversary of the formation of the
firm of Strauss Bros., 32 Broad¬
way, New York City, which was

}■. May

founded
r

i

p

of "Know
Your Exchange," issued weekly
by the Public Relations Depart¬

the
of

itself
practical

proved
b y

same

"While such

Robert

who
their

Strauss,

gained

Bryan,
need

many

people

the

Strauss

Abraham

dealers, together with statis¬
tical data and pertinent informa-

for

tion

.

un¬

on

securi¬

listed
ties.

The

idea

an

imme¬

was

diate

success

e s

t

firm

the

and

b 1 ished

a

dealer

con¬

through¬

tacts

out

the

try

as

coun¬

the

service

was

In

expanded.
inau

the

firm

the

1938

be

experienced in the

business."

gurated

Strauss

"Geared

Geo. Griffin

Strauss

which

cir¬

is

GREENVILLE, S. C.—McAlister, Smith and Pate, Southern in¬
vestment

securities

headquarters

in

have

Building,

dealers, with
the
Woodside

branch office

in

their

re-opened
the

City of Ra¬

leigh, N. C., in the Insurance
Building, with George I. Griffin,
as local manager, according to an
announcement made by Herman
B.

McManaway, President of the

firm.

v

-

Mr.

Griffin, who returns to McAlister, Smith & Pate as VicePresident, from the Raleigh of¬
fice

of Barrett Herrick

Company

"of New York, has had a wide ex¬

in the

perience

and

stock

bond

dealers,

;

:r

.\

...

.

nine years
its

.

,•>
the firm main¬
-

-

service

.

.

.

•

dealers

to

throughout the country from its
office in New York. Early last year

branch office in
Chicago in the Board of Trade
Building, to expand further the
they

opened

service
West.

to

a

dealers

This

office

in
is

the
now

Middle
under

supervision of Robert Strauss,

Resident Partner.
a

the firm has

John Cusack Promoted

largely
by war developments.
The final
liquidation of the African affair

remembered

that

when

similar

a

psychology

to

has

been

the management

pro¬

of the

department : of ; Amott,
Co., Incorporated, 150
Broadway, New York.
Mr.

&

firm

Cusack
since

has

been

with

the

and his host of
friends throughout the Street will
be delighted to hear of his pro¬
1934,

motion.

Cornelius
become

Kip

Richardson

associated

of

time,

consideration,

all

Specializing in

of

issues

Railroad Securities

Chicago, Rock Island

1988, both Coupon & Registered

Specializing in

1

WALL

with the

has
firm,

STREET,

WHitehall 3-3450

Bought

was

the

(in reorganization)

tinent has not
at this

It

when
'

•

probably that the peace
psychology will run its course in
a

Central 5s

Iowa

Central 4s

ities

NEW YORK

1962

1938
1951

Des

&

Moines

Fort

Dodge 4s

1935

:rederic H. Hatch & Co.
Incorporated
Wall

63

Bell Teletype

will again be dominated by
within the industry itself.

NY 1-897

has

of

the freight

now

minence of

question

a

rate increases

effective.

become

decision

have

may

on

a

Im¬

the wage

temporary
bullish¬

on

but if the administration is

all

serious

in

its

"hold

the

been

tone, the air has been thick
plausible
It

no

threat

to

the

railroads

in

the*

whether

inspired
have

rumors

been

received

case

has been

there

Plate

circulation

wide

In the

last week.

of Nickel

of the

talk

contemplates that the present
cash
balance and a

mor

refunding operation be utilized to
take care of all maturities through
1949.
These

situation

large RFC loan,
be utilized to re¬
entire debt
(excluding

possibility

of

a

tire

the

equipments)
Such

a

loan

consistently

have

constructive

attitude

towards both Southern Pacific and

Nickel

Plate, and it is still con¬

sidered that these

are

two of the

roads most likely to
maintain a high credit standing
after the war.
Nevertheless,- it

marginal

neither

that

seems

of

the recent

should be given too

rumors

through
Rather,

cannot
an

indicated.

justified.

be

attitude of caution is
'-

,

<

by first lien

then
on

be

se¬

the entire

which

600,000.

Portland &

property, and would be a sound
bond with fixed charges reduced
in

the

operation to around $4,The rumor also covers

Ogdensburg Ry.
4/4% bonds

Western Pacific Issues

of

the

-

Western

Due November 1,

1953

Pa¬

cific

West

Railroad, both old and new,
interesting possibilities, ac¬
cording to a memorandum just

offer

issued by

Pflugfelder, Bampton &

Virginia-Pittsburgh Coal Co. First
Rust, 61 Broadway, New York
Mortgage Income 6s of 1947 offers
attractive possibilities according City, members of the New York
Stock Exchange.
to D. F. Bernheimer & Co., Inc.,
Copies of this
42
Broadway, New York City, memorandum
may be had upon
Erom whom interesting descrip¬
request from Pflugfelder, Bamp¬
tive material on this issue may be
ton & Rust.
had upon request.




a

outstanding.

now

would

it is announced.

Securities

y

in

pages

advocated

the proceeds to

sizing for a long time.
It is no
longer
possible
to
ignore
the
painless reorganizations through
of these roads have

the

Pacific the ru¬

much
the rumors have weight, and certainly purchases
those affecting Nickel Plate based on the possibility that these
Southern
Pacific, both of rumored plans will be carried

cured

many

In

of

Typical

rail

empha¬

has

inspired the higher price levels.

which

been

decide

the

or

rumors

and

have

to

action

market

independent firmness of
the second-grade
"and interest"
list may be traced to the gradual
and
belated
recognition by in¬
vestors
of the full
implications
of the high earnings and tremen¬
dous cash receipts of the marginal
roads, factors which students of
securities

to

difficult

is

the

with

of them sufficiently
attract a following.

rumors, many

line" drive there should certainly
be

Southern

of

heavy

its

with

accumulations.

dividend

Nickel

the

for

common

preferred

substantial

going and the fact that a
In that respect the outlook con¬ large proportion of the group will
tinues highly favorable, with vir¬ emerge into the post-war era as
tual assurance of a high level of eminently sound railroad credits.
earnings even though the suspen¬ Coincident with the good market
sion

exchange offer of Chesapeake
Ohio

Plate

case

York, N. Y.

New

Street

and that rail secur¬

factors

an

&

seems

short time

72 WALL STREET

Con¬

'

•

1934

Minneapolis & St. Louis 5s

entire

been invaded

even

writing.

the

request

Minneapolis & St. Louis 4s 1949
Iowa

peace

Quoted

—

upon

Van Tuyl & Abbe

& St. Louis 6s 1932

Minneapolis

Minneapolis & St. Louis 5s

picture and it does seem pre¬
mature to be thinking in terms of
early

Sold

Information

ST. LOUIS RAILROAD

inclined to take
of

—

MINNEAPOLIS &

war

an

SEABOARD AIR LINE

YORK

NEW

Teletype: NY 1-2050

RAILWAY COMPANY

and of riots even in
itself.
Informed mili¬
are

COi

LEROY A. STRASBURGER &

troops

our

sober rview

more

GENERAL 4s,

the

evi¬

optimism

tary quarters
a

Telephone HAnover 2-1355

Teletype NY 1-1310

first
given
widely
publicized reports of growing un¬
rest
throughout
the
European

landed. This

NEW YORK

ONE WALL ST.

& Pacific R. R. Co.

mild

in

was

The

trading
Baker

this

at

Look Attractive

Va.-Pittsburgh Coal

Situation Interesting
current

moted

Cusack

We recommend dealers'

influenced

been

wages.

By Amotf, Baker Co.

BROKERAGE

SERVICE

Particularly

The recent rail market has ap¬

parently

at

T.

second-

office

through wires to cor¬

respondents in other cities.

The

long time back has

a

of the list.

ness,

John

the

In addition to

direct wire to its Chicago

West

for

moderating influence

;Y

business.

culated among

together with
"Dealer Chats," edited by Frank
Ginberg, who became head of the
firm's
statistical
department in

tained

market

highlighted the ability of reorgan¬
ization securities to push forward
substantially in the face of de¬
clining trends throughout the rest

Germany

McAlisler, Smith Go.

:

since

years

York Stock Exchange

fact, the general pattern of the

continent,

Rejoins

to

New s,"

the

For

In

Toronto

McLaughlin, Baird & Reuss

BOND

additional impetus by the

Bulletin,

1936.

in

even

dence

than
men

by

securities

^ppiiri—

unlisted

section,

self-administered

helpful
rules

saw
of a

been

intermediate term swings.

or

peace

can

chandis-

Robert

short

more

They established their busi¬
to furnish primary markets

ness

defaulted

the

1-395

some

better performance than

a

applied by theorists

dealers in lin-

ties.

give

again brought up thoughts of an
early end to the war—it will be

ing service for
licfprl

has

of

special ized
m e r

It

buoyant.

&

firm

Logan
the

actually

Exchanges' manage¬
ments capable of keeping it that
way despite the thoughts of those
who feel that outside regulation

with

training

on

things, it

within

financial
the

notable increase

a

effects

is significant of a
well-managed, well-organized in
dustry that the market is orderly;
that
it
has
controlling
forces

and

Abraham

that—

has many
and

observation

the

and

On the other hand, "and interest" obligations

course.

marginal carriers have been consistently steady, and in

Curb

York

steadily improving volume
sales

made

application. In
May,
1 933,

New

Exchange, reference is made to

1 e

has

that

the

of

ment

to

HAnover 2-0980

Montreal

developed decidedly divergent trends in the

grade bond section has been able*>

In the May- 8 issue

aS'-;:';V./

on

i

n c

Theorists

Y.

N.

Teletype NY

Members New

of the

instances

Tenth Anniversary Rule By

ST.,

Bell

the soft side and the speculative stocks have followed

on

much the

New York Curb Belittles

Strauss Bros. Marks

WILLIAM

New York

For the most part the defaulted section has been

past week or so.
notably

the

1-310

Teletype—NY

Exchange

Chicago Board of Trade
Chicago Mercantile Exchange
Commodity Exchange, Inc.
Winnipeg Grain Exchange

30 BROAD ST.. NEW YORE

HAnover 2-6540

p

Bell

Ry. (Internal Issues)

Internat'l Pr. & Pap. of Newf.5s,'68

New York

Broadway

Cotton Exchange

Baltimore

Company 5s, 1959

Canadian Pac.

1. h. rothchild &

co.
63

specialists in rails
120

hroadway

COrtlanclt 7-0136

n. y. c.

Tele. NY 1-1293

Wall Street, New York

BOwling Green 9-8120
Boston

Philadelphia

Tele. NY 1-724
Hartford

1

V

1862

THE COMMERCIAL & FINANCIAL CHRONICLE

Banks

Institutions

-

We

Fiduciary Agents

-

Many bonds and stocks of CONNECTICUT
enjoy a high investment
We have specialized in these secur¬

ities for

over

Should

Haven Water Co.

United

CORPORATIONS

rating.

Can The United States Support
A 300 Billion Dollar Debt?

always interested in:

are

New

Illuminating Co.

Security Insurance Co.

37 years.

and

other

desire information or markets,
inquiries, attention of DEPT. S,

Connecticut

Members New York Stock

Bell Teletype

Saxon holds

INCORPORATED

Established

Hartford

pre-war purchasing power, or will it be repudiated directly,
indirectly, in whole or in part?' Dr.31
;
or

Edward M. Bradley & Co.

New

Exchange

6 Central Row

the entire nation, viz.: Can, and will,'
Federal debt be redeemed in money of present

concern to

the gigantic post-war

Telephones: 5-0151
York, CAnal 6-1255

& CO.

carefully documented article published in the "Chronicle'*

a

question of primary

Inquiries Invited

will receive prompt attention.

PUTNAM

In

>

of May 13 bearing the above caption, Dr. Olin Glenn
Saxon, Professor
of Economics, Yale University, undertook to provide an answer to the

issues.

you

your

Thursday, May 20, 1943

■

1868

paid

Investment Bankers

HFD 564

Church

215

St.,

New

in

that the debt

what

he

the

nation's

to

"honest

terms

dollars," provided, of
Conn.

Haven,

be

in

can

that

course,

leaders

"have

the

-

political
Springfield Arsenal,
prime war contracts.

Connecticut Brevities
There

is

of activity

lack

a

nicipal issues, and, while it

that

oping in respect to those bonds issued in recent months, there

This

of

issue

sold

was

price slightly above
An

,

issue

advertising

par.

City

$200,000

Meriden Is due from

therefore decided to conduct

at

1944 to

suade

of

A

campaign
of the

some

dents to

1953

has also been sold recently. These

to

of

jobs.

advertisements

ap¬

appeared on about a .87%
basis, on the average, a price level
probably higher than any yet re¬

peared

lowed up by a door-to-door cam¬

corded for Connecticut.

of

During

the

past

the market for
dustrial

stocks

subtle change.
of publicity

late,

to

that

few

has

part of
such

has been given, of

machine

tool

orders

States is

for

up

from

war

-

of this country will devote their

now

i

energies

i

war

on

the manufacturers

the

to

home

every

sent

was

to

women

all

factory payrolls in the
days of the campaign.

As

t,;/

might be expected,; the

re¬

sult of such reasoning has

slight

decrease

of

the

as

are

such

understood

cipally
tool

been a
market prices

in

of

stocks

engaged

in

,

companies

to

be

the

prin¬

machine

workers

been

hired

companies,

material—even though such

ma¬

many

terial

be

may

from

the

quite

usual

of

It is

such companies—has strengthened
somewhat.

'

a

/:'//),

■

by

un¬

on

paign,

to

first

15

of

the

although

employ¬

establishments.

many

and

who

men

were

un¬

employed,

peacetime
tion

of

demand

hostilities

attention

more

vestors

in

at

the

have

from

recent

in¬

women,

with
issues of

emphasis on the
companies
as
American
Hardware,
Landers /' Frary
&
Clark, Stanley Works> and Torrington Company.

ies.

Because

in

local

the

city's

Operating

u

were

tract

taxed to the utmost, it was/

evident

that

it

would

be

workers

into

the

in

more
was

for

during the

revenues

year.

of

with

United

Aircraft

Corp.

the

manufacture of airplane
assemblies.
Royal also has sub¬
contracts with Colt's Patent
Fire

prac¬

It

area.

31, 1942, before

Royal Typewriter Co. is now in
full production on the
sub-con¬

hous-

tically impossible to bring

.

$5,016,411
compared with $3,438,335.

i ing and transportation facilities
f

Dec.

established

was

factor¬

or

Electric

sales

power

line

for

Light

April

Co.'s

increased,

various

Arms,

with Post-War
have

Pratt

&

Whitney,

of

ter

1943

provement

showing

im¬

some

the first quarter,
which revealed a loss.
The com¬
over

has recently received

pany

tract for

a

con¬

1,650,000 blankets in the

amount of

$12,500,000.

.,

-

•

.

The Connecticut Banking De¬
will issue its list of

legal investments

on

July 1 each

recent

given herewith and the

are

others

will

,

cation

of

lists

1, each

Additions

on

May

1

and

quent issues.

invention

of

Members New York Stock

&

Co.

Exchange

the

list

include:

Allen town,

Texas

Pacific

Orleans

Ry.

&

equipment

series J, l%s, to April
15, 1953. s
Public
Service
Co.
of
New

Hampshire first mortgage series
A, 3*/4s, Jan. 1, 1973.
• '




t-

of

courses

action

can

be

mankind

manufacture

by another

and

the

on

cost

method,

engineer to

which

to

their

skill, training and

of

amounts

them;

materials,

elec¬

tricity instead of gas, for instance,

the

sell it for

itician
and

is not

Spring Baling

DALLAS,
Bond

TEX.—The

Club

Dallas
that

announces

its

spring outing will be held on
Monday, May 31st, at the Lakewood Country Club. Features of
the

day

will

be

golf, swimming
$3.50 per per¬

and tennis.: Cost is
son

with golf;

Reservations

$2.00 without golf.
should

be

of

tions

,

duct

The pol¬

of the nicety

aware

accuracy

these

computa¬

required//for
wise
of
business, industry

agriculture,
tion

Hold

making flour.

of

and

con¬

and
distor¬

how

the

measuring
tool,
lose our country ac¬
tual/ man - hours
and
physical
goods. To destroy a large animal
it is only necessary to strike cer¬
money, may

Dallas Bond Club To

mailed

tain

brain

and

the

faculty

with

centers

animal

dies

bullet,

a

because

of: coordination

is

itself.,

would

Secretary of the Club, c/o Crummer
& Co., Inc., Kirby
Building,

destroy

mad."

to

H.

N.

Dallas. Because of the food
prob¬
lem,
reservations
will'
close

May 28th.

When

"Whom

they

the

first

normal

Gods

functions

of

of

John

the

outing are:
Rauscher, Pierce

Canavan,
Company; P. B. (Jack) Gar¬
rett, Garrett & Company; W. R.
&

by laws, and
put upon the use ol

Newsom, Jr., Sanders & Newsom;
and J. W.
Hickman, SchneiderBernet & Hickman.
/ /
/
,

as

the

like

By

employed

doing

money, in whole
do not alter the

away

often
New Britain Mach"

Russell

Mfg. Co.

Landers

Scoville

Mfg. Co.

<

ample,

form.

unstated

For

Coburn & Middlebrook
PEARL

Hartford Phone
7-3261

Boston

Hartford:

5-241.0

ST.,

and plant
rolling of

New York Phone

Instead of

REctor 2-8717

Phone-—Enterprise 1850

Bell

Teletype HFD 464

1

the

acquired

after
all

the

sorts

"

an

'

value

possessed by inT
dividuals, but in differences in
possession of profitable ideas
and
knowledge.
Inasmuch
as
ideas
are
definitely -intangible
property they sought to seize the
only tangible and visible form of
this property that they could see",
namely the printed patent paper.
By this time they have learned
that

hence the Kilgore Bill S

the Pattman
bills

be

*

HR

to

702 and

2100.

make

These

available

skilled

personnel, at the order of
Government, to carry on worl^
ostensibly, but not actually, for
the

war

emergencies, the intention
being apparently that they are to
-

be

used

for

the

upbuilding

of

strong political sections which

are

weak

in

human

in

sources;

benefit

of

abilities

other
the

or " re¬

words, 'for

the

.

"have-nots."

•//

It is not realized that the well-

being ^of the "have nots" would
more rapidly and more
surely
improved by the normal effect of
■the competitive system.
./ Those
favoring such seizures remind me
be

of

the

half-grown

whom I fed

sour

chickens

milk in

td

large
pan; in
their haste to get at it
they got into the pan and wasted
this valuable food by
splattering.
An? orderly
method
of
feeding
a

them

was necessary to avoid loss
provide for the general wel¬

and

fare of all.

Therefore, in regard
article, I should

whether

we

to

are

have

Mr.
that

support

can

billion-dollar, debt,
is
dependent upon

or

300-

a

debt,

any

whether

restored

to

we

us

a

sound

currency, ,v upon which all
present and future commitments
in business can be
and

technical

progress will
by law as guarany
Constitution or de¬

protected
by

the

by

attempts

shackle

was

to hamper
having special

those

and

the

will

to

im¬

lot.

STEELMAN

very

much

which

interested

is

STATES

A

pre-war

in

300

major con4
that

BILLION

a

THE

CAN

SUP¬

DOLLAR

dollar of present or

purchasing

power.

Anyone old enough to
ber the cost of

remem¬

things forty

years

knows very well that the dol¬
lar of today is a vastly different

ago

Log¬

and

to
say

Saxon's

DEBT with

of

measure

at

was

the

tury.

If

trace

to fight the

ordered

Bill

presume

PORT

equal amount, of goods in
also

nothing short of the seizure

of the persons possessing the
idea§
will accomplish their purposes—-

elusion

place.
having to produce only

must

only

takes

goods necessary

become

inequality prevailed
in differences in the

UNITED

machinery
war.

had

that

aware

do not agree with his

ex¬

*"'
war

"revolutionists"

Saxon's article in last week's
issue and shall keep it for future
reference as to the figures but I

con¬

HARTFORD, CONN.

but

but also
other property, that
money

Dr.

mo¬

the

and

the

It

1942, by
from the

Great Neck, L. I.

part, we
underlying mo¬

real

of

patents

seize

to

only

NORMAN

monetary profit in
war
industry is frowned upon
means
are
found to induce cor¬

trol

not

I

since

the

proposals

in¬

poration .managers to expand fa¬
cilities with Government money,

Torrington Co.

the

about 1933.

attention in

my

"haves"

with

the

wasteful

to

prove our common

in

or

upon

the gold standard
came

knowledge

individual, which
is
the/ possibility of gain.
Ex¬
change simply takes another and

Markets for Dealers in:

Conn. Lt. & Pr.

be

must

stead.

assault

stroyed

loses efficiency, be¬
clumsy barter method or

a

{

freedom of
use of money as a standard began
when we technically abandoned

and

whole

a

\

»

This

teed

for facilitating exchanges
of goods and services the
country
cause

living

inefficiency of motivation by

barter!

be

money

Directors

the

our

lowered because of

are

reasonably and
fairly based, and whether inven¬

make

money are inhibited
are

monetary prof/

as

Small wonder that

tion

the

restraints

its.

de¬

mally guiding and coordinating
the activity of a
nation, is de¬
stroyed, the nation is apt to be
rendered impotent and unable to
defend

check

politic to allow
standards

its

stroyed.
Similarly, when an im¬
portant economic principle, nor¬

McConnell,

with

66

STREET, NEW HAVEN, CONN.

6-7870

denom¬

common

tivation that they shall have

Teletype NH 194
Telephones: New Haven 6-0171
CAnal

Pa.

is with¬
out a guiding compass.
The in¬
dustrialist
asks,- for
instance,
should I replace one process of

with

Bell

York:

a

accomplished,

calls,

facilities they will ac¬
quire and which it is deemed im¬

the

inator. by which evaluation of al¬
ternate

additional

amount of money

McKenna Metals Company,

Latrobe,

*

induce the producers to accept
lieu of monetary profits the

not

PHILIP M. McKENNA

the

Dept. F.

Chas. W. Scranton

New

subse¬

other considerations entitle

year.

to

specialized

CHURCH

in

carried

be

the

Am. Hardware

Prospects

50 years

Send Inquiries to

209

Those

make an equation. Into this equa¬
banking /
tion go the hours of work of per¬
statute
recently
having 'been
sons at the varying rates of pay
amended to discontinue publi¬

hereafter,

/year

Aetna Life

in Connecticut Securities
and will be glad to send
you
information on any Connecticut
issues.

over

forth

set

be accommodated at this

can

time

the

regarding

conclusions

and

Bigelow Sanford Carpet Co. re¬ /- Money is a tool which mankind
ports earnings in the second quar¬ has found useful.
Without this

Connecticut Industrial Stocks
for

suggestion, the

comments

tivation of

We

its

with

by Dr. Saxon in his article.
that

reversing normal seasonal trend
and, at 42,125,000 kilowatts, pro¬
duced the second highest monthly
output on record.

campaign

contingencies,
amounting to $1,085,349, as com¬
pared with $604,752 for 1941.
A
contingency reserve of $500,000

ufacturing centers, has recently engaged in a highly success¬
ful campaign to recruit women
work

*

provisions

#

war

ended

year

of Connecticut's important man¬

for

a

*

The City of New Britain, one

;

the

received from 7,233
record' of considerable

Connecticut Railway & Lighting
has reported net income for the

■'

'

of

course

were

interest.

such

,.•:

the

inquiries

weeks,

some

or
were
employed in
industries, applied for,
received, factory jobs.

In

cessa¬

received
local

Hartford

unessential

large

a

$383,001,

interesting to note that, as
advertising cam¬

products

meet

or

with

result' of the

It might also be noted that the
Stocks of those companies whose

might

taxes, amounting to
62 cents a share, com¬

79 cents
for the first quarter of 1942.

Nov.

non-partici¬

found

women

ment in such

different

product

$300,781,
pared

the

added

kept

number

pating

be

may

In

views

Federal

New

has

war

which

bonds in the
methods employed irt working out
a sound solution to the post-war
debt problem.
war,

"Chronicle" has been favored with

efforts, 850

were

engaged in the production of

companies

of

Pa.; Auburn, N.' Y.; or a
larger weight of cast iron for
Chester,
Pa.;
Durham,
N.
C.; a smaller
weight of higher-priced
Fairmont, W. Va.;? Granite City,
steel; and the labor and/Skill re¬
J Efforts were continued until, / 111.; Hazleton,
Pa.; Johnstown, Pa.;
at the end of two months, ap¬
quired to make the changes. The
Kenosha,. Wise.; Uniontown, Pa.;
•farmer asks does it pay to grow
proximately 1,789 women were
University City, Mo., and Wyan¬
corn
on
this field and feed it to
hired by the 13 firms partici¬
dotte, Mich.
hogs, or should I grow wheat and
pating in the campaign.
No
Cincinnati
record

business, while the stocks of

those

in

every

culated to be sufficient to meet

result of these

a

in

of the millions

profit for the first quarter of
1943, after provision of $902,343

partment
letter

As

requirements.

dis¬

and

factory workers called
possible candidates.'/,

materials, using the equip¬

possible

the

Descriptive cir¬

printed

ment already on hand, and calI.

on

work

women

of

production

re¬

not accustomed to

were

to

was

the

employed woman, and to women
not employed in essential indus¬
try.
In
addition, a group of

production, and that

i

;

factory

occupation.

A

completely tooled

now

program

down

city.

been falling off, that the United
!

to

tributed

have

fol¬

press,

sales force composed
factory workers.

women

culars

opinions

and

local

a

women

sistance

a

A certain amount

reports

the

The advertising
designed to break

in¬

shown

in

paign by

weeks,

Connecticut

net

a

per¬

resi¬

women

accept factory

series

an

bonds

!

investors

Yale & Towne Mfg. Co. reported

are

some

Price trends still continue upward.

Coupon.
a

have been for

During recent weeks, the City of Waterbury sold $135,000 bonds,
May 1, 1957, with a 1.30% f

due

share.

vital stake

for

fewer such secondary offerings now than there
time.

31,
1942, of $190,383, equal to $1.90 a

courage to attempt it."
article, the author discussed

In his

the

income for the year ended Dec.
mu¬

secondary market is devel¬

a

other

Whitney Blake Co. reported net

at the moment in Connecticut

appears

and

or

the

value

you

what

take

the

trouble

steady increase

tional debt—and
i

from

it

beginning of the cen-i

(Continued

in

to

na¬

by national debt

on page

1875)

y

Volume

157

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

-

1863

^IIIIIIIIIIIIIIIIIIIIIIIIIIIBIIIIIIIIIIIIIllil^

\

bond

Co.

New York Title & Mortgage

income

NATIONAL
Securities Seizes

series

'

SERIES C-2

low-priced
bond series

Complete descriptive circular will be sent upon request.
New

preferred

stock

series

international

common

low-priced

England

series

series

stock series

Fund

Seligman, Lubetkin & Co.

FIRST MUTUAL TRUST FUND

Prospectus

Incorporated

on

Members New

v

Security Dealers Association

York

Prospectuses

:

New York

Broad Street

41

request

GENERAL
INVESTORS
TRUST

Real Estate Securities
|

In this column

estate

properties, the

selling.
-',v;

have often called attention to outstanding real
mortgage bond issues and the low value placed

J

Purchase

(Items

'

'

I

in

of New York real estate bonds is,

' "

'

"

great measure,

a

*

Z

the bonds were

'

=

DISTRIBUTORS:

|

one

j=

some

IncJ

what the future holds for. New York real estate. E
> 111 DEVONSHIRE STREET
is a matter of**
——
E '
BOSTON, MASS.
~
mm
hope and opinion. The correct New
York's
first
skyscraper
reached the dizzy height of ten
"guesser" will in all probability
make a great deal of money. ; We stories he sold his property and
FIC Banks Place Debs.
personally believe that New York moved from the shadow of the
;
^
will continue to add to its glory towering menace.An offering of $47,485,000 con¬
"The
records of the weather
predicated
/ That of

upon

course

mm

■

5imiimmiimmiimiimmmmiimp

and

be

wealth.

rebuilt

It

continue

will

So
also

future—it

the

for

much

interesting

look

to

ing was up ten stories there came
windstorm of gale proportions.

a

is

the' street—at

and

past. How many people recall the
buildings which preceded these

distance

from

modern buildings

crowded

with

whose mortgage

who

being traded in?
Take for instance the 36 story
are

office

that

have

in

cussed

the

calls
it?

now

building
we

this

first

it

ing

re¬

a

neighboring

skyscraper called the Tower

Building.

him

and

while the
tumbling

himself

came

his

how

see

and

build¬

janitors

who

buildings

their

deserted

stories

The building was 13
high.
According to the

came

Watchmen

et.

seekers

weathering the storm.
plumb line in his pock¬

was

He had

was

to

building—was

tarry

Gilbert

down.

safe

a

sensation

building

downtown

that preceded
New York's

building

Actually

Who

the

to

came

'fool'

at 50 Broadway
occassionally dis¬
column.

eighty miles an

The wind blew at

into the

hour

bonds

Sunday

on

morning in 1886 when the build¬

again, but it should still remain
the leading city in the world.
f-

that

bureau ; show

again and

rebuilt

and

to

of

had

posts
recognized
indignant in their

were

jpublication

outspoken criticisms of him. Gil¬

history is

bert

"Mid-Manhattan" its
interesting: "Fiftyseven
years ago when Bradford
Lee Gilbert, the architect, pro¬
posed the building, he had a fight
on

very

time

solid

he

It

all

eventually

was

and

now

modern

story

have

we

Charles R. Dunn,

office

in

at

Banks

by

par,

New York, fiscal

The offer¬

agent for the banks.

building

grouped under

are

this

Invesors

$10,000 investment in this fund
dating) value of $15,928

on

owned

income

seven

.

dividends
Bond

paid

Fund

offered

date

to

in

1938)

.

.

Manhattan
(shares first

by

amount

steel

were

first

The
built

on

However,

frame, the remainder being
btick.
Crowds gathered

of solid

daily
mad

on

Broadway to watch the

venture.

owned the
came

The

man

who

adjoining building be¬
stricken and when

panic

placed at approximately $800,000
while the City of New York in its
1943

assessment

at

perty

values

$4,150,000.

the

It

pro¬

Shares

178,416—not bad for a five-yearold, depression -» born, war - nur¬
tured,
New-Deal
anathematized
investment

company!

Stocks

.

.

.

that

reports

in

New
the

tures, $44,036,000 will be used to

like amount of matur¬

ing issues due June 1, 1943, and

M&P

Prospectus

on

Request

dustrial Average, 15 outperformed

off

pay

a

is

balance

the

for

capital

new

Stock,

A Class of Group Securities, Inc.

comparable to the Dow-Jones In¬

ceeds from the sale of the deben¬

it,

five

doing

times

the

Railroad

bentures

sets

one-half
doing

and

one

well

close of busiiess May ly 1943, the banks will
have a total of $291,985,000 de¬

a

At the

purposes.

outstanding.

-

v

■

as

twice

well.

as

and

seven

A

...

folder

new

on

Equipment Series
high standard for pictorial
and statistical presentation of the
industry, "An Arsenal in War; A

Johnson & Southwood
Leeds

and

Johnson

York

City,

as

Peace."

Great Industry in

Wall
Street, New York)—Rings the bell
(63

Co,

&

mortgage

is

success

certificates

Company.

Copies of this analysis may be
from Seligman, Lubetkin &

had

.

selectivity."

That

is

gone

cussion
folder

in

Products, Inc., offer
possibilities, according
to Reynolds & Co., 120 Broadway,
New York City, members of the
and Purolator

attractive

New

York

Stock

is

new

a

Common

Stock

We hasten to add that,

opinion, the folder is high¬
deserving of such an intro¬
It's

"36

called

out-Common

prosper,

must also

the growing

that while the

chart shows

steel-consuming in¬
dustries have advanced from 31%
of

securities

*

Stand¬

Wheaton

Bull,

value

asset

Fund

Ex¬

of Republic Investors

low

the

from

gained
1942 to

shares

common

63.5%

(40

York)—The

New

Place,

change

Co.

&

of

March 31,

a

age

substan¬

three

months

the first
year
by

24,7%

as

1943.
This is
fund, but despite a
tial
cash
position the
shares advanced during

of

this

of

lever¬

common

compared with a gain
for the Dow-Jones In¬

14.4%

dustrial Average.
A. W. Smith & Co.

shire

(Ill Devon¬

Boston)—M(r. Ray
Trustee of New England

Street,

Vance,

of

and

Fund

General

Investors

Stocks,"

and we Trust, writing in Economic Pre¬
won't try to describe it beyond view,
discusses
the
extent to
saying that it's a four-color job which inflation has been checked
which

by

commands

both

attention

'copy' and the

of the

reason

"lay-out."

In¬

Exchange.

introduce

to

Union

on

duction.

Machine & Welder Co.

de¬

our

ly

Situations of Interest

indefinitely

or

ferred," and adds, "You get out
of a portfolio whatever you put
into it."
The purpose of the dis¬

Fund "A."

request.

Federal

steel producers
prosper.", Charts show
backlog of demand in
steel-consuming industries.
An¬

sumers

and

overlooking

be

may

.

originally issued and-guaranteed
by New York Title & Mortgage

Bond

General

Shares,

Shares, and in particular the Steel
Shares.
Thesis is that the steels
are
undervalued.
"If steel con¬

*

Series C-2 Interesting

first

Railroad

a-

they all point to Union Preferred
Stock Fund.; .:
"In times like
these the essence of common stock

Ctfs.

YORK

63 WALL STREET—NEW

unique
folder,
"Maybe to 71%; ?the shares of-the-steel
Overlooking Something!" companies have advanced only
lists five points that the in¬ ■3.6%.

with

f • Seligman, Lubetkin

C-2

Incorporated

GROUP#

You're

vestor

NY Title and Mtge.

Abbett

Lord,

It

of June 11th.

C DISTRIBUTORS

other

Herbert V.

Southwood, both members of the
New York Stock Exchange, will
form Johnson & Southwood, with
offices at
49; Wall Street, New

K

at
current market
price of about 22 on the bonds,
a value on the entire mortgage is

the

Investing Company

$2,-

to

Insurance Stock, Railroad
and Public Utility Series all bet¬
tered the performance of gener¬
ally' accepted averages in their
particular fields. Of the 16 Series

Co. upon

pointed out that about $167,000 of
this gross income came' from a
lease to the War Department.

(liqui¬

31, 1943. Including dividends paid
during the period, the over-all
gain was to $23,526.
Total

first four months of 1943 its Bank

depreciation.
3% on the bond
issue of $3,692,000 would require
about
$111,000.
The ™ trustee

awarded to Dawson

mounted.

floors

of

$410,496
for 1943 and expenses of
estimate

A

dealt with.

company

March'e>

on

0.75%, due Dec.
1,
$25,555,000 0.85%, due
March 1, 1944.
Both issues are
dated June 1, 1943.
Of the pro¬
and

1943,

$287,345 leaving $123,151 before
corporate and franchise taxes and

Archer./

structure

A ray of

is in the

trustee's

' Operations began
immediately
and
unfavorable
comment gained in volume as the
and

shrunk to

hope lor the future

1

was

building

only $322,060 in 1942.

expressed his fears that it would
collapse.
Finally Gilbert spiked
all doubts by declaring the build¬
ing would be safest in a hundred
mile gale and that he would oc¬
cupy the top floors himself.
The
contract

the

of

come

the silk merchant who
the twenty-one foot plot

is the

Jan. 2, 1933, had a market

& Co., Inc., the -essence of the latest Union
getting, his plans officially ap¬
It stresses that "The old
41,Broad Street, New York City, Dealer.
gage bonds.
From a high of $1,proved.
Even then his idea was
have prepared an analysis of series concept of the business cycle is
so
sensational
that John Noble 037,000 of income in 1931, the in¬
either
Stearns,

company)

sponsor

advice, and the record of a particular fund's
"Successful Investment Management" is the title of

Fundamental

and

one

York

$21,930,000

of

name

sound investment

performance.'

ing consisted of two issues, viz.:

a

occupying the same location. The
only thing about this new build¬
ing that has fallen is the income
and the price of its first mort¬

was

succeeded

silenced

test

of the skyscraper

building

demolished
36

era

.

on."

The

/the weight of the building.
The
building laws at that time pro¬
vided that the weight of a build¬
ing must be supported entirely by

the

The

critics.
was

was

18,

May

Fed¬

the

plumb
edifice was
Not the slightest
revealed.
The

rock.

a

and

storm

proposal to 'stand a steel
structure on end' would support

before

as

vibration

convincing the city officials

the thickness of the walls.

to

made

Credit

Intermediate

was

tenth floor and lowered his

that his

"months

stairs

the

eral

line. The uncompleted

He bad a difficult

his hands.

climbed

the

debentures of

solidated

CORPORATION//

New York

Broadway,

Hugh W. Long & Co. (15 Exchange Place, Jersey City)—Out with
of those delightful little booklets combining a bit of philosophy,

|
/

A. W. SMITH & CO.,

120

—■■

Investment Trusts

request

on

we

the real estate by the depressed prices at which

■upon

Prospectus

SECURITIES & RESEARCH

^NATIONAL

Teletype NY 1-592

Telephone HAnover 2-2100

request

upon

in this

"The

fight
type

teresting basic reports upon these

Securities

National

His conclusions:
in the

country.

developments

new

against inflation are of a
which will delay but not

Research

prevent its growth. Certain basic

Corp. (120 Broadway, New York)

remedies have been used already

—National

Securities

but in

offered

the

companies may be had from Rey¬
nolds

&

Co. upon request.

would
therefor

seem

as

if

these

Series, first
1940, has
following growth record:

the

first

&

in

Fall

of

an

ineffective degree.

determination

future

policies.

wiser to expect a

No. Shares

mortgage bonds should have some

final

will

The

rest

on

At present, it is
considerable ul¬

Outstanding

Assets

April 30, 1941

223,512

$1,078,599

April 30. 1942____

speculative appeal.

569,892

2,599,555

1943-___i

909,428

5,013,805

Keystone Corporation (50 Con¬

"that empha¬

Street, Boston)—Again ap¬
plying the principle of simplicity
which it has used so effectively

April 30.

Active Markets

Sponsor believes
sis

income in four of the Series

on

BK

TRADING

MARKETS IN

N.Y.TitleJlge.

has

C2

been

an

building

Fl

new

up

fund."

plications

REAL ESTATE SECURITIES

all

Profit"

are

•discussions

other

.

.

.

"Investment

the titles to the main
in

the

last two

of Investment Timing.

SHASKAN & CO.
—MEMBERS—
New

York Stock Exchange

CO.

Since May

given a bullish
forecast for the intermediate trend
of stock

SIEGEL &

issues

6 this service has

TITLE CO. CERTIFICATES & MTGS.

■

New York Curb Exchange

Im¬

the Outlook for a
and "Investing for

of

Longer War"

Prudence Collaterals sa?»
and

.important factor in
this
comparatively

prices.
*

*

.

Tel:

Exchange Place, New York

DIgby 4-4950




Bell Teletype NY 1-953

39 Broadway, N.
Bell

System

Y.

DIgby 4-2370

Teletype

1-1942

Distributors
Wall

Street,

dealer

helps

Group,

Inc.

(63

New York)—Recent
are

aimed

at * the

j

gress

in the

pared

past, this sponsor has pre¬
neat, pocket-size card de¬

a

signed
vestor's

Simply

to

help

by

the

analyze

individual

checking off the

tions, the investor provides
cellent "case

appropriate
for him

in¬

requirements.

propriate answers to the
fully (and tactfully) stated

ap¬

care¬
ques¬

an ex¬

history" of his needs

and objectives.

%

"

40

timate inflation."

The selection of

classes

of

securities

is thus rendered

(Continued

on page

easy.

1877)

1864

THE COMMERCIAL

National Fire
Bank and
Insurance

National Union
Fire of

Pittsburgh

and

York

New

other

Slock

leading

1 WALL ST.
Telephone

Penna. Co. for Ins.

Exchange

120

York

BROADWAY,
Bell

L

4-2S2S

A

Lives etc.

3-6s

In

i

2039, Pfd. & Common

H. N. NASH & CO.

Teletype—NY

*1421

1-1248-49

Phila.

Gibbs. Manager Trading Department

Chestnut Street,

Phone

Locust

Philadelphia
New

1477

York

PH

This Week

a

2-2280

257

000,000 to $46,108,000,000,
462,000,000.
On the basis of such

these it

By E. A. VAN DEUSEN
The
of

War Loan

Second

$18,533,000,000,

It is reported that banking

goal.

netted total subscriptions

of the $13,000,000,000

excess

accounted for $5,048,000,000,

sources

drive

will

drive

until

permit

probably

the

postponement

September. 4 However,

of

the

next

major

figures

as

difficult to escape the

be made to the banks before
December

The

it will be recollected, re¬
sulted in subscriptions which to¬

earnings of well-managed
banks, despite a possible increase
in

the surtax

from

16%

from

moderate

should

show

even

substantial

to

21%,

talled

$12,937,000,000,

BANK STOCKS

39.2%

were

commercial

drives

000,000,
j

the

Bought

two

aggregated $31,470,which
commercial

Simons, Unburn & Go.

improvement

1942 results.

over

Milton
a

took

sources

$10,120,-

a

no

means

of condition

comparison
their

are

Meanwhile
tion reports
of

are

City,

invited.

Orders solicited.

Butler-Huff & Co.
OF

31

be

PRIVATE

Reserve

York

Government
-

.

Member

For

cates and Notes and U. S.

TELETYPE

L.

A.

279

York

Bonds)

the

is

$1,676,000,000.

For Chi¬
cago member banks, total Govern¬
ments were $3,203,000,000 on May
.12, compared with $2,511,000,000
on April 7, an increase of
$692,member

banks

in

cities,

excluding New York,
obligations in¬
April 7 and May
(latest date) from $27,051,000,Government

creased between

.5

000

to

$30,498,000,000,

an

expan¬

sion of

$3,447,000,000. The total of
$1,676,000,000
and
$3,447,000,000
is $5,123,000,000. This is extreme¬
ly close to the $5,048,000,000 which
NET

DEPOSIT

280

TOTALS

OP

NEW

Bank

Second

War Loan.

Since New York City's leading
banks
have
opened

commercial

"War

Loan"

with

whereby

Government

accounts

subscrip¬

tions to the Government's
sues

credited

are

of the

account

U.

to

the

the

extent

to

the

the

war

is¬

deposit

S.

Treasury, it
approximately
individual

which

subscribing by noting
weekly reports of the New
are

York

Clearing House Association.
instance, on April 8 total de¬
posits of all Clearing House banks
For

amounted

to $19,154,817,000, and
May 13, $20,744,403,000, repre¬
senting an expansion of $1,589,586,000, which closely approxi¬
on

mates

the

increase

of

$1,676,000,-

000 in Government bond

by

New

York

member banks.

dividual

holdings

Federal

Reserve

The record for in¬

banks

is

shown

in

the

YORK

CITY

CLEARING

HOUSE

BANKS

3,182.058,000

3,438,083,000

2,517,735,000

2,815,9G4,000

298.169,000

1,359,429,000

1,356,078,000
1,410,337,000
1,304,696,000
1.120,602,000
969,943,000

847 376,000

918,414,000

795,178,000

843,170,000

570,847,000

635,319,000

64,472,000

482,359,000

Trust

Increase

$235,795,000
256,025,000

861,579,000

Bankers

May 13, 1943
$4,227,826,000

521,553,000

39,194,000

City
Trust

Central

_________

Hanover

1,324,498,000

Manufacturers Trust

1,197,687,000

Chemical
First

t

National

Irving Trust
Bank

of

_____________________

Manhattan____„_________

New

York

Corn

Exchange

Bank

of

Trust„___________:.____

New

York

986,856,000

—3,351,000

I

85,839,000

107,009,000

47,992,000

318,730,000

36,492,000

224,715,000
189,237,000

252,108,000
224,380,000

35,143,000

27,393,000

161,663,000

189,731,000

Continental

28,068,000

89,849,000

102,412,000

Fifth Avenue

12,563,000

68,018,000

4,149,000

21,464,000

72,167,000
22,950,000

$19,154,817,000

$20,744,403,000

Guarantee

It

will

be

noted

bank

in

Trust,
posits.

shows

the

This

though, that

that only

one

Bankers
a
decline in de¬
does not
signify,
group,

subscriptions were
made to the war loan, for the de¬
cline was
entirely in time de¬
posits, while demand deposits in¬
no

creased

approximately $24,000,000.
Turning again to the Federal

Reserve Member Banks, it is in¬
teresting to note that since April
8 their expansion in Government
holdings has far outstripped their

Inc.;

The

York

1,486,000

City banks, for example,

ported

commercial

loans

of

re¬

$2,-

255,000,000 on April 8 and $2,203,000,000 on May 12, a decline
of only $52,000,000. On the other
hand, their total loans and in¬
vestments

panded

over

from

Stuart

Detmer

group

Milwaukee

Co.;
Co.; DempseyCo.; First of Michigan
Hirsch, Lilienthal & Co.;

Schwabacher

&

&

Corp.;
Sills,
Troxell & Minton, Inc.;
Stifel/Nicolaus & Co., Inc.; Kebbon, McCormick & Co.; Singer.
Deane & Scribner; Stix & Co. and
F. S. Yantis & Co., Inc. ^

The

issuance

and

of

sale

the

certificates, to be issued under the
Philadelphia Plan, is subject to
Interstate

Commerce

approval,.

Commission

If

the $10,760,000
equipment trust

amount

of

tificates

shall

all

in Simons, Linburn
&
Murray Simons, Richard
Ernest
Linburn, and Ernest A.
Linburn, member of the New
are

York

Stock

this

period

$16,196,000,000

ex¬

to

be

terial

by

General

Motors

Division:

new




declined

V

Motive
which

Division
are

and

Electroseven

of

to be constructed of all

material

motive Co.: 20

by American Loco¬
new

Mallet freight

prior to April 1, 1944, addi¬
tional equipment trust
certificates,
to

obtain funds equal
|

of this

new

from

30th

£150,939,354

ALFRED

SIR

DAVIDSON, K.B.E.,
General Manager

Office:

George Street, SYDNEY
Wales

is

Situation Interesting

New

The Collateral Trust 6s due 1962

tion

at

this

time, according to
contained

the oldeat

Electric

had upon
ton & Co.

in

banking

and

LONDON

47

Bruce

&

Agency

tbeee

Street,

C.

E.

"

arrangements

with

U.

the

Banks

S.

A.

NATIONAL BANK
of EGYPT
Office

7

No.

CAPITAL

FUND

.

LONDON

and

6

Cairo

Register

FULLY PAID
RESERVE

Industry

King

Cairo

£3,000,000

.

AGENCY

William

Street,

in

principal

Towns

EGYPT

Batten, Barton, Durstine

1

£3,000,000

.

Branches

Barton, President and Di¬
Inc.,

in

OFFICES:

throughout

Head

Osborn,

investors,

Berkeley Square, W. 1

Gas, may be
request from G. A. Sax-

Association Directors

to

Interested

Threadneedle

29

a

the

Barton & Brown Made

service

travellers

Commercial

rector of

la

efficient

traders

and

Commerce &

ovei

Australia,

countries.

the discussion of Consoli¬

as

With

and

70 Pine Street, New York
City.
Copies of the Guide, which con¬
tains quotations on public
utility
preferred and common stocks, as
dated

of

States

Zealand, Fiji, Papua and New Guinea,
London, it offers the most complete

Preferred Stock Guide for May is¬
sued by G. A. Saxton & Co.,
Inc.,

well

all

in

and

of Consolidated Electric & Gas Co.
is a particularly interesting situa¬

and

all

the

C.

E.

the

in

SUDAN

advertising

agency, and John A. Brown, Pres¬
ident and Chairman of the Execu¬
tive Committee of the
SoconyOil

Co., Inc.,

to

Commerce

the

sociation

Six

Board

of

of

and

New

were

elec¬

Directors

Industry As¬
York

at

NATIONAL BANK

of

of INDIA, LIMITED

the

Bankers

Directors

three-year

elected

were

terms

to

Head

tion

and

26, Bishopsgate,
London, E. C.

in

India,

I

'

•

Paid-Up
Reserve
The

conducts

banking and

Trusteeships

every

and

Frank

The

Financial

With Woodard-Eiwood

CALIF.—

E.

Kendrick

has

become

affiliated with Dean Witter &
45
of

Montgomery
the

cisco

New

Stock

Street,

York

and

Co.,

members

the

L.

John,

Minneapolis-St.

of

Thrall

member
Paul

of

Stock

the
Ex¬

change, and Walter P. Space have
become associated with WoodardEiwood &

San Fran¬

Exchanges and otb^r

MINN, —Fol¬

dissolution

Company, Henry D. Thrall,

Robert

Chronicle')

of

business

Thrall, John & Space

West

to

description

Executorships

also undertaken

Dean Witter
FRANCISCO,

£4,000,000
£2,000,000
£2,200,000

exchange

MINNEAPOLIS,

(Special

"

Capital
Fund_

Bank

lowing

SAN

1

Subscribed Capital

Kendrick With

to the cost

in

Uganda

Burma. Ceylon, Kenya
Colony and Aden and Zanzibar

succeed

and

Government

Colony

Office:

Branches

to

They are: Neal Dow
Becker, President of the Associa¬

the

to

Kenya

themselves.

equipment.

R. Hoe Co, Attractive

8,760,000

£23,710,000

largest bank In Australasia.

The Baltimore & Ohio Railroad

Co. proposes to sell from time to

'

.

Aggregate- Assets
Sept., 1941

type

time

6,150,000

*

>

branches

being dis¬ leading national exchanges.
Mr.
$5,610,- tributed by Aigeltinger & Co., 76 Kendrick recently was with Bank000,000 on April 8 to $5,607,000,- William
Street, New York, N. Y. america Company. In the past he
000 on May
5, or merely $3,000,- Copies of this interesting circular was active as an individual dealer
decline
in
commercial
loans, 000. Total loans and investments, may be had from
Aigeltinger & in San Francisco and was a part¬
which has been fractional.
Newt however, increased from
ner in Parrish, Kendrick & Co.
$41,646,- Co. upon request.
loans

Fund

Liability of Prop.

870

meeting held on May 18
1,000-horsepower diesel switching
in
the
Association's
Assembly
locomotives, each consisting of
Assembly Room in the Woolone
unit, eight of which are to
worth Building.
be constructed of all new material
by General Motors Corp.

£8,780,000

Reserve

Reserve

and

ma¬

Corp.

15

1817>

Capital

Consolidated Electric

the

new

(ESTABLISHED

Paid-Up

Head

Exchange.

ted

constructed of all

$18,472,000,000,
an
increase
of
Common stock of R. Hoe &
Co.,
$2,276,000,000. For the 101 cities, Inc., offers attractive
possibilities,
excluding New York, commer¬ according to a circular

cial

Ltd.

BANK OF

The Bank of New South

5,400-horsepower
diesel
freight
locomotives, each consisting of Vacuum
four
units of
1,350 horsepower,
to be

firm

Simons, Linburn & Co.,
Broad Street, New York City.

Co.

par
cer¬

issued, they
are to be secured by the follow¬
ing railroad equipment: three new

$1,589,586,000

Title

-

Son,

the

of

memorandum

& Co.,
E. H.
Sons, Inc.; Gregory &

&

under

President,
Intertype
Corporation;
William
C.
locomotives, 2-8-8-4 type, to be
Breed of Breed, Abbott & Mor¬
constructed of all new material
gan; Victor Emanuel, President,
by / the
Baldwin
Locomotive
Works, and 965 new 50-ton com¬ The Aviation Corporation; Wal¬
&
posite .hopper, cars to be con¬ ter Hoving, President, Lord
structed of all new material
by Taylor;. Fred I. Kent, a Director,
Bankers Trust Co. and Col. Allan
Bethlehem Steel Corp.
The esti¬
M.
mated cost of this new
Pope, President, The: First
equipment
Boston Corporation.
is not less than
$10,760,000.

282,238,000

________

:

Halsey,
Co., Inc. in the offering
Hallgarten & Co.; Otis
Inc.; A. C. Allyn and Co.;
Rollins

business

new

71,038,000

Bank,

NEW SOUTH WALES

of

133,746,000

Midland

Commercial

exceeding

&

are:

Co., members

108,364,000

National

Public
Marine

not

&

annual

April 8, 1943

National

of
with

Electro-Motive

following tabulation:

$3,992,031,000

Guaranty

issue

Associated

withdrawn

Partners

certificates, Se¬
ries M, due $175,000 on Nov. 1,
1943, and on each May 1 and No¬
vember 1 thereafter/ to and in¬
cluding May 1, 1953/such cer¬
tificates being a part of a pro¬
posed

reported

to have subscribed to the

banks

total

A.

the. commercial

amount

April 7, the last reporting date
preceding the "Drive."
The in¬

101

L.

banks of the country are

is possible to gauge

For

-

has

York
Stock Exchange.
remaining partners will con¬

name

trust

$10,760,000.

aggregated
$12,287,000,000 com¬
pared
with
$10,611,000,000
on

000,000.

-

Seattle

Banks

New

.of May 12, the total Gov¬
ernment obligations
held
(com¬
prising Treasury Bills,
Certifi¬

is

San Francisco

-

statements,

as

crease

Angeles

WIRES

Chicago

-

made

the weekly condi¬
from Washington on

interest.

CALIFORNIA

210 West 7th St., Los
New

issued, for

then

can

March

and the
change in
holdings calculated.

Federal

(P. C. T.)

to 5 p. m.

Deacon's

Australia and New Zealand

New

tinue

Equipments

Blauner

Simons

the

Halsey, Stuart & Co., Inc., head
a
group which offered, May 17,
at prices to yield from 0.875% to
3.00%,
according
to
maturity,
$3,500,000 Baltimore & Ohio RR.
equipment

of determin¬

this when their June 30 state¬

with

Service

Brokers.

&

m.

32.2%.

or

from

ments

a.

Booklet

and

Dealers

Inquiries

published
data
the
amount subscribed by individual
banks. Some light will be thrown
on

Bulletin
to

Trading daily 7

Compared

-

Associated Banks:

Williams

partner of the firm of Blau¬

The

25

B. & 0.

Quoted

-

Reviewed

-

Special

Sold

-

Analyzed

of

There is

ing

which
by

The

banks.

thus

000,000,
banking

of

subscribed

£98,263,226

Ghange Firm Name To

to

Offers $3,500,000

INSURANCE &

drive,

ASSETS

TOTAL

associ¬

\W. I

ating

Banking Group

"Victory Fund"

Burlington Gardens, W. /

Glyn Mills & Co.

offering

then..

Smithfield, E. C. I \t

Charing Cross, S. W. /

with the firm in the trading

ner,
may

Also

OFFICES:

64 New Bond Street,

the

department of the Chicago office,
South
LaSalle
Street,
is
Bernard
J.
Cunningham, previ¬
ously with Strauss Brothers.

as

intermediate

special

a

of this

success

Scotland

231

conclusion that the 1943 net oper¬

The Treasury Department states that the

27.2%.

or

drive in April

$5,533,000,000 in

or

is

$4,-

or

8 West

office, One Wall Street, un¬
direction of August A.
Schenck, formerly a partner in
der

ated

Bank Stocks

—

throughout

Bisbopsgate, E. C. 2

49

the opening of
trading department in their New
announce

Toerge & Schiffer.

Bank and Insurance Stocks

3

York

'

Phone

HAnover

Teletype

OFFICE—Edinburgh

LONDON

Chicago Office

Hicks & Price, members of the
New York and Chicago Stock Ex¬

changes,

NEW YORK CITY

HEAD

Branches

•

Stock' Exchange

Telephone: BArclay 7-3500

NEW YORK

on

Incorporated by Royal Charter 1727

Cunningham With Firm

Philadelphia National Bank
Phila. Transportation Co.

Laird, Bissell & Meeds
New

Girard Trust Co.

\

Unlisted Issues

exchanges

DIgby

j

Royal Bank of Scotland

Under August Schenck

Fidelity-Phila. Trust Co.

Inquiries invited in all

Members

Stocks

lentral-Penn National Bank \

Stocks

a
Members

Bank

Thursday, May 20, 1943

Hicks & Price Open
New York Trading Dept.

Philadelphia

•

Insurance

& FINANCIAL CHRONICLE

Co., Rand Tower, Min*

neapolis-St. Paul Exchange
ber

firm.

director

Co.;

of

Mr.

and Mr.

Mr.

Thrall

will

mem¬

be

Woodard-Eiwood

John,

a

&

Vice-President,

Space will be manager of

the trading department.

-

Volume 157

Number 4178

•

THE COMMERCIAL & FINANCIAL CHRONICLE

'

-

\ Speaking on "Effects of Dis¬
posal of Surplus Property," Sen¬
ator
Tydings, according to the

Inflation Would Leave Sen. Tydings Urges Health Best Asset
Agencies To Liquidate i
(Continued from page 1858)
modity prices, not" to speak - of

higher

wages.

have it

all

will

able

be

selves

They
seem
to
figured out that they
to

them¬

unburden

^of their merchandise and

securities

before

the

ultimate

smashup takes place; and as for
Wages, they will spiral forever,
There

is

something

thought

of

inflation

ries

emotions

i.

the

the

about
which

to

car¬

enthusiastic

Government
At

the

Chamber's publication "Washing-1
Review," said the government

Holdings

must at

offered

a

of the national

for action

2. It must set up

by

the government during the war as

preparation

for

the

-

terference to

post-war problems.

an

announce

.''■■■■

withdrawal

in

once

settling

tional
take

the

ernmental

$75,000,-

of

government

will

of

tion
5.

in¬

our

as

in

1937,

when

much

Chamber

should

influence
of

The President and the Con¬

of

Commerce

1937,

but

the

the

sound

lation to deal with

these various

subjects.

na¬

pur¬

better

than

buying fever

f.

DO YOU KNOW that without extra cost

was

1937

Earnings
■.V

'(*

Per

Divi¬

High

Share

dends

45 V2

$3.43

$2.60

70Va

4.39

3.75

180 Va

7.29

6.25

'v...i

Electric

Auto-Lite__

^General
'du

the

proceeds of

*

Motors

Pont

•"

P'

■

>:;

yPP P-P- ■..-i;'"':Vv

Life Insurance

your

_',:\V

'•

v"-

;

v^;::

•'

-v

v-

■:

Pk'j

...

'--V

't'

:

1941

!-■

"<

Earnings
Per

Electric

33%

$4.90
4.42

7.00

___

weighing the
of

possibility

tion

of

of
.

past

seem

effort

that the concentra¬
should

be

?

i"'\

"

-*

1

''

1

.

future

of

those forces which

ing inflationward.

•.!'fV. v •'
•.

sound

.

and

tend¬

are

is

comparable to being

boat

a

that

has

which

at

.

■r"

.

been

tor¬

.

be

can

.

if you

inflation

1

outlive

\

/.

•
t

:

\

afford

either

reaches

,

'

/

cash

expenses,

,

'

..

i.,J

j

,

(

t

,

,

growing

are

to

buy

the

on

come

commodities
basis

same

as

marks

letter?

:

•

•;> >•''

'

■

.

i'*

;

•

•V

court costs,
a

"*■

may

beneficiary,
1

>

be

your

»

or

if

f

nor

carry

you,

all of the proceeds?
!'t

»

pay a

4

t

-

/

«

t

M.-». %i

(

lifelong retirement income

(

s

to you?

your

last chance to review

your

life insurance,
It is

personal affairs and current tax laws.

your

family.

to your

Dependable service in solving the serious problems suggested
by the foregoing questions will be rendered gladly by

a

trained Massa¬

chusetts Mutual representative.

single

a

those

dividends

there

circum¬

neither

are

surplus available for

which

if

even

•*

-

_

i

ir"*^

,

v

-

nii^^

/•

they

could be paid would have no
pur¬

LIFE

C0MPANY

INSURANCE

chasing power?
'

It is well to engrave upon one's
•

mind

that

should

if

the

United

be unfortunate

chief

assit

of

enough to

practically all

individuals

regardless

would be

sufficient quantity of

good

a

health

hold down

to

some

enable

job

of

station

them

so as

to

to

earn

enough to live from day to day.




-

•

-

r

" |

VI

States

be blitzed by an all-out inflation

the

'
r

wrong person,

beneficiary outlives

your

Organized 1851

-

.

ST?RI1STGFIKLI), MASSACHUSETTS
?

r

Bertrand J.

Perry, President

'

and delays—

disaster and it

common

condition, who would want to buy
when

•

-

/•>

make certain that it will render all possible service to

to

*

,

'■

stances; and in the light of that

earnings

,£

ii

v'-f

have enough money to buy shoes
under

^

"'V.-•. i

•

•*

How many people would

to

f t

v

;
V

beneficiary should die in

1

-

light of

or

pound of

a

000,000

stocks

•»

lifelong

November, 1923, required 40,000,-

butter

'

and debts,
up,

when the German postal rates in

or

,

the right time—as each

to pay taxes

children

your

»

i

.

Who, for instance,

these

sell

'

money at

'

your

j,,

Today

the

gallon of gasoline if

a

of

should

/,

V!.

be arranged to

can

...

»

you

or

•

wife?

but dies before receiving

in the

standstill.

copper

.*

protected against eventual payment to the

apparent that business must

.could

^

be determined which death occurred first?

not

best chance

a

>

month while

your

point where prices mount to as¬
tronomical figures, it ought to be

to

.

time

be rescued.

When

beneficiary's lack of

your

protected against tragic results,

and

you

nothing
counts other than to try to keep
afloat long enough to reach shore
or

be

can

single sum?

idea for

rarily forgetting their differences,
•and to aim at preventing inflation
irom
engulfing them all.
The
on

i

cash for final

V."V

•

could

It would also

sensible

.

if

re¬

investors and the lowly consumer
to try to work together, tempo¬

pedoed,

i

(

government,
agriculture,
labor,
capital, industry, transportation,

situation

«

income to your

the

cooperation toward trying to

a

'

1

•

'

loss due to

as a

.

provide the right amount of

can

.

income every

the

to direct all of their attention and

be

.

experience?

need arises;

country's
greatly helped
135,000,000
people in this country, old enough
to give the matter thought, were
of

everyone

.

*

income, instead of

as

wriggle through it.

economy would be

move

«.«*,-

•

directed

■

if

be protected against

can

.

.

The

be increased when paid

can

investment

toward trying to prevent inflation
rather than endeavoring to figure
out how to

*

.

protected against needless impairment by taxation?
.

...

experiences and
what the future may hold in store,
it would

.

be

1

3.75

7.50

.

$3.00

48%

.

inflation and viewing it from the

angles

.

.can

dends

164%

Motors..

Pont

In

Share

Auto-Lite—

General
du

Divi¬

High

'

\

•

i

r

«"•

through

talk

were

stocks

have

committees prepare legis¬

proper

air, in¬
vestors were willing to pay prices
considerably
above
what
they
Were prepared to pay in 1941 for
the very same securities.
In 1941,
;as the below figures indicate, the
basic
factors
which
normally
chase

system

we

in the

was

di¬

and

Senator Tydings urged that the

period.

private business* the gress, through the medium of

be

complete

as to illustrate what
is meant, it might be well to refer
to the following data which shows

how

from

known it in this great nation.

have" to

unemployment during the transi¬

orderly

the

private enterprise,

na¬

to deal with

measures

will

measures

toward

speedy restoration of

contracts.

war

unlikely that the

government

some

up

heights... So

.about inflation

to

rected

agency set

4. It is not

our

minimum

a

should

its
primary objective is the complete

have another gov¬

000,000 of cancelled

another liqui¬

dating agency to sell, in

of; fashion and with

solution

/ 1

laws,

the people of the
cbuntry that

government will not longer need.

Tydings, (Dem., Md.),<
program

domain which

tional

at

comprehend all the fac¬
tors and plan to re-sell that part

meeting in New York, the
latter part of last month, Senator

varied

private business and that all gov¬

agency,

annual

of

government

with its
plans ready which will go to work

liquidating

a

the

'

We must

ernmental

an

It must set up

1.

luncheon session of the Chamber

worth

which

owns.

3.

early date do the fol¬
lowing things:
"
"

"Democracy and Jobs"

E.

now

ton

of Commerce of the United States

Millard

$60,000,000,000
materials

.

■

t

•

.

THE COMMERCIAL & FINANCIAL CHRONICLE

1866

We

offer, subject:

?

■■

\

:

•••

•

:

f; l,;!;/

r

New York Stock Exch.
Some Questionable Inferences Drawn
From Estimates Of National Income
Borrowings Higher

*

•

Dominion of Canada Guaranteed
Issued

.

Canadian National Railways

by

i

(Continued from first page)

ing

4%% Bonds due 1 February 1956

and

interest, yielding 3.15%

114, and

investment,

an

spent

money

Price

goods?

is it
consumers'

for

or

But quite apart from these dif¬

tinguishing net income from the

Wood, Gundy & Co.
14 Wall
Bell

those involved in dis¬

are

attempt

fortunate

illustrate:

We

the

most

If taxes

have

some

If

tax

the

in introducing this week into the House of Commons
the Mutual War Aid Bill, takes the lead once more in demonstrating
to the world a sane method of approach to the problems of LendCanada,

Canada does not accept Lend-Lease aid in any
her own account, the Dominion has already
rendered assistance of this kind to other United Nations on a con¬
siderable scale. Now it is desired »
Although

Lease.

for

whatsoever

form

place such aid on a more for¬
mal basis and the main points of
to

the bill

are

wishes

share what

supplies the

war

coun¬

is able to produce above

try

and

needs

own

its

want

not

does

to

a

shortage of Canadian dollars to
prevent any Allies from obtaining
such surpluses.
'7:
2.

will

Agreements

do

made

be

with those countries that

are

•'

example, the Dominionguaranteed
Canadian
National
Railways 5% bonds, which are
callable July 1, 1944, and which
currently yield 214% to call date,
appear to be definitely out of line
when compared with the follow¬
ing issues:
>
Yield

Issue—

City of Ottawa 4%%

7-1-1944

1.35%

avoid pil¬

Canada wishes to

3.

.

ing up huge war debts by selling
supplies to Allies for payment af¬
ter the war, or
and
uncertain

Where

tions.
tions

creating indefinite
post-war obliga¬
condi¬

and

terms

provided, these will be
specified at the time of
transfer.
■ 7.77-7
are

clearly

■

All

4.

with

the

sistance.
■

.

*

*

*

with

bonds

issues

minion

is

direct

equally

Do¬

illumi¬

nating:
Canadian

National

Issue— 7!V":

5%

;r:'

Railways

7:777-'v7v<

-;'.0 Yield

■■

10- 1 69/49_--_«__»__

4% %

9-

3.10%

3.00%

2- 1-56
Dominion

Issue—

,

2V2%
4%

of

Yield

1-15-48—;
10-

3%

1.95 %

,

1-60/50

2.60%

1-15-53

3 % i

2.60%

Canadian

1-15-58

continues
able

to

display

strength

at

there is usually
caused

ness

_____

2.75 %

_

Now that the U. S. bond drive

is

consider¬

time

a

when

offerings

and in view of the small

over

allotments of bonds to the

certain weak¬

a

by

market

bond

mercial

from

banks

sible that the

Canada in connection with Vic¬

will

tory

traction

activities.

Loan

occasion,

the

has been
bonds

on

sorbed

on

Canadian

this

supply

been

readily

ab¬

return of the

inventories will have to be
replenished,
with
the
conseness,

; quence that the market will ad-

in

a

still

marked

more

fashion.

Successive loan drives,
liquidation on the part of
Canadian holders for the pur¬

and

of realizing the U. S. dol¬
premium, have so depleted
the potential supply of bonds
pose

Canada

approaching
will

be

that

the

we

are

to

supply

mounting

U.
S.
demand
Canadian securities.
The

hitherto

bonds

from

now

point when it

difficult

steady
Canada

of

cess

possibility

a

S.

issues

de¬

1%%.

Baltimore Stock Exch.
BALTIMORE, MD.—Howard
Co.

the

of

has

Howard

Stock

to

be

The

of

Exchange

term.

The
held

the

for

election
June

on

of

&

serve

Baltimore
one-year

is

scheduled

7.

the

names

of

these

additional

nominees for the election:
Four

members

years

(Stein

to

of

the

Govern¬

serve

for three

1946)—C. Prevost Boyce
Bros.

&

Boyce), Frank
principally of the Dominion-guar¬ Fisher,
Chas.. W.
L.
Johnson,
anteed Canadian National
Rail¬ Philip L. Poe;
(Philip L. Poe &
ways bonds, which accounts to a
Co.). '
great degree for the existing wide
One member of the
Governing
disparity with the direct issues of Committee (to serve for two
the

Dominion.

Canadian

years

However, if the

market

were

more

closely studied by the larger com^.
mercial banks, this state of af¬
fairs would not be of
long dura¬
tion.
Insurance companies and
small banks throughout the coun¬

try

have

years

sight

over
a
long period of
profited from their fore¬
in
making
substantial

investment
dian

in

high-grade Cana¬

to

but their opera¬
have not been of sufficient
scope to iron out the many dis¬

issues.

This

Marburg

One member of the

Committee (to
to

serve

1944)—Charles

Governing

for

H.

one

year

Pinkerton

(Baker, Watts & Co.).
For

Trustee

of

the

Watts & Co.).
The members

ing

Gratuity

■

of the

goods

and

made which

in these debit fig¬
But if we
these estimated debit

appear

■

■

\

Nominat¬

Committee
are:
James
S.
Whedbee (Chairman), Henry
Lay




com¬

A.

of

tal

firms

ber

become

that
can¬

securities.

development, the

government would then find itself
to rely almost exclusively
monetization by the banks

finally

borrowing and perhaps
the issuance of irre¬

on

deemable

When
will

paper

The

total

from

40

50%

or

it

says

of the

tion

for the nation that does

what

reveal

the

certain

classes

not

consequences

levy falls

of

upon

people.

For

figures, Secretary Jones' estimate
$82,000,000,000 of consumers'

with

a

expenditures for 1942

may

borrowed

money

other lenders in the United

States,
excluding borrowings from other
of

tions of
to

national

(1)

exchanges,

securities

direct obliga¬
obligations guaranteed

or

on

principal

interest by the

or

United States

Government, $219,709,310; (2) on all other collateral,
$349,904,989;
reported
by
New
York
Stock
Exchange member
firms

the

of

as

close

1943,

of

business

aggregated $569,-

614,299.
total

The

peo¬

ple's incomes in taxes, it is deal¬
ing with a mathematical abstrac¬

of

banks, trust companies and

April 30,

money.

government

our

take

busi¬

March 31 aggregate of $386,894,993.
The following is the
Stock Exchange's announcement:

as

upon

of the close of

as

re¬

mem¬

the
ac¬

ened

a

as

April 30 totaled $569,614,299,
increase of $182,719,306 over

members

such

borrowed

ness

compel the banks to
than at present. If
the people should become fright¬
at

May 7 that the to¬

on

money

ported by Stock Exchange

an

peo¬

even more

will be when that

compiled
the

of

close

money

the

on

same

borrowed,
basis, as of

of

business March 31,
(1) on direct obliga¬
tions of or obligations guaranteed
as to principal or interest
by the
1943

was

United

States Government, $75,368,500; (2) on all other collateral,
$311,526,493; total $386,894,993.

also have accumulated obli¬

of

less than

ex¬

represented

as

debits alone

that

means

of the nation's

10%

penditures

by

"consumers'

were

ex¬

penditures."
I

other

to believe

is

that

the
of

daily experi¬
plus our
knowledge, would permit us
of

us,

that such

a

percentage

approximately accurate.
Or, if this less than 10% figure is
accurate, what inferences may we
properly draw from it?
even

The

important

very

arises

to what

as

example,

middle-aged

a

gations

that

quickly

without

when

sults

question

the relation¬

are

the

.

commitments.

his

Such

to

capital,

to borrow, until
Many a young sin¬
with a much smaller

If

1943.

debits

for

for

alone

1942

Montreal,

"While

the

season

ish

income and with few accumulated

obligations

absorb

can

much

a

heavier rate of taxation than

Federal

out of

facts

income

and

with

socially.

disaster

of

system

elders

Our

laws

in

have

this

tax

rates

his

respect

a

harmony with the economic
and

its

generally is

from two to three weeks late east
of the Great Lakes and in Brit¬

have been favorable

person

in

May 6, had the following to say:

gle

wealthier

expenditures

of

out

or

less

total

tax

Crop Report

of

first general report on the condi¬
tion
of
Canadian
crops,
issued

is

person

Bank

he collapses.

much

and

his

pay

much

1942

a

The

sud¬

is

upon

income

national

load

tax

him.- Our in¬
come
tax laws give inadequate
recognition to these unavoidable
compelled

Canadian

be dropped
unfortunate re¬

cannot

expenditures for 1942,
and between national income for

between
total

and

person

substantial taxable income

denly thrown

most

doubt

ences

Columbia, weather conditions
on

the whole

throughout the Prairie Provinces
and land operations there are be¬

coming general, with the seed bed
in

good

condition

moisture

to

and

sufficient

germination.

ensure

Precipitation to
date
in
these
provinces has been somewhat be¬
low

normal

needed

and

this

$884,869,000,000, and na¬
tional income was $119,800,000,000, is it true that for every $7
spent during a year a dollar - of

Capital
levies are, in fact, already in ef¬
fect, and apparently to a serious
extent, because of this situation.

net income is

income

ger.

rainfalls will be

month

in

dis¬

some

to coarse

the estimated debits and national

We need to give more careful at¬
tention to this problem and dan¬

crease.

*

produced?

In 1929,

respectively,

were,

1,200

and 81 billions of dollars—a ratio
of

nearly

$15 of debits for each

dollar of national income.
If these estimates for these two
are

should
fixed

roughly accurate,

even

clear

be

that

there

is

What

consequences.

need to do today

is to
feel our way along carefully; shed
quickly
the
currently
popular
concepts and jargon regarding the
"inflation gap"; watch the effects
of

we

tax burdens; avoid the im¬

our

pairment
of
production
the income out of

national

relationship between the
expenditures for a year

yields

and

national

taxes

which
which

should

may

be

the

income

for

the

And it seems reason¬
able to suppose that th'ere is even
less relationship between the na¬
same

year.

tional

the

for

income

expenditures

One

is

reason

one

the

a

next.

large

for

that

and

year

pro¬

be paid and bond®
bought;
avoid capital
levies; keep a healthy proportion
of people's incomes flowing into
government bonds; hold down as
well as we can the proportion of
bonds going to our banks, but not
assume

that

a

does rest upon

tization

of

the

be

portion

of

period.

expenditures

and

Furthermore, a corpora¬
receive and spend a mil¬

can

lion

dollars

come,

can

debt and that this
varies from period to

tion

and

have

while another

no

can

net

in¬

receive

$100,000, spend $75,000, and re¬
tain $25,000 (for a short period)
as

net

for

income.

In these cases,

as

individuals, expenditures and

net income may have

little

or

no

relationship.
to

all

the

If this is applied
people of this nation,

the generalization would seem to

be

equally true. 7 7

.

■.

*

Perhaps
the
most
important
thing in all this today- is the will¬
ingness of people to use these
crude
as

a

national

basis for

income

estimates

the

victims

and

of

debt

can

avoid

being
current, fet¬

the

ability to pay
40, 50, or 60% of our income in
taxes.
There

is, I

convinced, too
country about
taking up the "inflation gap" and
preventing a rise in prices at all
costs without understanding what
those costs may be. The first con¬
sideration
is maximum produc¬
talk

much

tion,
up

war

the

am

in

this

and civilian.
If taking
"inflation gap" causes

bankruptcies
ductive
then

and

aster may

ment

for

too

taxes,

will

sharply,

and

decline,

pro¬

and

bond

dis¬

be the result. The argu¬

A

dicates

preliminary

survey

reduction

a

in

in¬

wheat

while the acreage sown
grains, particularly bar¬
and flax, will show an in¬

acreage,

ley

Last
year's unthreshed
is being harvested, and while
yield is low, the grade is better
than was expected.
In the Prov¬
crop

ince

of

Quebec,

two

to

three

usual and

Spring

is

from

later

weeks

snow

than

is still in evidence

in

many regions.
Pastures and
meadows have wintered well gen¬

erally, and orchards

in

are

good

condition, apart from minor dam¬
age.
Prolonged cold weather re¬
duced

the run of maple sap and
the crop is estimated at 50 to 75%
of average, with the

quality fair

to

good.

to

promote

Spring

Warm rains

needed

are

growth.
In
work has been

Ontario,
delayed

considerably by adverse weather
conditions

and

in

most

sections

seeding operations are not yet un¬
der way.
The season is at least
two

weeks
later
than
normal.
Much of the land is very wet and

dry

warm,

needed.
inces

very

done

weather

In

the

little

the

on

is

badly

Maritime
work

land

as

Prov¬

has

been

yet.

Fruit

trees are reported to be free from

frost

damage

wintered

and

well.

pastures
In

lumbia, planting is in
growth is backward.
ter

have

British

Co¬

progress but

Some Win¬

damage to peach, apricot and

small fruit trees is reported from

the

Okanagan."" .7

.

"guns rather than but¬

ter" advances
comes

restricts

enterprise

incomes,

purchases

day that there is an "inflation
gap" of so much and that all or
part of this should be taken up
by Federal taxes.
My contention

Federal

tricts.

mone¬

ishes regarding our

Federal tax pro¬

a

considerable

prevented;

For instance, it is a com¬
jargon in certain circles to¬

gram.
mon

Fund (to serve for three
years)—
William
G.
Baker, Jr. (Baker,

we

will

buy

Reserve

a

doctrine that be¬

increasingly

dangerous

as

the period of the war lengthens.

be

doing with its tax proportions
for

not,

may

applicable

in

many

the

reasons,

United

be

States.

gap"

Civilian enterprise should expand

For

concept is untenable and will not

in every way possible to support

not, I think, reveal the pressures

withstand

the burdens of

lifted

is

(1)

that

the

"inflation

careful analysis for the
Duer, William V. Elder, Jr., Abel
Rosenburg (Mackubin, Legg &! reasons pointed out above, not to
function Co.) and George M, Scott.
mention others, and (2) that any

parities which exist between

parable

Grainger

(Alex Brown & Sons)'.
v

securities,

tions

1945)—F.

may

unavoidable obli¬

take

only

un¬

other

government

proportion

a

Nominating Committee has

ing Committee (to

consisted

to

R.

also submitted to the members of
the Exchange for their approval

for

supply

Taylor

been nominated

President

as

R.

of
are

their

meet

ures, we do not know.

years

Taylor Named To Head
Taylor

exchanges

do not

it

lar

from

it is
U.

Federal

Just how much money
during a year or how

personal services

no

course

| of these drives virtually close
\ their offices for ordinary busi¬

vance

institutions,

Canadian

dealers, who during the

<?

pos¬

signed for investment by banks
may not carry a coupon in ex¬

It is confidently expected that

; on the

quite

enhanced'at¬

an

these

as

future

that

rising market.

a

for

is

Canadian market

have

now

especially

reduced scale and

a

have

On

it

com¬

the

of

.

spent

were

The

$884,869,000,000. (A bet¬
could, perhaps, be

obtained from the Board of Gov¬

ships

Canada

.

that

assume

estimate

ernors

most

too heavy, people

or

of Federal

ter

3.25%

4Va%

should

to

heavy that

so

and

buy

would be

3.20 %

u-

4%%. 6-15-55

■

dealings will be directly
countries requiring as¬
7';-? 77';7'r'

-1

Railways

$663,652,000,-

not

forced

many

For

be

lead

pressures

these represent 75% of the total
for
the
nation
then
the
total

is

the larger commercial

to

we

formed by

able

to provide

so

If

System.)

Canada with City of Toronto 4%% 7-l-1944___ 1.50%
supplies or services in return, but Province of Ontario 4]/2% 9-1-1944 1.65%
inability to reciprocate will not
Similarly the following compar¬
disqualify a recipient of aid.
ison of other Canadian National
to

000.

could be well and profitably per¬
banks.

fallows:

as

Government

The

1.

This

week, month, or year in the
form of debits to deposit accounts.
For the year 1942, these debits
reported

and

announced

gations, bankruptcies will follow.
heavy

are

concept

are

cannot

fairly good figures on total ex¬
penditures in this nation during

By BRUCE WILLIAMS

a

consequences. ;> It

cumulated

here is perhaps
important of all.

Canadian Securities

such

bring on the very things that
are attempting to avoid.

cepts
To

tax

may

ple

System Teletype NY 1-920

Federal

on

and credit during
any period. The confusion' in con¬

Street, New York

a

program

flow of money

,

The New York Stock Exchange

build

to

estimate

;

ficulties

Incorporated

Thursday, May 20, 1943

war.

Finally, what England
ada

may

supposedly

or

or

Can¬

actually

one

off them

selves)
ments.

thing,

by

our

their

figures

(and put

on

lease-lend

do

our¬

ship¬

Volume 157

Number 4178

THE COMMERCIAL & FINANCIAL CHRONICLE

Industry is helping win the war...

IS

'

industry must help build a peacetime world
Today, all industries must produce

as never

1

before

—must

speed the output of food, tanks, planes,

guns,

ships and other instruments of war—must

conserve

vital

'a decisive

supplies—that

victory.

■<

;

win quickly

we may
.

Tomorrow, all industries must continue to pro¬

duce—beating swords into plowshares—to prevent
world-wide
nomic

unemployment leading to ultimate eco¬

collapse.

If the world is

to

cohesion among
transition

prosper

there must be the same

.the United Nations during the

period and thereafter

as now

exists dur¬

ing the world-wide conflict. Internal stability here
and in pther nations can be gained and maintained

production and by

only by sustained industrial

interdependence.
The

with the
materially and

people of this country, in common

people of other lands, will prosper

spiritually when this war is ended
but only
scope are

A
v

if plans world-wide in

formulated promptly for

JUSTr\\ AND DURABLE.;•• j;'>
PEACE•';• v.;»•'"
v.:

V

• ■

,

THE

INTERNATIONAL
Subsidiary of The International

New

V Awarded to ^

\ Huntington Works

NICKEL COMPANY, INC.
Nickel Company of Canada, Limited

York, N.Y.

SIMM!
X/XvX'.w

Mil

WAWAV.J




■

mm

THE COMMERCIAL & FINANCIAL CHRONICLE

1868

The War And American

ness

Foreign Investments

tries

•

had

been

Holders

were

for

default

in

of

of

bonds

countries have sustained
somewhat

been

less

enemy

loss of

a

than

$400,000,000.
However, this loss is wholly de¬
ductible by virtue of a ruling by
the

Internal

sioner

of

Revenue

the

Commis¬

"In

which

Treasury,

accordance

with

the

pro¬

visions of section 127(a) (2) of the
Internal Revenue Code, as added

many

countries

or partly by section 156 of the Revenue Act
default, a situation not neces¬ of 1942, the cost or other basis of
sarily connected with the conflict all German, Italian and Japanese
but merely the result of a rather Government Bonds and bonds is¬
unsatisfactory,
attitude
towards sued by municipalities, States and
; the
rights and privileges of cred- other subdivisions of those coun¬
:
itors. Within recent months many tries, is fully deductible in the
of
the
bonds of Axis-occupied year
1941 as of the respective

had been either wholly
in

-

:

advanced

have

nations

appre¬

ciably, but holders or prospective
investors should not conclude that

dates
and

with

war

Japan

United

Germany,
declared

was

States,

the

Italy

by

the

referred

nations
•

The four

investments.

have

above

to

himself

continued to meet the service

losses,

of

the

benefit

of

any excuse which a debtor nation

which will not contain the

might

committed

:

balances at their disposal.
Thus,
neither war nor occupation has

apparently impaired the excellent
credit standing which many of
these
the

have

countries

world's

enjoyed; in

financial

markets,
fiscal
performance has not been of the
while

countries whose past

the

his

A.

United

Outstdg.v,

Nations—■

Australia
China

amended."

Revenue

'

,'

,

Code,

:

•

Free

State

V-

resume

the

service

which,

in

some

been

default for

in

decade.

their debt

on

than

more

and Mexico

Brazil

the two notable exceptions.

respect

to

the

a

are

With

former, payments

commenced

were

has

instances*

as

of

April

1,

publicity in regard to
foreign
lending, it will take time before

in

Aranha

the

so-called

Modified

Plan, which is scheduled

.to expire March 31, 1944.
t

Brazil

<

Anew

plan is to be presented to bond¬
holders prior to October, 1943. If
is

genuinely
permit her creditors
least

portion

a

improvement,

desirous

to

to

at

of her

the

share

economic

schedule

new

of payment should be

equit¬

more

able than the present. Bonds
may
said
to
have discounted
to

be

some

degree a more satisfactory
adjustment. This is evident from
recorded

a

appreciation

of

349% since August, 1939.

;

As regards
ment

Mexico,

over

have

and

an arrange¬

amortization

fallen

of

the

nation's

the

is

of

a

status

of

this

30,788,240
h 2,175,040

26,885,400
3,538,325

1,363,285

71,583,300

*23,739,595

*2,289,700

84,759,635

*11,382,405

since

amounts to

1,774%.

*3,134,585

*33.35

5,574,485

1351,580

7.05

97,646,000s
'

^

•

96,142,040
••

-49,338,420
32,791,100

•

•

i

W
/

9,428,895

5,222,905

Argentina has continued
ice

her

Argentina

'201,753,400

.-4

Bolivia ^

145,765,020
59,500,0001
1,487,500
306,816,500 * 29,618,320

Failure

marked appreciation is due to
the
fact that even before the
war, the
nation's credit was held in

high
accurately re¬

esteem, which was
flected in the price of the nation's

Obligations.
The rise in Bolivian bonds
has
most pronounced,

been

although

remaining in complete default.
Whether the Republic will see its
way clear to resume
payments in
the light of the

apology by Pres¬

ident Roosevelt to the
Chief Ex¬
ecutive of Bolivia on the
grounds
that American loans
during the

'Coolidge era" had been granted
for the
purpose of "exploiting" the
Southern

geen.

nation,

remain

Parenthetically,

to

be

President




may

X' V-7

,|r

i&i,.-,

Chile

161,398,000;

Colombia

Dominican

Republic

.

1,565,365

33,372,510
1,804,170

16,2.92,000

11,576,485

-,10,572,000

1,218,660
6,058,360

-

•

6.884,500 •:

279,165.060

-

•v

86,480,500

-

31,390,300

20.55

1,448,940

120.75

%

62,895,600

31,931,895

1,774.00

2,286,650

19,505,280
36,034,730

844,775
13,777,630
15,875,795

241.70

58.65

.

'79.35

109,154,365
188.034,405

50,626,360

;

i

100.00

3.497,130

29,611,800
II,321,210

,

100.00

,100.00:.

50,626,360

:

100.00

,

2,287,250
* 100.00
29,611,800 hv 100.00
11,321,210 r; 100.00

RECAPITULATION
*. *

'•.

:

v

v,

-■ v,.

?,

-X;-

Amount:

•.

}.X' V '• '■ '■ "/vfOutstdg.
Nations

United
Neutral

$612,710,280

Nations

:value*ai Price'—1"'"^

Prior to War

,

-Appre^ation-—

Recent

it.was announced pn
"Eugene P. Thomas,
Foreign
Trade Council, Inc.
According, to
press
advices from Washington
the protective committee,
whjch
will
seek
claims
against
the
Axis, is headed by James A. Mof-;
fett, Chairman of the Board of

Amount

$522,104,015

$45,681,930

9,047,325

•

*3,636,695

•:

9.60%

273,134,180

Total (excl. Axis)_$2,420,166,960 $1,090,910,035

$1,360,294,800 $269,384,765

26.95

Total

Axis

the

Amer.

*

233,077,940

(incl.'"A^is)T$3)511,277,580 $i;485,442,545

Denotes

depreciation.

.

:v

*45,794.650

596,065,520

by

*

announcement

*28.60
*16.35

Co., Ltd*

said, that the

,

committee represents from 90 to
95% of the American industry en¬

gaged in foreign
the

to

war.

Mr.

outlined

the

the

program

-

To

-'Wv-vT''

7

which
mittee will follow: •""*
1,

prior

commerce

-:

Thomas

lowing

84.55

*100.00

Latin

394,798,020

2

the California Texas Oil
The

In %

*394,532,510

'

Axis-Occup'd Nations

zones,

May

:

$476,422,085

12,897,500

.

destroyed jor
the global

,

President of the National

33,735,630

2,287,250

42,042,350

"

been

war

3,497;130

V .16,634,500

Rumania

has

lobted by the Axis in

2,385,775

188,134,405
.

:

000,000

14.90
56.55

'

109,154,365

315,418,440
.121-,521,400

*

Bulgaria

70.50

238,805

Satellites—

.U*.

Hungary

whose property valued at
$5,000,-

-6,058,360

20,168,935

-501,208,030

Austria

dustry and its 2,000,000 investors

15.05

5,727.650

,

51,357,900
and

614.85

349.05

2,667,600

1,803,735

com¬

behalf of American in¬

33,944,200

13,962,255

.

on

9,222,500

I,441,875

2,3i8-;soo::
.

foreign

a

22,601,420
14,105,945

95,792,370

—

of

104,717,270

;>

37,446,340

62,397,950

—

Establishment

15.05

22,589,015

10,710,000
134,335,590

14,844,920
19,266,565

-1_
107,413,500
.sir'v.V 6,562,000
££.'• 103,247,300

Rica

Property Seizures
mittee

168,354,035

394,532,510

particular

type

of

investment, but rather of a propa¬
ganda unintentionally spread by
legislators who were not suffi¬
ciently
interested
carefully
to
study what- they were, willing to
cdndemn.
/.

•

•

Since' it is easier to tear down

than

to build up, the process of
re-converting the American in¬
vesting public will at best be

determine

the

fol¬
com¬

^ 'l-s
principles

'&!r

which should govern calculations
of the amounts of loss, the formal¬
ities required for establishment of

*$125,147,745

*8.45

proof of loss, and the

manner

which

.

the

campaign

>

'

The CHRONICLE invites the comments of its readers
the views expressed by Dr. Winkler, or on

-

any

of the subject

.

In
of

order

the

to

assure

educational

the

should

FHfl fldminislrator Declares Privale Capita!
Invested In Housing Will Be Protected
Outlines Changes In

will

-

campaign,

it

in

Mortgage Financing Brought

About By The War

speaking

before

the

1943

business

so-called gold and the war
clause.
Neither of them would be of
any

turned

the FHA

seems that* in the next era
international lending, public

"No

stone
in

has

been

left

meeting

of

the

in

Washington, either by
the National Housing

Administrator, to protect the in¬

offering of foreign issues should terest
be endowed

termed

the

That

to

is

made
in

in

the

with what might

Commodity

say,

United

payment

Clause.
will be

States dollars

currency

of

the

be

cf

debtor

country at a rate not lower than
obtained at the time of issue. The
holder should have the
right to
demand
and
receive
payment
either in dollars or in the cur¬
rency of the debtor in the latter's

The debtor will agree to

country.
permit

the

of private capital. We some¬
times have been
accused—along

with

private builders and private
capital — of being 'business-asusual'

ther

boys.

from

believe

Nothing

the

that

truth.
in

can

We

many

be fur¬

simply

instances

the full face value.

Default
curred

not

make."

have

of

the

blackest

in

3. To

nent

gather and collate perti¬
information
concerning
and

regulations in
territor¬

the various countries and
ies.

"

4.

To

maintain

close

Contact

with the proper authorities to ob¬
tain speedy protection of
prop¬

erty, rights

and

interest

in.-ter¬

occupied or re-occupied
by the Allied nations.
Mr. Moffett indicated the

objec¬

early

and

developed. It has stimulated
activity in the building and allied
industries; and it has offered pro¬

avoid

the

following the last war in estab¬
lishing proof of claims, and to

fitable

prevent

was

and

sound

investments to

lending institutions;

long-term mortgage
90% of appraised
The property must meet at

from

value.

The system

one

80

to

the minimum of established

"The

National
is

The

problem

tensive

demonstrate

the

his

ability to
obligation he

assumes.

to

"If there
a

system

much

after

the

number

vastly more ex¬
complicated
than

last

war,
due
countries
in

of

was

necessity for such
years

ago,

how

and

the

enormity
and

wrought by the Axis

to

the

enemy

of

fh'e

devastation
powers.

"Our committee will function
a

nine

take

is

and

hands

liquidate

Trade

to

a repetition of inordinate
delay in the settlement of claims.

dislocation

must

follows:

prompt measures to
difficulties that arose

and

of design, construction,
neighborhood. The borrower

as

Foreign

determined

standards

Discussing peace-time building,
more
necessary it will be
the past often oc¬ Mr. Ferguson continued:
after the war when home conbecause of unwilling¬
"Back in the days of the last struction again becomes one of

in

of

care

Council

least

would

taken

xx!,-v'v sy., yyyy/'-by'

;

Out of that tragic experience the
FHA insured mortgage program

operations, whjle admittedly more
risky than our former peace-time

otherwise

adequately

the peace treaties or other settle¬
ments.

tives of his committee

provides

ment

of American property owners
may
be

dustry, particularly in the financ¬
ing
of residential construction.

for

including the payment of
Federal, State and city taxes at

one

v.?*'

?

United
States
Government,
and, when appropriate, to other
governments, so that the interests

in the construction in¬

was

done; tha tthey can do it effi¬
ciently and speedily; that such

vate capital and certainly save the
large expenditures the Govern¬

soever,

depression
spots

be

choose to desig¬
nate without
any restriction what¬

/

ritories

private capital and private enter¬
prise can do the job that needs to

employment of such building program, still are reason¬
by the creditor or ably sound investments for pri¬

native currency
anyone he may

be

2.. To present these principles to

National

un-<S>-

or

made.

treaties, laws

Weighing the prospects for private enterprise in war and post¬
housing, Abner H. Ferguson, Federal Housing Administrator,

war

compensation

the

,

___________________

success

will be
necessary to offer invest¬
ors certain

on

related phases

under discussion.—Editor.

prove successful.

serv¬

engagements
faithfully.
of bonds to show more

well

.

of
to

conditions

property-holders' protective

Latin American Countries-^-

aid.^ It

1

' ti

For Victims of Axis

*11.85

6,294,310

Norway
Poland
Yugoslavia

external
loans
-on
a
reassuring features as Association of Mutual Savings Banks held in New York City, out¬
drastically reduced com¬ was the case during an earlier lined the extensive changes in mortgage financing brought about
by
pared with originally stipulated period when they were given the the war. In his remarks Mr.
Ferguson said:
"

The advance in quotations
the outbreak
of the war

that

Protective Committee

53.90

basis

rates.

V:

consumer

completely different from those
anticipated."

*76.30

1,091,110.620

so

must

manufac¬

*17.35

2,156,400

1,399,761,160

not

em¬

We

present war-time
into peace-time

is

now

,

*12.60

Nations

in

sufficient

high level.

a

enough to permit of ad¬
justment at that time. The danger
of setting up a definite pattern

*25.00

*3,902,840

& Satellite Nat.

deterioration

the

flexible

6&15

95\322,895

result

which

in

*15.80

all, the dis¬
foreign loans

After

into

much

has

terest

public.

slow.M; But

recently been effected
calling for the resumption of in¬

t

ing

repute

*126,310

12.684,020
278,872,590
322,931,340

•1940, at greatly reduced rates" in private capital will be able suc¬
accordance
with
provisions
set cessfully to approach the invest¬
forth

*29.25

*5,216,790

Costa

adverse

be

mand

2,780.00

*3,510,385

654,200

.Italy

unwarranted

turn

j 135.35

;6,331,485

Cuba

result of

1,276,185

6,495,625

27,456,800

securities in the post-war era.
When the present conflict

a

provide

at

tures

7.95

4,175,085

Brazil

sijbdlity and' will participate in re¬
building what has been destroyed
by years of War and disaster.. As

23,865,000

2,943,900
32,673,590

.•

•

to

come

In %

26,942,500

relatively satisfactory show¬
ing exhibited by foreign bonds
outstanding in the American mar-~
ket augurs well for this type of

indulged in after the first World
War. and will assume full respond

order

7.40%

27,456,800

'

to

Amount

Greece

<

countries

also

ployment to keep the national in¬

the

France

—

of these

deprive

$14,045,120

8.371,400
675,925

802,235

<31,657,400
9,313,300
.125,381,500
3,271,000

•

some

will

v

*

Czechoslovakia

best, easily succumbed.
over
and, the democracies will El Salvador"
Haiti
The most satisfactory account have
scored
a
decisive
victory Mexico
has been given by the Latin- over Hitlerism and Fascism in
Panama
: American group, even though the
Z.-,
general, the victors will be con¬ Peru
•war
and the resultant improve¬ fronted with a most gigantic task: Uruguay
E.
Axis Countries
ment
in the economy of prac- world reconstruction. The United
i
tically all the nations South of States will remember the unfor¬ Germany'
Japan
the Rio Grande have not yet de¬ tunate consequences of isolation
cided

Recent

11,881,785

711,500

Axis-Occupied Countries—

•'D.

is

post-war period

our own

be

12,186,000

.Belgium

as

The

errors

century

a

Neutrals-

•

C.

v

.

Prior to War

$232,613,000 $192,689,440 $206,734,560
294,000,000
282,535,000
306,400,000
11,097,280
943,270
2,219,455
75,000,000
>
254,375
6,750,000

Canada

Irish

filed, in accordance with
of section 322(b)

suffered,

nevertheless

,

Finland

provisions

of the Internal

will

as

,

for

been
the
devastation " here
that other parts of the world have

goods for which the pent-up de¬
grows greater day by day.
We must avoid a boom just as
carefully as we must guard against
ever, such eventuality is not an¬ services.
In this way, and in this a
collapse, which will call for a
ticipated.
way alone J will it be possible to
very fine balance indeed.
Objections
will
be
raised bring back normality and
pros¬
"While it is important to think
against
this
proposal
on
the perity and lasting peace.
now "of the post-war
period any
Amount'
Value at Priceplans that we do make should .be
-Appreciation-

the

return

not

borrower of the principal means
of repayment, namely, goods and

1941

which

quarter of

legislation

With Hitler
he stands for
confidently
expected to be eliminated for¬
all

in all probability will continue to
do so in the future out of dollar

in

a

ing his obligations.

Estonia

was

event

and

lector of Internal Revenue for the
district

the

wishes to go on record
repudiat¬

despite occupation by
the Hitler hordes. They may and

debt

the

ago.
That is to say, loans and
Credits should be extended to na¬
tions in need of them, but the
lenders- should
not
enact
such

Denmark

their

.

offer in

non-payment.
It will-be the
only safe protection against de¬
fault, unless, of course, the debtor

B.

claim for refund 6n Form

a

to

care

843 should be filed with the Col¬

on

the
dominant; forces in the rtaY': tion's^^ economyWhile • there has

category of reconstruction.
And
the problems involved are
stag¬
tries to sell their products at a
omy and all its attendant evils. gering to the
imagination but let
profit.
//V-.: ■ „•'.:
'•. !•;.• 5 This could
be obviated only by us
hope not insurmountable. We
The proposed introduction of the
adoption of measures at the shall need to maintain a large part
the clause referred to will remove
forthcoming peace conference of our present industrial tempo in

early

servative

•

*

•"

na¬

was

Russia

being

losses

United Nations victory considered to be in the nature of
would convert these obligations casualty losses.
from speculative issues to con¬
"In order for a taxpayer to avail
an

This

of

reads in part as follows:

•

The remaining

also

suspended.

meeting the
service on their debts prior to the
war:
Belgium, Denmark, France
and Norway. Czechoslovakia had
suspended payments immediately
after the occupation of the coun¬
try and the establishment of a
protectorate, while a loan of the
Czechoslovak
City
of
Carlsbad
years.

have

payments

grounds that accumulation of

cpmmitmentsj; tive :curjencyt?might dead?'?■ Y:
inability to secure F (i) to a depreciation in

especially true value of the respective exchange;
after the enactment of the rigidly and
-v.
•YY'vV
'
protective
Hawley-Smoot tariff ; (2) to*an increase in the price
measure, which made it increas¬ ofdomestic products;
*
;;Y' Y
ingly difficult for debtor coun¬ in v short, to an inflationary econ¬

apparently overlooked
a
loan made by America to Bo¬
livia during the Wiison era, on

outstand¬

dollar bonds

with

ing, only four

:

dollars.

Roosevelt

which

the debtor, to

contractual/.^

but because of

(Continued from first page)
So far, the nation has
met promptly and faithfully her
contractual engagements.
Of the nine Axis-occupied coun¬

England.

the part of

on

meet.

,Thursday, May 20,-1943

policy-forming

the instrument

group

and 1

as

as

through which the

individual may seek the benefit?
of

unifed

of
our

action in representations

principles
own

to

departments

of

and other governments.''

■

'

-X

r:;vA

■

Volume

Are We

Giving Away Our Gofd?

thi/"warehouse gold."

Suppose, for
It powerful metal?
instance, when the war ends we
eral in the New Deal constella¬ have
substantially
all
of
the
tion of financial prestidigitators to world's monetary gold, and sup¬
offer a plan.
It .was the ne plus pose, further, that we have the
Ultra of
similibity.
This New urgently needed producing power.
Dealer
proposed that
we
dis¬ May we not then logically say to
tribute the world's gold by simply the world: "We are sick of this
loading
up
this
troublesome perennial
bloodshed,
brought
"dross" and shipping it back.
He about by cracked-brained,
am¬
didn't say whether we were to bitious
European
rulers,
who
pay a tariff to the receiving coun¬ manage to spatter us with blood
remained

tries

for

or

not.

to

clear

this

But

since

it

cameralistic

was

genius

that

the givers were the more
blessed, it seems a mere cavil for
us
to object to paying
a tariff

under the

and brains of tens of thousands of

dying

bell—like

who

not

But

sweet

been.

In

been.
Or

fact,

it

It may be a

it

probably has
military secret.

be a
until the

secret

may

guarded
can

Maybe it has

sure.

rid

There

New

be

to

Dealers

of this

us

"poison" gold.
fact, be trickery

in

may,

going on in the world—and very
clever trickery at that.
To examine the problem some¬
what
critically:
How
does
it

that'

come

How

we

does

it

losing

are

that

come

gold?

the

im¬

think
as

the

of

there

is

meat

no

so

the hot,

bleeding heart
we
not, in
them some
new

enemy,

effect,

are

giving

murder tools for future use?

We

are

gold, but

now

not

are

we

accelerated rate.
ate

It

plan.

is

only

losing

$3^000,000,000 under ear-mark in
this country, plus ALL the yellow
that' is produced in other

metal

countries.
There

is

questions,

one

and

answer

to

those

it is quite simple
Here it is:
When

certain.

announcement

Dealers

that

"the

in

have had

we

an

opportunity

told us a story the other day of how he
climbed out of the small salary class into what is now a very sub¬
stantial income. His method was so simple that we are certain most
securities men have often thought about such a plan and possibly
years

many

being

done—in
This

$25,000,000 to $30,000,000 a year on newspaper ad¬
vertising of United States war
bonds to "provide for more effec¬
tive use of idle currency in aid of
the stabilization program and

writer says

it is being done "be¬
screen" because not long

had not noticed that we have

it be

a

good plan to lock the barn—

and do it

now

while the horse is

safe?
If

Washington
advices had the following to say

it all down to about 20 hours

in the matter:

extent in their

some

a

own

week that he had available for talk¬

,

'Associated

ing directly to his prospects and customers.

This figure may seem
small, but in our opinion we believe that the average salesman would
just about agree that it would not be far off the mark.
When this salesman discovered how pressed for actual selling
time he really was he became aware of one important fact which
opened his eyes to the reason for his limited earning power.
HE
SEE

PEOPLE

ENOUGH

DURING

;

v

with "recognized
publishers' associations"
setting up the advertising cam¬
paign.
existing
in

,

in actual

THAT

TYPE

continue to give away our

gold, do we not lose
in
shaping peace?

card

our ace

What

more

WOULD

NOT

WASTE

this 20-hour week idea became

so

HIS

TIME.

He

told

us

that

strongly entrenched in his mind

that

it became an incentive for him to eliminate many worthless
calls, and eventually to substitute calls upon more important accounts
instead of the smaller buyers that he had formerly considered the
He

also

that

as

brought out another very important point which illus¬
change in environment can do for anyone. He claimed

a

he went

along, eliminating smaller accounts and gradually
the larger clientele, his own thinking became broader

up

and his

conception of the SIZE OF AN ORDER INCREASED AUTO¬
MATICALLY.
Where he had formerly thought in terms of odd lots
and a bond or two, he unconsciously developed a mental state where
the size of the order no longer presented a selling hazard which had
oftentimes in the past caused him to stumble when it came time to
close the sale.

a

"The
program
would be de¬
signed,
the
bill
stipulates,
to
"completely safeguard" the free¬
dom of the press; "avoid interfer¬
ence in any manner with the in¬
dependence of any newspaper or
its responsibility
to serving its
readers," and "protect editors and
publishers in their right to publish
criticism of the policies or con¬
duct"
of
the
Secretary of the
Treasury or any public official.

"The

■,

th^y could get.

least

are

times

mean

on

their

also

-

ministrator

it

appears

here—or at

this

Government-financed

This is under

no

circumstances to be construed

of

Not

a

an

offer to buy, any

looks that

as an

offering of this Stock for sale,

or as an

offer to buy,

or as a

solicitation

New Issue

395,178 Shares

Well, it
It is certain that

waK

the rest of the world is taking our
gold, and the modus operandi is
just too simple for words.
It
wprks like this:
Our exports are
almost
entirely
of
a
military
nature.
We "lend" these exports;
that is, we know we are not lend¬
ing them; we are giving them,
but we pretend we are "lending."
We pay for imports.
No matter

West Indies Sugar Corporation
Common Stock
($1 Par Value)

whether these
used

imports are to be
military
use
or
for
use, we pay for them.
It

for

civilian

happens that—excluding military
exports—we
are
buying
more
than we are selling.
The balance
is being settled in gold.
Settled
for in that old, worthless gold
that

the

have

we

possess!
ample,

misfortune

Price $15 Per Share

to

for ex¬
we did
NOT have gold
with which to meet our obliga¬
But

suppose,

Wouldn't that be

tions.

an

Copies of the Prospectus

awk¬

ward situation—for us?
rest, of

such

perior

the

world

contempt

feel

for

what

may

be obtained from only such of the undersigned as may

this Stock in compliance with the

Does the

legally offer

securities laws of the respective States.

su¬

Will

Shakespeare termed "this yellow
slave"

goods

that
on

friends, or
the

Do

our

US

send

Harriman Ripley & Co.

ardent

comrades in

if

Claus

most

our

Incorporated

arms

not stand alone as

we

gilded,

Santa

would

Would

ment?

do it?

it

"a lend-lease" arrange¬

of

somewhat
the

goofy,

Blyth & Co., Inc.

universe—a

Lee Higginson Corporation

Lazard Freres & Co.

soft of world Grand Almoner?

Leaving to

one

side the ques¬

tion of whether we

besf

for

gold away, may we not logically
inquire whether we are even pro¬
moting the real interest' of the

■jyorld

by

G. H. Walker & Co.

doing the
giving this

are

ourselves in

distributing




this

all-

May 18, 1943.

proposed
advertising

When it is easier to do business you can paper Publishers Association as
independent. Taking advantage of better was ndted in our issue of May 6,
MORE CALLS but BETTER ONES.
I page 1688).

of such Stock. The offer is made only by means of the Prospectus.

entire burden ourselves?

Man¬

program was voiced at the recent
convention of the American News¬

New

•

War

after the war's end.

Opposition ' to

are

the

tive from June 30 until six months

•

that better times

and

Commission for advertis¬
ing their respective agencies.
The legislation would be effec¬

ARE

giving away our
surplus "dross," after all.
This
is a sh, sh business.
We must
help our "allies" to the limit.
Nobody should complain.
Even
so, is the obligation all one way?
In our scheme of putting nice
candy-stripes around this battered
globe are we never to expect any
help from others but carry the

au¬

power

way.
afford to b6 a little more
not only

would

the Treas¬
ury to allot parts of the fund to
the Secretary of Agriculture, War
Food
Administrator, Price Ad¬

During the past few years, when the securities business has been
hard row to hoe, many salesmen have been happy to take whatever

business

measure

thorize the Secretary of

backbone of his business.

trates what

Press

"The Secretary of the Treasury

WEEK—THE

THE

-

would cooperate

WAS AVAILABLE ..TO HIM.
.,

building

we

the'

effort," was introduced in the
Senate on May 4 by Senator
Bankhead
(Dem.,
Ala.).
The
legislation would require at least
half of the amount to be spent on
advertising
in
weekly,
semiweekly, tri-weekly and monthly
newspapers and the remainder in
daily newspapers.
1
war

business. Neverthe¬
less, we feel that this salesman's story is worth repeating because
it has so much common sense behind it that even if you may find
nothing new in the idea, such a plan consistently followed should
help every salesman to increase his earning power.
This salesman figured out that he only had a limited amount of
working time in a day. When he eliminated the time spent in travel¬
ing to and from his office, the time he spent in reading and study,
in analyzing his customers and their holdings and in traveling to and
from one customer to another, he began to wonder just how he found
time to actually spend in making any interviews at all.
He boiled
have used it to

many

The i realization that only about 20 hours a week could be spent
selling woke him up to the fact that time was a precious
hind a
thing to every salesman. He reasoned that if he had only 20 hours
ago he learned that even many ,a week for: seeing customers .that when he did call upon a prospect
well-known New York City bank¬ or a customer IT WAS IMPORTANT THAT THEY WERE THE
screen.

authorizing the Treasury

to spend from

COULDN'T

effective tool than gold for hew¬
ing out the shape of world peace—
we buy, we pay.
When we sell of
futurity? What could give our
we
do not collect.
That is
a
views greater weight in bringing
simple, categorical statement of about
peace of our own "brand"?
our position.
If is the clever plan If we., in effect, pull down our
worked
out
with
the
primary pants? and
bring in the rod, we
object of "distributing" our gold— need not
cry if we get our pos¬
which is a eupheinistic way of teriors
burned.
making the somewhat alarming
and

One of the most successful salesmen
meet

Advertising Program
A bill

Less Than A Year
to

Bill Would Authorize

NUMBER OF HIS CALLS WERE LIMITED BY THE TIME WHICH

deliber¬

a

not able to

ends will have several times

'

It is

foreign countries who
really begun to lose gold on a
pay for goods we
large scale.
It will grow larger.
are sending them are able to
pile
Something can be done about it
up $3,000,000,000 of gold
under
now; later on all we can do will
ear-mark?
And maybe these for¬
be to wring our hands.
The horse
eign countries, by the time the
is not yet stolen.
Why wouldn't
war
are

Tripled His Income In

losing it at an

effect—behind -ia

ers

pecunious

continue to slyly give

purchasing power to these
people who revel in blood, and

was

don't be too

we

this

pottery—the plan apparently

enthusiastically adopted.

you
an

cutting."
But if

rung

piece of cracked

a

put

may

If you plan more
can starve.
That
end to your throat-

men.

bloodshed

circumstances.

Although that suggestion
the

How One Salesman

lib¬

well-known

a

1869

The Securities Salesman's Comer

(Continued from page 1859)
return

"

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

157

Wertheim & Co.

Farr & Co.

1870

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, May 20, 1943

REDEMPTION NOTICE
i

'

*

'

•

To the Holders of

v- /'

LOUISVILLE AND NASHVILLE RAILROAD COMPANY
Unified
NOTICE

IS

HEREBY GIVEN

that,

pursuant to

the

Mortgage 3%% Bonds with Extension Agreements of Series A due January 1, 1950 attached

provisions

of

the

Supplemental

Indenture

dated

\ January 1, 1940 between Louisville and Nashville Railroad Company and Central Hanover Bank and Trust
Company, as Trustee, supplemental to Unified Mortgage dated June 2. 1890 from Louisville and Nashville
Jtailroad Company to Central Trust Company of New York, as Trustee, the undersigned has elected to redeem
'

AV20 $2,000 out Of $5,000 principal amount

AX15 $10,000

AX16 $10,000

"A":

I'

and-does hereby call for redemption and payment on July 1, 1943, $5,000,000. principal amount of the above
described bonds at 102% of the principal amount thereof and accrued interest on' the principal amount to
the date of redemption. The serial numbers of the bonds to be redeemed have been selected by Central

Hanover Bank and Trust Company,

AX17 $10,000

AX18

$10,000

AX26 $10,000

as

Trustee,-and

"AX27 $10,000

are

AX28

numbered

as

follows:

:

^

$10,000

On July 1, 1943 the above described Unified
Mortgage 3 Va% Bonds with Extension Agreements of Series A
attached in coupon form 1a the denomination of $1,000. each, the

gage

sion Agreements of Series A attached in
fully registered form without coupons, and/or the portions thereof
"which have been called for redemption, will become due and
payable at 102% of the principal amount thereof
and accrued interest on such principal amount to
the date of redemption at the office of the undersigned,
Room 900, 71 Broadway, New York
City, and interest on said bonds

attached in fully registered form and/or the portions thereof which have been called for
redemption should
be presented in negotiable form and the holders thereof will receive a new bond
and/or bonds, with Extension
Agreements of Series' A due January 1, 1950 attached in fully registered form or. at the option of the holder

Unified Mortgage 3%%

Bonds with Exten¬

and/or said portions of fully registered

'

bonds so called for redemption will cease to accrue from and after
said'date, Said Unified Mortgage 3%%
Bonds with Extension Agreements of Series A attached in
coupon form should be presented for redemption
and payment at said office of the undersigned on
July 1, 1943,

accompanied by the interest coupons maturing
January 1, 1944 and all subsequent coupons. The coupons due July 1, 1943 appurtenant to said Unified Mort¬




3V2% Bonds with Extension Agreements of Series A attached called for redemption.should bo presented

for collection in the usual

in coupon form,

manner.

The Unified Mortgage 3V2 '.'a

Bonds-with Extension Agreements of Series A,

for that portion of the registered bond not Called for redemption,

LOUISVILLE AND NASHVILLE RAILROAD COMPANY
Dated, May 14th, 1943.

Kv«^-

,

-

By W. J. McDonald,

Vice President

1

Volume 157

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

rather than to. enable

The Future Of

the finan¬

•

?

;

:

authoritative

an

which

article

appeared in the

"Chronicle"

April 1, bearing the above caption, Dr. Edwin Walter Kemmerer,

be to rule

eration
or

Professor

of

International

in

Finance

Princeton

University,

dis¬

cussed the post-war monetary situation and expressed the conviction
that the doctrines of the

gold-standard school would prevail and

would be spared the chaos that would ensue if each country
its

"Chronicle"

The

readers

its

from

comments

in¬

regarding the views expressed by
Dr. Kemmerer, and some of the
letters received were given in our
issues of April 8, 15, 22 and 29.
Additional ones are given here¬
with:

restore

article and certainly

Kemmerer's

with his basic theory that

agree

will
take
managed paper

standard

gold

precedence

over

money.

to

in

an

amounted to

a prime factor in the
collapse of the '30s.

collosal

Obviousy, each nation requires
monetary system providing a
of

uniform

internal

if

maintain

We

area.

chaos

if

it

were

na¬

to

necessary

different currencies.
uniform

a

cur¬

exchange market to

an

establish the relative
for

would

our

local rather than

rency were

tional,

value

value of

48

The demand

international

STEWART

Berwyn T. Moore & Co.,

will

Lexington, Ky.
Doctor

Kemmerer's

article,

because

it

discusses

than

greater

need

great

will

be

ever

for

Certain basic commodities
stitute

the

economic

ize relative

extent

on

one

rank amateur may
permitted to offer some ob¬

be

a

servations

on

phases of the

some

problem that

to him obvious,

seem

which Doctor Kemmerer does not

for

The

value

of

dollar

a

exchanged,

wheat should have

chasing

metal it

but in the useful commodities and

service it will purchase.

distributed.
a

period

and

We have arrived at

in

mands

social,

our

industrial

We have

on

evolution that

the

of

low

old

in

We

1932.

coin

little

if

maintain

we

system designed to promote
nomic exploitation.
It

should be

tablish

of

establishing

monetary

the

Bonds with
1,

January

due

es¬

issues listed

the

unit

scale,

tied

basic
and

with

to

this

the

silver.

currency

index.

commodities

April 30, there
which
than

These

include

The function

5,000

which

gold

a

the

tion of

more

curred

489,223
513,546
530,636
534,396

30

31

Oct.

30

Dec.

would

be

modity in
among

to

provide

which

a

the

than 2,000 shares oc¬

trade

balances

a

nations would be adjusted.

short interest

April

reported

was

exclusive

30,

of

as

548,365

558,446
551,053

—

501,833

—

1943—

Jan.

29

Feb.

26
31

"The number of issues in which

com¬

532,867

-

31—

Mar.

precious metals in such

*517,422

30

Nov.

in

,514,158

—

Aug. 31
Sept. 30

more

or

29

July

on

during the month.

of

31—

April 30

change in the short posi¬

system

460,577

27

June

of

existed,

31

May

54 issues in

interest

shares

349,154

Feb.

stock

Exchange

were

short

a

453,244

Jan.

.'

individual
the

on

444,745

•

1942—

36,660

•

1,236

—

28__

v

announcement

''

the

31—

31—

of

April 30—

odd-lot

579,394
663,750
774,871

—

—

882,376

♦Revised.

$3,500,000
(Part of

Proposed Issue of

a

not

exceeding $10,760,000)

Baltimore and Ohio Railroad

Equipment Trust, Series M

task

3% Equipment Trust Certificates

equitable world

an

system

cannot

we

af¬

(PHILADELPHIA PLAN)

,

ford

to
ignore the sort of in
equality in the purchasing power
of money that enables a private

soldier in India

to indulge in

the

producers of the basic
ities

in

all

parts

of

.

commod¬

the

world,

-

,

To the Holders of

Mortgage 4%

"Of

relative
values of these commodities on a
world

Oct.

Nov.
Dec.

35,864

was

with

Exchange's

—

Aug. 29
Sept. 30__

March 31.

added:

practicable to

index

an

The

eco¬

—

Mar.

accounts

compared
on

31-

Extension
1900

Agreements of

To be due

-v

semi-annually $ 175,000

■f

November
To be

1

:y.v?

These

3

each November 1 and May I, from
May I, 1953, inclusive.

on

1, 1943 to

guaranteed unconditionally as to principal and dividends by endorsement
by The Baltimore and Ohio Railroad Company.
'

*

f

'

*1"

*

1

'.

•

' v'

*

'

*

1

1

■

t

r • ■

^

.v

Certificates

are. to be issued pursuant to an Agreement and Lease dated as of May
which permits the issuance from time to time to and including April 1, 1944
£ of an aggregate principal amount of not exceeding $10,760,000 par amount of Equip[ ment Trust Certificates. If the $10,760,000 Equipment Trust Certificates shall all be
issued, new standard-gauge rolling stock estimated to cost not less than $10,760,000
1, 1943

is

now

contemplated

to

be subjected to the terms of said Agreement and Lease.

Series B

attached

MATURITIES AND YIELDS

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Supplemental

1940 between Louisville and Nashville Railroad Company
and Central Hanover Bank and Trust Company, as Trustee, supplemental to Unified
Indenture dated January

Central

June

dated

Mortgage

2,

Company

Trust

1,

1890 from Louisville and Nashville Railroad Company
of New York, as Trustee, the undersigned has elected

to
to

unexpended Sinking Fund monies on deposit with the Sinking Fund
Agent and does hereby call for redemption and payment on July 1, 1943, $154,000.
redeem

out of

principal
Thereof

amount

of

accrued

and

bonds as Indicated below at 105% of the principal amount
Interest on the principal amount to the date of redemption.

serial numbers of the bonds to be redeemed have been selected by Central Han¬

The
over

Bank and Trust Company as Sinking Fund Agent, and are numbered

Unified

Mortgage

4%

with

Bonds

Extension

Agreements

of

Series

B

as

follows:

attached

0.875%

May

2.25%

May

May

1944

1.2 5

November 1947

2.35

November 1950

2.85

November 1944

1.50

1951

2.90

1.75

2.45

May

May

1948

November 1948

November 1951

2.95

2.5 5

May 3

3.00

2.00

May

1949

2.65

November 1952

3.00

2.125

November 1949

2.75

May

3.00

November 1945

May

2099

3420

4791

6255

8097

9249

10872

12272

14811

17963

20843

22494

24102

508

2204

3521

5186

6494

8143

9493

11064

12297

14863

18063

21007

22562

24170

634

2305

3661

5230

6955

8373

9528

11134

12622

14998

19111

21081

22565

11608

12721

15391

;

1952
1953

2.80%

Certificates are subject to approval by the Interstate Commerce Commission. The Offering
be obtained in any State in which this announcement is circulatedfrom only such of the
undersigned and other dealers as may lawfully offer these securities in such State.

24229

9591

1946

November 1946

1.875

1950

Issuance and sale of these

166

792

2426

19252

21386

22899

2435

4223

5767

7217

8621

9627

11613

12981

16205

19900

21495

22909

24807

862

2547

4224

5824

7301

8627

10323

11621

14085

17134

19913

21529

23046

24816

14135

Circular may

24711

>831

4003

5765

8600

1945

May

1947

in

form in the denomination of $1,000 each, all prefixed with the letter B

coupon

November 1943

f

7209

908

2573

4283

6045

7656

9050

10381

11624

23312

24969

1020

2649

4392

6047

7708

9082

10572

11650

14282

17270

20402

21888

23843

25098

1166

2859

4608

6090

7780

9110

10630

11747

14434

17354

20681

22039

23896

1474

3316

4703

6110

787G

9239

10673

12250

14637

17829

20824

22479

23930

Unified Mortgage 4%

17263

20375

21638

Bonds with Extension Agreements of Series B attached in fully

HALSEY, STUART &.CO. INC.
HALLGARTEN &.CO.

A. C. ALLYN AND COMPANY

OTIS &. CO.

registered form without coupons and/or the respective

(incorporated)

incorporated

portions of the principal thereof:
BM

7

$1,000

BM

8

$1,000

BM137

$1,000

BX38

E.H. ROLLINS &SONS

$10,000

I,

On July

1943 the above described Unified Mortgage 4% Bonds with Extension
Agreements of Series B attached in coupon form in the denomination of $1,000 each,
the Unified Mortgage 4% Bonds with Extension Agreements of Series B attached In
fully registered form without coupons and/or the portions thereof which have been
called for redemption, will become due and payable at 105% of the principal amount
thereof and accrued interest on such principal amount to the date of redemption at
the
on

will

office

of

the

undersigned,

Room 900,

71 Broadway,

New York City,

and interest

said Bonds and/or. said portions of fully registered Bonds so called for redemption
cease to accrue from and after said date.
Said Unified Mortgage 4% Bonds with

Extension

form should be presented for
redemption and payment at said office of the undersigned on July 1, 1943 accom¬
panied by the interest coupons maturing January 1, 1944 and all subsequent coupons.
The coupons due July 1, 1943 appurtenant to said Unified Mortgage 4% Bonds with
Extension Agreements of Series B attached called for redemption should be presented^
Agreements

of Series B

for collection in the usual manner.

due January 1,

the

in

holder

coupon

The

Unified Mortgage 4%

for

that portion

of

the

registered

or

at the option of

Bond

not

called

for

redemption.

LOUISVILLE AND NASHVILLE RAILROAD COMPANY

^

By:
DATED:

May 12th,

1943.




FIRST OF MICHIGAN CORPORATION

SILLS, TROXELL &.MINTON
incorporated

W.

J.

McDonald,

KEBBON, McCORMICK & CO.
STIX&.CO.

Bonds with Extension

1960, attached in fully registered form

form,

incorporated

SCHWABACHER &, CO.

attached in coupon

Agreements of Series B attached in fully registered form and/or the portions thereof
which have been called for redemption should be presented in negotiable form and
the holders thereof will receive a new bond and/or bonds with Extension Agreements
of Series B

GREGORY & SON

incorporated

$1,000
$1,000
$1,000

BM654
BM655
BM669

Vice-President

THE MILWAUKEE COMPANY

DEMPSEY-DETMER &, CO.

HIRSCH, LILIENTHAL&CO.
STIFEL, NICOLAUS & COMPANY
\

incorporated

SINGER, DEANE &. SCRIBNER
F. S.YANTIS&CO.
incorporated

To be dated

■

510,969
496,892
478,859
487,169
470,002
486,912

as

LOUISVILLE AND NASHVILLE RAILROAD COMPANY
Unified

financial

a

dealers'

shares,
shares,

of

Dakotas

undertake

we

REDEMPTION NOTICE
V

lot

tion of peace.
The abandonment
of political imperialism will mean

30——

July

As of the April 30 settlement date,
the total short interest in all odd-

equitable exchange of
commodities, as the founda¬

these

much pur¬

as

seen

standard fail
of great crisis

gold

period

every

have

de¬

an

com¬

bushel

a

in the

power

our

the

June

short positions carried in the oddlot accounts of all odd-lot dealers.

political

&•'

April 30...——
May 29

change from its members and
society. No coun¬ member
firms, was 882,376 shares,
try approaches self-sufficiency in
compared with 774,871 shares on
all of them.
They are widely March
31, both totals excluding

last

%

allowance

historic, pre-devaluation
luxury of a personal valet.
The
gold
dollar
fluctuate
by
this chief
purpose
of
international
standard from the high commod¬
monetary reform should be to
ity price level of May, 1920, to
promote fair compensation to the
seen

con¬

month for the

1941—

the April 30

on

each

two years:

settlement date, as compiled from
information obtained by the Ex¬

foundation

other commodities in Argen¬
tine, Canada, Kansas, the Ukraine,
France, China or India?

of

represent,

may

the

in

or

unit is not the gold

With fair

transportation costs

When

real

other

or

basis.

modities

emphasize.
any monetary

day for

the

of

of all civilized

in the State of New York.
Why,
then, should not a bushel of wheat
have substantially the same value

Perhaps

close of business

that
as

world¬

a

tary expert.

and

following tabulation' is
shown the short'interest
existing
the close of the last business

commodity values to

reasonable

a

wide

important

May 11
existing

607

was

March 31."

a

of the
most difficult problems that will
confront the post-war world, and
also
because
of the recognized
standing of the author as a mone¬

most

gold

other metal.

any

on

interest

on

monetary system that will stabil¬

the

of

one

The

on

The

on

much

before.

Future of The
Gold Standard is most interesting
1

be

of

cur¬

has not yet been so acute.
However, in the One World rea¬
sonably sure to follow the war, it

rency

CHARLES I.

April

to

unstable gold standard
several countries in the '20s

have

Dr.

interest

with

read

resorted

measures

throughout its

Register Company
have

,

artificial

currency

President, The National Cash

the

every nation that has tried
it.
Some economists believe that the

a

S. C. ALLYN

I

adopted

nationalistic paper-money

own

standard.
vited

we

standard

coin

positions,

the

at

The New York Stock Exchange
announced

short

short

compared with 594

Higher On April 30

;

entirely out of consid¬

a

dealers'
In

It is the opinion of this amateur
that the first step to this end must
In

1871

NYSE Short Interest

cially sophisticated regions to ex¬
ploit the less developed parts of
the world.

'

May 1, 1943. Principal and semi-annual dividends (November 1 and May 1) payable in New York City
and Philadelphia. Definitive Certificates in coupon form in the denomination of $1,000, registrable as to principal. Not
redeemable prior to maturity. These Certificates are offered for delivery when, as and if received by us. It is expected
that Certificates in definitive form will be ready for delivery in New York City on or about June 1, 1943. The infor¬
mation contained herein has been carefully compiled from sources considered reliable, and while not guaranteed as to
completeness or accuracy, we believe it to be correct as of this date.
May 20, 1943.

THE COMMERCIAL & FINANCIAL CHRONICLE

1872

Thursday, May 20, 1943

s

'42 Corporate Sales Up; NelAflerf axes Down; Weston HiStForms Own
Securities Laws Should Be Changed
Now To Remove Unnecessary Hindrances Current Position Deteriorates^ Conference Board
Advertising Agency
■ at

All

Schram Declares Securities Industry Should Have
Freedom Consistent With Public Interest
Emil.

Schram, President of the New York Stock Exchange, re¬

been

accepted in financial quarters and elsewhere, "there is no reason
why the details of these laws should not be changed to remove un¬

hindrances and irritations and give the securities industry

necessary,

the

consistent with the public interest."

greatest possible freedom

were

substantially larger than in 1941 and more than double

those of the pre-war year,

cently observed that since the principles of regulation have

Weston

Although corporate sales in the manufacturing and mining fields
in 1942

1939, net earnings after all charges

were

well below 1941 and only moderately above 1939, according to data

Hill,

many years as

creative

executive

W.

the ratio of total current assets to

nounced

luncheon meeting ♦>
(Ga.) Rotary Club, tion

own
agency,
Hill Advertis¬

sales volume showed the smallest

ing, Inc., with

a

market

Offices

appraisal

Park

.

down the bars

is

There

of the wealth of America.

and
which

abuses

formerly

e x-

isted."

The

manipulative
sy st e m, headded,
"has

the

same

he said:
"We

can

Emil Schram

refine the de¬

tails of stock exchange regulation,
and we can refine, and even re¬

define,

other economic

controls;

permit a popu¬
lar reaction to lead to a repetition
of the mistakes of the -20s. If we

but we must not

do,

of the '30s

the experiences

will recur.
"The

'

aims

,.

Ex¬

great

a

////■■'/V/

vast organization.

securities

the

of

The

Conference

nouncement further

Board's

an¬

explained:

g ency,

renegotiation,

it,

its

tremes.

firms

member

main¬

year,

however, accounted for only

minor part, about 6%,. of total
income.
Reserves
set
aside to

a

.

"Net current assets at the end of

1942, compiled by the Board, for
459
manufacturing
corporations

$9,213,000,000 against $8,tain branches in 313 cities in 45 136,000,000 a year earlier and $7,States. The floor of the New York 131,000,000 at the end of 1939.
Stock Exchange is only minutes However, due to substantial in¬
creases in both current assets and
,away from any telephone or tele¬
current
liabilities
the
current
graph instrument in the land, *
"On the floor of the Exchange, ratio fell from 5.2 in 1939 to 2.7 in
through highly trained, respon¬ 1941 and to 2.4 in 1942.
sible and ethical brokers, any in¬ "Although affecting all groups,
vestor can buy or sell any listed the expansion in sales was most
security.
There are traded the pronounced among durable war
highest-grade bonds and stocks, goods
.industries,
particularly
the
most
speculative,
and
all transportation
equipment
a n d
grades in between these two ex¬ machinery. The 15 aircraft com¬
use

vain."

At

,

a

For the convenience of those who

paid must not
in

Stock

"This auction market is the hub
and center of

the price

be

the New York

serviceinstitution.

cost,

great

a

n

stood at

meet the Federal tax bill, $3,913,-

000,000 in 1942, were fully 50%
greater than in 1941 and more
than 10 times the 1939 provision
made

by

these

same

*495 '

com¬

panies.
"The
an

1942

average

tax

provisions took
of 60 cents out of each

dollar

of

vidual

reserves ran

in

taxable

Indi¬

income.

high as 77c
the automobile parts industry

and

75c

the

in

as

steel

and

iron

Aircraft, machinery, and
railroad equipment concerns also
reported reserves 70% or more of
total income, whereas in 1941 the
highest percentage was set aside
by aircraft corporations, at 65%
group.

panies held the top of the range
"The
merchandise
is
clearly with a gain of 167% over 1941, of total income.
Among the non¬
marked and carefully catalogued. and the railroad equipment group
durable goods producers, tax pro¬
increased sales by 116%.
Sales
provide dependable information Information regarding it is read¬
visions have taken a relatively
were 31% higher for 254 durable
to the investor. The investor was ily and conveniently available to
small proportion of earnings in
to
be
protected against sharp everyone. Moreover, the various goods concerns than in 1941, and each of the last four years. Tex¬
member houses of the New York corresponded closely to the actual
practices.
Let us keep in mind,
tile manufacturers reserved about
Exchange,
maintain,
at increase in durable goods produc¬ 68c of each dollar of total income
however, that Congress had no Stock
great expense, staffs of experts tion as reported by the Federal in
intention of discouraging the in¬
1942, but the average provision
vestor
from
taking
legitimate experienced in advising clients Reserve Board. Non-durable goods made by the 205 non-durable
business risks.
regarding the nature and quality industries showed increases rang¬
goods companies was 53c, as com¬
of listed securities.
ing from less than 0.5 % for paper
"Furthermore, I am confident
pared with the average of 67c al¬
manufactures, which have been
"These experts have at their
that the committees which pre¬
located by durable goods
com¬
restricted, to more than 20% for
pared the original securities legis¬ finger-tips a mass of financial and
panies.
■
manufactured food products and
lation would have expected that general information as to the in
"An increase of 63% in total in¬
textiles,
and
the
non-durable
the first laws would have to be vestment equity, the fundamental
come of the aircraft industry was
merit and the risks involved in goods group as a whole aggre¬
amended
after
they had been
reduced to only 3% after taxes.
tried out in action.
buying or holding almost any gated sales 14% above the dollar
Another
war
industry, railroad
value of sales in 1941.
"Naturally, there were years of type of security. Of course, their
earned 112%
more,
"The rise in total income, before equipment,
judgment is not infallible, and no
mutual hostility and distrust be¬
before taxes, in 1942 than in 1941,
one
can
tell just
tween
how, any risk reserves, of these same companies but net income available for divi¬
Washington
and
Wall
was less steep, as higher operating
Street.
That was inevitable, es¬ will come out; but tHere is no
dends
rose
less
than

legislation of the early '30s were
thoroughly sound.
Briefly, they
Were
to end manipulation and

.

(

_

.

.

.

.

pecially in an era of revolution¬
ary reform in which the laissezfaire system was being altered in
America and all over the world.
"It

seems

to me,

market in the World where all the
facts about the available mer¬

chandise

are more readily or more
quickly available than in this one.

"Neither

however, that

the

New

York

Stock

ex¬
suspicion Exchange, nor any other
and senseless bickering between change, can or does guarantee an
investor against loss; but it
the nation's financial center and
can,
its political capital now is com¬ and does, make, the nature of the

this

period

ing to

an

of

mutual

end.

The, adjustment

will be

speculative risk

an

open

book in

0.5%

opened
in Chi-

Vsoon
cago.

a

change nothing short of

inated only at
and

t i

o n

A

office

branch

Mr. Hill re¬

r-

which

makes

elim¬

been*

"C

at $37,854,000,-

family in the United 000 against $30,700,000,000 in 1941,
-war
reserves, 'and
all re¬
does not own, di¬ a
gain of 23%, and against $18,- serves, and all reserves other than
rectly or indirectly, some of the 037,000,000 in 1939, a gain of 110%. tax reserves were almost doubled
securities ' for
Which
the
New Net after all
These funds were 10
charges is shown at in 1942.
York Stock Exchange provides a
$1,972,000,000 against $2,356,000,- times as large as in 1939, when
free and open market.
000 in 1941, a decline of 16%, and very few income statements made
; "The social responsibility in¬ against $1,636,000,000 in 1939, a specific provision for contingen¬
volved in maintaining this market
cies. The total of $398,000,000 last
gain of 21%.
hardly

States

the

against
e vi 1 s

net sales last year

259

at

Avenue,

New York.

'

brea kin g

the

opening of his

However, all in¬
the two whose

total current liabilities was lower increases reported gains in tax¬
of more than at the end of 1941 and very able income. A total income of $6,Mr. Schram "explained, however, than $60,000,000,000.
This is the much lower than at the end of 400,000,000 remained after all ex¬
penses were paid, 14% more than
that in making amendments "we market value placed upon these 1939.
in/1941 and 176% more than in
securities by the investment pub¬
must
not
The
Board's
figures; covering
1939.
lic.
This represents a large part 495 industrial
;
o f
t h i n k
;
corporations show

Addressing

of the Atlanta

&

Kastor

Sons, has an¬
—

higher than in either the sales dollar.
the previous year or in 1939, but dustries
except
were

Ruthrauff

for

Board, and made available May 11.

Net current assets at the end of<8>
1942

writer and

and Ryan, Blackett-Sample-Hummert
and
H.

prepared by the Division of Industrial Economics of the National
Industrial Conference

for

well-known
a copy

Vti.;-}'

cently insert¬
ed

in

tising

adver¬

trade

papers a

Weston Hill

full-

adverr
tisement, A New Kind of Adver¬
tising Agency Is in the Making,
outlining his proposed policies.
New products and processes will
be emphasized ip" the plans of the
new agency, Mr. Hill stated.; *
'oStaff personnel, accounts/ and
page

other; similar

data

will be made

public In ^forthcoming/annbunfcemerits.

"

■

'

(Editor's Note:
The above
port was previously given in
issue

of May

meehanical

re¬

our

13 but, owing to

error,

the

a

complete

import of the item was not imme¬
diately apparent. For this reason,
is

it

being carried again in this

issue.)

NYFinanceinstitsste

/

Course In Electronics
In view of the increased inter*
est in and attention

electronics,
stitute

the

being given to

New

York

In^

of

Finance,
20
Broad
Street, New York City, announces
a, series of lectures by men out¬
standing: in the field. These lec¬
tures

will

be

given

on

Mondays

at 3:45 p.m. in the
governing room
of the New York Stock
11

Wall

Exchange,
Street, New York City.

Pee for the course is five dollars.
Lectures to be given are:
; :
.

May 24—"Chemistry and Elec¬
tronics," Dr. Willard F. LiWby,
University of California.
June 7—"Radio—FM and Tele¬

vision," Dr. David Grimes, Philco
Corporation. *
June 14

to

—

"Electronics

as

Ap¬

conversion costs, higher
plied to Industry," A. C. Montieth,
$53,200,000 from $53,100,000 in
prices of raw materials, higher
1941.
These were the only two Westinghouse Electric & Manu¬
wage rates,
and overtime pay¬
facturing CO.
;/.< •
manufacturing industries to report
ments combined to cut deeper into
June 21—"Advance and Future
costs,

any

provide risk capital either
society will not progress mater¬
ially or the Government will sup¬
ply the risk capital.
And, if the
Government
supplies
the
risk
capital and thereby becomes the
do not

increase in after-tax income.

"Thirty-seven steel companies,
representing $5,300,000,000 in total
assets, the largest industry group,
reported a decline of 32% in net
after

income

taxes

last

year,

Thinking," Dr.

W. R.
General Electric Co.

Thanks To

G.

Baker,

Newspapers

in

For Success Of

spite of increases of 21 % and 14%,
quite complete.
great entrepreneur, or risk-taker, respectively, iii sales and total in¬
"As a market we have
"Our capital markets have a
always the private incentive to assume come.
\
highly important part to play in done a good job, but we have great risks in hope of great gains
"The largest decrease in net in¬
advancing the system of private never before been able to do as gradually
Secretary of the Treasury Mordies—and
the State come was suffered by the paper
enterprise.
They must facilitate good a job as we are doing finally becomes socialistic rather
genthau made public on May 3,
industry whose 1942 sales were
the gathering and servicing of the now....
the following message he has ad¬
than capitalistic.
'
almost unchanged from 1941, and
risk capital necessary to rebuild
"I am going to digress a mo¬
dressed
to
the
"One reason this war is costing whose
total
income before re¬
of
newspapers
a
better world in which abun¬ ment and
America in connection with the
djscuss a vital function the Government more than the
serves was down 9%.
After re¬
dance shall be counted a blessing, of our market which of
late has first World War is, of course, that
$13,000,000,000 Second War Loan:
scarcity a curse, stagnation a sin, been neglected.
"The Second War Loan drive
There was a the Government has been doing serving 56% of the total for taxes,
and enterprise a virtue. We must time
when
The final tabulations
corporations habit¬ most of our corporate financing. instead of 41% in 1941, the after¬ has ended.
again reward the venturesome and ually and importantly financed
have not been made, but it is evi¬
In the last war, corporations to tax figure fell 34%. In compari¬
cease
to
encourage
those who through the sale of stocks rather a
dent that the goal has been ex¬
much larger extent financed
son with 1939, however, net in¬
Would bury their talents in a vain than
ceeded by a substantial amountthrough the sale of bonds. themselves.
At the end of this
quest for unfruitful security.
come had gain 52%.
Shareholders received subscrip¬
more than
$4,000,000,000.
war, the Government is going to
"How can, the New York Stock tion
*'For the 36 mining companies
"Our thanks are due to
rights, which they could own a great deal more bricks and
many
either exercise or sell.
In other mortar and
Exchange, and the other regis¬
machinery than it tabulated, tax reserves averaged people—workers, advertisers, ad¬
tered exchanges, best function to cases buyers of
equities, floated ever has owned before.
vertising media, retailers, theaters
To the
only about 47% of gross income. —all who
make this contribution to the ma¬ publicly off the
devoted themselves so
exchanges, were extent that this new war plant
informed
the
issues
chinery of organized society?
would
be is unfit for a civilian economy, The gain of 8% in gross income wholeheartedly to this vital cause.
so

in Wall Street is

far

as

that is possible.

.

War Loan Drive

,

.

,

listed
on
an
"In two ways.
exchange where
First, as effi¬
ciently operated markets for se¬ ready markets would be avail¬

this

is not

good thing for the
and
the
people.
those desirous of selling
curities of our corporate enter¬
Furthermore, this new war plant,
or of subsequently
purchasing. It unless it passes quickly into pri¬
prises; and second, as leaders in
was healthy
financing, and in the vate hands, is a further/threat to
sound, modern financial states¬
public interest.
We should en¬ our enterprise economy.
manship.
able

"As
a

a

market,

deavor

providing
meeting place for buyers and

sellers

of

we are

stocks

bonds which have

and
a

corporate

current




auc¬

a

Government

to

to
^

stimulate its revival,

"And

so

I say that our capital

in 1942

was

changed to

a

decline

of 6% after taxes, a more moder¬
ate

movement

than

among

the

manufacturing groups. Coal-min¬
ing companies showed an increase
in * net

income

whereas

metal-

especially in the post-war period,
markets are about to enter upon mining and smelting concerns fol¬
"This is of the greatest
impor¬
the
a period of great usefulness and lowed
general' downward
our system of free
en¬

tance to

terprise.

For if private investors

unlimited

opportunity."

trend."

I

wish to

express

Newspaper Council
papers

generally

titude

for

the

to

our

part

the Allied

and to news¬

sincere gra¬

they played.

The support they gave us in the

handling of
and

news, in compelling
imaginative features,' and in

the

promotion

vertising

was

of
as

sponsored ad¬
invaluable as it

was. unparalleled in * promotional
history."

Volume 157

Number 4178

THE COMMERCIAL & FINANCIAL

attempted to Have

Over-The-Gounter Sales As Principal

tention

condition

now

large profit in itself

roads'. protestations of
difficulties they are

up a reservoir of ill-will that
will take them

were

securities field.

Complete self-regulation and self-discipline Walter

would have been advisable and still is

provided that with it

go a concerted effort to

the

too many

Whyte

lies

:

sumed.

are

I'll admit that

bulls.

that isn't

even

condition.

new

observations to instances of transactions

our

at

are

between the dealer

There

are

as
principal and the investor as customer other
purchaser, i.e., where all confirmations evidencing trans¬ or

to what each wants

and until it
main

does it must

•

re¬

only an unknown
quantity but a" force which

may prove
A

explosive as well.
paragraph or so back I said

that stocks
as

about

are

they will get

ent

of

one

as

high

the pres¬
This doesn't take

move.

into

account

fiduciary?

Currently there is a lot of
of an agency which is
showing off of various finan¬
investigator, prosecutor and judge, and possessed of the cial statements. I am not im¬
power to terminate their license to do business?
Aren't
pressed.
.Time and again I
the courts the proper forum to deal with a man's
right to have stated here that earn¬
Do brokers and dealers approve

continue his livelihood?
The SEC takes the

position that the relation of a secur¬
an
ordinary merchant
to his customer. The claim is made that the provisions of
the numerous state Blue Sky Laws governing the revocation
of a license conferred upon the broker or a dealer, lend
force and strong support to this contention. };
ities dealer to his client is not that of

Where and when
reason
a

a

dealer sells

merchant and

result.

a

a

customer.

"client", in

-

'

»

We take

our

'

are a

and

not

a

record of the past
yardstick for the

An

enced short trader
add a

current

inexperi¬
can

easily

couple of points to an
up-move
by his hasty and

back that

new

I

'

future worth
ket

action

a

hoot

itself.

is

As

this

is

'

f

■

That doctrine, ancient in the law and well tried for thousands

such cancellations

are

a

little

cancellations

are

defrauded.

the life's blood of

a

nation.

They must be kept liquid. Their impairment by so-called
emergency regulations intended in the public interest, can
serve to be the death-knell of liquidity.

But to get back to the mar¬
You well know that vol¬

ket.

ume

those

this
any

of

the
as

(Special

LOS

ated

Financial

with

has

Chronicle)

CALIF.—Sid¬
become

Morgan

&

associ¬

Co.,

634

South Spring
Street, members of
the Los Angeles Stock

Exchange.

Mr. Hook

was

formerly with Mer¬
Lynch, Pierce,
Fenner
&
Beane in charge of the municipal

rill

department of their Los Angeles
office.

Prior

thereto

he

was

an

officer of Banks, Huntley & Co,

L. L. Vivian Dead
Leslie

L. Vivian, a partner in
Lynch, Pierce, Fenner &
Beane, New York City, died at
the Muhlenberg Hospital, Plain-

Merrill

field, N.

J., where he had

admitted

for

Mr.
*

The

B. Hook

ney

and let¬

scramble

to

ANGELES,

for

Vivian

surgical
had

been

treatment.

been

Wall

in

Street since 1909, when he became

*

associated

If that isn't

trip through the country I

can

& Co.

in

ner

In

In

with

part¬

a

Floyd-Jones, Vivian & Co.
he

1933

Fenner,

became

Beane

predecessor

that despite the rail¬ Pierce,

Kissell, Kinnicutt

1921 he became

&

of

a

partner in

Ungerleider,
Merrill

Fenner & Beane.

a

Lynch,
,

Editor's Note—It will be recalled that Abraham M. Metz

rent move.

(165 Broadway, New York City) and Edward A. Kole (39
Broadway, New York City) represented the Stewart J. Lee

day's action

Company in a case in which a client

entire

of the Lee

company

This advertisement appears as a matter of record only and is under
be construed
to

buy

as an

any

offering of these securities for sale,

of such securities.

or as a

no

circumstances to

solicitation of

an

offer

The offering is made only by the Prospectus.

The Flintkote

Company

$3,000,000
Fifteen Year 3%

Debentures, due May 15,1958
Dated May 15, 1943

Price 102% and accrued interest

prices,
after
dawdling around, have

on




ivith

Sidney Hook Now Is
With Morgan A Go.

them.

tell you

in

necessarily at

coincide

has fallen off and

rallied a bit. But the
picture
the part of dealers to regard the trial is so confused that neither
of one individual or of one firm, for alleged infraction, as the rally or the imminence of
something apart, which does not affect them, is one of the a break seem convincing.
*
*
*
most dangerous influences threatening the industry. By
From a cursory examina¬
means of such hearings and trials, harmful precedent has
been, and will continue to be created. The "one for all and tion pribes look about as high
as
all for one" adage is important here.
they will get on the cur¬

tendency

sitting tight

*

not

They are presented
those of the author only.]

entirely out of

others

Whyte

expressed

views
do

Chronicle.

being

whispered about,
years, requires no modification.
It is basically sound,
which, if true, would give the
and its observation will prevent fraud on the part of dis¬
companies the opportunity to
gruntled customers. It will place the obligation of vigilance
get back into whatever pro¬
where that obligation properly belongs.
duction- they were in before
We hold no brief for anyone indulging in fraudulent the
war,
the consensus of
practices. The small percentage who have done this in the opinion is pessimistic.
It all
past are largely responsible for the cross which the industry depends on what side of the
now
carries.
There always has been, and still are, laws street
you are selling apples.
*
*
*
adequate to punish such practices and to give redress to the
of

The

time

Instead I would

mar¬

position that the State Blue Sky Laws,
amusing. It isn't so long ago
when examined, will be found to deal with the subject of
that we heard that war orders
affirmative fraud and its prevention, and therefore, cannot
were
unprofitable and that
be regarded as authority for an attempt to change the doc¬
everything else being even,
trine that fraud will not be implied in outright sales where
most companies
preferred to
the dealer occupies no fiduciary role. As to such sales, the
stick to established lines. Now
rule of Caveat Emptor (Let the Buyer Beware) should apply.
that rumors of

are

ting

V;! [The
article

same as a

the

Transactions in securities

are

proportion.

know I'm

principal, we see no
being written there are all
sale between kinds of stories around about
In such instances, calling the
war
business
cancellations.
opinion, does not change the The
interpretations involving
'

involved

suggest

but the risks

moves

to your
liking
sticking then take a look at the rails
my neck out when I say this,
-not to buy—to sell.
Having
but the only yardstick for the
just completed a 2,000-mile

future.

as

why the transaction is not the

customer

ings

Thursday.
—Walter

on

the

short position.

such

a

More next

not

expects.

tion

many
the cloak

of "war
emergency"
of bears, however, has
and guide
myself accordingly.
yet to taste its first run-in,
crop

frightened covering. So while
get what they want or I see little reason to
change
daggers' ends with each my opinion of a few weeks
as

a

bears

present

•

business.
And if I
shipper I'd remember
things all covered with

senger

al¬

were

ways more bulls than
in the Street.
The

buying is now
The loud yells inadvisable I can also see the
actions are clearly upon that basis, and that basis alone.
about retaining the "Amer¬ market add
another two or
To those acting as brokers and investment
counsel, a ican Way" are
completely three points before
different rule may well apply. The
turning
question then is, when without
meaning.
Take ten down again.
does a dealer also act as investment counsel?
Does he so
people and you will get ten
act when in the course of a sale as
principal, he makes some definitions of what the Amer¬
If you're
agile enough you
observation about the soundness of a
security, which is not ican Way means to them.
may make a little
acted upon? Does that mere observation constitute his
money out
posi¬
of
or

be-damned doesn't augur
any
bright future for their pas¬

a

how to

We limit

to the
attitude of railroad
personnel.
Their attitude of the
public-

outnumbered by the

But

in timetables—west

ply don't exist—but

far

so

over¬

refetring to

Alleghanies they sim¬

are

Johnny-Come-Lateare
looking for a

who

spill.
they

Says

(Continued from page 1860)
completely abolish, or at least con¬
siderably limit the present powers of the existing regulatory to this lies in the ability of
agencies,
:V;V':;
the market to foresee events
The idea behind the Securities and
Exchange Act is rather than reflect news as it
salutary. However, the method of its enforcement, the set¬ occurs.
*
*
*
ting up of "The Commission" and granting it a rule-making
V"'
power which is equivalent to the power to legislate, may
Right now the market is
be the means
through which not only security dealers, but trying to figure out two
also
industry will suffer unwarranted and indefensible hard- things. The first is the kind
of taxes our legislative bodies
The proposed SEC bid and ask disclosure rule which
will cook up.
The second is
would compel dealers who sell as
principals to the public to the kind of world we can ex¬
disclose the best bid and ask price (in
reality to disclose the pect once all the shooting is
profit they would make) to their customers seems to us an over. As to the first a part
unjustified assault upon American traditions and methods. of the answer
may be given
In effect, it would
appear to be an attempt on the part of before this week is over.
As
the SEC to circumvent the intent of
Congress by indirection. to the second, there is as yet
The further attempt to establish a so-called "reasonable
no
answer.
The people in
profit," beyond which, fraud will be presumed, is contrary
charge of remaking the po¬
to the sound legal doctrine that in such
transactions, in the litical and economic map of
absence of a fiduciary relationship, fraud will not be
pre¬ the world either don't know

is that there

reasons

not

am

the upset

of the

-

Tomorrow's Markets

to

years

I

come.

faces the over-the-counter dealers.

True, in the past, there has been some wild-catting in
securities, and there was need of a standard of ethics in the

their

building

prima facie evidence

was

or that quotations
in the National Quotation Sheets
indicative of the market prices of securities.
They are.
entitled to the thanks of all those in the securities field
for
the court's findings in this case.

right to contract freely may be impaired and
destroyed.- This can be done gradually and be upon us
before the true gravity of the situation is
appreciated.
a

a

a

of fraud

constitutional
even

Such

that

*18731

sale rescinded because of the size of the
The court declined to uphold the SEC's con¬

profit exacted.'

(Continued from page 1858)

CHRONICLE

But
can

just

a

One of

may

be obtained in

any

State from such of the several Under-

writers, including the undersigned, as may lawfully offer the securities in such State*

LEHMAN BROTHERS

single

change the

picture again.

Copies of the Prospectus

May 18, 1943.

Thursday, May 20, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

1874

PERSONNEL ITEMS
ev

v

ft ^y*

I'll

save

"If nations

\*%QS&..Jr
<

to

(Special

Chronicle)

Financial

The

BOSTON,, MASS.—Francis Mahas
been added to the
148 Front

staff of Raymond & Co.,

Street.

South
(Special

Financial

The

to

Walter

LOS ANGELES,

Co., Ill De¬

ard

Street.

Davidson,

J.

means

Peace

BOSTON, MASS.—Robert Emmett O'Keeffe is now with Crut-

national trade.

Street.

to The Financial Chronicle)

(Special

O'Keeffe
was
with Fuller, Cruttenden &
Co. and Morrill, Wilson & Co. Re¬
cently he has been engaged in

ANGELES, CALIF.—God¬
frey T. Schmidt, Jr. has been add¬

special statistical work.

Co., 523 West Sixth Street.

LOS

ed

the staff of E. F. Ilutton

to

(Special

neutral spirits. Blended whiskey, 86

GU % gram

proof. Schenley Distillers Corporation, N. Y. C.

The Financial

to

ILL.—Emery

CHICAGO,
Iliff

with

Paul

H.

La

Salle

Synthesis Of British And American Plans Held

Possible

Denying that the British (Keynes) post-war foreign exchange
stabilization proposals had been drawn up principally in the interests
of Great Britain, Lord Keynes, in addressing the House of Lords on
May 18, stated that "Nothing is farther from our thoughts." He also
declared, according to a wireless message from London to the New
York "Times" that there was no foundation whatever for the belief
in

held

quarters v—;

American

some

Davis

with

for

to

W.

added to the

Financial

The

to

has

Koehler

(Special

_;?

Chronicle)

R.

S.

connected

with Fred W. Fairman & Co., 208
South La Salle Street. In the past

of his proposals, of international monetary prac- Mr. Koehler was with Bond &
was to make the United States the. tice.
He favored restricting the Goodwin, Inc. of Illinois in charge
<'miir.ii emu" rvf thp wnHri in fpninfluence of gold without its com¬ of
trading.
.'milch cow" of the world in gen
plete demonetization.
eral and of Great Britain in par¬
"Lord Strabolgi commented that
(Special to The Financial Chronicle)
ticular.;';';,
■'
kvvuA
The further discussion of the 'until you have set up an inter¬
CINCINNATI,
OHIO.—Charles
national political government, to
A.
Hall
is
now
with
Merrill,
plan before the British House was
indicated as follows in the ac¬ attempt to establish an interna¬ Lynch, Pierce, Fenner & Beane,
tional
economic
government is Union Trust Co.
count in the "Times";
Building.
Mr.
putting the cart before the horse.' Hall was
"He
previously with the lo¬
asserted,
as
did
other

Wm.

associated with Blyth &

now

"Suitable

for

names

Through foreign trade alone can
modern industrial nations procure

is

he had not the slightest
a
synthesis of the
American plans was

cheers,

that

doubt

British

and

possible.

:V.
the

best

hope for the lasting success

'unitas'

Simon

Lord

names.'

bad

'rotten

were

in

ancient Rome

ple of Juno

was

in the Tem¬

post-war international policy was
exactly the contrary of making
the
His

own

States

United

a

West Indies

West Indies Sugar

" T cannot

emphasize too strong¬

ly,' Lord Keynes added, 'that
not the Red

Cross or any

went

"He

the rescue

countries.'

of poor
;

philan¬

whereby

scheme

relief

rich countries come to

it is

to

on

say

that there

banking group headed by
Ripley & Co., Inc., on

of
Corp. common
share. Blyth & Co.,

17 offered 395,178 shares

May

stock at $15 a

Higginson Corp.,
Co., G. H. Walk¬
er
& Co., Wertheim & Co. and
Farr & Co., participated in the of¬
fering. The distribution of the
shares was effected the day of
the

Inc.,

Lee

>

...
that offering. ; •'
None of the proceeds will go
might lead the United States to
into the company's treasury.
Of
accumulate large balances of his
.he 395,178 shares offered, 325,000
proposed international currency,
shares are for the account of the
'bancor.' These he listed as fail¬

ure

maintain

to

home

or

.

at
the enter¬

employment

the collapse of

prise or initiative required to
vest surplus resources abroad.

in¬

United States
proposals as being of great nov¬
elty and far-reaching importance,
"Praising

the

said:
"'Neither plan conceals selfish
motives.
The treasuries of our

Lord Keynes

two

great nations come before the
in these two papers in a

world

common

of

a

purpose

common

"Lord

with high hopes

Simon,

the Lord

Chan¬

cellor, said the terrible evil of
trade chaos must
after

the

war.

in¬

be
* Unless

system of international con¬
trol was devised now to stop the
in the

that

of

international exchange

future, he thought, the evils
after World War
I

arose

would

arise

again in a more ex¬

aggerated form.
"Lord Barnby
a

need for some




&

Walter

and

Wells

Chronicle)

M.

Wells

previously

Geo H. Grant & Co. and
son,

Chronicle)

Financial

The

FRANCISCO,
CALIF.—
D. McDonald has become

James

„

Stephen¬

to

move

accordingly, adding "in that even
there can be no Other outcome but

increasing economic struggle and

bitterness, lowered na¬
living, increas¬

growing

45

tional standards of

Street. Mr. Mc¬
previously with Ba¬

Montgomery
was

for armament
Third World
War." He also stated that to try
to build international cooperation
expenditures

ing

and

& Co.

eventually

Financial Chronicle)

to The

Aquino,

CALIF

—

with

formerly

^VifVi;

,

:

SANTA

staff

the

to

CRUZ,
of

Richey

;

\I,

:

Sgt. C. A. Levine in NYC
Sergeant Carl A. Levine, mem¬
of the Boston Traders Asso¬

added

Baikie,

&

;.v> i,

ber

CALIF.—Wil¬

Williams has been

A.

impossible."

be

,

j.:(Special to The Financial Chronicle)

liam

"is ut¬

isolation

terly impossible,, and will always

Davis, Skaggs & Co., has joined
the staff of Wulff, Hansen & Co.,
Russ Building.

a

economic

upon

FRANCISCO,

60 Pacific Avenue.

Leydecker & Co.

forced

be

affiliated with Dean Witter & Co.,

are

with

will

other

isolation

economic

of

tion

to

.

if the

that

United States moves in the direc¬

.

(Special

SAN

with II. R. Baker

was

Montgomery

going."
warned

Sayre

nations

Co., Bank of America Building.

Mr.

Mr.

international Cooperation; Increased Trade
Foundations For Lasting Peace, Says F. B. Say re

ciation, is in New York City on a
brief visit.
Sergeant Levine is
with the 1000th Technical School

Squadron, at Tomah, Wise.

Urges Extension of Trade Pacts

as

Proof of America's

The

registration statement filed
Securities & Exchange

the

with

Commission covered
al

75,000 shares

of

an

addition¬

stock

owned

Stating that the vote on Congress on the bill for the extension
trade agreements "will be regarded by other nations as the
acid test of America's future intentions," Francis B. Sayre, Special
World

"If

Secretary of State, in an address on May 17 at the
held at the Hotel Astor, New York City, in

Trade luncheon

connection with
we

move

National Foreign Trade Week, asserted

reciprocal trade agreements with

closely watching us today will be
forced to move accordingly in a

foreign countries under the Act
of 1934, Mr. Sayre described this
as "the first great American refe¬
rendum on the economic founda¬

other

desperate
effort to
get
along
later, but not be¬ without our help. In that event
fore July 17 except by consent of there can be no other outcome
The

company

but

increasing economic struggle

of the peace,

tions
fore

of

and is there¬

critical importance."

.;f\;v"1

added:

12,211 shares of $2.50 cumulative
preferred stock. The funded debt

being followed with intense

retired

a

year

of

the

Sugar

Corp.

subsidiaries,

Cuban

and
is a

Dominican

certain

holding

of

its

com¬

owning securities of several
producing raw sugar

companies

and molasses.

It

expenditures

and

ment

World

ago.

West Indies Sugar Corporation,
organized in 1932 as a reorgani¬
zation

creasing

War.

is utterly

for arma¬

eventually
One

thing

a

Third
is. sure.

impossible, and will

always be impossible, to

build in¬

"The

large measure will determine, the
commercial
policy > which
the

nomic isolation."

years

bill

regarding the
before Congress to extend for
remarks

period
the
President's authority to negotiate
another

three-year

inter¬

by all of the United Nations.
The result will indicate, and in

United

his

Congressional Rebates are

est

ternational cooperation upon eco¬
In

,

He

tV'V

outstanding 951,208 shares of and growing bitterness, lowered
common stock ($1 par value) and
national standards of living, in¬

has

was

banking

do

States

will follow in the

after the war; and what we
to a large, extent deter¬
what other countries find it

will

mine

possible to do so.
If the people j
States really desire

of the United

18

issue of $3,000,000 Flintkote

new

3% debentures, priced

This issue will constitute

102.

the

by

headed

group,

Brothers offered May

only funded debt of the com¬

pany,

which is engaged principal¬

in the production of building
materials, paper board products
and industrial, marine and rail¬
road products.
Proceeds of this
ly

.

financing will be

in the direction of <'♦>

isolation

will be offered

■

that:

nations

economic

by the National City Bank which

underwriters.

a

at

Assistant to the

tional

Flinfkofe Go. Bonds
A

Co. 15-year

Future Intentions

Rockefeller and the Na¬
City Bank as trustees for
the estate of Percy A. Rockefeller.

Avery

Lehman Bros. Offers

Lehman

of the

pany

thought there was
overriding scheme

.

keep their specialized in¬

to

dustries

National

ANGELES, CALIF.—Gor¬

tion; 53,691 shares for the Nation¬
al City Bank and 16,487 shares for

some

misuse

.

,

City Co. of New York, in liquida¬

the

plan.'

ternational
averted

Street.

SAN

associated

now

kets

& Co., has joined

Fenner & Beane, 221

they obtain large enough marr

can

the staff of Merrill Lynch, Pierce,

con

don E. Buckhout, Roberta D. Mor¬
rison

CALIF.—

make

Lazard Freres &

only two contingencies

were

LOS

civilizaton and culture pos¬
Through foreign trade alone

sible.

formerly with

Morton,

Skaggs

Davis,

Building.

(Special to The Financial

Harriman

ploy in any other way.

First

present-

goods which

CALIF.—Albert

Co.,

operation, or the mani¬

in

day

Chronicle)

FRANCISCO,
E.

Michael

Sugar

that the United States or
other country put up a single
dollar that it would prefer to em¬

thropic

SAN
Robert

Gauthier is now with Halbert,

&

materials

raw

tories

The Financial

to

(Special

Stock On Market
A

The Financial Chronicle)

•LONG BEACH,

Bank

plan, he said, did not re¬

any

to

Hargrove

'milch cow.'

quire

(Special

D.

Moneta."

of a

that

maintained

"He

(Special

Donald

'moneta,'

suggested

reminding the Lords that the mint

food for their peoples,
to keep their facr

necessary

Co.,

fold

interna¬

an

cal office of J. S. Bache & Co., was
before a formal
tional money were commented on
with Taylor, Wilson't& Co. and in
scheme could be decided upon,
during the d i s c u s s io n.- Lord the
the other United Nationi should
past was local' manager for
Keynes thought both 'bancor' and Caldwell & Co.
be consulted.
He declared, amid

of vast-,

140,000,000 in 1750, 266,000,000 in
and
519,000,000
in
1933.

Inc., 625 Broadway.

that

speakers,

of nations in this inter¬

1850

Co.,

Staats

R.

V

\

increased
populations.
The
population of Europe, which in
1650 was 100,000,000, increased to

DIEGO,
CALIF.—Elmer
formerly local man¬

for

''V' Y

ly

Spencer,

ager

of its influ¬

made possible the support

Chronicle)

Financial

to The

reason

•

dependent world. Industrial na¬
tions, by selling processed prod¬
ucts abroad in exchangefor food¬
stuffs and
raw
materials, have

PORTLAND, MAINE—John j,
King has joined the staff of C. W.
Leonard & Co., Masonic Building.

k!

ILL.—Thomas
become

Chronicle)

Financial

to The

••

lifeblood

Spring

South

Street.

SAN
(Special

Revel

with

now

650

Co.,

&

135 South La Salle Street.

CHICAGO,

is

Cb.,

(Special

Chronicle)

Dempsey-Detmer

of

Off
&

own

"Trade constitutes the veritable

—

years

ILL.—Robert

Jenkinson has been
staff

Ernest

its

within

ence.

that the purpose

V

for

leads

isolation

unemployment,
people and all

and

poverty

both

CALIF.

.

economic

achieve

&

Chronicle)

ANGELES,

Miller

Weeks.

(Special to The Financial

CHICAGO,

LOS

10

Iliff

Mr.

many

&

Hornblower

Le-

Co.,

&

Street.

previously

was

Keynes Denies Stabilization Plan Drawn To
Favor British hi Expense Of United States

has

to The Financial

(Special

affiliated

become

land

South

Chronicle)

.

great

others

ft

.

industrial nation is
today, or can possibly be' in the
future, economically independent.
The
attempt by any nation td
"No

-.A

past Mr.

the

In

Street.

ROYAL RESERVE

cept as it is built upon close col¬
in the field of inter¬

laboration

Co., 453 South Spring

&

Salle

tenden & Co., 209 South La

SCHENLEY

Marache

Fewel,

with

the chance to get a job, the
of paying off the mortgage.
cannot be made lasting ex¬

crops,

CALIF.—How¬
formerly with

connected

come

The Financial Chronicle)

to

of produc¬
the price of

problems

hang

tion and employment,

:,:

Chronicle)

Crowell, Weedon & Co., has be¬
(Special

hang upon national
international
trade.
Uport

and

Financial

to The

vital do¬

issues

mestic

Spring Street.

(Special

The solu¬

absolute essential.

an

trade

Lee

associated

become

with White, Weld &
vonshire

is

621

Hurry,

&

populations

tion of some, of our most

Chronicle)

MASS.—John

has

Middleton

occasions!

of making their

co-¬

busi¬

against freedom from want.
To this end collaboration in trade

W.

Jones

closely

must

secure

ANGELES,
CALIF. —
Blanchard and Clara
have joined
the staff of

•LOS

George

Bingham,

BOSTON,

Chronicle)

The Financial

to

they

peace

ness

(Special

lenfant

it

in

operate in the fundamental

in this column.

lication

this is the time to act. . . .
are to live together

war,

If you contemplate making additions to your personnel, pleas(
send in particulars to the Editor of the Financial Chronicle for pub¬

treat...

a

a more

economic life after the

abundant

i

What

humane world and

more

a

eral

The

issue

whole

tice

used for gen¬

corporate purposes.
or

will

callable

be

in part on

in

30 days' no¬

at prices ranging

from 104 Vz
14, 1944,
prices decreasing. progressively to 100 on and
after May 15, 1957.
In addition,
the sinking fund is to retire $100,000
principal
amount
annually

to-and
and

including

thereafter

from

1945

to

May

at

1957,

prices ranging from
to 100% in 1957.
The
income

company

inclusive,
102

reports

in

at
1945

1942 net

of

$1,727,154, compared
with $1,737,661 in 1941 and $1,436,550 in 1940. It has outstanding
38,367 shares of $4.50 cumulative
preferred stock and 713,706 shares
of no-par common stock,

.

Volume 157

Number 4178

THE COMMERCIAL & FINANCIAL
CHRONICLE

Can The United States Support A

"The public is too damn dumb to

ion

understand,"
As

I

not

mean

but

Federal

debt

will

that

see

clined in

debt

the

Dollars there is obviously a great
deal of stretching for debt serv¬

well—you

ice but the real stretching will not

dollar

purchasing

alone

has

de¬

increased. There

come

the

power as

borrowing and settle down to pay

flue

were

tuations in the movement during
this period but over the
long term
the trend was up for debt and
down

for the

dollar.

•

/

./

until

of

end

jour debts. Then and only then the
full

effect

of

this

huge

felt

be

I

and

think

In more

less direct ratio to the

or

accumulation
law

of

debt.

That

is

as immutable
gravitation.
At¬
thwart it may retard

law

tempts

to

of

the effect for

time but the im¬

a

pact is bound to be all the
because

severe

of

the

It

more

will

to

come

without

pass

legislation to spur it on and I
might add that it will come to
pass in spite
of legislation de¬
signed to prevent it.
Price con¬
worth while in that they

are

'

reaching

The national income is the

total

of

duced

goods

and

tice that I
well

as

sum

services

consumed,

pro¬

Take

"deal like

produced because pro¬
is not income.
It

alone

must be purchased and consumed

trying to

with

tide

looked

back the

sweep

broom.

a

over

of

mine

shoulder while I
this and suggested

my

was

writing

that

I

of

it at

not write

should

that

fact

all

F.

erable

is

worrying

section, of

may well do so.

of about

The Board of Directors of Ameri¬

in

Cyanamid Company on May
1943, declared a quarterly divi¬
dend of l1/4% ($.125) per share on

of

livery of coupons No,

out

of

a

year

balance

the

new

a

Bond

.

the

er

national

Now

we

think of
as

income.

'

national

lars which is the unit of
for

the

dollar

value.

fixed

a

unit

like the yardstick

measure

inch and if

dol¬

as

income,
ured by that fixed unit,
our

the

or

as

If
of

meas¬

100

were

billion dollars and if the 100 bil¬
lion dollars had to be consumed
in. order to keep
at

come

is

there

the national in¬

constant

a

level, where
margin left for the

any

payment of debt or'interest there¬
?'' >"v. -;; V •V
..(

on

The
be

is that there would

answer

margin if the dollar were
really a fixed unit of measure-.
no

The dollar must " be

by

"stretchable"

amount

representing the
required for debt service.
Imagine a new Utopia begin¬
ning with no debt whatsoever
an

sum
.

and

a

say

$100,000

national

small.

income

sumes

new

debt of—let

a

us

us

say

$400,-

000
(government, - corporate and
private debt included) requiring
interest and amortization of $20,000 annually.
This sum would
provide average interest of 3%
per annum and
amortization of
2% per annum so as to pay off

the

in

debt

In

half

order

in

a

century.

obtain

to

that

extra

with which to
service, the $100,000
by which the national in¬
come
was ( measured
must
be
$20,000

meet

money

debt

the

stretched

to

larger

would have

sum

for

shoulders

the

debt

a

ernment told this

omics

with a dollar of lesser pur¬
chasing power and that, I might
add, will not necessarily be a dis¬
years

of

at

Yale

University,

flation,

$120,000

the

but
no

greater

purchasing
power.
The
dollar
would simply be worth 20% less
in purchasing power.
1

quickly get

on

basis

a

difficulty of carrying and
he

constant
ment

•r:

/'

-

■

'

'

ANONYMOUS

AN

reason

duction

for

and

this, I think, is

consumption

of

goods, it is not controlled by
duction

of goods

panded to
lation

a

and

can

pro¬

be

height out of all

ex¬

re¬

to

production. It can also
be supported at almost any height

so

long

mains

the monetary unit

as

re¬

V'":r

"stretchable."

Economists of the past have ad¬
vocated

of

means

their

debtless

a

curbing

society as a
this evil but

ideas

along that line have
never.met with .any measure of

approval.

popular

Personally

I

an

officials

to

take

allowing

artificially

the

have

three
all

danger

of

which

a

fixed

value could
In

our

income

be established.'

an

evil rather than otherwise.

uncontrolled

ates

a

of

the

policy of

not launch out

Corporation

declared

was

June

payable

in

economy
on

stock¬

one

virtues

stern

worded
tration

toward

of the

attitude
x

the

Adminis¬

arch-traitor

held

the

debt

down

to

about

a

to
re¬

The

for

so

long that but few of

us

re¬

one-third

member the time when Thrift and

tional

Self-Denial

that

of

$16,000,000,000

today

and

na¬

The

of

were

virtues.

What

selling the majority of

considerably less.
per capita debt in 1919 was
$240. At the present time it is

now?

The

homely virtues
compared to

have little appeal as

promises of Cradle-to-Grave Se¬
curity.

The

cynicism of Harry
American Rasputin,

To

$1,000

and eventually

be from $2,200 to $2,500.
date

inflation

has not

seri¬

ously affected the employed mem¬
bers of American society, as the
rise
a

in wages, and

salaries has, in

majority of instances, more than

the

Federal

In¬

claim such

authorities

credit

require

evi¬

Company's office
Toronto.

occupied

Canadian

Bank

this

Control

oi

into

sending

cept

ELECTRIC

*33 Pine Street
of

Board

cur-'

ioreign

this

cents

business
be

will

May 26,

mailed

by

G.

Foreign

as

the

above

divi¬

the official
by

rate

and

Exchange

noted

current

risk

may

dividend

and

expense,

By

order of
W.

>6

share

per

Control

Board.

convert

by

the amount

sending

coupons,

at
their
dividend

or

Church

Toronto,
12th

record

J.

the

Board,

WHITLING,

Secretary.

Street,

Canada.

May,

1943.

1943.
Trust

Bankers

SMITH,

at

Control

New York City, which will ac¬
ior collection througn an authorized
direct to any authorized dealer of the

Y., Transfer Agent.
H.

risk

own

States

current

currency

Exchange

Bank.

United

the

Street,
or

day

the Company/pay¬

1943, to stockholders of

close of

tnelr

the
of

that this action is not prohibited by the For.
eign
Exchange
Control
Regulations
of
the
Country in which they reside.

★

has

States

foreign

at

Cnartered

in

Amount

cheques properly endorsed, to Tiie Royal Bank
of Canada, King and Church Streets, Branch,
ioronto,
Canada, or to any other authorized
dealer or to The Agency of The Royal Bank
of Canada, 88 William Street, New York City,
U.
S.
A., with a request for a draft in such
foreign currency as is permitted in settlement
of same, but they should first satisfy themselves

New York, N.Y*

dividend of fifty

able June 9,

Checks

such

Shareholders residing in countries other than
United States to whom payment is riot pro-

BOAT

Directors

Capital Stock of

Co., N.

payable

the

COMPANY

the

into

residing

the

United

them

mbifed

at

amounts

expense,
cou¬
pons, or dividend cheques properly endorsed, to
i'he Agency of The Royal Bank of
Canada, 68

of

the

rates

Canadian

any

convert

own

on

all

of

non-residents of Canada may con¬
dividend at current Canadian Foreign

Canadian

a

;
of

pro¬

as are permitted by the General
Regu.ations of the Canadian Foreign Exchange Control
Board.
Such
oonversion
can
only be effected
through an authorized dearer i.e., a Canadian

MAKERS OF PHILLIES

declared

is

mem.

dealer,

The

countries
•

.

William

★

the

or

Canada,

enemy

Exchange

TREASURER

Every Day!

Treasurer.

14,

1.

1943.

Mind your own business and
have plenty of it.

2.

May

Don't bite off

TEXAS GULF SULPHUR COMPANY

can

than you

more

chew.

Board
of

capital

50

holders
June

of

1,

>

of

record

has

the

at

3.

Tackle

4.

Make your decisions promptly
and don't fear the outcome.
Learn to delegate part of your
work and responsibility.
Don't stake too much

declared

share on
June 15,

per

payable

divi¬

5.

Directors

cents

stock,

Company's

6.

The
dend

the

a

1913,

to stock¬
of
business

close

1943.
■

.;

H. F. J.

THE

KNOBLOCH,

ALABAMA

GREAT

RAILROAD

Treasurer.

COMPANY

7.

Washington, D. C., May 19th. 1943.
dividend of $4.50 per share on the Pre¬
ferred Stock of The Alabama Great Southern
Railroad
Company has been declared payable
June

close
A

26,
of

1943, to
business

dividend

nary

Stock

1943.

to

business

of

has

stockholders

1,

at

the

of

record

at

the

close

c.

e.

a.

increased

tax

is

creating

in

Don't

9.

Don't

McCarthy.
Secretary.

proportion to

war

debt

situation

10.

Forget

war

The
credit
of
are

if not

fears

for

implied in

Gov.

Stassen

soon

be adopted

11.

Keep

and

secured.

failing.
the*

unat¬

undervalue

what

you

the people

don't

you

sense

of

sense

your

humor

of propor¬

tion.
12.

Forget

yesterday.

It's

gone

forever.

costs

Don't

that

dread

tomorrow.

It

isn't here yet.

—Channing Pollock.

corrected.

statements

Dr. Moulton

Fiscal poli¬

quiet them should

before the next Gov¬

subscriptions

"man in the street"

afraid of

overvalue

your

and

costs.

ernment loan in September if in¬
creased

be

Government

the

gaining ground.

cies that would

suc¬

like.

will be beyond control at the end
of the

on

,

13.
a

time.

a

have.

and

living

job at

tainable.

of

The reluctance of the Government
to

Don't

8.

1943.

Vice-President

balanced

record

June
1.
1943.
$4.50 per share on the Ordi
been declared payable June 26.

s*Qckholders
June

of

one

cess.

SOUTHERN

A

wealth

than

oi;

dend

eleven

years later.
Serious infla¬
gospel of Rights and Free¬
doms as opposed to Duties and tion, however, followed the end¬
The national in¬
Responsibilities has been preached ing of the war.
come during this period was about
by a master of political language
:

the

of

Shareholders

of extrava¬

$25,482,000,000 in 1919 with
duction

John L. Lewis in time of war!

national

tax

against

States
to

deduction

from

may

and does

of

United

In order

States

the

Bank

Branca

initi¬

Coolidge the debt of the United States was
seem unlikely.
The cost
Compare the Bos¬ around $1,000,000,000.
ton police strike and its handling of this war has been estimated at
in peace time with the weasel- $40,000,000,000.
Heavy taxation
the

to

of

allowable

rencics

war

or

their

on

ail
by

payment

the United
States
the Canadian tax

in

is

shareholders.
accompany

for

credit for

a

source

return..

secured

vert

May 31,

May lk 1913

properly accents the gance along the line of social se¬
and cour¬ curity.
age in facing our fiscal future as
Dr. Harold G. Moulton of the
a
nation.
That is an axiom, but
Brookings Institution has just re¬
on that requisite I fear our future
leased a study of the "New Philo¬
holds little hope.
sophy of Public Debt" in which he
This country started as a Re¬
contrasts the traditional way of
public, with checks and balances
dealing with unbalanced budgets,
carefully designed to protect it
by * cutting
down
Government
from demagogic manipulation of
costs and raising taxes, and the
the unthinking mass of the elec¬
modern
conception that
deficit
torate.v It is now formally almost
spending
produces, an
era
of
a
pure
Democracy and actually
economic prosperity.
practically a dictatorship.
Ten
The cost of the Civil War, reck¬
years of a Chief Executive who
is admittedly not a good execu¬ oned between 1861 and 1868, was
tive—who is a master of dema¬ slightly more than $4,000,000,000,
The public
gogic appeal—lacking in personal or $120 per capita.

deducted

(c) Other

Checks will be mailed.

for honesty

need

be

will

must

resident

that

United

ja

to

15, 1943, to

1943.

inflation

Government

of

(b) Payment thereof to
residents
of
other
portions oi Continental Europe or of the French
Empire and Cnnia is prohibited but sum resi¬
dents
may
direct
the deposit to their
credit

se¬

His thesis

basic

present estimated annual Hopkins, our
of One Hundred Billion'in the, remark attributed to him:




the Common

on

It

if the administration then in

control

tax

enemy

war

the end of the

may

debtless

(37'/V)

Pliiladclpliin, Pa.

of

tax

non-resident

hibited,

share

per

a

presented by Dr. Saxon. I might
profess a feeling of confidence in
one question of doubt as to
the country's ability to service it,
the suggestion for a State lottery
and perhaps, begin to reduce it
—not for moral feasobs particu¬
substantially soon after the war
larly,
but
because
observation ends

denial

a

cents

Stock of this

raise

business.

society in
unit of monetary

one-half

and

and

Dominion

Under existing Canadian Regulations;
(a) Payment of this dividend to residents

Every

more

only-

and

buy less. This

holders

of

at

shown

Royal

easy

effects.

the

presented
Canada.

advised

Canadian

evil

The

Certificates
of

thirty-seven

Govern¬
the

of

coupons

be

A dividend of

holders of record

price

account

come

lli

b It till II

BANKER ;
perilously nearer."
thinking ( man of prac¬
Bankers who have been ques¬
tical experience should be able to
tioned on the subject of the na¬
say
"Amen" to the arguments tional debt at
NEW HAMPSHIRE

the electorate the doctrine of self-

the

I

will

of said tax, ior whlcl\
Certificates (Form No. 601 >
in duplicate and the Bank
cashing the coupons will endorse both copies
with a certificate relative to .the deduction and
payment of the tax and return one Certificate
to the Shareholder.
If Forms No. 601 are not
available at local United States banks, they can

curity benefits of a part of their
investment.'If would bring the

lation and most of the fun out of

Nevertheless,

I

obtaining
national in¬

high

of dollars that

come

chance

is

II..

wage levels to rise, thus

think it would take all the specu¬

society

II

Act

Canada.

dividend

the

is

political integrity—and who debt at the end of the war was
that debt represents money cre¬ has constantly stirred up for po¬ $2,675,000,000.
By 1880 this had
ated by artificial means and while litical ends the worst sort of class been reduced to $2,000,000,000. In
it may bear some relation to pro¬ dissention—these make the return 1014, when World War I began,
The

-lb!

tho

1913,

purpose Ownership
must be completed

pay¬

offer

temptation for

of

way

"will

says,

of

Ownership

dence

huge Federal debt.

our

"This,"

cheat

-

i

from

Warrants

period.

all dividend cheques mailed to non-resi¬
shareholders and- the Company's Bankers
deduct the tax when paying coupons to or

for

,

Secretary.

tax

It

that

Tax

Shareholders

I

closed

Share

provides

residents

from

dent

dis¬

war

during

Income

withneld

o£ maxi¬

production after the

insurance policies

'

pay¬

are

-

by

represented

be

will

Bearer

no

residents

why the Government must

bonds,

honest.

•"'

...

are

that a tax of 15% shall be
and deducted at the source on all
dividends payable by Canadian debtors to non¬

W. P. STURTEVANT.
.

of

would

try

to

Company,

shares

May to the 31st day of May,

and

"split"

The

.

is a "horse of another
Lieut.-Commdr. Harold E.

color."

experimental

enough

the

Canada,

books

Transfer

Canada

in the current issue of the

legislation that will make it dis¬

ish

are

of

'

imposed

writer recently

would

we

per

able July 1, 1943 to the holders
of such stock of record at the close
of business June 12, 1943.

$300,000,-

fool¬

dollar unless

honest

,

and
Financial
Chronicle" in connection with in¬

are

patriotic enough to buy bonds
even though they realize that the
bonds may be paid off in future

Stock

mon

"Commercial

ing

people

(15C)

be

share oil the outstanding shares of
the Class "A" and Class "B" Com¬

sight, and which Dr. Olin
Glenn Saxon, Professor of Econ¬

to

I think the American

cents

de-

CANADA,
Streets Branca,

Church

wnose

18th day of

in

was

mum

him.

fifteen

and

at;

to Shareholders of record at
business on the 17th day of May,

of

inclusive

will

However,

the

the figures seems to indicate that in actual
Utopia as¬ experience they are apt to prove

to keep

Then this

of—let

our

on

generation or more, we ought
study and try to understand

of

and

and

The

dend

59

Registered Certificates of the 1929 issue, will bo
made
by cheque, mailed from the otfices of
the Company on the 31st day of May, I9i3.

Company on May
18, 1943, declared a quarterly divi¬

000,000 to $350,000,000,000, which
a former
high official of the Gov¬

next

measure

things of monetary
were

to

income not

goods and services but

have to have this "old debbil

debt"

}

'

"

,

accustomed

are

our

we

1943,

12,

Cyanamid

can

national

reason

view

in

Victory

June

presentation

upon

payment

the close

■'"•

V

issue

Toronto,

COMMON DIVIDEND

income and national wealth.

amount which in turn would low¬

surplus of produc¬

King
The

The Board of Directors of Ameri¬

It

It is

ago.

with

business

of

•

American

Stassen, U.S.N., former Governor
Minnesota, in the first of a se¬
ries of political -articles
in the
"Saturday Evening Post" says one

a

close

1943.

The present debt

double that of

the

at
na¬

1929

THE ROYAL BANK OP

payable July 1, 1943 to
the holders of such stock of record

Drive is coming
tion would accumulate and lower
along a few weeks hence.
'
production
I do not agree with that. Since
by
a
corresponding

otherwise

as

the

outstanding shares of the 5%
Cumulative Preference Stock of the

world.

THE

declared, and that the same
on
or
after the 1st day of
in respect to the shares specified
any Bearer Share Warrants of the
Company

18,

$140,000,000,000 is not so
even
though
nearly

alarming
not

the

financial

AND

1943,

can

consid¬

a

SHAREHOLDERS

rency.
has been
will be payable

DIVIDEND

June,

SPEARE

The prospective size of the

cusses

associate

-business

A

no¬

the word consumed

use

as

duction

and

Company
PREFERENCE

end

Company,

delay.

!
prevent unscrupulous merchants
this from realizing exorbitant profits
conclusion are difficult to put in for the time
being but any at¬
simple language, or in any lan¬ tempt to fix the purchasing pow¬
guage for that matter, but I think er of the dollar at any given level
it might be explained in this
way: through price ceilings is a great

for

reasons

the

Consolidated News Features

"

My

is

us

TO

HOLDERS OF SHARE WARRANTS
is hereby given, that a semi-annual
dividend of 25c per share in Canadian
cur¬
NOTICE

the

CHARLES

tional debt

NOTICE

Imperial Oil Limited
NOTICE

american cyanamid

wrong!

.

trols

DIVIDEND

coun¬

that the

me

Experiment is
toward the fate

way

business and

lous.

a

economics,

the

as

of

its

on

to

For our chil¬
dren's sake I pray God that I am

attempt

any

the minimum level of

My conclusion is that the pur¬ purchasing power which the dol¬
chasing power of money declines lar may reach would be ridicu¬

American

history shows

accumu¬

;

seems

of all Democracies.

lation of debt in recent years will

to guess at

•

the

reach

we

well

NOTICES

■

simple, middle-class

Great
that

V

,

try banker, it

corporate

state;
municipal,
private debt as

and

a

DIVIDEND

seems to sum up our

situation.

(Continued from page 1862)

1875

are

from

the

then to be

Consolidated Textile

Situation Attractive
The

current

solidated

situation

in

Con¬

Textile

Company offers
interesting
possibilities,
accord¬
ing to a memorandum just issued
by J. F. Reilly & Co., Ill Broad¬
way, New York City.
Copies of
this

memorandum

may

be

from the firm upon request.

had

:

w

general feeling that we are bound

Cancellation

is

This

win.

to

reflection

no

upon
either the Republican or
announced on May 12 that the Democratic parties, and least of
United States now has all the plant and machine tools it needs to all upon President Franklin D.
beat the Axis, and as a result 5 to 5% billion dollars' worth of Roosevelt. Having once
been a
contracts for the construction of new war facilities will be re¬ presidential candidate myself, I
examined with a view to their cancellation, said a special dispatch want to definitely emphasize this
to the New York "Times" last week from Washington by John point: World War II is bound to
MacCormac, which continued as>
get into politics even if I or any
$6,500,000,000.
But during the reader of this column were Presi¬
follows:
week ended May 7, when the new dent.
This announcement by the WPB
£ §? ■
today
was
accompanied by a policy began to go into effect,
revocation
orders
halting
$24,Japan or Germany First?
statement emphasizing that the
cancellation and conversion would 945,682 worth of projects were
The
question of whether we
issued.
It was the largest weekly
shall first whip Japan or Ger¬
result not in a lessened but in an
total of stop orders issued this
increased production of war ma¬
many, or go at them both 50-50,
;
Xx. X.k'XXvis already a question of politics.
terial, since the labor and ma¬ year. '
To
indicate'how; the curtail¬
terials released by it would go to
Many Republicans, led by Gen¬
ment
of
facilities
construction
making more munitions instead of
eral MacArthur, are for whipping
could help the war program, WPB
more facilities.
Japan first, or at least giving her
The effect of the decision will pointed out that the major limit¬ 50-50 of the dosage; while most
be to stop work on some new ing factor in the output of mu¬ of
the Democrats,
led by the
nitions has been the scarcity of
facilities now under construction;
President, are for whipping Ger¬
materials.
But
the
materials
to curtail others which are already
many first.
Furthermore, section¬
which will be freed by today's
alism is a factor in this connec¬
producing direct or indirect mili¬
decision, it was said, could be used tion.
The
Pacific
Coast
is
tary goods; and to bar the pur¬
chase of new machine tools, ma¬ up by full two-shift operation of especially fearful of Japan, while
all machines in the metal working
chinery or equipment or the erec¬
the Atlantic Coast is especially
industries as a whole.
There has
tion of new factory buildings un¬
fearful
of
Europe.
The great
been no easing off in the demand
less it has been proven that the
Middle West, led by the Chicago
either for
critical materials
or
work cannot be done by existing
"Tribune," is more or less nonlabor, it was emphasized, for the
facilities.
commital.
Before Pearl Harbor
overall program must be enlarged
During the first three years of
this great section of the country

Board

Production

War

The

it was revealed today,
the United States devoted almost
as much effort to construction and
facilities as it did to the produc¬
tion of arms and munitions. Much
of the manufacturing capacity and
materials which have so far been
used
to
make
machinery and
the

war,

will

equipment

the

guns

of planes,

manufacture

to

and

go

now

v;"'' -v.,"1 v
Another important result of the
decision will be to accelerate the
reconversion to other types of war

tanks.

'

■ ' ■

capacity

plant

of

production

be released
military re¬

which is being or will
due

in

changes

to

quirements.
For

has

the

instance,

nation

now

shell-loading capacity
manufacture

more

reduced.

rather than
j

To make curtailment effective a

new

facilities

committee

review

WPB on which
claimant agencies will be rep¬

will be set up in
all

All orders for

resented.
and

new

those

including

equipment,

tools

approved only by the ArmyNavy Munitions Board,1 must be
now

submitted

after

June

1

WPB

to

will

The only exceptions
foreign construction and

be

"command"

certain

in

necessary

projects
theaters.
WPB

war

of

catalogues
machine

and

inventories

centralize

will

idle

or

available

tools

against which all
proposals for new facilities will be
checked

they

determine. whether

to

essential.

are

.

;

and facilities for the

it
with
those which had been equipped to
make light tanks, will
be con¬
verted.
So far, in fact, has this
The New York Society of Se¬
process already gone that some
$3,500,000,000 worth of shell, gun curity Analysts, Incorporated, will
of

types of artillery than

some

Annual
Meeting And Election

been

orders

and replaced by

canceled
for

have

contracts

tank

and

NY Analysis

Such plants, together

needs.

and airplane and
mobile artillery and

airplanes

ship

parts,

pointed out that, in ad¬
dition, considerable capacity will
be made available for conversion
was

from

production

military

to

indirect military

at 1 p.m.,

York

on

elec¬
Friday, May 28,

at 56 Broad Street, New

slate

The following

City.

President: Lucien

Hooper
Vice-President: Pierre Bretey

Miller

Secretary:

Oscar

Treasurer:

Lancaster

Greene

use.

Board of Directors: B. Seth See-

empha¬
the cancellation; and
would not mean the

civilian.or

ley, Schroeder Boulton, and Wil¬
liam Loss.1 Other members of the

In this connection it was

that

sized

tion of officers

will be voted upon:'

tank destroyers.It

hold its annual meeting and

conversion

diversion to civilian

goods of any

Benjamin
Graham,
Tatham, Jr. and C. J.

Board

Vanderhyde whose terms run un¬
action, it was pointed til May 1944.
out, reflects a profound change in
Following the annual meeting
the nation's machine tool situa¬
and
election of officers, several
tion.
Since the beginning of 1939
members of the Society will out¬
Today's

United

States

has

virtually

doubled its stock of machine tools.
V

As for new factories, the total
of
all
Federally-financed

line their views
tions"

which

on

have

"special situa¬
come

to

their

attention.

that at
the regular luncheon meeting to
Feb.
28
at
$15,100,000,000,
of
be held
May 21, John W. Mcwhich nearly $4,000,000,000 had
been completed and almost an¬ Inerney of Wood, Walker & Co.
new

facilities stood on

industrial

other

$7,000,000,000 was sched¬
be
completed by the

uled

to

The bal¬

middle of this summer.
ance

was

supposed to be finished

Actually the remaining factories
somewhat behind this sched¬

are

ule, which makes it possible to lop
off a
little more
than $5,000,000,000 from the total.
This will
be feasible, it was explained, be¬
machine

about

the

tool

easiest

to

plants

are

Convert

to

other production.
The

in

labors
men

of

rate

1942

at

of

nearly

and at

tween

one

20%

nation's steel
struction
cent

been

facility expansion
peak required the

its

million

time diverted be¬

and

24%

of

the

to

the

con¬

output

field.

months

three

Even

during

authorizations

running at

an

re¬

have

annual rate of




etc.

announces

lines,

■

May

24 Benjamin

will speak on The Bond

Approach to

by the end of the year.

cause

Society

will discuss the Rock Island

On

a

Graham

Investor's

Stock Program.

Capital stock of the American
Turf Association offers'an attrac¬

investment

current levels

speculation

at

according to an in¬

teresting memorandum issued by
The Bankers Bond Co., Inc., Ken¬
tucky Home Life Building, Louis¬
ville, Ky.
randum

Notes,"

Conies of this memo¬
together
with
"Local

containing quotations on

stocks and comment on several is¬
sues

which the Bankers Bond Co.

believes offer interesting

possibil-

{ties at this time may be had from

the firm upon

request..

These

policy.

might favor an invasion

sluggish in contrast with activity
attending
the offering
of last
week's $50,985,000 of new securi¬
ties which included- $38,000,000 of
Public Service Company of In¬
diana first mortgage 3V4S and $7,of the John Morrell

ing firm.

to

All

delay a
effort until after the

war

These are only 18

1944 elections.

and 18 months will

months away,
go

to

tend

will

this

100%

This

Results in Delay

Uncertainty

In view of the
and disagreements

rapidly.

very

uncertainties

above, such delays
inevitable.
The nearer we

outlined

pulling

when

that

chestnuts out of the fire we

pulling

England's.

out

our
also

Per¬

until January, 1945, at the

earliest.

this

mean

my

workers,
transportation
companies and other groups which
mendous
debt
of
gratitude to have been prospering from the
England, and am not at all sym¬ war are justified in planning on a
pathetic ' with
this x group
of honeymoon of at least 18 months
"America Firsters."
In order to
longer.
It means that business
save ourselves we are obliged to
men and investors who have been
.,

wage

sonally, I believe we owe a tre¬

save

although

England,

we

are

to save the
British Empire.
If after the war
a
vote should be taken on what
we should do for the British Em¬

not in this war, per se,

pire, I am afraid our good Eng¬
cousins
would
be
disap¬

lish

Therefore, this has be¬

pointed.
come

more

less

or

of

a

political

football, with the New Dealers
lining up with the British Empire
and the Republicans playing with
the "America Firsters'" program.

suffering from the war must con¬
tinue
in their present situation
for at least 18 months longer.
On

global war is
going to end so suddenly as
War I.

did World

will

be

as

The final end

enough in ad¬
to allow for discount¬
far

seen

so

vance

event.
Therefore, those
interests now prospering with the
the

ing

war

will

Willkie, taking a
the door and
feeling
global viewpoint;
while another spectacular .Repub¬ likewise in advance.
lican, Clare Boothe Luce, backed
by untold millions, seems to be for
grabbing all we can for our¬

Wendell
broad-minded,

Strangulation?

or

Perhaps the most important po¬
struggle will develop in
connection with the policy to be
litical

used

bringng Germany to her

in

around

involving an

town at the moment

bed, or divan, which
enterprising salesman, who has
set himself up in the Stock Ex¬
oscillating

an

offering

is

building,

to

Wall Street as something new.

Reports have it that the Stock
for

eral

purchased

has

Exchange

in

use

sev¬

rest

own

The sad part of it all is

rooms.

presumably

that,

its

the available

supply is limited and what with

priorities, renewals are not like¬
ly to

be large or frequent.

gadget is explained as an
electrically operated affair, of the
The

mechanical
described
a

real

such

"lift"

as

type, and is

massage

as

some

affording the user
after a trying day
of those recent 2,-

000,000 share sessions constituted
for none-too-heavily staffed bro¬
kerage houses.

;

Needed

Public Buying

chipper—

Individuals

(Continued from page 1859)
ripe for exploita¬

period.

has
been
the im¬ greatly expanded, plant layout
invasion of Europe, and I improved,
and plant efficiency
Plant

non-banking

other
certain,

according to

bought $3,000,000,drive, but this, says

000 in the last

metals—seem

7.

is

sources,

the Federal Reserve Board.

This Thing Might Last
Five To Ten Years
tion in the post-war

and

public

capacity

the Board,
tion

is not enough if infla¬
check.

is to be kept in

shows

statement

banks

added

bank

week's

this

Meanwhile

that

almost

a

member

billion

of

government bonds, and approxi¬
mately $400,000,000 of Treasury
bills, in the period.

One group favors

knees.

mediate
assume

that

President

plans.
of

Roosevelt generally

Millions of

increased.

immediate inva¬

workers have been trained in new

By Europe I mean the
the Continent itself.

Finland Is Expected

bigger job faster and cheaper than

is back of these
sion

One

much joshing

is

There

liquidate before
Broadening of the Treasury's
while those
next
war
loan drive to
induce
are
now
in the dog house
greater buying by the individual
be sticking their heads out

1944,

Invasion

standing debt.
Wall Street Tries A New

will begin to

who

leading Republican candidate for

selves.

the road's request,

on

the 18 months are up;

complicated by the

This is further

all groups should

the other hand,

remember that this
not

approval

proviso that the car¬
rier would apply an equivalent
amount to the reduction of its

that farmers,

It means

readers?

to

of

$5,200,000

sell

and

Commission put its stamp

The

change

.

does

What

issue

equipment trust certificates.

but with the

fore, it seems to me as a statis¬
tician that we will not have world
peace

&

to

ap¬

There¬

1944.

the re¬

on

of the Chesapeake
Ohio Railway for authority

cent request

of

Certainly, unless a real

November,

made plain in con¬

was

nection with action

are

proach the time of elections the
easier it will be to leave many de¬
cisions until after the elections.

before

Some seem to

pendently enough.

.

Stand

England, Turkey
The Interstate Commerce Com¬
gradually bomb mission evidently is adamant in
daylights out of Germany. its determination to see that the
They also favor the same policy railroads, as far as the Federal
as to Japan.
As a student of po¬ agency has it in its power to so
litical history, I know it is in¬
direct, continue to apply part of
evitable that this problem will get current large earnings to retire¬
into United States politics.
ment of outstanding indebtedness.

Then, this country is divided as
whether we are acting inde¬

regret

•

I.C.C. Persistent in

the

'■

"

of 3 per cent debentures
& Co., pack¬

500,000

Russia, Norway,
and Africa, and

Taking Norway is not invading
Europe.
Certainly, if this is not
the
intention
of the
Roosevelt

has been de¬
ceiving the American people.
It
is generally assumed that the real
invasion jumping off points will
be England, Norway, Africa and
Turkey.
The invasion may be
centered at one point or scattered
over
several points.
I am not a
military man and am unable to
comment on this problem.
I do,

Administration,

it

however, understand that the Ad¬
ministration favors working

100%
This

skills.

To

Pay On War Debt

The Finnish Government is

before.

ever

8.

Industry is ready to do a

Many companies are paying

ex¬

pected to meet its June payment
its

on

World

War

debt

to

the

buying in or call¬
United
States.
A
moratorium
setting up con¬
which freed Finland from mak¬
tingency reserves at an unprece¬
dented
rate.
Quite
probably ing payments during the last three
American industry will end the years expired in December, and a
war
in the soundest
financial payment is due on June 15. The
interest amounts to $168,945 and
condition in two decades.

off arrearages,

ing their bonds,

,

9.

Some

business

men

are

be¬

would
on

ginning again to think
of what

can

be

project in five
stead of

one or

in terms

done with a new
or

six years, in¬

two.

not

include

any

payment
which

the $8,000,000 principal

the Finnish Government still owes

the United States.
Finland

was

reported

to

have

paid $473,474.30 to the Export-Im¬
port Bank May 1 as interest on
the loan of $24,000,000 granted by

10. Probably
corporate
taxes
England.
Russia and will be lower five years from now
England want, as they are in the than they are now.
the bank during the first FinnishSuch forces are very powerful.
majority. Hence, I admit that an
Russian war in 1940, according to
invasion may come at any time.
They do not spend themselves
Washington advices of May 12 to
Working together they
Some Republicans believe that overnight.
the New York "Times." A loan of
the immediate invasion program could spell a long period of rising
would
Perhaps five to 10 $30,000,000 was made available,
require
an
uncalled-for stock prices.
It has happened before: the advices
sacrifice on the part of our people. years.
said, but only $24,It can
In this belief they may be backed 1921 to 1929, 1932 to 1937.
000,000 was taken up because of
again.—Selected Amer¬
by a majority of the mothers and happen
Xie difficulties of transport.
■
fathers,, sisters and sweethearts of ican Shares, Inc. -

with

Russia

means

doing

and

what

,

..

(Continued from page 1859)

in

fields

bombing

of

series

a

.

Racing Stock Attractive

tive

what it is all about.

invasion

value

The

Republicans
of Nor¬
way or Turkey in order to
get
bombing fields; but their primary
object is to surround Germany
and her conquered countries with

sion

are

Charles

of the facilities.

the

the larger the Army be¬
comes, the more sympathizers the
Republicans will have to their
substitute
strangulation
policy,
rather than the Democratic inva¬
more,

invasion
takes place fairly soon, Germany
then they have been very
and Japan can not be conquered
but in their hearts often wonder

are

for approval.

Report

Further¬

boys in the Army.

the

Since
loyal,

isolationist.

largely

was

Reporter's

(Continued from first page)

•

Possible

War Contracts To Be Reviewed For

Our

When Will The Wat End?

Ample Plant, Machine Tools To Beat Axis

US Has

Thursday, May 20, 1943

& FINANCIAL CHRONICLE

THE COMMERCIAL

1876

Volume 157

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

to

Municipal News & Notes
Gasoline

for

collections

tax

Rhode

Island

is

of several

one

much

as

might realize

February and March in 16 Eastern

States enacting

their

States indicate the effect of

ing a
help

Federal

pleasure

on

driving

ban

a

State

on

legislation allow¬
local housing authority to
a
neighboring community
its housing problems.
The

with

Rhode Island law allows extension

would

of

ment

February

and

.

March

,

collec¬

tions for January and February

driving

in

13

44.7

were

Eastern

and

44.2%,

States
respec-

months in 1942, according

same

to

the

Federation of

Ad¬

Tax

ministrators.

'

'

Since the ban

pleasure driv¬
ing in these States was in effect
on

during
January
and
February
only, the figures give a picture of
reduction

a

which

in

State

revenues

might result from a nation¬

wide ban.
For

;:

46

the

of

remainder

the

States reporting gas tax collec¬
tions to the Federation,
tions for

for

the

were

below figures

only 38 and 29%

The

collec¬

months

two

the

when

reductions,
since

collections

the

gasoline

rationing program was instituted
a
year ago, would indicate that
gas tax revenue losses because of
rationing were leveling off and
stabilizing at between 30 and 40%
under collections before rationing.
Following

figures showing

are

monthly decreases in State gaso¬
comparison

line tax collections in

months

to collections of the same

of the

previous year:
July

June
40

States

27

-16 %

13

—

—187s

-11

unrationed

1ft rationed

Nov.

Oct.

—17%
—11

—32

—34

rationed
Dec.

Jatt.

.

fiscal

formed

that

the

is

"some

validity" for
the argument that elimination of
tax exemption on existing secur¬
ity
issues
would
be
breaking
faith

with

those

who

chased them.
been

strained

It

is

bonds

—22
•—44

—

rationed

States.

**Newly-rationed States.
♦♦♦Originally-rationed States.

in

conflict,"

in

the

the

sixth

Legislatures Enact
Housing Measures
Legislatures,

of

number

facilitate

laws

the

of

this

and

year

to

housing

of

others

in

con¬

legislation, according

National

Association

to
of

initiation of housing programs,
relaxes restrictions
to
permit
workers to live in low-rent

projects, and authorizes exten¬

by the; gradual process of re¬
funding and re-issue can these
obligations be made fully tax¬
'

immunity
bonds
is

line

of

out

tempts

pointed
and

of

number

a

the

twenties

at¬

made to get Con¬

were

gressional authorization of

con¬

legal impediments to the

away

elimination
that

all

More

of

efforts

recent

directed

exemption,

a

dozeft

another

States

year

ex¬

or

for

but

unsuccessful.

were

have

been

toward

obtaining action
by Congress which would present
the issue squarely to the Supreme
Court.
It

noted

was

that

immunity

tion

the

of

of the war,

State

to house

workers in localities

the

from

property

strumentalities

the duration

of

re¬

taxa¬

and

in¬

Federal

and

while

the au¬
thority of local housing bodies to
develop and administer projects
war

governments

recognized

exempt

in

In

1940

or

1941, terminate next

Included among States

extend¬

ing such war-housing acts were
Arkansas, Florida, Indiana, Mary¬
land, Nebraska, New Mexico, New
York, North Carolina, North Da¬
kota,
Oregon,
Tennessee
and
Washington.
Maine, Nevada and South Da¬
kota

were

passing
local

legislation

participation

low-cost

the

among

States

authorizing

in

housing

war

and

programs;

away

The

authorizing

relaxing

tial.

At

1942

and proposed

estimated

levels

$275,0p0,000
tee said.

of

revenue

to

exemption

the

is

In recent years, State and lo¬
cal bond issues have amounted to

about

$1,000,000,000
future

a year and if

were

State

excellent

an

mar¬

municipal
issues, the committee said that the

first

the

in

interest
to

year

policies

the

delegation and permanent chairman of the
purpose of the meeting was to further the

Atlantic

'• '.■/

charter,^.

period.

The President expressed
unable

but

On Local Utilities
Increased

(Continued from page 186$)

utilities
nance

obtain

to

to

revenues

fi¬

recently by the Inter¬
City Managers Associa¬

national
tion.

The

following

cities, ac¬
cording to the Association, are
among those levying new taxes
on
utilities during the last year
two:

or

to

tions,

City, Mo., expects to
approximately
$1,130,000
during the 1943 fiscal year from
newly
adopted
taxes
on
local
The

city

expects

$420,000 from

to

on gross

.

Pa«TH,io
This

j

similar

a

on

street

the

on

be

free

to

of

3% tax

the

per

and $106,-

bus

on

reve¬

street railway

com¬

telephone

company

oper¬

ating in the city, while Wenatchee, Wash., obtained nearly $12,000
during the first fiscal year
2%

a

tax

and

company

the

on

3%

a

telephone

tax

local power company.
A 2% franchise tax

the

on

levied

re¬

El Paso, Tex., on the
telephone
company
will,
by

local

.

a recent issue of Brevits.
of the six bull markets since 1903

up to but not including the- pr£sent one,
the shortest lasted/' 23
months and the longest ran/* 70
m0nths. In
contrast, the present

,T

Na-

common

we
enemy. To-

working

are

live

men

their

out

to

bull market has

shall

lives

in

prosperity and security.

"The broad objectives for which
work have been stated in the

21

American

re¬

1942.

It is the

this

conference

best

to

to

purpose

consider

of

how

under way

that,

spon-

the basis
| 0f historical precedent, the current
.

bull

market

on

"is

still

in

early youth."

Charter, the Declaration
Nations, and at the

of the

concludes

Sor

United

meeting

been

only 12 months. Hence, the

its

;

.

W. L. Morgan &

Co. (Real Es¬
Philadelphia)—
1943, Wellington

tate

Trust Bldg.,

On

April

30,
completed its 14th year of
operations.
Present stockholders
Fund

policies in
they concern the con¬
sumption, production and distri¬

number

bution

resources

tural

and total dividend distributions to

further

far

so

these

as

of food and other agricul¬
products in the post-war pe¬

which

ing

the

four

for all

won

that

each

upon

from

fighting and work¬

are

we

freedoms

must

be

We know, too,

men.

freedom

is dependent
others;
that freedom
fear, for example, cannot be

the

secured

without

If

want.

nation

we

freedom
to

are

from

succeed, each

individually,

and

all

na¬

all necessary

include

exceed

now

exceed

*

$9,000,000

$2,200,000.

*

*

Selected Investments

Company
(135 South La Salle Street, Chi¬
cago)—To illustrate the readiness
with

which

American

the

points
the

load

Shares

favorable

a

fund

has

in

Selected

on

is

made

market,

that

out

this

the

made

past

up

in

up

sponsor

its

year

load

times.

seven

tions collectively, must undertake
these responsibilities.

"They must take

and

trustees, labor unions,
hospitals and universities.
Total

shareholders

riod.

6,500

over

churches,

"We know that in the world for

St. Louis last December adopted
5% tax on the gross receipts of

v..',

*

kets" in

'

we

pany.

cently

,

United

publics at Rio de Janeiro in Jan¬

street

*

Massachusetts Distributors. Inc.

Together,

uary,

local

passenger,

a

TT

.

4%

$57,000

*'

in

gas

of 1 mill

company

car

000 from

from

.

first

world in which

a

„

we

fighting a
gether, also,

build

.

a

company;

tax

railway

a

,.

its

on

from

income of the local

gross

a

tax

$256,000

an aV6rage yearly

hindrances

letter follows

■«.

+r,

3re

dustrial use, of the local power
and
light
company;
$290,000

nue

.

s

the

is

of

from

,,

The President

income, except income from in¬

company;

' gain

?r„gro"P °f citizens from obtain- (m Devonshire Street, Boston)Snh »e
necessary for Discusses "Length of Bull Mar-

Atlantic

from

I

no

^.in® dividends,

The Period covered is

April 30, 1938, to Aprd 30,
J943* Percentage gam amounted

h

receive

5% tax

a

he would

t0Jrevey any {J*®

nr

peace,

utilities.

on

^ $4>549.

delegates

them.

to it that

see

Bullock (1 Wall
Street,
York)—Five-year record of

a-^I?ses.J»aiI^iinc

was

the

tions. conference.

Kansas

tax

meet

rising costs of Government

noted

was

able

Calvin

New

;v,M $10,000 investment (at net 'asset
value) in Dividend Shares shows

Mr. Roosevelt urged that all 11a-

local

on

y:';y'MI''-

■

•

regret

matters, he

war

welcome

hoped that later

be

of taxes

use

to

' ■'

Investment Trusts

ference of the 21 American repub¬
lics insofar as they concern the

that, due to

Dividends

American Business Shares, Inc.
dividend of $0.06 per share

—A

city officials believe, increase by

steps to develop world food

pro¬

payable June 1 to stock of record

100%

the

duction

ade¬

May 17, 1943.

from

this

2%

tax

revenue

on

obtained

now

by

source

existing

an

sales.

gross

Another

Missouri

community,
Heights, expects to re¬
$10,000 this year from a 2%

Richmond
ceive

tax levied

on utility companies in
December, 1941.
Hornell, N. Y.,
also anticipated receiving $10,000
this year from a 1% utility tax
levied last July.

of

Results

taxes

levied

on

utilities by several Texas cities,
in

addition

to

El

Paso,

within

the last two years was reported

the Association.

by
a

year

Waco, for

obtains about $33,000
from a street rental

charge against local

light,

telephone

panies;

the

power

and

charge

gas

and

com¬

levied

was

in August, 1941.

tax

a

against

2%
the

service

company

around

$17,000

August,

1942,

revenue

October,

gross

local

electric

enacted

to

Among other Texas cities levy¬
ing taxes on local utilities are

Denison, Galveston, McAllen and
Sweetwater, with revenues rang¬
ing from $52,000 in Galveston

from

a

gross

to
a

power

receipts tax

about

2%

and

$6,000

be

tional needs of the world popula¬
tion.
And they must see to it that

hindrances, whether of inter¬
trade,
of
transporta¬

no

national

tion

of

or

distribu¬

internal

was

by

bers

The

nutrition.

quate
with

minimum

the

least

at

which

of

are

will

the most funda¬

human

all

problems—

for without food and clothing

life

itself is impossible.
this

other United

and

Na¬

tending

we

shall be

ex¬

fields.

from

Only by working together
learn

can

we

and

work

will."
An

of

collaboration

our

problems into important new

war

\

to

work

together,

together we must and
«

item

the

these

appeared

conference

columns

of

in

April 29, page

28

due

exceeding

2%

Bridge

refundings,

due

.

<

for

to

D.

the

Iongh,
Nether¬

in

Iongh had been conferring
Treasury officials
Washington on American pro¬
a

week with

posals

to

set

up

international
tion fund.

a

$5,000,000,000
stabiliza¬

currency

-

.

;

;

Secretary of the Treasury Morgenthau has invited 37 nations to

21

Washington to
discuss the plan informally and to
make suggestions for changes. The
talks, it was emphasized, are for
the purpose of getting the views
of other nations.

exceeding 3%%

refundings, due 1983.

*;

Harry D. White, the Treasury's
director
of
monetary
research
with

developing
the
revealed on April

American plan,

27 that earlier talks with a Cana¬
dian

delegation had proved "very
satisfactory." Mr. White said the

the

with

by

Canadian

the

W.

A.

Dominion's

points"
posals.
nicians

group,

Mackintosh of
Department
of

had
the

"clarified
many
stabilization pro¬

groups

of financial tech¬
return later to

in

plan

to

continue the informal discussions.
The Treasury

District, Calif.
Not

send technicians to

Finance,
Jan.-

$13,815,000 Imperial Irrigation

»

Crena

adviser

Government in exile.

Both
June

1944-1971.

expressed earlier this

Dr.

Dr.

headed

.//vyyiV

July, 1944-1953.

Scheduled

4s.

lands

talks
May

Major Sales

Refunding

financial

stabilizing

credited

regarding the agenda

1591.

Not

26

for

,

tions conferences

$4,178,000 Alabama

.May

plan

problems

conference

this

itself

concern

mental

ade¬

Finance Corp.

$1,024,000 Fort Lauderdale, Fla.

satisfactory

month

light

companies.

a

Nations

Denison
gross income tax on
telephone

that

to make available to all its mem¬

in

and

Confidence

world cur¬
rencies in the post-war era could **
be
agreed upon by the United

utili¬

on

Treasury Opees Talks
On Currency Plans

tion, be allowed to prevent any
nation or group of citizens with¬
in a nation from
obtaining the
food necessary for health. Society
must meet in full its obligation

1 lk %

a

expected

produce $11,500 annually from the
local gas service company.

from

will

revenue

which brings in
a
year
and
in

tax

it

that

so

quate to meet the essential nutri¬

"In

Wichita Falls has since

1941, levied

payments

only $5,000,000
and eventually

of

earlier

eliminated

and

Jones,

S.

agricultural products.

gross

business

U.

ket and considerable advantage
over
most other bonds in that

ties

in




do

a year, the commit¬

amount

war

of

from

increase

by

there
to

Treasury rates, the

loss

Government

would

occupancy

efforts

at stake in the tax-

revenue

to

permit

however,

tax.

exempt security issue is substan¬

of low-cost housing restrictions
workers.

been

with the exemption.

from

enacted

has

income

recent

tax-exemption

Vermont

the

Argentina,

Montana

and

been

the

the Declaration of United Nations,
and the 1942 Rio de Janeiro con¬

constitutions

bonds

from

legislatures of Arizona, Georgia,
measures

the

Government

have been

.

in

has

of Australia, Canada and Brazil,
in Argentina interest on

where
housing shortages exist.
Many of the existing laws, enacted

Dec.. 31.

was

of

post-war consumption, production

example,

ciprocal

than

tended, for

tax¬

long

a

it

as

the

thirties

by

procedure,

said,
in

and

State

Federal

from

legal

that

early

of

protected

committee

sion of housing authority juris¬

dictions.

mu¬

Chairman

conference, said that the

and distribution of food and other

every

:'

stitutional amendments to clear

Housing Officials, extends ex¬
isting war-housing laws, allows

unlikely,

The United Nations Conference on Food and
Agriculture, with
representatives from 45 nations in attendance, opened at Hot
Springs,
Va., on May 18.
-'">7 7.":';,; y v-.-'•
President Roosevelt, in a message read by Judge Marvin

commanded

ar¬

issues, the Government ; is
bound by contract, and that only

ation

areas.

More

said

eral

local

mindful

proper

workers

war

the

of

series

a

''if:

The

housing
problems
which
have
hampered the war effort, enacted

the

of

committee

of

able.

The

base

—36

Mar.

fis¬

or

federal income tax which is most

States***

—29%

gested

State and

on

the

in

secur¬

proposal to

15

—44

war

many

-25

—38%

a

for

the

include the interest
local

relations

the tax-exempt

over

operations

Roosevelt Urges Food Conference To
Develop
World Production To Meet Nutritional Heeds

developed and that their bonds

telephone

"Intergovernmental

The committee pointed out that
in the case of outstanding Fed¬

—35

State

pur¬

ticles.

States***

War

had

—32

16

State

in¬

has

Treasury Department

there

municipalities
fatal impedi¬

a

tage before the income tax

intergovern

on

relations

—34%

30 States**

* All

committee

States**

39 States*

Feb.

States*

Efforts

24

-

States***

'■■7

The

credit

raise

3

-10%

States';'

29 States

46

housing

To Abrogate Tax-Free Status

—39

—15

in

funds

Decries Treasury

ity issue.

—21%

Tennessee.

authority bonds.

years

States

and

States made legal the in¬

mental

to

and

this

nicipalities managed very well
without the tax-exempt advan¬

powers

of

States

find

Cities Levy New Taxes

Montana, Arizona and several
vestment

tax

Georgia,

expected to help in providing war
housing for flying fields, military
training fields and isolated areas.
other

to

commit¬

It is said that States and

this year

with respect
of housing
authorities, and the development
and management of projects as is
possessed by cities.
The law is
same

Sept.

unrationed

enacted

the

in

cal interests seems quite
the committee added.

more

establishment

—17

27

or

Arizona law gives coun¬

new

the

to

—26%

40

15

A

ties the

8

—

two

Florida,

Carolina

—24

unrationed

44

North

—24

Aug.
—14%

States

29

of

was

Arkansas,

have

45

13

authorities

by

—15

-22

rationed

cooperation

bonds,"

That

housing authorities in- initiating
and administering a project.
Legislation authorizing the es¬
tablishment of regional housing

months last year.

same

over-all

compared with the general trend
in

tion to nearby communities

for

tively, below collections for the

;'

housing authority's jurisdic¬
which
are in or near war industry areas
but have no housing authorities
of their own. On the other hand,
Arkansas enacted a law providing
a

the States and

were

tee's opinion.

duced

,

a year.

subdivisions allowed

motor

fuel revenues already re¬
substantially by local short¬
ages and the general mileage ra¬
tioning program.
,;

$100,000,000

as

"This loss would be partly off¬
set by any gains which the States

1877

our

plan appeared in

issue of April 8, page

1300.

Thursday, May 20, 1943

CHRONICLE

THE COMMERCIAL & FINANCIAL

1878

Calendar of New Security Flotations:
remaining
75,000
a reasonable
before July 17,
1943, without the consent of the under¬
writers of the 395,178 shares.
The 395,178
shares
being offered initially are shares
issued and outstanding, of which 325,000
shares are held by the City Company of
New
York,
Inc.,
in
dissolution;
53,691
shares by the National City Bank of New
York,
and
16,487
by Avery Rockefeller
and the National City Bank of New York

Flintkote

15,1958,
Plaza, N. Y. City.

Address—30 Rockefeller
Business

directly,

Either

—

registra¬

a

15-year 3%

$3,000,000

for

through

or

subsidiaries, is engaged in the manufacture
account

own

or

asphalt

various

of

sale either for its
for the account of others,
the

in

and

sale,

and

asbestos-cement
structural and

and

roofing and siding products,
decorative insulation board

products,

as¬

boards,

statement

Shields & Co., New York;
Co., St. Louis; Stroud &
Co., Inc., Phila.; Swiss American Corpora¬
tion, New York, and Wertheim & Co., New

the

&

Co.,

York.

N.

Y.;

Offering

—

will

public

the

to

Price

Offered

Lehman

18,
1943,
by
and interest.

May
at

102

SUGAR CORPORATION
West Indies Sugar Corporation has filed
INDIES

WEST
'

registration statement for 470,178 shares
of common stock, par value $1 per share.
The
shares are already issued
and out¬
a

standing.
Address—60 East 42nd St., N.

Y. City.

owning
the
securities of several operating sub¬
sidiaries engaged principally in the pro¬
duction of raw cane sugar and invert and
black strap molasses in the Dominican Re¬
Business—Is

holding

a

company

Hutton

tered

Schoellkopf,

Lee

&

Higginson Corp.,
Co., N. Y.; G. H.

Louis; Wertheim & Co.,

C.,

D.

& Co.,

Noyes

Co„

and

Y.;

N.

Turben & Co.,

Merrill,

offered

as

soon

does not represent new
the company as the shares
already issued and outstanding, and
being offered for the account of three

are
are

as

by

for

ized

Following is
were

S-l

filed less than twenty days ago.

grouped according to the dates on which the registra¬
tion statements will in normal course become effective, that
are

filing except in the case of the secur¬
foreign public authorities which normally

is twenty days after

become effective in seven days.
These dates,

'..y :'y </■? ■,;y,Vy; <y
5:30 p. m. EWT

(3-26-43).

unless otherwise specified,
as per rule 930(b).

are as

of 4:30

of

DELAWARE

OF

Co.

&

Delaware

Street

Address—43rd
Union

&
&

Power

Iowa

Purpose—The trustees are presently act¬
ing as voting trustees for all the issued
capital stock of the corporation under a
voting
trust agreement dated April 24,
1933, which, by its terms, expired March

LIGHT CO.
Light Co. has

filed

a

registration statement for $17,000,000 first
mortgage bonds, 3series due June 1,
1973.

1943.
Under the terms of the voting
certificates,
however,
the
holders
thereof are entitled to exchange their vot¬

31,

trust

■

Address—312

Sixth Avenue, Des

Moines,

Iowa.

Business—Is
the

a

ing trust certificates for certificates of
of the corporation on Aug. 31, 1942.

public utility engaged in
electric service

furnishing

of

business

outside the City of Des
Moines and environs, and in 12 contiguous
counties in Central Iowa, and furnishing
Polk

in

stock
It is

proposed to suggest to the holders of voting
trust
certificates
outstanding
that they

County,

consent

the agreement

to the extension of

Aug. 31, 1947.
Thus, holders of voting
certificates, who do not consent, will

to

service in the City of Des Moines and
environs, and in two municipalities in ad¬

trust

joining counties.,' ■.
'l:;:y ';[}<] ■" * yy...Underwriting—Bonds are to be offered
for sale at competitive bidding under the
rules of the Commission.
Names of the
underwriters will be supplied by post effec¬

their voting

gas

tive

amendment.

,•

.

the
supplied by amendment.
to

Offering—Price

public

be

issued as part
interdependent transactions
which
include
the
acquisition
by Con¬
tinental Gas & Electric Co. of Iowa Power
Proceeds—Bonds are to be

of

a

series

F-l.

(5-13-43).

DATES

Light Co. and Des Moines Electric Light
Power Co.
Proceeds
from the sale of the bonds, together with
&

present below a list of !>«ne«
registration statements were filed
days or more ago, but whose
offering dates have not been deter¬
We

of funds to be received from
aggregating $2,500,000, will be
redeem on Sept. 1, 1943, a total

whose

loans

used

to

twenty

of the com¬
to redeem on
Oct. 1, 1943, 10,133 shares par $100 of the
company's 7% cumulative preferred stock;
to the purchase from Illinois Iowa Power
Co. of $1,750,000 face amount of general
refunding mortgage bonds, Series A, due
1955, and $3,000,000 of open account in¬
$11,232,000

of

mined

amount

face

OF OFFERING

UNDETERMINED

portion

a

for

trust certificates,

of

Co. from Illinois Iowa

bank

exchange

in

Those hold¬
ing voting trust certificates who do con¬
sent to the extension, will continue to hold
their voting
trust certificates subject to
the provisions of the voting trust agree¬
ment,
except
to
extent
provisions are
amended in supplemental agreement.
Registration Statement No. 2-5139. Form

■ \

will

certificates

stock

receive

or

unknown

are

to

us.

pany's first mortgage bonds;

debtedness

of

Des

Moines

Electric

Light

Edward

trust

J.

a

Crawford,
V.

April
date.

trustees,

of

The




of one new
record

subscribe on the part
will expire May
15,

right to

South

and

livestock
animal

stock

make

I

,

the

an

through

is

not

that all of
stock¬
may
endeavor to
the general public

the event

subscribed

company

offering

to

for by

Co.,

packing

.

the

the

processing
and

for

conjunction with their meat packing oper¬
company
and subsidiaries manu¬

ations,

facture

and

butter

various

and

cheese

&

Offering—Company offers to the hold¬
of its outstanding 523,581
shares of
7% guaranteed cumulative preferred stock
ers

of

the

right

of

preferred

of

posited

for

of

the

issue

allotment

of

require

more

to

debentures,

of

debentures

the

of

the total
stock de¬

if

preferred

would

exchange

entire

share

each

for

subject,

held,

shares

the
the
face

$100

of

basis

debentures

stock

number

the

by

com¬

the
underwritten

The debentures not taken upon

pany.

exchange
and

the

on

per share,
shares for

$100

such

exchange

amount

than

of

value

par

to

offer

will

have

been

offered

be

&

.

Boyce,

Brothers

N. Y„ -$1,000,000; Stark¬
N. Y., $150,000; Stein Bros.
$250,000;
Stern

&

to

the

ment

Proceeds

City, $150,000;
Inc., St. Louis,

Kansas

Co.,

$250,000;

Swiss

$7

$250,000;

Union

Nicolaus
Stix

&

at

public

a

Co.,

&

St. Louis, $100,000;
and Blodget, Inc., N. Y.,

&

Co.,

Webster

Inc., Philadelphia,
Corp., N. Y.,
Securities Corp., N. Y.,
$750,000; G. H. Walker & Co., St. Louis,
$250,000; Wertheim & Co.. N. Y., $300,000;
American

Dean

Witter

San

Co.,

&

be

to

1% guar¬
stock of the
company which, with the shares acquired
pursuant to the exchange offer, will retire
$35,000,000 par amount of such preferred
demption

of

amount

par

a

cumulative

anteed

of

y
;yy.'Tv
Registration Statement No. 2-5134. Form
(4-29-43).

.Armour

its

on

y.'yy,:',,

&

amendment

its

proposed

no

;:.-

par.

Worth,

Street,

Fisher

Address—2500-22

Texas.

'

/
of

Business—Manufacture

Fort

'

-t

income

which

the

lists

holders

brick.

face

consists of
2,000
units, each unit consists of four
shares preferred and one share common,
price per unit is $10.
Underwriting—None.
Distribution is to
be made by direct sales by the corporation
of its treasury stock.
Proceeds—Expansion of plant facilities,
installation
of
additional equipment
and
for ■ working capital.
',:>r v;V.■
Registration Statement No. 2-5105. Form
Offering—Present

S-2

offering

(3-5-43).

•

•;

CELOTEX CORPORATION

1'fo

shares

of

ferred

stock

for

of

at

subject

held,

the

p.m.,

June

share

of

allotment
will

to

not

1943.

3,

taken

the

upon

underwriters

of

names

listed

subscribed

N.

Co.,

face

$100

each

for

per

shares I

such
of

basis

The offer to stockholders

3

debentures

The

the

debentures

required.

expire

exchange

to
on

stock

preferred
if

to

guaranteed
the par value of $100

debentures

amount

offers

outstandingcumulative pre¬

523,581

of

right

and

follows:

as

$2,500,000;

Y„

ex¬

with

amounts

Loeb

Kuhn,

First

Boston

Corp., N< Y.f- $1,500,000; A. C. Allyn & Co.,
Inc., Chicago, $500,000; Bacon, Whipple

Chicago,

Co.,

$250,000; Baker, Watts &
Ball, Coons & Co., Cleve¬
G.

Blair,

$600,000;

Y„

Becker

Co.,

&

Bonner

&

Inc.,

Co.,

Chicago, $200,000; Blyth & Co., Inc., N. Y.,
$1,000,000; Alex. Brown & Sons, Baltimore,
$350,000;
cago,

$350,000;
Coffin

E.

&

Byllesby

M.

H.

$200,000;

&

Co.,

Inc.,

Chi¬

Central Republic Co.,

W.

Clark

Inc.,

Burr,

Co.,

Inc.,
$250,000;

Boston,

$300,000;

&

Curtiss, House & Co., Cleveland, $150,000;
Dempsey-Detmer & Co., Chicago, $100,000;
Dick

&

Dominick

Merle-Smith,
&

Y.,

N.

Dominick,

N.

$500,000;

Co., Philadelphia, $600,000; East¬
Dillon
&
Co.,
N.
Y.,
$500,000;

Emanuel &

Co., N. Y,, $200,000; Equitable
N. Y.,
$200,000;
Esta-

Securities

Corp.,

brook

Co.,

&

for

75,000 shares of common
will be offered by the company at $10.50
per share only
to a selected group con¬
sisting of employees of the company, in¬
cluding officers and directors and those
serving
in., a
professional
or
advisory

Boston,

negotiations to augment its working
capital by the issuance and sale of com¬
mon
stock,
a
substantial group of
key

on

$300,000;

company including cer¬
directors, Joined in the
syndicate:with a view to
the
purchase
of a large blook of out¬
standing
common
stock . from
a' single
source
which had indicated a willingness
to sell.
When reasons arose whereby the
proposed purchase could not be1 carried
out, the group acting through the syn¬
dicate
requested the company to afford
the syndicate members,
as well as other
employees, the. opportunity to purchase the
stock of the
company
then proposed to
issue, at a price to net the company the
same
amount as though such stock were
marketed
through then available invest¬
ment banking channels.
The board deter¬
officers

formation

N.

Y., $500,000; Hemphill, Noyes & Co.,
Y., $500,000; Hill & Co., Cincinnati,
$100,000; J. J. B. Hilliard & Son, Louis¬
N.

000; Illinois Company of Chicago, Chicago,
$300,000; Kebbon, McCormick & Co., Chi¬
cago,
$250,000; Kidder, Peabody & Co.,
N. Y., $750,000; Ladenburg, Thalmann &
Co., N. Y., $750,000; W. C. Langley & Co.,
N.
Y„
$300,000;
Lazard
Freres &
Co.,
N.
Y., $750,000; Lee Higginson Corp., N.
Y., $1,000,000; Lehman Brothers, N. Y.,
$1,000,000; Carl M. Loeb, Rhoades & Co.,
N.
Y., $300,000; Mackubin, Legg & Co.,
Baltimore,
$100,000; Laurence M. Marks
&
Co.,
Baltimore,
$200,000;
McDonaldCoolidge & Co., Cleveland, $250,000; Mer¬
rill, Turben & Co., Cleveland, $200,000;
Milwaukee Company, Milwaukee, $250,000;
Moore,
Leonard
&
Lynch,
Pittsburgh,

$150,000;

Boston,
Chicago,
$100,000; Maynard H. Murch & Co., Cleve¬
land, $150,000; Newhard, Cook & Co., St.
F.

S.'

Moseley

Mullaney,

Ross

&

&

Co.,

Co.,

Louis, $150,000;

a

the

be offered

to

of

stock

be

to

the

corporate

purposes.

CELOTEX

Bror

stock

17, 1943, to defer
"

J"

Dahlberg, O. S. Mansell and Andrew
voting trustees, have filed

of

statement

for

for

150,000 shares

Celotex

Corp.

trust

voting
of

no

value.

Offering—(See

statement

Celotex

No.

The
syndicate has formed the
voting trust for the common stock of the

and

company,

forded

to

all

others

statement

be

receive

Additional
with

but

exceed

stock.

;

No.

2-5112)

••

the

voting

shares

deposited upon

trustees,

be af¬
syndicate

trust

of

common

application

consent

of

cer¬

the

of

t(ie

voting

voting trust certificates are
150,000 shares of common
■ /■'_
: .. •
•
<•<
v'
.

Purpose—To form voting trust.
Registration Statement No. 2-5113. Form
F-l (3-24-43).
■ a'O
Amendment filed May 17, 1943, to defer
effective

date.

POWER

Florida

LIGHT

*

CO.

Power

&
Light Co.
$45,000,000
First

reglstereo
Mortgage
bonds, due Oct. 1, 1971; $10,000,000 Sink¬
ing Fund Debentures, due Oct. 1,
1956,
with

SEC

140.000

8tock,

$100

Bonds

and

shares

Pajr.

Cumulative

Interest

Debentures,

the preferred
plied by amendment
on

Address—25

s.

X.

and

stock,

Secopd

Preferred

rates
the

on

the

dividend

will be
Ave.,

sup¬

Miami,

&

Light

subsidiary
(Electric

of

Bond

American
&

Share

are

to

be

used

to

Each note

Proceeds—Will
chase

of

Cushing,

at

located

part pur¬
refining of

the

for

light

oils,

together

with

other

and

kerosene

'gasoline,

for

used

be

refinery

a

in denomi¬

$100, $500 and $1,000.*

nations of $25,

Okla.,

pipelines, tanks, tank cars and inventories.
Registration Statement No. 2-5107, Form
A-2.-

(3-17-43).

••.

Amendment filed May 6,

>

1943, to defer
yV- ■:•'
amendment filed April 5, 1943,

effective
In

date.

an

-i.

to issue 5,000 shares

proposes

non-cumulative preferred stock B,

3

ojt

par

the amount of subordi¬
nated debentures to be issued to $250,000,
the latter to be sold only to company's
and reduces

$100,

stockholders

common

STANDARD
-

Standard

registration
of

common

STEEL
Steel

at $100 per

SPRING

unit.

filed

Co.- has

Spring

218,962

statement for

stock, par value $1

•

!

s"

CO.

•

a

shares
share,

per

evidencing sub¬
respect of such shares i
?:

subscription warrants

and

scription

rights in

of common stock.

•

;

Fourth

Address—843

Business—In

Coraopolis,

Ave.,

Pennsylvania.;y/vv- -V

-V'/'Cy/■

1941, prior to the entry of

country into the war, the principal
products of the company and its whollyowned subsidiary, included steel automo¬

this

truck and tractor leaf springs, auto¬
and truck bumpers, steel gratings
universal joints and assemblies,
propeller shafts, steel spring parts, etc.
Company
now
processes
and
fabricates
armor
plate, produces bomb bodies and
has recently undertaken on a small scale
the plating of certain aircraft parts.
bile,

mobile

and treads,

-

Underwriting—Kuhn,
named

Loeb
underwriter.

principal

underwriters

3

p.

of

May

m.

be

will

amendment.,
Offering—Holders
record

mon

stock

the

at

&
,

1943,

rate' of

is
of
by
-'

Co.

Names

supplied

common

13,

offered rights to subscribe to

the

stock

of

to

be

are

new com¬

one-fifth

of

a

share for each share of common held,

at a
Such
1943.
Unsubscribed stock will be purchased by
the underwriters and offered to the public
at a price to be named by amendment.
price to be supplied by amendment.
rights will expire at 3 p. m. May 24,

the

securities

will

be

from the sale of
to the work¬

added

ing capital of the company.
determine

at

later

may

part of the net proceeds to the prepayment

ting,

Is an operating public utility en¬
principally in generating, transmit¬
distributing and selling eleotric en-

of

all

or

paid

east

$845,000.

(also manufacture and sale of gas)
most of the territory along the
coast of Florida
(with exception oi

due

in

part

of
as

long

a

instalments

balance

a

The company
date to apply

System)
gaged

serving

Arthur Perry & Co.,

The notes 'Will

be issued

Proceeds—Net proceeds

Business—This

*

1

,

of the date of sale.

as

The notes will

date.

ergy

Inc.,
Boston, $150,000; Putnam &■ Co., Hartford,
$500,000;

'

will mature on or before 15 years from its

Fla.

Power

stock¬

associations of farmers.

are

Underwriting—None.
be dated

Wis¬

Dakota,

common

Offering—At -face value.

other'

FLORIDA

South

of -the

85^

More-than

and

North

Iowa,

holders

of Minnesota,

the States

in

consin,

Associations "doing

cooperative

by

business

and

purchase such stock, to
shares
of
common
stock

and

and

to

owned

will

the

who

their

tificates.
holder

members-of

in

thereunder

opportunity

an

the

(mentioned

deposit

filed
registration statement for $500,000 4%
15-year subordinated, debenture notes.
Address—739 Johnson St., N. E., Min¬
neapolis, Minn. :
.*•/•
-y"-'.Vf :rrl:'■ :"
.Business—Registrant is
a
cooperative
association organized under the laws of
Minnesota.
It is a* non-profit association./
All
of
its
common
or
voting
stock is
Midland Cooperative Wholesale has

a

common

stock,

common

WHOLESALE

COOPERATIVE

MIDLAND

Ohio Company, Columbus,
$100,000; Paine, Webber, Jackson & Curtis,
Y.,

and

N. Y., $600,000; Spencer Trask &
N. Y., $600,000; Graham, Parsons &
Philadelphia, $300,000; Hornblower &
Weeks, N. Y., $300,000; Kidder, Peabody &
Co., N. Y„ $300,000; Paine, Webber, Jackf
son
&
Curtis, N. Y., $300,000;
Minot,
Kendall
&
Co., Inc., Boston, .$225,000;
Tucker, Anthony & Co., N, Y„ $200,000;
Biadle, Whelen & Co., Philadelphia, $175,000, and Schirmeiy Atherton & Co., Bos¬
ton, $100,000.

•

2-5112.)

rate

•

.

Co.,

;■

CORPORATION

Dallstream,
registration

and

of

date

to

1943,

1,

Meeds,

company

>

i Amendment filed May
effective date. '

not

accrued

unit, plus

per

May

from

the face amount
bonds to be purchased by each are given
amendment as follows: Laird, Bissell &

of

Statement No. 2-5112. Form

(3-24-43).

may

$1,000

at

1963,

1,

company.

Registration

to

Inc„

delivery.
The underwriters

voting

a

of

other

par

gives the offering price to the
public on its proposed issue of $3,100,000
secured sinking fund 4Va'i. bonds due May

the selected group at a price

share.
The syndicate has
trust for the common
:,'VV
Proceeds—Entire proceeds from the sale
will be received by the company and used
for
additional
working
capital and for

a

v

to
its registration
17, Mercantile Prop¬

statement dated May

should

sold

per

$10.50

formed

stock

certificates

Seattle,
$100,000;
Field,
Cleveland, $150,000; First
Cleveland, $150,000; First
of Michigan Corp., Detroit, $200,000; Glore,
Forgan & Co., N. Y., $750,000; Glover &
MacGregor,
Inc.,
Pittsburgh,
$100,000;
Goldman, Sachs & Co,, N, Y., $1,000,000;
Graham,
Parsons
&
Co.,
Philadelphia,
$200,000; Grubbs, Scott & Co., Pittsburgh,
$100,000; Hallgarten & Co., N. Y., $500,000; Harriman Ripley & Co., Inc., N. Y.,
$1,200,000; Harris, Hall & Co., Inc., Chi¬
cago,
$350,000; Hawley, Shepard & Co.,
Cleveland, $200,000; Hayden, Miller & Coy
Cleveland, $250,000; Hayden, Stone & Co.,
Co.,

Corp.,

and

of

that

mined

Fahey,

Hardgrove,

the

of

employees

A-2

,

'•

(4-29-43).
In
an
amendment

S-l

in

Offering—The

tain

which is

Principal - underwriters
are
Laird, Bissell & Meeds and Spencer
Trask & Co., both of New York City.
Offering—Price
to the public will be
supplied by amendment.
v- '■:
Proceeds—Net proceeds will be used, to¬
gether with any necessary funds from its
treasury, to redeem all of its presents out¬
standing secured sinking fund 5Vi'/c gold
bonds in the face amount of $3,031,000.
Registration Statement No. 2-5135. Form
—

Co.,

..

&

&

the

in

underwrit¬

no

are

rented

New York City, each of
to F. W» Woolworth Co.'

interest

is

material
Underwriting—There

in

■

Street, Chi¬

engaged
business.

building
ers.

common

'

Business—Company

J.

Cleveland

of

111.

cago,

Clark & Co., Cleveland, $100,000; Farwell,
Chapman & Co., Chicago, $200,000; Ferris

Richards

registration

filed a
shares

75,000

value.

par

no

Address—120 South La Salle

$200,000;

Y„

Drexel &
man,

stock,

has

Corp.

statement

capacity and a limited group of persons
statement
having
long
standing
business relations
$35,000,000 7%
with the company to be selected by the
debentures due April 1,
board
of directors.
Statement says that
a nation-wide group
of,
recently, while the company was carrying
The

its

•"

,

two

Business—Owns

erties,

of

company

of

an

'

defer

Street, New York City.
commercial build¬

Address—60 Wall

ings

Underwriting

registration

issue

underwriters.

filed

Delaware

of

Co.

to

.

Fran¬

15,000 shares of com¬

preferred stock and

preferred

stock.

10.

May

,

Celotex

the
net proceeds of the debentures not taken
In
exchange pursuant
to
the exchange
offer, with any other funds in the treas¬
ury
which may be necessary, to the re¬
Proceeds—Company intends to apply

filed

effective aate,

MERCANTILE PROPERTIES, INC.
cisco, $500,000.,
.
.V' V:?.*-:;
Mercantile Properties, Inc., has filed a
registration
statement
for
$3,100,000
Bl'RTONITE CORPORATION
^ '.v'N
secured
sinking
fund 4V2 c/o
bonds clue
Burtonite Corporation has filed a regis¬
May 1, 1963. V
/. .
F'.
tration statement for 10,000 shares of 7%-

by amendment.

fixed

■,

Form

U
1943, to
;

(9-17-411

Amendment

Weeks & Stubbs, Inc., Boston, $250,000; Wisconsin Company, Milwaukee, $500,-

and

post-effective

Registration Statement No. 2-4845.
A2.

ing,

000;

Further de¬

par.
by

no
supplied

be

to

amendment.

Weld & Co., N. Y., $750,000; Whit¬

White,

stock,

preferred

tails

'

price

amendment to registration state¬
1
will
be
applied
as
follows:

effective

Baltimore,

ana

$53,170,000 to redeem at 102 V*, the $62,000.000 of company's First Mortgage 5s of
1954; $15,693,370 to redeem at $110 per
share,
the
142.667 shares of company's

Stifel,

mon,

products.

Underwriting—Kuhn, Loeb & Co., New
York, head the underwriting group. Others
to be supplied by amendment.

debentures

$250,000;

N.

underwriters.

Proceeds—Proceeds

,

slaugther of
of meats and
by-products.
In

for

America

and

products

$500,000;

Underwriting—In
the

corporation

Business—Apartments.

the ratio

in

stockholders

the

holders,
of

1943,

1943.

capital stock, par $1 per share, of Cerana
office

15,

share for each three shares held on

Apartments Corporation.
Address—Executive

general casualty in¬

business.

shares of common stock
are being offered at $10 per share by the
company
to
its
stockholders of
record

1

70 Pine Street, Room 2305, New York City,

Reading,

Offering—The

Walter

Williams,

St.,

Washington

Business—Conducts
surance

McMeekan
have
registration statement for voting
certificates*
for
1,864
shares
of

Howard

Casualty Co. of

a

Pennsylvania.

CERANA APARTMENTS CORPORATION.
and

filed

Address—607

Registration Statement No. 2-5138. Form
S-l. (5-12-43).

Ave.,

ville, $150,000; Hornblower & Weeks, N. Y,t
$500,000; W. E. Hutton & Co., N. Y„ $500,-

OF

Reading, Pa.,
registration statement for 50,000 shares of capital stock, par value $5
per share.

$4,750,000; to partial payment for
Iowa
properties of Iowa-Nebraska Light
&
Power
Co., $1,000,000 and for other
corporate purposes.

filed

CO.

READING, PA.
American

has

Co.,

TUESDAY, JUNE

CASUALTY

AMERICAN

a

business, operating packing plants in North

N.

IOWA POWER

Racine

and

Co., $150,000;
land, $100,000;. A.

31

filed

Stock

Yards, Chicago, 111.
Business—Engaged
in
meat

&
.

MONDAY, MAY

has

registration statement for $35,000,000 35year
T/o. cumulative income debentures,
due April 1, 1978.
Vy:-

&

Offerings will rarely be made before the day follow..

Barney

$200,000;

$200,000;

change offer have been underwritten,

P.M. Eastern War Time

Hutton & Pomeroy,
Schwabacher & Co., San
Singer,
Deane
&
Pittsburgh,
$150,000;
Smith,

Inc.,

portions

onering—The securi¬
ties registered are to be sold by company
under the competitive bidding Rule U-60
of the SEC's Public Utility Holding Com¬
pany
Act.
Names of underwriters and
price to public, will be supplied by postUnderwriting

Y.,

N.

Co.,

$750,000; Stroud & Co.,

effective

CO.

&

Armour

&

Francisco,
Scribner, -

Stone

ARMOUR

Rothschild

F.

Florida

of

$150,000; E. H. Rollins & Sons, Inc., N. Y.,

weather & Co.,

April 10, 1943.

share- the

ities of certain

Commonwealth

the

of

laws

Registration
on

1978,

list of issues whose registration state¬
These issues

a

the

Registration Statement No. 2-5114. Form

90

ments

under

are

Pennsylvania.

cumulative

stock.

of

holders

practicable after registration statement be¬

used

vestment

of

.

to

to

be

which

offering

The

financing

will

and

it

reinsurance.
Net
pro¬
for
the purchase
of
qualified as legal in¬
insurance companies organ¬

resorting

A-2

publicly

be

$200,000;

out

ceeds

securities

Cleveland. "■

by

will

Y.;

Freres &

Hemphill,

ington,

to the public will be
amendment,
Statement says
395,178 of the 470,178 shares regis¬

that

N.

Coi, St.

Y.;

public and Cuba.
Offering — Price

supplied

on

N. Y.; W.
Paine, Webber,
Jackson & Curtis, N. Y ; Stone & Webster
and Blodget, Inc., N. Y.; Clark, Dodge &
Co., N. Y.; Hornblower & Weeks, N. Y.;
Carl M. Loeb, Rhoades & Co., N. Y.; Riter
&
Co., N. Y.; Baker, Weeks & Harden,
N. Y.; H. N. Whitney, Goadby & Co., N. Y.;
Bacon,
Whipple & Co.,
Chicago;
Blair,
Bonner & Co., Chicago; Farr & Co., N. Y.;
Graham,
Parsons
&
Co.,
Philadelphia;
Kebbon, McCormick & Co., Chicago; A, M.
Kidder & Co., N. Y.; A. E. Masten & Co.,
Pittsburgh;
Newhard, Cook
& Co., St.
Louis;
Singer, Deane & Scribner,
Pitts¬
burgh;
Stein Bros. & Boyce, Baltimore;
White, Weld & Co., N. Y.; Auchincloss,
Parker & Redpath, N. Y.; Curtiss, House
& Co.,
Cleveland; Hayden, Miller & Co.,
Cleveland; Johnston, Lemon & Co., Wash¬

1943.

(EWT) on May 17,

Brothers

&

E.

Registration Statement No. 2-5137. Form
S-l (5-6-43).
Registration
statement
effective 5:30
m.

corporation

underwriters

Ripley & Co., Inc., N. Y.; Blyth

Inc.,

Lazard

N.

funds of the company.

p.

the

offering of 395,178 shares of
$1 par value, as follows:

proposed

Walker

the general

added to

Proceeds—Will be

of

registration

the

11,

May

names

Harriman

be

L.

other

its

to

its common stock,

amendment.

supplied by

filed

the

gives

&

Simon

M.

amendment

an

Co.

Co. and Farr &

Wertheim &

Buffalo;

Inc.,

Harriman

—

..

York; Schoellkopf, Hutton & Pomeroy,

$500,000;

capital

enable

to

National

Ripley & Co.,
Inc., head the underwriters.
Other names
will be supplied by amendment.
Proceeds—To the selling stockholders,
v.
Registration Statement No. 2-5136. Form
A-2 (5-5-43).
•"
Registration
statement
effective
9.59
a.m. EWT on May 17, 1943
//-y
Offered May 18, 1943, at $15 per share
by Harriman Ripley & Co., Inc., Blyth &
Co.,
Inc.,
Lee Higginson
Corp.,
Lazard
Freres' &
Co.,
G.
H.
Walker
&
Co.,
In

$150,000;

the

company

Jacksonville area), and other

the

Reinholdt & Gardner, St. Louis,

surplus of the
retain a larger

portion of its standard limit business with¬

increase

proposes

Underwriting

Hallgarten &
Noyes & Co.,
New
Weeks, New
York; Ladenburg, Thalmann & Co., New
York;
Laurence M.
Marks & Co., New
York;
Merrill Lynch, Pierce, Fenner &
Beane, New York; Paine, Webber, Jackson
& Curtis, Boston; L. F. Rothschild & Co.,

I.

A.

.

New York; Hemphill,
York;
Hornblower &

New

the

addition,

In

Percy

to sell within a reason¬
able time after the initial offering.

Marache & Lord, New York;

Co.,

it

which

Principal

—

of

Cty Bank of New York holds 75,000 shares

underwriters
are
Lehman Brothers, New York; A. C.
Allyn & Co., Inc., Chicago; Bacon, Whip¬
ple & Co., Chicago; Bear, Stearns & Co,,
New York; A. G. Becker & Co., Inc., Chi¬
cago;
Dominick & Dominick, New York;
Graham, Parsons & Co., Phila.; Granbery,
Underwriting

will

the

under

Rockefeller.

and boxcontainers,

emulsions,
chipboards
solid and corrugated
set-up and folding boxes, etc.
phalt

trustees

as

not

but

thereafter,

time

has filed

Company

statement

debentures due May

offered within

will be

shares

tion

The

effective.

comes

OFFERINGS
FLINTKOTE COMPANY

to

of

term bank note

Dec.

April

15,

1951.

Un¬

15,

1943,

was

Volume 157

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4178

Registration Statement No. 2-5127. Form
A-2

(4-22-43).

Registration

i

A.m. EWT on

10RK

statement

effective

May 13, 1943.

CORRUGATING

CO.

York Corrugating Co. has filed

;

ment

with

Common

Is

the

does

SEC

stock,

presently
not

11:30

$1

for

par

issued

represent

50,000

new

Address—Adams

shares

value.

and

state¬

a

The

stock

outstanding
financing.

Street

and

of

and

Western

Maryland Railroad, York, Pa.
Business—Normal manufacturing facili¬
ties are primarily designed for pressed,
drawn and stamped metal products. About
95 7c
of
the
company's

facilities
tion.

are

now

manufacturing
devoted to war produc¬
■

'

Underwriting—Floyd D. Cerf Co., Chi¬
is named principal underwriter.
Offering—Offering price to the public is
$6.50 per share.
Selling stockholders are
cago,

Western

National

trustee
Trust

28,013

Bank

of York,
Benjamin
S.

the

under

shares,

and

Dr.

Pa.,

as

Taylor

Charles

P.

Rice, York, Pa., 30,750 shares,
Proceeds—To selling stockholders.
Registration Statement No. 2-5118. Form

i
.

S-2

lishing by Mr. Crowley of an ad¬
visory council on savings banks,
and the adoption of a preferred
assessment rate for savings banks
if experience warrants it."
In commenting on the action,

(3-30-43).

'

Registration effective 12 Noon (EWT) on
May l, 1943, as of 5:30 p.m. (EWT) Ma/
18, 1943. '
;-:
(Tins list is incomplete this week)

Bell said:

.

"Provision

of

Federal

deposit
insurance for our mutual savings
banks is a great constructive step.
It will tend to strengthen the en¬
tire banking system of our State.
The action has the complete ap¬
proval of the Banking Board and
I

have

strongly recommended it.
savings
bankers
and
Mr.
Crowley have been completely
cooperative in the carrying out of
the program.
In recent years the
position of our savings banks as
The

of

all

has

other

been

banks

in

the

State

strengthened.

greatly

With the broad over-all coverage
of Federal deposit insurance and
with

Mutual

Savings Banks
available for repair work,
savings banks can look for¬
ward
with complete
confidence
toward whatever problems they
may have to face in the post-war
period."• ■/ AA:A^A. A
Mr. Short had the following to
our

Fund

our

All NY Mutual Banks
To Be FDIC Members
Elliott V. Bell, New York State
Superintendent of
Banks,
and

Myron S. Short, President of the
Savings Banks Association of the
State

of

jointly

New

York, announced
May 17 that arrange¬

on

ments

have been made with

Leo

T.

tional

the

with

"Consistent

policy

tradi¬

•

the

providing

of

highest possible safety for the de¬
posits entrusted to them, the sav¬

of

State,

New York

ings

banks

most

of which have been operat¬

ing their

tion, for admission into the FDIC

about to offer the additional pro¬

State

not

savings banks in the

now

members

of

the

Corporation.
The

Jobless After War
Major General Philip B. Flem¬
ing, Federal Works Administrator,
in

savings banks

now

mem¬

have already adopted resolutions
to
become
members
have
ap¬

ance

own

their

of

fund for the insur¬
deposits, are now

afforded

tection

through

mem¬

the Federal Deposit
Corporation. It is an¬
ticipated that all of the savings
banks of the State not already in
bership

proximately 91% of all of the
savings
bank
deposits
in
the
State.
The rest of the savings
banks are taking action as rap¬
idly as their trustees can meet.
It is anticipated that the entire
program will
be completed by

the

Tuesday of last

on

week, at the Sales Executive Club
of New
velt

York, at the Hotel Roose¬
estimated that a $15,000,000,-

000

annual

outlay for
private construction
will be required to provide em¬
ployment for about 8,000,000 per¬

public

post-war

and

avoid

to

post-war depres¬
this was indicated in the
York A "Herald
Tribune"

sons

sion;
New

which

a

continued

lows:

in

part

as

fol¬

in

FDIC will

take advantage of

this further safeguard for the sav¬

ings of their 6,000,000 depositors."

Wood Pulp Producers To
Withhold 20% Of Output
All

producers

have

been

Production

20%

of

month

to

rather
than a liability, this labor could
be used in a program he forsees
which
includes
1,000,000
new
homes a year for ten years, new
highways and repairs for old ones,
hospitals, airfields, schools, soil
conservation

as

an

asset

flood-control

and

works.
"General

Fleming arrived at his

estimate of the annual cost of the

struction to give jobs to

1,000,000
year.
To

newal

Mr.

of

adequate
to

the

assure

the

of

holding clause" of General Pref¬
Order

erence

M-93

M-93-a,

This
when

action

the

was

This

the

year.

significance here," said
General Fleming, "is that an an¬
nual expenditure for construction
of $15,000,000,000 would provide
jobs for about 8,000,000 persons,
both

on

and off the site."

"Where
to

come

are

the

from?"

$15,000,000,000

continued

Gen¬

eral

Fleming.
"Perhaps it may
be
expected that private con¬
struction will provide half.
That
may be too generous an assump¬
tion.

There

has

been

so

much

is

to

four

through July

on

July

big job

third

the

with

con¬

rationing that is to

others

May 14.

War

renewal

May

pulp allocations
announced, in view of the
shortage
of
several
essential

Book

of

fuel

the

issuance

No.

oil

<

and

3

eliminates

of

the

rations.

;;

streamlined

which

cedure

the

are

Ration

Under

were

pro¬

another

types of wood pulp,

particularly, registration at school or ration
unbleached kraft (sulphate), in¬
board sites, a motorist outside the
ventories of which grade of pulp
Gasoline Shortage Area will:
are now reduced to a
twenty-day
1.
Pick up a simple application
basis.
The Pulp and Paper Division of
WPB announced that in the

from

any

June

the

22

allocation of wood pulp for June

other

vide pulp for the manufacture of

a

months

ex¬

cou¬

the public time and trouble,

save

Or¬

000

"The

"A-5"

be handled through the mails to

;

Aipple-

provide jobs for 2,500,000 would,
therefore, cost' about $15,000,000,-

one

two

in

The "A-6" coupons in these

nected

shipment it will be necessary to
withhold pulp from less essential
paper products in order to pro¬

at the site for

men

Period

(March 22

anticipated

effective

books

expire July 21

22.

invoked

was

Preference

mentary General
der

21).

paperboard
den^ands from
pulp, the "with¬

wood

re¬

similar,

books will become valid

wartime

available

be

"A"

not

the

months

and

paper

meet

will

said.

will

from

pons

month

manufacture

Brown

tending

thereafter, and to make deliveries
of such withheld tonnage only as
ordered by WPB, it is announced.
To

mail

because of recent OPA action

all

during
each

and

by

the East

withhold

pulp

June

completed, arrangements for

pulp
War

the

production

wood

of

wood

by

Board

their

of

types

of

ordered

through the issuance of

■

"Regarded

Insurance

bers of the FDIC and those which

address

an

program on the basis that it re¬
;''-'"AA quires $6,000,000,000 spent for con¬

say:

Crowley, Chairman of the Fed¬
eral Deposit Insurance Corpora¬

of all mutual

Foresees 15 Million

1879

relatively

essential

more

time
at

beginning

service

a

conveniently

designated

by

place

local

ration

his

board.
2.

Fill

the form

out

and

Board

American

tion

of

the

obligations.

War

mail

and

paper

it to his War Price and

Latin

or

located

products and to meet Lend-Lease
Attainment

about

station

Produc¬

together

signed back

Board

Rationing

with

the

(a)

of his present

cover

objectives may, in
some instances, require the allo¬
cation of pulp from integrated to
non-integrated mills where such

that proper inspections have been

action is deemed to be in the best

made.

interest

of

not to be

the

war

effort.

It

book, and

(b),

inspection

record

his

current

showing

is

inferred, however, that

entire

order

the

"A"

tire

20%

M-93-a

withheld

under

Jas. H. Oliphant & Co.

will

necessarily be
from the opera¬

plant expansion during the war diverted away
that it seems unlikely there will tions of each integrated mill, be- j
be much need for further large cause in many cases all or most
Condensed Statement of Financial Condi¬
scale industrial building
imme¬ of the withheld wood pulp will be
tion, March 31, 1943
diately afterwards. In any event, allocated back to the producer.
June 1,
In the case of market
Ait will be up to government to
A ~
'
ASSETS
mills, the
;
For the third time, the House
The
State
Banking
Depart¬
make up th& 'difference between 20 %v withholding provision :^ill
Curren^Assets—
on
May 18 by a vote of 202 to what
ment's announcement explained:
require that they refrain from Cash in bank and on hand—$402,383
private business can fur¬
194, rejected the modified Ruml nish and the amount needed.
V "The arrangements worked out
I scheduling this amount to con¬ Drafts receivable (since coll.)-.
2,480
The
War
Production Clearing fund deposits...,.
by Mr. Bell, Mr. Short and Philip skip-a-year income tax bill. This don't presume to say how govern¬ sumers.
42,156
action came on a motion to in¬
-A. Benson, President of the Dime
ment should provide its share or Board may allocate this tonnage Deposits on acct. of sees. borr.142,900
struct its delegates to a joint Sen¬
Savings Bank of Brooklyn and a
on
what terms.
That is up to. fully when returning Form PD- Receivable from other brokers
ate-House conference committee
or dealers on acct. of securs.
'
member of
the Banking Board
Congress, the state legislatures 292 to the "pulp producers, or it
sold but not delivered——
381,347
accept the Senate-approved and the various
•with Mr. Crowley call for con¬ to
may leave some portion for in¬
municipalities."
Receivable from other brokers
bill, which would abate the lesser
tinuance of the Mutual Savings
"General Fleming said he based terim emergency allocations dui
on
acct.
of
"future"
comBanks Fund as a repair fund. of either 1942 or 1943 taxes for all his unofficial estimates on labor ing the delivery month.
modity accounts
In any
A'A 3,193
individuals
except
those
with
However, ho further assessments
potential figures prepared by a case, producers will receive in¬ Receivable from customers:
"windfall"
incomes.
President
Debit bals. in "margin" ac¬
are to be paid into it.
In connec¬
Washington economist. This eco¬ structions as to the disposal of
counts, in which the mar'
A,
tion with the program it is ex¬ Roosevelt had informed Congress nomist's
figures point to around withheld tonnage in ample time
gin, in ea. case, is equal
just prior to the Houses's decision
to or greater than N. Y,
pected that the Mutual Fund,
15,000,000 persons without jobs for them to plan their deliveries
S. E. requirements & bona
should the need arise, will make that he was opposed to full can¬
accordingly.A'.\
;A
after the armistice, he added.
AAAfide "cash" accounts
1,779,693
"contributions to the surplus of cellation of a year's income taxes
While the wood pulp shortage
"Our economist predicts," said
Securities owned
by firm—at
and inferred that he would veto
some of the savings banks admit¬
has reached the point where it is
General Fleming, "that immedi¬
quoted market value
;
12,760
ted to the FDIC.
A corps of ex¬ such a .measure..;;;" '.;AA'' :v /, -a:A '
ately after the war about 6,000,000 deemed necessary to invoke the Securities contrib. by partners
Since the House conferees will
as capital—at quot. mkt. val.
aminers of the FDIC has been
1,115,785
workers
will
have
to
be
dis¬ withholding clause of Order M-93,
Miscell.
eurr,
assets
such
as
•working with the staff of the now enter the conference uninrevenue stamps, etc
charged from such industries as the power to allocate such with¬
32,551
Banking Department in the expe¬ structed it is believed that a new aircraft
held tonnage will be used only
production, shipbuilding
Total current assets
diting of the admission of the deadlock on the pay-go issue will and machine
$3,915,246
to provide for the safeguarding
building.
Another
result.
A compromise patterned
other Assets—
AA:,. A• A"A ■A'
savings banks to the FDIC.
of production which is considered
group of industries, now under
Membership in Exchanges — at
v
"Eleven
savings banks; with after the House measure for 75%
the wraps of war-time control, important to the war effort.
t,
last sale prices-45,200
26.5% of the $5,677,000,000 of de¬ forgiveness is predicted as a pos¬
,

Operating Results

House

Again Rejects a
Skip-Year Tax Bill

'

.

■

.

,

.

...

•

,

•

—...

*

posits in the mutual savings in¬
stitutions in the State, are now
members of the FDIC. The boards

of trustees of Mutual Fund mem¬

bers having an additional
all savings bank deposits

65% of
in the

have

already passed reso¬
apply for FDIC mem¬
bership. ■
V "v.-"/:'' -A V
:
"When the Federal Deposit In¬
surance Corporation began busi¬
ness
in 1934, all of the savings
State

lutions to

banks

in

bers.

In

two

of

this

State

were

mem¬

-1935,' however, all but

the

savings

banks

with¬

drew and established the Mutual

Savings Banks Fund for the in¬
surance -of their deposits. In the
last four years nine savings banks
have withdrawn from the Mutual
Fund-and become members/of the
FDIC.

Thus, of the

132 savings

in the State, 121
members 6f the Fund.
banks

are

now

"In discussions in recent weeks

between Mr. Bell and Mr.

ley,

Crow¬

basis for admitting to the
in
State was arrived at. The

a

sibility.

However,

through the
cancellation of the 6%
normal
and 13% first bracket surtax on
1942

liabilities

tax

last

income

year's

all
'•

14 substi¬

own

skip-a-yea'r

plan.

Both

Senate

and House measures call1 for the

launching of a 20% withholding
levy July 1.
Senator
George (Dem., Ga.),
Chairman

of the Senate

Finance

Committee, opposed the modified
Ruml plan bill and proposed in¬
abate

of either 1942
was

75%
or

of the lesser

1943 taxes. This

voted down by 50 to 32.

Will

How¬

the George plan which' is
similar to the House's measure,
ever,

is looked upon as a

an

additional

"In

addition, it would seem that
will have to dis¬
charge
about 400,000 workers.
Two million will lose their jobs
transportation

in
government
service—which
probably will occasion consider¬

able

rejoicing

the part of the
taxpayers. •
Assuming 11,000,000
men in the armed forces, this eco¬
on

nomist thinks that perhaps 7,500,000 will be discharged at once,

possible com¬

Furniture
nal

fixtures

For 'Gas*
Plans

(nomi-

A:;

■

books) by mail were an¬
on May 16 by Price Ad¬

ministrator Prentiss M. Brown.

Specific provisions for mail
newals
basic

21

are

for

books

holders

ration
will

expire

contained in

a new

Total

re¬

/•

Current; Liabilities—:

$300,000
107,900

but not received-™-.^--.—__

291,658

Payable to customers:

1,268,721

credit

Free

balances.,...—
Ci'edit bals. In "margin" ac¬
counts, in which the mar¬
gin, in each case, is equal
to or greater than N. Y.
S.
E.
requirements,
and

July

amend¬

This 2,000,000 would join 500,000 work¬
"Still," said General Fleming, I ers in the construction industry
"there would be 2,000,000 employ* at the peak of the war effort.."

$3,960,447

Money borrowed on securitieson acct. of sees, loaned
Pay. to other brokers or deal¬
ers on acct. of securs. bought

whose

on

—

—

Depos.

ment

peacetime activity.

1

LIABILITIES

parts of the world."

full

1

unsecured receivs. (less

reserve, $20,888)

Coupons

whcih 25,000,000 car
owners
and 160,000 motorcylists
may
renew
their present basic
gasoline rations ("A" and "D"
by

coupons
nounced

value)

Miscell.

bona

Of the 15,000,000 thus estimated,

employed,-and that trade will ab¬
sorb 2,000,000.

and

'

Renewal Plans Set

to the
gasoline rationing
regulations. These provisions will
apply to books held by motorists
General Fleming
assumed that outside the Eastern gasoline short¬
5,000,000 will retire from the la¬ age area, and by motorcycle own¬
bor market, including women who
ers throughout the country.
will return to homemaking.
He
While final plans for Eastern
also assumed that 2,000,000 of the
motorists, whose basic rations will
less physically fit will be carried
expire at a later date, are not
as permanently unemployed, that
2,000,000 will return to agricul¬ ables left over, and it is this group
ture, that 1,000,000 will get jobs that must be put to work immedi¬
in service and finance, that an¬ ately to fill in the gap between
other 1,000,000 will find employ¬ the armistice and the time pri¬
ment as servants or become self- vate industry can reconvert
to
in various

'

ings bankers favor it, the estab¬ promise.

probably add

1,000,000 workers, leaving a net
loss in manufacturing of 5,000,000.

3,500,000
under
arms
tax¬ leaving
somewhat longer for police duty
A:

bill, approving by a
49 to 30 vote the modified Ruml

tuted its

the




for

payers. 'A'.-A
The Senate on May

stead to

setting up of a Separate Fund for
Mutuals in the FDIC if the sav¬

agree¬

next
week otherwise, it is said, it will
be too late to put the withholding
tax into effect by July lAAA4''
Two weeks ago
(May 4) the
House rejected the modified Ruml
plan 206 to 202 and passed a bill
by Representatives Forand (Dem.,
R. I.) and Robertson (Dem., Va.)
abating approximately 75% of the

FDIC all of the savings banks

plans call for continuance of the
Mutual Fund as a repair fund, the

final

ment must be completed by

fide

Equities

"cash"

in

393,325

accounts

"future"

com¬

3,494

modity accounts ...I.....
Dividends
Miscell.

&

pay.

commisS.,
(incl.

t&xes,

such

current

Net worth

Note:

1,573,163

——

$3,960,447

Contingent liabilities of the Firm

March

as

open

31,

1943

trades

of terms of

the

$2,387,284

*

at

which

15,704

-

liabilities-

Total

tracts

6,483

as

etc.

exps.,

therefor)

res,

Total

unclaimed-_

liabs.

curr.

all

not

of

items

recorded

yet

such

because

delivery, and when-issued con¬
of

reasonably

would make

above

consist

no

statement

definite

material
on

the

nature

change in
basis

quoted market values at March 31,

of

1943.

Thursday, May 20, 1943

THE COMMERCIAL & FINANCIAL CHRONICLE

1880

Fort Pitt Bridge

For Dealers

Teletype—N. Y. 1-971

HAnover 2-0050

.

Firm Trading Markets

Bendix Home

SUGAR SECURITIES

Penn Central Airlines

Appliances, Inc.

(Current cash position

All Issues

over

Preferred

$1,000,000)

Erie Railroad
Warrants

Majestic Radio & Television Corp.
(Current cash position

Houston

$500,000)

over

r ARL MARKS & HO. INC.
Two

stocks with post-war prospects,

common

SPECIALISTS

Our Reporter

By S. F. PORTER

or

.

A

1-576

1st Mtge.

.

At New

.

Perhaps
the list

discouraging

some

now.

.

expressed it, "Even if

trader

...

we

do get

a

.

.

could hurt

reached

But

*

the

as one

bad break, all of
so why should

us

going to win the war eventually,

know we're

High in April

ever,

of factory capacity
rose,
indicating that the main¬
tenance or acceleration of activity

we

.. . Whether true
or not, that comment reflects
sentiment among the professionals at this time. . . .

high point in April,

a new

industrial

of

index

activity

get into a panic?"

month

the general

after the closing, of books on the greatest financing
in world history tells enough of the tale at the start. ... As for tax-

Wedd,

10 days

exempts,

stories

news

the pending revenue bill are now coming

on

And any

portfolio.

a

shouldn't occupy a position where he
That's blunt but it's the truth. . . . /

just

tax-exempts

own

bank.

"The main

increase

.

.

.

can

12/15/65/60.

.

.

.

Now look.

111.11.
No

.

.

.

"There's a

As this is being written, the 2%s of 65 are

,

Almost

.

more

.

a

point in a week!

the 2%s

that

....

still

Well,

.

-.-w;''1:■■.'v
.

.

.

It's worked out

people who gave it.

.

.

so

-

.

group,

clothing group was

increases

greater

recorded in forest products.

certain

slight

but

number of paydays and
quarterly adjustments."

Labor-Management Produc¬
tion Committees in dealing with

Absenteeism

.

.

The issue is tax-exempt.

.

And

for its price

as

sold

war

on a

financing basis.

.

.

.

It is a
...

tion

(2) The yield, then, is the highest on the board, comparing with
1.46% on the 2V2s of 1967/62, with 1.48% on the 2*/2s of 1968/63 and
1969/64 and with 1.46% on the 2M>s of 1972/67
:
>

(3) These last four bonds are taxable, are outstanding in much
larger amounts and haven't anywhere near the market following as
the 2%s.. .."
'
(4) Another comparison with the 23/4s might
1958/56, selling to yield 1.28% after taxes. ...
•
2%s

be the 21/2s of

conservative

from that

1.66% yield.

The 2%s

board.

.

.

point cushion in addition.
And

*

...

still compare with the best yield available on the

from this level.

is to be made.

.

.

.

.

.

.

.

114

course,

generally,
.They can
v*

The 23/4S can run right ahead even
reach 114%, if a 20 basis point change
.

.

.

'

:

.

V.v.

.

.

.

statements by

Latest

.

the Secretary indicate that we may see a

By

so

last day.

issue when they hold their bonds until thfe

Then the Treasury
new

the

.

.

will return to the market in July and borrow

September another war-loan drive will be started.
.

.

.

.

.

.

The concentration

non-banking institutions and on individuals. ... The banks
won't be permitted to come in at all except through purchases of
the discount bills sold from week to week.
And there'll be no
on

about

borrowing

inflationary

political and military history,
It makes sense

been

a

$3.50

May 25).
CON

ABSENTEE¬

ROLLING

ISM—A Record of War Plant Ex¬

States

Depart¬

Labor, Division of Labor

Standards

of

Superintendent

—

U.

Documents,"

Government

S.

Printing Office, Washington, D. C.

and it

.

at

.

.

that crucial moment in

...

-

sounds exactly

—Paper—10 Cents.

right.

.

.

.

WAR

AGEN¬

—

of

Superintendent

Documents, Government Printing

on a

And the banks will be excluded from this one.

There has

build-up for excluding the banks from the next campaign

.

—20 Cents.

Clothing Stock Looks Good
An

descriptive cir¬
Inc., which

interesting

cular

Fashion Park,

on

the firm believes offers attractive

been prepared
by Simons, Lin-

possibilities, \ has
for

distribution

burn &

York

this

few days the stories out of Washington
have had all the earmarks of "feelers" along this line.
For
.

Office, Washington, D. C.—Paper

Co., 25 Broad Street, New
City, members of the New
Exchange.
Copies of
circular may be had from

York Stock

all along, and in the last

advice in this column, of course, you're well

Co.,

City—
(publication
date
New York

Ave.,

Information

..

August 1 may be rolled over, and so Morgenthau will have an excuse
a large short-term borrowing from the banks at that time. * . .

criticism

—

EMERGENCY

for

will be

Cloth

MAKING—

Macmillan

CIES HANDBOOK—Office of War

short-term issue from the banks. . /. At the
$1,609,000,000 issue of 7/s% certificates coming due

money

time

Jobim—The

Fifth

60

THE

IN

BRAZIL

Jose

will be paid off in

doing, Morgenthau will do away once and for all

with the "right" theory in this market and holders of bonds will
get out of the habit of expecting a market premium on a new

some

Washington,

...

The billion-dollar-plus maturity of June
...

the

under

Plan—War

Board,
C.—Paper. ■ ' i

D.

ment of

repayment rather than a refunding of the $454,000,000 of 3%s of
6/15/47/43 and of the $629,000,000 of lV8s of 6/15/43, coming due
this June 15.
It's just a guess at this moment but his remarks ol
the last few days suggest this might be the schedule:
:

f

Materials

perience—United

MORGENTHAU'S PLANS

.

If you followed the

.

.

as

looking ahead pretty far.
.

short pull. . . .
will give you

you're interested in trading in and out, these bonds
and need. .
.

cash.

operations

...

the activity you want

Then in

compared with a present price of 111% is
But that's the way some of the dealer?
are talking.
And if you're bothered about holding these bonds at
this premium, these points are worth serious study. .
Of

.

Might be a good switch to get into these for a
If

■

..

.

liquidation at any time.

.

possibilities if this market remains strong

consider the

now

and if prices go up

.

.

same

They're still right out in front—and with a 20 basis

.

in the market over the 2s now seems to be

initial flurry

and the 2V2s are coming into their own.

\

MILL OPERATIONS—

Production

Considerable switch¬
ing is reported from the 2s into the 2!/2s and from bonds around the
2%% maturity range into these new securities.
.
The 2!/2s are a
good bond. •.
They are outstanding in tremendous amounts, of
course—the total is $3,738,000,000—but they've been bought by per¬
manent investors and there's little worry on the side of large-scale

basis points, if you will, for the fact that the

off 20

selling at a high premium and for safety sake. ... Be
as you like and just throw away 20 basis points

are

:

brass-mill

possibilities, consider these points:

(1) The yield on the 2%s after taxes—which is the only way to
figure one of these bonds—is 1.68% at a price of 111.11. . . .

Take

War Produc¬
Board, Washington, D. C.—

Questions and answers relating to

2i/£s

The
over

It's in the intermediate maturity classification, coming right

before the 21,4s being

well-absorbed bond and has considerable investment backing.

Production

War

—

Drive Headquarters,

Controlled
THE

for

Guide

—

Plant

Paper.

chance on

protected now with a cushion and can afford to take a
further appreciation plus tax-exemption. ...

.

check with experts again suggests

a

the board.

on

selling

of the cheapest issues and one of the

are one

most attractive issues
.

.

need be said about that advice.

Now what?

as

food

Man's Bookshelf
ABSENTEEISM

BRASS

fast that it's even startling to the

.

"The

unchanged,

this writer suggested a study of the 2%% bonds of
When the column went to press, the issue was sell¬

ing at a premium of 10 V2 points and the remark was,
point or more in the 23/is from this day on." ...

.

highest on record. The cor¬
responding indexes for February
were
214 and 239.
The increase
in March was due in part to the
the

in the recent

the

1-1043

wage

2%s AGAIN

Last week,

at

factor

was

stated.

were

THE

the

NY

Teletype

The Business

payroll index
for
March
at
228
(1937=100)
reached the highest level since
last December, while that of the
manufacturing section at 257 was

months. . . .
large-scale investor who needs tax-exemption and doesn't chiefly meat-packing," Mr. Wedd

out, are going to absorb the headlines over the next few

handle

of

Manager

General

Bell

9-4970

plants

total

"Our

April, 1942, while the percent¬
age of capacity utilized rose from
129
to
130, according to S. M.

within

smaller

Green

BOwling

City

York

New

Broadway,

Telephone:

total output.

in

specific market actions, the tax-exempts and the new
issues are leading the list, and rightly so. . . . The premiums on the
new 2s and 2y2s are a story in themselves but half-point premiums

42

the

in

mainly

and

against 208 at mid-March and 164

for

As

D. F. Bernheimer & Co., Inc.

moderate-sized
with a com¬
paratively low proportion of the
is

by the Canadian Bank
Toronto, at the midbeing
209
(1937 = 100)

prepared

of Commerce,

Request

Description on

although

slightly,

declined

*

whole, how¬

the percentage

Canadian manufacturing output

from abroad

news

Surely, that deserves mention.

.

.

The other iron

and steel trades as a

Income 6s, 1947

Bought, Sold & Quoted

in the

occurred

rise

moderate

automotive trades.

,

.

york

new

Coal Co.

Teletype

Bell

telephone

Enterprise 6015

2-3600

rkotor

YORK

NEW

so

anticipate anything except normal corrections.

1-1397-

Y.

N.

West Virginia-Pittsburgh

Dealers Association

STREET,

philadelphia

telephone

...

good that the dealers in Wall Street can't believe their own
quotations. ... Everyone seems to be buying. . . . Selling is slight,
healthy, generally representative of switching. . . . It's just one of
those periods when "one-way street" seems to be the catch-phrase.
And unless the totally unexpected occurs, there is no reason to
is

NASSAU

45

Again, that's the only word which
Maybe it won't be so terrific next
the week after, but at this writing, the action of the market
<

HAnover 2-8780

St., N.Y.

Teletype

INCORPORATED

York Security

Members New

'

This market is terrific. ".

request

Kobbe, Gearhart & Company

On "Governments"

rushes to the typewriter keys.

and information on

Y. Security Dealers Ass'n

Members N.
25 Broad

Trading markets

week

M.S. WIEN&CO.

selling between $3 and $4.75.
New York City

50 Broad Street

Ltg. & Power

Common

SECURITIES

FOREIGN

Works

Common & 6s of 50

.

.

Blauner, Simons & Co.

upon

re¬

quest.

.

'

instance, when Federal Reserve Board Chairman Eccles testified
the

before

'

"? M" & "B"

WARREN BROS.
Old Common & Preferred

House

Banking

and

Currency

several

Committee

days ago, he remarked that the last campaign was not par¬
ticularly successful despite the amount of money raised because

Chicago Railways 5s, 27

not enough of

Pierce-Butler Radiator

"The

the loan went to individual investors.

success

of

bond

drives

depends

not

the

on

Our best recommendation

...

amount

of

taken in by the Treasury but on the amount raised from in¬
dividuals and corporations other than commercial banks," he de¬
clared.
And when asked by committee members whether com¬
mercial banks could be excluded from special drives, he answered

this

New Class "B" and "C"

Credit Acceptance, Pfd.
(Direct

Bought

—

Sold

—

Quoted

in

private

the

State

Office
Tower Building,
'

wire

to

SYRACUSE, N.

our

Mempers New York Stock Exchanoe
71

Broadway N.Y. BOwling Green 9-7027
Bell Teletype NT 1-61




Members N. Y. Security Dealers' Assn,

HAnover

Bell

2-6790

Teletype

Eccles

cessful

NY

as

1-2230

done but should be done."

is not just talking to

enough."

Which

Syracuse 2-7158

any

other week,

Victory

.

.

.

the committee members.

...

He's

buyers are

give them an

Hill, Thompson & Co., Inc.
Markets

...

back to that timing schedule.
As far
concerned, just knowing what's ahead in timing should
extra advantage. ...

would bring us

WAR BONDS

.

talking to the country. . . . And so are all of the Treasury representa¬
tives now speaking about the last drive as "successful but not suc¬

New York

60 Broad St.

.

"this not only could be

Y.)

BIRNBAUM & CO.

HAY, FALES & CO.

.

or

until

money

...

120

and

Situations

Broadway,

Tel. Rector 2-2020

for

Dealers

New York
Tele. NY t-2660