The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
2 8
pyg.
M?W-
I94g
.vw.:(v
Edition
ESTABLISHED 1839
.
2 Sections-Section
in
1!
Reg. U. S. Pat. Office
mmmm
Volume 163
Number 4492
New York, N. Y.,
An
One Year After VE-DayAnd Where Are We?
Organized
Labor Program
By SIDNEY IIILLMAN*
United
(CIO)
for
against centralization,
all.
"unjust, unrealistic, and ruled by
and logic." Advocates labor
legislation to provide adequate mediation machinery, making unions
liable on their contracts, without Government
imposition of pacts.
Congress in¬
power
seen
of
of
Government
placed at servof people
of
a
so
tro
im¬
control of ' a
i few privileged,
greedy
ing
Sidney Hillman
at
leave the Convention and go back
tp. your cities hot to forget that
^our ^corrimitments are of greater
import to our own membership,
the nation, and the world than
any obligations we have under¬
taken since the last meeting of
< the Convention.
.
,
..jg First we have, of course, our
J [c
(Continued on page 2816)
*Concluding address of Mr. Hillman
Convention
at
of
Amalga¬
Clothing Workers in At¬
lantic City, May 10, 1946.
mated
with
are
five
after
years of
war,
and they
peace
page
Robert A. Taft
ba¬
sis of that plan
eral statute. As
outlined by Fed¬
a
matter of fact
many
of these plans could
be made and
carried out without
a
good
assistance or under
present statutes, but the great
American panacea for every diffi¬
culty is "Pass a Law."
government
Regardless of party, the key to
nearly all the conflicts in govern¬
ment during the past 12 months is
Index of Regular Features
on
making
the
(Continued
on page
2800)
2828.
*An
before
address
the
Conference
L. E. Carpenter & Co.*
*
Prospectus
by
Senator
National
Board,
Taft
Industrial
New
In my
to
HIRSCH, LILIENTHAL & CO.
HAnover
3-0600
Chicago
Teletype NY 1-210
Cleveland
Geneva
London
(Representative)
or
picketing.
major labor crisis after
one
another, Sweden enjoys almost absolute industrial peace.
in
And yet
the 4 past
Sweden
has
,
shaken
been
b y
frequent
too; includ¬
ing general
strikes, lock¬
outs, imported
strikeb
r
lem.
demo nstra-
tions.
Swedes
ar¬
at their
rived
Naboth Hedin
state,
present
of relative la-
Have
anything
they
about
tranquility?
labor
relations from which the United
States could
propose
profit?
Labor Upheavals Followed 19th
I need
hardly emphasize the importance of
stress the heart-breaking delays
that are impeding our getting goods into the mar¬
kets that people can buy.
Also, there is the col¬
George B. Roberts
lateral problem during this transitional
period
of working out wage and price controls that will
allow the necessary incentive for work and
production, and yet ap¬
ply
sufficient
restraints
to • prevent
our
first
being
blown
(Continued on page 2808)
production,
H to w,
then, have the
learned
to deal with the monetary
aspects of the inflation problem.
We all know,
of course, that this is not all there is to the
prob¬
Century Industrialization
or
Two and three generations ago
Sweden
was one
of the backward
agricultural countries, situated as
(Continued on page 2806) ?
|
State and
Savings Banks, New York City, May 16, 1946.
mmm
Municipal
MANHATTAN
-#EUND
request
on
eak-
Bond
Brokerage
Bonds
Service
INC
Established
PROSPECTUS ON REQUEST
and Dealers
Bond Department
Hardy&Co.
THE CHASE
1927
WholesaleWisfrjbutors
w/lONG and-GOMPANY
^—INCORPORATED
INVESTMENT SECURITIES
64 Wall
for Banks, Brokers
J
R. H. Johnson & Co.
Members New York Stock Exchange
and other Exchanges
25 Broad St., New York 4, N. Y.
While the United States suffers from
*An address by Mr. Roberts before the National Association of
COMMON STOCK
Prospectus
Successors
Jurisdictional and wild-cat
forced check-off
no
York
Liberty Fabrics of
New York, Ike.
Hirsch & Co.
♦
talk I
—
request
quickly settled; there is
are
deposits in checking accounts is not desirable. Ad¬
vocates policy of adjusting interest rates to credit
conditions, but warns against misuse of credit.
Corp.*
on
strikes
bor
City, May 16, 1946.
Nu-Enamel
highly efficacious Labor Court technique, which has
ers,
and po¬
litical 1 ab or
Mutual
Aerovox
1
peace
Asserting basically, inflation means too much money, Mr. Roberts holds
most important step in combating it is to end deficit
financing, to be
followed by eliminating debt monetization and in¬
terest rate control.
Says Treasury and Federal Re¬
serve face a dilemma in
changing interest rate pat¬
tern, and that proposals to compel banks to hold
low interest obligations or to "freeze"
portion of
their plans for
want
us
eminently fair to management.
Vice-President, National City Bank of New York
those
interested
delegates when you
mends to
been
By GEORGE B. ROBERTS*
one
concerned
I want you
■
,
has followed )
labor controversies accompanying her 19th century industrializa¬
tion.
Employers' organizations negotiate labor contracts on a
national scale.
Hails 1938 Saltsjobaden Agreement providing
guarantees against interruption of essential services, and delaying
strikes and lockouts—all without government interference.
Com*
Policy in Inflation
time. In every
field,
<
explains how Swedish industrial
labor troubles
con-
sia 1
ver
matters pend¬
>
Mr. Hedin
Credit and Fiscal
had
we
many
portant
in
From Sweden's Past Labor Pains?
session
Congress
where
ice
instead
reason
The field of government activity has become so broad that it is
almost impossible to see an overall picture or summarize it
briefly.
I have never
<§>
stead of petty
little bigots,"
Copy
What Can the United States Learn
By NABOTII IIEDIN
who, in voting
representing their constituents' wishes.
consideration except
every
statesmen
and
are
a
Ohio
Declares OPA flouts law, and is
have construc¬
in
from
our policies both at home and abroad.
Says
all classes of the community must be consistent in their desire for
freedom.
Resents left-wing criticism of legislators
Says "we must
tive
Senator
asserts former controls
course
membership, and
advocates vacations "not for weeks,
but for months," with
hospitaliza¬
tion
States
Senator Taft cites basic conflict between planning and freedom and
CIO labor executive outlines
for his union's
Price 60 Cents
By HON. ROBERT A. TAFT*
President, Amalgamated Clothing
Workers
Thursday, May 23, 1946
Street, New York 5
BOSTON
PHILADELPHIA
Troy
Albany
Buffalo
Syracuse
Baltimore
Dallas
Washington, D. C.
Pittsburgh
Scranton
Wilkes-Barre
Springfield
New Haven
Woonsocket
WALL ST.
NEW YORK
FINANCE
BROKERS
48
*Air
CORPORATE
BOND
HUGH
634 SO. SPRING ST.
Exchange
Members New York Curb Exchange
30 Broad St.
NATIONAL BANK
New York 4
Tel. DIgby 4-7800
LOS ANGELES 14
5
Members New York Stock
OF
Products, Inc. Com. & "A"
SECONDARY
;
New England
^Universal Winding Co. Com.
Public Service Co.
*Firth Carpet Company
Analysis
*New Haven Clock & Watch Co.
MARKETS
CITY OF NEW YORK
THE
Tele. NY 1-733
upon
request
Preferred
*
BULL, HOLDEN 8e C9.
S
Kobbe,Gearhart&Co.
INCORPORATED
MEMBERS NEW YORK STOCK EXCHANGE
Members N. Y.
14 Wall St.. New York 5, N.Y.
TELEPHONE-RECTOR 4-8300
REctor
New York 5
2-36QO
;;
Teletype; N, Y. 1-576
Philadelphia Telephone:
Enterprise., 601$
.
on
request
v""
Reynolds & Co.
.
Security Dealers Ass'n.
45 Nassau Street
Tel.
"
Prospectus
.
p;
:
;
,
York Stock Exchange
Broadway, New York S, N. Y.
Telephone* REctor .2-8600
^
Bell Teletype; NY 1-635
-
'■' Members:' v '•'"<
IRAHAUPT&CO.
Members
and
£•. I-
<
New York Security Dealers Assn.
Members New
120
HART SMITH & CO.
-
58 WILLIAM ST., N.Y.
Bell
New York
111
•
HAnover 2-0980
Teletype NY 1-395
York Stock Exchange
Principal Exchanges
New
other
10 Post Office Sq.
Broadway
New
York
REctor
6
■'
2-3100
Tele. NY 1-2708
Montreal
Toronto
Direct
Private
f.
Boston 9
Hancock 3750
.'
Wire to
' V
Boston
THE COMMERCIAL & FINANCIAL CHRONICLE
2782
Trading Afarkets in :
;
Economic and Social Council About to Convene
Benguet Consol. Mines
Higgins Industries*
Samson United Pfd.*
Ass'n
40 Exchange
BEI.li
Dealers Ass'n
Securities Dealers, Inc.
HA 2-2772
PI.. N.Y. 5
TELETYPE NY 1-423
Monroe
with conflicting "evidence." Security Coun¬
Byrnes' threat be effectuated, of throwing the "roasting-hot
potato" of peacemaking intd the'lap of the UN, which has already fumbled the cooli
potatoes, this idealistic hiatus will be all the pleasanter.
Should Secretary
however,
can
in
> u
running
t
Baltimore Stock Exchange
120 Broadway, N. Y. 5
o
Textiles, Inc.
executive
speed, comfort, and safety in airplane operations. Sees prospect
and asserts "our business of flying people
and goods throughout the world will soon become the greatest fac¬
tor of toleration and understanding in history of the world."
very
here
the
delib-
watch his son's hasty
Rights Commission.
agitation for human
rights has been confined to the
expression of pious thoughts by a
multitude of "expert witnesses"
—individuals as well as organiza¬
tions—testifying
to the need
of individual
as
for the maintenance
W. & J. Sloane
About the
world.
Vanderhoef & Robinson
Ycrk .Curb Exchange
New York 5
Otophone COrtlandt 7-4070
Teletype NY 1-1548
far
thus
decision
only
taken
concrete
by the
commission,
preparatory
the
throughout
etc.,
freedom,
Common
under
much-photographed and pub¬
licized chairmanship of Madame
Roosevelt, has been the expressed
intention
to
proceed with the
drafting of such a-Bill,
Irrespective of how well-written
a
document the Council finally
the
(Continued
nouncement of each new achieve¬
ment in aeronautics.
I
can
which
America and U. S.
Machinery Corporation, Byrn-
Francisco
San
on
Washington's birthday in 1921 and
arrived in New York 33 hours and
21 minutes later. I can remember
what
a
great thing we thought it
how
we
compared
this
speedy crossing of our land with
the historic "firsts" of other forms
was,,
of
transportation
the
—
twelve
days of the Pony Express, the six
months of the covered wagon, and
daysipf the first trans¬
the seven
continental train. ,J
v
;
"
might well stand still for travel¬
Our country was recently
spanned by air in 4 hours and 13
Bought—Sold—Quoted
H. G. BRUMS & CO.
20 PineStree t,. H ew York 5
minutes and
experimentation
is loose upon the problem of send¬
ing man through space at super*sonic speeds
which will indeed
jvfC PONNELL & fO.
now
Members
Telephone: WHitehall 3-1223
Neto
Teletype NY 1-1843
*An
.
REctor
address
by Mr. Patterson
before the Hemispheric Insurance
New York Curb Exchange
Tel.
YORK
Conference, New York City, May
2-7815
14, 1946.
We Maintain Active Markets in U. S. FUNDS
Colonial Mills
POWER &
ABITIBI
Macfadden Publications
England Cn.
Com.
&
MINNESOTA
'
Bell
ONTARIO
PAPER
Dealers Assn.
&
service
alone
shape
115 BROADWAY
For
i
that
Frank C.Masterson & Co.
-
life fuller and
b 1
64
peace-
greater - the
speed of con-
W. A.
man's chances to avoid misunderr
6s/ 2000
Brill
standing, meanness, and the minor
bickering that lead to open hate.
All of the
been
Western
the
blue
-
r
GUDE, WlNMILL & CO.
Members New York Stock Exchange
1 Wall St., New
;
York 5, N.Y.
Teletype NY 1-955
DIgby 4-7060
Mediterranean,
the Atlantic to England,
galleys of the Caesars
the inland waterways of
cules up
the*
broke
dissipation of the
ring-nosed
ships
abandoned,
never
the roads were
repaired and little men set
themselves
lated
Issues
All
through the Pillars of Her¬
were
Teletype NY 1-672
Pacific 5s/46
Minneapolis & St. Louis R.R.
by
Rome, the
Empire.
The
NEW YORK 6, N. Y.
■;
7% old pfd.
Buckeye Incubator
great ages of history
with the
settled on people at¬
intolerance, evil and
cruelty; by poverty and mistrust.
Witness, for example, the Roman
Empire at its height. Roman ships
Corp.
Consolidated Film Ind.
associated
growth of various forms of trans¬
portation; and where transporta¬
tion has been allowed to stagnate,
the darkness of sectionalism has
tended
<
8
HAnover 2-9470
Chicago, Mil., St. Paul & Pac.
people in our land and
throughout the world, the better
other
have
-
YORK
NEW
ST.
Patterson
with
tact
WALL
Teletype NY 1-1140
The
e.
Members New York Curb Exchange
.»•
up
as
autocracies
(Continued
princes in iso¬
along
on page
routes
American Molasses Co.
1
-
Punta
Alegre Sugar Co.!
..
!
..
Upon
Request
FAR It &
CO.
Quotations
Members
New
120
New
Exchange
Member
& Sugar Exchange
York
Stock
York Curb Exch.
New
York Coffee
WALL
\
ST.,
Assoc.
NEW
YORK
TEL. HANOVER 2-9612
2809)
•l
FEDERAL MACHINE
Curb and Unlisted
Jefferson-Travis Corp.
Securities
Western Union Leased Line Stocks
Trading Market
Harrisburg Steel Corp.
vvr:;:
Diebold, Inc.
San-Nap-Pak Mfg. Co.
Common -;
into
it
will make his
more
City
Units
Banks, Brokers & Dealers
\_S& %.ri
Common
Tudor
& WELDER
Bowser Inc., Com.
s.
■
can
tool
a
Susquehanna Mills
a
to
and man
man,
.
'
It is
of
Members IV. Y. Stock Exchange arid Other Principal Exchanges
1127 \
Telephone BArclay 7-0100
'
in
moral
itself.
Stock
Colonial Utilities Corp.
\
is
portation
not
Common
stretching from the North Sea to
Jerusalem. Then came the decay
Goodbody & Co.
Hanover 2-4850
Teletypes—NY 1-1126
have
saved
by
speed. Trans-
Europe. More important, perhaps,
the Roman roads.— sub¬
stantial belts of trade and contact,
Canadian Securities Dep't.
Pfd.
Member* N. Y. Security
n WaQ St., N. Y. B
&
„
Central Sfetjs Elec. (Va.)
the
with
were
STEEP ROCK IRON MINES
5TeeTve«iiCompaTui
<
the
around
time you
and
BULOLO GOLD DREDGING
United Piece Dye Works
•
for
PAPER, Common & Preferred
BROWN COMPANY, Common & Preferred
Preferred
Northern Kew
do
went
Preferreds
&
zones
;
Broadway WHitehall 4-8120:
Bell System Teletype NY 1-1919
there are some phi¬
losophers who ask what'you will
sailed
Boston & Maine RR
Common
the
invariably
York Stock Exchange
|20 BROADWAY, NEW
Stamped
Members New York Curb Exchange
Of course,
a
and
Members New York Stock Exchange
ers.
of hats and hat machinery.
Bell
left
flight
night
that is not far off the clock itself
Guaranty Co.
continues to be primarily
and
day
that flight gave us all a
hinted again that the
world was indeed shrinking. But
if the world was shrinking
twenty-five
years
ago,
it
has
shrunk today, and in the future
stock in Hat
engaged in the manufacture
first coast
remember the
coast
to
Yes,
2817)
on page
Byrndun Corporation
■
Edward A. Purcell & Co.
50
approach to$>manhood, I am, nevertheless, al¬ nullify
ways a little startled at the an¬ globe.
thrill
-
Jockey Club
Although
of
the
For
Mississippi Shipping
Monmouth Park
I have spent a large portion of my life in aviation
and have watched the hurried growth of flying as a father might
the Human
Common
Chicago Corp.
of further improvements
demon¬
erations
Rogers Peet
Adams Hat
accomplishments of transportation in
recites
strated
N. Y. 1-1227
in
dun
branch offices
our
Globe Union Inc.
clearly
f
NY 1-1557
.
By WILLIAM A. PATTERSON *"
in
•
,
f t his ha s
been
WOrth 2-4230
Hat
,
La.-Birmingham, Ala.
Direct wires to
creating "a shrinking world," and gives illustrations of increase
effect
trating
line
Air
inter¬
ests. The frus-
Members
Corporation of
HAnover 2-0700
New Orleans,
President, United Air Lines
-
-field fif- "
no
litical
ownership of
25 Broad St, New York 4,1k*,.
Anderson Pritchard
function
-
fectivelywith-
Mitchell & Company
Through
Quoted
Steiner, Rouse & Co.
organization
nto and deal¬
Bell System
—
an
ing with po¬
31 Nassau Street,
Sold
international
Kaiser
Bought—±Sold—Quoted
Members New
—
Ac tuall-y,
Gasket & Mfg.
Bell Teletype
Bought
......
22.—rWith the formal convening of the Eco¬
Saturday, the United Nations will really "go to town" for a
non-political Utopia. The agenda of elaborate plans in the social and economic worlds
seemingly presages a welcome atmosphere of "escapism" from the devastating political
crises demonstrated in this converted Bronx gymnasium and lately in Paris, LuxembourgPalace.
7-Up Texas Corp.
May, McEwen &
& CO.,
HUNTER COLLEGE, New York, May
nomic and Social Council
_
Security
of
sweeping proposals regarding world trade, employment, reconstruc¬
cil and Iran situation are
Members
York
New
on
explored. Subcommittee on Spain becoming inundated
kicking each other around.
to be
Prospectus
}l Established 1920
*
definite action
take
tion, relief, raw materials distribution, statistics; and on a wide variety of social measures. Inherent
conflict with national political aims and sovereign rights is cited. Peacetime use of atomic energy
KING & KING
Nat'l
P.R.
By A. WILFRED MAY
Will
Gerity Mich. Die*
Dpyie Mfg.
*With
Thursday* May 23, 1946
International Ocean Telegraph Co.
Common
Pacific & Atlantic Telegraph Co.
-/
—
Sold
MICHAEL HEANEY, Mgr.
BOUGHT—SOLD—QUOTED
Southern & Atlantic Teleg. Co.
WALTER KANE, Asst. Mgr.
Bought
Bought—-Sold—Quoted
Empire & Bay States Teleg. Co.
■J
Simons, Unburn & Co.
Members New York Stock Exchange
Tr osier, Curries Summers
Members
74
Z5 Broad St., New York 4, N. Y.
HAnover 2-0600
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private Wiras to Cleveland
Tele. NY 1-2908
N.&* Security Dealers Ass'n
.>
Detroit
«■
Pittsburgh
*
St. Louis
bought
J-G-White 6 Company
y
INCORPORATED
37 WALL STREET
NEW YORK 5
ESTABLISHED 1890
Tel. HAaorer 2-9390
*;
Tele. NY 1-1815
Joseph McManus & Co.
.
Members New York Curb. Exchange :
Chicago, Stock. Exchange
r
39 Broadway
Digby 4-3122
•
New York 9
Teletype' NY 1-1610
-
sold
-
quoted j
Arnhold and S. Bleichroeder
INC.
30 Broad St.
WHitehall 3-9200
:
New York 4
Teletype NY 1-515
.Volume
163
Number, 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
2783'*»':
Our Foreign Lending Program
Fiscal Progress Since
By M. S. SZYMCZAK*
By
Member, Board of Governors, Federal Reserve
System
1
Monetary Fund; and (4) larger basic
gold and dollars. Cites hope for reducing
of
i
international trade barriers
as additional factor. Holds key to better.
World trade situation lies in loan to Britain, and that
Export-Import
Bank loans are for pressing need's only, and will be supplanted
I
trade.
■
<&-
3wn to pay
of
look
to
for
im¬
in
curred
rebuilding.
of
process
ports that they
must
have
their
popula¬
ever,
built
tions
to be
are
during the
kept alive, the
•damage of
the
war
their
and
indus¬
raw
of the countries and
expands their
output—it is entirely appropriate
S.
M.
ma¬
Szymczak
that
of
most
terials and set
through
functioning again.
mechanism
is
done,
the
Once this job
war-stricken
*
An
address
Bankers
loans
should >be
than
rather
such
by
of that
reason
many
in
were
current
of
| ; What
rede¬
was
ployment
the
ries
!
to
a
of
interest
only to scien¬
tists; and the
n
placed in position to
16, 1946.
(Continued
on page
-sfwt-y
Edward H. Foley
Some
of
"An
^roiect,
been
What
we're
ps
our
address
Foley-before
taken
all, would
as
Robert
a
ciation
New
Rockrite Process, Inc.
a
at
wor¬
Chairman Maritime
were
Members
39 Broadway ^.^4, ,^4
New York
HAnover 2-8970
2804)
•
Asst.
Chairman SEC,
Asso¬
1
i
nor,
.
_
-
tutions; saying solution to
Combined
Averages, may
lag
in
their
upward move*
our
"doms
;—;
free-
so
totalitarian
wide¬
invest
s w
Share
life—the freetdom
of
ion
and
freedom
rights
and
privi¬
of
and
of
from
<
want and from
man
I
has yet known.
count
handicaps
oi
the American way- of life who
seeks to
uproot
the traditional
-that have been
may go to
250,
HAnover
the
or s
h i
n
to
-
m
-in¬
So
much
stock
g
for
68
terest
at
commodities,
There
the
to
Boston
OPA which .is .a
first
The
though they
believe
that
we
but
will be due
for food, cloth-
(Continued
readers must pay
.
With all
fear.
the
hallmark
which
It
.administra¬
everyone
has
of
an
America
produced
for
and
this
rise
will
a high standard of
living unapproached
anywhere
iia
the
.
Joseph
P.
Kennedy
Teletype NY 1-84
(Continued
alien interests
on
page
Haytian Corporation
2826)
Punta
trol
would
for
substitute
incentive
personal
* Abstracted from
«
state
on
page 2813)
an
>
and
address b.v
Philip Carey Mfg.
Mohawk Rubber
Bond & Mtge. Guar. Co.
Lawyers Mortgage Co.
Lawyers Title & Guar. Co.
N* Y, Title & Mtge. Co.
Prudence Co.
iw
U. S.
Pressurelube, Inc.
.
DUNNE & CO.
Telephone. HAnover 2-4300
.
Members New
40 Wall
York
St.* N.Y. 5
Bell
Stock. Exchange
WHitehall 4-6330
:
Teletype NY 1-2033
Security Dealers Assn.
25 Broad St., New York 4, N. Y.
Teletype NY 1-5
;
WHitehall
Exchange
3-0272—Teletype NY 1-956
Private
Wire
to
Boston
H. H. Robertson
Kan.
■Parks Aircraft
City Pub. Ser.
Fuller Houses, Inc.
Conestoga Trans.
Sales & Service, Inc.
National Radiator Co.
Capital Stock
Public NatT Bank
Bought—Sold—Quoted
STRAUSS BROS.
Members
N.
Y.
Security
Dealers
.
32
Broadway
Board of Trade Bldg.
NEW YORK 4
Teletype NY 1-832. 834
upon request
C. E. Unterberg & Co.
Established 1914
Harrison 2076
-
TeiKvoe CO 124
York—Chicaigo—St. Loui*
Kansas
Prospectus
CHICAGO 4
Direct "Wire Service
New
& Trl Co.iP
Asst.
*
DIgby 4-8640
Newburger, Loeb
Susquehanna Mills
Members New York
25 Broad Street, New York
•'
3
Sugar
American Bantam Car
'
Membera New York Stock
CERTIFICATES
Sugar Assoc.
Lea Fabrics
Spencer Trask & Co.,
May 18, 1946.
TITLE COMPANY
Alegre Sugar
'
con¬
Mr. Kennedy before the Chicago
.Junior Association of Commerce,
offerings of
PREFERRED STOCKS
"
-who
M'
people will then
Public Utility and Industrial
i
&
Broadway
•
world.
City—Los
Angeles
74
Members N. Y.
Trinity Place, New York 6, N. Y.
A.Telephone:
/
4
BOwling Green 9-7400
"
>
Security Dealers Assn. ■
"
"
WOrth. 2-0200
Bell System
170
such of their "E"
High Grade
Ameri¬
cans
tors, in spite
•of attacks by
interested in
QUOTED
Members New York
Eastern
are
•
Est. 1926
lOD
enemy
We
request
on
BOUGHT • SOLD
group—al¬
the great mass of
have cashed in
;
in the minority-?—
will have con¬
that
com¬
'
Engineers Report
buyers' strike* This
partly to the fact that;
what
is,
#.
MFG. CO.
a
moment is in connection with
* ''
Chicago.
New York
}"
tinuing high prices through 1946
bring about
"
Cleveland.
AXELSON
facts.
question of pol¬
school
are.
modity
prices,—that
the
itics and not of economics.
4321
Los Angeles
economic
thought on the part of
able-thinking men. This is wholly
independent of the row over the
f.f%
616'
St., Boston 9, Mass....
Private Wires:
basic
get
St., Chicago 3
TWX CG
Devonshire
to be two, schools of
seems
TWX NY- 1-2733-4-5";
Salle
Richmond
these
on
La
Randolph 8924
I, hence, came
York, which is the
market
So.
39
*
shelter.
New
and. 1«47
prices.
My chief in¬
Roger W. Babson
to
central
2-4785
-
system of free enterprise which if
imposed upon
by unwise
to
wisely -fro
regimentation for in^
those
c
dustrials.
leges which tend to make life r
pleasure instead of a trial, thar
any other arrangement the society
opin-
worship,
of
i t
rails:
..—
dignity, our American
of life has created a greater
Way
essential to
cas
due
ment
*
dividual
ly proclaimed
The
.
of America has proven to date the
^grandest form of government devised by civilized man with respect
the
ing and
over
about
now
|
40*Exchange Pl„ New York S
Average
perhaps 250. It
The private capital economy
to
j
.j
Request
J. F. Reilly & Co., be.
am
2 0-7.
on
i
is
self-confidence in our institroubles lies within ourselves. Mr.
Kennedy urges necessity of American people being alerted to danger
<of being overwhelmed by alien political and economic "isms," if
-our freedoms and high standard of living are to be
preserved.
-
"
**
PRECISION-
•
something like 4B points above present level. Holds food prices
will remain at present level, but looks for
higher prices of clothing
and other consumer goods.
Says rising cost of building will continue for some time, but looks
eventually for a house-buyers' strike.
Calls for pride in our achievements and
'
Teletype NY 1-1203
SILVER CREEK
Savings Banks,
City, May 6, 1946.
still optimistic as to stock market
prices
and believe that the Dow-Jones Industrial
Average will go at least
to
225
and®
—
Communist regime in Russia, despite their influence over various
-sections of the American public, have anything to offer this nation.
,
6, N. Y
Secy.
National
By ROGER W. BABSON
NEW YORK CITY—I
Statesman declares neither Socialist Government of England
;
New York security Dealers Assn.
.
!
Commission
f
L J. GOLDWATER & CO.
...
Mr. Babson believes Dow-Jones Industrial
,
share
per
Prospectus
2802)
By JOSEPH P. KENNEDY*
Former Ambassador to Great Britain,
$10
*
.
Worrying
page
by
the
Mutual
of
York
us
j [Let Us Nol Pursue False Gods
r>
front?
were
on
1500 Shares of
or
;
-
We offer for sale
fact
repay
Dept.
•
i n e e r i ng J
if it
g
thinking about
the home
on
(Continued
Manhattan.
E
decade away.
a
going to pieces,, and; prices were
going to skyrocket. Some of us
were
worrying about unemploy¬
ment. Many millions of persons
was
in the years ahead.
We are al¬
ready engaged upon this lending
of
*■>'
our
WALL STREET, NEW YORK
aid
Convention
May
Obsolete Securities
99
1945 'already
about inflation. The controls
Pacific.
The atom
:
May
were we
ago?
year
talk
but
almost
seems
have
our
through
proposal for postwar'New
rocket,
a
by
very
merriment
City development.
'
f
The past year has gone
by like
had been mentioned at
be
Association,
of
York
of
lend-lease.
as
Get rid of this not-so-innocent
source
Telephone WHitehall 4-6881
Moses
ago
don<
Mr. Szymczak
by
feefore the Annual
Ohio
it
The countries that receive
coun-
will
-
must be prepared
war,
friends and associates laugh
the1 obsolete junk in'your strong¬
at
box ?
......
. •
uniform. VEDay had bare¬
ly passed. The
power
supply the goods
and
the
needed financing on a great scale.
Since this is a constructive job—
one that strengthens the economies
tries restocked
with
productive
to
re¬
paired,
its
year
us
ihe United States, which has
up
A
today
Until this has been achieved, how¬
if
-
past year.
af.er
They, will once again
have the exports necessary to pay
for the goods they need and to
service the debts they have in¬
the great vol¬
ume
able
GUYED
Do your
us that time which is crowded with events
short while passing, but long in
retrospect. This certainly ap¬
plies
to
the
4»-
themselves.
of their
means
be
:
remain.
I
will
tries
INVESTORS
seem
t
export
AND COMPANY
Psychologists tell
Most of Europe and important sections of Asia find themselves
entering the period of peace with only a fraction of their normal
They have not
adequate
LlCHTtilSTEin
-
Contends taxes, particularly on
business, have been
substantially reduced, but holds Treasury needs present scale of
revenues.
Sees need of granting foreign
loans, and concludes
though we have traveled a long way, many fiscal problems still
by International Bank loans.
Says both institutions expect to
foreign loans to private investment. Contends International
Bank obligations have sound investment qualities.
/
VJ-Day
FOLEY, JR.*
inflation.
i
transfer
H.
Treasury official notes Government revenues in 10 months after
VJ-Day declined only about 4V<j%, whereas expenditures have
been very largely reduced and
Budget is nearly in balance. Favors
policy of debt reduction through redemption of bank-held obligalions, and advocates pushing Savings Bonds sales as offset to
action of the International
abroad
EDWARD
Assistant Secretary of the Treasury
Federal Reserve Governor predicts future foreign lending will be
on a sounder basis than
following World War I because of (1)
diminished business fluctuations; (2) control of capital flight; (3)
reserves
HON.
Teletypes:
61
-
NY 1-375 & NY 1-2751
Security Dealers Ass'n
BroadWay, NeW York 6; N. Y.
Telephone BOwling Green 9-3565 ;
Teletype NY
'•
■
THE COMMERCIAL & FINANCIAL CHRONICLE
2784
Thursday, May 23, 1946
Our Policy Toward Russia
By BERNARD J. WASHICHEK*
By HON. J. W. FULBRIGHT*
Vice-Chairman of
United States Senator from Arkansas
foreign as well as our domestic policies are unsettled.
Senator Fulbright points out doubts are cast on future of United
Nations as instrument of world peace. Calls attention to suspicions
Stating
our
Mr.
Russia, due to her uncompromising and aggressive actions, and
U. S. maintain its leadership by firmness and not follow
policy of "peace at any price/' Concludes recent actions of Russia
are not consistent with a desire to bring peace under aegis of United
Nations and advocates a reestablishment of unity and strength
in our domestic affairs from which confidence throughout world
will be created to restrain Russia's ambitions within reasonable
Transport
American Bantam Car
Anchorage Homes A&B
bounds.
Assoc. Dev. & Research
Automatic Instrument
Barcalo Mfg. Co.
Bird & Son
Cinecolor
Deep Rock Oil
discuss
Your President has asked that I
the possible
into
and
forthright people could dis¬
cuss
and compare
their differ¬
ences.
I thought that the major
problem was to overcome the tra¬
neat
a
minute
-
It is
to be
positive
or
dogmatic
package.
not easy
about
ditional isolationism of this
try
and
devote
any¬
thing, but es¬
to
based
Douglas Shoe*
pecially about
foreign policy
under
Old
Pfds.
Missouri Pac.
1
Old
and
We
day.
in
of
Pfds.
Old Pfd.
Frontier Ind.
General Mach. New
Getchell Mines
Gt Amer. Industries*
Hartford-Empire Co.*
Lanova*
Mastic Asphalt
4
r
j«ifl%higan-Chemical
*;Minh. & Ontario Paper
are
J. W. Fulbright
and
tional
N. Y. New Hav. & Hart.
to¬
transi¬
a
extremely dif¬
ficult to evaluate events properly
and to formulate a definite policy.
I don't think I need tell you that
fluid state and it is
there
is
in
confusion
some
our
Capital City.
Last
or
even
six
little difficulty
summer,
what
I
thought
should be our foreign policy. The
United Nations was the machinery
discussing
*An
establishment
of
law
on
United
Nations
the
others
would, without hesitation, give it
their full support. I believed that
the great powers had endured so
much suffering and destruction at
the hands of the fascists that they
would be determined to work to¬
gether for the prevention of war.
It seemed unbelievable that, in
view of their recent experiences,
of them would run the risk of
either by aggressive action,
or by neglecting their internation¬
al responsibilities. But during the
address
by
Ful¬
Senator
bright before joint meeting of the
American Academy of Arts and
war
last few months Russia has trav¬
eled rather far along
the path of
aggression and the United States
has neglected its responsibilities
at home and abroad.
Today I
confess that I
troubled and I
it
Letters and the National Institute
find
of Arts, New
1946.
arrive
York City, May 17,
am
exceedingly difficult to
any convictions about
(Continued on page 2812)
at
Moxie
Purolator Prod.*
Upson Corp.*
j
*Dumont Electric
Corp.*District Theatres Corp.
Shops
Simplicity Pattern
^Electronic Corp.
*
fLe Roi Company
Prospectus Available.
^Statistical Study
or
Special Letter
r
on
?
Request
FIRST COLONY CORPORATION
■
his
in
and
England. A
home
Members New
52
York
Security Dealers Association
Wall Street
Teletype NY 1-2425
us
analyze
reporter asked
the words—"Paint
the whole town red"—it seems to
him
what
he
me
was
going
to
that this expression had as its
the strongly competi¬
when
he
tive spirit of rival high school
football, basketball or baseball
teams, when it is customary for
the victor to plaster every side¬
walk, billboard, wall, and even
the
school
walls, of the van¬
quished team with the winning
He
replied in
youthful
slang, "Paint
the
moment
foundation
reached home.
whole
town red, that
will
defeat
score.
them."
It
Competitive Spirit of Rival Equals
to
seems
that
me
this
Competitive
B. J. Washichek
chap
gained
something
of
American way of life that
equals
young
had
made
nation
our
the envy
the
has
of the
world.
We
blanket
advertising,
ries
the
to
tion,
West,
with
waves
we
country with
picket the facto¬
nation
the
of
the
we
a
the
from
the
fill the press with every
of slanted
we
section of whole
com¬
munities to put over this or that
plan of action.
In other words,
we
all-out to
go
achieve
de¬
a
sired goal.
of this fact
In
be
elements
rival
of
of
one
that we,
as
the
young
people, learn under the American
of life. I might even venture
to say that I
believe that this
could
considered
be
a
definition
of the American way of
life—the
competitive spirit of rival equals.
Let
examine that thought in
us
the light of the beginnings of this
nation:
Our
American
early
patriots
those
European emigrants
ardently believed that all
men are created equal.
They had
imbibed that Christian philosophy
were
who
historical
the
from
development
equality among men,
which had its beginning nearly 20
centuries ago, when a young man
of
The greatest proof
spirit
to
seems
way
news
hold mass meetings
story, and
cross
first
air
ac¬
of
a
East
appeal to
flood
we
mass
conceivable kind
greater
little
we
might say that who claimed to be the Son of God
English chap's words began to preach that doctrine in
might have been "Paint the whole a slave and master-ridden world.
world red, that will defeat them." He preached so wisely and so well,
It
fact,
seems
to me
that Russia has
adopted that slogan with an en¬
tirely different connotation of the
word "red," and it is not with this
Russian viewpoint that I am con¬
except
indirectly
only
*An address by Mr. Washichek
the Retired Business and
before
Orange, N. J., May 15, 1946.
Washichek
is
W. Benkert &
Textron Wrnts. & Pfd.
Let
a
Professional Men of the Oranges,
New York 5, N. Y.
Tel. HAnover 2-8080
by contrast with the Ameri¬
connotation.
can
for
cerned,
Vacuum Concrete
Aspinook Corp.*
to
II.
^Princess
'
i
<S>~
on
back
the
U. S. Air Conditioning
Alabama Mills*
was
way
is the recent finish of World War
Mohawk Rubber*
j
Today I am reminded of an observation made by one of the
lads who had been in the United States during the war, and
who
do
people to
and influence
our
power
any
months ago, I had
in
the
the
changing con¬
ditions
persuade
our
of first
one
young
coun¬
justice. After the first
World War, practically all other
nations joined the League and it
seemed probable that if we joined
the
tense
of which well intentioned
use
District Theatrest
Chicago R. I. & Pac.
With
his
by
condense
20
Foreign Policy.
difficult
more
to
our
exception of our labor relations, I can think of no subject
Washichek, asserting that the competitive spirit is
gooders," there is little difference between labor and capitalists in
the pursuit of happiness.
Holds we are witnessing gradual rap¬
prochement between labor and capital, and that it is only powerful
labor leaders or capitalists who have forgotten the proper function
of both is to do good to be happy.
Attacks communistic idea of
freedom as undemocratic.
Holds duty of the American way of life
is "real responsibility for needs and comforts of our fellowmen."
urges
Air Products-Unitsf
Relations,
elements in American way of life, points out that there are
different
ideals of happiness to different groups, but that, as a nation of "do-
of
Air Cargo
Public
U. S. Junior Chamber of Commerce
associated
that thousands followed Him and
became crusaders for that
suffering
to
even,
carry
(Continued
thought,
persecution
forward
on page
COMMERCIAL
The
to
suc-
2816)
and
FINANCIAL CHRONICLE
Mr.
with
intolerable
Reg. XJ. 8. Patent Office
A.
William B. Dana Company
Co., New York City.
f"
Publishers
25 Park Place, New York 8
;
!
American Gas & Pow.
Cent States Elec., Com.
Iowa Pub. Ser. Com.
j New England P. S. Com.
\ Puget S'nd P. & L. Com.
;
Southeastern Corp.
Spec. Part.
REctor 2-9570 to 9576
Sold
Bought
^Prospectus Upon Request
•Bulletin
or
District Theatres
D.
Seibert,
Great American Industries
William Dana Seibert, President
OXFORD PAPER
United Piece Dye Works
EASTERN CORPORATION
William D. Riggs, Business Manager
Common & Preferred
QUEENS RORO GAS & EL. $6 PFD.
*Thrifty Drug Stores
*Prospectu8
on
Thursday, May 23, 1946
Published
every
request
twice
a
week
Thursday
(general news and advertising issue)
Central National
Corporation
ESTABLISHED 1927
J.K.R!ce,Jr.&Co!!
Established 1908
22 East 40th
Street, New York 16, N. Y.
Telephone: LExington 2-7300
Teletype: NY 1-2948
Members N. Y. Security Dealers Assn.
REctor 2-4500—120 Broadway
Bell System
Teletype N. Y. 1-714
and every Monday
(complete statistical issue—market quo*
tation
records,
corporation,
banking'*
clearings, state and city news, etc.)
Other
Offices:
135
S.
La
Salle
Stw
111.
{Telephone: State 0613)3
Gardens, London, E. C„ Eng*
land, c/o Edwards & SmithChicago
3,
1 Drapers'
Circular upon request
Herbert
Editor and Publisher
Southwest Natural Gas
Standard Gas Elec.
*
Quoted
CTIVE MARKETS
Copyright 1946 by William B. Dana
Company
'Doyle Mfg. Com. & Pfd.
*Upson Company
Reentered as second-class matter Feb¬
^Shatterproof Glass
Di-Noc Co.
*Wellman Engineering
Central Paper
^Tennessee Prod.
Soya Corp.
^Temple Coal Pfd.
Textiles, Inc.
*Descriptive Circulars
on
Harvill Corp.
request
United Piece Dye
25, 1942, at the post office at New
York, N. Y., under the Act of Marcb
3, 1879.
ruary
Subscriptions In United States awl
Possessions, $26.00 per year; in Dominion
of Canada,
$27.50 per year; South and
Central America, Spain,
Mexico, and
Cuba,
$29.50 per year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Other Publications
Seligman, Lubetkin & Co.
c
Members New
Incorporated
SIEGEL & CO.
:
York Security Dealers Association
39
5
41 Broad
Street, New York 4
HAnover 2-2100
Broadway, N.Y. 0
>
DIgby 4-2370
Teletype NY 1-1942
Record—Mth.$25 yf,
Monthly Earnings Record—Mth... $25 yr.
NOTE—On account of the fluctuation®
In the rate of exchange, remittances tot
Bank and Quotation
foreign subscriptions and advertisement®
must be made In New York funds,
^
[Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4492
163
ms
"
.1
Prices and Rents in Months Ahead Bryans Named fo Board
111
By PAUL EINZIG
Mr. Einzig
,
ascribes rising trend on London Stock Exchange to re¬
newed wave of optimism pervading Britain. This has been aided
by Senate approval of Anglo-American Financial Agreement and
Canadian financial aid, as well as by general absence in Britain of
industrial unrest.
Says Labor Government is seen as a blessing
in disguise in some respects, and as result of British wage and
price stability, it is expected a stable sterling exchange rate will
be maintained and Britain
can
adhere to Bretton Woods and
Though claiming that price control has held the fort against infla¬
tion, Mr. Bowles points out that even with a really effective control
after July 1, it isn't going to be easy to win a final victory.
Con¬
r
v
a
last
with the aid of which she is ex¬
months.
People abroad
have
become
standing of
with the
keeping
Even
first-rate
consider Brit¬
fin¬
as
ished,
owing
her hope¬
to
less
of
state
bankruptcy
the
and
eco¬
nomic
dead-
lock
from
which,
believe,
Einzig
can
be
they
there
no
way
out. This view
prevailed
recently
until
also
in
Britain.
But defeatism is now de¬
cidedly
on
conviction
and the
decline,
the
Britain
that
will
once
from her ocean of
troubles is gaining ground.
more
emerge
The
passing of the loan agree¬
The
why
reason
loan
of
loss
without any
Empire markets
reasonable chance for
in
lies
the
of British
During the past
tional
of
balance
interna¬
the
payments that
had been responsible for the pes¬
simism
the economic
prosepcts.
If the
is
definitely
regarding
and
position
American
loan,
trade.
port
sion
vilian
for
States
Britain.
the
United
has
The
States
fears
would
(Continued
that
satisfy
demand
on page
'
,
controls
fect
which
have
been
in
ef¬
recent
.
our
.
.
first
t
o
the months ahead.
and
the
subject today.
up
since
a
six
has
you or
1939—and
lot
it
than
more
I would like.
ber—prices
But
over
American
work, May
But
has
either
we
can
by Mr. Bowles
Broadcasting Net¬
18,
Novem¬
in
came
62%
were
higher
Abitibi Pr. & Paper Com. & Pfd.
Andian National Corp.
Assoc. Tel. & Tel. $6 & 7% Pfd.
Atlas Steel
war.
1946.
they didn't stop there. They
right on up. Eggs went up
Brown Company Com. & Pfd.
Bulolo Gold Dredging
a dollar a dozen in some places.
Sugar went from six to 27 cents a
pound. The prices of some meats
doubled.
Canadian Pacific
pound.
Rents
a
the
in
stores.
But
some
Consolidated Theatres,
Electrolux
Corp.
Hydro-Electric Securities Corp.
International Utilities
Jack Waite Mining
Noranda Mines
Direct Private Wire Service
the
all
COAST-TO
for
-
Sun Life Assurance
Teck Hughes Mines
COAST
2805)
Chicago
-
St. Louis
-
Kansas City
-
Los Angeles
-
HART SMITH & CO.
Bell
32
Producing
Broadway
White &
Teletype
Company
-
San
L'AIGLON APPAREL
2075
CG
E.* CARPENTER
129
PIPER AIRCRAFT
KANSAS CITY
Pfd.
Pledger & Company, Inc.
STANDARD STEEL SPRING
LOS ANGELES
Teletype NY 1-490
Chicago
Toronto
Baum, Bernheimer Co.
ST. LOUIS
Street, New York 5, N. Y.
-
CHICAGO 4
Harrison
DIgby 4-8640
Teletype NY 1-832-834
Corporation
Philadelphia
Montreal
Board of Trade Bldg.
NEW YORK 4
Incorporated
-
1-395
Members New York Security Dealers Ass'n
E. H. Rollins & Sons
Boston
HAnover 2-0980
Teletype NY
New York
STRAUSS BROS.
Clyde Porcelain Steel
Tel. WHitehall 4-4860
i
Sherritt Gordon Mines
Steep Rock Iron Mines
52 WILLIAM ST., N. Y. 5
40 Wall
;
Minnesota & Ontario Paper Co.
Pend Oreille Mines
Cereseal Units
Vineo
Ltd. i
Famous Players Canadian
of
forget the importance of the
price of steel and other basic ma(Continued on page 2815)
us
Rwy.
Lumber
Canadian Western
Pork
chops rose to 50
Clothing prices
tripled.
in
many
cases
doubled or tripled.
Many of you remember those
price increases because you paid
them
*A radio address
Let's
war.
than at the start of the
cents
Clearly, the cost of living has
up
last
to
family would be
thought I would talk
same
the
Armistice
went
in
rents
Because I felt
your
interested I
of
see
likely to hap¬
pen to prices
Bowie*
Dominion Bank
Imperial Bank of Canada
Royal Bank of Canada
they did in the disastrous
what happened then.
At the end of the last war when
was
what's
as
inflation
and
Chester
Bank of Toronto
Canadian Bank of Commerce
since
much
in
anxious
New York
Southwest Gas
^
,
Bank of Nova Scotia
been
accumulated
substantial reserve,
thing. So far,
shape than
we were in this
period of World
War I. Under the price and rent
lot
a
shortly after Pearl
Harbor, prices and rents have
risen
only about
one-third as
know
gone
While
better
in
i al ly
particular ly
gone
ci¬
we're
been
spec
Conn ecticut
ex¬
the
gravely
handicapped by an epidemic of
strikes, there have been practi¬
cally no prolonged major strikes
been passed, place at Britain's dis¬
very
industries
requirements.
United
in
a
British
of
con-
and
—
years
im¬
been made towards the reconver¬
passed, it will, together with the
Canadian
loan
which
has
just
posal
prospects
Saving Fund Society
Bank of Montreal
one
ing
about this
And the reason
why these fears have now abated
extent
1
;
be thankful of
to
the cost of liv¬
side the Empire.
some
price
happening
deriving compensation through an
increase of British exports to out¬
months considerable progress
of
e
you
to
r o
what's
the
For it was mainly the
lack of liquid resources and the
degree.
t
in
international trade would lead to
the
prices
and
was
non-discrimination
proved
outlook
a
•
talking
about
opposed in Britain was the fear
that the
acceptance of Bretton
Woods and
our-
selves
friend
the
of Western
of Philadelphia.
same.
found
we
•
outlook.
economic
eral
elected to the Board of Managers
evening out at our house we had a visitor from back
home in Connecticut.
And, as usually happens, it wasn't long before
many
by the Senate accentuated
this wave of optimism to no slight
ment
gloomy
be about
the British opponents of the
are
now
inclined to adopt
ain
Philadel¬
The other
of
loan
this
view.
This change in their atti¬
tude may appear inconsistent at
first sight, but it is capable of ex¬
planation on the ground of the
revived optimism about the gen¬
Power.
accustomed to
Paul
rents should
pected to be once more in a po¬
sition to play a part that is in
the
ing
few
executive
the
of
down, but clothing and house
furnishing prices have had "sharp and serious increases." Says
some increases were
permitted to meet higher wage costs, and con¬
cludes that with controls continued, there will be little
change in
food prices; that clothing prices will be
kept "within reach," and
optimism dur-'®-
■
Bryahs,
tends food prices have been held
LONDON, ENG.—The rising trend of the London Stock Ex¬
change has been due to a large extent to a remarkable revival of
■>
B.
Vice-President
Stabilization
phia Electric Company; has been
reduction of Imperial Preference.
-.
Henry
By CHESTER BOWLES*
Director of Economic
pfd.
Francisco
THOMAS STEEL
Com.
Chicago and
Prospectus
Continental
Lane Cotton
All American Aviation
Mills Corp.
Bought
—
Sold
—
Quoted
J. F.
Stand. Fruit & S/S Com. & Pfd.
40
BURNHAM & COMPANY
members New York Stock
Exchange
associate members N.Y. Curb Exchange
15 Broad Street, New York 5, N. Y.
Hon Rose STrqster
ESTABLISHED
T. 1. FEIBLEMAN & CO.
74
Members New Orleans Stock Exchange
New York 4, N. Y.
41 Broad St.
&
&
Gas
Co.
$6
Pfd.
Carpet Company*
Common
Acme Aluminum
Alexander Smith & Sons Carpet Co.*
Suburban
Propane Gas Corp.*
United Public Utility
Bought
—
Sold
—
Quoted
90c
Prospectus
on
11
Conv. Preferred
||»$
.4":?
Conv. Preferred
request
*Prospectus
on
request
(
Bought—Sold—Quoted
PETER BARKEN
32 Broadway, New York 4, N. Y.
Tel. WHitehall 4-6430
Preferred
^Raytheon Manufacturing Co. f
$2.40
*
Beverage
Preferred
Alloys, Inc.||
Codv.
*Solar Aircraft Company
Tennessee Gas & Transmission Co.*
Recordograph
Common
&
^Detroit Harvester Co. Com A
Common
American
Chicago
New York
Globe-Union Inc.*
| Oil Exploration Co.
American Insulator
4321
Cleveland
Common
Eliminator
Preferred
Electric
Master Tire & Rubber
Carbon Monoxide
Boston 9, Mass.
Los Angeles
Firth
1-2733-4-5
Private Wires:
NY 1-375 & NY 1-2751
Boston
Getchell IVIines
NY
St., Chicago 3 >•.TWX CG 6X6
Richmond
Bell Tel.—NY-1-493
Raulang
TWX
Salle
Devonshire St.,
68
Teletypes:
Consolidated
Baker
La
Randolph 8924
Trinity Place, New York 6, N. Y.
BOwling Green 9-7400
Reilly & Co., inc.
2-4785
So.
39
Bo. 9-4432
telephone: HAnover 2-6388
Request
Exchange PI., New York 5
HAnover
1914
Telephone:
New Orleans 12, La.
Carondelet BIdg.
on
Common & Preferred
Jeff. Lake Sulphur Com. & Pfd.
Airlines, Inc.
Bought—Sold—Quoted
American Bantam Car
TEMPLE COAL PFD.
Southern Airlines, Inc.
Tele. NY
1-2500
FREDERIC H. HATCH & CO.,
HARRISON, & SCHULTZ
64 Wall
St., New York 5
Established 1888
MEMBERS N. Y. SECURITY DEALERS ASSOCIATION
3
Phone HAnover 2-7872 Tele. NY 1-621
Reynolds & Co.
;
f Members New York Stock Exchange
120
Broadway, New York 5, N. Y.
*
Telephone:
63
WaU
Street, New York 5, N. Y.
Bell Teletype NY 1-897
■■
*
REctor 2-8600
•
^eiTTeietypr NYl-635
■;
"'
«».n—I".'.
2786,
THE
COMMERCIAL & FINANCIAL CHRONICLE
Thursday, May 23, 1946
■li:v L: \V&&,
The
Meaning of Citizenship
By HON. JOSEPH II. BALL*
By
United States Senator from Minnesota
of our obligations and duties of citizenship as of our rights and free¬
doms, Senator Ball holds it is incumbent on citizens to uphold rights of others as well as their own
rights. Points out our political system is freedom under law applying equally to all citizens, and
attacks labor leaders that "abridge the sacred right of all citizens to work" and mistake freedom for
Asserting
should be
we
as aware
Cautions if freedoms
license.
control
more
over
It is well that
we
our
of
citizenship under our system 'of
Our nation is facing
| government.
T many
grave
V-
,
1
-
The
.
I
.•
the
1
U. S
a
lic.
the
if
repub¬
not have a pure de¬
where the people decide
directly and the majority
issues
is
is
final
absolute.
and
representative
a
democ¬
wherein the people govern
through elected representatives.
racy,
Senator
only
Jos.
H.
Our
Ball
Government
stitutional
great
of
representative
a
decision
find
majority
Govern¬
.We do
Ours
proper
solutions
i
Our
mocracy,
country
•are
at
stake/
in .many
of
these - issues..
will
statement.
ment .is
dignity of citizenship in
Government as
That is not an ac¬
our
democracy.
curate
freedoms and
We
Representative Republic
a
We speak of
rights,
the
thinking only of the rights
privileges of citizenship in
this country and to have forgotten
future
this
"
and-
and freedoms.
safeguarding
and expansion
of
be
to
entirely .the obligations and duties
that go with those same rights
*
,
both/
| ijnter national
i and domestic.
[issues,
'i
with proper restraint Government will have to
gradually curtail freedom of all of
is
also
con¬
a
Neither
democracy.
Congress, the Executive,
nor
the
keenly Courts have absolute power in
obligations
andjtheir respective jurisdictions
duties of citizenship as we are of
They are limited to the powers
our rights and freedoms,
specifically granted to them in the
of
aware
I
are
us
as
the
believe
it
is
fundamental
in
system that unless most of
our
us
Constitution, and
in the
even
ex¬
ercise
of those powers they may
our duties and obliga¬
not encroach on the rights and
rights and freedoms as freedoms of individuals guaran¬
citizens will not long survive our teed in the Bill of
Rights.
The
failure.
Unfortunately, far
too framers of our Constitution were
many
of
the
most
vociferous convinced, I believe
rightly so,
groups in our society appear today that too
great concentrations of
do
fulfill
tions,
address
read
political power are dangerous to
a bare majority
for
Senator
freedom, and that
Ball before the National
Confer¬
can
ence
Citizenship, Philadelphia,
May 18, 1946.
on
be
lute
some
as
tyrannical
monarchy.
instances in
as
We
an
abso¬
have
seen
Europe where
a
an
Mr. President, as we take up today legislation to provide-the
machinery to obviate the industrial disturbances which threaten the
peacetime re- ?>
—
:
wrote, into it only limited powers,
—jalso to include an examination of
covery of this
and
protected
individual rightp
activities - of
the
executive
even against those
nation, partic- the
powers of Gov¬
u 1 a r 1 y
the branch of this government in the
ernment. Then they provided tha't
the
Constitution
could
not
coal
be
except by vote of twothirds of both Houses of Congress
ratification
and
of
the
by
mind
and
that
of
it
man's
of
overwhelming and not merely a
bare majority of public
opinion
in support of the action
finally
not
is
the price we
pay
for freedom and democracy.
what¬
we
are
one
but
that
we
legislate
to
by
man
are
honestly
If
the
do
we
not
as
job
thoroughly
temporary expedi¬
a
deliberations
will
in¬
ency
our
tial if our "system is to meet effec¬
clude
an
tively the great challenge it faces
today.
One is that our people
Labor Relations Board and drawn
I
believe two
know
things
facts
the
sides of every
are
essen¬
hear
and
examination of the Wag¬
Act, setting
more
less in favor of
or
of
is political
ment
ing
the
fairness,
leadership that is will¬
really
give
leadership,
to
based
the National
up
both
The second
issue.
ner
one
population.
seg¬
In
deliberations
our
principle,
following whatever
appears to be the majority opin¬
ion of the moment. Unfortunately
(Continued on page 2814)
applied to peace-time conditions.
No matter what law we pass in
this
body, if the President of the
refuses to use that
United States
law, or allows it to be used as a
conditions
There
*Speech
the
floor
Senator
by
of
all
Willis
or
no
John
L.
Lewis
who would de¬
when
one
able
is
dramatizing the dan¬
the law
which exists under
ger
man
a
or
legally
of men
threaten the
group
to
American
people in their funda¬
right to "Life, liberty and
the pursuit of happiness."
mental
But let's
Lewis is
get this clear. John L.
doing only what the Wag¬
labor
law
Democratic
under
has made
it
ble for him to do. When the
legislation
this
let
the
there
Democratic
was
and
Wag¬
being forced
our
people
companion
not
majorities
(Continued
forget
overwhelming
were
Houses of Congress.
HAWAIIAN SECURITIES
possi¬
Act and other nationally one¬
that
AND
HARDY & HARDY
for
man
past months—and in other years.
He is merely
body,
Quoted
Private
re¬
liberately
cause
the
industrial
and the economic waste
which he has caused during the
through
Direct
brief
other
any
ner
1946.
PACIFIC COAST
—
of
body and in much of the public
press, about John L. Lewis.
I
hold
sided
Sold
lot
a
on
13,
Standard Aircraft Products, Inc.
—
been
have
administration
Senate, May
the
the
want it to remedy.
we
criminations, during the past two
weeks, both on the floor of this
ner
than
by one group or another,
weapon
then the law will not remedy
ought
fundamental
on
disturbances, to see if we hatfe
learned anything which could be
tie-ups
fairly for the whole nation.
and
Fundamentals
in
pass
any
action
attempting
and
we
dignifying
specific
Political Leadership Based
on
not
administration of labor
war-time
that
are
that
legislation
ever
That
plain
acting hastily,
public
discussion which have built up an
taken.
make
Willis
E.
R.
people.
us
we
Sen.
or
segment
our
Let
generally
years
and
not for this
Our rules cannot be
sometimes
legislating
the public
welfare
not made except after months
are
we
for
The resulting system of checks
and
balances
does
slow
down
one
in
that
are
They were taking
no
chances on the liquidation of
individual freedoms by
a
bare
majority.
changed by a stroke of
pen.
Major decisions
keep
us
firmly
three-fourths
States.
government.
strike,
let
amended
rather
Bought
*
effective tyranny.
The statesmen
who
framed
our
Constitution
our
*An
assume
majority has. established
Senator from Indiana
responsibility for the recent serious industrial
tie-ups to the "one-sided" legislation embodied in the Wagner
Labor Relations Act. Says venting spleen against John L. Lewis
or mine
operators is ineffective, but cautions against enactment
of hasty anti-labor legislation. Holds present disturbed state is
direct result of complete lack of action by President who could
have used power of his office to break strikes.
us.
bare
S.
Senator Willis lays
should reexr^-
today the essential meaning
♦
hot exercised
are
activities and
HON. RAYMOND, E. WILLIS*
U.
-
page
on
both
in
Let the peo-
2807)
Wires
Cedar
Richmond
DEAN WITTER & CO.
Works
'
Tennessee Products
MEMBERS
11
NEW YORK STOCK EXCHANGE
Teletype NY 1-960
SAN FRANCISCO STOCK EXCHANGE
HONOLULU STOCK EXCHANGE
Broadway, New York 4, N, Y.
LOS ANGELES STOCK EXCHANGE
Telephone BArclay
SAN
Victoria Gypsum
WALL STREET, NEW YORK
14
WHitehall 3-4490
FRANCISCO
LOS
American Vitrified Products
7-4300
Washington Properties
HONOLULU
ANGELES
Commodore
M.
TO INVESTMENT DEALERS
Upon
request
we
will
supply
THE BUTTERICK
circular
ML
descriptive
COMPANY, INC.
FOR
per
Stonecutter Mills "A"
GENERATIONS
&
"B"
*Can. Western Lumber Co., Ltd.
White
H. D. KNOX & CO.
11
for
Inactives
MAHER & HULSEBOSCH
Brokers
In
George A. Rogers & Co., Inc.
1
42
Broadway, New York, N. Y.
Hudson
1926
Securities
Teletype
NY
4-2422
Branch
113
8950
Tele. BS 169
New York 5, N. Y.
Telephone
WHitehall
Montgomery St., Jersey City, N. J. I
Tel. Capitol
Dlgby 4-1388
Tele. NY 1-86
Established
Dealers
&
Investment
62 William St.
27 Slate St., Boston 9
Broadway, N. Y. 4
Tel.
Claybaugh & Co.
Beach
request
Laboratories
Members Philadelphia Stoch
Exchange
Harrisburg-Pittsburgh-Syracuse-Miami
on
Bought—Sold—Quoted
Cash
52 WALL ST., NEW YORK
5, N. Y.
WHITEHALL 3-0550
Tele. NY 1-2178
Felt Co.
Clayton Silver Mines
W. & J. Sloane Com. & Pfds.
stock is presently procurable at only 3 times annual
share and the Company is in splendid financial condition.
Blair F.
American
Standard Gas Equipment
The preferred
earnings
Nazareth Cement
S. B. Penick
*Circular
KNOWN
Hotel
Rhodes
V.T.C.
of
Manufacturers and Publishers of Patterns and Publications
NATIONALLY
Steep Rock Iron Mines, Ltd.
Boorum & Pease
our
H.
1-2613
Office
St., Jersey
City, N.
J.
Philippine Mining Stocks
Atok
SEMINOLE OIL & GAS CORP.
A
Linn Coach & Truck
Expresso Aereo
*Kinney Coastal Oil
Equity Oil
Super-Cold Corp.
PROSPECTUS ON REQUEST
Mindanao Mother Lode
Utah Southern Oil
Quotations
Bought
F. H. KOLLER &
CO., Inc
Members N. Y. Security Dealers Ass'n
111
./^BArclay
Sold
—
Quoted
R. C. ILSLEY &CO.
Member of National Association
BROADWAY, NEW YORK 6, N. Y.
7-0570
—
NY 1-1026
of Securities Dealers, Inc.
64
Wall
Street, New York 5
HAnover 2-1140
Mining
Benguet Cons. Mines
Big Wedge Gold
Common Stock
Producing Company
Balatoc
*Circular
on
request
and information
Furnished
on
Request
JOHN J. O'KANE JR. & CO
JAMES M. TOOLAN & CO.
67 Wall
Street, New York 5
Telephone
HAnover
2-9335
Teletype NY 1-2630
Established
1922
Members N. Y. Security Dealers Ass'n
42 Broadway, New York
Dlgby 4-6320
Teletype NY 1-1525
.Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL
CHRONICLE
Customers' Brokers Urge Restoration of
•
rather
in
Hold iit unwise to wait in removing restraints until securities
kets are declining because of
psychological aspects.
letter
Association
to
the
of
members
Customers'
of
the
Reserve
tern
in
Brokers
Board
of
has
sent
Governors
the
Of
,
| that
"We
re-
among
and then from 75%
urge that the
Federal
Re-
the
Board
formulate and
the
difficult
continue
it
to
either
is,
rising
a
75%
to
tions
Johnson of
Colorado,
Millikin, and
McCarran, in-
the
past
d
that
because
a
believe
we
to
than
declining, the effect is
be detrimental rather
beneficial
chology.
investor
to
psy¬
We wish to remind your
ment,
series of recommendations
a
laid down for countries desir¬
ing capital imports.
These rec¬
ommendations,
stated
in
order,
are
board of the increased liquidation
Legality, equity and good faith
reduction in
ment of
Reserve
rediscount rate in 1929.
"We
believe
ample
precedent
for
titude
the
in
But the individual at¬
each
of
capital-importing
country will be determined large¬
not
be
ation
a
rection of its social and
will
development.
"We have
in mind
certain
sug¬
which
shall be glad to present
we
to your board if you so
desire."
In commenting on this letter,
Donald C. Blanke, President of
the Association, stated:
"Our
association,
through its
executive
committee,
has
sub¬
mitted
this
proposal to the Fed¬
eral Reserve, because we are defi¬
nitely
worried
about how the
markets
will
act
the
in
event
of
We would like to
now
to
dumping stocks
as a
misinterpretation
action
on
steps taken
see
public from
the
prevent
result of any
of
government
margins.
"It has been
a
long suffer the
foreign interest
Earned
first
President
only
ex¬
the
of
security and
their
remuner¬
investment
the
to
if
it
is
economic
development and social welfare of
country.
be to
In
the
the
long
run
it
advantage of all if
of any
tends to
presence
which
dertakings which not only
a
direct
further
return,
which
but
balanced
assure
also
and
properly
diversified economic development.
a
Concerns
in
engaged
primary
production should seek, whenever
possible,
to
develop processing
complementary industries. If
foreign enterprises established in
and
econ¬
Foreign enterprises and invest¬
Whenever feasible,, foreign en¬
terprises will be well advised to
distort
or
which
or
controlled
fluence
and
an
un¬
in¬
preponderant
the
over
governmental
exercises
national
omy.
ors
will,
in
have in complying
in spirit with the
they
letter
and
domestic
which
doubt, appreciate the
no
interest
laws
they
no
advantage
of
do
the
nothing
ered
as
country
business
illegal favor
from
regard
they
an
do
officials.
their
will
early
encourage
participation
of
domestic interest-in their business
by facilitating, for instance, the
purchase of some of their equi¬
ties
of
securities
and
the
by
The
country.
residents
association
between foreign and domestic in¬
terests should be not merely for¬
be
1946.
F i t
has been referred to"
z
g e
the
an
silver
full
eign enterprises engage local
(Continued
on page
ex-
to
will be Chair-
understanding
compromise
plied
Committee,
the
that
legislation
opposed
ceilings on
the
Farwell, Chapman & Co.;
Tennis, Frederick W. Johnston,
Emig,
the
Mullaney, Ross & Company; Tro-.
The
phies,'Harris E. Wilder, The 1111—|
nois
Company;
Indoor
Sports,:
to removal of price
silver by legislative
transaction
The latter it does
That it would
have
James P. Jamieson, Glore, Forgan
on
it would
would
sent to 90.3c
as
ury
silver should
dustry
the
and
mints
sold
price
would
be
hereafter with
constitute
no
baseball
and
the
principal
con¬
athletic j
of ;
other
by
a
special attractions featured
carnival and
an
exhibition of
against
170
of
in
1946
An
1945
j
outing will last all day, including
]
luncheon and dinner.
time limit.
2827)
Pacific
interesting "liquidation"
Coast
Our revised
Hawaii Consolidated Railway
Selling under 10
Statistical
Study
on
Request
now
the hours of 10:00
Pfd. A
PETER BARKEN
-
Circular
upon
a.
are
m.
the New York Stock
A
request
in New York Stocks
Trading
Directory of stocks traded
available. There
COPY
on
219 issues traded
and 6:30 p. m.
Exchange
WILL
BE
or
Pacific Coast
on
Exchanges is
these exchanges between
(EDST) that
are
also traded
on
the New York Curb Exchange.
MAILED
UPON
REQUEST
32 Broadway, New York 4, N. Y.
Tel. WHitehall 4-6430
Tele. NY 1-2500
Kaiser sl Co.
E. F. Waterbury & Go.
ESTABLISHED 1937
"
MEMBERS
25 Broad
United States Government
SAN
Street, New York 4, N. Y.
Telephone:
BOwling Green 9-0844
Teletype:
NEW
YORK
FRANCISCO
SAN
NEW YORK
STOCK
STOCK
EXCHANGE
EXCHANGE
•
•
LOS
NEW
YORK
ANGELES
CURB
EXCHANGE
.STOCK
EXCHANGE
SEATTLE
FRANCISCO
SPOKANE
NY 1-1909
and
State
Municipal
Railroad, Industrial
Public
Utility
Merchants Distilling
BONDS
Common Stock
Investment Stocks
Bought
•
•
•
Sold
*
A. S.
Rights
•
•
•
Campbell Co., Inc.
Common and Preferred
Quoted
Analysis
on
request
HETTLEMAN & CO.
.
Members New York Stock Exchange...
68 William St.
Boston 10
New York 5
Knowledge
•
.
.
201 Devonshire St*
.
Experience •
jor Investors
Facilities
Members
New York Stock and New York Curb Exchanges
ONE WALL STREET, NEW YORK 5
Telephone: HAnover 2-7530
.
Teletype: NY 1-2122
New York Hanseatic Corporation
120
Telephone:
BROADWAY, NEW YORK 5, N. Y.
BArclay 7-5660
j
t
expert swimming and diving. The
460 per share in
quarter
will
events. There will be a number
silver
_
j
tennis
Golf,
at which
opened to
domestic
I
Co.
Treas¬
to in¬
years
be
Co.; Refreshments,
and
the price at which
during the next two
Cruttenden, j
Henry W, Meers, White,.Weld &:
encourage
reluctantly
&
Raffle j
Co.;
W.
Walter
and
ad¬
ditional speculation. The Treasury,
however,
&
Fuller
A.
Cruttenden
those who
hoarding silver
impede reconversion;
that
liam
Prizes,
two grounds:
reward
f
Co.; Raffle, W. A. Fuller, Wil-i
&
silver.
on
been
thus
and
tax
F. S.
A. 3
Moseley & Co.; Golf, Howard
exception to the general OPA reg¬
ulations, and opposes the removal
of
M. Delafield,
Corporation;-
Boston
Baseball, Robert P. Walker,
Treasury has also written that it
is
Corp.; Enter¬
Richard
First
The
Savings
&
Securities
Webster
tainment,
an
raise
oz.
E.
Howard
Burgert,|
Bank;;
Dinner, Robert G. Mead, Stone &
Trust
Harris
amendment, has re¬
it is opposed to any
which
would,
even
though only gradually,
.J
Woodward
rangements,
above-mentioned
price of silver to $1.29 an
-,
Company;
waukee
on
for
Loomis
Buhse, Hornblower & Weeks; Har-I
old A. Talbert, Blyth & Co., Inc. J
The following will be Chairmenj
of the various Committees:
Ar-J
ing been asked by Senator McKellar, Chairman of the Senate Ap¬
on
S.
by three Vice Chair*
Johanigman, The Mil¬
assisted
be
men—S. E.
tives have not been successful.
The Treasurv Department, hav¬
opinion
John
of the
affair. He will
the rider with the
necessary mem¬
bers of the House of
Representa¬
propriations
in
mittee
charge
Treasury
Appropriations Com¬
Apparently the informal
satisfactory
the
of
General Com-
at
efforts of silver-states senators to
obtain what they would
regard as
a
raid,
Harriman
raan
this writing
the
J.
e r.
Ripley & Co.,.
Senate
newly-mined
the
Jr.,
Department appropriation bill is
still awaiting the decision of the
the
in
At
ounce.
rider
Harmony
be promoted if for¬
May 2,
industry of Treasury silver
mal, but effective and bona fide.
consid¬
interference
11
bill
of
Senator
Green
of
Rhode Island,
authorizing the sale
$0.7111
.
a
the
to
Lake
Forest.
n
Banking and Currency
Committee, which has before it
it that
may
Knollwood
Club,
the Senate
special
to
see
in
or undue
public
to
in
and
a
i
Friday,.
7,
at
June
W
on
f
o
■
outing will be
on
was
published
.
Chronicle"
mittee.
can
country follow a consistent pol¬
icy of reinvesting part of their
profits in the country, this policy
is likely to prove beneficial to all
parties concerned.
obstruct
action
Having
Common
pre¬
to treaty obligations and in¬
No country will
position, they will
American Insulator Corp.
to
country
any
ternational law.
seeking
matter of general
of
concern
keep the direction of government¬
al policy free from foreign con¬
trol and interference, subject al¬
large volume of liquidation.
any
natural
its national integrity and to
ways
the
investors place their funds in un¬
self-governing
serve
they
to
impossible to fill.
or
contribution
quirements before such action
a
detrimental
tc
pect to receive fair treatment thai
assures
the
is
It
interests
which
Foreign investors
country and by the stage and di¬
economic
to
other party
ly by the special interests of ihe
It
domestic
(<a,
The measure
should
investors
and
induce
affairs.
contracts
of policy in this vital
inasmuch as you stated
your intention to raise margin re¬
gestions regarding the method of
lowering margin requirements
the
romise! the
Club. The
p
the text of
Murdock
,
Company,'.'1
Senate App ro priations
the
saying that foreign
conclude
matter,
taken.
national
enterprises
statement
was
of
without
goes
treat¬
foreign investment by all
countries.
board has
an advance
your
cardinal
be
conduct
know
follows:
as
should
Federal
Private Foreign Invest¬
on
which followed announcements of
the
of Chicago are announced
by John S. Loomis, the Illinois-
reached in. the
^
report by the special Joint Com-w—
are
are
Club
iden¬
which
In a pamphlet entitled "Conditions of Private
Foreign Invest¬
ment," recently issued by the League of Nations and constituting a
kets
likely
CHICAGO, ILL.—Plans for the:
Field Day of the Bond
Annual
$1.29
This
is
com
Abe
League of Nations publication makes recommendations to countries
that seek import of capital.
Urges equal and fair treatment that
assures security and remuneration to
foreign investors.
mittee
a
a
proviso.
-
pronouncement is
delayed until the securities mar¬
such
taining
con¬
subcommittee,
suggesting
public
if
if
Investors
the
for
that this
matter
receive
your
immediate
consideration and your decisions
made
doubt
we
bill,
(S. 2206),
in
they
tical with
securities.
are
and
silver
helped
never
Chicago Bond Club to
Hold Annual Field Day
trod uceda
will now."
date,
*
"We
have
measures
mar-
,
WASHINGTON, D. C., May 22—On May 16, Senator Murdock of
Utah, in behalf of himself and Senators Hayden, McFarland, Taylor,
bill
purchase
and sale of
feel that
the risk of alarming the
public by some sudden announce¬
ment during a market break. Such
more
on
rediscount
we
; running
become
orders
the
fruitless,
proposed by Senate Ap-;
propriations Subcommittee, that proposes raising silver price to
$1.29 an ounce. Treasury has indicated its opposition.
confidence among holders
of securities.
Otherwise they are
program
accommo
Blanke
expe¬
announced plan now would
and policy for
restoring
margin acC.
our
create
100% that
declining
or a
After
earliest
possible
Donald
The Senate "Silver Bloc" Bill
Bill identical with compromise measure
of
lowering
by
some
to
therefore,
execute
amount
at
announce
a
markets
thinner;
to
the
ing
members
been increased from 50%
spectfully
serve
a
1929, when efforts of the
Reserve to halt the sell¬
rate proved
since the margins have
ever
witnessed
we
Federal
Federal
our
to
traded.
rience in
—
comment
relation
shares
mar¬
following
the
Sys-«»
Wash-
ington:
February
sharp decline which was
biggest break on record
about the
Margin Trading
The
In
ket.
2787
>l
Teletype: NY 1-583
THE COMMERCIAL & FINANCIAL CHRONICLE
2788
Thursday, May 23, 1946
to.
Keane & Go. !s
FrancisG. Lauro to Be
Patterson Rejoins Boettcher
Opening in Detroit
Eric fi Drevers Partner
Patterson has rejoined the trading
1
DENVER,
DETROIT, MICH. — Keane &
Company is opening offices in the
Penobscot Building to engage- in
Francis
mitted
G.
will
Lauro
be
ad¬
to
partnership in Eric &
Drevers, 115 Broadway, New York
the securities business.
Partners City, members of the New York
Stock Exchange, on June 1st.
Mr.
are Jerome E. J. Keane, general
partner, and Annette D. Keane Lauro, who holds membership on
Exchange, was formerly a
and George E. Sheldrick, limited the
partners. Mr. Keane was formerly partner in Matheson & Lauro,
which will dissolve as of May 31st.
with Stoetzer,
Faulkner & Co.
Edward Leo Nesbitt, member of
Prior thereto he was partner in
Keane & Co., which did business the Exchange, will retire from
in Detroit for many years as a partnership in Eric & Drevers on
member of the Detroit Stock Ex- May 31st.
change.
■
Boettcher & Co.,
Street, members
of the New York Stock Exchange.
Mr. Patterson has been serving in
of
department
828
Seventeenth
By HENRY BRUERE*
President, Bowery Savings Bank
the U. S. Army.
Mr.
Garvin, Bantel to Admit
are
Electromaster, Inc.
Prospectus
furnished
Emerson Drug
Common
T
Monumental
Life
Ins.
Co.
Report furnished
of Baltimore
Noxzema Chemical
& Dolphyn
Members
Exchanges and other leading exchanges
CALVERT
Bell
Bag & Paper
Common
ST., BALTIMORE 2
Detroit
Corporation Com.
Wringer Co. Com.
So. Colorado Power Com.
request
Mercier, McDowell
STEIN BROS. & BOYCE
Members New York & Baltimore Stock
on
Stock
BOENNING & CO.
1606 Walnut
Private
Phone
PH 30
to
COrtlandt
Buhl Bldg., Detroit 26
Cadillac 5752
St., Philadelphia 3
Pennypacker 8200
Exchange
N. Y. C.
7-1202
the
$12 % billions of Treasury issues
r e a sury, as
has their pro¬
and sold two billions of war 'bonds
gressive
from
T
to the public,
positors.
increase
loans
ernment
war
t h,
ghout
r o u
the
banks
in
emer¬
1941,
May,
when
sale,
BOSTON
Easlera
Racing
194 5,
Stix & Co.
ACCURATE
Inquiries Invited
St.Louis l.Mo.
Monmouth Park
white, noble & co.
Ocean
Members Detroit
Stock Exchange
Hampshire
Jockey Club
Members St. Louis Stock
Exchange
Girdler Corporation
Wiley Bros.
INCORPORATED
Louisville
Gas Fref.
Winn & Lovett Grocery
MILK
STREET
BOSTON 9, MASS.
HANcock
8200
Teletype BS 424
N. Y. Telephone CAnal 6-8100
™I BANKERS BOND ££
Stocks
-
Bonds
Incorporated
1st
Floor, Kentucky Home Life Bldg.
Nashville, Tennessee
Long Distance 238-9
In
one
sense
Gruen Watch
insist
others.
their
found
our
Memos
Submarine Signal
Dayton Haigney & Company
)$ Federal Street, Boston 10
Private New York Telephone
REctor 2-5035
on
Light
Utah-Idaho Sugar
Request
BUCKLEY BROTHERS
these
policies
and
Perhaps, as
the
articles
are
its
concern
no
of
our
of
13 States
confedera¬
anything
but
"f or eig n."
Read
Ciano's
members
of
if
you
which
power
one
veto
are
doubt for
New York
Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone-—WHitehall 3-7253
Wire System between
solid
ESTABLISHED 1899
160 S. Main street
Salt
BELL
Lake City
SYSTEM
Utah
1,
TELETYPE
SU
464
Philadelphia, New York and Los Angeles
one
try
are
holds the club of
see
no
other
security
or
free¬
secession.
York
to
Everett
and
held
N. Case
others, includ¬
ing America. Perhaps one day we
will recognize the tragic absurdity
of a concept of national sover¬
eignty which denies this patent
for
basis
Imagine
coun¬
of vital
fact, thus permitting each nation
DES MOINES
world society over
a
I
dom.
concern
& COMPANY
no
or
moment that
in
Edward l. burton
Walnut Street, Philadelphia 2
Private
its
that
totally inadequate and pro¬
ceeded to adopt our scheme of
federal union, so the nations of
the world may recognize and im¬
plement their common interests as
concerns
Utah Power &
Amalgamated Sugar
Members New York, Philadelphia and
Los Angeles Stock Exchanges
1529
relations
Diary
Company
Midland Utilities
England Lime
our
tion
on
developments
New
involving
affair,
own
im¬
pact
Public Service
Hollingsworth & Whitney
it is unfortunate that issues
to
lives
Megowan-Educator Food Co.
City,
2799)
with other nations should be lumped together under the title "foreign"
affairs.
It
is
in
SALT LAKE CITY
PHILADELPHIA
Boston Edison
New York
on page
Colgate University
to realize that
Bell Tele. LS 186
TRADING MARKETS
Texas
(Continued
terribly im¬
portant for us
LOUISVILLE 2, KENTUCKY
Bangor Hydro Electric
bought
President of
Merchants Distilling Co.
31
*An address by Mr. Bruere be¬
the National Association of
fore
Educator, in reviewing foreign and domestic policies, sees no solid
basis for security or freedom with veto provision in United Nations
Charter. Points out thai in domestic affairs we have permitted
creeping paralysis to invade industrial plants as well as halls of
Government. Says stalemate in American production caused by
strikes is a body blow to American prestige, to recovery in Europe,
and to hopes for a peaceful and democratic world.
Holds a sound
national policy should cut through special interests and that labor
needs outspoken criticism, but cautions against hasty anti-labor
legislation. Contends present wage policy is a tragic setback in
struggle against inflation and unemployment.
American Air Filter
Inquiries invited
and
Teletype GR 184
American Turf Ass'n
Bought—Sold
creditable
By EVERETT NEEDHAM CASE*
LOUISVILLE
Rockingham, N. H.
banks
effort of the
war
is
Wanted—A National Policy That
Cnts Through Special Interests
NASHVILLE
New
banks
Savings Banks,
May 1;3, 1946.
Henry Bruere
the
RAPIDS 2
MICH. TRUST BLDG.
Side, N. J.
Pont, Homsey Co.
underwood & Underwood
GRAND
Phone 94336
dii
Copyrighted by
Loan
closed,
the
increase
the
of
STREET
Downs, Mass.
Jockey Club
War
by
SECURITIES
DEPENDABLE
509 OLIVE
Suffolk
when
Eighth
drive
INVESTMENT
Assoc.
the
times
period
savings
December,
Michigan Markets
23
was
the
Gov¬
States
owned
The national
put on
through
were
bonds
War I.
defense bonds
GRAND RAPIDS
United
in
1917-19 when
they made an outstanding contri¬
bution to the financing of World
gency.
ST. LOUIS
including their de¬
In these four years the
sup¬
port of all the
From
Teletype BA 393
such
our
situation
and
Texas
veto.
a
if New
California
Imagine our
(Continued on page 2797)
♦From
an
address by President
Case at commencement of Elmira
College,
Elmira,
N. Y., May 13,
1946.
TRADING MARKETS
WKEELOCK & CUMMINS
Dealer
Inquiries Invited
Botany Worsted Mills pfd. & A
INCORPORATED
Empire Steel Corp.
Iowa Power & Light Co.
Preferred
Preferreds
and
EQUITABLE
DES
BUILDING
MOINES
Phone 4-7159
Common
9,
IOWA
Bell Tele. DM 184
FOB
MINING
STOCKS
HELP WANTED
•
POSITIONS WANTED
common
Penna. Engineering Co.
Sioux City Gas & Electric Co.
Preferred
UTAH
Vinco Corp.
Warner Co.
for
BROKERS and DEALERS
com.
Sterling Motor Truck
United Light & Railways Co.
com.
So. Colorado Power Co.
OTHER CLASSIFIED ADS
com.
H. in.
*
In the sale of war bonds the mutual savings banks of the nation
acquitted themselves with distinction winning repeated and cordial
r e c o g nition
Tele. DE 507
New York Telephone Rector 2-3327
[
are
charge of their responsibilities and opportunities as custodians of
$15 billions of entrusted funds. Defends competitive system of
private enterprise.
in
American
Manufacturing Corp.
.•
administration.
affected by policies affecting nation's economy and
urges
them to conduct studies and take action appropriate to fullest dis¬
Marathon
Sheller
-
v.
Southern Advance
debt
Says savings
banks
interest
current
a
request
on
Davis Coal & Coke
v
have
directly concerned with national
are
Sees need of wider savings bank investments and advocates
expan¬
sion of FHA mortgage holdings
by local banks.
in the
ney W. Moss to partnership
firm on June 1st.
tied to fiscal fortunes of National Government and there¬
now
fore
Exchanges, will admit Sid¬
Curb
Bruere, in calling attention to rise in savings banks Federal
holdings to 63% of their assets, points out these institutions
debt
Garvin,
Bantel
&
Co.,
120
Broadway, New York City, mem¬
bers of the New York Stock and
We
Bayway Terminal
6 S.
L.
DETROIT
BALTIMORE
•
COLO.—Donald
Established
Byllesby & Company
PHILADELPHIA OFFICE
Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717
Tele. PH 73
1898
W.H. CHILD, INC.
Members Salt Lake Stock
BROKERS
Exchange
T
Stock Exchange Building
Salt Lake City, Utah
Teletype SU 67
Phone 5-6172
SEE INSIDE BACK COVER
Volume 163
1
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4492
Will Bank for International
World Famine Situation
J
Staff of Ira
By HERBERT HOOVER*
food situation and asserts hunger
hangs over one-third of world population. Holds situation caused
by war and drought will add to evils of famine, pestilence and
death, and additional disasters in destruction, revolution and fear.
Sees much to criticize in management of famine relief, and calls
for drastic reorganization.
Points out that though mass starvation
does not yet exist, there is prospect of a serious cereal deficit ahead,
and it is to our interest to aid in all possible ways if peace and
good-will are to be reestablished. Urges still more intensive con¬
servation of breadstuffs and fats, and the immediate marketing of
v
.
.
,
•| grain, and
situation.
the
in
Since then
have
ined
Canadian
21st
Egypt,
to discover
Siam,
the
ger
and
this,
yond
to
needs;
determine
to
possible further sources
and to coordinate the
duty
the
people and their desire
it has
been
my
most of Asia.
to aid.
fore
Herbert
Hoover
findings in
twenty-five
which
countries
several
in
address
♦An
dent
Hoover
Famine
tual
Four
Horsemen
the
of
Committee,
And the modern world has added
and
broadcast
the Mu¬
Systems, to¬
subsequent address
Broadcasting
a
the
by former Presi¬
under auspices of
Illinois
gether with
on May 20.
Of
Apocalypse, the one named War
has gone—at least for a while.
But Famine, Pestilence and Death
are still charging over the earth.
Columbia and
the
and
which
upon
Emergency
Chicago,
over
visited
we
more
four
names
Drought,
evil
this
to
more
Their
Fear
brigade.
Destruction,
Revolution.
are
and
This crisis is not alone due to war
(Continued
on page
2810)
In Foreign Trade Week statement, Secretary of Commerce sees
expanded exports essential to ward off starvation and scarcity
throughout world. Revises estimate of future exports upward, but
says we must provide other nations with dollar credit. Advocates
reciprocal trading agreements to remove trade barriers.
,
Recently there has been correspondence between Secretary of
the Exchequer Hugh Dalton
activities, there
Settlements.
why its
sought.
Bank
This
Holland, Germany
for
supple-
,ments
and Czechoslovakia.
changes of
it
the British Africa Star.
predecessor
responsibility
in promoting foreign trade.
In carrying out our responsibil¬
ity we do not need to feel altru¬
ment:
We
no
can
afford
longer
istic.
todebate about
tages and dis¬
advantages of
ago
Mr.
Vinson's
various
and
foreign
Dunham & Fletcher to
fices
&
Fletcher
be
will
Herbert
at
M. Bratter
tion
of
May 29th with of¬
65 Broadway, New York
as
BIS
of
Partners
the
who
new
loan
months
are
of
the
be brought about before
can
many
City, to engage in the securities
It is
hoped
in
Washington
that the liquid-
Be Formed: NYSE Firm
Dunham
fi¬
minis-
nance
tries.
Britishers
more.
anxious to
see
the British
reality suggest the inad3rd,
of
Britain's
burning
Fletcher, Jr., James T. Whip¬ visability
ple, Charles E. Brady, William F. any bridges at this juncture, but
with
the
expected
House
of
Andrews (who will acquire the
New York Stock Exchange mem¬ Representatives approval of the
bership previously held by Mr. loan any possible obstacle to the
of
the
BIS
from
Fletcher), Augustine Healy, gen¬ termination
eral partners, and Aldo R. Balsam, British official quarters should be
limited partner. Mr. Dunham, Mr. removed.
The position of the American
Whipple and Mr. Brady were pre¬
viously partners in Carrere & Co., Treasury has been made clear on
in which firm Mr. Andrews was several occasions during the last
firm will be Carroll Dunham,
a
Leon
Other
partner in the past.
a
Still Colburn Manager
FRANCISCO,
SAN
own
a
broker's
account,
CALIF.—
time
has
billions.
to
do
The
come
resident
manager
Conference
A
American-headed
for
his
as
believed,
Fran¬
Treasury
in San
institution
business with Hitler. Mr.
White expressed himself similarly
at a press conference at Bretton
Woods in 1944. His views, it is
doing
are
still
those
Department.
of
all—have
Montgomery Street.
chairman of Norway's delegation,;
Mr. Wilhelm Keilhau of the Bank
of
Norway,
point.
more
or
Reasons
Henry A. Wallace
of the
world.
Other
needs
that
need our goods.
and in order
preserve
a world
nations urgently
We need their goods;
build
and
this
estimate
was
of
the
Bank.
be
yond its prewar capacity, and we
need foreign markets more
shall
of
than
establish
free
a
interchange
products, materials, and services
among the peoples of the earth.
These
are
the
WE ARE PLEASED TO ANNOUNCE THE
FORMATION OF
realities
and
the
ever
output.
were
markets
our
limited
a
our
Mead, Miller
&
Co.
concerned
The scarcity that is up¬
in our minds is the
world's tragic need for food. We
deeply hope that this need will be
initial
MEMBERS
NEW YORK
STOCK
EXCHANGE
BALTIMORE STOCK
the
famine-stricken
cannot hope
to make themselves
hunger and death
their shattered transporta¬
secure
until
tion
once
from
systems are made efficient
again and until they are
supplied with the farm machinery
that
will
enable
them
Wants
nations
to
raise
that will more nearly sup¬
This fact alone
makes it impossible for Ameri¬
EXCHANGE
need.
some
ply their needs.
vide
We
the following statement given to
tne
"Chronicle", by
Mr. J. V,
(Continued
already taken
steps that will help to pro¬
other
nations
with
on page
on page
2814)
SCHENLEY DISTILLERS CORPORATION
NOTE—From time to time, in this space,
there will appear an advertisement which
hope will be of interest to our fellow
Americans.This is number 127 of a series.
we
SCHENLEY DISTILLERS CORP.
the
An Extra
"Ring"
ran
into
one
of the
Schenley
hard
bump which almost upset him, be¬
of his heavy sack. Of course,
apologized for our awkward¬
He
came back with a grin,
"Brother, nothing makes
mad these days. And I'll tell
and said,
me
something else. Don't
(ASSOCIATE)
said, "Say,
heard? We're gettin' a
raise. And that's worth
any
Of
old day."
we'd
course
an
extra
*
heard
—
who
hasn't? And, of course, we're
SUCCESSORS TO
happy about it. Everybody in the
United States has been pulling for
Mead,
the postman, and
Irvine &
a
lot of other
seemingly neglected workers who
have felt the hurt
THE FIRST NATIONAL BANK
resulting from
living.
the increased cost of
WITH OFFICES IN
BUILDING
BALTIMORE 2. MARYLAND
So the postman puts us in a
pleasant mood this morning, and
we'd like to close this little piece
with that well-known quotation
LEXINGTON 0210
from
Herodotus—History, Book 8:
"Neither snow,
nor rain, nor
gloom of night, stays
couriers from the swift
completion of their appointed
CARROLL MEAD
baltimore
heat,
stock exchange
nor
these
have
(Continued
,.
example of foreign support
for the termination of the BIS is
ring,
member
"Dumping"
But we cannot look upon for¬
eign trade merely as a means of
dumping our surpluses—as a way
of exporting our unemployment.
We must provide other nations
with ways to pay for what they
crops
No
people now"
a Czechoslovak View
haven't you
NEW YORK CURB
W.
alleviated with the next harvest.
But
from
He beamed when he
EXCHANGE
An
healthy profits for American
industry. In saying all this, I am
making no prediction as to what
our exports will actually be.
/
by resistance
governments
you be¬
always rings
twice. I'm ringin' three times, these
days.." We retorted with a snappy
question, "What's the big idea?"
and
scarcity.
permost
greatly
intensified
postwar boom.
export volume of $10 to $15
billions would mean a continuing
high level of employment at home
the
and
the
Ar>
you
employment
after
of
lieve that the postman
internal problem of providing full
imperative needs that face hu¬
manity in the year 1946.
The problem that overshadows
all other problems in our deeply
troubled times is the problem of
"
few
may
running it.
ness.
abroad
would find
we
difficult
made
from
we
to absorb the increased
If
and
Fund
cause
tive.
During the war our indus¬
trial plant was expanded far be¬
free from the fear of war, we must
International
Liquidation of the BIS
We
almost
conserva¬
•.
mail men—gave him a good
year
tools, our agricul¬
products, industrial equip¬
ment, chemicals, farm machinery,
textiles, railway equipment, and
automotive products, I now feel
:
■
being advanced for
the early wind-up of the BIS in¬
clude:
(1) That it now has no
real function to perform; (2) that
its wartime activities were pretty
bad; (3) that it may be used as
a
sounding board for opponents
now
less the same
tural
the
to
the
most insistent on
By MARK MERIT
could look for¬
of
was
this
Various
machine
our
world, on
scale
suit¬
able
view
;be
recalled, adopted a f
recommending £ "the
liquidation of the
BIS
at
the
earliest
possible moment." The
Co., 155 foreign governments—although not
unlimited needs of the world for
with
business
In
■'
,
was
foreignfoundation
a postwar volume of ex¬
valued at well over $10
ports
the
to
we
<,
sistant Secretary Harry
continue
license
will
the Bretton
held, As¬
White in
a
press conference, described the
Bank for International Settlements,
will
Before
years.
Woods
an
George J. Flach, who recently ob¬
tained
few
our
ward to
foreign
a
I said that
expanded
trade.
an
base
can
trade promotion on a
of national self-interest.
advan¬
the
We
v
.
Conference,
resolution
to forget their
cans
other reasons
demise is being £
are
•
views between
issued the fol¬
state¬
and its war¬
The Bretton Woods
ex¬
the
include
decorations
His
In connection with National
lowing
early
Military Cross from Canada, the
Croix de Guerre from France, and
cisco for R. L. Colburn &
Foreign Trade week, which extends
from May 19 to May 25, Secretary of Commerce, Henry A. Wallace
•
■
partners in the firm were previ¬
ously of Gammack & Co.
Foreign Trade Essentials
Calls attention to
with the 8th Armored Divi¬
tion
also
Wallace Points Ont
VCjM;'
i'.v.''
time activities. Apart from those
business.
our
•
International
world.
solidate
'•
the
formed
seen
'
v.;
of the United States and saw ac¬
with my
own
eyes the grimest spectre of
famine in all the history of the
have
,
view about the BIS
con¬
I
S'V
liquidation of
Along the 35,000 miles we have
traveled,
i'-:
Italy. In 1944 he transferred from
the Canadian Army to the Army
there¬
now
v.j's
.
the Treasury Vinson and Chancellor of
relative to the®
represent the solicitude of
American
can
17th/
to the lives of millions. Be¬
Japan, thus
compassing
I
the
world's effort to master this dan¬
China,
Korea
with
in the Sicilian in¬
sion in France,
of supplies;
Philip¬
pines,
competent in¬
received
Ambassador
Iraq,
India,
Lancers,
vasion, an£ on the east coast of
of President Tru¬
I have acted as a sort of Food
man
in
Africa
in
action
„
opposition to the Bank by [Treasury, because of its wartime rela¬
tions with Germany, and to the Bretton Woods proposal to bring
about its liquidation. Notes political and legal problems involved
in proposed liquidation, and concludes Bank is doomed.
joining the 12th
army,
.
dation of Bank for International Settlements.
Canadian Tank Regiment. He saw
At the request
the food
,
Washington observer recounts problems involved in proposed liqui¬
Street in 1940 and enlisted in the
formation.
we
exam¬
problems
have
we
By HERBERT M. BRATTER
department of Ira Haupt &
Company,
111 Broadway, New
York City, members of the New
York Stock Exchange, it was an¬
nounced. Mr. Ryckman left Wall
situation
Europe.
Settlements be Ended?
recently
cate
American people upon the world famine
I broadcast from Cairo our report upon
Three weeks ago
Haupt
Ryckman,
discharged from the service, has
become associated with the syndi¬
World Food Organization.
proposes new
This is my report to the
W.
Robert
Former President reports on
,
2789
dollar
2815)
HENRY
S.
MILLER
member new york stock
member
exchange
rounds."
new york curb exchange
(associate)
PRESTON
Salute!
A. TAYLOR
FREE
J. CLAIRE SOWERS
—a
MERIT
OP
CORP.,
Dept.
N.
Y.
paae
postcard
SCHENLEY
18 A,
3 50
to
MARjs
DISTILLERS
Fifth
Avenue,
t, N. Y., and you will receive a
96-
book containing illustrated reprints of
earlier
articles.
THE COMMERCIAL & FINANCIAL CHRONICLE
2790
land
Co., Penobscot Building,
Mich.
Dealer-Broker Investment
Mills
Drico Industrial Corporation
Current
Recommendations and Literature
Atlas Brewing Co.
Also
available
issue
of
Street"
"Alcohol
C. L. Schmidt & Co.
Established 1922
Salle Street
leaflet of research
a
the
Association
0/ Securities Dealers
Averages—Current
bulletin
news
grain shortage; National Dis¬ —Amott, Baker & Co., Inc., 150
tillers and Schenley are also dis¬ Broadway, New York 7, N. Y.
tilling alcohol from potatoes —
special bulletin on the subject
Archer-Daniels-Midland Co.
Analytical memorandum — Hirsch
quest from Blair F. Claybaugh & & Co., 25 Broad Street, New York
Co., 52 Wall Street, New York 5,' 4,. N. Y.
N. Y.
Associated Dry Goods Corpora¬
Wholesale Distributors
Middle West
Trade
Opportunities
Pacific Coast
—
Foreign
&
—
and
Investment
tion
York
Geared
MARKET
of
market
650 S. Spring St.
Michigan 4181
CG99
to the News—Brochure
and
comment
review
LA 255
Company; Lawrence
Portland Cement Co.; The Parker
Appliance Co.; Pettibone Mulliken
Corp.;
Armstrong
Rubber
Co.;
Special report—Walston, Hoffman
&
Goodwin,
265
Montgomery
Street, San Francisco 4, Calif.
Consolidated Gas
Haytian
Bankers
Company
The Chicago Corp.
Also
Market
Request
of
present
with
HICKS 6- PRICE
Exchanges
Chicago Board of Trade
Members Principal Stock
Parallel
of
a
Co.,
420
Lexington
New York 17, N. Y.
New York
Randolph 5666—CG 972
New York Office
-
1
Comparison
Wall St.
York;
Avenue,
stocks
for
the
first
Security
of
Insurance
Com¬
of
Butterick
cular
1946—Laird, Bissell & Meeds, 120
Broadway, New York §, N. Y.
in
Pacific
•Woodall Industries, Inc., Pfd.
York
Coast Trading in New
Revised directory
Stocks
—
of stocks traded
•Camden
Forge Co., Common
Also
Request.
change
the New York Stock Ex¬
the
or
Chicago Board of Trade
10 So. La Salle St., Chicago 3
Tel. Franklin 8622
Teletype CG 405
Indianapolis, Ind.
•
Rockford, 111.
Cleveland, Ohio
iUllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllHIIIIIIIIIJIIIIIllllllll
FINANCIAL
available
are
on
All
Its
Branches
Prepared—Conference Invited
Albert Frank
-
Guenther Law
Incorporated
131 Cedar Street New York
6, N. Y.
Telephone COrtlandt 7'?C60
Boston Chicago Philadelphia San Francisco
t)tWfflllllHlllllillHIIIH!llllHllHllllllllHIIHII||||lllllllllll|||||||HIHIIIllll)lll|||ll|lllllllllill[|[|||||
Tornga, Grand Rapids National
Bank Building, Grand Rapids 2.
Memorandum
—
issue
of
in
—
The
.
-
war¬
those
constructive
a
future
earnings.
send for Circular ML
A.
S.
Campbell
Insulator
Corp.
F.
Clay-
Co.,
Inc.
&
Co.,
231
South
Celanese Corporation of Amer¬
ica
Analytical memorandum —
Penington, Collet & Co., 70 Pine
-
New York
Analysis
American Water Works & Elec¬
5,
Y/
N.
Central Public
.—
Utility Corp.
Brailsford & Co., 208
__
couth La Salle Street, Chicago 4,
111.
Company — Study of back¬
ground and outlook in an issue
offering
interesting
speculative
possibilities — H. Hentz & Co., 60
Beaver
Street, New York 4, N. Y.
Also available is the Fortnightly
Investment Letter discussing the
Treasury's Money Rate Policy;
the growing need for higher rail
rates, and containing brief memos
on several
interesting issues. Also
Consolidated
The
Chicago
Gas
Utilities
Hicks & Price, 231 South La Salle
Street, Chicago 4, 111.
Also available is
orandum
L.
pany
A.
in
on
recent mem¬
The Muter Co.
Darling
four
a
Co.—One
growth
com¬
fields
tive figures on public utility pre¬
common stocks—G. A.
of
Co., Inc., 70 Pine Street,
5, N. Y.
Corporation Common Stock
REEVES-ELY LABORATORIES Conv. Preference
N-l,
company.
H. M.
;
Direct Private Wire to New
-»
BellSystera CG 637
York
■
[
•
y
Byllesby and Company
Incorporated
135 So. La Salle
Street, Chicago
Telephone Randolph 4068
-
of
different
amounts
and for varying
Fire
and
Stocks
Casualty
with Bank
Insurance
Edition
with
sues
1946
—
Company,
Mississippi
Building, St. Louis
Trust
objectives; factual
appraisals of 34 leading industries
Stocks Section—White
Manual
on
Valley
1, Mo.
selections
Grinnell
Corp.
&
—Boenning
—
including
1606
Walnut
Street, Philadelphia 3, Pa.
mon
Hammond
Instrument
Analysis—Caswell
South
La
Salle
Co.
3, 111.
—
Study of
speculative possibili¬
ties for appreciation for this com¬
pany—Ward & Co., 120 Broadway,
&
—
Dolphyn,
troit
mailed without ob¬
—
Buhl
Building,
De
26, Mich.
Simplex Paper Co.—Descriptive
analysis discussion potential post¬
war benefits to the company from
the
automobile,
building,
and
frozen food industries—Raymond i
& Co., 148 State Street, Boston 9;
on:
American
Alabama
stocks
5. N. Y. Also available
late memoranda
Great
"The
Recent report—Mercier, McDowell
and
New York
on
Rates"; rail¬
Sheller Manufacturing Corp.
Hartford-Empire
outlook
timely article
a
for Interest
ligation, write to department T—
Merrill Lynch, Pierce, Fenner &
Beane, 70 Pine Street, New York
5, N. Y.
—
Co.,
120
Chicago
&
Street,
individuals is¬
road, utility and corporate bonds,"
preferred stocks, and a listing of
consistent dividend-paying
com¬
Memorandum
Co.,
of
for specific purposes; sections
U.
S. Government securities
Outlook
Industries;
Mills,
inc.;
Douglas
Tin; Upson Co.:
General
Purolator; Lanova.
Mass.
Hawaii Consolidated Railway
Circular
dation"
25
on
—
Broad
an
—
Southern Railway
interesting "liqui¬
dum
E. F. Waterbury & Co.,
Street,
New
York
—
Memoran
Vilas & Hickey, 49 Wall
Street, New York 5, N. Y.
4,
—
,
N. Y.
Spokane
Industrial Brownhoist—Circular
—Gottron-Russell
&
Co..
Bulletin
Union
67 Wall Street, New York
Le
Roi
common
Company
stock
as
a
—
sound
Princess
Dumont
Electric
Roy Prosser & Co., 52;
Street, New York 5, N. Y.
specu¬
Texas Public
orandum
1529
Walnut
Service
—
Mem
Brothers,,
Buckley
—
Street, Philadelphia;
2, Pa.
Corp.;
Also
Shops; Electronic Corp.;
on
District Theatres Corp.; and Sim¬
plicity
Office
stoker—J.
of
purchase — First
Colony
Corporation, 70 Pine Street, New
York 5, N. Y. Special letters avail¬
on
Cement—
developments—i
Steel Products Engineering Co.j
—Survey on
manufacturers ofj
"Combustioneer,"
an
automatic
lative
able
recent
&
Co.,
10 Post
Square, Boston 9 Mass.1
5, N. Y.
Study
Portland
on
Lerner
Commerce Building, Cleveland 14,
Ohio.
available
Gruen
memoranda;
and!
are
Watch
Company
Midland Utilities.
Pattern.
Midland Utilities Company
Midland
Current
ance
Telephone State 8711
New York
Philadelphia
.
Realization
Co., 135 South
Chicago 3, 111.
3
La
Thermatomic
and
and
bal¬
alysis of current situation and
prospects for 1946—Comstock &
231
South La Salle Street,
Chicago 4, 111.
memorandum
on
a
Minneapolis
available are memoranda |
Eastern Corporation and Stand*!
Also
"V
Electric
Publishers—;
Memorandum—Buckley Brothers,!
1529
Walnut
Street,
Philadel-j
phia, 2, Pa.
"j
on
ard Stoker Co.
Corp.
United
stock
States
Steel
Cumulative Preferred
affering combination of improving
utility income, together with ex¬
cellent
speculative
possibilities
Prom oil developments—Fred W.
Fairman & Co., 208 South La Salle
Street, Chicago 4, 111.
Corp
—
1%
Study of
well-protected preferred stock of-1
fering a liberal income rate —fj
Estabrook & Co., 15 State
Street,;
Boston, Mass. and 40 Wall Street,'
New York 5, N. Y.
Upson
New England Lime Company-
Co.
—
Descriptive Cir¬
cular—Seligman, Lubekin & Co.,
Descriptive
circular — Dayton
Haigney & Co., 75 Federal Street,
Boston 10, Mass.
41 Broad
Also
Teletype CG 273
Pittsburgh
5
United Printers &
&
Co,,
N. Y.
O'Connor &
Salle Street,
Miller Manufacturing Co.—An¬
Gas
Carbon
—Circular—Hoit, Rose & Troster,;
74 Trinity Place, New York
6,
Company—
memorandum
sheet—Doyle,
—Late
208 SOUTH LA SALLE ST.
pre-planned portfolios for the1
investment
New York
National
—We Maintain Active Markets In—
CHICAGO SO. SHORE & SO. BEND RR. Common
CHICAGO 4, ILLINOIS
—
Analysis for dealers only—More-
National Gas & Electric
For
and
Corp.—Circulars—
DEEP ROCK OIL CORP. Common
Write
and
position
tric
Members
discussion of this
review
current
Saxton &
—
Street,
the
ferred and
—
N. Y.
includes
of
William
La
Street, Chicago, 111.
analysis
Kinney-Coastal Oil Company—
5,
and Industry Survey
booklet covering 34 in¬
—
and outlook for both business and
the securities markets; selections
Analysis—James M. Toolan & Co.,
—
—
Broadway, New York 4, N. Y.
Security
dustries
compara¬
New York Hanseatic
Analysis
Statistical study —' Peter Barken,
Salle
Blair
baugh & Co., 52 Wall Street, New
5, N. Y.
York
32
to
Chicago Stock Exchange
Chicago Board of Trade
A
on
Merit, in care ol
Corporation,
Avenue, New York 1,
Distillers
—64 page
Preferred
containing
have
Chronicle-
Mark
to
Fifth
350
the
Corporation, 120 Broadway, New
Mich.
JHgW^«SlNCE1908CS&Sm| *
fRED.W.FAIRMANCO.L
•
the
on
as
Broadway, New York
Schenley
Gas Corpora¬
Federal Water &
tion
a
York
American Service Co.—Circular
ADVERTISING
1—lifting of
should have
paper
effect
Curb
Dealers may
on
Butterick
—Adams
•-
York
Exchange — Kaiser & Co., Russ
Building, San Francisco 4, Calif.
American
Plans
New
Established 1916
.
Members Principal Stock Exchanges
In
ratio of 3.15 to
time restrictions such
American Forging and SocketCircular—De Young, Larson
&
^alRDavls&Go.
«•'
on
price equivalent to only
50
running in the
write
Automatic
Northern Engineering Works.
ports
Shoe;
position of the company shows
Coast
Exchanges — 219 issues traded on
exchanges which are also
traded
on
Pacific
been
Co., 40
5, N. Y.
special re¬
Signal and
Mohawk Rubber; Aspinook Corp.;
three times 1945 earnings per pre¬
Co.,
Brass—Study
Edward A. Purcell
—
—Brochure of articles they
ferred share; the net current assets
these
Snap-On Tools Corp., Com.
»Prospectus Available
on
&
&
Treat
sells at
•Wells-Gardner & Co., Com.
—
4, N. Y.
Wall Street, New York
tion of the
a
Copper &
of outlook
Engineering—Special
report—Amos
Company, Inc.,—Cir¬
emphasizing the strong posi¬
preferred stock which
Hoit,
Trinity Place,
Schenley Distillers Corporation
Eastern
are
19
quarter
memoranda
Springfield Fire & Marine
pany,
analysis
are
Insurance Company, arid Standard
Accident Insurance Company.
City Bank Stocks—
and
available
Northern Insurance Company, Re¬
insurance
Corporation
of
New
So. LA SALLE ST., CHICAGO 4
231
Shippers Insurance
Insurance Company, New Hamp¬
shire
Fire
Insurance
Company,
-—
1921-1929 market—R. B. Brownlee
&
situation
possibilities
Rose & Troster, 74
New York 6, N. Y.
—
Insurance Company of North
America, National Fire Insurance
Company, National
Union
Fire
Comparison
market's swings
like part of the
bull
those
interesting
Wall
on
Broadway, New York 4, N. Y.
The-Muter-Co.
&
Study — Mackubin,
Legg & Company, 22 Light Street,
Baltimore, Md.
of
America; Latrobe Electric Steel
Co.; Ray-O-Vac Company; Fort
Pitt
Bridge Works and Welch
Grape Juice Co.—Strauss Bros., 32
Utilities Corp.
on
Corporation
of
Street, Chicago 3, 111.
Panama Coca Cola—Circular
on
current
Manufacturing Co. —
Descriptive
analysis—du
Pont.
Homsey
Co.,
31
Milk
Street,
Boston 9, Mass.
&
Ohio Leather Co.; American Fur¬
niture Co.; Punta Aldgre Sugar
Circular
—
Bank of America N. T. & S. A.—
Upson
Corp.;
the
and
Stock Guide,
Co.
Engineers Report—Herzog & Co.,
170 Broadway, New York
7, N. Y.
contain¬
Manufacturing Co.; Sargent & Co.;
The
Salle
Interesting issues.
current
Manufacturing
ing brief analyses of Philip Carey
LOS ANGELES 14
135 La Salle St.
State 6502
—
Ira Haupt &
Broadway, New York 6,
N. Y.
5,
—Kitchen
Dwight
Analysis
Axelson
DISTRIBUTION
CHICAGO 3
Ill
N. Y.
UNDERWRITERS
SECONDARY
—
Co.,
Study—Delafield
Delafield, 14 Wall Street, New
For
Pacific American Investors, Inc.
—Memorandum on leverage trust
& Co., 135 South La
—
—
Revere
Amott Baker Realty Bond Price
"Alcohol From Potatoes" upon re¬
Member, National
th&
is
"Highlights
—
CARTER H.C0RBREY& CO.
outlook
discussing the outlook for
several
comment.
crisis caused by
to meet the
request is
on
the
Tele. CG 271
Randolph 6960
Tel.
Potatoes"—The
Distilling
Corporation has announced opera¬
tion at full capacity by change¬
over
CHICAGO 3
From
of Merchants
President
and
F. Reilly & Co., 40 Exchange
Place, New York 5, N. Y.
following literature:
to send interested parties the
situation
J.
It is understood that the firms mentioned will he pleased
Atlas Press Co.
120 South La
Broadway, New York 6, N. Y.
Detroit 26,
Trading Markets
Allied Paper
&
Thursday, May 23, 1946
Street, New York 4, N. Y.
circulars on
detailed
Tennessee Products; Wellman EnNew England
Analysis
—
Public Service—
Ira Haupt & Co., Ill
>
gineering Co.; Shatterproof Glass; i
Temple Coal.
"i?# I'
.Volume
163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
2791
3K
Croix de Guerre by France
On Economic Blocs
Treasury Secretary tells House Banking and Currency Committee
Major
Joseph
Shaskan
&
Co.,
that unless Russia and Britain adhere to Bretton Woods and
abide
Place,
New
been
awarded
by standards of fair trade and
■
Guerre with
British and
J
Hors'n Around
Better
Looking Than
I
I
a
Russian, but also
an
to
want
make
"........
the
on
i
»
.
A
v:
•'
v'
A*
v'
k
•
'
r-'.i 1
••
-w1
■»
4
itew.
-v
vr
i
*' ■*
y
sion
Id
into
currency standards
blocs.
Nations
It
is
of
the
Uitmost
p.orta
.
o
tenstein
&
lack
Co., says
of
beauty
"In
view of
perhaps
you
to
having
been
of
mine."
"cats
and
his
see
Yearbook .instead
the
Ben
picture
but
in
when
the
you'll find out what
his
knows
sure
dogs"
a
you
Yearbook
great kid-
and
join
ACCOUNT—"
V'r"
all
advan¬
Pacific-American
be inside rather, than
to
the
Fund
hope, that she will
the
Investors, Inc.
1
main¬
fair
same
standards.
currency
and
see
but
KITCHEN & CO.
British bloc and to urge on Rus¬
sia the desirability of joining with
and
States
and
the other United
comprehensive
a
Request
a
objective of our policy is
prevent the formation of a
the. United.
on
American
an
Russian bloc.
a
Memorandum
trade
Inevit¬
The
Bank.
the
bloc,
bloc, and
of the World Fund and; Bank
.Savannah. Russia is not yet a
I
that
it
British
ing
Carolina Securities
and
find*
ably, there would be not only
to
of
work
will
the
Russia participated in the Bretton Woods Conference
and
had
n
.
suc¬
has
policy.
member
course of
liberation, of V
i.
prospect
in
policy of the United
States and will continue to be our
Campbell Fetner Joins
of the United
every
That
Bank.
the
observers at the Inaugural Meet¬
der he is.
their
establishing
and
countries
Fund
the
the
United Nations cannot succeed in
Secretary Vinson
pre¬
all
World
in
in
bloc, the
vent this is by
kennel
Croix^d*..;
"A NON-CALLABLE MARGIN
On
the other hand, if England finds it
The
way
is
jnecessary to organize, and
tain a British economic
great
powers..
the
Silver Star byjbe
"for except;
services
operations
France."
optside the Fund and Bank.
grouped
should publish the above picture
of some of the memhers of my
in
tageous
f
around
in
countries
omic
o n
blocs
ceed
to
the
formation
a
Government
'
there
that the Fund and Bank will
im-
nee
prevent
my
tional
tional economic cooperation.
If we make it possible for Brit¬
ain to abide by the fair trade and
the
economic
Ben Lichtenstein, of B. S. Lich-
French
40
Exchanges
City, has just
York
vantages of participating fully in
these organizations for interna¬
divi¬
of
w o r
eic
a
who
•»——
clear
what I said
I
there v;ill not only be
American "bloc."
currency,
Secretary Vinson on May 16 made the following statement be¬
the House Banking and
Currency Committee:
•
fore
Their Haster?
Schrank,,
heads the trading department of
13S South La Salto Street.
J
Chicago 3y IIL
Tel. STAte 4950
Tele.
28
England,
Nations, in
of
program
in¬
ternational economic cooperation.
ad-
'Sfiif
CHARLOTTE, N. C.—Campbell
msm
B.
Fetner
has
become
associated
with Carolina Securities
Corpora¬
-Security
Bank
Building,
High Point, N. C.
Mr. Fetner
was
formerly sales manager for
tion,
At
regular
a
Monday
local
meeting
Luncheon
wits
fixed
of
Club
the
some
Southeastern Securities and prior
thereto conducted his own, invest¬
the above
picture and suggested Tom Mel¬
ody of The First Boston Corpora¬
up
ment business in Charlotte.
Chronicle"
in
place of his
picture, claiming
likeness.
when
; and
Take
the
a
it
was
look
Yearbook
you'll
see
how
good
a
CHICAGO, ILL.—Francoeur &
Company,
39
South
La
Salle
Street, announces that R. R. Rob¬
erts has rejoined their organiza¬
tion after 3% years in war work.
Tom
out
comes
they
wrong
are.
of
Alfred-
Henry
Record Attendance Assured for Field
Bay
Of New York Bond Club Scheduled Friday
A
record-breaking attendance is in prospect for the first post¬
war Field Day of the Bond Club of New York, which will take place
Friday at the Sleepy Hollow Country Club, Scarborough, N.'Y., it
was announced today by F. Kenneth Stephenson,
Goldman, Sachs &.
Co., and Frank A. Willard, Reynolds & Co., co-Chairmen of the
Field Day Committee.
More than
500 members of the<8>
Bond Club have notified the AtCommittee
tendance
will be
on
that
they
hand for the first out¬
ing
in
five, years.
Favorable
weather and a lull in security
trading in-Wall Street would swell
the attendance even further, ac¬
cording to Lee W. Carroll, John
B. JCarroU & Co., Chairman of the
Attendance Committee.
i\
A new
high in circulation of the
to
golf
tournament, competing
three trophies of long standing
a
for
as
numerous
special
Others will take part in
Softball, horseshoe pitch¬
ing, a water carnival and a host
of attractions on the Sleepy Hol¬
prizes.
tennis,
low
midway.
1
;
.
Laurence 1 M.- Marks, Laurence
M. Marks & Co., Chairman of the
Golf
Committee, announced today
"Bawl Street Journal," the club's
that
three
humorous
various
publication' which
is
distributed at the outing, has al¬
awarded for
ready been achieved with advance
orders coming from all parts of
cap
the' country.
turning in low
•
.
'More than 200 of the bond
who
will
attend
the
men
outing, will
cup
MIDLAND
to
would
be
play in 'three handi¬
cesses.
Toe Ex-Presidents'
will be awarded: to the player
gross on the
(Continued
■
Josepk Butler Ifcfc of
Co., has been named; Chaifman of
the -Committee to direct the leg¬
islative
activities
of
the
the
coming
year,
Other members include Wal¬
day.
ter
R.
Brailsford, Brailsford &
Co.; Arthur G. Lilly, Paul H. Da¬
& Co., and F. S. Yantis," F. S,
Yantis .& Co., all of Chicago; and
Paul R. Noorian, Dixon Bretscher
Nportan.
Inc.,
of
Springfield.;
Frank
of!
S.
Torgerson, Link, Gor¬
Co., was named chairman.
&
man
the
educational
Others named
include
committee:
Alexander
Allen, Allen, Swift & Co., Floyd
D. Ceri, Jr., 'Floyd D. Cerf Com¬
pany, John F. Detnier, Howard F.
Detmer & Co., and George Smith,
First Securities Company of Chi¬
cago:
-
on
It
page
liams; Langi-11 & Co.,,c Inc. Public
relations committee,
Mr.
Van
Camp, chairman and member
Born in Cleveland,
tne
2826)
las*
[
«-
»
.
,
and
Butler's
Rockford.
Grievance
com¬
first
connection
the investment business
Hornblower
Cleveland
&
was
COMMON,
.
Red Tom
organize
Weeks
office
and
Treasurer
in
where
become
of
Brewery Co.
■?-<•
'
'
!
he
CHICAGO 3, ILLINOIS
ILLINOIS
PHONE STATE 0101
Aeronca Aircraft Corp.
Lawrence
Cook
&
and
Company
Howard
Industries, Inc.
Hydraulic Press Mfg. Co.
Kropp Forge Co.
Miller
Manufacturing Co.
Puget Sound Power
&
Commission, Chi¬
cago division, in 1940. the oositlon
he has resigned to join the staff
Exchange
Light Co.
Superior Tool & Die Co.
Trailmobile Company
Exchange.
•
"
Mr.
of
D^y
stated
Mr.
t'^at,
Butler's
both
experience,
in
dealer,
as
COMSTOCK 8t CO.
combined
change
-
his
background
a broker
with his
work for the Securities and Ex¬
to
-
Appleton Manufacturing
was
Secretary-
Commission, augurs well
strengthen the staff of The
CHICAGO 4
231
So. La Salle St.
Dearborn 1501
Teletype CG 955
Chicago Stock Exchange.
OF
Macfadden Publications
•
Tool
O*
Gisholt Machine
'
Paper Mills Co.
All Wisconsin Issues
Froedtert Grain & Malt. Co.
Hamilton Mfg. Co.
lames
Manufacturing Co.
105
v
V
Teletype: CG 1200
HOLLEY, DAYTON & GERNON
;Memb«Jr^hlca^o' Stock Exchange
'
135 SOUTH LA SALLE STREET
Telephone: Dearborn 6161
in
their
DOYLE, O'CONNOR & CO.
INCORPORATED
361
r
i
Compo Shoe Mach. Co.
i
CHICAGO 4,
ment to the staff of the Securities
Northern
Paper Co.
vr
SOUTH LA SALLE STREET
TELETYPE CG
Co.; investment dealers in Cleve¬
land. Butler received an appoint¬
•
Marlin Rockwell Corp.
•
231
Weyenberg Shoe Mfg. Co.
Cons. Water Pwr. and
BEND
.
ADAMS & GO.
left Hornblower & Weeks to help
SECURITIES
Nekoo*a-FHw»riJ« Paper Co.
.
☆ '
with
employed part time from 1927 to
1930. After graduation from Notre
Dame, he became a regular em¬
ployee until the end of 1934.
He
and
pany,
-.1
Request
completed
post
graduate
University of Chicago.
Mr,
Nay r First- Securities Company of
Chicago, Arthur
S.Grossman.
& B'osser; Jack R. DempDempsey & Company, and
Paul E. Cpnrads, Conrads & Com¬
on
work at the
omnion,
sey,
Ohio, where
his
early education,
Butler graduated with a Ph. B.
degree in Business Administration
at Notre Dame University in 1930,'
lipglaw, Bolger & Co., Leston B.
Koehring Co.
}
SHORE & SOUTH
<
received
CONTINUOUS INTEREST IN:
REALIZATION
.
he
of the
THE
.....
ex
jfr
>
Circular
announced.
officio, Enyart, Van Camp & Co..
Lie., David L. Shillinglaw-, Shil-
Sleepy Strauss
was won
at
Other appointments announced
by Mr. Van Camp include: Mem¬
bership committee, Henry Grote,
Chairman,; Davi-d A. Noyes & Co.;
John W. Rowe, Negley, Jens &
Rowe, Peoria, and George P. Wil¬
t
CHIC AGO, ILL.—Joseph
Butler,
37, has been appointed Vice-Pres¬
ident of The Chicago Stock Ex¬
change, James E. Day, President
Owen V. Van
President,' announced to¬
Camp,
<
Chicago Slock Excli,
Illinois
Securities Dealers Association for
UTILITIES
A. E. STALEY MFG.
CHICAGO SOUTH
addition
prizes,
Hollow upper course.
by Prescott S. Bush
devote the major part of the day
MIDLAND
in
cups,
special
and Common Stocks-
&
well
as
$3 Preferred, Class A
S.
O'Gara
vis
'
\
Co.; Percy A. Caswell, Caswell &
Co., and Larry A, Higgins, Hulburd, Warren & Chandler.
Gf Illinois Dealers'
—
SERVICE CO.
Carman S. Brown, C. S. Brown &
-
Roberts Rejoins Francoeur
own
at
Legislative Bontmiitea
CHICAGO, * ILL.
AMERICAN
L.
Kent, Chair¬
man, Kneeland & Co.; Fred Fairman, Jr., Fred W. Fairman & Co.;
H. MiseFarlane Heasls
MacFarlane
tion use it In the NSTA Yearbook
f arid *1 Convention Issue of the
mittee,.- Edward
Member* Chicago Stock Exchange
225 EAST MASON ST.
PHONES—-Daly
5392
Chicago:
.
3
,,
St., Chicago 3, 111.
**
1" Central 0780
.
MILWAUKEE (2), WIS.
State 0933
So. La Salle
CG 262
Teletype Ml 488
Offices in Wisconsin
Eau Claire
-
Fond du Lac
Madison
-
-
La Crosse
Wausau
%
1
■
B
■,
'"W^"
ih
rr;
ji |v'r
•;!
»
>4
(J
•
HI
Ohio Brevities
President
Rivitz of
Hiram
directors voted
an
cial would have
Industrial Rayon Corp., announced
increase of 50% from the-rate paid
stock, split two-for-one last April 1. It is payable June 12
the old
27.
The rate increase would boost the total yearly dividend dis¬
bursement to
$2,277,975 against«»'
' —
$1,518,650 in 1945 when a total of ance of the special wartime dis¬
to stock of record May
$2.00
;
There is
share was paid.
a
1,518,650 shares of the new com¬
outstanding. First quar¬
$1,752,847 af¬
count rate of
cause
ter
preferred -■ dividends,
com¬
pared with $342,607 in the same
1945 period.
.........
/>
it
Co.
is¬
two
covering
statement
stock has been
General Tire & Rubber
of preferred
&
Securities
the
with
Ex¬
change Commission.
The company plans to increase
first preferred from
85,000 to 150,000 shares and sell
25,000 additional shares, and offer
25,000 shares of second preferred
convertible into common stock at
about
15
to
20%
above
the
market. Additional first preferred
would bear 3%% rate instead of
the present
issue's 4% %.
Bali, Rurge & Kraus of Cleve¬
Peabody
Kidder,
land,
Co.
&
and Goldman, Sachs & Co. are
the underwriters.
*
*
Hs
of Cleveland,
McDonald & Co.
will head
will
in
stock
banking group which
publicly over $5,000,and preferred
Thomas
Steel Co. of
offer
000
a
common
of
Warren, Ohio.
C. G. Thomas, who holds all the
shares, is retiring as chairman of
the board.
The
registration statement, filed
with
SEC, covered 16,428 shares
of 4y4% preferred stock and 246,shares of
420
common.
which since
has invested around $2,-
The
*1936
company,
i000,000 for enlarging and im;
proving plant and equipment,
haid
has
dends,
stock
common
10
last
the
for
all
to
banks
secured
#
divi¬
years,
disbursements last year amount¬
ing to 75 cents.
*
Ball, Burge & Kraus and Laur¬
M. Marks & Co. headed an
ence
underwriting group which offered
104,130 shares of common stock of
$23 a share.
De Vilbiss Co. at
S>)
The
Ohio
Toledo,
company
plans to redeem 50,000 shares of
outstanding 7% preferred; spend
approximately $775,000 on the
Toledo plant, and add the remain¬
ing proceeds to working capital
Giving effect ito this financ¬
ing the company's outstanding
capitalization will consist
of
300,000
of
fering
$5
common
pan
Other houses in the of¬
shares.
McDonald &
are:
group
Farmers
of
Bank
National
Ashtabula, has been elected Pres
ident of the Ohio
Bankers Asso¬
Howard
succeeding
ciation,
G
Hudson of Wilmington.
G.
the
F.
Karch,
Cleveland
chosen
Ohio
Vice-President
for
Other officers
the trust division.
are:
company
manufacturers of such
motor cars
w a r
products as
and parts, radios, hard-
appliances,
electrical
e,
lamps, jewelry, clocks and tools.
It also produces spring steel for
razor
blades,
steel
tape
and
springs of various types.
*
*
*
President Ray M.
Federal
Reserve
land, announced
Gidney of the
Bank
of Cleve¬
the discontinu-
schools,
Treasurer.
*
A
„
$56,000,000
huge improvement plan would
not be delayed.-
Voting averaged about four-toin favor
nearly all the is¬
sues.
Among the improvements
and the amounts to be spent, at
virtually no cost to the taxpayer,
A total of
$3,000,000 for widen¬
ing and improving streets and
planting of 50,000 shade trees.
Nearly $3,000,000 for improving
and extending municipal airport
to keep abreast of aviation prog¬
ments
program
public
for the. City of
Cleveland and Cuyahoga
One
million
The
at
County,
of the
the
city
weeks
two
ago.
City and county voters ap¬
proved the program, including a
Underwriters and
Land Trust Certificates
Municipal
Securities
Philip Carey Com. & Pfd.
Red Top Brew
W. D. Gradison & Co.
Members
Stock
Established 1899
New
York
Exchanges—N.
and
Y.
Cincinnati
Curb Assoc.
Dixie Terminal Building
CLEVELAND
Cincinnati
CINCINNATI 2
Denver
Toledo
Columbus
a
new
bridge
the Cuyahoga River Valley.
Over $3,000,000 for repairs and
replacement of other bridges and
elimination of traffic bottle¬
also
necks.
Almost
Tel. Main 4884
Tele. CI 68 & 274
of
con¬
recreation
free
new
centers,
And
fireproof incinerator to
cost $450,000.
Nearly $3,000,000 for general
improvements of city parks and
a
diamonds.
Two millions for
land
to
acquisition of
straighten out the twist¬
ing Cuyahoga River, long a prob¬
lem for the large lake freighters
which
Over
and
take
now
hours
to
reach
destinations.
up-river
Proposed Offering of
enlarging
and fire
for
police
connected
of investment
firms headed by Eastman, Dillon
& Co., The First Boston Corpora¬
tion and Lehman Brothers, will
offer week after next, a block of
500,000 shares of Bank of America
National Trust and Savings Asso¬
ciation
The stock
stock.
common
poration whose holdings
substantially
increased
overloaded
and
retire
to
bank
loans
of
Bldg.
and 494 branches
Teletype CV 594
NEW YORK «
ing
governors
total
of $1,200,000
the
the
in
long-ne¬
glected buildings at City Hospital.
An .8 mill tax levy for con¬
struction of new buildings and
sites for school purposes.
houses,
a
of
State
California.
first
The
week
of
competition
in the Wall Street Softball League
three
saw
played
among
the six teams of the "Shorts" Di¬
games
vision.
All games in the "Longs"
Division were rained out and will
be
played
off
later in the
doubleheaders
in
In the games
season.
this week the new
York
Curb
Exchange defeated
the New York Stock Exchange
completed
M.
C.
0,
Rhoades
Loeb,
from Goldman,
won
health
center
to
6,
and F. V.
&
Co.
Foster bested
Carlisle & Jacquelin
15 to 6.
r
f
STANDINGS
LEAGUE
Saturday, May 18
"SHORTS" DIVISION
Pet.
W.
N.
Y.
Curb
Exchange
C. M. Loeb, Rhoades & Co.
L.
1
1
0
0
1.000
1.000
1
0
1.000
N. Y. S. E. Bond Brokers
0
1
.000
Carlisle &
0
1
1
.000
P.
Poster
V.
Jacquelin
Goldman, Sachs & Co
"LONGS"
0
.000
DIVISION
year
ternate
cost
$200,-
000 and
$100,000 to improve cem¬
etery grounds.
L.
Pet.
Harris, Upham & Co
0
0
0
0
.000
.000
0
0
.000
Decoppet
&
Doremus
Merrill Lynch,
Pierce, Fen0
0
.000
~
0
0
.000
Security Traders of N. Y—
0
0
.000
ner
Orvis
& Beane
Bros.
bonds
there will be expended $3,250,000 for paying the cost of erect¬
Among
the
ing
arid
buildings
and
county
equipping
a
fireproof
county
new
courthouse.
$5,000,000
*
Date—
May 15,1946— 1.23%
increasing to 1,000 the bed
capacity for tubercular patients.
Health officials predicted this
Apr. 24
um,
May
May
Apr.
8
1
17
Mar. 20
—
—
—
—
—
1.21
1.21
1.16
1.12
1.13
f
1.39%
1.36
1.36
1.30
1.25
1.07%
1.06
1.06
1.02;
.98
.32%
.30
.30
.28
.27
1.26
.99
1.02
1.09
.27
.28
.30
1.13
1.15
.32
.35
1.18
.36
—
1.16
1.30
16
—
1.24
1.39
19,1945— 1.29
14
1.32
17
Sep.
19
1.45
1.36
1.50
1.54
1.58
1.62
1.42
1.18
1.17
1.02
.40
.45
.40
—
—
Aug. 17
-
July 18
—
1.38
1.40
1.22
—
1.21
1.39
1.02
.37
May 16
—
1.19
1.35
1.50
1.58
2.01
2.13
2.14
2.58
3.33
3.42
1.02
1.18
1.23
1.65
1.70
1.62
2.01
2.24
2.55
.33
.32
.35
.36
.43
.52
.57
1.09
.87
Jan.
Jan.
Jan.
Jan.
Field, Ruts & Co.
Union Com. Bldg.
CLEVELAND
Tel.. CV 174
Union Cent. Bldg.
CINCINNATI
Tele. CI 150
the
the
Al-
he
though
Robt.
Brand
Henry
had earlier
planned to
tire from the Government
Mr.
re¬
service,
Brand, having latterly served
the UK Treasury's Washington
as
representative,
is
temporarily
staying on and at the same time
is serving as British executive di¬
of the Bank until
rector
the
ar¬
Grigg.
educated in Oxford. From 1902 to
1909
he
Jan.
—
1,1945— 1.34
1,1944— 1.41
1,1943— 1.83
1,1942— 1.92
1,1941— 1.88
1,1940-,. 2.30
1,1939— 2.78
1,1938— 2.98
the
in
was
Government
service in South Africa
as
Secre¬
tary of the Inter-Colonial Coun¬
cil
the Transvaal and
of
Orange
Colony, and Secretary of
the Railway Committee of the
Central South African Railways.
During the first world war, from
1915 to 1918, Mr. Brand was a
member
of
Imperal Munitions
River
of
Board
months
time
that
for
and
Canada
of
Robert Cecil,
Lord
to
chairman
the
of
ad¬
financial
became
Brand
as
British
chairman of the
Mission in Washington.
viser
nine
served
deputy
Supreme
the
Eco¬
nomic Council at the Peace Con¬
in
ference
in
Paris
1919.
In the
following year, he served as vice
president
of
the
International
Financial
Conference
of
the
League of Nations held at Brus¬
sels. In 1924 he served as finan¬
cial
of
representative
Africa
as a
of
South
Conference
member of the com¬
the
at
and also
Genoa
the
experts 'advising
the sta¬
bilization of the mark.
In
the
early 1930's Mr. Brand
managing director of the
became
Lazard Bros.
&
Co.
and director
Lloyd's Bank.
In 1931 he
served as representative in nego¬
tiations with regard to Germany's
short-term credit indebtedness. In
1940 he went to South America
as
a
member of the Willingdon
of
came
t
t
20
Oct.
OHIO
of
and
Bank.
Trade Mission
Price Index
to add a
wing at Sunny Acres Sanitari¬
Nearly
gov¬
ernor
Fund
German Government on
W.
Hirsch & Co
to
this
in the
capacity of his
country's
al¬
Sachs & Co.,
and
shackle structures.
at
Mr. Brand was born in 1878 and
Softball League Scores
quarter millions to
construct
market
replacing present ram¬
Sa¬
of
vannah
mittee
and
and
Bank
rival of Sir James
to repair
reconstruct
the
o f
the Fund
"facili¬
and 27
Earnings for the first six months
of the current year, after giving
effect to depreciation and amor¬
tization but before provision for
bad debts reserve, are estimated
in excess of $2 per share.
Jan.
BROADWAY
augural meet-
Bank
America, in terms of total de¬
posits and resources is the largest
bank in the United States operat¬
ing a main office in San Francisco
Jan.
Members Cleveland Stock Exchange
to BW and at¬
tended the in¬
of
WM. I. MERICKA & CO.
29
UK delegation
"
Trans¬
the time of its issuance.
at
repre¬
member of the
a
"
Pro¬
ing.
SECURITIES
Cleveland 14, Ohio
was
Corporation arising from
the payment of indebtedness orig¬
inally incurred in financing the
purchase of the preferred stock
INCORPORATED
Union Commerce Building
1582 Union Commerce
Mr, Brand
america
deteriorat¬
Request
CLEVELAND 14
ous
ceeds of the sale will be available
Jan.
Request
Government
Washington in vari¬
capacities throughout the war,
through
in 1940, into common stock.
Interna¬
in
being
are
June 13
on
British
the conversion of preferred stock,
it has held since issuance
8
Wellman Engineering
Circular
A
sentative
which
Nov.
on
the
Development.
will be sold by Transamerica Cor¬
Dec.
Industrial Brownhoist
with
tional Monetary Fund and the
Bank for Reconstruction and
A national group
stations.
now
of
Fifth of a series of bio¬
graphical sketches of persons
Association of Bond Brokers 2 to
$2,500,000
improving
BRAND
Temporary
the Fund
Jan.
Company
HENRY
United Kingdom's
Feb.
Circular
ROBERT
county
new
a
Executive Director
ties"
$3,500,000 for the
struction
A
Whitaker Paper
Chicago
zoological gardens
over
A
New York
for modern¬
zoo.
Four millions for
and
Sport Products
(Incorporated)
amount
same
ization
ing a surprising and overwhelm¬
ing victory in primary elections
nearer
Gruen Watch, Com.
otis & co.
dollars for paving
streets, roads and highways.
reality today follow¬
was
$395,000 for
building.
ress.
equip
and Corporate
on
follow:
One
Distributors of
new
Nearly, $2,509,000 for acquiring
the rights of Way and construct¬
-f
j
j
improve¬ ing storm sewers and conduits,
*
and World Bank
improved
and
new
baseball
Trust Officer of
Trust
Co.,
was
specializes
in
Charles W. McBride of Farm¬
producing precision cold-rolled ers State Bank,
West
Salem,
strip steel and in applying coat¬ Vice-President, and William A.
ings of non-ferrous metals and Reckman of
Western
Bank
&
lacquers to strip steel sold to Trust Co., Cincinnati, re-elected
The
visioning
victory,
swimming pools, bath¬
houses, principally to aid in com¬
batting juvenile delinquency.
bon, McCormick & Co.; Collin,
Five and three-quarter million
Norton & Co.; Allen C. Ewing
dollars to improve sewage dis¬
& Co.; Grubbs, Scott &
Co.,
posal works, build new vats and
and Stern, Frank & Meyer.
eliminate the present necessity of
*
*
dumping 500,000 gallons of raw
Ford B. Russell, President of
sludge a day into Cuyahoga River.
Co.; Paine, Webber, Jackson &
Curtis; Reynolds & Co.; Keb-
the
.
morgue
*
£
-
new
the east side of town
on
the
one
advances
to
by Gov¬
ernment obligations without re¬
gard to maturity or call date.
member
airport
and
to
The 1% rate is now in effect,
applicable
about the happi¬
a
home for the aged and infirm.
Over $500,000 for an auxiliary
est person in the city following
be¬
was
"inflationary pressures."
'jr
was
Five million dollars for
already large municipal airport.
He announced that action on the
contributed
rate
lower
Cleveland,
of
loans
which
created has passed and
*
authorized
on
the emergency for
was
the
.
A
of 1%
He said the reduction
ter net income was
sues
Vz
Burke
Thomas A.
playgrounds, better city parks,
planting of thousands of new
trees and expansion of the city's
to member banks.
mon now
filed by
Mayor
eliminate
would
the disease here in 20 years.
predicted that all
issues would be passed.
initial disbursement of 37J/2 cents on new $1 par
stock, representing an
common
issues, by large
No authority or offi¬
majorities.
Thursday, May 23, 1946
improvement
of 24 bond
total
;
I.
THE COMMERCIAL & FINANCIAL CHRONICLE
2792
on
' }.)/
;
.■•»■
to
member
and the next year
States as a
British
Trade
United
the
of
the
Mission to this country. He headed
the
British Food Mission to the
States during 1941-1944,
United
in which year
he became the rep¬
the United King¬
in
the United
States. Subsequently he became
chairman of the British Supply
Council in Washington.
resentative
dom
of
Treasury
Mr. Brand's wife was a sister of
the present Lady Astor and for a
time
the couple lived on the
Langhorne estate near Charlottes¬
ville, Va.
-v !
;
Kenneth E. Johnson Opens
INDIANAPOLIS,
IND.
—
Ken-
neth E. Johnson has formed Ken¬
•Composite Index for 20 bonds.
flO
lower grade bonds. tlO higher grade bonds.
{Spread between high grade and lowef
grade bonds.
• ^ ■■ •
;
Foregoing data compiled by J. A. White
at 2035
& Co.. Cincinnati.
ness.
nethE. Johnson & Co. with offices
engage
North; Meridian Street; to
in the investment busi¬
.
.
■.
.I,
i
y£
.Volume 163
Number 4492
*
lUk&Cal
in Feder?!
Unemployment Ins. Rate
Congress was urged on
May 20
by Chairman
Altmeyer of the So-
?S Security Board to reduce the
%g * eaeral Unemployment tax to
^ /o, it was
made
known
in
have
now
i*1
of
This
is
jnany
the
should
we
3}5oo,000
as
have
from
months
unemployed,
merged into a
single national system has strong
opposition.
Apparently some
people
what
feel
sort
that
question of
unemployment in¬
of
laws
surance
the
should
we
have
is
something that should be left en¬
tirely to the States to decide."
Short of establishing a Federal
system, Altmeyer recommended
these changes in the present
sys¬
tem:
"1. That
the
3%
Federal
un¬
employment tax rate be reduced
to 2%.
"2. That the States be permitted
to reduce the emoloyers' contribu¬
tion rate below the standard 1.8%
for which employers could claim
credit against the Federal unem¬
enjoyed
by
the
masses
throughout the nation," Mr. Rom¬
were
dous
short of the mark set in
said.
"Even
and
truck
today
of
we
first
post-war
bile Manufac¬
War
a
t i
o
at a
confer-
n,
press
in
ence
the
Ho¬
Biltmore
tel, New York
George Romney
City, May 17.
Mr. Romney
said
that
while the production
since V-J Day has been "sorely
disappointing" because of strikes,
shortages
and
controls,
he
pointed out that once the mo¬
tor industry hits its stride it will
"register
the
an
nation
economic impact on
that will equal the
showing after World War I."
In 1919, he pointed out, motor
vehicle
registration in America
amounted to only 7,565,446 or one
vehicle for every 13 persons.
Within a decade, however, the
outpouring
production
brought
cars, trucks and bus registration
up to 26,501,443 or one for every
generated
nation
panded
out
on
the
the
cHies
have fallen
1919, the
after World
new
brought the
road
so
employ¬
and
that
ex¬
better
year
proach, Americans can change the
low production totals overnight.
We have the plant, the equip¬
ment, the skilled manpower. All
we need is agreement on the com¬
mon objective—production. We're
rapidly approaching it in Detroit
and other motor cities. We need it
in the mines, the mills and in Gov¬
If
ernment.
the
we
had
ended,
war
would already be
trucks
and
at
an
had
it
since
our
industry
producing cars
annual
rate
of
5,000,000 units.
"Don't
ment,
blame
labor,
manage¬
other particular
It's the fault of everyone
or
group.
any
we set our sights
goal—quick quan¬
tity production of consumer goods
needed everywhere."
a
the
of the
United
&-
\v
States
year
countries
common
oh
represented
the
Board.
when the pop¬
of
supply are concerned, ; al¬
though the total production from
those areas is 1,000,000 tons more
than last year, the allocations iti
question will result in a per capi¬
ulation of the
ta
United
of 73
900,000
less
than
was
sugar
re¬
States
than
improvement in the sugar sit¬
uation call for "(a) more realism
an
Government
Ody
eration
Lamborn
H.
tually ignored during that period
experi¬
enced
industry
men,
Lamborn
gave little encouragement for an
improvement in the sugar situa¬
the counsel and advice of
the
next
two
the
Government
takes
steps to increase sugar
Harold
the
di¬
R.
New
and Muriel A.
pro¬
17th
Colvin,
York
form
Stock
member of
Exchange,
Bailey will
Colvin
&
on June
Bailey with
offices at 61 Broadway, New York
The Lamborn "Diagnosis of the
Sugar Situation" contains a com¬
analysis
of
the
of
April
the
Combined
City, to engage in the securities
business.
Miss Bailey was pre¬
a partner in Belden & Co.,
24
viously
which will dissolve
Food
»■*■
1
June 15th.
on
1
■
Board. The Combined Food Board
Teletype for Gillespie
is
F.
Gillespie & Co., Inc., of
67 Wall Street, New York City,
installed
is
an
the United
teletype N.Y. 1-1654 in
their syndicate and trading de¬
It
partment.
809,000
a
/
Carrere & Co. to Admit 5
international body on which
Carrere
represented the United States,
New
reported the allocation of
tons
controlled
by
11,-
the
York
New
Kingdom, and Canada.
York
&
Co., 65 Broadway,
City, members of the
Stock Exchange, will
admit Helen C. Barbour to limited
partnership in the firm
on
May 29.
Says Schwellenbach
Aids Civil Disobedience
Robert R.
Wason, President of
This announcement is not
the National Association of Manu¬
facturers, in referring, on May 20,
at Denver, Colo., to the address of
the Secretary
of Labor,
Lewis
Schwellenbach,
to
the
United
Steel Workers (CIO) in Atlantic
City on May 17, charged that Mr.
Schwellenbach
had
created
of civil
litical
favoritism
leaders.
from
we
disobedience
labor
A United Press
Denver,
quote,
Mr.
to
on
by
Colo.,
a
an
ojjer oj securities jor sale
or a
solicitation oj
an
ojjer to buy securities.
New Issue
May 23, 1946
a
supergovernment
of
organized
labor and was contributing to a
rise
Not
Columbus and Southern Ohio Electric
po¬
Company
union
dispatch
from
744,455 Common Shares
which
May 20 added:
Wason
also
"Schwellenbach
charged
fed
the
that
fires
($10 Par Value)
of
disobedience
civil
the
political
unions at
nomic
a
by approving
activity
of
labor
time when their
anarchy is at
eco¬
all-time
an
high.
"He did this at
a
time when the
Price $53.50 per share
was living under a reprieve
from John L. Lewis (AFL United
public
Mine Workers President)
and from A. F. Whitney
coal,
(Train¬
men's Brotherhood President) as
to train service."
as
Copies oj the prospectus may be obtained jrom such of the undersigned (U>ho are among the underwriters named in the prospectus) as may legally ojjer these securities under applicable securities laws.
Rejoin Maples Goldschtnidt
SOUTH
NORWALK,
Dillon, Read & Co. Inc.
CONN.—
Thomas F. Barry and John T. Coe
have rejoined the staff of Maples
&
Goldschmidt, 85
Washington
The First Boston
Corporation
Harriman
*
in
the armed forces.
in
the
U.
Mr. Coe
Marine
S.
was
Ladenburg, Thalmann & Co.
Ripley & Co.
Incorporated
Street, members of the New York
Stock Exchange, after serving
Lazard Freres & Co.
Stone & Webster Securities Corporation
Union Securities Corporation
Corps and Mr.
Barry in the Army.
Hemphill, Noyes & Co.
Ormond Laird Officer
Merrill
Lee Higginson Corporation
Hornblower & Weeb
Paine, Webber, Jacbon & Curtis
Lynch, Pierce, Fenner & Beane
Of Frank & Belden
MINNEAPOLIS,
mond E. Laird is
Frank
&
MINN. —Or¬
now
Belden,
Inc.,
Roanoke
Building, members of the Minneapolis-St.
Paul
Mr. Laird,
firm
in
for
Stock
Exchange.
who has been with the
some
time,
is also now
charge of the trading depart¬
ments
A. C. Allyn
s
and Company
Incorporated
secretary of
W. C.
Langley & Co.
Shields &
I
advice
Colvin & Bailey Forming
years
duction.
report
handling
of the experi¬
enced
men
in
productions and
processing ends of the cane and
beet sugar industries; and (c) all
emphasis
on
production —- and
more production!"
for almost five years and has vir¬
plete
by
practical
ly dominated and controlled every
detail of the entire sugar business
rect
in
(b) more consid¬
Government of the
sugar program;
has complete¬
the
Government
in
Observing
that the U. S.
during
pounds—exactly the same as
provided last year.
-
Lamborn's recommendations for
at
present
time.
tion
areas
available for U. S. consumers'
that
20,000,000
less
S;
U.
the
as
sugar
tons
they
Insofar
•
receive
unless
and will be until
on
people
the
"But with the right mental ap¬
E.
four persons.
"This
tremen¬
production
I.
turers Associ-
material
America's
with
car
plant
Tight Sugar Situation
Diagnosis lays shortage to U. S, Government policy, which it holds
has ignored advice of experienced Men in industry. Calls for more
emphasis on production.
In a complete study of the current sugar situation, Ody H. Lam¬
born, President, of Lamborn & Co.,.Inc., sugar brokers, points out that
ceived in 1927
Automo¬
ment in the millions,
ployment tax."
standards
recreation
and
ney
e
saying:
be
Lamborn Sees
will
manager of
as
unemployment insur¬
peacetime
George Romn e y,
general
accumulated reserves," he said.
^e
Associated
Press
quoted
Mr. Altmeyer as
systems
this
of
health
of
year, was announced by
average State could finance
benefits with contribution rate of
less than 2%
without drawing on
51 separate
July 1,
to June
1945,
30
of
"The Board appreciates that its
recommendation that the present
'
'
An estimated production of 1,200,000 passenger cars and trucks
contributions.
if
'
this
a
than four years'
employers'
"Even
'
Following the pattern after World War One, the motor industry is
about to stimulate years of national prosperity, says George Romney.
on
the equivalent
^
^
Industry Anticipating
Greatly Accelerated Production
deposit with
Treasury nearly $7
unemployment
tax
Federal
DUlion
funds.
ance
a
by the automobile industry in the first 12
May 20, which added:
operatio n#
Altmeyer disclosed that
orates
more
'
on
Mr.
the
J
Automobile
united Press
dispatch from Wash¬
ington
2793
THE COMMERCIAL & FINANCIAL CHRONICLE
Company
Central Republic Company
Clark, Dodge & Co.
McDonald & Company
The Ohio Company
(Incorporated)
Spencer Trask & Co.
Tucker, Anthony & Co.
s
>
2794
THE COMMERCIAL & FINANCIAL
CHRONICLE
Thursday, May 23, 1946
IcclesBiges Reserve
Bank Law Revision
Looks
for
surplus
""With most real estate bonds moving inexorably up to par,
of equity situations, above par, the number of issues
ducing high yields is dwindling rapidly,
t
One
rather
alive
issue, yielding
approximately 7%
market levels, presents itself in the 5%
at
Chairman
Eccles
pro¬
to
new
Cities Service Co.
May
-
of
22
Federal
—
Re¬
System
serve
today
told
Banking Committee
House
current
budget
opposed
WASHINGTON,
and
ureases
is
Bond drive.
aovernment
The Roosevelt Hotel
substantial
no
and
there
\
subordinated income deben¬
the
that
is
no
question
tures, due May 1, 1984, obligation of the Roosevelt Hotel Corporatidn.
The compay leases and operates
the 1,100 room, 22-story Roosevelt exchangeable on a par for
par
Hotel located at 45th and 46th basis under the plan of
reorgan¬
Streets and Madison Avenue, New ization declared effective in
May,
York City, in the immediate vi¬ 1944. Interest is payable
May and
islation
Board
addi¬
cinity of Grand Central Terminal.
November
tional
powers
The " property
cumulative rate of 5% per annum
is leased from the
Neiv./York State Realty and Ter¬
minal
Company
(subsidiary of
the N. Y. Central Railroad Co.)
until1964 at
an
annual basic rent¬
"of $350,000
al
plus an additional
contingent upon gross in¬
or
net earnings.
Through
the war years the property con¬
and
a
out
of
tinued to be well-maintained and
the management has reported that
it anticipates only normal expen¬
ditures for replacement of carpet¬
ing, furniture and furnishings.
each
sinking
fund
25%
net
of
is
company has the option,
of
depositing
bonds
rests
statements
in
for
e m.s
will
connection
with
de¬
1944
with
b.l
arise in future
face
a
proper
managem e n t
earning
power of the hotel
it might be
well to examine the corporation's
income
r o
of
Vlarriner
S.
the
Debt
Eccles
the
and
1945, the two years that have
elapsed since the reorganization.
monetary
to
said
he
situation.
doesn't
and
e
it
of
nt i
Mr.
think
bring about
Public
r e
Eccles
possible
substantial
the
in
earnings
1920's
common^
figured be¬
and depreciation.
The company is now in strong
balance
sheet
shows
able progress in shuffling off iso¬
lated properties/
refunding and
retiring securities, etc. However,
of
a
amounted
be done and the
$149,000,000, and cash
to $144,000,000.
The parent company balance sheet
showed cash assets of nearly $50,000,000 against current liabilities
of some $13,000,000. However, this
idle cash was recently employed
to retire $35,000,000 5%
deben¬
assets
-
tures
due
tirement
Federal
Cities
(less
the
increase
would
amount
self
duction of bank
terest
ernment bonds any
$2,081,245.80 in 5% debentures. In
of the total amount of debentures
he
has, it is true, been built
addition
outstanding and
tial Federal
holders
of
$163,200
$347,004,
than 16%
or more
value of 6% preferred stock had
not .converted their stock into de¬
more than three
times interest requirements.
For
the year of 1945 gross income rose
bentures for which
to
par
they became
asked
20%
and
than
four
requirements.
bond
new
drive
"It
helpful, Mr. Eccles
re¬
would only result in
increasing their Govern¬
ment bond holdings.
That's ex¬
actly what happened in the last
drive," he said.
inter¬
Earnings
be
a
banks
obligation
times
budget surplus. When
whether
plied,
than
or more
of the debenture
more
est
$422,267,
time soon and
prospect of a substan¬
no
would
$5,012,363 and net available for
interest to
sees
re¬
holdings of Gov¬
for
the current year are running far
ahead of those for 1945, and based
He also pointed out that in the
Eighth War Loan Drive the Gov¬
results of the first quarter
expected that the interest
requirements will be earned more
been
than five times
from
borrowed
upon
BLOCKS OF
REAL ESTATE
above
pay
prevailing bid prices
and in
some
above
instances
tain
blocks
lected
unlisted
act
Edward Bartsch,
President of
Rayonier Incorporated, announced
today that the following
have
se¬
real
been
securities.
estate
elected
rectors:
SHASKAN & CO.
to
of
the
board
Overseas
Co.
Inc., and
Vice-President
Members New York Stock Exchange
Members New York Curb Exchange
of
for
Miriam
on
for
pur¬
the floor of the
Francis
di¬
Gerdes
Frank Doyle &
1941).
Arrears
$80
some
as
order
last year on its 600
and
a
recapitalization
refunding would seem to be in
or
A
small
utility
in
company,
amount
to
Light, Power & Traction,
now
G.
Lauro
Hostetter
Co., died
on
of
solved
preferred,
preference and
$8.40 on the B preference.
Com¬
bined
arrears
aggregate
about
$47,000,000.
It
BB
Consolidated
in
has
holding
Cities
was
Eugene Bashore,
Blyth & Co.
to
of
Richard
D.
be considered
Frankenbush
generally assumed
preferred stocks (with arrears)
by part payment in cash, and ex¬
change for common stock of Cities
Cities
Service is roughly twooil, one-third utility.
Its
principal utility interests are in
Service
funded
Power
debt
&
would,
Light.
it has
assumed, be refunded into new 3s,
possibly with a convertible fea¬
other
ture.
system,
Traction.
Federal
Light
&
Both these systems are
But the company has never
(Continued
on page
2797)
Southwestern Public Service
Common
Common
Texas Public Service
Common
Puget Sound Power & Light
Common
ESTABLISHED
1879
Mr. Frankenbush will
continue
F. Weber, New York,
appointed Assistant Secretary
of the corporation.
Paine, Webber, Jackson & Curtis
on
May 29th.
William
was
a
as
partner in Franken¬
bush & Co.
BOUGHT AND SOLD
Securities
NOT
Participating In
Associated Gas Cr Electric Co*
Plan of Reorganization
Bldg. 2/45
Chanin Bldg. 1/45
Commodore
Hotel, Inc.
Convertible
Obligations Series "A" and
5%, 5V2%, 6%, 6V2%, and 7%
Preferred
51 East 42nd St. 3/56
"B"
Stocks
$5, $5.50, $6, $6.50 and $7 Dividend Series
Descriptive Circular
on
request
Preference
Broadway—Stock
Stocks
$4, $5, $5.50, $6 and $6.50 Dividend Series
Class
LJ.G0LDWATER&C0.
Members New York
Security Dealers Assn.
39
.
Incorporated
Members
New York 6, N. Y.
HAnover 2-8970
41
Broad
Teletype NY 1-1203
Offerings Wanted:
New
Street, New York 4
Sherneth Corp. 5«%s, 1956 W.S.
Mayflower Hotel Corp.
Common
f-$
1
Teletype NY 1-609
Central Ohio
Light & Power Com.
Munson Line "C" Units
Mohawk Rubber
Common
Roosevelt Hotel Inc.
Amott Baker & G o.
,
J. S. Strauss & Co.
EXbrook
Street, New York 5, N. Y.
870—7th Ave. Corp.
Westinghouse Bldg. 4/48
& 62
70 Pine
Consolidated Elect. & Gas Pfd.
Hotel Waldorf Astoria Corp.
"
Tele. SF 61
Common
Roosevelt Hotel 5s, 1964
Commodore Hotel, Inc. Com.
Montgomery St., San Francisco
and
G. A. Saxton & Co., Inc.
HAnover 2-2100
40 Wall St. 5s, 1966 W. S.
Poli New England Theatre
5/83
"A"
WHitchall 4-4970
Broadway New St. 3/61
155
Dealers Association
Savoy Plaza 3/6 1956 W.S.
165 Broadway 4^2/58
•
York Security
New York A. C. 2s, 1955
Beacon Hotel 2-4/58
1
Seligman, Lu bet kin & Co.
Broadway
*
4
1285
Incorporated
150 Broadway
Tel.
BArclay 7-4880
New York 7, N. Y.
Teletype NY
1-588
The
been
the Cities Service Power & Light
system, which in turn controls an¬
will
by the Exchange
dis¬
1945.
been
that Cities Service might retire its
thirds
May
Transfer of the Exchange mem¬
is
requiring
preferred
of May 31st.
bership of E. Richard Schwabach
Securities
500 Fifth Ave. 4-6 J/2 /49
61
arrears
preferred,
the first
on
the
on
SEC
13th.
Inc., both of New York.
Dlgby 4-4950
Teletype NY 1-953
Chanin
banks
off the
order.
$83
retail
divestment of the oil and whole¬
sale gas business.
Arkansas paid
(with the exception of a $3 pay¬
first
the
utility. However, the
has
appealed
to
the
a
the
courts
dividends for 14 years
the
a
probably have to be
since
as
company
ment
on
Gas,
Southwestern Electric Service
alternate
as
Exchange
William A.
President
Bell
commercial
will be withdrawn
Parker, Pres¬
ident of Incorporated Investors,
of Boston, Mass.; Morton H.
Fry,
<40 EXCHANGE PL., N.Y.
$3 billions of borrowing
no
complete.
company,
classed
the expense of the pre¬
stockholders, who have re¬
ceived
to
an¬
Company also has
Arkansas Natural
separated
at
ferred
of.
interests will
up some¬
Privilege of John D. Gerhart to
Rayonier Elects Directors
cer¬
of
more
changes':
prevailing of¬
fering prices for
over.
over
much
Taking into account this splen¬ chases of bonds by speculators and
record of earnings, the large others.
provisions for sinking fund pur¬
poses, and the excellent working
capital position of the company New York Stock Exchange
(approximately $500,000) it ap¬
Weekly Firm Changes
pears that these bonds, although
The New York Stock Exchange
debentures, are well secured and
has announced the following firm
behind the market.
WANTED
will
than it needed, and that there has
is
did
SECURITIES
We
ernment
it
what
remains
to
so
is part whole¬
sale and part retail, and the two
about $1,080,000 or 290 a share.
The
company's cash position
a
or
smaller
holding
in
to
In 1944 gross income was $4,616,434 and net available for in¬
Service
work
job may take
utility
interests
which it will probably divest-it¬
to
taxes)
of
year
some
1950,
debt
deal
good
other
reducing
the
approximately
$100,000,000. Savings from this re¬
funded
—
di¬
and have made consider¬
rectives
net
debt
As at Dec. 31, 1945, the funded
of the company consisted of
—
being "integrated" under SEC
were
financial condition. The consolid¬
assets
which
the
on
Reserve
whereas
stock
years
stock have remained between $3 and
common
fore write-offs
deal
however,
Since the security of these
bentures
giving
ated
P
The
in
leg¬
Cities Service's consolidated earnings
$4, last year's
figure being $3.12. However, adjusting earnings to the new tax
basis,
1945 would have shown slightly over $4. Moreover, the
provision for
depletion, depreciation, etc. (including the accelerated write-off of
war plants) exceeded
$52,000,000—equivalent to about $14 a share—
for the
to enable it to
provided
income.
the
for
the
the
at
year
need
amount in lieu of cash.
sum.
come
of
about
During, the past four
Gilbert J. Postley & Co.
29 BROADWAY, NEW YORK 6, N. Y.
Direct Wire to
Chicago
-.'V,
•
Volume
'■1
V:U
163
Number 4492
.
M
-
54?* •
'
^
THE COMMERCIAL & FINANCIAL CHRONICLE
2795
•:.
dition of the
Tomorrow's
will
be worsened.
will
be
for
ous
Markets
Walter
a
heavy short position danger¬
market,
shorts.
Under
fear of
inflation
is
dan¬
not
gling overhead like
Damo-
a
clean sword, a short
in a market which
Says—
ordi¬
circumstances where the
nary
Whyte
is
so
the
small
who
man
But that
satisfaction
to
of the market until
position enough rally is
a
^
I
*
A suddeh
there is
am aware
a
popu¬
lar belief that with stock held
outright,
posed
95% of it is sup¬
as
vitalize
But better too
piece of
news can
inflation
an
-
harried
public into some wild buying.
If, at the same time, an un¬
be,
to
going short comfortable short position ex¬
going out and ists, the subsequent rally can
borrowing the stock. At least stretch a move from a normal
doesn't require
that
is
But
unless
what
changed
sell
a
them
I've
been
things
told. three point advance to some¬
have thing like ten points or even
lot since I used to
It
more.
is
fear
that
can
the
at
market, I bring this about. Fear by the
can't see how
owning the shorts for "there's no limit
stock makes any difference. to how far
up they can. go,"
When you go short you still and fear
by the longs that if
have
declare
to
In
it.
that
they don't get in at once the
have to wait until chance will be gone forever.
❖
*
long stock is sold ahead of
yours. This means that about
The market is now teeter¬
the only time you can go
ing on the edge of an over¬
short at a fairly good price is
loaded short position.
Many
when the market is advanc¬ of
these
shorts
are
taking
ing.
It doesn't take any their first venture into a
case
public doesn't sell on rallies
—long or short stock. Public
selling, and some professional
selling, takes place on weak¬
The
ness.
that
fact
it's
all
doesn't mean any¬
thing. Fear is the biggest mo¬
tivating factor in any retreat,
wrong
virhether
ket
it is in the stock
mar¬
in life.
or
phase of trading they know
little
about.
from
starts
venture
to
the advisors
If
a
rally
the
here,
covering of the
can
bring about
panic
newcomers
rally that
a
will make the front
pages.
#
If such
here
*
than too
an
article attacking
"monopoly^
——
capitalism"
as
the enemies of years of the postwar period, is an
peace, who are working against important landmark on the road
the policies of the Soviet Union, leading to further consolidation
#
The
is
people,
by the inability of the
more
fed up
market
to
and
answer
more
advance,
coyly putting
are
now
"no
classes
or
disturbing
Although
only
a
the
of
few
months
have elapsed since the end of the
Second World War, with its de¬
struction and sacrifices
on
a
scale
without
parallel in history, the
people of the Soviet Union al¬
ready have a scientific program of
Soviet State and
nomic
our
The text of the Embassy's state¬
ment follows:
and
cultural
country.
plan,
This
"Jit-.-
great many others
Just like
asking about it.
position
long
a
is
USSR. It
is
a
new
demonstration
the might of the Soviet social
of
and
political system.
;
healthy for the technical
to the Soviet economic system. In
FID Banks Place Debs.
A successful offering of an issue
of
debentures
Intermediate
for
Credit
the
Federal
Banks
was
peoples
the coming
will
coming period will be
Union
that
will
was
five
the Soviet
only rebuild all
destroyed in the war but
attain
years
not
a
considerably
level of
production
exceeding the pre¬
war.
made
May
20
by
Charles
R.
dreds
these
of
and
of
living in
countries
thousands
a
certainty.
is
the
Government
one
,
The
financing
con¬
are
nomic
and
country
cultural
in
life
of
first
the
the
stands
out clearly. In the Soviet
(Continued on page 2813)
five
of these Debenturesfor sale,
or as an
of record only and is under no circumstances to be construed as an offering
ofer to buy, or as a solicitation of an oferto buy, any of such Debentures.
offering is made only by the Prospectus.
99 WALL STREET
NEW YORK 5, N. Y.
$20,000,000
SUGAR
Caterpillar Tractor Co.
Exports—Imports—Futures
Ten-Year 2% Debentures
Due
May 1,1956
Price 100.75% and accrued interest
1858
Securities
1
H. Hentz & Co.
Copies of the Prospectus
New
York
New
Schwabacher & Co.
New York Stock Exchange
;v
|;
J <14
New York 5, N. Y.
Wall Street
OOrtlandt 7-4150'
;
Teletype NY 1-928
Orleans
Board
f
Francisco
Monterey
—
—
Santa
Oakland
—
Barbara
Sacramento
Fresno
be obtainedfrom the undersigned only by
of
whom ■
Blyth & Co., Inc.
Inc.
Trad*
Exchange
other Exchanges
N. Y, Cotton
Dean Witter & Co.
Exchange Bldg.
NEW YORK 4,
Stone & Webster Securities Corporation
Harris, Hall & Company
N. Y.
(Incorporated)
CHICAGO
persons to
Cotton
Private Wires to Principal Offices
San
may
legally offer these securities under applicable securities laws.
Exchange
Exchange,
Chicago Board of Trade
i
may
Exchange
Chicago
And
undersigned
Exchange
Curb
New York Curb Exchange (Associate)
%
Stock
Commodity
New
Members
York
the
•
Cotton
York
New
haunted
by the specter of unemployment.
programs,
Soviet
The
Members
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
un¬
country where in respect to
of debentures outstanding will be
/Pacific Coast
;
already
are
state of alarm and
The
problem
of
establishing
promise healthy conformity between pro¬
sisted of $24,035,000 0.90%
performance are never at duction and consumption, insolvcon¬ and
Every
Soviet
citizen able under capitalism, is the cause
solidated debentures dated June variance.
knows that
the new
Five-Year of fierce
competition and bitter
3, 1946, and due March 1, 1947.
Plan, which has been enacted as conflict of interests in world mar¬
The
issue
was
placed at par. a law of the State, will be ful¬
kets, with all the attendant con¬
Of the proceeds, $17,180,000 will filled, and all Soviet citizens will
sequences.
work with
might and main in
be used to retire a like amount of
A Single Policy
order considerably to overfulfil!
debentures maturing June 1, 1946,
it.
Against this background the dif¬
and $6,855,000 is new money.
As
The new Stalin Five-Year Plan, ference in conditions which deter¬
of June 3, 1946, the total amount
mine the trend of foreign policy
which
will
determine
the
eco¬
banks.
DIgby 4-2727
Pacific Coast Exchanges
the
Hun¬
Millions of workers in
con¬
Orders Executed oil
,
of cruel
disturbances.
America and Britain
The Soviet Union, as we know,
Dunn, New York, fiscal agent for
a
shocks
hew Issue
Established
'
<
un¬
heavy
of1
which
LAMBORN & CO.
are
eco¬
practical
effect is already being given in
the vast expanse from Koenigsberg to the Kurile Islands, repre¬
sents a new triumph of the policy
of the Communist Party of the
to
strange waters—a short posi¬
tion.- A
the
progress
Remember
foot into
one
are
interested in
peaceful relations."
groups
This advertisement appears as a matter
that
there
where
rally is seen from
long-term position
What has all this to do with
going short?
the May 16 issue of the "Information Bulletin," issued
by
Embassy of the Union of Soviet Socialist Republics, there is
In
the
$306,630,000.
*
Holds selfish
a
the
-
:!:
I'll
add that many of
know
as
little.
soon
capable of engendering new forces of aggression."
instigate Anti-Soviet campaign.
The new Stalin Five-Year Plan
peaceful development. This pro¬
that
old gram, which is as
majestic as it will make our country a stronger
saw, "A bull can make money; is practical, is the law on the power than ever. And the knowl¬
Five-Year
Plan
for
Restoration edge of this inspires Soviet men
a bear can make
money; a pig
and Development of the National and women with unshakable con¬
can't."
Economy of the USSR in 1946- fidence in the future.
*
*
*
1950, adopted at the session of the
In ihe Soviet Union, thanks to
More next Thursday.
Supreme
Soviet
of
the
USSR its political and social system and
which concluded on March 19.
to its socialist planned economy,
—Walter Whyte
crises and unemployment are un¬
The Next Five Years
known. The process
[The views expressed in this
of postwar
The new Stalin Five-Year Plan reconversion is not
article do not necessarily at any
hampered in
time coincide with those of the is an epochal document. It en¬ our country by the contradictions
Chronicle.
They are presented os visages a rate of rehabilitation and impediments so characteristic
and development of our national of this
those of the author only.]
process in the capitalist
economy hitherto unknown, even countries. For the masses of the
late.
you
shrewdness to know that the
is
interests
of
the tyro.
*
In an "Information Bulletin/' containing "the Soviet Union's Pol¬
icy for Peace/' the Embassy contends that "Monopoly Capitalism
strong
seen.
'
*
Embassy Says Tnfluenlial
Selfish Groups' Oppose Peace
So my considered ad¬
vice is to avoid the short side
cover.
:|s
:Js
gives every
having turned
So far as the longs are con¬
=By WALTER WHYTE=
down, is not very dangerous.
cerned there is no change in
Market temporarily oversold One Can continue selling on the
advice given here in the
the way up just as one can
points to a rally with shorts
past few weeks.
You have
squeezed. If seen use strength buy on the way down. The certain stocks which show
to unload not to
average position, if the origi¬
buy.
you a profit.
If their prices
nal premise is correct, will
For the past few weeks I
improve on any rally from
be enhanced. But we are not
have been either cautious or
here you will have still larger
living under ordinary condi¬
outright bearish. In no case
profits,. When, as and if spe¬
tions today. The
way stock is cific
'haVe I, however,
objectives are seen the
suggested
being bought is in itself a
short sales. If this seems
sugestion is to accept the
par¬
dangerous sign. But just as
adoxical my
profits. I don't for a minute
reply is that a it is
dangerous for the long, believe
short position under
you'll get the - top
present it is
equally dangerous for the
day regulations is just plain
eighth. Perhaps you may
short; perhaps more so.
even
wastefulness for anybody but
regret selling too soon.
indication
Russian
forced to
was
May 23, 1946
'
<
THE COMMERCIAL & FINANCIAL CHRONICLE
2796
additions
and
betterments,
Thursday, May 23, 1946
were
sufficient therefor.
In the past there has been some
criticism of the Erie management
for not maintaining a
dividend on
sufficient,
earned, to give an annual
income equivalent to that which
would
have
been
paid on the
bonds for which it was exchanged
in reorganization.
At least, how¬
ever, the Erie management has
just recently declared the regular
$0.50 semi-annual dividend on the
junior equity even in the face of
a quite substantial deficit for the
first four months of the year, Erie
the
stock
common
when
within and without the industry,
depressing earnings reports, and sporadic un¬
favorable dividend news of the past few weeks, the railroad stock
market has been acting remarkably well. Illinois Terminal Railroad
directors at their April meeting voted not to institute the dividend
policy that had been generally expected on the basis of statements
Considering labor developments
m
the succession of very
made
at
the time
initially
stock was
New waukee, St. Paul & Pacific, at the
fall.
last
issued
Central
York
the
passed
directors
their dividend, and at
the annual
meeting of Chicago & Eastern Il¬
linois the president spoke in a
gloomy manner as to divi¬
prospects. Apparently the
general speculating public is will¬
ing to look upon these dividend
very
dend
The road's
road's annual meeting.
reorganization was consummated
only a few months ago but the ef¬
plan was Jan.
fective date of the
1, 1944 and income accrues on the
new securities from that date. On
dividend of
$5.00 a share was paid on the new
actions and pessimistic statements preferred out of the earnings from
Mr. Scandrett told stock¬
merely as a form of propaganda 1944.
underline the need
railroads
for
increased
calculated
the
of
to
Perhaps the most discouraging
statements
dividend
the
was
Scandrett, President
reorganized Chicago, Mil-
of Mr.
that
of the
holders that
the
Alabama
Mills, Inc.
although earnings for
company
for
1944 and
1945
ferred
dividend
requirements in
each year it was likely that direc¬
tors would wait until "conditions
a
are
to be paid in 1946 are from 1945
earnings and so regardless of
what the 1946 prospects may be
there is no excuse for withholding
the 1945 earnings, even on the
common.
Paul
St.
were
of fixed
burden
little
more
composed and
making any
less uncertain" before
payment out of 1945 earnings.
It
is an attitude of this sort
which stimulates public reaction
against the general principles fol¬
lowed in
reorganizations under
Section 77.
This preferred stock
heavy
even
stringent
or
charges
were
to constitute a
as
its
if
so
menace
of
the
might have
preferred
sympathy with
some
is little
year's earnings.
There
sympathy with this undue
much publicity is
being given
issued to old bondholders in to widespread claims that Section
partial settlement of their claims, 77 should be scrapped because it
with a specified dividend rate of has allowed roads like St. Paul to
$5.00 a year to be paid out of
accumulate too large financial re¬
earnings. The company had very
substantial
earnings throughout serves without benefit to bond
Common & Preferred
Chicago Railways
Cons. "A" 5s,
the war years, engaged in a com¬
prehensive property rehabilitation
during the trusteeship
period, and turned over to the
new
company a working capital
of over $100,000,000.
This is far
program
1927
what
above
Province of
considered
normally
would
be
every
Certainly
the new
the preferred stock,
justification to antici¬
that
their dividends would
necessary.
holders, and that reorganizations
consummated under the act have
too drastic.
proven
holders
had
4s, 4 xk s & 5s
pate
be
of
paid at least so long as earn¬
of
(Special
ing of dividends at this time be¬
cause
uncertainties
of
all
justified
be
made
a
for
good
the
can
claim
with Edgerton, Wykoff & Co., 621
South Spring Street.
to The Financial
(Special to The Financial Chronicle)
Chronicle)
LOS
CALIF. —
Jr.. is with
Fairman & Co., 210 West Seventh
National
Street.
O'Brien
Bank
Building.
Miss
previously with the
was
(Special to The Financial
LOS
(Special
to The
has
Chronicle)
Financial
MICH.—Harold
DETROIT,
connected
become
Keane & Co., Penobscot
C.
with
any
Street, Pasadena, Calif.
(Special to The financial
was previously with Lytle &
Co., and in the past with Palmer,
LOS
would
DETROIT,
MICH.
In
the
he
past
was
with
Baker, Simonds & Co.
with
now
Marxer
&
MICH.—Harry
(Special
to
Army.
Davies
with
(Special to The Financial
GRAND
Chronicle)
RAPIDS,
G.
Conger
is
MODESTO,
MICH.—
with
Greenawalt
-
HARTFORD,
SUPPORT
Mac-
&
Chronicle)
—
Frank
Raggio, Reed &
Co., Beaty Building.
Co.,
(Special to The Financial
Chronicle)
staff
Chronicle)
CALIF.—
FRANCISCO,
S.
Philip
CONN. — Charles
joined the staff of
& Co., 33 Lewis
Brothers
Eddy
the
Chronicle)
CALIF.
E. Smith is with
Building.
to The financial
C. Roberts has
New York 5, N. Y.
Russ
FRANCISCO,
CALIF.—
John A. Bryant is with Hill Rich¬
ards & Co., 1 Montgomery Street.
(Special to The Financial
(Special to The Financial
MEMBERS
231 So. LaSalle St., Chicago 4,
Mejia,
&
SAN
SAN
120 Broadway,
CALIF.—
connected
Paul H. Brown is now
C. G. McDonald & Co.
(Special
York Stock Exchange and other
leading Security and Commodity Exchs.
Chronicle)
The Financial
FRANCISCO,
SAN
N.
after serving in the U. S.
In the past he was with
ing,
joined the staff of At¬
Co., U. S. Bank
Parry has
Building.
to The Financial Chronicle)
DETROIT,
Chronicle)
PORTAND, OREG.—Edward T.
Building.
DETROIT, MICH.—Charles C.
Bechtel has rejoined II. V. Sattley
& Co., Hammond Building, after
serving in the U. S. Army.
(Special
Dal-
kinson, Jones &
to The Financial Chronicle)
(Special
Robert
North Water Street.
to The Financial
(Special
Company, Penobscot Building.
—
G. Frank is with Gardner F.
ton & Co., 735
(Special to The Financial Chronicle)
is
Good-'
Chronicle)
WIS.
MILWAUKEE,
DETROIT, MICH.—Charles McFarland
to The Financial
(Special
A. M. Kidder & Co., 600 Griswold
Street.
&
H.
Jay
—
Fisher has become associated with
Michigan Trust
New
associated,
now
win, 650 South Spring Street.
Chronicle)
to The Financial
Naughton
tt
±
Belden is
with Walston, Hoffman
Ralph
ings, after liberal allowances for subscribe to that theory.
Chronicle)
ANGELES, CALIF.—Rich¬
ard P.
Everham & Co.
(Special
^
Building.
He
It would be hard to find
railroad analyst who
Chronicle)
CALIF.—Jo¬
ANGELES,
seph W. Lucas, Jr., is with Reagan
&
Co., Inc., 234 East Colorado
organization has not been drastic
enough.
Randies,
D.
James
ODT.
could
that
ANGELES,
COLO. — Ella
A.
O'Brien has joined the staff of
Brereton, Rice & Co., Inc., First
DENVER,
White, Noble & Co., Buhl Build¬
contention
Chronicle)
&
Waddell
Purdy has become associated with
far from being too drastic the re¬
Financial
Street, New
Herrick,
at
be
to The
LOS
ANGELES, CALIF.—Staney A. Williams, previously with
Sope & Co., is now connected
York City.
If withhold¬
the old bond holders, as
Saskatchewan
(Special
Chronicle)
VT.— Gard¬
Co., Inc., 55 Liberty
caution, however, at a time when
was
Arden Farms
staff
i;he
stock
delay in declaring dividends
out of last
so
Financial
under depression conditions
holders
the
in
circumstances
The
to
Hinckley has been added to
ner I.
Hill
If
financial
sufficient to cover the pre¬
were
freight rates.
of
May 1, 1946 an initial
has taken the stand that dividends
(Special
BRATTLEBORO,
of
Dalton has joined the
Dean Witter & Co., 45
Montgomery Street.
Street.
(Special
111.
to
The Financial
Chronicle)
WINSTON-SALEM, N. C.—Jo(Special
to
The
Chronicle)
Financial
INDIANAPOLIS, IND. —Justin
Securities
eph F. Matera is with Kirehofer
& Arnold, Inc. |
L. Forsyth is with City
Specialists in
Corp., Circle Tower.
RAILROAD
61
SECURITIES
Selected Situations
(Special
PFLUGFELDER, BAMPTON & RUST
to The
Broadway, New York City
Pedigo has been added to the staff
of Gavin L. Payne
ance
(Special
Chicago, Indianapolis & Louisville Rwy. Co.
2ft
Broad Street
Mortgage Income 4s,
2nd Mortgage Income 4Y2s,
New York 4, N. Y.
Class
Telephone BOwling Green S-6400
Teletype NY 1-1063
A
We will discount
in
the
above
Stock
Eichler
1983
to
&
2003
VTC
profits and
(Special
assume
issued"
is
CALIF.—Ray
with
Co., 453
Bateman,
South Spring
losses
to The
Financial
ANGELES,
Chronicle)
.
CALIF.—G.
,
Bloomsburg &
contracts.
ney
are
(Special
LOS
Members New York Stock Exchange
with Blyth &
Co., Inc.,
&
to The Financial
Chronicle)
ANGELES, CALIF.—Ger¬
with
affiliated
Telephone REctor 2-7340
& Co., 650
5s, 1952
solved.
Carl Petersen to Become
Partner in
Carl
Crowell,
Weeden
South Spring Street.
Silberberg Co.
Petersen
will
acquire the
New York Stock Exchange mem¬
on
mitted
of
on
to
Daniel H.
Silberberg
May 29th will be ad¬
partnership in Silber¬
& Co., 61 Broadway, New
York City.
Other partners in the
firm are Mr. Silberberg and Allan
berg
W. Betts.
Mclaughlin, reuss & co.
BUDA CO.
Adams & Peck
63 Wall
GETCHELL MINE, INC.
BOND BROKERAGE SERVICE
Specializing in Railroad Securities
UNITED PUBLIC UTILITIES
Tele. NY 1-724
Philadelphia
Hartford
NEW YORK S
ONE WALL STREET
Street, New York 5
BOwling Green 9-8120
Boston
Members New York Stock Exchange
UNITED PUBLIC SERVICE
*
1. h. rothchild &
o/ Securities Dealers. Inc
TEL. HANOVER 2-1355
co.
Member of National Association
52
street
HAnover 2-9072
Glicken¬
municipal bond
1939, has been dis¬
Berwick
Bought—Sold—Quoted
Lembo,
Lembo,
brokers since
bership
ald M. Goodman, Jr., has become
120 BROADWAY, NEW YORK 5, N. Y.
■«
The partnership of
haus
and
SUTRO BROS. & CO.
*
&
Inc., with offices at 55 Liberty
Street, New York City, to deal in
State and Municipal Bonds and
United States Government Securi¬
Ralph Burbidge and Roy C. Tur215 West Sixth Street.
Susquehanna,.
announced of the
Glickenhaus
of
ties.
Chronicle)
Financial
firm
Street.
LOS
"when
The
ANGELES,
Mahaffie
L.
Co., Insur¬
&
Building.
LOS
1st
Formation is
INDIANAPOLIS, IND.—W. Lee
at all Times
GUARANTEED RAILROAD STOCKS-BONDS
Glickenhaus & Lembo, Inc.
Chronicle)
Financial
n.
y. c.
6
Tele. NY 1-1293
i
,
TELETYPE NY 1-2153
Philadelphia Telephone f- Lombard 9008
Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
because
Wanted-A National Policy That
Cuts Through Special Interests
(Continued from page 2788)
situation
if
the
government
of
given
us
in the struggle
devising plots to gobble
ployment.
government
must
sponsibility.
Its
to
cies
devour
both; in the meantime
have
can't
vied
share
the
manifold
with
one
re¬
agen¬
another
in
head and "give wajr to petty
line checks the very will to pro¬
lose
duce, which alone can checkmake
are
inflation.
not
Policy Should Cut
Through Special Interests
em-i
Here it is obvious that
ware,
while
Pennsylvania
and
New York sought ways and means
brandishing
they
ering
against
inflation and in behalf of full
Dela¬
simply
afford the going rates. Meanwhile
the precariously held official price
National
New Jersey spent most of its time
up
quite
From
this
vicious
circle
only
.can save us.
We must
policy which cuts through
special interests of every kind,
and implements our overwhelm¬
one
thing
have
a
2797
you
bick¬
internal dissension. Either
extend the beachhead or you
or
hold. The struggle we
engaged in, willy-nilly, did
your
when the Nazis and the
end
Japanese laid down their arms.
It is a complex struggle in which
it is easy to lose sight of our basic
objectives, difficult at times to dis¬
tinguish friend from foe. Yet if
we pause to think them through,
our
basic objectives are not so
obscure, and they are not very
blowing hot and cold, and there
Yet the European situation—in¬ has been no strong or coherent ing common interest in checking different from those which we
inflation
and
getting
down to saw and proclaimed so clearly in
deed, the whole world situation national policy.
It is an ironic
business. And then we must ac¬ the heat of battle.
today—is as tragically absurd as fact that the demand for a sharp
We want peace. We want lib¬
that, and so long as it remains so increase in wages was originally tually get down to business.
We want respect
Is this too much to ask of our¬ erty under law.
we can expect to see debts and
justified by the fear that the first
for basic human rights, never for¬
armaments mount, liberty progres¬ stages of reconversion would in¬ selves and our leaders, including
our labor leaders?
Nonsense: We getting the rights of minorities.
sively curtailed, standards of liv¬ volve large-scale unemployment
We want better living standards
ing depressed—all in the sacred and hence a sharp decline in pur¬ must ask and they must answer.
name of national defense. I bring
in
labor at home and abroad. We want as
chasing power. The event did not Personally, I believe
much
security as is consistent
you this message in no alarmist support that assumption and the unions, and in collective bargain¬
with freedom and the inevitable
Spirit and with no malicious de¬ inflationary potential of pent-up ing. I also believe that while in¬
sire to depress you on Commence¬ demand for goods continued to dustrial workers, like the rest of risks which help to make life the
ment Day.
I speak of these things plague the OPA and overflow into us, are interested in their take- exciting adventure it is.
We shall not have these things
only because they are so urgent black markets. Yet the result of home pay and want to see it in¬
To secure them
in their impact on your future as that wage policy today is wide¬ creased, they, too, can sometimes for the asking.
we must be ready to assume risks,
wives, mothers, professional or spread unemployment, long and be misled. Let me say that in this
to work overtime, to continue our
business women, and citizens of costly holidays for workers, with instance they have been.
education, and to give energetic
at least temporary cut-backs in
this great democracy.
and responsible attention to pub¬
There is no time to carry our their purchasing power and little Labor Needs Outspoken Criticism
lic affairs, as well as to our more
I realize that for one who calls
exploration
much
further,
and or nothing on the shelves to buy.
It is axiomatic, moreover, that himself a liberal to make such a immediate and personal jobs. As
certainly it would be futile to turn
citizens of a democracy we must
to the domestic scene for comfort unless the supply of goods speed¬ charge is most unfashionable.
I
or reassurance.
to
each
at
arms
other.
I shall not attempt
analyze, therefore, the complex
of the creeping paralysis
ily catches
up
with demand, the
know that even to
question, much
forces of inflation become too hot
less, criticize, union policies is to
easily get out invite the counter charge that one
which has invaded our industrial of hand. Then prices may be ex¬ is anti-union, anti-labor, reaction¬
plants, if not indeed the halls of pected to burst their ceilings, as ary and probably fascist. Unfor¬
unauthorized
channels
they tunately there are self-styled "lib¬
government. Certainly X have no in
wish to join the chorus of recrim¬ have done already.
Can higher erals" who would rather be un¬
ination or to read a wholesale in¬ nominal
wages
compensate for critically leftist than right; but
Will it help labor to in¬ it is now, in its moment of power,
dictment of labor and the poli¬ this?
ticians. You do not dispose of the crease wages further without a that labor most needs outspoken
problem by naming scapegoats. comparable increase in produc¬ and honest criticism. Meanwhile
The causes of this disastrous stale¬ tivity, thus giving a further boost I have faith in labor's capacity,
mate go deeper, I believe, than the to costs and prices?
Will a large once the issues are made clear, to
power or the intransigence of any segment of our workers, aided by recognize and respect the over¬
minimum wage laws and pressure riding importance of those basic
one man or group of men.
If you
believe, as I do, that the wage groups, price themselves perma¬ common interests on which our
policy of Mr. Lewis and Mr. Mur¬ nently out of a job? I could re¬ common future depends.
But it
ray was ill-conceived, ill-timed, cite instance af ter instance of peo¬ is up to us to make the issues
and ill-suited to the nation's needs, ple who want things done, but clear—and quickly.
it is well to remember that they don't get them done because the
Make no mistake about it.* In
had no monopoly of the assump¬ cost of men and materials exceeds
peace, as in war, you dare not sit
tion on which it was based, and the value of the
down on your hard-won beach¬
job to them; or
that many labor leaders did not
causes
share it.
to handle and may
a
nalion-wide
group, to insist that our
Government formulate and carry
pressure
through
policies
calculated
to
bring us constantly closer to these
objectives.
If
we
will be
it
fail,
ours.
the
ourselves
living
that brave
new
have
been
we
would find
long
last
in
we
told
throws some doubt
at
much
so
and
so
retiring the pre¬
ferred stocks which, with arrears,
amount to about $106,000,000 (not
including call premiums, which
might have to be included).: u
It remains a possibility that the
company might decide to sell its
,
stake
PHILADELPHIA, PA.—A. Web¬
ster Dougherty, Lieutenant-Col¬
onel, Air Corps, has returned from
military service to resume his
head
A.
Webster
1421
Chestnut
of
Dougherty & Co.,
Cities Service Power &
in
(after the latter conforms
SEC requirements)
together
Light
to
with its smaller utility interests—
perhaps
issuing
subscription
rights to the preferred or common
stockholders
the
as
custom
This might make a
cleaner cut operation.
Whether
the parent company would prefer
to have its final capital structure
bonds
and
common
preferred and
common
as
stock, or
stock, re¬
mains a little indefinite; from a
tax angle bonds seems preferable.
The company might, of course, re*
sort to a bank loan to help retire
remaining bonds. *
Whatever plan is finally adopt¬
ed, the outlook based on present
earning
power
for both
the
seems
favorable
preferred and com¬
mon stocks. The common, while it
has enjoyed a big advance to the
present level around 37, is still a
long way from the 1929 high
mark.
Correction
the
In
Financial Chronicle of
April 17th in reporting the asso¬
ciation of J. R. Werges with Irving
Street.
was
in
&
Company, First National
Building, St. Paul, Minn, it
indicated that Mr.
the
past
been
Company. We
Irving J.
Rice
are
&
Werges had
with
Angland
informed by
Company that
Mr. Werges has never been con¬
nected with Angland &
as
This advertisement appears of record
stated
Company
in the article.
only and is not, and is under no circumstances to be construed
offering of this Common Stock for sale or a solicitation of an offer to buy any of
learn.
such Stock. The
Body Blow to Recovery
to be an
offering is made only by the Prospectus.
What I do want to point out is,
first, the universal impact of this
stalemate in American production,
coming as it does when goods of
are so desperately needed
at home and abroad.
It is a body
425,000 Shares
all kinds
blow to American prestige, to re¬
in Europe, to our hopes for
peaceful and democratic world.
so clear and so flag¬
rant a betrayal of these hopes
could
hardly have o c c ur r e d.
covery
a
Allen B. DuMont Laboratories, Inc.
In wartime
Whether it is less disastrous now
in
critical
this
is
victory
a
first
year
question
we
the
would
of
Class A Common Stock
better not evade.
second
The
>
thing
I
want
(Par Value 10^)
to
point out is the disservice of this
intransigent policy to labor. I do
not refer merely to the revival
of restrictive legislation—some of
which bears
mine.
As
a
a name
identical with
matter of fact, I sus¬
Price $11 per share
pect that labor itself would ben¬
efit
from
an
honest
and
states¬
manlike revision and amplification
of existing laws,
designed to ap¬
ply to unions, as to other special
interests, clear principles of publice accountability. My fear is that
Copies of the Prospectus may be obtained from such of the several Underwriters,
including the undersigned, as are registered dealers in securities in this State.
having temporized with the prob¬
lem, Congress may now be spurred
by the crisis to hasty and illconsidered
action.
Indeed, the
have
would
Congress
deserved
had it been
the people generally
to accept the necessity for a loan
to the fatigued, much-bombed and
:still rationed British, and turned
their attention earlier to the prob¬
well
as
of
lems
as
threatening American pro-*
duction,
:;
the country
ready
•
~
No, I am thinking rather of the
tragic setback this wage policy has
1
Van Alstyne, Noel & Co.
May 23, 1946.
is
nowadays.
J. Rice &
little.
so
Dougherty Resumes Duties
as
the method
on
be used in
to
Bank
duties
program,
one-quarter of the funded debt
(using up. the cash on hand)
succeed,
we
world of which
far have learned
definite
a
and the recent retirement of about
responsibility
if
But
might be that
(Continued from page 2794)
announced
It is well to remember,
too, that the field of labor-man¬
agement relations is wider than
the problem of wages, and in the
intangibles of human relations,
management still has much to
A
constitute ourselves
Public Utility Securities
Kobbe, Gearhart & Company
Incorporated-
THE
2798
COMMERCIAL & FINANCIAL CHRONICLE
Thursday, May 23, 1946
—II
late
investment program that
.an
will fit
individual require¬
Having decided upon a
plan, do not allow temporary in¬
fluences
to
make
you
deviate
your
ments.
from
'In
fine
a
new
comprehensive
booklet
the
on
importance
of
planning your investments, Keystone Co. hits at the folly of expect¬
ing anything like maximum results from the usual disjointed invest¬
ment procedures of which so many otherwise thoughtful people are
guilty even today.
Under the heading, "The Emotional Hazard,"
this sponsor makes the following timely comments:
"Finally
let's
recognize • the
emotional hazard we must guard broke out in 1914? Probably not,
against in making our invest¬ yet these were remarkable op¬
ment decisions.
portunities for the. investors who
"When the news is bad and the
had
the
courage to
buy.
public is frightened, stock prices
"When the news is good and the
are low and yields are high.
This public is optimistic and confident,
is almost invariably the time that stock prices are high and yields
stocks should be purchased for in¬ are relatively low.
This is the
vestment, but it takes courage to time that investors should sell
buy them in face of discouraging stocks and take profits to avoid
news
and general lack of con¬ the ensuing decline, but investors
are usually reluctant to sell when
fidence.
i
"You
can
this mental
check
the
hazard in
effect
your
of
own
Did you buy stocks
1942, in the spring of
1938, in the summer of 1932, in
1921, or at the time that war
experience.
in
April,
confident
is
everyone
sure
and
feels
that continued holding would
add to profits.
check this, too, from
experience.
Did you
sell stocks in the spring of 1937,
"You
your
in
can
own
1928
in
'29, or in 1919?
Probably not, yet these were out¬
standing
opportunities
to
take
profits or avoid ensuing losses.
"Many investors are good buy¬
ers.
They step in at the right
time and buy, but they 'can't sell."
When the ensuing rise gets under
way,
or
they
are
carried
away
by
the general, optimism and instead
of selling when it is time to sell,
they waint to buy more.
Other
investors
sell, but having sold
time they overstay
the decline and are still holding
cash half way through the next
at
the
the
can
right
recovery.
it
courage
with'
cordance
The Emotional Hazard
?
it/ When
have
time to
is
to
your
act,
act in adpredeter¬
mined plan.
"The security
generous
very
age,
patience
ment."
in their M?y Port¬
Review,,
emplmrrze
the
importance of pubLe psychology
in shaping the extremes of cycli¬
market
cal
in
quote
We
'movements.
from
part
their
mes¬
sage:
•
!
who has been faced
with
the
problem of investing
money
for any length of time
cannot help but be impressed with
"Anyone
the
the
in
increase
factual
in¬
1
A PROSPECTUS ON REQUEST. FROM
"
YOUR INVESTMENT DEALER OR
frequently the
greatest investment handicap. In¬
vestors are frightened and hesi¬
tant at the very time that they
should have confidence and buy,
and are confident and want to buy
at
Distributors Group, Incorporated
63 Wall Street
New York 5, N. Y.
•
the
very
are
time they should be
selling.
"It is
easy
have been
to
what should
see
done in
the
past, and
plan logically
and objectively for the future.
The problem is emotion at the
time which prevents taking the
it is not difficult to
One
of the
action that should
NATIONAL
"The
first
step
of
have
said
research
work
office'
position today in an in¬
creasing member of investment
organizations.
...
"With
this
increase
great
factual
has
information
been
in
there
comparable
increase in
understanding? Do we really un¬
derstand
the
deep, underlying
a
forces back of the
movements
in
particularly in
security prices? With the vastly
increased
amount
of
currently
activity and
more
strike
essential
money,
of
tool
in
the
investing
of
especially in the selection
individual
securities.
should be helpful in
It
also
pointing out
where we are in the cycle and in
what
direction
headed.
In
we
appear
broader
this
to
be
field.
I
I
II
dustry. v."
^
Paper Industry
\
,
continues
tential
engaged in the industry generally
have enjoyed a sizable market ad¬
vance in the last year, a further
result
po¬
power.
willingness
a
strike
settled
is
a
wave
of
its result may
cause a
sharp recession in stock
prices. Should this occur it would
constitute an opportunity for in¬
vestment
at
bargain levels, for
the long-term outlook is excep¬
tionally bright."
to
as
■Jfi
the 20th floor of 120
Telephone and Tele¬
type numbers remain unchanged.
in
covering letter on a
Railroad Equipment folder.
a
Combination
In
in
equipment shares."
folder
The
look
1.
i.
A
New
A New
the
with the
Fund
better
this
And
offers
20th
Dow-
The combined
of the three funds
record
the
Stock
of the
movement
Industrials.
Jones
is
con¬
than the Aver¬
combined invest¬
dividend check On
a
day
each
of
month
throughout the year.
Fund
Literature
Investment
Commonwealth
Co.
—Portfolio folder showing secur¬
ities owned
.
.
.
of March 31, 1946.
as
Abbetit^-Current
Lord
of Abstracts.
.
of
Selected
issue
Selected Invest¬
.
.
ments Co.—Current
memo
American
ort use
Shares
in
Portfolio
memorandum showing diversifi¬
cation of a $10,000 investment as
of April 20, 1946.
..
National Se¬
building
out¬
estate;
an
curities
Current
&
Research
issue
of
Corp..—
National
Notes
listing several plans for "defense
Cycle of Prosperity
High in Rolling Stock
Requirements.
3.
Common
past year' in comparison
.
industry
Headings:
i.Oiiowing
the
over
under the
discusses
this
for
Union
and
Mutual
railroad
of
prices
bulle¬
investment
current
a
tin, Lord Abbett shows the com¬
bined performance of American
Business Shares, Affiliated Fund
new
time it resulted in substantial in¬
creases
on
Broadway.
ment
colt!" writes Hugh W. Long & Co.
H
Corp. have announced removal of
their New York offices to larger
age.
Equipment Industry
"The Iron Horse may still be a
Sj!
National Securities & Research
siderably
the Railroad
for
attractive in this industry."
appear
happen, however, that before the
pessimism
of the
profits tax, relaxation of
Government controls, the outlook
for an improved pulp supply, and
the many increased uses of paper.
Selected investment opportunities
look
to
elimination
the
of
excess
quarters
reflects
market
through the present stalemate to
future period.
It may well
''Feast"
sponsor.
companies
rise appears probable in view of
prospective increased profits as a
to
that
coal
of
stocks
Research
stock
general
the
this
concludes
"While
outlook/'
earning
"The
level,"
more
but that research is a valuable and
II
business
the
information, can we plan
"We don't know when investors
confidently with our who are
looking for undervalued
investment
program
than
we
industries will 'discover' railroad
could some years ago?
Will the
equipment shares. But the chart
general accuracy of future fore¬ in the enclosed folder shows that
casts be any higher than it has
in
the later stages of each bul'.
been in the past? :
j ., market in the past 30 years this
"There is no doubt in our minds
'discovery' -was made. And each
ahead
I
Investment
coal
the
Department of Distributors Group
in its current monthly report to
the directors.
"It's effects, from
the
point of view of the in¬
vestor, are of short-term rather
than
long-term nature.
It will
postpone, and for an increasingly
long period as it continues, the
economic
be taken.
these mental hazards is-to formu¬
"The
dominate
writes
broad cyclical
general
in
eliminating
Possible Recession ?,
As
before, the quality
being done in
the financial community has im¬
proved tremendously in recent
years.
Research occupies a 'front
we
I
.
time when many industries can be
be'tter information.
I
The current issue of National
At some stage in
cycle,
the
psychological Securities & Research Corp.'s In¬
far outweigh the purely vestment Timing is devoted to an
economic factors.
We strongly analysis of the "greater prosper¬
suspect that the present era—like ity ahead for paper industry." i
"The demand for paper appears
its predecessors—will end at a
time when business is most active to be on a permanently .higher
expected to realize their high
and
'
I
every
pared
more
I
than economics.
formation available today as com¬
with 20 years ago.
The
trend has certainly been towards
II
punchy statement, "A period
of feast for a feast or famine in¬
the
factors
folio
available
"Emotions
"It seems to, us that the ex¬
tremes of cyclical movements are
more in
the field of psychology
Put¬
Fund,
nam
some
,.
profitable and the outlook
favorable in the eyes of most in¬
formed people."
of* George
Trustees
The
we accept
reservations.
and
Facts Enough?
More
Are
markets offer a
reward for cour¬
and sound judg¬
research with
however,
of
original capital."
.
.
Hugh W.*
.
[
.
Unprecedented
Foreign De¬
April 29, 1946."
/
.
mand.
4. A Harvest of Orders.
The analysis is
SPECULATIVE
SERIES
Union Bond
Shares
Fund C
Priced af Market
Prospectus upon request from
your
investment dealer
€
ORDABBEFT GROUP
Prospectus
upon
introduced with
ffi 0% m in im i
]|
request
Frank
Baker, Baker, Weeks & Harden,
President
of
the
Philadelphia
Stock Exchange, has announced
the
appointment of George E.
Snyder, senior partner of George
E. Snyder & Co., as Vice-Presi¬
PUTNAM
-
FUND
NATIONAL SECURITIES &
Lord, Abbett '& Co.
dent of the
Smith,
Smith,
^Sod/on
INCORPORATED
Exchange. Edward B.■?
Jr., resident partner of
Barney & Co., has been
elected to the Board of Governers.
120 BROADWAY
New York
New York 5, N. Y.
Chicago
—-
Los
Angeles
/
Valentine
Prospectus upon request
SHARES OF CAPITAL STOCK OF
Putnam
Fund
Distributors, Inc.
on
Committee
John
H. Valentine, of John H.
Valentine Co., is serving on the.
Outing Committee of the New
Security Dealers Associa-i
York
tion.
Boston
50 State St.,
Ke
—
E.
or
RESEARCH CORPORATION
Geo. E. Snyder V.-P.
Of Phila. Stock Exch.
PHILADELPHIA, PA.
His
name
had been omitted
from the list of committee mem*:
one
bers announced by the Association
in the "Financial Chronicle,"
C
ian
>
COMMONWEALTH
INVESTMENT
Fund s
A
COMPANY
Diversified Investment Fund
with Redeemable Shares
1
A
Prospectus
from
your
may
be obtained
local investment dealer
Prospectus
or
50
Keystone Company
of Boston
Congress Street, Boston 9, Mass.
V
'
Prospectus on Request
be obtained from
-
your
The
may
local investment dealer,
★
or
r
THE
PARKER
CORPORATION
ONE COURT STREET, BOSTON 8< MASS.
A MUTUAL INVESTMENT FUND
GENERAL DISTRIBUTORS
Prospectus/rom
NORTH AMERICAN SECURITIES CO.
*S50O Ru»» Building
San Francisco 4,
California
r
your
220 Real Estate Trust
investment dealer
Building
•
j
J
Long & Co.—Reprint of Standard
&
Poor's
"The
Outlook"
dated
ot
Phila. 7, Pa.
f
Volume 163
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4492
2$h.9
\\
to
To
Their Use and Abuse
a
creative
be
large degree
of
lot
(Continued from
either directly or through special
devices within the activities of
page 2788)
ing business houses in every part
right to take satis- I of the United States. Yet, we are
faction in it.
It is a worthy il¬ not permitted to aid in building
a
lustration of the general support
given by all the major groups of
financial institutions in war fi¬
homes
for
We did not stop selling Govern¬
savings bonds to the public
purchases and transact other bus¬
iness in our city, beyond our own
ment
when
the
war
nancing. To every bank execu¬ immediate section of the coun¬
tive and employee who helped in try. We have proposed that we
our
successive
campaigns
and be given the power to buy FHA
gone
right
on
Worked
the promotion of sales
on
between
campaigns, the commit¬
tee extends its heartfelt thanks.
We
Bonds Held
In other respects the investment
of our institutions are,
however, being broadened by leg¬
islative action in New York, Mas¬
by
Savings Banks
The
war's
national
increased
cost
debt
from
$43
the
sachusetts and elsewhere;
$279
to
^
<
Housing Projects
in the
billions.
Treasury bond holdings 1 A new and
promising outlet in
by mutual savings banks rose
New York for savings bank funds
from 34% to 69% of their de¬
is the authorized joint investment
posit liability and now represent
by three or more "institutions-up
63% of their assets.
They also
to a limited amount of their assets
represent a responsible involve¬
and
under other sound restric¬
ment
by these institutions in the
right administration of the na¬
tional debt and the adoption of
sound fiscal
policies with respect
tQ its fuure management.
:When savings banks
established
them
America
in
some
required
were
first
were
by
of
their
charters to invest their funds
ex¬
clusively in State, municipal and
XL
S.
Then,
securities.
Government
deposits grew, the banks
the
development of
their communities through mak¬
as
shared
In many
virtually negligi¬
:
municipal issues are
State and
longer attractive investments
to savings banks because of the
owes
will
be
investment
eral tax-free status.
There
is
shrinkable
going
in
steady
estate mort¬
a
on
real
in savings bank portfolios
the debts
gages
due to the repayment of
by amortizing, or otherwise, and
to the absence of any substantial
amount of hew construction and
because of refinancing.
.Therefore the prospect is for an
Increase in the percentage of sav¬
ings bank funds invested in U. S.
Government bonds and certainly
for the retention of those invest¬
ments at about the present level.
J'
-
While it is true that we look to
bonds
Government
as
our
excellent
institut
banks
investment
are
extension,
ing
to
out
thinks
homes
for
income
who
groups
tenants.
as
of
the
have been
studying
decade
life
available
Suggestions
are
of
this
character
the type of problems on which
have
problems
tee
such
policy? f: Would
study be appropriate 1
discharge of our re¬
sponsibilities and ooportunities as $
custodians of $15 billions ot, en¬
trusted
hope
funds?
that
banks,
-
of
oui
specialized financial experts, but.
preoccupa¬
opinion, it is not wise to
neglect the wisdom of practical
men of affairs in arriving at con¬
my
clusions
on
Government
fiscal
policy.
seeking
mortgage investments in the New
York areas, would be not only
economically sound but expedi¬
ent.
In New York City, for ex¬
ample, savings institutions benefit
by the business done by' employ¬
part, I i
savings £
my
mutual
one
prise America has devised-—well
tested in more than 100 years of
service—will eauip themselves to
help maintain in America a wise
handling
ity-
of
responsible4
private
-'!J"
y;,■
By enlarging its staff, the asso- k
ciation has made an intelligent v
beginning in this direction.
Our
respective committees, as they ad¬
dress themselves to the questions
assigned to them, will add to our
cern
understanding
that
mature
we
of
the
immediately " con¬
the business
our
we
conduct. As
opinions and
•Time
Bound
to
Fiscal
in the great swelling
economy of America in the Nine¬
was,
teenth
and early Twentieth Cen¬
turies, that those who invested
other people's money needed only
prudence and safety and a rea¬
sonable return.
Now they need
worked
together on the
campaign, can we not
economic
namic
in
systems
think
the
world. This system was conceived
as
enterprise system
free
a
and
control
not
needed
are
in the historic progress of
ed
while
such
serving
the highest
In
La Salle Street. Mr.
Chronicle)
problem
the
on
debt?.
beginning. of such
A
This announcement appears as a matter
effort
an
has been made under the leader¬
:
:
of record only and is under no circumstances to be construed as
offer to
offering of these securities for sale, or as an offer to buy, or as a solicitation of an
buy, any of such securities. The offering is made only by the Prospectus.
the
Government
sales.
•
-
6n
war
UAiglon Apparel, Inc.
Common Stock
Copies of the Prospectus may be obtained from the
undersigned
n
OTIS
•
,
$1.00 Per Share
bond
.
.During the war the sale of war
bonds gradually assumed the chief
position in
our
promotion of.
thrift. Virtually all our advertis¬
ing was directed to the end of
selling war bonds to" the "public
.
130,000 Skates
Par Va'ue
&
CO.
-
(Incorporated)
*.r
'
*
*
»
'
-
.
,
■
May 21,1946
.♦»
)
■
,
;
'
•
,i.nrii
rp-
,
- ill
11.1
»
if.n
South
City of Chicago for the past
ten years.
how to ad¬
national
E.
of
Doty has been
tive intelligence to America's No.
1 financial
may
member of the Board of Trade
of the
business,
American
progressive
a
other
with
common
we
go.
Thomson & McKinnon, 231
social
ends, to which our people rightly
aspire.
freely choose to
CHICAGO, < ILL.-— George
Doty has joined the. staff
enterprise
free
may
feel
thinking for
where
(Special, to The Financial
as producers and consum¬
er's of wealth wish to preserve the
of
us
Geo. E. Doty Now With
Thomson & McKinnon
the
nation
vitality
ourselves,
and to lead
us
who have participat¬
us
for
called upon to do our
yields reluctantly to government¬
al
restraint and control.
Some
but all of
Banks
Fortunes of Federal Government
work together now in seeking to
make a contribution of construc¬
minister
ar¬
respected
own
our
restraint and
'
f
Savings
prin¬ ship of Mr. Randolph Burgess, in
of too heavy
funds
For
the
of the best expres¬
sions of beneficent private enter¬
as
medium,
because
affecting ..our
Uncle rive at sound conclusions let us
Sam.
We
see
that
gentleman speak out—helping the nation, in
launched on many new financial turn, to arrive at sound conclu¬
based on seasoned experience in
undertakings and increasingly at¬ sions. In this way we shall escape
the actual management of affairs;
tempting to guide, control, disci* thralldom to an • over-elaborate
I respect and value the judgment
pline and, we hope, encourage one governmental organization which,
of economists and certain types of
of the most complicated and dy¬ in time, if we fail to lead and
seen,
;
a
a
savings bankers need to have in¬
formed
and
practical
opinions
.
economic
seeking
concentration
purpose.of
to the fullest
partner the greatest
the
world
has
ever
financier
on
not
our
as
directly
stepped out of common
big way and' problems
in
localities
our
the
work, through a vigorous commit¬
of
We
them.
for
new
horizons. and
social
and
economic
current
in the
now
wondering, to associate
ourselves
U. S. Government
agencies and the States and cities
it assists are likely to be the out¬
standing leaders in all types oi
home building., The FHA and the
are
,
ing, and, to a reasonable extent, "
action. Would it be helpful I;
us,
forefront
we
think¬
our own
our
occupy
In
To * that end
need to coordinate
who
will
We exist.
efit
and
individuals
1
But we Cannot escape responsi¬
bility for aiding the development
of better ways' of serving
the,.
needs and interests Of the; Ameri- f
can, savings public for whose ben- ;
interested in Gov¬
we
are
Veterans' Bureau
ons
j
Economic Policy
ernment policy relating to build¬
taken
the launching of a scientific study
some
of the debt question with funds
to increase
supplied by the Falk Foundation.
their investments in mortgages on
In this study two of our able col¬
homes and other improved real
leagues, Mr; Levi Smith, tTesi-:
estate. Customarily savings banks
dent of the Burbngton
^v^w
have not sought mortgage invest¬
Bank, and Mr. Earl S. Schwulst,
ments in locations remote from
Executive Vice-President of the
3ur home main streets.
In im¬
Bowery Savings Bank, -are par¬
portant savings bank States our
.Meanwhile,
sugges¬
oanks are limited by law to cer¬ ticipating.
tions from other sources are being
tain areas where they may make
made on points of crucial interest
mortgage investments, and-some
to us.
The first of thesa is that
States severely restrict or pre¬
the savings
banks should lend
clude mortgage investments, by
their assistance in pror-^tW the
aanks of other States.
Thanks to
sale of savings bonds to the public.
the nrogressive attitude of New
A national organization has been
York bahkihg authorities and the
set up and the Treasury and the
Legislature ' of that State, there
American
Bankers
Associat!c-n
las been 'a recent limited broad¬
have appointed liaison and lead¬
ening of the field for investment
representatives. It
may
n FHA
mortgages to States ad¬ ership
cheer you to learn that the Treas¬
joining New York by New York
savings banks. We would like a ury has asked us to continue the
same organization and personnel
further extension of the author¬
to help in the promotion- of sav¬
ized, States in which such loans
nay be made.
We believe such ings bond sales that worked with
cipal
adjunct
providing thrift
security, and we are glad tc
for long-term investment.
As we effectively
assisted in
absorbing and distributing the na¬
tional debt in the period of war
emergency, should we not intel¬
ligently and resolutely assist in
developing a policy and program
for the proper administering oJ
that debt throughout the long pe¬
riod of its liquidation?
helpful
Mortgage Investments
an
savings and
Administration
we
Treasury savings bonds
insurance
Savings Banks and National Debt
loan
Government
Savings Banks Concerned "With
lets regarding its debt, but espe¬
cially
!
]
the American people.
agencies that will
control the supply of home mort¬
pub¬
gages.
We are eager to work
lic finance, we are concerned If
with them to help house our war
See a check placed on the moneservicemen and women adequate¬
fization of our national debt. The
thoughtful and able Superintend¬ ly, and to lay the foundation for
a
sound and happy life for the
ent of Banks of the State of New
young
people of our nation to
York lately addressed himself tc
whom we are so deeply indebted
this question.
He advocated the
for their recent patriotic services.
use
of excess Treasury balance:
As savings banks seeking to do
in commercial banks to retire a
a
good job, we are no longer
substantial amount of bank-held
debt.
He also renewed the inter¬ snugly tucked away in our respec¬
tive
communities
enjoying
the
esting proposal that a long term
land be issued by the Treasury, blessings of an advancing econ¬
designed to attract to the Treas¬ omy yielding us abundant funds
to invest and means for investing
ury the funds of
in
As
the savings accoun
suitable amount of life in¬
With others who held a respon¬
sible relation to problems of
tion.
war
Federal
ahead
a
f
no
price inflation due to their Fed¬
inherent
not
government, not even
in the government of a free peo¬
ple.
That wisdom must be en¬
gendered by intelligent and cogent
public opinion informed by con¬
tinuous sound thinking based on
Study of pertinent facts,
i Not only are we of the savings
banks concerned with the way the
them
and
chief reliance for income and our
principal
shall
we
have them available.
in the form
us
bonds
Now
is
there
-
sayings banks
in
will buy them and for the lower
are
have retarded build¬
Treasury
period.,
other facilities for
ing of all kinds, of course, require
postponement of actual construc¬
tion of these undertakings.
of
war
surance.
al housing- developments.
Such
developments
must
be
wholly
owned by the savings banks.
Al¬
ready plans have been- approved
for construction providing homes
for 4,568 family units and about
15.600 individuals, but the Circum¬
Government
in
aid
But
ner.
wisdom
and
There may soon be an exception
permitted if 12 subscribing savings
ing mortgage loans on improved banks
proceed with present ten¬
real estate.
Later on they were
tative plans to construct a hous¬
permitted
to
invest in
certain
ing
development for
the
em¬
large scale business enterprises to
ployees of United Nations Organ¬
the extent of buying, under statu¬
ization
in
flourishing
Queens
tory limitations, the underlying
County, New York, providing 830
debt securities of railways and
family units for 2.600 persons. public utility companies.
Now,
These new outlets for funds
because of the unsatisfactory ex¬
authorized
and
hoped for, are
perience with railway bonds in
welcome and promise well for the
the depression and the radical
long future.
But "for now," at
lowering of yields on high grade
they say on the radio, and the im¬
utility bonds, these latter types of
mediate future, what the U. S.
investment are a minor Dart of
banks they are
ble.
<
an
Federal
the
Surely there is no
financially dependable part¬
plementing
in
savings bank holdings.
sales
poor
the
Urge their purchase as a part of a
balanced program of saving, sup¬
tions, in the equities of new rent¬
stances that
such
man's great¬
est economic enemy, namely, the
progressive
inflation
of
living
CoScS through competitive spend¬
ing;. We shall, I hope, give a good
account"'of ourselves in
selling
Treasury savings bonds, even l
We do not give such sales the pre¬
ferred poition war bond sales held
mortgages in several Mid-Western
and all the Pacific Coast States,
i
in
controlling the
powers
'Government
saw
ended, but have
doing so because
with
i.' jv.
.'V/
V''
i
,
are intent on
maintaining a widely competitive
system of private enterprlsets.We
bcneve >tha t sucn a system is~essential
to national progress and
to the individual happiness of ail
Government.
more
institutions.
Our
■(
make
who
workers
we
fortunes ' of
fiscal
the
prudent too.
have cast the
institutions
our
"
they have
and
-v
•
-
•
THE COMMERCIAL &
2800
;
ri:•.
CHRONICLE
u?i
.
Thursday, May 23, 1946
\
After
Securities Salesman's Corner
m
(Continued from first page)
of
It is not always possible to portray the experiences of others in
a manner that can be
correctly related to certain individual situations
planned
who
*
a
believe
only
be
progress
can
achieved through the
freedom of the individual and of
that you may experience.
Yet it is true, that nearly everyone in the
economic activity. The advocates
selling end of the securities business, runs up against the same
of a planned economy want more
problems sooner or later. If. we are intelligent we learn from others.
power
in
the President, more
That is why round table discussions are helpful to every man in a
power in Washington, more regu¬
sales organization.
That is why it is a good idea to have a "get
lation of industry, agriculture and
together" from time to time, and swap cases and experiences.
commerce—foreign and domestic.
The writer can think back on his early days in the securities
At least they want to retain all
business and he can remember the helpful advice and assistance that
the extraordinary powers granted
was cheerfully given to him by some of the old timers who were in
during the war. The opponents of
that first sales organization.
But this assistance was picked up with¬
this policy want to get rid of the
out direction or planning.
How much better it would have been if
war
powers as soon as possible
he could have had the opportunity of sitting in on a discussion by
and rely on the incentive provid¬
some of the leaders in that sales force, regarding their sales made,
ed by our system to get more pro¬
and THOSE THAT WERE LOST.
What if he could have learned by
duction, more employment, and a
hearing case histories of what was done right, and what was done
higher standard of living.
We
wrong? Valuable time would have been gained. Here would have must
recognize that war controls
been an opportunity for clinical enlightenment that could not have
cannot be wholly abolished, but
been obtained in any other way, except through personal experience.
that no peacetime emergency can
And personal experience is a costly, time wasting, method of learning
justify the extraordinary powers
anything.
made necessary by war.
Securities must be sold.
Time and again we have stressed this
obvious fact in this column.
That is why security salesmanship is Planned Economy Dominates Our
Foreign Relations
an
economicallyjustifiable means of earning a livelihood.
But
In the field of foreign relations,
selling securities is not enough—helping people to invest intelligently
is the other half of the job., It is a problem of educating the masses, the advocates of a planned econo¬
as well as selling them.
We are going to keep our capitalistic system my have been almost universally
if people find out that it provides a better standard of living than successful.
A great accomplish¬
that produced by other nations who are practicing state socialism. ment of the year was the forma¬
And selling securities to the masses means that we have to LEAD tion of the United Nations
Organ¬
THEM TO
WATER
AND
SEE
TO
IT
THAT
THE
WATER
THEY
ization
and
DRINK WON'T GIVE THEM A BELLY ACHE.
Limited
If we are going to educate a crop of new men who are needed
today in the retail securities business, let's do it right. In fact, there
is not a single one of us who have been in this business, and like to
call ourselves experienced, who also can't learn a better way of
doing certain things. Forums are one way to handle this problem.
Call them gab sessions, or what have you, there isn't a salesman who
hasn't had some experience this past week that wouldn't be helpful
to another salesman, if he could tell about it.
How about the time
you talked out of turn, or too much, or didn't turn the conversation
from a sour note to a brighter one, and these little things killed a
sale?
How about a customer who insisted upon buying the wrong
stock and you let him do it, and he eventually got hurt and you lost
his business?
Or the time you did the right thing at the right time
and everybody was happy?
How about the homely phrases that tell
a big story in a few words and make a point sink home; wouldn't you
like to know a few more yourself, and in return pass on some of
some
your own?
to learn is to find out the best way to do something
else who is doing it day by day.
Most of the people
who write books (afid even columns like this) are theorists.
There
is something cold about the written word.
But there is a tangible
•
S The
from
way
someone
adherence
our
to
it.
its powers are, it gives
direction over the political
as
relations
of
enabling
the
world.
legislation
further in
But
went
the
much
transferring from Con¬
gress to the President almost un¬
restrained
to
power
deal
with
those
political relations, even to
the extent of making war with¬
out consulting Congress. This law
together with the Bretton Woods
Agreement, the Reciprocal Trade
Act, the money granted the Ex¬
port Import Bank, and the pros¬
pective British loan has practi¬
cally transferred from Congress
to the President every power nec¬
essary to deal with
tions.
The growing
cover1
economic
foreign rela¬
tendency to
contracts
with
foreign nations by agreement in¬
stead of treaty gives the Presi¬
dent additional power, even in
financial
matters.
Opinions of
our progress in the field of for¬
eign relations may greatly vary,
impression that is created when someone you know stands up and
tells you a story in plain words about what happened when he tried
to do something a certain way.
You can analyze human nature
until you are blue in the face, but if you want to find out how it
works, talk to the fellow who is meeting the public day after day. but no one can doubt that the re¬
There is no such thing as a natural born salesman.
If you have sponsibility for our foreign policy
is almbst* entirely on the Presi¬
common sense and the will to work (expose yourself to people who
can buy your product), and you will try to learn from your own
dent.
Undoubtedly, he has been
experiences as well as others who have been successful, you'll do seriously hampered by the obliga¬
business.
*
tions which
—
Sales meetings that swap experiences among the men are literally
worth their weight in gold.
They should be planned and organized
and
ran
we
undertook at Teh¬
Yalta, and by the atti¬
tude of the Russian Government.
haphazard manner. Sales that were But it can hardly be said that up
made can be analyzed—also those that have been lost.
Time saving to now we have achieved or are
ideas can be exchanged, and selling tips that will
produce^eaL^fii-* likE^3b-achleWSni^Erth-e:ideals
missions can be circulated among the men so that;€he .whole organ¬ for which we have fought two
and should not be conducted in
a
ization gets the benefit therefrom.
This is the job
bf^a'salesmanager.
world
wars.
Our Foreign Policy
It
is
difficult
exactly what
Mary Lee Candies, Inc.
is
It
seems
pediency
theories
on
foreign policy
our
to be dominated more
by considerations of force and ex¬
Common Stock
Prospectus
understand
what the President thinks it
or
is.
Is Obscure
to
Even
request
have
in
a
by any
freedom or
than
of
those
fields
free hand
as
abstract
justice.
where
apparently dominated by
principle of the
Morgenthau plan, although every
we
are
the
Herrick,Waddell
55 LIBERTY
&
Co., Inc.
STREET, NEW YORK 5, N. Y.
Over-the-Counter Quotation Services
For 33 Years
Established 1913
.
Chicago
official disowns it.
moted war trials
on
We have pro¬
a
principle of
to
found
have
we
through
gone
eralized
increased.
or
The Mini¬
Wage bill is still pending.
Employment 'offices are being re¬
mum
activity,
an era
of
turned to the states.
The medical
planned economy. The war pow¬
ers in general have continued ow¬
ing to the fact that no general
bill is not likely to pass, nor com¬
declaration of the end of hostili¬
necessity of the facts. Only in the
housing
field
have
additional
ties has yet been made.
edly,
we
what
towards
Undoubt¬
have progressed
a
retaining controls they have
measurably successful, be¬
cause obviously we have a residue
cannot
be
immediately disposed of. But, in
general Congress has resisted the
retention
of
these
controls
and
has been successful in preventing
their extension.
The situation in Congress is ex¬
traordinary. The Democratic Par¬
ty has a good working majority
in
both
Senate
Houses—56
and
House.
236
to
to
conditions,
in
40
under
the
such
Presi¬
Democratic
a
the
in
192
Ordinarily,
Street, New York 4, N. Y.
San Francisco
the
tension
been
which
Draft
to
limited
be
powers
In
war
will
been granted, and the ex¬
of price control will be
granted only with definite condi¬
some¬
controls and add further controls
in nearly every possible field.
the
training.
military
extension
economy,
peace
but whether we are any better
by reason of Government controls
is at least open to question. The
program of the Administration has
roughly been to retain all the war
from
pulsory
tions.
Whenever
Congress fails to go
measure pressed on
President Truman by the leftwing group, there is an outburst
of criticism against Congress. The
along with
press
a
seems
to overlook the fact
that
Congressmen vote the way
they do, either because they be¬
lieve strongly in a principle, or
because
they feel they are repre¬
senting the views of their constit¬
uents, or both. The truth is that
an
overwhelming percentage of
the American people today are
opposed to planned economy, op¬
posed to more Federal power, op¬
posed to Government regulation
of
everything
and
everybody.
Congress
believes in individual
a free economy be¬
cause the people believe in indi¬
freedom and
dent would have
vidual freedom and
issue
for no other reason.
They are opposed to the continu¬
al grant of more power to Wash¬
ington. They are opposed to Fed¬
no difficulty in
securing the legislation which he
desires, but on the basic domestic
of
economy
a
government-managed
the Democratic Party is
divided almost in the middle.
eral bureaucrats
The most aggressive
a
free
econ¬
and
omy,
going into every
home and every
every action of
branch of
Party is repre¬
sented by the CIO Political Ac¬
tion Committee, supported by all
the left-wing groups and, up to
now on all specific measures by
store, dictating
everyday life.
It is quite true that the present
situation
in
Congress tends to
block
legislation.
But perhaps
the President.
most of the
the
Democratic
economy
The
Southern
the
cause
of
a
free
is embraced by most of
others
Democrats
to
and
greater
by the Republicans.
Democratic Party discipline still
has some strength, but it is weak¬
many
extent
ened
an
even
than
on
all vital domestic
meas¬
particularly in the House of
Representatives.
farm and
every
legislation ought to be
vast powers which
remain in the President permit
him to take every step which is
blocked.
The
essential
hard to
for
see
reconversion.
how
It
is
have suffered
we
in the least from the acts and fail¬
to act of
ures
Congress up to this
Even in the labor field the
ures,
time.
Since V-J Day, we have had
proposed a measure guaranteeing
employment to every workers to
be maintained by unlimited Fed¬
eral
spending*
if'
necessary;
Smith-Connally
Act
gives
the
President full power to seize the
mines, and then makes criminal
any action on the part of Union
leaders in encouraging or promot¬
ing the continued interruption of
measures
increase
to
all
salaries
and wages in
work.
No
the Federal govern¬
ment, the minimum wage rate,
the unemployment compensation
rate, and the general scale of
wages; measures to establish uni¬
versal compulsory military train¬
ing for every American boy and
extend wartime conscription for
two years after V-E Day; a bill to
nationalize the medical profession
gress
and have all medical service pro¬
without
vided by a Federal Bureau; a de¬
mand for unlimited power to reg¬
ulate prices and
to regulate, not
only the price, but
every
detail of
the construction of houses; meas¬
to federalize unemployment
ures
compensation
Employ¬
Offices, so that the Federal
ment
Government
direction
The
ures
the
and
can
maintain
a
close
all employment.
over
who press these meas¬
have obtained the en¬
men
and
dorsement of the President for all
of
them
tailed
and
of
de¬
life
favor
could
one
enact
expect Con¬
extreme
more
a
The failure of the President
to act under it is dictated
by pol¬
icy and not by lack of power.
1
How far then have
we come
in
domestic reconversion during the
12
months
since
V-E
Day?
Through
the
Stabilization
Price
Control
Act,
and
War
Act
Powers
further
the
Act,
Second
President
action
by Con¬
power to fix
prices, wages, and allot materials.
The fixing oi] wages has practi¬
cally been abandoned. The power
to fix prices has been used with
gress
has had full
the idea that it
economic
United
States.
not
been
ments
determine the
can
whole
future
The
of
results
the
have
persuasive argu¬
planned economy.
very
for
a
The government
estimated
completely over¬
probable
unemploy¬
ment. They under-estimated the
effect on prices of increases in
wages.
by Washington bu¬
articles
They think they can direct
creased
business
reaus.
the
a
American
obviously
control
law.
to
They have
that
so priced many
production has de¬
instead
of
increased.
of the country to Wherever their prices have been
produce and maintain prosperity, unrealistic, black markets have
better than the ordinary laws of a
sprung up over night.
which the founders of our Consti¬
free enterprise system. It is rather
tution believed.
We have sacri¬
Obsession of OPA Officials
significant that, except for tax
ficed liberty and justice to the
laws initiated by Secretary Vin¬
Those who have operated the
slogan of (peace, and there are very
son, there has been no concern OPA have beep obsessed by the
few who believe that we have
retroactive punishment which vio¬
lates every principle of justice in
economy
whatever about business or about belief that the Government
by
far on the road to the
farmer, the two groups who, decree can regulate more than
My own belief is that peace
under a free system, provide the half a billion transactions a day
can only be achieved through the
energy to make the machinery by writing regulations in the Fed¬
establishment of justice ; and a
work.
eral Register. They have felt that
willingness to submit disputed is¬
regulating prices, they can
In this whole field, however, by
sues to impartial tribunals.
Our
the
pro- give certain groups a bigger per¬
failure to pursue this course has, Congress has blocked
The Full centage of the national income
to a large degree, destroyed the posed increased power.
amended and other groups a less percent¬
respect from the rest of the Employment Bill was
If
world which we have command¬ until it provides only a Planning age of the national income.
ed for many years past, and sub¬ Commission without any guaran¬ they considered, the profits of an
stituted a respect only for our tees of a right to work or reliance industry or a company too high,
or the cost of distribution as too
military might. With the atomic on Federal deficits. Unemploy¬
great, they regarded it as their
bomb in the background, this is a ment compensation was^
gone
very
peace.
NATIONAL QUOTATION BUREAU, Inc.
46 Front
vengeance
which
on
In the field of domestic
we
in Germany,
reed
permanent peace.
those
economy and
that
VE-Day-And Where Are We?
weak
the battle between the advocates
By JOHN DtJTTON
t
"FINANCIAL
,
-nn-lTrrriiWfuiratfiinr rnimMiiMKiMniiiunriMiiinTiwiiriimMiinnimi
mum
k.Jif
....
JTHE COMMERCIAL & FINANCIAL CHRONICLE
duty to reduce those profits or
prices
equal to
the
increased,
change the. whole structure of dis-~ costs. 'Whether'the OPA will fol¬
tribution. ; They
entirely ignored low the law is at least doubtful.
the
provisions of the Price Con¬
trol
Act and proceeded on new
theories invented by themselves.
They ignored black markets as
being of no importance, because
they did not appear on the cost of
•
The Problem of Price Decontrol
The
of
problem
difficult.
of
ber
is
decontrol
I don't think any mem¬
the
committee
Mr.
trusts
Mr. Porter to put de¬
control into effect. In the case of
Bowles
or
living index of the Bureau of La¬
bor Statistics.
Finally, they pro- oil, we have a clear case where
duced the^
extraordinary theory supply equals demand, and yet we
that
increases
wage
could
be
get
promise to decontrol.
price of
oil
produced will undoubtedly
any
increased rise. The normal law of supply
prices granted to
manufacturers. and demand will cause a higher
By listening to the advice of
Henry price than Mr. Porter's artificially
Wallace and OPA
economists, the low price. But the OPA wants a
President
encouraged
and
economy and
ap¬ government-fixed
proved a general increase of ISV2 not a free
economy. Mr. Porter
granted
without price increases
that distributors could
be
forced to absorb
can
no
I believe it is because the
and
cents per hour which will
have the
most general
application that any
wage increase has ever had.
He
lias
thus
forced
increase
an
prices and started
creasing wages and prices which
will be difficult to
stop. The theory
that wages could be increased in
this
amount
without
increasing
prices has already been proved
fallacious by the action of OPA
itself.
1943 the OPA abandoned the
.
•
theory of flexible price fixing
contained in
the Price Control
Act and adopted in
theory a rigid
freeze of wages and
prices. Since
then it has apparently regarded as
immoral
prices,
change
any
but
not
Bowles testified
wage rate of
increased
again
Of
that
62%
the
since
living. From 1943 to
were
years,
wages
.result
the
creased
as
1945 while
held
rigid for
increased 9%.
that
was
of
end
1941
increase in the cost
prices
..
in
Mr.
hourly
wages.
factory workers had
34%
a
upward
in
two
The
before
even
the
were
in¬
there
war
costs not reflected in
in¬
creased
prices. With the heavy in¬
during the winter
of ,1946, some increase in
prices
in wages
crease
bad
to
be granted,
held it below
•
but the
OPA
the further in-
even
crease in costs.
The result is that today we have
price level proportionately be¬
low the wage level.
a
Many indus¬
tries
are
doing business at
Many products
a
loss.
priced that
5 they can only be made at a loss,
land, of course, they are not made.
are
so
Shortages in butter, housing ma¬
terials, shirts, evaporated milk,
and
other
many
traced
products
are
this too rigid
directly to
pricing
program.
will
purchase
the
'
goods,
in
the former, no one will make the
goods.
It has
always been clear
to me that it was impossible to
maintain a price freeze, because
certain costs necessarily increase.
The shortage of manpower in war
; compels
an
increase
in
some
wages, as in lumbering, if any
labor
is
to
be
obtained
at
all.
At
time when
.
•
we
are
if forced to do business at
>The
;was
a
lpss.
original Price Control Act
based on the theory that in¬
creased
costs
would
be
reflected
in prices. I believe we must de¬
fine the terms of that act to make
it clear that OPA is still subjeot
5
to its
provisions.
a
difficult
pare still
position.
so
relaxation
produce
Some goods
short that
of
price
wholly
inflationary price.
a
a complete
controls
will
artificial and
I don't think
this is of much importance if con¬
one or two commodities,
fined to
based
the
on
reaching
production
percentage over 1941. We have
considered a specific decontrol of
oil products, and also of meat,
dairy products, and chickens on
a
the
ground, that nothing could be
than
worse
control
tions.
the
If
present
black
and
had
we
lack
market
Adminis¬
trator, decontrol should be left to
him
under
a
of
circumstances
the
each individual
But there is
case.
strong belief that he will never
decontrol
important product
if any price rise is involved.
The
fetish
of
maintaining a
an
fixed cost of
of
living index, in spite
increases and excessive
wage
purchasing
subsidy
in the
which
power, appears
ridiculous
policy
Mr. Bowles seeks to
other
the
12
dollars
ing
a year.
subsidy
a
It
months.
taxpayer
for
renew
would
about
an¬
cost
billion
two
Today we are pay¬
bread to the ex¬
on
tent of 260 million dollars a year.
the
At
eat
same
is
ment
the
time
much bread
so
govern¬
urging the people not to
in
that
order
there may be more flour for other
nations.
Isn't this an ideal time
it
Now
that
the
a,
we
in¬
large
increase has
do not propose that the terms
if the
of
encourages
in wages.v -
crease
collective-bargaining
scale
ments be
oc¬
agree¬
Army will undertake a full
effort to secure volunteers
There
will
difficulties in ad¬
be
justing the
wages
thousands
of
other
in
collar
state
the
and
govern¬
a
income
in
medical
We
are
Congress is more skeptical
generals have always fa¬
the
draft
from George
care.
We have
Washington until today.
give Federal aid
I do not believe there is any
search.
financial
and
local
the
states
local
job
and
be
bility
of
providing
housing,
and
medical
high that we will have great
difficulty in selling goods abroad.
However, as long as we lend
money to pay for our goods, I
suppose they can be sold at any
price. Perhaps by the time our
huge loans are exhausted, world
prices may be in adjustment with
our own. The
danger is that we
may not be able to prevent an up¬
ward spiral of further wage ad¬
justment.
those
omy.
series
for
of
labor
statutes
legislation.
and
fortunate.
verse
some
some
interfering
I
do
way
the
believe
not
that
ual
freedom
from
their
than
take
to
boys
their educa¬
tion and occupations and subject
them to the orders of superior of¬
homes,
It is
ficers for 18 months.
never
a neces¬
time of peace.
justice and a fair
But I believe
Congress is opposed to extreme
legislation prohibiting strikes or
imposihg compulsory arbitration.
If strikes are prohibited, then in
the last analysis the Government
must fix wages.
If the Govern¬
ment
fixes wages,
it must fix
prices and we have no freedom
liable
prohibit
their
contracts
relied
nor
for
lion
We
in
Surely with 50 mil¬
war.
workers
million and
a
in
this
country,
a
half could be per¬
suaded to enter the armed forces
to
if the life
were
but
and
secondary boycotts,
conscription
on
until it is useful neither for peace
to provide adequate me¬
on
act in time of war. We have
I believe the War
Department should have begun at
V-J Day to build up a peacetime
army on a volunteer basis.
In¬
stead of that they have permitted
the wartime army to disintegrate
diation machinery to make unions
increasing the consumption in
believe
freedom
possible
the
as
must be consistent. |
in the greatest
we
must
to the
key
in every field
success of our
We must have
riculture,
balance of power.
get rid of the subsidy instead
Surely
viewpoint. There can be 110
greater interference with individ¬
years to restore
to
of strikes.
American system.
sary
propose
terprise
are
indignant against
Congress because it opposes con¬
scription of men and prohibition
We
same
re¬
industrialist.
they demand action by Congress
and regulation
by the Govern¬
ment. Labor leaders are violently
revolt against the
conscription law arises from the
of the decisions made
or
anything goes wrong
mind. But if
the
present
by the Supreme Court in recent
for workmen
Totalitarianism has infected every
opposed to the regulations of Un¬
ions, but they are all in favor of
price control for business and the
and farmer. The very
businessmen
less who declaim in favor of free en¬
with
The Dangers of Conscription
The
A
decisions
of the laws and
to
care
unable to pay for
ington bureaus.
given the labor
leaders a position
of arbitrary
power which has certainly been
abused by some. We hope we may
amend
of
ous
administrative activities of Wash¬
and
power
responsi¬
education,
Congress views with approval the
compulsory health insurance plans
or
any plans which enlarge the
have reversed the former balance
of
are
the
ple who earn their own
help pay the taxes for
fields, Congress has the
objection to a planned econ¬
Today there is a tremendous
demand
group
freedom of about 80% of the peo¬
In other
same
who
without
it,
that
governments
have
the
and
governments
and
One result is that
so
vored
of men as sincerely desir¬
maintaining
American
freedom as the Congress of the
insist that only Federal
United States.
Most men claim
aid be given to the states
that they are in favor of freedom.
maintain
agricultural priced
our prices will
say so.
because
But those who believe in
freedom
ger^al re¬
of hospitals.
medical .re¬
extending
duction in wages and other costs.
We
shall
have
to
artificially
some
assisting
groups
passed a bill to
for the construction
ments, in adjusting rents and in¬
terest rates, but on
the whole
these adjustments are probably
easier to make than
for.
the
to more
equality in education, in housing,
lower
and
adjusting
and
proposed
ures
and salaries of
white
groups,
in local
taxes
of
attractive.
But
made sufficiently
Congress
doubts
free labor, free ag¬
freedom of local selfgovernment, freedom of the, boy
to
choose
the
education best
free business,
the occupa¬
Those who desire
must have
the
burden
of showing that a
real necessity exists. Congress is
suited
him
to
and
tion he desires.
limit this freedom
to
only to be commended for de¬
manding in every field that abso¬
lute necessity be
shown before
any freedom is further limited.
We have made progress in the
last year, because we
rid
are
limitations
of
We
are
on
laying the groundwork for
of progress in social
welfare, in labor relations and in
full employment through private
enterprise. These goals can ,be
obtained consistently with liber¬
ty. Congress and the people are
program
a
determined
on
that
course.
uct?
It is costing us 750
a
million dol¬
to subsidize meat, and
year
This advertisement
is
neither
a
pound increase in the price of
lars
Five-hundred
penditure
of
ojjer to sell nor a solicitation oj offers to buy
offering is made only by the Prospectus.
any
of these securities.
New Issue
million dol¬
dairy farmers,
who are shouting to high heayen
that they want the subsidy abol¬
ished.
What possible excuse can
there be, when all records of buy¬
ing power are being broken daily,
to pay the consumer a subsidy out
of the Treasury?
Surely, the ex¬
to
goes
an
The
this could be saved by a five-cent
the
two
billion
by the Government is
125,000 Shares
Hytron Radio & Electronics
Common Stock
dollars
even
Par Value $1.00 per
more
Share
inflationary than a corresponding
increase in price. Congress is cer¬
tainly inclined to force a rapid re¬
duction
elimination
and
of
these
Price $9 per
subsidies.
one
Share
could listen to the testi-
before
the
Committee^
being convinced that the
unjust, unrealistic, and
ruled by every consideration ex¬
cept reason and logic.
Day after
day specific cases are given of in¬
money
without
OPA
is
dustries forced to do business at
Copies of the Prospectus may be obtained within any State
from the undersigned only by persons to whom the under¬
signed may regularly distribute the Prospectus in such State.
a
loss, of black markets, of a falling
off in production. The net result
of this program of planned econ¬
omy must be the very inflation
which OPA
ing.
tremendous
the
result
increase
or
later
in
the
increase
in
R. H. Johnson & Co.
Brush, Slocumb & Co.
Amott, Baker & Co.
Incorporated
Maxwell, Marshall & Co.
Sutro & Co.
Friedman & Company
Reinholdt & Gardner
perma¬
nently higher prices.
The per¬
centage of increase over prev/ar
will probably be at least 50%.
While
Mann & Gould
in
encouraged and sanctioned
Government.
This must
sooner
Herrick, Waddell & Co., Inc.
it is prevent¬
We cannot escape it because
the
wages,
by
swears
the
Stirling, Morris & Bousman
J. H. Goddard & Co.
.
First
but ifit affects a substantial part
World. War was greater for a time,
the ultimate ihcreaise ~ in; whole¬
of the economy, it would ^produce
only :40%. All of the;good work; of
Link, Gorman & Co.
Clayton Securities Corp.
Hall, Tattersall & Co.
Incorporated
sale prices from 1914 to 1922 was
dislocations
The State Investment Co.
bring
.that
.might,, easily
another depression. Con¬
cannot
administer
price
on
gress
control
itself.
It
only write
justice
; to" :prbducers and an increase of
a
can
law which will prescribe
the
Price
Administration
in
the ideological theory that Gov¬
can
hold
prices'" steady
& Hano
H^G.Bruns&Co.
its
early days has been destroyed by
ernment
ik Newburger
May 21, 1946.
Dempsey-Tegeier & Co.
?
getting
freedom.
this country by holding the price
below the true cost of the prod¬
lars
'
imposed by the Govern¬
as long as Congress is willing to
r"' • • 1
curred, we probably had better ment. -''•■■y'V~'
Continue the draft. The editors of
adjust everything else to it and
So, also, in the social welfare the country seem to assume that
try to hold our economy steady at field I believe a great majority of the draft of 18-year-old boys is
something like 50% over prewar. Congress is in favor of the meas¬
necessary
because the generals
of
condi¬
confidence
any
in the good faith of the
of
I'-fj Congress today, however, is in
of
volume
No
chiefly
concerned in securing production,
it is peculiarly stupid to insist
upon this principle, and grossly
unjust
to
businessmen
whose
property can easily be destroyed
a
formulas
control
^Prices must be adjusted.
,p
sup¬
We have considered various de¬
meat.
It is just as bad to have the
price level below a proper rela¬
tion with wages as it is to have it
'•too high.
In the latter case, no
one
of defeating the law of
ply and demand.
in
spiral of in¬
a
testified that he was in the busi¬
ness
while
A. M. Kidder & Co.
McDonald & Co.
Wv H^Bell&Co., Inc.
WhlteSt Company
Wiley Bros., Inc.
'' ;
•
\£H%L
.
are
Fleet.
-
Home
■
In
Batik and Insurance Stocks
VAN
A.
E.
By
covered
by
DEXJSENi
This Week—Insurance Stocks
and National
all companies
dividends by net invest¬
their aggregate surplus had increased 40%, unearned premium
46%, and average liquidating values approximately 36%.
This week there is presented a table which shows that the
1945
net investment income of these 25 companies (including four addi¬
years,
reserves
tional)
in the great majority of cases, substantially higher than
was,
in the pre-war year
of 1939.
Net Inv.
*'
Dividend Rate
Annual
Dividend Rate
$1.80
$3.03
3.25
4.92
.3.50
1.10
3.97
1945.
generally favorable trend
in investment income is directly
This
attributable
dividend
1.75
1.00
of
most
com¬
dis¬
dividend
whereby
consistently predi¬
tributions are
cated
constructive
the
to
policy
in¬
difference
and well within net
on
vestment
the
income,
into
the
after year, plus all
ploughed-back
being
American.
0.42
0.30
0.43
0.30
Shippers.
5.51
5.00
4.63
4.00
business, year
underwriting profits. This pro¬
cedure results in a steady year-
3.13
2.10
3.27
2.10
by-year
0.98
American Equitable
Baltimore
&
_
Insurance
"Boston
,
$1.80
$2.44
Agricultural Insurance
Bankers
Net Inv.
Income
Annual
Income
''
*Aetna Insurance
*
times
panies,
1945
1939
.
1.23
the companies was
in 1939, and 1.45 in
of
coverage
Camden
_.
investment;
for
1.15
City of New York
_
funds avail¬
of
growth
1.00
1.27
1.00
able
1.56
_____
1.20
1.37
1.00
the process
is still going on.
"'Continental Insurance
2.10
2.00
2.85
2.26
2.00
3.22
2.20
4.01
2.50
3.47.
2.50
1.39
1.40
1.40
1.00
1.51
1.20
1.82
1.20
1.41
1.20
1.74
1.20
Association
*Fire
Franklin Fire.
*
American.
Great
___'
"Hanover
_
...
_
"'National Fire_
National
New Brunswick
""•New
trustees
attending
2.50
4.63
2.50
1.60
1.58
1.20
the annual conference of the Na¬
2.50
4.35
3.00
tional Association of Mutual Sav¬
3.47
2.00
3.11
2.00
0.40
0.39
0.30
ings Banks elected A. George Gilman,
President of
the Maiden
2.00
1.70
1.89
1.50
Savings
2.01
1.80
2.42
1.80
1.02
_____
_
Liberty
Hampshire
_____
_
0.90
1.48
0.80
New 'York Fire
1.06
—
1.00
1.16
1.00
3.66
North River
""Phoenix
3.00
3.95
1.75
1.40
1.94
Bank,
Massa-
Maiden,
1.60
3.42
feili
"'Security
1.97
1.40
2.30
^Springfield Fire & Marine.
5.73
4.75
6.40
4.75
2.38
2.00
2.65
2.00
*
be
the
1945
net
in¬
vestment income was either lower
than
as
approximately
or
the same
that of 1939; these cases, how¬
are
to
re¬
4%
or
return
due vo
is
pri¬
good
experi¬
business
invest¬
our
direct
on
the
on
This
charged
loans
on
the
in
1920's;
it
9% which
or
individual
many
but
rates
of
that magnitude give fair
warning
that the loan that is being made is
a pretty poor risk. And such rates
constitute
burden
a
on
the balance
of
payments of the debtor coun¬
that is almost impossible to
carry when a major world depres¬
fractional betterment in 1945
charging
is
the
in
lies
over
investment
Insurance
Knickerbocker
to
appears
realized
of
on
1920's
the
have been
the invest¬
as
whole.
a
are
blindly pressed upon countries to
finance undertakings that are be¬
A.
George
yond their means. They are being
judged in terms of the effects they
will have upon the whole economy
of a country and its international
Earl B. Schwulst
Gilman
position. And notwithstanding the
uncertainties
enormous
years
ahead, there
of
are new
the
factors
that afford
in ;he situation
some
hope that the problem of trans¬
ferring service on these loans
the
across
international
of payments
Com¬
merged, and the capital
from 200,000 shares to
300,000 shares. Excluding Ameri¬
first group, viz: City of New York
can
Equitable, the average im¬
and New Brunswick, are in the
provement
of
1945
investment
Home fleet, and all of the second
income over 1939, for the 28 com¬
group. Home Insurance Co., it¬
panies, was 15.3%, including the
self,
moreover,
shows
only
a
following
declines:
Bankers
&
Shippers, 16%; City of New York,
12.2%; National Fire, 10.4% and
reconstruction
neighborhood of
the
in
interest
of
rale
on
being carefully screened to mee.
only the most urgent and produc¬
tive needs.
They are not being
1939, viz: $1.58 vs. $1.54. The ex¬
planation for this below-average
record
the
time
are
Also, this time foreign loans
shares 1939; 240,000 shares 1945;
shares 1939; 1,500,000 shares 1945.
the
Franklin
American,
and National Liberty.
have
we
investment.
actually
s
Baltimore
3
of
remarked,
policy of the management during
tne war years, which resulted in
a
far larger proportion of funds
Companies with lower invest¬
being invested in Governments
ment income include: Bankers &
than during pre-war years, and a
Shippers, City of New York, Na¬
lower-than-usual
tional Fire, and New Brunswick; consequently
proportion in equities.
companies which show practically
The figures for American Equit¬
no
improvement, but report ap¬
able are not comparable for the
proximately the same net invest¬
two
years,
because
in
1944
ment
income
both
years,
are:
the exceptions
general rule,
ever,
and
3%—a rate which, as I have just
in^-
that
observed
instances
broadly,
very
loans
NOTE—Fire Association, 200,000
will
ing
ments
Insurance of No. America, 1,200,000
It
loans
undefaulted
ceived something like the equiva¬
we
Consolidated earnings.
seven
the
equity holdings, is well in excess
of the money we invested. Speak¬
This
1.40
S. Fire
with
together
which
dollars,
sion strikes.
2.00
U.
in
try
1.40
2.38
_
vice
3.00
"'St. Paul Fire & Marine
*Providence-Washington_
eign investment in the 1920's we
have received an aggregate ser¬
was
3.53
"'Insurance of No. America._
is
is far short of the 8
3.20
______
respects, though not as bad
commonly supposed. As a
matter of fact, on our total for¬
many
as
marily
0.38
_
"Home
We have not forgotten
happened 10 the investments
.hat we had abroad in the 1920 s.
Our experience then was bad in
what
ments abroad and, in any case,
and
balance
will not prove to be
it was in the
the stumbling block
pany was
1930's.
increased
It is significant that two of the
New
BANK
percentage increases
were made by Insurance of N. A.,
54.3%
(adjusted for stock divi¬
dend); New York Fire, 45.1%;
Hartford Fire, 44.7%; St. Paul
F. & M., 43.7%; Fidelity- Phenix,
42.5% and Continental, 35.7%.
INSURANCE
STOCKS
Higher dividends were paid in
1945
by Agricultural, FidelityPhenix, Insurance of North Amer¬
ica and St. Paul; lower dividends
Laird, Bissell & Meeds
Members New York Stock
Exchange
120 BROADWAY, NEW YORK 5, N. Y.
^Telephone:
paid by Bankers & Shippers,
City
of
New
York,
Franklin,
Home, National Liberty and New
were
BArclay 7-3500
J Bell Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Department)
Depressions
The chief ground
Brunswick.
Five
of
these
latter
John W. Sandstedt
chusetts,
to
be
president of the
Association for the ensuing year.
officers
Other
Earl B.
were:
Savings
Bank, New York, Vice-President;
Edmund
P.
Livingston,
VicePresident of the Union Dime Sav¬
ings Bank, New York, Treasurer;
Executive Sec¬
retary, New York.
(California)
their
annual
JO Post
Office Square
HUBBARD 0630
.*
:
**-*97£
67
.
Wall Street
WHITEHALL 3-0782
;
Nr
1-2875
PORTLAND,
Vice-Presi¬
dent, Marvin R. Kuppinger, Lester
& Co.; Secretary, George R. Liddie, First California Co.; Treas¬
urer,
Marcus B. Eilers, George
Miller &
R.
231
man, Hill, Richards
Glen M. Ogg, George
S. £aSalle Street
FRANKLIN 7535
CG-IOS
Enterprise
Co.
CHICAGO
'
7008
Co.
New Directors—C. Harry
CHICAGO 4
&
Lauf-
Co., and
R. Miller &
.
The
Club decided to hold their
the Corona DelHotel, the weekend of June
annual outing at
*
PROVIDENCE, Enterprise 7008
on
followng officers were elected:
j
President, Vincent W. Jardine,
PRIVATE WIRE SYSTEM CONNECTING: NEW
YORK, BOSTON.
: PHILADELPHIA, ST. LOUIS, LOS ANGELES
HARTFORD, Enterprise 6011
Club
May 6 at which time the
INCORPORATED
NEW YORK 5
Bond
meeting
mar
15.
,
i
are
many
prevent the most extreme fluc¬
Steadier economies in
tuations.
major
disturbances
will
countries
to
to
them
to
crisis of the 1930's. These
reserves are not, of course, evenly
distributed according to need, and
in any case they must largely be
for
used
lessen
in
the
interna¬
in
the
tries in the years
ahead.
All this
will tend to limit the size of the
international
And
as
larger
a
deficits
we
Fund,
will swing (into
It will use its position to
able in the 1930's,
help assure that adequate correc¬
tive measures are taken, and taken
in time.
While Ihe.y are being
taken and until they bear fruit,
prepared to as¬
sist a country financially by mak¬
ing foreign exchange resources
temporarily available to it.
Not
only will countries have access to
the billions of dollars available in
the International Monetary Fund,
the Fund will be
but they
be
of
safer
currency
stability and freedom of Exchange
markets is achieved.
Here then
four
are
major
rea¬
sons—diminished business fluctu¬
ations,
control
of capi al
action of the International
Fund,
flights,
Mone¬
larger basic re¬
serves abroad of gold and
dollar
exchange—four major reasons why
tary
and
the international financial
down of the 1930's is not
be
break¬
likely to
repeated on the same scale
I might add to this list of
again.
economic factors the progress that
we
hope to make in the forth-*
coming conferences on commercial
policy.
If
these
conferences
achieve
reductions
substantial
in
the barriers to international trade
and open
the field more widely to
enterprise and competi¬
tion, the effectiveness of meas¬
ures
designed to correct balance^1
private
of
payments defici.s will be cor¬
respondingly enhanced. Even on
the political front, although the
immediate problems are great, we
are
better organized than in the
anarchic period of the
now
we
already have gold and
f
1930's; for
have the United Nations
the
all
embracing
great
powers
with the United States play¬
and
full and purposeful role.t
The possibility that war will cut
across the whole pattern of inter¬
national investment is materially1
ing
a
lessened, though of course far
from eliminated, by the United.
Nations Organization.
All of this may
sound a bit op¬
bankers. I can
sympathize with that feeling.
If
one
looks only at the problems
that face us today in the interna¬
tional sphere, there can be few
grounds for optimism. The prob¬
timistic
to
you
themselves
lems
are
unprece-
f
it would be a bold
predict in just
what way this war-stricken world
will finally settle down.
What 115
have been trying to emphasize,
however, is that we are far better
organized and equipped to deal
with these problems than we were |
dented, and
who
man
would
with those which
first
the
by
were
World
left behind
We
War.
Australia and New Zealand
BANK~OF
NEW SOUTH
WALES
(ESTABLISHED 1817)
Paid-Up Capital
Reserve
£8,780,000
Fund
6,150,000
Reserve Liability
of Prop.- 8,780,000
£23,710,000
Aggregate Assets
Sept., 1945
30th
-
£223,163,622
THOMAS BAKER HEFFER,
General Manager
Head Office;
George Street, SYDNEY
LONDON OFFICES:
29 Threadneedle
47
Street, E. C. 2
Berkeley Square, W. 1
.
Agency arrangements with Banks
throughout the U. S. A.
must%
institution which was not avail¬
action.
will
measure
these deficits occur
the International Monetary
an
if
1930's—
great capital flights—will be se¬
verely under control in most coun¬
face.
reconstruction
for
In addition, the most up¬
element
stabilization
currency
rather than for the re¬
construction job.
That job is too,
big for them. But the loans made
purposes
international
situation
tional
Wm. R. Staats & Co.;
BOSTON 9
to
setting
Elects New Officers r
available
were
from
of trial and error ahead—
have, I believe, learned enough
trade.
held
GEYElt & GO.
there
duction—while
the
Pasadena Bond Club
far
are
years
the
PASADENA, CALIF.—The Pas¬
BANK and INSURANCE STOCKS
we
having mastered the problem of
how to keep a free economy run¬
ning smoothly at maximum pro¬
we
John W. Sandstedt,
While
curred.
elected
Schwulst, Executive Vice-
President of The Bowery
adena
WHOLESALE MARKETS IN
for this hope
probably learned
enough in the last 10 or 15 years
to prevent the full recurrence of
such
a
depression as then oc¬
is that we have
Brunswick, 5.5%.
Greatest
and
Have Learned to Prevent
E. P. Livingston
that
reserves'
than double the
are more
eyes open.
ence
1.54
"Hartford
Lending
Foreign
Previous
First, let me say, however, that
we
are
going into it with our
whole
Officers
dollar reserves of their own, which
meet ;he
lent
2.00
"Fidelity-Phenix
(Continued from page 2783)
and I hope to give you
a brief picture of it and the phi¬
losophy behind it in my talk today.
program
Average
alone.
income
ment
presented a tabulation of figures for
companies which showed that, during the war
Two weeks ago this column
Our Foreign Lending Program
not
investment - inrcase
of American
net
the
in
come
the
were
Equitable, Home
Liberty; in 1945
covered
25 stock fire insurance
dividends
1939
of
members
companies
.-.Sf ,r.'■
-
Thursday, May 23, 1946
THE COMMERCIAL & FINANCIAL CHRONICLE
2802-
NATIONAL BANK
of INDIA, LIMITED
Bankers
to
the Government In
Kenya Colony and Uganda
Head
,
26, Bishopsgate,
London, E. C.
Office:
Branches In India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Subscribed Capital—,~-£4,000,000 '
Paid-Up Capital
£2,000,000
Reserve Fund
£2,200,000
The
>
Bank conductsevery description
banking and exchange business
ef
Trusteeships and Executorships
also undertaken
,
T
.Volume 163
*
'•
...
•
.
.
......
.
should not just sit back and as¬
that
sume
history will repeat itr
other
vestment
the
been
strengthened
agencies in connection with
of
sale
Lend-Lease
inven-
iu manyimportant
tories
and
we
abroad,
and
mission
has
been
are
of
we
to. the
come
the war-damaged
countries
their
feet;
if
to
we
we
shortages
aid
can
back on
tide them
when their
get
can
these first years
over
assistance
countries of
Europe. and Asia. If
these
risks"
"calculated
call
when
temporarily acute
means
of paying for
through experts are not yet
restored; if we can help them to
obtain the means to help them¬
selves; then we may find not only
and
are
foreigners
| that they can repay us what we
have lent, but that they are strong
enough to participate with us in
building a world of free enter¬
prise and expanding emp oyment
production. It is in that sort
and
of world that democracy can best
thrive.
Aid to British
We
a
Key-Loan
kept these purposes
clearly before us in the lending
The
we
have
undertaken.
that
to the British. The United King¬
key
loan
is,
of
course,
dom is the greatest trading nation
in .the world and the pound sterl¬
ing is the
currency
in which much
of the world's business is carried
The many
on.
port
buy
countries that
to England more than
from her were at one
able
ex¬
they
time
to
employ the sterling pro¬
ceeds of their sales to buy out¬
side
the sterling area—particu¬
larly in the United States. Under
war
conditions
this freedom
was
lost.
England could not possibly
restore it again in the difficult
transition years without the aid of
Export-Import
on
the most
pressing needs that must
before
financed
be
tional
Bank
the
Interna¬
Reconstruction
for
Development is ready
business. The resources of
for
the
Export-Import
in-
and
Bank
were
should
I
be
interested to have
comments on the market
prospects for bonds of the Inter¬
national Bank. It is possible that
there will be an offering of such
bonds before the year is out.
As
you know, the International Bank
your
Bank loans has been to meet only
into
came
existence
last
Decem¬
ber, and in March the first meet¬
ing of its Board of Governors was
held in Savannah.
The smaller
working group of Executive Di-?
delegated
even
ton.
whom
to
rectors
now
the
President
The
Board
has
most of its powers is
in session in Washing¬
will have to build
will not be greatly altered by
to
the
N.A.C. is. taking its task with the
utmost seriousness. The Secretary
of the Treasury is chairman and
supply most of the International
regular meetings in his
groupc; is * constantly
shaping and reviewing the lend¬
ing program of this country, both
funds.
Bank's
American
Furthermore
the
of
director
wields about 37% of
there
the total vot¬
in
ing power. Even more important
than this, however, are the pro¬
under which
visions
of
the
United
the
is
States
already
Substantial
loans
been authorized
to
Netherlands,
Norway, Finland, Po¬
land, and Greece and still larger
France,
Belgium,
Denmrak,
loans to these and other countries
are
under
now
discussion.
The
have been pared down
repeatedly; but the rock-bottom
needs that must be met before the
International
Bank is
ready to
take over remain on a vast scale.
programs
Reconstruction loans by the Ex¬
Bank
have
been
20-year basis ex¬
cept for a few special loans for
30 years at 2%%.
These special
loans
have been made only to
port-Import
made
a
on
3%
France, Belgium and the Nether¬
lions
dollar
of
consent
the
of
required
consent
in
these
has
cases
the
ask that the
of the United
States will continue to be broadly
conceived
and
well-integrated,
insurance
com¬
Bank.
and
the
These five
program
that
and
effective
limited
will
it
make
of
use
resources.
our
most
the
admittedly
It will be pow¬
erfully, directed toward rebuild¬
ing
the kind of
international
world in which, American free en¬
terprise can thrive side by side
foreign enterprise, and the
with
foundations of the peace can
made
Chairmen of the Federal Reserve
Board
could
you
lending
fall
outset
will be increased.
it*is
surance
been
assigned by' Congress to a new
body which already has assumed
primary importance in our inter¬
national lending picture. I refer
to the National Advisory Council
on
International
Monetary and
offer its bonds for sale in this
At
Bank
and
into full operation the task
have in this Council the best as¬
Council
The power to give or withhold
be¬
country.
whole. As the
a
Fund
already clear that an
lars
subscribed
by
the United adequate system has now been
States or can float or guarantee devised for bringing together the
Government
an issue in the American market#
agencies
primarily
concerned with our foreign finan¬
Function of National Advisory
cial policy I believe that you
-
to
as
the N.A.C.
But
the
likely,
detail and
come
and
Problems,
commonly
if, as. seems Financial
demand of foreign known as the N.A.C. This Council
countries
is
predominantly for is composed of three Cabinet
dollar resources, it may be neces¬ members—the Secretaries of State,
sary for the Bank at an early date Treasury, and Commerce—and the
fore
The
International
before the Bank can lend the dol¬
up a
subscriptions
are
office.
the
bank
i
have
help preserve its stability. The
change. As I have already re¬
marked, the United States invest¬
ment market will be expected to
the Bank
of
against another, but it must be
fitted into the position of our do¬
mestic economy jh such a way as ;
representing some 40 nations, the
predominant role of the United
States
in
international lending
staff, and
In.
!}>
t
this may take some months. Grad¬
million to $3,500 million and the
ually '« the
Bank
will
acquire
i-^toiuem i*as stated tnat ne will
working funds through calling up
ask Congress for another $1,250
a portion of its capital. Under its
million to
enable
the Bank to
statutes, however, it can hardly
complete its part of the recon¬
call up much more than $400 mil¬
struction
job.
have
program
policy
the credit risk.
sumes
to
ships on credit.
All this is
helping to meet the needs of Eu¬
rope and Asia on the basis of de¬
ferred payments. But the loans of
actual money are being made al¬
most entirely by the Export-Im¬
port Bank.
Our
supplying funds to
while the Bank as¬
visitors will be
(
property
authorized
by guaran¬
or
either case private in-
rowers. In
(
sell
their
them
surplus
securities
own
teeing the issues of foreign bor¬
the Maritime Com¬
respects and
taking what the generals
would
,
its
Import Bank. Substantial Credits,
to be sure, are being extended by
self. The basis of international in¬
has
2803
& FINANCIAL CHRONICLE
THE COMMERCIAL
Number 4492
•
*
secure.
be
'
have been
men
Conn-Lee Associates
panies and savings banks in many given the task of coordinating the
States may find that the existing foreign lending policies and finan¬
cial
operations of this Govern¬
legislation does not provide for
ment and of the United
States
purchase of this new type of bond.
on
the Interna¬
Until a few months ago this was representatives
tional
Bank
and
the
Interna¬
the case in New York; but through
tional Monetary Fund. It is for
prompt action a law was passed
them to keep the whole program
permitting the savings banks of
that State to invest in the obli¬ that I have been discussing in this
*
BENNINGTON, VT.—j. A. Conley has formed Conn-Lee Asso¬
ciates
with
offices
Street to engage
business.
,
.
at
Union
209
in the securities
.
J. L. Kennard Opens
talk
in
EVANSVILLE, IND.—J. L Ken¬
proper
proportion and
gations of the new International
lands and have been for the pur¬
order.
Not
only
must
it
be nard is engaging in the securities
Bank when they become available.
pose of financing goods author¬
from
offices
in' the
adapted to the needs and capaci¬ business
Commercial banks in general will
the American loan. She doesn't ized under the Lend-lease pro¬
ties
of one foreign
country as American Trust Building. ■* q
be free to invest up to 10% of
have the dollars. Without the loan gram but ordered after the end
their capital and surplus. It will
she would be driven to desperate of the war. They amount to about
be for them to determine to what
measures—to a whole series of bi¬ $650 million. The remainder of
extent they wish to purchase se¬
lateral deals, every one of which the great Export-Import Bank re¬
curities of the International Bank,
would descriminate
against the construction loans, which are on
taking
into
account
maturity,
United States and would draw a 3% basis with serial maturities,
risk, marketability, etc., the Bank
LIFE ASSURANCE SOCIETY
world trade away from its most may in the course of time prove
will undoubtedly
exercise great
productive channels. Although in salable in some measure to the
OF THE UNITED STATES
care to adapt the form of its se¬
the end this system would seri¬ private market.
This is particu¬
curities, to the potential market
ously shrink world trade as a larly likely in the case of the
393 Seventh Avenue, New York 1, N.Y.
which it finds available!
whole and work against Britain's shorter maturities.
own interests,
the United King¬
Basic Risk Involved
The Bank is anxious to sell as
dom would be forced to get what much as it can to the market be¬
Notice of Nomination of Directors
As regards the basic risk in¬
she could out of it in the critical cause it is under a legal directive
volved I might make one com¬
transition years. Anything gained to
supplement private investment ment. The Bank cannot lend more
Notice is hereby given that in accordance with the
in that period when exports were rather than
provisions of the
compete with it and than its unimpaired subscribed
Insurance Law of the State of Now York the Board cf Directors of The
still insufficient to pay for the most because the more it can sell, the
capital,
surplus,
and
reserves,
Equitable Life Assurance Society of the United States has nominated the
urgent import needs would be more resources it will have to which
today amount to
about
following named persons as candidates for election as Directors of said
worth considerable
sacrifice of do those parts of the job which
$7,600 million. Hence if it borrows
Society:
future potentialities. Once set on
private
investors
are
not
yet and lends to the maximum pos¬
this path it would be hard for her ready to do. As you know, the
JAMES B. BLACK, San Francisco, Cal.
sible, both its loans and its Obli¬
ever
to disentangle herself.
So $200 million loan recently made to
President, Pacific Gas & Electric Co.
gations will amount to about $7,many vested interests would grow
the Netherlands Government was
600 million. The obligations will
JOSEPH P. CHAMBERLAIN, New York, N. Yi
up around the discriminatory bi¬
opened to the banks of the coun¬ be covered to the extent of about
Director, Legislative Drafting
%
lateral arrangements
that even try on a on a participation basis.
Research Fund of Columbia University
$3,200
million
by the
United
the Bretton Woods Fund could Since it was an extremely short
States subscription. The remain¬
BERTRAM CUTLER, New York, N. Y.
hardly blast them loose. And with maturity of from one to two years
ing $4,400 million will be covered
Member Personal Staff, John D. Rockefeller, Jr.
'~k"
England playing this sort of eco¬ and bore an interest rate of 2*4%
by claims against foreign govern¬
M. HARTLEY DODGE, New York,
nomic game the chances for co¬ it is not surprising that $100 mil¬
ments and central banks amount¬
Chairman, Board of Directors,
-ifei
operation in the political field lion of it was in fact taken by the ing to about $12 billion—i.e., $4.would be jeopardized.
Remington Arms Co., Inc.,
banks. It is not,1 to be sure, the
400 million of foreign government
DOUGLAS S. FREEMAN, Richmond, Va;
The loan agreement with the usual type of loan provided for subscriptions to the capital of the
British, therefore provides spe¬ reconstruction
purp.oses.
That Bank plus the $7,600 million of
Newspaper editor and historical writer
cifically
that, within one year would require a much longer loans, all of which must have be¬
WILLIAM J. GRAHAM, New York, N. Yi
from the date when the agree¬ term. The $200 million credit is hind them the credit of a govern¬
Vice-President cf the Society
ment becomes effective, sterling merely in anticipation of other ment, central bank, or similar in¬
WILLIAM A. KELEIIER, Albuquerque, N. Mi
Jfe
due on current transactions with measures that the Dutch will take stitution acceptable to, the Inter¬
Counscilor-at-Law
THE
j
EQUITABLE
ti"
N.Vj
any part of the world shall be
I made
convertible
unless
the
United States consents
time.
This
to
an
ex¬
is written
tension
of
into
agreement in which $3,-
an
750,000,000
;
,
is
provided
c
to
help
England purchase the supplies she
will urgently need before
her
ex-
ports and other sources of inter¬
national income build up suffi¬
ciently to enable her to pay her
,
;
Because the loan deals
key situation and has
to borrow here or
a
objectives
than
a mere
financial transaction, it is on a
larger scale and on more liberal
terms
than 'any other eontemplated by the United States.
It
has been laid before Congress for
larger
approval; and the funds, if sup¬
plied, will be voted by Congress
for this specific purpose.
liquidate their
assets; Nevertheless it is cause for
a
considerable satisfaction that
which is
market
tious
about
tional
ences
a
extremely cau¬
interna¬
resuming
lending .after,
of the
this occasion
the
experi¬
1930's has made
so
substantial
an
on
in¬
vestment.
i
„
■Export-Import Bank Loans
$12 billion of
RUSSELL B. LOWE, Fitchburg,
Manufacturer
claims
against foreign govern¬
ments or central banks would
have to shrink through defaults
such Shrinkage as this
Market for
International Bank
Obligations
The
channel
chief
which
private
abroad
in
the
funds
through
will flow
immediate
future,
however, is likely to be obliga¬
tions
of
the
International
Bank.
The major part
lending will be
of the Bank's
financed with
funds raised in. the market, since
the Bank can use only 20% of its
own
The
called
capital
view
of
ahead
the
particularly in
to which I
attention earlier
—
have called your
in this talk.
Counscllor-at-Law
G. CARROLL
A certificate of nomination of the
with the Insurance
Ipyspf
Equitable Life Assurance Society%^
of the United States will be held
port-Import Bank of most of the
burden of making reconstruction
or development loans. While the
shift
from
the
Export-Import
Bank to the International Bank
will be from an agency of- the
United1 States to
an
institution
force
securities
said candidates has been duly
Department of the State of New York.
The annual election of Directors of The
New York 1,
the
TODD, Washington, D. C.
Counscllor-at-Law
the Inter¬
national Bank find a ready mar¬
ket in the United States it should
be able in 1947 to relieve the Ex¬
If
§
JESSE SLINGLUEF, Baltimore, Md.
occurred in
factors
Brooklyn, N. Y.
Board, Brooklyn Trust Company
LEONARD PECICITT, Allentown, Pa.
servicing of our foreign in¬
during
the
ill-fated
1930's and there is little reason to
believe that it will occur in the
decades
Mass.
EDWIN P. MAYNARD,
Chairman of the
$4,400 million before the bonds
of the International Bank would
cease to be covered in full., No
to
vestment
for making loans.
remaining
80%
can
be
up only to the extent it
0 The remainder of the United may be needed to meet the obli¬
States lending program is largely gations of the Bank.
The Bgnk
being carried out by the Export- may raise funds either by issuing
i
national Bank. This
the
own way.
with
;
V
Export-Import
of
N. Y.,
on
at its Home Office, 393 Seventh
Aveauep^'
December 4, 1946, from 10 o'clock a.m. to
o'clock p.m., and at said election twelve Directors, constituting oncA'|l
Class of the Board of Directors, are to be elected for a term of three yearsV
from
January 1, 1947. Policyholders whose policies or contracts are id:|T
on the date of the election and have been in force at least one year,.';A
prior thereto
are
entitled
to vote
in
person or
by
proxy or
by mail.y-
ALEXANDER McNEILL, Secretary.
May 22, 1946.
,
2804
THE COMMERCIAL & FINANCIAL
CHRONICLE
expectedly postponed
of
Cctnadimv Securities
,
Narrow
appear to be downward.
crying in the wilderness.
Canadian Securities
constructive
if
and
any¬
central
government.
The
internal
with
on a
federal
stocks
bonds
MARKETS maintained in
all classes of Canadian
external
and
internal
bonds.
of
the
Rowell-
Royal Commission.
This
impartial body which was ap¬
pointed in 1937 following the Al¬
berta
debt
ported
1940.
in
orders
executed
Many defects
the
(for dealers, banks and
institutions) on the Mon¬
treal and Toronto Stock
Exchanges,
net
at
or
were
New York Prices.
Direct Private Wires to Buffalo,
Toronto and Montreal
iV'
<0RPOKATIO7i
that
issue
in
the
is
and
which
by
New York 5, N. Y.
'
Bell System Teletype NY 1-702-3
to
would
of
and
the
CORPORATION
the
whole
and
the
the
ensure
full
as
Ludington
members
NEW YORK 5, N. Y.
SECTOR 2-7231
NY-t-1045
Howarth,
-
the
of
firm.
Luding¬
prominent in the activities
wwwwWBBMMWiP"
centered
on
Changed
coming $86 million Montreal fi¬
nancing which was recently un¬
beat
a
had
It
lot quicker
Our Govern¬
expected.
we
Chinese,
the
had
to spend
untold bil¬
courage
save
the
courage
to
de¬
Russian,
and
Japanese
lives.
Since
VJ-Day,
bilized quickly.
have demo¬
The number of
we
in the armed forces has been
men
Offices of the
new
organi¬
zation will be continued at 40 Ex¬
change Place.
has
been
Samuel H. Junger
proprietor
of
H.
S.
Junger & Co., with which Robert
S.
Junger
was also
though he has
war
duty.
associated, al¬
recently been
Mr. Anderson
was
on
for¬
merly with Dean Witter & Co.
We
offer, subject:
&
company
64 Wall Street, New York 5
S
WHitehall
3-1874
$50,000
Province of Alberta
3V2% Bonds, Due June 1, 1980
(Callable
at
100
in
1950)
t
Principal and interest payable in New York
Canada
Price 100 and interest
yielding 3.50%
CANADIAN
SECURITIES
Government
Municipal
Provincial
Corporate
Wood, Gundy & Co.
Incorporated
14 Wall
Street, New York 5
Direct Private Wire $
to
Toronto & Montreal
,
JvM
Vtu-V- W
the
are
of the last war would have turned
the trick
and prevented the 1921
depression. If
tinue
last
the
profit from our
we will con¬
we
time,
for
controls
another
year.
Government
those who
have
been
We
canceled
our
war
contracts
quickly following VJ-Day, and we
have settled them quickly. Settle¬
ment will be almost completed
by the end of this fiscal year.
Congress had placed in the hands
the Executive Branch
a
well-
without complaint. War con¬
physical and a financial position
resume peacetime
production.
I
concluded my wartime service as
to
I say this with due modesty as
Expenditures
Reduced
During the past year, the Gov¬
has made great strides
toward reducing its expenditures.
It is important to understand
just what is involved here. The
ernment
prime requisite is that the Gov¬
ernment
cut
down its purchases
services, and do this
quickly. In this way, the men and
machines formerly working for
of goods and
the
Government
to make
be released
can
things for civilians. This
is necessary to raise our standard
of
living. It is necessary to com¬
inflation, for it was the diver¬
bat
sion
of
men
and
machines from
making civilian goods to making
goods
war
of
the
the
which
was
the
cause
inflationary
pressures in
place. Inflation can be
only by
reversing the
first
beaten
And
,
In
general, reducing the Gov-,
ernment's demand for goods arid
services means reducing Government expenditures. This is always
true in the long run. But some¬
times in the short run it means,
the exact opposite. Take musterr
ing-out
pay, or contract
settle¬
for instance. The faster;
is paid out on these ac¬
counts, the more rapid is demo¬
ments,
money
bilization
and reconversion, and
swiftly the flow of civil¬
ian goods and services
gets going..
If we had spent less this
year on
mustering-out pay and on con¬
the
more
tract
settlements, Government
The
speed
with
which
de¬
mobilization has been carried on
has increased many classes of ex¬
General Counsel for the Office of
penditures
reason,
ment.
remarkable
Industry has responded swiftly
the
to
termination
of
wartime
needs. The production of civilian
goods has risen more rapidly since
VJ-Day than in any period of
equal length for which we have
record,
the
and
production
of
civilian goods was at an all-time
immediately preceding
shut-downs
brought on by
high
coal strike.
In
the
the
March,
the
month for which we
this
year.
For
I think it is all the
tures have
recent
have figures,
most
that
total
down
come
this
more
expendi¬
rapidly
they have. Total Federal ex¬
penditures in April 1945 amounted
as
as
to
$8,000,000,000.
In
June 1945»
VE-Day, they
high of $9,700,000,000;
while last month, they were down
to $4,200,000,000,
and they will
continue to decline swiftly as de¬
the
month
reached
after
a
mobilization is completed.
While
y
ex¬
penditures would have been less.
We would have saved
money this
year, but it would have cost us a
great deal more in the long run.
Contract Termination and Settle¬
the expenditures of the
Government have been
Federal
declining rapidly, revenues have
3,000,000 men were un¬
employed and seeking work, and
most of these were unemployed
because they could not find the
right job, not because they could
find no job at all. The number of
unemployed is very small, con¬
sidering the great reduction in the
held up remarkably well. This is
because business has been good
and jobs have been plentiful. In-»
of the armed forces
and the
in
occupa¬
Net receipts for the first ten
months yofv this fiscalyear
tremendous
turnover
come
tax
because
and
so
than
receipts have been large
incomes have been high,
have taxes. But no higher
we
need
in
times.
these
,
critical
■,
tions which is taking place even
amounted to
in civilian life.
cline of only about 4% % from the
The controls have been relaxed;
but they have, for the most part,
held* The people have shown that
they have the fortitude to put up
as long as they are
with controls
necessary to
$35,800,000,000,
.
-e
i
1
a
de¬
corresponding ten; months of the
last fiscal year, all of which were
during a period of total war. The
decline
in
receipts,
as
compared
year,; has, - of course*
been somewhat greater in recent
with; last
prevent a postwar in-,
subsequent defla?. months.,. Net - repeipts Jn
flation vand* a
keep
they
Two years after the end
process.
size
.
or
people will
long
as
as
needed.
day.
less than
Taylor, deale
things
being done; some of them are
nearly completed. In the mean¬
time, I feel confident that the
are
reduced from over 12,000,000 on
VJ-Day to less than 4,000,000 to¬
has
changed to Junger, Anderson
& Co.
mar¬
the forth¬
Japan
briefly in
tractors have been placed in both
Junger to partnership in his firm
ket continued its inactively hesi¬
tant course.
Price changes were
was
year
a
Samuel H. Junger has admitted
of the most critical
terest
the
pass
stroy two cities in order to save
millions
of
American,
British,
Presi¬
been
slight and the turnover was on a
negligible scale. The general in¬
an
George T. Anderson and Robert S.
time, which will
be judged in the
During the past week the
TWO WALL STREET
out
tions.
Firm Name Is
stages in Canadian history.
INCORPORATED
than
and
at this
one
ac¬
most ur¬
civilian de¬
met. All of these
troubles of
on our
discharged have been .absorbed
quickly into peacetime occupa¬
and the name of the company
as
of
Junger Admits Two;
development
the pent-up
are
pro¬
consumer
filled; and until the
gent of
good to look back at them,
because it may help to restore
lions.
retarded
undoubtedly
our
year ago.
thought-out Contract Settlement
Act, and settlements have been
kept abreast of the filing of con¬
tractors' claims. In the meantime,
adequate interim financing has
been provided, so that no one has
had to wait for his money. Plant
clearance has proceeded swiftly,
,
a
future
a
are
is
de¬
of the Canadian West will not be
A. E. AMES & CO.
It
$2,000,000,000 to
Si-
plants
war
long pipe lines between the
are
mistake
inventory of
homefront worries of
We
entered the financial field in
with the Guardian Detroit
been
that the
Dominion
fair
a
"
%
of
rally behind the banner of
of
This is
of
of the Bond Club of Detroit,
Dominion proposals does not in¬
volve the surrender of provincial
autonomy. As for the lesser pro¬
vinces it would be well if they
progress
*
retary of the National Security
Traders Association and has alsq
Before the present impasse be¬
still more acute it is to be
Premier Garson to
'■
Let's
He enters Baker, Simonds
&
Co.
from
Watling
Lerchen & Company, which he
joined in 1932. He served as Sec¬
Canadian tax payer will indeed be
hard.
would
CANADIAN STOCKS
plants.
Company.
hoped that, the leading provinces
will on
sober
reflection, think
nationaly and not provincially,
especially as the acceptance of the
MUNICIPAL
from the Army.
the failure of the Government to
clear its property out of the war
the
Mr.
1925
in the
back at peacetime jobs; until the
mands
ment
dent
ton
men
we were released
has
Vice
comes
PROVINCIAL
was
day by Wins-
•
GOVERNMENT
war
low
shortsighted
field
The
review.
announcement
made
Satur¬
F.
the
ducer and the ultimate
F.
Association
change,
cording to
reception given to his proposals.
Finally if competition is to de¬
velop between the Federal and
governments
in
taxation the lot of
too.
to
whole, we have
pretty well; and, if we
could lick the problems' of
yes¬
terday, we can lick the problems
of today.
of the Detroit
Stock
Ex-
even
Provincial
about,
perspective
today. On the
ing,
B.
necessary until the
are reconverted; until
formerly in the armed
plants
war
going to be long. Demobilization
was going to be slow.
Jobs were
going to be hard to find when
our
monds & Co.,
Buhl
Build¬
working
relations.
It can certainly not be
expected that Mr. Ilsley in his
forthcoming budget will do any¬
thing to ease the strain on the
provincial finances following the
of
bear
partment
Dominion/Provincial
disappointing
CANADIAN BONDS
term
will
Baker,
$400 millions.
Gone is also this immediate
op¬
portunity to modernize the Cana¬
and
other things
many
trading
over
structure
are
forces and
had
joined
social security
1947-48
We
worry
Michigan,
the
now,
eral subsidies
tax
long
fall
the Securities Traders
of
Detroit
and
failure of
the conference involves a loss to
the provinces in the
shape of Fed¬
dian
Dominion
DETROIT,
MICH. — Bert
Ludington, former President
steps proposed by the Sirois Re¬
port are blindly rejected.
relief,
the
next
greater import is the impairment
40 Exchange Place
f
belief
Baker, Simoids & Go.
tional tragedy if the constructive
have totalled
DoMunoTi Securities
an
found
application of the British
it
lines?"
come
America Act which is the
basis of the Canadian
constitution,
and it will be little short of a na¬
As
as
default, finally re¬
findings in May,
North
Stock-
bond market,
longest term bond still
2%% yield basis also appears
its
on
bread
Controls
Dominion
2%% coupon.
a
the
manage
with them any
longer than that.
—provided, of course, that it was
not being held back
anyway by
the
bond
would
not have to put up
controls
Government's
Sirois
postwar problem would be
"who
tion and depression. The Govern¬
has promised that we will
ment
American
mar¬
increasing body
opinion is beginning to share
the
work.
This would hold back
production
vulnerable
of
of
out
not
yet fully reacted to
this basic change of outlook.
The
plan, moreover, would have gone
a long
way to implement the rec¬
ommendations
has
be
O'Malley's
The
Federal
Government was
going to continue heavily in the
red for years. Contract settlements
were
going to drag on endlessly.
obligation and the Canadian
ket
strong
a
There is
est
that Canada is now an adult na¬
tion and followed the line laid
down by the Fathers of Confeder¬
provision of
chief
pros¬
that the
thing, erred on the side of gener¬
osity. They took stock of the fact
ation—the
re¬
growing acceptance of the belief
long term rate of inter¬
is stabilizing on the basis of
2i/2% for the longest Government
•
The proposals set forth
by
the Dominion Minister of Finance
were
less
to
Mr.
of
whimsy
Fascist friends in the comic strip
Barnaby, which I hope you all
enjoy as much as I, said that the
pects the general trend would still
voice
a
much
a
going
One
has to
easier at 9 5/16%.
With regard to immediate
unwieldly anachronistic Canadian
system proved to be
on
were
strong
a
now
Internals were quiet and un¬
changed with free funds slightly
The
tax
offering
VJ-Day
(Continued from page 2783)
market; the proposed
parcelling into two or four lots in
undoubtedly
indicative
of
the
changed conditions.
were placed before the welfare of the
Dominion
champion of the^
western provinces, Premier Stuart fought
strenuously and eloquently
Garson of Manitoba who has long for the
general overhaul of the
whole.
a
Fiscal Progress Since
sponsive
provincial interests
as
the crest of
on
upsurge, the
be launched
Provincial intransigeance concerning the Dominion tax proposals
placed before the recent Dominion/Provincial Conference has raised
an obstacle in the path of Canadian
progress*;
V Unhappily the conference was dominated by the
spokesmen of
Quebec.
eve
questioned, for in the zeal of en¬
deavoring to improve on excellent
bids made
and
the
wisdom
By WILLIAM McKAY
the powerful dominant provinces of Ontario
on
definite announcement.
The
of this step can now be
a
Thursday, May 23, 1946
March,,
.
{Volume 163
Number 4492
the last major tax
amounted
ever,
a
month, how¬
$5,700,000,000,
to
decline of only 17%
below the
corresponding month of last year.
As a result of rapidly declining
expenditures on the one hand and
well-maintained receipts on the
other, the Federal budget has
come
nearly into balance. Receipts
exceeded
expenditures in both
February and March. There will
be
deficit
some
mainder
this
of
the outlook for
a
a
held, will give to its holders
of enhanced participation
sense
their country's affairs and an
enhanced interest in our national
gent
well-being.
Promoting
bonds is
the
sale
of
savings
of the things which
be done on the fiscal front to
can
one
the inflationary
counteract
which
pres¬
re¬
year,
fiscal
but
the
sures
are
Government
do
can
this
on
The
to
made
balanced
a
it
possible
to
JPPly Part of the Treasury cash
ibalance to
reduction in the debt.
a
.A portion of the certificate issues
due on March 1 and on
15, and all of the certificate issues
on
May 1 were paid in cash.
In addition,
Secretary Vinson an¬
nounced only yesterday that two
dollars
of
the
certificate
issue due on June 1 and the en¬
tire amount of each of the two
bond
issues
which
have
been
called for payment on June 15 will
be
paid
off
that
mean
reduction
in
cash.
This
of June
as
in
the
will
15 the net
Federal
debt
since its peak at the end of Feb¬
ruary will aggregate more than
10 billion dollars. The
budgetary
picture gives
will
us assurance that it
be possible
the
to
The
tax
I have already in¬
holding up very well.
We want to keep them that way.
In order to do this, it will be
necessary to keep tax
rates at
around present levels as long as
the inflationary pressures persist.
ernment,
dicated,
Tax
as
are
rates
have
been
already
substantially reduced since VJDay. These reductions—which, in
broad way, followed Secretary
recommendations—were
Vinson's
important
in
two
Congress swept off
the books the old concept of the
particularly
fields. First,
con¬
the bachelor. The name
of this tax had been changed from
"victory
heavily
as
centrate the reduction in the debt,
as far as
possible, upon securities
"victory" to "normal" prior to its
held
normal about it. It
by
banks.
It
has, conse¬
been gratifying to the
that the Government
security holdings of Federal Re¬
quently,
was
Treasury
conditions.
Banks and weekly reporting
member banks — the only banks
serve
concerning which data
able
lion
year
have declined by 4.3 bil¬
dollars since the end of the
—
—
a
decline equal to almost
three-quarters of the
tion
avail¬
are
in
the
total
reduc¬
net
debt
occurring
there
but
demise,
tolerable
victory
play.
The
unjust and
only under war
elimination was a
Its
justice
for
nothing
was
was
doing this and most of the
stated
countries
field
and
determination
1945
tant
live
to
in which
that
was
business
of
taxes.
Here, Congress — following Sec¬
retary Vinson's recommendation
—repealed the excess profits tax.
This move was thoroughly justi¬
And
little, until
complete.
But they need a helping hand
from us. They need a minimum
amount of loans to purchase the
American-grown and Americanmade
materials
(Continued from page 2785)
necessary
for
their reconstruction and for the manufactures before Britain ' is
on
is
Optimism in London
restoration
their
of
trade.
We
Fortunatelyt,
the
which
goods
these countries need the most
are
not those in scarcest
supply here;
but, even when they are, we must
share
and
—
if
we
to have peace
are
prosperity
here
and
the
in
rest of the world.
imum amount of industrial unrest.
Most urgent of all is the loan to
Britain. Britain held the line for
A
than
more
Nazis
her
cost
two
drain
war
dearly
much. The
war
her
on
before
years
declared
on
and
member
Churchill Government
re¬
marked
recently in private con¬
that, had the Conserva¬
tive Party won at the general
election Britain would be by now
in the third month of a general
the
versation
profited us
a great
has been
In order
resources.
Conservative
former
of the
This
us.
to conserve her assets, she has had
to lay down numerous barriers to
strike.
world
than the relative speed of recon¬
a
world that
she cannot
and
want. But
we
she cannot restore her
omy
What
trade. She wants the same
kind of
own
barriers without
hand
from
This
us.
her
is
the
helping
a
what
the
our
slate
better
for
large
satisfied with
of
Problems
a
we
A
Government,
inter¬
of
proportion
and
a
therefore
are
minimum increase
instead of holding out
maximum. Moreover, while
wages
for
year,
important
more
workmen realize that this is their
national economic relations.
So, in the past
even
advent of the Labor Govern¬
ment.
proposed
Financial
Agreement
does. It is the Number One item
on
is
version, is the relative stability of
British wages and prices.
This is
also due to no slight degree to
econ¬
remove
trade
a
Conservative
Government
would have removed many of the
have
licked many problems; but many
The interest rates at which the
time is to encourage the people to
buy and hold savings bonds. We
are
sometimes
asked, "With a
steadily declining debt, why is the
Treasury continuing to push the
sale of savings bonds?"
The answer is, of course, that
the Treasury is pushing the sale
cf
savings
bonds,
not to obtain
the deficit, but
money to finance
fied
ther dividends
peacetime pro¬
duction progresses. By encourag¬
ing business men both to produce
more and to watch their expendi¬
tures more, the repeal of the ex¬
cess profits tax has contributed to
combat, rather than to increase,
inflationary pressures.
But, in my opinion, the tax re¬
ductions effected by the Revenue
Act of 1945
ary pressures which are still
ing
ones
the
stability
Socialist
prices,
of
Government
has
the
main¬
.
The
peace
war
has
tained
the
been made.
has been won; but
not
jpt
and to
secure a
war,
a
con¬
and which
while
longer;
better distribution
•of the public debt.
3Every dollar which is
chase savings bonds
otherwise
to retire
by
tax
can
reduction
most
strictions.
adverse
used to pur¬
be
and
which
spent
is
a
markets
for
with
pressures
further
thorough
a
a
an
of
the
While
effects
offer to sell
The
orders from Britain to the United
wartime
the
con¬
nor a
purchasing
'which
in
backlog. Some of it will be
tion.
This
any
other
used
to buy goods in the days to come.
More of it will be retained in¬
in
,
the
is
war
almost
war
;
of
that the toll
spring outing to be held on Thurs¬
day, June 13th, at the Edgewood
Country Club in Pittsburgh. Oufof-town guests are cordially in¬
an
afternoon of golf and
other sports for which prizes will
be awarded; there is a greens fee
of $2
payable at the Club office.
Guest tickets are $5 each; reser¬
vations and further details may be
had from Joseph Buffington, 3r^
re¬
Mellon
Securities
Corporation,
Secretary of the Club.
Members
mittee
are:
of
the
Outing Com¬
L. R. Schmertz, Phil¬
lips, Schmertz & Co., Chairman;
John A. Carothers, James Carothers & Co.; Alan G. Clifford, James
H. Scott & Co.; Frank Gurcak,
Thomas & Co.; Arthur H. Hefren,
J. S. Hope & Co.; C.
Jr.,
Moore,
McK. Lynch,
Leonard & Lynch;
Charles W. Over; Chas. Snowden
Richards,
Max N.
Kay, Richards & Co.;
Schugar, McKelvey & Co.;
Richard W. Sheets; E. J. Stewart,
Jr., Merrill Lynch, Pierce, Fenner
& Beane; Austin S. Unstead, A. E.
Masten & Co., and Lawrence E.
White, Blair F. Clavbaueh & Co.
offer to buy
any
we
comment.
shall
which
has
beyond
Price $100 per share
(Plus accrued dividends from May 1, 1946, to date
of delivery)
live
just
Copies of the Prospectus
concep¬
times,
may
be obtained within
any
State
from the undersigned only by persons to whom the under¬
has differed from
modern
signed
in
may
regularly distribute the Prospectus in such State.
among
exceeded that
battlefields.
•
•
of these securities.
offering is made only by the Prospectus.
civilians has
exceeded that among men in uni¬
fields has
Dinner will be at 7:30 pm,
vited.
following
anticipated
an
on
A. G. Becker &. Co.
V1
the
Our standard of living is higher
than • before the war, while that of
May 22,1946.
:'y;v]bacorporatie4.,:
.
PITTSBURGH, PA.—The Bond
of Pittsburgh announces its
3Vi% Cumulative Preferred Stock, Series A
definitely, but it will provide its
holders with the feeling
and form;
and. the destruction
of
With!, the reality:
of economic property away from the, battle¬
security which will permit them
to spend a larger proportion of
their current incomes on goods
; fmd services^
' ;
Club
The destruction of life and prop¬
ended
'
Pittsburgh Bond Glob
To Hold Spring Outing
tomorrow.
erty
are
sentatives.
of nationalization
solicitation of
many other
still many peo¬
ple in London who are hoping
and praying for the rejection ©£
the loan by the House of Repre¬
there
Heyden Chemical Corporation
important
aspect of all in determining the
world
For this and
States.
reasons,
($100 Par Value)
like to
that
the sake
a
90,000 Shares
This may be the most
mean
a
lief but for
the financial front upon
which I should
power saved up against the day
When goods will be plentiful.
This will be a double-acting
paid for
There is another aspect of our
on
would
sacrifices made for
of the loan would not be the
Foreign Loans
policy
This
reserve.
the
should
that time
combine
This advertisement is neither
tax structure.
our
banks.
sumers' goods, and a dollar added
to
our
backlog
of
.
as we
was
000 would only suffice for cover¬
ing the trade deficit for a year
or two.
Now, as a result of the
improved outlook, the view is held
that it will be possible to retain
a large part of it as a permanent
a
dollar removed from the present
inflationary
far
streamlining and modernization of
Every dollar of savings bonds
sold today permits us
dollar of debt held
Would
are as
until
inflationary
further subside. When
comes, we
the view
as
go
tinuing from the
Six months ago
held that the loan of $3,750,000,-
by
in order to combat the inflation¬
Will continue for
ination.
controls which assist in maintain¬
have arisen, and many
of the old ones remain.
/
new
Demobilization is three-quarters
on output and competitive power
the conditions
of the over; but many of the servicemen
may
not fully materialize
for
Treasury borrows money have not transition
period.
The
major have not yet found their proper
years, the favorable aspects of the
changed
maturity-for-maturity thesis of the excess profits tax— places in civilian life. We have
advent of a Labor Government
since Secretary Vinson took of¬ that the excessiveness of profits jobs available for all of our people,
are already evident.
fice. They are low, measured by can be measured by comparing and satisfactory jobs for most of
As a result of the relative sta¬
most
historical standards — al¬ them with those of a prewar per¬ them; but we have not solved our
though long-term rates are not so iod—was appropriate only for the problem of industrial relations. bility of wages and prices, it is
low, for example, as those pre¬ period of active hostilities. Ap¬ We have held the price line dur¬ now widely hoped that at the ster¬
vailing in Great Britain in the last plied in peacetime, it would have ing and after the war far better ling-dollar rate of 4.03 British
decade of the Nineteenth Century, throttled the growth of new and than ever before in our history; industries'Will be able to hold
but inflationary pressures are still their ,qwn in competition for mar¬
tior are short-term rates as low
expanding industries, and would
#s ?tj3ose prevailing in the United
We have
almost com¬ kets within the Empire, even
have worked major inequities all strong.
States during most of the thirties. along the line. The repeal of the pleted the physical and financial without the assistance of Imperial
An
important aspect of the excess profits tax has already paid task of reconversion; but the pipe Preference or Sterling Area ar¬
Treasury's policy with respect to large dividends in speeding re¬ lines of partially finished goods rangements. For this reason, the
debt management at the present
conversion; and it will pay fur¬ from producer to prolucer and ©frigidity of exchange rates under
during this period.
will only lead to a reduction of
Imperial Preference, not its elim¬
price
purely temporary re¬
lasting improvement
ready to deliver the goods have of Britain's foreign exchange po¬
subsided to a large degree.
It is sition.
now
realized even in Conserva¬
There is, however, one aspect
tive circles that from this point of the loan which continues to be
of view at any rate the advent of the source of much misgiving. As
the Labor Government is a bless¬ part of the,dollars will have to be
ing in disguise, as it enables the ceded to foreign countries hold¬
country to get over the period of ing blocked sterling balances, the
postwar readjustment with a min¬ result will be a diversion of big
the
particularly impor¬
were
The
work
to
still have
we
normalcy, too,
if history is any
guide. But problems add to the
zesjfc of living. I am confident the
American people will face the
problems ahead, proud of their
record, but determined to better
it, again and again.
fair
for
and
tax reductions of the Revenue Act
of
"normalcy."
people of those countries have the
will
but
to go before we reach
way
has its problems,
ma¬
themselves.
long
a
terials must come from the deva¬
New
second
in the past year,
back
set
their feet. All of the labor for
on
a
debt
to
be
ing hand.
Gov¬
the
of
revenues
world
in the
—
must, and will, extend this help¬
Tax Reductions
fur¬
desire
our
is
a
the cash balance.
It has been
taxes
the
ther large reduction in
from
in
Government
thereby removed from the market
for goods and services.
tax" — which took no
account of family responsibilities
and
taxed
the
family man as
to effect
countries
reconstruction
portant is that it should maintain
its tax revenues, for money paid
of
of the United States—
these
and
own
of
April 1,
billion
that
their
all of the bond and note issues due
«or called for
payment on March
due
and peace
goods and services —
is, in general, to reduce its
expenditures. Almost equally im¬
very good.
approach
interests
the
hard
chases
Reduction of Government Debt
ijudget has
in
pur¬
front is to cut down its
that
r
goods from producer to the Bretton Woods system is not
are far from full, and expected
to cause much diffi¬
many manufacturers suffer from culties within the next few years.
scarcities of component parts.
In any case, it is now believed
We have traveled a long way that the coming trade conference
consumer
interests of the future prosperity
trade and of world peace
2805
finished
country in the Old World
tremendously lower. It is ur¬
every
is
in
the
balanced budget
by July 1, 1947 is
it is
holding over from
the war. As I have already in¬
dicated, the most important thing
during
•Vfct
THE COMMERCIAL & FINANCIAL CHRONICLE
2806
THE COMMERCIAL & FINANCIAL CHRONICLE
.
What Can the United States Learn
day
ery
emotional
an
the rim
-
on
of Europe
few in number and did not read-
What We Can Emulate Here
X. ily lend themselves to refinement
markets.
world's
for the
As
;
7
What,
derived their
living directly from the soil. Now
only one-third of the population
does so; the country has been in¬
dustrialized to a high degree. In
proportion to population its for¬
eign trade ranks among the fore¬
This
kind
of
swift
trans-
formation would naturally lead to
labor upheavals, and it did. Sweden's past record
for working
have
the
,
Rather
the
contrary.
capitalists and business
much
were
Swedish
managers
down
tied
more
by
traditions and conventional ways
;
quit their posts in a body in 1879,
demand higher wages,
they
were surrounded by both
military
,
to
Labor Peace Arrived Gradually
5
At the outset it should be ad¬
mitted
that
p found no
"
road
cur;
and
and
have
.
1
to
the
Swedes
magic formula,
learned
what does not.
what
works
and
Labor is organized
only in an economic sense as
C trade unions, but also politically
in
the
Social-Democratic
which has been called
New
many
Party,
"Sweden's
Deal."
(It is supported by
voters who are not mem-
|! bers of labor unions.) Today the
S Social-Democratic Party "has a
f
v;
back
majority in both chambers of the
Riksdag. But private enterprise
| has not been stifled; individual
to
work
town. About
royal
no
labor peace.
not
"
and naval units and either forced
have
Strikes are
legal and occasionally do oc¬
but more and more rarely,
more peaceably.
Step by step
by trial and error, the people
still
families
driven
or
evicted
from
owned houses and
into
jail.
father
tions are held, and a popular majority has the final word on every
issue,-.-- ..v
:
•.
V- There is nothing in this record
-
-
a
small
scale
that
cannot be
duplicated in the United States
a
on
large scale, provided the Amer¬
people so decide. The same
ican
freedom
v;
learn, to organize, to
here
in
Sweden;
public school education is just as
free and in the case of secondary
schools
fg
to
exists
vote
press
more
as
The
so.
enjoys the
same
American
liberties
as
is
declared
of
the
the
were
is
a
Gov-
;v,ernment monoooly.
x
ago.
With the
growth of industry,
which began in the saw mills, the
situation soon changed. While the
right to organize was not formal¬
ly sanctioned by law until 1936,
the unions spread
last two
the
rapidly during
decades of
tory
been
same
were
rec¬
has been turbulent, it has
remarkably free from vio¬
lence and bloodshed.
to
use
All attempts
were aban¬
strikebreakers
doned about 15 years ago.
In 1908
a gang of strikebreakers
imported
from England during a conflict on
Swedish
staff
employers
the
waterfront
of
Malmo,
in
maintained
are
holm.
Stock¬
watches
It
legislation and
developments on the labor
all
In the meantime the work¬
front.
the
did
same.
a
on
They are also
national basis.
older s craft
the
unions
the American CIO.
tries like
Contracts Negotiated
Labor
on
a
over a
generation these two
national
groups have confronted
each other and step by step have
evolved
labor
a
method
contracts
of
negotiating
on
national
a
scale,
covering
wages,
working conditions, etc.,
mutual satisfaction of
hours,
to the
both sides
each union formulates its
While
contracts
with
representa¬
tives of the corresponding indus¬
own
try, no contract is valid until
countersigned by the national or¬
ganizations of both employers and
workers. No single company can,
therefore, be attacked by a labor
union without arousing not only
the whole industry to which it be¬
longs, but also the whole body of
Swedish employers. This fact nat¬
urally causes the labor people to
pause before starting drastic ac¬
tion such as a strike, or a "block¬
ade." as boycotts are called.
Labor contracts
were
for
run
and if either
or
tered
a
year
party does
not wish to renew
This
on
cal
ship, the "Amalthea."
a
caused
were
and
cited
be
first condemned to
by October 1 each
year.
Sometimes, if negotiations
are not over by January 1, the old
later let
As late
army
troops to fire
it, notice must
months in ad¬
tremendous
politi¬
commotion; the guilty union
a
more
with
1931
as
officer
on a
off
an
ordered
life
ex¬
his
strikers' parade
given
three
vance, usually
terms
are
not
on
the
right
the
new
on
a
tem¬
Through these recurring nego¬
tiations, as well as through vari¬
ous
conflicts during the past 30
or 40 years, the leaders of labor as
well as industry have become well
acquainted personally, meeting as
they do periodically at the same
then
have seemed
What
an
would
almost
ev¬
such
to strike
Conflict Gradually Reduced
Sometimes
the
men
same
also be members of the Riks¬
of various civic commit¬
or
as
well
humanitarian
as
learned to
way
or¬
they
know and, usu¬
ally, respect each other.
they travel together on
Often
public
missions and often meet at public
dinners. The edge of the economic
conflict has thus gradually become
and
more
more
blunted.
In the
BANKERS
Members New York Stock
Exchange and
Leading Exchanges
UNDERWRITERS AND DISTRIBUTORS OF
INVESTMENT SECURITIES
BROKERS OF BONDS, STOCKS, COMMODITIES
Home Office: Atlanta
•
Phone LD-159
in
"boycotts"
well
layoffs.
To
apply
prevent
force,
and
are
as
sort of
a
conciliation
'30s, in view of the grow¬
ing demand for better protection
for the rights of third parties, that
is, the public, in labor conflicts,
the leaders of both employers and
workers
eral
began to negotiate a gen¬
treaty. These conver¬
peace
sations
hotel
were
held in
a
suburban
in
near
years
of
called
the
ment."
In
negotiations, is often
"Saltsjobaden Agree¬
a
letter
to
all
the
most
relations
bor
not.
or
to
force
How
large
tracts,
conditions
in
core
the
New
"Times," published in that
newspaper's editorial page
on
that
exact
a
if
effect
of
one-sixth
of
the
1944
(In
the
figure was 1,062,828 persons,
record.) For the United
the
corresponding figure
23,000,000, and in
1945, about
14,300,000
workers actually were
would be about
collective
January,
because of any particular dispute:
American
employed under such written
party who has for¬
feited his right to negotiate in the
a
tracts.
too,
he has
fulfilled his obligations to nego¬
tiate;
before
Consequently,
that
dent
matter;
party
in
now
are
the
new
contract—must not be resorted to
a
of
by the
over
population.
States
By
field
11,000 labor con¬
covering the employment
whole
lockouts,
"Strikes,
blockades,
boycotts, or any
other similar
2.
en¬
neces¬
indicated
there
Sweden
form
By
been
the
is
8
1.
written
are
far
is
Article
fact
of the agreement,
or
verdicts
so
Court
Labor
be
actions—even
Its
has
possible and
negotiations
substituted.
permissible by law
on
sary.
as
direct
based
ciation and the Federation of La¬
and
of
coun¬
forceable by the armed power of
the state; though no such resort
continuous
Chapter II, the
provides:
Scandinavian
Being an offi¬
institution, the Swedish La¬
Court has jurisdiction over all
strikes
of
in.
contracts, whether the parties are
members of the Employers' Asso¬
purely
should
is
serious consideration in
direct
long
contract
a
strikes
three
labor
then
organ
lockouts
such
both
the United States.
between the
two.
What the Basic Agreement
does, in effect, is to stipulate that
as
many-
tries, and during the past 20 years
the
Labor
Courts
have proved
themselves to be both so practica¬
ble and so useful that they merit
a
in
the
con¬
it
is evi¬
United States,
Labor Court would be
ex¬
tremely
helpful.
The
disputes
brought before the Swedish court
cover such a multitude of subjects
3.
Unless, following negotia¬ and situations that they rival in
tions, a written notice of the con¬ variety those brought before the
templated action is served on the regular courts. And yet the Swe¬
respective trade-federation of the j dish people are by nature con¬
other side not later than three servative and
phlegmatic, so, as in
months from the day the negotia- the United
States, the great ma¬
ions shall be deemed as having
jority of minor conflicts of inter¬
been concluded;
pretation are settled locally
4.
Without the action having through shop committees and by
been decided or approved by the direct negotiations with employ¬
ers. The Labor Court is a court of
respective trade-federation."
The
open
mutual pledge to reduce
conflicts to the minimum is
contained in Article 1, of
IV, which reads
"No direct
as
Chapter
follows:
action, whether
on
either
and
tions
down
set
the
this
in
in
side
under
the
Chapter,
organizations bound to this Basic
Agreement to endeavour to pre¬
vent their sub-organizations and
members
from
resort¬
ing to such actions and, if an acion has already been resorted to,
to endeavor to have it lifted."
If such
reached
is
agreement could be
between
the
organized
an
no
Both Employers and Workers May
Collect Damages
During the first 10
existence
the
ers,
by
in
1928
country,
many
strikes would
be
eliminated.
employers and
amount
by
immense
the
keeping the Govern¬
ment out of their dealings, though
some day the Labor Market Board
may become an official body. In¬
stead of beginning with legisla-
could
assess
tracts
were
ion, the Swedish custom is to try
things privately first and then
strike
agreed
in
Sweden
on
out
if
they work, confirm
relations
;ions have already
two
institu-
been set
up
by
(1) the mediation service,
and (2) the Labor Court. A coun;erpart of the former, but not of
the latter, already exists in the
United States. Though the Labor
Court was set up in Stockholm
as
early as 1928, it was riot an
original Swedish idea.
Similar
courts had already been estab¬
aw,
/ reassure
the
for violation of
court
con¬
limited to 200 kroner
so
the
tested, staging
in
however,
to
than
labor
To
damages
about $50 for each worker. But
even
them by plied
aw.
In
or
felt,
to
the
the losses
employers might be
wages,
indeed.
them,
workers
Conservative
they
lost
of
have
he
a
recoveries would
own
limited,
claimed
So far both the
by
Government, the organized work¬
ers opposed it, fearing undue co¬
ercion
or
exorbitant
damages.
be
the
in
while 12 had been submitted:
agreement. When first insti¬
tuted
While their
of
of its
Court
before it by employers and 1,650
by the unions or individual work¬
the
employers
years
Labor
Stockholm decided 1,970 cases, of
which only 308 had been brought
workers of the United States and
organized
decisions
whose
appeal.
If you are
found at fault, heavy penalties
may be imposed. The court is not,
therefore, used lightly.
condi¬
and it shall rest with any and all
individual
from
resort
open
secret, must be resorted to by
party
last
there
the
side
now
labor
unions
pro¬
one-day general
protest.
In practice,
the workers have ap¬
the court more often
employers and neither
questions the court's
a
validity.
-
Stockholm, known as
"Saltsjobaden," and the resulting
"Basic Agreement"
signed Dec.
20, 1938, after more than two
York
a
does, however,
forestall
step forward that has been taken
eration of Labor and its function
is to act
no
and lockouts
forbidden by law. That is a
bor
Committee
while
and
cial
Market
and
terpret
ad¬
bor
has
court
its function being to in¬
existing labor contracts
strikes,
were
and
the
The Labor Court
speci¬
dismissals
to
matters
jurisdiction whatever.
as more
regard
instances
have
INVESTMENT
such
as
It
disputes over wages, hours of
work, or what is called in Sweden
interest conflicts."
In'
minister these agreements a per¬
manent body, first called the La¬
any
other
volunteers.
rules
and
re¬
troactive.
a
fic
or
terms becoming
ship in the north
of Sweden as it was being loaded
with pulp by company clerks and
guarding
of
use
do?
court
"economic
the part of the workers, or that
declare lockouts by the em¬
agreed on,
this
or
and
While this contract did
renounce
the
the work goes
basis and
porary
on,
observed
ganizations, and in this
workers."
employers
avoided
National Scale
For
dag
1
between
does
does not prohibit or settle strikes
private body, was organized. Thus
far it represents
only the Em¬
ployers' Association and the Fed¬
general Federation of
Labor, but the great majority or
over 1,000,000 workers in a nation
of only 6,500,000 are dues-paying
members and organized by indus¬
may
•
in
ments
bers of the
tees
Private Wires
What
Sweden, called
"treaty" a "new high
voluntarily negotiated agree¬
the Labor Market Board, a
persist in Sweden and some
labor organizations are not mem¬
table.
Other
Functions of the Labor Court
Industrial; Relations in
on
'
■
chair¬
still
blown up by a bomb while quar¬
while
speak the
19th
de facto and
concerted
attempts to break them up aban¬
doned. While Swedish labor his¬
also
.AmericaiD3j#pple, it is true, are
mot a
more^lxed ancestry, but as
the
ognized
sentences.
v
been
a
king,
years
It is true, the
American territory is larger, but
the means df communication are
bett|r7*: particularly public
|v|Iiighways^Wd the air lines. The
.
the
labor power, was to organize on a
national scale themselves. If or¬
ruler.
present
things happened within the mem¬
ory of persons still living—only 67
members
it
the
to
no right to
If not employed they
classed as vagrants. These
death
Sweden
limit
organize.
Swedish, the radio is still
freer, being privately managed,
in
put
were
a
The workers then had
whereas
.
.
of
company-
some
"There
forbearance,"
the
out
thousand had their
a
'liberty still prevails, regular elec- century. By 1906 they
;1 on
What
labor govern- of thinking and living than the
and yet indus¬ American. When the first group organized
Some of
flourish. How has this been of saw-mill hands in the north
;
had
this private
did at the beginning of the pres¬
ent century to offset the growing
ers
brought about?
mission
Swedes
peace prevails, a
ment is in power,
tries
who
of President Roosevelt's Com¬
man
,
days lost by strikes and lockouts,
per capita, was a high one. Now
:
then,
learned that might be used here?
Over a generation ago the Swed¬
of the people
most.
...
lished in both Denmark and Nor¬
way.
ganized labor now moves against to
single company or a single in¬ ployers,
it
did
provide
some
dustry, it faces the combined guarantee
against
interruptions
forces of the Employers' Associa¬ of essential public services during
ish^ employers decided that it was
futile to try to prevent the work¬ tion, first organized over 40 years labor conflicts, as well as a mu¬
ago.
To its funds members con¬ tual promise to avoid as long as
ers
from organizing.
Has that
lesson yet been wholly learned in tribute in proportion to the num¬ possible the use of coercive meas¬
the United States? Not that the ber of their employees and also ures in labor disputes, that is,
boycotts, lockouts, and
Swedish employers were less ap¬ file formal undertakings to con¬ strikes,
tribute
more
in
case" of
need. blockades,
particularly "second¬
prehensive about labor's growing
Headquarters and a permanent ary" ones. Definite restrictions on
strength
than
the
American.
late
V as the middle of the 19th century
80%
the
Swope,
Great Britain and
and
1
screamed
Gerard
1939,
Company,
over
The Organization of Employers
language, .that is not an insur¬
p addicted to traditional ways of mountable handicap. Racial mix¬
:
ture helps prevent
living. Its natural resources were
inbreeding.
was
"Murder!"
all
labor papers.
(Continued from first page)
it
upheaval
21.
President of the General Electric
parts of the* United States, set off
Sween.
From Sweden's Past Labor Pains?
May
certain
in
occurrence
Thursday, May 23, 1946
The Labor Court is
a
court
of
record, that is, its decisions and
proceedings are fully recorded
and a body of precedents built up
for the guidance of later deci¬
sions. The judges number seven,
all appointed, as is the rule in
Sweden in regard to all courts, by
the Government. Two, however,
^Volume 163 .Number
4492
THE COMMERCIAL & FINANCIAL CHRONICLE
are
nominated by organized la¬
bor, two by the employers and of
the
remaining three, one has to
experience in labor me¬
nave had
diation and
and
two,, the chief judge
alternate,
must
be
his
learned
the law" and have had
in
b
experience.
constitute
Five judges
quorum and a ma-
a
jonty decides.decisions about twoSo far,
tnirds of all
have been
unanimous.
nSnr* ?nd,' therefore, better
822
to deal with labor Prob¬
and8 (2) that its
ti)e. ordinary courts,
and
decisions
.
are
fiflTar^d finab In Sweden,
the United
as
States, most judges
in
poorly qualified to act
such technical matters
labor
as
relations; the subject is relatively
new that exact
principles have
so
yet been established. In Swe¬
den
well
as
ales, it
court
in
as
the
United
also true the ordinary
are
slow.
By
is
procedures
dilatory tactics
or
labor
involved.
are
pleadings
submitted
have
to
be
writing about a
By telephone
informed
are
usually
held
are
in
advance.
appear;
when
public
Friday.
every
to
hearings
The ver-
2 Proceedings are then conductL ,e chief ;'udge himself,
who, thanks to the advance plead-
*!?gs> ls Partly familiar with the
Situation.
No
needs
one
be
rep¬
resented by counsel, though that
is not forbidden.
Generally even
common workingmen state their
own
grievances
and
most
pro¬
ceedings
are over in less
Some
Iiour.
cases
than
an
decided
are
in
mavet«irihf week night; days; a
San?e
others
take
ten
a
lew
of
cases
may
or
the
more
complicated
drag out for a month
or
two, but that is rare.
Compared to other Swedish tribunals,
the
Labor
Court
acts
quickly.
Since
a
the
majority of the decisions
been
nave
union
tion
to
that
decided
men
have
know
have voted
unanimously,
have the satisfac¬
that in such cases
been
their
them,
decided
own
against
representatives
adversely too.
recalls
organized
a
case
in
bricklayers,
which
they
rate
in
the
future
found guilty and fined
maximum amount of $50
each,
were
while
their
solved of
.
employer
was
ab-
liability for having dis¬
Management
ganization
..
(
100% organized, the demand for
shop
a
longer has any
point, even though employers retam the theoretical right to hire
and fire as they see fit. They also
have the stipulated right to run
their plants to suit themselves and
no
Swedish labor so far has raised
only few objections to the use of
labor-saving
machinery.
Since
most plants
relations
are small and personal
between workers and
employers still
quite
close,
./problem of technological
•ployment
;
No
been
least
at
or¬
"sit-down"
resorted
in
not
in
to
recent
toes
and "feather-bedding," or
hiring of workers not needed,
the
unknown.. The
is.
limited
to
"check-off"
instances
in
is
which
at
the request of the workers them¬
selves
the
union
dues
employers
well
as
as
withhold
sick benefit
payments, taxes, and other
curring charges. Such services
re¬
are
not
prescribed in the standard la¬
bor
^contract. Occasionally "wild¬
they are called in Swe¬
mischief" strikes, do occur
Sweden, too, but in the case of
in
or as
workers
proposed
plan
for
centralized
delivery of securities for transfer.
The
decision
not
to
proceed
the
with
plan at present was
following a meeting of
representatives of various broker¬
age firms at the Curb Exchange
on
May 14, due to insufficient
current interest in the proposal,
according to Fred C. Moffatt,
president of the Clearing Corpor¬
reached
ation.
The
plan, developed jointly by
the Clearing Corporation and the
Association
Of
Stock
Exchange
Firms with the cooperation of the
New
York
Stock
Transfer
Asso¬
But
well
if
relations
labor
are
so
may
well
be asked,
how could the
long-drawn-out and costly strike
by the metal workers have taken
last
The answer is
Among the younger
machinists, particularly those in
the large cities, such as Stock¬
holm,
the
Communists
gained
year?
politics."
new adherents during the
stages of the war when Rus¬
was making gains. First, they
many
later
sia
several
won
union
then demanded
a
elections
and
strike for higher
wages. It was badly timed as the
principal re-armament work was
over
and exports had not yet be¬
gun.
Both members of the
Gov¬
ernment and leaders of the Fed¬
eration of Labor urged the meta
workers to come to terms and re¬
their
new
contract, but in vain. The
strike lasted five months and cost
the workers as well
the employ¬
as
And the
just
their" contracts
others
lack of these
laws,
the
are
my
things—
administered—
justly
of the national chaos
crux
which has descended upon us.
Those
Offered by Mericka Do.
5%
their
vent
where
it
belongs.
That
blame
belongs
first
with
the
Democratic majority which passed
the
An
who
one-sided
issue
of
100,000
shares
of
cumulative preferred stock of
The
Bingham
Stamping
Co.,
Toledo, is being offered at par
($10) by a group of underwriters
headed by Wm. J. Mericka & Co.,
Cleveland
and
Goshia
&
Co.,
Toledo.
The
Bingham
Stamping
Co.
produces stamping products used
principally in the automotive, re¬
frigeration, and washing machine
industries.
nancing
are
Proceeds
of
the
fi¬
to be usedTn connec¬
tion with its acquisition of a ma¬
jority stock interest in The Herbrand
Corporation of Fremont,
Ohio, manufacturer of commercial
drop forgings and drop forged
hand tools.
The shares are convertible into
common
stock
at
any
share for share basis.
time on a
Upon com¬
which
laws,
and
Democratic
second
executive
deliberatively through the
has administered
years
load¬
even
ed laws with
a plain intent to gain
political advantage.
But most
ident,
Blames President
The present state of
importantly, Mr. Presexecutive could
of his
the
chief
have used the whole power
office
to
clearly
break
lists of
a
has
never
been
advance orders and there
once
ment of the United States still is
stronger than any segment there¬
of.
This
was
chance to prove
a
again, as did Lincoln and Cleve¬
land, McKinley and Wilson, that
more power¬
ful than any component part bf it.
The President
last week
could
have become
the nation
national. hero, but
a
he chose instead to become a sym¬
bol of a "too little and too late"
Government.
Let
today not legislate in a
Let us not aim
us
spirit of
rancor.
bill
any
consider at
we
parent this morning.
sider
well
National
Let
people
whatever
do that is
we
right, and
sorely troubled nation,
we may find a workable solution
that will help us quickly to re*
present indus-
cuperate from
trila illness and become as strong
of a complete
action, a breakdown of
responsible leadership, on the part
of
of
the
executive
Government.
branch
There
this
of
have
and
our
as
prosperous as we ought
be in this peacetime period.
been
things that President Tru¬
done, but he has
chosen to follow a do-nothing pol¬
icy while precious days slipped
and the industrial paralysis
away
has become
worse
and
his many surveys that the coal
strike and its repercussions were
"national
disaster".
Every in¬
formed American knew that eyen
before the President released his
Yet,
survey.
entire
calling
week
John
he
let
pass
L.
almost
announced
transfer
from
Edward
J.
Shean to C» C.
following the regular meeting of
on
I.
the
May 15.
Dakin
of J.
Company,
San
elected
ing. It only puts off for two weeks
associate
on
to
whole.
a
acute,
jobs being usually found for
without
membership
1946, at the meeting.
than the in¬
any
of these
offering is made only by the Prospectus.
of
there
The piece¬
wages.
and often bitter
into
mutual
long
as
paying
4%% CUMULATIVE CONVERTIBLE PREFERRED STOC%
wages
Par Value)
understanding.
Price $51 per
a
As
balance of power there is
peace on the labor front.
any
reason
not
be
why the
achieved
in
Share
plus accrued dividend
employers
and the organized workers main¬
tain
-,v
■v-
long
experience, labor
the organized
m
THE TRAILMOBILE COMPANY]
relations in Sweden have ripened
of the Prospectus
may
be obtained within
Underwriters named below and
may
Is there
same
the
A copy
any
State from such of the
from such of the other Underwriters
as
regularly distribute the Prospectus within such State*
could
l
United
V .*> n *•'1'
m
s
•
States?
W. E. HUTTON & CO.
Paul Speer Partner
LOS
PAUL H. DAVIS & CO.
BACON, WHIPPLE & CO.
REINHOLDT & GARDNER
NEWHARD, COOK & CO.
ANGELES, CALIR.—Wil¬
liam W. Speer has been admitted
in the
earn more
that
production
high
system
piece-work,
efficient
solicitation of offers to buy
partnership in Paul D.
Speer & Co., 610 South Broadway.
From 1932 to 1938 he
cago.
was
engaged
securities business in Chi¬
May 23,1946
&
was
the exchange effective June
60,000 Shares
additional
understands
high
to limited
workers to
much
It
cannot be
the
uoern-
nor a
Barth
Francisco,
NEW ISSUE
power, but it has also learned to
feel responsible for the nation as
those -displaced by new machines.
Another reason is perhaps the fact
that wherever possible wage rates
in
Sweden are
calculated
on
enabling
offer for sale
Streicher,
the board of governors of the ex¬
John
The present "truce" solves noth¬
The
two
Cawthorne, Cawthorne & Troeber,
change
mine operators into conference.
an
of
at J. Streicher & Company, and
an
and
the
•
H. Kastor to Judson L.
even
without
Lewis
The New York Curb Exchange
regular memberships from Joseph
worse.
More than a week ago, Presi¬
dent Truman learned from one of
a
Curb Member Change*
could have
man
organizing politically ■ as
by unions, Swedish labor
gained
to
many
well as
has
us con¬
actions, that our
will give us support for
lack
securities.
Responsibility
one
our
Swedish Labor Has Assumed
By
any
group for the inevitable results
of such legislation are clearly ap¬
is the direct result
This advertisement is neither
shortage of help.
is
to
prove
and for all that the Govern¬
peace now prevails, even
though most, industries have long
is
that
strike
a
anti-social and
that for a
shares reserved for issuance upon
conversion of preferred stock.
the
he took this action.
the Federal Union is
crisis
large sums. In the end, only the pletion of the financing capitali¬
zation will consist of 100,000 pre¬
lowest-paid
employees obtained
ferred shares authorized and out¬
slight increases. It was a bitter
and
500,000
common
lesson for the young radicals who standing
shares
authorized
with
188,374
had never been through a strike
shares outstanding, with 100,000
before.
Last fall all important
renewed
dent could at least have said that
state of Indi¬
ana are not anti-union.
They recr
ognize the right of a man to leave
his work, to strike, to bargain col¬
lectively, to work for the general
welfare of his group.
The people
of my state are not against prog¬
ress.
But they are for just laws,
justly administered.
people of
tion.
ers
unions
public interest.
The
with
organized in Sweden, it
place
in the
spleen
upon John L. Lewis, or those who
curse the operators of the mines,
both are
shooting wide of the
mark if they earnestly are trying
to place the blame for the present
by written con¬
tracts, as most of them are, a
quick appeal to the Labor Court is
page 2786)
pie not forget that all during the .the day. of judgment for. the
past 13 years the Democratic ma¬ American people.
jority has winked at violations of
Through the Smith - Connally
the law, catered to the more radi¬
Act, the President has had the
cal union leaders and has failed
power to seize the mines.
While
miserably to carry out its clear it is doubtful that the miners
duty to legislate and administrate would go back to work, the Presi¬
ciation, was announced in March.
It proposed centralized delivery
of securities to and from 51 prin¬
cipal transfer agents within Man¬
hattan
through the facilities of
Clearing
Corporation
and
the
United States Trucking Corpora¬
bound
it may be said that thanks to
Since labor in Sweden is all but
.
itself.
have
Sweden,
by the labor
Exchange
Securities Clearing Corporation is
notifying member firms of its de¬
cision to shelve for the time being
helps bring this about. In general,
Has
Retained
Prerogatives
closed
not
only
also jurisdictional
are settled
work
charged them.
.
organiza¬
obviates
Jurisdictional disputes, to
strikes
on
piece-work
.
pro¬
*
(Continued from
The New York Curb
work¬
a
Stockholm apartment
had been cited by their
employer for having worked at a
slower pace than he had the
right
to expect, and had done it for the
purpose
of obtaining
a
higher
the
of
sure, have occurred and con¬
tinue to arise in Sweden too, but
nous©,
They
degree
likewise
The Wagner Act and Strikes
Centralized Delivery
book, "The Swedish Col¬
Bargaining System," pub¬ absolute
Norgren
ing
high
postponed decisions
without stopping work. An all but
lished by the Harvard University
Press in 1941 (p. 250) Paul H.
11
tion
and
In his
lective
The
Curb Shelves Plan for
sufficient.
Thp Swedish Labor Court sits
continuously in Stockholm. Pre¬
liminary
litigants
duction.
den
and butter
in
right to deal
He
directly with the employer.
also likes efficiency and high
cat,
one
disputes, even
inore than in
ordinary litigation,
justice 'delayed is justice denied,
particularly as the people's daily
week
boss and to have the
the
In
years.
side
ex-"
in
supervising*
time workers. The average Swed¬
ish employee likes to be his own
delay final decisions for
other can
involved
be
*are O) ^bat ^ is a court of
not
obviating much of the
picketing, but
The chief virtues of the Labor
in
time
pense
strikes.
Court Is Composed of
Experts
would be
efficient ones, while at the same
2807,
1,
THE COMMERCIAL & FINANCIAL CHRONICLE
2808
Thursday, May 23, 1943
to persuade bondholders to
keep the bonds they Jiave.-.This is
fort
Credit and Fiscal Policy in Inflation
banks with
Continued from first page)
through the roof and then landed
in
the
cellar.
We
hearing
are
a
lot about this aspect of the prob¬
lem in the discussions over OPA.
But basically, inflation is, and
always has been, very largely a
problem
of too
much money.
Whatever we do in other direc¬
adequate reserves to
absorb government securities not
taken
other investors.
This
cooperative under¬
taking, agreed to by the Treasury,
by the Reserve Banks, and by the
banking and investment commun¬
ity generally. It worked well dur¬
by
program was a
ing the greater part of the war
deal with the period, but early in 1945 began to
problem in this area if anti-infla¬ go hay-wire.
With
the
Treasury bill
rate
tionary policies are to be effec¬
by the
Reserve
pegged down
tive.
Banks to %%, and with certifi¬
"'"J*1cates generally yielding less than
Task of Financial Reconversion
tions;?
,
We
-
must
we
of
know,
that all
infla¬
course,
investors
naturally were
en¬
reach out for the
tion,: and this—the most costly of longer-term higher-coupon issues
all wars—could hardly be an ex¬ as confidence grew in the Gov¬
ernment's ability to keep interest
ception. During the war the goal
rates generally from
rising.
In
of fiscal policy was to raise the
the process of this shifting, com¬
gigantic sums needed, and to do it
mercial banks sold, or borrowed
at low
and steady inteiest rates,
instead of at rising interest rates against, their low-yielding short
at
the
Reserve
as in
the first World War.
The governments
of magnitude result in
wars
problem was one of expansion to
enable the banking system to car¬
must reconvert our fi¬
to peace.
We
must check the growth of money
and credit that has been so potent
a
tional
credit,
Reserve
Federal
made
Now, however, we face a dif¬
situation.
With the war
over,
Banks. This called into use addi¬
which
ferent
we
nancial
to
program
factor in inflation.
possible further multiple
expansion of credit through gov¬
ernment bond purchases by the
banks.
When
the Treasury at¬
tempted to control this situation
by limiting the supply of new is¬
sues eligible for commercial bank
holding, the effect was merely to
intensify the scramble for issues
outstanding
and
drive
prices higher and yields lower.
Thus, early this year the 8-10
year Treasury 2s, offered origin¬
est possible moment. We must do
ally at the end of 1944 at par,
this, first, because the federal were down to a 1.22% basis.
deficit and dependence of deficit
While
yields
of
longer-term
financing upon the banking sys¬
governments
not
eligible
for
tem has itself been the master
commercial bank purchase were
cause
of the expansion of bank
held relatively firm during 1945
deposits and purchasing power;
by the continued availability of
andy ' second, because elimination new issues in the bond drives,
of the deficit would give the mon¬
these too joined
the downward
etary authorities a freer hand for
process following the close of the
applying credit control.
Victory
Loan.
The
approach
*f Happily, the latest indications towards a balanced budget ap¬
most already
and
first
the
Obviously,
important step is restoration of a
balanced budget and elimination
of deficit financing at the earli¬
this
on
encouraging. peared to forecast
are
score
rapid falling off of
expenditures and the contin¬
I Due
the
to
war
ued
of
high-level
re¬
revenue
ceipts, the gap between federal
income and outgo has been rapid¬
ly
March 1946 quarter we had a sur¬
plus of revenue over expenditures
for
first
the
16
in
time
years.
| While the current quarter is ex¬
pected to show a deficit, the Ad¬
ministration now expresses hope
for
fcal
a
balanced budget for
the fis-
1947.
year
Vi
The next crueial battle is in
tion.
the field of
too
we
production, and here
indulge in
before
win
must
we
can
final celebrations.
any
But in support of these major en¬
gagements
Credit
Policy
Management
The second step in financial reConversion is a readjustment of
the
Government's
policies
with
Respect to credit and management
of the public debt.
These policies
have been proving inflationary on
two
•
counts—(1)
in
promoting
phonctization" of the debt, i.
lodgment
ties
in
jsystem
sion
of
the
bank
e.,
securi¬
government
commercial
with
of
banking
consequent expan¬
deposits usable as
Cash, and (2) though intended to
^Stabilize interest rates, these poli¬
cies have in fact operated to drive
them down,- with corresponding
inflationary
values
effects
in
of
capital
bonds,
stocks,
estate, and commodities,
real
if You will recall how at the out¬
set of the
cided
to*
war
the Treasury de¬
on
anv interest
finance
curve
ranging from
%%
for
Treasury bills to 2V2% for long-
term bonds/ The
•;
undertook
Structure
of interest rates, and creating se¬
rious problems for insurance com¬
panies, savings banks, and other
pendent
It
was
tion
to
and
Reserve
individuals
generally; for if people can¬
not
get decent returns on sound
investments
they
will
take
chances
the
on
riskier
ones.
inflationary
were
r
The
In fact,
consequences
far-reaching.
°
Dilemma
of
Interest
Rate
Policy
Both the Treasury and the Fed¬
Banks
banks
ready heavy cost of carrying the
national
market
debt
in
and
disturb
the
outstanding
issues.
Also, there has been the political
argument
that
higher
interest
rates
would
increase unduly the
time available here this
afternoon
prevents
analysis
of
by
and
rate
to
appeal
a
(2)
to
May not insistence
on
this
rate
it would involve many
technical problems. Its
reduce speculation in government
securities.
Here,
as
the ABA
tions
pointed out to its membership, the
commercial banks can help by re¬
viz., government securities
this
such investors.
proposal, it is apparent that
are
ficult
so
to
Third, steps should be taken to
complex
ramifica¬
far-reaching it is dif¬
just where they
would lead. One thing is clearit would vastly increase the pow¬
see
Government, and espe¬
the
Treasury,
over
the
bankng system. It is more regi¬
the banking
situation, and has for
example made it more difficult
for banks to increase their capital
funds by the sale of stock.
Then
that
we
have
the
suggestion
certain
and
A
"Program Emerging
least,
objection to all
such schemes and
proposals is
that they fail to take account of
back—the
bond
what
ers
can
the
is
It
be done within the pow¬
authorities already have.
a
question of needing
.
second step, on the mone¬
tary side, is the Treasury policy
using excess cash built up by
the Victory Loan to retire debt.
This has the effect of reducing
of
bank holdings
of government se¬
curities, and, while also reducing
some extent, is
a
sound step in that it has the
anti-inflationary effect of reduc¬
ing bank deposits which are po¬
tential buying power.
bank earnings to
The third step is the action last
month by the Reserve Banks in
is
that
not
a
the
one-way
and
strong-arm
especially if we begin clinations towards additional in¬
corrective action promptly. Ex¬ vestments.
Such factors seem likely to ex¬
perience has shown
again and
again that a little control over the ercise a restraining influence for
credit mechanism goes a long way a time at least.
What happens
,
powers,
The
revelation
market
measures,
not
the battle.
at
to
volume of
not sound like
exciting program.
But,
for my part, I am wary of excit¬
ing programs. I think they could
do us a lot of harm. Moreover, I
when applied in time, whereas
but of willingness it takes some pretty drastic slam¬
and courage to use those already ming on of the credit brakes to
at hand. It is encouraging, there¬ be effective once things get going
fore, to find the authorities tend¬ too fast.
ing
to
use
those
instruments
With a program of the kind just
which they have.
outlined, it is possible that credit
The first step in the program control
may prove compatible with
now
apparently emerging is the low interest rates and holding
balancing of the budget and end¬ down cost of debt service. How¬
ing of deficit financing. This in it¬ ever, a level and pattern of inter¬
self is perhaps half, or more, of est rates that can be
held, with¬
new
being
deterrents
Second, there is the substantial
speculatively-held 21/4s
2V2S, known to be overhang¬
ing the market.
Third, a good many banks are
being squeezed by war loan de¬
posit withdrawals, which necessi¬
tate
their
making
reserve, ad¬
justments and influence their in¬
Sound Interest
Policy
need
time
see
street.
very
we
can
shifting;
First, there is the psychological
effect of the sharp market set¬
Now all this may
think
the
for
one
such
On Determining
don't
A fundamental
shifting.
True,
speculation in these issues.
a
long rates? The recent im¬
in intermediate and
such
and the ABA stressed the
obligation of each bank to review
tis loans against governments to
see
that it is not encouraging
easily imagine the furor that any
such step would provoke from the
American people.
before,
long-term yields would seem to
give some renewed inducement to
June 8,
Rate
as
provement
recall, the banks were
asked to certify to the Treasury in
connection with every subscrip¬
tion that loans against these se¬
curities were of a type that could
be liquidated within six months.
Those six months will elapse by
proportion
of
checking account deposits be froz¬
en, the owners receiving in ex¬
change interest-bearing negotia¬
ble Treasury certificates. One can
a
same
renewed pressure on intermediate
the
doubtless
mentation, more encroachment by
the State upon the freedom of the
economic system. Already the dis¬
cussion of radical new legislation
of the sort has been disturbing to
the
again
flowing into Federal Reserve and
commercial bank portfolios, and
those made in connection
Victory Loan. As you
larly
with
results
with
viewing
carefully
their
loans
against governments, and particu¬
the
depend very much,
how much of
an increase we have in outlets for
funds in business and commercial
channels.
This is really the $64
thereafter will
I should think, upon
No
question.
the
about
one
answer.
there is more
can be sure
But certainly]
optimism about de¬
and some fac¬
be working in that
higher commodity
mands for money,
tors appear to
direction. The
prices mean it takes more money
unduly expanding credit and to finance business. Also, there
stimulating inflation, is not some¬ has been some decline in the rate
thing that can be picked arbitrar¬ of savings, as people are spending
ily out of the air. It has to fit the a larger proportion of their in¬
out
conditions.
We
comes.
should
bear
in
mind
that
the present interest rate pattern,
with its rising curve of yields
from short to
not
a
It has
we
long maturities, is
normal pattern historically.
been with us so long that
have perhaps begun to
of it
as
think
normal, but actually it is
There have been times in the
not.
past when money was tight and
we had short rates actually rising
above the
have
long rates.
been
of
times
And there
easy
money
when the short rates were below
the
long
has
been
fluctuate
rates.
for
But the
the
short
average
rates to
fairly closely around the
long rates. Never before has there
been
so
great and prolonged a di¬
A
(
Flexible
1
Needed
Policy
What, then, do these various
possibilities suggest as to inter¬
est rate policy? They suggest, it
seems
to me, that neither the
level
nor
the structure of interest
rates
are
things that we ought to
have
rigid ideas about. The test
question is, what level and pat¬
rates will be most effec¬
tern of
accomplishing .the objec¬
now
is
to
reduce
commercial bank holdings of gov¬
tive
in
tive—which
ernment
sion
of
debt and
credit.
check
The
such level and pattern
expan¬
finding of
is, to some
extent, a cut and try proposition.
We have got to "play
it by ear."
experience
shows
the
have become familiar in recent present pattern and level of rates
to be compatible with controlling
years. V-':.
•
:
This abnormal pattern of rates credit expansion and getting more
was
originally the outgrowth of government debt out of the banks
vergence
as
If
that with which we
.
depression, with its accom¬ and into the hands of other in¬
panying excessive desire on the vestors, well and good. If, 011 the
other hand, experience shows the
currency, and in taking some of part of investors for liquidity. The
the speculative fever out of the Treasury accepted it as the rate contrary, then surely we ought to
government bond market, with pattern for the war financing. We give recognition to this in the rate
consequent lessening of pressure have seen that it worked well for policy. In other words, the point
I am trying to make is that we
upon interest rates. And there are a time, but ran into trouble when
ary
other
as
steps that might be taken,
suggested in a recent statement
by
the
private demand deposits and
tion.
for
com¬
-savings
pattern—in time, and after:
present unsettlement in the mar¬
ket
may
have quieted downagain encourage investors reach¬
ing out along the yield curve,
the' American
desirable
help,
can
maturity
While
interest
are
the
will need to offer securities of
banks.
earnings
ofv
the
commercial
banks, and the argument that low
rates
and
continue the good work
ognized these dangers, and Fed¬ ending the xk% preferential dis¬
eral Reserve officials, in particu¬ count rate against short govern¬
lar, have been outspoken in urg¬ ments and making the regular 1%
ing measures for
curbing the the effective rate. While the pref¬
continued
expansion
of
bank erential rate had a useful purpose
credit through
government se¬ during the war in encouraging
curity purchases and for check¬ banks to carry their share of gov¬
ing the decline in interest rates. ernment financing, its continu¬
But they have found themselves ance now would be illogical, un¬
facing a dilemma.
Whereas al¬ wise, and an invitation to infla¬
tion when the need is to reduce
ways in the past the traditional
method of controlling expansion credit expansion.
has been to allow a tightening of
Already these measures appear
the money market, the authori¬ to be having a salutary influence
ties are not wanting to accept an in checking the growth of ordin¬
upward
movement
of
interest
rates that would increase the al¬
banks
.
de¬
investment income.
to specula¬
incitement
which both the.
in
the
Executive
Council,.»• of
Bankers
Associa¬
need not accept any particular,
theory of high rates or low rates,
maturities. :
Now, within the past month, but merely seek rates that; by
the Federal Reserve Board has practical test are found to be in
stated, in connection with aboli¬ harmony with our main objective.
The idea that any increase in
tion of the preferential 'discount
rates, that it "does not favor a interest rates would be a calamity,
investors
began to
get over their
fears of the longer
stimulating business.
First, we ought to press Vigor¬
This
is
a
this rate
difficult dilemma, ously ahead in the sale of savings
provide the and one that has led to a num¬ bonds to the public, and in the eU: higher, level of interest rates on.
support
to
and
upon
an
eral Reserve authorities have rec¬
Debt
and
having widespread
was
It was
contributing directly to banking
inflation, exerting a profound in¬
fluence upon the entire structure
need also to bring
we
credit and public debt
policies
in line with the overall strategic
plan.
our
All this
effects upon the economy.
institutions
If these expectations are real¬
ized, it will be a great victory
indeed in the fight against infla¬
j,
called debt with certificates.
January-
the
For
narrowing.
an ending of
offering of Treasury securities
for new money, and the Treasury
appeared to be adopting a policy
of
refunding
all
maturing
or
the
area
commitment
by
the > Reserve
striving to Banks to maintain the wartime
they did structure of interest rates in the
the situation. One is that banks
period. Apparently the
be required to keep, in addition to during the war in selling savings postwar
bonds to the people.
yield curve is to remain pegged
'their legal reserves at the Fed¬
down at the -lower end by the
Second, there should be offer¬
eral, a specified
proportion of
their deposits invested in Treas¬ ings from time to time of long- %% rate on bills and the 7/8%,
term bonds to nonbanking invest¬ rate on certiifcates.
'
ury certificates at low rates to
If this is a correct interpretaors.
In this way the Treasury
fixed by the Treasury. The theory
it
raises
two
important
is that this would curb the sale by would be enabled to tap accumu¬ tion
the banks of short-term securities lating savings in institutional and questions:
(1)
How much real indepento the Reserve Banks and purchase individual hands,
and so carry
of longer-term higher-yielding is¬ forward the refunding
of debt dence has the Federal Reserve
held by the commercial * banks for controlling credit so long as it
sues in the market; also it would
into the hands of other investors. is obligated to buy bills and cer¬
assure a- low interest rate to the
Government on that portion of To do this, however, the Treasury, tificates at pegged rates in sup*
the debt held by the commercial in addition to its savings issues, port of this rate pattern?
suggestions—hap¬
pily unofficial — for dealing with
radical
of
ber
er of
spread
out
as
reserves
of the
Treas¬ through the banking system and cially
its share of the load
$50 billion annual wartime
ury deficits.
ry
'
couraged
an
mercial
U. S. securities than the Govern*
mentis noyCpayingJ/ ^.Tjhis would
seeni
to
involve
a
continuing
■
nr
that
orprHt
nnlirv
fihmilrl
hft
■v:
'
,
if
i'-.yjAi VV ■!'
liff'
<•
ij
r
v
r
T.A
fe
>?.i lift;
;
THE COMMERCIAL & FINANCIAL CHRONICLE
jyolume 163Number 4492
determihed
by what happens to
earnings, is getting things
bank
all out of focus.
est
So far
the national
on
inter¬
as
is
debt
rently reported bank earnings in¬ people and supplies to outposts in
clude bond profits and recoveries the Aleutian Islands when the
which- cannot be counted on to Japanese were on our northern
is much apparently that is being
continue, and also reflect losses
which, though practically non¬
existent now, are certain to re¬
appear later on.
In conclusion, a sound budget
and credit policy has an essential
part to play in the battle against
overlooked.
inflation.
needing
the
con¬
cerned, the • variations caused by
modest changes in rates would
make little difference in the debt
burden.
As for the agitation over
commercial bank earnings, there
Many banks are still
to rebuild capital from
the terrific losses of the depres¬
sion. They, like all businesses, are
facing
rising
and
expenses,
the
constant refunding of higher yield
investments with securities carry¬
-5 f.
ing lower coupon is steadily cut¬
ting the average yields of their
portfolios.
Were the banks, for
example, to have to repurchase
•
-II
their
government
holdings
at
present prices, they would realize
an
yield to nearest
over 1%, and a
average gross
call date of little
net after taxes under 1%.
over, it should be noted
More¬
that cur¬
elimination
While
of
wartime Treasury
deficits is
a prime consideration, let us not
underestimate the importance of
sound credit policies.
Our alter¬
nating cycles of inflation and de¬
flation in the past have often
come
despite balanced budgets,
and
have
extent
credit.
to
been
the
a
result of
In
the
large
very
misuse of
a
long
run,
main¬
tenance of sound credit conditions
is far
more
important to the good
of the country than
low rates for
borrowing
government
or
low
rates for business.
had
Dark
Ages
had
high¬ -.barriers;
so-called limitless
Com¬
arrived.
same
known
into
waters.
sleep of many, many winters
When communication withered.
a
the
the
sort of attraction to us that
seafarers
merce, science, art, letters, states¬
manship—all these things went
did
in
the
and
lands
record
A
days of un¬
uncharted
for
a
half million
are
impres¬
sive figures. But here is the fact
hat makes me know the solid
!oundation
which
on
we
are
building our lines. "Not a major
mishap or injury was incurred in
doing the entire job."
Now this is a record which is
bound to carry conviction to you
gentlemen who
are
used to
ing in calculations. It is
deal¬
figure
which I could not have given you
back in those days when we first
flew across .the country without
radio, weather reports or ade¬
quate lighting. But it is a fact to¬
day and it is
our
constant
a
a
confirmation that
striving
for
safety
has not been effort thrown away.
speed
—
there is not
responsible air¬
line in this country which does
not spend the larger portion of its
time and money in constant effort
say
and men high in
atmosphere carry
the
been
once
than two and
pounds of mail. Those
ment that can be had. Needless to
(Continued from page 2782)
ways of the world. The
more
Safety is achieved in only two
ways: by using throughout an op¬
eration only the most
skilled, best
trained men; and by employing in
the operation the soundest equip¬
Aviation's Progress
Which
steps. We carried 33,500 military
passengers,
almost
6
million
pounds
of military cargo
and
a
to better what it
men
already has, both
and material.
Time
was
when ice
was
an
un¬
2809
limiting - condition •, which will
change commercially in a short
already possible to land
Fall.
planes without any visual refer¬
permits
a
heavily
or
service
time. It is
In
on
to
the ground.
afoot
something
else
was
Wilbur
and
Orville
1903.
Wright were working on a glid¬
ing
contraption
that
year —a
device which was supposed to fly
through the air with some sort of
self-propelling power. The only
people who paid much attention
to the Wright Brothers were Ohio
neighbors who thought the young
.men of Dayton a little bit "off
.their heads." A 61 day automobile
trip across the country was much
-foigger news.
But flight was born in 1903 and
had
man
most
been
startling
given
means
his latest,
of com-
.munication.
brief,/a
Not content, however, to place
the responsibility for a so-
all
"blind
called
landing"
in
the
hands of the pilot, there are be¬
ing installed on the planes we
a
little
startled
with
always
the
an¬
nouncement of each new achieve¬
in
ment
feel the slightest dis¬
comfort,
Planes
descend
more
may ascend nor ■ "
rapidly
without
bothering ears or sinuses. Again
I say this may more properly, be
shall presently have in the air an
automatic pilot which takes over
from the human pilot and lands
the plane perfectly whether there
called
is any visibility or not.
worry
Thus another great problem in
safe flying is solved and the logi¬
or
cal
step has already been
experimentally. A kind of
automatic pilot called the "flight
gen,
control" has been installed in
every passenger will understand.
So there are some of the things,
next
taken
an
Army airplane and has proved it¬
self
as
desirable
as
it is successful.
Using this device, a pilot merely
taxis his plane to the downwind
of the runway. He then sets
the brakes and idles the engines.
He presses a button, the brakes
end
release
tles
automatically,
the
throt¬
advance, the automatic pilot
keeps the plane moving in a
straight
line.
When
a
certain
speed is attained, the plane lifts
from the ground, the wheels are
retracted and the plane climbs to
a predetermined altitude. And
then,
"passenger comfort," but
a safety factor in this
engineering
advance.
a
pilot does not have .to
there is still
particular
When
about his rates of descent
whether his altitude is a little
too much for people without oxy¬
surelyvthere is
as
well
an additional
outright safety there
the added comfort that
of
measure
as
besides
records
we
become
soon
the
greatest factor
understanding in
the history of the world.
>
We must keep up our engineer¬
ing in the search for speeds and
of toleration and
.
extreme
altitudes.
also
,
our
keep
But
.must
we
research and records
safety on a comparable level.
Only thus will we realize the air¬
for
man's dream of all flights ori time
in all kinds of weather at/the
greatest speeds and with the ut¬
most comfort and safety. f ;
If
we
chance
do this there will be little
of
Into disuse
great
the
as
roads! falling /
other
air
have
highways
so many
civilisations
-mm. ww-Wx
of
past.
IIli
I
■■■•*Jf M\* f
'
Charles A. Parcells Adds
Geo. Kempton to Staff
J?
DETROIT, MICH.—The broker¬
age firm of Charles A. Parcells & $
Company,
Penebscot
Building,
members of the Detroit Stock Ex¬
change, announces the addition of
George C. Kempton to its sales
department.
Mr.
Kempton, who is a gradu¬
University of Michigan and
Detroit College of Law, comes to
his new position from the Ford
Motor Company.
wf
ate of
.
—
—
-rr-;
Pickering & Co. Opens",;
&
Company, Inc., is engaging* in.
the
securities
business
from
of¬
fices at 127 Atlantic Avenue,
-
:
I
,
,
j
•
:
•
.
It
is
in
this
field of safety
lieve, that
less
it
■'
This advertisement appears as a matter of record only and is not, and is under no
offer to sell,
or a
solicitation of an
'»~
these Shares.
'f:
t
85,700 Shares
spectacular
achievement, I be¬
miss much of the
news that is so important to fly¬
ing as a transportaion service. We
read about a speed record and dis¬
cuss
■
as, an
we
with
our
friends
in
Minneapolis-Honeywell Regulator Company
3.20% Convertible Preference Stock, Series A,
the
aeronautics.
And I
im¬
agine most of you feel that way
too when you read of some re¬
markable flight. But it is a fact
that the most startling achievemen in the history of aviation—
Orville Wright's first flight, man's
first
flight — drew practically
no immediate comment and was,
,
in truth, barely announced to a
public which knew flight was im¬
possible anyway unless you con¬
sidered ballooning as flying.
'»"■ Well, even today I believe we
miss some of the most important
news in regard to aviation. A new
.altitude record? That stimulates
the imagination because altitude
knows no fences, no mountain
coming
to?" but only a few professional
commercial airline men ponder
the really wonderful records of
their companies for safety and
regularity.
With
the
hope
that you wil
pardon me for mentioning my
own service, United Air
Lines, I
should like to point out that in
our operations for the
Army we
have flown
over
5,000 flights
across
Par Value $100 Per Share
route
from
Tokyo
on our
83,825 Shares of the above-mentioned 3.20% Convertible Preference Stock, Series A, are to
be issued by the Company to
holders of its previously outstanding 4% Convertible Preferred
Stock, Series B; 4^% Cumulative Preferred Stock, Series C; and 4% Cumulative Preferred
Stock, Series D, pursuant to the Exchange Offer which expired May 18, 1946. The remain¬
ing 1,875 Shares are to be purchased by the several Underwriters, including the under¬
signed. No public offering of such Shares is contemplated by the Underwriters.
8,000 mile
our
San
Francisco
to
on-time performance
has been 100%. Every single flight
dispatched
from
arrived
Union Securities Corporation
Japan within the 52
in
California
has
hours allotted for its trip.
In two years
United flew for
the Army over 5,200,000 miles of
bitter Alaskan routes
carrying
iV
s
'
the Pacific without serious
mishap, and that
May 23, 194ft
•
W
HEMPSTEAD, N. Y.—Pickering
■
offer to buy, any of
■'
r
its
circumsltances to be construed
::
and
speeds,on
pin the hope that our
business
of
flying people: and |
goods throughout the world will
which
vein of "what's the world
I said earlier that I was
•
rightly demands safety along with
speed and this quality is not
variable commercially.
Whether
the flight is short or long, high or
low, helped by following winds
or hindered by foul
weather, the
traveler on an airline today ex¬
pects his trip to be conducted
with all the respect possible for
his physical well-being.
planes this
Several sys¬
.
But
new
pressurized cabin
plane to go to extreme
heights in the atmosphere without
tems have been used successfully
appreciably/ changing the air pr£s*
during the war and even now the ^qre within the cabim Thus planes
major airlines are installing the may fly j/igher °ver rough ter¬
most adaptable type for their reg¬
rain or bumpy weather without
ular operations in the near future.
causing passengers to breathe
ence
conquerable opponent. If ice were
yes, we see the dramatic in that,
known to be along the route and
Coming closer to home, it has too, because speed is the essence
could not be avoided, a flight was
always
been
my
belief
that of flight.
now mark this, the airplane takes
But aviation has accepted speed, canceled in the interest of safety.
America has grown great in the
a predetermined course at a
pre¬
Then came the development of
world largely because our fore¬ no matter how much greater that
determined altitude and flies to
the Goodrich de-icing boot which
fathers took the challenge of great speed may get to be. And people
the destination desired.
When it
made
flights through most ice
distances in their stride instead who use airplanes for travel or
arrives over a special radio sta¬
of contenting themselves with iso¬ for sending mail or cargo accept routine. Safety engineers were not tion at the
destination, it lowers
lated living up and down our speed. Indeed they demand it, for satisfied, though, and for years the landing-gear and
flaps and
speed
there
is
little they have worked toward a more makes a landing. And no human
coastlines, determined to push on without
reason
for the commerical air¬ perfect system that will make any
over each successive hill and river
has done more than press a few
and all ice as easy to fly through
to see what lay on the other side. plane.
buttons.
as a moderate rain. And now our
Speed, however, is relative. A
.Curiosity? Perhaps. A desire to
The airlines aren't using this
latest planes will carry the result
settle down in some
rich new hundred miles an hour today is
device as yet, but it seems reason¬
land? Most certainly. But it is in¬ slow; 15 years ago it was accept¬ of these years of safety research
—the heated wing and tail sur¬ able that the day will come when
teresting that most of our ances¬ able; and 20 years ago it was al¬
tors kept the trails open behind most terrifying. The same is true faces. With this method even the ground facilities will permit its
use and the inevitable "bugs" will
Six heaviest ice is prevented from
them as they went forward. They with our current records.
have been worked out of the in¬
did not move to be cut off forever hundred miles an hour is a hazy forming on a wing which melts
strument itself. When that day ar¬
from their people. They moved fact today, but who can tell how the particles before they have a
rives, surely the commercial lines
for better living but the ragged that tremendous pace will seem a chance to cling.
Thanks to research, planes can will avail themselves of such
lines of communication were kept decade hence?
take off easily now on instru¬ mechanical brain in the interests
open. The rivers were navigated,
A major factor in commercial
ments and it is routine to fly on of safety and regularity of sched¬
the plains were marked for travel flight is
not, in essence, relative.
instruments en route. To all com¬ ule. For the lines have always
and as isolated villages arose to And that is
safety.
A thousandinterested
primarily
in
mercial pilots a flight on instru¬ been
the west, the transportation sys¬ mile-an-hour
flight with almost
safety and every assistance given
tem was improved. The ox-drawn certain' destruction at its conclu¬ ments is quite as easy as a flight
in the clearest weather. That is the human pilot is considered a
wagon gave way to overland mail sion would have no more appeal
training and practice and experi¬ step in the right direction.
coaches and rail; the pony express than an invitation
to, surfboard
And 'this brings me to my last
made its historic appearance; theh across the ocean behind a de¬ ence.
But if our destination is ob¬ remark
Came
the through rail service stroyer. A few adventurous thrillregarding safety. Perhaps
scured we are forced to choose an¬
across the country. And in 1903,
chasers would pay for the priv¬
"passengfer comfort" is a better
other field for landing. Or, as oc¬
a doughty driver took
an auto¬ ilege, no
doubt, and there would
casionally happens, we must can¬ heading, for I refer to the pres¬
mobile trip from coast to coast be the usual
line-up of publicitycel our flight. Yet this, too, is a surized cabin that is going into
in exactly 61 days!
seekers. But the traveling public
in
many
i
i
it
•tek
i».
■"'eii
3K
iff
,
THE COMMERCIAL & FINANCIAL CHRONICLE
2810
**■"
600 calories of restorative
World Famine Situation
(Continued from page 2789)
destruction of agriculture. On the
death. And I may remind you that
an
of
2,200 calories per
day is the minimum
average
top of that ciamity has been piled person per
drought
in the Mediterranean, in a nation for healthy human
drought in India, drought in China beings. And do remember that we
and
partial drought in South Americans, the British, the Cana¬
Africa and the Argentine. Never dians, the Australians, the Swedes,
have so many evil Horsemen come the Argentinians, and most of the
Western
Hemisphere
are
con¬
| all at one time.
suming over 2,900 calories per day
Hunger Hangs Over One-Third right now. If these 800,000,000
;
of World Population
people should receive no more
.
Hunger hangs over the homes
of more than 800,000,000 people
over one-third of the people
of
the earth. Hunger is a silent visi¬
tor who comes like a shadow. He
sits beside every anxious mother
three times each day. He brings
not alone suffering and sorrow,
and
but fear
He carries
terror.
disorder and the paralysis of gov¬
ernment; and even its downfall.
He-l is
destructive
more
than
armies, hot only in human life
but in morals. All of the values
of right living melt before his
invasions, and every gain of civil¬
ization crumbles. But we can save
these
we
the worst, if
people from
will.
Mission through Europe.
I have had the devoted coopera¬
In
our
all of
experience in
relief, and if we assume that their
investigations in advance of com¬
ing; we consulted at length with
the heads of state and with the
food and agricultural experts of
each government; we checked and
cross-checked
all
information
with American officials in those
countries; we have checked it
again with the Relief organiza!■■ tions of many nationalties who are
working closely with the stricken
j
a
*
peoples. And above all, my colleagues and I have gone into the
byways to see for ourselves. I am
confident
our
conclusions
are
;
close to reality.
is about
About
be
would
150,000,000 more
to an
1,500
calory
150,000,000
more
would
1,203
calory
reduced
About
be
reduced
to
an
level; and
About 300,000,000
be reduced to
would
more
900 calory level,
a
below—and that is slow death.
or
As
descend
we
scale,
this
we
step by step from the stage
the stage of disease
move
of hunger to
and
epidemics, to the stage
public disorder? -to the stage
of
of
starvation of all but the strongest
and, finally, at less than 900 cal¬
ories we come to mass starvation.
The
Nazis
at
Buchenwald
and
almost that amount
to their prisoners. But long be¬
fore a population is reduced to
these lower
levels, government
Belsen
gave
break down.
would
journey I haye seen
much which I could criticize as
to the management of the famine
reliefs I criticized such matters
sounds like
this
All
engin¬
an
millions,
it
but
is
not
mass
starvation.
prevent the descent to
these lower levels. Reconstruction
We must
many
cism
to
wait for history. I only
can
want
that all has not
record
have witnessed.
It
all
adds
em¬
j| this crisis.
In appraising the
world situa-
tion, I could give you reams of
figures of rations, of calories, of
tons of this and that, for every
| country and each district. I could
give you their stocks of food on
hand, in. transit, and the further
need of each famine area. I could
| give it by the month,
for the
or
crisis. I could give the time re¬
quired for ship transport with de¬
ll tails of port, railroad and truck
;
J capacities
for
This
distribution.
of bread-
We have two sources
stuffs supply
of
residues
the
surplus
for this crisis — the
1945 harvest in
the
and
countries,
the
part of the coming har-,
vests of 1946. The harvest of some
earlier
'
r
all human
available.
include
I
breadstuffs
food cereals that are
f been perfect in the world that I
phasis to the fact that today the
vital need is unity and coopera¬
tion now, so that we may master
countries
late
as
from
in June, others as
comes
October, and some supplies
the new harvest
can
be
available to the countries
harvests.
If
the
present
of late
a
few months. By
September new
supplies should be available
the immediate crisis will ease.
In
March
Food Board in
an
the
last,
and
Combined
Washington made
estimate of the amount of food
sort of detailed information would
needed
is full
for the first six months
lives of men,
and of supplies available
of meaning in the
women
and
children
to
my
col¬
leagues and myself. For in these
0 figures lurks the certainty of hun¬
to hundreds of millions, and
the spectre of mass starva¬
tion before this crisis is passed.
ger
even
1
such
basis
by all the deficit nations
of 1946,
from the
food-surplus nations. These esti¬
mates
of
need
were
based
upon
the requirements as stated by the
nations who must have overseas
supplies.
the
need
Bather than such details, time re¬
fall
quires that I give you a global
picture, in the hope that it will
convey to you the gravity of the
situation, and the need for our
utmost further effort.
ments
Adding
harvest,
of
in
between
the
cereals
estimates of
June
total
were
and
the
require¬
listed
at,
The
11,000.000
of
total
sources,
other
I
can illustrate how
gap still is. It equals
,
tragic that
the whole
amount necessary
to save 40,000,000 people. We would, of course,
nation
one
if
but
There
it
are
and.
on
spread it
about the
Americans
are
right,
women
shortage
we
all, the results
over
a
the
concentrate
not
a
who
„duty,
to
and children even of
surrendered
No
enemy.
one
is
the enemy of children. There are
others who believe that the only
hope
of
of
peaceful
a
world
is
peaceful,
cooperative
others who,
peoples. There are
remembering
the immeasurable
crimes the enemy has committed
against all mankind, believe in
"an eye for an eye," a "tooth for
a
tooth." To
these, let me say that
to keep five hundred thousand
American boys in garrison among
starving women and*'Children is
unthinkable. It is impossible be¬
cause, being Americans, they will
share their
own
rations with hun¬
children; it is impossible be¬
cause
hunger brings1' the total
destruction of all morals; it is im¬
possible because of the danger to
American boys of sweeping in¬
gry
fectious diseases, which rise from
famine. It is unthinkable because
do
we
not
want
boys
our
ma¬
chine-gunning famished rioters. It
we
do not
flag
flying
is unthinkable because
the
want
American
nation-wide Buchenwalds.
over
these
far
on
And
European Children
what of the
re¬
endless
could be said of
same
millions
of
to .meet thia terrible
world rbrisis. *
children in
Europe?
have
children
full
than
of the world, It is more
only path to order, to :
stability and to peace. Such action ;
marks I the return of the lamp of •
compassion to the earth. And thatis a part of the moral and spirit¬
than
been
falling
since .long
of
ual reconstruction of the world."*
Proposes New World Food
Organization
some
children, both in Europe
I have already pro¬
Asia.
posed
not
alone
a
systematic
handling of this problem of sub¬
normal children, but a drastic re¬
organization of the world's food
administration
vest year.
the
for
It is
United
the
next
har¬
primary job for
Organization
a
Nations
if peace and good-will are to
re-established
be
earth.
on
to
world's
about
20%
of
the
food needs. Their
supply
the vast
is
by charity, of which
majority comes from
America.
But great as this work is, 80% of
the problem is not charity—it is
the
furnishing of supplies which
people can buy, yet they are just
hungry
Before
tribute
the destitute.
as
closing,
to
my
should pay
colleagues on this
journey, and to the great army of
men and women in
every nation
over the world who are
working
unceasingly to save these millions
The volunteer
tions
the
the
of
Red
religious
Cross
of
organiza¬
of
nations,
many
in the field, unceasingly doing
best—but thev can remedy
fraction of the suffering.
a
There
hopes of further
of 3,600,000
are some
this
servation
of
intensive
more
con¬
breadstuffs and
fats
in North America. Before I went
this
journey, we asked the
people to reduce their
consumption of wheat products to
two pounds per week per person
and to cut their purchases of fats
by 20%. Hundreds of thousands
on
ad-
.
and made several
a
suggestions forfood organization.
world
new
His remarks follow:
I have been asked to present to
views
you my
ganization
world food
upon
for
the
or¬
harvest
next
There should be drastic re-'
organization. A new set-up should
take
over
on
September 1 next,
When this immediate world crisis
shall
have
passed.
•
*
We can
hope
some breathing spell from the
tensity of the present situation at'
for
that time. What the final author¬
ity of such
organizaion should'
an
be and what methods it shall
use -
clearly the food outlook for
more
American
-
the next harvest year. We will '
know what the situation is for the '
northern
hemisphere by Septem¬
ber
But
1st.
such
the
broad
organization
mined
at
can
of '
lines
be
deter- '
once.
Up to date the climatic condi- '
tions for the next harvest appear
fairly
favorable. If these cbndi- !
tions continue favorable it should
be
a
are
plentiful year than the
through which we
passing. We have to '
more
year
now
remember
gap
tons.
First: Still
20,
of the United Na- *
meeting in this country,»
now
harvest
Europe Hopes
decreasing
May
on
Organization
tions
bodies,
their
only
Hoover,
dressed the Food and Agricultural>
cannot be determined until we see
I
of lives.
Mr.
!
year.
UNRRA, with its earnest staff,
attends
the
Food
Administration Needed
are
lives is far more'
economic necessity to the :
an
recovery
Our Misson has stimulated
was
that the present
not all
due
to
the
crisis
war
de- :
generation of agriculture. It was *
partially due to the destruction !
looting of food, and it was
also due to the unprecedented
combination of droughts in the.
Mediterranean, India, China and a
partial drought in the Argentine
and
.
and South Africa.,
It would be fortunate, however,,
if those states of Europe, torn by
responded by cut¬
ting out wheat products alto¬ major military operations, should
gether. Public eating places in in the coming harvest produce a
75% ground crop; I need not recite
many cities have cooperated. I re¬
the effect of shortage of fertilizers,
gret to say there are too many
farm machinery and man power
who have not cooperated
with
which
will
affect
the
coming
some
hungry human
being.
I
earnestly hope that every Ameri¬ harvest. These deficiencies will,
can
will remember that an in¬ except for some unusual climatic
visible
guest sits with him at blessing, seriously affect the pro¬
duction. In animal products it will
every meal.
Second:
We
have
need
that be a still slower recovery than
of families have
every
farmer bring
cereal
grain of
every
are
states
and vegetables,-- will pull
adults through, It is not adapted
to children. Several nations give
tion
consult
to
have
re¬
of
with
them
coordination
of
on
our
efforts.
we
can
succeed in persuading
and woman, every na¬
shall
master this famine. And we shall
save the lives of hundreds of mil¬
every man
lions
to do their utmost, we
from
the greatest
in all the history of
shall
the
war
have
saved
jeopardy
mankind. We
infinite suffer¬
best they can. But in all,
they are
touching only the fringe of the
undertake this work
•
coun¬
.
.
75% ground crop and the absence
of
droughts, it will be a tight.year
in world totals of cereals end fats.'
For all these reasons it is necesfective world organization to
take
of present improvisa¬
tions. I am not here going to criti—
cize the world food policies of the
the
.
to begin some more ef¬
sary now
place
,
But they must have
reorganization
if we:
would avoid another crisis like
that which we are now in. As I
have said, how elaborate that organization must be will depend of
course
upon t,be volume -of resources from this coming harvest.
past
year.
vigorous
-
.
.
ing.
problem. The proof of this is an
annual infant mortality rate aS
•
de¬
tries and
a
probable continued
shortage of feed. But even with a
operation. At President Truman's
request, I shall visit these govern¬
If
of
seeking for still further
to our appeals and to
of Pope Pius XII for co¬
measures
because
struction of herds in many
Latin-American
ments
cereals
market.
to
cooperation in other nations. The
those
them priority in what little dairy
supplies there are; extra food ifc
given in some schools; and the
charitable agencies are doing the
with more urging '
utmost? I may repeat'
again what I said three weeks ago :
from Cairo: "If every source of :
supplies will do its utmost, we'
can pull
the world through this '
most dangerous crisis. The saving :
to do your
of
life
Reorganization
1,500 calory bottom' level
is dreadfully hard on children. It
is hard because a larger portion
of the average ration must go t6
heavy workers if essential serv¬
ices
be
kept going. While this
diet, which is as much as..: 85%
bread and the balance a little fat,
sugar
force this report
in
before this famine. And they are
harder to reach and help, because
of age-old rooted customs.
as
conclusion, do I need to rein¬
children
sponded
This
In
millions
many
short ;of
We
Effect
too
of
to
the enemy peoples from star¬
vation
and
thus
start
building
into
debacle
There
save
as
cities.
there
200 per 1,000 among chil¬
one
year in many
under
The
are
I have said before that calories
are'the yardstick of hunger, of
below human endurance. That gap
children
of 11,000,000
millions.
the
revi¬
the
by
cereals, by
shifting between early and late
harvests,
by
our
sacrifices in
America and by spreading sacri¬
fice into other surplus areas, we
estimate supplies for the hungry
will be increased by a minimum
of about 3,000,000 tons. Thus, the
gap has been decreased from 11,000,000 tons to 3,600,000 tons. But
the gap is still there—and it is a
tragic gap.
million
starvation, of famine, and finally
drastic
reduce
some new
substitution
And that would be a calory level
tons spells" death to
these
to
requirements
of
breadstuffs by about 4,000,000 tons. By
dren
15,1)00,000 tons. Thus,
unbridgeable gap of
tons, or nearly 43%.
an
tens
Asia.
and
Cereal Deficit
world
Reduced Caries
y
of
net
was
their efforts'
Americans
of these human
action for
Reducing
high
at
them
pull
its
feet
not
costly
stop this most
and
Much the
nations.
mated
was
would
as
the
upon
evil.
caloric
drastic
a
vation, would maintain order and
economic life. We kept the 1,5001,800 calory bedrock figure al¬
ways in mind. Most of the nations
we visited joined earnestly with
us in working out the very mini¬
mum they could do with, as they
all realize the desperation of other
roughly, 26,000,000 tons. For the
same period
supplies were esti¬
there
on
through, would prevent mass star¬
harvest
prospects continue favorable, re¬
lief will come to the world within
coiivey little to
you, but it
nation
each
them
and peace in the world would go
officials in the world up in the flames of chaos if we
fail.
frankly. I could criticize them
The transcendent question is the
bitterly. But, after every boiling
of inward indignation at men and available overseas supplies with
at nations, I come back again and which to fulfill this formula. And
again to the fact that millions are I shall discuss breadstuffs only,
in grave danger of starvation. To for they are the symbols of life
explode into public criticism in and hope. The problem of fats is
this crisis would only weaken the no less urgent, but I will not bur¬
memories with more
amount of support and diminish den your
the food they will receive. Criti¬ figures than necessary. And in
to
production that.could be ex¬
pected. We measured the needs of
own
Civilization
war.
forward
healthy children. It is
treat
feed
eering formula. It is; but it is a
formula
which means life
and
in the hands of each
country and the amounts of their
believe
to
this
now
late to
same.
Starvation
Mass
No
this
the stocks
developing
level.
after
of
sions
level.
been
far
so
marches
100,000,000 more people
would be reduced to an 1,800 cal¬
ory
has
.
prevented. Our Mission examined
About
hope to nations. At the best we
do, it means gnawing hunger
Relief Management
On
follows:
as
About 100,000,000 people would
be reduced to the 2,000 calory
level.
can
Criticize in
Much to
could be
resources
distributed, ? which
they
could not, the measure of their
hunger with the caloric yardstick
evenly
tion of my six colleagues,
them with long
famines. We secured independent
remaining
own
During these past months ship¬
have
been moving,
and
starvation
10,000,000 children. I deplore that
special aid for children has
had
no
counterpart through a
wide-spread organization' set-up
in
of all
this
ments
mass
food, to
war
further, proof
is that
somewhere from 20 to 30
physically subnormal
on
in
the
Continent. After
1919-1920, we gave a
good extra meal
day, of 500 or
I
was
asked by the
advisory
further
in
capacity and
journey
to
a
purely
with
the
the
Latih-
American states, my service: ends.
The
responsibilities of adminis¬
tration of the
outlined
lie
Suggested Changes
President to
programs
I have
with our officials. I
But
suggestions
are
-
-
immediate consideration:; c;
-
■
-
organization be
created -now under the auspices of
the *• United * Nations
Security
Council, or better still under your
1. That
a
-
>
new
committee. For convenience,
tn
bespeak; for them ibe Ml support
certain major
warranted for
in any case,
+hia
organization
.
.
I will
as
the
-
[Volume 163
United
Nations
tration.
2.
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4492
Food
disposed of their holdings..
Large institutional buyers as
were still largely on the sidelines., . *
.
' •. ■;
•
Adminis¬
,
single food adminis¬
appointed with a small
advisory committee. That the ad¬
visory committee should in major¬
ity represent .the surplus food
producing nations as,-they will
have to furnish the supplies.
?
a
ffOur
Reporter
Governments"
on
STEMMING THE TIDE?
By JOHN T. CHIPPENDALE, JR.
Forces operating in the money markets are still causing
wide¬
First there was
3. That under the United Na¬
due in no small
tions Food Administration certain measure; to the purchases of speculators and free^riders, i . . The
regional organizations be set up, Government, fearing there would be a severe deflation this spring,
say
one
for Europe, including with large unemployment, was very anxious last December to raise
North Africa,
one
for the Far as much money as possible in order to build up large cash resources
spread price changes in Government securities, ,
the great oversubscription of the Victory Loan
,.
East,
|
for South America, and
one
for
one
the
Ocean
Indian
area,
to meet deficits and adverse economic conditions..
]
during the period of food scarcity
agricultural
reconstruction
from the
war.
.
.
.
;
speculators with bank credit, the govern¬
willing to take these funds because ;
conditions. . , .
chases of bonds by
mental authorities
,
were very
of fear of future poor business
THE RECORD
Wr* and
.
While lip service was given to regulations to prevent pur-
which" should include Australia, J
New. Zealand and South Africa.
1
4. That this agency serve only)
,
]
,
.
.
What happened is now history.
Business continued to move
; 5. That this agency should ab¬ ahead despite strikes; Government finances improved, and the Treas¬
sorb from September 1st, the food
ury instead of having deficits to drain off its funds, came up with
and
agricultural
activities
of surpluses.
The huge sum of money raised during the Victory
UNRRA, which covers only 20% Loan could now be used for debt retirement.
With the turn of
of the present world problems. the
year it was evident even to the monetary authorities that there
i
.
.
.
.
.
.
.
LaGuardia
Director. General
The new
administration should incorporate
also the Combined Food Board, and
favors
all
such
course.
a
agencies
international
other
would be
*
.
depression and the belief became very prevalent that
there would be no need for Government financing for a long time
to come and there might even be some repayment of debt by the
Treasury.
This resulted in a sharp upward surge in Government
no
.
bond
.
.
prices, particularly in the restricted obligations.
agricul¬
connected with food and
These bonds moved ahead to all-time highs the
tural reconstruction.
.
.
'
It seems quite evident that this move by Government authorities, in allowing the commercial hanks to buy small amounts
of the ineligible issues, was done to bolster the market and to
prevent it from going down too far.,.
While
;
.
the
deposit institutions is very small compared with the total outstand¬
ing, or the estimated floating supply in the hands: of speculators and $
free-riders, it could have a stabilizing effect on the market, . > . It 1
could help to improve a very poor psychological condition, since it •
shows that the money managers will make quick and unexpected '
<
the
such bonds that
of
amount
changes to help the market.
be bought by
can
<
-
,
...
POLICY REVERSAL
"t.V
'
j
. £
This recent development seems to be a decided change in attitude i
since agitation has been for a larger amount of bank assets in J
short-term obligations in order to decrease bank earnings. .
.
It may >
.
monetary authorities have recognized the trend toward .i
high coupon obligations by the commercial banks in %
order to offset the loss of earning assets through the debt retirement i
be that the
longer-term
program.
.
.
.
Then last Friday, late in the day, the Treasury in agreement with
Federal, announced that the commercial banks could purchase lim- t
ited amounts of the ineligible bonds. . , , Did the monetary au¬
thorities become panicky oyer the inability of the, market to rally
further from the recent decline?
.
Did they believe, that some '
action must be taken td change the course of the market? *;
<
,
...
,
v
early part of
which
are
United Nations Food Administra¬
tion
to
normal
to
return
tax basis.
com¬
the
food,
fertilizer and
supply business of the world
with
all
speed possible.
Com¬
merce will secure more economi¬
cal distribution; it will serve with
As
farm
and efficiency
assurance
more
and con¬
More¬
over, the world must quit charity
as a basis of widespread food dis¬
to
farmers,
merchants
than governments.
sumers
I
tribution.
strongly
too
cannot
emphasize that charitable distribu¬
tion is. hugely wasteful and in¬
efficient. Charity should be or¬
prices moved ahead, with the Treasury retiring bonds in¬
stead of issuing them, it was decided by the money managers
that
something had to be done to chase the speculators and free riders out
of the market because they were ruining it for investors.
.
This
.
.
changes in the differential discount rate and
rumors that bank loans made for the carrying of Government bonds
would be called.
Talk of higher interest rates due to the debt
retirement operation and the Treasury no longer a borrower was
being heard.
led
to
agitation for
.
.
MARKET
"
.
were
thin and all of
dealers, investors
very
tumble
to
as
sudden on April 8 prices
and speculators all pulled
a
price limitations of 8/32nds made it impossible to conduct an orderly
market.
Investors and dealers refused to lend support because
food
that
so
marginal quantity of
it can fill in any
chinks of * commerce.
What that percentage may be can
be estimated when we know the
amount of the world's food re¬
neglected
sources.
•
8. That
this
agency
should be
empowered to advise ^nations on
measures of conservation, on vol¬
untary relief activities, on stimu¬
lation of the production of fer¬
tilizers, farm machinery
materials
recon¬
struction.
9.
•
care
organized system¬
atically and should be the sole
charitable contribution of govern¬
ments, That is the most needed
reconstruction effort in the world.
It does not call for large figures.
dren should be
The
.
.
.
...
...
.
Regardless of the reason for the change of policy toward the in¬
eligible issues by the money managers, it will mean more potential,
buyers for these bonds, which will have a favorable effect on the
market for these securities.
The whole market is still in a buy¬
.
.
.
they knew prices would go lower.
•.*
...
RETIREMENT
DEBT
The
primary
purpose
United Nations is to
•
.
.
a
free market
.
V)
,
in. cash
.
.
.
It
even
ending of
.
...
->
not
was
surprising development.
a
.
X,,■M:;
"
■
.
.
.
long-term
It does, however,
will continue
It seems as though
of ithe heavy debt burden.
...
term borrowings....
Leven Bros,
Levett Brothers Formed
with
formed
has
Brothers
Levett
offices
been
Pine
70
at
Street, New York City to engage
in
securities
the
Levett
business.
Mr.
formerly with T. A.
was
Edison Co.
FURTHER DECLINES FEARED
now reached levels where investors were showing an
acquiring securities because of the satisfactory income
that was available.
However, purchases were not too vigorous
since they consisted largely of scale orders, because buyers were
cautious since the period was approaching when Victory Loan pur¬
chases would be long-term holdings for tax purposes.
This might
lead to another period of weakness as free riders and speculators
interest
in
New York
David Don Leven " has opened
offices at 305 Broadway,
Newt
York City, to engage in the se¬
curities. business under the firm
name
agriculture,
and
.
past he was with Don Xeveh
Co., Inc.
.
.
.
.
This advertisement is not, and is
NEW
Fleetwood-Airflow,
72,000 Shares
all, the
is
of the
of war is
essential to order and peace
guns—but the final voice
y«
ISSUE
reconstruction of human beings
The first voice
circumstances to be construed as, an offering
91,767 Shares
give security
above
no
of these securities for sale, or as an offer to buy, or as a solicitation of an offer
to buy, any of such securities. The offering is made only by the Prospectus,
This is published on behalf of only those of the undersigned who
are
registered dealers in securities in this State.
the
of
under
Common Stock
Monroe G asket & Manufacturing Co. Inc.
in
(Par Value 50 cents per share)
(a New York corporation)
making peace is food.
Price $3 Per
Share
CAPITAL STOCK
Geo. E. Donavan to
•
(,Par Value $1
Represent Scharff & Jones
per
Share)
NEW ORLEANS,
E. Donavan will
&
Price $4 per
represent Scharff
Share
Building,
Mississippi.
Mr.
previously. in the
Amos Treat & Co.
Jones, Inc., Whitney
Northern
in
Donavan
was
U. S. Navy.
<
New York
Weil & Arnold
.
•'New
Irving J. Rice & Company
Orleans
St. .Paul
*
R. H. Johnson & Co.
Shreveport
Lest% Smith in
SHREVEPORT,
Smith
is opening
"LA.—Lester E.
offices in the
City Bank Building
-
the
McAlister, Smith & Pate, Inc. *
Grimm & Co.
to engage in
seCurities"t>usihessr^ '* * «•** ?
•
-
May IX\ 1M
R.M. Horner & Co.
1
O'Conneli & Janareli
it
May 21, 1946
v.
.
..
Greenville, S. C
.
.
'•
•
of Leven Brothers. In the'
in
.
of-
2V2% is the highest rate that Governments want to pay for long-
.
moved up somewhat from the lows made at the time of the
.
,
retirement
the
so
showing tendencies to stabilize.
restricted price changes.
of
to indicate that interest rates the world over
low because
...
was
RATES
INTEREST
The British action in reducing the interest rate on
chaotic that it was clear to almost
everyone that something had to be done to bring order, into what had
always been regarded as the most stable market in the country. .
These conditions forced the elimination of limited daily price fluc¬
tuations and, although the market went lower after this change, it
to the world. Effective
distribution .of .food ;during
scarcity and the reconstruction of
the
•*
.
,
should be watched carefully.
speculators and free riders were being hurt by the market trend,
but likewise was the investor.
and peace
world.
.
..
preferential discount rate, which certainly added no con¬
an already weak market.
It was evident that the
Finally the market
AND
announcement
Treasury's
bonds
now
.
$2 billions of %% certificates on June 1, as well as $1,036,000,000 of-J
3s and $819,000,000 of 3Vss on June 15, was expected by the mar- f
ket..
The open market activities of Federal, along with the method >
used to handle these debt payments, will have an important effect *
on excess reserves of the banks and the money markets.
.
These
serve
fidence to
was
.
vancing tendencies still seems to be ahead of us.
With prices still falling, the monetary authorities eliminated
the
.
and although there may be some switching out of the
eligibles into the restricted issues or even less vigorous buying of
the bank bonds, these issues should still be acquired when the income*return is satisfactory. ... A good trading market with ad¬
ing range
Prices had
medical
physically subnormal chil¬
Special feeding and
of
away
and other
agricultural
of
tially.
.
by other means than charity.
,
7. That the United Nations Food
should have by
tion of some
they will not be building up
CRASHED
Markets
started
.
.
from the market.
The monetary authorities had won their
point; they were shaking some of the free riders and speculators
out of the market, but in doing it they created chaos in the Govern¬
ment bond market.
There were no bids for bonds and the daily
agreement among the supply na¬
tions the direction of the destina¬
field J
institutions can purchase so that
ithe premium account too substan¬
...
ganized separately. Nations should
from September 1st forward fi¬
nance
their own food purchases
Administration
•
A BETTER MARKET AHEAD
merce
far
*
of long-term bonds that these
bonds but in many instances
of the
That it be the purpose
cline, the money managers may have decided to enlarge the
having added to their commitments
during the rise, with the hope that prices would continue strong
so that they could get out with handsome profits on a long-term
Cease Charity Policy
\
prices of longer-term eligible bonds,
|
still at substantial premiums despite the recent de- ",'t
In order not to force up
April, with the speculators and free riders not only holding their
6.
result
a
..
.
That
trator be
"A- ''
2811
j
r
-
THE COMMERCIAL £ FINANCIAL CHRONICLE
2812
Our Policy Toward
(Continued from page 2784)
the future of our international re¬
lations.
Doubts on U. N. Future
a
and
infiltration
tory over
our
achievements
the
position
in the world. Many of us talked
about the leadership we were go¬
during
of
war
and confident of our
force
or
is
she
with one ex¬
of other nations be,
ception? It is hardly a situation
that inspires one with confidence
In the future.
single mistake on our part,
single act on the part of
other nation, has caused our
distress. It is the cumulative ef¬
No
or
any
any
fect, the pattern of mistakes and
acts of aggression that disturbs
us.
When the United Nations was
created at San Francisco,
many of us thought that a demo¬
cratic system in which all nations
might participate was possible.
being
successfully
people.
than
from the errors of the good
the crimes of the wicked,"
No wars have been more marked
from
security. But can we believe that
her security requires the domina¬
tion-of Trieste, Iran, Tripoli and
Manchuria?
Since 1939, accord¬
sects,
both
sides alike proclaiming a
mission
of
righteousness
and
hatred
passionate
by
than
the
Christian
between
wars
tainly that
should give recog¬
for adequate
and a fair and
equitable share in such essential
nition
we
her
to
need
water ports
warm
commodities
Middle
oil
of
would
be
far
if
we
should,
and proclaiming it more¬ cooperation with the other na¬
deep sincerity.
It is tions concerned, make positive
a recent article by Mr.
William Henry Chamberlin, Rus¬ the religion of the state, of the and, I might say generous pro¬
sia has annexed 273,947 square party; the pagan principle that posals, to Russia than to have her
continue to < gnaw away at the
miles of territory containing more the individual is nothing and the
status quo in defiance of the prin¬
than 24 million people. In addi¬ party everything that is the real
tion he lists 12 other nations and danger to our Western Christian ciples of the United Nations, For
If, as some assert, example, I think we should lend
areas
with a population of 165 Civilization.
simply in
higher standard of living and
a
se¬
curity for her people there is lit¬
tle cause for alarm, but' if she is
intent upon saving our souls there
can
be
no
of
complete
in the
th&t
freedom
of the
use
for
Russia
Dardanelles, but
shriM#!ripftose*^exclusive
and for 'bases in
Tripoli and the Dardanelles, the
annexation of the Baltic States
and Polish territory, the violation
of
her
pledges to
establish free
Nations
might
thought time would prove to be
It did not occur to us
nation entering the or¬
ganization would use the veto in¬
discriminately to destroy the or¬
that
any
What Attitude Toward Russia?
crucial question for
The
all of
a negative way, we have
contributed
to
the
aggressive
that, in
within
forces
Russia.
After
V-J
Day the haste with which we de¬
mobilized our army and brought
ganization itself. There are doubts
in the minds of many of us today
Rtissia will ever submit to
rules of conduct in any field.
that
There
even
are
some
who have
concluded that the United Nations,
hecause of the veto power, may
become
the
instrumentality
through which positive action by
those who believe in its principles
is >
prevented, while the more
cynical proceed with unilateral
aggrandizement. In a certain sense
the veto power in the Security
Council is similar to the right of
unlimited debate in the Senate of
the United States.
Properly used
with restraint and judgment,
it is
justifiable practice, but the
right in both instances can be so
abused by indiscriminate use that
I it can render impotent and ridicu¬
lous the institution of which it is
a
a
part.,
'
,
Suspicions of Russia
I
that
realize
it
is extremely
unwise and
overt
These
actions of Russia,
coupled with the speeches of her
leaders, in which they do not
deign even to mention the con¬
tributions of her former allies,
our
own
down
as
irresponsible actions,
economy has so bogged
the
result
all
world
the
amazement
must
at the
stand
advantage of the universal con¬
and Anglo-American in¬
interests.
decision to advance these ancient
On the other hand there
leaders in Russia who appar¬
lated
the
Selective
Service
Act.
tions in recent months is the Lili-
to
in
use
similar
manner
a
atomic
to
energy, of which I think
several.
The principal
there
We
badly
are
from what
adence
treated after the first World War
racies.
and had some
are
of
they assert is the dec¬
the capitalist democ¬
The opportunists, as such,
she could not have saved herself
so dangerous, but every
they achieve enhances the
fanaticism of the zealots and for¬
tifies their conviction that only
communism can bring peace and
from the domination of the Nazis.
prosperity to
sentment
Democracies.
without
the
re¬
Western
We also know that
these
old
That
justification for
toward
same
Democracies
it seems to me,
lias been washed out with blood
and
score,
treasure
valid
reason
and is no longer a
for suspicion or an¬
tagonism.
could
reason
be
es¬
the
rule
the
of
before
tooth
in
and
claw.
public utter¬
a
have I
ance
questioned the
of Russia. It is with
pur¬
pro¬
are
Russia
consistent with
not
are
con¬
a
bring peace to the world
under the aegis of the United Na¬
tions.
desire to
I
am
not ready to say
that she
has definitely and finally decided
not to
cooperate with the United
Nations, but her attitude at Paris
and at Hunter College point in
that direction. Unfortunately our
own country has unwittingly con¬
tributed through weakness and
vacillation to this result. Regards
less of the
responsibility for this
state of affairs we are confronted
with
a
situation which requires a
point I
wish to emphasize is the positive,
careful analysis of our future pol¬
affirmative character of the pro¬
wise
ership rather than merely going
along or obstructing.
It is still possible that by a
and
forthright course of
action, we may reestablish unity
and strength in our domestic af¬
icy.
which
from
fairs
will
the
flow
confidence and the ability to re¬
strain Russia's ambitions \yrifmxti
reasonable bounds on the onej
hand, and on the other, hand t<*
reassure her as iothe friendly
and pacific purposes of the West-?
I think we all agree
World.
ern
that
of
none
us
want another total
but we also know that vacil¬
lation and weakness, or pacifism,
war,
does not inspire
confidence in us
bring peace to the world.
or
Peace at Any Price?
opportunity to lead the
the path of peace
purchased at such a frightful
cost in blood and treasure is fast
The
There
tion
is
that
one
I
further
observa¬
should like to make
regarding
a
tion
our
misconcep¬
policy. There grew
up after the last war, and there is
likely to grow up after this war,
the belief that our policy is peace
at any price.
I think Hitler be¬
lieved this to be our policy and
relied upon it when he under¬
took to overrun all of Europe.
to
as
Our
common
present reluctance to main¬
tain
an army and navy, together
with the determined and articu¬
late band of irreconcilable
tionists in
this
our
belief.
I
isola¬
midst,
do
may revive
not think this
country really believes in such
a
policy and it is highly important
that
all
while
the
we
do
world
not
know
that
seek
not
success
the world.
It is
characteristic of all authoritarian
systems that they identify their
regimes with God and the high¬
est
and
moral
the
precepts,
Japanese
The Nazis
pursued ims
we
are
war, yet
willing and able to fight
whenever
mean
that
we
we
believe
any
intend to
power
concern
report on the ourselves with every local quar¬
control of atomic energy.
This rel in every part of the world.
report exemplifies what I believe There is, and can be, no ^auto¬
enthal
be
Committee
the
approach for
ent the danger that one's ignor¬ ently believe that they have a an effective foreign policy. It is
sacred mission to save the world well reasoned, clear, and, above
ance of the facts,
or prejudices
was
and
world
along
.
With strength arid
triumphantly
play the role which history has
running out.
wisdom we may yet
imposed upon us.
>
L'Aiglon Apparel Stock
Offered by Otis & Go.
Otis
& Co. made
a
public of¬
fering May 21 of 130,000 shares of
common* stock of L'Aiglon
Ap¬
parel, Inc., at $6.50 per share. The
Company, whose business dates
manufactures wom¬
back to 1896,
en's dresses which are sold prin¬
trade-mark
confined,
Is it possible that we are going to threatens the
right and' opportun¬ except in a few instances, to one
gree, her legitimate
desire for
disarm even before the first peace
warm water ports may be said to
ity of men to live as free in¬
department store or other retail
be the objective of her oppor¬ treaty is concluded? >
dividuals -under a government of
tunists.
The one bright spot in our ac¬ their own choice. This does not outlet in approximately 1,400 of
They are simply taking
ditional and, to a considerable de¬
tives and actions of a great power
like Russia. There is ever pres¬
distort one's, judgment.
law
tablished for the solution of dif¬
ferences among;jrieri, rather thai*
cluded that the recent actions of
equal
in
helplessness of
in
fusion
will
of
stances
of indecision
scarcely
difficult to be objective and judi¬
cious in one's analysis of the mo¬
all know that Russia
the
on
found reluctance that I have
leading to disastrous strikes that
the giant that can win a war, but
designed to inspire
is incapable of or¬
her self-restraint. apparently
What,
The recent rejection of Secretary ganizing itself for peace.
Byrnes' proposal for a 25 year al¬ they must ask, has happened to
the champion of democracy who
liance is not consistent with a
was going to lead the world into
policy of security only. I recog¬
the promised land of peace and
nize that since I have no inside
Apparently her own
information about the long range security?
people have rebelled and para¬
plans of Stalin or the Politburo,
lyzed her economic life.
With
my views are necessarily specu¬
Russia and her satellites preach¬
lative.
I am not sure that these
conclusions are sound. We are in ing, most persuasively, the su¬
of
communism
over
a
transitional stage and conclu¬ periority
sions based upon rapidly chang¬ capitalism we certainly have con¬
tributed little to the success of
ing events are necessarily tenta¬
our cause in recent months.
To
tive in nature. With the qualifi¬
cations understood I may venture top off this dismal performance,
the House of Representatives with
the opinion that Russia's policy
their ears attuned to the next
seems to partake of both oppor¬
tunism and fanaticism.
Her tra¬ election, only this week emascu¬
are
confidence
be¬
some as
well be used in this and other in¬
Our Government has so
governments in the Balkans, and, the boys home, cancelled lend- posal.
often apparently had 110 positive
not least, her refusal to lease and repealed excess profit
program and has been in the po¬
taxes and rationing, demonstrated
We believed that a system of permit official representatives or
sition of quibbling and quarrel¬
we
little
understood
our
citizens of her former allies to that
binding rules of conduct might be
enter any of those territories un¬ postwar responsibilities. It would ing with, but finally giving in, to
developed, at least in the field of
the demands of Russia.
It does
der her control, except under the not; be unreasonable for Russia to
armaments, to which all peoples
not
necessarily mean that we
most stringent restrictions.
By conclude that again we were go¬
could subscribe.
Many of us did
should
never
compromise
our
communism5 by force ing home to let the world stew
not like the veto power of the imposing
in its own juice; in spite of our views in any specific instance but
Big Five, but we believed that it upon such countries as Yugoslavia
and Romania she has gone far be¬ professions of faith in the United it does mean that we should be
was perhaps a necessary conces¬
Nations.
Then, on top of these contributing direction and lead¬
sion
to
suspicions
which
we yond her agreements with heir
unfounded.
observation?
one
hand, or as offensive and
warmongering on the other hand.
I can
only cite the fact that
throughout my public career I
have promoted to the extent of
my ability, the creation of an or¬
ganization
among
the
nation#
through which I hoped the rule
poses
United
last but
allies.
be criticized by
may
Never
the
the
are
.
I realize that these
military domination by Russia of
that waterway.
It seems to me
guarantee
free and
by all nations.
The
process of subjecting other stra¬
us who have some
responsibility
in these matters is, what should tegic areas should be in accord
with
the
development of con¬
we do to keep the respect of Rus¬
fidence in the power of the or¬
sia and at the same time restrain
Like disarmament, it
her expansion within the bounds ganization.
cannot
effectively
be
brought
of reason and safety for ourselves
compensation.
about haphazardly but only in
That, I sub¬
As I said before, it is not that and Christendom?
accord with a well planned agree¬
any particular act of Russia has mit, is riot an easy query to an¬
ment and
after United Nations
affected our confidence in her swer. Before venturing an opinorganization has warranted the
ion on that question, may I first
purposes, it is the cumulative ef¬
respect of the world.
fect of many acts.
Her ruthless suggest that we have made some
I need not go into all the specif¬
stripping of Manchuria, her ex¬ mistakes and neglected some of
ic problems which may be treated
travagant
demands of repara¬ our responsibilities to the end
tions from Italy,
force.
that
limit to her aggression
to her ruthlessness.
or
influence to the procurement
our
we
heir, permit any nation to expand
without
offering resistance by
in ing alarmist or defeatist
with
Russia is interested
civilization of which
the
It
East.
sensible
more
the
as
mercy,
over
creating a de¬
world for our million which she controls. These
children.
Today—our
domestic
are
facts, not theories, and are
economy is virtually paralyzed by
as
to the purposes
the lack pf a labor policy and our persuasive
which inspire her policy* Her re¬
foreign policy is confused and in¬
cent actions in Iran, in which for
effective.
We emerged from the
the first time in a matter of major
war with the greatest industrial
importance she positively
vio¬
capacity the world has ever seen,
lated
a
definite;^ unequivocal
with mastery of the seas and of
agreement, are indicative of her
the air, the sole possessor of the
increasing boldness and determi¬
atomic bomb; and yet today we
nation in challenging the United
auC quaking in our bootsrind seri¬
Nations
and
her former allies.
ously considering dispersing our
While the Security Council had its
cities and going underground like
say, it is also evident that Russia
troglodytes. If we are fearful of
did not retire from Iran without
the future what must the attitude
ing to exercise in
cent and peaceful
Russia
course
own
only seeking security?
She per¬
suaded us that in the dismember¬
ment of Poland she sought only
certain of vic¬
ing to
Japan; we were proud
Germany; we were
gest toour Government that after of surrender rather than resist*
a
thorough study we attempt to. ance in case of a deadlock, there
formulate equally" Jconcrete pro¬ is little chance of an equitable
with their posals with regard to the infiltra¬ settlement. I think therefore that
tion and expansion of Russia in a basic principle of our
foreign
Crusading commun¬
ism appears now to be on the Europe, the Middle; East and the policy must be that there is a
Far East. We, of course, must be point beyond which we
march. As one sage so aptly put
cannot, in
just in our position. I think cer¬ justice to ourselves and to the
subtle combination of it, "the world has suffered more
During the past several months
the question which haunts us most
persistently is, is it the purpose
of Russia to dominate the world
through
in Washington there
-was considerable enthusiasm for*
the United Nations then being
created.
Today there is a pro¬
found sense of frustration and
futility about its future.
A year
ago we had decisively defeated
A year ago
Thursday, May 23, 19461
to
proper
matic rule of thumb that can tell
when
the
is reached
where our security - and the se¬
curity of all free peoples is en¬
all, it presents a positive and def¬
inite proposal for action. If the dangered by the persistent ex¬
report is accepted by Russia it pansion of any power. Neverthe¬
will be the most important step less we know that such a point
forward since the end of the war. has been reached in the past, and
On the other hand a rejection of it can be reached in the future,
the proposal by Russia will pro¬ and, if and when, that time ar¬
vide
significant clue as to
her future policy and we should
shape our own policy accordingly.
It is my own feeling that until
a
very
fhe appearance of this report our
policy
was inclined to be nega¬
tive and indecisive.
X would sug¬
us
point
rives this nation must and will re¬
sist
case
witlri all its
of
power.
In any
difference of opinion as
whether it be in do¬
foreign' affairs, if one
party to "the controversy is com¬
mitted in advance to the principle
to
rights,
mestic
cipally
under
the
"L'Aiglon.,r
Bales
the
communities
largest
are
in
the
United States.
Of the shares
000
being
are
being offered, 50,-
purchased
shareholders and 80,000
new
financing by the Company
which will use
the proceeds for
purchase of new machinery
the
and
an
from
represent
equipment and for acquiring
additional plant site, and con¬
structing a new plant thereon, or
obtaining
an
additional plant by
purchase or lease.
operates
Sunbury
or
Pa.,
and
The Company
plants in Philadelphia.
;
and
Northumberland,:
will
begin- operations
shortly in Hagerstown,
Md.
(Volume
\
163
Let Us Not Pursue False Cods
(
(Continued from page 2783)
at all."
And that International
Very definitely tne trend in Socialist firebrand, Professor
England and on the continent is Harold Laski, shows 110 such re¬
away
from the radical statism straint. He outraged ihe limits of
jfamjliarly called communism, but decency last week when, accord¬
just as definitely the trend is to¬ ing to the New York "Times," he
ward a form of state control of said, "To those who say we have
the ordinary implements of liveli- to choose—as I do not believe we
ihood violently at variance with have
to
choose — between
the
American way of life.
•(Our
The chief difference between the
regimentation of Moscow and that
Socialist-Labor is that business
obeys the decrees of the Russian
bureaucrats "or else" whereas the
of
Englishmen
free
are
to
the Soviet Union."
suggested
the
are
eic.,
such
as
par¬
conditions
out
Prof. Laski Fortunately
r
trial
I know Laski and I have before
to their hearts' content.
English government trends have this referred to his habitual at¬
tiad a lasting effect upon govern¬ tacks upon what he calls our "rot¬
revolution
And
Disclaimed by Mr. Attlee
I
do
know
dissatisfaction
into
come
that
being.
unless
that
is
removed,
the
alluring lingo of the agitator who
offers
communism
the
socialism
and
ten, decadent, capitalistic system"
unions, which cut despite the fact, as I have fre¬ will be listened to in this country
the face of na¬ quently
pointed out, that this as it has always been in Europe.
tional economic life imitated in same decadent capitalistic nation
the original Knights of Labor the has twice saved the British Em¬ The Solution is Within Ourselves
I think the solution of our prob¬
English Socialist Federation of pire from defeat. While this little
jI883.
English sympathy for the man is permitted to strut "his lit¬ lems is to be found within our¬
American cause during the Span¬ tle hour upon the stage," we may selves, not in watching trends of
ish American war probably pre¬ be consoled with the assurance of thought abroad.
I think it is to
modern
fio
in
America.
as
Our
for economic ills
panacea
labor
deeply
across
organization.
to fish
United Nations
of
which first unrest and then indus¬
criticize
administration
of
the
coal
mines and the Bank of England
trends
methods
awakened from their indifference equality of states and not, by the
principle of the domination of
through their duly elected repre¬ some states over others..■
sentatives in Congress to stcjp the
They fully realize that only the
and lethargy and don't take steps
ticipation of labor in the manage¬ drift toward Statism. If Socialism former principle can furnish a
ment and profits of industry.
happens here, then history will healthy basis for the development
have recorded the greatest and Of this international organization*
United States Is Industrially Sick most tragic bit of stupidity the and that the latter
principle is
But I do know the country is world has ever known—for his¬ fraught with the gravest danger
sick
industrially
now
and
is tory will record a nation's sub¬ to the organization and to all
hardly apt to give inspiration or stituting for its own time-tested natibnsv<i//v/v'
Sensible and sober minds have
leadership to the res* of the world and beneficial economic system,
a
discredited
and
disreputable always been convinced that the
the
conse¬
Soviet
Union
and
the
United still reeling under
system whose only claim to preservation of unanimity among
States, with its passion for free quences of the World War. And
achievement lay in the fanciful the leading
powers in the decision
enterprise which is not free and I know that the discontent en¬
by. unemployment, prophecies of the deranged mind of international questions is &
is not enterprise, we, the Labor gendered
of its inventor, Karl Marx.
condition for the existence of the
Party, stand four-square behind strikes, loss of pay envelopes,
the
ment
2813
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4492
Russian Embassy Says
who
Those
:
in
troubled waters may
rise in arms:
principle, which is
this
against
'Influential Selfish
hope
y;
affirmed in the charter of the or¬
ganization—let them, Such reac¬
Groups' Oppose Peace
(Continued from page 2795)
Union
where
there
are
no
an¬
tionaries will only expose them-'
selves as enemies of international
cooperation.
tagonistic classes there is natur¬
ally a single policy, both domestic
and foreign. >
Anti-Soviet Campaign
policy, the policy of im* ;
posing one's wiii upon other free¬
country there neither are dom-loving nations, will not be
nor can there be classes or groups
approved by, the masses of the
interested in disturbing peaceful people. The' circles which Inspire
relations between nations, in new this policy and which stand be¬
vented German interference with Clement Attlee, that British Labor be found in a wholesome return
conflicts
and wars.
The
Soviet hind the statesmen who are pur-*
Our Navy before Manila in
1898, can never accept the Communistic to the practices and preachings of
those
followed a generation later
early Americans who in Union's position in international suing it fully realize this. So they ;
by philosophy of living.
America becoming a belligerent
Let us in the meantime defend every part of the country took a affairs in dictated exclusively by are
instigating an
anti-Soviet!
for the first time in a European our private capitalistic economy. personal interest in the civic af¬ the desire to ensure peace for the campaign. They are trying to de¬
Soviet Union by at¬
The constructive labors of the Soviet fame the
It is so far superior to anything fairs of their communities.
War.
Since the first World War, al¬ yet promised by England's demo¬ affairs of the nation may seem too people, by concern for the se¬ tributing to it unseemly actions
which- they themselves are
most every important event of a cratic state-socialism that I am not big a problem for you to tackle. curity of our country, by the de¬ of
political or economic nature in immediately worried about Eng¬ But surely the affairs of your sire to develop and consolidate guilty.
The reactionary press lies ana!
influence
upon
American home community are not beyond international cooperation for the
England has had its repercussions lish
here.
The Roosevelt New Deal standards of life.
But I am very your grasp nor beyond your self¬ benefit of all nations, large and calumniates and mons .rously dis¬
era which was hailed by liberals seriously
Yet the nation is small, and for the maintenance of torts the facts. The home and
concerned
about
the ish interest.
in this country as blazing new handicaps
foreign policy of the Soviet Union
we
ourselves impose merely an aggregation of local peace all over the world.
paths in social and political life
was merely a detailed and precise
omy
imitation of the fundamental trend
most
of social
welfare
philosophy ex¬
pressed in England in the early
twenties by such ambitious pro¬
grams as "managed money" (fol¬
lowed
by
abandonment
of
the
private ownership econ¬
I am disturbed that
people I meet are not simi¬
larly concerned.
upon our
of
government in
England
definitely affect the
trend of government here.
More
than that, as I said months ago,
England's experiment in State
Socialism will depend upon our
support.
I mean that England
financially is in difficult straits.
Striking a balance sheet, the Brit¬
ish government
debt in conse¬
quence of 2 six-year wars is be¬
will
very
yond the capacity of the country
for generations, yet by electing a
Socialist
Labor
government
pledged to take
tries
the
new
over
Handicaps
Private Ownership
Self-imposed
A
tax
on
sufficient
burden
to
which have reduced
recovery
has
added
billions to that debt.
to a
snail's pace.
In
months ago
say
where
consequence,
lhat
ous,
it
was
strong
reasonable to
the progress to a brave new
many
doubt
now
if
we
be¬
our¬
selves.
The
answer
is,
of course,
there
are
Remember
can.
we
or
hopeless situations, there are only
hopeless men.
And young men
free
from
born of defeat should
inhibitions
never
doubt
iheir
know about the
failure.
about the
We
know
success
or
success
very
little
failure of the
English effort—I do know from
personal
contact
wLh
English
The
that
trend
of
economy
trend of
cannot
things
will
government
nearly
our
in
not
as
own
much
affairs will. We
have
Cardinal
and Tabor -that 'management and
We must do
insisting that
administer
our
the
so
ourselves by
Government
laws
of
so
business
country from London, stated in a
together to attain the
speech a week ago today that "the largest productive output neces¬
most disturbing features of mod¬ sary to sustain the nation at the
ern
statecraft is that we have not
by the terms they use,
and, hot to put too. fine a point
on ity, very littler reason for be.lieving that they mean any»hing
ers
'
mean
genius of American citizenship to
solve its problems.
And theoret¬
ically
if
every
community
is
strong and prosperous, the aggre¬
gation of communities which we
But
trend
conditions determining the
of
foreign
policy
are
dif¬
ferent where there are influential
classes and groups
and
ance
whose
selfish interests
are
Indifference
Scored
with the ardent desire of all
countries.
It is
the
indifference of the
Experience has shown that re¬
actionary circles who espouse the
great majority of our people that
makes
it possible for organiza¬ policy of force and of domination
tions of minority pressure groups of some countries over others are
in a position to
exert a
to get the kind of labor laws, the often
kind of business laws, the kind of baneful influence on the foreign
trade
the
and
of tax
kind
many
and
which
among
are
our
men.
A strong
do
laws
initiative
crippling
business
regulations
price
more
nation—America—will
restore
to
the
strengthen
stability
discordant
and
world
than that world can do
for itself
or
for us.
Capable Men Needed In Politics
The
recent
cause
of
of
of
Gen¬
employees losing oneannual wages be¬
eral Motors
third
examples
their
a
strike which
stockholders
dividends
one-third
should
cost
of
convince
the
their
em¬
declare it
false light. Those,
branded
are
of Moscow."
try to
and
the truth
know
"agents
as
^
at vari¬
peoples for a lasting peace. One
cannot close one's e.yes to the fact
that monopoly capitalism is cap¬
call a
State and the union of able of engendering new forces of
States which we call the Nation is aggression. This accounts for the
contradictory
tendencies
mani¬
strong.
i
*
fested in the foreign policy of
Public
who
narrow
Court Rules States
Can Tax Govt. Machines
States
United
The
Supreme
Court on May 13,/ in a 7-0
delivered
opinion;
Justice
Associate
by
Black, ruled that States may tax
machinery owned by the Defense
Plants
Corporation,
Government agency,
their laws
regard such machinery
The court ruled
real property.
as
Federal
a
provided
policy of their countries, sapping specifically in a case from Penn¬
the foundations of international
cooperation and poisoning the in~s
ternational atmosphere.
f fx
Under these conditions it is but
natural
that
the
Soviet
Union's
of
ensuring
peace and security, of developing
good-neighborly
relations with
adjacent countries and coopera¬
tion
among
democratic powers,
should encounter the opposition
of reactionary imperialist circles
consistent
policy
in the international arena.
Flouting the true interests of
their countries, the more vicious
British and
American reaction¬
aries seek to prevent further
de¬
velopment
of
the
cooperation
among
the
democracies which
arose in the days of war against
involving
sylvania^
Congres¬
a
sman act permitting taxation *>f
property^wned by' the Re¬
real
construction Finance
(which
fense
has
taken
Plants
Corporation
the De¬
over
Corporation)
and a
Pennsylvania law classifying ma¬
chinery
as
real property.
The Court's decision stated that
Congress, in permitting taxation
of
real
RFC
"real
rules
property
had
not
property"
should
owned
and
by
the
defined
that
govern.
the
term
State
The Asso¬
ciated Press reported from
Wash¬
ington that an RFC official said
that the ruling might mean that
aggression.
policy
of
cooperation the Government would have to
out the window when strikes en¬ among the democratic powers in
pay "many millions to various lo¬
ter.
As a practical suggestion, I their struggle against the common
cal taxing units since the Govern¬
urge that each of us strive to get enemy who menaced the whole
world was a
correct and wise ment lias had abbut/$4^OO^0OJ)O<)
capable talented men to go into
politics, to hold offices and to take policy. It was supported in word in machinery in forty-six states."
and deed by the masses, the com¬
Government jobs.
For more and
more of our life's
activities will mon people, the world's millions.
The
policy
of
creating the Farrell & Carraway at
be directed by Government bu¬
reaus.
Let us try to make these United Nations organization as an
McClung & Knickerbocker
jobs well paid so as to attract the instrument for maintaining peace
of
owner are the
that wages and profits go
employee and
same,
fascist
.The
and security and thus promoting
country will you further cooperation on this basis
find a more efficient body of pub¬ was a correct and wise policy. It
lic servants than the young men has the support- of the masses, of
best.
where
I say without fear ihat no¬
in
any
organized and the millions of common people
directed by J. Edgar Hoover. In7 who stand guard over the peace.
They enthusiastically hailed the
telligent, alert, imaginative, sym¬
highest rate of employment.
pathetic to public opinion and birth of this international security
!
I don't know whether that will citizens' needs, it is
tops in public organization based on equality of
come
the
through price ceiling administration and service.
freedom-loving
democratic
Can it (Socialism or Statism) nations. They expect this organi¬
changes, lifting of controls, com¬
pulsory full employment legisla¬ happen here? Very definitely and zation to guide itself in all of its
tion or any of the numerous new very
.quickly, if our people aren't activities;by the principle of /the
labor work
the slightest idea what many lead¬
economic
It is wi.hin the
forever the truth that the interests
that.
this
and
solu¬
a
the
as
themselves think and plan for this
ultimate goal.
I doubt if they
know themselves.
The eminent
who is in
social
welfare problems.
com¬
own
find
our
English
affect
some
Griffin,
soon
ployees that there are no profit
pockets in the shrouds of Big
Business. And it should emphasize
prosperity and good
government times and full employment in this
regimentation of every phase of country by political calculations
life, save only freedom of speech or by commanding business to
and worship, is very real. >'
create jobs.
Business can only
create jobs when there is an in¬
British Offer Nothing For XJs
centive for businessmen to ven¬
j
To Emulate
ture capital in undertakings which
"*
But I. see nothing to adapt our¬ will make those
jobs.
The So¬
selves to.
Indeed, it is difficult cialist Labor Government in Eng¬
to know what the English leaders land will not show us how
to do
friends
its
to
his
of
no
see
early to
affairs
is presented in a
Tendencies Abroad
participates
of today
ability to solve whatever
nothing so far revealed in problems of public welfare their
the English trends worthy of imi¬ generation
may present to them.
tation here.
The fact is, it's too But
they must get into the fight.
I
the
individual
munity, he will
world,
can
strong and prosperous
come
six
as
industrially prosper¬
America would lead
an
large indus¬ especially
regime
in
our
government.
each
If
tion
Our
jGold Standard in 1931), socialized destroy all initiative and risk has
medicine (the earliest Beveridge not
paralyzed
our
enterprise.
plan), old age pensions and insur¬ Labor disputes in this country
ance, doles and government work- have determined the pace of re¬
relief programs which long ante¬ covery and reconversion in this
dated our initial WPA and NRA. postwar
period
and
sets
the
And nationalized telegraph, tele¬ tempo of public life.
Prior to V-J
phone and radio communications. Day, business leaders everywhere
predicted the solution of all re¬
English Government Trend Will conversion problems within a 90Affect Us
day period.
But ihey did not
So it goes without saying the reckon with the labor dislocations
trend
units of
and
In
Power
in
our
own
FBI,
as
HOUSTON, TEXAS—Baylis E.
Farrell and Joseph K. Carraway
have joined the sales department
of
McClung
First
&
National
Mr. Farrell
Knickerbocker,
Bank
Building,
served for six cam*
paigns with the 813th Tank De¬
stroyer Battery of the U. S. Army.
Mr. Carraway was
with the Army
Ordnance Department
five months.
,.
for thirty,
2814
THE COMMERCIAL & FINANCIAL CHRONICLE
The Meaning of
*
we
tContirxued
deficient
are
in
tail gradually the freedoms of all
us.
In the final analysis, it is
Citizenship
of!
both
dividual
half
today.
hearing
only that side of any issue which
the particular pressure group with
which they are affiliated wants to
present to them and they make no
a
century ago, some owners
large aggregations of capital
arid large segments of our indus¬
try, began to use that property
and the power it gave them to
real effort to hear the other side.
on
And
many politicians in
positions of leadership, who know
the facts and could help us make
the right decisions on issues, are
instead following the path of ex¬
which
pediency:
rather
trust laws restrain the free use of
than
helping to dispel ignorance,
bigotry and prejudice,
r
If we are to make our system
property to an extent sufficient
to guard against this creation of
monopolies.
Unquestionably, the
work*
every citizen must practice
what Voltaire preached when he
anti-trust laws have worked
some
hardship
on
have
said, "I disagree with everything
you say but I will defend with
my life your right to say it."
It is
curtailed
somewhat
Too many individuals
all
far
are
too
too
and vexploiting
from
apparent
recent
events that some Americans have
forgotten this fundamental
cept of democracy.
pre¬
Thomas
Jefferson, who was a
great philosopher, as well as a
statesman, is reported to have
said
"That
once:
is
I don't
government
best which governs least."
actions
our
from page 2786)
termine
attitudes
and
citizens
that
as
will
which
in¬
Thursday, May. 23, 1946
Will Bank for International
de¬
Settlements be Ended?
all-important issue.
of
create
for themselves monopolies
certain
goods
services
and
essential
were
the
to
na¬
tion's whole
economy and to the
public welfare.
As a result the
Government had to step in and
through a whole series of anti¬
business
and
freedom
the
of enterprise and initiative.
That
curtailment became necessary be¬
cause
few
a
individuals
insisted
interpreting their right to use
their property as they pleased as
a license to
disregard completely
on
the
rights and
other citizens.
Hyfron Electronics
Offered
Slock Publicly
An
underwriting group headed
by Herrick, Waddell & Co., Inc.
on May
21 offered to the public
125,000 shares of Hytron Radio &
Electronics Corp.
common stock
at $9 per share.1 The purpose of
the financing is to provide ade¬
quate working capital for Hytron
and its subsidiaries for expanding
operations.
The
company
pro¬
poses to make advances to Air
King Products Co., Inc., a recently
acquired subsidiary for equipping
a newly completed plant and for
working capital. Hytron is nego¬
tiating with the Reconstruction
Finance Corporation for the pur¬
of
chase
a
substantial
amount of
(Continued from page 2789)
Mladek,
tive
Czechoslovakian
execu¬
the International
director of
Fund:
"There is
no
obsolete
would
or
within
sorbed
the
be
ab¬
general
pro¬
gram of the Fund and Bank. It is
doubtful
that
the
of
any
would
Nations
United
conceive
ever
of
of
all
The freedom of the press had to
be restrained by laws against libel
and slander because a century ago
the
proceeds
will
be
to
used
of
directors
of
the
report, consists of a chairman, ten
directors, and
three alternates,
representing Switzerland, France,
the UK, Italy, Belgium, Sweden
and
Netherlands.
the
The
presi¬
McKittrick,
be
can
used.
There
is
no
doubt that the scope of ihe Fund
the
an
directors
American. Among
listed in
the
report
largely exceed the im¬ is Mr. Camille Gutt, who is now
portance and capacities
of the managing direc.or of the Inter¬
BlS operations. That the BIS sat national Monetary Fund. Mr. Gutt
and Bank
around
Japs
the
table
during
known.
Nazis and
is
war
wouldn't like
I
judgment
snap
with
the
to
the
on
well
pass
a
alleged
wartime activities of the BIS with
the
Axis,
but
I
believe
there
is
much to be said for
ever
of
board
Bank
following the
procedure proposed at BW. What¬
originally from the Defense
Corporation.
The balance
The
BIS, .according to the 1945 annual
dent of the BIS is Mr. Thomas H.
machinery and equipment now
held by it under an agreement of
Plant
num¬
using the BIS, where the Fund or
lease
freedoms
limited
a
ber of central bankers.*
for the
room
BIS. Its purposes either have be¬
come
meeting place for
useful
functions
the
BIS
informs the writer that he
attended
has resigned from his BIS direc¬
torship,
required by the Fund.
develop opposi¬
tion to liquidation
of the BIS,
it may be argued that the dele¬
gates to Bretton Woods had no
power to bind their governments
as
If there should
have performed in its early
years can certainly be better car¬
ried out by the Fund and Bank."
and
Plan."
War
may
never
meeting of the BIS and
a
that its
resolution
about the
BIS in any case was nothing more
than a recommendation. Reasons
retire bank borrowings and gen¬
publications insisted on in¬ eral corporate
for opposition to the BIS' liquida¬
purposes.
Liquidation of the BIS may
terpreting that amendment to the
advocating no government at all
tion are said to include the argu¬
Hytron, under its present man¬ pose some
legal problems, but
as
an
ideal.
That
would
be Constitution as granting them a
ment that ihe BIS is needed as a
agement, has been in the radio Washington lawyers see
nothing
anarchy.
He was far too intelli¬ license to tell any kind of lies and tube business from the
central bankers' bank, an argu¬
beginning insuperable about them.
Art. 55
gent and had thought too much malicious slander about any in¬ of its commercial
development. of the BIS statutes provides for ment which seems to be taken
There are dangers in
about government to make that dividual.
The company was the originator
care of by the Bretton Woods
plan.
liquidation
by
a
three-fourths
error.
What he meant was that such limits, and there have been
of Bantam or GT Glass type of
also
some
countries
majority of the General Meeting. Possibly
too many laws and rules for the some instances where the libel
tube which is now one of the two
which have claims against Ger¬
But, the article adds, the BIS
slander
laws
conduct of individuals laid down and
have
been
most widely used types of receiv¬
"shall not be liquidated before if many under ihe Young plan may
by government inevitably tend to abused, but they became neces¬
ing tubes. During the war Hytron has
discharged all the obliga¬ argue that to liquidate the BIS
curtail our freedoms.
It is very sary to protect the freedoms and
produced over 2,000,000 tubes of tions it has assumed under the is to admit formally that World
often
rights of all individuals.
believe that Thomas Jefferson
was
some
necessary for government to
step in and make rules which
cur¬
tail the freedoms of powerful
in¬
dividuals, in order to keep such
individuals from using their power
to
curtail
the freedoms of
all
of
us.
I think the
point Jefferson was
making is that for the democratic
system to succeed and avoid be¬
coming bogged down in govern¬
ment rules and red tape, every
citizen
should
in
the
final
anal¬
four
Any individual or group which
denies any restraint on his or its
rights and freedoms sooner or
later
runs
into
trouble
the
and
Government has to step in and
apply restraints. We have an ex¬
ample of this today in the lead¬
ership of some great labor unions.
The right of unions to strike, to
right the leaders of great
unions carry it to
lengths that they seriously
mands
ditions, has been affirmed in
doms.
That
paradox,
rights and free¬
may
but
let's
sound like
discuss it
wages and
on
laws.
But
when
in
working
con¬
our
of that
Salem
a
and
such
and those of Air King are located
in Brooklyn, N. Y.
powerful
affect the nation's whole economy
*
Freedom, under our system, is and abridge the even more sacred
hot license to do absolutely as one right of all citizens to work, then
which
but
freedom
under
And
even
these freedoms
enjoyed under law must be
cised with
a
law
applies equally to all cit¬
izens;
some
ucts
a
little.
pleases,
special electronic equipment.
The company became the major
source
of supply of these tubes
for equipment manufacturers
throughout the nation.
Hytron's net sales amounted to
the exercise
concertedly withhold their labor
in order; to secure from employers
attention
to
grievances or de¬
ysis be more concerned in guard¬
own
and
$5,527,257 in 1945. Air King Prod¬
Co., Inc., and Royal Wood
Products Mfg. Co. Inc., has con¬
solidated net sales of $6,758,443
for the fiscal year ended July 31,
1945, and $2,129,228 for the five
months ended Dec. 31, 1945.
The
principal plants of Hytron are in
ing the rights and freedoms of all
other citizens than he is in exer¬
cising his
types used for regulating
voltages in radar, communications
exer¬
restraint and with
due
they have gone too far and it is
time for Government to put some
limits on the rights and freedoms
of
this
particular
leaders.
coons
Like
leaders
into serious trouble.
freedom
its
ty¬
the
of
regard for the rights and
freedoms of all others or we run
group and
the industrial
past century,
the
of labor must learn that
and
Newburyport,
Mass.,
Giving effect to this financing
Hytron
will
have
outstanding
573,835 shares of
common
stock.
The
following
which
into
being
conference
the BIS and shareholders" be
with restraint, to the end that we
do not interfere with the
rights
and freedoms of all our fellow
citizens.
'
.
f
Those of us who own property,
for instance, have the right under
the
Constitution and
our
laws to
in
a
democracy
is
there
the
was
BIS
was
there would be any
thought
that
disagreement
no
set
very
foundation of
society.
I
our system of
have stressed
tonight
the obligations and duties of cit¬
izenship because it seems to me
that a proper recognition of that
side of citizenship at this time is
very essential if we are to safe¬
about the institution's dissolution.
In fact, during its early years the
BIS
was
looked
upon
as
in¬
an
use
that property as we please
guard freedom itself.
Unless the
subject to the r'ght of the Govern¬ majority of us exercise our
rights
ment to take it over in time of and
freedoms with proper re¬
need and for special purposes; straint and due
regard for the
However, it is essential that we freedoms and rights of all other
exercise
that right with
due
gard to the rights of others
spon
re¬
or we
get into trouble. A little over
Gasket & Manufacturing Co. will
be
162,680 shares of capital stock
outstanding out of an authorized
issue of
320,000 shares.
Sidney
the
securities
fices
at
control
of years.
cur¬
Jacobs
50
is
engaging
business
Broad
from
in
unrivaled
resources
sonnel and material for
*Cf.
in
"Chronicle"
the
Xof
per¬
studying
Heyden Chemical Pfd.
An
underwriting group headed
G. Becker & Co., Inc. on
May 22 offered to the public 90,by
A.
000
shares of Heyden Chemical
Corp. 3V2% cumulative preferred
stock, Series A at $100 per share.
Heyden will apply the proceeds
the sale to the redemption
outstanding 38,000 shares of
4%
cumulative preferred stock,
Series A, and the 10,000 shares of
4% cumulative preferred stock,
Series B, and prepayment of a $2,500,000 promissory note given in
connection with the corporation's
recent
acquisition
of
100,006
from
of the
shares
of
stock
of
the
Class
B
American
The balance of proceeds will be
to working capital in re-,
imbursement for cash payments
in
connection ' with ; the.
acquisition of American Potash &
made
Chemical ;Class
plant
B
shares
having been acquired from
Giving
effect
to
financing
and
for 1 share
cal
the
crammed
with
research,
thicker and
has
become
the
products
have
of
grown
thicker, the BIS itself
little
more
than
common
the
•
the
recent
1945, the BIS annual reports,
a
for!
the manufacture of penicillin, the
though, with the exception of fis¬
economic
number
and
Princeton,: N. "J.
near
the U. S. Government.
is
&
added
latter
organization
of¬
a
common
Potash
Chemical Corp.
whose
economic
of
A. G. Becker Co. Offers
and meeting the needs of a world
Street, New
formerly with
City. He was
Stryker & Brown for
In
March 28, 1946, the article, Bank
for International Settlements.
History has dictated otherwise. Al¬
York
activities and to
has
undergoing profound changes...
Sidney Jacobs in N. Y. C.
citizens, then Government will
have to step in more and more to
our
,
Upon: completion of this finane*
capitalization of
Monroe
ing
dead.
are
it must be re¬
called that ihe United States still
up
not
,
reparations
connection,
re¬
ferred to the tribunal provided by
the
Hague Agreement of 1930.
A group of underwriters headed stitution of great future
promise,
by R. H. Johnson & Co. on May 17 carrying out economic and finan¬
offered to the public 72,000 shares cial stabilization functions which
stance the right of free speech license.
gu^n+eed in the first amendment
All of us recognized during the capital stock, par value $1 per had been advocated long before.
to the Constitution. The best way recent war that there is one
pri¬ share, of Monroe Gasket & Manu¬ Primarily, of course, the BIS was
for me +o safeguard my own
right mary
obligation
of
citizenship facturing Co., Inc., a New York European in character and pur¬
to freely express my views is to which comes before
The
price to the pose, although it was expected to
any rights or corporation.
mpkr srre that every other citizen freedoms.
That is the obligation, public is $4 per share.
Other un¬ play an important part in the re¬
enjoys the same right and op¬ if it becomes necessary, to defend derwriters are: Grimm & Co., R. construction of China and Russia
M. Horner & Co., and O'Connell and in the general restoration of
portunity to express freely his our
country
and
our
system
v>ws.
If I insist on exercising against
currency
stability through the
any enemies.
It seems to & Janareli.
rry right of free speech in a meet¬ me that obligation of citizenship
Proceeds from this sale will be gold standard.
ing by taking all the time to state is just as important in peacetime used by the company to make a
In
1933
the
Midland
Bank
rv rWh views and
talking.so long as it is during a war. Now it is a down payment of approximately criticized the limitation of BIS
that no one else has an oppor* slightly different obligation, the
$27,500 on the purchase of a new dealings to gold-standard curren¬
tunity to talk and present his obligation to study the great is¬ building.
It
also
The balance will be cies.
suggested greater
Y'ews, then I am making a mock¬ sues facing our country and to amortized over a
period of ap¬ representation of industry and
ery of the right of free speech so try to decide them intelligently,
proximately ten years. The com¬ commerce on the BIS
board. But,
far as all the other participants not on the basis primarily of how
pany further plans to build and
in that meeting are concerned. If they affect us
individually, but as equip in this building a foundry with changes in these respects,'the
all of us Persisted ill that sprt of to how they will in the long run
and machine shop.
The balance Midland Bank thought 'that the
attitude, then very soon all free¬ affect the future welfare of our
of the proceeds of the issue will BIS was
"likely to fill a role of
dom of speech
would he Tkj* country and our system.
be used for addition to working
steadily increasing importance in
uidated.
The same principle ap¬
I believe very deeply that the capital and the elimination of a
plies to all our other rights and
the world's monetary affairs, .v..
rights and freedoms and dignity loan of $50,000 to Smaller War
freedom.
We must exercise them
Its potentialities are immense. It
of the individual citizen are the Plants Corporation.
i ;
Take for in¬
I
this
birth to the Young
1929, and subsequent con¬ keeps on the books its World War
ferences at the Hague and Baden- I war debts.
Baden. Its primary function was
Perhaps, in the end, the pos¬
to facilitate reparations payments. sibility of opposition to liquida¬
But today no one expects World tion of the BIS will prove ground¬
War I reparations to be revived. less and the bank, age 16 and
Lawyers will have to decide by prematurely stunted, will quietly
whom and how the shares of the slip away into the limbo of lost
BIS originally owned in Berlin, hopes. Now, when we are making
Rome and Tokyo will be voted. financial arrangements scheduled
What happens in the event of a to run 56 years, or into the next
dispute
over
liquidation
also century, it is interesting to recall
that the Young Plan by its terms
seems to be a matter for
lawyers
at birth had
approximately the
to
determine. The BIS
statutes
same
life expectancy.
provide that "disputes
between
gave
Clearly,
&Hfg.
Stock Publicly Offered
came
Paris
Plan in
when
Monroe Gasket
BIS
the
present
corporation's
split
up
of
stock, Heyden's out¬
standing capitalization consists of
the
stock
90,000
shares
of
preferred
being offered and 1,181,595
shares of
common
stock, par $1.
Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
Prices and Rents in Months Ahead
(Continued from page 2785)
terials used for war
equipment.
Eventually
have to pay these
prices through taxes. I wonder if
you realize that more than a third
of
the entire cost of the first
World
War
prices of
the
we
so
going
because
used
had
we
up and up
in
the
buy
to
—
the
Government
full
share
to
keep increases in manufac¬
prices just as small as pos¬
and to keepgthem from af¬
fecting too seriously the prices
turers'
of
should
sible
that you pay in the stores. How¬
its
take
responsibility
for
ever, some
adjustments
necessary
in order to insure that
f
On
top
much of
of that, the quality of
clothing has become
all the time. For
example,
The records of
copper
prices
almost
doubled and steel
plates used in
ships and tanks more than tripled.
Well, by May 1920 the prices of
food, clothing and everything else
finally got so high that people
price control on
house-furnishings is certainly not
good either. Fortunately, clothing
and
house furnishings
together
take only about one-fifth of the
average family's budget — unless
you are
a
returning serviceman
with
full wardrobe to
a
would
we
buy. So
the increases there have not been
lost their homes, their
jobs, their
farms and their businesses in the
living. Moreover, during the last
pires
few months we've gotten a better
from
grip on these prices. And I really
think, if we have legal authority
to keep ceilings on these things
after July 1st, that we can protect
you
against any further serious
price rises in these fields.
ing
Increases
Since
1939
Now what exactly has
happened
prices and rents in this war
to
period
when
a
—
the
period, by
inflationary
the
way,
surprise
the
to learn
you
larger
part
of
serious in the over-all cost of
that by far
increase
the
notice today took place before
there was any really effective
you
price and rent control program.
Let me explain that.
Rising prices and rents
and
But
would
with
war.
here
in
before
the
we
years
1942
to
rise
States
long
ago
entered
1939
From
war.
began
United
actually
that's
—
right
—
the
seven
through
on
the
trols
have
pended
first
to
and
more
more
rapidly. By early 1943 food prices
had already risen 53%.
Clothing
prices were up 28%.
begun to increase.
Congress
had
control law in
Rents
had
passed
price
a
1942, but the Gov¬
really have the au¬
the machinery and the
experience it really needed to con¬
trol
prices until April, 1943 —
more than 3 xk years after the war
thority,
in
Europe.
So, now — let's see what has
happened to prices and rents since
our
whole present system of
trols
years
test
con¬
brought to bear — three
ago. That is the only fair
was
of
people
whether
have
not
or
done
we
as
a
reasonably
good job of heading off inflation
in this war period.
The other night at home I sug¬
gested to our visitor that she make
mental
a
note
of
,;a
the
prices
she
pays the next time she goes to
the store. For example, a loaf of
bread is no higher than it was
three years ago. You pay the
same,
or
just about the same, for most
of
the basic
foods
—
your
milk,
lifted
up over
or
sus¬
example.
night. In fact,
Or
of
these
or
rentals
The
take
—
for
houses
stores
increases there
been
a
scandal. I've repeatedly urged that
the Government be given the au¬
thority
to
put a stop to them.
authority has been with¬
But this
held.
crops
good
or
depend¬
bad the
lately
I
know
hearing
crease
on
about
this item
have
you
price
a
that
or
in¬
one.
And I know you've been wonder¬
ing what effect they're going to
have on your cost of
living from
out.
on
For
after
the
first
V-J
Day
5
or
6
months
continued
we
to
Now,
hold prices
generally pretty well
in line.
But then, beginning in
Mar'ch,
housewife
every
knows
food takes by far the largest part
of the average family budget. So
it's
important to your over all
living that food prices have
been pretty well kept in line dur¬
ing the past three years.
The next largest part of the
average
family's
expenditures
goes for rent. And if you live in
had
we
increases
to
allow
particularly
—
and
various
some
auto¬
kinds
of
on
appliances.
Most
of
price increases had to be
in order to take care of
these
given
are.
higher manufacturing costs. And
in many cases the
higher manu¬
facturing
costs
resulted
from
necessary increase in wages.
cost of
an
—
area
and
rented
chances
still
that is under rent control
in
the
three
are
paying
years
20
house
same
to
the
1
ago
—
that you
same
you
the
are
rent.
Clothing Prices
When it
to
clothing prices
the record is not good. Clothing,
with all its different types and
styles, has always been a problem.
If we had rationed it early in the
war — and placed more effective
controls
comes
on
the
use
of textiles—I
we
kind
reach.
why rents
But let me
emphasize that all of this depends
on the kind of price and rent con¬
trol law Congress passes within
should
see
go
any reason
at all.
up
the next few weeks.
So
far
the
tion.
When
American
look
I
China and France
Prices And
the
factories
war
stopped
Wages
ended,
working
they
taking home almost
during the war.
really crippling cut for
a good
many families. So the Gov¬
ernment allowed wage rate in¬
creases
that
would
at
least
par-,
tially cushion that shock.
However,
creases,
with
in¬
the average worker's
pay
check is still around, 15% smaller
than it was during the war.
Believe me, we've worked hard
tion of fathers and youths in the
19-year-old groups.
May 9 the Senate passed
without debate or objection a res¬
olution,
to
extend
the
draft
briefly until July 1.
The House,
won't let the
thus
presented with the need
consider the-Senate measure
alternative.
an
Feb. 15 to the
to
J.
—
Edgar
F.
Widin, member of the New York
Stock
Exchange,
and
Roscoe
L.
Strickland will form Strickland &
with
offices
on May 16: "It is to be
that before July 1, wheri
the
present
extension
expires j
the Congress will extend Selec¬
hoped
tive Service for
Senate, it approved
that
induction holiday until Oct. 15
by a 149-127 vote and ordered a
ban on teen-age inductions
by
195
count
of
Press
advices
96.
to
at
760
Broad
du Pont & Co.
of
Francis
I.
a
in a form
nation's re¬
year
the
meet
quirements."
Wallace Points Out
Associated
from
j
Washington
May 11 stated that Representative
Sheridan (D.-Pa.), who blocked
House action on May 10 on the
(Continued from page 2789)
Senate's stop-gap resolution for credits. We have contributed gen*
continuing the draft six weeks be¬ erously to UNRRA, we have en¬
yond its May 15 expiration date, larged the capital of the Exporttold reporters that he would offer Import
Bank,
and
we i have
the teen-age amendment on May joined
the International Mone¬
Foreign Trade Needs 1
13
when
the House planned to
the temporary measure.
take up
The
Associated
Press
tary
Mr.
further
i
amendment
>
for what we sell to them. ;v
This two-way trade between our*
selves and other countries willenrich us as well as the other na*i
tions,
in
practice,
reach it
remove
To
2. A prohibition against draft¬
ing 18 and 19-year-olds and a ban
against drafting anyone over 30.
Acceptance by the Senate on
May 14 of the legislation adopted
by the House was followed by the
President's signing of the meas¬
ure,
reluctantly;
according
to
Washington advices to the New
York ''Times," May 14, by Wil¬
liam S. White, the White House
Press Secretary, Charles G. Ross,
stated that the President regarded
it as "a bad bill," but preferred it
B.
Forward any such registrant for
physical
examina¬
Order any such registrant to
re¬
Forward any such registrant for
induction.
!
?
of breaking down
inter-
the United
Kingdom is ratified by
Congress, we can look forward to
period of cooperation toward the
objective
of
multilateral
trades
among all nations. If the loan is
not
ratified, we can expect a
continuation of the sterling bloc,
export
subsidies,
import
quotas,
cartel marketing agreements, high
tariffs, and the other barriers that
have restricted international trade
drastically during the past two
decades.
A
healthy
these
foreign trade with1
eliminated or
restrictions
greatly
reduced
our
own
and
that
will
flourish
democratic
tions will have
a
that
mean
will
economy
our
institu-!
much improved
chance for sound health and
selves
growth.
.
vig¬
Our duty to our¬
and to the world is to co-'
operate with energy and in good >
faith
with
other nations — and,;
with
our
final goal clearly in \
mind. This goal is nothing short jof the
for
achievement of abundance
ourselves
and
for
others
so
Forward any such registrant to
work of national importance un¬
der civilian direction.
sities
>•
^
that death from famine, suffering
from want of the primary
directive
said,
however,
May
15 the
President
au¬
and the wholesales^
life,
of
destruction
war
can
be
re¬
71*^
Manage
Lewisohn, Arbitrage
Selective
Service
legally
alive however crippled.
Draft
headquarters spokesmen, accord¬
ing to the Associated Press in a
Lewisohn & Co., 61
New
York
dispatch,
York
Stock
City,
Exchange,
bitrage
be met consists of about
announce
in
a
"
charge of their Ar¬
department.
He
wasry
formerly with A. L. Stamm & Co«J
r
-
New
that M. Aaron 4s now associated
with them in
*
h
Broadways
Members
-
"for
M. Aaron to
keep
can
of
moved from the world.
thorized the induction of childless
*26 through 29 in order to
59,000 from 20 to 25 years old, of
which perhaps 50% are unfit
phys¬
-
neces-J
men
Washington
'
this end, we have proposed
an
International Trade Or¬
orous
pre-induction
thai--
,
a
so
examination.
s
national barriers to trade; and if
the pending loan agreement with
Director of Selective Service, or¬
dered the boards not to take any
Order any such registrant to
report for pre-induction physical
hope )to
ganization be established for the
Hershey,
following actions with re¬
spect to a registrant who has not
reached his twentieth birthday:
be
But we can make
of the barriers
some
purpose
same
of the
will
cannot
we
soon.
exist.
now
that
Lewis
nation
attempts,
through
international
discussions, to arrive at recipro-,1
cal trading agreements that -Mil
fathers.
Maj.-Gen.
each
to
produce and ship the
things it can produce most eco¬
nomically. This is the ideal goal;
previously
The
since
enabled
adopted, separately by the House
on May 13 and approved
by it the
same day in a single roll-call vote
of 213 to 154, provided for:
L A ban against induction of
extension at all.
vi-
to pay
the stop-gap legislation with
by a vote of 280 to
no
International
long run, we must make
it possible for other nations to f;;
send us goods and raw materials
amendments
to
the
In the
tion of their present school year,
late this month and early in June.
He said that he saw no need for
The
and
velopment.
Sheridan
explained that a
ban on teen-age inductions would
protect many of some 80,000 high
school and college students hold¬
ing deferments until the comple¬
84.
Fund
v
Bank for Reconstruction and De¬
reported:
calls
office
will
a
said that
Street, as of June 3rd. Mr. Strick¬ under the new setup the pool of
land was formerly manager of the eligible men from which monthly
Newark
:
conference
as
an
On
*
N.
registrants may be available for.
induction.
Even before passage
legislation prohibiting the in- i
on
April 15 sent legislation ex¬
tending the draft law until next
The
Form Firm in Newark
the 26 to 29-year
additional ; 13,000
an
of
When the House
that the liability of persons of 18
or
19 years old to register re¬
mained unchanged.
Strickland and Widin
With
added
duction of 18 and 19-year olds,
having passed basically different Selective Service was way behind
and more complete legislation to
in meeting Army calls for men;
t
cover
the
Act's extension, was
President Truman told his news
port for induction.
NEWARK,
olds
On
people will summon all our
courage and good
sense
in the
dangerous weeks and months just
a
we
ically.
18 and
tion.
Widin
those
even
postponing final consideration of extension of
Service Act, expiring May 15, until
legislation com¬
manding more interest of Senators had been disposed
of, Congress
during the past week passed a measure, designed to serve as a
stop¬
gap, extending the draft until July 1. President
Truman, a few hours
before the expiration of the
Act, signed the measure hurriedly passed
by Congress, banning the induc¬
for these four difficult years. But
I have a lot of faith that we as
lost in this last round.
received
was a
war
over¬
one-third less pay each week than
That
in this
victory over inflation — the fight
to hold prices
and rents — be
many
were
Italy,
many
time. Thousands of workers were
transferred to lower paying jobs.
The result was that a great
people
—
havoc
in
period — and in our own country
during the last war — I think we
have a right to be thankful.
But unfortunately, our fight is
not yet won. Almost overnight we
can lose the ground we have held
ahead—and that
When
the
at
inflation
by
view to
a
advices to the 'Times" said:
people
have held the fort against infla¬
wrought
With
the Selective
On May 13 the House voted to
of cooperation
authority—what
see
ahead for food prices?
get good harvests this sum¬
I
Signs Bill Extending Draft to Jiily l $
Teen-flgers Barred, 26 to 29-Ye2r-0lds Called
pass
adequate
I don't
Now,
been
now
that
President
their induction.
kept roughly where they are
today. That is, of course, if. we
get from Congress authority to
continue subsidies at least through
the critical period.
What about clothing? If we can
keep production moving up
rapidly
during
the
next
six
months, I think you'll see a lot
more
better quality garments in
the stores at prices within your
offices.
and
have
the
with
other
be
lots
household
how
If
that
and
natural
up
mer, I think our food supply —
and therefore, food prices — can
important than all
more
—
of these will vary a little
upon
do
today. Permanent
waves that cost $5.00 Before the
war often cost $15.00
today.
mobiles
ing
With
—and
dollar
a
months,
a
What To Expect
used to cost 40 cents cost 75 cents
or
little advantage
every
never
Haircuts
more.
or
difficult
restrain
to
fellow may seem to have.
on
legal authority to set
price ceilings. Take movie tickets,
for
example.
In
some
places
they've gone up from 40 cents to
dollar
these
have
workers
we
get
men,
Until
tendency to try and catch
the
meat, cheese, cereals and most of
goods.
You pay about the same for
most of your fruits and vegetables
—although, of course, the prices
your canned
we'll
again.
We know, too, what has hap¬
pened to the prices of things on
a
business
housewives.
through
for
which the Government has
even
farmers,
and
con¬
far that ceilings had
so
put back
given
ernment didn't
started
be
been
oranges,
—
price
crucial
a
tion. And we'll need the coopera¬
tion of all groups in the country—
We do know what has happened
They shot
they went
then
taken
were
in several cases where
prices of nearly every¬
thing began to go up — slowly at
—
controls
to
law after
off tomorrow.
Prices
if
authority
our
effective
scarce
be
if
if we have a really
price and rent control
July 1st, it isn't going to
be easy to win the final victory
in
this
fight against inflation.
We'll need adequate funds for en¬
forcement against the Black Mar¬
ket and for general administra¬
high
—have always gone hand in hand
.
—
the
decision.
prices and rents would be today.
Your guess is as good as mine.
Rut if ihomes for rent are as
the inflation that goes with them
.
in
take
Congress is facing
now
in your town as they are in
most, it doesn't take much imag¬
ination to estimate what your rent
.
will
keep the lid on your rent and on
the* prices you pay is weakened,
your cost of living is going to go
up. I know you realize that right
Control
controls at all? How
no
protection
Naturally,
Have you ever wondered what
would have happened if there had
been
on
now.
months ahead.
What Would Happen
Without
June 30th — six weeks
And Congress is decid¬
what form your price con¬
trol
pressures
have been far greater than
during
the last war. The cost of
living
has gone up, all right. But it
may
pos¬
which is up before Congress right
now. As you know that law ex¬
as
Price
heaviest
Then, in addition, we have had
to make some upward adjustments
in the prices of grains, in order
to get more grain for shipment
to starving people overseas.
What happens from here on de¬
pends chiefly on what happens to
the price and rent control law
omy. And thousands of Americans
black depression of 1921.
the
get
were
sible production of the things we
all want and need.
our
shoddier.
were
couldn't pay them
any more. The
bottom dropped out of our econ¬
could have
kept prices more closely in line.
it is apparel price increases
have been sharp and serious, and
that.
war
we
As
many raw materials—
materials
weapons
about
came
convinced that
am
2815!
similar capacity.
*
^
-.
j*
THE COMMERCIAL & FINANCIAL CHRONICLE
2816
(Continued from first page)
obligations to our own member¬
ship.
I want to be sure that in
the
two
next
years
will
we
be
It is within our power
make it available not only to
power.
to
ourselves
but to
and
man,
every
in is
of : living for
fight for a full life, a life of en¬
the Amalgamated
Clothing
Workers of America. joyment, of satisfaction for our¬
able to arrange a higher standard
the fight we are engaged
so
a
-
You know that the only way you
can do it is through a concept of
generations to come.
selves and
powerful
cooperation with the rest of the nation in the world, and again it is
our obligation and it is within our
movement.
There is no industry or organi¬ power to make the greatest con¬
which
zation
do
can
than
more
conditions in the country will per¬
mit
it
to
and
do,
now
have
we
commitment, together
with the; 'other organizations of
the CIO, to bring organization in¬
to the South.
It is a great thing
•and. we must make good.
I am
sure we will but remember that
a resolution
itself does not ac¬
greater
a
complish anything unless it is im¬
plemented. You know it, because
been
that has
experience in
our
past.
years
We have even greater commit¬
ments than merely the organiza¬
tion of labor in our own country.
Never in the history of our na¬
tion has
what
so much depended upon
particular generation will
a
what it will
do and
to the
mean
country.
It has been stated that
this generation has an enviable
We are today the most
world peace, to the
creation of friendship and cooper¬
ation instead of strife.
We must
tribution
Destiny makes a great
us.
Franklin Delano
making
■history, and on what we will do in
claim
upon
world.
a
for political
great test. We
program
action that will be
a
not motivated by hate; we are
are
not motivated
by peeves. We must
constructive
concert with other Americans will
have
statesmen
in
the Congress instead of petty
lit¬
This will determine what kind
of America
children
to-Our
the
and
genera¬
In these times
tions to come.
we
think of what kind
ought to
America
going to leave
are
we
we
of
want to live in. What
tle
we will make
obligations right here.
bigots so that
good
on our
It is within the power of
provide for their
to
conditions
America
people
own
beyond the dreams of
generations past.
kind of country are we living in?
What does America mean to us?
*4 It is too bad that too
themselves
little
a
many
but
not
the door of the atomic age.
to
of
give
think
we
that
question in
no
maintain
we
we
what
we
expand that.
I
using phraseology in
talking to you. I have been priv¬
ileged to go abroad and have been
privileged to watch closely what
is going on in the world.
I have
been a participant in the affairs
of natrons in one/ place or another
during the two wars.
We enjoy freedoms. Yes, these
things are being challenged time
and again by the reactionaries,5
but to enjoy the kind of freedoms
we
preserve
want, we will have to
them and expand them.
A great many people in the past
have given their lives to making
it possible for us to have our in¬
dividual freedoms such as free¬
dom of
worship.
higher standard of living so
no child will cry for food in
the midst of plenty.
We want to
have
America
an
where
in¬
the
ventions of science will be at the
disposal of every American fam¬
ily, not merely for the few who
can afford them; an America that
have
will
willing to give of themselves
make
to
our
aspirations and
our
hopes realities, and they are to¬
day.
Delegates,
cannot
I
impress
much that this is
going to
a
greater,
better
America, a greater, better world,
because we will accomplish this
by the cooperation of the people
here
with
labor
organizations
upon
too
be
you
abroad.
it and
we
will
face
task
our
and
proud
do
that
back two years from
of our contribution
give ourselves to it
can come
now,
so
new
living, we enjoy a higher standard
living than many people enjoy
of
in the world today.
This particu¬
lar generation has the
obligation
to make sure that we are not
go¬
ing to go backwards but that we
go forward.
and
walk
can
women
do
not
power of government placed at
the service of the people instead
only in the control of the few
privileged, selfish, greedy people
who do not accept the right of the
man
common
stand what
do
and
under¬
not
democracy means.
Fortunately for us, in other
countries they have to fight to get
the weapons to be able to exercise
their best judgment.
We have
those weapons, the weapons that
are needed, in the ballot box.
The
,
is the great educational
campaign to make every Ameri¬
can understand what is at stake.
weapon
When we do it,
tion of what
there is
we
ques¬
no
will do about it
because our program
is not
a
class
must
be
leisure.
There
We have the power to do it be¬
represent the aspiration
cause we
the
of
good
men
and women of
they are the
overwhelming majority. We can
only be defeated when there is
confusion, when there is lack of
understanding and lack of inter¬
est; and that is why the opposition
is all ready to start a campaign
with only one purpose, to spread
our
,
no
reason
why all
Americans should not enjoy vaca¬
tions,
not
for
weeks
but
for
months.
we
There is
no
reason
why
should not have complete se¬
curity for every American. There
should be not a single person de¬
prived of the kind of things that
make for a good life.
We know
tha
confusion.
Now,
1944.
we
A
syndicate of 58 firms, headed
by Van Alstyne, Noel & Co. and
Kobbe, Gearhart & Co., Inc., is
offering today to the public 425,000
shares
of
class
A
common
stock, with a par value of 10 cents
a share, of Allen B. DuMont Lab¬
oratories, Inc. The stock is priced
at $11 a share.
Upon completion
of
this
financing,
proposes to
the
company
expand principally in
the fields of television broadcast¬
ing and the production, assembly
and
distribution of television re¬
ceiving sets and television trans¬
I
know
we
4,4
The question of hospitalization
,■
for all of- the people is within our
you
can
the
meet
and other Americans will do
what is required of you as good
citizens.
Remember that at stake
is the peace of the world.
The
thing at stake is whether
our chil¬
dren, our grandchildren and the
generations to come will look
back to
as
is
rule.
what has happened
now
just
one of those things which
the result of ignorance.
And so, delegates, in closing the
session, I want to say to
you
the
not
or
have
we
I wonder if there is
happier
a
The spectacle
rage, is the powerful labor leader
capitalist
or
that
the
has forgotten
function of his
who
proper
is to do good, so we might
power
all be happy.
Power Politics in United Nations
I
very little merit in the
the delegates of the United
see
way
Nations
to*
seem
the
around
power
be
throwing
of
their
re¬
spective nations. As far as I have
been able to judge their actions,
it seems that each spokesman has
taken the attitude "we can't af¬
ford to let this or that nation get
of the world than
more
rather
than
use
we
their
have,"
respective
to see how each can make
nation, and help each other,
produce a better way of life as
rival equals, rather than as domi¬
neering tyrants.
I see very little merit in the
way
our
various Governmental
department heads seem to take
power
his
the attitude
that
this or that de¬
partment shall dominate the re-'
conversion program, and that if it
doesn't
nation
the
will
go
to
ever
an
in¬
Liberty and Freedom of Action
position to direct
The idea of equality also in¬
and rule today, who knows he
is
now
in
that
position,
and volves another great idea, name¬
who feels that there
is happi¬ ly, that of liberty or freedom of
action.
That
ness in ruling with all the chaos
aggressive young
and confusion that seems to be man who preached the idea of
equality, laid great stress upon
running rampant throughout the
dividual
in
a
the
truth
that
fact
made a
man
company's
includes
program
to be as
seem
We Are the Greatest Aggregation
on
Oct. 21, 1935, in Delaware.
Its
President, Dr. Allen B. DuMont,
the
introduced
domestic
first
cathode-ray oscillograph.
the
war
During
the company added
equipment
devices
and
in
other
Funded
radar
electronic
cathode-ray
which
to its products.
debt and capitalization
of the company, upon
the issuance
must
freedom
this
to
few,
a
by
be
whose
American
divined.
democracy
freedom to all the
people and entrusts to all of us
the sacred trust of allowing each
imputes this
individual the greatest
possible in his
amount of freedom
in
America,
have
been
; 1;
called by journalists the greatest development and growth. The idea of equality and free?*
aggregation ! of
do-gooders
the
world has ever seen.
Well, in dom spread throughout the world
all
the petty few who
view of the fact that America is defeats
the envy of the rest of the world, would make themselves the selfdoes
that
not
It
tle
seems
a
to me
difference
thousands
I do
that doing appointed rulers of society.
not believe that freedom of action
big way?
means license to do any and every
that there is lit¬
prove
good pays off in
of
between
young
emigrating
now
to
the
women
way
are
America and
emigrated
men
America
to
lieve it means the ability to per¬
form each and every act
enable
both
must
and thus be
chance for
men
into
have
everyone
it
our
a
tent
some one
and
that
is
and
of
the
natural
me
brother's keeper, to the ex¬
of the simple necessities of
happy the while others
hungry, unclothed or un¬
Painting the whole town
are
"red"
with
full
production
and
and
shelter, defeats the greatest fears
distribution of food, clothing
and needs of people
and enables men to
con¬
and act for the
everywhere,
think,
plan
simple comforts of
living, over and beyond necessi¬
ties, that make for a richer, a
fuller and thus a happier way of
that there
is little difference between labor¬
ers
dic¬
regard ourselves as
housed.
genial union of the two to become
parents.
Also, it seems to
we
cannot be
rather
natural, since the equality of men
and women springs from the co¬
equal function of married life,
namely, of one being the homeprovider and the other the homemaker
do good
happy.
life, namely, food, clothing and
shelter,
because
certainly
men
have been talking women
since the earliest days of
civilization,
that will
individuals, both sin¬
I believe freedom of action
tates that
an
happier life.
might say the
talked them into it, but after
equal
all
It seems
thought
that
offered
us as
gly and collectively, to
sev¬
eral hundred years ago.
America
humanly possible, but I do be¬
act
the way that thousands of young
men
products.
that
say
entrusted
whims the individual's activity is
and every
of "Do-Gooders"
We,
the invention of new
incorporated
nothing unless they
directed towards doing good.
are
Certainly
The company was
believe that
us
seclusion away from cameras, re¬
porters and the telephone. Money,
power to direct and rule, and the
public's accolade of greatness all
In addition,
mitting equipment.
the
tubes play a part,
shall not go back to
for
all grow red with
us
Alien OuMorit Lab.
country,, and
challenge even better in 1946 if
is
great
capital
pieces, rather than to use his pow¬
stopped to think about it.
It is er to analyze just how his depart¬
that for which we
are
living. ment fits into the national picture
Some of us believe that happiness as a whole and give us a mini¬
is money.
I know many men who mum of regulations that will af¬
would give all their money to be ford a more equalized opportunity
healthy. Some of us believe that and a happier state of mind and
happiness is power to direct and way of being for the people.
whether
provement of all its products and
ing is left undone.
create
unemployment.
It
substituted
by more
the
and
that makes
free, and that the exercise of free
happi-,
will was absolutely necessary to
ness
consists of being what the
the full development of the indi¬
world calls a "big shot."
I won¬
vidual and the preservation of the
der if there are any so-called "big
shots" who do not pine for quiet dignity of the human person.
Russian Communism seems to
to¬
of
.
We have to make sure that our
terrific expansion and production
denied
been
had
Some of
vide for us, but we must have the
things.
No matter how much we are not
with our standards of
satisfied
that
labor
life for all of us.
world.
Ours is not a selfish
This country fought a revolu¬
the expansion of its facilities for
program.
Our program is a pro¬
tion in 1776 to establish freedom.
gram for all America, and there¬ the
production
of
cathode-ray
This country fought a war under
fore I want you to take your obli¬
tubes, cathode-ray oscillographs
Lincoln about slavery to maintain
gations seriously in this year of
and other devices of which cath¬
that freedom.
political action.
The spirit of America lies in
ode-ray tubes are a part, and for
Make sure that you give your¬
the fact that it is not afraid to
further
development
and
im¬
selves to it. Make sure that noth¬
undertake
ceeding generations that burning
thought.
Now, for what are all men cre¬
ated equal?
I contend it is for
the express purpose to do good
and be happy.
If we look at the
history of Europe, we discover
that empire after empire rose and
fell and after each collapse more
and more equality among people
began to be evident.
Education
to America.
program.
experiment and it is not afraid to
AteIWlivmsF;
(Continued from page 2784)
of
sense
no
be made a place where
mind
not just
that
can
This
gether in peace and friendship and
first of enjoy all that this world can pro¬
my
should make sure,
have and that
am
world
men
There is
all,
to be the
powerful
in productivity,
now is the right time to open
do
about it.
that
Not only do we have
time
citizens
fellow
better America, an
a
that
We
most
our
want
and
were
We have
depend the future of this nation.
V
We
America that will give its citizens,
first of all, of course, a higher
"FoiWluH
insecurity majority began to be available to
and which will make it possible more and more, and as more peo¬
think in these terms when we for all the groups, regardless of ple received education, the equal¬
think of what it is that we are race, creed or color, to live in ity idea spread further and fur¬
fighting for.
We have the tools friendship, to be real neighbors; ther away from the historical
in the organiaztion of labor right an America that will carry its source of civilization, toward en¬
great mission of helping other velopment of the whole world.
in our-country.
to
The contribution we have made countries
help
themselves,
Ideas grow only because they
thinking not in terms of exploita¬ are acted
today would have been impossible
upon.
They lie dormant
but
in
creating
plenty and
if we did not have this great num¬ tion,
produce nothing through in¬
ber of organized workers, and so abroad so we can all enjoy it here action.
The
idea
of
equality
we
must proceed to complete a in America.
among men would have died aprocess of organization. Then, we
My friends, many of you have borning had not an aggressive
left
must use the power of organiza¬
before the session
is. over. young man said, "If you would be
tion
intelligently and construc¬ Those who were at the first Con¬ happy, follow me"—and historians
tively in the service of labor and vention in Webster Hall, New said of Him, "He went about do¬
the nation.
We must also make York City, I am sure, did not be¬
ing good."
In other words, He
sure
through our influence that lieve themselves that what has gave the world an idea and im¬
the power of the nation is being been
accomplished today would plemented it with a plan of action.
directed into the proper channels be possible.
It was done because
I think I am safe in saying that
for the good of the rest of the
there were men and women who all
of us
want to
be happy—
destiny.
Roosevelt gave his life in
to
opportunity has never before been
given to any of you people to* be
of such great service, to do' so
much; but we have been given
very little time to do it.
Thursday, May 23, 194(3
life.
and capitalists in the pursuit
happiness. There is a natural
another
equality and
squarely upon our
the same society.
I see no merit shoulders a very definite and real
standing shares of class A com¬
in the Russian way of life which responsibility for the needs and
mon stock and 660,000 outstanding
We
says "Down with the capitalists comforts of our fellow-man.
shares of class B common.
Para¬ and up with the workers."
Nor recognize this duty under the
of life, and do
do I see any merit in the archaic American way
mount Pictures, Inc., owns 100%
American way of life which says plenty about it. We believe in a
of the outstanding class B stock.
"Down with labor and up with living and family wage, and thus
Operations of the company are
capital." I think that we are wit¬ th6 fight and duty to bargain col¬
carried on in four plants located
nessing on the American scene a lectively as free equals is recog¬
in Passaic and Clifton, N. J, ...
gradual rapprochement between nized and upheld in our courts*
of these shares, will
448
in
mortgages,
include $13,-
1,471,040 out¬
of
union of both for
a
In
way,
freedom place
better life in
■
-
'
M
[Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
i
We believe in the right to a fair
profit, and thus we have anti-trust
■r
n
:
MM
'
■
laws to permit every man an op¬
portunity to engage in business
or
practice a profession without
undue
I
restrictions.
Avarice and Greed of
The trouble lies in the avarice
and greed of a few who would
dominate economically at the ex¬
the well-being of the
Or, again, it lies in the
misconceived
idea
of
Govern¬
of
pense
many.
ment's
to
prerogatives
economic
life
in
reference
exhibited
as
by
some
anonymous, inexperienced,
bookish Ph.D.'s, who write direc¬
tives and rules of action that are
completely out of harmony with
the fundamental concepts of free
and
equal opportunity.
In this
of groups and blocs of inter¬
era
I
est,
have
looked
the
around
country to find a group that sub¬
scribes
whole-heartedly to the
ideas and
action
which
explored together.
seems
21-35,
together
That group, it
to
who
the
banded
are
extent
100,000, and located in
of
have
we
to me, are the young men
between
of
some
State
every
the Union to do good in their
respective communities and thus
bring about a better and happier
state of living for the citizens of
this nation.
the
as
That group is known
Chamber of Com¬
Junior
The
merce.
members
are
not
juniors, and their organization is
not
Chamber
a
Commerce.
of
They have attained man's estate
and
recognize their duty to their
fellow man.
They are conscious
of their civic responsibility and
do something about it.
The Junior Chambers of
i
(Continued from page 2782)
Few
a
comes up
out
with, however, nothing effective can be accomplished with¬
implementation.
press
conference
as
And here all is most vague.
to what
Questioned at a
kind of implementation there can be
colliding with sovereign rights and interests of the states
concerned, Mrs. Roosevelt seemed to be forced to go into a polite
but complete "stall" of mouthing sweet hopes "for the future." It is
impossible to see how action can ever be taken in the case of viola¬
tions by any of the major Powers—as if 1933 Hitlerism were on
the rampage today. Any complaint to a commission or subcommission would immediately run into a political fight, and
surely request
for relief made to the Security Council would run into
Veto, or worse.
While Russia might otherwise have been the unmentionable in
this matter, she has already conveniently herself
highlighted the
difficulty in dealing with her. For her Mr. Borisov, in referring to
the commission's report, said that it was difficult to see "just what
the future of such an organ as this will be"; and definitely questioned
whether it "might not infringe upon sovereign rights of States."
Take for example the Newark
Junior Chamber of Commerce, an
active group nearby. A few years
He
thereupon insisted that the report should state that the Soviet mem¬
ber reserved "the right "to make observations later," and meanwhile
recorded himself as not having voted on various
matters, including
the implementation of the Commission's recommendations.
With or without the blessings and professed optimism of Mrs.
Roosevelt, it is difficult to find a basis for public faith in an increase
of human rights, directly in the face of the
clearly expressed oppo¬
sition of quite the biggest of the Big Powers!
Perhaps it would be
realities, rather than to
court
public
disillusionment.
❖
•if
*
*
The Extension of Soviet Obstruction
that
A
most
are
subtle
In
the
and
earned
admiration
their
for
of
unselfish
the
respect
the
world
attitude
of
community a bet¬
ter place in which to live."
We
planted azaleas from one end of
making
their
particularly,
on
Commission
They
went
the Economic
and
Social
to whom intense
personal activity is no longer pos¬
sible; for us to bask in the sun
and
banking, production and prices, national income,
daring, ambitious,
employment,
view to showing where causes of
a slackening of economic activity
likely to arise, or when a slackening has occurred, what the
causes are; and to propose remedies.
are
obstructed because of
plated that
a new UN
UNRRA is terminated.
agency
A sub-commission is to be
will be created to take
over
when
;
r
appointed forthwith to investigate at
first hand the
world's devastated areas; to determine just what tasks
achievements with
face each country, what it has accomplished thus
far, and what it
^our fellow men from all over the needs. The
UN will recognize the over-all planning ideas embraced
country, and contemplate the fu¬
our
ture of
past
eternal happiness as our
final goal in life.
(Continued on page 2818)
experts
is
contemplated,
whose
by the respective countries, separating them from what they
may
It will take into account not only what
has already been done in reconstruction, but also the over-all
have been doing in the past.
plan¬
!
duties
y.
,
.v.
Coordination of the statistical work of
specialized agencies, i
Development of the central statistical services of the Secre¬
tariat.
■
3.
•
Advising the organs of the United Nations on general ques¬
tions relating to the
collection, interpretation and dissemina®
tion of statistical information.
e
Prompting the improvement of statistics and statistical meth-.
ods generally.
*
Carrying on the important statistical studies and periodic re¬
ports of the defunct League of Nations.
t
.
6.
❖
$
*
I*1
Inquiry Into the Peacetime Uses of Atomic Energy
Isador H.
Employment
^
Lubin, United States member of the Economic and
Commission, has come forth with a proposal, which
has been
duly adopted, for the full exploration
of
the industrial implications of atomic
energy.
This has been placed on the agenda, for action
by
this commission in the fall. As Dr. Lubin has re¬
marked, the unlikelihood of prompt erection of
atomic plants, affords ample time for UN action.
The full text of Dr. Lubin's adopted
proposal fol¬
lows:
It is impossible to^determine at this mo¬
whether atomic energy will be avail¬
ment
able
as
power.
a
substitute; Tor existing
There
are
of
scientists,?
sources
authoritative
however, who insist that we are on the eve of
such a development.
The possible advent of atomic
energy as
5
•
of productive power has definite
po- jt
tentialities for the future pattern of world-
Isador Lubin
the
now
us
eminent
industrial and agricultural organization.
atomic
energy
may
become a
That t,-
factor
money
restrictive business practices, patents, and business cycle analysis. As
Assistant Secretary General Henri Laugier has said: "the plans are
political reasons. Help will be given in
Chamber of Com¬
the distribution of UNRRA
goods, as in the case of Poland's recent
merce. Many of you know of how
gift of coal. In fact, it is intended to participate importantly and
these young fellows have done
permanently in relief activities, recognizing the prospect for con¬
everything possible to make their
tinuing shortages of food and clothing. In this field it is contem¬
community a most fitting place
those of
12
Development of national statistics and the improvement of
their comparability.
a,
yi
tion,
experience of seeing the results of
For the immediate future, efforts will be made to
whole town aroused over the
get the nations
idea of doing good and being hap¬ of the world to avoid restrictive policies during the period of re¬
construction. Emergency measures will be taken to
py, and of sharing it with others.
help the flow
of trade between neighboring countries who need each others'
i
goods,
I think of the St. Petersburg,
Junior
'A®®
*
source
a
Fla.,
*
will include:
Council will devote itself to an extraordinarily wide
scope of ac¬
tivities. It will deal with details such as the flow of
investment, taxa¬
the
immeasurable.
of
*
prevention of wide fluctuations in economic activity, the recon¬
grandeur and beauty, and encour¬
struction of devastated
areas, adjustment of international balance of
aged people from all Oyer the
payments problems, and increasing worldwide consumption.
world to come to our city and
It is planned to provide the United Nations with a full staff
revel in this city-wide garden,
of first class
economists, devoting their main attention to business
away from the cares of a nation
sweltering in the throes of a de¬ cycle analysis. Their main goals will be:
(1) To collect, digest apd present the essential data illustrating
pression. The amount of good
that was done for people wlrn had the changes which take place in economic activity.
(2) To analyze the economic situation as it develops with a
lost faith in money as happiness,
home happier for having had the
*
Great achievements are likewise being
planned in the presumably pacific field of international statistics. A permanent Statistical
the
sometimes even revolutionary and beyond the
the town's main streets to the limits of the original instructions." Major long-term aims include the
other, nearly 50 miles of floral promotion of economic expansion, the effectuation of full
was
direction, T
differences in
Statistics for the Universe
The Ambitious Economic Program
field,
centralized
national
y*-"
eco-J
philosophies. An underlying ever-present dif¬
ficulty consists in the necessity of dealing with sovereign economic
systems ranging from American free enterprise to Soviet
collectivism, i
with various "shades of gray"
lying in between.
This is the counter- li
part of political difficulties confronting effective action
throughout®
the UN organization because of its
inability to encroach on the y
sovereign protection of respectively differing national aims.
But it is in the Human
economic
conscious of the
ex¬
"v 'A
systems and
5.
the Junior Chamber of Commerce
and
effectuating worldwide planning and
Council must be
nomic
4.
the
contemplated
were
planation of this planning technique is another matter.
ground that he had not had time to study the report properly. (An
excuse
seemingly plagiarized from the recent Russian refusal to
joint the Bretton Woods organizations.)
In
is
program
supply. These
directly
2.
the whole town red, those Jaycees,
fellows,
radical
in short
inconsistent with the aims toward the free flow of trade
to which the
trying to commit itself in other directions. But Mr. Lubin
insists that there is no such
inconsistency, because the motivation of
need-in-lieu-of-price is designed as a temporary tiding-over process.
Whether the community can be made to understand such
business-like procedure.
*
-
*
•'
world is
The Soviet representative on the Transport and Communications
Commission flatly refused to cast a vote for or against its
important
formal recommendation for an international
*
*
broken down into smaller individual
committees. Now the Council
will itself continue this
technique, to provide world distribution bit
the basis of need rather than
price.
To promote political peace,
the process will entail
dispensation with free world markets. This, f
assuredly seems to embrace centralized planning and to be
tion's otherwise
:H
*
regarding materials
handled by the wartime' joint
purchasing and allocation boards. These boards are
continuing to
function in food; while the
handling of raw materials has/beeri
that
1.
literally
*
.
ness, are particularly exasperating to those many sympathizers with
her "cause," because she thus is arbitrarily
blocking the Organiza¬
earned the
editorial comment "They painted
of
*
a
gram
industries,
seeking of automobile export markets (unwarrantedly).
,
Rights activities that both her obstruction
a grave need and
her
abortive
"veto
psychology" have been most brazenly
boy's club to combat the demonstrated. Nikolai
Kriukov, as the Soviet representative on this
evils of perhaps a blighted home
commission and participating in all its meetings until May
13, took
life that threw young fellows into
an active part in the discussions and
voting. Thereafter his place
the street for a place to spend
was taken by Alexander Borisov, who
thereupon stated that his
their energy.
They established a
predecessor had been only an observer and should therefore not
place for them to meet and use have taken
part in either discussions or votes. As a result of this
their energies and enthusiasm in
strange procedure, Mr. Borisov now takes exception to some of the
a constructive way.
Then again
agreements to which his countryman has assented, files objections
during the war, to combat a grow¬ and dissents to
various of the commission's conclusions, and reserves
ing need for wholesome recrea¬ the
right to object to future Council action thereon.
tion for our troops away from
Apart from these ad hoc disturbances, the Soviet is pursuing an¬
home, they literally painted the other
minority-of-one dissenting policy, in insisting that commis¬
whole town and suburbs "red" by
sion members shall act as representatives of their
respective nations,
arousing the citizenry to help rather than as world
citizens and international experts. The prev¬
them establish and operate the
alent Organization
opinion, on the other hand, is that the members
Stage Door Canteen, most effec¬ should function
as international experts as the only way to stimulate
tively.
.■
prestige, and enlist the indispensable force of public opinion. Fur¬
)
I like to tell the story of my
thermore, the Soviet policy gives direct assurance that there will
own home town
(Mobile, Ala.), be nationalist
cleavages and complete obstruction to the functioning
because I had a part in the pro¬ of the World
Organization.
for
the
they recognized
ago,
for
as
*
Fantastically enough, in the economic and social deliberations
Russia seems just as intent on deliberately
obstructing and kicking
over the
traces, as she has been in the political sphere in the Council
Chamber at Hunter, and in the Luxembourg Palace in Paris.
Her
persistent tactics of ill-humored and almost adolescent obstreperous-
shipping body;
Commerce
ning prospects. Reconstruction must also take into
account some
major internal changes which have taken
place in, many of the
countries; as:
(1) In agriculture; as in Poland, where there has been a
breaking-up of the large landed estates.
/.•■
<
vti
(2) Nationalization of industry, as in Czechosolvakia
(includ¬
ing even moving pictures there).
(3) The desire of some countries to enter into new
without
far wiser to function within the
.—
■
significant
in our economy was acknowledged in the resolution of
Assembly of the United Nations creating a Commission for
Control of Atomic Energy.
mission specifically provide
The terms of reference of the Com¬
for "extending between all nations
the exchange of basic scientific information for
peaceful ends."
If and when atomic energy becomes practically useful as a.
source of industrial and agricultural
power, it will have radical,
repercussions
on world economic stability and full employment.
Its effects upon the existing coal and oil industries and on the
organization of economics dependent
production will be incalculable.
i
upon
coal mining
and oil,
Atomic energy may result in the development of industrial
activity in far-flung
agricultural.
N
parts
of
the
world
that
are
now-
solely
®
If available for industrial power, atomic energy bids fair to
make barren wastes economically productive. The elimination of
$
the need to transport fuel
nomically
areas
for power purposes will make eco¬
available tremendous natural resources in different
of the world that
possibilities bear
today have little economic value. .These
both the value of existing investments and
opportunities in presently developing mining,
on
employment
industrial, and agricultural
on
areas.
y
Under
';®'y®
,
our terms of reference the
possible economic effects
practicability of atomic energy for power purposes are a,
direct concern of this Commission. Accordingly I recommend
that the Economic and Employment Commission
place on its
agenda for its second session the consideration of the establish¬
of the
ment of
a permanent
standing Sub-Commission on the Economic
Effects of Atomic Energy.
This Sub-Commission should keep the Economic
and Em¬
ployment Commission informed on scientific and economic
developments
formation
on
emphasis
on
this field.
It should currently
assemble all in¬
available, with particular
on
the subjects as it becomes
its possibilities as a source of industrial and
agri¬
cultural power and its probable effects
upon world economic
stability and full employment.
(Continued
on page
2818)
^
THE COMMERCIAL & FINANCIAL CHRONICLE
12818
of refusing to believe the requested reply from the Iranian
gov¬
ernment, of placing Ambassador Ala on the stand here and then
arguing as to whether he is to be believed, and of being uncertain
Economic and Social Council
proposals of the
no
circumstances dupli-
i|'cate. the work of the Commission for the control of Atomic
r
The
.
and
to the
the Economic and
M' Social Council.
"
Vv>:
*
*
*
*
Spanish Committee Snarled in Voluminous "Evidence"
subcommittee
ft
v
;
'
-,
on
-
existed
had
doubts
Whatever
s
about
requirement
the
of the
Spain for a postponement of its reporting deadline
beyond May 31, has been dispelled by the filing
of the United States Government's 53-page re¬
and by tomorrow's presentation of a 480page document by Prime Minister-in-Exile Giral.
These are just two more reports to be digested
and evaluated by the five-man committee con¬
sisting of Messrs. Hasluck, Velloso, Shuhsi, Bon¬
net,
and
Lange.. They
had
already
been
swamped with telegrams, letters, and documents
from private individuals and organizations of
every kind and description.
Of these, 41 tele¬
grams and 40 letters have generally condemned
the Franco regime; 42 telegrams and 34 letters
have urged drastic action by the United States;
there have been 137 petitions for the reprieve
and release of Cristino Garcia; and a plethora of
communications representing all shades of opin¬
ion ranging from pleas for immediate sanctions,
to outside interference in the affairs of Spain.
The Committee has been accepting informa¬
tion from the Spanish underground movements,
and
in
this
connection
has
been
examining
What, if any, is the general extent of
interference in Iran's internal affairs?,
3.
Have the Russians left soldiers behind in civilian
4.
Why has the Soviet given
American
Dr. Oscar Lange
His
Charges
Against Franco
Spain Being
Weighed.
■
documentary
evidence
on
the
persecution
and
execution of Spanish Republicans and other political opponents.
it assuredly is highly dubious
Whether the Council as a group, or the Big Powers individually, will
ever be able to come, to agreement on the question.
For the nub
•of the controversy is bound up in the bare fact that Spain occupies
Apart from the time
:
element,
crucially strategic position in world politics. Located in the orbit
new Russian aims in the Western Mediterranean, and at the
time at the Straits of Gibraltar and Britain's approaches to the
Mediterranean, the strategic connotations can be appreciated.
The
cold fact is that, like other matters already and about to come
'before the Council, while ideology and morality are talked about, the
real issue is political strategy and aims for security.
a
of the
same
Particularly in view of the persistent efforts in
■
some
quarters
to garble both the policy and the ideology ("fascist") of the American
Government, it should be clearly realized that it is most strongly
opposed to the Franco regime, but that it does not deem the evidence
sufficient to warrant United Nations action under the terms of the
within
States memorandum to the Security Council's sub¬
committee refutes the Polish and French allegations concerning ag¬
gressive military preparations and troop movements; denies the
professed alarms about atom bomb preparations; refutes the Polish
whatever either to the
British
Secretary General
In
compliance with the resolutions of the Security Council
April and 8 May, 1946 and with reference to the report
on 6 May, 1946 on behalf of the Government
of Iran, I
has
not
ceased.
of
Iran
While
my
a
matter of
in
a
consistent
manner
with
the
will
course
was
*
*
m
i
m
11
The Council's Helpless Entanglement in the Iranian Mess
As of today the Iranian situation constitutes a complete mess of
I have not received from my
pnrr:--
ports from Iran, and with the Soviet's refusal to
pay any attention whatever to its request for
information, the Council is in complete self-con¬
fessed ignorance of Persian events.
At several
points in today's discussion even disagreement
in.
~
And
contact with
the
Council
the
on
an
informant
This
is, the
noon
Council
and
Iran
,
confusion
is
the
distrust
of
the
Soviet
government's
word. Despite Ambassador Ala's insistence to Dr. Lange today of
his respect for the Soviet's promises, every action by him and by
his government—and by the Council too—since March are predi¬
cated on their refusal to believe that the Russian government has
actually fulfilled ;its; Solejiihl^ prof^0d'bomihitmenls^:>
A
*
The result of tiLw
mat the Council is in the foolish position
my
The information
as
the
the
In order to obtain information
me
the circumstances of
in
company
in March,
'
....v-.I-.-v
HUSSEIN ALA,
i
Iranian Ambassador.
1946,
dend- of. 60
•
GHAVAM-ES-SALTANEH. >
' >
pre¬
rof funded
years
has paid dividends
varying amounts
paid.
In
.
company
•
shares
outstanding
During the past 20
clusive dividends
6 May.
be, Sir,V
has
on
its
com¬
were
paid at the
annual rate of $2.40
per share and
found, and that according to trustworthy, local people, who were
questioned in 'all these places, Soviet troops evacuated Azer-
'Your obedient Servant,-;-
Exchange.
common
shares in
every year except
1926.
In the years 1943-1945
in¬
Rezaieh and Miyanduab.'
The telegraphic reports are to the effect that no trace what¬
ever
of Soviet troops, equipment or means of transport was
I have the honor to
Stock
mon
.
~
Ohio
.
.103,841 shares ,of cumulative
the
evac¬
suburbs, Marand, Julfa, Khoy, Salmas, Maku,
V
York
series, and $27,611,000
at 4 o'clock this after¬
investigation from Teheran and in the course of one week it
investigated carefully the regions of Azerbaijan such as the
following important centers:
on
\
Southern
company
debt.
on
&
ferred stock, $100 par
value, 4V4.%
.
is, in translation, as follows:
Tabriz and its
New
received further information based
transmitted to
to reduce
'
In addition to the
telegraphic dispatches sent by the members of the Com-,
baijan
Continental
Co., according to the
prospectus, proposes to apply, for
listing of its common shares on
Government such
to 5 o'clock in the after¬
1946, with respect to the question of the evacua¬
troops from the whole of Iran and Soviet inter¬
now
the
Electric
of
me up
uation of all parts of Azerbaijan, I dispatched a commission of
in fact in or out of its country. As expressed by Messrs.
and Cadogan, such a direct and normal
query is un¬
thinkable; presumably because the Tehran government is not a
Sovereign power free to answer such an inquiry.
(V*- Another obvious, although diplomatically unadmitted motiva¬
the
behalf
mission in Azerbaijan to my Government in Teheran.
noon
are
of
on
available to
of 20 May,
upon
Sir Alex. Cadogan
Van Kleffens
tion
reported
was
Azerbaijan and have
"Off Spot"
was epitomised by the Council's overwhelming voting-down of the proposal to send the Iranian govern¬
ment a telegram asking the simple question as to whether the Soviet
troops
I
as
of
Proceeds from the sale will
Columbus
,
ferences in the internal affairs of my country. I referred to the
commission appointed to make inquiries about conditions in
nasty
| situation
in
comply
Utility Holding Company
its bank loans.
Council
tion of Soviet
question, and
Soviet he is.
Act.
to
provisions
be used by
information
the
the
second
contradictory document, transmitted
Parodi, which further befuddled
trying to formulate some logical conclusions about
Sir,
Yesterday
that the further from Tehran
to
certain
Public
the situation:
Tries to get both
appeasing
the
is
with
Iranian Ambassador.
Continental
by
move
the
ably is functioning under a considerable, although
precisely unknown degree of duress. It seems
less
here
common
to the in¬
banking group by Conti¬
nental Gas & Electric
Corp. in a
be, Sir,
''
21
of the
vestment
from M. Ala to President Alexandre
.
May
on
than 99%
more
outstanding
They were sold
stock.
HUSSEIN ALA,
•
~
_
geography was revealed: namely,
as
to
Whether the portions of Azerbaijan admitted to
have been evacuated, constitute the entire prov¬
ince or, only the western portion. Mr. Van Kieffens' pronouncement, "I feel that the Council is
groping in the dark," was gross understatement
that served to bring forth a general smile.
The basic cause of trouble is that competent
reports are unavailable from both of the parties
concerned; from the Soviet because it refuses all
from the Iranian government because it presum¬
bidding
company's
this strategically critical area are true, obviously the danger to
international peace and, security is both serious and imminent.
Your obedient Servant,
turnabout in successive re¬
„
competitive
constitute
the
Undisguised confusion and embarrassment for the Security Council.
With the single-day
a
The
tion with
I have the honor to
man,
Dealers, Ine;j ,-,
shares, awarded to Dillon,
Read & Co., Inc., and associates at
integrity of Iran
serious.
and
French border.
do- good
of Securities
Government authentic informa¬
respect to the reported clashes between Iranian troops
military forces in Azerbaijan organized during the
period of Soviet occupation. If the reports of armed conflict in
the Security Council, by material omission
garbled its significance regarding Spanish troop disposition on the
international peace has grown more
to
freedom,
to
men
concession .of $1.50 per share to
members of National Association
-
secret document before
and
prompt
democratic
and
utility stock issue
being made to¬
day with the offering by an in¬
vestment
banking group: headed
by. Dillon, Read & Co., Inc., of
744,455
Columbus
&
Southern
Electric
Co.
common
shares,
priced at $53.50 per share with a
and
made has demonstrated that the threat to the
and
equality
fel¬
counsellors,
in recent years is
In the report of
of events since this statement
Commerce
One of the largest public dis¬
plained of, it is impossible to forecast at this time with certainty
Unfortunately, the
of
tributions of
is hoped that arrangements can be made which
unfortunate results of the interference com¬
what the subsequent developments will be."
of
as sponsors and
Dillon, Read Co. Offers
the
remove
.
Columbus & So. 0. Slk.
com¬
purposes
,
.
given to the Security Council cannot, be said, in reality, to have
resolved
-
•
of
their
fellow
rather than with him."
lieved would end by reason of the assurances of the Soviet Union
been
exorbitant
•
projects of the Ju¬
Chamber
Christian
Government had be¬
principles of the Charter of the United Nations.
6 May, 1946 I stated:
■
ex Dense
The deep concern of Iranians regarding the
preservation of
the independence and territorial integrity of Iran and the main¬
and security is
for
resources
that; we might ail be happier for
having had a part in "painting the
whole 4own red, to defeat those
who would seek happiness at the
Azerbaijan.
peace
legatees
I ask that you-live over in
which
by the Government of Iran until this Government is in a
position to exercise its full authority throughout the Province of
The disputes which
free and rival
as
as sons or
Yankee
a
ideals
made
ojf international
the scourge of social
diseases from their borders,
I think of the Jaycees in LatinAmerica welcoming young men
lows,
a
knowledge.
the Jaycees in Can¬
those
commission has been appointed and is now stated to
city of Tabriz to make inquiries about conditions
throughout the Province of Azerbaijan, it is doubtful that an ade¬
quate investigation can be conducted or a satisfactory report
mon
think of
nior
the
tenance
as
might all be hap¬
I
the lives and
military equipment has been placed at the disposal of
those who challenge the sovereignty and territorial
integrity of
my country.
in
from around
men
working, together
pier.
ways,
as
and that
be
world,
for constructive civic
better¬
ment that we
To those of you who have been
through life's various and devious
particular, to investigate reports that
have been left in Azerbaijan in civilian clothes
Soviet soldiers
the
one
profits.
in
and,
national—young
natural
has, therefore, not
is required to estab¬
lish that all of the Soviet troops have been withdrawn from the
whole
visit and in which, to live.
Out of
this has grown the Jaycee Inter¬
Imperialism, that
sought only exploitation of their
It
investigation
do¬
those things that would make
their country a better place to
of
previously complained of, the Iranian Government is still
being prevented from exercising any effective authority in the
Province of Azerbaijan and that Soviet interference in the
Iran
something about
greater
understanding
among
the young men in the
world as rival, free
equals, each
from the States
Such information as is available to me
up to 5 o'clock this
afternoon is to the effect that as a consequence of the interfer¬
of
doing
equals, and not
ences
charge that 2,000 prominent Gestapo agents have 'been taken into
Franco's secret police, and charges that Dr. Lange, in submitting a
m
-
beg to state that there is not sufficient first-hand information
to my Government as to the true state of affairs
throughout Azerbaijan to make the complete report requested
by the Security Council.
-
affairs
in
eradicate
available
been possible to make such
ica
building
putting on an educational
campaign, nation-wide^ to help
submitted
internal
from page 2817)
think, also, of the tsuffalo, N.
Y., Jaycees, who in 1942 enlisted
the aid of Jaycees all over Amer¬
ada,
Sir,
of 4
(Continued
I
ing
clothes?
24-hour period of the following successive communications.
a
1J
Living
striving to out-do the other in
First is reproduced Ambassador Ala's note to
Lie on the evening of May 20:
"While it
'-V The United
no response
non-military
governments, or to the Council, as
why its troops were not withdrawn by March 2 in accor¬
dance with the Tri-Partite Treaty of 1942?
The obfuscating impact on the Council—because of duress of
other confusing elements in Tehran—reached a
peak in its receipts
Charter,
'
and
Soviet
to
port,
n
important questions concerning which the Council
ignorant, are:
2.
semi-annually
Employment Commission of
We
i
actually cover?
and maintaining
Economic
overall
What part of Azerbaijan does the reported troop evacuation
1.
Indeed, it should rely
;! upon that Commission as one of its primary sources of infor£ mation, using the data and findings of that Commission as they
become available, as the basis of its analyses of the potential
effects of atomic energy upon the stability of the world economy
•
of
a
Some of the
still remains
^ Energy created by the United Nations.
full employment.
Sub-Commission should report
Australian delegation for the gleaning
commission of inquiry or otherwise.
information—by
(Continued from page 2817)
The Sub-Commission should under
"For What lire
how to evaluate newspaper accounts of the current events. This situ¬
ation is ever more strongly substantiating the original and
persistent
About to Convene
u
Thursday, May 23, 1946
a
cents
quarterly divi¬
per
share
was
December,, 1945,,
paid
an
the
extraordinary
dividend of $1 per share oil
the;
.
-
- «
common shares fleeting
duction
excess
in
Federal
profits taxes.
^
income
and
Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL
CHRONICLE
Now in Registration
Securities
•
•
-
Air Capital Manufacturers Inc., Wichita,
•
:
•
conversion
•
Albion Caster Co., Albion, Mich.
division known
Corp., S. E. Canton, O.
350,000 shares of common stock (par $1).
Underwriters—By amendment, Offering—Price to pub¬
lic by amendment.
Proceeds—Payments to and ad¬
March 30 filed
to subsidiaries for working
capital, for purchase
of loans, development, etc. For
details see issue of April 4.
•
Alder Gold,
Inc., Bismarck, N. Dak.
May 13 (letter of notification) 295,000 common shares
($1 par) and 59,000 warrants. Price to public $1 a share
•
for common.
•
holders.
—For expansion, property payments and working
Allied Investm't & Discount Corp.,
'
May
14
(letter
of
notification)
The price to the public is
$12 per share.
Un¬
derwriter—Atwill & Co. will act as agent in connection
with the offering.
Philadelphia
1 peso, equivalent in U. S. currency to 50 cents
share). Underwriters—Allen & Co. The shares are
part of a total of 852,302 shares purchased
by Allen
(par
per
Not underwritten.
Providence, R. I.
March 29 filed 21,550 shares of 4V2%
(5/29)
cumulative
&
con-
•
one
common
share
of
Co.
•
share. Rights expire
May 29. Unsubscribed shares will be purchased by underwriter.
Proceeds-*-Proceeds, together with a term
of $1,250,000 and current funds will be used to
finance the purchase of a plant formerly belonging to
the Defense Plant Corp. for $1,750,000, purchase of ad¬
*
T,
'
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The
First Boston
Corp. (Jointly). Offering—Price to public
by amendment.
Purpose—The common stock, together
with $15,000,000
10-year 3% collateral trust bonds (to
be sold privately) are to be issued to acquire certain
assets of American Water Works & Electric, liquidate
.
two
subsidiaries,
Ohio Cities Water
.
tal.
Common
Community Water Service Co. and
Corp., and provide cash working capi¬
stock
is
to
be
offered
initially for cash
holders
of preferred stocks of Community and Ohio in exchange
to
common
stockholders of parent and to public
for their shares.
Stock not subscribed
or
issued under-
exchange offers
are to be sold for cash to underwriters.
For details see issue of April 4.
.
•
Archer
May
:
vertible
a
Development Corp.,
(letter
17
class
share.
A
of
notification)
stock
($5
Arkansas-Missouri
con-
Offering price, $5.75
& Co.,
New York,
Inc., Chicago.
For cor¬
Power
Corp.
(5/29)
filed 40,000 shares common stock (par $5).
are
being sold for the account of five stock-
23
Shares
holders.
Underwriters—G.
ward
Jones
D.
amendment.
Aviation
,
of
par).
Bennett, Spanier & Co.,
porate purposes.
''
Ky.
shares
Underwriters—Thornton
,and
April
Louisville,
50,000
&
H. Walker & Co. and Ed¬
Offering—Price to public by
Co.
Business—Public utility.
Maintenance Corp.,
Van
Nuys,
Calif.
(4/25)
May 6 filed 493,750 shares of common stock (par $4).
Underwriters—Livingstone & Co.
Offering—Price to
public $4 per share.
Proceeds—For machinery, tools,
furniture, fixtures, etc. and for working capital. Busi¬
•
ness—Sales service and
storage of planes.
stockholders.
Of the 852,302 shares,
sold privately at the cost price to Allen
Purchase price to Allen was
$2.10
per
share.
Brockway
(Pa.)
-
<r-..•
May 16 (letter of notification) 500 shares of preferred
stock.
Price to public $100 a share. ; No underwriter.
The treasurer of the corporation has from his
personal
holdings set aside 1,000 shares of common (no par) stock
to be distributed two shares of common for each share
of preferred purchased and paid for at par, * Proceeds
to be invested in the business.
Glass
Co.
Inc.
III.
Manufacturing Co., Inc., Fair¬
(5/27)
..
.
.
May 8 filed 40,000 5% cumulative convertible preferred
shares (par 25) and 40,000 common shares (par
$2),
Underwriter—Cruttenden and Co.
Offering—Price of
preferred is $25 per share; price of common by amend¬
ment.
Proceeds—$300,000 will be used to discharge
bank loans, $60,963 to discharge
machinery purchase
notes and approximately $909,694 for additional workr
ing capital.
Business—Automobile replacement parts,
etc.
V:;
V
•
'
*5
follows: new building,
$525,000; new and used equip¬
ment, $575,000; leased equipment, $250,000, and working
capital, 400,000.
tures for each 100 shares of
.
scribe for the debentures on the basis of $500 of deben¬
common stock. .Rights ex-
Brooklyn (N. Y.) Union Gas Co.
May 3 filed $34,000,000 general mortgage sinking and
improvement fund bonds due June 1, 1976, and 100,000
shares of cumulative preferred stock
($100 par). Under¬
writers—To be filed by amendment.
Probable bidders
include Halsey, Stuart & Co., Inc.
(bonds only); HarriRipley & Co., and Mellon Securities Corp. (jointly);
The First Boston Corp.; F. S.
Moseley & Co., and
Otis &
Co.
(sfock only). Proceeds—Company plans
man
to refund its entire
outstanding long-term debt, to reim¬
burse the treasury for expenditures made for construc¬
tion purposes, and to provide funds for
the completion
of a construction program now in
progress
and one
contemplated to be commenced in the immediate future
by the sale of $34,000,000 general mortgage bonds and
100,000 shares of preferred stock. In addition, a $1,000,-
000 bank loan will be obtained.
deem $29,240,000 general
The company will re¬
mortgage sinking fund bonds,
3Y2% series, due Sept. 15, 1969, and
$11,850,000 25-year
4% sinking fund debentures, due Sept.
15, 1969.
In
addition, $4,000,000 will be used to provide funds for
the construction program now in
progress and contem¬
plated, each involving the installation of additional pro¬
duction, pumping, storage and distribution facilities.
Brooks Green Co., Boston
May 9 (letter of notification) 6,000 shares common
($5 par). Price to public $10 per share.
Underwriter,
Parker Harrison & Co.
Calif. Electric Pwr.
Co., Riverside, Cal.
(5/29)
May 10 filed $16,000,000 first mortgage bonds due June
1, 1976, and 169,636 shares common stock ($1
par). Un-
-
—
^
SPECIALISTS IN
—
United States Government Securities
•
\
Municipal Bonds
C J. DEVINE
&
CO.
INC.
48 WALL
,
•
ST., NEW YORK 5, N. Y.
Chicago
Chicago and other cities
Boston
•
t
Cincinnati
—
Philadelphia
•
St. Louis
-
•
f
HAnover 2-2727
Pittsburgh
•
Cleveland
;
*
San Francisco
-
£
pire June 3.
Price par (flat).
will
CORPORATION
share.
persons living in Brockway and sur¬
rounding communities. Proceeds—Company proposes to
use
proceeds, with proceeds of iban of $1,250,000 as
The
I'S;""*
issue of May 2. **
';
'•
-■-j■ bj.
see
the securities to
FIRST BOSTON
•
For details
■+*
Chal-Yon Corp., Boston, Mass.
field,
☆
Boston
»
—
•
City Investing Co., New York (6/3)
;■
^
April 19 filed $4,800,000 convertible sinking fuhd de¬
bentures due June 1, 1961.
Underwriting—First Boston
Corp.
Offering—Company is offering, to holders m
common stock of record
May 17, 1946, the right to sub¬
State and
•
Offering—Price to public by amendment,
of first mortgage 33A% bonds;
Proceeds—Redemption
construction fund.
issue of
April 24 filed 10,000 shares 5% cumulative preferred
stock (par $50). Underwriting—None.
Offering—Price
to public $50 per share.
Company proposes to offer
Corporate and Public Financing
NewYork
writers—By amendment.
Probable underwriters
in¬
Halsey, Stuart & Co. Inc.; First Boston Corp.;
clude
Stroud & Co.
Chefford Master
—
-V
per
see
viduals.
1^
■
For details
Big Horn Basin Oil Co.
ditional machinery and equipment and for other plant
Improvements.
For details see issue of April 4.
American Water Works Co., Inc., N. Y.
March 3Q filed 2,343,105 shares of common (par $5) plus
an additional" number determinable
only after the resuits of competitive bidding are known. Underwriters—
five
were
May 16 (letter of notification) 40,000 shares common
stock ($10 par), of which
4,200 are to be publicly of¬
fered at $5 a share by and for the benefit of the
four
underwriters, viz.: Fred Morgan Shaw, Charles Millard
Massey, Parker Thomas and Reed Thomas, four indi¬
loan
'
,
Central Indiana Gas Co., Munice, Ind.
April 25 filed $3,250,000 first mortgage boiids.
Bonds
will be sold at competitive
bidding with the interest
rate being named
by the successful bidder. § Under¬
March 21.
preferred for each four
held at $52 per
from
Offering—Price $3.50
Underwriters—G. H.
Walker
&
Co.
Offering—Common stockholders
of
record May 9 have the right to subscribe to new pre¬
shares of
Co.
150,000
vertible preferred stock (par $50)
ferred at rate of
(5/24)
r
Benguet Consolidated Mining Co., Manila, P. I.
March 15 filed 702,302
shares of capital stock value
&
,
Celotex Corp., Chicago
April 26 filed for 100,000 shares common stock. Under¬
writers—Paul H. Davis & Co. and Union Securities
Corp.
Offering—Price by amendment.
Proceeds—To
provide in part for expansion program, etc. For details
see issue of
May 2.
«"
shares of 5.4%
(par $25).
Company is of¬
fering the stock beginning July 1, 1946 at $25 per share.
Subscriptions will close Nov. 1, 1946. Proceeds will be
used for incorporation expenses and as capital in oper¬
American Screw Co.,
First Boston Corp.; Halsey, Stuart & Co., Inc.
(bonds);
Kidder, Peabody & Co., and Stone & Webster Securities
Corp. (stock).
Offering—Securities will be offered for
sale at competitive bidding. Price to public by amend-},
ment.
Proceeds—Redemption of first mortgage bonds
8Vz% series; balance to general funds.
8,000
cumulative preferred stock
ation of business.
equipment, repayment
Belcher Oil Co.,
Miami, Fla.
May 3 (letter of notification) 6,710 shares common stock
(par $10). The shares are being sold by certain stock¬
warrants
investment, total of $2,950. No underwriter. Proceeds
capital.
as
.
Price to investment dealers for
derwriters—Names to be filed by amendment. Probable
bidders include 'Dillon, Read & Co., Inc. (bonds); The
vances
of
:
the
Barium Steel
Service Caster and Truck Division.
as
of
preferred.
Underwriter—Stevenson,
Leydecker & Co. Offering—Preferred and 64,000 shares
of common are being offered for the
account of T. G.
Stanley, the preferred at $25 per share and the common
at $8.75 per share.
Business—Manufacturer of candy,
retail candy stores.
May 13 (letter of notification) 2,400 shares of $5 preference stock and 60,000 shares of common stock.
Offering
price $100 a share for preference and $1 a share for
common.
No
underwriters.
Proceeds —To
purchase
from Domestic Industries Inc., physical assets of its
;;
Awful Fresh
MacFarlane, Oakland, Calif. (6/1)
May 13 filed 12,000 shares of 6% cumulative preferred
stock (par $25) and 30,400 shares of common
stock (no
par).
Of the common stock 24,000 are reserved for
bills payable.
-
INDICATES ADDITIONS SINCE
PREVIOUS ISSUE
•
Kan.
May 20 (letter of .notification) < 40,000 shares of cumula¬
tive convertible 6% preferred stock ($5 par) and 40,000
shares of 100 par common to be given share for share
with sales of preferred.
Offering price, $5 a share.
Underwriter—The issuer.
For added capital for ac¬
quiring additional equipment and floor space and retire
2819
to
be
sold
underwriters
Proceeds—Proceeds
For details
see
will
be
Unsubscribed debentures
to
be
added
offered
the public.
working capital.
2262.
'
to
issue of April 25, p.
•
Columbia Air Lines, Inc., Baltimore, Md.
May 14 (letter of notification).
Issuer offering 28,000
shares and O. L. Bonifay 40,000 shares of issuer's
$1 par
Public offering price $2.50 a share. No under¬
common.
writing.
Proceeds—For working capital.
-
Compania Litografica De La Habana S. A.
(Havana
(Cuba) Lithographing Co.)
(5/28) • -n£
19,419 shares of 6% cumulative con¬
vertible preferred stock (par $25) and 197,000 shares
of common (par 10c).
The 19,419 shares of preferred
and 162,000 shares of common are being
purchased by
March
the
18
filed
underwriters
from
certain
stockholders.
The
re¬
maining 35,000 shares of
from
common are being purchased
Underwriters—Hirsch & Co., New
Offering—Price of preferred $25.50 per share.
the
York.
Price of
company.
common
$5.50
per
share.
For details
see
issue
of March 21.
Crampton Mfg. Co., Holland, Mich. (5/27-31)
May 3 filed for 240,000 shares common stock ($1 par).
Underwriters—Baker, Simonds & Co.
Offering—Price
to public by amendment.
Proceeds—Purchase of addi¬
tional machinery and equipment and to increase work¬
ing capital.
Business
hardware for plumbing
—
Commercial die-castings
fixtures, etc.
and
v-v*:*
Daunt Corp., Brooklyn, N. Y.
May 13 (letter of notification) 9,000 shares of preferred
stock (no par).
Shares will be sold direct by the com-r
(Continued on page 2820)
-
THE
2820
the holders to purchase between
.(Continued from page 2819)
fin,,
pany
chinery and working capital.
>
Dayton Power & Light Co.
i] May 1 filed 1,530,000 shares common stock ($7 par).
Underwriters—To be named by amendment.
Probable
bidders include Morgan Stanley & Co., and W. E. Hutton & Co. (jointly); Blyth & Co., Inc., and Lehman
Brothers.
Offering—The shares are owned by ColumiHbia Gas & Electric Corp. and (per amendment filed
;
May 12) will be offered to underwriters at competitive
bidding. Stock will not be offered to Columbia stock¬
holders.
Manufacturing Co., Albion, Mich.
shares ($1 par)
Underwriters—
ILytle & Co., Detroit, and C. G. McDonald & Co., Detroit.
Proceeds—For
machinery,
equipment, and working
(letter of notification) 5,000
stock.
Offering price, $2.50.
May 17
common
Denman Tire & Rubber
•
Co., Warren, Ohio
(6/5)
May 17 filed 50,000 shares of 5%'cum. conv. preferred
stock (par 10) and 95,000 shares ($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc. Offering—
Company is offering the 50,000
preferred shares to the
The 95,000 shares of common stock are issued
and outstanding and are being sold by the present own¬
ers, Mrs. Berfce H. McCandless and Mrs. Helen B. Web¬
ster.
Price to public: preferred, $10 per share; cornMay 17 filed 50,000 shares of 5% cum. conv. preferred
anon, $8 per share.
Purpose—Proceeds from the sale of
the preferred stock, pending specific allocation, will be
public,
to
Diamond T
Car Co.,
Motor
Chicago,
III.
Offering—Price based on market.
ers—Hallgarten & Co.
For details
see
issue of April 4.
East Elk Basin Oil Co.
May 16 (letter of notification) 80,000 shares of $10 par
common, of which 8,600 shares will be offered to the
public at $3.50 a share. Proceeds to individuals named
as
underwriters, viz.:
Fred Morgan Shaw, Bridger,
Mont.; Charles Millard Massey, Billings, Mont.; Parker
Thomas, Casper, Wyo., and Reed Thomas, Lovell, Wyo.
•
70,000 shares of common (par $1). Of
the total covered, the 50,000 shares of preferred and 60,000
shares of common will be offered to the public,, and
10,000 shares of common will be offered at $20 per share
certain officers and employees.
Underwriter—W. E.
Hutton & Co.
Offering—Prices to public by amendment.
Proceeds—Redemption of 21,339 outstanding shares (ex¬
cluding treasury shares) off 7% cumulative preferred
stock at $115 per share and accrued dividends.
For
details see issue of May 16.
(6/10)
Inc., New York
Investors
Fundamental
May 22 filed 500,000 shares of common stock (par $2).
Underwriters—Hugh W. Long & Co.
Offering—To be
sold
a
to
maximum offering price of $19,725
Proceeds—For investment in securities.
Busi¬
public at
share.
ness—Open-end
a
investment trust of the
limited man¬
agement type.
•
General
Electric Ferries, Inc. of New York, N. Y.
May 15 (letter of notification) 1,500 shares of 6% prior
preference stock ($100 par). No underwriter. Offering
price, $102.50. Proceeds for the purpose of purchasing
preferred and/or common stock of Southern Transpor¬
tation Co. (Del.), of which Electric Ferries, Inc., now
owns in excess of 75%
of the issued and outstanding
Cable
New York
Corp.,
Electronic Traps,
and 150,000 shares of 4% cumula¬
preferred stock (par $50). Un¬
Inc.
Offering—Company is
offering to holders of 150,000 outstanding shares of 7%
cumulative preferred stock the privilege of exchanging
their shares for 150,000 shares of the first preferred
tive convertible second
derwriters—Blyth
and
&
Co.,
the second preferred on
the basis of one share each (plus a cash adjustment)
for each share of 7% preferred.
Shares of the first
and second preferred not taken in exchange will be
sold to Blyth & Co., Inc., and associates for resale to
the public at a price to be supplied by amendment.
Price is presently expected to be not less than $150 per
unit (one share of first preferred and one share of
second preferred).
150,000
of
shares
Finance Corp.,
Chicago, III.
(6/3)
May 3 filed $1,250,000 15-year 4% subordinated deben¬
tures, Series B, and 60,000 shares 4% cumulative con¬
vertible preferred stock, Series C (par $50) and 180,000
shares of common (par $1) reserved for conversion of
preferred.
Underwriters — Paine, Webber, Jackson &
Curtis.
Offering—Price to public by amendment. Pro¬
ceeds—To retire outstanding 6% cumulative preferred
stock, Series B, $761,000; remainder approximately $3,294,000 will be added to general working funds.
For
details see issue of May 9.
(6/1)
May 20 (letter of notification) 40,000 shares of common
stock (par $5). Price to public, $5 per share. Proceeds—
To finance the manufacture of corporation products and
to
repay loan, the proceeds of which were used for
manufacturing purposes.
Issue not underwritten, but
if company is unable to sell stock it may later secure
broker's
Eureka Williams
Corp., Detroit
April
17 filed 17,000 shares common stock (par $5).
being sold by officers and employees or their
relatives.
Offering—Shares may be sold from time to
time upon the New York Stock Exchange or the Detroit
Shares
Stock Exchange by the owners of such shares.
tails see issue of April 18.
First
May 8
Thought Mine Corp.,
Orient,
For de¬
Wash.
(letter of notification)
500,000 shares, par 10
cents. Price to public 20 cents per share. Underwriters—
E. J. Gibson & Co.
Preston & Raef and Ben Redfield.
General
Securities
•
Giannini
public $3.50 per share. Proceeds—Proceeds will be used
for the purchase of six land
planes, ten flying boats, re¬
conditioning of flying boats and working capital. Busi¬
ness—Company was incorporated on March 9, 1946, to
nperate as a charter air carrier.
..r,,
j""
Food Fair Stores, Inc., Philadelphia •vyw* v . ,
April 29 filed 40,000 shares of common stock ($1 par),
issuable upon exercise of options to
stock.
The options to purchase
purchase
common
common
stock
entitle
share.
Gold City Porcupine
Jan.
4
stock.
Offering price, $6 a share.
Underwriter—Gen¬
Co., Atlanta, Ga. Proceeds—For corporate
purposes.
•
General Shoe Corp.,
Nashville, Tenn. (6/10)
Underwriters—Smith, Barney & Co.,*New York. Offer¬
ing—Preference stock will be offered to public but com¬
mon stock initially will
be offered for subscription to
present common stockholders at rate of one share of
common
of
Unsubscribed shares
for each 10 shares held.
will
be
purchased by underwriters and
offered to public.
Prices by amendment.
Proceeds—
Proceeds from preference stock, together with other
funds, will be used to redeem company's $4,800,000 15-.
year 3% sinking fund debentures, due Dec. 1, 1959, at
104^
(exclusive of accrued interest).
Njet proceeds
from sale of common stock will be added to general
common
determine. Business—Manu¬
leather products and shoe
Operates 13 plants.
directors
may
factures shoes, miscellaneous
polishes.
named.
Offering—Company is offering
TRENTON
stock
common
Airways, Inc., New Orleans (5/28)]
For
equipment and working capital.
Gulf Atlantic Transport'n
Jan.
Co., Jacksonville, Fla*
17 filed 270,000 shares of common stock
Underwriters—Allen
& Co.
have withdrawn
(par $1)„
under¬
as
writers.
Offering—Price to the public by amendment.
Stock is being offered initially to present shareholders
at a price to be filed by amendment.
Holders of ap¬
proximately 200,000 shares have agreed to waive their
preemptive rights. Postponed indefinitely. For details
see
issue of Jan. 24.
Hanson-Van
Winkle-Munning Co., Matawan, N. J,
April 24 filed 1,250,000 4^2% sinking fund debentures
and 105,000 shares of common stock ($3.50 par).
Of'
the common stock 39,400 shares are being sold by thecorporation and 65,600 shares by certain stockholders.
Underwriters—Maxwell, Marshall & Co.
OfferingDebentures are being offered at 100 and the common
stock at $10,625 per share. Proceeds — Approximately
$600,000 will be used to retire first preferred stock at
$40 per share, $600,000 for payment of bank indebtedness
and $143,500 for the purchase of additional land and:
buildings. For details see issue of May 2.
Akron, O.
(6/1)
May 13 filed 25,000 shares of cumulative preferred stock
(par $100) and 25,000 shares convertible second pre¬
ferred stock (par $100).
Dividend rates by amendment.
Underwriters—Kidder, Peabody & Co.; Goldman, Sachs
& Co., and Ball; Burge & Kraus.
Offering—Price to
public by amendment.
Proceeds—Reduction of bank
loans, reimbursement of the treasury for expenditures
made in the acquisition of interests In related business
Wholesale
Co.,
Chicago,
III.
April 30 filed 85,600 shares of common stock (par $1)..
Shares are being sold by two stockholders, Albert L.
Arenberg, President, 73,000 shares, and Louis Sisskind,.
Vice-President and Secretary, 12,600 shares.
Under¬
writers—Brailsford & Co.
Offering—Price to public
$9,625.
Hayes Manufacturing Corp., Gr. Rapids, Mich*
Feb. 27 filed 215,000 shares of common stock ($2
Shares are being sold by certain stockholders.
par).
Stock
acquired by selling stockholders in exchange for 432,000'
shares common stock (par $3) of American Engineering
Co. Underwriters—To be named by amendment. Offering
—Price to public by amendment.
Stop order hearing;
by SEC. For details see issue of March 7.
Hoffman Radio Corp.,
(5/27-28)]
Los Angeles
March 30 filed
120,000 shares common stock (par $1).
Underwriters—Cohu & Torrey.
Offering—Price to pub¬
lic $6 per share.
Proceeds—$97,125 to redeem preferred!
stock and approximately $400,000 to retire short-termi
bank borrowings; balance for working capital.
For
details see issue of April 4.
Household
Service
Inc., Utica, N. Y.
(5/24)
May 20 (letter of notification) $50,000 5% sinking fundi
10-year serial debentures, series A, dated May 1, 1946;;
due May 1, 1956.
Underwriter—Mohawk Valley Invest¬
Price to public,
par and interest.
Proceeds;
distribution system around.
Boonville, N. Y., costing about $24,000; payment of
collateral trust notes, $12,100; remainder for general
ing Co., Inc.
—Purchase of propane
gas
corporate purposes.
;
*
Lee Higginson Corporation
OF NEW YORK
ON£ HUNDRED
♦
Registrar
♦
Trustee
TWENTY BROADWAY
NEW YORK
.
Underwriters, Distributors
t
15, N. Y.
and Dealers
;
'
.
•
_~.r.;
:rH*'q,"V
•
/
.
.
<>>:'/■•' ;•'
wj
RECTOR 2-2200
INDIANAPOLIS
,
PITTSBURGH
common stock (par $1>
Underwriters—No
underwriters
currency.
Feibleman & Co.
.
PHILADELPHIA
Mines, Ltd., Toronto, Ont*
600,000 shares of
May 9 (letter of notification) 55,000 shares capital stock
(par $1).
Price to public $5.
Underwriters—Kohlmeyer, Newburger & Co.; D'Antoni & Co., and T. J,
Exchange
CHICAGO
by officers
share. If com¬
pany accepts offers from dealers to purchase the stock,
company will sell to such dealers, if any, at 32.5 cents
U. S. currency per share for resale at 50 cents U. S,
currency per share.
vw;.v_
ALBANY
sold
INVESTMENT SECURITIES
Hemphill, Noyes CS, Co.
y.\
and
to public at 50 cents U. S. currency per
•
General Tire & Rubber Co.,
Transfer Agent
NEW YORK
filed
Canadian
Municipal Securities
Members New York Stock
offered
Primarily for working capital and reduction of bank
loans..
The Marine Midland Trust Company
and
& Co., Inc., New York
Securities will be
UNDERWRITERS—DISTRIBUTORS—DEALERS
Industrial, Public Utility, Railroad
(G. M.)
Harrison
eral Finance
purposes as
May 6_ filed 300,000 shares common stock (par $1). Un¬
derwriters—J. F. Reilly & Co., Inc. Offering—Price to
f
and directors without compensation to them. Proceeds—
Corp., Atlanta, Ga.
May 16 (letter of notification) 19,984 shares of common
funds to be used from time to time for such corporate
Flying Freight Inc., New York (6/10)
issue
see
May 15 (letter of notification) 2,000 shares of 6% pre¬
ferred stock (par $100), convertible into common stock
at the rate of 12 shares of common for each share
of
preferred at option of holder.
Subject to retirement at
$110 a share on 60 days' notice.
Offering—Price $100 a
May 21 filed 50,000 shares (no par) cumulative prefer¬
ence
stock and 64,030 shares ($1 par) common stock.
assistance.
For details
(5/27-28)
General
•
Inc., Rochester, N. Y.
capital.
"
George Goodwin, Wilmington, Deh
Great Circle
ferred stock (par $100)
common.
•
•
..
May 16 (letter of notification) 40 units at $500 each
being offered to finance ah expedition to acquire gold
mining claims in Canada. No underwriting. Proceeds-
(6/5)
May 17 filed 150,000 shares of 4% cumulative first pre¬
stock
March 29 filed 60,000 shares of common stock (par $2).
Shares are being sold by certain stockholders. Underwrit¬
•
May 14 filed 50,000 shares of cumulative convertible pre¬
,
general funds of the company.
Business—
Manufacture and sale of passenger and truck tires.
added
and for additional working
of May 16.
(6/3)
ferred (par $50) and
•
capial.
Thursday, May 23, 1946
Will be used for the above stated purpose.
Franklin Simon & Co., Inc., N. Y.
to
Decker
•
Sept. 5, 1946 and Sept.
1950, shares of common stock at $19.50 per share.
The options were granted on Sept, 5, 1945.
Proceeds—
In the event that all options are exercised, corporation
will realize $780,000, which it intends to use for in¬
creasing inventory, acquiring and equipping additional
supermarkets, warehouses, etc.
Business—Food stores.
4,
Proceeds lor purchase of ma¬
No underwriter.
at $10 per share.
COMMERCIAL & FINANCIAL CHRONICLE
WASHINGTON
*•
•
•
•
•
»
it
..I.
...........
.y
NEW YORK
•
BOSTON
"i
**•'..f
v*
•
^
vj..X.
V
*
'
CHICAGO
*
*
[Volume
163
Number 4492
i Houston
(Texas
) Oil
* •
(6/1)
THE COMMERCIAL & FINANCIAL CHRONICLE
Field
Material
Co.y
s
Inc.
>
.
■'
May 13 filed 100,000 shares of common (par $1). Under¬
writers—Dallas Rupe & Co.; Dittmar & Co.; Dewar, Rob¬
ertson & Pancoast; Fridley & Hess; Creston H. Funk;
^Milton R. Underwood & Co.; Rauscher, Pierce & Co.,
New Issue Calendar
(Showing probable date
Inc.; Pitman & Co., Inc.; Gordon Meeks & Co.; Dallas
Union Trust Co.; Moroney, Beissner & Co., and Rotan,
Mosle & Moreland. Offering—Price to public by amend¬
ment. Proceeds—Proceeds will be used to augment the
forking capital.
For details
see
Celotex
Service
stock (no par).
May 27,
Minerals
&
Chemical
Hanson-Van
Hoffman
Midland
common
York
Corp.,
common
Proceeds—Entire
"certain
officers
and
American
mono-sodium
glutamate, glutamic acid,
pharmaceuticals and food products
betaine
Screw
Co
Stock and
indeterminate number of
an
common
shares
<par $15). Dividend rate on new preferred will be filed
by amendment. Underwriting—The securities are to be
offered for
exchange and no underwriting discounts or
are to be paid in connection with the of¬
commissions
Offering—Company
cumulative
proposes to offer holders of
convertible
preferred and
5%
preferred
stock
common
preferred and
for
each
an
share
on
the
indicated
of
5%
basis
of
one
fractional
preferred.
share
share
of
issue of May 2.
.•
Iowa Public Service Co., Sioux
City, la.
shares
•—Names
by amendment.
Probable bidders
include
Halsey, Stuart & Co. Inc. (bonds); First Boston Corp.;
,W. C. Langley & Co. (stock); A. C. Allyn & Co., and
Blyth & Co., Inc. Offering—Bonds and preferred stock
Will be sold at competitive bidding and the common
Stock will be offered for subscription to present common
Stockholders at the rate of one new share for each
three shares held.
Proceeds—Net proceeds,
together
$1,750,000 bank loan, will be used to redeem
$13,753,000 first mortgage bonds, 3%% series, due 1969,
at 104; $1,442,000 of debenture
bonds, 5% series, due
1968, at 103; all 38,542 outstanding shares of first pre¬
ferred stock at $105 per share, and all 12,478 outstand¬
ing shares of second preferred stock at $100 per share.
Bemaining proceeds will be used for improvements to
the company's physical properties and for
additional
Working capital.
a
,
*
Jersey Central Power & Light Co. (5/24)
April 24 filed $34,000,000 first mortgage bonds and
145,000 shares of cumulative preferred stock (par $100).
and
writer—First
dividend
Boston
rates
Corp.
by
amendment.
Under¬
Offering—Prices to public
by amendment.
the
presently
Proceeds—To redeem and retire all of
outstanding bonds, notes and preferred
Stock.
:• ;
Common
Bonds and Preferred
Missouri Power & Light Co...Bonds and Preferred
National
..Common
Gypsum
Co
Common
Candy Co
Pur ex Corp
Sutherland Paper Co
Union Wire Rope Corp
1946
Common
Capital Stock
Common
Capital Stock
Wisconsin Electric Power Co.__Bonds and Preferred
Wisconsin Power &
Common
Light Co
Common
bank
Busi¬
loans; $180,000 to pay first instalment on purchase
plant from RFC; balance, if any, to be added to work¬
ing capital.
ness—Manufacturer of automobile instrument
panels, etc.
of
Langley Aircraft Corp., New York
(letter of notification) 50,000 shares of capital
Price to public, $2 per share. With each
stock (par $1).
share of
a
stock
stock
sold
there will
be
issued
option warrant to purchase
$4 per share at any time
of stock at
one
up
and
delivered
additional share
to March 1, 1951.
Company proposes to sell the securities to personal
friends and acquaintances of officers and directors. Pro¬
ceeds for corporate purposes.
Lattner Industries,
Inc., Detroit
May 1 (letter of notification) 100,000 shares common
(par $1).
Price to public $1 per share.
Underwriter
—Chapin & Co. For operating capital-expansion pur¬
Michaels
King-Seeley Corp., Ann Arbor, Mich.
(6/10)
21 filed for an unspecified number of common
Shares (par $1). Underwriters—F. Eberstadt &
Co., Inc.,
and Watling, Lerchen & Co. Proceeds—Net
proceeds in¬
itially will ,be used in part to increase general corpo¬
| - May
rate funds and partly to reduce bank loans with
Manu¬
facturers National Bank, Detroit, the Detroit Bank and
Ann Arbor Bank.
Balance, to the extent available, will
be used to augment working capital needed in handling
.the present high rate of production and for a contem-.
/
Pa.
(6/3)
May 3 filed 120,000 shares common stock (par $1). Of to¬
tal company is selling 40,000 shares and stockholders
80,000 shares. Underwriters—Newburger & Hano and
Kobbe, Gearhart & Co., Inc. Offering—Price to public
$6.50 per share.
Proceeds—Net proceeds together with
treasury funds will be used to purchase brewery plant
and equipment now operated under lease for
$325,000.
For details
•
see
of
(v.t.c.)
$300,000
Petroleum
Corp., New York
in
Stock will be offered
Exchange through
by the management. Proceeds will be
retire debt and increase working capital.
aggregate
at
States
(letter of notification) 75,800 shares of class B
stock (no par).
Shares to be sold shall not
market
on
amount.
New
the
York
Curb
brokers selected
used to
Midland
Cooperative
Wholesale,
Minneapolis
(5/27)
May 8 filed 10,500 shares of series D non-cumulative
preferred stock (par $100).
Underwriters—No un¬
derwriters.
Offering—Price to public will range from
$100 per unit in January, February and March, 1946,
to $103 per units in October, November and December,
1946.
Proceeds—To pay off first mortgage loans and
for operating capital.
For details see issue of May 9.
4%
(6/10)
May 21 filed $12,000,000 first mortgage bonds, due 1966;
70,000 shares ($100 par) cumulative preferred stock and
101,056 shares ($50 par) cumulative second preferred
stock.
May 10
issue of May 5.
Mead Corp., Chiliicothe, Ohio
Brothers, Brooklyn (6/3)
April 30 filed 100,000 shares of common stock (par $1)J
also 60,000 additional shares of which 50,000 are re¬
served for issuance upon exercise of warrants, and 10,000
shares for issuance upon exercise of options granted
to George Markelson and Irving Isaacs.
Underwriters-^
Burr & Co., and Reynolds & Co.
Offering—Price to
public by amendment.
Proceeds—To replace working
capital exended to redeem class A and B first preferred
stock; balance will be used to increase merchandise
inventories, finance instalment sales, etc. For details SCO
issue of May 2.
Middle
Liebert & Obert, Philadelphia,
(6/10)
($100 par) cumulative preferred stock,
and 137,333 shares ($15 par) common stock. Underwriters
Interest
Common
Namm's Inc.
poses.
May 21 filed $13,750,000 first mortgage bonds, due 1976;
With
Preferred :i
Nutrine
1,
Houston Oil Field Material Co., Inc
(par
For details
see
42,500
Common
Corp
King-Seeley Corp
Mead Corp.
Awful Fresh MacFarlane—Preferred and Common
Electronics Traps Inc
Common
General Tire & Rubber Co.__Pfd. & 2nd Conv. Pfd.
$100) the right to exchange 400,000 of such shares for
new
General Shoe
Common
May 10
common
Common
Fundamental Investors Inc
Preferred
International Paper Co., New York
April 26 filed 400,000 shares of cumulative preferred
of
1946
an
..
new
10,
i
Pfd. and Common i
Iowa Public Service Co.—Bonds, Pref. and Com.
plated program for expansion and modernization.
its
BondsDebentures
Flying Freight Inc
1946
mine and construction and equipment of a mill and flo¬
tation plant upon phosphate properties near
Bartow, Fla.,
at an estimated cost of $2,680,000.
fering.
June
Common'--
...
Capital Stock
Willys-Overland Motors Inc
Common
June
and
at San Jose,
estimated cost of approximately $2,250,000.
Such funds also will be applied to the
development of a
Calif., at
Pfd. and Common
1st Pfd; and ^nd Pfd.i|>
Union Carbide & Carbon Co
Calif. Electric Power Co
Bonds and Common
United Cigar-Whelan Stores Corp.
Common
proceeds, together
funds, will be applied to the construction and equipment
of an amino products chemical plant for
production of
other
1946
Menasco Manufacturing Co
Philadelphia Electric Power Co
Socony-Vacuum Oil Co
1946
Arkansas-Missouri Power Corp
employees."
with other
net
5,
.Common
Int. Minerals & Chemical Corp
a
to
1946
General Cable Corp
Bonds
May 29,
public offering of unsubscribed
The remaining 14,000 shares of common stock
offered
4,
Hess, Inc.
June
Common
Inc
war¬
subscription at the rate of one common share
for each five shares held. Price
by amendment. Under¬
be
Preferred
Certificates
Denman Tire & Rubber Co
Preferred and Common
County Gas Co...
Spiegel
writers will purchase unsubscribed shares plus an addi¬
tional 65 shares. Underwriters may or may
not, as they
will
National Bellas
Cooperative Wholesale.
rants for
shares.
June
Common
Havana Lithographing Co.__Preferred & Common
Great Circle Airways, Inc
Capital Stock
Industrial Electronics Corp
Common
Pi.tston Co
Debentures
stock (par $5).
Offering—Company
proposes to issue 131,769 shares initially to present com¬
make
United Cigar-Whelan Stores Corp.
United Investors Corp
Debs. & Com.
Corp
May 28,
Common
..Common
Common
Winkle-Munning Co
Radio
Paulsboro Mfg. Co
Public Flyers, Inc
Underwriters—White, Weld & Co.
determine,
Debentures
•
Michaels Brothers—
1946
Preferred
Preferred and Common
Mountain States Tel. & Tel Co.__Debs. &
Common
Ohio Public Service Co
Bonds and Preferred
(5/28)
stockholders and holders of stock purchases
1946
preferred and Common
Debs., Pfd. and Commoii
General Finance Corp
& Obert
.Common
Miller-Wohl Co
(6/10)
May 21 filed 145,834 shares of
3,
Franklin Simon & Co
1946
Crampton Manufacturing Co
(par 500).
Offering price, $3 a share.
Under¬
writer—Hoit, Rose & Troster, New York. Proceeds for
acquiring additional machinery and equipment, retire¬
ment of loans, working capital, etc.
Chicago
Common
:
June
Chefford Master Mfg. Co...Preferred and
Common
stock
International
Airlines, Inc
Liebert
tions, working capital, etc.
May 15 (letter of notification) 99,000 shares of
Debentures
Common
Aviation Maintenance Corp
cumIllative preferred (par $1) and 30,000 shares common ($1
par). Price to public of unit consisting of 4 preferred
and one
common, $10. No underwriting.
For acquisi¬
Industrial Electronic4Corp., Brooklyn
Common
Grocers Co
Preferred
Price
Hydraulic Products Co., Chicago
May 9 (letter of notification) 120,000 shares 7%
mon
U. S.
1946
Alexander, Inc
City Investing Co
May 25,
-
+
United
Debentures
& Preferred
Corp
(J. M.) Grocery Co
by amendment.
Purpose—To augment
Working capital. For details see issue of May 2.
•
Inc
Materials
Plastics
Radford
Powdrell &
Common
Jersey Central Pwr. & Lt. Co.. .Bonds
Underwriters—W. E. Hutton & Co.
Offering—Stock
Will be offered for
subscription to common stockholders
at the rate of one share for each seven shares of common
lield.
June 1,
Corp.
Household
issue of May 16.
common
of offering)
May 24, 1946
Hudson Motor Car Co., Detroit, Mich.
April 26 filed 226,973 shares of
2821
Underwriters for the bonds, unexchanged shares
and unsubscribed shares of second pre¬
preferred
ferred
are
headed by Drexel and Co., and Harriman
Ripley and Co., Inc. Offering—The bonds will be sold
to the public.
The preferred stock will be offered to
holders of the company's $6 cumulative
preferred stock,
series A, and $5.50 cumulative preferred
stock, series B,
on
a share for share
exchange basis, plus a cash pay¬
ment.
The second preferred shares initially will be
offered
for subscription to
common
stockholders of
record
on
June
1946.
Proceeds—Net proceeds will
$8,000,000 3%% bonds and all of pres¬
outstanding preferred stock.
Of the remaining
proceeds, $3,600,000 will be used to reimburse company
for expenditures in financing a new company called
Macon (Ga.) Kraft Co. and the remainder will be used
for enlargements and improvements to its present plants.
Business—Manufactures white paper, coated and un-
Miles Shoes
recapitalization of the company in May.
11,
ently
coated paper products..
Menasco
new
Miller-Wohl
Co., Inc., New York
(5/27-28)
April 29 filed 40,000 shares 4%% cumulative convertible
preferred (par $50) and 50,000 shares common stock
(par 500).
The common stock is outstanding and is
being sold by four stockholders.
Underwriters—Allen
& Co.
Offering—Price to public by amendment.
Pro¬
ceeds—Construct
capital.
and
For details
equip additional stores; working
issue of May 2.
see
Manufacturing Co., Los Angeles (6/5)
May 17 filed 370,000 shares of common stock.
Under¬
writers—Sutro & Co., and G. Brashears & Co.
Offer¬
ing—To be offered initially to shareholders in ratio of
two
Underwriters
Offering—*
—Werlheim & Co., and Lehman Brothers.
Price to public will be filed by amendment.
be used to retire
•
Inc., New York
April 29 filed 23,444 shares of cumulative preferred (par
$100) and 56,267 shares of common stock (par $1). The
shares are to be sold by five stockholders following a
shares
for
each
five
shares
held
at
$4 per
share.
Unsubscribed shares to be offered to public
by
underwriters.
Proceeds—$935,000 to repay unsecured
•
Missouri Pr. & Lt. Co., Jefferson City, Mo. (5/10)'
May 22 filed 7,500,000 first mortgage bonds, due 1976,
and
$4,000,000
($100 par)
Bonds and stock to be sold
cumulative preferred stock.
through competitive bidding.
Probable bidders include;
Underwriters by amendment.
i>-
i;
?7
/-(Continued
on page
2822)
r
.
;
j
THE COMMERCIAL & FINANCIAL CHRONICLE
2822
(Continued from page 2821)
Halsey, Stuart & Co. Inc. (bonds); The First Boston
Corp.; Blyth & Co., Inc.; Coffin & Burr, Inc., and Kidder,
Peabody & Co.
Proceeds—Net proceeds from the sale
of the bonds will be used to redeem in August $9,000,000
first mortgage bonds, 3%% series, due 1966, at 104^
and interest.
Company also plans to borrow $4,000,000
from Bankers Trust Co., New York, to provide funds,,
together with treasury cash, for redemption on July 1
of its 46,702 shares of $6 preferred stock at $105 a share.
Net proceeds from the sale of new preferred will be
applied toward the payment of the mentioned promis¬
sory note.
Any remaining funds will be used to reim¬
burse
treasury. Business—Sale of electric energy and
natural gas. Also operates two water works systems, two
manufactured ice plants and one hot-water heat system.
•
Nutrine
Candy Co., Chicago
Ohio Public Service
March
30
Monticello
May 15
Oil
Corp., Dallas, Texas
(letter of notification) 400 shares ($100 par)
common stock.
"Offering price, $100
No under¬
writer.
To pay for leases purchased and their explora¬
tion and development.
Moore
a
share.
Co., Cleveland, O.
$32,000,000 first mortgage bonds, due
1976; $5,500,000 serial notes and 156,300 shares of cum¬
ulative preferred stock (par $100).
Interest rate on the
bonds and notes and dividend rate on the preferred
stock by amendment.
Underwriters—To be filed by
Probable bidders include Mellon Securities
Corp.; Halsey, Stuart & Co., Inc. (bonds only); the First5
Boston Corp.
Proceeds—Redemption and- payment of
bonds, notes and preferred stock.
Bids Invited—Com¬
pany is inviting sealed bids for the purchase of the
securities.
above
Bids
should
be
submitted
1600, 70 Pine Street, New York 5, N. Y.
(EDST) on May 27.
Corporation, Joliet, III.
at
Room
before 11
a.m.
May 6
(letter of notification) $250,000 first mortgage
sinking fund bonds.
Price to public 100% of
principal amount. Underwriters—Illinois Securities Co.
4%%
Mountain States Tel. & Tel. Co., N. Y.
(5/27)
April 26 filed; $35,000,000 40-year debentures and
96,099 shares of common stock ($ 100 par). Underwriters
^-Bonds will be offered at competitive bidding.
Prob¬
able bidders include Morgan Stanley & Co., Harris, Hall
&
Co.
(Inc.)
and Drexel
& Co.
(jointly), and Halsey,
Stuart & Co. Inc.
Offering of common stock not un¬
derwritten.
Offering-^The 96,099 shares of common
stock will be offered for subscription at par to holders
Of record May 27, 1946, of the 480,497 shares of com¬
mon, in the ratio of one share for each five shares then
held.
be
•
Pacific Fishermen,
(letter of notification), 1,000 shares of capital
stock (par $300). No underwriter.
Offering—Price $300
a unit
(no offering has ever been made to the public).
Proceeds—To buy and equip a store for dealing in types
of merchandise required by local fishing industry.
The
venture is to be
•
to
Mutual
Loan
Co., Portland, Ohio
April 25 (letter of notification) 1,500 shares 5% cumula¬
tive series preferred
($100 par).
Offering—Price to
public $100 per share. Stock is being sold by officers
Wm. P.
^*
Harper
Namm's Inc.,
&
Sons &
Co.,
Brooklyn, N. Y.
Seattle,
as
agent.
(6/10)
May 3 filed 100,000 shares common stock (par $1). The
covers 45,000 shares of common issuable
the exercise of warrants. Underwriters—Van Al-
statement also
upon
styne, Noel & Co.
Offering—Price to public by amend¬
ment. ?¥ Proceeds—Proceeds will be added to general
corporate funds and used, as conditions permit, for
purchase of additional inventory, etc.
For details see
issue of May 9.
•
March
Academy of Broadcasting Inc.,
Washington, D. C.
May 17
(letter of notification) 2,500 shares of class B
common
($10 par).
Offering price, $10 a share.
No
underwriting.
Proceeds—To provide more adequate
liquid capital, additional facilities of school.
•
National Bellas Hess Inc., Kansas City, Mo.
May *2 voting trustees filed v. t. c. for 397,644 shares of
common stock (par $1). Trustees are William M.
Becker,
New York; Samuel Cutler,
Newark, N. J.; Arthur E.
Dawson, Kansas City, Mo.; Ira R. Dickson, North Kansas
City, and George Marks, Belle Harbor, L. I., N. Y.
National Bellas
Hess, Inc., N. Kansas City, Mo.
22
filed
397,644 shares
I
nderwriters—Emanuel,
Company is offering to
stock
common
Deetjen &
holders of
Co.
($1 par).
Offering-
common
stock
of
record
May 20 the right to subscribe to the additional
stock at $5 per share at rate of one share for each five
shares
of
common
ceeds—Will
be
held.
added
to
Rights expire June 4.
Pro¬
working capital.
For details
issue of April 25, p. 2264.
see
•
National Gypsum Co.,
Buffalo, N. Y. (6/10)
May 21 filed 275,000 shares ($1 par) common stock. Un¬
derwriters—W. E. Hutton and
Co., and Blyth & Co., Inc.
Offering—Price by amendment. Proceeds—Net proceeds
Will be used to pay additional costs for construction of two
new plants at
Baltimore, Md., and
Kimballton, Va.; to
pay for additions to its rock wool plants and for addi¬
tions and improvements to
plants
Clarence Center, N. Y.;
Kalamazoo,
N. J„ and New York City.
Nekcosa-Edwards
Paper
at
Mobile, Ala.:
Mich.; Garwood,
Co.,
Edwards,
May 3 (letter of notification) 3,144 shares common stock
(par $25) being offered by John E. Alexander.
Price
to
public $27
per
share.
Underwriters
—
Loewi & Co.
Schoellkopf, Hutton & Pomeroy, Inc.
/
New York Stocks, Inct, New York
May 1 filed 1,500,000 shares of special stock.
At market.
Proceeds—For investment.
(N. J.)
Manufacturing Co.
(5/27)
filed
the warrants.
Underwriters—Butcher & Sherrerd, Phil¬
Offering—1,886 shares of 6% cumulative pre¬
ferred are offered in exchange (one new share for 10
old shares) for shares of 4% preference stock ($10 par),
together with all dividends accrued thereon. Exchange
offer is conditioned on purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000
common stock purchase warrants by underwriter.
Pro¬
ceeds—Purchase or construction of a plant and nec¬
essary machinery and equipment.
For details see issue
of April 4.
adelphia.
Pennsylvania-Dixie Cement Corp.,
N.
Y.
were
issued to holders of common stock of Gen¬
eral Cement
Corp. in connection with a merger of that
corporation into Pennsylvania-Dixie effective Dec. 21,
1945.
1,
The warrants
1946, and
share.
pn
are
and
exercisable
on
and after
before
For details see
June
May 31, 1949, at $20
issue of May 2.
per
filed
$23,500,000 first mortgage bonds, due
1976, and 101,000 shares of cumulative preferred stock,
series C, par $100.
Securities will be sold at competitive
bidding, and interest and dividend rates will be filed
by amendment.
Underwriters—By amendment. Proba¬
ble bidders include Halsey, Stuart & Co., Inc. (bonds
only); Smith, Barney & Co. (preferred only); Kuhn,
Loeb & Co., and Lehman Brothers (jointly).
Offering
—Prices to public by amendment.
For details see issue
Public
Conn.4
-
;
Flyers, Inc., New York (5/27)
•
Purex
Corp., Ltd., South Gate, Calif.
May 21 filed 165,000 shares
Underwriters—Blyth
&
Co.,
shares
;
(6/10)
($1 par) capital stock.
Inc.
Offering—100,000
being sold by 24 stockholders who presently
shares, and 65,000 shares are being soldi
by company.
Price, by amendment.
Proceeds—Net
proceeds to company, estimated at $985,894, will be usedi
to pay off a $200,000 bank loan; pay for additions and
improvements to present facilities and construction of
new plants at Dallas, Texas,
and Tacoma^ Wash.
Bal¬
ance will be added to general funds.
Business—-Manuf
facture and distribution of sodium hypochlorite solu->
are
314,900
own
tions,
a
drain
toilet bowl cleaner and sanitizer, and a plumbing,
Products are sold under the registered
opener.
Radford
(J. M.) Grocery Co., Abilene
(5/24)
April 29 filed 15,000 shares cumulative preferred stock
(par $50).
Underwriters—Rauscher, Pierce & Co., Inc.*
Offering—Price to public by amendment. Proceeds—To
finance in
company.
•
part acquisition of the stock of the predecessor
Business—Wholesale
grocery company.
Reliable Oil Development Corp.,
Dover, Del.
(letter of notification) 90,000 shares ($1 par)common stock. Offering—Price $1 per share. No under¬
writer. Isaah S. A. Cooper, President of corporation, will
supervise distribution and sale of securities.
Proceeds—
For prospecting and drilling or otherwise acquiring and
selling petroleum, oils and gas on lease held in Brazoria,
May
15
Texas.
Rockridge Gold Mines Ltd., Toronto, Can.
March 27 filed 300,000 shares of common stock ($1 par).
Underwriters—Not underwritten.
Company has granted
an
exclusive option
dated Feb. 20, 1946, to Morgan U.
Kemerer of Toronto to purchase 500,000 treasury share*
at 30 cents per share and 500,000 treasury shares at 40 cent*
share, payable in Canadian exchange.
Mr. Kemerer,
has assigned to Mark Daniels, 371 Bay Street, Toronto,
in consideration of $1, the former's right and option to
♦
purchase 300,000 of the 500,000 shares optioned to~Mr,
Kemerer at 30 cents per share.
Mr. Daniels plans to
market the shares optioned to him through the medium
of a registered broker or brokers in the United States.:
Offering—Price to public is 40 cents per share, U. S„
funds.
Proceeds—Proceeds will be applied to develop¬
ment work, etc.
For details see issue of April 4.
Salt Dome Oil
Corp., Houston, Texas
March 28 filed certificates of interest for 800,000 certifi¬
cates in overriding royalty in oil, gas and surplus. Under¬
writers—Cohu & Torrey, New York, and Yarnall & Co.,
Offering—Company is offering the cer¬
tificates of interest to stockholders on basis of one share
Philadelphia.
interest represented thereby for each share of common'
stock held at 58 cents per share.
Proceeds—Exploring
and
of March 28.
•
Danielson,
April 4 filed 200,000 shares of common stock (par $1).
Underwriters—Bond & Goodwin, Inc.
Offering—Price
to public $3 per share.
Proceeds—Payment of notes,
purchase of flight equipment,- additional hangar facili¬
ties, improvement of airport property and other related
uses. For details see issue of April 11.
Pennsylvania Electric Co., Johnstown, Pa.
21
Inc.,
May 13 filed 82,316 shares of common stock (par $2.50)/
Shares are being sold by certain stockholders.
Under*
writer—Blyth & Co., Inc.
Offering—Price to public
by amendment.
per
April 25 filed 80,000 shares capital stock (par $7). Un¬
derwriters—None named.
Offering—The 80,000 shares
are
reserved for issue upon the exercise of warrants
which
Alexander,
developing.
For details
see
issue of April 4.
Segal Lock & Hardware Co., Inc., N. Y.
March 30 filed 738,950 shares of common (par $1).
Philadelphia
(Pa.)
Electric Power Co.
(6/5)
May
17 filed $30,000,000 first mortgage bonds, series
1975, guaranteed unconditionally as to payment of
principal and interest by Susquehanna Power Co. Bonds
due
be
sold
competitive bidding.
Probable
bidders include, Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., Shields & Co. and White, Weld & Co.
(jointly); Morgan Stanley & Co. Purpose—The sale of
1975 bonds is part of company's refinancing program,
which also includes: (1) issue and sale of $12,000,000
10-year notes bearing interest at 1.68% per annum
(guaranteed by Susquehanna) but not for resale to the
public; (2) issue and sale to Philadelphia Electric Co.,
parent of both companies, a maximum of 120,000 shares
of common stock ($25 par), and (3) issue by company of
242,000
shares of common stock
in exchange for
through
$6,050,000 of 6% demand note held by Philadelphia
Electric Co., the exchange to be made upon redemption
of company's presently outstanding 8% cumulative pre¬
ferred stock about Aug. 15. Proceeds—Proceeds will be
used: (1) to retire at 105V2 on Aug. 1 company's first
mortgage bonds 5J/2%, due 1972 (requiring $31,366,205),
and (2) to redeem about Aug. 15 480,00() shares of 8%
cumulative preferred stock (requiring $13,440,000).
Un¬
derwriters—Floyd D. Cerf & Co.
Offering—Holders of
common stock, 7% preferred stock and $2.50 cumulative
preferred stock are given right to subscribe to new.
common
shares
at
rate
of
one
share
of
common
for,
each two shares of any such stock held.
Price by amend¬
ment.
Proceeds—Purchase of additional machinery and.
equipment for modernization of present facilities, etc..
For details see issue of April 4.
,
•
Silver Spring Center,
Inc., Silver Spring, Md.
:
May 15 (letter of notification) 4,000 shares of $50 par),
capital stock.
writer.
Offering—Price $50 a share.
No under-,
purchase land, erect a building tOballrooms, etc.
Proceedsr—To
house restaurant,
•
Silverore Mines
Inc., Wallace,
Idaho
May 13 (letter of notification) 900,000 shares of common
capital stock for benefit of company, 200,000 shares for
benefit of Cecil Oliver Dunlop, Spokane; 90,000 share*"
for benefit of Elmer Edward Johnston, Spokane, andl
10,000 shares for benefit of James Alfred Wayne, Wal-I
lace, Idaho. Offering price, 1'2
a share.
Proceeds—
For prospecting and developing unpatented lode mining!,
claims.
Underwriters headed by Standard Securities.
Corp., Spokane.
Port
Wis.
and
non¬
9,886 shares 6% cumulative preferred
(par $100); 31,000 common stock purchase warrants and
31,000 shares of common, issuable upon the exercise of
will
(6/4)
April
29
March
National
common
Proceeds—To
Paulsboro
&
(6/D
trademark of "Purex."
Offering price, $1 a share. No under¬
purchase airplanes, pay for re¬
conversion, and corporate purposes.
writer.
wood flour mill, inven¬
a
f
Powdrell
Line, Inc., San Francisco
(Letter of notification) 200,000 shares of
of company, but stock not sold by them is to be offered
by
cooperative.
assessable stock.
retire
$30,000,000 3%% - debentures called
for redemption June 1, 1946, at 105, and to reduce the
amount of advances from American Telephone & Tele¬
graph Co., parent.
Company intends to use proceeds
from sale of the stock to pay advances from parent.
Bids Invited—Bids for purchase of the bonds will be
received up to May 27 (11:30 a.m. EDST) at office of
company, 195 Broadway, New York City.
The interest
rate to be specified in the bids.
For details see issue
Of May 2.
a
Pacific National Air
Proceeds—Proceeds from sale of debentures will
used
Inc., Seattle, Wash.
May 14
To purchase
ly & Co., Inc.
tories, etc.
(5/27)
filed
amendment.
•
(6/10)
May 21 filed 200,000 shares of common stock (par $1).
Underwriters—Stifel, Nicolaus and Co., Inc. The stock
is being sold by seven stockholders to underwriters at
$7.50 per share.
Selling stockholders include B. H.
Goodman, President and Treasurer; Harry W. Goodman,
Vice-President; Neal V. Diller, Executive Vice-Presi¬
dent, and R. J. Iversen, Vice-President and Assistant
Treasurer.
Public offering price by amendment.
Thursday, May 23, 1946
Pittston Co., Hoboken, N. J.
(5/28)
May 9 filed a $7,000,000 15-year 4% debentures due
April 1, 1961, and $1,242,300 20-year 5V2% cumulative
income debentures due Jan. 1, 1964.
Underwriters—
Blair & Co., Inc.
Offering—Price to public by amend¬
ment.
Proceeds—Payment of promissory notes aggre¬
gating $8,000,000. For details see issue of May 16.
Plastics Materials Corp., Lacoitla, N. H.
Offering
(5/24)
May 3 (letter of notification) 99,900 shares common, par
$1. Price to public $3 per share. Underwriter—J. F. Reil-
•
Socony-Vacuum Oil Co., Inc., New York
(6/5)
May 17 filed $100,000,000 30-year, 2V2% debentures, due,
June 1, 1976. Underwriter—Morgan Stanley & Co. Offer-J
ihg—Price to public by amendment. Proceeds—Proceeds k
together with treasury funds will be applied to the J
redemption of $50,000,000 25-year 3% debentures, due ,
July 1, 1964, at 104 and int„ and to prepayment about 1
serial notes due 1950-55 at 100 andl
interest.
Business—Production, transportation, refining |
June 18 of $50,000,000
and
marketing of petroleum and its products.
..Volume
163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
;28Z$
•
Southern Aircraft Co.,
Garland, Texas
Mty 15 (letter of notification) 30,000 shares of common
.s.ock (par
$1).
Offering to be made by and on behalf
of
Schneider, Bernet
.Charles
B.
writers.
White
& Hickman
&
Price, $10
Co.,
of
United Cigar-Whelan Stores
Corp., N. Y.
May 10 filed 400,000 shares of
share.
a
Spiegel, Inc., Chicago
working capital.
underwriting.
For details
issue of
see
Dividend
rate
preferred
on
by
amendment.
Under¬
writers—Kuhn, Loeb & Co., and E. H. Rollins & Sons,
Inc.
Offering—Company is offering to stockholders
rights to subscribe for the series A preferred at rate ol
May 19.
one
United Cigar-Whelan Stores
( 6/5)]
17 filed 155,145 shares of cumulative preferred
stock, series A (no par), convertible on or before Dec.
31, 1953), and 310,290 shares of common stock ($1 par).
stock,
(5/28)
Willys-Overland Motors, lnc., Toledo, 0.
May
tion of the Dade Pharmacies and Dade Cut-Rate
Liquor
Store, for redemption of shares of prior preferred
May 9 filed 117,000 shares of common stock
(par $2)
and options to
purchase 111,800 shares of common.
Un¬
derwriters—No
•
(5/29)
stock
(par 30c).
Offering—Initial public of¬
fering price will be determined by a formula. Proceeds
—To reimburse company for amount
spent in acquisi¬
Dallas, Texas, and
Texas, as under¬
Houston,
common
Underwriters—Allen & Co.
Corp., N. Y. (6/3)
to
share for each 16 shares of
be
supplied
by
held at
common
amendment.
Certain
price
a
stockholders
issuable or have been issued under
options. In addition
..company expects to grant options to
purchase 15,500
shares of common stock to certain of its
employees.
May 14 filed 50,000 shares of convertible preferred stock.
Cumulative dividend, $3.50 per annum
(par $100). Under¬
writers—Allen & Co.
Offering—Prior preferred stock¬
holders will be given privilege of
exchanging such shares
they will not exercise their rights with
respect to 46,773 shares of the series A preferred, which
together with shares not subscribed for by other stock¬
m%. Stanley Mines, Inc., Denver,
for shares of new convertible preferred stock at rate of
to the
four
May 15 (letter
Offering—101,500
are
Colo.
of
notification) 15,000 shares of capital
Public offering price $10 a snare.
Underwriter—John B. Furstenberg.
Proceeds—To re.model building, build
cabins, install a mill for reduction
of ores, and purchase
machinery therefor.
stock
($10
par).
Steep Rock Iron Mines
Ltd.,
the
funds
and
corporate purposes.
will
be
For details
available
for
general
issue of April 4.
see
'
•
Sutherland Paper Co.,
May 21
filed
57,400
Underwriters—Harris,
stock
stockholders
five
ment.
shares
on
held.
Unsubscribed
&
par)
Co.
stock.
common
(Inc.).
Offering-
to
for subscription to present
basis of one new share for
Subscription
shares
through underwri.ers.
used
($10
Hall
initially will be offered
'Common
each
Kalamazoo, Mich. (6/10)
shares
will
be
price
by
offered
amend¬
to
public
Proceeds—Net proceeds will be
repay
outstanding term-loan notes amounting
$1,500,000.
The balance, together with the balance
of nee proceeds from the
notes, will be used to carry
'forward company's program of
improvements and addi¬
tions to existing plant facilities.
Business—Manufacture
to
of paperboard
and
its
conversion
into
finished
paper-
board products.
prior preferred
a
for
share
one
cash adjustment.
of
holders will be sold to underwriters for
possible resale
public at a price to be supplied by amendment.
con¬
Company is also offering rights to its stockholders to
subscribe for the 310,290 shares of common stock at
Convertible
preferred not issued under the exchange offer will be
sold
to
share.
Out., Can.
Proceeds—Net proceeds will be added to
general
of
the rate
of one new share for each
eight shares held.
Similar rights wi;h respect to the
preferred and common
stock are being offered to holders of
underwriters and offered to
public at $100 per
see issue of May 19.
For details
United Grocers Co.,
March 27 filed
500,000 shares of capital stock (par $1).
(Underwriters—Otis & Co. Offering—Price to public by
.amendment.
shares
vertible preferred with
have indicated
Brooklyn
outstanding options.
Proceeds—Pending specific allocation, net proceeds will
(6/1)
be added to the general funds of the
corporation. Busi¬
ness—The manufacture and sale of
automobiles and
trucks.
April 25 (letter of notification) $300,000 5% debentures
dated June 1, 1946; due June 1, 1956.
Offering—To be
offered by company to stockholders and
customers; also
Exchanged for $75,000 6% bonds to be redeemed July
1946.
1,
Price,
•
market.
Proceeds—For
investment.
United Lead-Zinc
Boston Corp.; Dillon, Read &
Co.; Blyth &
Co., Inc.; HalWisconsin Co. (stock);
Offering—Company will offer,
common stockholders the
right to subscribe for shares
of new serial preferred not subscribed for or
exchanged,
Business—A
Mines Co., Wallace,
on a
share-for-share basis, for shares of its old serial
preferred stock, 4%% series.
The subscription offer to common stockholders will be
Idaho
May 15 (letter of notification) 600,000 shares of
common
at the rate of
stock.
Offering price, 500 a share.
Underwriters are
William Anderson, Glen F. Russell and Anna E.
Rains,
who were given options to purchase the
600,000 shares.
Proceeds to be used for drilling and
exploratory mining
tions
or
dollar amounts to be offered
by the com¬
even
pany to a total of
$1,500.
No underwriting.
Proceeds—
To pay taxes and other accounts.
Tucson
March 29
(Ariz.) Gas, Electric Light & Power Co.
filed 147,000 shares common stock
(no par).
Stock constitutes all of the
outstanding common stock of
Tucson and is owned by Federal
Light and Traction Co.
Underwriters—By
amendment.
Probable
bidders
in¬
clude Harrlman Ripley &
and Blyth & Co., Inc.
offer the stock for
to
Co.; The First Boston Corp..
(jointly). Offering—Federal will
sale at competitive
bidding and price
U. S. Airlines,
(6/5)
Business—Business divided into five major
groups
follows: alloys and metals;
and
chemicals; electrodes,
batteries; industrial gases and carbide;
car¬
and
plastics.
•
Vulcan
—Stockholders
to
subscribe
expire June
of
Co., Inc., New York.
record
the
to
May
stock
at
aircraft,
be
Chemical
Offering
24 will have the right
$15.50 per share. Rights
10.
Co.,
see
Inc.,
(letter
($100
•
Offering
May 15
(letter of notification)
and
to
be
sold
to
1,000
Prospective
sell
be
such
shares
distributed
West
Utilities
of
them
to
Wisconsin
upon
the
Co.
Mines, Ltd., Tor., Ont.
600,000 shares of
stock
common
(par $1).
For details see issue of Feb. 21.
Young Radiator Co., Racine, Wis.
Jan. 29 filed 100,000 shares of common stock
(par $1);
also registered 40,000 shares of common for issuance
upon
exercise of warrants.
Underwriters—Van
Alstyne, Noel
& Co.
Offering—Price to public $8.25 per share.
Of
40,000 warrants to purchase common stock at $8.25 per
share prior to Feb. 1, 1951, 20,000 were issue to stock¬
holders on recapitalization and
20,000 are being sold to
($10 par)
John
Proceeds—For working
to
will
North
common
Buchanan, John Freeman
Wilford.Conyea without public offering on May 25.
underwriters.
elect
York (Pa.) County Gas Co.
(5/27)
May 8 tiled $1,700,000 first mortgage bonds, due 1976.
Will be sold at competitive
bidding.. Interest rate by
amendment.
Offering—Price by amendment. Proceeds
—Refunding. For details see issue of May 9.
Angeles, Cal.
shares
of
13 filed
funds.
$100 a share.
No
for building at 467 West
Western States Lumber Co., Los
by Middle West Corp., top
System, and part by preference
North West Utilities Co., parent of Wis¬
Underwriters—J. J. Carrick, Ltd., Toronto, Canada. Of¬
fering—Price to public 25 cents per share, United States
price,
Proceeds—To pay
k y.
to be sold
Yank Yellowknife Gold
Feb.
New York,
of
are
which
dissolution
public 28 cents
issue of Aug. 2,1945.
shares
who
common
Birmingham, Ala.
435
•? i
company of the
stockholders of
Street, New York.
common
No
of notification)
par).
'
at
of the shares
consin,
West 57th Street Ownership
Corp.,
N. Y.
May 17
sold
holding
(letter of notification) 8,000 shares of class A
($25 par).
No public offering.
Price to speci¬
fied purchasers, including
original incorporators, $25 a
share.
No underwriting.
Proceeds—To pay bank loans.
stock
refinancing the old serial
lower dividend rate.
a
competitive
bidding.
Underwriters—By
Probable bidders include Merrill Lynch.;
Pierce, Fenner & Beane; White, Weld & Co.; Glore',
Forgan & Co., and The Wisconsin Co.
Proceeds—Part
May 20
•
the
amendment.
common
57th
Rope Corp., Kansas City (6/10)
42,000 shares capital stock (no par). Under¬
For details
from
.
June 24 filed 220,000 shares of
capital stock (par $1—
Canadian).
Underwriters—Willis E. Burnside & Co.,
New York.
Offering—Offering price to
Union Wire
writers—P. W. Brooks &
additional
proceeds
Wisconsin Pr. St Lt. Co., Madison, Wis.
(6/16)]
May 21 filed 550,000 shares ($10 par) common stock to
Valley View Mines, Inc., Spokane, Wash.
April 17 (letter of notification) 200,000 shares common
Price to public 62y20 per share.
Underwriter—
Standard Securities Corp., Spokane, Wash.
underwriters.
Feb. 4 filed
of
Proceeds—Net
•
stock.
United States funds.
serial preferred
new
a
preferred at
equipment, etc., and for working capital.
ties,
bons
purchase
exchange.
and
to be issued for the purpose of
Virginia Red Lake Mines, Ltd.
Union Carbide & Carbon
Co., New York
May 17 filed 463,889 shares of capital stock (no par).
Underwriters—None. Offering—Shares are
being offered
by the corporation to certain officers and employees of
corporation and subsidiaries pursuant to the terms and
provisions of a stock purchase plan, "to encourage a
greater sense of proprietorship on the part of those who
will be responsible for the continued
growth of the
corporation, etc." Offering—Price by amendment. Pro¬
ceeds—Proceeds together with other
"general funds of
corporation will be applied to the acquisition, construc¬
tion and equipment of
manufacturing and other facili¬
as
(6/1)
April 22 filed 900,000 shares common stock (par $1)
300,000 stock purchase warrants, of which 150,000
loan, to finance
share of
$5,000,000 bank loan will be used to re¬
deem in July, $55,000,000 first
mortgage bonds, 3V2%,'
series, due 1968, at 105V\.
The new serial preferred is
have been issued to Harry R.
Playford, President, and
150,000 will be issued to underwriters. Underwriters—
R. H. Johnson & Co.
Offering—Price to public $3.25
per share.
Proceeds—To pay principal and interest on
public will be filed by amendment.
• '
Inc., St. Petersburg, Fla.
bonds
and
bank
a
required to
effect
Tip-Top Gold Mines, Inc., Denver, Colo.
May 17 (letter of notification) notes in $10 denomina¬
l/10th of
for each share of common held.
The right of subscrip¬
tion is subject to the consummation of the
exchange of-r
fer and to the sale to underwriters of all shares of new
serial preferred stock not subscribed for or
operations, and for equipment.
•
.wrr'i
sey, Stuart & Co., Inc. (bonds);
Mellon Securities Corp.
management investment company.
•
-
.....
May 22 filed $50,000,000 first mortgage bonds, due 1976,
and 260,000 shares ($100 par) cumulative
preferred stock.
Bonds and preferred stock will be sold
through com¬
petitive bidding.
Probable bidders include The First
.United Investors Corp.,
Denton, Texas (6/3)
May 14 filed $1,000,000 investment trust fund certificates,
in units of $10 and up, in multiples of
$10.
Offering—
At
Wisconsin Electric Power Co.,
Milwaukee, Wis*
(6/10)
Proceeds—Proceeds will be used
as follows:
payment of bonds, $75,000; construction of
new building,
$150,000; mechanizing warehouse equip-ment, $25,000; working capital, $50,000.
par.
underwriters at
capital.
10
cents
postponed indefinitely.
per
warrant
For details
see
share.
Offering
issue of Feb. 7.
Security Offerings
(NOT YET IN REGISTRATION)
•
INDICATES ADDITIONS SINCE PREVIOUS
ISSUE
Air
Services, Inc., New York
April 1 company
shares
United States
Government,
State, Municipal
and
Corporate Securities
of
reported planning sale of 150,000
through B. G. Cantor & Co.,
underwriter.
Price about $2 per share.
was
common
stock
New York, as
Company's headquarters will be located within eight
miles of New York
City.
Principal business will be
student training and charter service.
American Broadcasting Co., New York
A,
April 25, E. J. Noble, Chairman, announced company
is planning to offer a substantial
amount of authorized
but unissued common stock to the
public and to owners
radio stations affiliated with the
network, through
of
an
Inc.
American Bemberg Corp., New York
American Gas & Power Co,
June 25
Blair 6- Co.
INC.
,
BUFFALO
S: PHILADELPHIA
CHICAGO
PITTSBURGH
April 10 company (name to be changed to Minneapolis
Gas Co.), under modified
plan approved by SEC, reserves
right to make public offering of not in excess of
874,078
shares of
NEW YORK
BOSTON
stockholders will vote on proposal that
present
7% preferred stock be exchanged for new 4y>% issue.
Alternative plan would be the
refunding of the issue
through sale of other securities.
underwriting group headed by Dillon, Read & Co.
Offer is dependent on
approval of FCC,
r
CLEVELAND
ST. LOUIS
American Bosch Corp.
April 16 reported that Alien Property Custodian may
shortly ask for bids on 535,000 shares (77.24%) of the
stock
of the
corporation.
Probable bidders include
Glore, Forgan & Co. and Lehman Brothers
(jointly),
and Blyth & Co.,
Inc., and Merrill Lynch, Pierce, Fenner
& Beane (jointly).
wr""1//•?'
new
common, stock.
Probable bidders include
White, Weld & Co., W, C. Xangley & Co., Otis &
Co.,
•
,
.
American Yarn & Processing
Co., Mt. Holly, ft. C*
It is expected that an issue of
$1,500,000 preferred stock,
of an authorized issue of
$4,000,000 approved by stock¬
holders March 14, last, will be filed with the SEC atr<
(Continued on page 2824)
I.
THE COMMERCIAL & FINANCIAL CHRONICLE
;
[I1
■J.yy
•"}
\
r
)
f!f
an
(Continued from page 2823)
iC
*
early " date.
Probable
underwriters
May" 5 repohed that! stockh^
Inc.
include
St. S. Dickson & Co. and Kidder, Peabody & Co.
vened shortly for purpose of increasing authorized com-i
Arkansas Power & Light Co.,
March-30
"h
J
:
;
j
shares
reported
stock
common
(par
$12.50)
April 12 it
tion
and $5,000,000 in
•
Probable underwriters, Lehman
Company's indebtedness from time to time by additional
amounts not in excess of $50,000,000 in aggregate. The
said, is to place the company
loans, add to working capital
and to provide funds for capital expenditures. Probable
underwriters include Smith, Barney & Co.
purpose of the plan, it was
in a position to fund bank
Atlas Imperial Diesel Engine Co.,
•
of
investment
Consumers Power
cation
and
Savings
Savings Association.
to
new mortgage.
Com¬
contemplates refinancing one-third of outstanding
bidders include The First
•
El
June
Paso
12
nancing of
■
Lea
Creamery Co., Chicago
(Texas)
stockholders
elude Lehman
consider
a
on
Insuranshares Certificates,
stock
•
Macon, Ga.
June 1 stockholders will vote
on changing capital stock
200,000 shares (par $100) to 800,000 shares (par
$25) four new shares to be exchanged for each old share;
an additional 200,000 shares
(par $25) will be created
May
■from
on
shares
of
needed.
common
Probable
stock
additional 450,000
when and if new capital is
an
Hincks
Bro.
&
tional 7,500
4%
company, was
Lowenstein
Co.;
Stone & Webster Securities Corp.; Hornblower & Weeks.
to
1959,
•
York
•
Manufacturing will vote on merging, the surviving com¬
pany to be The Budd Co. Additional capital would be
provided through sale of 537,000 shares of common stock
to be initially offered to stockholders on a one for five
basis. New company would also sell $30,000,000 of de¬
bentures to
retire
existing indebtedness.
Probable
tures and
•
Central
&
•
sufficient number of
of Central
•
&
Possible
bidders:
Southwest
i
New York
interests in this company,
engaged hi
Inc., New York
Green's Ready Built
Gulf
Chicago Milwaukee St. Paul & Pacific RR.
~
,
Issuance
by the road of $58,900,000 lower-coupon first
'mortgage bonds; proceeds from the sale of which would
«be used to redeem first mortgage 4% bonds.' 1994;
*is expected to be postponed until late this year. Earlier
the retirement of the bonds July 1.
Three investment banking groups were set up to enter
States
the pur¬
entirety.
at
Stuart & Co. Inc., Blyth & Co., Harriman, Ripley
& Co.
noon
Sale will be by public auction to be
(EDT), June 21, 1946, at the Office of
held
Alier
Broadway, New York 5, Nev
York.
Michigan Gas & Electric Co., Three
Rivers,
Mich.
April 1 filed with SEC application to sell (a) $3,500,001
first mortgage bonds due April 1, 1976, (b) 14,000 pre¬
ferred shares (par $100) and (c) $400,000 common stoci
(par $10). All issues would be sold through competitivt
bidding.
Probable bidders include Blyth & Co., Inc.
Kidder, Peabody & Co.; The First Boston Corp.; Harris
Hall & Co. (Inc.); Merrill Lynch, Pierce, Fenner &
Beane, and Ira Haupt & Co.
Michigan-Wisconsin Pipe Line Co.
May 3 it was reported that Michigan Consolidated Ga:
Co., through the purchase of $17,000,000 in commor
stock, would acquire full control of the Michigan-Wisconsin Pipe Line Co.
Sale of the stock to Michigai
Consolidated would be a part of the initial financinj
of the new company, which proposes to build a $71,-
Beaumont, Texas
May 16 company, subsidiary of Engineers Public Service
Co. proposed a $27,300,000 refunding program to SEC
to effect interest savings.
Company proposes to sell at
competitive bidding $27,000,000 new bonds with interest
rate to be fixed by successful bidder and to borrow
$2,000,000 on its 1%% promissory note from Irving
Trust Co; Proceeds worild be used to redeem $27,300,000
first mortgage and refunding bonds,
series D, 3*/2%
due May 1, 1969. probable bidders include Stone ,&
Webster Securities Corp.; The First Boston Corp.; Halsey,
12
Property Custodian, 120
Home, Inc., Rockford, III.
Utilities Co.,
1,588 shares (34.90%) of the second pre¬
1,046 shares (29.90%) of the class A com¬
stock, 2,000 shares (38.10%) of the class B commor
stock, $39,900 (14.60%) of 6% serial bonds and $93,10C
(14.90%) of 6% income bonds.
Bids will be receivec
on
the six lots individually and on the six lots* as ar
Glore,
c
York
mon
it is stated, will also sell 150,000 warrants to un¬
derwriters at 10 per warrant.
Price of stock to public
is expected to be $3.50 per share.
Underwriters, it is
understood, will be R. H. Johnson & Co.^ New York,
and Shillinglaw, Bolger & Co., Chicago.
;& Co., Inc.; Stone & Webster Securities
Corp. and First
Boston Corp. (jointly).
for
and bond
ferred stock,
underwriters.
pany,
Forgan & Co.;
(jointly); Smith,
?Barney & Co.-Harriman, Ripley & Co. (jointly); Blyth
were
as
May 15 it was reported that early registration of 350,000
common stock (par $1) was expected.
Com¬
Lehman Brothers-Lazard Freres & Co.
:plans
Glore, Forgan & Co.,
shares of
Corp., the new company, would be sold at competitive
bidding to provide funds, not otherwise supplied, to
retire
outstanding preferred stocks of Central and
American.
New
had under con«j
plans to refund the outstanding 6% deben¬
the $1.50 participating preference stock.
' f
ferred stock,
must be presented at the Office of Alien Property Cus¬
todian, 120 Broadway, New York 5, N. Y., on or before
12 noon (EDST), June 7, 1946.
Corp.
shares
Inc.,
of hardware and farm implements with the
foreign and domestic affiliates.
Securities being
offered include 2,164 shares (21.99%) of the first pre¬
chase, as a whole, of 100 shares of common stock (no
par) constituting all the issued and outstanding com¬
mon stock.
Company presently is engaged in the manu¬
facture and sale of a line of scissors and shears. All bids
Pursuant to plan of Central & South West Utilities Co.
and American Public Service Co. approved by the SEC
a
Publications,
Markt & Hammacher Co.,
stock
Distilling Co.
Graef & Schmidt,
Power Co.
Southwest
,
Inc., New York
aid of
The Alien Property Custodian invites bids for
May 21 Standard Gas & Electric Co. asked the SEC for
permission to sell at competitive bidding the 312,000
common shares
(no par) of California it owns. Prob¬
able bidders include Blyth & Co., Inc.; The First Bos.on
Corp.; Harriman Ripley & Co.
\
Glenmore
with
Blyth & Co., Inc., and Carl M. Loeb,
California Oregon
& Sons,
May 23, Alien Property Custodian James E. Markham
announced that he is offering at public sale minority;
May 20 it is expected that financing to the extent of
125,000 common shares will be made at an early date
Rhodes & Co.
•
(M.)
the export
June 11 stockholders of Edward G. Budd Co., and Budd
are
Macfadden
sideration
Budd Co., Philadelphia
underwriters
of*N. S.
Price $3 per share.
May 20 it was reported that company
Curtis.
(The)
T
Corp.
May 14 it was reported that due to expansion and
acquisition of grey mills company, has need of additional
capital. If additional stock is required, Eastman, Dillon
& Co. are expected to head the underwriting syndicate,
planning
mortgage notes, due
Cleveland
shares would be sold for account
Kurman, President.
April 17 stockholders approved amendment to certifi¬
cate of incorporation modifying restrictions against in¬
curring debt for capital purposes without specific stock¬
holders' approval.
Stockholders also approved amend¬
ment to authorize 175,000 additional preferred shares.
Probable bidders include Paine, Webber, Jackson &
Brass Co.
underwriters,
stated that
$1,239,330
long-term basis.
Jack & Heintz Precision Indus., Inc.,
and]
company
General Telephone Corp., New
"3U-
April 23 stockholders voted to issue
a
was
its
shares of capital
for subscription to
share. Rights
Company, manufacturer of various electrical relays
clocks, is reported planning the sale of 90,000 shares of]
common stock through B. G. Cantor & Co.
An addi^
(The), Chicago
18 it
refinance
to be held for future needs of the comi
company.
^Bridgeport (Conn.)
Fair
offered
reported planning some new financing at
an
early date, mostly common stock.
Proceeds for
working capital.
Probable underwriter, Harriman Rip¬
ley & Co. Inc.
The
•
Bibb Manufacturing Co.,
be
Company is
the fi¬
•
the
on
would
expire June 17 3:00 p.m. Offering is contingent on regis¬
tration statement (yet to be filed) becoming effective.
proposed natural gas pipe line from the
contingent
$1)
(par
stockholders of record May 27 at $5 per
attaining the
necessary approval of the FPC, which is expected to
an early date.
If securities sold, probable underwriters
will be White, Weld & Co., and Stone & Webster Se¬
curities Corp.
is
Inc.
May 2 company announced that 101,700
Kurman Electronic
authorizing
County, N. M., field to close to Blythe, Calif.
meeting
Brothers; Blyth & Co., Inc., and Halsey,
Stuart & Co, Inc.
Corp.; Halsey, Stuart
Lehman Brothers.
vote
Power & Light Co.
(Ind.)
Probable bidders
May 1 company stated early registration of 59,862 shares
of cumulative convertible preferred stock
(par $100)
expected.
The new issue, to be voted on by stock¬
holders June 1, will be offered in exchange for $4.25
preferred.
Glore, Forgan & Co. will be underwriters.
I
Indianapolis
Natural Gas Co.
will
1
April 24 it was reported that company probably will
replace its $32,000,000 first 3y4s due May 1, 1970, with
new
lower-cost securities.
Probable underwriters in-,
Boston
& Co. Inc.; Shields & Co. and
of bonds under new mortgage, through
competitive bidding.
Probable bidders include Harri¬
man,
Ripley & Co., Inc.; Lee Higginson Corp., and
Halsey, Stuart & Co. Inc.
equal amount
Prob-I
Lynch, Pierce, Fenner 8k
Beane; Otis & Co., and the First Boston Corp.
Empire District Electric Co., Joplin, Mo.
funded debt (Dec. 31, 1945, $12,665,000) through sale of
Beatrice
formed
include Merrill
bidders
able
to provide cash to
($11,596,680).
dividend arrears certificates
pay
May 3 company filed application with the Arkansas P. S.
Commission for authority to issue $2,000,000 27/s% first
mortgage bonds due in 1976. Proceeds would be used for
additions and improvements to the company's properties
in Missouri, Arkansas, Kansas and Oklahoma. Probable
April 16 stockholders authorized
■
directors
such additional common shares
and
The
Bangor & Aroostook RR., Bangor, Me.
<
purchase enough additional common to redeem any pre-!
ferred not tendered for conversion.
Company proposes
issuance of 200,000 shares of new preferred (par $50) [
Morgan Stanley
Detroit, Mich.
of
: >
pany states underwriting is available for this conver¬
sion program and will cover a 30-day commitment to
Mellon Securities Corp., First Boston Corp.,
Dillon, Read & Co. Inc., Coffin & Burr, Halsey, Stuart
& Co., Inc., and Spencer Trask & Co.
asked.
•'
committee
Decatur, III.
on
include:
'
if
19
"-/Si
•*
cumulative preferred stock (par $50) into common stock!
basis of two common shares for one preferred.
Com-i
request to
at
refinancing of $65,000,000 3^s and 4s.
,
pany
sell
'
•,
April 11 company filed plan with SEC to simplify cap!-,
tal structure.
Plan contemplates the conversion of 5%}
Co., Jackson, Mich.
Detroit Edison Co.,
March
offering, it is stated, will take place the first week in
June.
The stock is currently quoted at 51 Vs bid and
53 V\
to
•'
Illinois Power Co.,
competitive bidding 876,568 common
shares, after capital adjustment. Proceeds for extensions.
Probable bidders include Morgan Stanley & Co.; Leh¬
man Brothers; Harriman,
Ripley & Co., and Mellon Securites Corp. (jointly).
.Co.; The First Boston Corp., and Lehman Brothers com¬
pleted negotiations with Transamerica Corp. for a public
offering of 500,900 shares of common stock of Bank of
America National Trust
& Co. Inc. '
March 14 filed with Michigan P. U. Commission appli¬
announced that a nation-wide syndicate
bankers headed by Eastman, Dillon &
was
posed bond refunding plan company proposes to sell
.$35,000,000 first and refunding mortgage bonds Series B,
.Proceeds would be used to retire outstanding refunding
mortgage bonds to be called for payment Nov. 1 at 101W*\
Probable bidders: Kuhn, Loeb & Co. and Halsey, Stuart
Corp., New York
initially, it is said, involve $100,000,000.
& Co. probable underwriters.
Association, San Francisco
May 21 it
Electric
mortgage system's properties said to be forerunner to
.refund $304,240,000 callable debentures. Contemplated
new
bonds, to be sold at competitive bidding, would
Oakdale, Calif.
Trust &
Bank of America National
&
l !
Illinois Central RR..
May 3 it was announced that in connection with pro- '
Consolidated Edison Co. of New York, Inc.
stockholders
19
Gas
March 18 stockholders granted management's
voted to split common stock
2 for 1 and create new preferred isue of 300,000 (par
$10) of which 150,000 shares would be issued and sold
to finance purchase of constituent company, improve¬
ments, etc. Blyth & Co., Inc., probable underwriters.
April
debentures to pay off balance of
provide funds for property ex¬
bidders include; Glore, Forgan &
and
right to select the brokers.
Refining Co., Philadelphia
May 7 stockholders approved proposal to increase the
.
York
Maty 16 United Corp. filed with the SEC a proposal tp
sell not more than 200,000 shares of common stock of
Columbia; Sales would be made through brokers' trans¬
actions upon orders of the corporation at market price
on
the New York Exchange, the United reserving the
Brothers.
Atlantic
Columbia
CbriU
to 700,000 shares; to authorize the,
sale of the 100,000 shares plus 41,530 now unissued (to-,
tal 141,530) at not less than $10 per share.
Proceeds
would be used to redeem loan, preferred stock and for;
working capital,
V
'■
J
Probable
Co.; W. E. Hutton & Co., and Halsey, Stuart & Co., Inc.
Philadelphia
capital.
working
$100,000,000
meeting will fee
from 600,000
mon
stated that in final step in recapitaliza¬
corporation is expected to sell approxi¬
pansion.
..July 16 stockholders will vote on increasing common
.Stock by 300,000 shares, the new stock to be offered
stockholders at $10 per share.
Proceeds for expansion
and
'
.
was
securities
senior
ton Corp., and Blyth & Co., Inc.
Corp.,
,:'*v
'
•
program,
mately
promissory notes, for purpose of paying current promissory notes and finance expansion program.
Probable
bidders include Dillon, Read & Co. Inc.; The First Bos¬
Artloom
•
Columbia Gas & Electric Corp., New
Little Rock, Ark.
planned to issue 290,000
company
V
,
;"
"
•
!
Huyler's, New York City
competition for any new offering, viz.; Kuhn, Loeb &
Co.; Mellon Securities Corp., and Halsey, Stuart & Co.,
;
-
will
Thursday, May 23,
\
from Texas, w
proposal als<
contemplates issuance of $6,000,000 in 2% 5-year seria
notes and of $34,000,000 in 3V4% 20-year first mortgag<
bonds to complete the "initial financing." .The plan ha
yet to be presented to the SEC. Probable bidders of thf
000,000 pipe line to bring natural gas
Midwest States. ■' Michigan-Wisconsin's
*
-
Tri
Number 4492
Volume 163
tyv'x'jfPW:r**\y
bonds
i-v
.
••'/»'•
.
'
v-
.
include
<& Co.; White,
'.-•
-'.
■[•,
„k..-, ."
*.•
?'<*■■'. *
THE COMMERCIAL & FINANCIAL CHRONICLE
• •-
•
-
■*•••
•
•
Dillon, Read & Co. Inc.; Glore, Forgan
Weld & Co.; Halsey, Stuart &: Co.-Inc,,
Corp.
and Mellon Securities
Milwaukee Gas Light Co.
'
7" -'I'-Z T. I.'
is considering refund¬
;;. **-•
May 6 it was reported company
ing its $3,000,000 4V2% bonds due 1967 and the refunding
or
retiring of the $2,000,000 outstanding 7% preferred
stock. Refunding step would strengthen company's capi¬
tal structure
as
a
forerunner to distribution of its stock
by the American Light & Traction Co., parent, to enable
to meet Utility Holding Company Act require¬
ments.
Probable bidders include Otis & Co., Glore,
'Forgan & Co. and Lehman Brothers (jointly); Halsey,
Stuart & Co. Inc., and Dillon, Read & C6. Inc.
•
Peabody Coal Co., Chicago
June 24 stockholders will vote
Montgomery Ward & Co., Chicago
Avery, Chairman, following the annual stock¬
holders' meeting, indicated that rights may shortly be
offered to shareholders to raise funds to finance an ex¬
panded volume of business. Probable underwriters if
stock is offered include Glore, Forgan & Co., and Shields
& Co.
Montreal, City of
May 16, J. O. Asselin, Chairman of Montreal's Executive
j Committee, conferred with investment bankers with
J respect to proposed sale in the United States of a new
(bond issue designed to provide funds for retirement of
1 city's outstanding two-payment obligations. The tenta¬
tive schedule, which is subject to approval of the munic¬
ipal calls for bids on $20,610,000 bonds in June; $22,]460,000 in August; $20,095,000 in December, and $22,i
February of 1947. As an alternative the City
jtnay sell half the issue in June and the other half soon
jthereafter. Refunding in Canada of $121,816,000 Cana¬
dian .and other payment bonds is to accompany the
financing.
The City will determine the coupon rate
on the
bonds, which are to mature 1947 to 1975. Invest¬
ment banking groups planning to enter the competition
iinclude one led by Halsey, Stuart & Co. Inc.; one by
Clore, Forgan & Co.; one jointly by Harriman Ripley
6 Co., Inc., and Dominion Securities Corp.; and one
jointly by Shields & Co., and Blyth & Co., Inc.
#
plan involving the authorization of a series of
prior preferred 4J/2% stock (par $20).
If approved,
May
was
it a warrant to
stock
Probable bidders include Blyth &
subscribe for
at varying
prices
over
1)
will
prior
carry with
%
a
of a share of class B
number of years.
'
1976,
and (b) 101,000 shares of series C cumulative
preferred
stock, with a dividend rate not to exceed 4%.
Both
are
early
stock.
Co., Inc.; The First
to.be sold through competitive
bidding. Prob¬
include Mellon Securities
Corp., Smith,
bidders
Barney & Co., Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane.
National City Lines, Inc., Chicago
*
May 22 expected filing at early date of 200,000 shares
common stock, to be offered at $6 per share.
Floyd
p. Cerf & Co. will be underwriters.
New England Gas & Electric Association, Cambridge, Mass.
i
-
March 27 filed amended recapitalization plan with SEC
providing for sale at competitive bidding of (a) $22,500,000 20-year sinking fund collateral trust bonds, plus
<b) sufficient shares of new common' stock out of the
original issue of 2,300,000 shares to supply $11,500,000.
Proceeds will be used to retire at par and interest out¬
standing debentures. Bidders may include Halsey, Stuart
<& Co., Inc. (for bonds only), Bear, Stearns & Co. (for
stock only), First Boston Corp., White, Weld & Co.Kidder, Peabody & Co. (Joint).
7 New York Dock Co., N. Y.
[April 24 reported negotiations will be resumed within
April 24, W. H. Wenneman stated that refinancing of
company's $59,749,000 first mortgage 3%s will be un¬
dertaken
following consummation of merger of road
with Chesapeake & Ohio
Ry.
Probable underwriters
include Halsey, Stuart & Co.,
Inc., and Blyth & Co., Inc.
•
Phiico
May
Oil
000
shares (par $3) and 620,057 class B stock
$3). Purpose is to secure permanent capital as
may be required for future expansion.
Smith, Barney
& Co. probable underwriter if sale of securities
takes
place.
common
(par
[the
May 4 L. Boyd Hatch, Executive Vice-President of Atlas
Corp., stated that company may shortly dispose of all or
part of its holding of R-K-0 common stock; which
amounted to 1,329,020 shares (43%) Dec.
31, 1945, with
total market value
as of that date of
$21,762,702. Sale
be made by June 30 or some time in the fall. Prob¬
able underwriters if stock is sold,
Dillon, Read & Co.
Inc.
of about same size carrying lower coupon rate.
Probable
bidders, Halsey, Stuart & Co. Inc., and Harriman, Ripley
•
Rome
June
ON. Y.)
as
April 10 that company has under con¬
sideration the refunding of $55,000,000 collateral trust
4V2% bonds due 1975 and the issuance of a new series,
It was reported
of collateral trust bonds.
Prospective bidders, Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and Kidder,
Peabody & Co.
v
Ohio Edison Co., Toledo, Ohio
March 21 filed with Ohio P. U. Commission application
sell through competitive bidding 204,153 shares of
stock. Proceeds for expansion, etc. Hearing on
application before SEC will be held June 5. Probable
bidders include First Boston Corp.; Glore, Forgan & Co.;
White, Weld & Co.-Shields & Co. (jointly); Morgan Stan¬
ley & Co., and Stone & Webster Securities Corp.
to
common
Oklahoma Gas & Electric Co., Oklahoma City
Company contemplates at same time Standard Gas &
Electric Co. sells its holding of common stock (in ac¬
cordance with SEC regulations) to sell approximately
140,000 shares of new common stock, proceeds of which
will be used to reimburse treasury and retire bank loan
used in redeeming the 7% preferred stock.
Probable
bidders will include Merrill Lynch, Pierce, Fenner &
JBeane; The First Boston Corp., and White, Weld & Co.
Sunray and Transwestern
Textron, Inc.
Reynolds & Co.
be
may
un¬
Union Electric Co. of Missouri
It is rumored that company
outstanding $90,000,000 3%s
& Co.
contemplates refunding its
of 1971 with lower cost
Possible bidders would include
Dillon, Read
obligations.
Inc., and Halsey, Stuart & Co., Inc.
May 9 it
#
reported officials are considering the ques¬
meeting the $100,000,000 first mortgage railroad
and land grant 4's due
July 1, 1947. However it is felt
maturity date is too far away to determine now whether
was
tion of
issue
will
be paid
off in cash
or
will
be
refunded.
If
decides to refund through new issue probable
bidders will be Kuhn, Loeb &
Co., and Halsey, Stuart
company
& Co. Inc.
, ,
Drug, Inc.
May 4 it was stated that public offering of between
600,000 and 1,000,000 shares of additional capital stock
now
being negotiated with underwriters. The actual
size of the offering will depend on
progress of financ¬
ing discussions
and
prevailing
business
conditions.
Stockholders voted May 14 to reduce the
par value of
the capital stock from $5 to $2.50 a
share, and to in¬
the authorized capital stock from
1,400,560 shares
Stockholders also approved a twofor-one split of the present capital stock.
A proposal
to
5,000,000 shares.
to
change the name of the company to United-Rexall
Drug, Inc., was also voted. Probable underwriter,
Smith,
Barney & Co.
Cable Corp.
United Printers & Publishers
Inc., Joliet, III.
10 stockholders voted to increase authorized
5
stockholders will vote on approving a recapi¬
talization plan to provide funds for erection of a new
manufacturing plant at Rome, N. Y.
The plan involves
issuance and sale of 63,276 shares of a new convertible
preferred stock (par $30) and an increase in the author¬
ized common stock from
200,000 shares to 600,000 shares.
Probable underwriter, Mohawk Valley
Investing Co.
St.
Louis, (Mo.)
April
stock (par $1) from 400,000 shares to
1,000,000
Company contemplates sale of 165,656 addi¬
tional shares, proceeds of which will be used to redeem
at $35 a share outstanding
100,000 $2 preference stock.Probable underwriter A. C. Allyn & Co.
common
shares.
United States Lines Co.,
Hoboken, N. J.
Public Service Co.
April
19 the company petitioned the Missouri Public
Service Commission to simplify its financial
structure,
including reduction in interest and sinking fund changes.
Company proposes to retire current funded debt ($11,640,683) and to issue up to $10,000,000 new bonds, but
limited originally to $6,000,000.
Probable bidders in¬
clude White, Weld & Co.; Blyth &
Co., Inc., and First
Boston Corp.
Seaboard Corp.,
Harrisburg, Pa.
April 30 John Stapf, President, announced that proposals
June 4 stockholders will vote
on creating a new issue of
cumulative preferred stock junior to the
present
preferred stock. It is proposed to offer the new
4V2%
7%
preferred in exchange for the 7% preferred stock share
for share. Unexchanged 7% preferred will be called for
redemption. It is not the present intention to issue any
new preferred except in
exchange for the 7% preferred.
United States
22
1946, by the com¬
Operations consist mainly of owning and managing
water
utilities located in several states.
Interested
are invited to communicate with the
general office,
N. Sixth St., Harrisburg, Pa.
Seaboard
Fruit Co.,
Inc., New York
It is
understood that company will file a letter of no¬
tification in the near future covering an issue of con¬
vertible Class A stock and common stock to be offered
in units of one share of each, the
aggregate to be in the
neighborhood of $295,000.
It is expected that Hill,
Thompson & Co., will be underwriters. Company, which
is in business for about nine
years, is engaged in the
exporting of fruit, meats, vegetables, etc., to Latin Amer¬
ican countries.
•
Seven-Up Texas Corp., Houston, Texas
May 21 sale
the
&
company
Co.,
St.
announced
was
for
submission
by
stockholders March
to
a
Louis;
Rauscher, Pierce & Co., Houston.
New owners, it is
said, plan considerable expansion of the company, in¬
cluding installation of new machinery, etc., necessitating
new capital.
The
Southern Co., New York
Southern Co. (to be successor
to Commonwealth
Corp.) proposes to sell for cash (when
Commonwealth's recapitalization plan becomes effec¬
tive) sufficient common stock to realize $10,000,000, to
be invested in Southern. Co/s
subsidiaries * and new
&
Southern
construction;
Corp., Detroit
stockholders.
to
1
Previous plan
last.
Probable
rejected
underwriters.
White, Weld & Co.
•
In
United
States
connection
Realty-Sheraton,
with
Inc.
the
reorganization of the U. S.
Realty & Improvement Co. and merger with Sheraton
Corp., 42,390 shares of the reorganized company's com¬
mon
will
be
sold
to
investment
an
group
headed by
Lehman Brothers.
Vacuum Concrete Inc., New York
May 3 stockholders approved increase in authorized
capital from 310,000 shares (par $1) to 350,000 shares'
(par $1). Additional stock will be used to obtain working
capital and for purchase of assets of Vacuum Concrete
Corp., parent, which it is planned to liquidate. Probable
underwriter, Hanson & Hanson.
•
of
controlling interest in
group composed of Stifel Nicolaus
Dittmar & Co., San Antonio, and
Radiator
April 24 annual meeting adjourned to May 15 when new
plan of recapitalization and refinancing should be ready
firms
|& Co.
Northern Pacific Ry., St. Paul, Minn.
of
crease
Reynolds International Pen Co., Chicago
An early offering of 200,000 shares of common stock at
pany.
company has under consideration
refunding of its $45,000,000 series C 3V8S with issue
merger
April 30 it
United
plans for the refinancing of corporation and affiliated
interests will be received until June 1,
[April 17 reported that
proposed
announced, subject to stockholders' approval..
Public distribution of securities of
Sunray is proposed
with Eastman, Dillon & Co.principal underwriters. ^
Union Pacific RR.
and
Northern Indiana Public Service Co.
1
V f
Co.
Corp., Philadelphia
May 17 stockholders voted to increase capital stock from
2,000,000 shares of common to a total of 3,370,057 shares,
consisting of 250,000 preferred shares (par $100), 2,500,-
due 1951.
[Stuart & Co., Inc.
5
Sunray Oil Corp.
[month
for refunding of $10,000,000 first mortgage 4s,
New issue will probably run 25 years. Probible underwriters, Hayden, Stone & Co., and Halsey,
formed
to hold the stocks of
Arkansas
Light Co., Louisiana Power & Light Co., Mis¬
sissippi Power & Light Co., and New Orleans Public
derwriter.
Marquette Ry.
about $10 per share is
expected, with Allen & Co.
principal underwriters.
National Cellulose Corp.
of
i
pany would be
Power &
expec.ed.
Pere
may
May 15 it was intimated that company may have financ¬
ing plans in connection with steps being taken in ac¬
quiring additional lines. Probable underwriters include
Reynolds & Co.
SEC
was stated that a
plan was under way to
finance a new
Pennsylvania Gas & Electric Corp., York, Pa.
f Manufacturing company to acquire the assets of Nashua
Co., 95% of the common stock of which
May 7 corporation applied to the SEC for permission to
is owned by Textron.
Probable underwriter, Blair & Co.
sell all of the common stock of the
Petersburg & Hope¬
well Gas Co. (a subsidiary)
•
Twin Coach Co.
consisting of 55,000 shares
(par $10) to Scott, Horner & Mason, Inc., of Lynchburg,
May 22 it was reported that early filing of an issue of
Va., for $600,000, plus closing adjustments.
debentures was
a
Boston Corp.; Harriman Ripley & Co.
•
with
common stockholders of
Electric Power &
Light Corp., would be given rights to subscribe to
United
Gas Corp. common stock and
stock of the new
holding
company Southern Electric System, Inc. The latter
com¬
Service Inc.
Pennsylvania Edison Co., Altoona, Pa.
March 28 company applied to the SEC for
permission to
issue (a) $23,500,000 first mortgage bonds series of
able
Electric System, Inc. ?£■
May 10 pursuant to substitute plan for
retirement oft
preferred stocks of Electric Power &
Light Corp., filed
Radio-Keith-Orpheum Corp., New York
reported that Standard Gas & Electric
is planning to sell at competitive bidding at an
date its holdings of 140,614 shares of common
Each prior preferred share would
were
new
be asked to exchange one share for 6 V2 shares
preferred.
Mountain States Power Co., Albany, Ore.
May 20 it
Southern
approving recapitali¬
holders of present 6% preferred (on which there
dividend arrearages of $30
per
share
issues
Sewell L.
on
zation
latter
1474,000 in
282$
-
Van Norman
May
15
Co., Springfield, Mass.
stockholders voted
to increase common stocks
from 240,000 shares to 400,000 shares (par
$2.50).
Di-r
rectors plan to sell 120,000 additional
shares, without
prior offering, to stockholders, proceeds to£reimburse
treasury for expenses incurred in acquisition of Morse
Twist Drill & Machine Co., reduce bank;
loans, etc.
Probable underwriters include Paine, Webber, Jackson.
& Curtis.
•
Texas
May 16 it
;
,
.
.
,
„
7
/
-
Co^-Vf :7:n:^a. t
was
reported that the directors
are giving
plan of refinancing presently, out¬
standing securities which would require the issuance at
& r '
'
*
*
(Continued on page 2826)
7lU"
consideration
to
a
_
.
'
2826
V
THE COMMERCIAL & FINANCIAL CHRONICLE
J.
•
(Continued from
page 2825)
$100,000,000 of debentures.
Details of
the new debenture issue, including interest rate and
maturity are expected to be decided upon at an early
jdate. ' Proceeds from the sale of the new issue will be
approximately
reported that company may possibly
issue.
coupon
Possible
bidders
include
re¬
Co.
expected to sell at competitive bidding
bonds as they intend to sell, and
partly to their determination to
.wait for lower prices. This may
especially be true in the field of
building.
There is a limit to-
j what people will
for
pay
be
for
*'
Housing:
Truth About Building
modern
house
which
$5,000 'to
would
have
These
100%.
increases
of
tainly out
line
are
with
as
Fleetw'd-Airflow Stock
cer¬
the
such
Amos Treat & Go. Offers
57%.
In certain secj tions of the Pacific Coast it is
% claimed that building has gone up
An
ad-
underwriting group headed
by Amos Treat & Co.
May 21
on
j vances in other living costs which offered
91,767 shares of 500 par
amount to only about 30%.
value
common
stock
of
Fleet-
| I,,
I
'
wood-Airflow,
Effect of Labor Unions
Over
vania
long period, prices are
by supply and de¬
a
determined
mand.
Even labor unions cannot
do much to affect the long trend
of prices.
Improvements in the
standard of living are due to in¬
creased production and new in¬
rather
ventions
■
Over
unions.
than
to
labor
short term, how¬
a
ever, labor unions can greatly af¬
fect
prices by
raising
wages,
shortening hours and especially
by slowing down "the number of
bricks laid per hour."
This is
true today and will be in 1947
When labor unions may be in even
ja stronger bargaining position.
Most of those whom I interview
Inc.,
at
$3
per
Pennsyl¬
a
corporation.
priced
The
stock
share.
Of
the purchase and
equipment to en¬
cer¬
partially
fabricated by it and completed
by
sub-contractors.
After
Most businessmen
now
are
short of labor; over 2,000,000 more
employed today than
In some industries
persons are
a
ago.'
year
there
exists
labor.
real
a
On the
shortage
other hand,
of
many
lines of industry are running into
This
should
tend
to
keep
down profits and make the price
rise orderly.
giving
there
should
be
increase
no
in
effect
consist
to
this
of
for
the
production
of
ordnance
materials and generally to aid in
the
effort.
war
The
company
presently is engaged in the
manu¬
facture and sale of Fleetwood
re¬
Airflow
pensing
is
Electric
and
also
cently
beverage
cooling
the
equipment.
exclusive
of
dis¬
national
"Plyotube,"
a
re¬
developed flexible plastic
get
a
prices after
good crop.
the
Labor is return¬
machinery will be
on
and—barring
weather
soon
even
conditions—there
be
a
surplus
of
goods:
and
Clothing
higher.
prices
The industry
is
be
heavily
unionized and the OPA has been
unfair to
clothing manufacturers.
There also is
lines.
-
With
a
shortage in other
the
exception
clothing, I expect only
a
of
moderate
rise in prices of consumer goods
in general unless
minimum
per hour.
v, ^>i;S
wages
The House Rivers and Harbors
Committee
Cong^
above 5(1 cents
There, however, should
..
May
on
10
approved
water development projects, such
will
which
cities
the
contest
on
Bond
Clubs
participate.
having
pear
ford
and
this
navigation,
electric
works,
irrigation, hydro¬
Sleepy
lower
Hollow
would
Country
be open for
Friday
and
would
also
that
be
of
courses
both
initial
an
$600,000,000,
amount
Associated
of
Press
Washington advices stated. If the
bill
is
passed,
be divided
the money
over
in line with
a
a
period of years
program which will
ultimately cost possibly
a
would
billion dollars and which
in
development of the
of
the
United
ports
of
securities
Mexican scouts would be
the market
Two
on
the diamond. A softball
been
are
known
$100,000,000
2:45
in
of
.
.
new
registration
Securities
mission
be
and
to
quantities,
including
the
Eastern Pipe Line sedebentures
and
ScrantonSpring Brook Water Supply 2%s.'
Panhandle
rial
But by and large dealers
report:
inquiry around, though it
disproportionately from out-of-
better
a
is
town institutions in
many cases.
The large eastern insurance com¬
which do not suit their ideas.
Another
marketed
next
tail in the not distant future.
nounced
the
that
it
market with
is coming
a
an¬
connection with its application to the Interstate Com-
refinancing
to sell
in amounts which will substan¬
the
favorite
pective issue.
the
Bond
the road .disclosed it
may seek additional new money
athletic
the
to
game
sport,
now
Robert H.
.s-Ppbilc
Craft, Guaranty Trust
utility
holding
comCo., Chairman of this committee -panies which are being forced to
has arranged two competitions for divest large portions of their sys¬
..
teams of two from the
same
individual
of any two
club members.
teams
bond "men
tems
firm
On
awarded
in
the
all
Club
Stock
Exchange,
will
operate
throughout, the day. Lively trad¬
ing in automobile shares is in
prospect with the lucky traders
participating in
at
the
a
end
distribution of
of the day.
A
the
conclusion
keen
public.' For
&
of
an
outdoor
equipment through notes.
new
FBI Director Gets Raise
The
salary
investment
interest
in
example
one
from
Southern
Washington
Ohio
_
the
approve
out bids
Department
by two groups, the successful'syndicate paying the com-,
pany $51.19 and its competitor of¬
fering a price of $49.38, a bit more
of a spread than might have been
expected. The price to the public
on reoffering is set at $53.50.
'
;
of
to
carry
over:
was
>by
House
proposed
amendment
an
of
Cotmack
Mr.
action.
The
in the form!
the
John
that "no
diligent
more
taction
to
is
will
Justice
W.
Bill,,
Mc-
(D.-Mass.), who said of
Hoover
been
It
Senate
Appropriation
Representative
of
the
person
in
the
Constitution
has
pro-;
and
Republicans
pur;
-The; high^tide. of new emissions joined
destined
Director
stated.
anticipated that the
move
appears
the
.advices to the New York "Times'*
Sold by the Continental Gas &
Electric Corp., that, issue brought
v
of
Bureau of Investiga¬
tion, J. Edgar Hoover, was unani^
mously voted increased ..by the
House on May 3 from $10,000 to
$14,000 a year, the increase to
remain in .effect as long as Mr.
Hoover occupies the post, special
Electric Co.
Next Week Busy
dinner Mday evening.
cash, assert¬
this was the reason it was
seeking to finance the purchase of
ing
455 shares of common stock of
One of the traditional features
at
contrary
Columbus
of the Field Day, the Bond
much of its available
the Federal
such*undertaking, expected to
reach market today if results
of
Tuesday's
bidding
were
cleared by SEC involved 744,'-
events.
assets
the
bankers show
Entertain¬
winners
to
sentence"
such issues for redistribution to
,
ment, has promised free rides on
a bicycle treadmill on the Sleepy
Hollow Midway.
A wide variety of prizes will
be
"death
curities involved.
William... G.
Laemmel,
Bank
&
Trust
Co.,
Outdoor
outstanding.
of. the
Holding Company
Act, are not encountering much
difficulty in disposing of the se¬
by
activity in underwrit¬
engage in strenuous ath¬
of
under the
clause
wearied
too
„
company stated that this
undertaking would likely require
Utility Stocks
program.
and
work¬
The
this
added
was
ing in plans to refund $44,901,000 of first mortgage
4% bonds
pros¬
v
"
Commission for authority
$2,000,000 of certificates*
merce
operation involving $100,000,000
least, with indications that it
at
tially raise the total of the
:
In
into
Recognizing the popularity of
horseshoe pitching since it became
House
^
v
railroad
refinancing,:
for the account of Western
Mary-,
land Railway 'appears to be
shap¬
ing up and should develop in de-'
Exchange Com¬
be
mittee.
has
number of recent issues^
are still around in siz¬
Another Rail Issue Looms
30-year
with the
Meanwhile Texas Co. has
for
Wall
Street's tennis players by Clifton
A. Hipkins,
Braun, Bosworth &
Co., Chairman of the Tennis Com¬
White
a
able
sues
month.
arranged
Club
the
panies and other institutions stilL
keep their aloofness for new is¬
oil
to
preparation
with
SoconyVacuum Oil Co. jh*vHig> placed
one-day doubles tournament
an
automatic handicap basis
has
tremendous
more
re-
in
in
p.m.
A1
Schacht,
the
"clown
price" of baseball will referee.
A
time goes on.
by
clearing shelves
Several
expected to be in
undertakings
to bid for any special talent dis¬
on
as
of
of
case
2%s, brought out last week, rul¬
ing at a point premium, other
hand
on
which
ing and the raising of new money
in the industry' category.
And
are
to the
(N. J.) offering
much needed tonieresponse
Oil Co.
judging
the
companies have stepped to
companies
sparkling
has provided a
with Standard Oil Co. (N. J.) new
that
with models representing various
re¬
undertaking
Chase National Bank, chairman of
Army
water
in
Oil
player turning in the most birdies.
In a special appeal to softball
players, Robert L. Hatcher, Jr.,
fashion show and beauty contest;
States.
for the general market which has
been responsive
The
the fore with plans for refinanc¬
handicap classes,
prize will be awarded for the
■engineers seeifc^tc*: put into effect Wall Street
sources
Standard
marketing
and
than
more
Cleaning Up
they have to offer.
courses
promised
registration are
including ' several
undertakings.
hesitation
the
open
committee,
number of smaller
a
in
now
have resumed their activity and
the bankers show little or no
low net in three
this
Meanwhile
issues
possibilities,
a.m.
prizes for low gross
recognized
longer-than-
greatly from current levels. At
any
rate corporate borrowers
for matches
Thursday afternoon. In addi¬
to
its
the
outlook for money rates
is such that yields will not vary
in
Club
play at 8
of
and
sizable stock
range
Mr. Marks announced that both
and
view
usual maturity which, has been
fixed.
.
from the money market.
has since been in
in
quality
is evidently the conviction
such circles that the long-
in
holder,
clubs
on
mort¬
Response to the latter offer¬
est
mo¬
It
in future years.
upper
cue
Partial recovery
order.
1941. It is expected that competi¬
tion for this cup will be resumed
and flood control
power
to
their
The Bond Club
Philadelphia
bids
first
ing will be watched with inter¬
ap¬
mentarily perturbed by the recent
let-down in Treasury bonds and
high-grade corporates which take
out against the Hart¬
won
prosepective borrowers
to have been more than
other
of
of New York is the present
Chairman
and
consumer
Neither the investment bankers
nor
inter-city competition in
Chemical
Projects Approved
as
other
in
letics,
legislation which would authorize
lower prices.
Clothing
Long-Range Water
may
crops
team
ing to
the market
unseasonable
be
new
same day Mountain
Telephone & Telegraph
will open bids on $35,000,000 of
40-year 214s.
the recent
Europeans
ing to the farm, improved farm
will
of
States
for the Morgan cup, which is
customarily given to the winning
For
tubing.
ir-n... -
food
There
will .open
Co.
sale
ferred. The
this
game has been scheduled for
will
distributor
Food: Excepting a few products,
such as fruit, dairy products, etc.,
of
for
up
bonds, $6,000,000 of Serial '
notes and 156,300 shares of
pre¬
Richardson.
played
It
My Personal Opinion
P.
ization
frigerated display cases and Fleet¬
a very competitive market.
Many
more
concerns - will
be
making wood Reach-In refrigerators, Air¬
every product
than before the flow pre-coolers, and the patented
war.
winner
judging by the:
issues
gage
The
financing, the outstanding capital¬
.279,000
belong to the second school of shares of common
stock.
thought; they do not expect the
Fleetwood-Airflow,
Inc.
was
buyers' strike but rather slowly
incorporated
in
May
1942
to
rising prices for some years to
acquire machinery and equipment
come.
1941
Howard
was
of
$32,000,000
Robert E. Christie, Jr., tro¬
phy, given for handicap match
play against par, was last won
by John M. Fisher.
a
•
Peabody & Co. (jointly).
Service
The
be used for general corporate
pur¬
able the company to produce
tain completed parts now
Shields &
White, Weld & Co. (Joint); W. C. Langley &
Co.; Merrill, Lynch, Pierce, Fenner & Beane and
Kidder*
roster
Field Day in 1941.
The
score.
cup
on
of
(Joint); Blyth & Co., Inc.;
and
Candee trophy will go
individual with low net
the
to
tion
for
Co.
Hamilton
The proceeds to be received
by
the company from this sale will
and
Halsey, Stuart & Co., Inc.; Morgan Stanley &
Co.; Lehman Bros., Harriman Ripley & Co. and Union
(Continued from page 2791)
pre-war
stockholders.
poses
Issue
Possible bidder*
Assured for Field Gay
Of New York Bond Club
is
the
total offering, 75,267 shares are
being sold by the company, and
the remaining 16,500 shares are
being offered on behalf of two
installation
through competitive bidding.
through competitive bidding.
On Monday the Ohio Public
year
gone i Up
r
methods
people by the throat.
Some day they will regret their
present foolish actions.
Houses under $6,000 have gone up
65% and houses over $6,000 have
[
a
American
build six years ago
$8,250 to build today.
Would cost
until
paint
spraying, etc. At the moment, the
building trade unions have the
cost
$9,000,000 30-year debs., int. rate
into the next week
building
increase
buyers' strike or
the
unions
permit
reasonable
building codes and the use of
The National
a
of
cost
to
Co.
2%%, to be guaranteed by parent.
come.
The
continue
there is either
Housing Agency
! has just released a careful study
on home building.
They find that
.
time to
some
will
i house.
j
I
small, but gradual, increase
prices of consumers goods
in the
new
a
a
include
time
some
&
Record Attendance
2783)
page
to be sold
Wisconsin Public Service
Co., Milwaukee, Wis.
May 20 it was reported that Standard Gas & Electric
Halsey,
Ripley
Electric Light & Power Co;
for authority to issue
not to exceed
•
What About Prices?
(Continued from
(N. Y.)
Securities, Corp.
a
Stuart & Co., Inc., and Kuhn, Loeb & Co.
v
Corp.; Harriman
Jan. 21 company and parent Consolidated Edison Co.
of
New York, Inc. applied to New York P. S. Commission
Co.;
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner & Beane; Shields &
Co., and Glore, Forgan & Co.
Railway
was
fund its $47,000,000 first mortgage 3%s of 1971 with
\
RR.
Interest rate to be specified in bids.
Probable
bidders include Blyth &
Co., Inc.; Bear, Stearns &
Wabash
lower
Pacific
RFC.
syndicate.
'
Boston
April 11 ICC conditionally authorized company to issue
$10,000,000 first mortgage bonds, series B, due Jan. 1,
1981, proceeds to be used to refund a like amount of
first mortgage 4% bonds due Jan.
1, 1974, and held by
Dillon,
Read & Co. Inc., is expected to head the underwriting
May 1 it
in June its holdings of 1,099,970 shares of
common stock;
Probable bidders include The Wisconsin Co.; The
First
Yonkers
Western
standing $40,000,000 3% debentures due 1959 and $60,-
•
Maryland Ry.
May 22 reported company working on plans to refinance
$44,901,000 first mortgage 4s. Probable bidders include
Kuhn, Loeb & Co., and "Halsey, Stuart & Co. Inc.
applied to retirement of the company's presently out¬
000,000 3% debentures which mature in 1965.
Western
Thursday, May 23, 1946
with
Democrats
plauding the amendment.
in
ap~.
.Volume 163
Number 4492
THE COMMERCIAL & FINANCIAL CHRONICLE
purchasers without
lic
offering.
Founded
|Be Treated
(Continued from page 2787)
•F
ecutives
;and
technicians
the
to
greatest possible extent, train lo¬
cal
employees and workers and,
above all," apply decent standards
general pub¬
a
•
1885, MinneapolisHoneywell pioneered in the field
of automatic temperature regula¬
tion through the electric thermo¬
stat.
Through
engineering and
research and timely acquisitions
the company has become a leader
in the production of temperature
control instruments, recording and
indicating devices.
]of remuneration, and conditions of
Tvork
and
living, taking into
ac¬
count the prevailing levels in sim¬
ilar branches- of activity in the
•'.country, v-..
I Investment
less
tries.
•
advanced coun-
The
fundamental
of
local
conditions,
'customs and national traits.
ance
laws,
Mis-
'Understandings and failures will
be avoided by careful market sur-
,
veys,
s
estimates
cost
thought out agreements
the investment is made.
,.
well
and
before
The governments of capital-ex*
porting
countries
it
make
must
possible
through
the
various
'channels of multilateral trade for
'debtor countries to service the in¬
vestments
Their
nationals
pared
should
to'
be
their
leave
for
^abroad
received.
have
they
pre¬
capital
long
periods and to
^nake
reasonable
arrangements
for accommodation in periods of
crisis.
^
'
By conducting their diplomatic
relations in
a
which dis¬
manner
pels any fear of political or economic imperialism, the governliients of capital-exporting coun¬
mortgages in the amount of $544,796, 60,000-shares of 4^4% cumu¬
tive
and
convertible preferred stock
($50 par) of the Trailmobile Co.
The stock is priced at $51 a
share,
plus accrued dividends from. May
1, 1946.
Each share of preferred
is convertible into common
stock
at $27.5,0 per common share for
and
year,
at
$30
as
convertible
share,
the $2.25
preferred
shall not have been
into
stock
common
before June 29, 1946.
ance
can
con¬
on
or
The balance
their nationals in
ing conversion of all the presently
vertible preferred stock).
which
Blyib& Go; Offering
Caterpillar Debs.
."Countries
where
In
•have interests.
the
no
to
internationally
j standards.
On the
An
investment
and for
al
position
current
the
of
securities markets; selections
pre-planned portfolios for the
amounts
different
of
varying objectives; factu¬
appraisals of 34 leading indus¬
tries
with
selections
issues
al
sections
curities
for
the public today
erpillar
the
$800,000
debentures
will
own
.
Trailmobile
Interest
come
reported
five
the Company,
COMMON
of
21,
Company
per
Stock of this
ration
1946, declared
share
was
on
the Com-
jg
johh3
■*
mahvule
stock of
record
close of business June
w.
P.
4,
May 31,1946.
||
1946,
of
transfer
of
this
books
June
on
of
the
tfc
«
75(1
mon
*11'
per
a
citjar
33
PINE STREET, NEW
LEHIGH
N. Y.
of business
Transfer
will
be
record of
said stock
New York 5, N.
a
VALLEY
of
Board
Y.
of
May 16, 1946,
this Corporation
today declared a dividend of $3 per share
on
its
$3
Non-Cumulative
First
Preferred
Stock, 50c per share on its 50c Non-Cumulative
Second
Preferred Stock, and $3 per share on
its Preferred Stock
($50 par value); all pay¬
able June 12, 1946, to stockholders of record at
the close
of
business
on
June 4,
1946.
W. J. BURTON,
Vice Pres.
and Secretary
books
will
mailed by
16 Wall St.,
Transfer Agent.
H.
May
16,
be
not
closed.
Checks
SMITH,
ALABAMA
C.
Wick, Secretary
GREAT
board
of
N.
has
Y.,
been
STATES
of
61
Stock of
the Company,
ending
May
H.
31,
Light Corporation
Preferred
Board
of
Stock
&
New York 6, N. Y.
A
Preferred
of
Electric
Stock
Power
the $6 Preferred Stock and a dividend of $1.75 per
share on the $7 Preferred Stock of the Corpora¬
tion for payment July 1, 1946, to stockholders
record at the close of business
SOUTHERN
May
H.
F.
June
11,
1946.
SANDERS, Treasurer.
declared
payable
UNITED
clared
(Incorporated in Pennsylvania)
12,
1946, to shareholders of record at
of business on May 29,
1946.
Checks will be mailed.
A. HOLLANDER & SON, INC.
COMMON DIVIDEND
Street,
MAHER, Secretary.
PREFERRED
of
Light Company
New
STOCK
$1.50
York,
N.
Y.
clared
the Common
on
payable June
has
10,
stockholders of record
at
been
Secretary-Treasurer
1946,
to
the close
of
business
DIVIDEND
NO.
114
June
3,
1946.
May
Treasurer's Office. No. 165 Broadway.
York 6, N. Y., on Monday, June
17,
record
at
three
May 20, 1946
22,
on
1,
of
P
to
M
SIMPSON, Treasurer,
New
York,
N.
Y„
May
16,
1946.
close
dividend
a
per
share
Directors
at the
Gas
Cor¬
1946,
the
de¬
Com¬
out
was
of
No,
227
<
declared
1
past
1946, to stockholders
business
June
7,
earning
of
reco
1946.
DUNNING;; Secretary.
LIQUIDATION NOTICE
New
1946,
o'clock
Monday, May 27, 1946,
The stock transfer
books will not be closed for the
payment of
this dividend,.^ v;^.....•;.'v
■-
Secretary
1946,
(15c>
of
payable July
A
QUARTERLY DIVIDEND of One Dollar
($1.00) per share on the Common Stock of
Company has been declared payable
at
of
21,
cents
Board
this
stockholders
Albert J. Feldman
'
CORPORATION
THE YALE & TOWNE MFG. CO.
F.
on
Newark, N. J.
GAS
meeting held May
dividend of 20c a share
a
=
the
on
Checks will be mailed.
at
$10 par value, of the Corporation
for payment July 1, 1946 to stockholders of rec¬
ord at the close of business June 11, 1946.
The
Directors
announced
that
the
dividend
just
declared was made payable July 1st so that
future dividends,
if
declared,
could be paid
January 1st, April 1st, July 1st and October 1st
of each year, rather than the dates on which
dividends previously have been paid.
jf. H. Miracle, Secretary.
On
SOUTHERN PACIFIC COMPANY
de¬
DIVIDENDS
per share on the Pre¬
and a dividend of $1.25 n«share on the $5 Preferred Stock of American
Power & Light Company were declared on May 22,
1946, for payment July 1, 1946, to stockholders
of record at the close of business June 5^-1946.
D. W. JACK, Secretary and, Treasurer. -
($6)
a
fifteen
A dividend of 25(5 per
Philadelphia, Pa.'
Charles E. Beachley,
May 20,1946
mmmmmmmmsmmmmmn
vi
;
Stock,
mon
meeting held today, declared a quarterly
close
per
Stock,
value $13.50
Common Stock Dividend
Board cf Directors of United.
The
poration,
dividend of 35 cents per share on the Com¬
mon
Stock of the
Company, payable on
the
the Pre¬
Southern
cents
JOHNS'HOPKINS, Treasurer
COAL COMPANY
a
65
Capital
THE UNITED GAS IMPROVEMENT CO.
1946.
BUCKSTAFF, Treasurer.
The Board of Directors of
at
of
the
on
per share,
has been declared, payable
June 29, 1946;, to stockhold¬
ers of record May 31,
1946.
par
payable by check
PITTSBURGH CONSOLIDATION
June
1946.
21,
&
Light Corporation at a meeting held on May 22.
1946, declared a dividend of $1.50 per share on
Stock
Rector
dividend
share
the
American Power &
J. B. McGEE.
Treasurer.
May 14, 1946.
on
$7
Directors
.
Broadway
States
1,
1946, to stockholders of record as of
close
of
business
May 20,
1946, for the
N.
share
dividend
business June 12, 1946.
POWER
Northern
share has been
per
June 28, 1946, to
stockholders of record at the close of
Company (Wisconsin), at a meeting held
on
May 14, 1946, declared a dividend of one
and
one-quarter percent (1%To) on the Pre¬
quarter
Dividends
$6
1946.
J.
Tennessee.
Corporation'
A dividend of 2^
(WISCONSIN)
directors
the.-
declared, payable
Power
the
1946.
COMPANY
York,
Company
Stock
Treasurer.
NORTHERN
OF
COMPANY
June
Electric Power &
Guaranty Trust Company
J.
A
OFFICE
The
ferred
G.
and
ferred
day
on
at the close'
H. F. J. KNOBLOCH, Treasurer:
April 30, 1946
June 27, 1946,<• to stockholders .of record at the
close of business May 27, 1946.
A dividend of $3.50 per share on the Ordinary
Stock has been declared payable June 27,
194f
to'stockholders of record at the close of business
Two
this
by Bankers Trust
New York 15, N. Y.,
Co.,
The
New
27,
has
of
the close
at
Charles J. Hardy, Chairman
May
Directors
1946, to stockholders of record
of business May
27, 1946.
CORPORATION
COAL
Directors
share
Company's capital stock, payable June 15.
May 17. 1946.
twenty-five cents (25c)
special cash distribution
of
June 21, 1946.
■0
Railroad
a
Checks will be mailed
of New York.
THE
of
dividend
twenty-five cents
per
share and
a
special
dividend. of
twenty-five cents per share on the Capital
Stock of the Company, payable June 10,
1946, to stockholders of record at the
close of business May 28, 1946.
There has been declared, out of the earnings
of the fiscal year ended April 30, 1946, a
diyidend of one and three-quarters per cent
(1 -]4%) on the preferred capital stock of
this Company, payable July 1, 1946 to the
Board
declared
YORK, N. Y.
?'
v
>
The Board of Directors has declared a divi-1
dend of 50 cents per share and an addi¬
tional dividend of 25 cents
unnw-su corporatism
The
The
of
HENDERSON,
^Treasurer.
twenty-five cents (25c) a share have today been
declared by Kennecott Copper Corporation, pay¬
able
on
June
29,
1946
to
stockholders
of
record at the close of business on May 31, 1946.
A. S. CHEROUNY,
Secretary.
PHILLIES
America's
and
share
a
ELECTRIC BOAT COMPANY
holders
A.
TEXAS GULF SULPHUR COMPANY
distribution of
cash
A
„
dividend
share on the Common Stock pay¬
8, 1946, to holders of record
120 Broadway,
Philadelphia, Pa.
May 17, 1946
of
Stock of this Corporation has
per
=1
stock¬
close
7, 1946.
DIVIDEND
has
,
declared
to
the
at
June
on
DONALD
■
May 27, 1946.
Secretary.
Company
been
1946
record
been declared payable June 28, 1946 '
to
stockholders of record at the '
close of business on June 7, 1946. j
ROGER HACKNEY. Treasurer
1946.
Foundry
■>
v
quarterly cash dividend of $.75 S
per share on the outstanding Com-i
Com¬
June
able
Checks will he mailed.
H
sturtevant,
American C vr and
of V
*77^.
dividend'
A
14,
Secretary.
k
of
business
to stockholders
business
The Board of Directors declared
of
at
acr,
close
1946.
cash
Corporation
payable July 1, 1946 to the
such
the
at
June 7,
Corporation
has
payable June 28,
holders
Johns-Manville
TREASURER
A
dividend of $3.50 per share on
ferred Stock of The Alabama Great
1,
stock
HERVEY J. OSBORN,
g|
quarterly divi¬
a
record
on
quarterly
of
$.37 Mi per share on the outstanding
be closed.
not
g
Corpo-
close
PXodu-CT.
the Common Stock of the Com¬
RAILROAD
-'it-"-.
the
stock
The
will
pany
declared payable
of record
crs
dend of twenty-five cents (25r) per
share on
the outstanding shares
desires the services of a
Dept. 40
P. O. Box 226, Church St. Sta.
New York 8, N. Y.
payable July
at
June 15,1946, to stockholdM
May
on
May 16,1946
1"
A
Fifth
record
1946.
fifty cents
DIVIDEND
The Board of Directors of Ameri¬
Cyanamid
of
business
KENNECOTT COPPER CORPORATION
Substantial Investment House
V*
holders
1946.
WHITE
4, 1946.
can
1946 -I;
A
quarterly
cash
dividend
of;, i
$1.12 V2 per share on the outstand¬
ing Prior Preferred Stock of this
Corporation
has
been
declared ■.?]
payable June
15, 1946 to stock¬
Convertible Preferred Stock of this
of
fidential.
HARVESTER
the close of business on June 17,
to the holders of such stock of rec¬
ord at the close of business June
Howard
preferably with Public Utility
Rail
experience.
Write,
giving complete record of ex¬
perience, former connections,
etc. Replies will be held con¬
FOX FILM CORPORATION
NOTICES
Secretary
payable July 1, 1946
New York 8,
SECURITY ANALYST
fi' *
TWENTIETH CENTURY-
other
.
outstanding shares of the
5% Cumulative Preference Stock,of
| dividend of 3:20% for the
and
with
together
SANFORD B.
jjj
30 Church Street
STATISTICIAN
..in
—
apply
cents
record at
inon
|ferred stocks has resulted in ex¬
changes of 83.825 shares. The
HELP WANTED
....
Co., Stone &
declared a quarterly dividend of sixty(65c)
per
share on the common
payable July 15, 1946, to all holders of
pany
the
on
Regulator Co. exchange offer of
shares of 3.20% ConvertPreference Stock, series A
r
plant
.23, 1946,
accrued
The Directors of International Harvester Com¬
The Board of Directors of Ameri¬
the
May 18, 1946. The small
i amount of unexchanged shares,
^purchased from the company by
the
several
underwriters, have
I been sold to a limited number of
the Peoria
at
DIVIDEND NOTICES
—
COMPANY
stock
(50c)
Cyanamid Company on May
21, 1946. declared a quarterly divi¬
dend of
114%
($.125*
per
share
holders of
noon on
strike
a
May 21,
com-
can
*
'I
Unaudited net profit for
from Jan. 29 to Feb.
Avenue, New York 17, N. Y.
A
dividend
of FIFTY CENTS a share has
been
declared
on
the
PREFERENCE DIVIDEND
pany,
at
of
INTERNATIONAL SALT COMPANY
85,700
exoired
&
INTERNATIONAL
1946, of $363,915,
D1VIDEND NOTICES
Company
ik ible
associates
of $230,599,818 lund-net^ profit of
$6,511,895 for the year ended'-Dec,
Associated underwriters
DIVIDEND
in¬
net
-
if Corp. and
constructed.
are to be
The company reported net sales
for the three months ended
March 31,
American Cyanamid
Minneapolis
Minneapolis-Honeywell
| believed to establish a new low
t rate for a preferred issue.
*
The exchange offer which was
f underwritten by Union Securities
ings
funds, to the expansion of its plant
at the Cincinnati plant.
A dividend
of
new
stock is
the
land upon which the new build¬
2%
debentures,
body shop and boiler house
new
Company,
shoulc
(par $100), to holders of its 4%
fand 4%% series B, C and.D pre-
and
The company proposed to
of
| Honeywell Placed
The Minneapolis
Honeywell
i
100%
at
capital
governments.
I
10-year
chassis assembly
building and for
DIVIDEND NOTICES
of
! Slock of
com¬
already purchased
ris, Hall & Co. (Inc.).
be
475
eign investors of the right to pro-
1 tection by their
Co.
Dean Witter
Street, New York 5, N. Y.
f local incorporation to deprive for4
has
the proceeds from the sale of the
purposes;
for
"Outlook
contemplated,
a
Rates"; railroad, utility and cor¬
porate
bonds, preferred stocks,
and a listing of consistent divi¬
dend-paying
common
stocksmailed without obligation—write
to
Dept.
"T"—Merrill
Lynch,
Pierce, Fenner & Beane, 70 Pine
ii
technicality
expan¬
proximately $30,000,000. The
pany
$20,000,000 Cat¬
Tractor
spent for additions to the present
timely article
a
is
It
individu¬
of
specific
including
capital.
approximately
U. S. Government se¬
on
the
on
acceptable
other hand
.
invoke
not.
underwriting group headed
by Blyth & Co., Inc., is offering to
according to the prospectus, that
of
j capital-importing countries should
•f
this
corresponding- period in 1945, this
the
whose conduct does not conform
*
Cost of
sion program is estimated at ap¬
Webster Securities Corp. and Har¬
P state protect its nationals abroad
;
-new
Machinery and
comparison reflecting, the. effects
ing
analysis
national!
case
involving
new
051,992 against $2,108,835 for the
and outlook for both business and
a man
distrust
111.,
equipment.
31, 1945.
interest.
capital-import¬
engenders
Peoria,
the first quarter of: 1040 was $1,-
are
ing countries. To protect the per¬
il son and the interests of nationals
/. abroad is a recognized function of
^the^ state, ~ but this responsibilit:
ner
con¬
will be used in the acquisition of
policies against
f should not be fulfilled in
at
buildings and
(assum¬
par
additional facilities and for work¬
contribute to the avoid¬
of restrictive
stock, $5
outstanding $2.25 cumulative
*
tries
maximum of 424,880 shares
a
of common
share
per
of such shares of
verted
page booklet covering 34 in¬
dustries—includes
review
and
company will consist of real estate
lative convertible preferred
stock,
stock
Security and Industry Survey-
Upon
completion of this financing, out¬
standing
capitalization
of
the
of underwriters, is offering
today to the public 60,000 shares
a new issue of 4V4%
cumula¬
cumulative
64
corre¬
of
of all
of
rules
■business, however, always require
caution, responsibility and fore'signt.
Many of the disappoint"ments that occur are due to ignor¬
pared with $124,110 for the
sponding period last year.
group
Proceeds from this sale will be
used to" the extent
required for
the redemption, at $52.50 a
frequently offers prcs>pects of larger return# than in*
more
W. E. Hutton & Co.,
heading a
thereafter.
developed
countries
'vestment in
Trailmobile Pfd. Slock
one
n,..«4v-v
in
W. E. HuIlonCo. Offers
in
2827
The
Meriden
National
Bank,
located
Meriden, Connecticut is closing its affairs,
creditors of the association
notified
Dated
to
May
present
13,
are
claims
therefore
for
her
payment.
1946.
FRANK O'BRION,
:
Cashier
THE COMMERCIAL & FINANCIAL CHRONICLE
2828
Industrial Chaos
Following Gosl Strike
To Be Discussed at Chicago May 27-29
which is following in the wake of the nation-
Industrial chaos
;
subjects of discussion
at the 31st annual international convention of the National Associa¬
tion of Purchasing Agents, to be held in the Stevens Hotel at Chicago
on May 27, 28 and 29.
This announcement is made by Charles L.
Sheldon of Watertown, Mass., pur-^
chasing agent for the Hood Rub¬ Insurance Co., was elected to suc¬
Langbourne M. Williams,
ber Company and President of the ceed
N.A.P.A., who declared the slow Jr. Rolland J. Hamilton, Secretary
down in production on the indus¬ and Treasurer, American Radiator
trial front will make harder the and Standard Sanitary Corp., was
Treasurer.
Clyde L.
lot of purchasing agents, who are re-elected
already scouring an under-sup¬ Rogers, Administrative Assistant
to the President, was elected Sec¬
plied market.
*
:
"The coal strike," he said "is the retary.
Trustees elected for three-year
latest of many difficulties thrown
"wide coal strike will he one of the important
•
path of orderly procure¬
Others in¬
the
in
ment and reconversion.
controls
materials
and supplies- artificially scarce,
natural scarcities as a result of the
war, and the long pent-up desire
for goods
which suddenly has
over-rigid
clude
made
have
that
released
been
price
many
on
all sides
a
as
Vice
Chairman,
National
City Bank of New York C. L.
Campbell, President, The Con¬
necticut
Light
&
Power
Co.;
Irenee du Pont, E. I. du Pont de
Nemours & Co., Inc.; H. J. Heinz,
gess,
James
Co.;
Heinz
J.
H.
President,
Kemper,
Chairman,
Casualty Co.;
S.
result of the end of the war and of
Lumbermens Mutual
reconversion."
Kent, President, Council
of New York University; Edward
On Tuesday
afternoon, May 28,
Patton, President of the
Creek Consolidated Sales
L.
M.
Cabin
Co., Chicago, will lead a forum
session on "The Future Outlook
for Coal."
The forum has been
arranged by the association's na-
which
H. Gehring, member of the
tional committee on coal, of
■
W.
Nemours and
de
Pont
du
'pany,
Inc.,
Chairman.
Com-
is
Wilmington, Del.,
Economists,
Vice President, Ra¬
dio Corporation of America; Eu¬
gene Meyer, Editor and Publisher,
"The Washington Post"; Ralph T.
Tapscott, President, Consolidated
Edison Co. of New York, Inc.; C.
F. McGrady,
Govern¬
officials, Army representa¬
prominent businessmen
will address the convention. Roy
fill
a
for
Trustee
Trustees
year
to
class
expire
of
one
the
in
vacancy
tives and
<
Corp., was
Kimberly-Clark
ment
<
President,
Parker,
G.
elected
Republic
President,
White,
Steel Corp.
Cola
1947.
Stiles, purchasing agent of the
Stewart-Warner Corp., Chicago, is
whose
terms
2796
Business
Man's Bookshelf
2827
Calendar of New Security Flotations
*
Canadian
Securities;
Dealer-Broker
mendations
Again Heads
Col. J.
Investment
of
Corporation, was re¬
elected Chairman of the National
Board
on
dorf-Astoria Hotel. Dr. Virgil Jor¬
Charles
.
tendered
2790
2811
prohibited
Our
Reporter's Report...
2826
with the Enemy Act.
2794
eral
Public
Utility Securities
Railroad
Securities.
Real- Estate
Securities.
Salesman's
Securities
Now
Whyte
Board,
the
Chairman
of
nounced
1932, was
Neal
Dow
Becker, President of the Intertype Corp., was re-elected Chair¬
Vice
Conference
Chairmen
Board
were
re-elected: Neal Dow Becker; Ed¬
gar
Monsanto Queeny, Chairman
of the Board, Monsanto Chemical
Company; Harry E. Ward, Chair¬
man
of the Board, Irving Trust
Company; and Arthur M. Collens,
President,
Phoenix
2794
;
recently
thorized to ship packages of food
.
Says.......
Germany,
2795
on
page
on
page
to sup¬
plement the short rations obtain¬
in
able,
a
Washington
M.S.Wien &Co.
on
ident
Transamerica
of
duties
the
iner in 1932 and
was
of that Division in
a
first
Husbands
Mr.
15.
about
office
that
of
Exam¬
made Chief
an
1936.
He
was
corporation from
January 1946. In addition
director of the
to his duties
as
member of the
a
the
RFC,
office of
President of the Federal National
Board
of
Directors
Husbands
Mr.
of
held the
Mortgage Association and Defense
Corporation; he was a mem¬
ber of the Board of the RFC Mort¬
Plant
<
Y. Security Dealers Asfn
Y. S
Totetroe
HA. 2-8780
1-1397
"
^
Y.
N.
report from
Sheraton Corp.
Trading Markets in
Amalgamated Sugar
Int'I Resist. 6% Pfd. & Com.
American Time
Ironrite Ironer Com. & Pfd.
Artkraft Mfg. Com. & Pfd.
Baltimore Porcelain Steel
Kropp Forge
Thompson's Spa
Units
Kut-Kwick Tool
Bendix Home
Appliances
Buckeye Incubator
Clyde Porcelain Steel
Lear Inc.
Majestic Radio & Television
O'Sullivan Rubber
Consolidated Industries
RALPH F. CARR & CO.
Sheraton Corporation
D. B. Fuller
Milk Street, Boston 9, Mast.
31
Du Mont Laboratories
Telecoin Corporation
Trans-Caribbean Air Cargo
Boston
Globe Aircraft
Teletype
Hanover 2-7913
BS 328
Virginia Dare Stores
Higgins, Inc.
New York
Hubbard 6442
Ventnor Boat Works
Greater N. Y. Industries
Wilcox-Gay Corporation
Nets
York
NASSAU
Security
We
j
Industrial Issues
Association
NEW
YORK
telephone
Enterprise 6015
REctob 2-3600
specialize in all
Insurance and Bank Stocks
Investment Trust Issues
Dealer*
STREET,
philadelphia
Public
5
new
yobk
Utility Stocks and Bond*
TEXTILE SECURITIES
bell teletype
1-576
Securities with
a
New Eng. Market
Frederick C. Adams & Co.
A Market Place for
New
Specialists in
England Unlisted Securities
24 FEDERAL STREET, BOSTON 10
Low Priced Unlisted Securities
Established in 1922
Tele. BOston 23
Tel. HANcock 8715
Aircraft & Diesel Equip.
Happiness Candy
Huron Holding
Automatic Signal
Bendix Helicopter
Lava
Cosmocolor
Copper Canyon Mining
Martex Realization
J
Linn Coach & Truck
Cap Gold
simplex
paper co.
Duquesne Natural Gas
Petroleum Conversion
Differential Wheel
Rademaker Chemical
A
Drico Products
Recordgraph Corp.
ficiary of the:
Federal
potential postwar bene¬
Red Bank Oil
Asphalt
Gaspe Oil Ventures
Globe Oil & Gas
Southwest Gas Producing
Haile Mines
Automobile,
Building,
Reiter Foster Oil
Standard Silver & Lead
Morris Stein & Co.
Established
50 BROAD ST.,
and
Frozen Food
industries.
• **
1924
HANOVER 2-4341
N. Y. 4
TELETYPE—N. Y. 1-2866
Teletype—N. Y. 1-971
HAnover 2-0050
1919
ESTABLISHED
Members N.
40 Exchange PI., N.
the Associated Press stated.
2819.
an¬
gage Company, Defense Supplies
Life Corporation, among others.
Mutual
Firm
of
urged that private citizens be au¬
under "Securities Now
Registration"
Cinema "B"
ing general of the Office for Gov¬
ernment
2819
Registration
Ohio Securities Section
♦See
Avon Allied
command¬
to the conquered country
May 9. Mr. Husbands
1939 to
of the Trustees.
following
Lieut. Gen¬
Clay,
will become Executive Vice-Pres¬
June
The
D.
I
U. S. Finishing
Trading
2800
Corner
Tomorrow's Markets—
Walter
Lucius
?
Scophony, Ltd.
2796
Securities
in
the
under
District Theatre
ship¬
previously
the
with
went with the RFC as
The
such
been
Reporter on Governments
Henderson,
B.
Conference Board since
of
having
Our
45
service
continuous
dan, who has been President of The
man
ments
American Molassesi
to Germany,
Japan,
2798
telephone
:
President.
and
Rhodesian Selection
INCORPORATED
Corpora-?
May 16 at the 30th Annual Meeting tion with headquarters at San
of The Conference Board at Wal¬ Francisco, Calif., and will assume
re-elected
relief supplies
Austria
NSTA Notes
Member*
RFC,
F. Drake, President
Conference
2790
Mutual Funds.
legislation
signed
by
President Truman on May 16 any
perspn in the United States may
send
Recom¬
Literature
and
England Public Service
Gaumont-British "A"
Under
in
Husbands Resigns
From RFC
of
the Gulf Oil
Industrial
2804
New
his resignation to the board of di¬
rectors after more than 14 years
Conference Board
v
Broker-Dealer Personnel Items
Relief Packages
For Germany
Kobbe, Gearhart & Company
Sam H. Husbands has
Drake
jPage
2802
F.
general convention chairman.
■.
•
General Panel
M.
I.
purchasing department of E.
^
I.
Fred
.v'..•
Randolph Bur¬
terms are: Dr. W.
II,
INDEX'V.
0
Bank and Insurance Stock.....
Thursday,- May 23, 194Cj
Only
a
small issue of
com-
stock.
mon
Trading Markets
Recent Price
THE FRESNILLO CO.
.,
1Q %
♦**
Write
and other Silver Shares
Specializing in Ulnlisted Securities
call
or
for
descriptive
analysis.
f!ARL MARKS & TO. INC.
FOREIGN SECURITIES
Bank — Insurance
SPECIALISTS
148 State
New York City
N.
Puklic
St., Boston 9, Mass*
CAP. 0425
Tel.
50 Broad Street
Y.
:
Telephone
i
Teletype BS 259
HAnover 2-7914
^
Utility—Industrial — Real Estate
Lumber & Timber
Northern
San-Nap-Pak
(A
low
priced
dividend
common
Pressurelube, Inc.
1.
U. S. Radiator, Pfd.
♦General Products
Engineering Works
Sunshine Consolidated
paying
per
years
2.
W. T. BONN & CO.
Broadway
-
New York 5
Current position 4.4 to
Available under $6 per share
Empire Steel Corp.
i\t
v-'-h, "'
I''*.- *4
-t
•*'
V
Amos Treat & Co.
BO 9-4613
t,
New York
on
y
•«£..
request
1
N. Y.
Tele. NY 1-1448
REITZEL, INC.
REMER, MITCHELL, &
208 SOUTH LA SALLE ST.,
40 Wall St.
Telephone COrtlandt 7-0744
Bell Teletype NY 1-886
BOUGHT—SOLD —QUOTED
share
3.
120
^Susquehanna Mills
^Prospectus
Reiter-Foster Oil
Corp.
stock)
Average earnings for 5
$1.04
Bonds, Preferred and Common Stocks
CHICAGO 4
WESTERN UNION TELEPRINTER
"WUXf
•
•
PHONE RANDOLPH 3736
BELL SYSTEM TELETYPE CG-989
Hill, Thompson & Co., Inc.
Markets and Situations
120
for Dealer#
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
I
@FedFRASER