Full text of Commercial and Financial Chronicle : May 21, 1942, Vol. 155, No. 4074, Section 1

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ADH<

dUS.

1.1 BRAHV

Final Edition

Volume 155

THURSDAY

New York, N. Y.,

Number 4074

■T>

A

In 2 Sections

0

Thursday, May 21, 1942

Price 60 Cents

Favors

re port 7

An

.

.

...

Governments, whether present

the distribution

in mind.

of his

bond portfolio

''

.

..

These

•

in

the

market.

The

...

System's

Reserve

Federal

J

market during the days of the "tap" issue.

j warranted campaign
of

recent

weeks

.

.

.

have

<

all

- -

of the

buyers

.

.

v

.

7 ;7

1

*

.

.

,

persistent,

•

■

counts" in

and

doiibtless

v

small

no

ac¬

for

measure

^

And

.

without much

points, it might be said that the advice of the

sion,-

for these

as

.

'J.:

■

American Bankers Association's Economic Policy Committee is worth
serious

study. r;r. The

•range.1.
turities

Committee
favors the '10-year
maturity
Suggests the Treasury. sell banks securities with ."ma¬
to 10 years and that the banks work out an average, of

.

.

up

about five years.

.

if'".

.

."f

-

:;.''77• -7

X-Y:

.

.

.

traffic

.

.

'

Ceiling On Rates
And

to

" •'

/

•

\;

,

.

_

f.

.7.;7'7;

story that is as important, this writer believes, as
any new wrinkle in public financing operations. ;;;
To a develop¬
ment that has been given little attention because of the extraordinary
now

a

.

for

judg¬

the story goes.

as

are

situation.

Having

gone

through the long depression, the
1

holders

are

longer disposed

no

to follow the old rule of holding
bonds until maturity.

.

A

He

would

available to

.V•
favor

Bonds of roads which

using
the current "prosperity" to reduce
their outstanding obligations and
position to

fixed charges

earn

on

His

seat

idea

'

is

purchases,
to

,

.

.

as

many as possible of the leading
local investment houses
through¬
out

the

nation

bers of the

to

become

Mr.

mem¬

Exchange.-.V*Kv;T t''/';:.v.";

Merrill, who is here visit¬

ing the local offices
estimates

that

of

there

his

firm,
about

are

1,000,000 customers who make a
transaction through the New York
Stock Exchange once or more a

.

in effect, setting

was,

.

a

second discount rate.

reassuring investors that they need not fear

a

>

.

steady rise

It was telling all of us that the
advance in discount rates—from 0.195% in March to 0.335% at;
the end of April—had gone far enough.
It was making this
.

.

the

>

;

'30s is still fresh

around

are

executives available to handle the
business of these 1,000,000 cus¬
tomers.

The

;

significant

too at

move

its

increase

$250,000,000

a

bill

week.

.

time when the Treasury
offerings from $100,000,000

a

.

!

„

7' (Continued

:

was

getting

to

week

a

-

on

Page 1939)

|

That the underwriting fratern¬

ity; has

vigorous appetite for
business goes without saying,
particularly in view of the rush
a

new

for
'

-

the

$4,000,000 of thirty-year
(Continued on Page 1935)

of

of listed

magazine

stocks.1

'

also: deals

' '

Formative Years, 1792-1817.

M

Before

tomers

will

double

and

of

also

account

have

to

X The Mass Production

-f

tribution of the Stock Exchange to
the

will

materially

Era, 1917-

In the leading article, the con¬

num¬

executives

be

Full

1942v:;.;./:Vv'^>

conse¬

quently he figures that the

in

Economy

Flower, 1867-1917.

months

many

1817-1867.

American

growth

of

America

is

dis¬

cussed.

in¬

creased to handle the business.

His idea of

increasing the num¬
Exchange

ber of New York Stock

INDEX

seats is to provide every town of

20,000 population and
least

one

.

held in
a

with at

and

Exchange representative.

Bond

Selector

Pittsburgh.

Director

July

•

1,

'X--''

Bank

up

Cop-

of

the

Page

■

Stocks.......

1934

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

1932

Calendar of New Security Flotations

1942

Investment

1935

Trusts

...

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

.

Municipal News and Notes.,....,. 1936
Our
Our

Reporter's

Reporter

Report.....,

on

....

1929

;

Governments.....

1929

Personnel Items

1932

Railroad Securities
Securities

Tomorrow's
:

1933

Salesman's

Corner......1935

Market—Walter Whyte

Says. •>...

'

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

193.3

After

3,.........,........

1939

THE

Uptown

CHASE

He has been
company

since

He succeeds

1939.

Insurance

Wil¬

liam KX

Frank, who resigned, and
who is serving on the War Pro¬
duction Board.

V;

NATIONAL

BANK

OF THE CITY OF NEW YORK

NATIONAL BANK

R. H. JOHNSON & CO.

com¬

maga¬

titled:

QUICK ACTION ON DESIGN

AND CONSTRUCTION

a

its

change in four historical chapters

passed Mr. Merrill antici¬
pates that this number of cus¬

perweld
Steel
Company
at
a
meeting of the Board of Directors

Public Service of Indiana

published

edition

an¬

Stock

with
the financial and economic history
of the country and the Stock Ex¬

have

...

to

position

7,000 account

of the Board of Directors of

in mind.

York

Development Years,

There

.

.

New

zine, "The Exchange," which takes
up new developments in securities
ownership and in the dividend

year.

ber

the
has

memorative

.

in short-term interest rates.

set

In connection with its 150th

niversary
Exchange

a

.

was

Commemorative Edition

■

encourage

•

substantially smaller volume of
2V2S.
And that is the Reserve Board's place¬
ceiling on short-term interest rates—which, in these days, business, naturally get preference
over the less
fortunately situated.
we may consider is equivalent to
a ceiling on long-terms too.
;
Riter Elected Chairman
But quite evidently institutions
Especially since the system has become so adroit in its handling of
Henry G. Riter, 3rd, of New
open market buying operations.
v'7777 ,7' 7x7 X77.7x7': are not disposed to regard the
is senior partner of
current situation as anything but York, who
' : r When the board announced it would buy all Treasury bills;
Riter & Co., 40 Wall
Street, New
temporary in duration, and their
offered at a %% discount, it was definitely placing a ceiling on 1
j
York City, was elected Chairman
experience through the slump of
rates.
It
It

"Exchange" Publishes

seats

a

interest in the tap

ment of

Stock

of character and

men

their

nance

are

which in consequence will be in a

making

ability with less emphasis placed
on
capital
requirements,
and,
if necessary, with arrangements
made to help new members fi¬

„

criterion

no

;; Rather these institutions

.

the other war obligations if the
amount of investment is greater than permitted at the moment by
law.
(The tax-exempts might be considered too). .....
For insurance
companies, the longer-terms, of course, are the answer.
or

discus¬

or

concerned with looking beyond
the war period and its abnormal

.77377V:7

.

nothing like the Series E bonds,;

is

ing its value

I ' V That's for banks.
For corporations, the short-term issues
plus the "tap" 2^2s probably are best.
For individuals, there's
.

fanfare

The immediate outlook for

road

a

York

as

"Times" said:

.

.

>

-

<

Liquidation
of
this
nature
while not being unduly pressed
is reported nevertheless to be

;
•

•

X"v?

|

.

years. -X

long
f ■

a

.

,

•

obligations that
been lugged along
through
over

the New

were

.

.

^

;

por¬

issues with a bang.
The optimistic remarks of dealers on the " V the hesitation which has
been
long-term trend of the market even while they disclose signs of •1
noticeable among such bonds in
temporary weakness "inside.""v
All these-are straws in the•
recent weeks.
*t'
'
7 •,
wind.
v
All are important.
All suggest that what ought
Insurance companies are under¬
to be troubling an investor these days is not the trend of interest
tone' especially active in
rates (or, to put it another way, the trend of prices) but the best;
that direction although "weeding
distribution of maturities and the wisest distribution of holdings
out" : has
been
going ■ forward
generally. .

-

'

substantial

period of

-

The obvious and

stability of the
l
market and the attractiveness of Government offerings. V
The
L. concerted efforts of all financial sources to put over Treasury
reassure

of

good times and bad

of the Treasury in the newspaper columns

to

disposing

tions of - carrier

strong words, but they appear justified by every

are

indication

•7".

to

promise to buy all Treasury bills offered to it at a %% rate. . . .
The Reserve Bank's heavy buying of Governments in the open

i

Major institutional ' holders of
railroad.bonds are reported "cullxng"v their portfolios with a view

.

Exchange Seats

on

memberships on the Ex¬
proposed by some members.
The views of Mr;
expressed at Los Angeles, as to which special advices
from that city to the New York<S>Merrill

may

"seats"

reduction in the number of

a

change to 1,300

start working on
with that basic consideration

potential,

or

the number of

E.

I

in

in

Exchange to a total of 3,000 was advocated on May 19 by Charles
Merrill, senior partner of Merrill Lynch, Pierce, Fenner & Beane*

7

-

increase

rather than

The price level of United States Government securities is going
to remain just about where it is today, if the Federal Reserve Board
and Treasury can manage it.
They can. ;
And every investor

Copy

a

Large Increase; Rather Than Reduction

In Number of New York Stock

REPORTER'S

Section 1

-

'

also
SURVEYS AND
>

Established

:

REPORTS

In connection with \;

of EGYPT

1927

^

64 Wall Street

ENGINEERS and CONSTRUCTORS

RESERVE

X'77

New YorksXiXu X
m

NEW YORK

,■>:

PHILADELPHIA

■

Albany

Pittsburgh

San Francisco

8

and 7

Williamsport
Watertown

~

••

F. H. PRINCE

by expert staff in

BANKERS

Over'The - Counter

45 Nassau Street

Members
New

York,

Boston

Stock

Chicago

Security

&

Exchanges




Tel.

REctor 2-3600

Philadelphia
Boston

Teletype N. Y.

.

and

the

to

the

f'xx

MAY & GANNON
E.

C.

31

Milk

Street

in

Boston

SUDAN

correspondent

v

facilities

v

iR'

•:

:C

Boston

N. Y. Phone CAnal 6-2610

the

Government

Colony

Office:

and

Phone—-Hubbard

8360

Member

Federal

VX

Deposit Insurance

Corporation

.

X

;>

Teletype BS 568-569

Specialists in

in

India,
and

Subscribed

1-576

6015

Enterprise

1250

RAILROAD STOCKS

Ceylon, Kenya
Zanzibar

..£4,000,000
£2,000,000
Fund........ £2,200,000
.

HART SMITH & CO.

....

Reserve
The

GUARANTEED

C.

and

Capital.
Capital

Paid-Up
Ass'n

E.

Burma,

Aden

in

Uganda

Bishopsgate,

26,

London,

Enterprise
~

all

service with Chase

X; Securities

;

NATIONAL BANK

Kenya

New York

Telephone:

Telephone:

Dealers

Street,

Towns

Bankers

INCORPORATED

Y.

Cairo

of INDIA, LIMITED

Kobbe, Gearhart & Co.
N.

William

Broaden your customer

England

£3,000,000

.

.

in

Securities

Members

.

principal

Colony

INVESTMENTS

.

1

£3,000,000

Branches

-

V-

Branches

HIGH-GRADE

No.

CAPITAL

King

Head

PROVIDENCE, RHODE ISLAND

Register

FUND

EGYPT

Trading Markets, always

Cairo

"

'

Wilkes-Barre

Actual

Office

LONDON AGENCY

.

BOSTON
Troy

Chicago

Commercial

FULLY PAID

FINANCING and VALUATIONS

52 WILLIAM STREET

Head

■

MANAGEMENT PROBLEMS

Sanderson&Porter

New

'

INVESTMENT SECURITIES

Bank

conducts

banking

and

Trusteeships
also

every

exchange

and

description

of

Members

New

business

Executorships

undertaken

York Security Dealers

52 WILLIAM ST.,
Bell

New

York

Assn.
GUARANTEED

N. Y.

Teletype NY

HAnover 2-0980
1-395

Montreal

Toronto

RAILROAD

STOCKS-BONDS

•

Telephone
BO.

Gr. 9-6400

52

Broadway

NEW YORK

Teletype
N.Y. 1-1063

COMMERCIAL & FINANCIAL

THE

1930

CHRONJCLE

Thursday, May 21, 1942

Trading Markets in:

Autocar

Corp.

Liberty Aircraft

Specializing in

'

V

Eastern

^ Gordon For President

Pfd. & Common

Club, of

Steel

71

Security

Dealers

DENAULT (r

Assn.

CO.

en¬

1932

de

Shields

ESTABLISHED

Polish Dollar Bonds

.

the

Co.,

&

La

has

of

been

Established

Members New

nom¬

office 'of

the

*

Chapelle,

:

katz/bros.
,,

V-' Richard
inated -for

Y.

N.

Teletype,

the

Triumph Explosives

.club's annual meeting to be held
on June
18.

11 Atiover 2-4660
System

for

York

The election will take place at

Broadway, New York, N. Y.
Bell

New

Barge Line ;

Differential Wheel

;

suing-year, to succeed J. Taylor
Foster,- of Spencer Trask & Co.

Members

York

&

American

Gordon, of Kidder,
Co., has been nom¬

inated for President of the Bond

i/;

J.F.Reilly&Co.
New

H.

Peabody

Sugar Associates

Struthers Wells

Wickwire Spencer

/.Albert

•Vice-

40

BELL

1-2480

York

1920

,

Security Dealers Ass'n

Exchange P1M N.Y.

HA 2-2772

.

TELETYPE NY 1-423

President," the post held by Mr.
- during
the past -year.

Gordon

■Circulars

Houston Oil Co. of Texas
6% Cum. Pfd. V. T. C.

Coal & Iron Co.
C/Ds

Both have Retail

appeal

G.

All

Westchester

Mortgages

County

Bank Stocks

Schoonover, deWillers & Co.
INC.
12#

20

BROADWAY

MArble

2-7634

Bell

BROADWAY

$5 preferred stock of Eastern
Sugar Associates, selling around 42, :is an attractive purchase^ if
viewed in the light of prospective earnings and dividend possibilities
j
"throughout 1942. ' Although dividends on the common stock appear
to be/remote, the stock, now at 10,or less should benefit substantially
marketwise if anticipated earnings are any gauge of
worthy The
company's fiscal year ends onw-:.
—p-rt , • .
v.June 30, and earnings per share' force the law. '; A land .' authority

Teletype

NY

7-8500 '

1-2361

to approach

expected

are

N.Y.

YONKERS.

NEW YORK, N.Y.
REctor

8.

In the 1941 fiscal year,

the

on

The

common

counter.

dividends

-

has

on

the

a

insofar

common

The preferred

are

as

30 Broad

Street, New York, N. Y.

Tel. Whitehall

than

con-;

issued

was

from: holders

500

be

Land

•

arrears

did

until

present, total
ferred

are

arrears

■

divest itself of

all' its

lands in

about

acres—or

the

authorities

not

Aug.

become;

1937,;

30,

arrears

$19.17

per

30, 1937.
No
paid on the

the

on

pre¬

share, which

calculated

are

At thei

the cooperatives than to grow the
cane
themselves.
It is expected

from

dividends

Aug.

can

be

that

to

The

Financial

Chronicle)

since sugar
from
Porto

Street, have changed their
to

Gatch

Partners

pany.

remain the

and

Com¬

and / personnel

the

in

company's properties, located
Eastern
Porto
Rico, include

holdings

acres,
owned

total

51,000

about

said that U. S. Government is

ne¬

land

Porto

Baltimore & Ohio
4s,

Denver & Rio Grande
4s,

Rio Grande Western
4s,

5s,

1946

L

PINE

ST.,

N.

Y.

Teletype NY

WHitehall
1-609




Viequez, the
expansion

the

company

may

realize

$5,000,000
for the parcel sold.
This would
improve their financial condition

4-4970

this

of Porto
an

G.A.Saxton&Co.,Inc.
7«

named

cash price in excess of

In
-

expected

Cuban

to

be

is

to

crop

production

b.e

diverted

to

of

high-test mo¬
lasses and only 1,070,000 tons will
available

be

for

United

the Allies.

sent to

The

States

The balance will be

consumption.
latest

.of

the

nominating

Francis Ti

Ward,
Chairman,, Eugene R. Black, H. H:
Egly, "Gerald: E. Donovan and
Percy M. Stewart.
4 /
*
P Thomas' E. Dewey will address

v

balance

sheet for Eastern

ried at

$13,012,000, which, after

a

depreciation

reserve of $4,634,000.
brought the net figure to $8,377,000.
Net working capital at that

time

connection,
Rican land

important

the

subject
legislation is

consideration.

The

Porto Rican ownership-limitation
law of 1900 restricts agricultural

were

t

«■

*-'»

*

...

.

S.

sugar

$417,000,

and molasses

640,000.

and

hand

$2,-

on

Current liabilities totaled

$2,043,000,

of

which

the

bulk

The

-

Pope

election
as

and

merce

of

Col.

Director

a

Thea-e
1

.«

'4

are
411

*

Industry Association of
Inc.,; was announced

/

'

,

v

on

.

*

the/Associa¬
tion's,

*

.

Pope,
:

/

>

,i

107,736
t"

V4-J-4

(,

is
of

the First Boston
Corpora¬
tion, will fill
the unexpired
of

Mal¬

resigned from

York

has

Wood,

David

nominated

bond, .attorney,

election

President

as

nual meeting to be

;

on

an¬

day, "June

16, 1942.
"During this next year particu¬
larly," i-says the report of the
committee, of which Delmont K.
Pfeffer, former President of the
club, is chairman, "we believe our
should

club

of

continue

in

office

and
of

for

for

members

,

other

of

officers

the

board

for Vice-Pres¬
ident, Gordon B. Duval, of Halsey, Stuart & Co., Inc.; for Secre¬
tary,. John J. Clapp, Jr., of R. W.
Pressprich & Co.; for Treasurer,
Fred W. Buesser, of the Chemical
Bank
&
Trust
Company;
for
Governors: LeRoy H. Apgar, of
governors

are:

Ripley, & Co.. Inc., and
Hipkins, Hipkins &

Clifton v;A.

Topping.

/:■

/ Members

of

committee,

the

in

nominating

addition

Mr.

to

Pfeffer, are;-Orlando S. Brewer,
of Phelps, Fenn & Co., and F.
Bradford
Simpson, Jr., of Lee
Higginson Corporation. ;
w
\

titled
the

is

to

callable

50

in

preferred

held in

shares

at

55

and

en¬

liquidation. Both
and common are

a yoting trust, the traded
actually being known as

price record of the preferred and
follow;
Preferred
(

49

-39

39%-16V4

1940.u__—; 31V4-16
1939_*__

I

—

32

1933______
20
i937-^._tr___^,, 48
1 ■'
I'1 "
*•}
-

-12 V2

-11
-10
*' •

Common
15

-

91/4

10'/4- 5^8
14

-

5

17%- 4 "

10%- 4
50 y4- 5

War

2' Hi i tt e e,
which capacity he is heading

in
the

organization's program of coopera¬
war effort.

tion with the national

Hold

recognized

Nominations

of

Com-

Service

Allan M. Pope

is
r

Associa¬

tion's

a

leadership in
policies intimately affecting the
municipal bond business.'',,
man

the

M.

Tues¬

Pope

Chairman

re¬

the

at

held

fnr

Board.

Col.

nominating committee of The
'Municipal Bond
Club
of New

1942_'

•

Col.

who

President

the

1941_^_j_L_I.i„_

«

Presi-

dent.:

Overriding his personal wishes,

In addition to

4

May 14 by
Lowry,

John

the
v.

there

outstanding
ri

»*

M.

the- Com¬

;Mu i r,
who 2 recently

common

,

Allan

of

term

sugar, and the other of $739,000
secured by a first mortgage on

$100,000 mortgage in instalments
beginning payable Dec. 31, 1942

«*

colm

shares of beneficial interest. „The

a

"

New /York;

'

represented bank loans of $1,671,000, one of $932,000 secured by

was'

t

NY 1-1557

.

ferred

Government

-

yv.

•'••••••New York, N. Y.'-

Club, will preside at the

was

certain properties.
the
bank
loans,

operations of corporations to 500
acres.
Only in recent years has a
strong effort been made to en,

U.

;

Birmingham, Ala.;

rBH 198

TVs25 Broad St.

J. Taylor Foster, President of

the Bond

Harriman

>

available

]

Bidgi

S,

Members

28.

Exchange

be

be used in the

materially.

1949

Hoboken Ferry

Rico

to

fected
a

1936

Direct Wire

the

$2,568,000. Total current
assets
were
$4,612,000 and in¬
shares of $5 preferred and 143,517
of our Porto Rican naval base.
In cluded
cash $32,000, growing cane
shares of common stock. The pre¬
the event the transaction is ef¬
$669,000, compensation due from
land

1944

is

Sugar Associates
of which about 34,000 are is for June
30, 1941. At.that date,
and 18,000
leased.. It is gross property account - was car¬

gotiating for the purchase of some
owned by this company on
9n
island off the East Coast of

same.

will

equitable price will be; luncheon.
for the; properties,; a!
large .part of the financing prob-!
ably to be arranged ; through a;

4,300,000 short
tons
against .2,700,000 ' in 1941.
However, about one-third of; the

Land
name

serve

New Orleans, La.

unexpired term of Richard de La
Chapelle. ' Continuing : as Gov¬

some

entering this country
Rico
is
duty free,
Eastern normally has this advan¬
tage over the Cuban producers.

sugar
factories ■i— Central
LOUIS, MO.—Gatch Bros., four
Jordan & McKinney and
Crago, Juncos, Pasto Viejo, Santa Juana
Smith & Canavan. St. Louis Stock and
Cayey—with combined an¬
nual capacity
of 1,000,000 bags.
Exchange firm, with offices at 418

firm

The Na-.
of. New York,

Bank

of

nominated to

!'Members New York Stock

Maritime Bldg. Brown-Marx

common,

ST.

Olive

City

been

r

arranged

The
(Special

has

committee

other arrangements, which;
possibility does not appear likely.
It is presumed that if the divest-,
some

.

■;

tipnal

33;-

make

bond /issue.
This, of * course, pisi
however,
problematical at the present, and
The
National
Association
of until an additional'three years'
any
consideration of' ways and
dividend is paid on the preferred;
Securities
Dealers,
Inc.,
an¬
means
in this connection would
nounced
the 'formation
of
the thus meeting the requirement that be
premature.
'
^ ; 1 , . > • ; »;'j
4
.following committee in New York preferred dividend from date, of
As stated at the beginning, the
City to raise funds for the USO: issuance be paid before the com¬ earnings outlook is ,v bright. / So
mon
can
share in earnings.
So
Richard
C.
long as the war lasts, exception-;
Rice,
Chairman,
far in 1942, $2.50 on account of
J. K. Rice, Jr. & Co.; Herbert
ally good earnings are in. prospect
arrears has been paid in two pay¬
for all West Indies
Allen, Allen & Company; O. D.
sugar
pro,-,
ments of $1.25 each—one on Feb,
ducers. These prospects have be-!
Griffin, Lord, Abbett & Co., Inc.;
10 and the other on May 11.
If come
David J. Lewis, Paine, Webber &
enhanced
for: the "Porto!
earnings
approach
expectations, Rican
Co.; William .Mueller, Jr., A. M.
companies, since supplies
larger payments appear in order from
Kidder & Co.; Alexander Pinney,
the
Philippines,.. which
this year.
'
1
! amounted to
Craigmyle, Rogers & Co.; Henry
854,000 short tons in
Eastern Sugar Associates is one
G. Riter, 3rd, Riter & Co.; Clinton
1941, have been cut off by. the
of the largest sugar producers in
Shepperd, Swiss American Corp.;
war/ and it is estimated that im¬
Joseph P. Simmons, Hart, Smith Porto Rico. It plants, raises and ports from Hawaii (903,000 short'
cultivates sugar cane, and manu¬ tons last year) iwill
&
Co.;
P.
J.
Steindler, P. J.;
decline ,to
Steindler
&
Co.;
Clarence
E. factures and sells raw sugar. The about 500,000 tons this year be-,
greater
part
of
its
output
is cause of the shortage of shipping
Unterberg, C. E. Unterberg & Co.
shipped to the United States, and space. The Cuban crop for 1942

Changes Firm Name To

Victor^ Schoepperle,

"

of 500

excess

the

ri

;

Steiner,Rouse&Co,

.

of F.

planters

.

.

Debardelaben 4s, 1957 ,

Iglehart, of W. E, Hutton & Co.;

Lee Mr/ Limbert,; of Blyth & Co.;
Inc., / and George Dp Woods,!; of
The./First; Boston?.'■ Corporation*

A. Glen Acheson,
Moseley & Co.; Charles
F;': Hazelwood,mf E. H. Rollins &
Sons, Inc.; Harry W. Beebe, of
Harriman, Ripley & Co.; Incor¬
porated; Eugene R. Black, of The
Chase National Bank, and Joseph
HP King,/of
Union Securities
Corporation. '<'*^2 y Ppp

resold-- to

small

contested

500—unless

paid,

three years after issuance.

■

;./V; 2 2?Ky:,y--

Sugar Co. No dividend may
on the common until allj
ment goes through, Eastern," and;
have been paid on thei
the other Porto Rican producers the Bond Club of New York at
preferred since the date of issu-[ also will find
it more costly toi its next luncheon
meeting to be
ance
(Aug. 30, 1934); however,;
purchase their requirements fronv held at the Bankers Club on May
be

cumulative

Raise Funds For 0S0

^5?

^

Birmingham El. 7% Pfd.

Board i of " Governors," to
serve
three; years, include Joseph A. W.

ernors

the " Porto

of

Most

acres.

,

dividends

dividend

3-0272

more

to

Rican

Members New York Security Dealers Assn.

acquire land

purpose;

Rican;;'pro¬
lato,",, but
the ' Porto
Rican i- Supreme
Court upheld it ih March,
Pre¬
pe-j
sumably, Eastern will be forced

pre-j

on Aug. 30, 1934, the date of reor¬
ganization of the old East Portoj

dunne & co.

whose

2

,

of

traded- ducers

«

requirement

cerned,

the

are

preferred stock

culiar

to

created

supposed
to
$9.16 was IS
$3.12; cooperatives and

Both

common.

and

The

over

been

the preferred and

on

ferred

Securities

is

$12 on-the preferred and between
$4.50 and $5.25 on the common.
earned

Sugar

has

$11 or

2y Alabama Mills

Nominations for members of the

<

'

Mortgage Certificates and

Company, has been nom¬
for Secretary, and Henry
Riter, III, of Riter & Co., for

Treasurer.

There is little question.but that the

.

&

inated

Interesting.
V-Price Appreciation Possibilities ; • • J-

.

6s/1949

....

ton

Both Preferred and Common Have

>\

Philadelphia & Reading
5s/1973

Ferris S. Moulton, of R. H. Moul-

EASTERN SUGAR ASSOCIATES

Available

now

Spring Outing

DETROIT,

.

Club

of

B6nd

MICH.—The

Detroit

that

announces

its Annual
be

held

Country

Spring Golf Party will
at
the
Orchard ;VLake
Club on Friday, May

22nd,

In addition to. golf, tennis,
baseball, swimming and horser
shoes, there will be active tradd¬
ing following dinner. .'"'/.-V/V/-; ;
Jones. B. Shannon, lviiller, Kenower .&
Co.,. is chairman^ of the
entertainment
committeee,
asr
sisted by Richard T. Purdy, First
of Michigan Corp.; Howard Par¬
ker, M. A. Manley & Co.; Reginald
MacArthur, Miller, Kenower &
Co.;.. Julius
Pochelon,
Miller,
Kenower & Co., and Charles C.
Beehtel, H. V. Sattley & Co.
{

Attractive Situation
Portland Electric Power Collat¬
eral Trust 6s/of

tractive

1950 offer

situation

at

the

an

at¬

present

time, according to a circular being,
distributed by Scherck, Richter
Company, Landreth Building, St.
Louis, Mo. Progress already made
toward

reorganization

Portland

Electric

of ' the

Power

Com¬

and legislation recently in¬
troduced, whose enactment could
cause a Sharp rise in the price of
the issue, are factors affecting this
issue of the company.
Copies of
pany,

+he circular
tion

in

request

describing the situa¬

detail

may

be

had

upon

ijrom Scherck, Richter Co.

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

'Number 4074

COMMERCIAL

and

MARKETS FOR

FINANCIAL CHRONICLE
K ;

Reg.

U.

8.

MORTGAGE

Publishers

s
,

'

•

;/.,■•;

issued

'

Editor and Publisher

i

D.

Published

•

twice

All

Other

w

other

local

companies ....;

Stock

York

beta

Members

Chicago—In charge of
.Fred H. Gray, Western
Representative,
Field Building {Telephone State 0613).
JLondon-rrEdwarda & Smith, 1 Drapers'
^Gardens, London, E.C.

Bell

Teletype

i

Copyright41942

,

'

by

William

SI. Louis

Dana

B.

-

Reentered as second-class matter Feb¬
ruary 25,
1942, at the post office at
New York, N. Y., under the Act of Mar.
1879.

ST.

Subscriptions in United States and
Possessions $26.00'per year; in Dominion
of Canada, $27.50
per year; South and

;; ?

for

our

N. Yv Commerce fiss'n

F.P.

Names New Directors

LOUIS, MO.—The Security 4>The election of four
tors

reports

to

the

new

F.

Com¬

Amslrong Heads
Jersey Bankers

Palmer

-

Industry Association, of
was
elected
that
many
of its officers and
New York, Inc., was announced President
of
the
New
Jersey
Central
America, Spain,
Mexico and members are in the armed serv4
on May 19 at the annual meeting
Bankers Association on May 16
Cuba, $29.50 per year; .Great Britain, ices of the country,
• « |
.'Continental Europe (except Spain), Asia,
of the members.
Three, elected at the closing session of their
Edward E. Haverstick, Jr.,.G. Hi
Australia and
Africa, $31.00 per year.
at the meeting, to serve' a term 39th annual convention at Atlan¬
Walker
&
NOTE—On account of the fluctuations
Co., the First Vice^
of three years, were: in the rate of exchange, remittances for
tic City. Mr. Armstrong, who in
President of the Security Traders
foreign
subscriptions
and
advertise-?
Club of St. Louis, has been com} %ts J. Andre, President, Shef¬ the past two years has served as
ments must be made in New York fund*.
Treasurer and Vice-President of
missioned to serve as Lieutenant field Farms Co., Inc.
the

'

United

Naval Air

States

r

'v

PACIFIC COAST

IN SECURITIES ^ £
Wyetii
■

Member Los

40

Co.

&

Inc.

••

Angeles Stock Exchange

tive

wall street

of

the

First

of

Boston

the

Cor¬

poration, has been commissioned
as
Lieutenant in the Army Air!
New York
Forces, and he is how stationed
at Wichita, Kansas.
/ t
j
C. Thomas Ayers is; now with
the Signal Corps located at Camp,
Crowder, Missouri. - > Mr.- Ayers
formerly- was. manager - of the*
Trading Department of Taussig;
f SAN FRANCISCO, CALIF.— Day & Company, Inc. Earl Essert'
Bankamerica Co., 300 Montgom¬ is stationed at the ,U« S. Naval /Airj
Base at
Corpus Christi, Texas.!
ery Street, announce that R. W.
•

Promote Executives

Essert

Mr.

have

Vice-Presi¬

elected

duties.

Birr is

Mr.

for

the

Mr. Glass is

and

trading
/; Paul

of
division,

manager

of the

department.
•
Muth
was
elected
.

.

As¬

sistant

Vice-President, in charge
of the San Jose Division; Stanley

the

v

of

•

_

v.

,

Aldred Investment Trust
,4.14»» 1967

Joseph NIcManus & Co.
Members

.C'r-//T
Weifl

York

:

Curb

Exchange
Chicago Stock Exchange

r

39 Broadway, New York

,

DIgby 4-2290

Tele. NY 1-1610-11

Newark,

-

Haworth

Hoch, of McCourtneyBreckenridge
; Company,
has
been appointed Third Vice-Press
ident, to serve the remaining part;
of this year's term. V;',. V
X'-' ;j
.

t"

-

Ryan, Assistant Vice-President in
charge of the Fresno Division; J.
'P. Colburn, Assistant Vice-Presiident in charge of the Long Beach
Division; S. Cleo Hunter, Assistant
Vice-President in charge of the
San

Diego

Division;

William

rmm—i,

...

Washington Bend G!ub
Ouflng;
WASHINGTON,

D. C.;

—,

The!

Board of Governors of the Wash-,'

Biuhm, Assistant Vice-President
in charge of the Beverly Hills and ington Bond Club announce, after
Santa Babara Division; Chester V. serious deliberation, 'that in the
interest

of

national

conservation

Emmons, Assistant Vice-President
and
ecohomy this» .year's Bond
in
charge ' of the 4 Reno, Nev.;
Club' outing, scheduled for Jiinef
; Division; Paul; Royce, Assistant
It wasfeiti
Vice-President in charge of the 12th, will be omitted.
with
the
recent
gasoline
Los Angeles Sales Division, and that
.

.

.

Kirk

C.

Dunbar, Assistant Vice-'
charge of Pasadena

President in
Division.

'

'

.

'

;!

rationing,
tires, and

•

the
conservation .; of
the absence of. many

members of the club in the armed

Frederic E; Irwin and John Vic¬

services, it would be well to, sus-i

added

pend the outing for the. present. XXj

Petermann

have

the firm's San

staff.

been

Francisco sales

Both have had many years

experience in the securities busi¬
Recently - being associated

V

ness,

Glger & SlaffWitli |
Selected Investments

with Franklin Wulff & Co., Inc.

(Special to The Plnauclal Chronicle)

Fred S. Goth Joins

f

'

Merrill

Lynch Firm

ST.

PAUL, MINN.—Frederick
S. Goth, well known in Twin City
brokerage circles, has become as¬
sociated
with
Merrill
Lynch;
/pierce, Fenner & Beane, First Na-j
tional Bank Building.
Mr. Goth
was formerly manager, of the bond
trading department for Piper, Jaffray & Hopwood in St. Paul and
/prior thereto was manager of the
Trading Department of the .First
•

'

National Bank of St. Paul.'




v

*

become

Selected

-

Company,

; South La Salle Street, :Chi\
cago, which is opening an office ip
St. Louis. - Mr. Giger*- a member;
of the St. Louis Stock

ing

Treasurer for the

as

Frank

year

dent

of

the

D.

First

of Morristown.

a

National

Bank

of

member

of

the

Mr, Shoninger was. ViceRalph T. Meyer: and

President.

also for4
Co. staff]

connected
with
Selected Investments Company.
have

become

In

Invited

Mtge.

Co.

Title

Co,

Ctfa.

Co.

Ctfi.

Title

Co.'s

Mtge.
ether

Trust

In
Ctfa.

Participations

Complete Statistical Information

L.J.G0LDWATER&C0:
INC.
Members New York

39

Security Dealers Assn.

Broadway, New

HAnover

2-8970

York,

Teletype

N. Y.
1-1203

NY

Executive

Maguire, President,

i

/

was

the

Jersey

to

the

of

work

of

convention

banks

victory

speed

in

S. E. Firms Association

New

Governors To Meet

through

Morgan, Jr.,
financial and credit aid to Gov¬
Board, Brooklyn
ernment and war industry.
■;
Bridge" Freezing & Cold Stor¬
<E. E. Agger, New Jersey State
age Co.;
Commissioner
of / Banking,
; Laurence A.
dis¬
Tanzer, Tanzer &
cussing
the
war
problems
of
Mullaney."
banking urged that bankers them¬
Stephen F. Voorhees, Voorhees,
selves * take
steps
to
withhold
Walker, Foley & Smith.
"
nonessential credit, so as to re¬

Completion of arrangements to
hold the next regional conference
of the Board of Governors of the

of
Stock
Exchange
Philadelphia was an¬
nounced on May 19 by Frank E.
Baker, regional chairman in the
tard ; the .v; inflation
effect.
He Philadelphia district. The 30 Gov¬
stressed the necessity for main¬ ernors who will attend the morciT
taining a sound banking structure. ing and afternoon sessions oil
The incoming
President of the June 15 and 16, will come from
Association, Mr,Armstrong, sound¬ all parts of the country. On June
'4 (Special to The Financial Chronicle)
i ed a keynote of cooperation in 16, members of the Philadelphia
financing
as
the Stock Exchange will honor the
; NEW HAVEN, CONN. — Win- Government
IhropB. Buttrick and John J. Col- theme of his administration. He group at a dinner in the Hotel
Warwick at which Ganson Purloty have become associated with pointed out that banks are going
Fahnestbck - & / Company, N 205: to be expected to take up some cell, Chairman of the Securities
and Exchange Commission, will
Church Street.
Mr. Buttrick was $20,000,000,000 in Government ob¬
be the principal speaker.
Edgar
formerly for many years manager ligations during the coming fiscal
of the municipal department for year, and stated that this means Scott, President of the Philadel¬
The R.-F.- Griggs Company of three times the capital assets of phia Stock Exchapge, will preside
as
toastmaster.
Other
speakers
Waterbury; with" which Mr, Col- each bank. "Thus," he said, "we
will be Emil Schram, President of
are called
upon to be a patriot,
loty was also connected, u
X
j
the New York Stock Exchange;
j producer, prophet, regulating
James F. Burns, Jr.", President of
agency and bond salesman all at
S Bendix To Be Partner
one
time, besides running our the Association of Stock Exchange
X Adrian A. Bendix will become own business in a better way than Firms, and Edward Hopkinson,
we
have ever done before."
Jr., Chairman Eastern Pennsyl¬
a partner in Ralph E. Samuel &
vania Group, the National Com¬
mittee of the Securities Industry
Virgil Gates In Boston
for War Financing.
Many prom¬
ity, members of the New York
(Special to The Financial Chronicle)
inent guests are expected to at¬
Stock;;:Exchange, on May 22nd.
tend the dinner, including:
BOSTON, MASS. — Virgil C.
'

Association
Firms

in

Fahneslock Go. Adds 4

Bulfrick, Golioty

„

.

•?.

1

1

j

fo., 115> Broadway, New- York
On

will

act

alternate

as

the floor of the Exchange for

Harold Eliasberg..

v

/

;

,

;

Gates is engaging in a general se¬
curities business from offices at 53
State Street.•>

..-:.;/->

•/;■

„■

v•

•

v:

•

-;

Arthur H. James, Governor of

Pennsylvania; Bernard Samuel,
Mayor of Philadelphia; Robert
L. Stott, Chairman of the Board
of Governors of the New York
Stock Exchange; John S. Fleek,

'IN VEST ME N T

S E C U R III E

S;X

Bankers

^

-viv'x^/-:'' ;• -X'■;'..
;/, -announce

•, X J
v X:.../
v, ■.x; ■
• -.x-'-X
the association with their, firm of the

XX-/: XX "/'/-■■; X'v- -';■'./"

■

sales personnel of

;

■

:

.

RVSS

BUILDING-

SAN FRANCISCO

650

SOUTH

Beverly Hills

Oakland

Sacramento

Modesto

Fresno

Eureka

Santa Ana

Jose

•

Amer¬

Dealers, Inc.; HowDavis,
Executive VicePresident of the New York Stock
w

T.

Jerrold

Bryce,

Securities Industry Liaison Of¬
ST.

LOS ANGELES

Stockton
San

SPRING

of

Securities

Exchange;

FRANKLIN WULFF & CO.

Investment

the

Association

ica; H. H. Dewar, President of
the
National
Association
of
land

•

of

President

H. R. Baker & Co.

Exchange^

formerly President of the flis-,
firm. of Giger & Co., of

Sylvan N. Sandfelder,
merly of the Giger &

Ocean

&

all

Bank

- They
were
Vice-President

Groff,

solved

which

and

Executive Com¬

na¬

ficio

Lawyers
Bond

,,

named.

were

Specialists

Inquiries
Lawyers

Abell, Presi¬
Bank

Are

REAL ESTATE SECURITIES

Three additions to

the Association's

S.

We

com¬

National

.:

135

w^s

the

to

G.

Chairman of the

associated; ,,with

Investments

named

mittee

Fellowes

>■'William

ST. LOUIS,

have

elected

Joseph

Parr,
President of the Trust Company
of New Jersey, Jersey City, who
was
previously
Treasurer, and

•

Jeremiah D.

MO.—Harold Henry
Giger and Richard S. Sboningeij

.

the

Federation Bank & Trust Co.

Mr..Bendix

H.

Association

'

Cancels Annual

H.

Service

The

Vice-Presidency

D. Leidesdorf,. S.
D. Committee.
LeidesdOrf,& Co. :)■ •■■ v.v"'4.j
The < theme

St.

Moore &

in charge

northern

formerly

Company, Inc. 1'
"
j
Bronemeier of Smith,
Company, has been ap-;
pointed Second Vice-President of
the Security Traders Club, and

Joseph

Secretary-Treasurer of the
company in addition to his new

'

Co.,

Co., Common

VSamuel

Jacobs &

Mr. Wild will continue to

as

sales

was

War

sociation were:.

Louis exchange trader at Semple,

been

dents.

to

Trust

City; John Annis, Vice-President
tional war effort.
Also reelected of the Camden
Trust Co., Cam¬
at the annual meeting to succeed
den.
In addition retiring Presi¬
themselves as Directors of the A$r dent
Chambliss becomes ex of¬

j

Wild, H. T. Birr and C. M. Glass

Association's

-gram" of cooperation with

Of Sankamerica Go.

tor

Union

Committee, in which capacity he George
is heading the organization's pro-, of
the

Telephony Whitehall 4-0650

-■>«'

Fidelity

4-6551

,

TRADING MARKETS

act

;E. y/ O'Daniel, Vice-President, the Association,- succeeds L. A.
Chambliss, Vice-President of the

American Cyanamid Co.
'
and is now; stationed >at
Quonset Point, Rhode Island, i;- ; ■Jr. Francis4 L. Whitmarsh, Presi¬
Frank
E.
Pelton, Jr., Third dent, Francis H. Leggett & Co.
At the meeting, announcement
Vice-President, who ■ was V asso¬
ciated with C. J, Devine & ComJ was/, also, made by John Lowry,
the Association's President, of the
pany as resident manager of theii;
St. Louis office, has beeri com-; recent, election by the Board, of
missioned as First Lieutenant ih Col., Allan M Pope, President of
The First Boston Corp., as a Di¬
the Army Air Forces; he is noW:
stationed at Miami Beach, Flor¬ rector to fill the unexpired term
of Malcolm
Muir, President of
ida,.;*;-/: ;X*/;X
Another member of the ,clubi Newsweek, Inc., who recently re-i
O. W. Rexford, local representa¬ Signed. Col. Pope is Chairman of

us

Christiana Securities

.

Corps,

WHitehall

Merck &

„

in

not

is

Phone

WALL STREET, NEW YORK

Armstrong, Presi¬
Banking Co..

dent of the Keyport
of
Keyport,- N. J.,

and

Sheets

Obsolete Securities Dept.
99

New

direc¬

the

Board. of

the

price before sealing the

Telephone:

merce

DIRECT PRIVATE WIRE TO LOS ANGELES

in

bargain!

Teletype NY 1-5

?

price

necessarily the ceiling1.

•

Members New York Stock Exchange

Traders|Glub

Traders Club of St. Louis

>.

FRICE CEILING

25 Broad Street, New York

.

j.''. Telephone HAnover 2-4300

Members In US Service

•

•8,

PREFERRED STOCKS

Spencer Trask & Co.

,

V

One Week Nearer: Victory!

Lebanon

City

Atlantic

Philadelphia

AND COMPANY

INDUSTRIAL

t;

•/;

Exchange

1-2033

NY

licrasifir

"

That

WHitehall 4-6300

St., N.Y,

offerings of

High Grade

.,

40 Wall

offices:

■--'Company.

-!

;

Newburger, Loeb & Co.

week

a

CO.

1942

[every Thurs5 clay (general news and advertising issue)
i
with a statistical issue on Monday)

.

MORTGAGE

N. Y. TITLE & MORTGAGE CO.f
STATE TITLE & MORTGAGE CO.
TITLE GUARANTEE & TRUST CO,

Jtiggs, Business Manager W

Thursday May 21,

by

LAWYERS TITLE & GUAR. CO.

William Dana Seibert, President
William

interested in

are

r

& MORTGAGE GUAR. CO.
HOME TITLE INSURANCE CO. *'•
LAWYERS

Herbert D. Seibert,

f

We

V ;
IffiXi

;

BOND

3-3341

-BEekman

.

;

CERTIFICATES *

25 Spruce Street, New York

I

'

Patent, Office

William B. Dana Company

\ ;

1931

Long Beach
Pasadena
San Diego

ficer

of

of the War Savings

the

Treasury

Staff

Department,

members of the SEC and a rep¬

resentative of the Pennsylvania

Securities Commission.

~...

.

.

■

1932

"

<

THE COMMERCIAL & FINANCIAL CHRONICLE

Chicago North Shore
& Milwaukee Ry.

Thursday, May 21, 1942

;-''v

issues';*

.

!

Nelmes Personnel Service

DOLLAR BONDS

SOUTH AMERICAN

Deep Rock Oil Corp., 6's due 1952
Des Moines

offer their facilities to

Ry. Co., 5's due 1955

We maintain

Howard Aircraft Corp., Common

active interest in these securities.

an

Inquiries invited. Our special memorandum

National Licorice Co. Com. & Pfd.

South America is available

;
1

1

j,'*',

"x v*

'

1

on

request..

on

'

v
-5

'

-

>'

'''r

-

.

mercial, professional, and advertising fields.

,

'Jj/'

We

are

-

unusually

'

WELSH, DAVIS & CO.

HICKEY & CO.

discriminating clients

for carefully-selected, outstanding office personnel, both men and women, in the com-

.■A

personnel

efficient

qualified to supply experienced and
tp investment bankers and brokerr.

SOUTH LA SALLE STREET

135

^,

135 South La Salle

.CHICAGO

.

Teletypes: CQ 1234-5-6

^

Direct'.private wire

St., Chicago

17 John St., New

Teletype CG 223

Tel. Franklin 3l6U

'

to Npw York

UTILITY

PUBLIC

INDUSTRIAL
RAILROAD

i

j

PERSONNEL ITEMS

ii

:

l.

MUNICIPAL

jrIf you contemplate making
send in particulars to the Editor

| REPUBLIC OF PERUV

J,

lication

ACAL1XN«®C0MESNY
incorporated

-

CHICAGO
New York

Boston

Philadelphia

Milwaukee

Detroit

Partial Interest Payments In View On

s

BONDS

v

Omaha

DALLAS

Sold

—

Dr.

-—

Dollar Bonds

Quoted

at

an

early date, debt service payments on outstanding dollar bonds.

It is understood that

preliminary discussions with the Bondholders

Pfd.

Great Southern Life Ins. Co.
Southwestern Life. Ins. Co. '

& Ter. 6% 1951

All Texas Utility Preferred
Check

us on

Stoclu

Southwestern Securities

perhaps being somewhere between
1% and 2% annually.
However,

TEXAS

DALLAS,

Ft. WorthrHouston-San Antonio

lems

able.

most

with

As

American

•

now

associated

with

(Special to The Financial Chronicle)

in

them

their

municipal bond department.
Mr. Halsey was previously with
B. J. Van Ingen & Co., Inc., and

Favre &

Emanuel & Co.

Building.

SPOKANE,
Duffy

BELLEVILLE,; ILL.
Ilemann

with

has

—

Peru's

meant

balance

trade

favorable

1941
a

The 1941

good year all around.
to

136,300,000 soles compared with

87,100,000 soles in 1940.
Of par¬
ticular significance in this connec¬
made despite lower

was

gold

As a result, the country's
exchange
position was

foreign
strengthened,
primarily in
the
closing months of the year when

gold and foreign exchange hold¬
ings of the Banco Central rose by
about 25%
Peru's

.

principal

exports

Washington of that country's

Selected

Investments

importantly, the following:

;
,,

Amazon Cor¬

The Peruvian

1.

organized for the
of hastening the produc¬

poration

was :

Hamilton

with

Com¬

purpose

tion of wild rubber. ' This is be¬

ing made possible through a fund
of

$1,125,000

available by

made

the United States for this purpose.

At the

same

serve

MASS. —Walter

has been added

Stevenson

'

F.

(Special

of

"'***

ILL.

f

Training

Station

at Curtis

Bay, Md.

remain

Chronicle)

of

on

A:?;v

He is

Company F,
He expects to
month and

a

active duty.

O. McDermott,

the

th^n* '18

more

commissioned

been

a

mem¬

Stock

Chicago

change? for
has

in

there about

Francis
ber

—

(Special to The Financial Chronicle)

"r

"i"1,1

located at the U. S. Coast Guard

Robert B.
Pennington, formerly for many
tion
pop five" years.'
years with Patterson, Copeland &
2. Agreement for the purchase
Kendall, Inc., and Halsey, Stuart
of Peru's surplus cotton by the
& Co., has become affiliated with
Commodity Credit
Corporation,
Behel, Johnsen & Co., Inc., 29
previously referred to.
At the South La Salle St.
same time, Peru agrees to reduce
cotton plantings and to increase

production

'A-

.'

then leave

The Financial

to

CHICAGO,

Elmore, Heath & Co., Cen¬
Building.

States Naval Coast Guard.

Kinnon & Co.

time, the Rubber Re¬
agreed to pur¬

L.

affiliated

In Armed Forces

St. Mr. Stevenson in the
past was with Christianson, Mac¬

Company

become

Floyd D. Cerf, Jr., of Floyd D.
Cerf Company, 120 South La Salle
Street, has enlisted in the United

gress

chase all of Peru's rubber produc¬

KAN, —William

has

$3

the

to

-'• *

.

staff of Raymond & Co.; 35 Con¬

:

are

tral

(Special to The Financial Chronicle)

BOSTON,

WASH —Leo
R.
with
Murphey,
Co., Spokane & Eastern
now

(Special to The Financial Chronicle)

associated

become

is

TpPEKA,

L.

John

pany, 135 South La Salle St., Chi¬
Minister, Senor Dasso,
cago. Mr. Hemann was previously
some weeks ago.
The agreements
a Manager of the local office of
signed by Secretary Hull and Fi¬
Giger & Co.
nance
Minister Dasso
included,

South

the

of

most

countries,

exports.

SECURITIES

■

prior thereto with Southgate

&co.

Finance

ment

LISTED AND UNLISTED

mad^ after the arrival

were

in

tion is the fact that the improve¬

DETROIT

'

-

and

(Specialto The Financial Chronicle)

encouraging, especially
have not been hon¬
ored in over ten years, and points
to the willingness of Peru to meet
its
obligations as she becomes

fav,orable trade balance amounted

RAUSCHER, PIERCE & CO.

( t

,

Of course, it is to be

Solution of and concrete agree¬
ments on Peru's economic prob¬

the step is

New Mexico Gas Co. Com. &

column.

YORK, N. Y.—Coffin &
Burr Incorporated,
70 Pine St.,
announce
that Cabell Halsey is
-

dollar bonds!
As a result of recent closer economic and financial cooperation be¬
tween the United States and Peru, the latter has agreed to resume;

since coupons

Pepper

in this

additions to your personnel, please
of the Financial Chronicle for pub¬

ANEW

expected that whatever payments^
are made will be relatively small,

Republic Insurance

Dallas Ry.

Outstanding U

Good news is in prospect for holders of Peruvian

Protective Council have already been initiated.

Bought

Tel. COrtlandt 7-7455

York

Ex¬

-years,

Lieu¬

a

tenant in the Naval Reserve

as

aviation volunteer

specialist.
has left Chicago for a 30-day
cial

indoctrination

naval

course

an

He
spe¬

at

the

academy at Annapolis.:

'

.

otherwise

crops

Daniel Zick, Farwell, Chapman
agricultural commodities, and, un¬
CINCINNATI, O. —Griffith R.
heeded.
like metals and petroleum which
Dye is now with Merrill Lynch, & Co., 208 South La Salle Street,
3. The establishment of a $25,are worked by foreign capital, the
has
been
commissioned
a
First
Pierce, Fenner & Beane, Union
000,000 credit to Peru through the
farming business is largely owned
Trust Co. Building.
Mr. Dye was Lieutenant in the Air Corps and
Export-Import Bank to be used to
is stationed at Miami Beach, Fla.
by natives and the profits are kept
assist the financing of purchases previously with Otis & Co.
in the country.
The betterment
-

Charles A. Parcells 6* Co.
Members

of

Detroit

Stock

Exchange

Peru's

in
BUILDINa

PENOBSCOT

DETROIT,

1941

crop,
come

chase

4S.

due

was

in

almost

the increase

out, it looked bad for the cotton

NEWARK

v..

1940

in cotton
exports, of which Japan took over
60%. When the Pacific war broke
wholly to

MICH.

Public Service Coord.

balance

commercial

over

Transport

the

but this fear has been over¬
by our agreement to pur¬
all

the

duration

surplus
of

the

4s, 1949

Hoboken Ferry Co.

/

there

country, and the cotton crop will,
in -turn, be reduced by at least

J. S. Rippel & Co.
Established 1891

18 Clinton St., Newark, N. J.
MArket
New

York

3-3430

Phone—KEctor

2-4381

.

regard

ment of

agricultural, mineral and

industrial

production

to

antimony
and vanadium.
Oil, too, will be in demand by the
Allies, who will, no doubt, take
up the slack occasioned by loss of

sten,

in

hemispheric defense.
4.
An agreement to send to
(Continued on Page 1944)

(Special

LOS
W.

&

Elects Foster President
The election of W. Leland Fos¬
ter

President

as

of

the

Chapter
of

tute

of

the

Chicago

Banking

Foster is

Mr.

Federal

is

Insti¬

announced.

associated with the

Reserve

Merrill

Lynch,

of

Bank

Chi¬

Harrison
nected

The

to

Financial

_

Chronicle)

CALIF.— James

Logan has become con¬

Savings Bank Building, f

l4ie

(Special to

National
elected

of the Amer¬

Bank

&

Trust

Treasurer.

This

Co.

Specialists
iiums

St/x

s,

Co.

:

;

509 OUVE ST.

Brailsford,

South La Salle Street, members
the Chicago

Merrill

Lynch, Pierce, Fenner

& Beane, 523 West Sixth St., Los
Angeles.
v AX '

LouIb

Stock

r

Exchange




of

states

that

new

di¬

the

chapter include
Johnson, American

Howard

J.

Bank &

Trust

Co.; Ed¬
Kucera, Pioneer Trust &
Savings Bank; Kenneth G. Mor¬
ton, First National Bank; Lester

30 Broad Street

New York
St.

rectors

by Nancy Mclnerny)

Telephone:

Bell Teletype:

WHitehall 4-4950

NY 1-656

J. *

Norvell,

Continental

Illinois

National Bank & Trust Co.; Theo¬
dore O'Bryan, The Northern Trust

Co.; Arthur E. Urick, Harris Trust
Bank, and George McCament, Federal Reserve Bank of
Chicago.
& Savings

&
Co., 203
of
Stock Exchange. Mr.
Swift was formerly with J. H. Bell
& Co. and Taylor, Duryea & Co.;
Rodger

prior thereto he was an officer of
(Special to The Financial Chronicle)

:

Drum & Co.

PORTLAND,
Arthur

man

Warner

Building.

previously

with

&

Mr.

Co.,

Chap¬

Libby

Baldwin

&

Veteran Is Back In Army
CINCINNATI, OHIO

was

Co.,

is

ward J.

KEIPER and ZIMM

Members

also

National

bonds

'

column

which

latin american

SAINT LOUIS

J

its

in

L.

Thomas

of

learned from

the Chicago "Jour¬
nal of Commerce" of May 15 (in

—

Boyd has been added to the staff

J.

Chicago Chapter

Cole

Chronicle)

to The Financial

(Special

t PASADENA, CALIF.—Andrew

President of the
Frank C.

Brailsford, Rodger & Co.
;,f.;

Swift has become associated with

Trust. Co. has been elected Vice-

and

Thomas Swift Is Now With

CHICAGO, ILL.
Financial Chronicle)

ME. —Ralph G.
Libby has become associated with

tinental Illinois National Bank &

the

to

with Hill, Richards & Co.,

Citizens

It is further made known

cago.

volunteered his services
Navy, in which he is now
Lieutenant, junior grade.

having

Pierce, Fenner

Beane, 523 West Sixth St.

a

that Andrew J. Paine of the Con¬

ican

customers.

American

partner

Co., Esperson Building, Houston,
Co., has joined the staff Tex., has retired from the firm,

PASADENA,

Chicago Chapter A*1B,

Henry Beissner, Jr., formerly a
in Moroney, Beissner &

Chronicle)

Financial

Johnson, formerly with Dean

Witter &
of

to The

ANGELES, CALIF.—Ellis

(Special

was

other

ST. LOUIS

useful

.

exports of other
commodities, the outlook is good.
Among these are sugar and nu¬
merous
strategic
minerals, • in¬
cluding copper, lead zinc, tung¬
In

;

planted in flax, for which
is a good demand in this

this amount.

1st 5s, 1946

and

About

has been

Jersey Cily, Hob. & Pat. St. Ry.

materials

States

equipment for productive public
works projects, and the develop-!

cotton for

war.

10% of the normal cotton acreage

1990

United

of

UTILITY

commissioned

in the Army

as

a

SECURITIES

Air Corps.
I, Kountz served

France

in

Securities Co.
Incorporated

CHICAGO

and

■

Belgium,

awarded the Silver Star,

and

was

the

Order

of

the

and the Verdun

Thompson Ross

has

Captain

a

Sergeant in Co. F, 147th In¬

fantry
INDUSTRIAL

as

In World War

RAILROAD
PUBLIC

Bldg.,

Terminal

Dixie

Co.,

AND

George

Kountz, Manager of the Mu¬
nicipal Department of Einhorn &
been

MUNICIPAL

—

H.

Purple

Heart,

Medal.

Captain Kountz, who has been
in the bond business
20

years,

for the past

is married, and has a

ten-year-old son, Dick.

He is to

report for duty in Washington oil
May 27.

- *

V•

W:s

•■:

•

•

i

THE COMMERCIAL ^FINANCIAL CHRONICLE

Number 4074

Volume 155

1933

r

Guaranteed

Tomorrow's Markets

Railroad Reorganization

Railroad
Stocks

Walter Whyte

Securities

|

Bank of Montreal

3o$tpb Walkers Sons

Says

Memktrt Hrw Yirk

Canadian Bank of Commerce

Sink Extk^mft

Dulcr* In

120

Broadway

Members

STOCKS

NEW YORK

PFLUGFELDER, BAMPTON & RUST

Tel. REctor

GUARANTEED

2-6600

•

61

^SJnc.1855

"Peace"
Street.

are

everybody!
with war; they

Market

sell-off

due

factors, not

By

news.

WALTER

Wall

Street

is

Before

#

the

went around with

everybody
glum faces,

worried about what the
ket

would

do

if

come.

When

come

everybody

it

about. what

mar¬

would

war

finally did
was

troubled

stocks

to

buy.

tion,

recall

the

World War I

the

much

of

favorites

like mad.

ones

to

of

the

of

casts

:

a

memory

chauvinistic

to

fore¬

the

our

officials

own

finally

war

"

•

in

the- Street-

half mast.

started

were"
breeches at

came,; we

caught with
Then

pur

>;

V'

-.

.

The £ same is true of the
happen if the United States i
got into it. Well, today we are stock; market, though to a
in tip to,. jttere.V But the war lesser degree, ! With peace
babies of yesterday are the murmurs all around us, the
market vis beginning to slip
neglected orphans of today.
;
*
*
'■ * i
.off from its highs, That this
As this is being pounded reaction is normal, as a recog¬
out on the typewriter, the nition of previous ? resistance,
Street has a new worry. This levels,- is
blithely ignored.
time it is Peace. Now every¬ People - who ; buy
and v sell
always
want
body wants to know what will securities,
happen to securities if hostili¬ reasons. The more fanciful
ties cease sooner than ^ex¬ these are, the better reception
pected. if This leads' to other they get.
\ \
•

.

t

thoughts. •; A : problematical
Yes sir, Wall Street is a
is, according to rumors,
::
.:;
just around the corner. Re¬ strange place.?!
markable how the Street, with
peace

enough

business

Last week I went out

to

on

a

Open its doors mornings, gets
all excited about a mythical
:

chase of two additional stocks

"peace."

to

•

1 ■-v .??:>';

*

*

the

advised

the

already

ones

But

pur¬

recom¬

in

wishful

to

far the sell off has not been

is v also

serious,

That the failure of the

true.

much

vaunted

German

based

war

be.

v

on

But

I

•

doubt ' whether,

recent

action, it will-

side

slip is in
machine to get going against- ! the
offing,?,: whether V it;-, be
the Red Army, is also partly caused by news or be just a
Responsible. 5Yet. the failure technical manifestation:> ??:?
of

offensive,

an

or

the

some

success

of one,

doesn't make for an
At this ' writing you? still
early peace. Wars are not be¬ hold- the ..following ?issues:
gun or ended on battlefields. Atchison
(.•at? 35V&;? Interna¬
They start and end frequently tional Harvester i;43; Union
on economic fronts.
Germany Carbide 59 and Western Union
didn't lay down its ;.arms in
at 25^. -Their, critical levels
1918 because its armies

defeated in the field.
the
/

breakdown
.

v

•

.

morale, " brought
economic

oL

war

to

an




.all

;

•

about

of

■

?/?

'•

by

that

end. ' "

■

The

.

NY

1-395

Montreal

1 '

Toronto

and away
from the reorganization list which
had pretty well monopolized at¬
tention for
For

least

rtwo/.'stocks?'

(Continued

on

a

year

or

more.

thing, there has been at
partial clarification of the

probable

now

final

dustrials

favorable

a

vested capital base.
ors

Member!

New

York

New

Stock

Exchange

York

Available

Chicago

For Contact Woik

viously been switching from these
utility and industrial equities into

reorganization
rails
haven, and who have
sell

stocks

as

tax

a

We

their

seen

in
the interim have been switching
back with substantial profits.
?
The second factor is that

what of

RAILROAD BONDS
.In

some¬

uninformed
the

railroads

in

post-war

a

eco¬

market consider¬
long.
Considering
the magnitude of the war effort
a

must- be

obvious

inroads

ings

into

that

of
dividends, already very much in
evidence, will have a sobering ef¬
fect on equities. At the same time,
any rational appraisal of the sta¬
tus of reorganization bonds proves
them to be outside the "war baby"
class. / Reorganizations have been
set up on the basis of severe de¬
pression earnings with capitaliza¬
tions deemed impervious to any
post-war deflation. In fact, when
contemplating the post-war po¬
tentialities, it is difficult to con¬
and

a

-

the

steady paring

„

safer haven for invest¬

funds ;than

reorganization

whose
present prices
largely,.or wholly, represent new
bonds they are to receive/
!
7 At the same; time -that /there
have been developments tending to
Securities'

attract

buying attention to other

sections of the

list, there,has been

little constructive news of a spe¬
cific nature bearing

on

the

reor¬

ganization r. picture. -*.* /There have
been
no : important . interest
re¬

ganization/procedure. This news
stalemate
is. apt
to.,bebroken
shortly.
?- ■.?*' ' ?!
/ /The most important potentiality
-

which

should

is

on

formed

WALL

NEW

ST.,

3-3450

reorganization roads.

In^

P 1,

'

on-this

point

some

Action is generally

expected to be favorable for the
carriers/ providing - fop - an
in¬
-.v/it■>■..Li¬

connection.

.Please

Interested

■

contact

or

address

Financial

Box

Chronicle,

25

Spruce St., N. Y. C.

CO!

YORK

Teletype:

NY

1-2051

new

capitalizations

allowed

by the Commission. Such remedial

legislation will relieve the roads
from the threat of

insuperable ex¬
profits taxes inherent in pres¬

cess

ent

interpretations
laws.?

tax

of

will

It

.

existing
materially

strengthen the position of the pro¬
posed new equities and should ex¬
pedite a number of reorganiza¬
tions where,
as in
the case of
Misosuri. Pacific,
opposition
of
junior
creditors
has
centered
mainly around the inequitable tax
burden faced by the reorganized
•

company.

?§?

^i?

.1

Court decision by June 1 on peti¬
for rehearings in the "St;

Other potential reorganization
developments looked for Mn the
near

none
of these prospective
developments will have as broad
significance as the tax legislation,
each will have some significance
as
bearing on the general reor¬
ganization machinery, and to that

extent will

Island"

plan

on

the 'Frisco and "Hock

plans,-a final Commission

for

Western,

stantial

Grande

confirmation

court

Missouri

basis of

&/ Rio

Denver

Pacific plan on

the .creditor vote, a
interest request by

Haven" and,

possibly,

have

that

bases

pect

a

influence

an

the entire market.

It is

on

on

these

railroad

analysts ex¬
broadening of the interest

in the general list during the next
few weeks, bringing to an end the

unhealthy

"rumor,"

selective, and largely
market experienced in

the recent past.

-

.

a

of

the

sub¬
"New

Supreme

Tourist Gas Ration Cut
The

future include District Court

decisions

the

While

?!?

Canadian

Legation

Washington announced
that

Canada

gasoline

would

ration

May 12

on

reduce

for

/

-

in
the

'American

tourists

entering that country, be¬
ginning May 15. This is the date
that rationing of gasoline begins
for nearly 9,000,000 motorists in
17 Eastern States.

the

new

It is stated that

Canadian regulations, is¬

sued
As brokers
•

on

we

blocks

Invite inquiries '

or

odd lots of

•

by Oil Controller G. R. CoU
trelle, will abolish the • 20-unit

coupon

highest grade rails
We also maintain net markets in

ists

SEABOARD

in

book which permits tour-*
Canada

line

and

ration

ALL FLORIDA

;::

more

than 48

100 gallons of gaso¬
allows them to obtain

book

with

units sufficients

gallons. /
-

for

hours to buy

a

/

four

coupon

buy 20 imperial

?: ?

■■■

:

6s/35 Bonds & Ctfs.

Defaulted

RR Bond Index

The defaulted railroad bond in¬

quarters look for legisla¬

time in. June.

the

Paul" and "North Western" cases:
the

stimulate

.the question

ex¬

dealers

tions

mission,. and there have been no
court decisions bearing on reor¬

one

{

A. STRASBURGER &
1

WHItehall

quests lately, no important plans
have been completed by the Com¬

and

issues.
Invited ;

years'
on

throughout

wholesaling

work.

earn¬

inevitable in future tax

are

bills,

same

Inquiries

;

lEROY

further

corporate

of

V

;,

brokers

seeks

prevailing levels for coupon bonds

Neither of these factors is

ation for very

14

major portion of the country

in

to "beware of

sources

expected to be

it

and

Form

substantial concessions below

at

/; -

tax

Registered

a

developing

nomy."

Advertiser with

supply several lots of

perience in calling

"peace" psychology has
ever
since the
beginning of spring, and buyers of
rails have -long been cautioned by
been

can

off sharply

Page 1938) /;/" vested capital base- independent of
'

WALL STREET

NEW YORK /

.

Bear, Stearns & Co.

in¬

Many invest¬

.....

♦ <*** f* rt ftrtUti

72

Issued)

?

and speculators who had pre¬

tive^ action

recom-

(When

bill

with

Van Tuyl & Abbe

Securities

fairly obvious
will lay the
greatest stress on drawing off ex¬
cess
profits.
It will, therefore,
work less of a hardship than the
original Treasury proposals
on
public utilities and selected in¬
the

Underlying Mortgage Bonds
Information upon request

Reorganization

1942 corporate tax pic¬

ture, and it is

that

allowed

<?

>

Railroad

one
a

RAILWAY COMPANY

,

market,

•

*„.f •*

Teletype

CO!

HAnover 2-098#

SEABOARD AIR LINE

There have been two factors tending to focus
"" ■:/' / '
'
1
;

other sec-^'

on

of the invested capital base to be

•.$*y"s;<~y v,
y

month.

a

the

the entire list,

are

positions-continues in ef¬

fect.
-

they

violated the advice to retain

was

civilian

.

still hold: arid^ until

were

It

p r e s s u r e,!

brought that

two weeks to

ment

of it is due

N. Y.

general defaulted rail market has been in the doldrums for

speculative interest
tions

ceive of

thinking,

WILLIAM ST.,
Bell

month, with volume of trading off sharply and the usual
trading favorities fluctuating in a fractional range.
Such action was
not entirely unexpected and many rail men are of the
opinion that
the overall tone may not show any significant change for another

that

some

52

a

beyond

prices were then ap¬
That a great deal of it is based
proaching a level from which
on Axis
propaganda, is prob¬ a sell off was indicated. So
able- That

The

about

spite of the
recommendation, I warned

me.

SECURITIES

New York

latest peace

is

based

is

and

mended.

this

On what
talk

limb

':

W/2S, 1961

5J/^s, 1952

HART SMITH &

RAILROAD

former

thinking about what would

hardly

United .Securities

i

Army, Navy and on the
buy. So right away the steels, floor of Congress, who were
coppers, airplanes and other so? busy ; pooh-poohing
the
immediate beneficiaries of the Japs and the possibility of;
hostilities began running up being embroiled, that when
were

Can. Northern Ontario

Teletype—NY 1-310

SECURITIES

'

take

after due delibera¬
the general consensus

that

*

,

j.J

Finally,
was

Bell

'

REORGANIZATION

Sun Life Assurance Co.

;

Can. Northern Pacific 4s, 1950

New York

...

.

imme¬

Time and again I have read
''expert" opinion;!about how
Germany could ; not start a
war, or fight it long, because
of ersatz material; oil, avia¬
tion
gas,
rubber, etc.,4 etc.
Well, up to the time the Nazis
ran into the Red
Army, which
by the way, not a military ex¬
pert thought much of, she was
doing all right.1 And so far as
military experts go, it doesn't

*

war

the

in

>

place.
❖

is

* /

strange

a

/

anybody thinks that such

condition

4 ,:Vv

ft#'"

WHYTE

'

Exchange

/.

RAILROAD

offing in Hitler's Ger-1
many, they are mistaken..:, .!

reaction

near

Stock

Broadway

Teletype NY 1-1158

diate

Con¬
"buy"
point, not warning signal. I??;?!?
sider

If

>

a

tech¬

to

York

i

worried about peace.

now

nical

Bell

In the past

concerned

was

New

Telephone—DIgby 4-4933

sweeping the

rumors

,

Royal Bank of Canada

aei\.

1. h. rothchild &
•

specialists in rails

11 wall street
HAnover 2-9175

/

co.
'

n.y.c.

Tele. NY 1-1293

dex

of Pflugfelder, Bampton &
Rust, 61 Broadway, New York
City, shows the following rang*
for Jan. 1, 1939, to date:
High—

40%, low—14%, last—37.

THE COMMERCIAL & FINANCIAL CHRONICLE

DIVIDEND

J
I

Company
DIVIDEND

The Board of Directors of Ameri¬

Cyanamid

Company

May

on

19, 1942. declared a quarterly divi¬
dend of llA% ($.125) per share on
the

1,

1942

of

close

business
"v

1942.

The

„

COMMON DIVIDEND

Cyanamid

Company

dend

of

Company,

the

May,

o*

Share

Bearer

no

Warrants

win

that period.

during

Tax

of

Act

The

will

tax

deducted

be

cheques

of

account

for

Canada.

at

shown

-,

United

the

in

States

for the

Canadian

tax

is

allowable

against

the

Federal

In¬

their

on

return.

tax

by

•

credit

a

source

United

ebe

;

resident

that

advised

tax

all

must
accompany
presented
for
payment

coupons

of

come

shareholders.

non-resident

Certificates

Ownership

withheld

United

tax

States

to claim such

In order

States

credit

authorities

require evi¬
dence of the deduction of said tax, for which
purpose Ownership Certificates (Form No. 601)
must be completed In duplicate and the Bank
cashing the coupons will endorse both copies
with

certificate

a

relative

payment of the tax
to the Shareholder.
available

at

local

and
If

to

the

return

deduction

Certificate

one

No.

Forms

and

601

not

are

United States

banks, they can
b? secured from the Company's office or the
Royal Bank of Canada, Toronto.

Payment of

(a)

(ZT/zf).

Regulations:
dividend to residents

this

countries

occupied

enemy
•

is

•

•

>

.'

of

pro-;

< - •

banks

to

Corporation

payable June

b.)

v

in

Canadian

a

15,1942, to stockholders of

all

of

amounts

payabie

them.

/ / \l":'

(c) Other
this

vert

May 29, 1942.

Bank

non-residents

dividend

at

of Canada

current

con¬

may

Canadian

Foreign

Control rates into such foreign cur¬
rencies as are permitted by the General Regu.at.ons of the Canadian Foreign Exchange Control
Board.
Such conversion can only
be effected
through an Authorized Dealer, i.e., a CanacLan
Branch of any Canadian Chartered Bank.
.^9;
Exchange

Checks will be mailed.

|

Shareholders
residing in the
United
States
ftiay convert the amount of the current dividend

a.

into

-United

of

take

States

currency
at
tne
official
Foreign
Exchange Control
race
by
sending at their own risk and expense, cou¬
pons, or dividend cheques properly endorsed, to
The Agency oi The Royal Bank of Canada, 68
William Street, New York City, which will ac¬
cept them for collection through an authorized
dealer, or direct to any authorized dealer of the

this

commercial

'./

;!§;
'

/jf

treasurer

■

Philadelphia, Pa.

'7'; 1

'

May 15. 1912

1

pal

'

D

i

PHILLIES

MAKERS OF

Canadian: Foreign,- Exchange:"Control

The

'

sion

*

Shareholders residing

the

United

hibited

of

above

as

the

States

current

in countries other than
payment Is not' pro¬

to whom

noted may
dividend

convert the

by

_

sending

rigfc and expense,
coupons,cheques properly endorsed to The
own

of

Canada, King
Toronto, Canada,

ELECTRIC BOAT COMPANY

:

p/'\./v

New
The

Board

clared
the

York,

Capital

Stock

has

this

cents

per

the

of

'//: 999,

Y.

N.

Directors

dividend of, fifty

a

-

of

to

or

10,

1942,

day

.

close of

business

May

27,

of

By order

the

at

Transfer

1942.

May

15,

Trust

Agent.

H.

A.

.

G.

W.

;

Church

56

Y.,

of The

authorized

Royal

eign
Exchange
Control
Regulations
country In which they reside.

payable

record

Checks will be mailed by Bankers

;

N.

Street

other

any

Bank

of same, but they should first satisfy themselves
that this action is not prohibited by the For¬

de¬

share on

Company,

to stockholders

Church

to

or

Bank
Branch,

Canada, 68' William Street, New York City,
U. S. A., with a request for a draft in such
foreign currency as is oermitted in settlement

-

June

and

fhe Agency

their

dividend

Royal

of

33 Pine Street"

v.'

'

dealer

amount

at

or

TAYLOR,

Toronto

Co.,

15th

.

of

the

of the Board,

J.

WHITLING,

Association

estimates-

for

of

Street,

2,

'V

1942.

>'

-

j

In

addition

curities,

to

Dividend No.

may

from

the

Accumulated

Sur¬

the close of

1942,; to stockholders of record at
business May.29, 1942..
t-

plus of the Company a divi¬
dend of Fifty Cents ($.50)
per share
on
the Common

Hi E. DODGE.Trpasurer.

V:

payable June 30, 1942, to stockhold¬
ers
of record at the close of business on
June 9, 1942. Checks will be mailed. ;

The United Gas and '

Philadelphia, May 15,1942<9

;

Treasurer.

S.

:U.

V.

',-'1
One

LOUISVILLE

CHICAGO
■>

AND

a

on

dividend

May
the

cents

29,

1942.

the

dividend

120

bank

loans made

to

sub-contracts

A

.

on

KNOUREK,

Treasurer.

been

cents

declared

OFFICE

OF

COMPANY

Chicago

STATES

NORTHERN

tion,/ payable
of

record

Company

THE

May

and

(Wisconsin),

one-quarter
the

able

record

1942,

12,

1942,

check
as

for

of

declared

Stock

June
the

1,

N.

H.

of

at

a

of

ending

of

per

cne

the

pay¬

A

of t nary

to stockholders
business

May

20, *

May

1942.

'

3UCKSTAFF.

Treasurer.




j

'

-

haye

share

Copper

today

Corpora¬

June 30, 1942, to stockholders
the
close
of
business
on
May

GREAT

•

would

.

and

'the

New

'

>

.

and

Assuming,

rating J ordinarily

.traders

that

The FDIC has indicated:
merely because the ratio; of

29

capital funds to deposits and

should

earn¬

ated

expansion

in

(not

capital

June 30,

•'

-

be

And the normal peacetime

Frederick

legal

C.

the

U.

8.

-

♦

-

A.,

L.

Schuster,

Vice-

President of the Lehman

Corpora¬
has been elected ^ to the
tion,
Board
of
Directors, it was an¬
nounced
today by Robert Leh¬
man', President. Mr. Schuster has
been

associated with the Lehman

Corporation since its formation in
1929

has

and

for

been

Research

estimate), of
maturity, yielding

in

the past five years
charge of Economic

for the firm of Lehman

Brothers.-

-

]

TseKman Corporation is one; of
the

largest

of

management

type

$49,000,000. In addition to Rob¬

reduction in pres¬

earnings .of

about

took,

banks

in

more

the

New

only

York

•

gK°S$

&hove basis be
about' twice

of

a

15%

operating
40%
V;

W

rviA

i

earnings

reduction

by

caused

Calif. Business

High

i

of

level

a

of recent

the

months, according

Current

Business

Outlook

the

New

just released by the Wells Fargd

more

Gov¬

Bank of San Francisco. The Wells

that

City banks took

loans, that they.should not exceed
10% of capital and surplus): will

Stock

'

26,
close

cf
of

Company

26,1 1942,

close

of

dividend

Stock
1942.
cf

to

to

has

per

May

share

J
: >:,/ V'<

June

been
June

2,

.

cf

1942.

share

declared

2,

of

the

on

Pre¬

Southern

declared

stockholders

$4.50 per

20,. 1942. f

on

Great

been

stockholders

business

C„

Alabama

has

business
of

D.

$4.50
The

payable

record

'

f

?

the

from

at

1942.

c. e. a. McCarthy.
Vice-President and Secretary.

peacetime*investing

limitations, individual banks must
and are as a patriotic necessity
participating to the fullest in the
War

on

that

excess

banks

reserves

must "have

with which to

expand earning assets further for
the War effort.
'
:'v
Excess

for ^example;
of New York City banks are- down
reserves,

to. $535,000,000,

March 9, 1938.

•

the lowest since
At present fexpari^

at
;

THE YALE & TOWNE

the

On

May

fifteen

cents

the. .Board

payable
at

the

19,

close

1942,

< 15c)

a

1,
of

MFG. CO.:

dividend ;Nq..^ 207

per -share /was

of.. Directors., out-..of

July

in Governments would

ital-ratio

of

8.5%

assets, which would

mean

of

then

in

cap¬

consist

of about three-fourths in Govern-

declared

of

by,

ities^;
A. The

to

past

term

Governments

is

stocks

who

shares

because

have ^retained

of their

their*

need

fori

should steady income—especially insur-i
dividends be reduced, in order to ance companies and trust benefi-;
are not primarily inter¬
absorb the effect of the higher ciaries
taxes; .and any net earnings im¬ ested in growth in-book value,
provement from,; expansion then from larger ploughed back-earn J
be added to the ploughed back
ings, as is evidenced by prevailing
earnings?' It is obvious that no
amount of ploughed back earnings large market discounts of> book,
is going to hold up the capital values/ The June dividend meeK
ratio' in the face of mounting volings
of
banks,' therefore,
are
iume of earning assets required by
iawaited with particular,^interest
/

question

.

arises:

—

?

earnings,"; the War effort. •;"
;; :
record
Li-In' .view: of this, / why reduce
business' June 10. -1942.- 'f
f. dunning,- secretary. 5,. dividends when volume
expansion
1942,

medium

likely to offset higher taxes and
leave a margin for other costs?
Many bona fide investors in banW

earning

Nevertheless,';it ."is merits, - of- mediiim-terrti' matur¬

effort.

apparent

Ordi¬

payable " June
record

release

.

L.

activity in California
during April maintained the high
to

To Vthe, extent

Wendell

Business

tax scale.

York

includes

:

$9,790,000 effect

estimated

Brothers,

Directors

A. Morgan, Herbert P. Howell, J,
Herbert Case and I. J. Harvey, Jr.

.

$18,000,000^or^still

the

V'iif

partners
the Board

Willkie, Dwight F. Davis, Thomas

indi..

reported

other

and

Lehman

of

City

expansion power of their
excess reserves-the

.

f'

„

and

of

$3,000,000,000

Governments—the
^

Trusts

erta Lehman

>

re¬

national ^ bank

on

Street, E.

Berkeley Square, W. 1:

of

operating

,Present
banks,^1-1?^^

allowed for by
and!; short-term

Threadneedle

Elected Director

no

Governments

$89,ooo,ooo.;;, : "

•

medium

.

March 31 of this year net assets

bank ratios would mot indicate

ratios

theso

on

ent

But, since the increased earning
woufd consist!5 mainly ,: of
Government securities^ the decline

of the

in

OFFICES:

Investment

;;Even; if

the effect

interested

J

estimated 15%

ratio

the Commission declares, and Prodeclares, and pro-:

travellers

*
-

to. investors.

additional gross would amply off¬
set the effect by heavier taxes of

1941 to, 8.1%

impaired soundness of the

'

in

is

average of say, 1% gross and .6%
after 40%
taxes, the $33,000,000

assets'

in

term';

/

over

Australia,

banking service

throughout

the

of

With

"

30,

10.2%.

in

of

Agency arrangements with Banks

extreme

an

medium

Governments

the

reduce

one-fourth

take

$22,000,000,000

ing assets is less than 10%; it will
not
be
concerned, provided the
quality of bank assets remains

and

47

For example, if New York City

v'

States

LONDON

impediments to volume expansion

must go.

that

all

countries,

'

therefore,

In

efficient

it

make

.

X

/

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

"and

term

secured by Governments

vances

credit :1%.

be

not

would. not

largest bank in Australasia.
branches

870

have to
Federal,
where the borrowing rate on ad¬

manufacturers

many

credit

medium

on

//';

The Bank of New South Wales is the oldest

good, but which is. exist,; it is probable that earnings
fortified
by
the - Government of New York City banks could
guarantee.
'/'■■■ show moderate improvement over
Faced with this volume outlook, the-•
next
year
despite heavier
inhibitions > against
expansion taxes.
% '•-1 •'

the

SOUTHERN

RAILROAD COMPANY

Washington,

June

share

Company,

31,

.a.'-

Kennecott

ALABAMA

dividend

A

ferred

.meeting

dividend

(1%%)
the

1942,

close

the quarter

a

cent

per

Preferred

by

of

1942.

-

on

at

|\ <;;<

-

States

Railroad

held

on

Northern

Stock
1942,

20,

''

-

of

quar¬

June

«A. S. CHEROUNY, Secretary.

|
directors

three

Preferred

1942.

;•

j

Illinois

of

and

needs
v

return

Governments

designed to

are

through banks;,the

restrictions

;

(WISCONSIN)

•

board

and

one

on
the
payable

(25c)

by

...

POWER

regulation

*

Order

supply

Jersey

distribution
of
twenty-five
cents
share and a special cash distribution of

29,

Power

This

Executive

net

i

Manager

Office: George Street, SYDNEY

,

-

contracts; and •interesting to banks to
Defense produc¬ borrow -reserves at - the

on

Governments to the banks.

cash

(25c) a
twenty-five

quarter ending May 31, 1942, payable by check
July 28, 1942, to stockholders of record as of
the close of business May 29,* 1942. ' vf\ .i,

The

tion.^

the

£150,939,354

DAVIDSON, K.B.E.,

General

/Head

~T"

30th

declared

day

Broadway,. New York City
*■
••■■■.
'■
May' 19.
-

(25c)

W.

New

»

ALFRED

SIR

'/

8,780,000

£23,776,000

,

same

G.

of

<1%%)

Corporation,

•

.

City,

this

all.tbanks-(New York banks as a
normally heavy buyers
of Governments).

6,150,000

<V

Aggregate
Assets
Sept., 1941

for

group are

.to

working

duced

May 13, , 1942,

Directors

available

'

.

,

by

Commission

guarantee
firms

Liability of Prop.

,

meeting a dividend of twentyper share was declared on the
Class B Common Stock of the Company, for the
At

five

of

per: cent

of

and

<37>,2C) per share on the Class A Common Stock
of
the Company, for the quarter ending May
31, 1942, payable by check June 25, 1942, to
stockholders of record as of the close of busi¬
ness

quarterly

ters-

ILLINOIS
Louisville Gas

Beard

alone

Fund

a

compared to the $22,000,000,000 in
Governments

£8,780,000

Reserve

Reserve

expansion,

$3,000,000,000

1817)

Capital

ernments, or improved their yield Fargo index of California busi-'
them, the above improvement riess (in which 1935-39 equals
in earnings could be bettered.
100); stood at 194.7 in April, ast
to stockholders of record June 5,
not
be applied to loans under
1942.V /■/'
7, At present, the capital ratios of compared with 195.4 in the pre¬
•v V J:.;
J-" A. McKENNA, Treasurer.
Regulation V.
VNew York City banks are 12% of ceding month and 142.7 a year
In view of both the pressure for
of de¬ ago.3;/V/,->-;/£^^
volume expansion in. War securi¬ earning assets and 9.7%
KENNECOTT COPPER CORPORATION
posits.:;: A'$5,500,000,000 expansion
ties and7 loans, and the official

COMPANY

ELECTRIC

Directors of

Company
(Delaware), at
a
meeting
May
15,
1942,
declared
a
quarterly
of
thirty-seven
and one-half
cents

Electric
held

GAS

Jersey
-

The

-V;;;--;;,;

Board of

The

Place,

i'//

'(

OFFICE OF

Exchange

theoretically

support

mere;

:r

Maritime

selling

Electric Corporation V

(ESTABLISHED

March 26
quirements or otherwise provide
Regulation V, ilarger excess reserves for New
authorizing the War Department, York City banks. With combined
the
Navy Department and the .normal and surtax scale of 40%,

followed

1942

poses': that

,

H. C. Allan, Secretary and

-

multiple of about 5:1, this

would

Government se4

.

Stock,

257

Executive Order dated

to

Fifty Cents

Ser shareCopper Company# the capital stock 15,
was declared on payable ..Tune of
laglna

The Directors have declared

sion

1943, and the''capital
ratio to earning assets, from 14.3%

79

On May 19, 1942, a dividend of

STORAGE BATTERY CO.

PH

banFof

Paid-Up

in; the

Vj,/

Ltd.

NEW SOUTH WALES

3-2280

defense: work W,.The - Treasury, therefore, > must
be stimulated sharply by the sooner or later reduce reserve re¬

June

ELECTRIC

York Phone

HAnover

for

loans

from 9.9%

1942.

•

:/

Philadelphia
New

v

,

about $12,000,-*

i

,

Bank,

Australia and New Zealand

•

have

alone

000,000.,

Chestnut Street,

Locust-1477'::
4
Teletype

S., of which the sixteen New
York ': City
reporting ; member

banks

Deacon's

Glyn Mills & Co.

2039, Pfd. & Common

Phila: Phone

U.

would

.

Treasurer

Magma Copper Company
THE

1421

Bankers

that.':'the

banks

Lives etc.

on

H. N. NASH & CO.

mission calculates that the estim¬

-

Canada.

May,

3-6s

$51,000,000,000

commercial

all

Associated Banks:

Phila. Transportation Co.

commercial banks will take about

assets

^

*

$22,000,000,000 of the deficit, fir
nancing. This compares with total

earning

Y

i/

Philadelphia National Bank

high. The Economic Policy Com-,

Secretary.

Penna. Co. for Ins.

Policy. Commis¬

American

ASSETS

£98,263,226

Williams

:K

the

TOTAL

Girard Trust Co.
'

bank

Economic
of

/
f

Fidelity-Phila. Trust Co.

How

Stamps./ ;

Burlington Gardens, W. /

Central-Penn National Bank

wage deductions for the purchase
of
War
Savings
Bonds .* and

whose

Board.

4

Smithfield, E. C. /

64 New Bond Street, W.

Corn Exchange Natl Bk. & Tr. Co.

substantial

a

s

Charing Cross, S. W. I

i

on commer¬

financing.

Canadian

jjjjj

<5 West

a

investors, - in¬
cluding
wage-earners
through
voluntary
or
even
compulsory

-

Payment thereof to
residents
of
other
portions of Continental Europe or of the French
Empire and China is prohibited but such resi¬
dents
may
direct the deposit
to their credit
t

iO

record

or

enemy

iiiblted.

the Common

dec'ared

was

Under existing Canadian

thirty-seven

this

Slock of

will have to rely

ury

of

mailed to non-resi¬
dent shareholders and the Company's Bankers
will deduct the tax when paying coupons to or

are

cents

With

.

deficit of $33,000,000,000 to finance
for the 1943 fiscal year, the Treas¬

dividend

all

Shareholders

on

Treasury.

OFFICES

Bishopsgale, E. C. 2

49

volume-minded,or -not, appears inevitable in view of the
of the War financirig<S>

the

of

from

dividend

share

needs

of

residents

per

are

residents

Secretary.

and one-half

banks

much will depend on the amount
of
financing placed, with'non¬

Canada.

3

or
even
moderately better earnings, depending on the
expansion in earning assets, over the next year or so.
Volume expansion in holdings of Government
securities, whether,

portion

pay¬

STURTEVANT,

a dividend of

probability of

maintained

magnitude

throughout Scotland

LONDON

Further study of the
earnings; outlook for banks under the pro¬
normal tax and: 16%* surtax confirms the

posed 24%

cial
Dominion

the

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

1, 1942 to the holders of
such stock of record at the close
of business June 12,
1942.
P.

and

Income

The

able July

W.

at

record

ltfrh day

tne

on

1727 *

OFFICE—Edinburgh

Branches

Bank Stocks

—

Canada

the Class "A" and Class "B" Com¬

Stock

of

Shareholders

to

business

ox'

"split"

be

share on the outstanding shares of

mon

payment

close

inclusive

19, 1942, declared a quarterly divi¬
of
fifteen
cents
(15c)
per

This Week

volume

Bianco,

The transfer books will be closed from the
l9th day of May to the 30th day of May, 1942,

May

on

HEAD

,

the

The Board of Directors of Ameri¬
can

,

1942,
and
wnose
shares are represented
by
registered Certificates of the 1929 issue, win
be
made by cheque,
mailed from the offices
of the Company on ihe 29th day of May, 1942.

12,

June

Church Streets
Toronto, Canada

and

'

i

to

the holders of such stock of record
the

ROYAL BANK OF CANADA,

THE

King

;■'!

Cumulative Preference Stock of the

at

I

•

outstanding shares of the 59c

Company, payable July

Incorporated by Royal Charter
THE

AND

SHAREHOLDERS

TO

HOLDERS OF SHARE WARRANTS
NOTICE is hereby given that a semi-annual
dividend
of 25c. per share in Canadian
cur¬
rency, has
been declared, and that the same
will
be
payable on or after the 1st day of
June. 1942, in respect to the shares speciiied in
any Bearer Share Warrants of the Company of
the 1929 issue upon presentation and delivery of
coupons No.
57 at:
\

American Cyanamid

can

Royal Bank of Scotland

Imperial Oil Limited

NOTICE

PREFERENCE

NOTICES

DIVIDEND

NOTICES

stockholders "of

.

for

indications of bank policy

on

.

dividends.

•■•

./

'

-.

V

"

'

-

.Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4074

Our

I#.

Trading Markets Maintained in:
^

y

BANK

i.'

STOCKS

INSURANCE

and

I
.

INVESTMENT TRUST ISSUES

^(Continued from

•

3%%

INDUSTRIAL SECURITIES
— ".Wt

*

;

120

NEW

Albany

YORK

Buffalo

Utica

•;i, Wilkes-Barre

tion

(r

Watertown

Allentown

'.

- T
Sunbury

PHILADELPHIA

Newark

Wellesley

Scrantoh

Jersey City

Springfield

Pittsfield

Monday.

on

took

Securities Corpora-

down

first mutual trust fund

commodity

/

and/ the

bonds at

bonds

CAPITAL STOCK

a

Prospectuses

heartening

a

corporation ...

the

Offering publicly yesterday at;

102% found

Portland

Income Series

Low-priced Common Stock Series

■;

-

-•

Low-priced Bond Series

Preferred Stock Series

competitive^

price of 101.68..

Bell Teletype NY 1-1950-1-2

BOSTON

-

v-

First Page)

in

With nine groups bidding for
the issue, the group headed by
First > Boston
Corporation and
the Mellon

j

Broadway, New York

Tel. COrtlandt 7-9400

sold

NATIONAL SECURITIES SERIES
Bond Series

v

^«|;^ViS^REAL ESTATE ISSUES
J. Arthur Warner & Co.

bonds

,

bidding

V'-

RAILROAD BONDS and STOCKS

V.

Reporter's
Report

■

"i'

1935

response,

123

reported

were

request

upon

NATIONAL SECURITIES & RESEARCH CORPORATION
Broadway, New York

Russ Bldg., San Francisco

: :

moving readily along to investors.
i

v

•

),•; •.

•

...

" ; \

.

v>-

;

-

-

-

y

.

,!«. •

v*

;

Amcr. Tel.

The Securities Salesman's Corner

Z%$t

Making Every Action Important Will Increase Sales

was

a

the secondary mar¬
block of $1,000,000 of
American Telephone & Telegraph

Company. 2%s of 1970.v

-

:*'yJ This represented

Some years ago it

,-r

this week

keting of
:

was our

good fortune to know

one

of the most

an

successful Life

Insurance Agents in the country.' For five days out
of the week this fellow
virtually ate, breathed, and slept life insur¬
The other two days he played just as hard as he had
the other five.
Out of all the lessons in selling intangibles

ance.
on

The point

we

Was

■

"can't you see

/

;

as

ourselves

we

to be.

For

believe
of us,

some

livlihood.

in

our

Each

own

particular; edifice.

mistake

corrected

is

something to be
of

and

every v scrap

knowledge about our work is dili¬
gently to be collected.
It is our
belief, that contained in these
two
widely divergent attitudes
toward

for

work, lies the

our

the

reason

fact that many securities
are still doing an excel¬

salesmen

lent

volume

the

other

who

barely

can

As

of

this

tial

living.

'

We

sale.

make

.

of

•

life insurance

our

made

once

could

on

some

making
important, we well

remember how

friend

are

earn a

attitude

action

"every

there

typical illustration of the

a

value

4of business and

hand

-

very substan¬

a

here

see

sales

.

why

he

of-• $100,000

while many other salesmen would
have mjssed an opportunity, or at

best, sold only a small policy.
f

* During the

^

of a dinner
wealthy
lady

course

certain

party

a

friend

turned

him

to

and

(him about life insurance.

asked

Instead

-

tof picking up a conversation right
'at that time he tactfully arranged
that he should call her for

.

an

ap¬

pointment.
Now this in itself is
nothing new to any experienced
salesman.
It is academic to pick
the
cuss

right time and place to dis¬
business.
The; important

sales

lesson

here

is that

he

was

of in-

to

mark

the

of

any

r

that in
this

industrial

remains

cir¬

present

might

operation

be the forerunner of similar sales

Canadian Industrial

c

General

others, every day
challenge. Each inter¬
view is an opportunity. Each new
client is one more building block

pri¬

part of loan.

:of

activity

unchanged

utility

industrial

and

vately in the last few

a

:

high level, according to the Cana¬
dian

the East afforded

Toronto,

of V Commerce

which

states

-

of

that their

idea of what wartime curtailment

index has continued for the third
consecutive month

(1937—100).
current

to register

"The

factory

of

motoring,,

American
public knows it, likely, will mean
to the revenues of toll bridges,

164

of

percentage

fell from 115 at mid-March to 114

tion,

at

•»

-

obligations

iron and steel industries

firm

further plant expansion and reor¬

7 "Our
March

payroll

wage

report
((.7 v:?/

•

.

maintained

has

undertone

rather

in

of

face

a

this

prospect

discouraging

"

must be ascribed to certain
ditions surrounding them.

index': for

(1937^100),

190

was

^

the dura¬

That the general run of such

.

owing to

over

.,

mid-April, the downward trend
occurring mainly in the heavy

the
bank's
continued, adding: (v;//■

the

as

roads and tunnels

capacity - utilized

ganization,"

rather definite

a

••

/

First

of

few

all

new

con¬
-

,

to

the appointment.
idle question on the

arrange

was

an

didn't

salesman

insurance

creases were

or

because it

he said the right

was so

have

turned

in¬

the

to

of

management

proper,

One

funds.

investment

their
company

reports that one

of their dealers
brought in half a dozen ac¬

has

in

have

among

several

the ; past

weeks

two

been

divided

for the

gram

service

man

""
a

pro¬

going into the

obvious.

are

up

investment.,.com¬

panies of different types.
The advantages of such

first

the

In

place, he is obtaining portfolio
management which, though once
uncertain, has "come of age" and
proved- its worth in recent years.
As pointed out in this column two
weeks ago, 25 out of 25 invest¬
ment companies outperformed the
Dow-Jones Industrial Average in
the

period from the outbreak of
war
in September, 1939, through
April 30, 1942. !
In the second

issues of

year

ago

facturing arid trade, with'one-of

become

Mean¬

while/the supply of municipals of

oiher'typgs (likewise

has been and

17% for transportation and minor
promises to continue extremely
decreases for the other categories:;
light for some time to come. Many
The most striking increase over

which

projects

February

that iri trade

was

pay¬

ordinarily

would

be financed in the municipal mar¬

rolls-:

(comprising wholesale,: re-: ket, are
tail: and service trades), namrify.

goirig ( over- until "after, the
Gas &; Electric

Pub lie! Service

"The activity; of the foorigroup
was
slightly upwards, chiefly in J IAs^far as the corporate new isflour and cereal products/' In the sue .market is concerned, there is
nothing -in immediate 7 prospect.

clothing^ group

there/
in / trie:

was(;/;a.

The nearest offering now in sight
rise
is that of the Public Service Elec¬
men's: clothing
(partly /seasonal
and partly on Government order), tric'&r Gas Company first mort¬
gage.
v::>
with
minor
rises
in
footwear,
men's "furnishings, * cottons : arid "(Thatissue in the; amount of
woolens.
Less activity is shown
$15;000,000 7 will be' offered in:
in the pulp and newsprint sec¬
competitive
bididng early
in
tions.
June,'; and indications point to
another highly active day for
"A moderate decline isvrecorded

marked J

'

.

v

in

the

units

investment

automotive

bankers.

not

whole is

a

considerably higher

than in the autumn of 1941.

reported

are

the

-

other

in

iron

every

and

Gains

branch

steel

?

be, forthcoming

bidding.,

of

'

,

in

open

11

"T-

^FHA Funds

:7(7(

has

been, delayed

(by ..wet

of

except

Many

wages.

one,

investors

appear to hold the gloomy opinion
that this is a preview of the state

capitalism that will be
nent

a

perma¬

social

product of .the war
that we are,witnessing the
end of the era of private capital¬
and

a

small number—reducing le¬

factors

.

namely,

held

securities

problems, transfer problems,
estate problems,
tax problems

ism.

for

As

this

view.

of

mands

a

ourselves, we reject
Granting that the dechanging world will

airs whiih'wouTd be"diffkult!re9uire
for

the

"somewhere"

man

"somewhere" at

army or

the

in

sea.

third place, the cost, of
investment company management
of

The original sales "load"

7V2%

about

often

less

proves

cost in commissions and

than the
taxes of

buying and selling an in¬
dividual portfolio." The manage¬
..

ment fee—which generally is

tween

Vz "of

1%

and

Y

a modification of our priv
enterprise system and a

*e

deeper penetration of government

In the

be¬

1% ,of the

into the economic sphere, we be¬
lieve that there will remain great
for

the

exercise

initiative

and

the

areas

ployment
are

of

private

profitable
of private capital.

still too close to

em¬

We
pioneer¬

our

ing heritage in this country, we
have retained too much of the in¬
dividualistic spirit of self-reliance
and

-enterprise, to be willing to
embrace the enervating philoso¬
outperformed the
phy of state capitalism;
i;
|
accepted market, averages in re¬
"If this discussion appears to be
cent years shows that the man¬
wandering far from the realm of
agement
is
more
than
good
investment policy, let it be said'
enough to justify this fee." /
^ (
assets annually—and the fact that

the trusts have

.

-

:

*

.•[«;«*-

•

lis

/>>:

that

;■

is

Y The

the

the

following
reassertion
of
faith in the future/of oui" country

ment

published as part of an ar¬

from

was

"The

Stock

ticle

on

War

Environment"

.

by

tive," issued

in

Market

in

"Perspec¬

Bullock.

"The

-

depression in the stock market at
ings
of

are not
the years

Federal " Housing

this

premise

of

problem
invest¬

policy. If the investor agrees
shall

we

this

victorious

emerge

war

with

our

demo¬

cratic
our

system of government and
profit system of private en¬

the problem
vestment

seeming paradox of deep

time when

that

to

answer

major

the Investment terprise substantially intact, then

Management Department of Cal¬

a

conference report on the
bill-increasing to $800,000,000 the

economic

place, through the
companies; the

gal

v.:/1;

(: The
"Planting in the Prairie Prov-

inces

number

actual

vin

<

trades,

notably in the heavy section.
(

should

private incomes—all of the basic

of investment

use

is Small.

27%. •

as

dividends, settlement
"die to win."
With
him, life insurance was a living
thing, an important thing, some¬
thing to be placed among one's
most
cherished possessions and
options

Many

vestment companies to secure the

very

the in¬
28% for both manu¬

a

portfolios for the

own

supervision must be made anu<5>
quickly. /: >/•■'

of them for several years.

with

•

■

made

pared

have

type

:

Yet it is in times of rapid change such as these when secur¬
the most constant supervision.
Some provision for this

by the individual is reduced to

talk

cash values,

need

available
in "recent
months, and now of
course the prospect is for a dearth

this

,(/;(
trades, some
having .yet. completed 77 This issue, iricidently, had also
frart of his friend became a mat¬
the retooling necessary for -full been, slated for private placement
ter of importance to her.
It be¬
conversion to Government orders? until; trie- SEC. stepped, in on the
came important because this life/
a
better price
but the- present level- of activity contention (that
What

duration.
ities

armed

our

to their invest¬

answer

will be unable to handle their

men

in¬
crease of 7% over February and
of 23% over March, 1941. As com¬
an

v

"able

These

r

going into

are

finding investment trusts to be the
ment problems.
*
are

counts

/

Reports coming in over the first
Week-end of gasoline rationing in

Bank

Men with substantial investments who

forces

which

years.

Revenue Project Bonds

in

at

other

loans which had been placed pri¬

Activity Remains High

For

group

appearance

the' thought

se¬

is another

large

a

public

cumstances

Canada

placed

companies in 1940, and

was; understood

\

,

job

our

selling

curities is just an indifferent sort
of task from which we
gain a

the "bonds

surance

first

attempting to

are

:-

for yourself, I am
V Major interest centered around

laying brick!"

bring out is that whether we are
selling securities, life insurance or
fish hooks, it is just as important

of

vately with

worked
that we

-

Investment Trusts

portion of

a

aggregate issue of $140,000,-.:

000

learned from him probably one
thing stands out more clearly than
any of the rest.
'
■
;\
^

Every Thing He Did
;;■</:■.
K; Important.

.?

.....

-

Among the interesting offerings

corporate net earn¬

that

of

of

common

current economic forces

rate

far from their levels
of peace-time pros¬

stock in¬

becomes, as heretofore,
weighing the impact of
on

corpo¬

earnings and equity values.'*

:,i,ft

*

*

Investment Company Briefs
Administration's
in
perity, * is to be
explained
of
thing to his friend so as to give weather, (with rainfall/ late
authority to insure mortgages for course in
. "Someone
has
observed
that
large measure as the ef¬
her the impression that here was April of very heavy proportions
housing, (fof . war„ .workers
was fort of the market to
in Saskatchewan.
adjust itself this country is now in somewhat
Seeding, how¬
Something- she really^ ought to
adopted by the Senate on May 18 to the
the same position as England was
impairment of corporate
talk about at his office or her ever,: is quite well advanced : in
apd was sent to the House.;, The profits and
equity values implicit two years ago,"- says Massachu¬
home because any thing so im¬ the driest areas, southern Alberta
.

:

,

portant

was

worthwhile

discuss¬
casual
socially

ing seriously and not in a
when

manner

enjoying

they

were

themselves at

party.

-V-'-

Isn't there

an

a

less-than-average

'

old saying, some¬

thing to the effect that two boys
busily engaged laying brick,
was asked what are you do¬

ing, and he answered "building
cathedral."

fellow
all

his

Probably

remained
life

for

a

all

southwestern

he

mason

said




a

other

the

brick

Saskatchewan!

spring moisture is well above
normal in Saskatchewan, a most

dinner welcome condition in view of the

were
one

and

The

was

while

serves,
was

pre-season

the recent rainfall

sub-normal' in Manitoba

Alberta

re¬

and

where, however, there
are
good reserves. ' Taking ^ all
these, factors
into
account/ the

new

crop season,

begun
was

;•

••

more

though late, has

satisfactorily

in prospect a

present, FHA limit of $300,000,000
In addi¬

is. said to be exhausted.

tion-to
the

the $500,000,000 increase,
bill..raises present limits on

insured mortgages for, single-fam¬

conditions ,of

the

environment.,

war

an

Nor

.

all-out

is

any¬

thing to be gained by shutting our

The

tax

a

;{The( House approved the

vestment confidence in the future

our

due to

the

Senate

iri passing it

changes made by the

was

differences.;

./

on

May 6, a

required to adjust
./

•'

-

of

our

If has

private enterprise system.
become necessary,

for the

successful prosecution of the war

effort,
sume

England

depression is
reflection of a lack of in¬
market

also

meas¬

Distributors'

that the Government as¬
rigid and total control of

"Brevits."

"It

be recalled that at that time
to

unpleasant fact

ily and multi-family home units,,
onApril22 (as indicated in
April 30 issue, page 1703) but

may

sion

the

stock

ure,

setts

that

to

eyes

the

than J conference

month ago."

in

.

a

was

completing convert

complete
structure

war
was

economy^

put

on

a

inflation controls
were
being established; all out
enforcement of priorities, ration¬

full

war

basis;

other such restrictions
As a consequence, un¬
certainty as to how drastic such
measures might be and how they
ing

and

had begun.

consumption, prices, i would affect business, profits, livprofits,~ rents, interest rates and
(Continued on Page 1943)

production,

THE COMMERCIAL & FINANCIAL CHRONICLE

1936

FLORIDA

Thursday, May 21, 1942

New York's

sion

FLORIDA
the

unexpected,

not

Although

,:

Means

securities, was a heartening
in the market. V Activity
in some measure

factor

increased

was

the line, but not sharply.
The Committee's attitude of dis¬
favor clears away, at least tem¬

the

overhung

end

from

when Treasury Secre¬
tary Morgenthau urged removal
of the tax immunity from • out¬
proposal had been attacked
bitterly by State and local offi¬
cials and many others, in hearings
before the Committee.
The plea
was made repeatedly that for the
Federal Government to take this

The survey
the

Factors

government'! the power over
credit,
' V.-.-fr'

local

and

State

tween

:

be¬

j

^

of their .securi¬

ties, with the main
argument
being that for the Federal Gov¬
ernment to enter this field, would
mean a threat against the sover¬
eignty of the States.
'

Of

is

there

course,

cer¬

no

State
governments,
gasoline directly
or receive a portion of the State
tax. This revenue source already
is showing a decline, as replies
from

made a start toward
tapping tax-exempts as a source
of revenue last year when it sub¬
Congress

the

from Federal

income
to

taxation.

that

At

tax

officers show.

several fiscal

Seattle's comptroller, for example,

reports that rubber and gas short¬

threaten to cut the city's re¬
ceipts from the State gas tax by at

ages

least

20%,

about $175,000, while

or

City, which has real¬
$200,000 a year from Statecollected gas and motor vehicle

taxes, .expects
Related

sources

taxes

closely
local

are

and

vehicle

motor

and

licenses

other

with the

connected

nesses

income

as

occupational

dealers

auto

on

drop this

20%

a

^fprpy

year.

-V

securities

cities

some

,

jected

busi¬
use

of

Birmingham, Ala., has ob¬
about
$1,000,000 a year
from gas and automobile taxes,
including $400,000 from a 1-cent
gas
tax, $400,000 from sharing
cars.

to tax income
Federal securi¬
ties on the ground that they were
sold with the understanding they

refused

it

time,

from outstanding

would be tax free. -'
The

.

the

Federal Government had not sub¬
scribed

given

to

similar

any

pledge

municipal

and

State

by

governments
and recommended
that all income from these sources
be taxed "to

plug

a

loophole."

Officers Association showed

problems

are

centuated by difficulties in
additional
taxes

from

revenue

ac¬

raising
present

adding new sources of
revenue, and
in ; curtailing ex¬
penses without sacrificing essen¬
or

tial city services,
-

pi

financial

The

1

\

-

.

-

predicament

local governments results

-

of

in part

from the

necessity of establishing
budgets weeks or months in ad¬
of

vance

actual

occupational licenses—and
anticipates a reduction, along with
other

cities, of from one-third to
one-half in income from gas and
motor

vehicle

Baltimore

taxes.

last year collected $5,000,000 from
motor vehicle licenses, fines and

upset the city's budget.

Declining revenues and rising
costs are presenting serious finan¬
cial,, problems
to
the
nation's
municipalities, a poll of local fis¬
cal officers by the Municipal Fi¬
The

from

tailment of

Financial Problems

Monday.

tag licenses and the balance

the gas tax, and an expected cur¬
cars and gasoline will

\ *

Nation's Cities Face

nance

tained

auto

contended-

Treasury

expenditure,

ac¬

While

in

cities

including Massachusetts and Wis¬
consin, participate in State in¬
come tax revenues, most munici¬
palities

have
that

sources

few
.

.

can

important tax
be expanded

during the war period, according
the Association.,
Despite this,
reports from the finance officials
indicate they are loath to impose
to

forms

new

of

taxes

in

view

of

needs of the Federal Government

for

war

revenues.

A Miami, Fla.,

official reported
sidered levying

his city had con¬
a utility tax to
replace in part an anticipated loss
of $500,000 income from sources
other

ad

than

valorem

income,

cording to replies from local fis¬

but

increase the local tax burden, be¬

up

reporting in the sur¬
Budgets for 1942 were set

in

some

cases

as

long

ago

as

last summer, many of them on a
"business-as-usual" basis
which
did

not

allow for

"extremely reluctant" to

was

lieving

the

absorbed

by emergency demands.

emergency

ex¬

On

re¬

budgets

More

and

fundamental

;

in consid¬

ering the problem, however, in
1 the opinion of many local fi¬
nance

officers

queried

Association, is the
look
local

for

lower

taxes

and

generai

many

other

from

concern

over




pay

local

for

i

side of local
addition to new

expense

and

in

civilian defense

and in¬

in defense areas,

operating costs have risen—a de¬
velopment
not
anticipated
in

the

revenues

ability of taxpayers to

costs

the

creased services

out¬

by

should be
operating de¬

reduction

by other

partments not abnormally affected

higher costs
sulting from the war effort.

penditures

be

Like
buyers, cities have had to

glad

higher prices.

established

by statute, the

Planning
v

of

Society

.

] Feature of the planning pro¬

regarding

6AN|i»U>C\t*s^K/CHICACO IUINOIS

1ST KM

Commission is the

,

the estimated 5% increase in food

various city

for

institutions

projects hitherto handled sepa¬
rately by various State depart¬
ments.
Object of this coordina¬
tion is to make easily available
at all times an over-all picture of

employment

Municipal payrolls have been
by many cities to help
meet higher living costs.
increased

Cities

engaged actively in war
production,"i. like. ..Detroit,i have
it

considered

tain

essential

recreation

all

school

facilities

panded in

to

needed

been

ex-„

because of

many areas

population shifts incident to large
armament
plants. 1 Civilian de¬
fense
organization has,, required

expenditures, though in at least
one
State—Qhio-r-the State* has
distributed

some

funds

governments for this
City

officials

local

to

purpose.

on

matter

of

eral

officials

sire

cur¬

general

has

created

appropriations i in,
munities.

■

all

will

public
to

to

aban¬

improvements
the

effort?

war

municipal

case

strains.
cal

px y-

essential

not

some^ com¬

decisions

Likewise,
don

surplus

;>"■

According to

budget

fis¬

some

officers these situations ap- :

to

pear

be

other

to

temporary

a

increased

fundamentally..

"

offset

; expenses

and do not improve the

picture

well

difficulties, many
officials said, because it gives city
as

officials
chance

as

and

taxpayers-both

examine

to

con¬

also

appro-

r

preparing

referendum ;

a

should

constructions,
of

creation

fund

a

of

;

about

$320,000,000

and

crossing

grade
bonds.

housing

*

r, ~

'

a

services

they
have been performing and deter¬
mine just what services and ex¬
penses are essential. I It may be

State

the

of

director

bureau

representatives

planning,
State

of

departments,
and
several
legislative

-

.

of

for; which

funds

are

recommended, totals $628,000,000,
with
$zl,600,000 set
aside for
planning for the improvements.
The list of projects is proposed
not for. budget purposes but as a
planning program to be advanced
as rapidly as possible in terms of
financing and paper-work, though
actual building may be postponed
for a long time.
Except for es¬
sential projects related to the war
or
not
requiring critical mate¬
nearly

municipal
City

all; new

construction

in

New

York

has been stopped..
Massachusetts

:

,

which

adoption

at the

November

members

study the

constitution.

new

pPP
'-.Pp

Proposal Revived
Kaiser

&

Co., San Francisco
municipal bond house, report as
follows:

^

...

initiative

petition is being
circulated to qualify a new "Ham
'n' Eggs" measure for the ballot
this
November.
It is reported
that

120,000 signatures have been
obtained, which is slightly over
half of the number required,
■ppp
new

measure

is

substan¬

tially the same as that defeated
by a vote of almost 2 to 1 in 1939,

"senior

payments to

that

reduced from $30 to

are

$20, while $7 weekly is to be paid
to unemployed persons not under
21
years
old.;-, Because* of the
sobering influence of the war and
full employment conditions, it is
generally believed that the propo¬
sition will not receive nearly so
widespread support as it did in
1939.

Alberta Interest
Reduction Considered
The

have

cording

Refunding
ac-

y

Treasurer

Provincial

to

Low, to consider means of
bringing about a lower interest
rate

on

Alberta's

public debenture
to about $121,-

debt

amounting
000,000.

-

t

-

■

.

„

The original or coupon rate on
Alberta debentures has been esti¬
:.'

mated; to
average
4.85%.
By
Order-in-Council effective June 1,

1936, the Provincial Government
offered to pay only an average of

2.44%

interest

bonds.

Provincial

on

The Province has claimed

it is unable to pay a higher rate.
Canadian observers

^

not

too

said

are

to

regarding

optimistic

the prospect of agreement, that is^
unless the provincial: authorities

nesota's program,

the

under an exec¬
the Governor, in¬

Debt

Solon

are

order, of

Alberta

Committee will meet shortly,

provision for post-war plan¬
ning since the war started. Min¬

made

utive

in¬

California Pension y

be

.

Minnesota

and :

States

other

two

are

It is

,

committees.
In a post-war works program
separately by the New York City
planning commission, new con¬
struction ;

draft' of the

except

through sale of State highway,

proposed

a

its

on

held

be

citizens"

for post-war
and ? authorized
building reserve

plans

re¬

tended to place before the voters
in September the question whether

The

Commission,;

Legislature

rials,

\*„.,

The situation offers opportuni¬
ties

agencies

and

j
f

■

special

a

State Constitution.

new

post-war planning.

priated $450,000 to be spent in

chairmen

materials and the de¬

projects available:;
for the post-war period.
Ina¬
bility to obtain materials or¬
dered

Fed¬

The Commission will consist of

have

to

with

In setting up the

the

re¬

of mu¬
the State, and to

in

cerned with

the

policy and because of inability
to obtain

progress

maintain " connections

other

a

the

post-war pians

nicipalities

of

as

commission the text of

An

maintain

and

ports

expenditures
tailed

of

:

The Commission also is to pre¬

ing to their reports, that capital
should? be

and

: ;;:

u

pare

•

accord¬

agree,

estimates,
equipment

cost

execution

for

projects,

main¬

facilities, and

have

and

materials

and

.

£

22%.

Monday from

ity for keeping records and speci¬
general election. ' ' The
fications ;on
all State planning have until
June 15 to

supplies did riot anticipate suffi¬
ciently increased costs since last
August, as shown in comparing
costs

of Civilian Pro- j

tection.

Works

Officials reported Wednesday.

RECrummer & Company

prepared

farther

to

than

talks

the other

,

go

the

was

much

very

when

case

collapsed last fall.: On
hand, the point is made

that the bondholders for their part
possible,, also, for Stale govern¬ cludes a $10,000,000 fund—to be
ments abandoning costly.capital built up during the war period— are .unlikely to make anyimpor-y
tant concessions to a debtor that
improvements,: to share some -of for constructing highways. Schools
has
demonstrated
unwillingness
their unexpended revenues-with and small-unit housing.
rather than inability to pay in ac-r
localities.
~ *
' "
;
Massachusetts'
Post - Defense
.

..

1
\

The first Sunday
rationing resulted in
,

in

revenues

and

tunnels

for

the

for

;

■//

Readjustment Committee," com¬
posed
of economists,manufac¬

"

"

'

turers, workers and planning au¬

of gasoline
a sharp drop
toll

motor

bridges
vehicles

along the Atlantic seaboard.

Pre¬

liminary reports indicate that the
traffic

in

lowest

for

most

instances

the

was

comparable Sun¬

any

since
these ' conveniences
were
opened.
Traffic over the
Delaware River Bridge between

day

thorities, /• is
concerned - mainly
with planning for" post-war em¬
ployment of war industry work¬
ers.

;

ter.

J.

^Even before gasoline rationing,
traffic over the bridges and tun¬
nels

operated by the Port of New
Authority ; had started to

York

In April, the operating
revenues
of the Port Authority
amounted to $1,444,760, a decline
of 2.6% from those in April, last
taper off.

year,
were

-

while operating expenses
$351,644, against $316,719, an

increase of 11%.

.

Of Mayors To Meet v!
Instruction
and local

in

^
; ;

.

State

national,

activities and civil¬

war

ended
of

on

the

.

Port

were

7.9% more than
preceding 12 months.

$18,638,520,
in the

Authority

or

June

place.

.

Plans

are

being made to

accommodate

lage
war

1,000 city and vil¬
officials,, members of local
directors

and

councils

civilian protection.
The

speakers'
by

it\'
list

James

of

* j,

will

be

M. .Landis,

fense; Gov. Herbert II. Lehman;
,

with
A

the

of

terms

disinclination

precedents in these'
understandable.;

the

to

set

is

matters
'

.-v

'•> :''p ^

Housing Bonds Attracting
Greater Interest V

'

:

;
;

,

A widening interest appears to
developing in housing -author-ity bonds on the part of both
dealers

investors.

and

Prompt
reoffering of the
most
recent
issue, bidding
by
houses which formerly
did not
compete for this particular type
v

demand

on

of

exempt

tax

trend

the

toward

security

and

Higher prices

a^.

are

indicative of
of

housing

circles.

growing acceptance
bonds in investment
'V •/,

8, 9 and 10. J Assessors, mu-.
nicipal
clerks, municipal engi¬ ,;As housing authority bonds are
neers,
municipal attorneys and a new type of instrument, differ¬
planning officials will hold con¬ ing considerably from both muf
and corporates, it has
ventions at the same .time and nicipals

Director, Office of Civilian, De¬

12 months;
April 30, the revenues

However, for the

contract.

be

ian

headed

,

cordance

...

NV Y. State Conference

protection and discussion of
vital State-wide problems affect¬
Philadelphia and Camden, N. J., ing ;all cities and . villages will
amounted to only 25,542 vehicles, feature the 33rd annual meeting
compared with .60,602 the previous of the New York State Confer¬
Sunday and .an all-time low of ence of Mayors and Other; Mu¬
17,000 recorded one day last Win¬ nicipal Officials in Syracuse;,on

budgets now in effect.

Louisville, for
example, reported
estimates of
amounts necessary for operating

pay

be

gram under the

'P-i'PP Bridge Tolls and
States,
Sunday Drivers V

several

cal officials
vey.

will

inquiry

Public

Post-War

American

obligation,

no

ized

tions, since it is pointed out the
need for additional revenue is
pressing.

We

;

,

any

State Director

State Commis¬

new

coordination of funds and author¬

concern,! of

Oklahoma

the House will accept
Committee's recommenda¬

tainty
the

;

While lower yields from gaso¬
line taxes appear principally as a

al¬

in the hearings in
opposition to taxing either present
issues

at

comprehensive

a

.

represented
future

their

to automobile usage.

At least half of the States were

or

replen¬

govern¬

Constitution.

of

stocks, and a declining
leading ultimately to lower
assessments of properties related

right that was said to be pro¬
tected by the

inventories

on

value

le-

or

and their bondholders,

ments

ish

securities would

contracts

as

include

small businesses unable to

also contended that to j

breaking—morally

seen

decline

assessments

■

gaily—existing

two

contributing to
the" taking
over of land for military purposes
by the Federal Government, lower

tral

mean

showed many local
a decline within
years in the prop¬

expect

next

this

bonds.

answer

them

us

familiarity with these:

with the actual increase of about

tax, substantial producer of
local
governmental
revenues.

governments of their sover¬
eignty by placing in the "cen¬

Many

new

erty

local

tax outstanding

acquired for

property

officials

and

State

to

of

localities taxes

some

control, sanitation and health.

stride for¬

the

deprive

to

In

plants are offset by expanded
service costs, made necessary by
the plants and their workers, of
transportation,
policing,
traffic

This

gives

municipal

a

war

standing, as well as future issues.

ward

created

officers.

of January,

step would be a giant

issues

to

municipal

yon

plants and war hous¬

war

ing—has

mu¬

nicipal bond market since the

da

background

handling Flori¬

resulting from construc¬

services
tion of

Our lonf experience in

particular
of problem, according to local finance

threat

serious

the
that

taxation

demands

added

all along

porarily,

purposes.

war

Appearance of an entirely new
type of municipal expense—cre¬
ated by civilian defense needs and

to tax the

local

for

Government

rejecting the Treasury's proposal
interest from State and

the

to

made

be

must

necessarily
Federal

which

tributions

House Ways and
Committee last Friday in
the

of

action

for

Major-General,

and

William N. Haskell, New York \

.

Planning, created by a law signed N. j. Legislators Study
;
by Governor Lehman earlier this Proposed Constitution
month, provides the first machin¬
.The New Jersey Legislature
ery for State post-war planning
ceived on

MUNICIPAL BONDS

taxes in the face of heavy con¬

Assembly,

New York Provides For State

Post-War Planning Program

Smith,

Harold, D.
rector

Oswald

of

the

D.

Federal

Budget;

Heck

of

Di¬

Speaker

the

State

taken

time to

familiarize

:

dealers :

and investors with them.

They are
admittedly v "complicated bonds'!
which require a certain degree of
study and investigation before the
dealer or the investor fully under-?
stands them.
t

V.,_

■,

v

~v..Sponsorship of housing au-,
thority obligations has been by
*a

limited group of

,up

in

firms, at least j
Those active.,
this field, however,.predict

to the present.

■

Volume 155

that

all

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4074

-

houses

dealing

in

tax

SEC Applications For

exempts eventually will deal in

housing authority bonds.
'

The low level of

Broker Dealer Registry

;

"

municipal
financing anticipated for the du¬
ration of the war may be an in¬
creasingly
important
factor
in
stimulating
the .» acceptance
of
housing bonds. With only a small

The

new

and

of

more

turn to

the

buyers

larger

may

(The above is
article

excerpt from

an

written

Gerry

by

Schnur, appearing in the May 14
issue of the Chicago /'Journal of
Commerce.") ■
•
V.
<
t

Close

Bidding Features

Bond Sale

*

<

;

-

From time to time,

/

v

on

have

we
almost

.

commented

the

un¬

canny

.

accuracy
displayed
by
municipal bond men in submit¬
ting their estimates of the price

issue should bring to the local
unit offering the securities. Tues¬

an

day witnessed
onstration

remarkable dem¬

a

of

competitive bidding
in the highest
sense, when
the
$331,000 Mt. Vernon, N. Y., va¬
rious

'sinking

awarded.

fund

The

issues

First of

were

Michigan

Corp., and Hornblower & Weeks,
bidding jointly, took the offering
with

bid of 106.77775, while the

a

joints account
of
Kidder, Peabody & Co., and F. S.
Moseley & Co.. submitted their
price of 106.77703.- That repre¬
runner-up,

sents

^differential of but $1.80
issue, which could

rightly be called

margin.

-

pretty

a

narrow

......

Major Sales Scheduled
We

list- herewith

important
($500,000
issues
come

and

over

in the

of

the

the

offerings

which

successful

previous issue

The

bidder

for

the

last

are

sold

also

ap-

".

May 23

$790,000 Bowling

to

are

future.

near

runner-up

/

-more

short term

—

excluded),

names

the

municipal
or

up

;

»'

.

Green. Kv.

;

,,

These

bonds, together- with $575,000 HopkinsviJle, $430,000 Mayfield, $285,000 Mur¬
ray,
and $190,000 Russellville bonds, all
light and

represent electric

power

revenue

bond

offerings by Kentucky communities.
All carry the same range of maturity, 1945
1o

1962.

issues

from

Proceeds

will

be

used

to

the

sale

these

of

purchase

from

the

Kentucky-Tennessee Light & Power Co.,
unit

of

the

utilitv

the Associated

Gas

properties
municipalities.
;
*

Electric

&

in

the

a

Co.,

respective
1

.

'

•

May 26
$2,616,000 Cincinnati, Ohio
These

bonds

are

account of

ment

now

the

held

May 1,

smaller

1941,

issue

York.

New

to

city's sinking fund.
;

the city awarded
Wood,

Second

a

•

much

Struthers & Co. .of

highest bid

was

entered

$738,200 Trenton, N. J.

-'

by

Co.

this city awarded bonds' to

the
of

a

the BancOhio Securi¬

Second

Provident

Cincinnati,

highest

bid

Savings Bank
and

&

2

the

appears
above

r..n

to be the- initial financing by
;
'?
./'.-v.

district.

Newburger, Loeb To Admit
Newburger, Loeb & Co., 40 Wall
Street, New York City, members
of the New York and

admit

Philadelphia

Exchanges,- will

shortly

George F. Conniff to

tnership in their firm.

par¬

become
&

a

V.

Gianni

will

'

Stock

:-v •!V* •C"''?•

shortly

partner 4n D. Tr Moore

members

of

Exchange.: i

the. New York
. -




groups,

and

railway

Fixed

77,243,780
52,763,131

9,935,810

'

1,178,516

13,366,323

900,672

4.95

48,805,772

*

-

.36 D

177,082 D

■}.

■

Freight

.

v

ber

ment

of passenger automobile production during
the latter part of 1941, the increase would probably
have been greater.
'
.
.

tons in

1940,

an

18.13 per cent.;
Iron

and

which

was

traffic

above the

increase of

per

679

tons,

and

exceeded

per

cent, with

of

$7,100,507,

crease

the

1940

by

or

share of stock.

V
,

*;•"

Revenue

All

less

load

than

—

•'

<J*

686,599

May 28th. '..

•

the floor of

Exchange for William

Worthington Walters has

Price,

re¬

Chi¬

of May 15th.

0'Gara

&

Co., Chicago, which is no longer a
Stock Exchange member

firm.

Weingarten & Co., New York
City, was dissolved on May 15th.

Newspapers Raise Price

year.
The decrease
$1,089,563 shown for taxes on real and personal
property was brought about by an adjustment of
over-accruals in prior years.
•-

of

For

Comparative Income Account,
issue dated May 25.

Forty-eight Pennsylvania daily
and two Sunday edi¬
forced by higher
production costs to
raise their
subscription rates,
it was an¬
nounced on May 13 by William
H. Hardy, Manager of the Penn¬

City, is being dissolved as of
•'

future"

because

the

are

operating

highest

in

costs

war

"due

history

tion

to'record-breaking payrolls, high

newspapers

taxes and to the

tions have been

covering the world-wide war."

sylvania

Association,
increases

cording

Publishers

Newspaper
a

the result of the
survey disclosed (ac¬
as

Press ac¬
Harrisburg), circula¬
tion figures suffered "almost no
loss." The survey also showed "at
to

Associated

from

counts

least

a

have

not

rates

plan to

score

of

Pemberton Berman & Co., New

today.

were

by $1,937,226, by reason of
of employees and the higher

Balance

Sheet,

&c.,

see

Statistical

H. Frank will be considered today.

York

charges for unemploy¬

1940 figure

larger number
compensation paid during the

7,100,507

24,228,464

the

on

higher declared value

a

The

rate.

the

Exchange

proposal that Harry Frank,

Alfred

above

161,865,972 25,316,777 352,491,996 70,535,999,

membership of George C.- Schu¬
bert to Henry W. Buckley will be

in

The increase in Federal tax
due to

was

ment insurance tax and retirement excise tax

car¬

2,402,679

■ income,
surtax- and excess
caused by greater earnings and

^

n.'

be
Total

was

increased

and

50,171,404 11,529,317 172,533,164 42,461,860

traffic

$6,699,751 in the items of Fed¬

higher tax rates.?.

Increase

and

miscellaneous

will
partner in Gruntal

\

capital stock
Increase

3,064,700

of forests

-V':-

year

Canadian

profits taxes

12,731,533

Products

and

eral

: <

increase of

The

Tons

Handled

:<■.

aggregated $43,411,829, an increase of $9,935,810, or 29.68 per cent
compared with 1940. Taxes amounted to 9.7 cents
for each dollar of operating revenue, or $6.73 per

i

of $24,228,464, an in¬
41.46 per cent.

9,942,631

partnership

•

Railway Tax Accruals

before deduction for absorbed switch¬

revenues

non-

Commission.

Railway taxes for the

revenue
or

for

I

„

tons,

pay

(unemployment and retirement), $1,729,200;
$31,497,600—or 15.1 per cent.

fore that

-

$34,161,927,
cent.

686,599

were

accessorial+charges and passenger fares by
cent, with certain exceptions.
At the close
of the year this application was still pending be¬

ing, overcharges, etc., of all commodities, were:

who

The recommendations of that Board

ten per

Less-than-carload freight handled totaled 2,402,40.01

November 5, 1941, reported to the
temporary
wage
in¬

on

recommending

and

;

10,251,149 tons,
figure by 2,844,411 tons

$9,817,308—40.33

employees de¬

total of

—38.40 per cent, and gross revenue was
an

end when the

an

Freight and Passenger Rates

totaled

1940

to

Company joined with substantially all rail¬
roads of the United States in an application filed
December 13, 1941, with the Interstate Commerce
Commission for authority to increase freight rates

■

steel

103,750,675

as

in¬

wage

The

increase of 1,241,669 gross tons, or

1,248,829

111.,

railroads

for

on

taxes
a

9,671,539 tons compared with 8,107,992 tons handled
in 1940, an increase of 1,563,547 tons, or 19.28 per
cent.
Tonnage handled from Lake Erie ports was
8,090,506 gross tons, compared with 6,848,837 gross

10,108,917

cago,

the

on

the basis of the 1941 payrolls includes
increases, $27,268,400; vacations (effective
January 1, 1942), $2,500,000; additional payroll

handled for the year amounted to/

ore

4,186,671

&

made

organizations

wage

exceeding 1940 by 5,042,418 tons—8.80
per cent, and gross revenue was $71,704,286, an
increase of $6,506,648—9.98 per cent.

92,704.434

Hicks

demands

labor

The estimated annual increased cost to the Com¬

tons,

The iron

came

22, and

pany

Bituminous coal traffic for the year was 62,317,-

794

Products of mines_

from

various

1, including vacations with
operating groups.

273,427 bushels, compared with 4,461,774 bushels
during 1940, indicating a material increase of grain
exportation. • • pp Zipppi?

Manufactures

tired

of

cember

The ex-lake movement of grain from Buffalo to
the various North Atlantic ports amounted to 12,-

Transfer of the Exchange mem¬
bership of the late Walter Thiele

E.

18.93

+

>

vened the Board, and the latter acting in the ca-,
pacity of mediators effected an agreement on De¬
cember 5, confirming increases originally awarded
effective between September 1 and November 30,
with further permanent increases effective De¬

866,290

on

+$52,763,131

accepted by the railroads, but declined by the em¬
ployees.
On November 27 the President recon¬

4,311.109

alternate

result

President

cent. / Except for the curtail¬

per

18.560,381

as

a

creases.

23,476.681

Stock

-101.51

clined to accept the Board's proposal to arbitrate.
On September 10, 1941, the President of the United

was greater by 23.97 per cent, with
increase of only 15.43 per cent in freight train

144,953

the

8.08

55,934

+

services of the National Mediation Board pursuant
to the Railway Labor Act.
Conferences held by

j

1,598,162

Jr. act

'.,782,203

111,035

10,462,528

a
satisfactory agreement following pro¬
tracted negotiations by the representatives of rail¬
roads s and
employees, the former invoked the

2,520,232

on

15.25

reach

132.98

14,980,478

9,880,552

considered

16 46

840,310

creases, including vacations with pay for certain
of the non-operating
employees, and the failure to

1

,

,

8.22

Products of agricul.

Transfer of the Stock

22,958,870

+,.

^$331,438,111

by the

30.34

Animals & products

on

+

6,351,038

Wage Negotiations
As

57,418,760

charges

$2,433,749—14.04

i The New York Stock Exchange
has
announced
the
following

will

1.08

162,457,180

__

States appointed an Emergency Board which con¬
ducted hearings between September 16 and Octo¬

general partner.

City,
May 28th.

18.55

71,168

29.68

gain of 460,100 tons, or 18.35 per cent, over 1940,
with gross revenue of $19,763,114, an increase of

K. Rice, Jr.

York

14,464,835

+

operations
1

Total

Automobile traffic amounted to 2,967,145 tons, a

Exchange
Weekly Firm Changes

a

34.73

+

6,667,758

■■■'"

miles.

New York Stock

as

+ $13,701,479

92,454,568

the Board

an

April 29, 1942—Oliver P. Montagnet, 512 Carondelet Bldg., New
Orleans, La., a sole proprietorship.

New

$53,156,074

ment—credit

non-revenue,

— Alfred
Henry
Peterkin, 85-33 Fifty-third Ave.,
Elmhurst, L. I., N. Y., a sole pro¬
prietorship.
'

Co..

(—)

PerCent

Measured in ton mile units (one tori carried one
mile), all freight transported, both revenue and

nffjpprc

continue

or Deer.

The transportation of revenue freight increased
25,316,777 tons—18.54 per cent—to a total of 161,865,972 tons.

April 27, 1942

Wechsler,

>+. * '•

>

Transportation for invest¬

Operating Results

L.
Hackett, and Paul M.
Wagenseller, having withdrawn

•

equipm't

18.93

43,411,829

19.083,788

,

Hillman, officers, Hud¬
Wagenseller, S. D. Lamon,
Sharkey, J.. Bert Easley,

Samuel

of

General

rents

26,245,562

Anna

to

•.•

Amount

20.85

income-

oper.

D—Decrease.

y

Miles A.

a

12.28

Other income

Warren B.

1942—J.

with

and

structures
Maintenance

24.64 7c

15,520,955
Net

25, 1942 — O'MelvenyWagenseller & Durst, 626 South
Spring Street, Los Angeles, Calif.,
Donald
O'Melveny,
Willis
H.
Durst, William S. Hughes, Earl F.
Kitchel, Alson E. Abernethy, Olaf
B. Lighthill, John M. Woods, and

as

7,287,718

331,438,111

Equip, and joint fac.

April

withdrawn

$66,604,375

66,609,863

revenue

Railway tax accruals,

officers.

April 28,

way

Traffic

were—

447,789,655

Schoolfield, and Edw. H. Keller,

V

1940,

(

compared

Increase

Dunbar, general, and Bugg Berry
Dunbar and James Irving Eiband,
special partners, Gus Ayres, W.
Eldon Tinsley, and Elmer A. Sny¬
der, formerly officers of the firm,
having
withdrawn.
Pitman
&
Company, Inc., 721 Alamo Na¬
tional
Building,
San
Antonio,
Tex., Creston H. Funk and Bon¬
nie G. Pitman, formerly partners,
Gus Nelson, Sylvan Lang, William
E.
Dean, Jack Combs, Ray F.

iic

of

Miscellaneous

$336,878,403

Passenger

April 24, 1942—R. K. Dunbar &
Co., Ltd., 705 Brown Building,
Austin,
Tex.,
Russell
Kemble

son

Maintenance

Transportation.

over

1941,

Incr,,{ + )

Account

percentage increase

for

expenses

Amount

The principal items of the income
account, with
dollar

months

were as follows:
A.;-'-:-^

0?f

member, retired on May 8th from

Co.,' 50 Broad Street, New York

City,

By

1940,

and

Income

,

Gregory P. Maloney, Exchange

p

D. T. Moore To Admit
Carroll

employees, effective during the last four
$7,788,915.
c,:

of the year, amounted to

improved facilities and equip¬
ment have made it possible for the
Company to
handle efficiently the largely increased traffic oc¬
casioned by the war economy.
;
V,

Salisbury, Md., a sole proprietor¬
ship.
April 20, 1942 —- Oliver and
Company, 34 East Ninth Street,
South,
Salt
Lake
City,
Utah,
George C. Oliver, sole proprietor;
Stephen Reele, 6220 Oram Street,
Dallas, Tex., a sole proprietor¬
ship; Fred Paul Strassburg, 124
Greenridge Drive., Reno, Nev., a
sole proprietorship.
.April 21, 1942—-National Reor¬
ganization
Corp.,
342
Madison
Ave., New York, N. Y., Arthur
Koerner and Vinny Catania,. offi-

The

Stock

Additional

April 18, 1942 — Philip Mark
Carey, 104 South Division Street,

considered

Dist. No. 1,..Wash,;

;rhis

previous

cent.

per

of $52,763,131, or 18.93 per cent, over the
year.
The advance in rates <of pay of

penses

$447,789,655, exceeding those of 1940'

^

Geren, formerly proprietor, and
J. C. Pittman, formerly manager,
as partners.

associates.

$5,875,000 Whatcom Co. Pub. Util.
^

con¬

Throughout the year it was again demonstrated
that, despite the development of other facilities,
the railroads remain the
country's chief agency of
transportation.

&
'June

Company during 1941

weekly firm changes:

1

$964,000 Akron, Ohio

Trust

revenues were

Operating Expenses

continuation

of an enlarged maintenance
and larger force required to handle the
greater volume of traffic, accompanied by
higher
wages and material costs, resulted in increased ex¬

tinued to be influenced largely by the
expanding
program
of National Defense., Total operating

ing, Shreveport, La., a sole pro¬
prietorship;
Hattiesburg
Cotton
Exchange, 125 North Front Street,
Hattiesburg,
Miss.,
Oscar
P.

associates, obtained the award of the.bonds

ties Co. of Columbus.

The

By classes, compared with 1940, the tonnage and
and

in January,
1940.
Group headed
by Halsey, Stuart & Co., Inc., of New York,
submitted the second highest bid.
/ J

syndicate headed by

> 'o :

Company:

by $77,243,780—or 20.85

cers.

-1941

f

program

The business of the

April 16, 1942—Paul Fibranz &
Co., 134 North La Salle Street,
Chicago, 111., Paul Fibranz, sole
proprietor; Roy L. Fisher, 1403

bffered

June

of'"P:

The New York Central Railroad

V

The First National Bank of New York,

entered

the

Co., 120 Broadway, New York
City,
William
Ignatius
Ewing

May 28

Aug., 1941

on

&

by Halsey, Stuart & Co., Inc., of New York

In

Exchange Commission

dates indicated:

invest¬

the

in

$1,095,000 Montclair, N. J.
On

EXTRACTS FROM ANNUAL REPORT
To the Stockholders

a

-

thu entire

on

applications for

Commercial National Bank Build¬

housing bonds.

'

an

THE NEW YORK CENTRAL RAILROAD COMPANY

brokers and deal¬

as

made with the Securities

ers were

,

supply of new State and munici¬
pal issues coming on the market,

following

registration

1937

newspapers

yet raised

do

so

that

Two

cost of

The
Ohio State "Journal" (Columbus)
and

The

nounced

the
3

to

4

The

135
It

in the

costs,

copies
:

Bedford

Mercury,"

published

years,

on

says

"Journal,"

dwindling

(Mass.)

which: had

suspended

May

for

16.

the Provi¬

that

no

A

publica¬

longer practical."
reference

recent

paper

to

news¬

price increases appeared in

May 7 issue, page 1782.

our

mmt

-J:

Shipman To Be Partner In
R. K. Kaufmann, Alsberg
Herbert A. Shipman,
the

continuously

explained,
'

in
from

18 increases

single

New

was

dence

of

restrictions make its

—

"Journal"-r-an-

May

cents.

"Morning
been

newspapers

Lorain
on

price

subscription
near

Ohio

enormous

*

"rising

circulation

and

New

and for many years
an

individual

will

member of
Exchange,
in business as

York-Curb
Curb

floor

broker,

shortly become a partner in

Richard K. Kaufmann, Alsberg &

Co.,

members

Stock

and

Rrnartwav.

of the

Curb

New York

Exchanges,

New York Citv.

120

relation

in

Consumption In SEC Issues Survey Of
i Listed Corporations
April At Record Level

Cotton

Under the date of May 14,

1942

issued its re¬

Bureau

Census

the

port showing cotton consumed in
the United States, cotton on hand,
active cotton spindles, and
im¬

cotton for the
1942 and 1941.

ports and exports of

of April,

mqnth
Cotton

amounted

consumed

to

book

bales of lint and

*

Congratulated
159th Anniversary

On

1937, declined to 4.9% in 1938,
rose
again to 7.3% in 1939.

but

Walter

Whyte

Says

reported

dustry

The

President's

■

dressed to Emil

r

levels but
stayed there

these

about

have

neither

,

long enough to consider them
definitely in the list. So for
those who didn't get them the
advice is repeated.
>;«

*

In

/

i'fi

•

://••

Z/\:

summing up allow me to

market, par¬
ticularly the type we are in,
can
go up without a set back.

point out that

no

Sometimes these set backs can

be serious and indicate a more

reaction

serious

than ...was

■

originally indicated.

But at

nearby reaction
have the danger sig¬

this time any
does not

nals that call for caution.

On

contrary I continue to feel
that set backs from here will
the

say:

The annual return on invested of the Exchange, was read at the
War Bond rally held on May 18
capital, computed before provision
for interest and debt discount, in¬ at the Sub-Treasury Building in
observance: -of
the.:; Exchange's
come taxes, and minority interest
in earnings, averaged 7.7% from sesquicentennialv
1935

the

for

1939

to

1,495

v

More

next

Thursday.

—Walter
,

[The

views

Whyte.

expressed

in

this

article do not necessarily at any
time

coincide

Chronicle.

those

with

They

are

those of the author

of the

presented as

only.]




6.6%

326

pages.

The White House,

in

Central

6

Putnam

Row,

Stock

New York

an

officer of

Washburn

&

Com¬

Inc., and was manager of
the bond trading department for
pany/

Kidder, Peabody & Co./

w

j

B Marine Ins. & The War

v

income taxes,

capital,

showed

211

and

turn

invested capital of regis¬

on

The

trants.

of

sists

second

frequency

section

con¬

distributions

1,495 registrants classified
according to the five financial
ratios: (1) rate of return on tangi¬
ble net worth; (2) rate of return
on
invested capital; (3) current

of

the

or

more.

brokers joined

cor¬

porations sustained net losses in
each year compared with less than
15%, on the average, of the manu¬
facturing and merchandising com¬

tree

role

of

total assets of the

1,495

although the 1939 total
was
$611,000,000 / (1.0%)
below
that reported at the 1937 yearend.
Registrants of only two of
the' major industry groups
reoorted, as a whole, a net increase

of

1939,

.

in

total assets from

1935 to

1939.

paid

extractive

by

1790

light and power industry declined
1.7%

oyer
the 5-year period,
deduction of reserves ap¬

after

plicable

to fixed

assets, which in

industry are ordinarily car¬
ried on the liabilities side of the

this

Registrants in the

balance sheet.

the Exchange

to

paid
*

•

income.

indicates

valuation of assets

was a

common

continuation of

i

ket, will

nearly three times as frequent as
write-ups. Direct write-downs of
fixed
assets,
intangibles,
and

the

of

investments

were

period ranged from less

year

while

financial

ported

a

and

real

registrants

reserve

The

summarized

decrease of 10.0%
report.
estate companies a net
net

decrease of

12.3%.

annual net income
1935-1939 of the
1,495

The average

amounted to
$2,687,000,000, which was equiva¬
7.0%

1937

The year
point

earnings for all registrants
bined
although
1936 and

in

com¬

aggregate net income

President,

•

Exchange,

from; Secretary
read

telegram

are

Morgenthau to Mr.. Schram

of

the

as

text

registrants

as*

follows::

:

wishes to

the

Exchange

on

good

and

Stock

New York

a

'•

■'

•

Total assets

dividends

Return

on

capital_i.—l_

Return

on

tangible net worths

Return

on

stockholders'

Current
Net

equity-

ratio

3,163

$62,169
3,383

2,334

2,546

of

tangible

-

'J.

;-■//
—

total debt
worth

net

6.6%
6.2%.
5.9%

Millions).
,

1938

'

'

good wishes of* the Securities
and Exchange Commission upon
i 150th anniversary of the

.the
:

founding
of ' the
Exchange!
willingness
of the
Ex^

The

'change'

and

assume new

$61,558
2,803
> 1,977

$60,683
• Vl,885
1,652

in the

5.9%
5.2%

7.9%.
7.7%

8.6%

4.9%

of

7.3%*

'

8.3%.

.our

It

;

9.2%

8.8%,9.2%

8.8%
(•'

3.62

3.30

3.19

3.85

2.35
r .83

2.24

2.20

2.24

2.17

'".97

1.06

.91

*'..99

•

.

♦

growth and development
country will continue.

is

gratifying to know,, as
that your share in
present task to secure the

'indeed I do,
our

future

7

3.75

,

worth per dollar of

Turnover

1937

1936,

$60,342

paid

invested

(Dollar Figures in

: 1935
$58,688

i__„

Net income

Cash

7

2,199

.

-/

burdens under

1,470

'//:

-r

.

- its
members to
responsibilities and
rapidly changing
1 /'
./.conditions is evidence that the
1939
historic role of your institution

<8>-

<

••••

;'

.

May I extend to members of
the New York Stock Exchange

150th anniversary.
In all
its long and crowded past the

your

7

to

the

telegraphic .message to
Schram, Chairman Purcell of
his

the SEC said:

the celebration of

'1,495 Registrants Combined

.

Mr.

/

Congratulations
1

In

New York, N. Y.
The

material

of financial operations

1,495

B///;' -'-''y;

;

New York Stock

and

glad of this opportunity

am

7/thank you for this service to

Schram,

tables

/////

group.

1939

profitable years for more
companies.
The largest corpora¬
tions
showed
highest
average
earnings in 1937.
For all 1,495
were

registrants

the

in

I

•country.
Emil

Honorable
Y/'\

of the stockholders'

at book value.
marked the high

eauity

the

for

during
registrants as a group
to

44

The following table pre¬
sents several of the more impor¬
tant items

lent

the

in

all that you are doing

ates

FRANKLIN D. ROOSEVELT. :

.

comprehensive

v

op¬

Very sincerely yours, /

accounts.

contained

re¬

re¬

during
an

fail-

not

will

effected through

were

have

You

portunity for great service,'and
I am confident that in this you

re¬

substantial

many

valuations

mar¬

be of vital importance

follow.

has

greater public

period of readjustment that

will

directly to the assets

than concerned,

the construc¬
tion, transportation and communi¬
cation, and agriculture industries,
to 32.9% for the service industry,

2% for companies in

orderly

an

never/ been of
service than it.is
today.
Your war bond rally is
only one example of the enerr
getic and enthusiastic work be¬
ing done by the members of the
Exchange in helping to finance
the winning of the war.
The
Treasury Department appreci¬

Exchange

The

unduly.

both during the war and

v

security

important service to

security markets

-

showed a net re¬
ported in 1,073 instances aggre¬
duction
in
total
assets
during
gating $2,110,000,000, while write1935-1939 of $157,000,000 (9.8%).
ups amounted to $385,000,000.
In
For other industry groups, net de¬
addition to these amounts charged
clines in total assets over the 5or
credited
extractive group

able to

"The very short-term

group.

.

direct
write-downs of book values being

instances

was

a

viewpoint reflected in the prevail¬
ing market prices for many in¬
surance stocks," the Review con¬

portant that we do not permit
these difficulties to disrupt our

re¬

practice among registrants during

1935-1939,

then

as

nancial gloom, and with the cer¬
hysteria of the first
tain restoration of normal under¬
War has not been reI/* ■•*//•
/ peated and that our
market writing profits."-' //;
Copies of the News Review and
places this time have remained
also an' interesting summary of
open! The members of the.Exthe
situation
in ' United
States
change, like millions: of/ their
Guaranty Co.- issues
fellow citizens, find their nor- Fidelity &
/ mal
business
life affected by may be had upon request from
stresses and strains of world- Huff, Geyer & Hecht, Inc., 67 Wall
•
;
wide character.
Yet it is im- Street, New York City. L.;
V

that

a

the

that

to somewhat over 70%

report

an

7' World

.

The

& Hecht have chosen to
figure double current re¬
ported marine losses in order not
to minimize these losses in mak¬
Geyer

take

the

corporations

of their 5-year net

temporary

cludes, "affords bonafide investors
a rare opportunity to acquire the
public and to the Nation, so
soundest
of
common
stocks at
today it has the opportunity of
performing valued services in prices which, as in the past, prob¬
the present struggle for human ably will prove to have been absuredly low with the dissipation
freedom.
:• v?
'
It has been gratifying to me of the now widely prevalent fi¬
render

light and power regis¬
however, cash dividends

trants,

and

State

obligations of the war
American liberty.
Just as

for

gate net income by 22%. For man¬
ufacturing,
merchandising,
and

amounted

the

fund

to

national

in 1935-1939 exceeded their aggre¬

electric

strictly

have ing a realistic appraisal and de¬
clare that the claims have beer*
To me it is
interesting to note that the Ex¬ spread among so many companies
that the losses have been absorbed
change
was
organized
as
a
direct result of an $80,000,000 without any long-term effect upo'ii
issue
of
Government
bonds any insurance company or upon
the marine
insurance companies
authorized by the Congress in

,

Gash dividends

1939.

70% -in

to

a

impairment of earning power. In
considering
the
outlook, Huff,

Nation

the

of

affairs

in 1938, but declined

88%

to

and

corporations rose by $3,086,000,000
(10.8%) and merchandising com¬
panies reported a net increase of

$387,000,000 (15.5%).
Total as¬
of registrants in the electric

relation

dividends

cash

with

sistent

steadily increased.

by the 1,495 registrants increased
from 67% in 1935 to 75% in 1937

Combined assets of manufacturing

sets

In

stock.

income,

Exchange

responsibilities in the financial

period. Of the total dividends de¬
clared, 97% was paid in cash and
18%' represented
dividends on
net

the

the
and its

Street,

*

panies, and 5% of the electric
light
and
power
corporations.
Losses were seldom reported by

preferred

Wall

in

down

annual sales volume, type
297,000,000, equivalent to 77% of
capital structure, and degree their combined net income for this

registrants included in the study
increased by $2,869,000,000 (4.9%)
from the end of 1935 to the close

together in 1792

improve > the - market
in
securities being conducted un¬
der the famous old buttonwood
to

sets,

According to the report, the ag¬

un-|

celebration. of the porarily unprofitable underwrit¬
of the found¬ ing for some companies, the prices
of many insurance stocks have
ing of the Exchange.
been depressed to a level incon¬
Since the original group of 24

the larger companies, these regis¬
ratio; (4) net worth per dollar of trants tending to concentrate in
total debt; (5) turnover of tangible the medium
earnings groups.
net
worth.
In
the
frequency
Dividends declared by the 1,495
tables the registrants are classified
registrants for the five years from
by industry, amount of total as¬ 1935 'to 1939 amounted to
$19,-

profitability.

current

150th anniversary

annual
More

extractive

the

on

of derwriting

deal

the

upon

669 earned less than

total assets, type of earnings of 20%
capital structure, and rate of re¬ than half of the

effect

verse

results of a limited
number of companies; and adds
pleasure that I extend by good
that once again, during a period
wishes to the members of the
of financial depression and tem¬
New
York
Stock
Exchange

10% per annum on their invested

try, amount of

part to recent publicity
concerning ocean marine losses,
which have had a temporarily ad¬
in

least

-

My dear Mr. Schram:
It
is with
a
great

are

analyses of the 1,495 registered
corporations.
These financial
statements are classified by indus¬

unquestionably

attributable, the Review states, at

Washington,'May 15, 1942.

again to

The rate of return

9.2% in 1937.

//f/B/./BZ/BB

The President's letter follows:

presented

are

which

gregate

:"f; '

& Company,
members of the
Exchange.
Mr»
Bayliss was previously with Lee
Higginson Corporation, in New
York City and prior thereto was
with

iated

insurance stocks is

mission.

text of the report.

the

time the market will start up
■,

data

tables

of

again.

Charles

/The May
16th issue ;of/Huff,
congratulatory telegrams Geyer & Hecht's News Review dis¬

Other

regis¬

in 44 dropped to 5.9% in 1938, but re¬
summarized in covered to 7.9% in 1939.
The first
During the 1935-1939 period,
section comprises detailed com¬ 274 of the
1,495 registrants, on the
bined balance sheets, profit and
average, * reported net losses an¬
loss
statements,
and
surplus nually before interest charges and
The

stocks and after not too much

to

from

increased

trants

1935 to 8.8%. in 1936 and

of

consists

2

Part

of

confined

following to

also has the

mission

individual

be

: ad¬

letter,

Schram, President

f

—

manufacturing, mer¬ trants as a group. Merchandising read at the ceremony included
cusses in detail the current situ-|
chandising,
electric
light
and corporations reported an average me&ages from Secretary of the
ation in Ocean Marine Insurance
power, and other industries.
Part return of 10.8% followed by man¬ Treasury Morgenthau, / Secretary in view of American
Ship Sink¬
1 was based on reports filed for
ufacturing .with
9.2%,
electric of Commerce Jesse Jones, Gover¬ ings and
consequent
insurance
the year
1937 and covered in light and power with 5.6% and nor Lehman of New York and
losses. ,The rather sharp decline
great detail the more important, extractive corporations with 5.1%. Ganson Purcell, Chairman of the
in the market prices of specific
financial characteristics of 1,961 Similar to annual
Exchange
Com¬
changes in the Securities and

stocks have managed to dip
to

HARTFORD, CONN.

E._ Bayliss, Jr./ has become affile

that will follow."

ment

of

average

an

4.8% and manufacturing corpora¬
tions 7.9%.
.
V

registered corporations with as¬ rate of return on stockholders'
(Continued from Page 1933)
mended last week were Air sets aggregating $78,726,000,000. equity, the average return on in¬
The announcement by the Com¬ vested
capital for all 1,495 regis¬
Reduction between 29-30, and

Alli$ Chalmers under 23. Both

Joins Putnam & Go,
//(Special to The Financial Chronicle)

President

in extractive,

Tomorrow's Markets:

Charles SaifSiss, Jr.

NYSE

in

5.9%

Roosevelt, in a mes¬
The
Securities and Exchange The >nnual rate of -return, on
Commission on May 13 made pub¬ stockholders' book equity during sage to the New York Stock Ex¬
lic the second in the series of the 5-year period varied by major change on the 150th anniversary
of its founding, said on May 15
summary reports
of the Survey industry groups from an average
"the
continuation • of
an
for extractive corpora¬ that
of American Listed Corporations, of 4.2%
a
Work Projects Administration tions to 9.3% for merchandising orderly market will be of vital
importance both during the war
study sponsored by the Commis¬ concerns, while corporations in
and during the period of readjust¬
sion./ This report, designated as the electric light and power in¬

132,106 "Statistics of American Listed
bales of linters, as compared with Corporations, Part 2," covers the
966,031 bales of lint and 131,187 financial operations ' during,, the
bales of linters,. in March, 1942.
years 1935-1939 of 1,495 corpora¬
tions with securities listed on na-.
April consumption of cotton in¬
In¬
cludes 4,900 bales distributed by tional securities exchanges.
cluded in Part 2 are corporations
Surplus Marketing Administration
with total assets in 1939 aggregat¬
through various cotton mattress
ing $61,558,000,000 and engaged
programs. : -"
'
;•
998,754

from

in 1936 and to 8.6%

1935 to 8.3%
in

stockholders'

to

increased

equity

Thursday, May 21,. 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1938

1

of

our

country

will

be

public service
and faithfully performed.

'-'undertaken as

a

Volume 155

Number 4074

THE COMMERCIAL & FINANCIAL CHRONICLE

SEG Permits Curb To

Our

The

Securities

Commission

that it had declared effective for

at any

an

you

plan of

a

;

.

Obviously, unless

.

doubt

you

the ability of the Reserve System to hold the rate
where it says it
will hold it, you can buy discount bills in
complete confidence that

and

experimental period

(Continued from First Page)

Now what does all this mean?

Exchange
May 15 announced

on

Reporter On "Governments"

Vy'iV.'" I '

Try Special Offerings

time

re-sell that at the discount which prevailed when
Artificial control of the short-term

you can

subscribed.

...

market,

the New York Curb Exchange for

therefore, has been carried to its final point.

"special offerings."

ability of the Reserve to buy is concerned,
consider the fact that in the last three weeks of
April, the Open
Market Committee purchased
$89,000,000 bills to exercise "a stabiliz¬
ing influence."
(The words are those of the New York Reserve
Bank).
•

The Commis¬

.

sion states:

.

by the Commission will be to
exempt
from

of

the

Commission

the

on

extension of Federal control

spot where

.The

New

.•

York

Curb

\

curities .exchange
to have declared

the Commission

;

cial

Ex¬

offerings.

New

York

similar

file

to

se¬

be taken.

by

spe¬

The plan of the

:

declared

;

York

'

San Francisco

effective for

Stock

Stock

may

have

and the

.:.

.

.

e

..

,

,

f

r

Vr

way

much

available

cash

for

.

.

So

can't count

we

on

that

Lawrence Turnure; And

before

Secretary

term

has

.

.

Morgenthau

decided

with Blyth &

Lawrence

Turnure

&

Bonner, will have
on
the New York

the

firm

will

That

of restricting

the

more

a

bank's

A

Bond

War

tap issue.

.

.

150th

change's
held

at

noon

in

obser¬

anniversary,

on

May

18

was

the

on

the old Sub-Treasury
at the corner of Wall

steps of
Building,
and

rally,

The

Streets.

Nassau

vital

necessity for those at home to in¬
vest in War Bonds was emphasized
in talks by Frank C. Walker, Post¬

General

master

of

United

the

States, who delivered the keynote
Emil Schrem, President
of the New York Stock Exchange;
address;

Winthrop

W.

Aldrich,

Chairman

of the Chase National Bank; New-

!

In

accordance

with

the

action

taken by the Board of
of the Exchange, the

Governors
Stock Ex¬
change /was closed between 12
noon and 1 p.m. in order to permit
the fullest attendance

on

the part

Of the financial community. Banks
and"

brokerage

downtown

changes,

houses

in

district, and other

also

ployees extra

the
ex¬

allowed their em¬
time at the lunch
.

hour to attend the celebration.
,

v

Donald J. Hardenbrook, a mem¬

the

even

taps

method would
than

more

unless

.

idea alone for

a

while.

month/ he'll return

.

.

comment

some

the

on

.

.

.

.

comes

call

.

an

orthodox, regular

'

-

until definite denial is issued.

.

.

Fact

.

.

.

.

.

.

'

.

r

.

.

mar¬

that

J

.

Several

amusing incidents occurred in first few days of tap sale,
sources from all parts of the country
converged on the
few big insurance companies with requests that they buy the bonds
financial

a

big

various

scale.

.

Some of the

less

experienced

financial centers of the nation

were

a

salesmen

of

the

bit too eager to

help
the Treasury.
A few major insurance companies were swamped
with calls, had to put on extra people to answer the salesmen.
Duplication of efforts, though, expected to be eliminated as financiers
get their high-speed machinery in gear.
If the dealers and in¬
...

vestment bankers can't sell

Governments,

no one

can!

.

.

.

.

.

.

have them in Britain and elsewhere.

ingly,

is

on

subscriptions from this date

.

.

.

Wall

Street,

Secretary of Commerce Jones and
Governor, Lehman were read on

made the occasion of the observance of
of an the sesquicentennial celebration of
Army band and artillery in charge the Stock Exchange.
Among the
of detachments of helmeted troops special guests who took part in
from Fort Jay, ; Fort Totten and the
rally were Lieut.
William
Fort;-Hancock. - The.. Navy. also McC. Martin; Jr., U. S. Army, for¬
v

A

martial.atmosphere

realistic, by, the

was

Navy, former Chairman of
Exchange's Board of Gov¬

tary of the Treasury Morgenthau,

original




Army

unmistak¬

are

you still don't
what is supposed to

or

Of course, our heroes come through at the
give them all what for.
In one scene Red Barry,
as the deserter, even steals a Jap plane (up to then no one even knew
he cbuld fly) and dive bombs a Jap battleship.
v The second opus,
"My Favorite Spy," cost a little more to produce. It has Kay Kayser
time

and

.

and

his

orchestra.

Kay, playing

.

dim wit, obtains

an Army com¬
duty on his wed¬
ding night.
He makes such a botch of things that he's assigned to
Military Intelligence, of all things.
How he and his lady assistant
capture the spies and how he wins his wife's love and trust again is
boringly and stupidly shown.

mission

THIS 'N' THAT.

.

.

future, Myrus, does it

identify

a

by mistake and is ordered to report for

a

at

person

How the Cotillion Room's see-er-into-the-

.

is beyond

my

Other night I

me.

table; somebody I'm

sure

asked him

was

military organizations.

,

.

,

the

to

he doesn't know.

After reproving me for my doubts

but

name

he proceeded to give not only the
the nickname as well.
All this only from
thing I ever saw.
Spivy's Roof (57th

Most remarkable

.

.

.

weather and the dim-out,, on the ter¬
race, is not only THE place for stayer uppers, but a grand spot for
hand-holders.;
c.
Charles, (Philip Morris Playhouse radio pro¬
ducer) Martin invited a Hollywood glamour boy to appear on his
Lexington), with the

warm

.

.

The hero wired back asking for $6,000 for the half hour.
back:
"You should join the Army.
No enemy could
under the way you charge."
MGM wants two kids

stand

up

.

.

.

for

pictures.
A four or five-year-old girl, tiny, lean and sensitive,
and a six-year-old boy, shy, slight and attractive.
No acting expe¬
rience necessary.
Send photos to MGM talent scout, A1 Altman, 1540
...
A New York newspaper columnist recently
print, "Is it true that Macocpa (El Morocco round table set)
for the Argentine
Government?"
Very mysterious.
The

R'way, New York.
asked in
works

if anyone is interested is "Yes." Macocoa, whose full name is
(Macocoa is a nickname) has been the accred¬
ited American representative for Argentina for the last ten years.
He checks on new planes, output and performance.
Recom¬
answer,

Martin Alzaga Unzue

.

mended

and

reading

re-reading:

Vice-President

speech.

;;.v..

.

.

Wallace's

recent

'

»

The Penthouse Club
30 CENTRAL PARK

SOUTH

Adjoining The Plaza

:

v

THEODORE'S
A
a

Superb DINNER $1.65
Excellent

Hors

most

unique restaurant in

$1.25

D'Oeuvres

&

beautiful location, overlooking

Central Park

to

the north.

Desserts

presence

ernors.

a

the

an

The place is equipped

Japanese, accents.

crucial

LUNCHEON

68

acted as
master of. ceremonies at the rally,
now

buttonwood tree at what

under

who -signed

in guttural, German,

4 E. 56th ST. PLaza 3-6426

U.

brook,

of Dec. 7th.

...

brokers' agreement 150 years ago

and

eve

.

So guide yourself, accord¬

.

on.

.

President, of

Exchange

the

Not

Lieut.

Stock

on

comparable, any longer, to the over-subscriptions of a year ago but
those days are gone and gone for many, many, years—if not for¬
ever. ;
With issues coming out every month, we should be ap¬
proaching the day of 50% and even higher allotments.
They

and

the

of

descendant of John A. Harden-

"My Favorite Spy" (RKO).

or

.

Allotments of 38%' on the 2s in line with expectations.

mer...

a

(Republic)

...

represented, as were auxiliary
'
'•
:, During
the exercises, messages
from President Rooseveltf; Secre¬

ber

war; what we are fighting for and why, it seems to me that
industry is rendering a disservice in producing such pictures as

Martin wired

called "propa¬
Inside market, talk

ganda" and "unpatriotic support by press;"
was entirely different, although Morgenthau obtained his
cash,
ket is still in good shape—and these are
the only points

on

as

program.

that it hasn't been considered significant. .
News about way tap issue went in newspapers

matter.

"Captains Courageous" is crisp and capable.
Spencer Tracy as
is admirably cast as the shiftless philosopher.
Hedy Lamarr
Sweets, the independent fiery dark haired girl, is no longer the

Pilon

&

so

Its comedy is of the homespun variety de?

and

person's full

Redesignation of Central Reserve Cities in order to expand ex¬
cess reserves of banks in New York City and
Chicago getting more
attention every time. we check;"41 ...Seems a; good
possibility, at the

as

apparently stands still.

initials.

moment and will continue

It has no message and preaches no moral.
It merely
the way of life of a simple happy people for whom time

pending on childish naivete rather than on sophisticated hi-jinkst.
The photography is breathtaking in its grandeur.
The direction .-by
Victor Fleming, who did such good jobs on "Gone With the Wind"

.

back to the market

^

-

describes

be

«

-

...

ing episodes.

know them they speak

.

.

we

of the story.
"Tortilla Flat" is not a story that moves
charm lies in its studied languor rather than in
any excit¬

crux

Its

able.

outstanding obligations.
Morgenthau will leave the tap

with what

the

vancement, or are too fat to get around.
The villains
They leer.
They sneak around.
And in case

.

.

on

And when he

is

fast.

with the usual combination saloon dance hall and lots of girls.
Our
heroes either can't stand discipline, and desert, study hard for ad¬

.

coupons

equally shiftless pals, Pablo and Portagee Joe, neither
of whom have a penny between them.
Danny, released from jail,
where he was serving a disorderly conduct
sentence, tries to assume
his place in the little village as a man of
property.. He meets a girl,
Sweets, who fails to be impressed with his propertied status unless
he gets a steady job.
She works in a nearby canning factory. How.
Danny finally goes to work and how his friends try to dissuade him

post in the Philippines

a tap

.V.

,

deal with his

were

.

But the best guess at this time is that

is

The first picture describes life at a place called La Dessa,

could overcome the opposition of the big
city banks is something else again,
,
'•
Eccles still is reported in favor of trying a tap issue with all the
trimmings in place.
Of giving the banks an opportunity to sub¬
scribe to tap offering of short maturity, non-marketable and com¬
.

a place to
sleep.
Anything
gilding the lily.
So convincing are his arguments that he
talks his equally care-free
friend, Danny, into pawning his watch
for wine and to give one of his
shacks, left to Danny by his grand¬
father, to him.: Pilon moves in and by fast talking arranges a rent

else

now.

they

the Federal Reserve.

philosophy that wealth, even a silver watch and a couple
shacks, is the root of all unhappiness. Life to him

bottle of wine, a loaf of bread and

a

"Remember Pearl Harbor"

a

paring generally with the

is

Considering the job the movie people have done in publicizing

suggested by

.

bold

Morris, President of the City
Council, and Richard C. Petterson,
Jr., Chairman of the New York
State War Savings Staff.
5-'

lines

the

Although there has been

.

naive

a

this

go along with that point.
tap issue would not only bring about great
of the banks but also would give the Treasury an excuse

Inside The Market

of the'New York Stock Ex--

like

has

of tumble down

the

i;

attractive than comparable outstanding securities and

market flotation.

vance

along

investing policies

wouldn't

story of a
simple people, delightfully told, but magnificently acted by some of
Hollywood's best stars. Pilon, the likable happy go lucky scoundrel,

.

.

—but whether the Treasury

.

Anniversary

<

.

next

On 15QIH

.

com-

issue that would be completely nommarketable for the portfolios of timid country institutions.
That
move might bring out the cash of many small banks that today aren't
buying bonds because they're afraid of the price level.
It might

Main offices of the firm will be

r. V:

issue,

tap

a

advisability of designing

Harlow W.
Young and George Richard Payne.

NYSE War Bond Rally

purchases.

The argument is that banks feel the

; ;

".

means

censure

of

Thurston W. Hunting,

York.

bank

•

■

.

,

Apparently, the banks in big cities especially aren't in favor

be

Broadway,,; New
York City, with branch offices at
Jamaica, N. Y., Perth Amboy, N.
J., and 225 Varick Street, New

of the

.

.

commercial

to begin direct sales of securities to

Turnure, John Kerr,
William T. Veit, Gerard L. Pears,
Ralph H. Hubbard, special, Robert
L. Harding, John R. Marshall, H.

50

designed for

That any failure of
;

Lawrence

at

sale

obviously, the Treasury doesn't
>

(Associate),
Chicago
Board of Trade, New York Cotton
Exchange, New York Coffee &
Sugar Exchange, Commodity Ex¬
change, Inc. ir.

located

a

made

-

Exchange

in

issue,

concerning

Eccles.
be

Stock Exchange, New York Curb

Partners

tap

ment

...

Co.-Blyth &
memberships

the

York, there has been much discussion and much adverse

Bonner, to become effective June
1, 1942. The combined firm, to be
as

on

v/.',

(MGM),

clothes horse; she is an accomplished actress.
John Garfield as
Danny, the man of substance, does a grand job. Special honors, how¬
ever, go to Akim Tamiroff, who as Pablo, the trusting, hero wor¬
shiping, but befuddled simpleton, is outstanding.
/
/

One authoritative story is

.

'And among commercial bankers and savings institutions in New

officially confirmed the reported

known

major buyers

Certainly, not to be major buy¬

...

.

merger of the firm

.

2 V^s, he conferred at length with the presidents of the nation's
largest and most influential banks.
They, it is said, opposed
the suggestion of Reserve Board Chairman Eccles for a short-

Blyth-Bonner Merging
Co.

.

.

Flat

Spencer Tracy, Iledy Lamarr and John
Garfield, in John Steinbeck's story of the fabulous
paisanos of Mon¬
terey, California.
Directed by Victor Fleming. This is the

.

the insurance companies to be

of any bonds for a few months.
ers of another tap issue. .

Now what about the banks?

&

.

.

mines.

Turnure

a

...

be effective until July 31, unless
the Commission otherwise deter¬

Lawrence

in

.

.

appeared in these colums Feb. 12,
page 658.
The Curb's plan is to

.

We're

.

of

.

Exchange.

of the more im¬
features of these plans

summary

portant

convictions with it.

buying Governments for quite a
while.
The insurance companies probably used
up at least four
to five-months' cash in their
buying.
(More than $800,000,000
of the bonds were bought, a surprisingly
big amount considering the
relative unattractiveness of the
securities, and four big insurance
companies were primarily responsible for.the sales).
Maybe they
used up even more of their ready cash.

'

A

longer is

no

.

the insurance companies went for these tap 2V2s, be¬
patriotism, selling pressure and genuine buying interest, it
be presumed, suggests that this class of investors isn't going to

cause

the New

Exchange

'The

;

Exchange is
plans recently

the

But

.

Another "Tap"?

Curb

to

.

we

our

.

and

effective

plan for

a

ing all

'

change is the third national

.

control.

have to have it—or the whole system will topple carry¬
.;.
Incidentally, the move should
cause a re-distribution of the now
badly distributed excess reserves
of the system.
For smaller banks can buy the bills—
%% isn't
too bad a return for demand money—knowing that a loss will not

Exchange under
.

the market.

over

it possible for any of us to resent artificial

*

conditions.

.

banks, generally, this step should be most re¬
though they fundamentally may resent and abhor the

even

NEW MOVIES
Tortilla

commercial

assuring,

the:. payment
of
compensation for inducing pur¬

certain

.

,

...

the

as

...

To

plan

prohibiting
chases

far

as

.

distributions;; carried

rules

And

■

The effect of the action taken

out in accordance with the

1939

the

Charles

B.

Exchange,
Harding,

Open SUNDAY AT 5:30 P. M.
*

*

Serving

best

food,

skilfully

Entertainment after

11 P. M.

*

prepared.

LEONARD ELLIOTT
PETERS
After

SISTERS
11

P.

M.

S.

LE RUBAN BLEU

Telephone PLaza 3-6910

(iMhsswawn-Wcjitart!!",,) .<( ,*"•*

.1'. : .U

a

.

.vXwtt.HV vrt>

itm*«m*mw*~

Likes

?' We have on numerous occasions over the past year, or so directed
attention t6 the possibilities for income and price appreciatioh in a
combination purchase consisting of units of 1 share of Postal Pre¬
ferred {14) and Western Union (26) on the basis of a merger of these
two companies,
""■■■■-vvr-^:
'
-■
At the time of our last specific comment. Postal Preferred was
,

,

New Delivery Plan For;
Quarterly Reports
Stock Clearing Corp.
May Be Suspended
Currency Imports

/

;
The

Treasury Department on
May 19 extended its controls over

importation of securities so as to
the importation of currency.
action, the Treasury
explains, controls over the impor¬
cover

Prior to this

selling at 8-8V2 and Western Unions——~
• ... ■
■
■,
231/2-241/2.';, Since that time both
We believe the bonds are atstocks have experienced worth¬ tractive not only for new specula¬ tation of currency have been lim¬
while percentage appreciation but tive funds seeking employment ited to importations from blocked
neither, ; in our opinion, have for income and price appreciation, countries and Proclaimed List
but also especially suitable as a nationals. In its May 19 announce¬
come anywhere
near exhausting
well situated near and interme¬ ment
the
Department
further
potentialities.
:
switching
media
which says:,
;/./■'/■:/ ' //:
/Developments have been pro¬ diate
.

Quarterly reports by many of
nation's leading corporations
may be suspended for the dura¬
tion of the war, especially those
largely engaged in war work, if.
the

Declares

Sugar Supply
Situation Is improved

ciple by all parties concerned, has
introduced in Congress and
has 'been
submitted for public
hearings. Last week we were par¬
ticularly interested in Chairman
Fly's (FCC) testimony to (the e\
feet that there was no doubt of

The belief that the sugar
tion for the future may

situa¬
be looked

d Merger of these two companies,
ddding that under existing law

with more optimism was ex¬
pressed on May 18 by Ody H.
Lamborn, President of Lamborn
& Co., Inc., New York City. In a

could take over

talk before the convention of the

upon

of Congress to compel

the power

Government

Bank

thereafter

will

currency

deliver

or

hold

it

to

such

do¬

a

mestic bank to be held until such
time

the Treasury Department

as

has authorized

"It

its release.

under

now

way

re¬

On May 18, the new central de¬
livery plan of the Chicago Stock
Clearing Corporation, subsidiary
of the Chicago Stock
Exchange,
began operating, it is announced

by

C.

Russell.-Bergherm,

A

num¬

agreements, and the War Depart¬
ment
and
Office of Censorship
understood to favor the

are

move¬

ment,

especially for corporations

active

in. the

armament

eries

Executives

*

of

several

New

thermore stated that if, under per¬

"the companies
willingness to ef¬

missive authority,

did'hot show

fect1

a

would

return

with

tions.

We

situation

recommenda¬
somewhat sur¬

April

-

annually

day.

//;;///::-•/ ;■:/,;///:/'

The announcement
explained:
The plan has been
inprocess
of

development under Mr. Berg-

herm's

supervision

sible

and

made

issuance

the

of

interim

reports
confusing.
A
growing number of corporations,

plicable to securities which are
subject to similar control, the pro¬
visions of the amended general

it

ruling applicable to currency im¬

holders—in

is

said,• wish to discontinue
figures in reports to stock¬

sales

the

case

/ Subsequent
steps
which
are
proposed to follow the initial one
provide for inclusion
of
Loop
banks and
non-member
dealers
in the system, and also a step pro¬

Curtiss, viding for the Clearing Corpora¬

of

000.

reorganization

for

praised
poses

that was

moderate

D.

&

pur¬

limits)

Treasury officials sug¬
gested that the fact that an im¬
portation of currency from Latin
penses..

America

clue

1943

(56-57)

as

issue

an

which is considerably behind the
:. present, market.,;?
bonds

11 Most

;

of

-

^;

//. / * \

this

sort

,

/>/■/ j
com-?

Reason for the

relatively, low appraisal of Dela¬
& Hudson 4's in the present
due to the uncertainty
of the mear maturity.
The issue
is large .and the road is in no po¬
sition to deal with anything but a
small percentage of hold-outs. Re*
enactment of legislation similar
to the Chandler Act, which ex¬
ware

market is

.

the

equivalent

central

banks

(or

Republics
surances

from

banks

such

in¬

or

figures

Result Of Treasury
Bill Offering

on

reveal

valu¬

unit produc¬

Stimulate War Bond Sales
Contests among

groups

of

sav¬

ings and loan associations through¬
sales

country to stimulate their

of

War

mended

by

Bonds

the

were

recom¬

Federal

Savings
and Loan Advisory Council at its
semi-annual meeting in Washing¬
ton on May 16.
Members of the
Council

represening nearly 3,850

member

ing

thrift

and

institutions

Home

Loan

home-financ¬

of

Bank

the

Federal

System,

con¬

91-day Treas¬

ferred with Administrator John B.

Blandford, Jr., of the National
Housing Agency,
Commissioner
John
H.
Fahey of the Federal

/

fair

weather

condi¬

from

her

shores

to

our

southern ports, as

well as from
Puerto Rico, will continue suc¬
cessfully, and in fact, improve*
/ It,is my belief that the Carib¬
bean area will eventually become a well patrolled and pro¬

Home Loan Bank

.

tected lake.
>

r More
as

goes

front,/

*

*

progress

time

home

*

Administration,

so

that

restricted supply of sugar. ^
'•

'

'

*

'v-

of

are

on

were

the' savings

assist in

May 12 by Secretary
Jones. " The

,

Baltimore Traders To

Spring Guiing

and

loan

leaders

financing construction

needed

transfer

"

"

s

expected that the plan will

effect

considerable

savings
to
by facilitating security

deliveries and transfers.

Inv.

Advisory Contracts
Legally Salable: SEC

on May 11 made pub¬
opinion of its general coun¬
sel, Chester T. Lane, to the effect
an

that

investment

an

adviser

of

a

registered
investment
company
cannot
legally profit by an at¬
tempt to sell his investment ad¬
visory contract .with the com¬
pany. Z V The
Commission's
an¬
states: •-/<

nouncement

r;:>;://,

,

"

Mr.. Lane points out that under
Sections 15 (a)
and ;(d) of the

Investment Company Act of 1940,
investment / advisory/ contracts
with registered investment com¬
panies are not legally salable.
The opinion goes on to state
that,;
as
is recognized by the statute,
a
fiduciary relation exists be¬

tween

an

investment adviser and

investment company.

Conse¬
quently, the receipt of a consid¬
eration for any purported assign¬
an

ment of such

contract will

a

con¬

stitute gross misconduct and gross
abuse of trust, subject to Com¬
mission action under Section 36
of the Act*

this

It is also stated that

principle applies to

ation in which

sideration for

situ¬

any

investment ad¬

an

viser; attempts

to obtain

con¬

a

purported transfer
to some third person of his fidu¬
ciary ; obligations / toward
the
stockholders of the registered in¬
vestment company, irrespective of
the form of the particular trans¬
action, the manner in which the
consideration is to be received, or
the

source

a

of payment. 1 /

/

'

The opinion points out that an
investment adviser's position
is;
!1

similar to that of
cer

director

or

under the

same

a

trustee, offi¬

and

he

that

is

disability to sell

his trust.
.-"1#

•

"

;

■'

'

,

_

.f

5

MemorandumAvailable On
South. American Bonds

"rental" housing for

/ workers1 in

out by repre¬

Price Administration Will provide

'

members

1

of

Commerce Jesse

being worked

ex¬

an¬

tire program, details of which

corporations'

declared that associations should

many

the sentatives of -the Reconstruction
Finance Corp. and the- Office of / not in

well.' as " the

battle front should have an un¬

•

nounced

o wn e r s

providing, funds almost

clusively for home ownership,

$150,000,000 fund to finance the
government's / purchase of new
and used • tires and tubes from
a

new

will be. .made

on,

:as

::

of

Flans for the establishment of

automobile

ef¬

The SEC

bills to be dated May 20 and
to mature Aug. 19, which were of¬
fered on May 15, were opened on
May 18 at the Federal Reserve

thereabouts, of

ury

It is

lic

or

now expect¬
only the equivalent of

that

by

in

of certificates of

Not

Savs. & Loan Ass'ns To

out the

stitutions.

might

information

stock

members

agents.

tion to the enemy.

under appropriate as¬

\

war industries-,

in-migrant
a

bouses.-:"'-

since

workers

position

to

are

purchase

—\r

- -

for

voluntary donations by con¬
sumers or payment in cash or war
More Dominican Sugar
savings bonds .and stamps. /The
RFC will make the: funds avail¬ /Sugar .production in - the Do¬
able to one of its subsidiaries- minican Republic during the cur*
Defense
Supplies
Corp.—which rent 1941-42
crop1 season is preWill act as the purchasing agent;

A

special : memorandum
on
America has been prepared
by Welsh, Davis & Co., 135 South(
La Salle Street; Chicago, 111., in
connection with their, activity iri
trading South American dollar
bonds;
Copies of the memoran¬
South

dum

may

be

had

from

Welsh,

Davis &• Co; upon request. /

~

,

y-

,

pired some years ag:o, is probable,
according to well informed Wash¬
The
plan will- supplement the
BALTIMORE, MD.—The Balti¬ other program whereby the DSC
ington^ advices.' - Such legislation
would, ih our opinion, be a con* more Security Traders Associa¬ is- financing to. the extent' of
structive development and. under
tion * will hold its seventh annual $75,000,000, - frozen stocks of new
existing market conditions should
passenger tires and tubes held, by
find1 prompt reflection marketwise spring outing at the Green Spring manufacturers, "mass distributors,
in this issue.
'\
'
■■
Valley Hunt Club on. May 22nd., jobbers and ^dealers.
) * i c




able

analogous in¬

or

Censorship favors

withholding sales figures of firms
engaged in armament work since
such

stitutions) of any of the American

tons.
This was
more than
was
shipped in the
previous 3 months and it is be¬
lieved by many that the major
i
portion of the Hawaiian crop
will be brought in this year. An
adjustment has been made in / Secretary of the Treasury Morthe requirement of Cuban raws genthau announced
on May
18
insofar as high test molasses is that the tenders for $250,000,000,

Hold

'

the

108,000

ships

mand prices in the upper 60s and

in-fcbe lower 70s,

fide could be

bona

easily

count-of

'

We have previously directed at¬
tention to Delaware & Hudson 4's

was

established if such
currency
were
sent
into
the
United States by and for the ac¬
more

The Office of

■

Market

f

ex¬

.

>

the

Now, the
that

come

amounts

traveling

"

especially on

Behind

the
was

for

currency

..

ap¬

recessions.

W/4s

news

of

crop

of

reasonable

of

travelers

ject to review and possible revi¬
sion by the Government and it
might well
develop that such
figures are meaningless.

Commissioner Abner H. Ferguson
banks.
- *
*
'
•
tions, there should be produced
The details of this issue are as of the Federal Housing Adminis¬
this year within the borders of
follows:
tration,
and • Governor
James
this
country, a bumper beet
Total applied for, $567,190,000.
Twohy and other officials of the
sugar
crop—nearing
2,000,000
Bank System.
Total accepted, $251,726,000.
The advices from
tons. Our Southern States pro¬
Range of accepted bids (except¬ the FHLBA also states:
ducing cane sugar promise a
The Council urged that the
larger than usual production, ing several tenders totaling $98,000):
Bank
System
utilize
its
re¬
probably over 500,000 tons, /■■",
High—99.940, equivalent
rate
sources to enroll every member
It is admitted that the ocean
approximately 0.237%. '
institution in the War Savings
transportation/ problem is
a
Low—99.906,
equivalent
rate
Bond Campaign "to continue in
serious one, but it is conceiv¬
full and undiminished vigor for
approximately 0.372%. <•/
able that a heavy flow of traf¬
Average price—99.908, equiva¬
the entire war period."
All as¬
fic must continue to our insular
lent rate approximately 0.365%.
sociations were urged by the
supply areas and. that these
73% of the amount bid for at / Council to
buy Series F and G
bottoms will be available for
the low price was accepted.
War Bonds for their own invest¬
sugar on the return trip. Also,
There
was
a
maturity of a
ment up to the limit permis¬
I
have confidence, that since
similar issue of bills on May 20
sible, and to purchase additional
Cuba is only 90 miles off our
in amount of $150,012^000.
/bonds from pension and retireshores, the constructive work
7
ment funds. • - "•
/
already done by certain gov-r
Govt. Fund To Buy Tires
;*
Despite their traditional role
ernmental agencies in shuttling

1

individual

problem.
has

a

Granted

We presume commitments orig¬
inally made in this situation have
been retained.
We favor adding
to such commitments (to within
;

sugar

mo¬

purposes

transportation

/this form. "'

in 1938 at around $45,000,-

reasonable

high-test

400,000 tons will be shipped in

4

again at this time,

sugar

legitimate im¬

portations of currency from that
area, including the bringing in by

concerned and it is

"knock-down" valuation for a

property

of

with

for

virtually impos¬

pointed out that just as
in the case of the provisions ap¬
was

interference

deliv¬

several
Schram,
months.
Forty-one members of
Exchange, directly, declaring that
the Clearing Corporation will
par¬
proper
tax
appraisal - for
the
ticipate at the outset.
March quarter is

ed

shares of Postal Preferred (14)
and the 1,027,000 shares of Com¬
mon
stock (1) are selling for a
total
of
roughly $4.6 millions,
which together with RFC debt of
about $6.5 millions gives a total
of $11.1 millions.
Deducting from
this
the net
current assets of
Postal as last reported (December
31, 1941) the net balance is $8.6
millions—which represents a sort
of

of course

Hawaii shipped in the month of

of

piece

of

Rican

refreshing

duplicating facilities).
• ;
At the present time the 25-3,770

of

it

The

would be made

munitions

definitely

could be realized through elimina¬

jc»

the

and

were operated by West¬
Union, savings in the neigh¬

tion

as

ago.

was

raws

for

Puerto

absorb

$15,000,000

was

movement

form

the

in

properties

of

The

lasses

.

ern

crop

Hawaii

of Cuban

PoSfal is still mere surmise at this r
juncture, but we have no doubt /
thdt it will be one which will give
realistic recognition to the value
of Postal's $20
odd millions of
business to Western Union (the
FCC has estimated that if Postal's

borhood

dismal

questionable.
It appeared at that time that
the equivalent of i;300,000 tons

liquidation, redemption, etc.
•'
Wjiat sort of a deal might even¬
tually be worked out whereby
would

as

months

lost.

prised that such "needling" didn't
more
stimulating effect on
Postal
Preferred—this stock, it
will be recalled, is entitled to con¬
sideration at $60 per share in any

Union

not

from

have

Western

is

several

Philippine

fuller
were

glad to tell you that in
opinion the sugar supply

was

he would like to

what to do and

York, Mr. Lamborn said:

am

my

promptly," then
have to decide

merger

a v

Congress

I

separate

12:30 each

avia¬

petitioned Emil
President of the Stock

of

the

deliveries

program.

companies

to

other members. All
will
be made
before

-

tion

instead

ment

all/telegraph facilities "in 15- min¬ Flavoring Extract Manufacturers' ported from Latin America will Wright Corporation, it is said, fig¬ tion to act for
uted" and merge them. He fur¬ Association of the United States, be so administered as to prevent ures released at this time are sub¬ fecting transfers
at

Vice-

President, the author of the plan.
ber of aviation
companies have Members of the Clearing Corpo¬
already appealed to the New York ration having listed or over-theStock Exchange for permission to counter stocks or bonds to deliver
discontinue these reports, which to other members, make delivery
are
a
proviso of Jheir listing to the Central Delivery Depart¬

more or

been

movement

a

ceives. favorable action.

,.

could experience worthwhile ap¬
"Under the
new
ruling, cur¬
less in conform¬
independent of the rency upon importation into this
ance with expectations.
Exten¬ preciation
market.—G. Y. Billard, J. R. Wil- country will
be forwarded im¬
sile hearings on the prospective
liston & Co.
mediately to a Federal Reserve
merger have been held by Con¬
Bank as fiscal agent of the United
gress.
Permissive
legislation,
States.
The
Federal
Reserve
which has been advocated in prin¬

ceeding

Thursday, May 21,1942

Treasury To Control

Telegraph Companies And 0. & W. 4s

f

the

1

THE COMMERCIAL & FINANCIAL CHRONICLE

194p

It

1 Jii

Canada

lirpinary: estimated/at 485,000 long

Ry. Interesting

Wood; Gundy & Co., Inc., il
tons, raw Value, as- compared with Wall Street/New York City, have
394,000 tons in the previous sea¬ prepared .a booklet describing
eight issues of Dominion of Can¬
son, art

.

increase 6f 91,000 tons, or
23.1%, according

approximately-

to Lamborn' &
•.

Co., New' York.
J -,ir

it a.

ada

the

-

guaranteed
Canadian

bonds issued. by/

National

Company..
.

;

r!„•:, f

b, o

t p.

v

Railway
^

Volume 155

THE COMMERCIAL- & FINANCIAL CHRONICLE

Number 4074

-

To Prohibit Outside Jobs
For Federal

/ v

Non-Taxable By Treasury

Employes

House

Appropriations Commit¬
teemen were reported in Wash¬
ington Associated Press advices
on May 6 as indicating that Mrs.

FCC Requires Listing;

Ruled

Talent Donations

The

Department

Treasury

May

public
actors,

made
permits

14

which

others

and

lecturers

All

on

ruling
athletes,

a

donate

to

Of

Raise Pay of Armed Forces

:

Diathermy Apparatus

paratus

including Vdealer

register each such device
with the Federal Communications

In

latest

their

gra¬

Commission in Washington,
D.C.,

no

tuitously"
to
charitable
causes
without reporting
the value of

by June 8, 1942, that agency an¬
nounced on May 18.
Authority

is

such services for income tax pur¬

for

and it was further stated
that they announced they would
groups,

seek to

Press

quote: p

They

accounts

/

said Mrs.

Rosenberg had told a
v t
subcommittee considering the
// Board's 1943 appropriation that
;i she was receiving $20,000 from
'

Macy

Bamberger

-

v

in

York

New

v
'

The

members

Arthur

J.

the

distinct

she

could

of

her

•

athlete

or

of the entertainer
to

issued

in

New

was

reported

"I hold

only one

Mrs.

saying:
Federal job,"

rector

.

of othe

Social

■/; job.

am

by

actor

or

of

the

would

her

Rockefeller

Mr.

from

1

work

public

as

representative
Teller. ^
"I

have

feller's

■

athlete, turned the

to him;,>

'

*^" >'

NY State

pay¬

to

over

Rocke-

*■;/

Accountants

New

York

Certified

since

long

before

he

Inter-

of

relations

counselor

has

e

few

a

or

Seizure and heavy penal¬
provided for failure to

and

ments.

for

false

state¬

}

:

held
Marvin,

countants,

May

on
a

for

President

the

coming

11,

Lieut.-Col. Andrew Stewart.

Mr.

Marvin has been First Vice-Presi¬
of

dent

the

Society

Home

Financing Loans For
War Purposes Reported

Bank

System

asso¬

Loan

loaned

approxi¬
mately $155,600,000 for home-fi¬
nancing purposes in war industry
areas in the first quarter of 1942,
on

of

the

May 16.

System

reported

Their total loan vol¬

ume

construction

new
areas

for

obviously

the

9.6%

fact

below

in

non-defense

was

that
the

the

responsible

figure

volume

was

for. the

$187,197,000 loaned in the first
quarter of 1940.
"March loans by member asso¬

during the
past year, and since the departure ciations of the System amounted
of Mr. Stewart for active Army to
nearly $75,000,000," said the
duty in Washington, has acted as report. "This was an increase of
President.

He

has

served

as

almost

13%
over
February but
considerably below the normal
February-to-March increase and

whatever to do with
his official position in the Fed¬

Chairman

eral Government."

ing the Committee on Public Re¬ 16.7% below
March, 1941." It is
lations, which he organized in also stated that the Bank System
1939, and which he has headed officials reported that member as¬

nothing

Ins. Stock

Digest

t-

Huff, Geyer & Hecht, Inc., 67
Wall Street, New York City, an¬
nounce
that
the
publishers
of
Best's Digest of Insurance Stocks,
which is widely used by security
"dealers interested in the distribu¬
tion of insurance

will

that the

them

vised

stocks, have ad¬
1942

edition

be available for distribution

early next month.

As in former
Huff, Geyer & Hecht will
<
be glad to supply copies to dealer
friends at $4.09 each (publisher's
regular I price $5.09 per copy),
which is the special price made
.years,

to

them for

a

"bulk" order.

or

Dealers desiring to purchase one
more

copies

of

Best's

Digest
of Insurance Stocks through Huff,
Geyer & Hecht, and thereby ef¬
fect
a
saving of $1 per copy,
should send them
number of

a

check for the

copies desired.

;

v

?,

since that time.
an

He has also been

.

tee

on

did

85%

of the home-

sion.

financing reported by all savings
and loan associations
throughout
Commis¬ the country during the months of
member
of
the
January, February and March.

Cooperation with the Se¬

curities

and

He

is

Exchange
a

American Institute of Accountants
and

of

the

National

announcement

indicates

that

at the end of
April, outstanding
Levy, advances of the 12 regional Fed¬
Vice-President, was eral Home Loan Banks to their

Second

now

The

Association

of Cost Accountants.

elected First Vice-President of the

member
institutions - aggregated
and Henry A. Home, a $185,297,000, a rise of
$43,470,000
partner of the firm of Webster, from a year ago. Since their or¬
Home & Blanchard, was elected
ganization,
the
regional
banks

Society,

Second Vice-President.

H.

Charles

Towns,

counting

partner of the ac¬
firm of Loomis, Sufa

former

have

advanced

000,000 for

use

a

total

of

$900,-

by their member

institutions.

di¬

rector of the

Society, was elected
Secretary, to succeed S. Carlton
Kingston.
Harry E. Van Bens-

choten,
own

of the firm

name,

was

his

reelected Treas¬

J;® >'

urer.

Mr.

bearing

Marvin

to the election,

emphasized that the

first task of the Society

West Point graduate.

accounting profession.

every

is to make

possible contribution to the

winning of the

war,

and outlined

the war-time responsibility of the
>

-

-

program

on

schedule.

an

the

duction."

*

J

Saying that the task at first ap¬
peared fantastic, .*>. the
statement
pointed out that "now records are
being made that were once be¬
lieved impossible."-.
v
*

Simultaneously, the U. S. Mari¬
time

Commission announced that

the

greatest

mass/launching/of

merchant ships since the
Victory
Fleet program was

inaugurated
(May 22) National Maritime Day.
Thirty cargo vessels of all types
will go down the ways in 19
ship¬
on all coasts and the Great
Lakes ushering in a

yards

two-ships-a-

day production rate for American
shipyards.
The

White

House,

statement

said, in part:
The latest reports on the
prog¬
ress of the
victory fleet
program

are

reassuring and. should clarify
of

some

the

confusion

to

as

a

shortage of ships. They show that
there is no lag
today in cargo
shipbuilding.
The

United

short
the

of

merchant

has

has

been

To Build More Submarines
President

Roosevelt

signed

on

To

$900,000,000.

reported

this

double
of

that

the

present

would

authorization

the

this

reports

Commission

shipyards
vessels

12

to

The

increased

class

in

the

than

ahead

•

compared with the Senate

.

Corresponding

are

seamen
up
to master
sergeants and petty officers^,;'as
provided in the Senate-approyed

bill

basic

over-all average,
the program

lie

Health

Service

and

Nursing

Service..
Senate

passage of the measure
noted in these columns

was

9,

4pnl

1452.

page

y.,h..

US-Panama Defense Pact
The State Department in Wash¬
ington announced on May 18, that
an

agreement between the U,rxited

States and the Republic of

Panama,

of defense areas

use

the

Republic by armed forces
of the United States, was signed
at Panama on May 18.
The De¬
partment said that the

American

troops have already occupied,lthe
areas by permission of the Pana¬
manian Government.
\

.before

The pact

was signed by Edwin
Wilson; United States Ambas¬
to Panama, and Panama's
Foreign
Minister,
Octavio
Fabrega.
It will be effective when

C.

sador

but

The

approved by the National Assem¬
bly of Panama.

schedule.

on

raise"

lieutenants

personnel
of
the
Army,
Navy, Marine Corps, Coast Guard,
Coast and Geodetic Survey,
Rub-

i cur¬

rapidly.
is

second

ensigns from $1,500 to $i,800
annualy and adjust allowances for

however, shows

that

of

pay

House.jjThe

would

other

in

behind

are

also

and

time

up

voted by the

were

legislature

merchant

few

a

all

,

first-class

Maritime

catching

•

increases

along the line, from corporals and

originally
shipyards are well
schedule; others are on

of

bill,'the

will go to conference for
adjustment of differences.

measure

Some

schedule;

The Senate

$42 and in the next higher grade

history of the world. Lib¬
are being built in less

allotted.

$54.

from $36 to $48.
Due to this ;^nd
other amendments differences as

American

one-half the

to

seamen

covering the

the

ever

of Ajrmy
.apprentice

pay

Navy

bill, approved March 30, called for
increasing Army
privates'
fthd
Navy seamen's pay from $30 to

ac¬

that

than

decisidh of May

the

and

House, by a
28, had rati¬

to $50 a month arid,
that' of
class
privates and
second

first

con¬

building

are

faster

a

en¬

seamen

con¬

situation,

by
show

increase

privates

erty ships

According
to
the
Associated
first .the task: appeared fan-,
Press, the American forces will
tastic, but now records are being
develop the defense areas as gun
At

made That-were

once,

believed

emplacements,x airplane

impossible.
The

speed

gaining
yards

of

construction

momentum.

In

service in less than 90 days.
Orig¬
inal schedules called for
delivery
on

an

average of 180

have been
Some

days.

shortened to

ships

now

stations,
auxiliary

is

some

Liberty

ships
are
being
completed and delivered Into war

In

miles

southwest

of

its

announcement, the State
Department explained:

They

"Immediately

following the
Japanese on Pearl
Harbor, Panama declared war
on
Japan, Germany and Italy,

105 days.

attack by the

and

-

since

that

numerous

pleted in 83 days.
:

eighty

the Panama Canal.

under construc¬

be completed under 75
Already one has been com¬

detector

bombing
ranges
and
air fields—the largest

of which is the Rio Hato air
base,
some

will

tion

days.

and

which

On Maritime Day two new rec¬
will be made in Portland,

ords

have

time

has

taken

effective

steps

demonstrated

that

republic's willingness to assume
promptly
and
wholeheartedly

Ore.
The Jonathan Edwards, a
Liberty ship, will be put in serv¬
ice 60 days after its keel was laid,
and the Thomas Bailey Aldrich

its

responsibility

the

defense

Canal." ri v /• •

partner in

as a

of

the

\'

Panama

>■/■;Z;■ /

will be launched in 36 days.
From

construction ' stand¬

a

the

shipbuilding industry
is in far
better position today
than it was during the last war.
Then it took shipbuilders from
point,

months

ten

merchant

to

a

year

vessels.
Atlantic

the

on

to produce

Eight

yards

averaged

350

ship, eight on the Pa¬
cific 309 days, and two on the
Gulf 512 days.
That average was
established throughout the entire
days

per

program,
including
production.

the

peak

of

Inactive

NEW

to

The

Financial

the

San

ner

House .passage was reported in
these columns April 23, page 1617,

bers

has
&

duration of the

war.

Ex¬

B. J. Frank-

enheimer,

the firm's
member, has received
sion

as

first

a

a

exchange
commis¬

lieutenant

in

the

Army Air Corps and has left to
take up his duties.
The firm's ac¬
have

counts

transferred

been

&

Street,

to

133 Mont¬
members of»Thc

York

Co.,

San

Francisco

Exchanges.

Chronicle)

and

ORLEANS, LA.—Reuben

Merrill

become

associated

with Beer

Co., 817 Gravier Street,
of

Stock

firm will become inactive for the

Stock

Bush, for many years
Lynch, Pierce, Fen& Beane, and its predecessors,

country's underseas craft.
The measure passed the House on
April 16 and the Senate on May 7.

Francisco

change, have announced that their

New

Gresham

with

Duration

FRANCISCO, CALIF. —
John D.- Stern & Co., members of

gomery

'Bridal

For

SAN

Strassburger

Bush With Beer & Co.

It is
about

offset

rent

of all

pay

after the

came

fied its tentative

tivity of Axis submarines.

May 13 the bill authorizing an in¬
crease
of
200,000
tons
in
the
Navy's strength, to be used mostly
for building submarines.
The es¬
timated cost is

to

a rec¬

approved

since

aggravated

and

1

record vote of 332 to

tinuously since that time, par¬
ticularly since Dec. 7, due to the
far-flung
battle
fronts
of
the
War

to

raising the base

action

been

tonnage

began in 1939.

war

dition

States

May 13 by

on

359

men and non-commissioned
officers and granting increased al¬
lowances for commissioned offi¬
cers in the armed services.
This

is

average

However,

of

listed

that

that there

added, there will be a
shortage "until sinkings through¬
out the world are
brought under
better control and the
shipbuild¬
ing program gets into full pro¬

Saul

Henry G. Lambert, of A. C.
Allyn & Co., 40 Wall Street, New
York City, has received a commis¬
sion as a major in the U. S. Army
Engineers.
Major Lambert is a




sociations

active member of the Commit¬

In his response

In Armed Forces

various

committees of the Society, includ¬

fern & Fernald and
or

of

member

16

.

was first quarter of
1941, officials said.
Society Nevertheless, they
added, it was
succeed considerably above the total of

to

the

on

World

Co.,

the

year,

J.

of the

partner
of

Ac¬

announced

reports show

are

officials

State

Public

firm of F. W. Lafrentz &

Affairs, some .three
years before he assumed
that
office," Mrs. Rosenberg said,
"The work I do for him as pub¬
lic

the

of

elected

repre¬

American

1

of

Society
Arthur

Coordinator

became

York

relations
Rocke-

relations

t a b 1

p o r

throughout the country was
At the annual meeting in New
$206,667,000.
The curtailment of

Mr.

been

some

use.

supplied by the FCC

register

a

Elect Marvin, President

Mr.

of

public

sentative

for

^was

ties

engaged

on

Mrs. Rosenberg explained that
the $6,000 a year she receives

are

private

its field offices. No fee is neces¬

would

by the entertainer and taxable
'■>

for

House

May

statement

the

organization.. This
be treated by the Treas¬
Member savings and loan
an assignment of income ciations of the Federal Home

ury as

*

heat-within

issued

lag in cargo shipbuilding and

that

...

forms

charitable

-

of

entertainer,
with
the

agreement

ment for his services

!..

Affairs, but I receive
compensation for this work."

no

r;

•

services

and

who

in

Separate registration of each
piece of apparatus will be on

motion

American

v

-

the

.

sary.

cases

sponsor or a

producer

generation

••

_

operate

models; and of the total,
are not factory vmade.*

and

other Federal

no

the Advisory
Council of the Office of Inter-

•,

I

Security

radio

a

picture

Rosenberg

Board and for

;

be

as

said, referring
to press reports dealing with her
v status.
"I receive salary for only
one Federal job. I have never re¬
ceived salary for any more than
one Federal job.
I've been reOceiving a salary as regional di-

performer

Typical of these

the New York "Times" Mrs. Ros¬

enberg

the

subject to Federal tax.-.

.

May 6, and published in

on

of

are

that patients may

manner

There

organization, the amount
paid must be included in the

return

/

They

and

energy

individuals

table
so

by

sional persons while an
appre¬
ciable proportion is owned by

other than

person

used

United -.States,
mostly in the hands of profes¬

a chari¬
that per¬
makes payment for the en¬

a

devices

ailments.

throughout

tertainer's services to the chari¬

York

•3..

by

table organization and

Nevertheless,
the
members
said
privately " that
Congress
probably should prohibit such
statement

dated

their bodies. It is estimated that
there are 100,000 such devices

rendered

are

son

a

Defense

be treated for internal disorders

services

the

when

the condition had been fulfilled.

.

such

whose

requested by the

were

However,

Mr. Altmeyer was reported to
have told the subcommittee that

In

the

Board

are

various

quency

organization actually
the event, and the
income from the event, what¬
ever it might be, would belong
solely to the organization.

"outside

"dual fidelities" in the future.

of

designed to generate radio fre¬

sponsoring

ernment work.

-

of

charitable

connections" providing they did
not
interfere
with
her
gov¬

>;

actor

an

services

understanding that
retain

4

physicians, osteopaths and physiotherapists for the treatment

a

income, Internal Revenue
officials said, would be the case

Altmeyer,/ Board
had said that Mrs.
was employed with

Chairman,
Rosenberg

pearance,

the

gross

that

said

which

in

her Talents to

or

charity need not include the pro¬
ceeds from such performance in

Rockefeller.

son

example

donor of his

City and Newark, N. J.; $2,500
from the I. Miller Company;
New York, and $6,000 from Nel-

.

,

interests

No.

Communications

contained

of -recent

flood

An

department
•

store

Order

is

.

-i* ■%■*
(the
Committeemen)

:

in

the requirement

inquiries, April 16, 1942. The order adopted
resulting from talent donations by the FCC does not apply to per¬
sons
owning sun lamps, infra-red
to war-time charities by "bigname" performers,4 caused the lamps or ultra violet ray devices,
long sold by drug and department
Treasury to issue the ruling,
In its advices the FCC
which affects numerous Organi¬ stores.
adds:
zations
sponsoring
entertain¬
Diathermy apparatus, resem¬
ments
for
the
purpose
-of
bling floor-model radios in ap¬
augmenting their incomes.
A

we

-

The announcement by the

poses.

trative

Associated

"directly and

Treasury Department said:

prohibit Federal adminis¬

employes
from
holding
"outside
positions."
From
the

services

•

statement

a

the White

Social

Rosenberg, $7,500-a-year
Security Board director in

vote

bill

stocks,

must

The House

-

ord

of diathermy ap¬

possesors

Anna M.

New York City, had a $28,500 in¬
come as adviser for three private

1941

the

New

Orleans Stock

York

mem¬

and

New

fSnedal

NEW
J.

to

The

Ostendorff,

staff

of

Fenner

Financial

Lynch

Chronicle)

ORLEANS, LA.—Thomas

Jr. has joined the

Merrill
&

Lynch, Pierce,
818
Gravier

Beane,

Street.

Exchanges.

^ 7PV OU*

Now With Merrill,

V.f'

'

*

WV'V

<

Thursday, May 21, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1942

Calendar of New Security Flotations;
INDIANA, INC.

SERVICE CO. OF

of Indiana, Inc., filed

Co.

Public Service

with

amendment

an

SEC

7

May

on

its

to

registration
(No.
2-4893)
filed
Nov. 11, 1941, to the effect that it proposes
to issue $4,000,000 first mortgage series D
3%% bonds, due 1972, at the present time.
original

Originally

permission

asked

company

to

$42,000,000 first mortgage series D
33/s% bonds, but received no bids for the

•issue

Dec.

issue

1941

16,

Address—110

apolis, Ind.

were

v

,

awarded

of

101.68

be

and

construction

Co., Northern Indiana

Power

Corp.

a

on

finance

to

at

price

a

and

Brothers^,

serial

supplied

to

be

used,

be

to

the

Ohio

of

Fuel

United

Fuel

Gas

Co.,

Cinn., Newport & Covington Ry Co. tc
that Company to redeem its out¬

.

extent

and for working capital
Registration Statement No. 2-4999.

interest

A-2

A-2.

(4-10-41)

for

of

account

shares

by

certain

selling

certain

amended: 23,100
105,756 shares by

as

stockholders

Public

company,

to

'

'

price

offering

Proceeds

the

117,300
be sold

a,-.'."".' 'va;v'.v:i;

■

.

offering

Proposed

defer

s

date

effective

1942, to

5,

May

De¬

for

public

remaining

and are to

outstanding

stocKholders

"-"I-';.A-?

\a ;

filed

the

to

the company;

are

public

to •

$3,303,000

Amendment

company

Is $9.50 per sharn
wiii be used for

(

general corporate purposes, including pur¬
chase of new equipment and for working
Gold
Mines,
Ltd.,
refiled a capital ■
;■>
registration statement with the SEC for,
Registration Statement No. 2-4890. Form
1,030,000 shares common stock, $1 par',, '! a A2. (11-19-41 Cleveland) .
•
Address—Montreal,. Quebec, Canada a '; i
Amendment filed May 18, 1942, to defer,
Business—Company is
engaged in the effective date

v

V-'; '>

MINES,:LTD,.!•.

GOLD

VDESPINA

Form

Despina

*

(5-13-42)

snares

1st & Ref. 6s. 1947
Registration Statement No. 2-4736. Form

to the payment of the unpaid
of outstanding bank loans of the

company,

Dec. 6, 1941

on

account of

enable

standing

by

Corp.,

'.

offered

be

to

are

e

to

a

Hlgbie

>

Offering1—23,100 shares are unissued and

contributlor

capital

$3,402,090

make

Mich.

ft

underwriters.
Smith, Hague ft

are

M.

Carlton

and

Rockefeller

principal

are

underwriters

troit,

thereof; and

from the holders

to

inc.,

Co.

Co.,

Gas

t

EST,

a.m.

Co.,
Other

guaranteed

$3,750,000

and
of

notes

subsidiary,

necessary,

to

4%

1942-46

subsidiary,

a

Deb.

$3,750,000
due

Underwriters—Schroder,

$50,000,000 Deb 6b,;

5s, due April 1ft,
5s, 1961; to pur¬
guaranteed
serial

Deb.

$50,000,000

chase
notes

.

will

Proceeds

new

improvements

other

public,

$4,750,700

.

1952;

'

amendment

vj

-

used

May 20 at 102.75 and

■Offered

the

balance

Business—Incorporated
in
Indiana on fixed capital
1941, as result of consolidation of
"! Effective—-10
Service Co. of Indiana, Central In¬

Public

Power

;

.

will

Proceeds

Sept. 6,
diana

Securities

Mellon

and

Corp.

r

\

Glore, Forgan & Co., both of New York,
N. Y., are named principal underwriters;
names of
the others will be furnished by
amendment Z'S
■'',v
Offering—The debentures will be sold to

competitive bidding May 18
to
The First Boston

sold under

and

'

:

Underwriting—Lehman

bonds

Offering—The

and

Underwriting
were

Indian¬

<

rette

water

of

sale

and

of

sale

baccos, principally the Philip Morris ciga¬

transmission, sup¬
ply distribution and sale of electric energy
and gas, and in
the supply, distribution
purchase,

manufacture,

bid

Street,

Illinois

N.

and

and is en¬
generation,

of Indiana

in State

operating

gaged principally in production,

1952;

manufacture
smoking to¬

in the
cigarettes and

redeem

Proceeds—To

New York City

Ave.,

Business—Engaged

Power

PUBLIC

Fifth

Address—119

Terre Haute Electric Co. and Dresser
Corp.
Company is a public utility

Co.,

OFFERINGS

.

^

TUESDAY, JUNE 2

Following is
ments
are

a

list of issues whose registration stateThese issues

filed less than twenty days ago.

were

grouped according to the dates

tion statements will in normal

which the registra¬

on

become effective, that

course

days after filing except in the case of the secur¬

is twenty

authorities which normally

ities of certain foreign public

become effective in seven days.

unless otherwise specified, are as of
as per rule 930(b),

These dates,

4:30

P,M, Eastern Standard Time

Offerings willrarely
ing.

be!made before the day follow¬

MACY

H.

R.

R.

.

H.

sinking fund
debentures, due May 1, 1952 /./•' r
Address—Broadway and 34th St., New
York City
•>''!
Business—Company and its three prin-|

Securities

cipal subsidiaries are engaged in the oper¬
ation of a department store business gen-:

and

MORRIS

Morris

k Philip

.

CO.,

&

Reinholdt

Co., Ltd.,

&

Inc., filed a
SEC for

registration statement with the
49,666
shares
of
cumulative

preferred

(dividend rate to be
and 893,988
rights, latter to be issued in connection
with', issue of subscription warrants evi¬
dencing rights to subscribe for the 49,666
shares of preferred stock
stock, $100 par value

furnished

amendment),

by

York, N.

Address—New

Y.

manufacture and
sale of cigarrettes and smoking tobaccos,
principally "Philip Morris," ('Paul Jones,"
"Marlboro" and "English Ovals" cigarettes
:;
Offering—The 49,666 shares of preferred
stock will be offered for subscription to
common
stockholders of company, on the
basis of one share of preferred stock for
each 18 shares of common stock held. The
subscription price per share, the stock of
record date, and the expiration date of
subscription offer, will be furnished by
in

Business—Engaged

amendment

"

Underwriting—Such of the 49,666 shares
as
are
not issued under the subscription
offer, will be sold to the public by under¬
writers,
at
a
price to be
supplied by
amendment.
Principal underwriters
are
-Lehman Brothers and Glore, Forgan ft Co.,

N. Y.

The names of

the other underwriters will

be furnished by

fboth of New ,York,
amendment

will

Proceeds

-

bank

standing
Public

used

be

3%

New

the

above,
of

authorize

tures,

the

sale

of

20-year

intend to
3% deben¬

May 1, 1962, in an aggregate
to exceed the difference be¬

due

amount

out¬

statement
company
stated

directors

its aboard

that

reduce

Debentures also

registration

the

Proposed—In
summarized

to

loans
of

Sale

not

and an amount equal
value of the shares
of new preferred stock which presently are
proposed to be sold by the company. The
company
states that this new issue of
debentures is proposed to be sold shortly
after the expiration of the rights to pur¬
chase the new preferred stock,
following
the filing of a registration statement with
the SEC covering such debentures
Net
proceeds
to
the
company
from
sale of such debentures would be used to
the

to

aggregate

par

the unpaid balance of the company's
bank
loans,
and the balance would be
added to working capital
;
*
Registration Statement No. 2-4394. Form
pay

(5-5-42)

A-2.

Philip Morris ft Co., Ltd., Inc., filed
amendment with SEC on May 11, 1942,

J,

an

shares of cumu¬
lative
preferred stock, $100 par,
would
bear a dividend rate of 4»/2%. The shares
of preferred stock will first be offered to
common
stockholders
for
subscription,
through warrants, and the unsubscribed
portion of the preferred stock will then
be offered to the public. The public offer¬
ing price per share will be furnished by
later amendment. Today's amendment also
lists the underwriters who will participate
in the public offering of the unsubscribed
portion of the preferred stock, with percent
disclosing that its 49,666

.

unsubscribed preferred stock to be pur¬

of

chased,

as

follows:

.

'<.{

Stringfellow, Richmond
& Co., St. Louis
—
Bros. & Boyce, Baltimore,—

Scott

&

I.

Simon

M.

Stein

Registration
time

1.0

4:30

ESW

M.,

P.

.5
1.0

(5-5-42)

Steel

Star

statement

with

registration
$500,000
5%

filed

Co.

for

SEC

warrents to
purchase common stock; and 75,000 shares
no
par common stock
due

debentures,

1,000

1948;

Address—Dallas,

Zt

Texas

engaged in the
and steel ftv.'vUnderwriting — No
underwriters
are
named in registration statement
Offering—The debentures will be offered
to the public at 100; each $500 principal

Business—Company is
manufacture of pig iron

amount
warrant
25

the

of

of

will

debentures

the

entitling

shares

holder

common

stock

carry

to
of

one

company,

the public at $10 per share
Proceeds will be used for working

capital

r/■;

Registration Statement No. 2-4997. Form
s-2. (5-8-42)
■;
■ v.■;
;

MAY

SATURDAY,

BUILDING

AVENUE

with

filed

Corp.,

SEC

tificates

covering

stock,

par

30

for Voting Trust Cer¬

shares

1,848

common

value, of the corporation
S. LaSalle St.,

Trustees—135

Corporation—38
Dearborn
Chicago, 111.
;
Business—The
corporation
owns

St.,
and

corporation

Hayden, Stone & Co., New York
Hemphill, Noyes ft Co., New York—
Hirsch, Lilienthal & Co., New York
Hornblower ft Weeks, New York—
Jackson ft

Curtis, Boston—,

3.1

Kuhn, Loeb ft Co., New York—

1,7
4.9

Ladenburg. Thalmann & Co., N. Y._
New York

Lazard Freres & Co.,
W.

L.

Lyons & Co., Louisville—

Mackubin, Legg & Co., Baltimore—
Laurence M. Marks ft Co., N. Y.__
Mason-Hagen,
Merrill

Beane,

Lynch,
New

Inc., Richmond—
Pierce, Fenner &
York
—




.5
1.2

held by

dated Dec. 22,

an

agent for the
trust agree¬

1932

Offering—Trustees
propose
to
invite
of outstanding stock of the cor¬

holders

poration to deposit their certificates rep¬
resenting such stock, in receipt of voting
trust
certificates
therefor.
The present

agreement expires Dec. 22, 1942, and
present intention to extend such
agreement to Dec. 22, 1952
Registration Statement No. 2-4998. Form
F-l (5-11-42)
trust
is

the

4.4
3.1

——

are

voting trustees under a voting

it

,

effective

PHILIP MORRIS

&

CO., LTD., INC.

1.0

3.1

May 1, 1962

Philip

$15,693,370

1954;

redeem

to

shares

142.667

the

share,

stock, no
be
supplied

preferred

$7

tails

to

•

Amendment

*

-

*<

-

Los

by

statement.
filed

Morris &

any,

amendment

to

a.

.

involved, a-a*a

S -2.' (4-23 -42)

of * common

Vi

Offering—The 5,000
stock will ; be sold to
;
for corporate pur¬

will be used

^

version of

'

--

,

California

Union

;

to

making

be an

underwriter

Offering—The
of

he

offered

;

the

.

stock registered
public at a price

$22 per share f:
Prfx>eeds will be used

a

v

for

additions

to

capital and surplus
Registration Statement No. 2-4992. Form
A-l
(4-30-42 San Francisco!'
Amendment filed May 18 to defer effec¬
tive date
' \v
!' "'; r , v'"1
,

COLUMBIA
Columbia
tered

1942

GAS

ft

Gas

&

ELECTRIC CORP.
Electric Corp. regis¬

serial debentures,
due
to 1951, and $92,000,000 sinking fund
$28,000,000

due 1961

Address—61

,

Broadway,

Business—Public

utility

N.

Y.

holding

pany

Offering—Both Issues will be publicly
at prices to filed by amendment

offered

Jackson
Lee

Merrill

preferred stock, plus $1.50 (equal
quarterly - dividend
payable

:.

1942, on one share outstanding'
6%
preferred
stock),
plus an unstated
amount (difference between the public of1,

price of

stock, and

share 4 l/z %■ preferred
the redemption price of

one

$105,

&

and

the 6%

-preferred); for each share of out¬
standing ,6%
preferred stock. ^Exchange
offer expires Jan. 22. 1942.
Any shares ol
4 Va% .preferred not issued under the ex-1
change offer,' plus the 6.328 shares noli
reserved for such exchange offer, will be
offered to
the public;
at a price to be
supplied by amendment. .Harriman Ripley
& Co., Inc., Philadelphia, is named prln-i
cipal underwriter; other underwriters will,
be supplied by amendment. > • •• -;
}{> i

Curtis,

Higginson

Estabrook

current

fering

services

for

Proceeds

will

used

be

to

redeem,

&

Co.,

Lynch,
New

Beane,

&

Putnam

tion

1,

equipment of plant

and

additions.

.Amendment

'

to

defer

;

effective date

filed

April 14, 1942
HASTINGS

$2

SEC

par

Manufacturing
shares

Weeks

•+-

Boston

Yarnall

Minsch,

Stubbs,

&

Co..

1,500

; * ■

ft

Co.,

1,000

-

Inc.,

New

1,000

—

V 500

Brush, Slocumb & Co., San Fran.lHerbert

W.

1

1,500

Philadelphia

Monell

York

;

1,600

r

Inc.,

—

&

••••

7,400

& Co., New York

Parsons

Schaefer

&

Co.,

Bait."

500

Stein

Bros. &, Boyce,,Baltimore..- "-500
Alstyne, Noel & Co., New York
; 500
Wyeth & Co., Los Angeles—*——— •"500

Van

Offering—-The preferred stock - will be
offered-to the public, at a price to be sup¬
plied

by amendment to registration state¬
The underwriting commission is $2

share

per

».'

.

will

Proceeds

*

■

■

be

used

,v
>

for

-

additional

working capital
(3-30-42)

Form

....

Amendment

effective

CO.

Business—Manufactures

expanders

Interim
tion

registered

Co.

stock,

filed

May 2,

1942,

date

to defer

,

.

■

sells
•

Finance

statement

shares

;

and

FINANCE

,

,

piston

.

class

shares

common

value

and

•

Hartford,' Conn.— J; 2,000

Co.,

Whiting,

INTERIM

Address—Hastings, Mich.

rings

7,50,0
&

Fenner

.

MANUFACTURING

140,400

14,000

T

Boston

Registraiion Statement No. 2-4974.

:

,

follows::"

as

Boston---—'" 10,000

Pierce,
York

Graham,

A2

Registration Statement No. 2-4926. Forir
(12-30-41)

uses

Hale, Waters & Co.. Inc., Boston—r

ment.

on

1942, at $105 per share, all out¬
standing 6% preferred stock; balance foi
expenditures in connection .with construe-,

S2

war

Boston

Corp.,'

,

March

other

Underwriters of the preferred stock, and
number
of
shares
which
each
has

agreed to underwrite, are

preferred

preferred stock on basis of one share

4V2%

military
r

33,054

Hastings

com¬

6fo

or

the

privilege of exchanging such
of the 39,382 shares of

the

for

V/x%

with

C.

>

women

products directly

and

ular

conditional offer to holders of Its

a

of

stock

to

common

to

stock

for

chemical

related to the foregoing.
Reg¬
special products, t£> a large and
increasing extent, are being supplied to the

indirectly

watches for

wrist

shares of outsanding

32,054

a

incandescent

receiving, tubes,; fluorescent lamps
and other electronic products

certain

and

and Offering—Company It

Underwriting

statement with the SEC for
29,659 shares common stock, $10 par value
Address—San Francisco, Calif.
: V,'
y*
Business—Engaged in the underwriting
of
fire, automobile and other forms of
insurance
y>
;-v
>'?..;/•
Underwriting—Paul H^Watson is named
principal underwriter; Don B, Wentworth
mav

wrist watches

and

men

March

CO.
filed

and

Jewel) * pocket

23

be

■

Co.

preferred

—

defer

Mass.

manufacture "and
lamp bulbs,

in

and fixtures,

of

to

preferred

stock
St., Salem,

Boston

electric

radio

shares 4MiV
stock, $100 par
•rr Address—Lancaster, Pa.
Business
Company
manufactures and
sells various models of high grade (17 to

registration

will

of

sale

registration

filed

Co.

1

registra¬

filed

.convertible

Business—Engaged

statement with SEC for 39,382

registration

INSURANCE

Insurance

Watch

.^

the preferred

t; Address—60

HAMILTON WATCH
Hamilton

Corp.

"H!

;;
,

with SEC for 50,000 shares

statement

4VzVo a.cumulative

14 to defer effec-

filed May

y

^ a '.. :l

i

stock, $40 par; and 105,000 shares common
stock, no par," the latter reserved for con¬

(2-12-42)

Amendment

■<

Sylvania

Hygrade
tion

Registration Statement No. 2-4964. Form

tive date

; a

■

HYGRADB SYLVANIA CORP.

'':!;

C!'''\v;a;V:>[vv;

company

S-3

57,412

are

May 7, 1942
a-:. -■a- /.

UNION

CALIFORNIA

Angeles,

be

including further developing and
exploring of properties now owned by the

-a-;:; a'aa-v:

date

;

Douglass

maining

poses,

SEC withheld much of material

filed

munitions

■-

public at $5 per share; no underwrite

shares

Proceeds

company,

(3-30-42)

1 y-

the

in

engaged

for

* :

-

:

and

Underwriting

presumably in con¬
formity with military censorship policy
v,
Registration Statement No. 2-4975. Form
by

rail¬

Rex

ing

-

Chicago,

St.,

Salle

La

of
Mineral Township, Sevier

antimony ore in

f

^

for

etc.,

of

sale

the account of the company; the re¬
16,560 shares registered are to
purchased by the underwriters, under
purchase option, from certain stockholders,
and will be publicly offered
a
:t Proceeds will be used to purchase or re¬
deem all the outstanding 36,000 shares of
6 %■
cumulative preferred
stock, $5 par
value, and for other corporate purposes
'A
Registration Statement No. 2-4990. Form

stock, no par value
No.

HI.
A1'"'Ji:^
>
Business—Engaged
in
the .'- mining

commonstock, $1 par.
Further
details as to the financing^ including de-;
tails of
distribution, application of pro¬

underwriters, if

primarily

Underwriters—Nelson

cumulative

SEC

and

•; &
Co.,
CaL, and Barrett Herrick &
Co., Inc.,1 New York, each have agreed to
underwrite 46,500 shares of the common
stock registered, or a total of 93,000 shares
Offering—The .109,560 shares registered
will
be offered to
the public at $4 per
share; the underwriting commission is 80
cents per
share.
93,000 shares are Un¬
issued and are to be offered to the public

•(

Mining Co., Inc., filed a regis¬
with the SEC for 5,000

common

Address—30

Corp. filed a registra¬
the

♦

the

•

!tv .v

with

cents par

an

business

statement

tration
shares

AIRCRAFT CORP.

statement

tion

manufacture

tions.

<, t ■

-

,

■

Aircraft

Eellanca

of 25

stock,

common

-

on

been

GILLIIAM MINING CO., INC,
Gillham

of

the manufacture and
experimental basis, of muni¬
Since that date,, the. company has

sale,

|

'

-

•

Form

.

,,

the

of

Form
/>
filed May 18, 1942,- to defer
t-

•

$1,-

aggregating

road signal lights and

^

date

effective

loans,

>

Further de¬
post-effective,

-

<9-17-411

subject

company,

'
'
y
Address—Croydon, Pa.
'
.
.
Business—During two years ended Sept.
30, 1940, operations of company consisted

Registration Statement No. 2-4845.
A2.

the

by

'

at $110 pei,
of company'»

by

.

or
or

bank

(3-30-42)

shares

follows-

as

par. v

amendment

the stock

date

BELLANCA

debentures

MONDAY, JUNE 1
Co., Ltd., Inc., filed a
registration statement with the SEC for
$6,000,000
20-year
3r!o
debentures, due

1.2

',

applied

be

on
on

retained

Registration Statement No. 2-4973.

value

registration state-:

'

will

to

sold

be

HUNTER MANUFACTURING CO.
A Hunter Manufacturing Co. filed registra¬
tion statement with the SEC for 109,560

$53,170,000 to redeem at 102 Vi, the $52,-;
000,000 of company's First Mortgage 5s of

CORP.

1.0
4.4
.5
1.7
~4.4
1.7
4.4
4.4
.5

Haupt ft Co., New York.

amendment to

Proceeds

i

■

S-2

ol

to

i

Proposed offering as amended Dec. 10
9,000 shares at $54.25 per share .
Amendment filed May 15, 1942, to defer

registration

Chicago;

ment

•

underwriters :anc
supplied by post-

ment

evidenced by trans¬
expire May' 29;
preferred stock not
before May 29, 1942,
before June 30,
1942,

the

;

Offering—The securi¬

and

Act.

price

.

account

rendered

be

to

of

outstanding
650,000'-

1941.

effective

al, Trustees of Hinman

Teter, et

Building

no

exception

Names of
public, will be

■,/

Amendment

2.3

Ira

lor whose

utility

public

a

Honolulu,

issue
and
sale, either at private or
public sale, at not less than $10 per share
Proceeds will be applied to reduction of

and other portlonr

effective

(3-28-41)

A-2.

s-2

Address:

(with

Florida

of

coast

pany

distrlbut,

sold

be

is

of

to

registered are to be sold by company
the competitive bidding Rule U-51the SEC's Public Utility Holding Coim;

of

Registration Statement No. 2-4714. Forn

supplied

purposes

statement

will

Florida

County,-Arkansas

company,

will

ceeds,

Avenue

(Electric

not

or

an

Underwriting

by L. A. Cushman. Jr., chairman of boart,
of

purchase

per

HINMAN

'

'

under

Offering—Stock will be offered to pub
at price to be filed by amendmenti
Proceeds—All proceeds will be receivet

warrants, and 50,000 shares will be offered
to

Light

is

Such

subscribed

Miami

Ave.,

of AmerlcaL
Bond ft Shari

ties

Ga.

named

city

ferable ' warrants; which

subsidiary

Jacksonville area),

the

of

stock >.■(
Bt. Bldg .

and

the

stock,

common

sup¬

east

V 200,000
200,000

Pryor

i

providing urban transportation

to

1942.

Second

E.

be

•

'."a'

&

Power

lie

share.
Of the 75,000 shares
common stock registered, 25,000 shares are
reserved for issuance upon exercise of the
$10

S.

<

,

System)

shares

at

•■:

Business—This

common

Ten

Underwriter—None
STAR STEEL CO.

Lone

4.9

Hallgarten & Co., New York———
Harriman Ripley & Co., Inc., N. Y.

par

no

520

Business—Manufacturing

New York————

Granbery, Marache & Lord, N. Y.—

Address—25
Fla.

will

stock,

preferred

operating public utility en-i
gaged principally in generating, transmit-,
ting, - distributing and selling electric en¬
ergy
(also manufacture and sale of gas).
serving most of the territory along thi

ing bakery products in southern states

Dillon', Read & Co., New York—s.
Dominick ft Dominick, New York—
Goldman, Sachs & Co., New York—

B

Address—No.

Atlanta,

WEDNESDAY, MAY 27
LONE

the

.

Class

shares

Registration Statement No. 2-4995. Form
A-2.

and

on

1956,

Preferred

Cumulative

shares

Par.
Interest rates on the
Debentures, and the dividend

plied by amendment

Service

operated an apartment building in Evanston,
111.
All outstanding
stock of the

Emanuel & Co.,

Bonds

registration

provements '

Honolulu, Ha-»

by troiley coaches and gasoline buses '
'Underwriting—None.
Offering—The preferred stock is offered
to company's common stockholders of rec¬
ord April 30, 1942, for subscription at $10
per share, on the basis of three shares of
preferred stock for each five shares of

Sink-i

l, 1971; $10,000,000
Debentures, due Oct. 1,

$100

SERVICE

Public

a

conversion

on

4

Business—Company
service

!

-

issuance

Z*-:Z''

v.v-v

engaged in

Mortgagt

due Oct.

140,000

rate

ELECTRIC ft GAS CO.
Dean Witter ft Co., San Fran.200,000
Electric & Gas Co. filed
Kuhn, Loeb & Co._—
^ 1,100,000
statement with the SEC Dillon, Read ft Co.——_—
1,000,000
for $15,000,000 first and refunding mort- j
Offering—The debentures will be offered
gage 3%
bonds, due May 1, 1972
to the public, at a price to be supplied by
Address—80 Park Place, Newark, N. J.
amendment
1
Business—This
operating public utility I
Proceeds will be used to pay certain of
company,
a subsidiary of Public Service'
the
outstanding notes
and debt of the
Corp. of New Jersey, is engaged primarily
company
and
its
subsidiaries, and* for
in the production and purchase of electric
working capital /
V:. >>•
energy and manufactured gas and in the
Registration Statement No. 2-5000. Form
distribution and sale thereof in the State
A-2
(5-14-42);V: T H
of New Jersey, including Newark,
Jersey
City,
Paterson, Trenton,
Camden, Eliza¬
beth,
Bayonne, Hoboken,
Passaic, Perth
DATES OF OFFERING
Amboy and New Brunswick
UNDETERMINED
Underwriting and Offering—The bonds
will be sold under the competitive bidding
We present below a list of Issues
rule of the Holding Company Act.
Names
whose registration statements were filed
of
underwriters, and the public offering
twenty days or more ago, but whose
price, will be furnished by amendment
offering dates have not been deter¬
Proceeds
will be
added
to
company's
mined
or
are
unknown to us.
cash
funds;
cash funds have been and
are to be called upon, among other things,
for expenditures in the ordinary course of
\M ERIC AN BAKERIES CO. ^
business
for property additions and im¬
American Bakeries Co. registered 15,0(M
PUBLIC

.

Davenport & Co., Richmond———
R. S. Dickson
ft Co., Inc. New York

and

%

-

waii.

registered

250,000

...

Co.-

CO.

Co.

for

Address-r-il40 Alspai St.,

•

.

250,000

—' ■:

White, Weld & Co...
Emanuel & Co.,—.

;.

First

Light

$45,000,000

3tock,

„

1942

V "'

:

LIGHT

A

&

Power

Fund

tng

Sachs & Co._

L. F. Rothschild ft

Lucius

Frank B. Cahn ft Co., Baltimore—

effective

May 14,

on

POWER

SEC

oonds,
'

Beane

4-30-42

with .the

shares

75,000

reserved

latter

for

.•»
No.2-4636,J re-!

Statement

has

Ltd.,

of the preferred stock

i

,

LTD.

CO.,

Co.,

of 6% cumulative
convertible preferred stock, $10 -par; and
75,000
shares
common
stock,
$10
par,

the

; ;rv

j

used

be

TRANSIT

Transit

•

with

,,

Kansas City

Co.,

—

.

York—;—— 9.0%
Glore, Forgan & Co., New York
9.0
Bear, Stearns & Co., New York-—
1.2
A. G. Becker & Co., Inc., Chicago__
3.1
Branch, Cabell & Co., Richmond---: .5
Alex. Brown & Sons, Baltimore™.
1.2

Lehman Brothers, New

&

American

will

company

SEC

Florida

;

unless

City,

with

FLORIDA

are;

——-————$2,000,000!
j,—
2,000,000,
A. G. Becker & Co., Inc., Chic.
650,000,
Blyth ft Co., Inc
650,000,
Glore, Forgan & Co
650,000
Harriman Ripley & Co., Inc.__
650,000
Hallgarten & Co—.—
400.000
Hayden, Stone & Co.-—-—400,000
Hemphill, Noyes & Co.________
400,000
Wertheim & Co
400,000
J. S. Bache & Co.——.
;
250,000
Kidder, Peabody & Co
—:. ., 250,000
Merrill Lynch, Pierce, Fenner &
V;
Goldman,

Stifel, Nicolaus & Co., St. Louis,—

Swiss

York

New

to

Registration

of the underwrit¬
amount of
the

noted):

a

working capital purposes
filed

for

for

SEC

will:

shares

1,000,000

30,000 shares
selling stockholder :

remaining

Proceeds

Bros.

Lehman

1.0
.5
Corp., New York—,
1.0
Union Securities Corp., New York,
4.4
G. H. Walker ft Co., St. Louis,,„
1.2
Watling, Lerchen & Co., Detroit-—/ 1.0
Wertheim & Co., New York—,
1.7
White, Weld ft Co., New York—
1.7
Bros.

Stern

$11,500,000

tween

1.0
1.2
1.7
1.7
.5
.5

Gardner, St. Louis

&

Riter & Co., New York—
Schwabacher & Co., San Francisco,

INC.

LTD.,

of

(all

follows

the

account of

!

principal

the

and

1,030,000 shares of com-,
to the public at.

Rapid

registration, statement

filed,;a

be offered

share;

per

Honolulu

■;! ,!

'•!/';!;!a/ ,::!-':

RAPID

HONOLULU

be offered for the account of the company,t

and
activities incidental ' thereto;
principal store, directly operated by the
company, is located at Broadway and 34thi

ers,

cents

35

will

stock

mon

erally

St., New York City
Underwriting—Names

Distributors v

Offering—The

.

as

[■■■'"■.y'SUNDAY, MAY 24

gold mining business >}lf&!■:>'•:!;!'\
Underwriting—Underwriter is Canadian

2Va%

10-year

of

000,000

otherwise

PHILIP

with

debentures to be underwritten by each,

'

.

•

Inc., filed a regis-"
the SEC for' $12,-:

Co.,

&

:';k'"^VVV I

INC.

CO.,

&

Macy

statement

tration

common

A

CORP.

Corp.

filed

a

registra¬

with

the

SEC

for

39,912

stock,

$25

par;

and

25232

stock, $1

par

Address—33 N. La Salle St., Chicago, HI.

Business—Primary function of company
is to loan money to enterprises whose debt

Volume 155

THE

Number;4074

-

COMMERCIAL & FINANCIAL CHRONICLE

-77'.7'ft

Calendar ol New Security Flotations

1

imd/or

capital

structures

American

ad¬

being

are

justed

or reorganized by its wholly-owned
subsidiary, H. M. Preston & Co. A second¬
function is

ary
not

used

Vide

to

its

in

loan

to

the

of

intermediate

or

borrower

.

open

111.,

cago,

is

Preston

M.

the

1

Offering—The

class

is $8

is

i v

in

$110

per .unit,k With

units,

units

of

:there

4

will

shares,

at

be•; included

Co.,

for

will

and

be

amendment

Investment Trusts

7

;

prices,

of

names

furnished

to

by
registra¬

the

(Continued from Page 1935)

statement

ing

Registration Statement No. 2-4913. Form
A2. (12-12-41)
Amendment -filed May 14, 1342, to defer

,v.

New

underwriter.
underwriters will be

effective

date

V77;7";7>>;

working capital
Registration Statement No. 2-4968. Form

&-lv

(3-18-42)

filed

pffective date

Duller,

V77
1942, to defer

8,

1
&

; *""

,

mfg, ,co./

' v

/•-j

'

.

Tool
&
Manufacturing Co.
registration
statement
with

filed

a

SEC

for

92,792

value

par

May

"

tool

Miller

77/':7: 77

v'.

r

Amendment

shares

-

of

has
the

stock,.

common

•^7/;-7/777.7:

7
v W;

"■"Address—Detroit, Mich.;v;:,;vv 7:7-•
Business—Company is * engaged in tht

/

manufacture
use

by

the

and

of

sale

tools

service

other

the

automotive

Co.,

,

principal underwriter
Offering—24,875 shares of common stock

will

be

sold

the

the

to

public for
the

company;

shares

registered

are

will

from-the

ceeds

7

shares

•-

sale

to

7/

•

••

•

the entire pro¬
the public of such

receive

'

A2- < 2-2-42).,

Co.

irs,141

all,

in

who

shares

2,695,000
til

(no

conditions,

Thereafter
took

j

J

by its parent

pany, Tne North American
of
the
underwriters, and

each

which

of

Co.

ter.

such

;

the account

remaining 67,917
already issued and

Vf 7-pANY'

,'7/

.

25,000

fistered

Heat

shares$100

v/

itock '

and

v-77'.v..'':••,•■■*-

••

j Address—4th
6c
Ohio '••"••7v'V"7 "

Power

to

National

City

the

the

Business

:

Operating

—

77v

Electri'

61

former

by

,.17

amend¬

j

is

the

the

registered.

shares

the

shares;

York, parent
the holder ol

shares

the

of

436,691

New

17,000

of

to

of

of

47.7%

stock

of

company,

aggregate

Proceeds

registered

outstanding
and

company,

public,

at

com¬

will

be

to

be

price

a

be

will

by

Form

A2.

«12-29-4.,

•

No.

7,,

Registration

Statement No. 2-4920. Form

(or

each

Cleveland)

<12-26-41

(or

each

\

*

Amendment

filed

effective date,

May'5,

r.7 •;

7;

.

1942,- to defer,

7/7'';•

.>;

holders

for

.

5/94ths
unit.

Southwestern

registration

public

Public

service

Service

statement

with

filed

Co.

the

co,

SEC

Serial

notes,

from

Nov.

clusive;
tive

due

1,

in equal

1943,

Nov.

to

and'85,000

preferred

annual

value

par
•

•

.„

share*
share

new

stock

Electric

Corp.

>7;

;v

debt

current

repay

is helc
anc

bonds held bj.
parent and associated companies, anu foi
first

costs

lonstruction

Statement No. 2-4379.

Registration
' <3-30-40)

A-2

mortgage

-

.

Amendment

,,

filed

.

"
1942, to defer

12,

May

.

sub¬

munities in Texas, New Mexico, Oklahoma,
•Louisiana, Arkansas and Arizona.
Under
a
plan of integration and simplification
proposed to.be consummated under section
Ml
of
the Holding
Company
Act simul¬
taneously with the consummation of the

:

UNITEH GAS CORPORATION
7 United Gas Corp. registered
(lrst

and

mortgage

$75,000,000

collateral

314%

trust

bonds due; 1958

.>.-7
Address—2 Rector Street, New York City
.

li Business—Production

and sale of natural

part Of Electric Bond and Share'Sys¬

gas;
tem

.7
-•Underwriters—None

/.'Offering

Terms—Bonds

On
at

March

1938, the DowAverage closed

31,

Industrial

98.95, and

closed

be

sold

into

company)

to

company;
liquidation
Mexico
Utilities
Co.;
re-i

Texas-New

capitalization

and

partial

000

to

Electric

Bond

and

Share;

to

repay

$2,000,000 open account debt to E. B. & S.;
and to purchase from United Gas Pipe Line

liquidation of
•Gulf Public Service Co.; purchase of Pan/
handle Power 6c Light Co., Cimarron Utili-:

CO.,.

.ties

part

Co.

and

Guymon Gas Co.; and re¬
the entire outstanding funded
debt of the company itself. - Upon comple¬

funding

tion

of

of

the

-

transactions

Involved

In

fore¬

going, it is expected that the company will

(have no parent

;
V
Read- &. Co., Of

Underwriting—Dillon, •
York, is the principal
of

names

the

other

-

added

be

the

to

the

securities

new

company's general
effectuate the

will be applied to

transactions

involved

in

plan of integration and simplification,
'and the refinancing of the company's out¬

standing funded debt

:

".

'

•>'

.

Registration Statement No. 2-4981. Form
(3-31-42) ; "'

Amendment

'effective

6,

May

•'

7-

'■

-

filed

date*

standard
Standard

1942,
*

•

'

,,

,

convertible serial and

Address—Dayton, Ohio
7
Business—Company
manufactures 'sand
develops aircraft products, etc.
Offering—The
be

offered

1943

for

will

33,586

cumulative

cents

maturity
public at

the

to

maturities

change

be

($48,105)
100.1 The

offered

shares

in

ex¬

($7.50 par)'

preferred stock

on

a

40
par

•for par basis as follows:

ing

1944,

debentures matur¬
debentures
maturing

$62,000;

$62,000;

1943,

debentures

and

,$62,000;

maturing

1946,;

maturing

debentures

7'.:;-<-7

,$65,895

1947,

■;■■■v-y:t

•

Underwriting—The debentures

ing

aggregat¬
through under-!

be sold
N. Webster, President,;
•has agreed to sell through underwriter the
$251,895

writer

•$190,537

change
"stock.

•cipal
an

may

100.--R.

at

debentures

for
G.

his

has

he

25,405

Brashears &

underwriter.

shares
Co.

R. N.

to

agreed
is

of

ex-1

preferred

named

Webster

prin-:

be

may

"

of

$48,105 (1943 maturity) will

used for working capital
7
Registration Statement No. 2-4988. Form

A-l.

(Filed

In

Amendment

effective

San

filed

Francisco

of

May

6,

to defer

1942,

1942,

the

"*

7;

the

sold

2,695.000

Co.

statement

shares

of

common

filed

Missouri

with

the

stock,

SEC
no

a

for

par-

Address—315 N. Twelfth Blvd., St. Louis,
.Mo.

Business—This

end

that

privately,




The North

pur¬

insurance

14

the

com¬

"These purchase agree¬
Feb. 16, 1942.- The cor¬
continue

its

by

bonds

negotiations

shall

renewal

be

either

of

the
afore¬
agreements or otherwise, or offered
to the public as circumstances shall
dictate
In order to obtain the
pest possible

said

price."

Amendment

filed

(late

May

5,. 1942,

to

defer

'

,

PUBLIC

SERVICE

CO;

ment,

disclosing

that

it

now

7

proposes

to

under the competitive bidding rule of
Holding Company Act, $26,000,000 of first
mortgage 334% bonds, due Feb. 1, 1972,
and. $10,500,000
of- sinking fund
deben¬
tures, due May 1, 1957; debentures are to

interest

at

not

exceeding

annum, with specific interest
supplied by later amendment.

Previously,

in

statement. filed

its
with

SEC

2,/2%.' to

3 (4%

serial

ferred

stock, $100 par,
stock

common

no

sell

1971,

notes,

1951,. 70,000 shares 5(4%

per

to

be

registration

Dec.

company then proposed to
first mortgage 3Vis, due

5%

rate

original

13,
1941,
$22,800,000
$5,700,000

due

Dec.

cumulative

and 628,333

Alex-

.

Business—Company
electric

In

the

operating
and

purchase,

sale

of

retail and wholesale In

and,

to

a

Company is

eral

&

Gas

Electric

Associated

Gas

&

Net

proceeds

000,000

3%%

from

the

to

prepayment "of
company

erating
present

extent,

at

North

subsidiary of Gen¬
Corp., which is in

a

Electric

Corp.

and

hold¬

•..

the sale

be used

of

the $26,$10,500,000

the
as

follows:

$37,purchase or

redemption,
all

in

7

bonds

will

transmission,

electric energy

Virginia, West Vir¬

minor

Carolina.

the

principally
an
utility engaged

public

production,

distribution

is

funded

debt

of

the

and Virginia Public Service Gen¬

Co.;

$360,000

financing;
on

the

tired;. and

the

debt

to

pay

payment

expenses

of

securities

balance

will

to

be

of

accrued
be

"

.

Of the

re¬

pledged

traded

on

dates, according to
lished

000,000 each. ...Harriman, Ripley
& Co., Inc. was third with
$26,567,000. Dillon, Read & Co. and

7

Forgan. & Co. followed
$12,000,000
each.
Mellon
Securities
Corp./ ac¬
counted for $51,028,000 of the
$74,350,000 managed by firms
with
headquarters outside of
New York City.
The managing

in

a

National

499

com¬

both

those

study pub¬

Securities

And this
few

a

has

shrunk

tions

gether.

to

negligible

been

/-. or

wiped

32 7

Rose

22

&

Rose;

60

Rose

54

continuing

•

more

75%

to

100%

from

50%

to

75%

/from

25%

to.

50%

from 10% to
7 jess than, 10%

Rose

.

33

Rose

7" 6

than

from

25%

v-

100%

.

firms

Declined

79

Declined

>

less than 10%
from

10%

to

25%

86

Declined

from

25%

to 50%

Declined

from

50%

to

Declined

more

;

they managed, with no
significant difference in propor¬
tion

alto¬

than

75%

,

extent

of

public

aids

to

increases the situation will

other allowed to fluctuate without

adding to the difficulties of indus¬
try and trade.
be

If stabilization

effective, it must be

is

com¬

To make

it

complete, a clear
cut; definite and comprehensive
policy, applicable to all produc¬
tion costs as well as to prices and
centering Upon the oiie great ob¬
jective of winning the war, is
sorely needed.—Chamber of Com¬
merce

of the United States, Wash-

irigtori, D. C.

-

Record Iron Ore
Iron

the

Shipments

shipments this

ore

Great

Lakes

year on

May 1
high of
8,581,740 gross tons, the War Pro¬
duction Board announced on May
18.
This tonnage represents an
reached

a

increase

23.9%,

new

of

to

up

all-time

1,626,947
the same

over

to

of

move
ore

Superior this
is
89,500,000
to

a

000
o)

the

down

maximum
from

Lake

The 1942 goal
tons, as compared
normal movement of 50,000,year.

tons, the announcement said.

>7-i

11.

>•

J:

,7.■

it

It

is

an¬

\

The Third District of the U. S.
Service
Commission
in

Civil

Philadelphia has issued

call for

a

young men to be trained

junior

as

engineering aids for service in the
Army's Signal Corps.
According

to

information given the Women's
of the U. S.
Department
Labor, there is need for hun¬

dreds

of

young

women

to

serve

inspectors in private plants
making
radio,
telephone,
and
other equipment for
Army use.
offer

is

to

open

matical

and

high-school

scientific

mathe¬

a

education.

A

salary of $120 a month is paid
during the 6 to 9 months training
period and $135 when

starting

work as inspectors. The
age limits
for trainees are from 20 y2 to 35
years.

Liquidate Cocoa Futures
The Board

;

of

cided that after the close of
busi¬
ness

May 14 all trading in
futures, except for the pur¬

on

cocoa

and water transportation in

pose of liquidation will be sus¬
opportunity also pended until further notice.
A
given for presentation committee for the voluntary li-;
concerning related aspects of pub¬ quidation has been appointed by

way

that order.
will

lic

An

be

aids

to

airway

pipeline the

and

Board,
consisting
of
five
members, for the purpose of fa¬
cilitating the supervision of the

transport.

Corporate Underwritings
In First Quarter
The

Securities

and

Commission announced
that

securities

value of
ed

liquidation.

Exchange opened in
on

an

the

were

7-'7

As of the close of business
May
12
there
were
643
contracts
cocoa

futures.

May 14

aggregate

$239,027,000 and register¬

under

1933

of

Securities

Act

underwritten

by

Acosta Dead

of

Julian

144

A.

J.

Acosta/ formerly

a

investment banking firms

member

York

Stock

the first

Exchange, died at his home

at the

Research

importance
of Great Lakes shipping to the
continued full production of iron
and steel, every
effort is being
exerted

Auditorium.

nounced that it is planned to con¬
sider public aids to highway, rail¬

in

Because of the vital

amount

mental

during
quarter of 1942. Accord¬
ing to an analysis prepared by the

1941.

of
7;7

■

Managers of the
The hearings will be conducted in New York Cocoa
Exchange, at a
conference rooms of the Depart¬ special
meeting on May 13, de¬

or

tons,
period

with

outside

girl graduates who have

transportation will be the subject
probably
become
more
acute of hearings to be held in Wash¬
when the necessity for making re¬ ington/:
D.Ch commencing June
placements and restocking empty 29, according to an announcement
shelves arises.
The disparity be¬ issued May 12 by the Board of In¬
tween low prices and higher costs vestigation and Research.
The
will become even greater.
hearings will afford interested
This indicates clearly that wage parties an
opportunity to submit
costs and prices are tied together. evidence on this
subject which the
If they are to be kept in balance Board is
investigating as directed
one cannot
be stabilized and the by the Transportation Act of 1940.
wage

firms

or

Young Women Needed As
Signal Corps Inspectors ;

The

Aid To Transportation
The

for

pressure

between

as

headquarters in
New York City.

•

as

75%;

propor-;

put

$44,611,000 of par¬
the $238,027,000

in

which

of

37

12

held

ticipations

Bureau

Unchanged.'

38

about

not

was

extreme

Percentage Change

Rose

40

:

■

With

Direction

Glore,

with

Research

7

largely

1,

shares

Washington :St.,

7

-.

instances costs, due;
to wage increases,:
gone
up since March.
In
some theymargin between Triount-;
ing costs, on the one hand, and
the fixed price levels on the other,

pre¬

par.

Address—117 ;S.:
indria, Va.

---

plete.

sell,

bear

/

many

-

very
have

to

Virginia Public Service Co. on April
29,
1942, filed amendment registration state¬

interest

subsidiary of

extend

company's first mortgage and col¬
trust 3(4% bonds, due 1959. - This

239,193

union electric co. of missouri
Electric

with

ments expired on
poration intends to

to

with

stating that it had

the proposed private sale
insurance companies of
$75,000,000

debentures,
Union

in

'

amendment

further

ing company system

4-20-42)

date

'registration

used

V

\

filed

Corp.

amendment states:

ginia

underwriter

Proceeds

be

4%

covering

to such

VIRGINIA

sinking fund debentures, due 1943-1947 77

will

will

•

to

agreements

panies

defer

to

aircraft products, inc.
Aircraft Products, Inc., filed a
statement with the SEC; cov¬

ering $300,000 5(4%

other

•

21,

unable

effective

,

/registration

Balance

•

Gas

Feb,

on

chase

v

the

•A-2.

United

lateral

sale of

financial

.various

(5-15-41)

been

•

from

•funds and

A-2

SEC

'

"will

1961.

Coll.

In

•

„

will

Offering—The bonds,
serial notes and
•6%
preferred stock, will be sold to the
'public, at prices to be supplied by amendProceeds

due

lst.7&

its

to reimburse treasury for capital ex¬
penditures and possibly to pay accumulated
dividends of $9,502,490
on
companys
$7
preferred stock
Registration Statement No. 2-4760, Form

underwriter;

underwriters

.be supplied by amendment

•ment

bonds

of

.

New

;'the

$6,000,000

places the ceiling at the
the highest prices as of

of

March,

financing,

the

Boston
Corporation accounted
for almost half of this with
$40,-

April 14, 1942, it

on

at 97.89.

stocks

Stocks

This

bankers, of which
headquarters in New
City managed $164,677,-

000, or -39% of the total.
Bonbright & Co., Inc. and The First

:77;77.77

manufacturers!

order.
level

will

7i;:'4

cases
as
the following table for
brought, the period of approximately four
face to face with the problem by
years, shows:
the recent; general price fixing
Change—March 31, 1938-April 14, 1942

-•

institutional
investors, .whose names will
the company
•proposes to effectuate the following trans-" be supplied by amendment; at 99.34%
-7
^actions:
Proceeds—To redeem $28,850,000 United
Merger of Community Power &
Light Co. and General Public Utilities, Inc. Gas Public Service 6%. Debentures due
(the two present parent companies of the
1953; to pay 6% demand note of $25,925,-

Many

concentrated in 24 firms of

7
*

academic just the result of

an

,t : 7-

with

York

Shares, payable June 1,
1942, to stock of record May 15.
Shares
purchased
through
the
record: date: will/ carry the
divi-\

and merchants have been

"

1

longer

no

question.

&

.

Management of underwriting

was

14

Business

cline lost 86.8%.

This is
;

are; engaged
principally in the
generation, transmission, distribution and
.sale of electricity, serving certain com¬

proposed

free.

Witter

7' 77 ■ 77: \

<

investment
A dividend of 8 cents per share
has been declared on American

by setting up
a
war largest rise gained
394.9%; while
economy half controlled and half the stock that had the
largest de¬

effective date

sidiaries

"present

j

involved

$3,282,700; and Dean

/ 1

avoided

Forn

,.v»

,

difficulties

City hav¬
highest aggregate

five

Co., $2,962,585.
•

Corporation's "Invest¬
in the attempt to anchor
prices ment Timing"
service, 252 stocks
and, at the same time, permit
declined, six were unchanged and
costs to move
uncertainly upward 241 rose.
are now
becoming apparent.
"Despite the comparatively nar¬
?:7Expurience is. proving that the row average
movement," it is
perils
of
inflation
cannot
be stated,
"the stock that had the

•

company 7 and i Its

Business—This

to -5

/Wee Control Problems
Practical

.

7

mon

$5.31
stock¬

$100,016 per

&

Gas

-

Proceeds—To

at

basis,

all outstanding

Columbia

-

share

share held at

52,835,000

amounts

1, 1953, in¬
6% cumula¬

shares of

stock, $100

Addrcss-r-Dall&s, Texas

t>y

a

for:

818,500,000 of first mortgage and collateral
trust bonds, due Feb. 1, 1972;
$5,500,000

share held

a

subscribe

may.

each

Substantially

southwestern

a

of
On

the

183,312; Harris, Hall & Co., $4,618,675;- F. S. Moseley & Co.,
$3,502,825; Coffin & Burr, Inc.,

dif¬

the process might be;" 7;

Jones

.

''

participations
were:
Mellon
Securities Corporation with $7,-

lay ahead,
them, and
looking ahead from: that point
there could only be improvement
—no matter how
long or difficult

■

82.

ing

began look¬
and while
many

The
New
York
City firms
having the five largest partic¬
ipations were: Blyth & Co., Inc.
with $13,200,738; The First Bos¬
ton
Corporation,
$11,954,437;
Smith, Barney & Co., $10,884,725; Kidder, Peabody & Co.,
$9,860,338, and Harriman, Rip¬
ley & Co., Inc., $9,540,425. The
firms
reporting
headquarters
outside of New York

unfavorable

and problems
the 'worst' was behind

2-4923 '

1942, to defei

Proceeds

.be

and

England

of

;

bet¬

»

77

Amendment filed April 21,
effective date
;
■■■-7

share
•
:
.•
Corp.'
•' -"-7
'"
' :,' v7"
/
'will be used for the purchase
Offering—Stockholders will receive of
machinery and equipment and for worktei to subscribe to 25/94ths of one com
tog- ttaplta^:;*v
^. mon share" In units of 5/94ths of a shan

news.

the selling
,

per
v

.

the

j7 dend.

received

-*

RegistrationStatement 7

■

Gas

named

extent

Bank

stockholders-

wtilitv
•

be

supplied by amendment

77

electric
-7
*!

the

remaining

mon

Cincinnati

,

Republic and Cuba

will

7

solution.

comruur

par.

Dominican

offered

Co.

•

Main St.,
"7
■-»•'»

production
of
raw
cane!
Invert and blackstrap molasset-

Offering—The
shares
registered
are
already outstanding, and are owned by
City Company of New York, Inc., In Dis¬

of

dislocations

war

the

represents

7/7-,:-.-V

Light,

Union

MUaderwiiter—Columbia

public offering price is $4.2f

POWER COM

ness

■t

7

■

the

The

holders.

•of

sentiment

•

is

ment

stock

common

77,77/7;:7

7:-7.-;■

■

company

The

maximum

in

Underwriters

agreed to purchase were listed
of Feb. 26, 1942, page

and will be sold .to the pub¬
lic for-the account of certain
selling stock¬

r;

lifted.

was

for

turn

Corp. and cer-1 ing toward the
future,
solely a holdji it
was recognized that
the
securities
Qi \

subsidiaries,

and

>ugar
.n

7. '
•>! Amendment filed May 15,
1942, to defer,
effective dat* 7 7; .'■ •;

outstanding,

.

etc.,

investment

marked

a

owning
operating subsidiaries engaged prln« i ficulties

everal

com¬

York City

organized
in
1932
of reorganization ol

company

its

dpally

The names

the

of

tng

"Chronicle"

the

846

shares

of

number

in

tain

Feb

on

St., New

to the plan
Dominican Sugar

.Cuban

•

will publicly offer tht
par) common stock,

which are owned

of

Missouri,

of

42nd

Business—Company,

filed an amendment to its regis¬
statement, naming the underwrite

1942

tration

E.

pursuant

Form

\r- 777,

•■

.

.I Union. Electric
In

Address—60

r-.

Registration Statement No. 2-4940.

•

ONION LIGHT,-HEAT AND

the

named

who

Co.,

for

industry v.*1." "
Underwriters—Baker,
Slmonds
&

.

v

,

900

first

with ..each

.

leach pnit;;of class A stock
U Proceeds will be used for

Of

&

•

available

;..••

of

price

a-

the

least

at

unit 4 shares of common stock; thereafter
(company reserves the right to reduce 'the
humb'er of common shares to be included ir

is

Read

be

.

Isold

$1

;

to

Hope and v confidence sup¬
planted pessimism and fear, with
supplied by amendment
7/ •■•v. ■■•-7 7 :7/, WEST INDIES SUGAR CORP.
the result that stock
West Indies Sugar
offering—The 2,695,000 shares of com¬
prices re¬
Corp. filed a regis¬
tration statement with the SEC for
pany's common stock are outstanding and
covered vigorously even in face
453,691
■ihares of common
are owned by its parent, The North Amer¬
stock, $1 par
'( 7 of profit limitations, serious busi¬
ican

be

to

post-effective
tion

the principal

named

of

Names

The

unit

per

stock

A

Underwriting—Dillon,

York, is

~

Co., Chi¬

underwriter.

sole

Underwriting'commission

1

sources

&

i

offering
underwirters,

the

in

Usage hydroelectric plant

change-In general
avenues
for longer-

a

mortgage

Public

adjacent
ties

the

property-additions.

which it generates and pur¬
from its subsidiaries,
serving the

of J3t, Louis, Mo., and portion of 5
Missouri counties and of 3 coun¬
Missouri adjacent to the company's

city

pro-

financing

borrowing from customary

! (Underwriter—H.

to

under

energy,

chases

financial positions

the

or

jcapital markets
term

function;

primary

"interim"

enterprises until

tric

with funds

money,

is engaged primarily, in the
distribution and; sale of elec¬

Co.

transmission,

1943

and

Statistics

Subdivi¬

age

A.

000

the

firms

with

headquarters
outside New York City.
The
ment
7:

Commission's
further

announce¬

stated:

■•••:.:7'777-77

the

New

of seventy-eight.

Mr. Acosta

had been

sion of the Trading and Exchange
Division, 51 of these firms re¬
ported their headquarters as in
New York City, and their partic¬
ipations totalled $168,247,000 and
averaged $3,300,000 per firm, com¬
pared with an average of $761,-

for

of

the senior partner in J.
Acosta & Co., which was dis¬

solved
from
been

the

when

Coffee

in

member

New

York

and had held
and

Produce

formerly
tinental
pany.

Mr.

business
a

a

Acosta
1940.

and

retired
He,had

governor

of

Cotton

Exchange,
membership in the

Sugar Exchange and
Exchange.- He was
director of the Con¬

Bank

and

Trust

Com¬

.77V'7:7/ 7 • 7-s7

Coach

Manheimer, Lockie To
FEDERAL

Join

SAVINGS & LOAN
'

dividual

An¬

31st.

December

and

York,

ticipated rate for 1942

the

,';y'

3%

Spear-Leeds

V

of

Panhandle Eastern Pipeline Co.

the

in

Leeds, 54 Pine

Spear &

M. S. WIEN & CO.
Y. Security Dealers Ass'n

Members N.

the firm

St., N.Y.

25 Broad

future.

near

plan

purchase

insured

;

less,

William Giles To Be

X't

f
Partner In Roberts Co.

.accounts

capital

against

loss

Name N.Y. Committee f

ForVictory Fund

'

William B. Giles will become a

FIRST FEDERAL

in : Roberts & Co., 61
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
partner

Savings and Loan Ass'n of Lake County

Leesburg, Florida

!

Offers New Tax Plan

was

partner

a

loney & Co.

New

Vic¬

Committee

for the
Second Federal Reserve District;
Fund

tory

announced

May

on

19, that with '

the

approval of the Secretary of
the
Treasury, that he. has ap¬

in Block, Ma' V
" :
•

following to serve
members of the Vic¬

the

pointed

■m

principle of linking PostWar Recovery Bonds
with the
Excess Profits Tax will probably
The

of
the

of

Chairman

and

York

Bank

Reserve

Federal

Giles, Norris & Co.; prior thereto
he

Sproul, President of the

/Allan

change, as of June 1st. Mr. Giles
was previously a partner in Giles,
Norris & Hay and its predecessor

Fiduciary Counsel
}

1-1397

for

private investors
All ' $5,000, or

HAnover 2-8780
Y.

N.

Teletype

Installment

Bonds

Mexican Bonds

Exchange

mitted to partnership in

TRUST FUNDS

Preferred

S.60

South American

Street, New York City, today.Andrew S. Lockie will be ad¬

Legal Investment for

,

Zinc

Wallower

Evans

partner in

a

Stock

York

New

firm

become

'

« •

New

in

broker

floor

will

Sharpe

World's Fair 4s, 1941

•

active as an in¬

years

many

&

-Brown

.Merrimac Mfg.. Co.

y?

De Witt J. Manheimer,

for

30th

June

payable

Chicago Minute Men

member
of the New York Stock Exchange,

SHARES
Dividends

Thursday, May 21, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1944

with him

as

Barman Ta Se Partner

tory Fund Committee:

in the 1942 Tax Bill,
declares Fiduciary Counsel, Inc.,
Trust Company of New Jersey
Building, Jersey City, N. J., which

In Henderson, Harrison

Executive

plan for such recovery bonds.
A revised plan in keeping with
recent action of the committee has
been
submitted
by
Fiduciary

York City:

be embodied

H.

Boston

Pemberton Berman has become

a

Counsel, Inc., which states:
"When our original plan

was

presented to the Ways and Means
Committee of Congress last March,
the Treasury
had recommended
excess profits tax
rates reaching
75% with a credit of 8%%. Since
then, the committee has voted a
flat rate of 94%. This action made
a

revision of

plan is as follows:
time corporations

the

"1. At

plan necessary.

our

"The revised

partner in the New York

a

Luber & Arden Form

profits tax.
interest

,k. '

-

bearing

will

of the New

members

both

Exchange, :p have
formed Luber & Co. with offices
Stock

Street, New York City.
formerly a partner

at 40 Wall

Mr. Arden was

and

non-

non-nego¬

>

their

on

tingent

books

as

a

con¬

After the war,
the bonds out of
and use them, they

reserve.

when they take
the

reserve

will

All

income.

treated

be

then

bonds

as

not

taxable
so

used

within 4 years

will be treated as
taxable income the fifth year.
"Other. details have been sug¬

:

gested for the purpose of assuring
that the purposes proposed will
ditional changes will be made be¬
the

plan is finally enacted."

Billings, OlcotS To
Admit L W. Bishop
Edward W.

Bishop will become

highway construction, soil erosion
control,
coal
mining
and
tea
•

tries

Exchanges, as of June 1st,
and the name of the firm will be

country

of

Bennett,

Smith & Co.

Mr. Crouse and Mr.

Kerr

both

in

partners
;-••••••• :

concessions

publication of the
U.
S.-Peruvian agreements, the
dollar
bonds advanced substan¬
the

After

tially,

line

varied

a

on

prices the bonds
appreciation possibili¬

current

that

at

the part of this
to supplement the

on

serve

still

have

ties, with the added incentive of
income being forthcoming in the
not - too - distant
future.
Dollar

$30,000,000 lend-lease loan which
granted some time ago and
the Export-Import Bank credit of
$10,000,000 which was negotiated
toward the latter part of 1940; this

was

this page,

on

together with quota¬

tions and 1942

Outstdg.;

market range.

ciated

has become asso¬
FX Dowdall &

Wm.

with

6s,

Dec.

Oct,

GOVT.

MO.—Pierre L.
Papin, member of the: St. Louis
LOUIS,

Stock Exchange,

319. North
Fourth
Street.
Mr. Papin was formerly
Vice-President
of
Gatch
Bros.,

Exchange, on June 1st. Mr. Bishop
was formerly
a partner in Bou-

Jordan

vier, Bishop & Co.

investment

Company,

*12-

15'/2-7

1-31

y<;/

1961,

1,

48.4

24.5

10-1-31

15V2'7V*

1-2

t7- 1-31

If

-3%

2-9

9-1-31

12

-6

7l/2S,

Jan.

MUNCIPALS—

..

'44

1,

;

V

Sept.

6y2s,

"Coupons

1,

purchased

expired.
tPaid

,

1960_i..—

i,

Current

.

15%-73/4. /

*3,31-32

'

'58™,.
by

Government

Peruvian

,

\

on

account of coupon

*

$32.50

4

under

of

offer

"

Price
14 Va

;

■

12

8-27-37.

*,r

ji

x

.

v

(Special

to

The Financial

Chicago Rapid Transit 6s &6V2S

of

Louis

Bell

own

N. Y. BOwling Green 9-7030

Teletype

NY




1-61^

*

and

has

dustry and banking

'

John

community to
investor in

possible

every

securities whose re¬

quirements are not fully met by,
the sale of Series E War Savings
Particular emphasis will

placed upon the sale of securi¬
ties
to
non-bank
investors
in
order
to
help
avoid
the
in¬
flationary implications of an un¬
restrained increase in bank credit.

Is Now

to The Financial

Chronicle)

PORTLAND, MAINE—Winslow
B.

Specializing in

become affiliated
Company, Bank
Commerce
Building.
Mr.

Libby

with
-

SOUTH AMERICAN DOLLAR BONDS

ager

has

&

Bowers

was

formerly sales man¬

for the local office of F: L.

Putnam

thereto

Chronicle)

—

become

a

New

& "Co.,
was

an

& Libby,

mons

Cook & Co.,
Streets, mem¬

Inc.,
officer

and

prior

of Ham-

Inc., and of Ham-

& Co.

Inquiries invited

R.

asso¬

York

and

St.

Mr.
formerly conducted his

Stock

Exchanges.

investment business, John R.

Kauffmann

lor

Olive

the

Kauffman

Members New York Stock Exchange

r.

The Reserve Bank ex¬
will direct the com¬
securities in¬

ciated with Newhard,
bers

HAY, FALES & CO.

MO.

LOUIS,

Fourth

r

It

plains:

bined efforts of the

mons

ST.

Kauffmann

1

program.

With Bowers & Go.

y

American Hair & Felt

71 Broadway,

announced would be set
throughout the country to aid
the
Treasury's
war
financing

Libby

Wiih Newhard, Oook

\

12

up

(Special

it

John R. Kauffmann Is

of

one

Morgenthau re¬

cently

of

COMMON
•;«. v

Secretary

'

Eagle Lock Co.
R. Hoe & Co.

is

committee

This
which

Winslow Libby

Louis
of Pierre L.

:

President,

Offer

\ v
dye 1-1-32.

}

New

be

11

v''

President,

Traphagen,

C.

J,

St.

under the firm name

Papin & Co.

Chair¬

Bank of New York.

Bonds.
14'/a

14%

GUARANTEED—

Callao

Lima

1942:

Market Range

and
his own

in

business

Rentschler,

S.

Schram.

Emil

Inc.,

McKinney,

&

to Mr.

.

York Stock Exchange.

.

prior thereto conducted

alternate

•

reach

'

Paid

8.7

1959

7s,. Sept.. I*

6s,

.

*

Chronicle')

(Special to The Financial

and Traders Trust

Buffalo,

Government

Coupon5;

Million S

"

PERU (Republic of)— '

elsewhere

bonds of Peru are listed

Last

Papin Joins

however,

believed,

is

It

f

These un¬

Peruvian products.

dertakings

Stock

ST.

Buffalo

President,

Inc.

country's economic and fi¬

that

as

trade
agreement,
of granting tar¬

reciprocal

a

iff

Pierre

of

President,
of

Co.

Harriman,

G.

Gordon

nancial outlook is concerned.

attempting to negotiate

are

nership in Bennett, Smith & Co.,
640 South Griswold Street, mem¬
bers of the New York and Detroit

were

Rand,

Trust

Rand).

of substantial aid to Peru insofar

processing.
y At the same time, both coun¬

with the purpose

Crouse & Company.

.

F.

George

National City Bank.
credit was never used by Peru.
Joseph P. Ripley, Chairman of
In sum, all these agreements are
Board, Harriman Ripley & Co.,

in

specialists

American

change, will be admitted to part¬

Crouse,

Co.

Trust

man,

DETROIT, MICH.— Charles B.
Crouse and Harry W. Kerr, both
members of the Detroit Stock Ex¬

to

^

Vice-Pres¬

ident, : Schoellkopf,
Hutton
&
Pomeroy, Inc., Buffalo.
William C. Potter, Chairman of,
Executive Committee,
Guaranty

Co.

Bennett, Smith & Co.

changed

h"
J.. Monro,

Walter

Manufacturers

Peru

partner in Billings, Olcott & Co.,
52
Broadway, New York City,
members of the New York Stock
a

*

Brothers.

(Lewis

THE BOND SELECTOR

Wm. F, Dowdall Co.

/

August Ihlefeld, President, Sav- ;
ings Banks Trust Co.
Robert
Lehman,
of
Lehman

Marine

No doubt many ad¬

be fulfilled.

fore

j

Luber. &

Crouse & Kerr Join

during

bonds

Illinois.

Cranberry & Co.
Mr. Luber
has recently been active as an in¬
dividual floor, broker and prior
in

as

'

Life Insurance Co.

New York

(Continued from Page 1932)

be

the war and will
automatically
become
interestbearing
and
negotiable
imme¬
diately after the war.
"3. Corporations will carry such
tiable

director of sales for the Liberty Loan
campaigns of 1917 and 1918 in the Chicago Federal Reserve Dis¬
trict, Jay N. Whipple of Bacon, Whipple & Co., Chairman of the
Illinois Committee of the Securities Industry for War Financing,
and Edward B. Smith of the Northern Trust Company, Deputy Ad¬
ministrator of the Treasury Department's War Savings Staff in
& Co., Inc., who was

Stuart

'

,v

bonds

These

"2.

amateur bond salesmen are:

Harry I. Luber and Henry Ar¬
York

Pictured at a meeting at which 600 men from the
Chicago were enlisted as coaches for the 100,000
(left to right) Harold L. Stuart of Halsey,

12 and 13.

11,

securities industry in

Exchange Firm

their Federal tax, they will
receive
20-year
bonds,
in an
amount equal to 20% of their in¬ thereto did business
come
that is subject
to excess
pay

Bond men to whom the Treasury Department
directing the 100,000 Minute Men who made the
Chicago-wide house-to-house canvass for War Bond > Pledges, May
War

Chicago

den,

W. Aldrich, Chair¬
Chase National Bank.
H. K. Corbin, President, Fidel¬
ity Union Trust Co. of Newark, y
Albert H. Gordon, of Kidder,
Peabody & Co.
George L. Harrison, President,
s

turned for help in

N. Y.

*

man,

Mr. Berman was pre¬
partner.in the dissolved
firm of Pemberton Berman & Co.
viously

Chairman of
Committee, The First

Addinsell,

Corp.

Winthrop

Stock
presented last March to the Ways Exchange firm of Henderson Har¬
rison & Co., 40 Wall Street, New
and Means Committee of Congress
a

M.

&

Co.,

number of

in

St.

Louis,

years.»**..>?..<;,.L

Premer In

Fuller, Cruttenden
Members

209 South La Salle St.,

Chicago

Company

Chicago Stock Exchange

♦

Telephone Dea 0500

.Poughkeepsie

POUGHKEEPSIE, N. Y.

—

Oren

Alverne Premer has opened offices

•

Teletype CG-35

* wmmmmmmmmmmmmmmmm—m—mmmm

at 1 Fulton Avenue

to engage in a

general securities business.- : ; ;