Full text of Commercial and Financial Chronicle : May 24, 1945, Vol. 161, No. 4388, Section 1

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MAY 2 5

Final Edition

ESTABLISHED OVER 100 YEARS

1945

In 2 Sections-Section

1

Reg. U. S. Pat. Office

Volume

Number 4388

161

New York, N. Y.,

Russia's "Multiple"

Tells "Chron¬
of Queries Re¬

garding Its Effect on Voting and
Executive Control of Fund and
Bank. House Banking Committee
Vote on Measure Expected Soon.
Treasury's Interpretation pf Scope
of International Fund Cited in Sup¬

of Amendment to Limit Lend¬

ing Power.

By J. HOWARD PEW*

President, Sun Oil Company

Oil Executive Condemns Trend Toward
Cartels

San
in

May 23.—In
Russian demand at
Francisco Tuesday for 16 votes
the
Assembly
of
the
new
the

Or¬

Security

ganization, the
question is be¬
ing asked in
Congressional
"What

circles:
about

the

16

Soviet

Social¬

ist

Republics

and

the

ton

W

Bretd

o o

s

Agreements?"
Representa¬
tive

Jessie

'

Sumner (Rep.-

111.) today in¬
the

formed

"Chronicle"

representative

Jessie

Index

Half.

a

Example of

as

Cites Proposed Anglo"Super-State Capitol" That

a

Would Lead to "Nationalization" of Oil and Other Industries.

Asserts

Government

Sponsored Cartels More Dangerous Than Private Agreements, "Because There Is No Means for Their Eradication" and Favors
Lower Tariffs and Less Trade Restrictions.

\

•

of

to

in

sat

the

\

:

vate Business Cannot

Demand. Recommends
as to Consolidate All
Agencies Associated "in Giving Reality to Fiscal and Monetary Policy"
Speaks Favorably of Murray Bill and Says Its Ideas Deserve Support.
Today most business

able

to

under

"Point

the rules of a'

No

—

Return,"
that

and

point

whether

safe

t

go

Social Welfare Problems
and International Trade to Be Taken Up by Sup¬

■>,;

How

strings
the

Specifically Designated in Charter. U. S.
Chamber of Commerce Expects to Be "an Affiliation." Dutch East Indies Status Under Trusteeship.

made

the

\

de¬

J.

Howard

Pew

Ukraine Desires Trade With U. S.

We

Point-No-Return.

have

SAN FRANCISCO,

ex¬

address by Mr. Pew at

-

the

of the National
Industrial Conference Board, Wal¬
New

Hotel,

(Continued

night.

v.

2292)

R. H. Johnson & Co.

BOSTON

HAnover K-0G00

Troy

Chicago

Cleveland

we

that

the

present

at

STOCKS, INC.

Bond
:;!/3

Beardsley Ruml
v.

LONG and

W.

COMPANY

'INCORPORATED
48

'

:

,

.

con-

of

634 SO. SPRING

WALL STREET

ST.

LOS ANGELES 14

NEW YORK 5

by Mr. Ruml at a
Business

the

Liberal

York

New

Astor,

(

Men's

Party,1 Hotel
City, May 22,

1945.

:

(Continued

on page

2306)

A. Wilfred May

v

.

.

However,

State and

Municipal

Brokerage

Service
ui >.>*.

i}'.:n

.t'

|

inn.

•;

Bond Department

Hardy&Co.

Prospectus on Requesr

HUGH

PHILADELPHIA

Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Springfield

-;V*

war-time

the

of

and Dealers V

j

York 5

of

addrbss

(Continued on page 2294)

NEW YORK

INVESTMENT SECURITIES

64 Wall Street, New

25 Broad St., New York 4, N. Y.
Teletype NY 1-210

And

know

Council

applied under the aegis of the Security Council.
;

;

Established 1927

,

given full

*An

for Bank89 Brokers*

Exchange

RepVl

capacities

are

■'

proposals mention eco¬
general way, as a measure

nomic sanctions in a
to be

on page

,a;/

The Dumbarton Oaks

York

City, May 17, 1945.

Exchanges

Geneva

if

cal

against aggressors, your correspondent was as¬
sured by one of the United States delegates last

Hirsch & Co.
other

can

techni¬

luncheon

As

VICTORY

and

i

or-

newness

CAL., May 23.—The man¬

they will determine the exact manner of pre¬
scribing the use of this very important weapon

Meeting

for

London

and'

and

men

.

waging economic warfare through sanc¬
be taken up during the coming week.
soon as the big powers finally resolve the
nettlesome trusteeship and regional controversies,

done

economic

unorthodox

Annual

to

chines

rein.

tions will

perimenting in this country. In¬
dividual-freedom
and personal

HIRSCH, LILIENTHAL & CO.

f
-

of

ner

...

* An

o
m a

time, with the

Now,

much

evidence
what

their

Not To Be

pulled
pilot

is

accomplish

plementary Conferences. "Affiliated" Organizations

hear t-r

time

-

ganization

un¬

known.
his

_:of Economic: Sanctions in Combating Aggression. Expressed
on "Education" and "Full Employment" Contested as Smack¬

ing of "Totalitarianism."

forward
the

pro¬

unanswerable

Objectives

a

landing

into

as

Place

o

to *

return

.

Special Correspondent of the Commercial and Financial Chronicle

he
decide

are

economy

By.A. WILFRED MAY-

was

reached
must

or

war

before

that

The

we

duce

War Loan!

York Stock

what

of

Buy War Bonds

Successors

that the elimination of mass

agree

^demonstration

Mighty Seventh

Members New

men

unemployment is the first requirement for the post-war period.

approaching

in the

-

Sustain the Employment

Changes in Executive Branch of Government So

and others

dorf-Astoria

Buy MORg Bonds

Explicit Fiscal and Monetary Policy, It Will Act When Pri¬

the

cockpit-

on

:

on

Employment With 55 Million
Income, We Must Have in the Transi¬
the Part of the National Government That,

•

there is a point, in our
voyage toward economic collec¬
tivism which aptly may be termed

Features

Commitment

a

an

to

pilot told him
that they were

••

page 2308.

Army officer recently told me that in flying from Labrador
the other side, his airplane encountered a terrible storm.
As he

this

Regular

Through

An

raised

Treasury

Have Full

tion Period

Agreement

cision!

question with
and that "they do
not consider it important or af¬
fecting Bretton Woods, and I can(Continued on page 2301)
the

Mr. Ruml Maintains That

Trade Freedom of the Last Century and
American Oil

has

Sumner

Treasurer, R. H. Macy & Co.

Treaty Dominated Trade and

Free Enterprise.

Jobs and $140 Billions National

she

that
Hon.

on

Chairman, Federal Reserve Bank of New York

■

WASHINGTON,
of

Phase of the Attack

as a

By BEARDSLEY RUML*

1

Holds It Reverses
the Basis of American Economic Progress and Denies the Lessons of

-

view

Copy

Cooperation of Government
International Trade
And Business For Prosperity

Upset Bretton Woods

port

a

Dangers of Dominated

Nation Status May
Rep. Jessie Sumner
icle" Representative

Price 60 Cents

Thursday, May 24, 1945

THE CHASE

Members New York Stock Exchange

Members New

York Curb Exchange

30 Broad St.
Tel.

DIgby 4-7800

New York 4

NATIONAL BANK
THE

OF

Tele. NY 1-733

NEW YORK

CITY OF

Acme Aluminum

RAILS

Tide Water Power

Alloys, Inc.

ELECTRONICS

'

J

Company

Aireon Manufacturing

11-

;

BROKERS

Corporation

INDUSTRIALS

MEMBERS

Kobbe', Gearhart & Co.
INCORPORATED

NEW YORK STOCK EXCHANGE

14 WALL
ST.. NEW YORK 5.N.Y.

TELEPHONE-RECTOR

2-6300




Members N.

45 Nassau
Tel.

Y. Security

New York 5

Street

REctor 2-3600

Dealers Ass'n

Teletype N. Y. 1-676

Philadelphia Telephone:

Enterprise 6015

'

.

Analysis

.

.

upon

n.

_

•...

.

request

Preferred

Prospectus

Bull, holden & c°

J'

Common & Preferred

BOND

on

request

Reynolds & Co.

Members New York Stock Exchange

120

Broadway, New York 5, V. Y.
Telephone:
Bell

REctor

Teletvoe

NY

HART SMITH & CO.
New

York

Dealers

52 WILLIAM ST., N. Y. 5

Bell

2-7400
1-635

Security

New York

Teletype NY

ira haupt & co.
Members of Principal Exchanges

Members

Assn.

HAnover 2-0980
1-395

Montreal

*"

Toronto

111

Broadway

New

York 6

REctor

2-3100

10 Post Office Sq.
Boston 9

Hancock 3730

Tele. NY 1-1920

Direct

Private

Wire

to Boston

.

Trading Markett in:

■

&

Pfd.

Old

Old

&

New

:

Sulphur

Members

Security Dealers Ass'n
of Securities Dealers, Inc

40 Exchange

Member> IV. Y. Stock Exchange

York Stock Exchange
York Curb Exchange

New
New

Tel.

Members New York Stock

.

2-7815

REctor

> 25 Broad

KY 1-423

A & B

& Pfd.

Elk Horn Coal, Com.

International Elevating
Jonas & Naumburg

Secretary Morgenthau Discusses Management
Of Public Debt in Post-War Period
Expenditures for 1944
Secretary Says Policy
of Concentrating a Large Proportion of the Wartime Debt in Securities of Short Maturity Will Continue in
Time of Peace
the Liquidity Element Thus Injected Into Debt Structure Will Be Important Factor in the
Maintenance of Full Employment.
Holds Funding of Major Portion of the Short-Term Debt Into LongerTerm Securities Would Merely Serve to Increase the Interest Cost to the Government and to Shift/the Risk
of Future Changes in Interest Rates From the Government to Private Investors Thereby Making for Instabil¬
ity in the Post-War Economy "As the Government Is in a Better Position to Bear the Risk Than Most Classes

''

Kingan & Co., Com. & Pfd.

ill]

1'

Baltimore Stock Exchange
120 Broadway, N. Y. 5
WOrth 2-4230

of Reviving and

International Financial Measures as Means

Calls for U. S. Participation in

Savoy Plaza

public
summary of

the

important
data
relating
to the Federal

and

finances

Telephone COrtlandt

Teletype

System

t h

New York 5

31 Nassau Street,

Bell

gives *
e

proposed

monetary pol¬

icy to be fol¬
lowed by the
Government.

Byrndun Corporation
Common

A.

S.

-7

this

Punta

Sugar

4s,

ANNUAL REPORT ON

1953

20 Pine Street, New York 5

Telephone: WHitehall 3-1223
Teletype NY

THE

ment
June

for

the

fiscal

the

on

Federal

the

of

nances

1-1843

report

vate

fffj

cial

institu¬
or

central

banks.

Central

bank¬

Members

N.

Y.

37 Wall
Bell

Security Dealers

St., N. Y. 5
Teletypes—NY

Assn.

Hanover 2-4850
1-1126

&

1127

leading

and
cen¬

war

purposes

Bank

the

in 1940
1943,

has

As
A.

deal

Sakolski

U.

and

two

ence

and its

small

in

v

ness

has

and

concerns,

jv

confined
to banks

its

lending

operations

with

The

the

the

public...

banks

widespread

Spread of Central Banking
Central

/

though rela¬
tively recent in the evolution of
banking,

this

finance,

at

throughout

stability is likely to continue
least through the fiscal year

has

rapidly
industrial
and

spread

the

They

for

are

bankers.

and rapid

ushered in

v

almost

WALL

New

York Curb Exchange

V V.

ST.

YORK 5

NEW

HAnover 2-9470

v

Trading Markets

,

j

;,r4'v/v.; Cross Company*
i
Liquidometer Corp.*
Delaware Rayon

,

"A"*
"A"*

New Bedford Rayon

Great American Industries*

Hartman Tobacco*
1

'52

Indiana Limestone, 6s,
*

Analysis

on

request

universal

in

this

sphere,

Members

N.

Y.

Security Dealers

Broadway, New York 6,

111

Assn

N. Y.

NY 1-1026

BArclay 7-0570

devel¬

Wars.

It

period of rapidly ex¬
domestic
and
foreign

panding

a

and

greatly intensified
financial

relations

by facilitating the movements of
capital and the flow of credit. The

R. W.

PRESSPRICH 8C CO.

Members New York

68

Stock Exchange

New

William Street,

BOSTON:

201

GOVERNMENT,

MUNICIPAL

RAILROAD, PUBLIC
&

York

Devonshire St.

INDUSTRIAL
INVESTMENT

UTILITY
BONDS

STOCKS

impact of the progress is demon¬
strated in

the final establishment

of the Federal Reserve

System in

It has become

commercial world.

2300)

Members

Teletype NY 1-1140

opment of central banking during
the last century was the adoption

international

1944, the annual rate of war
expenditures had nearly stabil¬
ized, as the Nation approached its
effective production potential and

Frank C.Masterson & Co.

impelling factor that led to

commerce

By the beginning of the fiscal
year

Investing

Preferred

&

F. H. Koller & Co., Ik.

rule, central banks do not

progress

and other financial institutions.

page

a

Napoleonic

amount

Common

commercial

has been

wartime outlays and taxation.

on

of

in this field,, of gold
as; a monetary standard
gradual, and by almost all the
leading nations.
only in recent years has it ceased This movement became manifest
to extend credit directly to busi¬
after the
Its

moreover,

compared with the huge totals of

(Continued

reserves

essentially

cen-

about the middle of the last cen¬

tury.

Fred F. French
v

group

cash

Stock

Common

:

Jardine Mines

privilege

accommodation.

of

exist¬

been in

advanced steadily
Expenditures
for

was

4

banks to whom it furnishes credit

bank s,

tral

ended

1945.

Associated

and

the

turies, it did not assume the func¬
tions
of
central
banking
until

contraction

^TeeTxecmA^ompaia^

of

the

the Federal Government's expen¬
for

Central States Elec. (Va.)

sys¬

conspic¬

Al¬

uous

a

a cen¬

banking system is meant the

related

though

fi¬

banking. By

assumption by one institution or a

one-half

receipts each
and
rapidly.

Bell System Teletype NY 1-1919

nations

trading

of institutions q!
(usually, an exclu¬
sive
privilege)
of issuing cur¬
rency
consisting
of
circulating
notes,, and,; at the same time, of
receiving the monetary deposits

England,

defense program

tral

Exchange

WHitehall 4-8120

1871.

in

have central banks or

tem of central

century.

most

War

all

Practically
now

by

the

following

Rank :

Franco-German

last

the

Broadway

64

commer¬

peacetime purposes declined sub¬
stantially, expressed as a percent¬
age of their former level; but this

WAR LOAN

Imperial

to the end of the fiscal year

ditures

7th

banking

and

30, 1944.

national

since the

tions

~
creation of the German

1

by pri¬

either

|

J

'

<

between

handled

From the commencement of the

BACK THE

1 4- O

proposed Bretton Woods international pact is an arrange¬
governments.
Yet, it concerns matters normally

The

•

ment

Govern¬

year

■

Adherence to the International
Monetary Fund by a Nation Will Make Central Banking an Arm of Its
Government. The Effect of This Will Be to Subject Central Bank Policy
to the Political and Financial Needs of the Government Rather Than to
the Needs of Business.
This, in Turn, Will Lead to More Economic
Regimentation and Control and a Trend Toward "Statism."

January 3, 1945.
Sir: I have the honor to make

following

Pfds. '

Members New York Stock Exchange

Currency and Credit, Points Out That

of

Treasury Department,
Washington, D. C.,

the

SAKOLSKI'

By A. M.

ing, itself, is a
development

FINANCES

H. G. BRUNS & CO.
Bell

follows;

Stock

Westchester Service

released,

just

Morgenthau

Sec.

Secre¬

report,

tary's

Alegre

Capital

portion

the

of

Campbell

Common

of

text

The

*

;;

Writer, Calling the Bretton Woods Agreements a Treaty Between Gov¬
ernments and Not Between Central Banks rWhich Regulate Domestic

and

fiscal

1-1548

o n

present

■

,

and

7-4070

NY

brief

comments

Exchange

Plain

Edward A. Pureed & Co.

.

30, 1944,

makes

Members New York Curb

7%

Members New York Curb

June

>

England P. S.
&

6

65

Vanderhoef & Robinson

'

Pressurelube
New

Henry
Morgenthau Jr. in the opening
pages of his annual report to Con¬
gress for the fiscal year ended

a

Pfd.

Red Rock Bottlers

/.

3-6s, 1956

our

$3

Increasing World Trade.
Secretary of the Treasury

N Y

1-1557*

Midland United

Adjunct to Latest Annual Report on the Finances of the Nation, Showing Federal
Fiscal Year at $95.3 Billions and Net Budgetary Receipts at $44.1 Billions, Treasury

of Investors."

1-1227

-Bell Teletype N. Y.

NY

La.-Birmingham, Ala.
branch offices V

Direct wires to

as

Members

Exchange

St., New York 4,

HAnover 2-0700

In

Standard Commercial Tobacco

Request

Steiner, Rouse & Co

NEW YORK

120 BROADWAY,

;;

New Orleans,

Delaware Rayon

on

Quoted

—

Members

NEW YORK 6, N. Y. ~
*
Teletype NY 1-672

Telephone BArclay 7-0100
BELL TELETYPE

Sold

Analysis

frfc pONNELL & fO.

and Other Principal Exchanget

115 BROADWAY

HA 2-2772

PI., N.Y. 5

Bought

A >4

,

Co.3| !

Goodbody &

Established 1920

Ass'n

Securities Dep't.

Canadian

KING & KING
York

& CO., INC.

4*4% Conv. Pfd.

Bought—Sold—Quoted

*

CANADIAN UTILITIES:

:

Common
"

New

~

MALLGSY

CANADIAN MINES

Com.

Jefferson Lake

v

CANADIAN BANKS

Louis, Frisco

St.

P. R.

McQuay-Norris

CANADIAN INDUSTRIALS

Com.

&

Pfd.

Markets in U. S. FUNDS for

We Maintain Active

Liberty Aircraft
Missouri Pacific

Nat'l

Thursday, May 24,
1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

Knowledge

•

...

Experience

•

Facilities

for Investors

the United States in 1913, despite

(Continued

2288)

on page

Gas
New York

Associated

FASHION

PARK, Inc.

Debenture

5's

HOWARD

1963

Electric
All

Service Company

Ohio Securities

STORES

$3.50 Cumulative Preferred

Ohio Water

Market

for

Common

Issues

Wm. J. Mericka 6- Co.

Bought—Sold—Quoted

BOUGHT,

INCORPORATED

Troster,Currie&Summers
G. A. Saxton & Co., Inc.

1,70 PINE ST., N. Y. 5 WHitehall 4-4970 I1
*'

I

Teletype NY 1-609




Simons, Unburn & Co.
Members New York Stock Exchange

25 Broad

Members N.
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Security

Union

Commerce

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Members Cleveland

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♦ i

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J'J

Vi,

K.x

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Buffalo

to

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':

*'

*

'

If.'

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29

Cleveland

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WHitehall

Direct Private

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A' .'I

4-3640

Wire to

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>..)■

l.ii

14

^(og/IU

SOLD

&

QUOTED

161'r. Number *-4388

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE
The

Line

Amer. Barge

COMMERCIAL

FINANCIAL
Reg.

J.•

V:

V

Patent

'■

-

Bird & Son

Thursday, May 24,

V

Public Utility and Industrial

rPublished twice

a

by

FRIEDRICH A. HAYEK
Reprints

Telephone HAnover 2-4300

;

r

leve'-headed

the

first

Teletype NY 1-5

of

Readers'
this

book

Digest

startling

will

be

Very few left.

request..

yet

sent

First

on

come,

served.

WALL

99

Members New York Stock Exchange

v/;

;

•

of

condensation

25 Broad Street, New York

week

every Thursday

^.

"The Road to SERFDOM"

II Spencer Trask & Co.

>•

1945

AND COMPANY

PREFERRED STOCKS

/ •

■

llCHTEIlSTtin

"

'

'-

William Dana Seibert. President

■,

offerings of

Nigh Grade
5

William D. Riggs, Business
Manager

■

[r

.

Seibert;,'•"'•

Editor and Publisher'

Gisholt Machine

-v

Place, New York

Herbert D.

V

•'/l

•

PEctor '2-9570 to 9576

( '
■

Rockwood & Co.

We are interested in

Office

Publishers

25 Park

Grinnell Corp.

and

CHRONICLE;

William B. Dana Company.

'[•'.! <"

Whiting Corp.

u. S.

2279

STREET,

NEW

Telephone WHitehall

YORK

4-6551

(general news and advertising issue)

STRAUSS BROS.
New York Security

Members

Broadway

32

and every

1

Federal Taxation in Post-War

(complete statistical issue—market quo¬
tation
records,
corporation,
banking,
clearings, state and city news, etc.)

Board of Trade Bldg.

1

CHICAGO 4

NEW YORK 4

Monday

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DIgby 4-8640

Harrison 2075

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Teletype CG 129

Other

Offices:

13b

S.

La

.

Salle

land, c/o Edwards & Smith.

Estate

Copyright

Securities

Department

Specializes

in

Reentered

B.

Dana

Company

second-class matter Feb¬

PRUDENCE BONDS
for quotations

'

t

Members

40 Wall

New

York

St., N.Y. 5

-

Stock

Exchange

WHitehall 4-6330

Bell Teletype NY

Aid Reconversion by Easing Financial Burdens of Small Concerns and
by Advancing Dates of Excess Profits Tax Refunds. Holds Basic Prob¬

Complete Statistical Information

Remain, but That the Level
Shape of Post-War Taxes Are Being Officially Studied/Including
Repeal of Excess Profits and the Double Taxation of Corporations.

Fairness
It is

Record—Mth.$25 yr.
Monthly Earnings Record—Mth.. .$25 yr.

has

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

as

honor and

an

to you on

Other Publications-

a

.•

t*

39

old

KAnovcr 2-8970

-

•

^

•

•'

.

f

•

....

...

...

r

••

and

periods

post-war

national problem of

good

American

ua

New York

Foreign Trade Zone

the

very

Appliances

is a
first

*Flour Mills

By THOMAS E. LYONS*

Lyons Describes the Functions of Foreign-Trade Zones or "Free
Forts" and Enumerates Their
Advantages in Developing Foreign Trade.
He Points to the Success of the New York
Fhreign-Trade Zone, the
Only Such Organization Thus Far Established Under the Celler Act
Distinct

Advantage of the Foreign-Trade
Zone Is That It Brings a New Competitive Facility Into Field of
Foreign
Trade, and Is More Convenient and More Economical Than Bonded
Warehouse.

Urges Canada Establish Foreign-Trade Zones.

Now that the paramount task of

defeating the Axis is well on its
both the Dominion of Canada and the United

to completion,

way

arei-

State^
faced
the

rial

N. Y. Bond Club Pres.
Jas.

machines

time

Inc.,,

needs

what

and

portant,

-

to

new

jobs:-for
workers

and

;and

'V: "

,

on

1;

b

has

nominated
held

of Commerce Wallace

for

that

post

The

Department

heves that
m

a

billion

dollars.

of Commerce be-

substantial increase

foreignTrade,

both imports and
exports, is essential to the achieve¬
ment of these
goals. i1

Consequently,
pable

of

every

accelerating '

elations with

■-'

.

,

device
our

V

•

trade

other .nations will

u*llized fully in attaining this
mPortant post-war
objective.
In.
searching for
ways
and
eans of this
character, we in the
oris

Mmteau

Wright- Duryea
& Co.; Frederick
L; Moore, of Kidder, Peabody &
Co., and Alfred Shriver? of Mor¬
gan Stanley & Co.
Continuing Governors will be:
Frederic H.
Brandi,- of : Dillon,
years,
are
of Glore, Forgan

Miy. Lyons before

Club of Quebec, at the

Frontenac, .Que., May 16,

(Continued

on

page 2298)




ways? to
the

with

-

Trust <:Co.; ? T. Jerrold
of Clark, Dodge. &; Co.;
Adrian
M. Massie, of •• the, New
York
Trust
Co.;
Charles
L.
Morse, Jr., of Hemphill, Noyes &
Co.; Henry G. Riter, 3rd, and Ed¬
ward K. Van Home* of Stone &
Webster and Blodget, Inc.
The Nominating Committee con-,
sisted of Joseph A. W/. Iglehart,
Chairman, Richard de La.Chap-

Empire

con¬

be

Buffalo,

merce,

Y.

May

011 page

N.

2302)

J.F.Reilly&Co.
Members
-

-

Neva. York

Security Dealers Assn.

40 Exch. PL, New York
HAnover

Bell

5, N.Y.

2-4785

System Teletype, NY 1-*J480

Private Wires to Chicago & Los Angeles

Surely

(Continued

18,.

Let's Raise the Flag
Over

Some

Opinions

Brelton Woods

on

ll '

By M. S. SZYMCZAK
Member, Board of Governors, Federal Reserve System

Mr.

Szymczak Calls Attention to the Interest of Federal Reserve System
Since Operations of Both
Will Aflect Our Currency, He Upholds Reeommendation Congress Provide an Advisory Council for
1;. Country^ Representatives on the Two Institutions.
Analyzes Criticisms of Bretton Woods and Con¬
cludes That the Alternative, viz: (1) Return to the
m- International Gold Standard and (2) Deferment of
the Fund Until After the Transition Period, Are

Tokio

Too

BUY
BONDS

in Both the International Fnnd and the Bank.

Not Desirable. Holds Rigid Gold Standard Is Im¬
practicable and Need for Currency Stabilization Is
Imminent.

'

Hiriod
eaemuers
'

New

Federal

Woods

Bretton

technical

The

[o.m

..

n.

'COrtlandt 7-6190

Teletype NY 1-84

Interesting Postwar Situation

(Circular

V

~

&

Security Dealers Ass

LEA FABRICS
An

on

Request)

SUGAR

Reserve

Agreements.

.

Bell System

is necessarily interest
in both the technical and the policy aspects of the
The

York

170 Broadway

SECURITIES

as¬

pects are very important. Both the Fund and the
Bank, whose head offices would be ih this coun¬
try,
be

Szymczak

s.

m.

would have
handled

valuable

and

a

multitude of transactions to
- They
would possess

recorded.

assets such

as

gold and securities that

must be

kept safe. Their fiscal agency and depositary functions would
and varied and would require the special and technical skill
of traineu and experienced executives. * In the * United States they
(Continued on page 2303)
;
.
be many

DUNNE & CO.
Members New York Security Dealers Ann.

25

'

•

Quarterly dividend paid April 16, 1945

;:l:.'-.Ill
1945

$1.25

—

—

1944 $2.75

—

I

v

on

,'*:'

National Radiator Co.

Industrial Finance

request

Established 19H

_

,

74

V

Preferred

C. E. Unterberg &

HoitRsseSTrqster

;■

;

Wire to Boston

1943 $4.50

Approximate selling price—28
Circular

Private

& Trust Co.

$.50

?lvv:

DIVIDENDS:
(to date)

New York 4, N. Y.

3-0272—-Teletype NY 1-956

Public National Bank

PANAMA COCA-COLA
:

Broad St.,

WHitehall

.

Dunstan,?H. H.
T. Ward.'-

Request

1945.

of
problem."

Bryce,

Egly and Francis

on

'

*

portance
the

"■Circular

*An address by Dr. Blough be¬
fore the Buffalo Chamber of Com¬

im¬

.

Co.; Henry C. Brunie, of

Aetna Standard

we were

!

commensurate

M.

elle,: E. Fleetwood
-

public mat¬
ters ought al¬

v /
Richards, of Estahas been nominated
for Secretary, and Paul F. Hay, of
W. C. Langley & Co. has been

Read &
ca¬

im

tv.0^d^reSs

in

Limbert, who
for the past

*

170

be.

Vice-Presi¬

that 60 million jobs must be nominated for Treasurer.
provided in the United States and
f Nominations for members of the
that this
of
payroll would translate, Board
Governors,, to - serve
wto an annual national income of three
to

i t

,

.■

'Archie

•

,

140

*

The
has

says

Irom

s o

brook & Co.,

stated.

Secretary

•

year.

under¬

e

Coggeshall,; Jr.,?of
Boston
Corporation,

dent to succeed Mr.

this

nieeting

long ago,

fronted with- another and less in¬

June 22, at the Banker's Club.

been

task must not
■ r

of

Riter, 3rd, of

James

First

men

immen¬

of

Club

for

Riter & Co.- The election will be

women.

The

sity

the >'Bond

held at the clpb's annual

former

-

service

of

nominated

succeed? Henry G.

providing
•w a r

been

New York for the coming year to

more

even

Limbert, of Blyth & Co.,

has

President

is

/A

so

viting tax problem—the expansion
of the tax system to meet the vast
needs of war.
Some people for¬
get at times that our present tax
system is a far cry from the one
in effect before the war.
The gi-

greatly
intensified,

., •

Coggeshall, Jr. for V.-P.

Lee M.

to meet peace¬

Thos. E. Lyons

.

with(Lee Limber! lamed for

justing their
giant indus-

m

t

responsi¬

bility of read¬

i

.—'

m

Not

is

should

Mr.

a

Planning

Public interest

*

.

Wartime Taxes and Post-War

est in taxation

and

Department of Commerce.

-

^Foundation Co.

cas-

grum¬

bling. But to-

Executive Secretary, Foreign Trade Zones Board

Holds That

1-

Teletype ny 1-1203

magnitude.

day the inter¬

Vital in War and Peace

Passed in 1934.

custom of

"

Bendix Home

'

.

Broadway

New York 6, N. Y.

Taxation, like the weather,

ition

excuse

for' the

must be made in New York funds.

■

Members New York Security Dealers Assn.

deny that the adjustment of the
wartime tax system to the trans¬

conven-

a

e n

••

pleasure to be here in Buffalo today to speak

problems of post-war taxation.

perennial
interest if only

i

QUOTED

-

'

L J. GOLDWflTER & CO

High Tax Levels With Changes to Ensure Equity and
Well as Simplification Measures to Ease Administration.

as

SOLD

-

.v.'

Predicts Continued

foreign subscriptions and advertisements

1-2033

BOUGHT

lems of Tax Revision and Reduction Still

Bank and Quotation

Newburger, Loeb & Co.

Asserting That Wartime Tax System Will Not Serve as Post-War System,
Treasury Tax Expert Points Out That Immediate Program Is Designed io

and

Subscriptions in United States and
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.

CERTIFICATES

us

as

William

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

V

-

by

■

ruary. 25,

TITLE COMPANY

Call

1915

'

:

...

CERTIFICATES

Assistant to the Secretary of Treasury

.

St.,

Chicago 3, 111. (Telephone: State 0613);,
1 Drapers' Gardens,
London, E. C., Eng¬

Our Real

TITLE COMPANY

By ROY BLOUGII*

Members N.
,v..

Trinity Place* New York 6, N. Y.

Telephone: BOwlina Green 9-7400 ;

>

Teletype: NY 1-375

61

Y.

Security Dealers

Co.
U**'*

Broadway, New York 6, Ni Y.

Telephone BOwlinsr Green 9-356S

Teletype NY 1-1668

\

>

THE COMMERCIAL & FINANCIAL CHRONICLE

2280

York

Since

Post-War

1902.

INDUSTRY

AUTOMOTIVE

Participation

Year-end

net

1S44

earnings

(net)

$5.06
.83
.50
8.25

—

_________

_

dividend

—

approximate

market

the

in

k

^

,

Boston
Wharf Company

INDUSTRY

BUILDING

-

working capital

1944

*1944

f.i Lukens Steel Common

Corrugating Company

Products

Metal

per

share

per share
per

One

share

Bendix Home

I

Boston

Appliances
& Maine, Pfds.

Securities

Hanover 2-7793

American Arch

Electrolux

Buy 7th

Company

Expreso Aereo*
Foundation Co.

CIRCULAR

War Loan Bonds

du

Bought—Sold—Quoted

r

General Machinery
■:

Grayson Shops!

for

•

Victory

Capitol

W. J. Banigan & Co.

Brockway Motors

Successors

CHAS.

Magnavox Corp.
50

JONES

Mallory

Maine

Central, $5 Pfd.

HAnover 2-8380

rate Relations With

in

tion

American Hardware*

J

-

such

^

t

| Lawrence Port. Cement*

Liberty Aircraft Products

Maguire Industries
Philip Carey

,

Ben.

F.

Wire

System between
Philadelphia, New York and Los Angeles

Missouri

^Central Iron & Steel

;

Public Service
*Circular Available

:

;Common

lerner & co.
POST

10

Corpo¬

*

HUB

1990

Corp.

.

,

Central & Southwest

OFFICE

SQUARE
BOSTON 9, MASS.
-

Utilities

-

pfd.

$7

Teletype BS 69

Berkshire Fine Spinning

Darlington Mfg.

American Gas & Power
Citizens Utilities

Cons. Elec. & Gas Pfd.

Southeastern Corp.*
Special Part.

Ltg., Pfd.

I*Bulletin or Circular upon request

any

particular

i

u

n

d

their exports

which

e

s,

existed, we would
example, that concern

government

activities

,

proval;

banks,

fi-

Mercier, McDowell
& Dolphyn
.

to

etc.),

one

Fractions

All

.

com.

Issues

Tele. DE 507

^

«

.

Wawaset Securities f

H. M. Byllesby & Company
PHILADELPHIA

corporation
page 2285)

on

&

Warner Co. pfd. & com.

■

GRAND RAPID'S

large

(Continued

Lots

Pittsburgh Railways Co.

or

gain their ^good favor and ap¬
that a recent situation,

wherein

^

Cadillac 5752

iy

Odd

Empire Steel Corp.

^

Buhl BIdg., Detroit 26

Invited

Botany Worsted Mills pfd. & A

Members Detroit Stock Exchange

consideration and expense; that it
was seldom necessary to account

such

of

•

or

to stockholders in much detail

diverse

;

American Box Board Co.

request

then

for

since they are
encountered in

Simplex Paper Corp. Com.

OFFICE

Stock Exchange Bldg. Phila.
Phone Rittenhouse 3717

2

Teletype PH 73

*.

Upon

West

Request

tion

of

war

the

analysis

120,BROADWAY, NEW YORK 5
NY
11 1

1-1288

Chicago and Phils

ENTERPRISE 'PHONES
Buff. 6024

1938

rise

importance of the
be obtained from

may

of

exports

States.
was

to

of

increase

in

$548,000,000

in

$1,373,000,000
150%.

In

in

terms

stant (1940) unit values,
the increase

was

from the

republics to the
The

from




or

"The

1943,
of

a

con¬

Stix & Co.

indications

in

1944

rose

$1,900,000,000,
1938.
the

ever,

been

If

rise

that

are

to

only one-half

value of

Phone 94336
Detroit

a

is

LOS ANCELES

import

prices,

street

Members St.

Louis

Stock

SALT LAKE CITY

American Investors
Common

for

WE

Utah Power &

substantial decrease in the

America's

total

from the United States

IN

SPECIALIZE

how¬

physical volume of imports during
the war period. - )
I / :
"Latin

Exchange

in:

it is evident that there has
a

olive:

Pacific

over

made

509

184

Office, Buhl BIdg.

Trading Market

imports

gain of 28%

Tele. GR

SECURITIES

St.LouisI.Mo,

approximately

allowance
in

INVESTMENT

Preferreds

~

Members of Los Angeles Stock
Exchange

from

-

639

SOUTH

LOS

$498,000,000 in 1938 to $830,000,000
in 1943, an increase of 67%.

'■

Light

Incorporated

imports

rose

\V

;

BELL

The

SPRING STREET

ANGELES

14,

TELETYPE

CALIF.
LA

Edward l. burton
& Company

382

ESTABLISHED 1899

however,

increase in the physical volume of

as

75% *

dollar

Michigan Steel

GRAND RAPIDS 2, MICH.

—
$1,500,000,000
through 1943. Prelimin¬

Bos. 210p

great,

ST. LOUIS

Members Detroit Stock
Exchange

$1,400,000,000

ary

commodity prices
period. An indica¬

American

value
Members N. 7. Security Dealers Assy.

at

"These increases are, to a con¬
siderable extent, a reflection of

during the

1962

Superior Tool & Die

ports into the Latin American re¬
publics remained relatively steady
from 1938

Trade With United States

United

REctor 2-8700

in 1944 at approxi-

the advance in

of

Central Steel & Wire

white, noble & co.

further rise of 23%.

Latin

HartTd 6111

i

r

on

.

The International Trade Unit of the U. S.
Bureau of Foreign and
Commerce has just published in the Journal of
International Economy an
analysis of the wartime foreign trade of the
Latin American Republics.
According to the publication "the total
exports of the Latin American republics, measured in
dollars, rose
from $1,720,000,000 in 1938 to
$2,575,000,000 in 1943, a gain of almost
50%. Preliminary estimates placed
■

an

to

st

Reports furnished

:

price factor

Wires

conditions

3s-5s

a

Queens Boro Gas & Elec. Pfd.

,

are

N. Y. C.

Dealer Inquiries

7"

to look

were

we

notethe

corporate
limited to

to

PH 30

-

-

Phone

COrtlandt 7-1202

Wartime Trade ol Latin America

Mass. Pr. & Lt. $2 Pfd*

*

and

of

mately $3,000,000,000, representing

Interstate Powery-Pfd.*

Iowa Southern Util.

Direct

back

regulation or taxes was of a rela¬
tively minor nature; that em¬
ployee.; gelations presented fewer
problems and involved much less

not

Private

Domestic

Pr. Com.

"tProspectus

Twenties, and'if

about

relations

St., Philadelphia 3

Pennypacker 8200

tions have expanded tremendously
in scope and importance since the

problems

Feldman

Noted

Central EL & Gas Com.

Nassau Suffolk

rs,

pub¬

manufacturing industry, trade and
distribution, transportation, and
public utilities, etc.; " '
The problems of corporate rela¬

Large Increase in Exports, Particularly to the United
States, Reported. Imports From the United States Also
Enlarged and Great Intra-Latin-American Shipments

Jersey Worsted

|; Conn. Lt. &

boenning & co.
1606 Walnut

International Rys. of Buffalo

Consolidated Textile
New

DETROIT

large business organiza¬

a

gov ernment.

(commercial

nance

Aspinook Corp.

{

Hagerstown, Md.

Telephone—WHitehall 3-7253

Private

*Kingan & Co.

.

on

2

Los Angeles

Pittsburgh, Pa.
Y.

and

Philadelphia

^Riverside Cement

The

fields

I

■

:

find,

Wickwire-Spencer

|

/

N.

Tel.

lic, other busi¬
ness organizations,
and

I -Taca Airways*

|

o m e

general

Landers Frary & Clark

Alabama Mills*

impor¬

employ ees,
stockholders,

«

I

with

tant groups as

c u s

|

;>

^

Comments

Philadelphia

Stock Exchanges

Walnut Street,

New York
MARKETS\

Tele. NY 1-1790

its'*>

dealings

*

*1

-

Bird & Son

I

Request

on

BUCKLEY BROTHERS

BS 424

1

Great Amer. Industries
Michigan Chemical

.

Tel. Digby 4-7900

policies maintained by the management of

Aetna Standard Eng.

J

j

Corporation

Memo

*"

Corporate Relations broadly construed refer to the relations and

Buda Co.*

[

Building
MASS.

Teletype

TRADING

York 5, N. Y.

Important Gronps.

—

i

.

Street, New

Overall Economic Needs and Welfare of Nation.

| Am. Window Glass, Com. & Pfd

|

Eastern
f-'-v■

Los Angeles

Noting That Corporate Relations Have Expanded Tremendously in Scope
and Importance, Author Suggests That From the Standpoint of Strength¬
ening the Position of Private Enterprise, It Would Be Advisable for Pro¬
grams of Corporate Relations to Consider Practical Contributions to the

Corp.
Stromberg Carlson
Torrington Co.
Triumph Explosives
United Piece Dye Works

•

Pine

30

By BENJAMIN F. FELDMAN, Economist

Mfg.
Porter, Com.

r

.

Lukens Steel

1529

Corporate Relations

Sheraton

j

Metal & Thermit

Members New York Security Dealers Assn.

1904

Broadway

PHILADELPHIA

BERWALD & CO.

CO.

&

4330

Security Dealers Assn.

System Teletype N. Y.
1-714

REQUEST

9,

Y.

2-4500—120

share

Giant Portland Cement

P. R.

Metal & Thermit

I

Bell

Members New York,

to

Broadway, N. Y. 4

Mohawk Rubber*

-

H.

Established

Majestic Radio & Tel.*

"

Established 1908

Members N.

invited

Bank

BOSTON

request

'

Pont, Homsey Co.
Shawmut

Hytron Radio*

.

ON

Inquiries

Company
on

J.K.Rice,Jr.&C<h

year

Priced about $40.00 per

Ekco Products!

|

*Prospectus

■; '
Currently on
$2.00 dividend basis

Du Mont Lab. "A"

I

Foundation

companies

unbroken dividend record

Douglas Shoe, Com. & Pfd.

H. K.

•

,

REctor

Sixty

Detroit Harvester*

Pollak

estate

Finishing 7% Pfd.

largest

Teletype NY 1-2425

Bowser, Inc.*

I

real

U. S.

*Ekco Products
Common

60,000 shares capital stock
($100 par value)

New York 5

70 Pine Street

New England's

f

Capitalization
$450,000 mortgage note

FIRST COLONY CORPORATION
Underwriters and Distributors of Investment

of

industrial

(*) ZOc paid Dec. 1944—Next semi-annual payment due June 1945
Statistical Report—Stock for Retail—Inquiries Invited

Bell & Howell*

1836

ORGANIZED

per share

k

——

Thursday, May 24,
1945

*The calculation is based

total

im¬

relative

unit

values

of

on

the

imports

-

into the United States from
Latin
Ainerican countries as recorded in
United States statistics.
♦

-

(Continued

on

page 2286)

/

1 60 S. MAIN STREET

Salt
BELL

Lake

SYSTEM

City

1,

TELETYPE

Utah
SU

Oldest Investment House in

464

Utah

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4388

161

Volume

2281

AMERICAN BANTAM CAR
!

PLANNING FOR THE FUTURE

6% CUMULATIVE CONV. PREFERRED
♦

v

v.

r

.^

■

(Arrears $3.75)

(callable at 14 plus arrears)

$10 par

Current Economic Problems
Andean National

Selling Price—14

.

Circular

Finance

and

the Stock

Exchange

Request

on

Brown Company,

I

HoiiRqse SDrqster
74

'

f

.

of

-

Established 1914

.

.

.

'

Canadian Industries

Bendix, Luitweiler & Co.

Members New

York Stock Exchange

j

:

Canadian Marconi

v,

v

Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

Com. & Pfd.

Bulolo Gold Dredging I

.;,. ,< By LUDWIG BENDIX

v.

Corp.

Atlas Steels

Canadian Pacific Rwy.

Teletype: NY 1-375

Electrolux Corp.
Nickel

'Important Study for all investors

International

Mining Corporation
Minnesota & Ontario

American M aize Products Co.

The International Press
121

Bought—Sold—Quoted

Varick
;

Descriptive Circular

Utilities

International

Price $1.00

Paper Co.

Noranda Mines
Pato Consolidated Gold Dredging

Street, New York
-

.

Sun Life Assurance I

"4n

>

Request

on

HART SMITH & CO
Established

>4

Members

York

New

Bell

Security Dealers, Association

ANNOUNCING

Broadway, New York 6

115

Bell

FORMATION

OF

1-1493

■

THORNTON & CO.
Pacific Coast Stock

Curb and Unlisted

TO

CONDUCT

New York

wires

Direct

HANOVER

DejSN Witter

Joseph McManus & Co.
York Curb Exchange

Members

York

New

other security and

BUSINESS

Los

5, N. Y.

Frederic H. Hatch & Co.

2-9340

Co.

a

Members

Exchange

Wall

63

Patricia Thornton

Charles J. Thornton

Exchange

Honolulu

>

Analysis

upon

52

.3.7.,

INC.

;

Established

William

F. BLEIBTREU & Co.,

^

79 Wall St., New

St., New York 5, N. Y.

WHitehall 4-3990

Inc.

Given to Marketing Securities

York 5, N. Y.

Favors Taxation

Telephone HAnover 2-8681

The

Anglo-French
Financial Agreement

Document, Dated March 27, 1945, Provides for Currency and Commer¬
cial Settlements Between the "Sterling" and the "Franc" Areas, Ex¬

Mutual Credits Established and Provision
Withdrawal of French Cash Balances in London.
Official Ex¬

Made for

Year.

most

that

confront

us:

today.
I

When

invited

have

franc area, was published recently
in a White Paper (France No. I,

1945)

by

the

State

of

Secretary

for

Foreign Affairs of the British
Government. It abrogates similar
previous agreements between the
two

Governments

and-sets

a

up

mechanism for claims, settlements
and

currency
transfers between
the two so-called "areas."
v

French

the

Government)
United

and the Government of the

Great Britain and
(hereafter called
Government of the United
of

Kingdom

Northern Ireland
the

commercial

maximum

franc

the

between

developing to the
exchanges

of

Desirous

;;

and the

area

and of facilitating
especially
payments,
between
the two areas: and, further,
Desirous of reaching a final set¬

sterling

area,

settlements,

current

commercial

I

which

The full text of the Agreement

follows:

:

;

various financial
claims which have arisen between

Financial Agreement Between the
of

the

United

Government

of

The Provisional Government of

French

Republic

;

and

at

Vy

(hereafter

the

and
you
have,
through your field
hearings, made it convenient for
and painstakingly,

persons

or

groups

to

present their views.
of opinion have been

All shades
expressed,

doubt

that, with

I

have

the material

no

Article I.

•

i.—(a) The Government of the
United Kingdom shall make avail¬
able to the French Government

before you, you will

(Continued on page 2304)-

r*Statement by Mr.

fore" the

Select

Small Business

Frederic H. Hatch & Co.

questions that

Incorporated
Members

are

h.




't .1.1

i

Security Dealers Ass'n

Y,

New York 5, N. Y.

1-897

Bell Teletype NY

taxes,

and

it affects smaller

as

I also note that

Schram be¬

Committee

of the House

Representatives, May 22, 1945.

on

of

time

of

and

Punta

great

attention

have

Sugar Corp.

been given to

the fact that smaller
business is severely handicapped
in

its

of

access

to

in

course,

'•

capital, more so,
to equity

respect

before
about

sented

commerce
was

the

war

of

Members

third of

our

ter

be

for

about

York

New

Stock

our

120 WALL

ST., NEW YORK

TEL. HANOVER 2-9612

a

corrected

employment, the mat¬

sound

ir^s true
sigrSfcance.

situation which musV-tee
if

we

post-war

are

to

have

economy.

F

one-

appreciated

light and in its full
This is

'»

Exchange

n: 'V
gratifying that Congress is seek¬
.

,

can

f

•

Exchange

New York Coffee & Sugar

and industry, and thus

responsible

CO.

&

FARK

repre¬

one-third

|
r-.t;

v

:■

Quotations Upon Request

capital, than in the form of loans.
When you consider that small
business

Alegre

manu¬
a

It

a

ing to find solutions through con¬
sultation

business,

with

and labor.

is

'

'Continued

industry

^

"
on page

*.

.

•

t

4

.

•-*

r

.

'

i

<

>

j

2291) j

-

j

■"

5

1

■

--■■A

N.

63 Wall Street

length the problem of renego¬

deal

large
Emil Schram

and

/'.

cannot

here.

facturers.

body of infor¬
mation;
you
'
:
have examined the problems, ob¬

interested

I

ready-made

discriminatory

tiation

You have col¬

jectively

in¬

have

peared before you have discussed

has
very

a

the

that several of those who have ap¬

covered.

lected

very

testimony with reference to high

the

been

have

.1 note that you have had ample

find

ground

to

Sugar

Ohio Match Co.
is

already

any

to the

involved

SECTION I. ;

.,

Paris, 27th March, 1945
the

since

beginning of the war,
XHave agreed as follows:—

the

French Republic.

Governments

two

Kingdom of Great Britain and
Northern Ireland and the Pro¬
visional

the

,

the

Government

of

tlement

Eastern

Associates, Common

,

there

Certainly

you

answers

of

.

.

Products Co.

many

you
<

,

add

can

you

assembled.

you

that

I

that

offer

t

,

whether

doubt

formation

taken
I

and

problems which

studying.

much

to ap-

testimony

well

"vl;':;v

Kingdom):

been

was

some

French Republic providing for. the *>
called
settlement of financial balances

facilitating of current,
especially commercial payments
between the sterling area and the

American Maize

with solutions to

up

the

of

before;
Commit¬
I
went

the

the

come

pear
your

5, N. Y.

of Guarantees of Loans to Small

impor¬

agreement made in Paris on March 27, 1945, between the
Government of Great Britain and the Provisional Government of the

and

Form

problems

tant

over

The

in

all, that the financial problems of small busi¬
to which this Committee is^addressing itself, are among the

ness,

Exchange

Teletype NIU-955

Digby 4-7060

May I say, first of

tee,

change Rate of Frs. 200 to £ Retained.

Locally by Having More Security Dealers.

by the Reconstruction Finance Corporation.

Business

a

Members New York Stock

1 Wall St., New York

Relief, Local Lending Corporations, and Supplemental

Assistance

Government

Teletype NY 1-2419

tending for About

GUDE, WlNMILL & CO.

for Local Securities and That Advice and

'/■<

1924

LOAN
BONDS

Advocates That

the New York Stock Exchange.

Exchanges Should Be "Opened Wider" to Provide Markets
Encouragement Should Be

Regional

-1'

7

Enterprises, Mr. Schram Recommends Listing on Regional Exchanges
Prior to Listing on

JOB

WAR

th

Stock Exchange

Urging That Measures Be Taken to Encourage Risk Capital in Smaller

request

FINISH THE

LET'S

By EMIL SCHRAM*

President, New York

Consolidated Mining

George R. Cooley & Co.

NY 1-897

Teletype

Francisco

San

Angeles

7th WAR LOAN

New York s, N. y.

Street

Bell

Benguet
i

Incorporated
Y. Security Dealers Ass'n

N.

BArclay 7-4300

York

New

BUY BONDS

^

job

BUY 7th

Credit Problems of Small Business

,

r.

.

let's finish the

commodity exchanges

14 WALL STREET

New York 6
Teletype NY 1-1610

Stock

Stock

Francisco

San

and

Stock Exchange

of the

■

WAR LOAN BONDS:

securities,

KANE, Asst. Mgr.

Digby 4-3122

...

.

STREET

WALL

60

including those
which also have eastern markets.

MICHAEL HEANEY, Mgr.

39 Broadway

•"«.

A

SECURITIES

GENERAL

Coast

Chicago

v.;

Two Down & One to Go

Open to 5:30 P. M. (e.w.t.)
Quotations and executions for brokers,
dealers and institutions on Pacific

Members New

'

Exchanges

Securities

WALTER

i.

Toronto

Montreal

Tel. BArclay 7-0700

Teletype NY

System

THE

1-305

NY

Teletype

New York

1920

HAnover 2-0980

WILLIAM St., N. Y. 5

52

Bristol & Willett

- .|

I'**'

,

THE COMMERCIAL & FINANCIAL CHRONICLE

2282

Thursday, May

24, 1945

V. S. Part in Soviet Reconstruction
By E. C. ROPES*

/:.

Buy More Bonds in the

■

•

,

Pacific Coast

.

Chief, the Russian Unit of the U. S. Department of Commerce

Russian

7th War Loan Drive

Expert Traces Construction Developments in the Soviet Union,

High Speed Construction Activities Prior
Says New Soviet Recpnstruction Plans Have Been Developed
and Rebuilding Will Again Make the Soviet Cities the Centers of Industry
and Culture.
Describes U. S.-Soviet Trade Mechanism and Predicts an
War.

to

Immense

Paine, Webber, Jackson
ESTABLISHED

Curtis

&

Increase

1879

It is

Trade

in

Architects, Builders

Between

Utility Securities

Trends in the Electric Power and

for

yea r

Light Industry

follows:
In

?

'

compared with

/in the

;

.

the

1944

$512,000,000

pre-war

earned

-amount
same
1

,

interim

(f has

although gross

since

that year by
75%. While the utilities generated
increased

nearly two and one-half times as
much electricity last year as in
I 1928, they were not able to make
,

much for stockholders

as

;

This

as

despite

years

due

in

and

of

revenues

1941-43

years

17 actually

principally

to
took 23.80

taxes, which last year

/

increase in KWH output of 157%,

although
26%

net

plant

The

is

account

considered

But in the second Five-Year Plan,

forward

new

dollar, com¬
pared with 9.90 in 1928. Another
s

reason

[ profit
to

the

was

,

margin

,910

electricity sold
plants;
industrial

1.400

to

KWH.,

in

1928.

average

compared

in

and

to

has

direct

a

1.650, compared to

2.660.
of

is the increased

reason

fuel.

Complete data for
the entire period is not
available,
but in 1943 utilities paid out $363,€00,000 (about 130 out of eacn

dollar), compared
-$97,000,000, or 60 out of the
revenue

with
reve¬

dollar in 1933.

had

to

increase

depreciation
this took

the

amount

1923.

Last year
100 of the revenue
8 Vg0

some

Maintenance

,

of

charges.

over

dollar, compared with
in

also

has

apparently been stepped up in
lation to

the

worse

been

made

wonderful

on

been

been

two

and interest.

able

to

econo¬

items—labor

costs

Total fixed charges

(including

amortization)
were
only slightly larger in 1944 than
in 1928, due to
declining interest
rates and the fact that added
plant

•apaeity has been financed prin¬
cipally out of earnings.
f

possible

"grid"
a n

d

system

to

to

in¬

130

out

and
of

salaries

the

took

only

dollar in

revenue

1943, compared with 190 in 1933.
The utilities have instituted
many
economies during the war

period,

and

are

with

a

doing

a

bigger business

smaller personnel.

mm

f

this

have

led

to

of

companies into small
systems,
limited
in
geographic
area.
It is hoped that this will

pro/

diminish

the

resources.

"pooling"

help in

producing huge blocks of central¬
for

in

use

reducing

and

magnesium and
chemical: industries.

Last year Government
power dis¬
tricts produced
31,450,000,000 KWH
compared with 27,640,000,000
the previous
year and

decade ago.

only 1,287,What will

happen to this huge output
Government power after the
when

in

of

war,

the

demand

for

aluminum

and magesium
wilLbe reduced to
small proportion of
war-time

needs?

There

indications

that

have
the

been

some

Government

Po^pLEY
NEJ^ORK
to

Chicago

& Co.

6, N. Y.

t

J

im-

an

h

a s

been

applied
to secure the
opposite
re¬

of

sponsored by the Federal Govern¬
ment have been of
great

m oun

wordage

-

/ During the war the huge hydro¬
electric developments financed or

hand¬

ressive

p

sult.;, Much of
the

seeming
controversy
has
existed

Herbert M. Bratter
v-

/

primarily

in

mentators

the minds

and

conceiving
defenders

the

as

who,
chosen

of ' the

peace

seek new outlets, such as use
electricity for house-heating,,
air-conditioning, etc. But the Fed¬
eral
hydro projects* have
of

/only

wholesale

distributing

v

facilities,

except where (as with TVA) they
have bought up retail "distribut¬
ing systems.
Hence cooperation
with

the

seem

essential

outlets

private

are

to

if
be

utilities
new

would

residential

developed. ///']:*

Government

the

in

is

this

viewed

with

equanimity

such

country,

controvesy

there has been, has centered on

as

.':.///,/•■;/•

past

it looks

other
didn't

is

Fund from the start,
but, to keep
[the issue out of the entanglements
of party politics, did not
express

the

themselves
the

publicly

election.

until

These

after

.

bankers

wanted the Fund rejected and its
stabilization functions turned over
to the Bank.

But that view is not

prevailing

in/ Congress
or
the
for the Administration

country,
has made

this

on

issue

fight

as

hard

possibly be made,
taking advantage of the great and
numerous
advantages which lies
in Government

access

to

channels of. considerable
and other devices too
to

,

mention

here.

preted
too

ket

"international cooperation"
and "post-war
jobs."
^
';/■'
/

// The jockeying/which has

been
going on the past week behind the
House committee's

three to four weeks to be
celled

by

action.

*

one

for the campaign to revise
rates
in
favor
of
the
.

"neglected" southern
now

areas,

the

supported with

revision of the
ture.

and western

which

Our

a

ICC

broad

freight rate struc¬

national

industrial

be radically changed,
period of years, by the de¬

may
a

velopment
neglected

of
areas,

cheap

power

where

this

in
can

the

ABA

suggested, or
changing in any respect

even over

it

concerns

relatively
the
enabling

minor

changes in
bill, HR 2211, and whether
to

include

the

authorize
more

not

or

these changes
way of American

among

something by
Government interpretation
what

Bank
the

as

agreement

Bank

to

to

will

do

and,

controversial, what the Fund

agreement will authorize the Fund
*'
'
•

to do.

.

be combined with lower rail rates
and

a

good labor supply

thoroughly unionized).

(not too

Interpreting the Agreements
It is generally
expected that the

(Continued

on

page

*

*

2308)

,//:■

spoke of some¬
thing called divergence and
said that the column had no

its

I merely

presence

and

let it go at

that. With the cur¬
rent/recovery in prices, .!
think

it

might be timely to
something about this
thing called divergence; how
tell you

it works and what it means, /

experience

According ,to

formed

perhaps

abandoning the Fund

can¬

few day's better
/:/;///
a

Last week I

doors, there¬
the question of

over

things in the mar¬
picture formed in the past

to

labels

or

There are

bullish.

as

many

discuss it.

"sold" to the Nation, to
Secretary Morgenthau's ex¬
pression, • primarily
under
the

to both

by any stretch of
imagination be inter¬

referred

is being

to

up

versal can't

numerous

Woods

go

But the re¬

space to

use.

fore,/is not,

answer

yes.

publicity
diversity,

Bretton

it

a

could

as

obviously

refuse

didn't

instead? The

Rather,

is

market

the proposed International Mone¬

Leaders of organized
banking have been critical of the

just an¬
things. For

was

of those

And

changes.

This

also

reason

has

rails

glance of the
days' performance

the

break?

the language of the
Bretton Woods
Fund
and
Bank
agreements.

industrial

,

if the alarm raised

as

one

abundant.
rail

the

*

here last week

keeping
plan, as

may

*

seven'

try
to draw big industrial
.plants into
the areas where
hydro power is
'

period

tary Fund.

com¬

columnists

themselves
of

of

may

over




the

while

up

setup

Wire

insure

gram as

the

breaking

United Cities Utilities 4s 1964 &
5s 1969
Associated Electric 5s 1961

Direct

o r

the

a

of¬

to

companies,

000,000

world, look to Washington
ficialdom for their, cues.

launching

Building Corp. 5V2s 1963 & com.
Poli-New England Theatres 5s
1983

BROADWAY,

vast- ag¬

out

Lincoln

29

and

gregations /of
publicity, / ef-

the

of

/

From cursory

trans¬

network

same

56.

controversy^

The

Gilbert J.

country, since last year's international monetary confer¬
Woods has been' synonymous with

from

up

the

in New Hampshire, Bretton

serve

a

The composite balance sheet of
the electric utility companies has

In this
ence

;

present program for
the holding

the

Separate Bill for

a

moved up from about 54 to

largely

building

setback..

Since the previous column
was
written the market has

Purpose.

The holding
were

pointing

to

2297)

use

,

Wages

Senate Finance Committee Has Under Consideration

ing

aluminum

4,

:
on page

it

just postpones it.
Technical
formations continue

By HERBERT M. BRATTER
V
moved up about four
points.
Despite the Controversies Regarding the Bretton Woods Agreements, It Last week the Dow averages
Is Generally Expected That the House Banking and Currency Committee were
hugging the 162 levels.
Will Report the Bill Out Without Any Crippling Amendments. Although At this
writing they are back
the House Bill Contains Provisions for Repeal of the Johnson Act, the to
approximately 166. During

ed down from

aiding

.G.y-

/

Bilt-

Stains of Bretton Woods Bill

financial abuses of the
1920s, be¬
ing largely centered in the hold¬

power

v

May

Little or no credit
them, however—the

intercorporate

ized

Hotel

City,

can¬

indications;

Building

ment

mission lines.

not

York

Four point
rally doesn't
cel
reaction

at

Since almost without exception
proposed International Bank
for Reconstruction and Develop¬

instrumental in

to

Ropes

t/h av e
been/ poured

systems

given

Mr.

by

(Continued

Rus- //"•'

to

V.';'

By WALTER WHYTE

our

of

power

another

;

Dinner,

New

more,

1-945.

interconnection,

varying peak loads.
company

by

system

permitting the flow of
one

power

have

off, however; had not

utilities

mize

re¬

revenues.

Stockholders would
even

has

Ropes

kind of cooperation between

This

The great increase in plant

is

Due to pressure from regula¬
tory authorities, utilities have also

intensively

more

in recent years.

tegration

Another

nue

used

address

Conference
E. C.

re¬

the

of

scheduled

was
'•

Sacramento

Fresno

Walter Whyte §

important.1

the v. American-Soviet

improvement,'

(1)

and amortization rates
and,
(3) the fact that the utility plant

been

An

this !

of

certain

by
Federal
(2) rapid in¬
crease
in
depreciation reserves
resulting from higher deprecia¬

con¬

The average rate for all ultimate

cost

ordered

for

building
vr...

accelera¬

tion

of

regulatory agencies,

decline of 47%.

a

consumers was

companies

tion

Residential

1928,

write-offs

only
with

paid 3.510, compared with

sumers

€.630

sold

was

per

low

on

munitions

power

extremely

substantial

a

continuation

—

—

Tomorrow's Markets

" materials

new

1-92*3

NY

Principal Offices

Santa Barbara
Oakland —

-

reve¬

growth
due

ideas,

Teletype

Wire* to

Monterey
.

new

werernot

New York
5, N. Y

.

gen¬

and

slow

and

»

San-Francisco

was

and / new

to

/Private

decidedly secondary:
methods were good enough,

Old

;

keynote,

the

was

building

in

sult

account

ing

the

this field, that
I am looking

*

out of every revenue

of

and

improvements

as

In the

plant

declined
increased

14%.

nues

80%.

net

^

was

field

watched

relatively little change in

eration

years ago.

$509,000,000
$539,000,000

and

year

the huge
growth in kilowatt sales.
During
the period 1927-1943 net utility
plant increased from $9,900,000,000 to
$12,200,000,000, a gain of
only 23% as contrasted with the

increased

the

14 Wall Street

was

-

'

Curb Exchange
(Associate)
Chicago Board of Trade

COrtlandfc 7^4150

taking/on in the eyes of Soviet
planners." In 1938, when I last
."visited the Soviet Union, rebuild¬

USSR "in *

introduced
shown
recent

revenues

gross

of

construction

'which

tance

Exchange

York

this

familiar with the impor¬

became

velopments in.
the

which

meeting represents. ■/
-It was back in 1934 that I first

1-

o

building,

income

previous

the

000 earned in 1928

■

net

s/ f

Members
New York Stock

New

*

>«'

many

lowed the de¬

The^

exactly

It is less than the $526,000,-

46%.

-

although in the

was

1937

in

as

in the

1939.

year

'

:

*

-

utilities earned

electric

I have.

so

"

■

Americans

and

sians

/

on

Exchanges

Schwabacher & Co

problems of post-war construction and
*

Executed

American

in Reconstruction.

<♦>-——

Soviet

Union.

The annual statistical bulletin on the electric light and
power
industry recently issued by the Edison Electric Institute, contains a
mass of statistical data, from which we summarize the
highlights as
;

the

Orders

Pacific Coast

particular pleasure to participate in this meeting, which

a

reconstruction
in

With

Countries

the

and/Manufacturers Assisting

itself with the many

concerns

Public

rities

and Points Out Trend Toward

markets

have

which

established

trend

a

pattern.... with

months

but

finally

follow a

minor

Certain levels

are

days, weeks and
pass.
In all cases

as

both

averages, rails and in¬
dustrials, move together
though not necessarily as a
unit.

So

long

as

both aver¬

ages manage to stay within a
certain pattern, with neither

violating long term resistance
levels, the market is okay. If
is

when

one

(Continued

average
on

page

decides
2305)

/

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4388

161

[Volume

2283

Dealer-Broker Investment
SPECIALISTS

^commendations and Literature
\it

in

1

i

understood that the firms mentioned will be pleased to send

is

Real Estate Securities

the following literature

interested parties

•

Since

Effects
Railroad

of the Unification of
"Class" Rates —Memo-

Sum-11- Hentz & Co., 60 Beae" Street, New York City.
available are leaflets of re¬

Also

Railroad—Complete ar¬
proposition—Sutro Bros..

bitrage
&

Seligman, Lubetkin & Co.

5, N. Y.

comment on Low Priced
Speculations, etc., and a study of

Chicago

Traction

System

41

Nasi—Discussion

of

Broadway, New

York 6, N. Y.

Late

bulletin

120 Broadway, New

"his

an

Records—Tabulated list—Herbert
E. Stern & Co., 30 Pine Street,
New York 5, N. Y.
,
Preferred Stock Guide —Com¬
parative data on public utility
preferred and common stocks—
G. A. Saxton & Co., Inc., 70 Pine
Street, New York 5, N. Y. Also
contains discussion of Post-War

reasons

for considering

Roller

H.

Ill Broadway,

&

Co.,

London Terrace, Inc.

ment

operation.

Liquidometer

Corp.,

Inc.,

York

Majestic

Great

American Industries, Ilartman To¬

ber

1, 1944 payment.

June 1, 1945

New

Exchange Place,
5, N.Y.
;
,

Serfdom—Reprints of
Digest condensation
of the book by Friedrich A. Hayek
to

Wall Street, New

5, N. Y. V

&

99

Co.,

York 5, N. Y.

each $1,000 bond, $600
Second Mortgage

holders

New York 6, N. Y.

<

available

is

a new

on

lar

Rose

situation—Hoit,

this

on

Troster, 74 Trinity Place, New

&

y.'

York 6, n.

'

-

v;

,

Company —An

Foundation

—

Il¬

Co.,

&

Inc.,

41

American

Glass Co.
Terminal, Inc.
circulars
available—•

Dealer

of Trade

Kneeland & Co.," Board

7;':

Building, Chicago 4, 111.

—

Analysis

Co., Inc., 79
York 5, N. Y.

F.
Wall
—

1947—

Analytical report describing reor¬
ganization
status
and
proposed
plan—Greene
&
Co.,
37 .Wall
Street, New York 5, N. Y.
Boston

Co., 231 South La Salle Street,

Chicago 4, 111.

Co.—

Railway

Elevated

Analytical study—Maxwell, Mar¬
shall
&
Co., 647
South SpringStreet, Los Angeles 14, Calif.

Corporation—Brochure

and statistical information,

Co.—Descriptive

Wharf

circular—du

Shawmut
9, Mass.

&

Co., 208 South La Salle Street,

the common

v

Co.,

Ilomsey

Pont,

General Industries

Mercier,

available

on

;Lukens

Corp.

yyy7'7

";.4;

-

Eastern

Brown Rubber Co.—Analysis—

Central Iron
°n

recent

&

Steel—Bulletin

developments—Lerner

& Co., 10 Post Office
Square, Bos¬
ton 9, Mass.

Also available

Kingan
Cement.

&

Co.

are

circulars

—Adams

Salle Street,

'

•




•

Louis

available

entitled

"An

Company—Brochure

are

reprints of
White

Continent

Airlines,

Inc.,

dealers—Fred W. Fairman

South La Salle Street, Chicago 3,

Salle Street,

Co., 208 South La

111.

&

Kingan Company— Descriptive
circular—C. E.,de Willers & *Co.;
120 Broadway, New York 5, N. Y.

I

Also available

Christy
Company —
Memorandum available — Herzog
& Co.. 170 Broadway, New York
i

Laclede

-

7, n. y.

America,

East.

Highest

Far

fprPTlPP'ik

1-517, The Commercial
Financial Chronicle, 25 Park
S

Place,

New York

Lea

Radiator

National
.

P.

discussion

Analytical

Co.,

&

Inc.—

Co.,

&

Mallory

R.

—

Steiner,

Broad

25

»

Street.

Dis¬
interesting possibilities

Continent Airlines

Mid

cussion

of

Co.—Anal¬

ysis, for dealers only—C. E. Unterberg & Co., 61 Broadway, Neu
York

6, N. Y.

:

—

Nekoosa-Edwards. Paper Co.—
New Memorandum—Loewi & Co.,

Salesman
established

Old

Counter firm

(Continued on page 2308)

Are You that Rare

i sales
•

:

and

*

over

post-war

situation

—

be

to him. Full co¬

operation given. Commission

Combination of

basis. Past record will be in¬

thoroughly.

vestigated
P

Analyst?

523, Commercial &

Box

Finan3

cial Chronicle, 25 Park Place,
New

York

8, N. Y.

personality; and are you a student of economic 3
subjects; and are you interested in

possess

assured?

„

...

..

these qualifications and would like to

securities firms in the Southeastern
'^States wholesaling a leading group of open-end invest-

;
i

^travel: among

viment

'3 letter to

BOND SALESMAN
Unusual

opportunity for

able

to follow up

man

cap¬

inquiries

1

from

'

issues on a basis involving a salary and

quantity, telephone experience

plus an incentive for results, then address a
the undersigned giving a brief business and

clientele. House accounts avail¬

company

expenses,

personal history including retail
-

ac¬

good educational background, a good

a

working hard if progress is

3

Many

Firm customers will

statistical

;^IF YOU

3

salesman.

.one

turned

YOU

in¬

stocks has opening

vestment

tive

3 HAVE

Over-the-

dealing in

'

for

Box L24

advertising.

desirable.

Because

of

Build up investment

able.

securities experience.

Commercial & Financial Chronicle

25 Park

Fabrics—Discussion of in¬

8, N. Y.

-

Place, New York 8, N. Y.

Security Adjustment Corp.
ESTABLISHED
Members New
16 Court St.,

teresting

v

■

Chicago 4, 111.

111./r,;.!';;3'77'3:?

I

connec¬

Central-South

Europe,
TP

memorandum—Kitchen & Co., 135

Excellent

travelled.
tions

Appraisal of Insur¬

Stocks."

Mid

responsibility, adapt¬
organizer,

suming

able, energetic, good

article by Mr. Julian M.

/Security Salesman

Chicago 4, 111. 3.7

on

Riverside

and

St.

.

statistical information, avail¬

able to

Motors—Circular
& .Co., 231
South La

is a memorandum
p"ce, McNeal & Co., 165 Broad- on
Macfadden
Pub.
Inc. y and
Way, New York 6, N. Y. :y"y7 7 3; Sterling Engine.
y "7 3 3373-.

EXECUTIVE
years' experience—used as¬

22

a

memoranda

Steely and

Trust Building,

Also
an

ance

Magnavox
and

Elec.

Chicago 3,
are

Company, Mississippi

&

report on Na¬
tional Stamping Co.
[ i
V
Also

j Interstate Aircraft & Engineer¬
ing Corp.—Information on possi¬
; E. G. Brooke Iron—Descriptive bilities of the firm considered at¬
Memorandum—Buckley Brothers, tractive by Bennett, .Soanier /"&
1529 Walnut Street, Philadelphia Co., 105 South La Salle /Street;
'/Also available

Street, New York

Co.—Recent

McDowell
&
Dolphyn, Buhl Building, Detroit
26, Mich. /;- 7
7737:
—

Building, Boston
7'.7.7 v
3
:777-

2, Pa.

EXPORT IMPORT

exhaust

New-York 4, N. Y.

report

RIgby 4-2870

N.Y. G

Teletype NY 1-1942

V

Box

Rouse

Bank

'

Lipe Rollway Corporation—-Cir¬
& Co.,

avail¬

Chicago 4, 111.

Howell

Boston

?7'> :7:(7./;.7( 7;77x|7

—White

1, Mo.

&

Garrett

SIEGEL & CO.
39 llroadway,

for the accumulation of a

—*

Valley

4, N.Y.

..Auto Com¬ 5, N. Y.

able to dealers—Fred W. Fairman

Boston Terminal 3JAs of

Street,

Broad

25

Co.,

&

New York

pany—Four-page illustrated bro¬
chure, for dealers only—Comstock
&

Mining
Bleibtreu &
Street, New

Drive

Consolidated

Benguet
Co.

Wheel

REAL ESTATE BONDS

.

$1,000 bond on June 1, 1945 and will ask for tenders to
of $24,355 in the purchase and retirement of bonds.

Inc., 55 Liberty
Four

PRUDENCE AND

sum

cular—Ilerrick, rWaddell

Window

and Detroit Harbor
—

Mortgages

will make an interest distribution of $24.00

Broadway Barclay
the

Broad

Street, New York 4, N. Y.

an<l

TITLE CO.

in 35 years and

will prevent the payment of dividends on
debits reduced to $14,000,000. -

lustrated circulai^-Seligman, Luhetkin

Certlflniteg

stock until the total

Dunne
I

Dlgby 4-4950

NY 1-953

and Sell:

|

Car—Circu¬

Bantam

We buy

stock allotted to debenture holders will com¬

Foundation Co.
American

Bell Teletype

$250,000 reserve for capital improvements, a $750,000 reserve for
interest and amortization on the first mortgage and for other debt

per

circular

a

Curb Exchange

PL., N.Y.

5% Cumulative Income Convertible

The restrictions *on the use of cash

purposes

Mills—Descriptive circu¬
lar—J. F. Reilly & Co., Ill Broad¬
Flour

Also

in

The new bonds will mature
will be convertible into common at $10 a share.

New York 5, N. Y.

Stock Fxcfionge

Member* New York

Bond, plus 60 shares of stock. Previously debenture
receive $500 in bonds and 50 shares of common.

prise the entire issue.

oort—Hill, Thompson & Co., Inc.,

way,

to

were

As before, the common

Empire Steel Corp.—Annual re120 Broadway,

Readers'

Lichtenstein

low-priced dividend payer—
Hughes & Treat, 40 Wall Street,
tive

Corpora¬

40

on

o£,2%% from earnings for the six months period ended
April 30, 1945. This payment might indicate that annual payments
—Study of recent developments— will be 5% or better as they have been gradually increasing, a total
Vilas <fc Hickey, 49 Wall Street,
of 3V4% paid in 1941, 3V2% in 1942, 4%% in 1943, and 4%% in 1944.
New York 5, N. Y.
.Equitable Off ice Building Corp.—Reorganization Plan Amended
—The proposed plan for the reorganization of the Equitable Office
Also available a leaflet discuss¬
ing the Completion of the St. Paul Building has been changed. The trustee has filed amendments to his
own plan to give debenture holders additional securities.
Under the
Reorganization.
amended plan there is no change in the first mortgage.
That issue
will be undisturbed.
Debenture holders, however, will receive for
■

Member* New Vorlt

.

Master Printers Building will make an interest distribution

7.'V-;:f7
.''4'vV'>
Denver & Rio Grande Western

New York

.

40 EXCHANGE

This payment is Vz % more than the Decem¬

standing Income bonds.

Provinces

alyses of six Canadian
—Dominion Securities

SHASKAN & CO.

ended

with the undistributed portion of the earn¬
ings for the previous six months period, provides on June 1, 1945
a sum sufficient to distribute as interest equal to
1% on the out¬

bacco and New Bedford Rayon.

Hotel, 4's

Beacon

March 31, 1945, together

discussing this stock as an attrac¬

Quarterly Canadian ReviewIncludes a Review of current Can¬
adian Conditions
and brief an¬

six months period

earnings for the

Electronic Co. Common—Report

Markets.

are

'

•

New

vi

memoranda

are

earnings

June 1st of the fixed 3% annual interest plus

on

earnings of approximately $60,000 will be available for sinking fund

New York 6, N. Y.

available

THAT:

sufficient to allow for the pay¬
1% cumulative
for the year and the total unpaid accumulations of 3%.
The total
interest payment will be $55.00 per 1,000 bond, and in addition, surplus

York

attractive low-priced situ¬

ation—F.

2-5's

N. Y. Athletic Club

Co. Common Stock—An¬

of

870-7th Ave. 4K>'s
(Park Central Hotel)

&

.

Cross

alysis

an

York Curb Exchange Com¬
Stocks With Long Dividend

Bisseil

HEAR

WE
,

Meeds,

Also

New

Laird,

—

5, N. Y.

[New York, N. Y..

S.

4M's

News Items Reference Various Issues

Continental Bank & Trust Co*—

Bond Sum¬
maries—May be had at a cost of
$72 each per year, or a total of
$144 a year for the complete serv¬
ice
which includes; two
cloth
bound volumes and ten
paper
bound issues—a special free trial
offer is available—National Quo¬
tation Bureau, 46 Front Street,

—B.

4's

Hotel St. George,

HAnover 2-2100

Real Estate Securities

in¬

teresting outlook—Laird & Co., 61

Monthly Stock and

Read

Security Dealers Association

165 Broadway,

Conde

I Wall St., New York 5, N. Y.

the

York

Broad Street, New York 4

Illinois.

Bank
Stock
Fvaluator—Comparative analysis
of 81 insurance companies and 38
banks—Huff, Geyer & liecnt, o t

York

New

Members

—

Memorandum—Kitchen & Co., 135
South La Salle Street, Chicago 3,

and

Insurance

tion,

Primary Markets in:

Incorporated

international Telephone and Telagraph Corporation.

;

SECURITIES

;

Co.,' 120 Broadway, New York

search

mon

REAL ESTATE

1929

Chicago, Milwaukee, St. Paul &
Pacific

1035

York Security Dealers

B'klyn 2, New York

Ass'n

TR. 5-S0S4

Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2284

V

Two Cleveland

a

Steep Rock Iron

3y4% coupon rate, an

3.256%.

Mines Ltd.

Tower

Cleveland 13, 0.
Bell Teletype
CV 496-497

.

Phone

CHERRY 0260

K

set

Sport Products

September.

Whitaker Paper

Gibson Hotel L. T. C.
Income

In

W. D. Gradison & Co.
Stock

New

Dixie

CINCINNATI 2

now

writers from

Products,

Inc.,

share.

.

Union

Members Cleveland
v-'

594

;

,

YORK 6

Opens

Cleveland
firms partici¬
in the $50,000,000 offering
of 20-year
3 V\ % debentures of
Joseph E. Seagram & Sons, Inc.,

made

OHIO

CLEVELAND, OHIO—Paul H.
Co., members of the New
York Stock Exchange and other
Exchanges, have opened a branch
in the Union Commerce Building,

Five

Davis &

pated

The

Co.,

Cleveland
up

of

Curtiss,

Hayden,

headed

Edwin

was

House

Miller

under

the

Francis,

group

&

cou¬

it

pons,

&

direction

W.

Gass

is

Dean

of

D.

the

firm.

assistant

man¬

partner

a

in

his association with the firm
was
previously reported in the
Chronicle of April 5th.
ager;

Co.,

Hawley, Shepard & Co., Merrill,

was

particularly surprising to see
these Bexleys command a similar
price.
Nevertheless it does rep¬
resent the first new issue in the
with such maturities, that

state,

has sold

quite

1% bonds.

as

indicate

demand for new
On April 25th, $278,-

strong

a

bonds

School

Township

Franklin

of

Franklin
114s at 100.31,

in

District,

sold

County,

as

through

1946

of

maturities

On April 30th, East

bids

Saturday

for

V-E Day brought up the sub¬

NSTA Notes

declined,

But

the

opening

after

week

a

V-E

a

SECURITY TRADERS ASSOCIATION OF NEW YORK
At

tion

a

of

con-

tined to date.

meeting of the Directors of The Security Traders Associa¬
York, Inc., held May 17, 1945, Stanley L. Roggenburg

DALLAS BOND

SECURITIES

Perhaps this is
time
and

^

★

director to fill

a

a

vacancy.

CLUB

scheduled.

of

*

•

BOND TRADERS' CLUB OF CHICAGO

CI 494

and golf enthusiasts will have

an opportunity to play Lincoln¬
The Club affords ample facilities
for the varied activities traders like, such as golf, tennis,
baseball,
horse-shoes, and riding horses are available for equestrians.

shire's

Harrison & Go. to Be

sporty No. 3 golf

President

Formed in Cincinnati

to make this

Paul Yarrow and his Directors

party something to remember.

Mr.

Harrison

from
Mr.
Were

ton

holding

which

Donald
Davis

he

G.
and

the

mem¬

acquire

Geddes.
Mr.

June 21,

it will afford

& Co.




1945—Dallas Bond

May 30,
June
,

15,

16,

on

'

v-

.

June 19th, or in the Twin Cities

opportunity to stop in Chicago.

point

argued

long

in

this

and Notes" of the May 3rd issue
of
the
"Chronicle."
Entirely

aside
from
the
question
of
whether final V-Day will bring

(Continued

2298)

on page

Reynoldsls Chairman
Of Cincinnati Exchange
CINCINNATI, OHIO — J. B.
Reynolds of Benj. D. Bartlett &
Co.

chairman

elected

was

Board of Trustees

of

Steffens
and*1

were

President

as

Other

Secretary.

chosen

Charles H.

retained

was

of the

the Cincin¬

nati Stock Exchange.

officers

L. J. Nussoch, W. E.

&

Fox

A. W.

and

ing Committee.

Cohle of H. B. Cohle &

; H. B,

named

was

fill the unex¬

to

the board of Ben.
absent for the last

pired term

on

nine months because of illness.

Ohio

Price Index
Date

9

__

2

__

Club Annual Spring

the

market

on

Outing,

Lakewood

County

19,

1945—Securities Traders Association of Detroit and Michigan
summer
outing at Western Golf and Country Club/

June

23,

1945— Bond Traders
County Club.

28,

29

Club.

annual

June

of

Chicago

annual

outing

at

1945-—National 5»cirJty Tr»J»r« Association,
business meeting and election of officers.
&

30.

some

names

such

noticeable

market

declines

outside Ohio, have been
in bonds of which sizable blocks

on

names

have been, or are still being liqui¬
dated by holders who are prepar¬

Seventh

there

has

has held

Inc.

annual

17, 1945

Dec.

13. 1944

Nov.

15

Oct.

18

Sep.

13

Aug.

16

July

12

June

14

May

„

.>;•

__

__

„

__

17

Jan.

__

1, 1944

1.34

1.34

1.02

1.43

1.11

.32

1.27

1.30

1.47

1.14

1.33

1.49

1.17

.32

1.34

1.51

1.18

.33

1.36

1.53

1.19

.34

1.35-

1.53

1.18

.35

1.32

1.50

1.14

.36

1.31

1.49

1.13

1.31

1.48

1.15

.33

1.31

1.46

1.16

.30

1.31

1.46

1.16

.30

1.41

1.58

1.23

.35

1.65

.36

2.13

1.70

.43

2.14

1.62

.52

Jan.

1, 1940— 2.30

2.58

2.01

.57

noticeable lack

Jan.

1, 1939— 2.78

3.33

2.24

1.09

Jan.

1, 1938— 2.98

3.42

2.55

.87

been

very

little

more

steady than

Jan.

1, 1943—

•Composite
lower

grade Jjonds.
grade and lower

between

high

grade bonds.

Foregoing data compiled by J.

Prescott Adds Herman
(Special

to

Chronicle)

The Financial

OHIO—Raymond

CLEVELAND,

market if not in

Building,

new

issues, with the result that bids
somewhat easier.

It is, per¬

not this slight easing of prices
due principally to the inac¬

tivity incident to the War Loan
Drive, or to expectation of lower
prices in anticipation of lower
tax rates and/or a greater
sup¬
ply of municipals when final
comes.

with

&

Prescott

York

members

and

associated

Guardian

Co.,

the

New

Stock

Ex¬

of

Cleveland

changes. Mr. Herman in the past
Was
with McDonald-Coolidge &
Co.

and

Soucy,

Co.-

Swartswelter &
'

•

Whitwell with Greany
(Special

to

The

Financial

CLEVELAND,

a

strong demand,

Chronicle)

OHIO—Clarence

W. Whitwell has become
ed with L. M. Greany &

indeed, for Ohio municipals, and
especially for high grade names.

A. \vnn«

& Co., Cincinnati.

A. Herman has become

bidding for

+10

bonds

20

bonds. tlO higher

grade

§Spread

for

Index

noticeable
in
bidding
for
Ohios, at least in the secondary

is still

.36

Drive.

Loan

is

There

.32

.33

1.83

Yet somewhat greater caution

is

.32

1.34

1.18

1, 1942— 1.92

for many names elsewhere.

V-Day

Lincolnshire

__

1.02

1.18

1.18

1, 1941— 1.88

liquidation of Ohio names.) With
no such pressure
tending to push
prices lower, the market for Ohio
names

14

Jan.

1.02

.32

Jan.

such liquidation of Ohio mu¬
nicipals.
(As a matter of fact,
during the past several war loan

drives

Feb.

__

5

.33%

Jan.

War
a

1.35%

2.01

ing to buy U. S. Governments in
the

__

Mar. 14

has declined up to 30 basis points
in yield.
Certainly there has been

or

annual

Club

talk

t

1.02%

t

•

16, 1945__ 1.19%

25

is

There

haps* too early to tell whether

17, 1945—Security Traders Association of Los Angeles
spring party at the North Shore Tavern, Lake Arrowhead^.

Municipal

Apr.

are

&

*

August
-

Mort Scott's entertain¬

1945—Bond Traders Association of San Francisco annual spring party at
the Orinda Country Club.

May 25,

and prior thereto with

Dominick & Dominick.

an

working overtime

Calendar of Coming Events

Dohrmann

previously with W. E. Hut-

J

.

For those who are in Detroit
on

are

good job and SOMETHING NEW HAS
.

Exchange,

will

a

BEEN ADDED.

Edmund W. Harrison, William F.
Dohrmann, and Gilbert A. Davis.
firm will be members of

course.

committee has done

ment

CINCINNATI, OHIO—Harrison
& Company, will be formed as of
May 3lst with offices in the Union
Trust Building. Partners will be

bership

appropriate

a

mu¬

of

Chicago Bond Traders will hold their annual outing on June 23 at
beautiful Lincolnshire Country Club south of Chicago.
It is ex¬
pected to be one of the best outings sponsored by the traders in many
years

Stock

definitely

column, and well mentioned in
the
regular "Municipal
News

May

weeks.

There has been

Exchange

MA 1627

York

be made with John L. Canavan and Rogers Ray
or with James Jacques of Dallas Rupe &
:/
1

Rauscher, Pierce & Co.,

Son.

Members

New

frequently

May

three

more

/•

Reservations may

W. E. FOX & CO.

market level of certain

drop in the price level
of Ohio municipals.
Some of the

The Dallas Bond Club will hold its annual outing at the Lakewood Country Club on May 30.
Golf, swimming, and other events
are

the

an

reiterate

to

nicipals in other states had defi¬

no

,,

new

municipal

price

ly.

nitely -declined within the past two
that

New

of Roggenburg & Co. was elected

CINCINNATI

The

the

Day,

noticeable

nicipals. This dullness has

or

Cincinnati

and

cau¬
mar¬

level of
Ohios cannot be isolated from
the
level of municipal prices general¬

May

Tele. CI 150

18 E. 4th St.

active

outside Ohio has

names

1

Cincinnati Stock

several

'Lowenthal,

such talk.

■s The

Union Cent. Bldg.
CINCINNATI

Inc.

and in¬

of the Seventh War Loan Drive,

Field, Richards & Co.

—

for

ket

market apparently gave no heed

decline in activity in Ohio mu¬

Tele. CV 174

opening

usually engenders
tious bidding. Moreover, the

Co.

about

*

the

Drive,

activity

ject of tax reductions, and pos¬
sibly of a greater supply of mu¬
nicipals.
However, the Ohio

certainly witnessed

Union Com. Bldg.
CLEVELAND

since

War Loan

.

to

SECURITIES

Nevertheless, business
dull

been

the

of

Co., Inc., Vice-President;
Korte, C. H. Reiter &
Co., Treasurer.
iy4s were submitted for $75,000
Members of the Trading ComGeauga County bonds due 1946
mitee are H. A. Jones, W. D. Grad¬
through 1970. /11
ison
&
Co.,; Chairman; M. W.
Obviously the Ohio municipal
Lepper, A. Lepper & Co.; and J.
market touched new high levels
L. Barth of the J. L. Barth Co.
in the past month.
However, it is W. D. Gradison of W. D. Gradison
difficult to
picture the present &
Co., and J. M. Hutton of W. E.
condition of the market.
f \
Hutton & Co. make up the Audit¬
last

On

65.

Branch in Cleveland

Harriman, Ripley & Co.
the underwriting group.

even

lower

Frank¬
lin
School District, in
Summit
county, sold $92,000 bonds as 114 s
at 100.14, with maturities of 1946-

2296)

on page

l's,

as

with

not

1970.

The Beau¬

56%.

NEW

BROADWAY

states

with

;o\

37% of
its holdings and the May trusts

14

quality and
maturity sell¬
ing in other
or

000

(Continued

Stock Exchange
CV

Teletype

,

29

May.

'

Ohios.

of
has

similar

of

Ohio issues.

Cleveland financial scene and
for J. S. Bache &
Co. since 1933, was named as one
of seven new general partners in

constituted

trust

mont

Building

Commerce

CLEVELAND

veteran of

separate trusts created by
late Rosa

the

INCORPORATED

bonds

With

office manager

the firm.

in¬

high.

deed

the

and the remainder were sold by

WM. J. MERICKA & CO.

and the
quality of the

Other recent sales also

the late Louis Dudley Beaumont

four

Thompson

Sam H. Sampliner, a

trust created by

a

Smith,

4% cumulative
preferred stock; sold at $107 per

were

Request

of

shares

15,000

Sixty thousand of the shares
bought
by
the
under¬

Company

and

Co.

&

a

den,

J. Austin White

*

Barney headed a group of 42 in¬
houses which offered

Lehman

and

quite

debt bur¬

low

$5,534,-

vestment

of 2,460,792
outstanding, exclusive
of stock in the treasury, and that
the company will receive none of
the proceeds.

Engineering

on

McDonald

part of a total

shares

Circular

Co.

with

214%

*

*

value common
Department Stores

&

Columbus,

in the Van Ingen

and

par

of

suburb

1961 to 1967.

The dealers said the shares

Bros.
were

Wellman

$5

May

Sachs

man,

Tele. CI 68 4 274

Tel. Main 4884

4.

.

Co., was heavily over-subscribed.
The shares were offered by Gold¬

Building

Terminal

of
of

stock

*

secondary offering, 80,000

a

shares

Cincinnati

and

York

Exchanges—N. Y. Curb Assoc.

*

*

.

Members

Davin

Mr.

i d ential

bond is

was

2%

grade

high
r e s

refunding
bonds
of \ North
Bergen, N. J.
Bonds were reoffered at prices to
yield from $102.30 for the first
maturity to $97 for the last ma¬
turity.
The bonds are due from
of

000

stated.

Com.

Bonds, Pfd. &

1937,

of

end

the

.*4

,

announced.

& Co. account which won

equipment debt of $100,000,000,
a reduction
of $50,505,000 since

Philip Carey Com. & Pfd.

■

group

Otis & Co.

refund¬

ing, the road will have a non-

Certificates

Land Trust

Co.

was

the refunding date.

as

On completion of the

,4 4

*

,

;

awarded $1,250,000
refunding 2%% bonds-of the City
of Detroit.
The bonds, due 1951
to
1960, were bought from the
Aetna
Life
Insurance
Co.
and
were reoffered at prices to yield
from 1.00 to 1.60%.
No bid price
&

marked the final

The bonds will
replace the present refunding 4%s
of 1978, outstanding in the amount
of $59,875,000, with September 1

Gruen Watch, Cora.

:Js

the issue had

Field, Richards & Co. and Otis
& Co. were in the Halsey, Stuart

step in the program of refunding
announced by the road's directors
last

4;v.,
/

said sale

President J. W. Davin
of the new bonds

Co.

&

"

1899

McDonald

and

Co.

&

Mericka

$100,000.

& Co. with

(Incorporated)
Terminal

alloted

bonds, and William J.

before noon of the day the bonds were offered % 0f
already been placed (and the balance has since been
sold).
<$>Bexley
is Moreover, there has been little if
in fact, any increase in the
of
course,
a
supply

is the fact that

Turben

Cleveland

was

OTIS & CO.
ESTABLISHED

firms were
Corp., which
$150,000
of the

Cleveland

The

First
Request

on

By J. AUSTIN WHITE

& St. Louis Railroad Co. V, Last Thursday night Bexley School District, in Franklin Countv
Halsey bid was 99.779 xor sold $310,000 of bonds due 1946-65 as 1% bonds at 100V2, and thus set
average annual interest cost of approximately a record for theh ighest price at which any Ohio issue of comparable
maturity has ever been sold.
But of even greater interest, perhaps

offering $58,000,000 New York, Chicago
refunding mortgage series E bonds.
The

Standard Stoker Co.

Memorandums

Municipal Comment

& Co. group

houses were in the Halsey-Stuart

+

■

Ohio

Ohio Brevities

Inc.

U. S. Truck Lines,

■

connect¬

Co.. Fidel¬

ity Building. Mr. Whitwell in the
past was with Wm. J. Mericka &
Co.

and

Cunningham & Co.

•

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4388

161

Volume

2285

ADVERTISEMENT

FRANCISCO TRADING IN NEW YORK STOCKS

SflN

NOTE—From time to time, in this space,
there will appear an article which we hope
will be of interest to our fellow Americans.

hundred and forty-eight stocks traded on the New York

One

Exchange are also traded

Stock

the hours of 10

Exchange between

the San Francisco Stock

on

a. m.

and 5:30

p. m.

eighty-seven of a series.

This is number

(E.W.T.)

SCHENLEY DISTILLERS CORP.,

NEW YORK

A list of these stocks is available upon request

Quotations and

executions promptly handled over our Direct Private Wire

-Salesmanship!

Kaiser & Co.
MEMBERS
NEW YORK

STOCK

NEW YORK

20

PINE STREET

NEW

CURB

like in any
15D0

YORK 5

BUILDIN3

RUSS

SAN FRANCISCO

Corporate Relations

€o:

Members New York Stock Exchange

tion, government laws and activ¬
ities

particular in¬
and profit ele¬

volume

degree

following comments are in¬
indicate briefly a
few aspects of corporate relations
with
different
groups so
as to
show the advisability of an inte¬
grated plan.
Obviously, the re¬
quirements vary with different

have

industries

influ¬

specific factors and

many

contributed to ' the
evolution of the present state and
condition of corporate relations,
basically they reflect in varying
have

ences

the dynamic changes which
occurred in the broad pat¬
tern of thinking and action in our
economic,
political
and
social
structures—which structures are
interdependent and closely linked
together, although frequently re¬
garded and treated ■ ■ as separate
and independent entities.
and constant atten¬

The serious

tion

now

well

as

indi¬

with

companies, and in the
approach it is important
to note which aspects of corporate
relations are already well forti¬
fied and thus require little con¬
sideration, and which require im¬
provement
or
more
decisive
vidual

overall

action.

being given to the many

aspects of corporate relations is
well evidenced in the delibera¬
meetings of executive
committees or boards of directors.
In one sense the broad policies
tions

The

at

governing corporate relations con¬
stitute
the
framework
within

Relations With Customers

Obviously, a constructive and
satisfactory program of corporate
relations with
customers is the
cornerstone

upon

•

»

■■■

advisable that plans or pro¬

7."

grams

for corporate relations might

.also consider what contributions—

charitable—can be

practical, not
the1

made

to

needs

and

growing recogni¬
it is note¬

Indicative of the

tion

of

this

concept,

worthy that the Ford
in

an

stated

of

the

New

1945,

in

follows:

as

Motor Co.

April 21,

advertisement

"Times"

York

economic
nation.

overall

welfare of the

"American

performing its
complete function unless it makes
available to every family tradi¬
business

is

not

tional American standards of liv¬

American business also must
social order and social ad¬

ing.

serve

vance."

-

Corporate Relations

on

With Important Groups
As stated, the

ultimate purpose

of any plan or program of corpo¬
rate relations is to maintain or

enhance the profit

possibilities of
company, and, consequently, the

costs

incurred

costs

thereto

and

or

are

expenses

applicable

reasonably determin¬

praised.
To evolve

integrated and co¬
ordinated plan for corporate re¬
lations, it is necessary to analyze
the various
policies now being
followed
with
various
groups

able

an

(employees, customers, stockhold¬

many

of

and

When they re¬
have to be trained

course.

each company can institute meas¬
ures to create a better spirit and

favorably situated to maintain con¬

elicit

structive

of

vate enterprise generally is more

greater interest

a

the

average

routine

and

which,

in

on the part
employee in his

monotonous

govern¬

adequately

can

with

of the

groups

should pay off in dividends. While

with

relations

it

relations

its

job—parlance,

financial

if

ment

adjust
various

the

its

economy on

own

initiative and volition.

the most important
determinant, the degree of satis¬
factory employee relations is also
indicated by the amount of labor
turnover (excluding company lay¬
offs) in normal times, and ulti¬
mately, in the trend of unit pro¬
duction cost per dollar of capital

wage rates are

the

In

investment.

of i

views

a

Relations With Competitors
The

attitude

of

competitors should be

the

welfare

whole
the

to

of

of

and

company

the

industry

as

with

facilitate

stockholders

ap¬

the tempo

of

selectivity

on

from

There will be
new strategies and aggressiveness
—and the pace will be fast. And
there will be a new awakening of
war.

the part of the buy¬

again be important; the consumer
will be

in question. This

have

pooled their research activ¬
ities in order to develop jointly a

more

quality.

insistent

ever

on

job—the job of the sales¬

Without him, there can be

man.
no

than

.

A great

a

beneficial

course

business will take its tempo

ing public. Names of products will

dealing with
one of fos¬
tering cooperation on those spe¬
cific matters which are helpful to
<

before because post-war

never

as

prosperous

America. Salesman¬

ship sells goods. Workers are paid

goods—-and "payrolls",

for making

prosperity.

means

:;

,

Note these three "Ps"i

PURCHASES
!

—

PAYROLLS

—

7

PROSPERITY!
*■

.1

* *

*

+

*

*

•

in wartime, there is sales¬

Even

manship

going

all

on

world :—American

over

the

salesmanship.

Benj, Philipson Back

The

Relations With Employees
The

cardinal

roughly equivalent, that company
which has a more cohesive and
united

to

methods

of

procedure,
since the formulation of practical
policies
of
corporate
relations
comprehend- the proper evalua¬
or

various

factors

such

as

the

average

employee.

chain

"A

is

no

of

a

to

The old adage

broad
labor

executive

of

.

ernment

regulation

practices.

by other companies.

emulating the desir¬
employment with the
soliciting approval on

Government

"

The individual company can ac¬

complish very little by itself on
this very- difficult and complex
aspect of corporate relations. The

course,

approach
must
necessarily
be
through the trade association of
each industry and through ' na¬
tional business organizations. Pri-

fairly well established and influ¬
enced by labor organizations, gov¬

industry

or

Relations With

elements

patterns of dealing
employees below
are,

In the broader interest of main¬

the

controversial issues, etc.

or

rank

of

company,

stronger than its
is equally appli¬

agement group,




ability

business organization.

The
with

securities,

support of its

personnel

of

and
maintaining
the
public's goodwill need not be lim¬
ited to a company's products or
services but may also be utilized
advantageously in such objectives
as
creating favorable investment
attitude
toward
the
company's

employee relations. An alert, ju¬
dicious and aggressive manage¬
ment
cannot
achieve
its
goals
without enthusiastic

extent

Building

em¬

ployee, will, in time, show better
results than competitors who are
not as favorably situated in their

nature of organization set-up, ob¬
jectives and philosophy of man¬

competitive situa¬

average

and

nature

dividuals

organization from manage¬
down

ment

the

simple

being

factors

General Public

With

approach to this aspect will de¬
pend largely but not entirely upon
whether the product or service
is for use or consumption by in¬

here is

principle

other

the

that

link"

no

Relations With Other Companies

it
Relations

cable

are

make

worthwhile."

weakest

There

will

sales

eventual

our

tory aims.

of

jobs of

turn, they will

beyond the immediate post¬
period of flush demand when

ers, etc.) in order to eliminate or
reconcile conflicting or contradic¬

tion

and

will be back with us,

Twelve million boys and girls in
proval of management plans on
uniform, no matter where they
competitive
situation
will important matters, reduce contro¬ more efficient engine which will
versies and are most helpful when stimulate railroad
are,
are
"selling" America—in
purchases and
again become quite vigorous and
the need for additional common
word and in deed.
thereby help the industry as a
undoubtedly bring about a very
stock capital funds arises.
whole; a non-profit organization
decided change from emergency
Indeed!
A fundamental weakness in the of the principal beet sugar proc¬
or full production at almost any
MARK MERIT
essors
of
United
States
is
being
cost
to
a
peacetime policy of present state of corporate rela¬
of Schenley Distillers Corp,
formed which will work exclu¬
tions
with
stockholders
results
profits through production econo¬
mies.
As
against
a
short-run from "absentee ownership," and sively toward full mechanization
FREE —Send a postcard or letter to
of the crop and to which funds
policy of maximum prices under while this situation is inevitable in
Schenley Distillers Corp., 350 Fifth Ave.,
the
N.
Y. 1, N. Y. and you will receive
practical scheme of things, #and skilled personnel .will be con¬
favorable demand, a few progres¬
a booklet containing reprints of earlier
sive companies are already plan¬ some efforts should be made to tributed, and this step will ex¬
articles on various subjects in this series.
ning maximum volume with re¬ lessen this weakness for the in¬ pedite the splendid progress al¬
duced unit costs of production— terests of industrial companies and ready made.
Other areas of practical coop¬
the equivalent of a long-term in¬ of private enterprise generally.
vestment in customers and custo¬
To supplement the usual routine eration might be the elimination
mer relations.
Recently, a prom¬ contacts with stockholders via the of costly industrial practices and j
inent industrialist said: "We plan media of brief annual meetings methods which obstruct progress'
to
market
numerous
post-war and periodic financial statements, or keep prices inordinately high,
products by setting prices low attention should also be given to¬ but only an objective and critical
UTICA, N. Y.—Lt. (j. g.) Benja¬
enough to appeal to the consumer; wards eliciting a more practical analysis will indicate wherein co¬ min Philipson has been honorably
we may take a beating for a while,
and active interest on the part of operation, if at all, is feasible.
discharged from the U. S. Navy
but we're willing to gamble that stockholders.
and is now back at his desk with
war

gains de¬

the

able, the gains therefrom cannot
be specifically measured in dol¬
lars, but their value and effec¬
tiveness
can
be
generally ap¬

rules

now.

come

the

rived have to be evaluated. While

the

precious

At Desk in Utica

Comments

a

will

peace

our men

'

with all other groups.

look

far different

are

A successful leading industrialist, "no wage is is a realistic and practical con¬
which are fitted or adjusted the approach depends largely on op¬ too high that is earned."
sideration
entirely
within
the
more specific
framework of competitive private
plans for produc¬ erating policies which determine
Relations With Stockholders
tion, sales, distribution, research, the relative quality and price of
enterprise,,, and is deserving of
The questionnaires being sent more attention because the vol¬
etc. The practical necessity for a products or services offered. (For
constructive plan of corporate re¬ utilities and railroads, where the out by some companies to their ume of business and profitability
stockholders
to
determine
the of
lations is that it contributes to
price for service rendered is not
operations of a single company
the attainment and continuity of subject to the usual flexibility of kind of information most desired usually follows closely the aver¬
in annual reports reflect the ef¬
satisfactory
profits.
From
the management5 decisions-* there are
age pattern of industry results. A
standpoint
of
improving
and other considerations requiring spe¬ forts being made to develop more few significant examples of such
permanent
and
more
satisfied practical cooperation follow: three
strengthening the position of pri¬ cial treatment.) V
stockholders. Satisfactory relations
vate enterprise generally, it would
leading locomotive manufacturers
Business
organizations
should
seem

of

purposes.

Their wartime"arguments"

away.

Phone LD-159

war

they will have first choice of avail¬

relations

corporate

for

policies

which are built

DISTRIBUTORS OF

Home Office Atlanta

of

time

in

company's distill¬
presently engaged

The sales
arguments our former salesmen
learned are temporarily stowed
alcohol for

But,
•

as our

manufacture

the

in

BROKERS OF BONDS, STOCKS, COMMODITIES
Private Wires

essential

most

ing facilities are

and

INVESTMENT SECURITIES

tended only to

as

work

war—just

Exchanges

UNDERWRITERS AND

ments, etc.

the uniforms of the
engaged in

now wear

armed services, or are

the

affecting

dustry,

Other Leading

jobs

BANKERS

INVESTMENT

(Continued from page 2280)

the cudgels for a smaller
competitor on fundamental prin¬
ciples of management, might have
been formerly regarded as poor
business, and so on.
Although

other business, is de¬

pleted of manpower. Many of our
salesmen who had word-of-mouth

4

&
took up

in Schenley,

The Sales Department

EXCHANGE
EXCHANGE

SAN FRANCISCO STOCK EXCHANGE

and general
Nevertheless,
'

'. //.

'

.

,

the smaller but
business
companies
as

taining

efficient
separate

large business
can render practical
assistance by contract sub-letting;
and this approach has advantages

entities, the
organization

very

increased

over

in

growth

concentration and

the

size

of

business

units.

Philipson
Street.

&

Co., 219
Genesee
Philipson was jn the

Mr.

service for thirty-nine months and
served in the invasions of North

Africa, Salerno and Normandy.
have special¬
York securi¬
ties since 1923. Benjamin Philip¬
son
is
manager
of the dealers
service department for the firm.
Philipson

&

Co.

ized in upstate New

Summary Comment

Any

of corporate re¬
has to

program

Firm Name Will Be

lations with various groups
be

the

justified over the long run by
nature and extent of its con¬

tribution

to

the

company

as

Ghas.

to

competitive
situation,
approval, coordina¬
tion of personnel, and goodwill of
customers and public.
The spe¬

Slaughter & Go.

Slaughter,

profits,

Beaver

stockholders'

announces

cific
are

measures

best

to

be

formulated

undertaken
after

an

ob¬

jective analysis free from predi¬

firm

be

on

to

Slaughter
Shepherd will

general

partner¬

June 1, 1945.

The firm has membership in the
New

York

Stock

lections, and such an approach is

other

usually attained through the me¬

in

dium of outside

in securities

experts.

& Co.,
66
York City,
changed its

Charles

to

H. Rudolph

admitted

ship

New

that it has

name

& Co.

Home

Street,

a

Exchange

and

exchanges and will engage
general

brokerage

business

and commodities.

Wartime Trade of Latin

Trading Markets In

Markets In—

—We Maintain Active

•

as

C. L. Schmidt & Co.

New York

-Philadelphia

.

.

«

Teletype CG 273
> Minneapolis

Telephone State 8711

3

Tele. CG 271

Randolph 6960

j...r /;

Street, Chicago 3

So. La Salle

.135

Salle Street

CHICAGO
Tel.

'''4 / V///V

Established 1922

v-:;

proportion of Latin American ex¬
ports going to the United States,
and the proportion of Latin Amer¬
ican
imports from
the' United
States rose from about one-third
in each case in 1938 to more than

Byllesby
and Company
Incorporated
//,;■■'

H. M.

one-half in 1943.

Expand; To Change Name June

Bache Firm to
Missouri Power Com.

Arkansas

G. Conn Ltd.

C.

withdraw as a

will

Michel

Dearborn Corp.

Consolidated

&

Bache

Consolidated Elec. & Gas Pfd.
Textron Inc. Warrants

J

general

1 i

six

Clement, Curtis & Co.
Y. Stock Exch.

and Others

and

Teletype CG 214

The

>

four

J Fred.W.FairmanCo.LL,
Members

Chicago

Stock

Chicago

Board

Exchange
of. Trade

Mexi¬

Alexandria, Egypt, and
France.
In / peacetime,

branches

correspondents

or

principal

also maintained in other

foreign cities, especially the capi¬
tal cities of Europe.
-U-v/it';/

Harold L> Bache

•.
v
of John J. Ryan

owners

are

Mr.

Schwartz,

Ken-

former

a

-

dealing tuckian, was responsible for the
textile pro¬ purchase of the Dodge Company
well known in this from the motor car family of that
country and abroad and maintain name and its later resale to Chrys¬
ler. Mr. Schwartz, with his broth¬
offices in Troy, N. Y., New York
City, Boston, Mass., Chicago, 111., er, Morton, have been well known
Hebronville, Mass., and -Green¬ in the financial community for
ville, Si C.
They have been for many years.
He has served ar
years
leading
figures
in
the a consultant on public relations
domestic as well as the import and for a number of companies, in¬

&

Corporation

Garrett

and Lon¬

City,
Paris,

the Ry-

are

ans

offices in Toronto

co

the

among

ners;

business,

don, and correspondents in

proposed part-

Markets

Firm Trading

ports declined from 12% in 1938
to 8% in 1943, with a drop of less
than 4% indicated for 1944.

international

in

SOUTH LA SALLE ST.

208

4, ILLINOIS

CHICAGO

Randolph

Telephone

System

Bell

;

;

4068

CG 537

i

Federal Electric "A" & Common

Aircraft Common

Howard

Sons, Inc., a corporation
and

cotton

Paper Common

i

:

export field of cotton and rayon
products, John J. Ryan, Jr., James
C. Ryan and Frank T. Ryan are
to enter the firm as general part¬
ners.
John J. and Frank T. will

pany's

office

main

James

Street.

Incorporated

South La Salle

135

CHICAGO

:

*

Street,

3
Central 7540

CG 530
Direct

Wires

Principal

Our

To

his

j.

Steel

&

Wire,

Com.

Globe Steel Tubes Co. Com.
Lincoln
Parker

-

Woodward Governor, Com. '

Paul H.Davis & Go.
Established

•'

:J'.

1916 i

•

Principal Stock Exchanges

Chicago Board of Trade

10 So. La Salle

St., Chicago 3
Teletype CG 405

el. Franklin 8622

3
Indianapolis,

Ind.

Rockford, 111.

-

E.

Russell

H.

Sam

C. Is¬
and
Lt.

Sard

Adolph Woolner, U. S. N. R.
of Bache

firm

The

Snap-On Tools, Com.

Members

and

Rossbach

Sampliner. The new limited part¬
ners. in addition to Lt. Ryan, are
to
be
Charles
A.;
Blackwell,
rael,

Com.

proposed general

new

originally1 founded
Cahn

in

by
its

and

1879

& Co.,

was

Leopold

name

was

changed to J. S. Bache & Co. in
1892
when
Mr. Cahn's nephew,
Jules S. Bache, became a

partner.
Bache, the son of the
late Leopold
S. Bache, and the
nephew of the late Jules S. Bache.
will
now
carry
on
as
head: of

Harold

Bache
The

&

is

formerly

was

the

*

Member, National Association

of Securities Dealers

intra-Latin-American

past,

minor import¬

been of

has

trade

exports
to, other
Latin-American countries ac¬
Total

ance.

exports

American

Latin

of the total
in 1938

only 6%

for

counted

tCalculated

one

of

the

largest

Weeks in

&

to

States

United

American

exports
Latin

of

values

unit

.

the

from

countries^ as recorded

in United States statistics.

Ex¬

change for many years.
the

Of

limited

proposed

part¬

Russell E. Sard was formerly
general partner of Clark Childs
Company and later managing

ners,
a

&

during the first year
existence, he acted as tech¬

Bank

nical

advisor

was

where,

the

the

to

Securities

&

chairman

of

Exchange Com¬

Among such reports
which

vey

was

the

sur¬

in

the

re¬

resulted

&

Charles

in

come

of

the

Jules

late

member

of

the

S.

a

nephew

Bache,

New

York

is

a

Stock

limited partner. He

a

as

Adrian C. Israel is

has

who

expert

family of that

vestment
/

phase of the firm's busi¬

/;.:■

'

; ':--■//'/" YL'V

-

Sam H. Sampliner has managed
Cleveland office of the firm

the

since
was

Mr.

the Ohio

taken

group

Sampliner

several Ohio

of branches

lic Vault

is

a

director/'of

companies, including

Co., and has been

a mem-

TERMINAL

been

with

the

He

is

the

of

Mr. Israel

name.

of the A.

head

Orleans

New

Com¬

C. Israel

modity Co.,-specialists in the im¬

—

Pacific Coast

UNITED

BRICK

& TILE

'

Adolph

member

Woolner

the

of

is

CHICAGO 3

State 6502

-

'

*Dealer

650 S. Spring St.
CG 99




>,

Trinity 3908

the

of

areas

United

under

States

dol¬

lars):
Total

•_

with:

Trade

Exports

Imports

2,968,000

1.853,000

1,570,000

1.070,000

V "

United States

United Kingdom___

460,000

66,000

45 7,000

498.000

Latin Amer¬

Other

j

ican

Republics

Limitations of Data

"Any
trade

analysis/of
the

of

Latin

the

publics

in

ject

numerous

to

sulting

from

tered in
in

the

foreign

American

re¬

is sub¬

aggregate

limitations

difficulties

re¬

encoun¬

Converting data reported

national

currencies

to

United

tices of the various countries.

Circulars

Available

on

York

New

commenting

on

Harold

L.

opments,
the

the

ing
ws.

a

Stock

firm

these devel¬

Bache

said

continue

would

to

same

time, was preparing

participate in the increas¬
demands for new capital by

"Our

Kneeland & Co.
BOARD

141

OF

TRADE

BUILDING-

W. JACKSON BLVD., CHICAGO

Tel. WAB. 8686 and Western Union

Telephone

4

^

partners

new

June

range

commodity

'

1st

be ad¬
bring a

to

will

of experience in the
well as the security

as

business/ with a background that
will permit us to expand our scope
of activities both nationally and

/

Tele. CG 640, 641 & 642

r

most

instances
United

to

where

States

con¬

dollar

equivalents

is
required, yearly
exchange rates have been
applied to the original values in

average

terms of the units of national

In

rency./

few

a

cur¬

namely,

cases,

Venezuela's exports,

arid both ex¬

ports and imports of Bolivia, Ur¬
uguay,
and Argentina, multiple
conversion rates calculated on the

basis / of various rates of exchange

governing

import

and

export

"Among the differences in sta¬
tistical

of

the

American

with

with itself

are:

1.

affecting
trade of

practices

parisons

and
*

in

methods

consular

3.

exclusion of cer¬

or

such as

charges,

duties and

fees.

metals

America

aie

treatment of

in

Differences

Most of the prec¬

gold and silver.
ious

of

exported

commodities
imported.

2. Inclusion

and

areas

Differences

tain

com¬

Latin

other

valuing

exported from Latin
newly mined and as

represent to the exporting
commodity
shipments
imilar to exports of other min¬

ucn

ountry

erals.

\merica
position

would

'.son with

are

their

trade, yet

from

which gold

and

excluded.

Differences

4.

which

for

world

precludes strict comparUnited States merchan¬

trade,

silver

amounts

trade of Latin
be to distort its

foreign

in

riclusioii
dise

exclude these

To
the

rom

one

statistical

the

in

transactions

are

time at
recorded

While

purposes.

country may

of

entry

internationally.''

,

'

>

consumption

into

practice may
involve for a portion of the trade
a time lag of months or, for some
The latter

countries, even years after
Entry into the country.;
tries

of

and of

actual

reporting coun¬

exports
and dif¬
geographic designa¬
for

destination

origin for imports

ferences

in

tions.

Inability or failure to adjust
by countries to include sh.ip'
leaving the country markea
"To order" (notably Chile, which
also withholds country of destin¬
6.

trade

ments

ation

period.

Request

"In

version

5. Variations in
In

mitted ^on

LOS ANGELES 14

135 La Salle St.

thousands

channels.

also

Exchange. At present he is serv¬
ing with the United States Naval
Air Forces.
N /

wide
,

with

time

Lt.

American business in the postwar

MARKET

DISTRIBUTION

trade

and

consideration, is given below (in

ber and other commodities.

at

INC.

CO.

INDUSTRIAL R. E; TRUST 3/49

UNDERWRITERS
SECONDARY

other

spices, and in peacetime, of rub¬

that

For

i

countries

an annual
basis
monthly periods for
countries,
showing totals

record imports
it the time of entry into the coun¬
try, another may record them at

portation from South America and.
the Far East of coffee, cocoa and

emphasize its commission business
in securities and commodities and,

CHEMICAL CORP.

♦DETROIT HARBOR

is

by the Bache wire.

over

commodity

a

Government in various food activ¬

with the Bache firm for

ness.

/

/•

/.

ities.

18 years.

the

in

office

Exchange and has made his office
He will be associated with the in¬

in the
Chrysler

will make his headquarters

Building".

Rossbach,

Co., is to

ciated with Redmond &

Bache

Laurence B.

Blackwell, of' New
was formerly asso¬

A.

York, who also

ration of America in 1936.

-

of the

Legion

New York State American

capitalization of the Radio Corpo¬
•

Mr. Sard

Co.

Commander

lirst

the

and the

Company

Trust

Insurance

Albany

itself to

.Middle West

projections to

transactions have been used.

Stock

Cleveland

the

of

ber

of its

AMERICAN, WINDOW GLASS CO.
MICHIGAN

relative

the basis of the

on

ton

of Hornblower

V

CARTER H.C0RBREY& CO.
Wholesale Distributors

and

of prelim in

some

from various

trade

in

changes

1930, he left the Street and trans¬
ferred his activities to Washing¬

figures of Wall

Joseph & Feiss and Galion Metal¬

'

Co.

Fayne

J
1

summarization

1944 trade of

differences in the statistical prac¬

partner of Redmond & Co. Before
moving to New York to enter the
brokerage business, he was a resi¬
dent of Albany where he was a di¬
rector of the National Commercial

L.

firm

A.

Com¬

Products

//; /,,^:;//.;/vv:-v:''■'/■

.

mission.; Subsequently,
he
was
engaged in making private sur¬
veys and studies of corporations.

Charles R. Blakely, Adrian

Ptg. Co. 6,-1963

Appliance,

as

-

B.

ence

Central

continue

will

will
be
A. • Charles
Schwartz, James A. Fayne, Laur¬

partners

Cities Throughout
Country

the

'

among
Latin American countries. In

the

and

Rand

After he retired from the

Street.

heretofore.
The other

In

Offices

Inc.,

Sons,

..

of the leading

firm

M.'Ryan, at present a lieutenant
in the U. S. Naval Reserve, is to.
enter the firm as a limited part¬
ner.
The business of John J. Ryan
&

Aircraft

•

James
one

Wall

make

will

C.

Remington

United
pany.

& Com¬

36

at

cluding

headquarters in Troy, N. Y. Joseph

E. H. Rollins & Sons

•

rayon

be associated with Bache

Central

Preliminary 1944 Data

States dollar equivalents and from

about

brought

war" has

"The

major

ducts. They are

Midland Utilities 6/38

Trade

Intra-Latin-American
•

1

ary

the
Kingdom declined by 37%

wire

an,,

nf
even

'-'v-

-

dollar value between

in

are

striking.

more,

"Imports into the area from
United

countries

;

Frank T.Ryan,
are

.4

,

years.

private wire
opened in 1892 between New York
City and Albany, N. Y.. The firm

install a private

to

the

individual

each of these

17% of the total in

1938 and
1943.:
The
United
Kingdom's
share of total Latin American im¬

Stock Ex-,

New York

of the

with

John
J,
Jr., James C.,
Joseph M., and
ers, /

approximately

taking

by

;n

intra-Latin-American S trade

American ex¬

market for Latin

a

ports

docs

Ryan Broth¬

I SINCE 19081

houses in the country,
branch offices or corre¬
spondents in fifty-three cities and
holding membership in the New
York Stock Exchange and 23 other
security and commodity/ex¬
changes. lt was the first member

system. This was the

in
of $4,-

The

1943, and the United Kingdom
maintained its relative position as

:

having

change

capital '

000,000.

*

.

general been drastically re¬
by the war, there has been
a
growing export trade with the
United Kingdom.
Exports to the
United Kingdom increased in dol_.
lar .value by 45%
from 1938 to
duced

brokerage

firm

firm will have

excess

CHICAGO 3
Randolph 6800

i t ed

m

partners.
a

LA SALLE ST.

134 S.

'

simultaneous¬

partners

Members N.

-

Co., it is proposed will

new

- -

-

•*

ly admit seven

Stockyards Corp. Pfd.

United

general partner.

between
Latin
countries and Europe

has in

Co., 36 Wall Street, New York
City, announced that, effective June 1, the firm of J. S. Bache & Co.
will be known under the new name of Bache & Co.
At the same
time, it was stated that, as of June 1, all interest of the late Jules S.
Bache held by his estate will cease, and that Captain Clifford W.
partners of J. S. Bache &

The

/.

15%

preliminary

from -other
Latin American countries
showei
a
rise
from
9% of total
Latin
American imports in 1938
to a?/
ill 1943 and 1944,
Changes in

;>

trade

"While

American

approximately

according
to
estimates.;
Imports

-

Europe

Trade With

to

rose-

1944

"A

Pittsburgh

.

TRADING MARKETS:

The

America.

imports for Latin

CO. 6% & 7% Pfds.

NORTHERN STATES POWER

'■} United Stockyards Pfd.

120 South La

by far the/major export marketwell as the principal source of

CORP. Common

GALVIN MANUFACTURING

Nu Enamel

United States has become

"The

Co.

but

about 30%;f

this trade was only

Common

DEEP ROCK OIL CORP.

America

(Continued from page 2280)

Central Electric & Gas
Fuller Mfg.

Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2286

of

nitrate

and

iodine)

oi

one-fourth to
one-half
of
Paraguay's exports
°re
reported / as; "In
transit
"In transit."

(From

through Argentina.)
7. Differences in

for

which

,

annual

periods

trade is re'
for calendar years oi

foreign

ported, i. e.,
various fiscal

years.

Number 4388

Volume 161

THE COMMERCIAL & FINANCIAL
CHRONICLE

BUY WAR BONDS

We have

a

.

ViCTORY

FOR

2287

continuing interest in the following:

American

Barge Lines Co. Common

Anheuser Busch Inc.
Gas tJtil.

INCORPORATED

Mastic-Asphalt Co. Common

Dearborn

Telephone:

KITCHEN & CO.
135 South La Salle Street

New Jefferson Hotel Co. 4-6% Bonds

STREET

(ST.

9600

BONDS

Corp. Common

DOYLE, O'CONNOR & CO.
SOUTH LA SALLE

-

Capital

Hydraulic Press Mfg. Co. Common

135

TRACTION

American Service Co. $3.00 Part. Pfd.

Consolidated

Teletype:

CG

Chicago 3, III.

LOUIS)

1200

Seven-Up Bottling Co. Common & Pfd.
(ST.

which is the thirteenth since 1896,

Marmon

uptrends in the last 49 years.
The one from 1932 to 1937 however
years and eight months while the longest one on
record, from 1923 to 1929, lasted for six years and one month.
lasted for four

this one
when

was

news

born during a time
and sentiment were

■anything but stimulating. Hitler's
troops had raced through most of
Japanese were over¬

Europe, the

running the Pacific, industry was

.adjusting itself to a war basis and

taxation was be¬
ing planned by Congress.
But
stocks were historically cheap fol¬

heavy war time

lowing a two and a half year bear
market. Seldom had they been as

preceding twenty-five

low in the
years.

and

News

sentiment

the

at

present time are quite the reverse
•of what they were three years

Germany is a defeated nation,
the
Japanese are being driven
back at a faster pace than we had

.ago.

•dared
the

hope, there is confidence in
Administration in Wash¬

new

ington, there is hope of tax relief
when the Japanese phase of the
war
is over, there is large de¬
mand for consumers' goods, and
never
before in history has the
public had so much money to
.spend.
Because

the outlook appears so

promising, at least
it may be well to
what has

in

the

tions

have

been

so

we

discounted

can

adjust

vestment programs

As

mar-

our

in¬

accordingly.

result of the 77 %

a

of

years and see
improved" condi¬

much

,.

stock

three

how

ketwise

the surface,

take

happened in the market

last

the

on

rise in

prices during the last three

years,
the Dow Jones industrial average
now at a level that is above the

is

18%

higher than

four

at

reached

this

The

that

one

ended

in

level,

average.

1929

was,

lower than it is now,

level

in 47 out of

Rails

Dow

Jones

:

all

of

the

previous bull markets

in th.e rail average ended at high¬
er levels than at present with the

of 1938 and
1939.
At its highest level in his¬
tory which was 189.11 in 1929,
this average was 230% above cur¬
of

exception

those

At its 1937 top it was

rent levels.

higher

12%%

than; it

From its low in 1932

three

years

is

it is up

today.
330%.

Historically

ago.

though we realize that
question in the minds of
vestors is how.much the
worth.
'There is a vast
uninvested capital in
there

the low
ferred

has

«.

also

the country
only a

been

increase in the supply of
This, in conjunction with
yields on bonds and pre¬

big in¬

stocks, has been a

supporting rising prices
common shares and will prob¬

favorable fac¬

-N.

Y. S.

Y.

Yield

S.
.on

E.

E.

Change
+
77%

April 1942

April 1945

92.92

164.71

23.85

57.19

J +139

30.41

+ 188

19.78

54.17

+ 174

97.22

355.75

+ 266

+

$61,497,000,000
1,361,000 share
$31,000 shares

$31,449,000,000

95

+ 232

Jones Averages:—

47-'%

•30

Industrials

7.68%

4.03%

20

Railroads

8.07

4.51

44

10.25

4.07

60

5.20

3.24

37%

2.74

2.56

$10.65

$10.07

15

Utilities

40

Bonds

10

Highest Grade Bonds (Barrons)
Earnings on Dow Jones:—
Industrials
^
Price

X

Federal

Board

Index

of

•Gross

Loans

Federal

We

are

N.

Y.

S.

in

+

25

$335,000,000

$874,000,000

+160

$71,000,000,000

$241,000,000,000

+ 238

ob¬

total value of all-

reorientation
of values of individual stocks. In
the
last
three years practically
every corporation has been able
to make money and some ineffi¬
ciently operated companies have
shown greater percentage gains in

economy.
bas

a

peace

time

Never before in history

the market had to discount
and reflect
changes of such mag¬

nitude.

Until

we

the reconversion

get further into

period, until

>yhat the attitude

^ iil-beJand until
iax

of

we

labor

we know what the

changes are, it will

be impos-

sible to
appraise the effect




on

the

at

stocks.
Many of the holders of
lower quality shares will become
nervous
if the reconversion and

time to consider carefully to what

early postwar periods do not come
up to expectations.
The shares

In general the depressed groups
listed above have less to lose if the

of

market

well

managed

in

hands and will
mand

from

companies are
permanent

more

tend to

funds

meet de¬

derived

called bonds and preferred
v

Before

the

last

from

stocks,

ended

war

extent some groups

and

post

to.

ing

But

we

feel

confident in

dicting that events of the
or

two

good

tations.

attract

Common

Franklin

buyers

in

Tax

In

other

however

cases

happen to be popular at the

time and in which one is compet¬

*Howell Elec. Motors
Interstate Aircraft &

the

I

period.—HARRIS, UPHAM

Engineering Corp.

& CO.

Common

Mohawk Liqueur

a

laws

return of

and

have

also

pre¬

next year:

favored

more

tax

laws

■

*

Circular

on

request

ADAMS & CO.
i

;

South

231

Salle

La

Street

Chicago U, Illinois
Phone State 0101

Teletype CG 361

his

withdrew

nomination

Art Interesting

Four Wheel Drive

of the
being requested
special assignment

acceptance

after

to undertake a

Study of

Auto

for the American Red Cross.

New
now

Company

four page brochure
available

request

on

ers.

On

the

other

hand

there

have

unpopular groups that
are
today selling' at low levels
compared with their normal price
relationships to the general mar¬

Cratfenden & Co. to

• •'

been many

Not

all stocks that

are

low

in such ratios are cheap, but it is
possible that some of the best bar¬
gains today exist in V these de¬
pressed sections especially since
many
of them are conservative
groups that will appeal to people
shifting from bonds and preferred
stocks.
Many of them will also
be in a better position when the
tax
laws are changed.
Among
,

them

the soap

COMSTOCK & CO.
CHICAGO 4

CHICAGO, ILL.—Cruttenden &
Co., 209 South La Salle Street,
members

of

Stock

Chicago

James

admit

the
H.

New

York

Teletype CG 257

Exchanges, will
Murphy, Conrad

Federally Insured

Tuerk, William R. Mee, and Wal¬
ter P. Norris to partnership in the
firm

as

of June 1st.

is manager

and

ment

of the sales

Mee

is

in

department.

charge

Mr. Nor¬

ris who recently became associated

companies, shoes, chain stores
and 10c. to $l.j, chemicals,
steels and iron, metals, rail equip¬
ments, tobaccos,' electric equip¬

merly vice-president of the Com¬

with

Certificates

Mr. Murphy

To Yield...

of the trading depart¬
Mr.

Cruttenden

&

Dearborn i501

231 So. La Salle St.

and

and vegetable

are

Co..

was

AGGREGATING $25,000,000.00
Have

been

purchased

Trust Companies, Trust
Estates, Pensions.

thru

us

by

Departments,

for¬
SELECT FROM OUR LISTS AND PLACE

merce

Union Bank of Nashville.

VOUR FUNDS DIRECT —NO FEES

Federally

Insured

Savings

&

Loan

this

in

ever^ section of the Coun¬
try, offer Liquidity, Insured safety of
Principal, complete

Nekoosa-Edwaids Paper

FINANCIAL ^irse's-"1 —
mlwmi (To.

Co.

COMMON STOCK

105 SO. LA SALLE ST.. CHICAGO 3

New

Memorandum Available on Request

Mitchell, Hutchms Adds
CHICAGO,
ILL. —Arthur
C.
Harrison, previously with Goodbody & Co., has joined the (staff
of Mitchell, Hutchins & Co.', 231
South La Salle Street, members

£

the

But with

competitive conditions
normal

Corp.

Common

i

ing with many other anxious buy¬

will cause a

efficient-companies.

Preferred

&

postwar prospects

profits than many efficient ones.

less

Preferred

&

County Coal Corp.

Common

in

there is danger in buying groups
that

1234-5

New'York

to

National Terminals Corp.

con¬

discount¬

beneficiaries have been

CG

wire

ACTIVE TRADING MARKETS

.

they should

return to favor if the market

tinues

Direct

;

have overdis-

cpunted ; their post-war earnings;
declines

Bldg., Chicago 3

8S00

time when high

a

stocks listed on
Exchange.

appraise the value of securities as
we shift back
to the more compet¬
of

shares of the higher grade

probably

Field
Randolph

located

the New York Stock

conditions

HICKEY& CO.

Associations about 400 Represented-—

servation
of historical
levels at
the present time because the stock
market will soon be called on to

itive

golds.

ever,

(5c,"

236

this

well

oil

189
E.__

Debt_____

interested

6%

-

"

Industrial Production
Total Brokers

-

16.4 times

8.75 times

Earnings

Reserve

V;

+156

$60,000

$18,000

Membership

Dow

many

ket.

Shares

;Short Interest

Seldom, if

fluence in
for

6s

drinks,
finance and

Detroit, a member of the Board
well of Governors, for one year, to fill
ahead of time.
Naturally some of a vacancy created by the with¬
the big these groups will deserve to sell drawal of John W. Watling, of the
most in¬ at higher premiums if their earn¬ same firm, who had been nomin¬
dollar is ings continue to increase or if ated as a candidate by the Nom¬
total of postwar results come up to expec¬ inating Committee.
Mr. Watling

speaking, therefore, stocks do not
appear on the bargain counter, al¬

and

Limestone

soft

present it costs approximately 1918 our market had been apprais¬
Hirishaw Elected Gov*
to buy the ing the effect's of pedce on our
stocks listed on the New
York economy for only one year. This Of N. Y. Stock Exchange
Stock Exchange than it did when time we have had three years in
■The Board of Governors of the
the bull market started. $100,000 which
to
appraise peace
time New York Stock Exchange has
will
buy about
51% as many prospects of various industries. elected Joseph
Hinshaw, a partner
shares as it would have bought The result is that many peace 'of
Watling, Lerchen &■ Company,

_____

Listed

efficiently operated, and
managed corporations.

containers,
telephone,

At

10.58

All

utilities,

30 billion dollars more

Utilities

of

ments,

quality stocks are low relative to
the general market.
Also it is

Defaulted Rail Bonds
Barrons Low Priced Stocks
Market Value

investors

financed,

can be done

Percentage
Industrials

and

list of stocks been able to buy as

tor.

Jones

change

inoney taken out of the general

1937

Dow

should

should favor the strongly

shown smaller

els, while the

Jones

Indiafta

percentage gains. In the 1920's the
upturn was 146% and in the 1930's
the advance was 385%.
However

bull markets have

ably continue as a

Dow

St. Louis

J. This seems an ideal time to im¬
have investors prove the quality of stocks held
day is up 139% from its level of and speculators paid as big premi¬ in portfolios and to. weed out any
April 28, 1942 and has gained ums for stocks of companies whose questionable issues that have been
145% from its low made in June records during peace times have stimulated
mainly by high war¬
of that year.
Ten of the previous been erratic. Seldom, if ever, has time
earnings. Fortunately this

above current lev¬
rose

Backstay Welt Co.

Chicago

The Dow Jones rail average to¬

however, 132%

advance

lowest

Soya Co.

In other

the last 49 years;

meager

have

the

Herrington Co.

Central

Founded 1890

market is
selling

now

words,
ij; has been possible to buy Dow
Jones average of industrial stocks

stocks.

markets

times

reached in 1932.

the

exception; of 1928 and 1929.
Only two of the previous 12 bull

the

.tociay. This average is

low of every year since 1896, with

judged by the industrial

Stifel, Nicolaus & Company
INCORPORATED

markets,^

Mfg. Co.

Bankers Bldg. LTC

As bull markets go, it has attained a fairly
At least it is older than ten of the previous 12 major

usual with bull

Tele. CG 573

Galvin

;

Western Light & Telephone Co. Common

v

April 28.

years old on
mature age.

As is

v

STAte 4950

LOUIS)

Trailmobile Co. Common

three

was

Tel.

Textron Inc. Common and Warrants

A Three-Yeai-Old Ball Market
This bull market,

CHICAGO

•

22S

EAST

MASON ST.

PHONES—Daly 5392

MILWAUKEE

Chicago: State 0933

(2), WIS.

Teletype

Ml 488

j

of

the

Stock

New

York

Exchanges.

and
•

-

Chic?
-

'

THE COMMERCIAL & FINANCIAL

2288

Chicago, Rock island & Pacific Railway Co.

Chicago,

(when issued)

Rock Island
& Pacific

Thursday, May 24, 1945

CHRONICLE

Ry.

Denver & Rio Grande Western R. R. Co.

T th War Loan Bonds

Buy

'

(when issued)

Bought

—

Sold

Quoted

—

Complete arbitrage proposition

New Securities

Discount

NOW

(When Issued)

profits and

request

on

arbitrages

reverse

SUTRO BROS. & CO.
Members New York Stock

Chic., Milwaukee

pflugfelder, bampton & rust

Telephone REctor 2-7340

St. Paul

-

Pacific R. R.

Central Banking and Bretton Woods

Railroad Securities

Common & Preferred

(Continued from

Minneapolis, St. Paul and Sault Ste. Marie

'

(When Issued)

the

General 4s, 1991
Marketwise

Ernst&Co.
York

Stock

and

Exchange

Broadway, New York 5, N. Yo
So.

231

LaSalle

of net liquid resources available at

the amount

because of

tractive

time.
' -'K
-v.-.;
The Soo reorganization was unusually drastic, old fixed interest

St., Chicago 4, 111.

.

being

obligations

from *

reduced

$132.1 million to $2.46 million and

.ncluding First and Second Mort¬

Income bonds to $30.64 mil¬
lion.
Old fixed charges of $7.26
million were reduced to $50,859
gage

ft. L. Jarvis Heads

both

At

Second

Analysts Group
meeting of the
Security Analysts Asso-

ciation, N.

,

Leonard

Jar-

vis, special
analyst for
Hayden, Stone
& Company,
elected

was

President,

to

succeed
Charles Tat-

ham, Jr. Pierre
R. Bretey, of
Baker, Weeks
& Harden

was

elected Vice-

of

J.

R.

chosen

The

1944

and

onel

D.

was

chosen

Edie

S e cretary,
Irving Kahn

Williston

&

Treasurer.

Co.

was

Lucien

O.

Since Sept. 1
tions

and

vestors

Harold

Eastman,

H.

Dillon

Young of

were

mittee.

A

code

of

ethics

organization drawn

up

for

by

the

a com¬

mittee headed by Benjamin Gra¬
ham

adopted,

was

as were

several

amendments to the Constitution.

Mr. Jarvis,
dent

and

formerly Vice-Presi¬

Chairman

of

the

Soci¬

several years lectured on the sub¬

ject of investment analysis before
the

New

York

Institute

of

Fi¬

RCC

the

to

of

$417,000

of

Mort¬

Second

Income bonds have been
through

the

sinking

re¬

tion

is

leave

to

the

corporation

without any fixed charges and to
reduce

contingent interest from
$1,167,000 to $1,150,000. As of the

year-end,

net

amounted
net

to

current

assets

$15,304,000. Included

current

is

assets

item

an

carrier

a

with

gross

reve¬

of $15 million throughout the

1930s and $22 million throughout
the war period, it would appear
that
of

working capital in

a

$15 million is

more

excess

than ade¬

fic

working capital for debt
the

re¬

the

do

given

the

one-third

of

option to
the com¬

stock at $2 per share.
road

so

has

not

As yet

exercised

this

some

time within the

next

especially as the Class A
stock is selling at $17 per share.
year,

Inasmuch

as

Canadian Pacific

will,

in effect control the road when its

;

El Paso

option is exercised, the bonds are
automatically raised to the status
of

Southwestern

a

semi-investment, since it is

doubtless

the purpose

Railroad
1st & Ref.

amount

show

to

May 1st the First Mort¬
4y2s have been traded "and

gage

interest'*

the New York Stock

on

Exchange and
tively priced.

of the Ca-

ment's

long prevailed in the nation.

The

the

are

of

appear

to be attrac¬

by

relative

a

exchanges.

It

stability
also

was

a

period of gradual easing of trade
trend toward free¬

a

dom of commercial

intercourse.

of

Government

Central

and

standing

the

at

amount of

should

wise,

or
a

deem

in

Income 4s.

such

action

General Mortgage

It would

finan¬

seem

desirable to retire
a
25% discount

bond

the

to purchase in the open
considerable portion of

the $19,712,000

cially

year-end

$8,051,630, if the direc¬

tors

market

issue, out¬

4%

a

at

rather

national

and

Central Banking

From

the
viewpoint of eco¬
action, it is quite clear that
central bank, if it is to perform

:

nomic

throughout the world created, in

its functions

a

number of

of the

categories, problems

relationship of these insti¬

tutions

their

to

ernments. h As

respective
the

gov¬

holder

and

a

trammeled

can be performed
prop¬
In other words, the bank's
policy should be to serve the busi¬

In

did exercise in

and

respective countries

dom¬

a

interests

not the
and

the

of

political

or

exigencies of the government.

its fiscal

ment

operations, a govern¬
have a problem in

may

which

its

needs

own

to

five

times

in

year

excess

General

of

and

in

a

normal

expect it to be

we

three

times,

These

Mortgage Income bonds

selling around 72 to yield 5.55%
aopear

unusually attractive in the

current money
/

>,

market.;,
——i^1

"

vantage

the

nation's

its

upon

welfare.

judgments

on

of

the

business

country.

policies

is when the government is

and

Weir

has become

them

in

department.

their

Mr.

asso¬

syndi¬

Weir

was

formerly

manager of the indus¬
department of L. D. Sher¬

& Co.

man

Whittier
1

been

Securities

formed

Corporation

with

offices

at

Wall Street, New York

act

as

government

dependent

City, to
underwriters, participating

An illustration of this

is to

that

even

expected, therefore,
when created and given
of private business

or¬

securities.

Carl L. V.

president and treasurer, and S. E.

Winfree, secretary.

World

and

with

government

ment.

Great Britain, on

hand,

has

followed

depart-'
the other

policy

a

free action for the Bank of

in

except

times

of

when political

gency,

or

nomic

conditions

of

Eng¬
emer¬

or

required

ference in the bank's affairs. Ger¬

though,

many

set-up

of
it

influenced by the
Bank of England,

the

established

the

War

that

as

when

banks

a

central
one

bank

-

But,

was

a

ac¬

country, there

similar line

tendency
over

The

Roosevelt

to

of policy with
tighten political

central

banking ac¬
changes made by the
Administration in the

Federal

Reserve
System
were
clearly along the line of merely

and

and

as

of

both

EXPRESO AEREO

-;-

6's

of

theoretical

the

Adams & Peck
v

63 Wall

Street, New York 5

BOwling Green 9-8120
Bo&tno

Philadelphia

Tele. NY 1-724
,




Hartford

1. h. rothchild &

exigencies of

conception

co.

Member of National Association

of

Securities

Dealers,

Inc.

52

wall

street

HAnover 2-9072

n.

functioning
separately
distinctly from political in¬
never

been

5

ONE WALL STREET

a

of

conditions

peace

of

HANOVER

2-1355

both war

have brough about

closer connection than ever be¬

fore between government
and central
was

noted

finance

banking policies. This

clearly by the late Pro¬

fessor H. Parker Willis, who, more
than anyone else was responsible
for the contents of the first Fed¬
eral Reserve Act.

In his book on

NEW

YORK 5

tele. NY 1-1293
TEL.

practical.

Moreover, in the last quarter cen¬

Members New York Stock
Exchange
y. c.

the

of central

banking

Mclaughlin, baird & reuss
specialists in rails

of

creator

demands,

fiscal

government

BUY WAR BONDS

'35

be

supervisor of central banks,

because

SEABOARD ALL FLORIDA
'

perfect

would

the

Hasten V-J Day!

Class A and Common

if it is
safely

the' power
as

KEYES FIBRE

5s, 1965

of

ap¬

prohibits loans to the

because

tury the

own

functions

structure

governments

and

our

result

government altogether.

private institution with consider¬
In

the

with other business con¬

which

able

discretionary freedom of

were

In fact, a model of

(until

as

followed

dealing with its member

or

cerns.

tion

regime)

monetary

the

its

fluences has

Hitler's

prime

all

central bank,

a

perform

but

institu¬

the

Hence, it would

trol,

the

is

inflation.

I

and

tion.

kind

which

Imperial
Bank,
followed
the
policy
of
France, in imposing political con¬
maintained

a

satisfactorily, in its dealings
the government, would re¬
quire the same credit standards

eco¬

inter¬

sorely

forces

monetary

such action.

and political control.

land,

this
of

breakdowns

to

tion.

Exselsen,

of

pear

trial,

municipal

tion

source

ganizations, central banks should

a

and

printed bank
notes) from the central bank. Ac¬

be subjected either to close super¬
vision or to absolute government

control

are

be

the status

a

and

also

was

policies and its

funds

for

Practically

It

distributors and dealers in indus¬

Officers

itself

its

on

success.

when

Whittier Securities Corp.
Is Formed in New York
has

but

integrity and the stability of

the

sentially

Hughes & Treat, 40 Wall Street,
New York City, announces that
with

determined

France, in planning the Bank of
France, made this institution es¬

Dept.
Of Hughes and Treat
Gerald J.

and

the

of

Largely

,

G. J. Weir Joins

met

fluence in national affairs and

2%/

post-war

be

only to the detriment and disad¬

loan (in the form of

has ranged from three

can

inating economic and political in¬

the

cent years

public and

financial needs

only shaped

/

un-

by

erly.

terest rates,

their

cur¬

functions

ness

zations could

regulator of

governmental in¬
terference to the extent that these

dispenser of currency, as the chief
dispenser and regulator of credit,
as a regulator and adjuster of in¬
each of these organi¬

as a

and of credit, should be

rency

oressed

-

Theory

selves.

the welfare of the people was not

«

pol¬

banking theory in the light of re¬
cent governmental policies with

than to continue owning Govern¬
ment securities which yield but
Overall interest coverage in re¬

govern¬

fiscal

At this point, it may be well to
examine some aspects of central

The vast power, privileges and
influence
of
central
banks

monetary reserves, as creator and

First Mortgage

the

monetary

icies.

Banks

sufficient to permit retirement
the

of

arm

respect to the central banks them¬
Relationship

guardian of the nation's metallic

Liquid

an

gold standard is char¬

acterized
of

of central banking

period
the

under

resources

trial

reorganization Canadian

was

purchase
mon

sufficient

Since

cate

Pacific

prac¬

Income bonds.

conceivably utilize
tirement purposes.

had

the

for

which

adequate coverage of both of the
two

option, but in all probability will

nance.

in

ciated

two-thirds of

making the Federal Reserve Banks

tically compels them to feed traf¬

quate and that the company could
this

possible
stock

common

the

securities.

ernment

nues

establish

to

value

greatest
new

$6,850,000 of United States Gov¬
For

Pacific

2278)

page

political opposition to central¬
ization of economic power which

barriers and

nadian

fund.

The net result of this debt reduc¬

In

ety's Program Committee, has for

equipment obliga¬
of $1,475,450

amount

issued

notes

some

chosen

Members of the Executive Com¬

new

$510,567 have been paid off, and

of

In¬

the

in

and

in

American

the

working capital amounted to $16,755,000.

Miller

General

were

At the time

securi¬
ties, current assets amounted to
$28,834,000, current liabilities to
$12,079,000, with the result that

Hooper of W. E. Hutton, Oscar M.
of

securities

new

27, 1944.

of the delivery of

tired

B.

the

issued Oct.

>

took
Sept. 1,

Company

the management on

gage

1 g

Soo

new

over

G 1

Caterer of Li¬

N. Leonard Jarvis

exclud¬
sinking

bonds,

capital
fund
and
funds to $1.21 million.

President.
e n e

Mortgage

ing

annual

the

New York

including contingent interest
the First Mortgage and

and
jn

ft. Y.

have done prac¬

1991

tically nothing since the beginning of the year, despite the fact the
bond is attractive on the basis of earnings coverage and doubly at¬

other

leading Security and Commodity Excha,

120

Income 4s,

the present

MEMBERS
New

General

Soo

the

Exchange

120 BROADWAY, NEW YORK 5, N, Y.

TELETYPE

NY

1-2155

Volume 161

Number 4388

"The Theory

and Practice of Cen¬

44):

(page

he wrote

Banking,"

tral

THE COMMERCIAL & FINANCIAL
CHRONICLE
policies

own

to

amend

the

institutions

V

the changes

"Among

...

in

con¬

central banking is that
between the
State, which
is to be noted in practically every
country.
The World War almost
necessarily resulted in great drafts
upon
the, central banks of the
world, it being regarded every¬
where as a patriotic duty for these
banks to assist their respective
governments in the financing of
the war. While, in return, the gov¬
ernments
themselves " exempted
the central banks from those basic
requirements of liquidity and re¬
sponsibility for solvency of the

The

the relationship
central bank and the

Now,
all

Pacts!

to

the

Partly

as

result of

a

responsibility
accepted
by
central banks in their capacity as
the

fiscal agents for the proper place¬

public debt and for its
refunding and reor¬

of

ment

Woods

the Bretton

standard of some kind, the

rency

various

the

between

connection

function of

the

central

a

purchasing

bank, to keep
of a na¬

;power

tion's

currency
stable both at
home and abroad, in so far as it
is permitted to do this without
interference

action.

verse

notes

a

government paper cur¬

central

rency,

held

Of course, under a
irredeemable
bank

of

or

banks

responsible

devaluation.
riod

of

1797

for

But,

be

cannot

inflation

in
while in others, after
to

closeness,
a struggle

grown

a restoration of the
separation,
the
central
bank has slipped back into the
war
position of a branch of the
Treasury, or fiscal department of
its government."
V

bring about

former

Another

writer,
Wm.

A.

British

England,

with

policies of the Bank
the main
In urging

in

agrees

Dr. Willis' view.

change in

a

economist,

Shaw, who has severely

criticized the
of

financial

eminent

the

the relationship

"Bank

or

Restric¬

England extending from
1822, when the Bank of

to

England notes

were not

the

of

directors

the

redeemed,

bank

were

criticized and held responsible for
the depreciation in the value of
the pound sterling.
They were,

Treasury,
book,
"The

Dr.

Shaw,
in
his
Theory and Principles of Central
Banking,"
published
in
1930,

"that not only have we to
the London money market

profits of
the bank, and, because of this, the
Bank Act of 1844 placed severe

One

of

the

"internal

One

ence.

be

not

of

have

all

Roosevelt

strictions

private

on

bureaucratic

domina¬

millions of

It

England."

"the

true

value

can¬

without

the

conditions

in inter¬

engage

transactions.

nation

trade

should
and

exist

which

the

between

State

ideal central bank is

an

ing to he regarded

matter of

as a

political expediency."

com¬

He further

points out significantly that "there
is

no

greater

modern

awaiting
than the de¬

danger

democracy

ductions which can be
from this assumption."
Much
cent

has

years

cannot

long

for

currency

its

maintain

one

national

welfare.
central

in

the

in

re¬

the

affairs

and

popular

That this influence of
bank

is

supremely potent

economic

life

of

generally admitted.

the days of
the
United

a

a

nation

Just as in
Bank of

the Second

them
its

separate

foreign

units,

trade

or

transac¬

severely controlled and

are

restrictedi

was

not

essentially

central

a

sold

K

plies
the

money

all

other inland
thousand

on

the

in

as

more

recent

times,

trade

disturbances, tight money
conditions, price fluctuations and
the
like,
have
been
charged
against the Bank of England. The
records of Parliament and of the

British

the
oamphlets on banking
that have been published in Eng¬
land during the last two centuries
press,

as

well

as

numerous

are

It

evidence of this.
is

that
world

not

surprising,

governments

have

shown

ajl
a

therefore,
over
the
tendency

from time to time to enforce their




that

of essential

an

trade

President; Truman

with

Mr.

he

Roosevelt's

views, the Associated Press stated

ap¬

Washington,

added

that
been

never

in

he

the

for

May

15,

and

personally

had

the

Johnson

Act

first place.

The

railroads

Railroad

passenger

traffic

ton

New

York

Central

the passenger

the

carried

about

$15,500,000 of equipment trust certificates in

Since

has

or
holds
practically
foreign exchange

reserve,

of

control

transactions,

it

will

devolve

on

this institution to perform the duty
of

stable.
And it should be noted, that fol¬
lowing the last war, as pointed
keeping

W.

by

the

currency

in
a recent address, currency stabili¬
zation was brought about through
cooperation of central banks and
through consultation with private
bankers, who set the groundwork
for
the

such

Randolph

tions

Burgess

stabilization

required

by making
under condi¬

loans

stipulated

by

one-eighth

earnings

gross

of

the

To

the

meet

of

5.5% under that of 1943.

2

moved,

The

revenue

per

be

under the

in

all

terms of the

Inter¬

it will,
be merely

Monetary Fund,

such

activities
as

an

agency

of the

and will have no
independent action.

government

rights

of

cents
of

in

1943.

armed

travel

as

The

ton

in

active

this record passenger

an

end of all

sem¬

central
banking. The whole system, built
up under such favorable auspices
over the last century and which
has

independent

contributed

so

much to

mercial stability, to

com¬

industrial

ex¬

pansion, to international trade and
to capital movements throughout
the world, will either be aban¬
doned

merely

entirely
*

a

or

political

will

absorbed

and

day

of litigation with the State

gross

freight i)jate increases which had been authorized
by the Interstate Commerce Commission in 1942
suspended effective May 15, 1943. On Septem¬
13, 1944, the National Association of Railroad
Utilities
Commissioners and various State

ber

and

January 1,

1945.

Commission suspended the authority to

maintain increases in freight rates and

1945.

period

previous findings with respect to increases in

its

passenger fares was warranted and
thorized increase in passenger fares

of New

Dividends

after all

income,

become

instrument;

deductions, amounted to

and

Liabilities

General

Capital

Balance

at the

are

set forth

Sheet

end

and

of the

fvf.':' v-.ffCapital Obligations

in

year

:

;

Company and its lessor companies outstand¬

of

the public.

This includes

amounts payable to the State of New York on ac¬
of

grade

crossing

the post-war era there is good reason to expect"
satisfactory railroad earnings despite the more

intensive

competition of other agencies of trans¬

portation which is generally anticipated. The war
sharply demonstrated that the service of the
railroads is indispensable and that private owner¬
the

of

During the year a gross reduction of $49,358,524
effected in the amount of capital obligations

hands

a

ship and management are able

show

was

the

,

long period of years the trend of gross
earnings of the railroads of the country has been
closely related to the level of national income.
With national income maintained at a high level in
Over

eliminations;

Partially

offsetting this reduction, the Company issued and

war

and efficient. When
should be mod¬

is over, the railroad plant

ernized to

take

advantage of new things learned;

during the war years and to permit of operation
under new and higher standards.
This can be re¬

,

count

continues in

has

$118,991,157, an increase of $11,878,336 over the
amount at the end of the preceding year.;
f
T.' ■/".„ v.". .v
V;'' -VV: -1■.-.■■v: v*

in

thus the au-,

Future Outlook

Net Working Capital

ing

charges for

to and including December 31,
However, it found that no »modification of

further

a

effect.

Current Assets

of the

petition with the CommiSr

By its decision and order of December 13,

1944, the

$35,789,939.
The Board of Directors, on May 10,s,
1944, declared a dividend of fifty cents per share
upon the capital stock of the Company, payable
July 15, 1944, to stockholders of record May 27,
1944, and on November 8, 1944, a dividend of one
dollar per share,
payable January 15, 1945, to
stockholders of record November 25, 1944.

f

a

by the Price Administrator and Economic Stabil¬
ization Director, who also requested the Commis¬
sion to revoke the authority increasing passenger,

.

Working

be

by
of

increases to go into effect
The motion of the railroads
was opposed by the Secretary of Agriculture and
the War Food Administrator.
It was also opposed

payment of accumulated interest, non-recur¬
unpaid taxes which had been

Net

adopted,

affected
throughout
1944

Commission permit these

Charges

Net Income and
Net

'1 '*

adversely

were

suspension

and

on

rent in character, on

Jersey.

revenues

continued

fares.

Woods

of

Freight
the

seeking the permanent cancellation of these
increases.
The railroads thereupon asked that the

Compared with 1943, rent for leased roads and
equipment decreased $342,403, and interest on
funded debt decreased $817,585, but interest on un¬
funded debt was greater by $2,003,379 due mainly

Condensed

blance

a

approximately 14 cents of every dollar of
operating revenues.

the

are

Freight train -'cars • having an aggregate
carrying capacity of 418,220 tons.
Lightweight, streamlined passenger traiq

Commissioners filed

Railway tax accruals, amounting to $98,372,903,
lower than in 1943 by 19.4%, due mainly to
smaller income and excess profits taxes.
Such

It can be readily concluded,
therefore,
that
if the
Bretton
Agreements

horsepower each.
Large-capacity locomotive tenders.

sion

^

were

subject

locomotives, v
I
locomotives, 6000

cars.

74.39, compared with 67.60
in11943.
t
'■

$268,778

j

for. future

order

Freight Rates and Passenger Fares

Taxes

-

,:r

Diesel-electric passenger

300

and fixed charges) increased over
the
previous
year
by
$54,502,534,
or
11.4%.
Although there was some increase in charges for
depreciation and amortization, the heavier operat¬
ing expenses were due chiefly to higher wage and
material costs and resulted in an operating ratio'

to the

on

4

load.

Fixed

has

Diesel-electric switching

7604

move¬

Railway operating expenses (not including taxes,

equaled

now

33

43

other deductions,

accruals

5400

*

locomotives.

fares by members of the
furlough made up a large part of

on

Company

service,

military

^

delivery the following additional equipment;
27 Combination freight
or
passenger
steam

reduced

at

armed forces

continued heavy

The

forces

switching locomotives.
freight locomotives,

Large-capacity locomotive tenders.
i j
1396 Freight
train cars having an aggregates
carrying capacity of 76,780 tons.

traffic, as measured by the number
of passengers carried one mile, reached a new high
record, 9.2% above the level of 1943. Revenue per
passenger mile averaged 1.948 cents, compared with

;

there will

Diesel-electric

17

Passenger

1.905

steam

passenger

or

horse-power each.

9.02

ment

freight

locomotives.

mills, the lowest since 1919, except
in 1942 (8.65) and in 1943 (8.75).
was

of

requirements of

52 Diesel-electric

freight

revenue

the

Combination

4

measured by the number of tons moved one mile,
mile

reduction

continued heav^
traffic, the following additional equipment
placed in service during the year:

was

operating revenues were 1.3% more than
in 1943.
Passenger revenues increased 11.7% while
freight revenues declined 2.6%.
volume

net

a

wartime

Operating Results

The

been

Equipment

in

Company

Of

them.

has

or

load and about one-fifteenth of

just ended reached a new high, net earnings
were substantially lower than in 1943, due largely
to increased wage and material costs.
Net income
of the Company was $35,789,939, or $5.55 per share.

the

there

22.6%, in the total amount of such
obligations. Interest, computed on an annual basis,
on the obligations outstanding at the end of
1944,
was
$13,608,883 less than on the obligations out¬
standing at the end of 1932, a reduction of 28.7%.

year

if the bank is under the

course,

1932

$250,627,664,

freight load of the rail carriers.

While

equipment,

total capital obligations outstanding were
$858,180,288, compared with $891,967,062 at the end
of 1943, a net reduction of $33,786,774.
i

Despite limitations of manpower and equip¬
ment, the railroads have fully met these tremen¬
dous transportation needs of the nation at war.
of

v

year

1940.

The

YEAR 1944

$71,750 of New York and Harlem Railroad
Company 4% Mortgage Bonds were exchanged for
capital stock of that company.
At the end of the

to ninety-eight billion pas¬
four times the volume of

rose

miles—almost

senger

miles.

THE

and

transportation agencies exceeded

billion

handled about 74% of this huge volume.

central

a

credit,

or

monetary

functioning

laid

was

new

World

on

order

connection with the acquisition of new

During 1944 the war continued to dominate the
transportation situation. The total volume of inter¬
city freight moved by United States railroads and

bank, which either because it sup¬

credit

well

nation has

a

national

stringency

a

»

t.

Now, if

hank), all the complaints regard¬
ing bad business conditions and

doorstep of this national private
institution, just as in earlier as

to

EXTRACTS FROM ANNUAL REPORT—FOR

of

States,
around
the .control and direction of the gov¬
(which bank, by the way, ernment, as presumably it must

1830's

is

and died.

To the Stockholders:

home,

at

currencies unless it fixes a
between
the
two
values,

eign

out

preponderate
central bank policy

on

influence of
on

written

been

drawn

in

THE NEW YORK CENTRAL RAILROAD COMPANY

and

foreign

in

engaged

and another value in terms of for¬

And he added that

relationship

loans

youth have fought

our

defaqlt,

his press conference that

agreed

proach to ^Statism," against which

activities of

in

debts,

achieved,

from

individual!

the

~

of

be

the Johnson Act, which places re¬

a

I

told

Socialistic

a

economic

to

message

mone¬

stability

normal

with freedom to

or

little differ¬

very

area

under

national
A

of the

maintained

other,

of its
means

measured

as

power

tary unit makes'

tions

is

the

of

stability"

stability"

by purchasing

unless

from the domination of the Bank

of

was

"external

merely

ury"

free

provisions

stability
Whether this

currency.

from the domination of the Treas¬

"be

toward

will

a

the late President
advocating repeal of

by

Total

the

maintain

ernment

making

must

maximum

Monetary Fund is
requirement that each Gov¬

free

also

the

upon

International

rate

it

It

from

countries
War

adequate flow

notes.

stated

but

Congress

It may mean the return to

ing and to

excessive amount of bank notes

in order to increase the

be¬

tween the Bank and the

State!

Reading

But

It will

regimentation of busi¬

credit!

and

pe¬

amount of unsecured issues of its

has

mean more

one

in the

even

so-called

in

ad¬

or

governments
has,
if
been confirmed, and in
tries

developments,

almost certain!

seems

ness

Truman Favors Repealing
Johnson Act

have

represented directly
at the conference. Yet, it has been
and
still should be the
prime

restrictions

anything,

will

2289

were

central banks and their respective

some coun¬

this

tion

None of the great central

banks

ganization and partly owing to ef¬
cur¬

all

ments.

indeed, rightly accused of issuing

stable

gov¬

of course, cannot be foretold.

an

a

effect

future economic

this

continuous

forts to re-establish

department of

mercantilism, to restrictive trad¬

tion"

successful.

a

administration.

Woods proposals constitute
treaty
arrangements
between
govern¬

in earlier days.

been

What
on

Bretton

to

ernmental

completely

already stated,

system

not

similar

tendency

regarded them as
a temporary aberration
— a fact
fully established by the effort
made in most industrial countries
to return to something like the
independence which had existed
have

these

'

As

Government

efforts

of

we come to the relation of

this

viously regarded as indispensable.
War financiers and their imme¬

"These

to

as

Effect of Bretton Woods

of

diate successors

charters

so

control their actions.

temporary

community which had been pre¬

and!

central banks

on

•••

however, only by large outlay of capital
The key to the availability of these funds
be found in governmental policy with respect

alized,
funds.
is to
to

transportation.

Under

a

portation policy—a policy of

sound national trans¬

self-supporting trans-;
the jail-;
va i-

portation—the outlook for the future of
roads is good.
v
:
* *
*
For

Comparative

Income

Statistical Issue of Chronicle

Balance Sheet, eto^jseer
dated March 12th, 1945. u
1

Account,

I
.

THE COMMERCIAL & FINANCIAL CHRONICLE

2290

PRIMARY MARKETS IN

Thursday, May

Koyal Bank of

Lipe - Rollway Corporation

HEAD

Preferred Stock

OFFICE—Edinburgh

Branches

Class "A" Stock

Huff, Geyer & Hecht
New

York

Wall

67

NY'

0650

FRanklin

,

Circular

7535

on

/•':.;/

/'//

8 West

HARTFORD,

Enterprise

"•*/'

Co., Inc.

&

OFFICES:
C. 2

Smithfield, E.

C. /

Charing Cross, S.

W. f

Burlington Gardens, W.
64 New Bond

55 LIBERTY STREET, NEW YORK 5, N. Y.

7008

/

Street, IV. /

TOTAL ASSETS

:</''/'/

7008

Enterprise

Herrick,Waddell

; ;'/////:'

Enterprise

PORTLAND,

6011

PROVIDENCE,

49

■;/•

SEATTLE

.-///■; /:/

TELEPHONES TO

Scotland

Bishopsgate, E.

,

BOSTON, CHICAGO,

FRANCISO,

SAN

ANGELES,

LOS

LOUIS,

ST.

NEW YORK,

CONNECTING:

SYSTEM

PHILADELPHIA,

3

f

request

CG-105

1-2875

WIRE

PRIVATE

HUBbard

,,

4

Chicago

throughout

K

LONDON

S. La Salle Street

231

Square

Office

Post

10

Street

WHitehall 3-0782

V

'

V

9

Boston

5

Scotland

Incorporated by Royal
Charter 1727

BANK and INSURANCE STOCKS

Convertible $1

24, 1945

£115,681,681

The Securities Salesman's Corner

Bank and Insurance Stocks
This Week

!

By E. A.
While

fire

most

and

Insurance Stocks,

—

companies

insurance

cover

substantial margins, there are a few whose dividends over
a
period of years have not been fully earned.
A review of the
operations of the past five years$>of a long list of insurance com- to illustrate each class with actual
panies, whose stocks are daily cases. Aggregate net operating
quoted in the market section of earnings and aggregate cash divi¬
leading
five

for

newspapers,
shows that
classifications can be made

with respect to
viz:

dividend coverage,
generous, (2)
good, (3)

(1)

moderate, (4) narrow and (5) not
earned.
It is perhaps of interest

disbursements

the

five

year

the

In

first

period

1940

"generous" dividend

American

Fidelity

Surety

Hartford

Aggregate Earnings
810,364,000

2.77

10.518,000

2.92

47,060,000

3.14

Fire

Insurance

15.000,000
of

Co.

National

N.

A

-

17,700.000

Union

Average

41,940,000-

1,375,000

-

17

of

Aggregate Dividends

-(Fire 1
_

Continental

_

'

Insurance

Fidelity-Phenix
Great

20,400,000
15,900.000

Insurance

Average

In

1.76

L:

Fire

American

1.85

5,556,000

■

:

The

"Globe

and

in

&

group

Name-

Aggregate Dividends
..

Camden

score

1943

2,960,000

1.48

2,500,000

3,820,000

1.52

1.55

2,400.000

3,388.000

1.41

9.000,000

14,024,000

1.55

In

the

fourth

classification

'"i:

•

Name—

Bankers

of

"narrow"

coverage

are

but

Bishopsgate,

and

Burma,

Ceylon,

>

Aden and

Zanzibar

Capital
Capital

Paid-Up
Reserve
The

Kenya

£4,000,000
£2,000,000
£2,200,000

Fund__

Bank

conducts
every
description
banking and exchange business

ol

Trusteeships and Executorships
also

undertaken

continues:

"In 1939 there were *23 regis¬
Canadian; in 1940, 12, with 2 in Canada;
7, with 2 Canadian; in 1942, 6, with 3 Canadian,

were

was

3, with

in

none

Canada.

This

the

is

of

measure

Triindie Chosen Pres. of
N. Y.

Wesleyan Alumni

Henry C. Trundle, secretary of
the New York Wesleyan Alumni

from 13 States."

mem

continues:

"It

1942 when gold mining

is

true

that

banned

was

the

record

in the

United

the

covers

-

.

&

Shippers.,

Hampshire

Aggregate Earnings

$890,000

8977,000

River

Average

1.20
1.16

4,000,000

4,631.000

1.16

3,200,000

3,416,000

1.06

...

_

Fire

_

1.10

3.144,000

investment

years.

income, however.

:

.

Franklin

Fire

Merchants
York

Preferred

&

$3,546,000
290,000

500,000

320,000

0.64

800,000

693.000

0.87

1,000,000

389,000

0.39

Fire__
Accident

.merely to call to the attention of the investor how, necessary is
moderate

amount

of

factual

research

before

purchasing.

As

a

has

column, long term market appreciation

.tends to follow equity growth, and equity growth derives from the

any

and

Lawrence Portland

Bank & Trust Co.

Medusa

Bulletin

On

recognition

Portland Cement

Laird, Bissell & Meeds
New

York

Stock

Exchange

120 BROADWAY, NEW YORK

Telephone:

its

of

184

regulations

made

the

to

and

its

results

Congress.

in

its

This report

recent
runs

to

with 88

pages of tables and charts, and a 20-page fore¬
pages," continues the article, "it is asserted that
new
concepts of fair dealing, of adequate disclosures and of the
duties of management have been inculcated into financial channels"—
also, "that during the first decade of its existence 2,000 formal orders
were
issued, and only 100 petitions for review have been filed.

pages,

Reasons

the paucity of the latter are not given but are
quite
for the guidance of. those who know something of the
brow-beating tactics-o£ bureaucracy." / Continuing: ^'So far as the
released press 'puffs' of this apologetic work are
concerned, there
for

unnecessary

is

mention

no

whatever

COMMISSION
OF

HAS

VENTURE

THERE

ONE

a

dollars

and

DONE

THAT

THE" TREMENDOUS
BY

MADE

WORD

ABOUT

SUPPRESSION

THE

DECLINE

DAMAGE

OF

COUNTRY

THE

>

THE

THE

SPIRIT

GREAT•NOR

TO

THE

IS

VANISH¬

MINING APPLICANTS FOR REGISTRATION.
tiresome review of the Commission's

It

"patriotic" efforts
of the public, which,, if swallowed whole, might con¬

numbskull

a

of

OF

protection

makes

grief.-

that

it

Not

one

nations great."

has

saved

word

/

,

the

in
-

nation

untold

protection

of

millions

the

in

spirit that

Adl.Ki3Jet(&Cl.

6, N. Y.

Members
and

BArclay 7-3500

Bell Teletype—NY

1-1248-49

(L. A. Gibbs, Manager Trading




Department)

1

New

York

Stock

Exchange
other leading
exchanges

WALL ST.
Telephone

NEW YORK 5
DIghy 4-2525

elected president at the club's an¬
nual

republic of Canada

the

picture

in these

United

dinner

meeting held Thurs¬
17, at the Yale Club.
is vice-president of
G. A. Saxton & Co., Inc., 70 Pine
Street, New York City, dealers

day,

May

Mr.

in

Trundle

investment

securities.

Textron Co. Debentures
Placed
A

on

States•v Maybe

we

have

MORE

NUMBSKULLS HERE!

Market

nation-wide group

|

of 22 un¬

derwriting houses headed by Blair
& Co., Inc., and Maxwell, Mar¬
shall & Co., on May 22 offered
$5,000,000, Textron,
4V2%
100

convertible

and

Textron

is

15-year

Inc.,

debentures,

interest.

accrued
one

of

at

;/ ^:/P;
first in¬

the

tegrated companies in the synthe¬
tic

textile

field,

every operation

.

This is the way a financial writer in the business and financial
center of our progressive and
growing neighbor
sees

Henry C. Trundle

Club for the past two years, was

"Within its

and

performs

except dyeing

and

finishing of cloth from the proces¬
sing

of

synthetic

yarns

the

to

manufacture and sale to the

retail

trade of finished textile consumer

Request
Bought—Sold—Quoted

Members

FOR

super-

Reference is then made to the SEC's recent effort to counteract

vince

Cement

the

radically clipped if the country is to regain
part of its former preeminent position as a metals producer,
maintain place as industrial leader
among the nations of the

is at best

Continental

of

world."

in

,

condemnation

its powers

or

ING POINT

plough-back of earnings.

The

SIMILAR ARRANGEMENT

tide* of

men is rising, and since the death
Roosevelt, creator of the organization that has proved

President

word.

0.58

The above twenty-five-stocks have been
picked more or less at
random, and the number could be well extended in each of the five
categories.
The purpose of this very incomplete presentation is

been remarked before in this

OF A

"The

defense of its position

0.89
v

(QUOTE):

bureaucracy among the financial

public

500,000
Manufacturers.

WANT ANY PART

abolished

Times Earned

$3,960,000

Home

on

the most destructive agency of the now largely abandoned
Deal, has definitely alarmed the swivel-chair artists in Phila¬
delphia.
Far-seeing people realize that this organization must be

,

Aggregate Earnings

handwriting

DON'T

Dividends have been within net

Aggregate Dividends

the

itself

No. of

Name—

the line.

New

In the last group, five companies are shown which have
not
covered their total dividend disbursements over the five
year period.
In all instances, poor
underwriting experience has been the cause,

particularly in the past two

Canada Nay jt on

Possibly they
the wall for them—they are our closest and
best-informed neighbors—and if this is the effect
upon a nation's
productive enterprise that our SEC has brought about, THIS WRITER

of
.

1.14

.

friends • in

our

CANADA.

Times Earned

27,281.000
2,700,000

____

follows:
No. of

Aggregate Dividends

Westchester

New

article

Then

included

as

'

Home

Georgia

India,

Colony

gold

were

In

Subscribed

to show that out

on

26,

London, E. C.
Branches

19

only

51, there were

Office:

■

States, but
that does not affect the figures for thely four
previous years. They
tell a tale of destruction and account for the real cause of the
present
position of the country among possibly near-by 'have nots' insofar
as
certain metals are concerned.''
V
;
see

1.50

_

..

companies with ratios that average between 1.00 and 1.50,

"North

to the
Government in
Kenya Colony and Uganda

-

r

Average

New

Of the

that all 17 Canadian issues

assume

prominent mining

The

; >

Times Earned

Aggregate Earnings
$3,078,000

Hanover

other

year

2,000,000

Association

Phoenix

1.88

$1,980,000
_

'

Financing of mines has been killed.
There is no guesswork about
the figures.
They were dug from the records by a special commit¬
tee of the American Mining Congress, of which Samuel H. Dolbear,
M.E., well known in Toronto, was the Chairman, and which included

No. of

.

'

';

the "benefit" the SEC has brought to the industry and to the people
of the United States with regard to one of its most
important assets.

"moderate," the following

'V V'/

,.

Agricultural

as

,

Bankers

Head

^

\

Canada.

in

Mail"

which 8

in 1941 the

1.82

__

of INDIA, LIMITED

Lead."

1.89

18,419,000

three, which is classified
five companies are cited:
'

Fire

Y.

29,987,000

■

NATIONAL BANK

to

done

mining registrations in the fiveperiod, for the United States, "once the home of free enterprise
—the land of Colorna, Mother Lode," Goldfield, Cripple Creek, and

1.72

35,100.000
1

9,780.000

Co.

year

Times Earned

Aggregate Earnings
:■$12,487,000

Canada—has

of

quoted showing that in the five years 1939-43,
havi been only 51 mining registrations, of which

19 it is safe i.o

trations, of

3,150,000

door

mines, which leaves but two gold

2.75

$6,750,000
_

in the

are

originated

No. of
Name—

foot

a

mining industry.",' ---.';

figures

these

of this

companies noted below belong to the second classification of "good" coverage:

Aetna

Norman/concerning the effect of the
the mining industry of the United States,

dealing with gold mining, and the article goes

The five

Boston

has

now

inclusive, there

*

2.53

-,•///'••

:

Then

-2,37

3,482,000

Sidney
upon

begins: "Here is the record setting forth
figures what the SEC, the super-bureaucracy of the United

and for the

of

3.600,000

by

headlined "SEC POLICIES PROVED RUINOUS BY

was

States—which

Times Earned

83,750,000

Bank, Ltd.

&

Say

to

THE RECORD." The article

in plain

coverage are

Aggregate Dividends
,

Deposit—-—.

&

article

The article

of

following five companies:
NO.

Name—

feature

a

to

classification

Few Words

Monday, May 14, 1945, the Toronto "Globe & Mail" carried

policies of the SEC

inclusive.

1944

the

On

shown

are

a

Concerning the SEC

divi¬

dends by

dends

Williams Deacon's

Glyn Mills

Our Friends in Canada Have

VAN DEUSEN

casualty

Associated Banks:

By JOHN DUTTON

goods.

Francis duPont to Admit
Francis I. duPont &

Co., 1 Wall

DeLancey Rochester Co.
BUFFALO. N.

Y.

—

DeLancey

Consolidated

$26,578,010

Street, New York City, members

Rochester

of the New York Stock

Exchange,

DeLancey Rochester Co. from of¬

fore

will

Austin

to

fices

taxes

as

ing.

He

of D.

Rochester

admit

Albert

M.

limited oartnership in the firm

Of May 31st.

.

in

is

the

doing

business

as

Liberty Bank Build¬

was

formerly

manager

Company.

gross

sales

1944

and

in

were

profit

available for interest charges

with

income
was

and

excess

$2,347,756,

$23,871,561

compared
$1,697,681,

and

respectively in 1943.

be¬

profits

-

Volume''161 •• Number 4388

THE COMMERCIAL-&

Credit Problems of Small Business
(Continued from

Chairman Patman invited

When

appear before your com¬
mittee he had in mind, I gathered,
to

me

New York Stock Ex¬
change might help in the solution
of some of the financial problems
of, small business.
If the Stock
Exchange can be of assistance, it
stands ready to do so. While the
Stock Exchange list is made up
of the securities of what may be
called the large corporations of
the

tj19t

country, we are very well
aware of the fact that all busi¬
ness has to be small before it be¬
comes big.
The Stock Exchange,
as. you
know, - provides an auc¬
tion market where the securities
of established companies are dealt
in after their original
distribu¬
tion to the public.
A company, in
order to list its securities on our
Exchange, must be a going con¬
cern or be a successor to a going
concern; and must have substan¬
the

tial assets

demonstrated

or

ing power, or
and earnings

both.
are

earn¬

While assets
consideration,

a

2281)

page

of

local

industries,

local

doubt,

concerned

1934.
to

I

what

change, must

have

distribution

wide

sufficiently

a

afford

to

as

reasonable assurance that

ade¬

an

quate auction market for the
curities will exist.

se¬

to

You will understand, of course,
securities

list only the

we

of

large or moderate
sized companies does not denote
discrimination against smaller
companies.
We are
constantly

any

looking for suitable
The

Stock

doing

Exchange

disservice

a

listings.

new

be

" would

to

a

company

by listing its securities before that
is ready for

comnany

market.

Let

me

market

our

say

here that
New

the

on

national

;

•

that if

I

on

York

Stock

Exchange facilitates the flow of
capital, and thus benefits all types
of legitimate enterprise.
Regional Exchange Listings

Exchange ad¬

mitted to its list the securities of
23

additional

always

companies.

seemed

rough

to

us

approximation,

about

200

companies

It

that,

has

by

a

there are
eligible for

companies

as

listed

are

other companies grow in size and
in national
the

new

Stock
on

importance.
Many of
listings on the New York

Exchange

one

Stock

or

that

previously

the

of

Exchanges.

York Stock
fer

were

more

regional

We of the New

Exchange wfluld pre¬

securities

have

enjoyed

a

bet¬

a

could

be

more

readily

want to pay it back, and
it back if given an

Since the Congress has recently
the
exemption'7 under

the

Securities

Act

of

1933

from

$100,000 to $300,000, it would
that

pear

made

ap¬

study should also be

a

to

as

under

for

granting

the

do

One of the great difficul¬

so.

small

the

on

lection.

Practically

money so

loaned

one

on

the

of

Regional
Exchanges would have
effect of
the

more

making a company
widely known until, by rea-r

son of

mg

its increased size and

computed

the

earn-

broader

(dis¬

tribution, of its securities/ it has a
national interest, at which time it
Would be in accordance with the
normal trend to list on the
.na¬

tional market.

-

<-y^^

In recent
years

Regional
much

less

on

have

numerous

should have been.
the

listings

Exchanges

than

The

the

been

they

doors

to

regional Exchanges should be

opened

wider

in

order that they
may fulfill their function in
pro¬

viding markets for the securities




on

this

all

was

the

of

in

repaid, but

terms

So, if I

is

program
ness,

for helping small

bank

the local

bank

unwilling to make the loan.

Reconstruction

the

I

period

a

four

of

1933

Act.

As

you

I

have

stated

that' there
in

possibilities

great

are

closer

approve

cooperation

Government

between

business.

and

past.

to 75%

as

>

W. W. Finney
W.

up

of any loan that a bank is

is

W.

Finney

in

engaging
in

Peru,

willing to make, but the borrower

ness r

should, first exhaust the possibili¬

burgh, N. Y.

& Sons
Sons,

and

N.

and

Y.

un¬

com¬

Corporation

needs

of

with

the

business,

;

the

smaller

capital

units

of

experience in the
Reconstruction Finance Corpora¬

tion,
for

a

my

in

to

small

business,

was

'

could

not always solve
business man's Nproblem

you

small

.

Future of Insurance

considering. applications

loans

that

by simply advancing him

".

the

of

management
Since

it

is

his

busi¬

impossible

it

must find

we

the

of

use

found

in

is

my

a

way

capital
I

that

is

v*

Companies
4

*

'

I

;

attacked from three vital

angles

,

(/) Demand For Lower Rates

be

to

throughout
would

am sure we

seeking

public insistence on rate cuts will/probably

The

investment
'V '

grow; ;

stronger—with the agents the greatest sufferers.

:

;

the

' 4

*

that

opinion

opportunities.
to

:

being

all / be
surprised to know how
much capital there is in our local

communities

r

to encourage

communities

the country.

:

-

The insurance industry is

for

the smaller units to go to the large
financial centers, where they are

unknown,

'

money.

He is often in great need of advice
in

'

4- :"4V.,

..

4:-..4 /■.

/

■

■■■' 44

44 44;,;<44'. 4>4V44-4 444y 4!44:':'44.4- :^r;■::J
•

depression

pre-war

and the extensive amount of Gov¬
ernment

(2) Lower Income

financing that has taken

place for the past 15 years, there
has been a great reduction in the
number

of

investment

formerly

service

to

ties In

the

dustries.

their

local

real

a

communi¬

I look with much favor

Industrial

the Louisville

as

Foundation;

(3)1 Increased Fire and Casualty Losses

there

and

other similar organizations in
other
communities
that
have
are

4

I

and

in

mind,

for

corporation

was

an

in¬

set

up

helpful in financing
and
bringing industries to that
city.
I used to refer to it as the

Reconstruction
tion

of

of that

Finance

Terre

familiar

Haute.

with

the

well-trained manpower.
stocks

doing

an

status

with

it

it,

excellent job.

a

was

still

They

cre¬

the Government, would go a

j If
a

long

toward meeting the needs of

small
a

business.

-

y

.

Upon these the value of insurance

largely depends.

■

.•...;v.

■

.

•_

-

...'

/ -

Reduce Fire and

4

i -'

•*-.• y

■"

•'

',/".■■ •/1

..

•-.

•" ;'• •'••

•

•

/•

•

-

,

•

''

•

.

■

.; /.

■;

•

Casualty Losses by Recommending—

fire hazard*
keeping the property free of rubbish.
ADEQUATE POLICE PATROL — with recorded performance of police duty.
SPRINKLER SYSTEMS AND AUTOMATIC FIRE DETECTION SYSTEMS
TRAFFIC SIGNALS — at street intersections.
A FIRE ALARM BOX

—

at every

BETTER "HOUSEKEEPING"

(3)
(4)
(5)

—

~

man is well known and ha&
★

good reputation in his own com¬

munity, he should be able to-raise
the capital

automatic alarms and

YOU CAN HELP
; ■.•

plan of that sort, wprk-

ing in cooperation with the local,
agencies of

way

municipal fire, police and traffic

•

fund locally which was re¬

a

in¬

not

am

present

organization, but three or
last I came

contact

are

Corpora¬

J

four years ago, when
in

reduced—Loss-ratios

be largely

signals supplemented, by sprinklers,

most

was

can

versely proportioned to

example,

Haute, Ind., in which
-

losses

These

successfully.

very

have

dustrial

future

immediate relief is in sight.

interest rates from which no

..

financing of local in¬

plans such

upon

dealers

-

performed

Portfolios

on

degree of injury sustained will depend upon

The

that he needs in that

r

^

70% of the losses occur as a

fire

alarm

of your

boxes

had

been

on

result of only 4% of the total fires. If municipal
of the buildings involved then over 50%

this 4%

total fire losses .might have been

eliminated.

I

have.-always
found that when capital goes into
community,

a

business

and

a

management
reason

I

have

certain
goes

amount

with

never

it.

of

One

approved of

the Government furnishing

equity

capital for any business is that it
is not in a position to supply man¬
agement along with the capital.
I would

like to say this,

how¬

that in my experience with
Government in lending money in
ever,

The Gamewell

Company
Massachusetts

Newfcon^jJpper Falls

Inc.

securities busi¬

a

Aid of Reconstruction Finance
connection

We

that in the

have had too little of

then might be permitted
enjoy a listed market under the
requirements
of
the
Exchange

In

many

many,

of Gov¬
ernment in business, but I do feel
times, I do not

Exchange

Smaller

five

or

will perhaps find the
key to the solution of the problem.

Finance

Corporation in offering to take

a

busi¬

I would set it down about

follows:

by

augmented with

properly

heartily indorse the present plan
of

going to suggest

were

itself where

over

corporations,

in

ment

the

of

lending

if

years,

cooperation / with the
Government, or by the Govern¬

good the loans did.

-

powerand

has

ground

supplemented

loans

was terrifically
high.
It
perhaps well worth the cost

banks and the lending

period

the

Encourage the organization

local

selves,

the cost
was

process

seasoning

think

pretty well covered

(2)

the advice of local committees

(2)

a

of

cost

and with very little effort in col¬

(1)

gradual; and

I

preferably with money raised in
communities by the citizens them7

.

is usually

taken.

Government assistance, perhaps in
the way of relief from taxation

to

of

I think

healthy

comparable

Disaster Loan Corporation, which
loaned money in small amounts,

invested in small local businesses.

and

and

reward

making such loans.
We found
that was especially true with the

standpoint of the
generaleconomy.
The growth

normal

the

earnings
of a
the risk

and would have the prospect

panies

ated

a

is

amounts

applying to the Government.

You have before you the Louis¬
ville Plan, which I think is good,

exemption

an

Securities

increasing the exemption

der

would

be

pay

ties of local lending agencies be¬
fore

a

chance

Act of 1934 to smaller companies
on
the same ground and reasons

prior listing on one or more of
the
regional
Exchanges
before
being admitted to our list. This
process from the

will

of getting it back out of

opportunity to

when

increased

Terre

since

however,

obtained.

remain

constant,

feel,

regional Exchanges

our

purposes

worked

fairly

say

market, with the
result that capital for
expansion

listing and which should be listed.
This figure may be considered to
additional

do

their securities would have
ter and broader

who

In 1944 the Stock

to

of

local companies were

more

listed

Due

healthy

a

effort

registration is a
listing of local

the

companies.

ness.

that the fact that

the

prepared

extent

;

position.
Securities, in order to
qualify for listing on our Ex¬

with

no

Exchange Apt

not

am

deterrent

its. products or services,

engaged in an expanding industry
with prospects of maintaining its

are,

Government

their

to

money
some

phase of the problem.

themselves.

industry, and whether or not it is

from

lending

business would have

been

standing in its particular field,
the character of the market for
and

the American people who borrow

Relief in taxation in order
anyone

in

Securities

national interest in the companv,

stability

of

.

(1)
that

practically all of

ties, of course, in lending money

its

tive

Many

;

that

the

to

its rela¬
position in its

conclusion

2291

and expense of
registration under

put greater emphasis upon
such questions as the degree of
we

s

industries

CHRONICLE

small amounts I have come to the

money

Ihese

FINANCIAL

Pitts¬

Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2292

sion, the

Dangers of Dominated
opportunity, "while seriously in¬
terfered with, have not been ex¬
tinguished.
In the majority of

Primary Market Serving

A

action in economic activities. But

only escaped passing beyond

we

Corporations

Banks

•

still maintain freedom of

cases we

Point-No-Return

a

few years ago

when the Supreme Court declared

Institutional and other Investors

unconstitutional.

NRA

the

result

As

a

still have the option of

we

away from the economic
will-of-the-wisps . that we have
been
pursuing.
We
are
still

turning

masters of

fate.

our

STREET, NEW YORK

16 WALL

Governments"

"Our Reporter on

CHIPPENDALE, JR.

By JOHN T.

improved
The low point of the decline

position of the Government bond market

The technical

past week. . . .
reached about the middle of last week with the drying up of
in

substantially
was

the

selling, for "normal portfolio adjustment," by the savings
Commercial banks and dealers were also instrumental

banks.

.

.

.

halting

in

into the market to add to their port¬
folios and inventories at levels that were considered attractive. . . .
The issues that showed the largest recoveries were the ones that had
recession

the

they

as

came

most from their recent
end long-term taxables. . . .

off

gone

1951/53 and 1951/55 together with the June and

The 2s due

1952/54 registered sharp gains from their lows

December 2s of

striking distance of their old highs.

of last week to move within
.

.

highs, namely, the intermediate

advancing

The demand for the 23/2s due 1967/72 resulted in

.

this issue to its previous top.

the price of

..

The restricted issues

bonds.

...

„

.

The

responsible

-

partially

steering

are

litical

-

exempt

for

the

's

steady

to

~

these

in

betterment

*

.

were

•

.«

"

-

•;

interest

better with
a-

'

being evidenced in the longer maturities.;

versed,
In

.

be

subjected to selling pressure from ; time to time as
made in portfolios to meet the needs of the current
It is indicated that there will be some selling by

.

.

individuals of the outstanding issues as the first of June approaches,
the date that interest accrues on the new securities they will be

buying.
let out
drive.
?

.

.

Also it was pointed out that corporations will probably

.

of their holdings between June

some

Insurance

...

companies

may

18 and the end of the

likewise make

portfolio adjustments" near the closing of the drive.
Based

ters

that

on

the

trading affair

these

ideas, the opinion

.

is held in certain
will

bond market

as

along in the drive, with good

move

"normal

some

Government
we

be

quar¬

active

more

a

oppor¬

tunities appearing at intervals for portfolio adjustments.

.

.

.

Accordingly, banks and other institutions are being advised to
closely and to take advantage of price movements
the necessary changes in their holdings.
It was also
recommended that the longer maturities of the 2s, along with'the
2V2S due 1967/72, be taken on during periods of price weakness;
.
watch the market
to

make

.

.

.

.

CAUSE AND

principal

reasons

for the demand that is being evi¬

denced in the 2V4S due 1956/59 is that this bond will be

purchase by the commercial banks
Although
what,
in

the

is

market

on

Sept. 15, 1946.

beginning

to

eligible for

discount

this

in the economic and poli¬
spheres,
Point-No-Return,
unfortunately, cannot be precise¬
ly determined as it is in charting
an airplane's course. No man can
say with finality how far a nation
may go along the road of collec¬
make

tical

these institutions

buy this security.

can

.

.

.

.

coming from individuals and corporations, the largest owners of the
issue, it is believed that this selling will be well taken and will not
have any marked effect on the price of this
obligation.
...
/
...

students

of the

money

market hold

the

to

belief that

financing, formerly used by the Treas¬
ury, |or commercial banks, will be replaced by a 5% year range of
maturities in future financing with these institutions.
This means
.

.

and larger amounts of short-term low rate issues with

term

high coupon bonds being offered to these banks.

cap

the

...

At

increase .in earnings that the

program

...




until

the

transgressors have been forced to
suffer the tortures of tHb damned,
for writ in the

skies, just beyond
Point-No-Return, are Dante's im¬
mortal wo^ds: "Abandon hope, all
ye who enter here."

broad

we

know that it takes

for the culmination of

economic / and

political

movements. Hitler did not

origin¬

ate the

philosophy which has de¬
stroyed
Germany.
He
merely
seized
a
ready-made
system
forged during several generations
by the Germans out of a philos¬
ophy preached in that country by
Karl Marx almost a century ago.
Not so many years ago, as Friedrich Hayek points out, the So¬
cialist
policy of Germany was
hailed
by progressives in this
country as a model for democracy,
just as Sweden today is eulogized
model worthy of imitation.
today much of the German
philosophy of the pre-Nazi years
as

a

And

has

become

imbedded

in Ameri¬

and

English thinking. Amaz¬
ingly, not even the tragic end of
the German system has been able
can

long-run : over¬
whelming the present generation
of Germans, just as history saw
the

witnessing

"Apres moi, le deluge."

said:

which

So
that

from

suffer

shall

sons

our

Aristocracy who

of that

sons

destroy

Revolution

French

the

demonstrates can
lead only to the destruction of all
history

individual freedom.

germs

have

fermenting

been

Governments

world.

the

entire

have

exert¬

in varying degrees,
to fetter the free functioning of
pressures,

markets and to restrict the activ¬
and

opportunities

of
Italy

Germany and

Russia,

men.

suc¬ I
cumbed to absolute Statism or to¬ 1

in

talitarianism

individual

which

freedom for all

practical purposes
was extinguished. In other Euro¬
pean countries,
in the Far East
and in. Latin America, the trend
has been toward monetary mani¬

Tests in

Our

for

the

of

purpose

the

en¬

riching the mother country.
established

was

portunity

as

for

This

land of
op¬

a

all

the

achieve

persons

rewards

of

ism,

in

which

was

another

der

which

ties

were

man's

one

man's

all

profit

loss, and

individual

by such

situation.

a

State, there

was estab¬

aging men to exercise their initi¬
ative.
Here, as a result, for the
first and

only time in history, an
overwhelming majority of a great
mass of people could enjoy decent
standards of living.
In the comparatively short span
of our national existence we have
achieved the most powerful econ¬
omy on earth.
Though at the be¬
ginning of this war our people
numbered

but

mercantile

the

to

age

calls "The Road

to Serfdom" and

Tucker

labeled

has

biles.

50%

Pro¬

our

Committee had in mind
when they asked us to discuss the
place of "American Business in a
gram

Planned

World."

By the phrase
they undoubt¬

the

of

the automo¬

and

standard

brace

economic

collectivism

with

chosen such
How the

assertions

course.

when

become

member

nation

a

that / at

the

it

was

world of autocracy it grew and
flourished to become the hope for
the

aspirations of mankind every¬
If we
could ]■ exist and

where.
make

progress

upon

of

our

during the first
national life when

strength
primarily
rested
an ideal, surely today with
economic and mili¬

our enormous

power

need not fear the

we

Competitive

nation.

any

Will

Enterprise

'

that

men

have

in

the

past

trolled economic activities.
In

such

it

Again,

has

the fashion to stress that

come
are

discussions

living in

science

has
in

world

in

one

made

the

the

world.
this

worlds,

ferent.

One is

one

we

each
a

are

living in

basically

dif¬

world of compul¬

told, that those

are

ted

to

economic

fight is

collectivism, our

hopeless one.
But was
the same thing said back in

the

a

Thirties

when

voices

were

raised in protest against
Was it nof argued then

Fascism?
that the
political democracies of the world
would have to compromise with

the

forces

lini?

of

Was

it

Hitler
not

and

said

Musso¬

♦

...

PORTFOLIO CHANGES
been

same

those who urged resistance

to the
German,
Italian
and
Japanese
Philosophies were unrealistic and
wishful thinkers, living in a by¬
gone age? But in the end we
the
challenge squarely

commercial

banks
.

.

.

the following

of the large portfolio managers have

exchange:

.

2V2S due 9/15/67/72 at 103.26 to yield 2.27%

pointed out in this switch that income is increased, while
the premium is reduced by three points.
Also the shorter 2%s!
does not have the same appreciation
possibilities as the longer term
.

.

.

.

.

*

.

as

sponding

it
10

their

mortal

passing, it should be noted
crushing defeat of Ger¬
many, and that which will soon
come
to Japan, would not have
been possible but for the
industrial and agricultural

no

change in the

approaches

money

markets, the longer 2*4%

maturity, will advance in price

corre¬

t±iat presently prevailing for the Wis of 1956/1958.

great
pro¬

operating
under a comparatively free enter¬
prise system. The same forces that
ductivity.

gave

bond,

have met

doom.

In

2^s due 3/15/56/58 at 106.27 to yield 1.80%
Buy

Assuming

and
Fas¬

that the

It was

issue.

met

straightforwardly and within the
cist world

some

Sell

.

time, it

reported that

maxing

that

then

.

...

was

of

enterprise sys¬
tem are bucking the inevitable—
that with all the world commit¬
competitive

not
sense

politically

we

who plead for the maintenance
our

we

Truly,

globe

geographical

spiritually

two

be¬

geographical sense,

Economically,

Prevail

con¬

2*4% and 23/4%

It

re¬

this

economically unimpor¬
tant, and yet as an island of free
enterprise .and democracy in a

opposing jdealogies of

free

we

time

established

was

their

desires of

in

utterly ridiculous such

tary

decisions and

of living

hamony and pros¬
nations that have

the world undertake to substitute

for

we

order to live in

our

decrees

of

Yet

for the American people must be
abandoned and that we must em¬

edly

and

53%

the world.

that the economy which

100 years

judgments

earth,

consumed 50%

rubber

in

produced this

"A Planned World"

mean
"a
bureaucratically
managed world"; that is to say, a
system where the governments of

the

silk, 59% of the petroleum,

of

weak and

of individual freedom,

70%

Our people

nomic activities of people, a less¬

suspect this is what

on

45% of the radio sets, 50% of the

perity

ening of competition and constant

of the world's

35% of the railroads

"Enlightened
Despotism."
This
retrogressive movement, in vary¬
ing degrees in individual coun¬
tries, has had common character¬
istics—namely, the expansion of
bureaucratic power over the eco¬

restriction

7%

population, this country possessed

told

backward

It is the opinion of many of these
institutions that they should
allowed to purchase limited amounts of the

be

un¬

activi¬

controlled for the ben¬

are

All of these activities have been

retrogressive,

development. A
Because the indicated policy
of future Government financing does not seem
to give adequate
consideration to the peculiar position of the smaller
commercial
banks, the point is raised as to what may be done to rectify this
effected

to

their

initiative, ingenuity, skill and in¬
dustry.
In places of mercantil¬

coffee

and

engaged in
making decisions which may in¬

Colonies

the

the

the

restraints of
the thirteen American

trade upon

of the

Decisions
is

which

monopolistic

pose

high tariffs, import quotas, bar¬
tering and governments trading

I

under

Kings of England sought to im¬

with other governments.

only.

now

system

telephones,

Nation's Economic

Nation

the

strangling hand of mercantilism—
that

pulation, cartels, both private and
governmental, subsidies, unduly

v

from

more

virtually

throughout

ities

itself
u

Our American Revolution
actu
ally was fought to throw off

efit- of the

and

years

Socialism

ed

freed

the lished a system which created and
of economic collectivism or multiplied wealth through encour¬
25

For

but

to shake it loose.

...

will have no material effect on the big banks
with their large deposits and substantial holdings of short term
Issues.
On the other hand the smaller banks, many of whom are
more largely savings banks than commercial banks will be adversely
a

But this month we are

what' Rufus

this

once

civilization

long-

no

obtain from their large holdings of Government bonds.

Such

for the short-run and
long-run we shall all

only

marked

policy will not only maintain the liquidity of the banks

but it will tend to cut debt charges.
limit

do

we

of the eighteenth
century, back along what Hayek

.

more

will

we

that

sneers

that in the
be dead.

that

mercantile

month the two leaders of the

the ten year maturity range of

This

But

he

when

clever

live

done

point
is
reached, there is no turning back
toward the
progress
which has

that

bonds.

%Vi .YEAR RANGE POSSIBLE
Certain

being

freP

.

insurance companies, both of whom are

substantial holders of this bond, are not expected to exchange many
of them for the new issue.
While some liquidation may be forth¬
.

from a short-run
viewpoint. Lord Keynes thinks it

is

Socialism without pass¬

or

some¬

are

The savings banks and

'

...

of the opinion that this issue will sell at levels
of those currently prevailing as the time approaches

many

excess

when

.

EFFECT

One of the

po¬

which, unless re¬
carry them beyond

journeys which nations

many years

It is believed that for the balance of the Seventh War Loan the

changes are
financing.

economic and

an

will

the

PRESSURE

market will

nations

Point-No-Return.

Likewise
SELLING

Other

course,

know

improved with gains of more than a quarter

mainly

back.

turn

ing Point-No-Return.

point being made from last week's lows. . . . It was reported
that the new money as well as the reinvestment of funds realized
from the sale of other securities by savings banks and insurance
was

to

ure

tivism

a

companies,

ples of the world in the last few
years have found themselves with
such options. Their voyages along
the road of economic experimen¬
tation took them beyond PointNo-Return, long before they real¬
ized what had happened. Too late
they
found
themselves in the
tightening coils of bureaucracy
which stamped out the last vestige
of freedom
remaining to them.
Germany, Italy and Japan now
are experiencing the final agonies
of the consequences of their fail¬

.

RESTRICTEDS ALSO GAIN

of

peo¬

Yet

come.

thinking of the day

tne

01

action for

of

course

our

of

world

mercantilism..

generations to

many
most

the

Unhappily, not all of the

Bankers Trust Company

fluence

old

system. The other is the competi
tive enterprise world of
America
which, with the Declaration of

Independence,

(Continued from first page)

Government Securities

world

a

the

has turned back to the

International Trade

States

United

other

One-is

men.

the

of.

America

America in
of liV3nj>
high as that which

people

peacetime
three times

a
as

of

standard

prevailed in Nazi Germany gave

I

Number 4388

Volume 161

enemies of Fascism the
of war for its destruc-

the

to

THE COMMERCIAL & FINANCIAL
CHRONICLE

weapons

is

sources

among the

served to the States

Amendment.

^evertheless,

much of our Gov¬

ernment's approach to the world's

re-I

powers

in the Tenth

But once a
treaty such as the
Anglo-American Oil Agreement
were

concluded,

Federal Gov¬
ernment would attain the author¬

of competitive enterprise
to continue to
serve the needs
of our people. They contend that
thet ime has come when the Gov¬
ernment must guide and direct
our activities;
that our country
can achieve
high levels of em¬

country.
The
Anglo-American
Petro¬
leum Agreement as it was sub¬

efficacy

ployment and purchasing power
only if the Government adopts
huge spending programs; that in
obtain prosperity the
Government must tell the people
what they
can
produce, where
to

order

produce it, and in gen¬
eral, at what price they can sell it.
they can
These

contend

men

that

the

competition is a synonym

world

for chaos;

that the free enterprise

the age of
geographical expansion, but now
system was all right in
that

economy

our

threatened

are

we

has matured
with wide¬

ity

through

our

the

treaty-making
virtually an ab-

powers to assume

solue

authority

the produc¬

over

tion and distribution of
petroleum
and its products in this

mitted to the Senate last fall
stituted nothing short of a

con¬

super¬

state

cartel.

Such cartelization
constitute national social¬

would

ization of the petroleum
industry

here and abroad.

Fortunately the

unanimous protest of the Ameri¬

petroleum industry succeeded
in blocking the effectuation of the
can

scheme, at least for the time
being.
Throughout
the
controversy
the

over

Oil

difficult
that

to

those

Agreement,

avoid
who

the

it

was

conclusion

had

proposed it
taking a short
cut designed to change our Amer¬
ican
system over-night to the
desirous

were

status

of

the

National

of

German

Socialism,

system of
if you re¬

spread unemployment unless the
Government assumes the role of gard that as a fanciful thought,
economic regulator by stabilizing | just remember that the advocates

giving order to the market
place.
In short, they insist that
we must have "cooperation" and

and

Socialism

of

long have proposed
the promotion of cartels in the
conviction

that

"planned economy," both at home

system of ex¬
tensive monopolies controlled by

and abroad.

the

alluring

How

are

those words:

Stability!
Order!
Cooperation!
Planned Economy! But out of the
bitter

experience of the last few
have learned that such
were the sheep's
clothing

years we

words

socialist

toward
that

specious phrases point
governmental
controls
and

point

of

in¬

toward

an

collectivism

economic
the

the freedom

crushed

dividuals

antithesis

of

which

is

American

the

competitive enterprise system.
Many of these men for the last
twelve

have been seeking
system of collectivism
with only partial success.

years

to force

a

upon us

the

never

for

way

Hitler

economy.

a

and

could have risen

to

positions of absolute control
had they not had a ready-made

system of cartels to work

on.

what

I have said spe-

dertakings
tries.

This

ing power

tutional
would

what

manner

be

consti¬

a

otherwise

unconstitutional.

Constitution

makes

The

treaties

the

supreme law of the land, on a par
With the Constitution itself, over¬

riding

other

State

constitutions

Federal

>

laws,

and
laws

and

Oil

Agreement
As

matter

a

of fact

attempt

These

well

the

a

in their
jurisdictions, this
provided a framework
resources

integrated

direction

of

Authority.
plans

Those

an

of

an

Interna¬

herent

in

the

implications of the
the assumption of
an
obligation by our Federal Gov¬
ernment, when it concurred in

agreement

was

authority, national

of

life; and

sufficiently

are

every

against the public welfare and
made good if it
conducted

under

the

aegis

of

The private cartel
the competitive germs of

government.
contains
its

own

destruction.

The govern¬

ment-sponsored cartel, such as the
N. R. A. codes, and the super-state
cartels,
sible

are

far

more

reprehen¬

because there are no means

for their eradication.
►

Lest

there

be

any

misunder¬

standing, I favor world collabora¬
under¬ tion—cooperation among nations
in the —establishment of an organization
Now the fulfill¬ to keep the peace.
But instead of
obligation would undertaking to restrict world pro¬

individuals.

unthinkable

that

domestic

field.

necessitate

an

the

exercise

by

the

duction

and

world

trade

has witnessed in the last century.
trust or cartel combination,

private

economies and dictated social pro¬

closed

have

grams.

to

free

No

or
governmental, could
accomplished it.
It could
have been achieved only under
conditions of wide open invitation
to all the genius, inventive ability,
organizing capactiy and manager¬
ial skill of a great people.

enterprise and the

operation of natural economic law.
Even in that most elemental

and

This

persistent

effort

to

bring

President
Mrs.

Dwight

chance.

aid in

It

is

freedom

our

of

system

that

sending food to the liberat¬
peoples of Europe, that the

United

freedom, political freedom, indus¬

to

the institutions of

trial

flat denial of all

a

racy

have grown up side by side.
have grown together and

together;
marked

their
by

epoch

lived

be

been

That

the

emancipation of
the comman man and by the most
impressive advances in the arts
and sciences.

witch

With

doctors

American
many political

so*

abroad

in

deaf

just to the extent that expanding
government controls narrow the
within which enterprise and

a

a

free, to that extent
be borne by those who are still
they add to the burden that must

people

government

their

are

all

to

ear

When

come

the

as

the land

same

days earlier Herbert H.

director

UNRRA

to look upon
source of all

government




general

supply

ported in

a

civilians

will

Corn

get

25%

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FM and television

and it will be in great
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/

»aSe Wo
ffeSf **e/"s,Ve

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The American Broad¬

THERE IS NO OTHER

LIKE

of the

casting Station in Europe has

the

as

would

with food.

sophistries.

a

that

way

Administration, stated
that UNRRA was not planning to
supply any food to Germany, addv
ing that the statement was made
in reply to an implied charge in a
report circulating from Paris that

rights, 'there will surely
time when they will look

come

upon

their

a

bilitation

the other isms, I urge you to guard
well that heritage and to turn a

And

find

Nations Relief and

United

great

our

would

its

Lehman,

teaching
Communism,
Fascism,
planned and dictated economies,
governmental paternalism and all

always made the greatest contri¬
butions to recovery from depres¬
sions by lowering the prices at
which its products are sold.

is

heritage.

Free enterprise has

A few

individual.

an

States

share

supplies with the
starving millions in need of help,
according to the Associated Press
from Washington, May 12.

to

They

has

ed

freedom; freedom to dream,
think, to imagine, to experi¬
ment, to invent, to match wits in
friendly competition; freedom to

political democ¬
and economic freedom here

assured

Morrow, Presi¬
Freedom, Inc., an

free enterprise and equal oppor¬
tunity everbody gets just that

American

our

the lessons of the last century and
half.
Within that short period

a

Europe
has

W.

dent of food for

has brought us to this high estate
—intellectual freedom, religious

domination is

Truman

organization
formed
two
years
ago to promote the use of food in
building the peace, and the lead¬
ers of 21 other organizations, who
had appealed for the President's

Under

industry, business, commerce and
enterprise,
under
government

'

Food Plans for

least integrated of all industries—
agriculture—the hard, unimagina¬
tive authority of government, ex¬
perimenting this year with one
Nobody must be barred, no in¬
nostrum and the next year with, vention
rejected, no idea untried;
another, has produced
all
the everyone must have his chance.

symptoms of creeping paralysis.

'

we

Federal Government of an author¬ should seek to free that trade from
ity which it does not now possess the strait-jackets of cartels, un¬
under our Constitution, because duly high tariffs, import quotas
end all other restraints that do
jurisdiction
over
natural
re¬

Surely it

in

concerns; and the Merchant Mar¬
ine — these are all
practically

an

such recommendations, to
take to carry them out
ment of such

only

greatest

which this Twentieth

amazing spectacle of
industrial progress as this country

public utilities; the banks, insur¬
ance
companies and investment

scheme for super-state cartels

is

can

the

the light
Century has
rekindled,
a
great
progressive
people will be beguiled into turn¬
ing back to the ways of controlled

ized such

high frequency equipment

The

is

of perfection as free, un¬

hampered
is

we

with

parts

our

measure

international, could have fore¬
seen, planned, plotted, and organ¬

scales and finances under
control of government; the other

world's

repercussions
upon
other line of economic ac¬

is

recommendations

play

eco¬

or

wage

under

alarming, however, this movement
would entangle a large part of our
domestic economy in the tentacles
of the vicious cartel system, with

thus bad, can be

tional Petroleum Commission. In¬

drama

enter¬
no

International

broad, if pursued, to encompass
large part of world trade in a
super-state cartel system.
More

agreement

production
of petroleum and its
products, the
fixing of prices and the allocation
of
marketing quotas upon the

nomic planning

enterprise. In this country
with their rates,

that

is

us

part to play in the great

a

together

whole

a

respective

for restrictions on the

competitive

The truth

assigned

system

cartel frame¬

All would be knit

an

Anglo-American
Oil
Agreement.
Under the guise of
assuring equal opportunity for the reprehensible. Yet they profess to
Nationals of these two countries believe that an undertaking that

develop oil

and

American

To each of

manufactured articles that

as

could be fitted into

amazing thing is that this
has
won the support of men who agree
that the private cartel is evil and

to

the

leather, wool, cotton, chemicals, as

rection.

proposed

prise.

railroads,

said to

tivity.

Last August our Govern¬
suddenly
promulgated
a

continually

interna¬

were

already has been made in this di¬
ment

the

thus

of

That is the his¬

tory of tyranny.

re¬

destructive
an

the field that is left
open

grain, rubber, tin, sugar,
shipping cargo space and
airways.
Undoubtedly,
others
had
to
do
with
metals,

agreements, we

Anglo-American

oL free

and

narrow

cover

negotiating a multitude of treaties

--

to

dustry
to free

coffee,
global

Trade

'

was

services in

trade.

tional

In this period when our
Government is in the process of

The

Agreement, it

modities and

treaty.

radically changed.

defense

in

danger that may engulf all of us.
During the controversy over the

into

the entire political and economic
structure of this country may be

in¬

tated economies.

you

stand firm

to

of all their wrongs.
That
history of all planned, dic¬

a

work.

should be very alert to the possi¬
bility that through such activities

of

more

source

is the

conclusion, I appeal to
of business

men

transforming our American
system into National Socialism is

which may be in conflict with the

and international

and

more

still

are

masters.

for

ported that similar international
agreements
were - contemplated
covering approximately 60 com¬

ently hope to achieve in

control

by those who

own

•In

We cannot but view with con¬
the tendency of government

to

borne

their

tional limitations and set the stage

establishing such a system in this
country through the rear door of
treaties and agree¬
In this way, they appar¬

be

,?:

■.

affecting other indus¬
use of the treaty-mak¬
to over-ride constitu¬

Petroleum

ments.

;•

cifficially in regard to the Oil
Treaty is applicable to similar un¬

How they use the opportunity of

international

from the free choice of

cern

initiative

Agreements
Much of

come

free people.:

area

Other "Commodity" Cartel

We* have learned

Socialism hid.

a

paved

Mussolini

under which the wolf of National

that such

State

a

-;

economic problems is
away from
this tried and true
American system and toward re¬
strictive collectivism. In the back¬
ground of our Government are
men who have little faith in the
post-war

not

2293

BUY

BOND

A

WAR

TODAY!

planning of a tailor-made in¬

the

ry-"v&ywwy#*''vw ■ *»> *

vestment program.
Bond

Union Common

the current
dramatizes one

issue of Keynotes

investment problems
resulting from the

of the major

Stock Fund

of

time

our

steady

Prospectus upon request

"

'

•

Redemptions

Keystone Corp., in

j

i

interest rates
of higher

in

decrease

the

and

Employment of Economic Sanctions
Among Current Parley Problems
(Continued from first page) \
it

the

bonds through redemption
prior to maturity.
This problem
of maintaining investment income

v m ^

*

•'• '

'X '

•••

-v

is

emphasized by
called

been

york

chicago

•

•

atlanta

los angeles

•

ing

to the

calls

these

by

through "a diversified and super¬
program
in
155
bonds"
available in Keystone Bond Funds

Mark

'*

of Investment Companies, in a current
total net assets of the 70 open-end member
companies crossed the billion dollar mark in April—by a good mar¬
gin. The estimated figure on April 30 was $1,030,000,050, compared
with $882,191,000 on Dec. 31, 1944.
<«>The National Association

release, announces that

is Many Mar¬

kets" U,
A new folder

Priced
Shares
Group

A Class of

tries.

to illustrate
also
wide variation in perform¬

63 WALL ST.

"The

Conclusion:

investor

experienced guidance in
both respects—selection of indus¬
try and selection of stocks within
the industry. Such guidance must

needs

North

Securities

American

employs a: "Help

Co.

Wanted" ad< in

its current.memorandum on Com¬
monwealth

Co.

Investment

to

emphasize what the average per¬
with money to invest needs

son

the

in

way

randum

this

answer

can

satisfactorily

;

memo¬

points out that the

investment dealer
need

The

of help.

then

with

Com-

Company

chart

a

com¬

Stock

Funds

together

for

that dealers

check

accounts to

active

each

account

protected if

the

their

over

how much

see

would

be

better

were

money

shares of Wellington

in¬

in

Fund.

"Don't forget our big book,

'Be¬
he adds,
"which makes it easy to explain
the whole story about Wellington
Headlines',"

the

it will produce

.

to the employment

orders."

.

.

Shares,

in

of

its

on

investment

shares

for

trust

of

of

in

portfolio

invest¬

its

1944, had stock investments

The Economic and Social Council is to further peace through
measures
such as full-employment promotion, tariff meas¬

(2)

are directly relevant to the settlement of inter¬
disputes;
In contract to the peace-promoting Economic and Social
Council, the body invoking sanctions is typical of existing

national

(4)

war-making agencies, such

the Board of Economic War¬

as

fare and Foreign Funds Control.

ment of

.

.

appoint¬

special committee by the Assembly. . . . When Italy went
on. the rampage, this main committee, consisting of 18 members, had
the technical details worked out by a large number of subcommittees.
Our prospective supplanting of the ad hoc system by continuing
.

.

a

.

machinery surely
.

V;:

preferable.

seems
'

❖

.

...

V 5):

•

V';' V /j.Vw-

i'fi

•

X-;K'

■' V Y;

:

' ;

In

discussing the prospects for the Economic and Social Council
your correspondent yesterday, Commander Stassen vigorously
expressed the conclusion that the current delib¬

with

erations in the financial, economic, and social
spheres, will ultimately add up to this Confer¬
ence's most important accomplishment. . . . Gov¬
ernor Stassen feels that the impossibility of get¬

in the common
of its funds resulted
decrease in real estate

increase

ting nations to hand
an

investments.

mortgage

.

The League of Nations applied sanctions through ad hoc

mainly in
and

defi¬

Sanctions

stock portion
a

sanctions

whereas

stabilization,

exchange

and

ures,

nitely disrupt the peace, and hence belong elsewhere;

26.5% of the total
portfolio as compared with only
18.2% in the previous year.
In
the
case
of Northwestern,
this
sharp

..

by, the force-using body, in contrast to the Economic and
Council which is a peace-promoting agency;

to

amounting

.

ment of force, they should be coordinated with, and directed

Northwestern University, in

28%.

.

Social

approximately

at

.

The real orientation on economic sanctions renders the sanc¬
tions weapon a Security Council function. ... As an instru¬

t (1)

..

re¬

held the proportion
stocks

common

ment

University

the

1941

Since

Chicago has

of the required weapons in the economic field.

part of the Security Council, are: A

as

company

investment,

.

arguments for such an additional specialized body, working

The

(3)

memorandum

.

.

College Funds

American

current

If loaned to your customers

Fund.

.

special technical committee for the purpose, as part and
parcel of the Security Council (which of course is charged with
the use of force), and on the same level as the designated military
staff committee.
This "Economic Sanctions Staff Committee"
would assist and advise the Security Council on all questions relating

advan¬

taking

University.

have,"

you

yond

National

series

neglected customers

asks Walter L.
Morgan in a current memorandum
on Wellington Fund.
He suggests

of

three

the

ports the holdings of the Univers¬
ity of Chicago and Northwestern

Wellington Fund

"

.

Council, which would be passed up vertically to the Security Council
formal invocation by the latter.
The new alternative plan

progress.

and

Selected

shares.

do

.

compared with

as

Common Stocks for

NEW YORK 5. N. Y.

Investment

monwealth

"How many

Help Wanted

prices

financial

the

continuous."

be

•

.

,

planning and technical advice on sanctions be done by the Economic

tage of this adjustment.

GROUP, Incorporated

The folder goes on

ance.

presents

recommended

h-

.

will follow either the Dumbarton Oaks proposals,
or else a plan about to be promulgated by some influential advisers in
the American delegation.
,
The Oaks program has contemplated that

with First Mutual Trust Fund are

DISTRIBUTORS

that stocks within an industry
show

stock

Common

Prospectus on Request

markets, and
that for good investment re¬
sults it is important to own
stocks in well situated indus¬

2.

Research

Corp., in the current issue of Na¬
tional Notes,

randum

1? "that the; stock market is many

.

/

The technique

"Experience indicates lag will
be reduced," concludes the memo¬

Securities, Inc.

*

*

proposes a

our

comparisons

used to prove—

are

Security Prices

vs.

Securities &

National

in

what it isn't.

*

for
Economic Gains

the economic gains this
country has made since the out¬
break of the European War with
the advance in stock prices. The
chart illustrates strikingly the lag

from Distributors

bearing the above title
makes a revealing analysis of just
what the * stock market is — and
Group

Charts and tabular

B-2, B-3 and B-4.

paring

■'•

••

before the actual shooting begins.

investment

on

vised

Stock Market

It will enhance the attractiveness of the Charter, to elaborate
on the prior use of a relatively peaceful persuasion,

in detail

problem of maintain¬

released

culture) that are listed;

ization, with a resulting serious hiatus;
(3)

"living" wage

a

funds

Mutual Funds

"The

If the technique is not spelled out now in the Charter, there
may be disagreement after the* formation of the World Organ¬

Keystone Corp. presents a solu¬
tion

Over the Billion Dollar

(2)

have

current period.

the

Economic sanctions are much more important than many
other functions of the new Security Organization (e.g., as

redemption over

for

incorporated

new

which

issues

bond

known

Lord, Abbett & Co.

(1)

the promotion of

list of 15 well-

a

for the following reasons:

Charter

new

disappearance

,-X-

exact manner of application in

advisable to spell out their

.seems

coupon
ts>\- ;"""

Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

£294

international

law-making powers to

over,

be counter-balanced

body, will

Organi¬

by the spotlighting prestige of the World

of time.
The
lofty obectives will become effective
through a process of "gradualism", he feels. . » .
zations,

Post-war Aviation

particularly

with

the

passage

....

In

Monthly Income

tion

Hugh W. Long & Co., in

folder,

NATIONAL

announces
that
is now available

income
an

Securities Series

aviation:

"It

is

easier

programs

investment

ment need."

Corporation
YORK, (5)

investor

dividend

of

page

a

a

handsome

picture of 12 monthly

checks
in

these

available
three

calendar

the

on

to

funds.
the

domestic

an

A

back

folder facilitates

Stock of

in

will

airlines

tional

years

is

as

spend

diversify

who

"Investors

values should do extraor¬
in aviation securi¬

ties."

they

.

with

>.

.

INVESTORS
■

»j

i

■■

Funds

■

Directors

capital
«.

*

Investors may

to

be obtained

from

your

may

be obtained

local investment dealer

The
PARKER
ONE

BOSTON.

CORPORATION

COURT

STREET
50

MASSACHUSETTS




of

Funda¬

Inc., have

quarterly

stock June

holders

of

dividend
share

Keystone Corporation
of Boston

on

1945,

at

the

May 31,

1945.

interference with their loan decisions,

no

matters

will

(2)

Coordinating;

(3)

Advisory.

V

.

.

Incorporated

48

Wall

.

economic,

financial,

V:■:

remain:

I

,

I /
-1%:

.

-

V-f-V'

■"

showin g

-

X';'a X 'V

•:

Abstracts

btin

on

rubber stocks.

/

Distributors

Street, New York 5, N. Y.

.

.

.

Calvin

Bullock—May issue of Perspective
discussing the position of the elec¬
utilities.

tric

.

.

.

Broad

Street
on

Broad Street and National Invest¬

Current

ing

.

notes

news.

.

.

issue

...

on

the
Vance,

construction
Sanders

of Brevits,

v

X.
;

Dividends

:
.»

"•

\

v-

Fundamental

■

w ..,«■■■.

record May 31.
.Union

Trusteed

f

The following quarterly

•

;;

dividends
stock of

payable June 20, 1945 to

—

11:

Fund

A_

tax

Union

Bond

Fund

B

Investments

Union

Bond

Fund

C

Fund
Common Stock Fund

Union Preferred Stock

of

Union

Shares

X

Funds,

Bond

American

v*

Investors,

Dividend; No. 46
amounting to $.22 per share pay¬
able June 15, 1945 to holders of

Co.—April 30 portfolio breakdown
Selected

of

Quarterly

record June

includ¬

and

issue

Considerations.

Union

"capital"

Selected

"3- ■

*

Sales Corp.—Mid-month letter

analyzing

new

a

fund.

/'S

featuring - the - Seventh
Drive; Investment BuK

War Loan

Ltd.—A

Hare's

.

of

diversification
that

•

investment in

$10,000

W>

v

Mutual Fund Literature

industry.

HUGH W. LONG and COMPANY

Congress Street, Boston 9, jMass.

The

.

.

Lord, Abbett—-Current issue of

ors

National

lL-

15,

record

close of business
or

from investment dealers or
THE

Investors,

payable on the Corporation's

Prospectus

.

Recommendatory;

stocks,'.

v

Fundamental Investors, Inc.
declared

Prospectus of Incorporated

be

.

Current

No. 46 of 22 cents per

■*#-

can

merchandising, rubber, aviatiton,
oil, railroad equipment and metal

1

The

...

1945, compared

$11,863,738 a year ago. Dur¬

mental

-.a-^rbjAi

being necessarily unable to acquire pow¬

compulsion and of enforcement.

Hence the Council's procedural functions in

quarterly report, Boston

ing the quarter, holdings were in¬
creased mainly in the chemical,

Custodian

.

.

countries or even on the affiliated agencies will come when
specifically permitted through direct special bilateral agree¬
These assuredly will be few and far between.
The Bretton Woods Organizations, for example, are so devised

(1)

30,

.

on

that there

^

April

world power

are

ments with them.

and social

on

a

only occasions when actual, directives can be im¬

Fund shows net assets of $15,915,176

of

ers

dinarily well

its

to

But the Council's crucial difficulties will re¬
main in
Harold E. Stassen

posed

on

and buy

In

elevation

tige rather than in

nearly

writes:

Boston Fund

Council's

vitally concerned in saying that the

"principal body" of the
World Organization will result in greater pres¬

the

the results of
Distributors Group

survey,

by another American

interna¬

and

$350,000,000."

Commenting
this

voiced

recent

facilities, and may have to borrow
much

extra-legal effectiveness is
delegate, who

This emphasis on

also

$750,000,000 for flying equipment
and
non-flying
equipment and
as

The folder itself is

job with
dividend

Shares of Capital

plan

five

next

the

"In

American

requirements because these three
funds cover almost every invest¬

National Securities &
Research

to

individual

to

adds:

Group

joint survey of four leading
institutions on post-war

cent

financial

York Stocks, and

Avia¬

on

Distributors

Shares,

through

tailored
request

120 BROADWAY, NEW

monthly

mailing

quotes the following from the re¬

Fund, Fundamental Investors and

-

upon

new

investment in Manhattan Bond

New

Prospectuses

a

current

a

$.24
.18

.10
.17
.07

Number 4388

161

Volume

THE COMMERCIAL1 &
FINANCIAL CHRONICLE

preservation of nationalist rights and
autonomy, and its rela¬
tion to the increasing Tears of Congressional displeasure is now
being
extended from the political field of regionalism and territories to
the formulation of social objectives.
Proposals to include edu¬
cation by name in the Charter, as well as the objective of full em¬

2295

The

.

,

.

ployment, have been vigorously opposed through fear

well as by worry over interference in domestic affairs.
education was unanimously approved at a Committee
meeting late last night. ... In the case of full employment Dean
Virginia Gildersleeve presented a redraft in such devious and com¬
promising language, that it was turned down with only Chile con¬
curring with the United States vote.
Other reasons for
opposi¬
tion to the full employment specification, which is now left in mid¬
However,

air, are:

.

.

.

of nationaliza¬

tion as

.

At his recent press
conference, for example, the LieutenantGovernor General of the Netherlands
East Indies, Van Mook, became
quite angered when queried
regarding the Indies' future status.
Of
course, determination of their status is outside the terms of
reference of this Conference.
The Indies supply
86% of the
world's pepper, 37% of its natural
rubber, 27% of its cocoanut, 19%
of its tea, and
91% of its cinchona bark.
Their post-war require¬
ments will be
textiles, fertilizers, machinery and railway and harbor
equipment.
They will welcome foreign capital for their heavy

.

!

•

(2) It implies endorsement of totalitarian methods. In fact it
was actively
promulgated by M. Molotov;
(3) It is bad semantics, a defect the legal luminaries here are
still confident they can
■'

'

satisfactorily repair.

ft

ft

'It will be most unfortunate

ft

-V

'

"

•

.

.

.

.

if the public's

impression is further

emphasized that the controversy represents a vote for
compulsory
employment or not. .
Surely America and its Conference dele¬
gation favor full employment as strongly as any one, but want it
promoted through the application of International social welfare on a
world-wide basis, and want to make certain that it does not interfere
.

domestic

with

.

against any
rules

same

.

.

as

Dutch

.

.

.

problem of
broached in

to the Dutch East Indies'

access

some

VV

■■

■

.

.

such problem.
to their export markets.

insofar

domestic~affairs

with

that

the

will

be

now

pro¬

controversial regional question,
is concerned, will be

very

"functional

as

regionalism"
promptly
lap of the committee formulating the Economic and

thrown into the

Social Council.

In the

.

ft

.

fields of trade agreements and

economic

in general, as in the political
sphere, basic conflicts between
regional and world-wide interests exist and must be reconciled.
...

In order to fan the flames behind the
present international
and to keep lofty objectives alive and before the

initial

functioning of the

Mr.

ate

interval

Roosevelt's

conversation, two
few months—one

between

the

spirit,

public during the
Conference's end and the

Security Organization, and to perpetu¬
of continuing "fluidity" of international

new

policy

more

conferences

will

be

called

within the

next

educational and social
matters, and one on trade.
that the continuity of conferences during the preratification interval may counteract the effects of
possible-radical
changes in the governments of some countries, as China,
Greece,
Italy, France, Holland or Belgium.
This danger is pointed out
here by a former high government official who has
recently returned
from missions to Europe and the Far East.
•

,

■

•

.

*

*

.

'

*

.

-

the

International

;;.

•••

ft

ft

Labor

Office

as

favored

V 1

ft

.

.

as

a

.

need.

.

.

without

.

Hence it
kind

some

is
of

difficult to

subsidy.

.

.

how trade

see

can

be

conducted

at¬

an

Commission

urged by

was

cow,

or

by

the Minister

means

ft

*

.

.

Maguire

Arms

Corp., \

Industries,

manufactures the

Inc.,

and

which

Thompson sub¬

machine gun.
Excerpts from let¬
ters written by high military and

Government

companies
torney.

to trade directly with the
of arrangements negotiated through Mos¬

characteristically evasive.

was

Automatic

officials

attesting to
Maguire's

The

were

read

by his; at¬

'

<

SEC

declared

however,

that while letters "attest amply to

.

ft

the

capacity of his organization to

Although Assistant Secretary of the Treasury Harry White has
departed, Bretton Woods is being "protected" at the Conference by
Assistant Director Ness of the Department of
Monetary Research.

make sub-machine guns quickly"

.

the question whether he should be

The

Treasury professes to be encouraged by last week's favorable

permitted back into the securities

.

.

.

XX

A

and
visit

.

' X ,;\V- "V"--'."""X'

typical instance

one reason

of

a

of

ft

ft

the

the

s

•

...

'XX

drain

ft

'-XX:..

on

'"-x

■"■K

Chairman

group

of zealous Philadelphia

same

'i'Y''''jx'V*

Stettinius'

citizens.

.

.

time

in the

past."

Registration Revoked
The

Four

.

on

temptations to which he

succumbed
";;'x■

for the length of the Conference is contained in the

second

they have little bearing

.

business where he will face again

reporting of the foreign trade agreements by the House of Repre¬
sentatives.

.

broker-dealer

registration

of the General Securities

mally to the Chairman to have the United Nations World Organiza¬

Corp. of
Richmond, Va., has been revoked
by the SEC, which found the com¬

tion

pany

strong, they have taken the ride out here to present their plea for¬
permanently established in the Quaker City.

informed

v.

.

The Secretary

the

pleaders that he will report their suggestion to the
appropriate Committee at "the proper time."
The request was
.

referred to Secretary-General Hiss, who will

.

.

later

pass

it

on

to the

interim organization, which will ultimately pass it on to the Assem¬

or

some years.

.

.

.

The public's un¬

inability to realize the limited purview of this Con¬

lengthened it about 50%.

guilty

of

wilful

violations

of securities of the Securities

change
the

Act

Ex¬

prohibiting

purchase

or

fraud in
sale of securities.

The Commission charged

that the

fraudulent transactions took place
while the company was acting as
broker

for

decedents'

the

of

trustees

estates

and

two

ef¬

were

fected through Pres. E. R. Jones.

going so far beyond the
pushing the ILO lies in the domestic political

in

event it

and

the performance of Mr.

.

Asked whether the Ukraine expects
outside world

ference has probably

ft

England, and in the coming elections.

any

.

explanation of Britain's

American position

In

' ft

.

.

qualities, but for export
grain, metals, chrome and cattle, none of which we

willingness

situation in

requirements

guire & Co., Inc., which in 1939
acquired control of the Thompson

.

Republics—possibly

Perhaps the

neither

were

production record of Russell Ma¬

ft

need finished goods badly and in substantial
it has mainly

bly,. where it will be settled after

.

:i

its

The

of Russian-American
was furnished by
Foreign Minister Maniluski of the Ukraine
Government at his "double-talk" press
conference, staged to explain
why the Ukraine is now a sovereign country.
The Ukraine will

slap at Russia, which wants the WTUO represented.

.

■

inadvertent.

nor

Mr. Maguire's attorney to approve
the application because of the war

trade

by the AFofL', about
: designating
the ILO in the new Qharter by name, is still wide open.
Although the American delegation decided to favor the naming
of none of the affiliated bodies of the Economic
Council, surprisingly
the British have in committee been
aggressively advocating the
naming of the International Labor Office.
7 In this they are being
supported by some of the Latin-American
.

They

casual

.

-

The controversy between the vociferous
supporters of the CIOSoviet controlled World Trade Union
Organization, and the backers
of

flagrant violations

administer.

of

A significant reaction to the possibility

k

...

"

on

tempt to use devices (dummy ac¬
counts) to evade it."

...

on

It is hoped

.

based

were

.

stated that this Conference will neither
spell out nor otherwise pre¬
scribe any regulations for the control or
distribution of raw mate¬
rials or trusteed territories.

measures

prospective -long

.

...

.ft'

,;i

.

learned

.

the
two

They
planned, wilful and per¬
sistent.
They bespoke, not ignor¬
ance of the law, but a
knowledge

been

no

by

found

anti-manipulation fcnd antifraud provisions of the ;laws we

(as hap¬
Although the
has

1941

control

of the

Referring generally to the new trustee system, Dr. Van Mook
feels there is no
relationship of it whatever to the access-to-rawmaterials status.
Existing cartel and other trade agreements can¬
not be affected by
trusteeship.
In any event it can be reliably

'■

hibited by the four-power proposed amendment to
Chapter 2 of the

now

.

.

.

World Organization Charter

is

.

materials

raw

quarters, actually they have

The only problem is access

were

.

pened in the French Front Populaire experience).

in

The
Commission
declared, in
denying
the
application,
that
"prior
revocation
proceedings

supply

.

which

com¬

broker-

a

as

denied

guilty of
manipulating the market.

.

business.
The country will need vast exponas
its capital needs, occasioned by the bomb destruction of
railroads, harbors and oilfields.
Such aggressive destruction met
only the weakest defense, due, according to Dr. Van
Mook, to the
over-emphasis of the colony's economy .on social reform
to

been

new

...

policies.

Actually interference

It

SEC,

has

firms under his

pfogram.
There will
be no discrimination
foreign country, foreign enterprises being subject to the

:

.

dealer

Russell

of
a

Maguire, Inc.,

pany,

.

industrialization

•

'

.

application
Maguire to register

.

'

,•

Registration Denied
The

.

.

.

.

(1) It no doubt would prove a snare and delusion in
promising
the impossible to the world's
population;

.

can

be

.

.

.

tfi.
*

predicted that the decision of the Con¬

..ti

-I

iY

■>

ference

finally will be to
cally, but to describe them

name
no
affiliated organizations specifi¬
in covering language for
designation later
by the International Organization,
according to the following three
categories:

(1)

Official government agencies (would
presumably include one
on
Food and Agriculture
Organization, International Bank
and

(2)

This advertisement appears as a matter of record only and is under no circumstances to be
construed

buy

Hot

a

as

an

any

offering of these securities for sale,

solicitation of

an

offer to

\

Tvfetc Issue

Fund, and probably the International Labor Office);

Private organizations and groups (as the World Trade Union

Congress, CIO, representatives of agriculturists,
et

or as a

of such securities. The offering is made only by the Prospectus.

al)

who

would function

in

an

Shares

100,000

consumers,

advisory and consultative

manner;

(3) Specialized
service

economic-;and

the- parent

Nations' staffs.

Backed

by

compromise
possible.

,

on
.

the

body

...

.

other

did

as

technical
some

of

sub-agencies
the

League

City Stores Company

to

of

v-

delegation, this represents the best
procedure, without sacrificing principle, that seems

t'

Common Stock

,

ft •

ft

(Par Value $5 Per Share)

ft

Harper Sibley, who is officially representing the United States
Chamber of Commerce here on the Consultants Group, feels that, on

balance,

1

*

the prospective organization will actively further the inter¬

ests of American

business, and maintain the traditional international

aspects of the Chamber.
In

OV-

i

American

fact the

..

Chamber

Security Organization

expects to

(1)

By having a representative designated by the Chamber par¬
ticipate in the tri-partite business-labor-government set-up
of the affiliated International Labor Office;

(2)

As

one

ated

of the autonomous

with

"Council.

In^any
Commerce

the

World

consultative bodies, to

Organization's-Economic

civilization

event this
of the

"steaming-up" of

United States

over

a

for

Share

5

f-

i.'i

,

Copies of the Prospectus

may

he obtained in

a group

like the Chamber of

including the undersigned,

the good will of many communal groups

later

Congressional ratification.
$

On the

ft

any

State from such of the several Under writers9

lawfully offer the securities in such State.

i""-

world
is un¬
that may

LEHMAN BROTHERS

...

*

trusteeship question, it is becoming increasingly evident,
aPart from
legal wizardry and word-artisanship, that very few ter¬
ritories will go under
trusteeship—practically only conquered terri¬
tories and
solely those which are not needed for strategic reasons. . . .




as may

the State Department is

In bestowing encomiums of praise for saving
the 42 groups of consultants, the Department

doubtedly gaining
be needed

Social.

per

six-week interval proves the

...

on

be affili-

and

$13

.

excellent public relations technique which

practicing.

Price

be actively repi-esented in the

in two ways:

May 18, 1945.

-l.i

'

'

(Continued from page 2284) *

.

j

FINISH

FINISH

Mr.

THE

THE

FIGHT

FIGHT

Sampliner began his careeer

& Co. in

1918, later taken over by
He is

E. A. Pierce & Co.

GOVERNMENT

IV/.IIVMJ

;<>
■".

-V

».

CORPORATION

interests,

operating as the Albert Realty Co.,
has purchased practically all of

Street, New York 5

14 Wall

Guaranteeing

The List-Eaton-Daley

Incorporated

;* t

1927.

*

*

Wood, Gundy & Co.

■{:f.

Vancouver and District
Joint

Sewerage and Drainage Board

the stock of the William Whitman

4-%-% Due Sept. 1, 1970

Co. of Boston and New York, the
'

CANADIAN STOCKS

v.lru:
o

second. largest" textile interest in

Canadian Securities

•

1

•

BRUCE

By

'

the country. /

WILLIAMS

Otis

to

TWO WALL STREET

v

power.

NY-1-1045

of

spite

the

the

by

challenge

formidable

a

Dominion-wide
testings of the popular political
C. C. F., recent

trend clearly indicate that
the end of 1943 the power

whereas

Liberal

the

regained

slowly

CANADIAN

steadily

has

F.

C.

C.

m-

since
of the

STOCKS

of

the

year,

WHitehall 4-8980

in Saskatchewan

underwriting group headed

May 18
shares

on

ofered to the public 100,000

($5 par)

Stores

stock of City

common

Co.

provinces to follow this example
and it is more probable that the

their

undecisive
clear

of. the

able

and City Stores

Co,, will receive

none of the pro¬
ceeds from the sale.
On Jan. 31,

last, Bankers Securities owned
beneficially 1,046,075 shares of
common
stock, or approximately
86% of the total outstanding, and
all of the 400,000 shares of out¬
standing class A stock.
City Stores Co. is a holding com¬
pany owning directly or indirect¬
ly, all or a substantial majority
of the stocks of corporations en¬
gaged primarily in the operation
of six department stores, in Phila¬
delphia, New Orleans, Memphis,
Birmingham, Louisville and Bos¬

the

at.

Bankers Securities Corp., a parent
company,

that they have

previous

If

at

result,

to count

of

repented

there

is

is

it

Social

Credit

party in order to control
jority, and

in

be

the support

upon

the

any

case

a

400,000

stock,

and

shares

of

1,208,401

class

shares

A

of

common.

would

solved

Govern¬

by the Ontario

ment

taking

curb

the

requisite action to.
within

offenders

Turning to the market for the
week, general strength still
persisted with interest centered on

which,

antici¬

as

pated, moved further ahead. High
grades continued in demand al¬
though
Quebecs
were
quoted
slightly off their recent highs.
Manitobas were again in especial
demand but
stricted

scarcity of supply re¬

turnover.

Internal

securities,

especially

gold shares, were strong and

in

It is to be expected that as

recapture

the

interest

recently held by the Quebec and
Ontario mines.

prospects, in the absence of any7

hold the balance of power as the

unfavorable

other major parties, the Progres¬

ments which

sive Conservatives and the C. C.

the market should continue gen¬

F.,

erally strong with

are

any

unlikely

on

demand

vital issue.

Another
has

to combine

Canadian

received

of

election
are

for

not

-develop¬

anticipated,

an

increasing

considerable

few

undesirable

speculation, and
there is thus the danger that the
importance of recent mining de¬

internal

securities.

Baltimore Porcelain

It

is

Steel Stocks Offered

In New York

of

convertible-

(par

$5)

and
stock

common

Porcelain

preferred

of

last

100,000

shares

of

Baltimore

Steel

the

Corp.

was

60

the

securities

Wall

Street, New
conduct a general

business.

Partners

Charles J.

Thornton

Thornton.

Mr. Thornton

merly

a

partner

in

and

Patricia
for¬

was

Thornton

&

Louis

Heller

is

engaging

convertible

common.

of

preferred

into

be

is

used

for

new

conversion

and

jgeace-time production.




finance

Lindseth,

utive

exec

a

named

was

vice

president last
March 7, suceeds the late Eben G.

Crawford, who died April 17.
He started with the
company in
1924 as a test helper.
Later he

production

engineer, as¬
sistant to the executive engineer,
assistant to the president, and in
1942 was made vice
president in
charge of sales.
C.

Ober,

to

who

succeed

has

Mr.

been

Lindseth,

Case graduate and began
with Illuminating Co.

a

assistant in

was

charge of electric engineering de¬
partment, executive engineer in
and

president
the

later

He

was

a year

manager
elected

was

a

of

vice

Both worked

ago.

while attending

company
-

\

*

#

Company

64 WALL STREET, NEW

YORK 5

charge

of

of
now

the

in

White.

has

the banking

and fi¬
prior
to
joining
Dwight P. Joyce, vice

.

.

.

who

been

for

several

years

general manager of the
Co.'s

paint and varnish
division, has been made assistant
president, Adrian D. Joyce.
v

Alexander

.

president

D.

vice

Duncan,

and

managing director
of the Glidden Co., Ltd. of Toron¬
to, Canada, succeeds Dwight Joyce
as manager of the paint and var¬
nish division while Charles Mor¬

rison

is

acting managing director

director of the Canadian business.
.

.

Mowry E. Goetz, manager of.

.

Republic Steel Co.'s Chicago dis¬
trict

for

been

the

past five years, has
to
Cleveland

transferred

headquarters
vice

ations, E. M. Richards...
J.

the

to

assistant

as

president in charge of oper¬

Gorie

is

the

the

William
of

.

manager

new

Cleveland branch of Interna¬

tional Printing Ink division of

In-

terchemical

Corp., replacing Carl
who
is
retiring after

Schill

A.

than 43 years in the graphic
industry.., Otto G. Schwenk
industrial engineer of the Weatherhead Co. since last August, has
more

arts

.

ler

of the

the post

company.

of comptrol¬
He was as¬

sociated for ten years

with Albert

as¬

Raymond & Associates of Chicago,

sumed the presidency of Repub¬
lic
Steel
Corp., third largest

consulting industrial management
firm, before coming to Weatherhead.
Cleveland Chapter, Na¬
tional
Association
of
Cost Ac¬

operations,

in

company

Chairman

has

the

nation.

M.

Girdler

T.

signed to engage in a new activ¬
ity abroad. E. M. Richards was
to

Mr.

White's

since

later

1915,

two

from

&

Republic

He

made

&

in

chosen
a

at

was

..

■

Co.,

Bank,

when

president in
a

former

made

chief

Steele,

of

is

departmental
National

Central

tops

among

the

public

speakers in the Cleveland banking

fraternity.
Mr. Steele

nual

president.

U.

manager

president

engineer of Republic in

mo,.;...;...

Gammel
president

Otto

its 25th annual meeting.

gold

1930

as

vice

official,

industrial

.

countants, elected
of Locke Machine

associated

Mr. Richards, also
L.

Steel

Laughlin Steel Co. He

was

1935.

Uni¬

He started

Laughlin

becoming

Girdler
was

years

the

Girdler, one-time

to

.

Forde

Jones

Corp.,

.

former

^

graduation

with

J.

WHitehall 3 -1874

treasurer

field

moved into

*

C. M. White, vice president in

came

&

perience
nancial

career

of Jones &

Taylor, Deale

Lee,

company,
President ..Robert F*
Black announced Lee had long ex¬

.

who

versity of Maryland.

Support The 7th War Loan

stock

capital, to

Lindseth,

after

made

equipment

L.

University.

Mr.

industry

of

money

American

Mr. White has been in the steel

redeem¬

The

and additional working

facilitate

York

elected

Broadway, New York City.

of the top

North

vice

to the

position.

fabulous

has

and the graduate school of New/

securities business from offices at

the

ladder

announced that R. J. Wysor re¬
a

C.

1936, is
president-treasurer of

Gildden

233

of

the

one

the

Elmer

exploit fully the tremendous min¬

shares of

2%

Preferred

able at $5.50 a share.
will

in

Places

graduate of Case School of Ap¬
plied Science, Miami University

steel

Louis HeHer in N. Y.

clear

New Faces in High Cleveland

president

He-is

eral

resources

of

system.

with

share

in

concerns

Board

commencing to

Teletype NY 1-702-3

Hom¬

who started

man

Illuminating Co.,

are

Curtis of Boston.

unit.
Each

bottom

Case School.

at

the M.

reached the top rung as pres¬
ident
of
the
Cleveland Electric

offices

City, to

Bell System

New York 5, N.Y,

increase

and

now

operations.

made

40 Exchange Place,

com-

White Motor Co. since

1933

Gily
is

Do?ii?iioM Securities
Grporatioti

Robert

for

York

Mc¬

to

are

as

43-year-old

the

at

stock

May 21 by Kobbe, Gearhart & Co.,
Inc., and Newburger & Hano in
units of one share of each at $5

is

at

will be known

formation of Thornton & Co. with

Public offering of 100,000 shares

.

a

increasingly
is

plans

in 1913. In 1917 he

by this worthless froth.

Canada

remodel

also is

Thornton & Go. Formed
Announcement

Mr.

years.

pletey

his

velopments in Canada will be ob¬
scured

67

said

Dean

atten¬
a

for

Combe

chosen

subject that

tion here is the activities of

wines

became

With regard to possible future

ma¬

should

will

*

O., producers of champagne and

ac¬

as weather conditions permit
early June the Yellowknife is¬

sues

Toronto and Montreal

mel Co,

its

past

issues,

*

J. S. McCombe, financier' of
Akron, O., has purchased the M.

A

Alberta

*

■

*. f;

'

borders.

Direct Private Wires to Buffalo,

re¬

substantially the production ca¬
pacity of the company which

best

be

soon

fairly
will

Liberals

will profit accordingly
However, the

problem

will

Hommel Wine Co. of Sandusky,

those

and

precautions;

future.

the

whole

an

high-pressure Toronto gold stock
salesmen in this country, it would
appear that this problem is not
eoing to be solved satisfactorily
by individual states taking various
ton.
drastic steps that penalize the le¬
Outstanding capitalization of the gitimate mining interests in Can¬
With
company
consists
of
$4,900,000 ada.
spectacular
mineral
funded debt, including promissory discoveries there is
always a wave
notes;

in

investment;

mines,

Price 125.40 to yield 3.05c,
to

,

developments intel¬

follow

tive.

decision.

worst

the

that

least

by

the mills

'

made than lost

country

ligently

voters in Saskatchewan will dem¬

onstrate

at

$13 a share. All of
the shares are being sold by the

not likely to

are

the electorate in other

encourage

Marketed by Lehman

of

results

the

achieved by C. C. F. Government

Gily Stores Stock
An

not

been realized.

Furthermore,

by Lehman Brothers

has

ranks

Liberal

the

of

Quebec, defection

scale

large

a

from

threat

the

and

meantime

the

York 6,N.Y.

61 Broadway, New

and

servatives have made headway in

Members Toronto Stock Exchange

money

more

London.

or

Sinking Fund.

Arlington

unchanged.
Net worth is
placed at $35,000,000 while the an¬
nual business is reported around
$60,000,000.
;
c
*

dealers, there has been decided¬

Canadian

at this stage,

reason

;

security

Canadian

of

minority

in

that there is still a
possibility of Mackenzie
King returning to power with an
overall majority.
Neither the C.
C. F. nor the Progressive Con¬

CHARLES KING & CO.

spite of the unethical conduct
of a certain undesirable

Full

and Monomac
processors of woolen and
goods.
The management

main

In

Canada

around

Nashawena

and officers at

who take reasonable
no

stock, of

the

ture.

this

distinct

r

rayon

in

previ¬

an

play a great part in the

ly

therefore, to depart from the con¬
clusions reached at the beginning

Bought—Sold-—Quoted

to

Payable in United States,

is the

Lawrence, Mass., and also
interest in Calhoun, Non-

shaping of the Canada of the fu¬

has

ground

of

quitt,
Mills,

waned,

cause

ously lost.
There is

tined

30%

Mills at

des¬

is

which

Shield

Laurentian

declared "it

Co.,

The Whitman Co. holds

has

"

considerable
publicity in this country on the
subject of a supposed violent
swing tto the left in Canada and

TO NEW YORK
5, N. Y.

RECTOR 2-7231

appear

of

In

the con¬
returned

that the result is already discounted with
opinion decided that Mackenzie King will be

It would
sensus

&

intention to develop it rapidly."

Although the Federal elections are less than one month away,
there is a curious absence of political excitement north of the border.

INCORPORATED

;

,

.

William R. Daley, president of

f

A. E. AMES & CO.

Columbia

member of the Cleve¬

a

land Stock Exchange since

MUNICIPAL

British

He

Galion Metallic Co. of Galion.

has been

Province of

Co. and

& Feiss

cluding Joseph

direc¬

a

romoanies, in¬

tor of several Ohio

PROVINCIAL

$50,000

with Otis

the investment field

in

CANADIAN BONDS

24, 1945

Ohio Brevities

iiT ~Y
•v-1

Thursday, May

& FINANCIAL CHRONICLE

THE COMMERCIAL

2296

the

public

speaking

Cleveland

Institute

of

successive

tory

has been

of

His latest

the topic

Industry."

"The

vic¬

Bank's

Reconvers¬

was

Trophy

donated by the Cleveland

House Association.

three

for

Banking,

years.

was on

contest of

chapter, American

part in Financing the
ion

awarded a

trophy for winning the an¬

....

Clearing
~

~

Number 4388

Volume 161

THE COMMERCIAL &
FINANCIAL CHRONICLE
Soviet
plants, mills and other
ultimate consumers, and also the
Soviet products allocated to
be

I). S. Part in
(Continued from

133,000,000,000 rubles, and
the magnitude of the undertaking
stimulated a search for new ways
to build cheaply yet solidly, more
quickly, and in new fields never
before studied.
It was then in

2282)

page

Growth

absorb

of

■/•' [r,'
So

Soviet

far I

Construction

have

torg,

foreign markets.

an

chases,

Industry

.>

..

sold in

told

you

little

a

agent,

stocks

the

sells

pur-

the

im¬

ports, and ships its American

pur¬

about the background and
growth
of the Soviet construction
indus¬

chases, after inspection and for¬

try.

necessary. While the order

You

are

probably

famil¬

now

mal

acceptance

of the

In

The Am¬

makes

and

awaiting

when

these

methods, and the

modern

of

use

the

plans for

post-war

ing in the USSR

and

build¬
of the

some

business

has

been

handled, with
general acceptance, for 20 years.
The credit of the

machinery, under the guidance of

structures

specialized engineers. The utiliza¬

States is famous.
I understand
that Mr. Gousev will tell us about
the present organization of the

firms sold freely on terms of
pay¬
ment 45 days after
shipment.
It

construction

industry in the So¬

seems

viet

and

near

local
materials
was
The staff at that time
of
2,500,000 workers,

of

tion

stressed.
consisted

whole reserve of equip¬

and the

ment was valued at only 250,000,-

small

rubles,

000

numbers

and

for the tremendous job
that had to be done.
In 1934, also, the first mention
amounts

of
in

for

Union,

thing

of

the

which

the

United

perhaps

plans

for

some¬

building

that will be put into effect as soon
as the
concentration of effort on
war

be swung over to

can

peace¬

-time enterprise. In this connec¬
pre-fabricated houses was made tion, I am glad to be able to say
the press: A barracks for 100 that my Bureau will soon publish

people, complete with plumbing,
connections,

sewer

and

electric

in

Weekly,"

wiring, made of pre-cast concrete

viet

slabs, was erected in ten days.

have

Construction

Speed

Becomes

But for the next few years, the

construction

industry made only

although many fac¬
tories, housing projects, and other
slow progress,

structures

completed.

were

building workers, it

reported,
plants they

was

often remained at the

worked

after

on

the

structures

completed, and under those

were

circumstances
hold

to

The

it

impossible

was

construction

to¬

gangs

gether, for transfer io other jobs.
New

methods .were

adopted,
devices

ilated.

the

time

be

the

for

cut¬

of

building
generally assim¬
idea of high speed

been

not

to

particular,

mechanisms

ting down
had

in

and
and

slow

But the

hung up: A syn¬
thetic rubber plant," for example,
was
erected in 12 days, instead
were

of the four to six months

usually

special article

a

been

So¬

on

plans, which
preparation
for

in

months, and which involve

tremendous amount of rebuild¬

ing of war-shattered cities, build¬
ings, schools and hospitals, public
utilities, and all else that made

Soviet

new

coun¬

the

am sure,

"garden

cities"

of

great

interest, and the Govern¬
ment
organization for restoring
them very complete.
*
But

the

reconstruction

of

industry,
to spend

upon

180,000,000,000 rubles.

which
a

total

A

new

Commissariat for building mate¬
rials
and

was

established, to organize

stimulate

the

production

of

only

field

building

where

science

good effect.

mission

erection

pare

with

were

workers

for

research

a

vestigate

and

the

keynote

of

develop

the

was sounded

industry,

institute

finishes, paints, and

pre¬

in¬

to

materials,

so

forth. The

construction

by "Izvestia"

plan
fol¬

as

lows:

"When
realize
speed

built,

Soviet

once

the

construction
on

architects

possibilities

a

there

scale,

mass

of

high

will

be

hundreds

industry

during the

of

new

of

east

area

the

expan¬

and^ agriculture

in

detail.

it

But

do not know

we

war

is

certain

that

the

beginning of intensive
of the eastern dis¬
where
natural resources

a

goal

Probably

all

had

during

the

to

draw

as

the

extent

speed

had

Soviet

1939.

familiar

to

be¬

building
You are
with

the

in which,
during the war,
whole factories, and
housing for
hundreds of thousands of work¬

have

others

and

other.

The

Russians

am

sure

I

in¬

have

have, to

you

extraordinary keen and cath¬
embracing every part and

of
construction, including
always the most important factor,
how to speed up building, in or¬
der to obtain results in the short¬
est

of

United

States

this

has

words

chanics
Union

the

between

March 31

following is the Stock Ex¬
change's announcement:
p

possible time. I have described
the steps taken in the So¬

viet

Union

to

construction

or

accent

industry,

speed.

on

continued

this

modernize

and

I

am

rapid

direction

can

their

with

the

sure

that

progress

safely

be

in

left

may

I

so

Unitedj States^

excluding borrowings from other!
of

members

securities

national

exchanges,

(1) on direct obliga-i
tions of or obligations guaranteed
as to principal or
interest, by the
United States Government,
$29,3,-;
963,308; (2) on all other collateralj
$579,987,648; reported by New
York
Stock
Exchange member,
firms

The

the

of

as

April 30,
950,956.

close

business

of

1945, aggregated $873,-:
of

total

compiled

on

borrowed'
basis, as of
31, 1945,i
direct obligations of
money

the

same

the close of business Mar.

(1)

was

on

or| obligations guaranteed as-to
principal or interest by the United

in the hands of your
Committee,
and of the Russians now in close

States

Government,

(2)

all other collateral. $595,-4

touch with the

072,113.

can

be

most

dertaking.

and firms who

men

valuable

in

the

For the USSR is going

rebuild and continue to build,
and it is to their interest to do so

quickest and best

to whom could

they

way.

come

$236,845,057;!

Total, $831,917,170.

un¬

to

in the

on

And

for

Plans Announced for

j

AIB Council

!

as¬

Meeting

convention of the American Insti¬

tute

of

facturers.

year

because

the American
~

concerned.

That there will be

an

un¬

firms

I

immense

in Europe, seems
be expected by every one, in

to

over

Government

and

and

ideas

that

question

on

ods and

the

of

modern in¬

more

Soviet

Union

are

this

the

than

asking

as a represen¬

Foreign

Commerce, of aid¬
I

any way

can

international

in this work

reaproachment

During the

war,

other

several thousand
technicians and

highly trained Russians have

visited
have

the

with

are

products, many of
eminently suited to

of the Institute

General

Electric

doubtless

in

the

Com¬

making,

its

at

acted

tive

at

will

be

trans¬

meeting of its Execu¬

a

Council

3-6.

usually transacted

convention

in

Cleveland,

This meeting will

June

bringfto-

gether the 12 elected members of

stitute, who

i-.'iivN'-.'

President of the In¬
are

ex

officio

bers of the headquarters

John Whitney to Be

few

a

will become

Whitney

a

partner in, Riter &, Co., 40 Wall

Street, New York City, members

was

&

Exchange,

exchanges. Mr. Whitney

formerly

Weeks

a

partner in Baker,

Harden

and

others

whose

mem¬

staff,?and

Thomson

& McKinnon.

-

meeting of the Council will

be held under the emergency pro¬
visions
of , the
revised by-laws

adopted at New Orleans in
which

authorize

Council

elect

to

President,
four

the

1942,

Execjijti.ve
install

and

Vice-President,

members

of

the

say

This advertisement

me¬

the

Executive

Council in the event that it is im¬

possible to hold
•

•

convention.-',!

a
•

'

'

Mi-

to

sell

nor a

appears as a matter

of record only and is neither

an

offer

The

iilCji

.

.

solicitation of offers to buy any of these securities.

\

/'wn

t

'.tuQ

offering is made only by the Prospectus.

On

that in

v

.

a

n

hope

have

to

circular, in

for

"In¬
ternational
Reference"
series,
called "Doing Business With Rus¬
sia," and describing the various
a

steps to be taken by

an

our

oration

ft

,

••

"x

i

'ff-'fii

100,000 Shares

American

firm in selling to or buying from

Par Cumulative Convertible Preferred Stock

Amtorg Trading Corporation,
soon

be the chief So¬

viet trading agency

But I

the

can

in the United

actual

that

trade

V;j

100,000 Shares

describe briefly

principles

guilding

'

Common Stock

un¬

*"5

'

.

move¬

•

'IT:

ments, for they are simple.
In

in

agency

munitions,

huge auanti-

guns, tanks and

is the

across

which

is

exercises

movement

Soviet

and

its
of

frontiers.

told.-




•

Copies of the Prospectus

legally, the Amtorg,
corporation, is the

be obtained from only such of the undersigned

licensed dealers in securities under the laws

Kobbe, Gearharl & Company

agent for the Export and Import
"Combines" in Moscow, corpora¬

goods.

may

j

4

k-O
■'

as are

American

ing and

' yx

'

Tech¬

selling, and shipping of
Through those are .tun¬
neled the goods requested by the

-will be

C',T

goods

tions formed to do the actual buy¬

.<

t-

•i '-»•

(1 Share of Preferred and 1 Share of Common Stock)

control

war¬

necessities! of modern

•

the

manufactured.
Some¬
time the
story of this tremendous

fare were

k-,

i

Price $5 Per Unit

through which the Soviet

the

nically

jn
the Urals, where
ues of

Moscow,

Government
over

an

completion in
days, behind or

even

the Amtorg

essence,

buying and selling representative
of the Commissariat for Foreign
Trade

a

t

and

'-v;

distribution

is

presence !

required.
The

John

and other

the

this'

t

mediate past

3Cr;-t.

of the New York Stock

and others, and many more

canceled

wartime' travel

Union of Soviet Socialist Repub¬

ready contracts have been signed

pany

of

annual

lics.

adoption in the Soviet Union1.1'Al¬

with

Banking,

the

bers of the Council; several mem¬

manufacturing

and

of

the Executive Council,
plu^-the
President, Vice-President, andrim-

States, and
intimately familiar

American

absence

restrictions, the essential business

'United

become

the

and cooperation, in the interest of
both the United States and the

of all other countries put together.

Soviet engineers,

In

to

those

to

meeting,

Bureau*of

Domestic

ing in

Russian. It is, of course, a well-

or

at

of

better

-

leave

and

American

out,

Incorporated

.

May 21,1945

.

The

American architects, builders, and
equipment and materials manu¬

by

Soviet

the

and

might be of interest.
or

was
$873,950,956,
$42,023,786 over thej
total of $831,917,170.

suggested

on

trading

subject I

.week

30

Soviet Trading

Chairman

few

a

of the close of busi¬

as

April

increase of

an

to you

goods

the mechanism is

once

derstood

an¬

rapidly

are

as

USSR,

are

S. and

Your
that

Months

accomplishment

the

the

and

olic,

some

been

ber firms
ness

/-;■

U.

ers, were rushed to

other

* Already

war.

projects

nounced,

doubled

probably

thatj

1945,

borrowed

sistance

which

abundant, and where the pop¬

2,

money

between the United States and the

tricts,

derlie

way

or

of

of

'

in

early

exchange

different

kind

worked out through years of trial
and error,
and before'the war

processes

ulation

be

and

manufacturers

on

of

found, and I

its

development
are

terest

system
or
machinery
whereby the Soviet Government

the

total

reported by Stock Exchange mem¬

other lenders in the

hand,

one

architects

Government agency.

export goods abroad, in
sufficient quantities to pay for all
the goods it must import, has been

the

on

American

The

sells

the

Stock Exchange

May

on

.

passage

to

American
as

Export-Import Bank

Rus¬

closely

tative

to

to be. large and
What has happened there

rapid.

the

come

other

the

The New York
announced

The total of money borrowed:
the contracts made between iri-&
from banks, trust companies and,
dividuals and groups of Russians

practically

used

scheduled

was

ing material

Plans

the

some

know, I
with

touch

American and

only the privilege,

under the second Five-Year Plan

States.

Which

from

American models, meth¬
equipment than on those

building industries, in the build¬

I
quote this
your attention

arrangements to purchase,
and the firms selling will collect

Novoz-

you

close

of

and
Com¬

sian discussions in this field since
last fall, and have followed

own

based'

of

the

;

its

in

which will

architect's office."

Govern¬

dustries

]ngs, produced by the friendly co¬

industry, and in the

Soviet

the

in

countries after the war, which is

be

can

plants, in the
Lake Baikal,, where

pf good looking, practical build-

operation of the workers in the

the

long-term basis. If that
is accepted, the
Amtorg can make
on a

steel

number

a

organized to

to

both

of

American

hundreds

of

taking shape.

Commissariat,

loan

known fact that

the long-haul
delivery of building
materials. As part of the work of
the new
of schools

a

plants, from sawmills to irori and

plants, and in

avoid

the

been

Mr.

by

some

Borrowings Increase j
In Month of April
y |

the

members

Construction

present

Back in 1933 plans

definite

way

in

future Congress will
approve
open credit of a large amount,

ment

have

in

industries

Committee,

headed
As

than

the

increase in trade between the two

not

published in Moscow for the

were

local deposits of lime and
gypsum,
to build
brickyards and cement
every

that

by

the

American

varied

be

will

only

building

now

cilitates

You will find, I

try.

of

called

probable

American

war,

dustry and culture for the

those planned developments were

the

as

the

the Soviet cities the centers of in¬

required for the job.
The third
Five-Year Plan raised the sights
was

an

before

of

hilov.

Amtorg is high,

functioned smoothly. In operation
it' does not hinder but rather fa¬

construction was rapidly percolat¬
ing, and in individual cases new sion
records

Commerce

reconstruction

many
a

Goal

"Foreign

our

and

and

of

the prospects for

Architects

those

usually

field

are

represented

are

establishment

brighter

numerous

the

the

other

no

manufacture

the first time a def¬ iar, from your association with stands in the name of the Soviet
inite plan for the whole construc¬ the members of the Russian Com¬ import "Combine," the contract of
tion industry was drawn up in¬ mission sent over to familiarize purchase often includes the sig¬
nature of the
Amtorg itself, as
volving a complete reorganization themselves with the latest devel¬
the Soviet
party of interest in the
of the Government apparatus re¬ opments
in
American
building
United States.
sponsible for the execution of the practices, who have investigated,
This in brief,' is the mechanism
huge, country-wide program. Em¬ I
know, many plants, building
phasis was put on a large staff of and housing projects, with some through which American-Soviet
of

only

terms of payment.

' business

1939 that for

professional builders, trained in

2297

'

of this State.

Newburger

'1 • )•?

/
FINANCIAL CHRONICLE

THE COMMERCIAL &

2298

Ohio Municipal
(Continued from page 2284)
lower

Back The

group,

mental

lower
a

as

there is the more funda¬
and
more
important

effect of post¬
the financial

of the

question

conditions

war

greater sup¬

a

municipals and
for
municipals

prices

7th War Loan

rates,

tax

of

ply

on

condition of municipalities, and,
therefore

& CO. INC.

TRIPP

Street, New York

Wall

40

There

3-6742

-Telephone WHitehall

of

status

who

predict
now

for

Municipal News & Notes
Portfolio sales by

private insti¬
tutions and public trust funds has
been the outstanding feature of

Jersey City; Milwaukee County,

the municipal bond market since

Calif.; Pittsburgh; Roanoke, Va.;

of the 7th War Loan
May 14.
Furthermore,

opening
drive

on

the

prospect is for a continuance
of such liquidation on an impor¬

Wis.; Nashville, Tenn.; Oakland,

St.

and

Calif.,

Sacramento,

Louis, Mo.
Pennsylvania Turnpike Refunding
Possible

■?'

tant scale while the drive is on.
r

the

currently known operations of

this

not to mention the
which will likely

nature,

various 'deals
take
:

>

t

'

place without benefit of any

These latter, it
occurring
with in¬

advance publicity.

eems,^

hre

creased j

frequency,

amounts

involved

i

Transactions

on

in-

some

are

merous,

being

most part to

such

.

limited

the

for

offerings of bonds of

perhaps several issuers.
general rule the larger of¬

or
a

ferings include obligations of a
large number of taxing units, in
diverse
geographical areas and,
lor this reason, it is to the advan¬

tage of the seller to make known
details of the

the

trade in

offering to the

general.

afforded

by

the

Mutual

Life

Boston,

which

'

.

An outstanding

Hancock

Insurance

is

Co.

of

scheduled

to

receive sealed bids until May 29
on

State

and

municipal

bonds.

This is undoubtedly the biggest

single

and,

undertaking

as

City of New York.

old

to

occasion
some

next, this being the ef¬
"prudent man

rule"

bill

signed

as

of property and are to

be guided
by what "prudent" men would do
the

under

rests in the permanent
disposition of funds in consider¬

decisions

ation

of

income

probable

and

safety of capital,
Under

the

guardians

old

statute,
trust
restricted to in¬

were

vestments which,

largely the

were

with the result that the
scope of investment material was
extremely narrow. Under the cir¬

the 3s of 1980.
New

sub¬

Detroit,

Cleveland, Jersey City,
vills, Philadelphia
and

cumstances, trustees were obliged
from many worth¬
while sources of investment solely
because they were
persona
not
grata under the law. The new Il¬

Louis-

Its

bill, which is

now

States.

12

interest

to

the

municipal

fraternity lies in the possibility
that
want

of

of

some

to

latter

is

trustees

dispose

or

make

their

of

some

of

new

addi¬

portfolios.

The

viewed

being

as

the

likely prospect, according
to Chicago press advices.

Mgr.
Of Davies Mejia Dept.
SAN

York, Erie, Oswego and Cham-

New

York

plain

Stock

4M>s

FRANCISCO,

Brooks

CALIF.—

D. Weber has become
with

Davies

&

Mejia,

members

and

Exchanges,

S.an
as

as¬

of

the

Francisco
of
Mr. Weber

manager

;

of Jan. 1, 1914, maturing Jan. 1,

the sales department.

t

1964.

formerly vice - president of
Heller, Bruce & Co., with which
was

Offering

he had been associated for

Among other important liquida¬
tion undertakings is the $5,565,000
offering by the Penn Mutual Life

Philadelphia, which

is also scheduled to take place on

^May 29.

change:

States of California, Illi¬

nois, New York, North Carolina
'and Oregon, and of such debtors
.

as

the Boston Metropolitan Dis¬

trict, Mass.; Cedar Rapids, Iowa;




tions will make

-*1

ft

*

The New York Stock
announced

Exchange
the following

deposited

nitely,

"take-home"

more

But

half for

municipalities, and perhaps

indefi¬

manipulated

foreign

and

climes—
While the

goods remain in the foreign-trade

they

zone

in

be regarded

may

still

as

foreign territory and not sub¬

ject to duty

discharge foreign cargo with¬

may

out

require¬

customs

or

Vessels entering the zone

ments.

delay incident to customs

en¬

try.
One

little

the

of

known

but

lishment

of

Staten

foreign trade

a

Island

1934

the

zone

1937.

in

Emanuel

gressman

sponsored

estab¬
Con¬

Celler, who
legislation

which made this development pos¬

sible, had hoped that in addition
to New York,, other zones would
established

coastal

on

regions

States.

the

several

the

United

of

Unfortunately, the

tervened before other

war

in¬

could

zones

the

for

reasons

condition for

(1)

all,

and

that

taxes

New

the

are

practically

there has

(2)
no

relief

poor

finance; (3) the market for

nicipals of

any

lias

so

been

their

financial

that

high
that

and

to

they

needed.

meet

of

because

burdensome

no

borrow

those

cannot

problems,

able

mu¬

shade of quality

requirements
money

easy

to

problem

have

what

been

money

(1)

continue to
flow so free and easy in the face
of 25% wage cuts and lay-offs;
money

will

(2) whether there will not again
people asking for poor relief and "makework" (though it may never again
be
called
"poor"
relief);
(3)
be serious numbers of

the

communities

themselves

in

cial

conditions

will

be

borrow whatever funds

ed

to

meet

that

serious finan¬

tind

their

able

are

to

need¬

requirements

(whether they will still be able to
borrow from Peter to pay Paul.

ready
in

In spite of these setbacks, prep¬
are now being completed
for the opening of a foreign-trade
zone at Ne\y Orleans,
Louisiana,
and a similar facility will be es¬
tablished

in

California

of

one

ports

the

leading

soon

as

as

war

conditions permit.
Act

i§

merely

permissive

Under the law,
porations—both .public and
vate—may

apply

pri¬
Federal

the

to

cor¬

for

license to

operate a
Private cor¬

a

making application for
?

Ports of the United

controlled

by the

license.

a

States

States

or

are

mu¬

nicipalities rathen than by the
tional

Government,

na¬

That

.

York

this

performed

in

operation

•tons

ment

do little to

can

foreign-trade
courage
to

interest
When
and

except

en¬

major

port officials
facilities in the

such

of

international

trade.

has been authorized

zone

a

develop these

zones

our

provide

ports.

•

Govern¬

established,

the"
ForeignBoard, created under
the Celler Act, and of which the

of

foster¬

Staten

on

valued

and

at

Island:

$205,000,000,

through

collected

which

entered

amounted to

the

zone!

the
that

on

Unietd

$6,688,745.

part
States

The gross

operating income for the five-year
period
totaled
more
than
$],500,000.
During

one

(1940)

year

70.000

t. o h s: of : foreign merchandise,
valued at more than $13,000,000 or
50% of all. foreign goods handled
transshipped to 60
foreign. countries. ;
/
Alongside
Zone

York

has

built

Foreign-

up

consignment
for

market

small

heretofore

pendent

been

requirements.

raw ma¬

At the for-

zone an

this

ready proved
both

small

In

owner.

instances

has

al¬

distinct advantage

a

foreign

suppliers

American

j Canadian

number of

a

practice

and

to

manufacturers.

have

farmers

been

materially benefited by the New 1
York Foreign-Trade Zone. In for¬
mer

of

quantities

substantial

years

potatoes

from

direct

shipped

were

the

ports of the Maritime
Provinces to the Caribbean region
War needs

and to South America.

necessitated the suspension

service.

As

an

of this
meas¬

emergency

thousands of bushels of pota¬
were

New

York

where

they

shipped by rail to the
Foreign-Trade Zone,

as

and

protective

a

were

.

loaded

.

measure

baskets

in

repacked

steamers

aboard

for

forwarding to final destinations.
Following are a number of other
important activities which have
been carried

in the New

on

York

Foreign-Trade Zone: Critical ores,
including tungsten and antimony

Secretary of Commerce is Chair¬

from

China

are

a

mixed,

the

Board

the

are

Secre¬

capacity

my

Executive

as

Secretary of this Board I have had
ample opportunity to observe first
hand

the

York
it

operations of the New
Foreign-Trade Zone since
established

was

the

on

cipally-owned piers
land early in 1937.

muni¬

Staten Is¬

on

Built shortly

after the

First World

War, these

facilities

had

been

seldom

during the intervening

used

years.

Like any other commercial

tivity undertaken during

a

major

was

little

cargo

attracted

the

war

Prior to
we

de¬

Germany for refining

on

processing these vital ores.
from the Netherlands

Tobacco

East

Indies

tioned,

packed,
to

is

matured,

recondi¬

weighed,
re¬
auctioned according

sampled,
and

the

age-long

custom

of

the

Dutch.

Diamonds

from

South

America

examined,
graded
and re¬
packaged for industrial purposes.

are

Brazil
ac¬

business depression, the zone was
slow to get under way.
Because
there

and

of

drums

in

repacked

outbreak

pended

refined,

sampled,

of domestic manufacture.

the

taries of War and Treasury.

and

America,

South

and

classified,

man,

bers of

tilated,

nuts

ripened,

are

sorted,

cleaned,

ven¬

bagged,

weighed and repacked.

Drugs,
cleaned

grains
and

seeds

and

are

graded.

Cotton and woolen

piece goods

Transfer of the Exchange mem¬
bership of George P. Smith to H.
John Bechler will be considered

to be high
time to ponder the question of

its

during the first days or weeks of
existence;
skeptics
quickly
pointed out that the zone idea was

from the United Kingdom are ex¬

quality in one's municipal port¬

without

lots

by

folio,

than to fret
about the market value of one's

recognize
zone's

portfolio.

merchandise

the

Mr.

Exchange

Bechler

wil

on

May

continue

partner of Smith & Gallatin.

c-

-

31st.
as

a

Indeed,

far.

it

seems

more

so

merit.
-

the

They refused
obvious—that

to
the

prospective customers and
were

located in dis¬

•

importer, how¬
small, deals direct with the

ever

to

de¬

larger buyers to im¬

on

eign-trade

for

proven 1

importers

have

port and parcel out their
terial

«

im¬

an

This market has

bonanza

a-

who

its // transshipment

.

New

Trade Zones

supervises the operation as
public utility. The other mem¬

1

that year was

toes

Canadian

Federal

successfully

During this period, 11,790 lots of
merchandise/
weighing
451.000

certain

the

has

zone

its function

cumulative summary of activities
for the first five years that it
was

ure,

other

successfully

Foreign-Trade

ing and promoting foreign com¬
merce
is clearly reflected in
the

in the case
of the harbor here in Quebec and
as

commodities

handled

New

foreign

It should be understood that the

.

Even before
war
hover over Eu¬

to

different

been

the

imports.

:

on

Zone.

portant

In

It would be well to ponder:
whether

152

needs,

arations

Later

zone

50 foreign countries had
al- "•

Trade

in

zone.

zone.

began

temporary

Therefore,

with the result
easily collected

easy

unemployment

or

threefold:

are

large volume;

been

financial

a

Money has been flowing

free

in

such

and

clouds

York Harbor to make way for war

foreign-trade zone.
porations first must be authorized
by the State Legislature before

money

the

to clamor for admission to the
for¬

eign-trade

trade, / the

locations

re¬

operation
created, business began

been

be developed and even the Staten
Island Zone had to be removed to

down, live principally off

Dick

effective

an

Duties

the

was

Board

Tom,

of

when

of

trade

that

be

foreign busi
advantages and

with the

purposes

had

and

would

acquiant

have/passed

most governments from states on
from

to

highly significant acts in the field
foreign

countries

energy

men

rope,

to

barriers.

and

from

transshipped
toms gates or

time

re¬

without passing through the cus¬

*

foreign

processed,

repackaged,

legislation.,

a

may

assorted,

reclassified,

Celler

eight hours.

abroad

stored

and

rehandled,

labeled,

profits operating at 40 hours per
week at regular time, rather than

opments

Exchange
Weekly Firm Changes

nation-wide recognition.

of the

Sam,

whether in the face of such devel¬

New York Stock

has

obligations

a num¬

ber of years.

Here again there is a
diversity of "names" which enjoy
includes

when

producing more
especially when
Uncle Sam renegotiates its con¬
tracts
and
levies
excess
profits
taxes on those profits it does not
take back by renegotiation.
And
it may very well be that corpora¬
for

communities

Brooks D. Weber

Building,

list

than

Uncle

tioii

may

holdings

present

municipals
to

the

either

their

Russ

The

must

perhaps

linois code, it is pointed out, was
modeled after the Massachusetts

sociated

Insurance Co.,

important fact

one

consider, far
the investor
in stocks.
It may very well be
true that corporations will be able
to earn more "take-home" prof¬
its when they are engaged in pro¬
ducing less for private consumpthan

more

be

be

Harry, rather than from the prof¬
its of corporations.
The financial
condition
of
local
governments
has been such during recent years
that practically all of them, good
and bad, have been able to meet
their obligations promptly.
But

block of $4,000,000 State of New

improvement

'

'

'

will

or

collected

West¬
chester County, N. Y. A virtual
"heirloom" is represented by a

Mutual

entirely.

and

realize,

thou¬

of

who have been

municipal investor must

,

York

stantial amount of bonds of such
"names" as Baltimore,

Penn

the

hours,

which has
for thou¬
earners, must be

Now there is

that

40

to

to sheer away

most

offering also includes

Canal

circumstances.

same

primary/aim underlying their

softening of
York City

New

City securities, the John Ilancock

Governor

by

Dwight H. Green recently. Under
the new measure, trustees are au¬
thorized to invest in "every kind"

tions

a

as

fective date of the

This fact has

In addition to the

;•

of July 1

oblivion

into

48

consideration

be laid off.

Illinois

for

"legal

sink

in force in

issues, such

•

will

the

is a sort

zone

adjoining the customs port,

wages,

wage

more

the

effected

been

"free ports."

as

foreign-trade

where products from

on

in

cut

Thus cut¬

25% cut in wages.

mean a

of

sands

from

at 48 hours at time and

city securities has reap-1
peared in the market of late,
thereby aggravating, if that's the
word, the perennial large floating

b

phrase

investment rule

served

this

A

hour

48

reduce

the extra

In this connection it may be noted
that a substantial amount of simi¬

j

The

trusts"

stock

i\ prices for

actually
To

merely

week

work

added

Included in the offering are ap¬
proximately $20,000,000 long maturity,
high
coupon
corporate

supply of "city's."

that

backs

half.

a

ards,"

War Loan.

lar

for at time and

sands

Trust Fund Investments

re¬

made
mandatory, it
provided that the addi¬
tional eight hours would be paid

1947.

on

to

was

already

Illinois Removes Restrictions

war

also

was

approximately $42,000,00a
of outstanding 3%s, the first op¬
tional date on which is Aug. 1,
the

of

the

product of arbitrary "legal stand¬

intends to employ the

the

refunding

when

kind

ularly in furtherance of the 7th

;

mission may anticipate

in

well

be

with

proceeds
in
the
purchase
of
Government bonds, and partic¬

of

Turnpike Com¬

would

its

respect to such liquidation, the
company

possibility that

from

considerable

<

made

case

of

is usually the

hinted at

being

the Pennsylvania

total of S52,379,000 various

a

business

new

The

illustration is
John

of

in the trade is the

scale,

a

not likely to be nu¬

however,

.'As

in

the

running into the millions.

tances

one

with

Among large prospective items

also

that

member
week

Evidence of this is available in

ranging

already

It

in some countries

or

production and even larger cut¬
backs yet to come, perhaps even
before V-J Day. There is already
a movement to cut working hours
from
48
hours per week to 40
hours.

ness

in

others

are

■-

are

cut-backs

ties of

business

There

upward.

years

There

H.;

N.

County*

Hillsborough

two

quired

hospitable fenced off vestibule

periods

-

again impressed by the possibili¬

foreign-trade zones, known

2279)

page

tant

of

greater
p r 0 f i t
for business in the post-war pe¬

predict

riod,

(Continued from
Department of Commerce and the
Foreign-Trade Zones Board were

prognosticators

booming

on.

1945

New York Foreign Trade Zone
Vital in War and Peace

('
some

are

from
who

the

upon

credit.

their

Thursday, May 24,

amined, cut, sampled, and various
are

combined

for

re-export.

Spirits, brandy, rum, wine, and
whiskey are stored to age,'con¬
tainers

are

examined for leakage,

Number 4388

161

Volume

THE COMMERCIAL &
FINANCIAL CHRONICLE
eign

barrels recoopered and recondi¬
tioned. y
; •,?;
'v.-V.;;
An exporter of Scotch whiskey
that

of

ments

of

may

5.-

house

canned

domestic

for

cartons

First

classification

customs

For

modity.

this

of

undetermined
■*

to

merchandise
subject

or

authorize

determined to be correct
inated.

■

Fish-liver

oils

point.- Several weeks
Federal

the

a

to

laws,

drug

may

still

to await the

Despite

tration of how the

During

the

pounds

of

1943,

year

in

bonded

the

"Cus¬

City for

the past 75
to illustrate this

serve

Although

*

1937

the

not have a single
Class 8 manipulating

does
a

in

Port

the

•

New

of

our

made

thi^r
signment quite unattractive to

Today, however, I have
what

different

a

as¬

and

;

I

ahead

Quebec

with

tain

no

jure

our

decide

such

plans,

to

I

go

enter¬

I

serve

to

the

results

stimulate

eign-trade

in

in

substantially

in¬

bulletin

to

sented

an

shippers

service

not restricted to

was

other

ports

obtained

customs

"Guide," Boston did

have

not

her

pointed

income,

income

accrued

include

eign-trade zones in Canada.

Africa.

This

valued at nearly

Here
which

is

of

22

in¬

the

to

foreign

every

These

Britain, which
ufacture

supply

was

them.

unable to

New

sought

were

to

of

$15,000,000

a

ried

a

on

through

to

the

at

year,

New

no

it

will

from

have "to

New

.

be

York

foreign-trade

zone

the war,

transshipoed

or

other

some

on

our

east

or

gulf coast.

A

distinct

foreign-trade
a

new

If you

clear

number

for

in

who

fa¬

they

will

zone

are,

utilize

free

or

usually located abroad
far as a proposed Canadian

are

is

the

feel

can

be
I hope

may

Ca¬

about

same

importers in respect to the
of
our
own
foreign-trade

Since

broad

colonial

highway

days,

usefulness

to

has

to

North America.

I

the

will

time goes on.

become

St.
as

heart

am sure

tant

as

the

served

facility.

ahead with such plans,
rest assured that you

may

will have

our

full cooperation.

NEW

nual

a

agreed

Grant

that

I

"Field

Creighton's

impor¬
When it was
this

make

recent

book,

"Dominion of the North," the ex¬

of

Jacques

Club

Day
of

Outing"

New

of

Orleans

This announcement is not

an

announcement is

Cartier,

are

published

only by

on

been

May '30th.

V

'•••'••.

,

Program planned will consist of
a golf match, under the chairman¬
ship of Walter Kingston of Lamar,

Kingston & LaBouisse; horse shoe

pitching

-

Zollinger

contest of which John
is
chairman;
Gilbert

Hattier, Jr., of White, Hattier &
Sanford is chairman of the dinner

committee; and Claude Derbes,
Couturier & Derbes, is
bar committee.

Tickets

for

the

Field

Day

because

importer

of

has

merchandise

he

the

free

With New York Office
Of Mellon Securities

the

S.

Donald

ly

with

MacFadden,'former¬

Blair

the

&

Co;,- Inc. >has

Municipal

Bond

means

at

all

Corporation, in the New York Of¬
fice, 2 Wall Street.

buy, any of

,

of the Prospectus. This

behalf of only those of the under'

$5,000,000

limit
tions

'■**:

J

I

> **.i

<:

If

•

Fifteen Year

ui

if

INCORPORATED

4^% Convertible Debentures

his

To be dated

April 1, 1945

To mature April 1, 1960
iu

.-•'si

own

Price 100% and accrued interest

**>
(

t*.-:

•

;

;/

*

■?: 13

•

.

i

'V

Merchants who have established

*

The Prospectus may be obtained only from such of the undersigned

operations in the New York For¬
eign-Trade Zone state that it is
akin to the satisfaction of owning

as are

registered dealers in this State.

own home.: On many occasoins, upward of 500 people have
your

advantage
zone

the
is that it brings

competitive

of

facility

into

manipulations

the field of
foreign trade. In years
nast, the Congress of the United
States has recognized the need for

Some

segregating that part of

us




our

for¬

in the various zone

been engaged

You
to

at

the

same

operations have

ducted

on

a

may
-

•'

I;•

.

i

may carry on man¬

manipulations and examina¬
of goods to regular working

hours.

L-

o

TEXTRON

to

times.

24-hour

BLAIR & CO., INC.

been con¬

basis.

ask:t Why

establish

time.

May 22, 1945.

encourage

facilities

which

De¬

partment of the Mellon Securities

that

fact

access

are

$3.50 for members of the Club and
$5.00 for guests. Orders should be
placed with J. W. Kingsbury of
Kingsbury & Alvis.

NEW ISSUE

manipulating

or

head of the
j *r:

registered dealers in securities in this State.

re¬

the
will

be held at the Metairie Golf Club
on

offer to sell, or a solicitation of an offer to

these securities. The offer is made

an¬

com¬

more

would

Day

ORLEANS, LA.—The

of

that its

industry and

merce

by

enough,
had

up

which have

with this

good people of Canada de¬

cide to go

ploits

building to
meet his peculiar
requirements.
Bonded
warehouse
regulations

direct services with

after

strangely

this

he may erect

Africa, obviously if this business
continued

try to

in

inten¬

my

the

of

ipulations and any other activity
short of manufacturing on a 24hour basis.
If the occasion arises,

York

valued

be

to

in

1937 New Orleans

1944,

his

at
$1,500,000, have
shipped to the zone for re-'
oacking and transshipment.
As

is to

maybe

traders

Lawrence River

signed who

to

to influ¬

or

manipulating warehouses,

he desires,

extent

been

Mexico has

privilege

In

although

the

ForeignTrade Zone. During the past year,
over
15,000 cases of these goods,
destined for the natives of Africa
and

21

mainly

approximately
has been car-?

considerable

been

been associated

you

that

legislation

the misunderstandings

ample:

imported merchandise in the New
York
Foreign-Trade
Zone
is

Mexico to manufacture these par¬
ticular cotton articles. This busi¬
estimated

140

to

Well,

foreign-trade

use

ad¬

plan,

Rather,

country.
has

trip, I eagerly reviewed some of
joined
Canada's early history. In Donald

Act, warehousemen
U. S. port (New Or¬

The advantage of

in the United .States and finally
the United States prevailed upon

ness,

1937

in

tion

say

purpose

duced to 18.

avail

no

Zones

Tariff Act.

had

man¬

sources

38

manipulating

Great

to

whole,

arguments

possible

any

against the foreign-trade
zone
program
in Canada were
strangely similar to those em¬
ployed in the United States when
the
legislation was before the
Congress.
Here is a typical ex¬

only one
leans) attached importance to the

singlets had, in times past,
been supplied
by British mills.
When the Jap supply was cut off,
reverted

a

in

articles of clothing, shirts and so-

again

au¬

For the
the number

the

zone

ence

your

me

my

an

Trade

called

orders

obtained

increase of 270%.
Prior
to the enactment bf the Foreign-

1944,

for

Congo

as

from

rose

Japan had taken over the market
cheap cotton textiles worn by

had

manipulate.

to

country

Prior to the outbreak of the war,

the natives of the Belgian

warehouses

thority

trader.

and East and West Africa.

18

by

Philadelphia
had
only
three
manipulating
warehouses in 1937 but by 1944,

illustration

appeal

offered

was

bonded warehouses.

was

$6,000,000.

another

should

genuity

shipment

one

service

of

Soviet Russia and British West

as

of

let

been

not

eign-trade

nadian

An

vanced

most

S.

warehouse

the

we

consider¬

altogether.

here to sell you on the for¬

come

Bond

concerned, some
United States importers.

regarding efforts which
have been made to authorize for¬

idea

conclusion,

has

it

re¬

is that local

zone

the

zone

able data

that

U.

must

Government

bonded

and as

ex¬

tions in 1937 but in 1944 this class

well

as

the

to

wherein

but

port

less

South American

countries

the

cilities.

the
World

examination of this material shows

a

owned

in

authorized to
permit' merchandise
manipula¬
warehouse

similar

merchants and importers are sat¬
isfied
with
existing
privately-

of

In

Will Hold Field

somewhat

Another argument advanced

recent

the

don

New Orleans Bond Club

is

zones.

records

the

in

This

opposition to the

port business.
My

foreign-

storekeepers' salaries.

foreign

from

Indians

States the cost of customs policing
zone is borne by the
operator.

imburse

than 10% of the United States na¬
tional

hostile

In the United

practice

while

new

far is smug¬

as

gling is concerned.

warehousemen

Foreign-Trade Zone, where it was
redistributed to 26 foreign coun¬
tries, including all of Latin and

single

New York Harbor

exports
repre¬
average 30 to 35% of

national

en¬

administering the, customs
Treasury Depart¬

bonded

Bank

that
two

out

the

between

would

zones

present

A

Royal

"that

is

smuggling and add to the

sustain

While

the

of

we

trade zone is the safest area in the

must not

commerce

Canada.

before

ment has stated that the

trade is important to the economy
of the United States, it is even
vital

heard

geo¬

laws." The U. S.

only be maintained but substan¬

more

all

incomes

to

in¬

principle into
the field of foreign trade may also

other

which

argument

foreign-trade

employment and the standard of
living to which both countries
have attained, then their existing

increased.

bring

the

to maintain national

Canada's

additional

have

commerce

the

Wars,

belated

Another

If Canada and the United States

tially

of

cost of

needed

also

overcoming
this
so-called
graphical disadvantage.

the face of the earth.

scale

will

trans¬

into Canada's trading orbit,
which will serve to aid in

areas

is

years

offering this service.

portation

believe it would

on

interested in

are

tion,it would be better to aban¬

the St. Lawrence.

on

Improved surface and air

Canada/ there

are

he

because

hostility of the Indians.

who

Those

hurriedly

but

France

facilities

between any other two countries
on

trade,

for

offered to expend 30 million dol¬
lars to build foreign-trade zone

courage

than the total

offered.

area

guise of selfish interests.
Unless
the sponsors have the .courage to
meet and overcome such opposi¬

for¬

to

this

sailed

encounter

is

contribute

St.

official Canadian documents show
that in 1927 a New York concern

port

to

recog¬

later he returned to
Lawrence region to de¬

troducing this

meet the requirements of modern

reason

ex¬

estuary

years

terprising U. S. firm appreciated
this opportunity 20 years
ago as

own
gateway ports will of
necessity be put "on their toes" to

every

nearly 140

Seven

feared the

our

established

were

immediately

million people comprise the great¬
est market in the world. One en¬

would

a

is right at Canada's

door and where

and

sibilities which this

■/

velop

If for¬

free

Malo,

Cartier first

St. Lawrence

the

1534

the

or

or

re¬

States which

free ports are all
Canadian harbors,*

zones

authorized

them.

plored

Whoever developed this theory
surely
overlooked
the
United

On the other

ports.

own

think

St.

from

in

fears that they would in¬

hand,

Breton

vividly recalled.

nized the tremendous trading pos¬

offers in the post-war

zone

period.
Should

of

analogous to Eu¬
nations, being removed

ported merchandise might be
exported.

front

happy to be here to counsel
with you, at your
request, on the
possibilities
which
the
foregntrade

position

not

2299

from other countries to which im¬

me.

some¬

viewpoint

is

.

am

lists 39 warehouses in the Port of

manipulating privileges to mini¬
mize arguments advanced by local
foreign
trade
zone
proponents.
For -instance,
according to the

ordinary cotton
thread <was
shipped
from
the
United Kingdom to the New York

have

New York

in

plain,

own

exclusively for

Canada

to

ope'rates.
5,000,000

zone

this

New York for bonded warehouses

illus¬

years

benefits

ports would

York, note this: the 1944 "Guide"

This

the

of

excellent

>

zone

Guidej" published in interchange of

warehouse

the

1944

with

listings

will

"Guide"

into the zone

handicaps
an

man¬

announced

zone

York

listing of

lifting of said quota.

is

desire

warehouses offered

situation.

zone un¬

effect

in

come

the

here

war,

is

quota

little

Staten Island.

on

opened,

years,

til such regulations are complied
with. For example, while the re¬
striction

Warehouse¬

had

Records show* that "few customs

warehouse

other

or

kept at the

few

a

greater

New

regulations

be

that'

ago a selfish desire to retain

geographical

ropean

I

into operation

toms House

can

admit

States?

Furthermore, if

shipping public. A
comparison of 1937, the year the

Imported merchandise affected
by consumption quotas, pure food

frankly

The

Canada

be plan¬

may

United

creasing trade between the two
countries, a trade which is already

eign-trade

•

the

zone

service to the

on non-

in

eign-trade

ipulating, facilities" until ; the, for¬

to

ned

commerce.

,

required

which

zones

this/ newly authorized privilege
until the foreign trade zone came
;

in

trade

con¬

importers to utilize

encourage

adversely affect the New
York Foreign-Trade Zone or other
may

too many for¬

involved.

.whether the oil is dutiable

laws

importers

were

generally

zone

and

customs

of the draw¬

case

many

potency of these medicinal prod¬
ucts.
Only
Ihen
is
it v known
'

in

few impor¬
advantage of this pro¬

malities

conduct tests to gauge the vitamin

dutiable.

compro¬

warehouses,

bond ed

Government

United

supervision.

manipulate

took

men

is

duty

case

are

to

back

^

are,

customs

sidered there

elim¬

are

,

the

foreign trade
introduced to

were

vision. As in the

entry and that finally

on

under

ters

dis¬

to

ment between the amount of

goods

considerable

in

effect but Congress

bonded

and

The formalities of adjusts

assessed

for

War

arose

Bills

lege

Importers find it advantageous
to use -the zone when the tariff

pute.

I will not get into
of these

(Sec. 562 of the Tariff Act, 1922).
Despite the granting of the privi¬

split at the zone enjoy an especial
advantage since duty on split peas
is less than on whole ones.

classification

were

or temporized by authorizi?
ing bonded warehouses to permit
manipulation of foreign merchan¬

com¬

processed

peas

ware¬

laws

mised

are

Peruvian

example,

Chilean

and

a

accom¬

description

World

States

markets

of

To

drawback

agitation

change the

may

as

t.

Shortly after the close of the

dise

Manipulations

far

as

measures
for I understand that
similar provisions have been made
in Canadian Tariff Laws,.

re-export.

or

and

technical

a

meats

inspected,: labeled, ' keys

transship¬

laws.

early enacted.

affixed to cans and cans repacked
in

customs

#

South
are

our

zones.

•'
American

as

re-exports">

plish this purpose, bonded

York's I'oreign-Trade Zone,
where they can be emptied into
bottles, cased, and shipped into
customs territory, to State dispen¬
sary and bottle stores for sale to
the consuming public. That canny
Scot exporter could save the cost
of excess sea freight* on bottles
and cases and avoid damage re¬
sulting from glass and case break¬
New

age.

known

and

possible free from the application

ship hogsheads
now-precious liquid to

Glasgow

at

trade

;

MAXWELL, MARSHALL & CO.

i

i

■

each part of which has been

gram,

Secretary Morgenthau Discusses Management
Of Public Debt in Post-War Period
revision in our
tax
system during the continu¬
ance of the present conflict.
I be¬

ceipts during the fiscal year 1944
covered somewhat less than half

therefore, to review the impact
the wartime fiscal operations

year,

still

United

fairer

States

and

the

armed

in

men

operations to the new con¬
ditions which will prevail when
these

the
if a

to

forces

victory is finally achieved.

larger portion of the current cost
of the war were paid for by taxa¬

following table summarizes

The

Congress has decided other¬

tion.

wise, however; and there appears
to be little likelihood of a sub¬

the

receipts and expenditures

the

Federal

of
the

Government for

1940 through 1945:

fiscal years

Finances,

Factors in the

Federal
have

increased

1940.

The major

eightfold
since
proportion of the
remaining excess money incomes
that might otherwise have exert¬
ed an inflationary pressure has

Estimated

-Actual

Item—

retained

.4

2.3

3.2

2.7

1.0

6.7

28.3

75.3

89.7

89.0

1.7

a.

Interest

on

b.

Refunds

of

the

puolic debt-_—
and

taxes

including

allocations,
price .ceilings,
prevented the cumu¬

Veterans'

d.

Other

_

Government

corporations

Total

3.8

and

savings programs,.

.1"

.1

.1

.3

2.2

the

wartime

.6

.6

.6

.7

1.3

war

4.6

4.5

3.6

3.1

3.7

.4

—1.7

—1.2

.7

—

§B.

expenditures

Receipts

:

level

and

the

have formed

7.6

7.1

5.9

4.4

5.6

10.7

9.3

13.8

34.2

79.7

95.3

99.7

5.4

7.6

12.8

22.3

44.1

45.7

3.9

6.2

21.4

57.4

51.1

54.0

In short,

of

taxes, the
loans and other savings cam¬

paigns

.2

—

time

same

2.6

and

each

controls

direct

interrelated pro-

an

fiscal

the

of

1940

years

through 1944, the amount of this
increase held unspent in the Gen¬
eral Fund of the Treasury, and
the

absorbed

amount

by

with
debt

hands of

the

the

national

gross

which

resulted

in

non-

investors, respectively. The
remainder of the debt increase,

bank

making the deductions just

expenditures

of

Excess

the basis of classifications appearing in the 1946 Budget Message.
They include net expenditures of Government corporations and the totals are not,
therefore, the same as the figures in certain other tables in this report.
They exclude
♦Figures are on

retirements

debt

statutory

flncludes

for the war activities of the Reconstruction
Figures are excess of expenditures over receipts:

outlays
Finance Corporation and its*affiliates.
only

Treasury

Gross

V

in

resulted

of

creation

the

cur¬

and deposits in commercial

rency

deposits)
during each period. As shown in
the
table, Federalexpenditures
resulting in an increase in cur¬
rency and deposits
amounted to
7% of the gross national product

banks

fiscal

the

in

time

(including

1944, as

year

com¬

pared with 14% in the preceding

This sharp fall was caused

year.

in

part, however, by the fact that
two complete war loan drives and
the

major portion of a third fell

within

the fiscal

1944, with

year

the result that the

proportion of

nonbank absorption

of the debt in

that

year

it

than

/higher

was

tion

Corporation,

Loan

affiliates.

its

and

and

nonwar

Figures

indicate excess of

figures

Increase

survivors

insurance

the

of
of

of

the

increase

deposits

and

currency

portion

bank

in

the

in

the

billions)

in

'

Credit Corporation, Home
Reconstruction Finance Corpora¬
expenditures over receipts.
Negative

excess

are

of

appropriation to Federal old-age

trust

fund.

The

figures
in

gross

done in the

expenditures

net

Proportion
resented

the

excess

and

operation of Government cor¬
porations. The figures for the fis¬
cal years 1940 through 1944 re¬

presented in the Budget Message
of the President.

The

table

shows

Government
purposes

Federal

that

expenditures for

to S89.7

1944.

1945,

year

estimated

war

Gross

remain almost

prod-

Federal

The

uct (in

expen¬

year

billions)

ditures

1940—

$93

10%

billions
and

for

the

fiscal

cess

of expenditures
as

1943, however,

A

27

fiscal
are
un-i

to

national

year

1944,

billions

This

as

v/v

may

be

made

by relating expenditures and

re¬

the total production of
goods and services, known as the
ceipts to

*Federal
and

Government

receipts

expenditures are not strictly

with gross national
product estimates without certain
technical adjustments. These ad¬
justments,
however, are
suffi¬
ciently small, for the period cov¬
ered, to permit them to be omit¬
ted in this discussion. See section
on
Sources of Funds for Federal
comparable

Borrowing

which begins on page
79, for further discussion of the
relationship of Federal fiscal op¬
erations

to

the

1944

S93

$106

$134

$172

$194

rest

omy.




national product has

gross

stabilize

to

of the

econ¬

i-'i-l

33

■

at about

mated

that

Federal

be

about

tional

fiscal

$200

50%

of

1945

will

the

gross

na¬

Federal

product.

will amount to

expenditures

year

about

receipts
of the

23%

product;

and the excess of ex¬
penditures, to about 27%. These
proportions
are
approximately
same as

An

in the fiscal year 1944.
of

excess

ment

expenditures

Government
to

Govern¬

over

Federal

receipts

amounting
of
the
gross
national
means
that an amount

27%

product,
of

Federal

income

corresponding to that
proportion of the gross product is
paid out,
which the Recipients
may spend or save as they choose:

balance.

net

6.8

21.7

63.8

61.8

.9

.7

.4

6.5

10.7

6.1

it

be

can

spent.

A corresponding propor¬
tion of the total income flow cre¬

ated

by the

national prod¬
uct must, therefore, be saved by
the

gross

people if

a

rise

in

prices

which

tDebt

resulted in

bank

the

deposits

or

in

increase

an

The
three

Percent of gross national

21.3

with the

aid

has
of

of

shown

us

appropriate

trols, and thanks to the
sense of

the

past

refund bonds,

shown

38.0

32.5

the

in

the

General

table

By

continued

lieve that, with suitable
controls,
and with the* continued

coopera¬

in

and, if

tax

involve
pressures

at what point of time

so,

these will

disappear.

relaxation

ture

will

inflationary

the tax front

continuing

of

The prema¬
efforts on

our

might jeopardize the
of

success

the

eco¬

nomic

stabilization program.
the other hand, too great

On

delay in

adjusting

the

tax

structure

and

rates

might jeopardize the post¬
war maintenance of
high levels of
employment and business activ¬
ity.

■

The

problem of adjusting taxes
the shift of emphasis
from wartime objectives to
post¬
war objectives will
require fore¬
sight and coordinated action. The
match

to

Treasury

has

been

cooperating
departments

agencies and with the Con¬

gressional Joint Committee

on

In¬

ternal

in

the

Revenue

and

is

Taxation

post-war periods.

1.7

2.5

2% '

2%

6.5

91,

in

plus

the

rounded

by

commercial

the increase

and

5%

14%

shown

as

stamps,

Federal

in deposits

notes and national

by

the

excess

on

profits tax

Reserve

Banks,

the Treasury

in

bank notes,

less

as

for

the

the increase in

necessarly

add

all of the increase

during the

program

pressure.

A large in¬

currency

took

place

during

the

in¬
crease in money supply could be
furnished, under existing statutes,
only ] by a substantial absorption
of debt by the banking system.
Also, individuals and corporations
paid back substantial amounts of
and

this

necessary

debt, including debt held by the
banking system, offsetting in part
increase

in

commercial

bank

holdings of Government securi¬
ties; and increased their savings
deposits in commercial banks sub¬
stantially during the period.
In
the case of many business enter¬
prises, the proceeds of inventory
liquidation and depreciation are
held

in

the

form

of

deposits

to

facilitate reinvestment in the post¬

period.

war

Furthermore, expe¬
a large pro¬

rience has shown that

portion

of

the^ demand

part of their per¬
manent savings and has not en¬
owners

tered
the

into

tion.

by

war are

of

economic

Civilian demands

made

active

circulation

for

serv¬

ices.

is eased

on

direct

con¬

trols, such

Policy

as priorities, rationing,
ceilings,and price ceilings.
High taxes on war profits and on
large incomes,
moreover,
have
helped to gain popular acceptance

of the stabilization program.

The

eightfold increase in tax
has been accomplished in
successive stages, thus minimiz¬
ing shock to the economic system.

yields

previous tables indicate,
expenditures on ac¬

wartime

tax
policy has
adopt the tax structure
important wartime ob¬

large

men

revenue

and

women.

.collections

on

the debt, for

ending June 30,
to less than 2%

year

amount

lower

will probably be at a

level,

and

certainly

be

after the

war

the

will

debt

somewhat
than

larger
The in¬

now.

charge will thus represent
larger proportion of the national

product; but it will still be a re¬
latively small proportion.
The
payment of interest on the debt,
furthermore, does not decrease
the

tion

or

transfer

of taxation according to

ability
to
pay
has
been
met
through heavy reliance on pro¬
gressive taxes, through special re¬
lief provisions to alleviate hard¬

from

to

close

avenues

of

escape

from

ing

just taxation. The budget¬
and payment of taxes have

been

made

convenient

more

through the introduction of with¬
holding
and
current
payment
methods.

Individual

returns and

income

tax

compliance have been
,

conditions require.
period, however,
the tax system must be readjust¬
ed to the then existing fiscal and
economic
needs.
A strong tax
long

as

war

For the post-war

debt

as

rapidly

siderations

as

permit.

economic con¬
But selective

consump¬

capital expansion. It is a
operation by which the
collected

paid to the
also

and

taxpayers

numbered among

the taxpayers.

The burden of the debt,

there¬

fore, consists of the necessity of
collecting
a
large
amount of
money from some persons and re¬
paying it* to others, and of the
possible
fects
tion

economic ef¬
redistribu¬

adverse

of

the

resulting

income

of

upon

of the national

amount

the

This bur¬

product.

however, and it
major object of fiscal

real one,

a

a

period to

policy in the post-war

debt in

reduce the amount of the

compatible with
maintenance of full employ¬

far

so

the

this

as

is

ment.

borrowing during the war¬

Ail

time period has been by the issu¬
ance of securities, the interest on
which

is

income

a

to

exclusive

The

such

pub¬
achieved

permanent part of our

lic debt

policy, has been

without
the

any

substantial increase

interest

securities
it

the Federal
issu¬
securities, which is

subject

tax.

of

ance
now

in
as

for

holders of the debt, who are

ships, and through continued ef¬
forts

national

gross

amount of the interest is

should be

test

the

available

taxation have not been sacrificed.
The

of

amount

product

den is

heavy wartime taxes
a large part of the financial
cost system must be maintained, for
of the war is being paid currently
post-war expenditures will be far
by wartime civilians instead of 'higher than pre-war expenditures
being deferred to be met by re¬ and we should plan to reduce the
turning service

fiscal

Moreover, standards of equity in

Wartime taxes must continue

Through

The

country to service this debt.

of,the anticipated gross national
product
for
the
same
period.

wage

greatly simplified.
Tax

to

there¬

controllable: and

more

the strain

stabiliza¬
are

as

purchase of goods and

been

present

terest

totals.

to

which

the

the

the United States

.

will not

and bank de¬
posits was required by the doubl¬
ing of the gross national product

period;

that

leave

large public debt. There
question of the ability of

the

1945,

7%

table

Treasury.

and

in the debt absorbed by the bank¬
ing system has contributed to net

in

a

no

the

13.2

24.8

restricting the
growth of the debt, thereby mod¬
erating post-war fiscal and eco¬
nomic problems.
By channeling
billions
of
dollars
of
spending
power into the Treasury, wartime
taxes are strongly buttressing the

crease

certain

will

Production

absorbed

page

balance
are

no moans

jectives.

bilization thereby achieved. I be¬

periods

count of interest

product

debt

on

Fund

Note—Figures

con¬

people, this
higher rate of savings can be at¬
tained in fact, and economic sta¬

problem

immediate

As

in the hands

currency

retirement of Federal Reserve Bank

that,

the American

difficult

any,.. reduction

after the

is

and matured debt.

flnterest-bearing

to achieve

common

the

should

rates

It

51.2

57.3

14.8

3.6

♦Interest-bearing debt absorbed by nonbank investors,
page 91, plus the entire increase in United States savings

Our

experience
years

and

if

commer¬

public

is

to be averted.

from

estimated

its

which

upon

Little,

the
1.9

services

the

changes

an

important

war

absorption of debt by nonbank

earning of this in¬
come gives rise to no
correspond¬
ing flow of civilian goods and

that

the

transition

2.6
—

3.6

deposits
and currency accumulated by in¬
dividuals and corporations during
this period has been regarded by

but

Timing

guaranteed

and

General Fund

obligations

inflationary

16

:b-.-

billions, apparently reflecting the
approach to our effective wartime
productive capacity.
It is esti¬

ex¬

had been

measure

economy

The
tended

the

$51.1

of the impact
of Federal fiscal operations on the
rough

6

23

$57.4 billions in the fiscal

high
year

'.o.-,'

50

to

for the fiscal year 1945.

7

4 %

,

193

expenditures

is estimated at $54.0

ditures

6%

13

106

during the

amounted

receipts
V

1945

estimated

of

1941_i

expen¬

a

wartime tax structure to the
post
war tax structure will
present

a

Federal

$1.7

almost

are

Fiscal

26

unchanged at $45.7

excess

receipts

1943

of

23

billions for the fiscal year 1945.

over

1942

investors

Excess

49

receipts
advanced
from
$5.4 billions in the "fiscal year
1940 to $44.1 billions in the fiscal
and

Proportion represented by—

national

194

Net

1944,

through

1944—',

changed at $89.0 billions.

year

15)40

years

:

10

expenditures

remain

to

Federal

13

in the

For the

the

26

defense

billions

of

46

national

year

and

134

ning
fiscal

fiscal

rep¬

172

last fiscal year

program,

expenditures

product
receipts,

1942—

the
before the begin¬

the

expenditures,

1943—

billions in the fiscal year 1940,

of

increase in

♦Less

,

war

rapidly from

rose

of

national

gross

by

Government,

•

fiscal year 1945 are the estimates

of

15)45.

Those for the

flect actual results.

debt

public

gross

guaranteed

of

-

national product.* This is
following table:

expenditures
include both

outlays made by the Treasury for

budgetary
c

on

table

the

product.

1941

Expended portion of increase in public debt and

cial

add to totals.

in

peacetime economy of free enter¬
prise and competition.

with

" V'-.-'

..

and will not necessarily

mea-~
realizal

the

employment

study of tax adjustments for the

1940

receipts.

Note—Figures are rounded

shown

in

Less

activities of

INet budgetary receipts, i.e., total receipts less net
and

national

full

with other executive

been otherwise.

would have

creation

(Dollars

essential to

Debt Management

^Comprises principally Treasury outlays for Commodity
Owners'

of

post-war

trust funds.

and

are

tion

of the Federal Government which

Fiscal year
C.

ures

be anticipated
until
cessation of
major hos¬
tilities on all fronts.
An impor¬
tant-factor
affecting timing 0f
downward adjustments is
whether
the
transition
and

public
:

nri

indirectly from
the banking system and actually
spent by the Government during
the period. This includes the en¬
tire portion of the expenditures

represents funds bor¬

rowed directly or

product,

the

encourage

vate
enpenditures for consumb
tion and investment.
Such

public debt
guaranteed obligations during

and
Comparison,
Federal

Total

3.

the

at

1.8

.1

.6
5.7
.3

controls

1.3

1.1

1.0

tax

pensions and benefits
budgetary expenditures.

c.

f.

price increases.
While the removal of purchasing

direct

customs,

profits

excess

bonds

refund

te.

as

have facilitated and strengthened
the effectiveness of the taxation

Otfcer:

k;..-

unspent

ings. And the direct controls over
consumption and prices—ration¬

time taxes and savings

88.0

87.0

*

—

Total

c.

2.

corporations—._—

Government

72.1

26.0

6.3

1.7

Budgetary

•ib.

bonds, or
liquid sav¬

*a3n functions and adjustments

will be needed to

-

the gross

in

increase

^

power

War:
a.

war

from the market by war¬
campaigns
has
contributed
greatly to the
success of the direct controls, the

Expenditures:
1.

in

invested

been

lation of cost and

1945

1944

1943

1942

1941

1940

from taxation

r

following table shows the

The

referred to,

Program

receipts

essential to the whole.

after

Stabilization

etc.—have

billions of dollars»

(In

A.

15)45

Fiscal Years 15)40 Through

war

during the post-war adjustment.

ing,
of Federal

♦Summary

the

,

believe, that it would
be better for the economy of the
I

of

rest

throughout
period and

avoided

be

consider,

outline, some of the steps
which should be taken to adjust
in broad

inflation can

program,

will

the

Government on the

of the Federal

national economy, and to

fiscal year 1945.
I said in my report last

bilization
and

of

that approximately the same
relationship will obtain during the
pears

and

time is opportune,

that the

lieve

expenditures, and it ap¬

of total

upward

stantial

(Continued from page 2278)
The annual rate of Federal re¬

people with the sta¬

the

of

tion

Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2300

would

rates

above

have

the

been

on

Federal
which

rates

necessary

tax-exempt securities.
taxability of the interest on
pay on

wartime

debt will

both

ease

iO

The
the
the

problem of public debt manage¬
ment in the post-war period and
make
and

possible

better

a

more

balanced

equitable

Federal tax

system.
The
on

the

low

level

of interest

public debt (the

rates

computed

Number 4388

161

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE
of

2301

increased

spending is needed.
June 30, 1944, was
the burden of the Although individuals will prob¬
G. J.
ably
not
liquidate
their savings
debt and .will tend to simplify
bond investments on a
large scale
debt management in the post-war
Father as Bond
Period. Moreover, the fundamen¬ in the post-war period, they are
likely
to
spend
more
freely of
tal
factors underlying interest
their current incomes because of
Jamieson &
rates on Government securities,
(Continued from first page)
the sense of
security afforded by not
which apply also to interest rates
get them to discuss the sub¬ Treasury's Interpretation Is Cited
their savings bond
C. C. Rieger V.-P. of Bank
holdings. The ject."
in other fields, give no indication
Earlier, during the hear¬
In view of the Treasury's recent
distribution
of
savings
bonds
0f a change in the direction of a
ings, Representative Smith of Ohio reluctance to
MINNEAPOLIS, MINN.—Jamiecountenance
any
higher level of rates in the fore¬ among many individuals in the asked Assistant Secretary of State
son & Co., First National Soo Line
amendment to the Bretton Woods
relatively
low
income
groups
will
seeable future. Continued low in¬
Dean
Acheson
whether
the
16
Building, members of the New
legislation having as its purpose to
enhance tjie contribution of such
terest rates will be a major con¬
countries would each get a quota
York Stock Exchange and other
limit in any way the powers of the
spending
to
the
maintenance
of
in
tribution to economic stability
the Bretton Woods Fund. The
principal
exchanges,
announces
Fund, some Committee advocates
economic stability.
and the maintenance of full em¬
latter answered in the
the
appointment of Charles J.
negative.
of the introduction of
"interpreta¬
The
same
circumstances
which
ployment after the war, for low
Rieger as manager of their bond
In view of the statement this tive
language" are citing the Treas¬
interest rates stimulate business have made it advisable to concen¬ week
by Dimitry Z. Manuilsky, ury's own publication as proof department.
trate a large
and encourage new enterprise.
proportion of the Chairman of the Soviet
Mr. Rieger succeeds his
what
interest rate on
1 93%) lightens

Russia's

Borrowing during the war pe¬

wartime

debt

in

securities

of

delegation

at San

Francisco, that each of the

carried on with a short maturity will continue in 16 Soviet Socialist
Republics is an
constant eye to the transitional time of peace. The contribution
independent nation, Miss Sumner
and post-war effects of the types which such a
structure
of the is
inquiring how this will affect
riod has been

securities offered
and the
of investors appealed to.
The Treasury has so diversified
its offerings of securities as to
of

public

classes

quidity
will

the

debt

furnishes

of

be

the

to

whole

important

an

the

li¬

economy

factor

maintenance of full

in

employ¬

provide a security adapted to the ment in the post-war period. The
requirements of each major class funding of a major portion of the
of investors.
Long-term market¬ short-term debt into longer-term
able bonds have been sold prin¬ securities,
on' the
other
hand,
cipally to insurance companies would serve merely to increase
and savings banks.
Commercial the interest cost to the Govern¬
offered

been

have

banks

more

obligations

marketable

liquid

ment and

to

shift the risk of fu¬

ture

changes in interest rates (and
corresponding movements, in the
One-year certificates of indebted¬ opposite direction, of bond prices)
ness, and Treasury savings notes from the Government to private
Such a policy would
having a maturity of three years, investors.
but redeemable at the owners' op¬ increase, rather than reduce, the
tion after six months, have been factors making for instability in
especially attractive for the in¬ the post-war economy, as the
vestment of temporary accumula¬ Government is in a better position
tions of business concerns.
The to bear the risk of changes in in¬
having terms of 10 years or less.

principal emphasis in sales of se¬
curities

have

which

of

;

ten

after

demand

owners'

the

at

maturity

a

but which are redeemable

years,

days.

been investors, and-—unlike any class of
bonds, investors—-is also in a position to

savings

E

-At

,

terest rates than most classes; oi

has

individuals

to

series

upon

v.:

60

minimize it. I

fore, for

ent

offering securities to differ¬
classes of investors, the Treas¬

ury

has always borne in mind the

security will
depend, principally,

hold

it

upon

will

his

a

future

own

needs

and

convenience, and to a very minor
extent upon the nominal maturity
of the security. The indiscriminate
issuance
to

all

of

long-term

classes

of

would

not insure their

turity

being held to ma¬
their
original
pur¬

by

chasers, but would result merely
liquidation.

in premature market
•

The

adaptation

of the

securities

offered to the particular needs of
different
classes
of
investors,
taken in conjunction with appro¬

priate open market policy, obvi¬
ates the

possibility of

liquidation

of

disorderly

a

securities

through
the market, such as might have
occurred
had
a
single type of
marketable security been issued
to all.
Such liquidation as is in¬
evitable

in

will take

the

redemption

the
or

the

post-war

the form

period

principally of

of securities by

nancial

demand, rather

refinancing of these obliga¬
tions, to the extent that a net re¬
duction

in

the

outstanding debt
is not
possible, can be conducted
in an
orderly manner by the sale
of new
Treasury securities adapt¬
ed

to

market

conditions

the

at

time. Thus

one

instability,

the demoralization of

the

security

factor of economic

will

markets,

be

eliminated.
Smooth transition to a peace¬
time economy will be
promoted

by the distribution
securities

of

public debt

of

different -types
among various classes of invest¬
ors.

Corporations which have in¬

vested

their'

version

and

reserves

post-war

for

recon¬

expansion

For

than

more

have tried to

in

the

liquidity

of

After the war
they may sell or
allow their
holdings of certificates

to run

off and may

savings

notes

without loss of

The

redemption
principal.

composition

Qebt will
nomic

also

present their

^for

of

the

contribute

public
to

eco¬

stability by releasing

pur¬

chasing

powrer

through
cooperation
with
friendly
governments.
In
1936 we joined with England and
France in the Tri-Partite Declar¬
ation,
to • which
Belgium,
the
Netherlands, and Switzerland ad¬
hered,
to
maintain stable ex¬
change arrangements and to con¬
sult on important exchange problebs.
The Treasury also entered
into bilateral stabilization agree¬
ments with a number of Ameri¬

Republics and other friendly

can

countries.

helpful,
of

These measures,




while

not adequate to as¬
exchanges in a world

restriction

economic

and

ag¬
,

On the basis of this
the Treasury came to
that

experience
the conclu¬

international

monetary

financial

and

problems could be
only by broad cooper¬
all countries. After

dealt with

ation

among

extended

study by the Treasury,
other de¬

with the cooperation of

tentative

of this
proposals

lated for

an

partments

In

proposals
of

isters

Government,
were formu¬

international

ization fund and

bank.

an

drafts

1943,
were

stabil¬

international
these

of

sent to the Min¬

Finance

of

the

United

Nations for consideration by

their

After a year of
among
the technical

technical experts.
discussion

representatives of some 30 coun¬
tries, a joint statement was pub¬
lished recommending an interna¬
tional monetary fund.
In May,
President

Financial
held

at

Roosevelt

called

Monetary and
Conference which was

Bretton Woods, N.

H., in

What Miss Sumner is asking is:
Will a loan for a dam in the

Ukraine

be

guaranteed

by

the

Fund.

Answers
The

members

for submis¬
participating govern¬

"The Fund will provide a

and

the

voting

power when before or af¬
ter the Bretton Woods Fund and

plementary source of foreign
change to which a member,
outpayments

to the place guaranteed Rus¬

pens

sia

hap¬

the Board of Executive Di¬

on

rectors of the Fund and Bank?
the

Fund's

In

of the two places on the

case

Board

guaranteed

to

the

American Republics there is a pre¬
scribed voting procedure to insure
rotation.

Will there have to be

Twin

President
Traders

Bond

Club.

ex¬

'

Plohn Named Director

interna¬

Charles

apply for

Plohn,- a * partner of
Newborg & Co., has been elected

ternational

and

into

City

em¬

This assist¬

payments

_

Rieger is

director

a

of

of Industrial Finance

bal¬

Finance

General

He is also

a

director

Corporation

Universal Laboratories, Inc.

ance."

The Treasury

pamphlet

goes on

Treasury to Redeem

say that the Fund is required
"keep the member's current in¬

ternational
After

payments

in

The

balance.

outstanding 2%% Treasury bonds
of 1945-47

the process.

Thus,
whole
cated

it

pointed

is

tion

out,

on

the
now

for the Fund is predi¬
its loans being temporary.

case
on

Secretary of the Treasury
on
May 14 that all

announced

limited

period, the mem¬
ber will be required to reverse
a

called for redemp¬

are

Sept. 15, 1945.

There are

outstanding $1,214,428,950 of

these bonds.

a

Republics?

What about the deval¬

uation and

exchange control

pro¬

vision of the Fund? How will

they

THE

Manuilsky, has raised
interesting questions.

893 Seventh

Committee

Notice of Nomination of Directors

Vote

Chairman Spence announced to¬
tomorrow.

on

Some

other members, however, seem not
so sure that the discussions can be

completed tomorrow.

Mr. Spence

states the Committee members

are

Notice is

hereby given that in accordance with the provisions of the

Insurance Law of the State of New York the Board of Directors of The
Eaui table Life Assurance

following named
Society:

.

■''

as

is

whole

a

agreement
in the Enabling Bill."

on

level

balanced

of

coming
changes

high

a

one

Consolidation Coal

\

JOHN BASSETT MOORE, New York, N. Y;
Member of the Permanent Court of Arbitration,

I

The

JOHN J. PELLEY, Washington, D. C. f
President, Association of American Railroads. j

financial

cooperation

which will facilitate

the revival

and growth of world

WILLIAM ROBERT:, N»w York, N.
1
Ccumellcr-it-L? w.

trade.

'

The United Nations have shown

that

regard
international
monetary and financial problems
as an international responsibility
that

ation

By

orderly

and

the fund and the
providing stable and

through

bank.

and

be dealt with by cooper¬

exchange

encouraging

investment,

the bank

balanced
trade.

tional

for

a

world.

arrangements
productive
the

in¬

fund

WILLIAM SKINNER, New York, N. Y;
Silk Man ifacturer.

>

A certificate of nomination of the

with the Insurance

said candidates has been duly filed

Department of the State of New York.

The annual election of Directors of The

of the United States will be held at its Home
New York 1,

N. Y.,

on

Office, 393 Seventh Avenue,

December 5, 1945, from 10 o'clock a.m. to 4

o'clock p.m., and at said election twelve Directors, constituting one
Class of the Board of Directors, are to be elected for a term of three years
from

growth of interna-,

force

Together, they

prior thereto arc entitled to vote in person or by proxy or

can

January 1, 1946. Policyholders whose policies or contracts are in
on the date of the election and have been in force at least one year

and

peaceful

by mail.

ALEXANDER McNEILL. Secretary.

sound foundation

prosperous

j

Equitable Life Assurance Society

will make possible

a

A

Y;

SAMUEL A. WELLDON, New York, N. Yt
Chairman of the Board, First National Bank.

they

can

J

Hague, 1912-1938; Judge of the Permanent ^
! Court of International Justice, The Hague, 1921-1928.

of the lead¬

and

Sons.

Brooklyn, N. Yi
President, Brooklyn Trust Company.
/

GEORGE V. McLAUGHLIN,

terest in these measures for inter¬

monetary

Company.

New York, N. Y,

Member, Adolph Lewisohn &

increased.

ing foreign trading countries of
the world, we have a special in¬
national

ROBERT C. HILL, New York, N. Y;
Chairman of the Board,

SAM A. LEWISOHN,

Asia, and the development of
countries. As

V

Counsellor-at-Law.

s.

A

foreign investments
will make possible reconstruction
of the war-torn areas of Europe

new

Utah.)

Foreign Bondholders Protective Council, Inc.
u

Productive

and

'

J. C. B. EHRINGHAUS, Raleigh, North Carolina;

international

be

can

'•V?

■

'■J.

J. REUBEN CLARK, Jr., Salt Lake City,

are

trade

world

A■

York, N. Y/

Brooklyn, N. Y.
Chairman, Board of Directors,
Abraham & Straus, Inc. Merchant.

,

post-war period. All
economically depend¬
ent upon one another, both as
consumers and as producers. With
stable
and. orderly
exchanges
nations

Directors of said

•

Counsellor-at-Law. Chairman, Executive Committee, i

the existence of

upon

:

Physician and Surgeon,

/
ure

'

h.->s nominated the

as

EDWARD C. BLUM,

informs the "Chronicle" that "the

an

for election

candidates

WILLIAM SEAMAN BAINBRIDGE, New

Representative Thorn (D.-Ohio)
Committee

Society of the United States

persons as

getting together.

close to

Avenue, New York 1, N.Y.

some

day the Committee will vote
Bretton Woods

>

STATES ;

OF THE UNITED

autonomy? Miss Sumner, or rather
Mr.

EQUITABLE

LIFE ASSURANCE SOCIETY

operate when the USSR is recog¬
nized as 16 separate countries each
possessing, presumably, monetary

help provide

and world
will depend in large meas-

Mar¬

similar system to insure represen¬
tation of the 16 independent Soviet

sion

prosperity

the

of

Corporation.

to

What

its

may

,

Ji

give the member a
breathing spell which may be all
is required to bring its in¬

to

one?

the

.

Charles

will

ance

tries

of

exceed

inpayments,

temporary assistance.

Bank are set up, the USSR in¬
forms the World that it is 16 coun¬
instead

Dakota.

sup¬

happens

tion and development
ments.

and

quote

that

quotas

of

ger

underline that publication as fol¬
lows:

tional

the

Vice-President

Minneapolis in 1920 C. C. Rie¬
had been Vice-President of
the largest state bank in North

Fund

by the Government of the Ukraine
alone, which may have no credit
standing?
There are also such
questions as the following: What

the

the

the

on

aforementioned

barrassed because its international

to

ed

in

and

Bank."

Government of the USSR, as was
understood at Bretton Woods, or

international bank for reconstruc¬

peace

Such

C. C.

publicly
The pub¬

tions

Committee

Development.

loans must carry the
guaranty of
the Government of the borrower.

the

father,
Rieger, who has been elect¬

more

no

quette National Bank. Before en¬
gaging in the securities business

struction and

ternational

articles of

World

about

Company

lication in question is called "The
Bretton Woods Proposals, Ques¬
and

The Conference prepared
agreement for an inter¬
national monetary fund and an

July.

to

said

are asking is
Treasury has

trade in the

gression.

sion

the

were

stable

sure

•

when the stimulus

we

sta¬

they

than

a loan
guaranteed by the proposed
International
Bank
for
Recon¬

bilization

the United Nations

r resorves by such investment.

decade

currency

a

secure

•treasury savings notes suffer
a f

Fi¬

During the past year further
steps have been taken to assure
cooperation
among
the
United
Nations in dealing with interna¬
tional
monetary
and
financial
problems after the war.

1944,

impairment

during

Monetary and
Cooperation

jn certificates of indebtedness and
no

ones

post-war periods.

or

International

Treasury, either at maturity
at the owners'

than by sale in the open market.
The

no

long-term

the transition

securities

investors

any

into

fact that the time which the origi¬

purchaser of

need, there¬
large-scale refunding
see

of short-term Government securi¬

la.u ties

-

In

nal

Rieger Succeeds
Mgr. at

"Multiple" Nation Status
May Upset Bietton Woods

May 23, 3945.

.

COMMERCIAL & FINANCIAL

THE

•Thursday, May 24, 1945

CHRONICLE

?302
available more
promptly cash which would in
any event ultimately have to be
paid out by the Government.
Two recommendations deal with
the
post-war credit
under the
excess-profits tax. You will recall
that 10% of the excess-profits tax

Federal Taxation in Post-War
(Continued from page 2279)

in Federal tax
$5,400,000,000 in

increase

gantic

from

revenues

$44,100,000,reflects,
along with a rising national in¬
come, the great changes that were
made in converting a pre-war into
1940 to

the fiscal year

fiscal year 1944

000 in the

changes were

Its resolution
Joint Committee
staff and the Treasury tax staff
to work as a unit on the study
Post-War Taxation.
called

made not in one

fell

doing much more
than financing a large proportion
—currently almost half—of the
cost of the war.
They are helping
t) distribute that cost equitably.
taxes

time

are

of the Joint
followed to the
The tax staffs of the Com¬
and the Treasury under¬
series of joint studies re¬

The

Committee
letter.

mittee

took

reducing inflationary
pressures growing out of a war
economy operating under forced
draft,!'They are capturing ex¬
cessive war profits. They are sup¬
porting the price and wage stabilizatioh program.
They continue
today, as they have been, an esThey

the

on

the Committee,
resolution

to

which the
t xpanding war economy could adjust without endangering its sta¬
bility and productivity. Our war¬
but in stages to

swoop,

Revenue

ternal

of post-war tax problems and to
Those report their results and suggestions

system.

tax

wartime

a

Committee on In¬
Taxation
for

itself the Joint

are

ential' part of the war program.
We1 are still very much at war

a

aspects of

various

to

lating

was

Representatives of business,

lem.

labor,

agriculture,
and
other
many of whom had un¬

-

groups,

post-war tax

their own

dertaken

present their views. Out

ton to the

the

off-the-record con¬

many

ferences with these groups grew a

body of information and sugges¬
tions that has proved extremely
valuable in our post-war tax

work.

and

must' therefore

Together with the continuing stu¬
dies of the Joint Committee and

live

with war

Treasury tax staffs,

time'

same

we

continue to
taxes. But at the

must plan our post¬

risk of being
the even¬
tual return to peace.
With the
*.;Hbacks and shifts of production
taxes or run the

war

caught unprepared for

hostilities

the end of

to

incident

the first impact of
transition is already upon us. We
are * faced
with
the immediate

Europb,

in

should

done

bo

in

taxwise

be

made?

should they begin?

work

Even 'while

on

public

and

serve

as

was

war

intended to

never

post-war tax

a

system,

mtmyj of its provisions have a post¬

Thus, to permit

orientation.

war

costs

and losses which are prop¬

,

against wartime
from such
income even though they are not
incurred until after the end of the

erly

chargeable

income to be deducted

reduction in tax rates, will
materially improve the cash posi¬
tion of business in the reconver¬

any

period.

sion

surprise to
observers that, after several

has

It
some

come

of

there

should

over

that act set up a post-war
or
refund of 10% of the

excess-profits tax, to be evidenced
by non - interest - bearing bonds
times
war.

end

the

after

soon

designated

certain

of the

The post-war problems of
also loomed large

individual

the minds of the

the
in

Treasury and the

1943
legislation providing for withhold¬
ing and Current payment of in¬
especially

Congress,

come

in the

These measures re¬

taxes.

overhang¬

moved Hhe specter of
ing

tax7 liabilities which would

otherwise plague millions of indi¬
viduals when incomes shrink be¬
cause

of

cutbacks

peacetime

to

production.

Tax Studies
t

•

•

.

tax studies
under way by
both Congressional and Treasury
tax staffs.
Although a good deal
of spade work had gone before,
a resolution by the Congressional
Moreover, post-war

have

long

been

Internal Rev¬
15, 1944,
marked the beginning of formal
work on tax adjustments for the
transition and post-war periods.
The Committee, adding a member
from the minority party in each
Joint Committee on
enue

Taxation on June

House to

achieve equal represen¬

tation for

both parties,




constituted

official

concern

of business

period just ahead. It is true
business, taken as a whole,

in the

that

to have enough cash

appears

and

working capital to finance recon¬
to

and

version

carry

into

on

There are
firms, however, many of them
small businesses, which are not in
this fortunate position.
Some of
them, because of the termination
peacetime production.

of

war

contracts and the extraor¬

dinary expenses and adjustments
involved in reconverting to peace¬
time

production, will

experience

difficulties and at least

temporary shortages of

capital.

the

which

outlined

:

Joint

cash and

The program
Committee has

in its first report

is de¬

signed primarily to aid reconver¬
sion by easing the financial prob¬
lems of these firms.

The recommendations involve a

First,

program.

the

specific exemption for the excessprofits tax, which was raised from
$5,000 to $10,000 in 1943, would be
raised to $25,000 for 1946 and sub¬
sequent years.

12,000

small

burden

the

country's needs.

thus

plans

far

advanced

hv

of the war

themselves

Estimates

requirements

should not be

position that taxes

allowed

believe.

to

far' less than many

be

have

people

reduction
in tax rates. Moreover,
the Administration has taken the
lowered until the end

will

tions

pointed out that the
recommendations
of
the
Joint
Committee do not encompass any
It has been

This would relieve

from

corporations

of the

excess-profits

The effect would
the gross excess-prof¬
of 95% to a net rate

be to lower

be payable
period from
1947 to 1950.
But this may not
De
soon
enough. After the cut¬
back
of war production, many

these
over

refunds

would

indefinite

an

corporations face falling incomes
or extraordinary expenditures, or

shrink
below the level of normal profits
or even
turn into losses.
At the
same time, many corporations
in
these circumstances may have tax
liabilities

preceding year

for the

In extreme
cases
tl^eir >' financial
solvency
might be imperiled, while others

hanging over them.

hesitate

would

to

go

forward

plans for re¬
conversion. Under the Committee
their

with

boldly

taxpayers anticipating
carryback refunds arising out of
current year operations would be

program,

permitted to postpone payment of
a
corresponding amount of their
taxes currently due on prior year
income.
Thus the benefit of the
carrybacks would accrue to them
almost immediately. Refund with
years 1943, 1944
and 1945 would be made available

the

to

respect

leaving only 19,000 larger
corporations still subject to this
tax.
Small
corporations
have

tax,

found the

excess-profits tax to be

particularly burdensome, and the
Committee felt it advisable to lift
burden

during

the

reconversion years and

critical

thereby to

give small business every oppor¬
tunity to reestablish itself. Of the
several
recommendations
made

with

1946 and 1947.
In addi¬
granting this privilege of
deferring payment of taxes cur¬
rently due, the Committee pro¬

There

Japan. ;

are

this

for

grounds

will not be

the need for revenue

greatly lessened.
With the war
continuing on one front, it has
beerk estimated that the Federal
Government will spend for war
alone at the annual rate of about

'

$70,000,000,000.

incomes may

Their

Doth.

will

be

...

unlikly that there

It appears

"2.

serious general

any

un¬

employment during the period of
the Pacific war. This period can

expected to be one of reason¬

be

employment, since the
pent-up demand for goods and
services is expected to offset the
anticipated cutback in, war pro¬

ably full

Such

duction.

by

unemployment as

caused
unavoidable delays in the re¬
exist will largely be

may

peacetime
production. It is likely to be lim¬
conversion of plants to
ited to

few areas in which large

a

in

cutbacks

production will

little to help

do

could

war

General tax reductions

made.

be

these iso¬

lated areas.

Inflation will continue to be

"3.

danger during the period of the
Pacific
war.
Tax reductions at
a

be an important
starting a runaway in¬

this time might

during

factor

tion "to

flation, since they might increase
the demand for civilian goods and

provides for speedier set¬
tlement and payment of refund
claims filed by taxpayers at the
close of the taxable year.
It has
been estimated that the refunds

gram

resulting from losses and unused
credits for
1945
and 1946 will
amount to perhaps

and

fifth

The

of

dation

the

final recommen¬
Committee

is

to

the refunds which result
from recomputing amortization on
war facilities.
Under present tax
speed

up

law, emergency facilities certified
necessary for national defense
may

year

ends

amortized over a fiveperiod. But if the emergency
be

before

been fully
may

such

a

facility

has

amortized, the taxpayer

elect to have the amortiza¬

tion deductions recomputed on

basis of the

the

shorter amortization

period.
Shortening the period
gives rise to tax refunds.' In the
audit

and

ad¬

in

which

services
cess

already in ex¬

is

production.

of limited

Fur¬

tax reductions at this
might weaken-other anti-

thermore,
time

inflationary controls.
"4.- The armed forces

almost

of

these

universally

three and four times

as high
Federal tax yield.
If we are to avoid a large and
chronic Federal deficit, we will
have to retain a strong and pro¬
ductive tax system after the war.

run

our

as

pre-war

and

We

upon

are

eral
at

in a bitter
with Japan. Fed¬

still engaged

expenditures are continuing
never thought possible

levels

before

of

still

to

and costly war

the

our

war.

economy

reduction
into

A

larger sector

is

still

devoted

production for war instead of
turning out the goods and services
normally consumed in peace. As
to

carefully

be

tax

a

geared

designed to

program

strengthen the post-war economy.
Questions of the level and shape
come are receiving the

of taxes to

full attention of the Treasury and

Committee

Joint

the

tax

staffs.

of

taxes will,
course, depend on the volume
Government expenditures and

on

changing economic conditions.

level of post-war

The
of

final

the

With

revenue

goal

un¬

known, study and planning as to
tax levels must proceed in terms
of alternatives — alternative rate
the

meet

like—to

and

exemptions,,

schedules,

the

various situa¬

On the
experience in
taxation
a
number of
guide-posts as to the structure of
future
taxes.
Hence,
advance
planning as to the kinds of taxes
suited to our post-war needs can
more readily
go forward in con¬
crete terms.
You may be inter¬
ested in an account of some of the
problems the tax staffs are study¬
ing and some of the considera¬
tions they are taking into account

tions which may

other

develop.

past
provides

hand,

in their search for
From

solutions.

conferences and
correspondence
with

our many

extensive

impressions >

certain

taxpayers,

problems are*
uppermost in the minds of the

emerge

as

taxpaying
are

endure personal
economic hardships."

called

$1,000,000,000.

as

this

Congressional and Treasury -

be

the cash position

five-point
io'v;

a

as

substantial war profits,

years

working

at

the

mendations, while not calling for

excess-profits credits and'a carry¬
back of business losses. Further¬

payable

of

end

the

between

financial

credit

made

Committee

week ago, recommending
the interim

a

the Revenue Act of 1942 pro¬
vided for a carryback of unused

war,

more,

tax

,

with the

payments.

tax

reflected in the report

Joint

period

system will not

wartime tax

issued

yet

post-war credits would.be taken
currently in the form of reduced

European war and the end of the
war
with Japan.
These recom¬

the Treasury and the
Congress have continuously kept
the problems of post-war taxation
in their field of vision. Although
serve

also noted that all of the post-war

will

it

But

ties.

0

certain tax changes for

finance,

the

are

the

of

How soon
How rapidly

they proceed?
focussing

should

structure with the problem of tav
reduction.
I am sure you havp

ultimate tax liabili¬

part reduce

with respect
to these two years.
It is estimated
that post-war credit bonds appli¬
cable to 1944 liabilities will total
about $830,000,000, and to the 1945
liabilities about $710,000,000. Under the Committee program, these
not

but

it has served
the background for a number
confidential reports submitted
the Joint Committee in meet¬

the

period between V-E Day
and the final
end of the war.
Facing us in the future but not
requiring immediate action are the
basic problems of post-war taxa¬
tion; what long-run changes in
tax structure are desirable? How
much can taxes be reduced? How
should the reductions be distrib¬
uted?
In
what
order
should
interim

changes

and

Day
most

strong
position. The
as
Joint
Committee, in explaining Taxes can and will be reduced,
its tax rate
of
why they do not recommend that but the reductions will have to be
of 85^% after post-war credit.
to
existing tax rates be reduced at selective and will have to be made
The fourth
recommendation the
ings throughout this past winter.
present time, make the fol¬ with an eye to maintaining a high
would accelerate the refunds re¬
level of business activity and em¬
lowing statement in their report;
sulting
from
carrybacks
of
net
The Program for the Interim
"I. Federal expenditures can be ployment.
The limited scope of
operating losses and unused ex¬ expected to remain at a high level possible tax reductions makes it
v
Period
Normally, after victory in Europe, and thus all. the more important that every
The first formal results of this cess-profits credit.

anything,

if

what,

question' of

period between V-E
V-J Day will not for the

the

for

materially private groups, e.g., the Twin
Cities Plan, the Ruml-Sonne Plan
strengthen the cash and working
the Committee for Economic De'
capital position of businesses by
velopment Plan, and the CIO Plan
speedier return of moneys due
have coupled structural changes
them
under wartime tax laws.
is in the form of a post-war credit
in the tax system with
downward
The Committee felt that to defer
to be returned
to the taxpayer
revision of tax rates.
Tax reduc¬
such settlements might jeopardize
from two to six years after hostil¬
tion serves as an effective lubri¬
chances
of
sustaining
a
high
ities cease, the length of time de¬
cant for tax readjustment,
The
level of business activity and em¬
pending upon the year for which
ployment
during
the
difficult goal towards which people both
bonds evidencing this credit were
inside and outside the Govern¬
transition years just ahead.
issued. The bonds issued for 1942
The program would seem to be ment are working is thus not onlv
are estimated to run to $480,000,noncontroversial. lt is to be hoped lower taxes, but better taxes.
000 and those for 1943 to $820,Let me hasten to add that al¬
that the
Congress
will find it
000,000, a total of about $1,300,practicable to enact it speedily. though the direction of tax rates
000, for the two years. The Com¬ If this is done, I believe that busi¬ will clearly be
downward, how
mittee proposes that the maturity
ness men will go ahead with their
far down they will go is not yet
date of these bonds be advanced
production schedules and plans for apparent. However, any realistic
to Jan. 1, 1946, and that cash pay¬
the future, reassured that their
appraisal of the Federal Govern¬
ments would be substituted for
special
problems
will
receive ment's post-war revenue require¬
bonds which had been certified
every
consideration consistent ments makes it clear that reduc¬

Washing¬

studies, were invited to
of

the

prob¬

transition and post-war tax

stated, this interim program

As

make

would

to which

Probably the

public.

major concern of

business men

is

when—the excess-

whether—and

profits tax will be

repealed. Busi¬

generally expressed
the belief that they could not live
with this tax as a continuing post¬

ness men

war

have

measure.

In this

connection,

the tax was
adopted solely as a tax on exces- >
sive war profits and that there is

one

no

may

observe that

evidence

of

any

continue it after war
appear.

'

intention to
profits dis¬
-

these conditions prevail,
generally accepted H The so-called double taxation of
that no program of tax reduction corporation dividends is another
could be undertaken without risk¬ major concern of taxpayers who
are
looking at Hhe shape of the
ing serious inflation and endan¬

long
I

as

believe it is

gering morale on both the home
front.
V .' >/

front and the war

tax structure.
As you
it is claimed that the im¬
position of one tax on the corpo- ;

post-war
know,

of Post-War v rate income and another tax on.
Taxation yr.rsTo-'''-.v\ the dividends received bf the ;
be
spread over many months,
stockholder results in unfair douto
On the- principle of first things
with a little being paid in 1946
ble
taxation. ; This assumes, of
one involving any ultimate reve¬
first,
I
have
thus
far
been
discus¬
and the bulk being paid during
course, that the stockholder bears
nue loss.
Even here the net loss
sing
the
interim
period,
its
tax
the years 1947 to 1950. Adoption
the final burden of the corpor<*"" *■
will be
only about $160,000,000
problems, and- the proposals for
of the Committee proposal would
tion income tax as well as of the
annually, or less than 2% of total
solving them. But these proposals
tax on the dividends.
To the exspeed up these refunds arising
Federal corporate taxes.
are recognized by all concerned as
from recomputed amortization to
tent that this assumption is coronly
the
opening
chapter
of
post¬
The other four recommendations
such an extent that an estimated
rect, double taxation is- a real
for the
interim period are
de¬ $1,700,000,000 of overpayments of war taxation. The basic problems
problem. But to the extent that
of tax revision and tax reduction
signed to speed up the payment
tax for the years 1941 to 1945, in¬
for the post-war period still re- ,the corporation tax is
of certain tax refunds and credits
clusive, would be repaid in 1945 main. You will note that I bracket I from the stockholders in the lorm
to which businesses are entitled
the problem of revision of the tax I of higher prices to consumers
under existing
tax laws.
They, and 1946.

relief
small corporations is the only

for the

interim period, this

normal

course

ministration

of

such

refunds

Basic

Problems

would

shifted away

or

Number 4388

161

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE

wages to employees; double
taxation is more- apparent than;

.lower

This question of who, in the

real

analysis, bears the burden of
corporation income tax cannot
"be ignored in grappling with the
double taxation problem.
Numerous alternative'■£ methods

Some

Opinions

last

the

(Continued from
would be handled by the Federal
Reserve Banks under the
super¬

vision S(.hd direction of

suggested. Some would vir-;
tually abolish the present corpo¬
ration taxes. Others propose tax
credits under the individual in-.
;come tax with respect to dividends
received. Still'others would sub¬
tract from the corporation's tax¬
able income the amount of divi¬
dend payments made to stockhold¬
ers.
These different approaches
reflect more than merely the per-:
•gonal idiosyncracies of their pro¬
ponents.--They flow-:from sharp
diferences of opinion
regarding
•three basic questions, namely: (1)
whether or not it is proper and
been

But

much
in

the

(2), who bears the

rations at all;

final burden of the corporate' tax,

difficult it would be
-to administer-and comply with the
various proposed solutions.

•and (3) how

corporations could always be
on to
distribute: alT of
their income, the same final tax
"result could be achieved by any
'one of the several methods.. It
If

counted

j

.

Federal

Reserve has

fundamental

more

riod between the

a

interest

operation of the proposed
Broadly stated, Xthe
of
the
Federal
Reserve

institutions.

goal
is

,

to

help
maintain
through
monetary and credit action
a
high level of production
and employment.
The monetary
.

and credit structure of this

coun¬

however; ; is continually

try,

•

'desirable to tax income to corpo¬

the

fected

by ; international

tions.

The

would

work

stable

level

would

therefore

Fund

and

toward

of

goal.

whether we simply abolished the

'

corporation taxi pr: converted it
into a withholding tax; oh allowed
; dividends, like interest, to be de¬
'

computing

in

ducted

corporate

But in fact, cor¬

taxable income.

porations do not, and * cannot' be
expected to pay out all of their
earnings. The setting aside of re¬
serves for contingencies has long
been a recognized procedure, and
reinvestment ' of

the

serves

earnings

the principal method of

as

financing the growth of new, ex¬
panding enterprises/ Any attempt
to eliminate double taxation thus
raises the

vexing problem of what
tax treatment should be applied
to retained earnings.
major tax problem is
devising a scheme of tax¬
ing small business" which will help
preserve
a
growing competitive
The objective of smooth¬
ing the tax road for small busi¬

economy.

is

ness

is

no

widely accepted, .but there

general agreement

cise method of
An

is

rates

not

but

impact

concerned

has

fully

business

on

that of averaging

The

purposes.

taxes

with

tax

great

as

an

incentives

is

effect

of

willingness to incur
materially reduced by

be

can

allowing businesses
one

to offset their

year

against their

net profits in other
years.

A five-

six-year carry-forward of net

losses has .many proponents.

Re¬

duction of the risks, of business by
more liberal loss offsets
may be
a

effective means, of. stimu¬

more

lating business investment than
decrease

in

the

rate

of

tax

carry-forwards

levies

as

into
.

or

or

attain

our

subscription

and

the

periodic

flights of "hot money" in the

pe-

income

on

capital..,

are

X/ : /

*

ample, play
role in

equally important

an

the post-war tax picture;

They affect the entire population
a direct impact on com

and have
sumer

purchasing

kets.

To

strike

power and mar¬
the proper bal¬

between -the

ance

of taxes requires

typed

various

that each be

ap¬

praised, not in a vacuum,' but as
integral part of an overall tax
system.
an

.

Underlying Considerations in Tax
Planning

;

In

approaching the task of re¬
ducing and adjusting taxes for the
post-war
period,
certain broad
considerations
trol

of

most

These

appropriately
the

basic

s

;

;

j

considerations

well

are

known, but they bear repetitition
in the present context.

We

have

view, it is almost with
of relief
that one turns

capital

stock

tax.

and

a

sense

to the
declared-

value excess-profits tax. For here
is one
tax, or perhaps I should
call it a dual
tax, on which a con¬
census

All

are

can

truly be said to exist.

agreed that this tax should

oe

repealed, and only the question
°f
timing remains.
^ ^
,J

I. have talked;:

principally

of

business .taxes, both because they
rmse the

issues which

concern

this

audience .most immediately and
because they constitute such a
crucial

part of the post-war tax
Programs.
But it
goes
without
saymg that they are by no means
the whole
problem.

exemptions of

the

come tax and the

rates of

our

The rates and
individual

in¬

composition and

excise

taxes, for




ex-

initial

depend

funds.

quota

States

is

sub¬

set

the

on

The

total

for

the

million,

$2,750

before

noted that
post-war tax levels will need to
be

high to meet the
in

cern

revenue

needs

primary

con¬

post-war tax planning

raise

to

the

necessary

is

revenues

with the minimum, restrictive ef¬

fect

production

and

employ¬
High levels of business in¬

on

ment.

and

vestment

spending

consumer

required to

healthy,
This
consideration calls for appraising
are

ensure

full-employment

the

of

impact

change

upon

a

economy.

each tax or

tax

business incentive

on

hand and consumer purchas¬

one

on the other.
Although- the economic effects

ing power

taxation

of

of

are

first

impor¬

tance, the demands of equity and
fairness must at the

satisfied.

time be

same

Accordingly, the reve¬

nues

needed

to

finance

ment

should

be

raised

to

the

of

ability to pay.

Govern¬

according

the standard for the future,

v

direction

been

of,

the

made, in

simplification,

much remains to be done.
.

one

and

■;

buj

In at?

is -forcibly reminded that the

tion

oi their currency: which is
needed by the Fund in cur¬

not

rent
of

operations.

Initial

payment

subscription, either from
the $1,800 million in our Stabili¬
zation Fund or by the temporary
deposit
of
non-interest-bearing
notes, would not affect our money
market, since funds would
be
our

neither withdrawn from
ferred to the

If

other

members

they owned

nor

trans¬

market.

funds

used

to -pay for

here

the

gold portion of their subscription,

might

they

affect our market.
no effect, of course,

if

they simply utilized gold held

here under earmark since that has

from our
gold stock. Use of any deposits
they might have at the Federal
Reserve Banks would result in a

already

removed

been

reduction in the
the

Reserve

have

no

gold reserves of

Banks

would

but

To the extent that

subscriptions

member

by

gold

coun¬

tries drew funds from our money

market, however—either directly
through drafts on deposits at com¬
mercial banks, or indirectly as
through sales of U. S. Government
securities—they would have the
same effect as an export of gold

commercial
channels.
operations might call for

through
Such

Federal Reserve action in the open

elsewhere

of

market

in order to

prevent disturbances in the

credit

situation.

More

interesting

are

Taxation

is

an

instru¬

such

would

of

Bank

and the

the

Fund

leave

the

course

To

use

in

and

the

supply and member bank

money
reserves

'They would, however,

influence the

capital market and

of

national financial policy to this

country's representatives
Bank

the

business

American

cycle.
the

resources

Bank would need to have the

been

the

this

was

the

credit

situation

in

System

would be

not

only

deeply concerned with the proper
administration and success of the
Fund and the Bank but immedi¬

ately affected
their

in

many

technical

these

the

achieved

Federal

authorities would
sisted

in

ways

operations.

institutions

objectives,

supply.

The Fund could acquire
from our initial cur¬

subscription
or
through
sales of gold to us, or, to mention
a
somewhat
remote possibility,

rency

by
the

To borrow here,
Fund would need our Gov¬

borrowing.

ernment's consent.
Use of our initial currency

scription,
would
billion

would

the

extent

that

it

from the $1.8
in our Stabilization Fund,
increase
the
supply of

be provided

market. 'To the ex¬
that dollars were provided by

money

tent

to

sub¬

in

our

as

Committee

their

be

task

by
If

their

Reserve

greatly as¬
applying

of

A

desirable.

too
at

rigid.
the

The standard

of

cost

United

the

On the other
render

the
of

hand, they should

substantial

attainment
the

assistance

of

the

and'

Fund

to

objectives

the

Bank

in

when

returned to the
high an exchange
rate for the pound and as a
con-^
N
sequence experienced depression ^ "
and unemployment in their great
exporting industries. Every time
a domestic expansion program was

gard
of

the

to

institutions

both

in

technical
so

to

as

position at all times to

a

re¬

operations
be

pre¬

sent their considered views to the
U.

Governors

S.

and

Executive

Directors of these two institutions.
The Board of Governors of the
Federal

Reserve

Congressional

ance

of payments to

adverse

balance

develop.

put

The

pressure

on

British gold reserves, and in order
to remain on the gold standard

domestic

ment

program had to be
The Labor Govern¬

repeatedly frustrated by

was

this situation.

when

But

England was forced
standard in 1931 it1
was no longer necessary to retain
the pound in its fixed relation to
gold. The British discovered they
off

the .gold

free

were

to

pursue

domestic

a

favors

expansion program year after year,

of

and

System

ratification

view to absorb¬

unemployed there was
a tendency for British
imports to
expand and for an adverse bal¬

interrupted.

should be fully informed with

a

the

the

authorities

crisis.

they

sible.

Reserve

national

a

standard at too

whatever way consistent and pos¬
The

was

found this out in the

undertaken with

in

neither feasible

It could be altered only

The British

'20s,

^

international

the

to

return

nor

' ';

they stand.

as

ing

States.

Eco(

ments

would encourage
and
employment

high production

for

Development,
which
is
quite consistent with the Agree¬
,

monetary and credit policies that

the

Bretton Woods

they did it very successfully.
England was well on the way to

proposals, for rea¬
in a statement for¬

prosperity by the end of the 1930s.

warded to the House Banking and

This experience has made a deep

Currency Committee

impression

given

sons

March 21,

on

this

1945.

In

cated

by

statement,
the following

to

indi¬
excerpt,

and

addition

the

as

the Board recommended

the

enabling legislation now
Congress of provision for
council or committee charged

as

on the British public,
they look ahead to the un¬

certainties of the post-war years,
last thing they are prepared

to

-

do

is

bind

to

before

revocably to

a

under

the

with

responsibility

of inter¬

preting American international fi¬
nancial policy to
this country's

the Fund and

on

connection

legislation

sion for the

with

the

en¬

before

now

provi¬

a

establishment of

a

Committee to provide
necessary
direction
and

the

or

guidance to the representatives
of the United States on the gov¬

erning bodies of the Fund and
the Bank and to interpret to
and

ir¬

standard.

other countries

Many

feel the

There is-no method by
they can be forced to re¬

same way.

which

Nor

Vould

it be wise to try to force them to
do

No

so.

one

confidence

at

can

name

this time

a

with

system

exchange rates that
would
permanently
appropriate
under the shifting conditions ' of
the post-war world.
The Mone¬

tary Fund, if adopted, would ac¬
complish the utmost that can be
achieved in this direction.

Individual

members

bound to maintain stable
rates

and

'

would

be

exchange

free

Members of this

should

mission of the international group

of the heads of the ap-

they could depart from this fixed

policies

monetary

United States.

consist

themselves

fixed exchange rate
gold

international

the

convertibility for
trade purposes as under the, old
gold standard; but with the per¬

them the international, financial

.

a

turn to that standard.

Bank:

abling

in their

dollars

the

of

gold standard is

It is clear that the Federal Re¬
serve

tion

nomic

the

United States.

Council

increase our money

gold standard

throp Aldrich to the recommenda¬

of

consent

Council

would be to

have
Fund.

from reestablishment of

way

the international

country would not
be so extensive a"s to have tempo¬
rarily unsettling effects on the
domestic money market, and there
are numerous automatic and dis-r
cretionary controls in the Fund
to achieve this result. But there
would certainly be substantial use
of the Fund's dollars from time to

acr

the

country; and before
granted, presumably
full consideration would be given
by the monetary authorities to the
effect of the proposed borrowing

sent

of any member

United

criticisms

ways of dealing with the
problem of international monetary
stabilization have been proposed.
Alternative suggestions range all

of

the

specific

leveled, against

proposed by Kemmerer and Win-

Over the

transactions
paid
States with dollars

Council in the enab¬

a

Other

prove

members

the

on

Provision

Criticisms of Bretton Woods

Many

favor of the addition of

other

Fund.

con¬

run,

When

the

legislation would not call
for any change or modification
of the Articles of Agreement of
X. the Fund or Bank."
' J; :

of course, it is hoped
that the Fund's use of the currency

going concern.

a

as

long

and

for such

Congress (Bretton Woods Agree¬
ments) the Board is strongly in

ties

assure

ling

would

unaffected.

would

terpretation of American Inter¬

money market as an

those

Council

a

reasonable continuity in the in¬

Ac¬

Operations of the International

the pos¬

the

-

under the agreements,
in cases in which the
right to decide will be retained
by Congress. Establishment of

Bank would have less
complicated
effects in our money market than

Fund?s activi¬

two.

designed to serve organized
society. If it is to be of maximum
service, it must be adapted to the
changing
economic and social
needs of that .society. ■■■■'"

our

"In

quired from the Fund, the effect

ment

effect.

Money Market

the

current

ditions.

on

Supply

plification. cannot go. Thus, one
criterion of. a. well-designed tax
system may clash with another,
and theu tax designer is charged
With the.task.of reconciling the

the post-war .tax
system is another widely desired
end; But it is important to dis¬
tinguish
between
stability
in
structure and stability in rates.
The tax system should be respon¬
sive to changes in economic con¬

net

no

representatives
Effect of Fund on Currency

demands, of equity in the tax sys¬
tem set a,limit beyond which sim¬

in

have

The International

direct effect on our money

market.

time.

Stability

fect

on

remaining $900 million by
Treasury borrowing in the mar¬
ket.
At the outset, however, the
Fund Agreement permits members
to
deposit
non-interest-bearing
demand notes in place of that por¬

sible effects of the

;

ritating compliance burdens. Much

has

Fund

the

long-established principle
This principle
underlies Federal tax policy of the
pre-war and wartime and remains

progress

Stabilization

our

There would be

already

With these complex question^ tempting simplification, however,

in

the

the

Congress
proposes
that
ultimately we should pay
$1,800 million of the subscription

con¬

decisions.

Ease of administration and com¬

not to eat

of

would

of

United

from

pliance is also a vital considera¬
tion in devising post-war taxes.

carry¬

on

now

1934

would

general

effect

help

a

both, if taxes. intended

The

source

Moreover, especially at
high rates of taxation, businesses
Simple and uniform laws are the
widely fluctuating .incomes best bulwark against expensive
must be given: the;
protection of administration and costly and ir¬

backs,

operation

monetary re¬
several factors.

our

depends

scription

"with

loss

affect

and

on

profits.

Just how the Fund's
would

trade

and

except

since
the
Fund
would,
through its members, return the
money tq the market, x Similarly,
provision of dollars through the
Fund's borrowing in bur market

r

tem.

one-quarter of which must be paid
in gold. The enabling legislation

income for tax

adverse

the

on

net losses in

or

pre¬

aspect of business taxation

which

risks

on a

achieving this epd.

inflows of the

gold

The disruptive practices that aU
tended
the
reduction
of
world

1929

proval

pro¬

duced

1930s with their attendant prob¬
lems for the Federal Reserve
Sys¬

and

of Government. The

Another

that of

great

high

by about one-half between

mar¬

would be

import of gold.

the

subscription.

•

net effect

no

of

Bank

!"<•'•'.

ag¬

ket,

quisition of dollars through sales
of gold would have the same ef¬

trade

;

contributed

Treasury borrowing in the

System. Through achieving a bet¬
ter international
balance, the Fund
would help prevent a recurrence

world

a

wars

difficulties and

One of these is the form of initial

af¬

;

would be immaterial, for example^

our

gravated the monetary and credit
problems of the Federal Reserve

serves

transac¬

the

-

2279)

page

greatly to

Bciard

our

of Governors.'

treating corporate income have

nt

Bietton Woods

on

2303

or

Committee

of

the

;

propriate agencies of the Gov¬
ernment to be designated by the
President.
group

It should be

comprising not

a

small

more

than

crisis.

justment

the pro¬

the

the

Since

members.

able
vided

to

have

by

the

law

Executive order

Council

pro¬

rather than
or informal

by
ar¬

rangement. The Council would
not only advise the American
Governors and Directors

on

the

Fund and the Bank of its views
with respect to

the financial and

for exchange ad¬
exchange control that
Fund agrees it would be in
interest of the membership as

good

so

posed institutions are to
be
permanent, it would be advis¬

five

without a national
That is, if they could m^ike

arrangement

a

case

a

or

whole, action along these lines
be taken.
Under the gold r

could

standard such action could not be
laken
a

even

if necessary to correct

fundamental disequilibrium.
Alternatives

X

Two
Woods

alternatives
have

ized to act for the United States

The Committee for

which

require

ap¬

Bretton '

that

consistent with the Fund and

are

matters

to

been suggested

monetary policies of the United
States but would also be author¬
in

*

Bank

Agreements as they stand. ;
Economic De-

(fnntimiprl

on

nage

2304)

:

■Thursday, May 24, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2304

franc monies

Some

Opinions

Bretton Woods

on

(Continued from page 2303)
velopment has proposed that the
Bank be given specific power to

during

lege of drawing on
sources/a
series of

Recon¬

only. They would

be

not

could

Fund

The

drawn

Possibly

desires.

to

country approve the Fund imme¬

wouldl

a

would

rely

relief, recon¬
and other forms of

upon

struction loans,

done without

could

This

decades.

ensuing

be

change in the

any

its £ members

pro¬

is that the immediate post¬
problems are likely to be such

that all available instrumentalities

cope

with them successfully.

in order to

be used

the
has

the

futile longing

that involve

of the type made by the American
Association.
They are

matic

are

has

be

the supposition that the

proposed that this system of

which

would

the

This

very

essence

Fund.
is

The

purpose

the

Fund's

of the

rrtegl

to

be

eligible

Members

to

the

use

foreign goods and

Since

from /the

maintain
and

to

able

be

to

stable

eliminate

Fund,

they
to

exchange rates
restrictions on

shall

results in
from

be

balance

franc

ing

,

/.:

in

of

gold

This

total

the

period

prior

the international
If a
single country's ex-

England.

into

connection

in

ment

Forces.

"A. Any

further

:'?yA

.

sterling

made

dur¬

Account

Article
be

B

4

re¬

below.

determined

posi¬
use of

the

purposes

with

(2)

above

in

results

ernments.

'

of

the

balance

the

to

United

shall

access

Gov¬

the

Bretton

the

Woods

reasons
are

attitudes

Anglo-French Financial

1. The

Agreement of the 12th December,
1939, is hereby abrogated, and no
claims shall be made by either
contracting
in

other

the

Government against
respect of its pro¬

visions.

settled

be

indicative

of

Credit

proposals adopted

by

as

No informed person can suc¬

this

disagree

with

the

pur¬

sterling

ulated

for

the

the

most

objectives,
of

case

the

part

especially
Fund.

in

were

in

the

jections

now
being raised were
carefully considered before agree¬

ment

was

ence.

Agreement by 44 nations

two

reached at the Confer¬

effective

ments is

no

economic

instru¬

small achievement in

history

of

the

world

should not be thrown away

ly.
us

on

and

light¬

To meet the problems facing
after this war, we will need

the Fund and the Bank and many
other instruments as well to win
the

kind

of

peace

fighting for. "

we

have been

as

and
the

be¬

shall be reg¬

to

repayment of sums
French Treas¬
of debts con¬
tracted in France prior to June,
1940, by the British Expedi¬

/:)//. (b) The

disbursed by the

in

ury

Repayment of the balance
Govern¬

(c)

in

United

sterling

a

Kingdom)

2.

The

credited
•

■

1

(a)

B

account
in

the

following
to

As

to

shall
be

name

open

called
of

the

shall be

as

(ii)
their

Kingdom

claim

(a)

possible after

the signature of this Agreement
the
French
Government shall

to

the

on

Account

French

mentioned

in

Article 1

(1) (a) above, the sum
of £40 millions, which shall be
deemed by the two contracting
Governments to be the equiva¬
lent of the excess of the sterling
monies in the United Kingdom
belonging at the date of this
in Continental France

of.the

shall waive
payments by

resident
over

the

material

of the

(b)

behalf

on

furnished

Government d*

Government

Kingdom

persons

all

Turkish

into Account B, by drawing

Agreement to

to

War

the

pay

A

Government

The

the French. Government for—

Account B:
soon

avail¬

the French Gov¬
ernment to the Finish Govern¬
ment on behalf of the Govern¬
ment of the United Kingdom.

able in 1940 by

United

sums

Ad¬
1940.

Reciprocal

the

account set up in

War material made

(d)

\

-

The Bank of England (acting
agent for the Government of

as

respect

tionary Force.

vances

1.

the

of

United States
the account of the French
in the

/Government.

this

;7

Article 4

7

of the

16th June, 1940,

the

on

ment

SECTION 2

•

Kingdom

ernment of the United
>

of

Gov¬

The transfer to the

(a)

all

in favor of the French

French Government.

Conference and many of the ob¬

settle¬

area

Annex

before

during the Interna¬
Monetary and
Financial

-

for

relations

areas

Account

and

.)•/>///
coming into

well

as

Government
claim to

munition contracts in course

Agreement.

to

These

area

adopted after long
and serious study and discussion
tional

between

their

waive

payments by the Government
the United Kingdom for—

on con¬

by the technical provisions

out

set

of the Fund and the Bank,
matter of fact, criticism

directed

(i) The;5French
shall

which

Agreement

monetary

as a

methods

i

of

tween the two

in July, 1944.
The
proyoked by this in¬
healthy and fruitful so
their purpose is construc¬

>

the

■

ments between the franc

general

ing

the

lie in the international Monetary
i

Article 3
As from the date of

are

all further fi¬
against one another
arising out of the prosecution of
the war have agreed as follows:

execution

Hampshire,

the

for these

balance

.

Governments being

two

nancial claims

United

be: agreed

terest

is

Agreements

given

cover

by

the

the two Governments.

as

Woods, New

The

2.

of

Kingdom,

the methods suggested for achiev¬

toward

to

discussions

and,

to that country.

different

ditions

the

poses

it

the

.

desirous of waiving

due

of

'

-

//VArticle 5

1946,

a

sterling due from the

Government

cessfully

as

purposes

Bank

shall be carried forward

tive.

transactions

the

Article

long

Even after

resources

and

shall not have been reimbursed
on
the
28th
February,

1

be

agreement between the two Gov¬

amount

Kingdom,

may

paid into or out of Account B by

)/>////

total

sums

the
the

.shall not be sufficient to
the

sup¬

to

(b) If the payment mentioned
sub-paragraph / (a)
above

force

a

the Agreement make

and

and

2

44 nations at Bretton

postpone

the Fund's

in

with

furnished / for the civil
p o p u 1 a t i o n' of
Continental
France
by the Allied Armed
plies

discharge

1. If,
on
the 28th
February,
1946, the calculation referred to in

this

wide interest aroused by the pub-,

deflation- 1

con¬

the

the entry

to

into force of the present Agree¬

as

by agreement between the Bank

Government shall be

Govern¬

Kingdom for

of

shall

France

the

to

ment of the United

up

into
in

to

be

Sums due by the French

year

made

are

ferred

shall

sum

one-third

currencies

the

(b)

the

of

This

Governments

a

ending the 28th
February, 1946, from the ster¬
ling area to the france area, ex¬
cluding those payments which

this end the draw¬

ad¬

by agreement, between the two Governments.

the

settled

Government

equivalent

follows:

deficits and to give them

attitudes

on




-the

in

struck

the

determined

;

due

Gaulle.

de

on

'

verted

the
The

position of other countries.
ports leads to defensive

in

further

lay would prevent temporary dis¬
turbances
from
having serious

drop in any

1946,

forward

above

francs

(a) The

debtor

ernment

individual

was

Fund./ The

the

porary

the fact that assistance

reperdussions

(2)

in

of

French

time, to correct more deep-seated
maladjustments. If a country did
not take advantage of the time
gained by drawing on the Fund to
put its house in order and correct
its position, the Fund could deny

would be forthcoming without de¬

■

1

ings made in the currency of the

balance in

particular country, it could
member from drawing

serv¬

foreigh exchange transactions. In
many rases

the

quite clear that the Fund is to be
used to help countries meet tem¬

mem¬

undertake

any

resources.

not using

stated

bers could confidently expect as¬

sistance

of

of the Fund's

could

it

with

accordance

of

receive help in meeting pay-

would

that

in

could

ice!) without delay.

carried

United Kingdom shall

of the creditor Gov¬

currency

Article

additional amounts if the member

'

and

a

stop
was

proceed
with confidence only if assured
that they could come to the Fund
ments for

with

core

advance the conditions they must
Fund/

be

February,

Government

after it
general exchange

commenced

had

it

of the Agreement
members should know in

that

28th

balance

/

Acounts.

be

Kingdom

of

by

the

follows:

of the official rate of exchange in
force at the date of each drawing.

members

not in
to make appropriate

tion

and

A

shall

Furthermore,

transactions

indi¬

misinterprets

view

use

had commenced

country which

fit

this

currency of the
creditor Government on the basis

sufficiently stable condi¬

ditions

)

-

in

resources.

the

•

that most

satisfied

transactions

to

respective

balance

ernment. > To

vote to put them

discretion

the

to

tion to warrant

vidual country.

;

no

available only after preliminary
investigation and subject to con¬
tailored

the

Government of the United King¬
to the French: Government,

and the French Government

made

vances

dom

the

their

the

powerful that they must

left

•

were

funds

make

require

so

was

providing assistance be scrapped
altogether and that the job of cur¬
rency stabilization be given to the
Bank,

balance

or

This

of the Fund. The Fund
could postpone the beginning of
its exchange operations until it

Hence the ABA

to abuse.

the

total of the payments in

dom

managers

have auto¬

drawing rights which they

are sure

of

reimbursement

as

ish Prime Minister and General

the

balance

paring the drawings to date of the
King¬

as

shall not have been reimbursed

Article

28th February, 1946j
balance shall be struck by com¬

on

(a)

ernment of the United

by the French Gov¬

A 2.

On

soon

available, the following
/ 'A \ ■
) /■■■■!.
The sum due by the

'/■

French Government to the Gov¬

If,
on
the 28th February,
1946, the calculation referred to in

England at

are

sums:

2.

England and in the

out of Account B, as

funds

Agreement of the 7th /Au¬
gust, 1940,0) between the Brit¬

shall

Government of the United

operation prove insufficient
a
more
powerful set of controls
could be brought into play. They

Bankers

on

remainder

the Bank of France.

a

into

change in the Agreements as
they now stand are the proposals

members of the Fund

of

Bank

account of the Bank of

paying

which

practically

no

based

the

3. The French Government shall
pay

which

on

account of the Bank of France at

Should these automatic controls

fdr the old gold standard and the
measures

sub¬

entry

in accordance with the terms of

the

conditions to be agreed between

mentioned- in

during

the

date

the two Governments.

milliards

area

to

the latter to
the French National Committee

ernment,

If the figure of

prior

(c) If the payment mentioned
sub-paragraph
(b)
above
shall not be sufficient to liqui¬
amount due

of

Bank

the

sums:

into force of the present Agree¬
ment.

this

so

period

'

The ABA Criticism

iln between

of

utilize

£100 mil¬
lions mentioned in sub-paragraph
(a) above, or the figure of Francs
20

back at the end of
year any foreign exchange it
drawn from the common pool.

start

\

v

this is necessary,

paragraph (b) above, should prove
insufficient, the two Governments
shall consult together with a view
to increasing these figures as nec¬
essary in order that there shall
always be sufficient funds in the

year

any

as

account

shall

England at the Bank of France.
(c)

the

far

so

the

for

itself

find

;

This Account A will
by the Government of
United Kingdom to provide

funds,

the

in

be utilized

the

Forces in the franc

the

on

far as is neces¬
sary, to pay the remainder of
the amount due by them after
the payment in gold mentioned
in sub-paragraph (a) above.

account

an

pay int*

following

penditure of the British Armed

Government, the French

balance, in

Kingdom).

without the Fund's
consent.
Finally, there are the
so-called
repurchase
provisions
which require any country which
has gold or other monetary re¬
serves
in excess of its quota to
in

ever,

have to

country

Kingdom

Kingdom shall

of the

of
the
United
Kingdom to the French Govern," ment in connection with the ex¬

England.

Government

of the Government of

name

United

the

Hovernment
the

th!

"/)/

Government

If Account B referred to

French

open

paid at the request of the Bank of
England (acting as the agent of
the
Government
of the United

subject to an
absolute limitation.
It could not
draw more than 25% of its quota

that

will

pressure

the

would

they ■could
safely
plan
for
a
multilateral
world in the future. The difficulty
with Mr. Shields' position, how¬
war

ing

shall

the

and

February, 1946, a balance
sterling
in favor
of
the

in

United Kingdom

France

de¬

28th

called Account A, to which
instalments of this credit shall be

would be put upon
with each passing
year or with each additional draft
to repay to the Fund the foreign
as" right.
The fact that the Fund
organization had been set up with exchange which it had taken out
of the common pool. If this check
adequate resources would mean¬
while constitute an assurance to were not sufficient, the country

agreements, since the Fund is un¬
der no: compulsion to begin opera¬
tions until it regards the situation

of

be

in Article 4 below shows

to be

gressive charge would increase the
longer the draft remained out¬
standing
and
the
larger
the
amount that was drawn. Increas¬

normal problems of the

more

charge on
drawings. This

amount of its

post-war situation. He would pre¬
serve the Fund intact to deal with
the

in the

the

or

annual

(b)

milliards, to

Bank

The

conserve

gressive

immediate

meet the

assistance to

the

shall

of -France

Bank

Bank of

credit up to
be avail¬
to the 28th February, 1946.
20

able up

as

for various reasons wished
its gold stock, and
therefore drew upon the Fund, it
would not only have to pay the
service charge but also a pro¬
this,

to

relatively stable peace economies
had been achieved. Meanwhile he

the

non-interest bearing

Francs

charge

did not have
gold to enable it to do

sufficient

begin business until
after the transition from war to
not

of

total

This

termined by agreement between

make available to the Gov¬

ernment

country

the

ever,

low.

Government

French

The

shall

If, how¬

the Fund.

from

dollars

diately, along with the Bank, on
the understanding that the Fund

A, to which instalments of
shall be paid at the

credit

(b)

to
joe clarified to advantage.
make it cheaper for the country
The second alternative suggested
to
obtain
foreign exchange
by
would'avoid the use of the Fund
altogether during the transitional using its own gold rather than by
drawing on the Fund.
It would
period: That is the proposal of
cost less for a country to
ship
Murray Shields, economist of the
Irving Trust. He would have this gold to the United States and con¬
vert it into dollars than to obtain
could

count

funds, so far as this is necessary,
for the account of the Bank of
France at the Bank of England.

service

a

pay

charge of 3A of 1%. This
was
deliberately fixed so

provision

this

have

would

of loans the CED

make the type

at all to finance a

upon

.

of t the Bank of France
(acting as the agent of the French
Government).
This Account A
will
be utilized by the French
Government in order to provide

large or
sustained capital outflow. It could
be used only to meet a deficit in
are. understandable;
but the fact a country's balance of trade and
services.
A country that wished
is that the Bank Agreement al¬
ready contains a provision which to obtain foreign exchange from
the Fund to meet a trade deficit
is( intended to permit the Bank to
they had taken out of the
cdnimdn pool and become chronic
debtors. These fears of the CED
cies

of

request

immediately without requiring a
vote of the Fund's management.;

the strong curren¬

Bank

this

are
into play

They come

automatic.

possible to use the Fund foi\ tem¬
fail to replace

specific con¬

of these

Some

Agreement.

1946. The

England shall open in
the name of the French Govern¬
ment an account to be called Ac¬

privi¬
the Fund's re¬

written into the

been

have

trols

£100 millions, to

to the 28th February,

th*

(i) The balance in the Fran'
Government
co-British Liquidation
shall discharge the balance in
Account
established in July, 1940
'gold up to the equivalent of
one-third of the gross total of
(ii) Sums due by the Govern
the payments in franc or ster¬
ment of the United
Kingdom
ling currencies made during the
resulting from /the use since
year ending the 28th February,
June, 1940, of French merchant
1946, from the franc area to the
ships and from the disposal of
sterling area, excluding those
cargoes
belonging to persons
payments made out of Account ../resident in the franc
area.
B referred to in Article 4 be¬
(iii) Sterling sums due by the

be available

to
up

at

in

The French

(a)

credit up

bearing

non-interest

a

prevent abuse of the

To

^

Account B

(Continued from page 2281).

to

"

countries might find it im¬

porary purposes

tt

resident

Kingdom.>

United

will ensue. '\/-?

flation

this period that

great during

man^

'

belonging

Continental Franc*

persons

United

/

.

other
countries and a vicious circle of
restrictions on trade and of de¬
spread

will

difficulties

struction and other needs will be
so

"

to

restrictions on

J ary measures, and

stabilization and
general purpose loans. The Com¬
mittee is afraid that without such
a power the temptation to
abuse
the privilege of drawing on the
the early post-war years.

?

j imports, that country s exchange

make long-term

Fund would be irresistible

T

,

Anglo-French

The

date in

...same

United
the

of

Government.

War

material

furnished

prior to the 1st July, 1940. by
the Government of the United

Kingdom

to

the

French Gov¬

ernment.

(c)

Expenditure of the

G°v"j

2(1940)."

Cmd.

(i) "France No.
6220.

Number 4388'

161

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE
occupation

vernment of the United Kingdom

it

may

possess

con¬

■

this Article,
supplies of goods and services
of agreed categories which shall

SECTION

with the Annex to

estimated by common agree¬
total value
of £45 millions.
(b) No part of the above sup-

;
1

8th

French

ritories.

that
the
total
deliveries
arranged
under this paragraph shall reach
the agreed amount..
ensure

The- two
Governments
shall
also
co-operate with a
view to determining which sup¬
(d)

of this

scope

fall

para¬

shall

which

and

graph,

shall

Services

and

within the

fall

within the scope of Mutual Aid.

application
of
the
provisions of paragraph 2 (i)
(а) above, the French Govern¬
(iv) In

the

of

ernment
dom the

has

the Gov¬

shall refund to

ment

sums

United

King¬

which the latter

dollars

in

paid

to

ac¬

an

count at the Bank of Canada in

munition

contracts.

said

This

repayment shall be made

by instalments pari passu with
the implementation of the pro¬

deliveries < referred

of

gramme

paragragh 2 (ii) (a) above.
Annex to Article 5

.

r'.\

Article

the

(apart from

second-hand

Annex

attached

acquired for

or

deliveries

of the French

thereto

shall

countries

Franc

be

war pur¬

of

the

sup¬

year.

1 and the Annex for

cies

of

one

'

.

faith

In

territories

the

under¬

affixed thereto their seals.

order

this

27th day of March,
1945, at Paris in duplicate, in Eng¬
French, both texts being
equally authentic.,

territories

shall

,)

Ireland:

•

ally

'tr/,

Republic:.

■

French

lar

-.

,

I.—(i)

useful

with Article

Agreement;

show

those
needs

of

classes

which

pressing.

are

(b) Sterling amounts accru¬
ing to the Bank of France as a

-

(4) The services may include in
Particular those required in con¬
nection with the
shipment and de¬
livery of supplies, to which refer¬

ence

has been made
above, and to
changes for hire of such goods.
(5) The two Governments will
all in their
power to

that

see

Programme is implemented
with the least
possible delay. ; >

(б) The global value of the

sup-

Internals and equipment in^de? in each list, will be deterr-i

.Y commop. agreement, on
basis of
original cost, after
k:[n5 suitable deduction for de¬
u

preciation due

to

wear

and tear.

SECTION 3
Article 6

'
'

'' '

*

Iw2hTr. Government of the
ahJ Kingdom shall make avail+

anv

•

2

^rencb Government

ofVnf£r™.ation which, by virtue
in? +6 ?ritish regulations regardtrade with
&

countries in enemy




result of sterling settlements in
accordance with the exchange

any

(a)

Franc

placed

French

Government

dance with Article
nancial

(b)

in

accor¬

1 of the Fi¬

Franc

amounts

accruing

to the Bank of England as a re¬

with

the

exchange

^ regulations in force in the Franc
Area.

:;;

"•..

I

Account

standing in the
other, even though
such
re-purchase would neces¬
sitate drawing on the credits re¬
of

name

'

/

II.—To the extent required for
execution

the

Agreement
Annex

the

of

and
Bank

the

of
of

of

present

France

and

England shall sell
each other gold on a basis agreed

the

Bank

upon

between them.

.

French West Africa.

cies.
Reunion.

French

French

Area

the

to

agile,'1 But

are

rank

and

file

such

loaded. Profits, sel¬

moves are

dom amount to
often

before any

anything; and

turn

into

losses

safeguards

can

be

on<

to

*

*

profits,

holding

though it is by 'no
perfect, is throiigh
Every issue recom¬

means

stops.

mended here has these

Right

now you

stops.
still hold Hud¬

Motors at 18. Stop

son

i^now

Laughlin bought
at 29 carries a
stop of 30. U. S.
Rubber came in at 56. Stopis
still 57. U. S. Steel should be

stoppedv at 65. It
at 56.

f

bought

was

*/]'} t

,.

No other stocks should 'be

bought at present. And if

any
of the above break their crit¬
ical

levels

they will be
*

More next

do

expressed

*nthis

not

necessarily at any
time coincide with those of the
Chronicle.
They are presented at
those of the author only.]
vinfb--

for

To

99

of

the

New

Protectorates

The

of

•

Morocco

not

included

in

of
the

to use

sterling which may be at
disposal to effect payments
current nature to residents;

i

«

Y.'
LJiav

•

SUGAR

■i'z-j
■'

Exports—Imports— Futures
■'}

p

DIgby 4-2727

r:.

/CifO '?

Syria and Lebanon, v

(iii)
Notwithstanding para¬
graph (ii) above, the provisions
of
the
Financial
Agreement

_e.

X

dated this day and of the pres¬
Annex

shall

its territory

has been liberated."
(iv) The foregoing provisions
vshall not modify the existing
arrangements under which the

Established

the

Franc

Members
•New

York

New V

York

New

part

defined

Area

bo

H. Hentz & Co.

rides and the French Establish¬

of

fl'v

i?j isr

1850

?:

Condominium of the New Heb¬
ments in India which from

■''')'

bii.i'1

;

ies of Cameroon and Togo.

Tfj

.ii

The French Mandated Territor¬

York

Commodity

in

Chicago
New

Orleans

And

Stock
Curb

Cotton

Exchange u■.

Exchange.-ff;r
Exchange

Exchange,
Board

Cotton

of

{/

Inc.
Trade

Exchange:*'
yL

other Exchanges

"

Sterling Area,

residents

WALL STREET

and Tunisia.

of

permit

A

:>ijf

.

Hebrides.

pay¬

nature

/■:

..»■...••

Condominium

paragraph (ii) shall be regarded

current

••

Thursday.

views

Oceania.

The

y

N.

(v) Settlements
Government

the

tory included in
areas

a

one

by

any terri¬
of the two

defined above shall be

re¬

as settlements effected
resident of the said area.

garded

by

effected
of

n.

';r,;

.V

in

Establishments

French

•>

—Walter Whyte

\
[The

*

■"'X;

con¬
•

*

New Caledonia.

Government

available

A

*

One way of

NEW YORK 5,N.

for certain purposes of exchange
control as forming part of the

a

,

applied.

LAMBORN & CO.

to

countries

a

in-and-out traders, partic¬

ularly if they

St. Pierre and Miquelon.

the

by

Franc and Sterling Areas

of

to

French Establishments in India.

of

ling Areas.

their

false moves

stocks

i;,

countries not in¬
in the Franc and Ster¬

of

residents

the

can

:;

which may be-.at the
disposal' of
residents ; in the

(b)

take

even

LX

Guadeloupe.
Martinique.

sterling

cluded

But

)c';nc'

apply to

,

rather

dominated.

Guiana.

whole of

ments

strength

French Somali Coast.

the present An¬

raised

.

,

false.

article

Equatorial Africa.
Madagascar and its dependen¬

remains in force the two Gov¬

Franc

weakness

y

only

Financial

the

comprise

Indo-China when the

the

ferred to above.

shall

"Franc
the fol¬

Kingdom shall endeavour with the
consent
of the other interested

!

week

than

Indo-China.

questions

.

^cer¬

sidered sold.

expression

ent

j

in

a move

same

United

the

in

force

and the Government of the United

"

No.

present
only be modi¬

Metropolitan France (which in¬
cludes Corsica; and Algeria). .

(a) To make the francs which
-may be at the disposal of resi¬
dents of the Sterling Area and

at the official rate the balance on

may

(at

lowing territories:™-!-, r

parties—

(iii) Each of the two Banks is
required at all times, on the re¬
quest of the other, to re-purchase

v;vV br!t>;

*

market Which

a

(iii) The

sult of franc settlements in ac¬

cordance

Area"

Agreement and shall collaborate
closely on questions of exchange
control affecting the two areas.

Agreement;

in

(ii) The

amendments which may prove

nical

rate

French

as

see

con¬

28. Jones &

Kingdom.

England, acting for account of
their
respective
Governments,
shall maintain contact on all tech¬

disposal of the Government of
the
United Kingdom
by the

franc

assigned to it from time to time
by the Exchange Control Regu¬

direct and

Bank of France and the Bank

at

all

IX.—For the purposes of the
application
of
the
Financial
Agreement dated this day and of
the present Annex— (i) The expression "Sterling
Area" shall have the meaning

mutually assist one
another to ensure its application
with the necessary elasticity as
circumstances shall require.
The

drawn
the

amounts

credit

the

and

fied after mutual consultation.

ernments shall

shall be credited with:—

from

official

lations

(ii) So long
nex

(ii) The Bank of France shall
open an account No. 1 in the name
of the Bank of England, which

transactions

sterling

Franc Area

official rate of exchange.

necessary.

regulations in force in the Sterl¬
ing Area.

1

the

the Sterling Area
shall be settled on the basis of the

general international
monetary agreement, they shall
review the provisions of the pres¬
ent Annex with a view to making

.

interests of

affect the

transactions in

the two Governments become par¬
to

*

a

has indicated

more

relations

one

VIII.—All

VII.—(i) If during the period of

ties

a

wherever' the monetary

commercial

or

disposal
current

contact

in

application of the present Annex

of the Financial

1

economic

*

Frequently

the other.

prevent transfers
serve

of

francs

maintain

Frapce.

ment by the Government of the
United Kingdom in accordance

as

civilian

Sterling

amounts drawn
from the credit placed at the
disposal of the French Govern¬

ilian needs, and

•trench

of the Bank of France which

(a)

to

and

■'.''

shall

of the

VI.—Any sterling held by the
Bank of France may be held and
invested only as may be agreed
by the Bank of England and any
francs held by the Bank of Eng¬
land may be held or invested only
as may be agreed by the Bank of.

of England
No. 1 in the

Bank

they

purposes.

shall be credited with:—

and

to

The

order

Area

alone responsible for its monetary
with
third
countries,

movements

which would not

R.PLEVEN

shall open an account

in

of

relations

between the
two areas within the scope of their
respective policies and in particu¬

On behalf of the Provisional
of the

Franc

of the two Governments shall be

Exchange Control shall mutu¬
assist one another to keep

capital

JOHN ANDERSON

Government

the

(iv) Notwithstanding that each

V.—The Authorities responsible
for

lack

moves,
however, are
breathers, postpone the major
its upheaval and
are
usually

nature to residents of the Ster¬

England
currencies

such

of

in opposite
by the other, directions for some distance.'
divergence oc¬ Such moves can be of benefit

time

ling Area.

of

Bank

has

other of

reasonable pe¬

a

through
the
Bank
of
France
Frcs. 200 = £1)
against payment in francs.

of the United Kingdom of
Great Britain and Northern

^

the

the

to effect payments

in such

payments

purchase

or

Sometimes it is without

The

On behalf of the Government

;

make

to

one

which may be at their

France

(other than the French franc) in

the satisfaction of French civ-

tended

of

have

.Done

of

in

of England requires currencies of
territories
of
the
Franc
Area

use

purely indicative, and is only in¬

ar¬

respective

Governments,
have
signed the present Agreement and

of

curs.

purchase
such
currencies
through the Bank of
England
against payments in sterling.
(ii) To the extent that the Bank

signed
plenipotentiaries,
being
duly authorized thereto, by their

evidences

Govern¬

of the

Bank

*

what is called

sanc¬

shall

'

whereof

the

$

run.

sets off on
and its action is not fol¬

riod

Sterling
Area
(other th#n sterling)
in
order to make payments in such

being

effect

to

long

*

lowed within

requires curren¬

of territories

studied

So whenever I

rare.

rails

averages

own,

IV.—(i) To the extent that the

taken of any modifications which
circumstances may render neces¬
sary.

the

paragraph VII (iii) (a) below.

further per¬

account

year,

French

the

bound

the

application of the
rangements
contemplated

Bank of France

iod

be

may

and

occurence

Such

Sterling Areas to the

or

1945),
conversations
shall take place with a view to
examining the possibility of pro¬
longing the provisions of Section
a

in

in

ment

December,

Military, Naval and

may include such
materials, equipment
installations for ports, rail¬
ways, inland waterways, road, sea
and air
transport, public works,
telecommunications, mines, public
utilities, hospitals, housing, & etc.,
as well as
for manufacturing in¬
dustries.
This
enumeration
is

included

not

by the

one

is

one

the other in the

Area;
(c) Transfers to residents of

tioned

Air Forces, having regard ~ to
| Article 5, paragraph 2 (iii) (d), or
for

-

fects

of

dis¬

All payments to residents

months before the end of that per¬
iod (that is to say before the 1st

j

h

use

the

at

;;

this

independent that firmation by one
average'for
begins. For though another I pull in my horns!-u

When

that they

article

graph may be either for the

u!oe

free

which may be

watched

concerned, they are an integ¬ tain direction will paradoxi¬
ral part of the country's econ¬
cally move in the opposite diomy and are interrelated so rection.
For
example Tast
closely to become almost in¬ week's action pointed to de¬
distinguishable. So what ef¬ cline. The latter part, of ,,the

of

Government

the

extent

plies, materials and equipment re¬
ferred to in the
preceding para¬

oo

French

restrict

At least three

valid for

name

most

Government

of the Franc

provisions of Section 1
present Agreement and the

of the

o

categories

not

(b)

raw

poses.

i

the

-

may have little in common so
far as the stock market is

dents of the Sterling Area;

materials), which
is, or which may become, the
.ANNEX TO ANGLO-FRENCH
property of the Government of the b
y FINANCIAL AGREEMENT.
United Kingdom, and has been

(3) The

by

2282)

page

the industrials and

the

(a) All transfers to other resi¬

2. The

possible.?* ;•): '
(2) The supplies, materials and
euipment referred to may include
or,

8

The present Agreement shall
deemed to have entered into
force on the 1st
March, 1945.

as soon as

produced

in

have

markets

become

posal of residents of the Sterling

1.

5, paragraoh
They will draw up the

new

of

be

referred to in Article

any

date

included

Sterling Areas to the
they may be sanc¬

or

(ii) The

signature of this Agreement.

materials, euipment and services

first list

the

to

templated in paragraph VII (iii)
(a) below.

National

francs

from

not

I

been

(Continued from

trouble

the United Kingdom in applica¬
tion of the arrangements con¬

/'.ybV;

rogated

as

j

extent that

lish and

(1) The two Governments will

(iii).

Franc

shall

consult together from time to time
to draw up the lists of supplies,

2

countries

significance. But in the years"

Savs—

.fa) All transfers to other resi¬
dents of the Franc Area.

Liberation and the Government of
the United Kingdom shall be ab¬

connection with the transfer of
the

to in

of

may

(b) All payments to other
residents of the Sterling Area.
(c) Transfers to residents of

1944, between the

Committee

sterling which

Area for:—

shall co-operate to

plies

February,

Governments

two

The

(c)

:

tioned
.

of

use

Tomorrow's Markets
Walter Whyte ;

be at the disposal of residents of
the Franc Area for:—

The Financial Agreement of the

be

ment to renresent a

plies shall oe sold by the French
Government outside French ter¬

the free

4

Article 7

"W' *

III.—(i) The Government of the
United Kingdom shall not restrict

of French cerning assets in the sterling area
troops lin, the United Kingdom belonging to French nationals re¬
in 1940, other than expenditure siding in the franc area.
2. The French Government shall
incurred under the provisions
of the Agreement of the 7th make available to the Government
August, 1940, between the Brit¬ of the United Kingdom on a re¬
ish Prime Minister and General ciprocal
basis
any
information
which
de Gaulle.".
it
may
have
regarding
(iii) (a) The Government of assets in the franc area belonging
the United Kingdom shall make to persons of British
nationality
available to the French Govern¬ residing in the sterling area.
ment, free of cost, in accordance
the maintenance

on

2305

Y. Cotton Exchange
NEW

CHICAGO

YORK

DETROIT

GENEVA,

4,

Bldg.

N. Y.
PITTSBURGH

SWITZERLAND

(

■■•*<,.

Cooperation oi Government
And Business ioi Prosperity
ditions under which we are work¬

things

ad¬

One

and

organizational

the

ing,

arrangements are of

ministrative

much less effectiveness than they

might become with longer experi¬
ence.
And so, for these good rea¬
and means whereby

the ways

to
J

private enterprise may do its full
part in achieving high production
high employment in the post¬

and

We

of what

idea

of

have

must

general

some

in
peace-time
Some people call such

employment

would be.

employment"; others
prefer to use the term "full em¬
ployment,"
although
they
are
careful to point out that there
will always be a certain number
of people unemployed at any par¬
level "high

a

and

men

in

time

ticular

where

country

a

jobs

strictly

not

are

tunately, that a satisfactory level

about 55
million .people
at work on an
Vfverage i work week of about 40
hours in ordinary peace-time oc¬
cupations.
It might be a little
less or it might be a little more,
employment

means

but this standard is close enough
to

the realities to give us a start

thinking.

cn our

v

The

question is frequently asked,

"How do you reconcile these fig-

calling for 55 million people
employed in ordinary peace-time
occupations,
with
President
Iloosevelt's figure,
'close to 60

i:res,

million

jobs'?"
I do
to give an authorita¬

productive

not presume

tive

reconciliation,

own

part it does not seem diffi¬

for

but

my

60 million figure may

The

cult.

properly* include two and

a

million

in

and

men

women

half
the

armed forces, since if any jobs are

:

"productive," these certainly

are.

Then, too, there must always be
more jobs
than there are people
actually
employed.
There are
jobs that are not yet filled; parttime

jobs and seasonal jobs.

when

we

So

take all these considera¬

tions into account I think there is

the

to

jobs"

and

60

"55

million people

work
f

in ordinary peace-time
cupations."
If

people

have

should

we

employed

a

:>v

40-hour

a

national income of about

140 billion dollars.

dicting that
national

the

fact,

As

Murray

long and respectable intel¬

a

political history.
One of its early beginnings

in September,
ference

was

1921, when a Con¬
Unemployment,
of

on

made

some

very

of

attacking

The

ment.

which

.....

than

we

I

am

not pre¬

will in fact have
140

of

income

construction

relief.

The

is

a

billion

and

rec¬

The
ican

of

State

roads,

would

"The

make

character

of

attainment
tional

It

dollars.
of

income

is

this

toward

level

that

of

our

the
na¬

peace¬

the

a

exist¬

under

legislation

and

Curiously,

The
1921

proved

to

be

but the danger
lived

own

and

in

crisis
short

a

companies and in their local
national

associations

tively at work
version

and

are

plans for
expansion.

on

ac¬

recon¬

nomic

Development,

has

as

its

single purpose the achieving of a
high level of productive employ¬
ment after the
tee

recognizes

have

The commit¬

war.

that if

jobs at all,

we

are

to

the job-makers

have to go to work first.

agencies of
government
active, too. Federal, State and

local
and

governments, the executive
the

legislative branches

concerned

with the

are

problem; and




of

of

expect

the

It does

business for it.

cooperation in maintain¬

flow of purchasing demand
some general cor¬

respondence

what agriculture,

to

business

and

able

are

to

To put it another way,

the

na¬

tional State, through a clear and
workable

policy,-

fiscal

and

supplement they activities
vate

business in the

and

of pri¬

maintenance

of

high production and high
ployment.

em¬

It

other
public

effective
of

this

than

intent, there

corrective

number

a

of

that the Gov¬

measures

ernment must

more

statement

mere

are

adopt.

At the

1

1931

contains some language
curiously modern flavor.
from the Act:

"Whenever
there

the

•

pres¬

United

with

tv-v;'".-':;-

likely

States

to
or

exist,

in
sub¬

any

he

is

to

requested

special message

Congress
by
such supplemen¬

tal

he

estimates
for

tions.

...

the

range

as

deems

far

as

manner

as

.

.

...

the

practicable

in

will assist in the

industry and

.

The

em¬

President

is

to take into consid¬

volume

of

of

States, the state
employment, and the activity

of

general

The

shall collect information

!ng

advance

Board

concern-

construction

Again, in the Wagner Act
1931, no reference is made1
taxation.

\

of
to
,

.

The Murray
14 years

of

ence

bill, coming some
later, reflects the experi¬
the
depression of the
our

growing knowledge

of the factors that

are

the maintenance of

ment.
ence

Much

more

relevant to

high employ¬
explicit refer¬

is made to the stimulation of

private enterprise,

no

two

other

oper¬

quarters—on

regimenters,

from

the

eco¬

The regiment¬

appeasers.

would attacks the employment

of supply and de¬
prices and profits,
that the
end
result

wages,

be
v

regimented

employ¬

longer

are

the

of

its

Federal

being

effective.'.

/

made

:

economic

would

appeasers

and

make

that

the

might

we

best

of

it.

as

To

eral

Government.

The

to

are more

of them than there

of the appeasers.

Business today does not accept
the

necessity of regimen¬
the one hand, or the

on

ment,
be

on

of

mass

the other.

unemploy¬

But it would

folly^to expect that business

can

make the transition from full

war-time

employment

peace-time
cooperation
ment

at

to

employment

high
without

from! public

govern¬

every

level—Federal,

State and local.
A

Commitment

you

nine

to

Government

Needed

As part of this cooperation we
require among other things for
success in the attack by business
and government on the
mass

unemployment,

danger of

a

commit¬

ment on the part of the national
Government that, through an exaddition to a sound fiscal
policy,

it will act when business, as busi¬
ness, cannot act to
sustain em¬

ployment and effective demand.
Business

policy

knows

alone

that

cannot

a

refunding
which is now

of

sion,

r

all

These

several

.

associated
any

in

>; govern¬

monetary pol¬
theses functions are

icy.

Today

scattered

several de¬

among

partments and agencies, and, dur¬
ing the 30s there was clear evi¬
dence

of

This

meant

period

that

policy.
during-' that

the .Administration

no

fiscal

conflict in basic

consistent

policy

or

could

continuing

and,was unable

to

use'the full power of fiscal meas¬
ures

to

support

its. attempts

to

reach the humane goals it had set
for itself in other fields.
A

similar

Congress

situation

with

^exists

the* several

in

com¬

mittees of both House and Senate

sound

fiscal policy,

there must be government stabil¬

ity, protection against illegal ag<*
gression, confidence in the out¬
profitable

relationships

few

a

once

'
want

we

public spend¬

no

base

us

budget estimates

our

efficient

the

and

carrying:; out
tivities

to

;

of

accomplish

tional purposes.

Second,

let

on

economical

worthwhile

ac¬

our

na¬

:

lower

us

tax

our

point where they will
balance the budget at an agreed
level

of

high

not

employment.

want

should

times

at

We

deflationary tax

a

of

less

than

high employment. Taxes

be

reduced

where

it

will

in creating de¬

mand and in encouraging private
investment..
•y

to balance the

ployment, let

■

,

,

Third, having set

tax rates

our

budget at high

except

there

em¬

leave them alone,

us

as

in national

are

policy.

boom in

a

prices, let

national

debt,

for further

Fourth,

not

let

as

hold

us

principle

of

taxes and

estate taxes

as

income
the best

purchasing
dividual

to come to rest.

power

the rates

us reduce

income

tax

on

the in¬

stimulate

to

consumption and to make possible
investment in new enterprise on a
business basis.,4

Fifth,

/

let

plan

us

our

but to help toward sta¬

economy,

bilizing the construction industry*
Our

objective should be to pro¬

vide

in

this

tinuous
limits

con¬

agreed

the year and
This would re¬

throughout
the

over

industry

basic

activity; within
years.1

quire advance planning of public
works—Federal, State and localscheduling, and the holding back
o£

a ::.

large ;

projects.
Sixth,

optional

of

reserve

"vvV,;-1;,;.;
modernize the
far as

let,lus

cerned.

consistently strong

public

works, not to balance the whole

ters.

a

the

to

on

progressive

of reversing the tendency of

way

Let

excuse

an

reduction.

tax

social security programs as

Even if

hold
the

us

the surplus or Use it to reduce

that must consider legislative pol¬
icy • on fiscal and monetary mat¬

their

fiscal

*

influences

; Since

their

,

con¬

are

beginning

should emerge from the
administrative branch, it would be
subject • to
delay
and •* possible

they have been highly deflation¬

damaging amendment before the

they

legislation
would
be
As far as taking the
is concerned, Congress
is handicapped both by organiza¬

ancing; and for

necessary

For old age security, let us

ary.

set

our

rates and benefits so

that

bal¬
unemployment in¬

somewhere

come

near

forthcoming.

surance,

initiative

that intake and

tional and procedural difficulties
and also
by grossly inadequate

high levels of employment as it
may be defined. "
^
;
Seventh, let: us keep the im¬

staffing of its technical services.

Here, at the point of fiscal and
monetary policy, where the rela¬
tions

between
are

,

of

government'
the

and

greatest im¬

portance for the working out of
the
post-war
employment and

It may be

for

functions

and

still

addition

look

Federal; debt,
by the

managed

Treasury; the tax program, and,
possibly, the activities of the Se¬
curities and Exchange Commis¬

production

a

take

,

repeat v them

again:

have

abroad;

monetary policies
jurisdiction of the Fed¬
eral Reserve System; the creation

healthy condition of high employ?
ment and high production.
In
to

but

policy at home and

business

fiscal

produce

familiar with
for com¬

are

points,

pleteness ; let 4 me
minutes

and

,

Many of
these

Republicans

,

Democrats.

credit and

policy
by

be

the

several

under the

have

*

to

a

ing

least

fiscal

that

I believe

respects: the
Federal budget; the Federal lend¬

at

giving

and

framework

major changes
When employ¬
ment goes beyond an agreed level,
or1 if, with high employment, we

in

mental

anything

adminis¬

tration of any fiscal policy at ail
calls for cooperation among agen¬
cies and for singleness of policy

private,

of

a

pro¬

be more

enough

do the most good

change that needs to

intimately
reality to

system.

or

the executive branch of the Fed¬

them eight million unemployed is
the statistical consequence of a

enterprise

operative

be made is in the organization of

are

free

Goyernment

y;; -l'.

The first

and

construc¬

tion in the United

business.

the

inevitability

emergency
appropria¬
It is hereby declared to

so

from

.

on

tation,

policy of Congress to ar¬
the construction of public

works

measures

side from the

one

either

advis¬

possi¬

no

fiscal

it

put

majority within
groups—business, vlabor and

remaining to be attacked by the
methods of the Murray bill will
still be difficult, but not, in my
opinion, insoluble.

are

to

is

and

nine-point

program;

general

agriculture,

and

to

there

upon,

.call
a

acceptable

program

there

the

is

standard

quence

portion thereof, a period
of business depression and unem¬

it

tion

stantial

transmit

employment*

The appeasers forget that the un¬
employed, and their families, and
those who fear they, too, may soon
be out of work, are not interested
in
being
the; statistical conse¬

a

I quote

fiscal

a

to

of

well

also

accurate

ating automatically, the problem

evitable

the President finds

is

other

rea¬

get rid of the problem by saying
that rriass unemployment is in¬

•

of

if

even

policy

national

rather than

bility under the present organiza¬

The

sponsored by Senator Wagner of

Act

these

forgetting

was

time,

sources

'.Perhaps it would,

gram,

do

productive

would

signed the "Employment Sta¬

ent

monetary

post-war

that

of

suggested

a

agreed

into

economy

once

bilization Act of 1931" which

Wagner

and taxa¬

automatically

number

a

together

private,

This time Federal

New York..

tend

on

ing for its own sake and no proj¬
ects merely because they
support
purchasing power in general. Let

;

proposition
a

With this in mind I have
drawn

'.

First,

Recommended
To make

Murray
authentic

policy.

monetary

complement

must

the

an

A Nine-Point Proposal

.

all

produce and distribute.
.

from

sonable stability at high levels of

ment.

imperative, and in
February of 1931 President Hoo¬

1930s and

The
are

work

;

regimentation

action became

that

the

bring

mand,

of

plans
organization of business men of and estimates by States, munici¬
which I am sure you all have palities, and other public and pri
heard,- the Committee for Eco¬ vate agencies."
One

by

the fcreas

does-not

Governmental Changes

much.

too

invest¬

and good

national fiscal'policy to do

.

problem by overall and underall

one;

reappeared

1929,

requested

their

to¬

Sufficient

buttressed

in

to

ers

of unemployment

and

on,

in

more

eration

men

a

vsprings

national fiscal
as

fiscal program

a

Business

Just

American v tradition,
so
too we
should draw on American
custom
and experience in taking the
next
steps in American fiscal

that will help it create good prod¬

ucts, good jobs

collaborative

our

be?

rates to the

nomic

reference to taxa¬

no

unemployment

ployment.

business

*'•

bp

the

program.

complement
and supplement the activities' of
private business were generally

and

tion is made in the report of this
1921 Unemployment Conference.

such

Private

;.

\

.r,

do

will

the

forward."'

may go

stabilization of

Expansion

be

not

toward

social security,

dangers

present session in order that work

directed.
Plans for Reconversion and

step

Business must guard itself from

necessity for economy; recom¬
Congressional action at the

time economic program should be
v

to

tion that

With

mends

able

billion

should

it
a

improved

paragraph ;and

such.,

be

works,

#

be

effective {/consumer * de¬

.

Business Wants

feeling about the Mur¬

own

should

circumstances, notwithstand¬
ing* various opinions as to the

the

conse¬

as

as

measures

build¬

available

Conference

is

arithmetical

But

attempts

large amount of employment.

quence

national income of 140

and

section,

bill is that, standnig alone, it

ray

Congressional appropriation for

roads

level,

a

strengthened

every

My

-

any

ficient

practices
of insuf¬

mand*.

labor

of

check tend¬

fear

from

spring

of undeserved unemployment.

Murray Bill Not

The Gov¬

that

a

kind

policy

encies toward restrictive,

ing

be

elementary

all :want; it will also

that will have

should

Government will

in :executing "even

bill

together through their.- na¬
Government, must protect
the individual against the hazard

subjected
to
honest criticism,

most

program

ing

bill

Federal

helpless

duction and high employment we

tional

discussed,

the

;VWhat should

for

Murray

-

will aid
strongly in getting the high pro¬

ask

opposed

works covered by appropriations.

ployment,

or

,

world-wide

a

of production.

means

fiscal

sound

recognition that the people, work¬

better

The

etc.

other
figure.
What I am saying is that if we
have a satisfactory level of em¬
ployment and the present price

dollars,

Murray bill is the Amer¬

expression of

the

to

But

ments.

-i'-v;

*

inspiration of the New Deal to be

Federal authori¬
ties should expedite the construc¬
tion of public buildings and public

the

bi-partisan sponsorship
non-partisan stand¬

deserve

ing.

and

and

markets

to

access

...

ings,

ing

had

have

and prices,
to capital

between volume, costs

bill

The basic ideas of the Murray

talitarian regimentation nor as an

should unite all State agen¬
in expedition;, of con¬

struction

A

the subject of unem¬
It is in the groove.

on

interpreted

sible volume compatible with the

cies

American

earlier

from

:

ployment.

municipalities

existing circumstances.

.

.

thinking

should expand—to the fullest pos¬

ernor

part of the program,
policies ♦ . . with refer¬
;
taxation."

sentence.

were

*

lution

in

unemploy¬

language of the

ommendations

"Public

to

and

ex¬

recommendations favoring
use
of
public works as a

the

other

among

as

"Federal

every

plicit

means

things,

The

Secretary of Com¬
Herbert
Hoover,
was

Chairman,

mentioned,

widely

which the then
merce,

find

a

bill

lectual and

The

and if the price level is
about where it is today, we would

have

of

oc-

million

55

on

at

week,
v

sud¬

not

Senate.

the

of

floor

matter

ver

difference
between
million productive

little

very

"close

did

denly spring from nowhere on to

much agreement, for¬

There is

It

accident.

lative

adopted at that time is interesting.

regimented.

of

The Murray bill is not a legis¬

satisfactory level

a

bill."

the "Murray

has

period.

war

This is the

studied.

be carefully

proposed "Full Employment Act
of 1945," commonly referred to as

much thought is being given

sons,

in particular must

measure

of

Thus the Murray bill is an evo¬

beginning to happen.

are

attacking the danger
of under-employment, and now we

ence

(Continued from first page)

exclusive

the

works

public
method

Thursday, May 24, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

2306

may

problems,
business
properly be apprehensive.

apprehensive, not that

let

is

done

or¬

now,

at

time
If
employment and production lag
overmuch, let us get rid of these,
too, except when they have some
social purpose, since they are de¬
We need no general
fiscal policy pur-

flationary.
sales

tax

poses, now
come

for

that the

tax is

and

preparatory

work

rates so

being, and get rid of the rest.

that,

the

our

outgo balance

1

rent basis.

unless

set

portant excise taxes for the

the intentions of government will
be hostile or even indifferent, but

ganizational

us

a

individual in¬

broad and cur¬
,,

•

k

loans
expenditures abroad, whether
stabilization, relief, or long-

Eighth, let
for

on

us arrange

our

Number 4388

161

Volume

THE COMMERCIAL & FINANCIAL
CHRONICLE

reconstruction, so that they
rather than contra¬
dict'; fiscal policies adopted to
strengthen our domestic economy.
Ninth, and indispensably, let us
press for a reorganization of the
parts of the Federal Government
that have to do with fiscal policy
and administration.
We want
clarity in policy, consistency in
administration,, and cooperation
between the executive and legis¬
lative branches.
We shall expect
that
necessary
cooperation of
time

Calendar Of Near Security Flotations

will support

policy and monetary policy
at the Federal level will be at¬
tained easily along the way.
fiscal

holders of 7%%

List

questions, and leaves a great
deal to be filled in.
But if the

program-'makes sense, there are
constitutional
or
technical
reasons
why it could not be
adopted as a framework now, to
be ready once peace is declared
and we are able to .resume our
no

peace-time way of life.
During
the transition
period after tile
war the nine-point program itself
cannot be expected to eliminate
the need for important public ex¬
penditure for' telief and rehabili¬
purchasing
demand, • which
springs authentically from the
tens of millions whose tax 'bur¬
dens will have been reduced.
'It
will express in a mosaic aggregate
the popular interpretation of the
of

Against
this
background
the
readjust¬
ments of employment and the re¬
conversion of business and indus¬

readily

more

can

not leave at home, for

have

would

again

be

to

a

tion

carrying

that

pumped

out

the

out

policy

im¬

plied in this simple question.
;
A doctor friend of mine, some
me
that if ! a
suffering from both

told

ago,
was

tuberculosis yand

first.
of

"First

ished

and

hinder

may

attack

ease."

the

correct

metabolism,

the body may

the
the

diabetes,
is to treat

procedure

disorder

($5

par).
shares

includes

10,000
stockholder.

a

The

being

registra¬
offered

of May 10.
190,000 shares

Offering—The

registered
exchange
for the 75,000
outstanding shares of capital
stock
of
Robins
Conveyors, Inc. f'on the
include

basis

120.000

of

share

shares

offered

shares

1.6

of

in

Hewitt

for

each

of

Robins.
The
remaining 70,000
including 10,000 shares being sold
stockholder, are underwritten.
Price

shares,
by
to

a

the

public will be filed by amendment.
Underwriters—P.
Eberstadt
&
Co.
is

named*

principal

filed

8

000.

OIL

and

VENTURES, LTD.,

registration

a

shares

200,000

of

statement
stock

common

share

common

200,000

shares

for

($1

May

on

1,500,and

par)

purchase

of

warrants
reserved

common

for warrants.

Details—See issue

of

May

of

oil

purchase
2,000

The

shares

of

for

the

stock

receive

purchase

for

common

common

will

each

sold

in

pf

15,000

the

offer¬

ing at a price of 45 cents per share.
Underwriter—Tellier & Co.

' 7

WEDNESDAY, MAY 30
RICHMOND

shares

the

of

issue

Offering—The
holders

of

its

close

333,333

of

17.

offering

stock

business

additional

May

of

of

to

record

31,

shares

11

333,333

$1).

is

company

May

on

for

(par

May

common

of

CO.

statement

stock

common

Details—See

which

Richmond,

rights

itself,

of

the

will,

the

to

since

on

stockholders,

if

extent

common

necessary,

required

mathematical

a

97/100

shares.

two

will

subscribe

to

its

also

purchase

at

$3

extended

of

to

medicine

the

basis

of

share

a

for

Otherwise

Reynolds

full

and

share,
share

per

to subscribe

rights

Underwriters—None

wider-field.

a

will

stock

any

will

expire July 5.

named.

with

it

lead

has

brought

restrictive

practices that
to Government-

inevitably

controlled/monopoly, class preju¬

below

present

twenty

days

offering
mined

list

a

more

or

have

dates

and, international tension.
The first, step is to control the
undernourishment, and to make
sure that the
life-blood ■ of pur¬

chasing

demand
is
adequately
maintained.
Only then can we

of

evils

then

can

fidence

that

afflict

decide

we

the other

on

Us;

only

with

con¬

that

measures

ought to be applied.
Plans for world economic rela¬

filed

tionships have recently received

great deal of governmental atten¬

tion

and

public

discussion.

.For

the

success, of all these interna¬
tional plans, a high level of em¬
ployment and production .in the

United States is everywhere

con¬

ceded to be
indispensable.
With
high prosperity, we shall require
large imports;: of raw materials,

filed
whose
deter¬

been
to

and

we

may

economic

tariffs
tured

perity,
for

welcome

even

advantages

on

foods

goods.
we

of

and

With

shall

be

foreign outlets

high
less

be

more

to take up low-

essential

The

capacity and
willing to see

directed

pros¬

greedy

to

we
our

the

shall
ex¬

world's

CO.

critical

program

the

for

United

high

States

names

ment.

■

of March

prosperity should no longer be so
neglected nor should it be relevO'

for

serial

bonds

<i7y V :r"-:




'

■;

first
plus

it

will

notes

basis

103.

and

not
the

of

shall

that

not

record May 31, 1945.

§§

May

Noel

Co

&

The

COftP.

Details—See

issue

Offering—The
at

1,

1974.
of

bonds

Dec.

7,

1944.

will

be

offered foi

ATLANTIC

istration

CO.

on

March

be

sold

named

statement

a

<

stock
record

issue of

Details—See

plan

capitalization
holders

of

March 29,

'

reorganization

Offering—Under

and

filed

is offering to
outstanding 6% cumulative

preferred stock the privilege of exchanging
their shares on the basis of $100 par value
stock

for

and

$100

one

par

share

value of
of

5%

common

475
A

to

to

holders

of

four

mental

leadership

and

coopera¬

,y ■■,'y!y y.
yy'-,y./,■ y• ■
We niust succeed at home if we

are

to succeed abroad.

contribution

able

can

to

to

world

Our great
peace

only be mq.de if
use

our

and

of

Co., Atlanta,

outstanding

additional
held

at

advantages

in establishing here;
home, a high standard of pros¬
perity and democracy.
"

at

1

C

close

stock

1945,

to stockholders
on
June 15.

business

of

transfer

books

of

not be closed.
,
HERVEY J.
OSBORN7

MAKERS OF PHILLIES

the

Com¬

Secretary.

iifl Johns-Manville

is

Feb.

on

stock

shares

$1.60

exercised.

Such

subscribed

for

of

2

each

shares

by

of

stock

as

THE

&

Goodwin,

Dec.

for

filed

28

be

($100

filed

The

par).

Details—See issue of

Jan.

Offering—Company
proposals
It in

will

for

of

services

be

to

ferred

such

preferred

new

and

of

for

the

the

of

for

purchase

11,972 shares,

invite

old

from

as

June

120

the

stock

reserved

(25c)

twenty-five cents (25c) a share have today been
by
Kennccott
Copper
Corporation,
cn
June 30.
1945
to stockholders cf
record at the close of business on June 1, 1945.

April

registration statement for 333,333
common

Stock

Railroad

Company has been declared payable
1945,
to stockholders
of record at
of business May 28, 1945.
A
dividend of $4.50 per share on the Ordi¬
nary Stock has been declared payable June 28,
1945, to stockholders of record at the close of
business
May 28,
1945.
J. J. MAHER,
Secretary.
June

28,

close

the

registration

a

stock

The

com¬

issued

by

55.17%

and

total

Details—See

per

of

and

is

(being

Corp.
stock).

Livingstone.

&

Co.,

Detroit.

shares

be

ulea

registration
($5

par)

issue

of

Underwriters—Hornblower

Kebbon,

McCormick

principal

underwriters.

&

Co.

&

(1 y4 %)

convertible

income

public

will

Weeks

and

Details—See

Offering—Price
filed

by

of

issue

$3,000,000
May

named

principal

A.

to

be

HARRIS

due

the

to

4'/2%

filed

'CO.

on

will

will

books

public

will

Brothers

Checks

closed.

be

23

filed

a

statement for 7,000 shares of
cumulative
preferred
stock
(par

Charles
Howard

new

will be of¬

preferred

common

common

the common stockholders
share on the basis of one share
of preferred
for each share of common.
Any shares not subscribed will be offered
pro rata to the former holders of the 7%
preferred shares which shares have been
called for redemption on May 1, 1945. Any
balance will be offered, to the public by
underwriter

at

$102.

&

Son

of

Dallas, Texas.
LAISTER-KAUFFMAN AIRCRAFT CORP.
on

April

19

filed

a

registration

25

of

25,

has

share

per

cents

record

at

an

the

1.945.
F.

declared

and

a

divi¬

additional

share on the Com¬
payable June ; 15,' 1945,

per

stock,

close sof

busi¬

,

J. KNOBLOCH,

Tredsurer.

$25), 262,314 shares class
(par $1), 250,000 shares class B

CARBON

CORPORATION

and 260,136 shares

cents)

5

(par 3

common

CARBIDE

UNION

EH3

cents).
Kauffman

R.

Co.

is

underwriter.

principal

RADIO

(750)
TELEVISION

&

April
24 filed a
registration
for 69,965
shares of common
cent par value.
Of shares reg¬
istered 66,965 are already Issued and out¬
standing and being sold by certain stock¬
holders and 3,000 shares will be issued by
CORP.

stock,

A cash dividend of Seventy-five cents

on

one

share

per

on

the

outstanding

capital stock of this Corporation has
been declared, payable July 2,'- 1945,
to

stockholders of record

of business June 1,

1945.

ROBERT W. WHITE,

share.

per

Details—See

statement

issue

Offering—Price

to

of

May

the

THE

3.

be

filed

by amendment.
Underwriters—Kobbe,

Inc.,

named

is

Gearhart

principal

&

Co.,

underwriter.

at

the close

v

Vice-President

filed

GAS

&

shares are owned by the North
Co', which is offering them.
Details—See issue of May 10.
Awarded

17,702 shares first preferred stock, 6%

(.This

American

York,

is

LEATHER CO.
a
meeting held

at

May 23,

1945.

THE YALE & TOWNE MFG. CO.
May

On

the

at

Board

incomplete this

weak)

of

mmmttium

Directors

out of

past

payable July 2, 1945, to stockholders of
at the close of business June 8, 1945.
\

v,'.

v--,: ^ .•.

A-i \i:'^y;..':U4. '7Jv,"1 J Vi

of
by
earnings,

1945, a dividend
No. 222
(15c) per share was declared

22,

cents

fifteen

May 22 to Blyth & Co., Inc.
per share.
•
• -

list

STATES
Directors

ELECTRIC CO. on May

registration statement for 700,000
cf common stock
(par $25),
The

a

$36,76 7/10

of

May 23,
1945, declared the regular quarterly
dividend of $1.75 per share on the Prior Pref¬
erence
stcck,
payable July 1,
1945 to stock¬
holders of record June 8,
1945.
C.
CAMERON,
Treasurer.

r^ew
PACIFIC
4

UNITED

Board

The

will

public

•

for

of

H.

(par

MAJESTIC

shares

Rupe

the

May 23,1945

Directors

cents

50

capital

May

ness

**

(par

C

named

initially to

Underwriters—Dallas

on

payable

\

AN I*

at $100 per

the

of

Board
of

stockholders

to

J. Hardy, Chairman
C. Wick, Secretary

May 17, 1945

class

jhare

a

Majestic upon exercise of an option at $2

Details—See issue of April 26.

Offering—The

,

York.

was

$100).

fered

Treasurer.
"

TEXAS GULF SULPHUR COMPANY
The

dend

pany's

be

not

Underwriters—John

registration
51/2%

1945.

SYLVANIA ELECTRIC PRODUCTS INC.

Guaranty Trust Company

mailed by

be

New

of

4.

April

SIMPSON,
17,

Details—See issue of April 26.

with names
amendment.

by

A.

May

20, 1945.

dividend

1945.

business June 21,

of

1965.

underwriter,

&

Y.,

N.

Salem, Massachusetts

preferred capital stock of

the

on

amendment.

Underwriters—Lehman

transfer
payment of«

;

M. F. BALCOM, Treasurer.

named

are

debentures

the

for

and three-quarters per cent

one

•i.

May 4 filed a reg¬

for

The stock

closed

July 2, 1945, to stockholders of record on

Company, payable July 2, 1945 to the
record of said stock at the close

cumulative

INC. on

statement

New

Broadway,

Common Stock has been declared

Foundry

holders of

A

istration

York,

of the earnings
ended April 30, 1945, a

fiscal year

the

of

10.

the

1945.

28,

be

not

J.
New

There has been declared, out

stock.

common

to

on

statement for

May

price

CO.

amenument.

oy

May

will

165

dividend.

June

Transfer
CLEANER

VACUUM

Details—See

this

No.

N. Y.

New York 8,

dividend of

April 5.'

Mercier, McDowell & Dolphyn, both of

a

bcoks

Company

this
R.

1

110

on Monday
June 18, 1946, to
record
at three o'clock P.
M.

cf

Monday,

on

Office,

Y.,

30 Church Street

107,923

share.

EUREKA

N;

6,

Dividend of 25e

American Car and

29

Offering—Offering price to the public is
$8

Treasurer's

ac£

All of the

outstanding

outstanding

issue

for

par $1.

Nash-Kelvinator

of

March

on

statement

NO.

DIVIDEND NOTICE

named.

stock,

common

is

owned

the

York

stockholders

April 26.

proposes to market its own securities.

shares of

of

D. C., May 16, 1945.
of $4.50 per share on the Pre¬
of The Alabama Gr.eat Southern

dividend

share.

INC.

Secretary.

QUARTERLY
DIVIDEND
of
Seventy-five
($.75) per share on the Common Stock
this Company has been declared payable at

stock.

ELECTROMASTER,

C.HEROUNY,

DIVIDEND
A

Offering—Price to the public is 30 cent*
Underwriters—None

S.

Cents

GREAT SOUTHERN
RAILROAD COMPANY

ALABAMA

THE

ferred

shares of

pany

1945.
cents

18,

tweflty-fivO

special cash distribution of

a

A.

con-

21 filed a

per

share and

a

of

SOUTHERN PACIFIC COMPANY

of

Details—See issue of

,

company

Jj, -N, Y.

New York

p.

-

*1 •'

•

*

record

DUNNING, Secretary.

v'"" £\
:

business

,

the

payable

Washington,

on

>
of

stock

distribution

ol

A

LTD.

74

ex¬

bonds.
issue

^.N

1945

declared

pre¬

for

of

close

the

at

-

Broadway,

cash

A

registration

common

of

record

holding

May

Secretary

May 18, 1945

STEEL CORP. on
statement for
$500,000 first mortgage 15-year 5Vz% sink¬
ing fund convertible bonds and
100,000
of

16,

May

KENNECOTT COPPER CORPORATION

PORCELAIN
a

COMPa

Dividend No.

requested to transfer on or before June 14,
1945, such stock to the persons who are entitled
to receive the / dividends.:
v
/■/;//;•'.
H. C. DAVISi Assistant Secretary,

changed pursuant to the exchange offer.
CLYDE

LIGHT

&

B

are

Baltimore, Md.

to

it

not

are

payable

of

June 14j 1945.
All persons

Twenty-five

M. C. Roop,

rendered

stock

a

June 5, 1945;.

ness

obtaining acceptances of the exchange

offer

Chemical

record at the close of busi¬

cumu¬

to

proposes

Series

Missouri

30, 1945, to stockholders of

1945.

4,

pay-

record

regular quarterly dividend of $1.50 pershare on the First Preferred, Series "B," Stock
of the Kansas City Power & Light Company
has
been
declared
payable July 1,
1945, to

($ .25) per share <?n its

cents

rate

City.

stockholders

dividend

amendment.

by

Kansas

declared

has

Corporation

statement

dividend

of

HACKNEY;Treasurer

POWER

Preferred,

First

of Directors

The Board

of The Davison

not

Inc.

11,972 shares of preferred stock,

lative

holders

to

The

capital stock,

registration

a

dividend

a

the Common Stock

on

1945,

CITY

KANSAS

CORPORATION

POWER CO

&

8,

ROGER

CHEMICAL

the

CENTRAL OHIO LIGHT

share

DAVISON

five

are

per

June

May 26. 1945.

basis

on

for

75(1

able

per

Underwriters—Bond

on

J

DIVIDEND

stockholders will be
offered to the public by the underwriter!
at $2 per share.

we

unparalleled

COMPANY

on

the

at

The

will

re¬

share; 200,00C
shares are reserved to be issued vftien, as
and
if
certain
outstanding options are

to

tion.

SALT

New York 17, N. Y.
FIFTY CENTS a share has
the
capital
stcck
of
this

of

payable July 2,

record

1945.

statement

the private agencies of
agriculture, labor and business.
Much as these private agencies
can and must do,
they cannot do
all; indeed, they cannot even do
their part, without proper govern¬

WHITE

B.

Avenue.

declared

pany

a

of others

gated

Fifth

dividend

Company,
of

May 18 .1945

Details—See issue of Feb. 8, 1945.
Offering—Of shares registered 1,000,000
are to be offered presently
proportionately

deben¬

stock;

June 20, 1945.

on

Corporation

&

HELICOPTER, INC.

EVERSHARP

company

business

Secretary

TREASURER

registration statement for 1,200,000
shares of capital stock, par value 50 cents

-

re¬

the close of

at

The Board of Directors declared

for

$10,600,000 5%
sinking fund debentures, due April 1, 1980,
and 274,868 shares of common stock
(no
par).
'
.
'
"

Harvester

underwriter.

Offering—The

reg¬

.

declared
a
quarterly
dividend
of
(65c) per share on the common
payable July 16. 1945, to all holders of

accrued interest.

as

122,500

filed

Y.

Company

Philadelphia, Pa.

exchange for stocks or bonds may
by the company at not less than

BENDIX

'

23

N.

HARVESTER

International

INTERNATIONAL

the company for funds
previously
for that purpose.
Any debentures not

used

April 30 filed

competitive bidding.

5,

imburse

taken in

on
Dec.
4
filed
a
registration statement
for $2,000,000 first mortgage bonds, series

A, 3Va%, due Dec.

Y.,

'• 1

v.

York

New

.

of

Trust

N.

5,

33 Pine Street-1.1:

1

•

7

directors

been

proceeds

to

1945.

York

COMPANY

^7.

H

.

POWER

•

1945

record

SMITH, Treasurer.

INTERNATIONAL

be

about

or

17,

of

!'
G.

per

Company,

Bankers

New

Checks will be mailed.

ig

calling all 3%
outstanding unex¬

sinking fund bonds

St.,

28,

by

SANFORD

exceeding

the

cents

the

6ixty-five cents

of

the

the Common

15, 1945, to stockholders of

jj

May

mailed

the

all

bonds

use

of

Wall

declared payable June

was

■■

business
be

16

(37^)

cents

on

Stock of this Corporation

g

of

bonds

and

issue

purpose

share

sinking

All

of

will

of

to stockholders

H.

amount

an

fund

and

per

Stock

1945,

share and

per

twenty-five

Transfer Agent.

mortgage

The 5%

serial

and one-half

H

H

holders

the

on

H

exchange
to

close

of

Capital
9,

..

shall

date.

in

offered

sinking

3%

the

changed 5%

and

official^ circles.

and long-term

issued

be

debentures

mortgage

filed

8.

Alstyne,

ARKANSAS-MISSOURI

are

The problem of

for

Underwriters—S.

freedom

recovery

not

debentures

5%

either

the

has been too little
emphasized in

domestic

but

thereafter, the deben¬

then

June

Feb

on

underwriting group, with the
of others to be supplied by amend¬

heads

needs.

Prosperity for

1945,

COVENTRY GOLD MINES,

the

lower

manufac¬

cost excess

ports

first

us.

ENGINEERING

Underwriters—Van

tures

1,

underwriters.

Offering—The debentures will be offered
loo and the common stock at $8.50 per

of

Jan.

A dividend of thirty-seven

jg

April

on

100.
Underwriters—Kobbe, Gearhart & Co.,
and Newburger & Hano are principal

share

the

dividends

called for redemption.
The company
contemplated

registration

a

Details—See issue

a

and

Inc.,

stockholders.

sale

preferred

exceeding $3 in cash for each $100 par

exchanged

issue*

truly appraise the nature of the
other

the

Checks

rate of dividends paid

same

Details—See

statement for $3,000,000 5%
15-year sinking fund deben¬
tures and 200,000 shares of common stock
Of the stock registered 132,000 shares are
issued and outstanding and being sold bj

at

at

the

June

Company,

thi^ day declared

tweuty-five cents

dividend

on

payable

par value
shares of com¬

of

special

share

basis

May 3.
Dueling—rrice to the puulic is

but

ago,

not

unknown

are

or

AMERICAN

dice

of

par

Yertion

OFFERING

OF

-

undernourishment

dividend

a

offering their stock for

on

shall

outstanding

UNDETERMINED

27

The Board of Directors has
a

shaves

the

on

6 %

•

receive

dividends

April 27 filed

whose registration statements were

'The

body politic has long been suffer¬
ing
from '; undernourishment,
caused in large measure by dis¬
orders of fiscal program.
This

the

debentures

shares

DAVES

be

can

it

of

two

value of bonds exchanged.
fund bonds are callable at

to

subscribe^ for by other stockholders.

We

rule

of

stock

stock

stock

not

;

This

5

bearing interest from such

$100

at

including Reynolds, would be
about

to

dis¬

second

and

shares

presently outstanding
5%
sinking fund bonds

shares for stockholders other than

entitled
each

61.47%

owns

of

provide

The

A

no

Any
for

at

per share, in the ratio of one share for
each
two
shares
held.
Reynolds Metals

not'

1

the

1945,

common

$3

be properly nour¬
help rather than

on

RADIATOR

registration

a

that

so

the

shares

Co.,

their

Underwriter—Courts

development

underwriter

wararnts

shares of

the

holders

ELECTRIC BOAT COMPANY

shares

preferred

wells.

share.

filed

to

holders

Class

tures

Offering—Price to the public is 60 cents
per

debentures

debentures and

receive

17.

and

of

stock.

par plus

Business—Exploration

A

1, 1945,
$3,400,000 3%

underwriter.

SUNDAY, MAY 27
GASPE

their

value

par

of

Details—See issue

of

diabetes

stock

common

by

"Why

money

5%

on

May 5 filed

registration'statement for 190,000 shares

of

DIVIDEND NOTICES

outstanding
preference stock the privilege

exchange shall
1, 1945, at the

THURSDAY, MAY ?A
on

NOTICES

of $50 par value of stock for $50
of

mon

HEWITT RUBBER CORP.

and

exchanging

The

waive

proper

of

exchanging

$100

$100 of

Class

6%

stock

patient

will

for

DIVIDEND

cumulative preferred stock

of

of

common

6%

course become
effective, un¬
less accelerated at the discretion of the

The nine-point program is a way

years

statements

of

In normal

I

employment?"

sustain

to

•

expenditure

individual,

the

by

occur.

elsewhere:

remarked

have

registration

stock

preferences.

in consumer

try

whose

SEC.

.

American way of life as pictured

Issues

which

on

But it will provide a flow

tation.

of

privilege
basis

on

.

registration
statements were filed less than
twenty
days ago, grouped according to dates

This nine-point program raises
some

the

NEW FILINGS

2307

/■#

r
Thursday, May 24, 1945

CHRONICLE

COMMERCIAL & FINANCIAL

THE

2308

BUY 7™

ELECTRONICS

Foreign Securities

WAR LOAN

MARKETS

%

Teletype
1-971

NY

Carl marks & r.o- mc.

BONDS

INDUSTRIALS

OVER-ITBE-COUNTER SECURITIES

M. S. Wien&Co.

FOREIGN SECURITIES

SPECIALISTS
Telephone

50 Broad Street

Members N.

-

40

New York 4, N.Y«,

•

Y.

Security Dealers Ass'n

Exchange PI., N. Y. 5

HA. 2-8780

•

Teletype

N.

Y.

1-1397

HAnover

CO. Inc. CHICAGO

AFFILIATE: CARL MARKS &

2-0050

Kobbe, Gearhart & Company *
:^
.

Bill

Status of Bretton Woods
bill will be
this

plus
istration, and the public, too, are

general stabilization loans.
doubtful at this writ¬

make
t'

.•A'

■

I?

that the Committee will
agree to include also an interpre¬
tation to the effect that the Fund's

full

limited exclus¬
ively to short-term transactions.
Even if such an interpretation is
included in HR 2211, there is no
assurance that other countries will
fall in line, or, if they do agree
activities shall be

'*.

'I

X
>;

4

Afcjto

the

that

interpretation,

our

operation will live up to
After all, a short-term loan,

Fund in

.

it.

paid off, can be immediately
renewed, and so becomes a longeronce

term loan.
;

\V;

of
including in our acceptance of
the
agreements a proviso that
such acceptance would be con¬
tingent on all the other member
For

while there was talk

a

also

countries

mant

A*

;

accepting

against

any

loans
and
investments,
such
exports
make business for financial in¬
stitutions.
This helps explain the

before the House Commit¬

nesses

tee, notably Palyi, revealed more

apprehension over the Bank than
the Fund.
Exports of American
course

goodwill.

These will be dollars of

Then,'there is the view that the
chaos

home, followed by
controls which

at

Government

would alter

Mason

225

East

kee

2, Wis.

Milwau¬

Street,

For the first time, brokers

•

our

pattern of life in
To those who

situation—Hoit,

this

of

York

;

6, N. Y.

ports
the

to support

New

Place,

Trinity

74

Troster,

program,

including BW, is

alternative

to

economic

an

and social, revolution at home.

Co.

Pfaudler

—

■i;V
>-

;,

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local

outlook for the
which manufactures

:

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writer

bers

Policy and Planning, House Re541.
The report is obtain¬
reader's

seemingly
which

attention

is

unanimous

carries

the

V

:

5,

/

One

Currency Commit¬
be cited in years to come

we

are

playing

this

game

the

i
;

v

people
this

than

111.

-"

"We're

ing
Pittsburgh

Railways

Current

—

Fund

Bank

National

Public

Trust

&

and

to

Co., 61

notes—C. E. Unterberg &

home.

Eastern

advocat¬

States, Pfd.

newer

ways

dollar and

change
•

Macon Northern

Drug

come

and

and the

70 Pine

appreciation,

stock

Colony

as a

,

be

the

last

24 FEDERAL STREET, BOSTON

Established In

V-E

for

Tel.

Clar-

E. Unter-

who

specu¬

the

Corporation,

the

health

home

front

over

the

are

cerned
H. H. Robertson

and
as

welfare

we

war

win, 265 Montgomery Street, San

St., six leading security dealers
completed campaign plans, and,
according to Mr. Unterberg, "de¬

still

novel method.

"V

more

includes

formula

Today's

Bretton

Woods,

of

and

permanent

large

vestments

abroad

time

include:

share this
country's natural and productive

and

circumstances,

we

so

which

or

a

hard

ensuing

ap¬

leaders

for

do

came

of

cheapening

making American

Guenther Law

Advertising in all its

V

branches

New York 6, N. Y#

131 Cedar Street

Telephone COrtlandt M060
Chicago Philadelphia San

Boston

Francisco

INDEX
■•."v;.-.
Bank

Page

Calendar of New Security
Canadian Securities
Dealer

-

Broker

2290

Stocks

and .Insurance

Flotations.2307

...;

.• •

Investment

2283

Literature

and

Funds

...

..2298
2294

i

2284

Governments.....2292
Securities.
2282

Reporter on
Utility

Securities
•

•

BANK

INSURANCE

—

;

PUBLIC UTILITY

—

INDUSTRIAL

2288
2283
2290

Corner

Markets—Walter Whyte

Says

REAL ESTATE

-

Salesman's

Tomorrow's

'

-2296

Reeom-

Real Estate Securities.......:

2282

....v....

Ohio Securities Section on

foreigners.

to

-

Incorporated

Railroad Securities

Securities

the
ex¬

Albert Frank

Public

Unlisted

default.
gold

advertisements^

such

"

Our

the pri¬

were

for

Consultation invited

,

Mutual

Specializing in

i

f/.y, X •'

personnel and office location changes
care
in preparation. We will
glad to suggest appropriate forms

NSTA Notes

of which

overvaluing

"•,

Municipal News and Notes

war

1933 and 1934

be

mendations

Seligman, of Ward & Co.

do.

'\

Frank Blair, of Allen &

Association; Arthur Marx, of Wil¬
son & Marx, Inc.; Richard C. Rice,
of J. K. Rice & Co., and Bertram

much store by "jobs" as

•

1945

Co.; Howard S. Hoit, of Hoit, Rose
and Troster; Alfred E. Loyd, of
the New York Security Dealers*

either less favored by nature

not set

in

»•

,

division

The

The general effect is to

are

matching

peals."

direct in¬
businesses.

by

mark for contribu¬

tions the division will have

the Export-Import
Bank, repeal of the Johnson Act,
expansion

a

r'f":;" '

deserve

Unterberg & Co., 61 Wall

cided to set

•(.

.

suitable

and post-war

many

of

Meeting last week at the call of
Mr. Unterberg, who is president

4, Calif.

of

con¬

are

Co.—Report on
attractive possibilities of common
stock—Walston, Hoffman & Good¬

of C. E.

22

Announcements
•*'

...

theirs."

about

Tele. BOston

'i

8715

x

fighting on the Pacific
just as much concerned

are

front,

Street, New York 5, N. Y.

Francisco

HANcock

10

1922

c. E. Unterberg

chairman, said.
"We know the
boys who fought in Europe, and

for in¬

stock

possible

common

lation—First

of

Co.—Discussion

A convertible

class

Specialists in
Unlisted Securities

;

New England

grati¬

our

ence

New Eng. Markel

a

Frederick C. Adams & Co.
X

the

tribute;

Day,"

Broadway, New York 6, N. Y.

page

2284.

LUMBER & TIMBER

a war measure, was a

BONDS, PREFERRED AND COMMON STOCKS

An
'

:

Attractive

-

/

.

BOUGHT

—

'

.

SOLD

—

"■

:

Back The

QUOTED

Low Priced

Dividend Payer

Radiator, Pfd.

Central of Georgia

since

available

Lend-lease,

111. Power Div. Arrears
U. S.

may

international

our

issues,

programs

Pressurelube, Inc.
<l

thread

the well-known

and silver in

*,

c

new ex¬

also went into permanent

capacity to

In

a

tude

current

in

sup¬

for

port

Securities with

go¬

work

securing

study—First Colony Corporation,
70 Pine Street, New York 5, N. Y.

Company—Analysis

Public Utility Stocks and Bonds
TEXTILE SECURITIES

make

to

our

wealth with other countries which

Then there

bond

Our

basis at

health

agencies.

^

"

Investment Trust Issues

:

sell more abroad
country buys abroad.

were

period.
vate

for

distribute the product on a busi¬
ness

the

are

specialize in all

Industrial Issues

408

hospi¬

to

debts of the last

The fact is that this country has
enormous capacity to
produce,
which exceeds its

facilely

relations

an

one

interest

an

;(■

,

through

There

keeps.
t

aware,

We

Insurance and Bank Stocks

welfare

and

mem¬

the overwhelming desire of

war,

is that

us

expressed

common

traced

of the past and solve their "excess
savings problem" by letting other
countries pick up the marbles.

What experience tells

the writer is

as

has

financial

to the lessons

eyes

far

periences.

and

close their

so

ing expunged, in favor of

one

tee, may
as Exhibit A in the current
propaganda campaign to get Americans
to

the

unpleasant lessons of the past be¬

prominent member of the House

Banking

a

interested

to be heard. Thus

This

of

advised that the

was

one

no

report,

name

Senate
hold

Committee

At -the

are

And,

invited

IV.

Chapter

to

the
will

.

able free from the committee, and

especially

published,

in/ obtaining
(he views of the State Department
and the SEC, but of no one else.

port
the

On the day this

the

of

tals,

Street, Chicago 3,

South La Salle

has

Senate

separate bill be repeal

Committee

hearing.

Economic

Post-War

on

the

Bank,

a

is

Finance

a

members of the

the Johnson Act.

or less continuously from now on.
Most recent manifestation of this

mittee

Bretton

concerns

and

before it

campaign appears in the Sixth
Report of the House Special Com¬

■

is.

as

Fund

paign for pouring out American
"investment" money abroad more

:

far

so

small part of a much vaster cam-

:<V

Woods
provision
the Johnson Act,

the

Although

enabling act contains
for the repeal of

BS 328

campaign in

Recent analysis

disoussing

Reed

Johnson Act Repeal

-

Hanover 2-7913

York Fund

berg,

"crippling amendments."
It is thus apparent that all the
recent fighting
has been over
only a minor part of a part of the
Bretton
Woods
program.
And
Bretton Woods is itself only a

Teletype

Hubbard 6442

.

cisco to make sure that there are
no

MASS.

New York

New

Greater

'

9,

Boston

division

own

&

Rose

the United States.

share this view the loans-and-ex-

BOSTON

who

ganized their

Coca-Cola—Discussion

Panama

Trading

Transportation

RALPH F. CARR & CO.

deal in unlisted securities have or¬

be'depression

would

alternative

new

(Continued from page 2283)

lined and stainless steel tanks and
is tan¬
cooperation." equipment — Caswell & Co., 120

gible "international

conditional rati¬

Oceanic
Worcester

Organize Division in
N. Y. Fund Campaign

Recommendations

whose goal

those

please

of.

investments

and

loans

long-term

by

financed

goods

and

Unlisted Brokers

Broker-Dealer

England Co.

Keyes Fibre

.

by

Financed

of the pro¬
posed Bank—although a few wit¬

this in¬

Northern New

acceptance

general

by this country,
and Assistant Secretary Harry D.
White came back from San Franr

[.i'X;
P. V

management

industries,

labor.

and

BW

of

fication

Sprague Electric

1-576

new york

large

export

terpretation of the Fund's powers,
but the Treasury has been ada¬

If-

exports help make
employment. This pleases the

Thus,

is

consideration^.

by various

moved

What is very

ing

Enterprise 6015

2-3000

Telecommunications

National Service Co.

BELL TELETYPE

TELEPHONE

PHILADELPHIA

TELEPHONE

REctor

5

YORK

NEW

STREET,

Finch

Association

Dealers

Security

the sur¬
product abroad the Admin¬

ing devices to distribute

changed to include as
Government's understanding
the Bank has the power to

York

NASSAU

45

(Continued from page 2282)

that

New

;?;v-:

7, ';■:

■■cincorporated

•

Members

.

Electronic Company

5's

Common

7TH

REMER, MITCHELL & REITZEL, INC.
208

So.

La

Salle

St., Chicago 4

★

Stock

—

RANdolph 3736
Report

W. T. BONN & CO.
120

Broadway
Bell

Teletype NY 1-886




on

Request

BELL

WESTERN UNION

SYSTEM

HUGHES & TREAT
40 Wall
Tel.

BO

V

.

"wux".

Tele.

NY

Hill, Thompson & Co., Inc.
Markets and

•

Tel.

1-1448

/

Situations

for

Dealers

Broadway, New York 5
REctor 2-2020
Tele. NY 1-2660

120

St., New York 5, N. Y.

9-4613

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