Full text of Commercial and Financial Chronicle : May 25, 1944, Vol. 159, No. 4284, Section 2

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Final

Volume

New York, N. Y.,

Number 4284

159

Chairman, Federal Reserve Bank of New York

,

Author Of

the ulti-

ployment; (2) Amortizing The Debt Only If Consistent
With Maintaining High Employment; (3) Using a Pub¬
lic Works Program

M
j

We favor

public ownership of utilities, of natural re-

It

perfectly clear that we cannot have acceptable economic
under a higher level of
pr osperityv*
than we have on the average between 2 and 3%

is

and social conditions in this country except

>

sources and of monopolistic enterprises, wherever this
,U;y: is necessary to maintain production or to serve other
desirable social ends.,
v

j

y-

'

a

way

known.

ever

There aresome

!

remark¬
things

very

able

We believe that
in such

Only To Stabilize The Construction

Industry; and (4) Avoiding Accumulation Of Social
Security Reserves In Times Of Mass Unemployment.

!

mate responsibility of assuring the full employment of
workers and the highest possible level of production.

\

"Pay-As-You-Go" Taxation Advocates (1)

Reducing Taxes To Balance The Budget At High Em¬

•

assume

our economy should be organized
that the level of employment and produc-

the

about

over-all policies planned and directed
by Government toward the welfare of all the people.

present eco¬
nomic, produc¬
tive, industrial

The economic

situation.

tion be based upon

policies of the Federal Government should

be directed toward

continuing program of national
development and the prevention of depressions rather
than only toward the salvaging of human and material
resources during
depressions,
a

|

$85,000,000,-

;

000.00 worth
of war

tion

democracy in the
(Continued

years

on page

to

produc¬

on

to

a

consumption
that

level

their economic system they/ can achieve levels of pro¬
duction which will provide a large measure of economic
freedom and

We

added

have

If the American people assume responsibility for

y

.

is

than

higher

it was in 1940.
Beardsley Ruml

come.

2172)

In other

words,

elimina¬

the

war production can result
high employment only by the
corresponding increase of the cur¬
rent standard of living. In the ag¬

tion of
in

hxl/The Railroads
Chairman,

Eastern

Lehigh

Earnings, Greater

York

-

the

industry.
your officers asked for
subject of this discussion, one
of my associates suggested: ''Will
When

the

policy in

The

Railroads

inquiry
the

suggestion

roads

of

We

riers.

it

is

never

Back?"—an

heard

But I

because

left us,

they

in

the

discarded
the

rail¬

are

with

today—and how!

us

car¬

While

Come

sometimes

investment field.

in¬

upon

rail

We

are

a

transportation nation.

operate

more

transportation

true that your

facilities and

investments in
securities
have declined

port service, than the rest of the

the

fathers

that

true

centered

opment ..of

re-.

.cent..years, it
is likewise
your,

R. W. Brown

aggregate a-sizable sum.
It
apparent, therefore, that you
still have some measure of faith

the

on

is

transport

delivered

Mr.
Brown before the National Asso¬
by

more

When

trans¬

our

fore¬

upon

creation of industry, they imme¬
diately faced the need, for trans¬
portation.
Of course, the horse-

now

address

use

the devel¬
agriculture and the

drawn vehicle

holdings

*An

we

world combined.

rail

over

on

land and boats

waters, provided some
service for commerce.

But this was not enough.
The
development of the country could

not be limited to
to

the

banks

of

waterfronts, and
rivers,»streams

We needed autransSavings Banks and canals.
at
the
Waldorf-Astoria
Hotel* portation service that would move
New York City, May 12, 1944,
(Continued on page 2172}; :,,

ciation of Mutual




been

technical

very

much

advance

more

un¬

there

appeasers.

must

recognize that

is

primarily the job of business.

That

is

what

business

is

for,

to

distribute, to employ, to produce.
Fortunately,
and
sometimes
I

has

think

rapid than

we

do not realize how for¬

there is very general
of opinion in this coun¬
Any way you look at it almost try that it is the primary job of
a
generation's progress in stand¬ business to do that thing. Under
ards of living must be made up the
type of life that we have
before we will reach high employ¬
known, we can get a high level
ment. To put it in the other form, of
production and a high level of
high employment means a stand¬ employment only -under private
ard of living a generation in ad¬
competitive enterprise.
vance of where we are today.
It
There is no strong voice today
is a compelling situation of un¬
(Continued on page 2174)
average.

tunately,

■;"

consensus

Washington
Ahead Of The News
By CARLISLE BARGERON
In the propaganda of politics, we shall never forget the
high point
of the Republicans' literary output in the 1940
campaign. There was
a fellow around the New York
headquarters who had conceived the

just fallen.

Here

if the world had

in the railroad

respect
naturally has

credit

tific'.Vand

we

than

the job of getting high prosperity

the scien-

idea of the most forlorn French

Vt

GENERAL CONTENTS

privilege and a pleasure to address the representa¬
These institutions have always

this

the

Chapter, American Society

of Chartered Life Underwriters.

Mutual Savings Banks.

securities, and

marked

I think

of them

part of last month before the New

im¬

fluence

account of the war,

eco¬

are

"I

was

once

a

was

come

had ever seen. France had
expression on his face as
The legend accompanying him was

poilu

you

this fellow with
to

an

free man."

.

end.

an

.

Well, sir, you would look at the France. They, too, were shouting
picture and read the accompany¬ for the preservation of Democ¬
...2169
Financial Situation
A
ing legend and you would say to racy.
person
reading
this
yourself,
and
to
the
fellows dodger would not understand that
Regular Features
From Washington Ahead of the
around the office, that if this isn't it was an appeal against the New
News
2169
something to frighten the Ameri¬ Deal at all.
Moody's Bond Prices and Yields.. ,.2178 can people against a Third Term,
That is getting to be the same
Items About Banks and Trust Cos..2184
it is difficult to tell just what situation in this campaign.
The
Trading on New York Exchanges
2182
would do it.
The legend went on New Dealers are out-shouting the
NYSE Odd-Lot Trading.............2182
NYSE Stock Values at April 29
2179 to tell how he had fooled around Republicans for the preservation
with politicians.
The average per¬
He had had con¬ of Democracy.
State of Trade
fidence in them. He had had con¬ son is likely to get the impression
General Review ....................2170
fidence in Blum.
He had been that both parties are shouting for
Commodity Prices, Domestic Index.2182
the
same
apathetic as to what was happen¬ the preservation of
Weekly Carloadings.................2183
The most vociferous ex¬
ing to him. Now he was no longer thing.
Weekly Engineering Construction.. .?1R1
a free man.
April Figures
2179
ponent
of
Democracy
around
Paperboard Industry Statistics......2183
The fellows around Republican these days is Henry Wallace.
Be¬
Weekly Lumber Movement....
..2183
fore him it was Harold Ickes.
headquarters
got
enthusiastic
Fertilizer Association. Price Index.. .2181
This gets us to pointing out the
about it.
Thousands and thou¬
Weekly Coal and Coke Output......2181
sands of copies were distributed. greatest piece of political pagean¬
Weekly Steel Review................2177 About two days before the elec¬ try we have seen in a long time.
Mood's Dally Commodity Index
2178 tion a couple of Republican pro¬ Here in Washington, you see a
Weekly Crude Oil Production.......2178 pagandists
were ' having
dinner concrete example of the New
Non-Ferrous Metals Market.
2179
with a fellow propagandist from Dealers
preserving
Democracy.
Weekly Electric Output.............2177 the
Democratic
headquarters. It is all right for the Republicans
April War Expenditures Decline
2177 They asked him if he didn't think to talk about saving it, but here
Cottonseed Receipts to April 30
2181 this was the greatest stunt ever is a definite example for the New
Dealers doing it.
April Freight Traffic Increased
2181
devised by propagandist men.
Federal Debt Limit at April 30.....2182
The Administration dug up 30
Calmly, the Democrat said no.
Market
Transactions
in
Govern¬
The
message
conveyed in this persons, scattered around about
ment Securities during April.....2183
literature, he pointed out, was the the country, and charged them
Banker
Dollar
Acceptances
Out¬
with
same message the Democrats were
attempting to
incite
the
standing at April 29...
...2179
sounding. They, too, were warn¬ armed forces. It is what is known
Page

for- railroad

a

on

more

those'conditions

would be of the

years

developing under
the surface this increased capacity
to produce.
In the " recent years,

*An address delivered the latter

Editorial

portant outlet

your

fifteen

appeasers

there would be
der

there has been

tivity in recent decades have been

portation Policy.

an

for

the

are

who

begin¬
ning to tell us privately and con¬
fidentially that 8,000,000 or 10,000,000 unemployed is the statis¬
tical consequence of a private en¬
terprise system. The unemployed
will not be particularly interested
in the statistical consequences and

been translated

never

ap¬

two

other side

On the
nomic

into realized production and con¬

So

from

ally, not realizing that in fixing
all these other things that they
would regiment employment.

nical

sumption.

be

to

reason

quarters.
One is from the economic regimentors who would fix prices and
wages and output and the condi¬
tions of business activity gener¬
prehensive

This progress goes on be¬

method has

'i.:

•

,

has

Business

of scientific

plausible from an
different point of view,
economists es¬
timate that increases in produc¬

fundings Accomplished At Lower Interest Rates—Views
Rail Carriers Prepared For Post-War Competition, But
Ask For Equality Of Opportunity And A Sound Trans¬

been

basis.

advance, tech¬
improvement, better public
health, - better education, better
management,
improvement all
along the line.
*
Since 1929 this improvement in
cause

look at it this way:

Efficiency And Better Physical Condition Of Railroads
As A Basis For Their Improved Credit—Observes Bank
Loans and Funded Debt Are Being Reduced And Re-

It is both a

year.

it is to continue on a satisfactory

entirely

Presidents' Conference Committee

Railroad Executive Points To Higher

tives of the

a

precedented magnitude and con¬
sequence, and our social and po¬
litical system must adapt to it if

To make this

Valley Railroad Company

Railroad

gregate, we have nothing to make
up.

By R. W. BROWN*

President,

<$>-

By BEARDSLEY RUML *

newly formed organization calling itself the Liberal
{Party issued a broad credo late last week from which we
take the following:'
'
;:v
No modern society" can long endure deflation,
:
unemployment and depression. In meeting these eco- ;
;
nomic problems we cannot depend upon laissez-faire.
]
•The depression of the Thirties proved that private action
}
i
cannot provide the economic coordination and expan{
sion which is required.
The American people must now
take the economic steering wheel firmly in their own
1
The Federal Government must

Copy

a

Four Post-War Fiscal Problems

The Financial Situation

hands.

Section 2

-

Price 60 Cents

Thursday, May 25, 1944

A

•

In 3 Sections

ESTABLISHED OVER 100 YEARS

Edition

,.,

—

.

,

.

,

Commercial

April 29

Paper

Outstanding
at
.....2178

ing against what had happened to

(Continued

on page

2177)

2170

THE COMMERCIAL & FINANCIAL CHRONICLE

New

False Assurance
the

get under

been

satisfied

and

our

business

down

settles

plates % and
sheets, which have shown contrac¬

drastic.

Material

Raw

a

program #of

of

Position

the<^

United

-

problem of placing an additional
195,000 tons of shell steel, 200,000
tons of sheets, an additional

of

tons

tin

104,000
is

"By finding the causes of recurrent alterna¬
of expansion and contraction, investigators
have hoped to discover how contractions can be
averted.
The number and diversity of the diag¬
noses and prescriptions offered,
long a reproach to
economics, stems from the inability of investigators
to determine how adequately their own and one
another's explanations account for what actually
happens during a business cycle.
Even the
'theories' most fashionable today are really un¬
tested hypotheses.
Yet some of their advocates'
offer practical guidance to government and public
with an assurance that contrasts painfully with the
caution of responsible physicians in treating im¬
perfectly understood disorders of the body."—
Wesley C. Mitchell.
\

12,000

mill

products,: and
plates for third

of

tons

Carryover by

mills

some

steadily, in
much as 10 days.

increasing

cases

tions

as

result

directives

more

able to handle this

some

As

a

prob¬

are

This is,

excess.

expected to set back deliveries on
now scheduled for June

vide

instruction

summer

in

ac¬

counting,
advertising,
banking,
economics,
finance,
geography,
labor relations, law and market¬
ing.
Professor D. L. Dodd will
.

direct studies in investment

man¬

agement, and security analysis and
corporation finance. Professor H.
F. Otte will conduct a geography
course

in world industries and

sources.

re¬

ftr,

•

and third quarter from two to
weeks.

"Bar

tending

and

deliveries

in

range

stances in August and
smaller

sizes

being

six1 relaxation.
ex-1

are

most ,;in-j

September,
most

easily

mills
are
October on
plates with substantia),
backlogs beyond, but some ton¬
nage is available in September.
Most

placed.

booked

plate

-

solidly

into

sheared

Universal

be obtained
in late July and August."
The

general
well

plates

can

prospects for export
of
steel are expected to be
through the last

sustained

half of the year, according to the

magazine.

Exnectations po'>t to
tonnage
to
Great
Britain, which is likely to be more
reduced

a

good deal less of Keynes,

than

change and international banking
be given by. Professor J. M.
Chapman. Courses in * accounting
will be given by Professors R. B.
Kester, H. A. Inghram, and T. W.
Byrnes, and K. L. Baker. An
will

auditing laboratory in accounting
will

conducted

be

W. Byrnes. Dr.

T.

will

give

offset

There

exists at pres¬

backlog of 1,250,000 orders,
with new orders building up at a
rate of- approximately 100,000 a
month, and this being the case,
ent

a

officials

contended

sumption

that

the

production
purposes will only

civilian

re¬

in

for
par¬

Marked

activity

The State Of Trade

week,

with seasonal apparel,

cessories

household

and

effort,

reiteration would be unnecessary were it not for the fear expressed

in

quarters that to acquaint

some

our

thus far achieved would tend to

ress

people with the splendid prog¬
bring about a relaxation of our

efforts and thus jeopardize an early termination of the
!

Harry
the

S.

Truman,

Senate

Chairman of"
——-—
Investigation electric output, freight

War

stressed
this
Committee,
very
point the present week in a talk
before the Brooklyn Chamber of
Commerce.

The

his criticism

of the War

for

ment

of

news

made

time

the

voiced

Depart¬

cheering
production and

war

observation

that

opportune for

was

return

Senator

withholding

our

to

the

the

gradual

a

of

manufacture

basic civilian commodities.

Point¬

ing out the fallacy of such a policy
that will lead to a peace in which
the
returning millions of this
nation will be without work, he
urged that surpluses not required
■

for

materials

war

civilian

or

essential

made

items be

available

to all manufacturers.

■

By initiat¬
ing such a program, the • Senator
contended, it would provide con¬
sumer
goods, lessen the dangers
of inflation, permit an orderly re¬
sumption of peace-time economy,
provide
opportunities
for

and

small

business

prises.

Senator

war.

and

new

enter¬

Concluding, he stated the

Government must relax

or remove

output of steel ingots and castings
the present week is again ex¬
pected to show a slight decline
from the preceding week.
The

15%

or

week

of

market was enlivened by buyers
freight carried, for fall purchases.
According to
by the- railroads carloadings of the Federal Reserve Bank's index,
revenue
freight - for
the
week sales in New York City for the
ended May 13 totaled 888,309 cars,
weekly period to May 13 ad¬
the Association of American Rail¬ vanced by 30%
over
the same
roads announced. This was an in¬ period of lhst year.
For the four
crease
of 31,331
weeks ending May 13 sales rose
cars,
or
3.7 %
above the preceding week
this by 12%, and for the year to
year, and an increase of 19,277 May 13 they improved by 7%.

With respect to

cars,

or

2.3%

above

the

maintained
for

mand

last

week

women's

cessories

and

with

de¬

apparel,

seasonal

ac¬

lines

especially marked.
In the field of electric produc¬
tion, results reveal that output of
electricity advanced to approxi¬
mately .4,238,375,000 kwh. in the
week ended May 13 from 4,233,756,000 kwh. in the preceding

week, as reported by the Edison
Electric Institute.
The latest fig¬
ures

represent

over

one

year

gain

a

of

when

ago,

6.8%

output

should

be

civilian

goods,

are

permitted

what

to

make

they

goods

to make and under what cir¬

cumstances

goods.

they

can

sell

those

The Senator's remarks

are

most

timely, considered in the
light of the many cancellations of
war

contracts

growing
war

now

more

occurring and
%s

numerous

enters its final

industry the past week, it is

noted that

occurred

dictated

gencies
whole
well

while
in

variations have

industrial

in the main by

of
has

war,

activity,
the exi¬

production

continued

as

a

generally

sustained, with the trend of




500,000

the

in

tons

^summary

Russian

thq

."reveals'
in the

business

•

Shipments by manufacturers in

the

month

2%

about

of

March declined

from

the

by

1'preceding

post-war,

month, with most of the falling

trial

industries.

negotiations
are
re-r
ported under way for huge indus-i
equipment orders estimated
to $2,000,000,000 .to $3,000,000,000
a year for a decade.
*
*
{
A

move

has been made by the

OPA to prevent speculative

ing of pig iron
tions
and

have

the

sellers
The

been

metal
as

dispensed
be sold

can

well

to

as

incentive ~ for

been

with
to

re¬

consumers*

resellers

with

removed

buy-j

alloca-j

that

now

has

amend¬

an

supply

provides that no,
charge more than the

prices for

and

demand

pig iron
continues
well
balanced,
with
more going into foundry mixtures
in
the
shortage of cast scrap,;
although the problem of man¬
power works against the amount,
of
tonnage
the
foundries
can
process, the magazine reports.
;
As for the rate of steel produc-i
tion, the American Iron and SteelInstitute places

,

off occurring in the durable goods
Deliveries of automo¬

biles
and
other
transportation
equipment figured prominently in
the decline, being13% and 4%,
respectively.
At
the
end
of

March the value of manufacturers'

but $150,000,000 higher than

that of March 31, 1943.

scheduled' output}

for the week

beginning May 22 at
98.4% of rated capacity, equiva-j
lent to 1,762,600 tons of steel in-!
gots and castings, a decline from
recent new highs established in

;

1

Bituminous coal outnut for the

13 reflected

an

increase of 450,000 net tons from
the preceding week at 12,570,000

tons,

rise of 473,000 from
when production for
the comparable week was 12,097,000 tons, as reported by the Na¬
a

and

year

tional

a

ago,

Coal

Association.

Output
through May 13.
1944—aggregated 235,405,000 tonsto

date—Jan.

1

against

224,658,000 tons for a
like period in 1943.. The report
of the Solid Fuels Administration
as

placed

production

■

for

the

week

ended

May 6 at, 12,150,000 net
t(?n$, against 12,360,000 tons in the
preceding week.
;
,
;
:;;

interest

resulting

in in¬

Demand

for

garden wares
and accessory lines was especially
marked,
according
to
Dun &
Bradstreet, Inc.,
with a note¬
worthy increase also among uni¬
form tailors, eating places, hotels
and the smaller jewelry stores.
The approaching wedding season
stimulated

coffee trays, china-

as

knick-knacks.

and

ware

household

in

interest

effects such

mills

were

There

likewise,

improvement in
wholesale volume over the previ¬
ous week and a similar period last
year.
Fall apparel was plentiful
and orders large, the same source
reports.
Textile
markets
and

was estimated by the
Department of Commerce at $17,540,000,000, or more than $100,000,000 below the level of Febru¬

ary,

past^week,

was,

inventories

The, week ended May

iron.
of

.

not

overlooked

and

reported sold out from 60 to
90 days ahead.

were

In the wholesale field

tightness

evident, with civilian deliver¬

was

ies

slow

were

fresh

and

Trading in
light, while

fruits

short.

canned

goods
was
household deliveries

back from four weeks to six

months.

Improvement occurred
bathing suits and cotton dresses

in

with

of

-return

a

conditions,

better

weather

immediate

delivery
being sought. Towels .also found
a
ready market, with everything
available taken, the above author¬
ity disclosed.

!

Department

store

sales

on

a

the United States.

put- for

000

pares

upward by 31% for
the week ended May 13, .compared

of

with

in

the

week

compares,

ended

May 14,
176,500,000

The

urgency

with

of

some

war

re¬

quirements, coupled with a threat
through an in¬
creasing man-power shortage and
to steel production

approaching
caused
ment

hot

heavy

weather

pressure

of flat-rolled

has

for ship¬

steel

to

con¬

tinue, with mills being pushed to
their limit, says "Steel" magazine

the

Scheduled ouU

week

current

com-i

•

Some

relief

from

the

shortage

of telephones for civilian use, ex^

isting. since the latter part of 1942,
was. indicated
the past week by
the.. authorization

which

will permit

ture. of

civilian

of

the

WPB;

the manufac¬

instruments

at

a

in its market summary this week.
Allocations for the third quarter

Production

appar¬

under way about the third quar¬

ently in recognition of this situa¬

ter, .with initial deliveries begin¬

been

reduced

5%,

,

v

A. decline in cotton consumption

was

noted for the month of

April

a
report
of
the. Census
with operations at the rate from
; Cotton
99.2%, and output of 1,777,000 Bureau.
consumption
tons a week ago. ■« For the week dropped to 776,007 bales of lint
beginning May 22, last year, .steel and 110,-359 bales of linters in
output totaled 1,719,500 tons, and April, from 902,102 and 115,502
the-rate-was 99.3% of capacity. - j bales, respectively, in March of

have

the

phases.

Reviewing the results of trade
and

half,
for

is

the

much

attracted

reports system output of 179,300,-

kwh. for the corresponding week
of 1943, or an increase of 1.6%.
v

manufacturers

As

curtailment

week

reached 3,969,161,000 kwh.
Con¬
solidated Edison Co. of New York

and

what

most

apparel,

maximum

war-time

determine

women's

after

trade

as

restrictions as rapidly
possible, adding that his com¬
mittee was opposed to suggestions
that Government agencies should

3.^%, is shown.

about

can

the

in

merchandise

Summer

corre¬

even

at

person

was

same

tially meet essential demand.

sales.

expansion in wholesale and retail

apparent- throughout
in previous weeks

in

The coat and suit

creased

which

,

the

above

more

1943.

sections

by

ment,

country

ac¬

lines

demand.

of 1943.
Com¬
pared with a similar neriod in
1942, an increase of 29,255 cars, or

—

car load¬
ings and bituminous coal output
higher.
Paper production last
week was lower, and scheduled

in

last

Estimates of de¬
partment store sales were set at
good

sponding

last

industry have made a notable contribution to our
this fact being generally known to all. The need for

York

trade

set

Business and

noted

was

New

in

retail

quota

i

Professor

by

Elcanon Isaacs
in business law.

a course

Russian require¬
ments, now tentatively placed at
about 250,000 tons. Great Britain's

Hansen et al!

war

.

contracts

If only the public could be
adequately im¬
pressed with these quiet words of the "dean" of
all students of business cycles!
a

point of view

of world affairs from the geographical

survey

States"; S. W. Boggs of in charge of work in personnel
'' ■*'.
*
the State Department, "Interna¬ administration.
soon for 24 tankers to be built by
Professor H. K. Nixon will an¬
Boundaries";
Professor
Sun Shipbuilding & Dry Dock Co., tional
George B, Cressey of Syracuse alyze the elements of marketing
replacing 30 cargo ships tran
and the principles and problems
ferred
to
Pacific
Coast
yards. University, "Soviet Russia and the
of advertising. Courses in banking
Steel Requirements Committee of Far East".
business, and foreign ex¬
The School of Business will pro¬ and
WPB is said to be faced with the

quarter.

We should hear

A

will be featured in

reports, "about 125.000 tons of hull
steel, mainly plates, will be placed

answers

.

.

v.

18 courses to be given by the Colum¬
bia School of Business during the 26th Summer Session of the Uni¬
versity which begins July 3 and extends through August 11, it is an¬
nounced by Dean Robert D. Calkins.
Lecturers and their topics
pose already appearing.
With respect to plates, "Steel" include: Professor Guy-Harold Smith of Ohio State University, "The

'no.' Our business rec¬
ord has been one of alternating expansions and
contractions.
Only near the peak of our most vig¬
orous
expansions have we approximated full
employment, and no approximation in peacetimes
has been so close or lasted so long as the approxi¬
mations achieved during major wars.
Unless we
can learn to manage our affairs more
skillfully in
the future, we must look forward to an indefinite
series of cyclical depressions, some relatively mild,
some

for

tion.
Output of sheets, particu¬
larly, 1 will be stimulated by the
landing craft program, with some
tentative inquiries for this pur¬

to

supplying the continuously recurring demands of
a
long stretch of peace. Can we then maintain a
high level of employment, year in, year out?
"Experience

mer¬

is looked to

soon

way

bolster 1 orders

demands have

extraordinary post-war

and

chant ship programs scheduled to

"The test that will be hard to pass will come
after

craft

landing

Thursday, May 25, 1944

rate

of

200,000
is

sets

a

expected

quarter.
to

get

this year, and

939,178 and 104,701

bales in April one year ago. V For
the nine months ended April

consumption

was

30,
placed at 7,580,-

279 bales of lint and 985,875 bales

of

linters, as against 8,439,480 and
998,366 bales in the corresponding

period

a year ago.

Paper output for the week end¬
ed May 13 was equal to 89.6% of

capacity, against 91,5% (revised)
tion.
In some quarters the belief ning..during
the fall.
Military in the preceding week and 91.1%
is that the decline in output will and associated
civilian war re¬ for the week ended May 15, 1943,
exceed this figure as a result of quirements will take precedence the Aunerican Paper & Pulp Asso¬
the heavy strain on equipment over all other demands, and since ciation's index of mill activity dis¬
the need for additional equipment closed,
As for paperboard, pro¬
from record-breaking operations
in the Pacific Coast area is urgent* duction for the same period was
of
recentr months, the market
it will be the first section of the reported
95%
at
of
capacity,
summary slates.
country to benefit by the new. against 98% in preceding weeks.

eountry-wide basis,
the

Federal

dex,

as

Reserve

taken from
Board's

in¬

moved

the same week a year ago.
It should be noted that in the lat¬
est

week

the

flects

in

while

sales

sharp increase

re¬

part

the", fact that' this
year Mother's Day was on May 14,
whereas last year it fell on May 9,
for; the

four

weeks'

period ended May 13 advanced by
10% over a similar period a year
ago.
For the year to May 13 an
increase of 6%

was

like period in 1943.
A modest increase

noted over

was

reflected

in dividend disbursements

by

porations the past month.

cor¬

Cash

payments in April, amounted
$300,800,000, or an increase
1.3%

over

the

same

a

%

,

month

a

to
of

year

the Department of Commerce
reported.
April's
distributions
brought the total for the first four
ago,

months of 1944 to $1,076,300,000, a
gain of 2.2% over a similar period
in 1943.

•

|
!'■

Volume 159

THE COMMERCIAL

Number 4264

English Gold And

The Women

Roger W. Babson Talks To

C"

;

Silver Markets

| What Kind Of Land To Buy? f

j

1

of good business, after a short readjustment, following the col¬
lapse of Germany. About 1950, however,—unless a marked spiritual
•awakening develops in the meantime—business will be headed for a

&
of

following 1950., If Russia is at that
people asatis-«>factory stand¬ for
ard

the

living

of

full

with

1942

Important amendments to the Emergency Price Control Act of
before its re-enactment by Congress were urged on May 22,

England was unaltered at £241,-

Community
Property
are as follows: Ari¬

ten

held in the

Department of the Bank of

by

*

718.

These

Ivan
Pro¬

Dr.

Wright,

England's buying

The Bank of

Suggests That Specific
Prohibiting Profit Limitations

Inserted

Provisions Be

,.

The amount of gold

•

husband who lives in one of

States.

em¬

The Economists' Com¬

Issue
a

Price Control Act

Co., London, written under date Dr. Ivan Wright, Secretary Of
April 1.
;-.'2v; ■ 'X\ ,0J mittee On Reconversion Problems
Gold

forecast what will happen during
time able to give her

It is impossible now to

the years

Amendments

bullion letter of Samuel Montagu

years

tailspin.

Economist Dfges

reprint below the quarterly

•We

'*'>■•■ Vs
7' •
I have said before, I expect a few

7,
.
..., v';■
BABSON PARK, MASS.—As

2171

& FINANCIAL CHRONICLE

"This could be done by amend¬

ing Section 2 (a) to strike out the
words 'and general increases or

fessor of Eco-

zona, California, Idaho, Louisiana, rate for bar gold remained un¬
will Nevada, New M e x i c o, Texas, changed at 168s.0d. per fine ounce,
surely Washington, Oklahoma and Ore-' at which figure the above amount
turn to
the gon.
These States are fairest to was calculated.
women.
In these States a wife is
left
with
a
The gold output of the Trans¬
entitled to half of her husband's vaal for the months of January
v e n g eance;
but if then; income. If both are wise, they will and February, 1944, is given be¬
Russia has not make a settlement at the end of low, together with the figures for
made good each year and have their own safe the corresponding months of 1943
e conomically,'
deposit boxes and bank accounts. for the purpose of comparison:
the New Deal Even the states under the Old
1944
1943

ployment,

nom

America

ic

at

s

in

decreases

Brooklyn Col¬

then

profits

earned

by

Ex¬

sellers of the commodity or com¬

ecutive Secre¬

modities, during or subsequent'to
the year ended Oct. 1, 1941.'
"In
addition,
Section
2
(b)
should provide:

and

lege

the

of

tary

E conomists'

Committe

on

Reconversion
Problems.

"Section 2
Section shall

.

(b)—Nothing in this
be construed to

au¬

Wright thorize the Administrator to limit

Dr.

"

will be thrown
out
d

o

the

a

w

America
turn

to

the

This is

very

Babson

W.

Roger

d

will

riSht-

u

o

n

impor¬

tant for readers, who are contem¬

land other
cash, to keep in mind. If

buying

plating
than for

any

not for cash, be sure you can pay
in full before 1950.
I certainly
would want to be out of debt
•1950

Post-War
As

by

before, if possible.

or

Farming

hedge against inflation, it
own free of debt a small

a

is well to

place with sufficient good land to

family, provided
other job to supply
you with cash.
A small five or
ten acre farm, with good soil and
water conditions, should be excel¬

:feed

own

your

English
for

win-

than

are

which still treat

are

'better

those

states

law

common

wives

unjustly.

women

V:

Fine ounces

'

February

1,074,754
1,011,672

S.

for

Please

do

write

not

me

trade.

"(2) Insert

changes

Silver
land, good wives and good
children are the best possible in¬
The first three months of the
vestments. But just having them
year were quiet, with the price
"good" is not enough. When set¬ remaining unchanged throughout
tling down for a home and fam¬ the
period at 23 ^d. per ounce
ily, be sure that you select the standard for both cash and two
right State and the proper loca¬ months' delivery. Purchases for
tion within that State.
Consider industrial
purposes connected
climate, taxes and opportunities. with the war effort were wellService Men returning from the
maintained, and this demand was
war
should
especially consider met
mainly from official stocks,
these things. Be willing to spend
but with some offerings on occa¬
some time and money in locating
sion from production sources.
in the right spot considering your
In
Bombay, prices covered a
own physical, mental and spiritual
wide range during the period un¬
characteristics.
der
review.
The lowest quota¬
*
*
*
-v
tion was Rs. 117-2-0 per 100 tolas,
P.

fix profit

or

extended

is

Good

you have some

or

before the Act

Fine ounces

1,029,398
969,017

January

that

declared

equivalent to about 52d. per ounce

should

Dr.

use

things,

Wright

business

profits,

limiting

by

or

converted

self

in pre-war

was

forty-seven other states.

days.

it will be more and
more
difficult for the average
■commercial
farmer
to
compete

which

mechanized farms
developing in this
country and will develop through¬
out the world after this war is
over.
I also fear that even these
the great

with

which

are

large mechanized farms may also
be headed for trouble due to po¬
litical
interference
and regula¬
tion.
ness,
not

Therefore, as a sound busi¬
commercialized farming does
as a post-war

appeal to me

is

equivalent

about

to

62V8d. per ounce standard and is

manufacture

Take Your Wife's Advice

1.

Assure that the

production of

essential civilian goods can be re¬
as

war

price control will be used to
dermine

and

un¬

the private

weaken

that objective, and are
bious wisdom at best.

new

An

than

a

thousand members of Dan

war-time peak price.

interesting

ruary,

a new

report

re¬

the

By

way,

to

me

it

always

has

that

seven

lowed

now be al¬
of •'silver and

days will

for delivery

gion.

The

invocation

ren¬

was

dered

American

the

now

by Rabbi L. I. Newman of
Congregation Rudolph Sholem,
offered

ics

by the Rev. L. A. Edelblute of the
Holy Apostles Church.

its

and

the

Also

benediction

was

participating in the cere¬

monies

John

were

Astor

Jacob

Camp No. 98, United States Span¬
ish War Veterans; Jesse Palmer

very

islation passed to the effect that
no
deeds to land can be "re¬

unless—in

corded"

married

the

case

retired postal employees.
Postmaster

Goldman

of

persons—the purchase is
by both husband and
the case of both sales and

certificates,

issued

approved

Tallon Post, to

wife in

memory

and

men.

Where To

by

the

Dan

the next of kin in

of those who made the

One
woman,

things sure,

if

I

Commander

wreath

Settle
were

a

on

the

tablet located

I should hunt up a man lobby.




in

since

that

costs

Oct.

capital that will be required to
reconvert, and the risks involved.
Price readjustments should then
be granted that will permit manu¬
facturers, with reasonable effi¬
ciency of operation, to realize the
same gross margin that they were
realizing on Oct. 1, 1941, or if they
were
not making
such civilian
goods on that date, on the last
date when they were in produc¬
tion on these goods.

ering

ABA

Agricilfaral Commission Warns
Banks Of Rising Farm Real Estate Prices

J2rum placed

bronze

in

the

Nations

must

prepare

for

readjustment of econom¬
after war production passes

peak,

were

the

conveyed to

Conference of Commissions of In¬

ter-American
message
read
York

to

in

Development

a

from President Roosevelt,
the

Conference

New

in

May 9, according to the
Associated Press,
the President
praised the contributions of Lat¬
on

in-American nations

hemi¬

to

sphere defense and said;'.

Attention to the

upward spiral of farm real estate prices which

to be in progress was called to the banks of the country in
bulletin sent to members of the American Bankers Association on

appears
a

Agri¬

May 18 by Otis A. Thompson, Chairman of the Association's
cultural Commission, and President of the National Bank and

Trust

Mr. Thompson points out that the nation's
prices as a whole have^
risen 15% during the year ended cash, one-third of the other sales
mortgages
for 75%
or
March 1, and are now 38% above involve
Company, Norwich, N. Y.

farm land

the average prices prevailing dur¬ more of the value of the property
ing the four years immediately sold.
"4. Many city people are re¬
preceding World War II (19351939).
:!v" ported buying garms, not to oper¬
7 "We are bombarded with warn¬ ate themselves, but to hold as a
ings that farm land pHces are fol¬ hedge against inflation.
lowing the pattern of 25 years ago
"5. Average land values in 13 of
and that a boom is in the mak¬
the leading farm States have risen
ing," says Mr. Thompson. The bul¬
50%
above pre-war
letin contains a map of the United more than

States,

the

showing

farm

real

prices in 1920, 1933, 1943,
and 1944, based on the average for
estate

levels.
"

"6. Present farm income is

high¬

on record. Likely
it will go
bankers "to
"But many tasks requiring joint
cheek the figures for their own down sometime after the shooting
effort among the Americas re¬
State to compare them with those stops, as it did in the period fol¬
main. One of the most important
prevailing in their community and lowing World War I.
jobs is preparation for the time
to
discuss the farm land price
when we will have to readjust
"7. The trends in agriculture
situation with their farmer friends
our
economics after war produc¬
shown on page 4 of this bulletin
and at all meetings with bank¬
tion has passed its peak.
ers." It lists seven factors in the seem to follow, in the main, those
"How well we succeed in mak¬
farm
land
price situation that of World War I."
ing a smooth transition from war bankers should be thinking about.
"The present situation is more
to peace will depend in large part
,

It

1912-1914.

est

urges

,

presented

purchases. I am gradually coming supreme sacrifice. At the conclu¬
to the conclusion that women have
sion of the ceremonies, the Post¬
a better sense regarding real es¬
tate, mortgages, etc., than have master, State Comnpiander Lewis
most

increases

cation has been made to the effect

678, American Legion,
largest post of the Legion in
the State of New York, and com¬

Post No. 1068, American Legion;
unfair that
General Theodorus Bailey
Post
husbands can put their families
No.
104,
Veterans
of Foreign
in debt without the approval of
the wife. It is true that a man Wars; Railway Mail Service Post
cannot sell land without his wife No. 957, American Legion, and
signing the deed, but he can buy Postal Garrison No. 1639, Army
a
whole township without
her
and Navy Union. The members of
having anything to say about it!
The women's club should get leg¬ these organizations are active or

seemed

shall

Administrator

The

have occurred

Government notifi¬

Tallon Post

posed entirely of postal employees, gold instead of. the two clear
good were present at the ceremonies. working days to which forward
up-grade and The drum and bugle corps of the dealings were limited by a notifi¬
much of it will sell at even higher Dan Tallon Post supplied the mu¬ cation issued last September. *
prices, but it is as dangerous to sic for the program, and Past
speculate in land as to speculate Commander Ralph J ones presided.
FDR Lauds Contributions
in anything else. This especially
Addresses
were
delivered
by
applies to those owning commer¬ Postmaster Albert Goldman and Of Latin-American Nations
cial citrus groves, fruit orchards,
W. E. Lewis, New York's State
potato acreage and market gar- Commander of the American Le¬ To Hemisphere Defense
dens which have been paying big
Advices to the effect that the

<

of very du¬

4. Insert

was

It is true that the price of

profits during the war. After the
war the prices of such land could
drop again to former pre-war
prices. Now may be the time to
take your wife's advice and sell,
leaving /the money in the bank
and
buying the same property
back again a few years hence at
half the price.
.
4

able.

consider

1, 1941,
production is cut
the effect of operations at a low
back during the remainder of the>
rate of capacity, the amount of
period of hostilities.
investment in fixed or working
2. End the fear that wartime
sumed

farm land is on the

■

of

it¬

resume the
civilian
goods,

to

a special section cov¬
the particular problem of
Veterans Of N. Y. P. O.
"Nothing in this Section shall
ceived from Teheran on March reconversion pricing.
"With these objectives in view," be construed to authorize the Ad¬
The annual memorial services 29 that about 16,000,000 ounces of
ministrator to require manufac¬
for the Veterans of the New York silver had been sold through the Dr. Wright "said, "I suggest the
amendments
to
the turers to reduce prices on sofne
Post Office who died during all National Bank of Iran to the Gov¬ following
products to offset readjustments
of our wars, was held in the lobby ernment bf India; it was stated present law:
"(1) Specific prohibition of the granted under this Section, or to
of the General Post Office, Eighth that the silver had already been
use of the Emergency Price Con¬
require compulsory pooling
or
forwarded to India.
Avenue and 33rd Street, on Tues¬
trol
Act
to
regulate
business cartels among manufacturers of
According to information re¬
day, May 23, at 12 noon. Com¬
these goods."
v
mander Eugene T. Crum and more ceived from Bombay early in Feb¬ profits.
a

Memorial Services For

the

investment.

position

entirely

finds

formal

hundred

Each year

work

war

-

standard, on Jan. 12, after which enterprise system,"
property,", prices advanced steadily, the rise
3. Limit price control to the
let¬
being accelerated towards the end necessary objective of wartime
lent insurance. Commercial farm¬ ters. I know something about the of March by bear covering and price stabilization, without pursu¬
ing, however, will be just as dan¬ laws of Massachusetts, but cannot speculative buying; the quotation ing ulterior social and economic
gerous in the years to come as it keep posted on the laws of the on March 29 touched Rs. 140-0-0, reforms that bear no relation to
several

in

to

application for price re¬
He suggested revisions designed adjustments shall be made to the
Administrator as soon as practic¬
to:

*

fixing them.

The last time I

legal advice.

received

industry

an

which has been largely or

mentioned "community
I

cov¬

..

"Section 4 —When

to specifically
prohibit the
of the Act for regulation of
Ivan

Section 4

lows:

among

other

a new

ering reconversion pricing, as fol¬

be

made,

margins in industry

a

memorial

Post

?

Office

.V; ';1.'.1

These are:

upon

how

we prepare

now."

General Henry H. Arnold,

Com¬
manding general of the United
States Army Air -Forces, in ad¬
dressing the Conference, told the
delegates that without the co¬
operation of the Latin-American
nations "the victory which we can
now with certainty foresee would
have been less clear."

"1. More

sales

of

farm real
before,—

estate in 1943 than ever
even

"2. The
a

number

of

farms

re¬

profit after only a short

period of ownership is
considerably.
"3. While about

farms changing

Mr.

Thompson said

accompanying the

in 1919.

sold at

hopeful than that of 25 years ago,"

increasing
;*

one-half of the

cause

aware

bankers
of

boom and
and

the
are

means

and

in his letter

bulletin, "be¬
farmers

dangers

of

a

are

land

thinking about ways

of avoiding

the cata¬

hands are sold for clysmic effects of any break."

;

2172

,<!-» Vr,

-

«*«w

-"••*V;*»- -.

***** * »

THE COMMERCIAL & FINANCIAL CHRONICLE

(Continued from first page)

.,

terest

in

pafticular in-

no

this

political
entity, which appears to have
as its main
purpose in life the
support of candidate Roose¬
velt, the promotion of the

:

of Mr. Wallace and the

cause

century and a half,
betrayed them or

business
the

Its

in all its manifestations.

American

idea

has

failed.

They are being told
this day by day, as we have
been during the past dec¬
ade, not only by the wordchanging wizards in Wash¬
ington but by business men
and labor leaders, and it is

that part of it
just quoted, is of signficance
primarily because it well
typifies so much of the non¬
sense that is so often
repeated
by so many of divers politi¬
cal faiths concerning the post¬
war era, what it is
likely to
bring forth, and what so
many star-gazers promise that
or

falsehood

a

more

cruel than

wound of flesh

any

this

will

war

The

self-betrayal

ation of the past on
of business
is

the part
labor leaders,

or

brutal breach of trust

a

to the millions of

tion disaster lurks.

Only
its

day

a

Manhattan Company, was elected
President of the Kings County

Then

Bankers

Association

the

for

en¬

16 at the

Brooklyn Club, 131 RemStreet,
Brooklyn.
Charles
Oldenbuttel, Vice-President of the
sen

Peoples National Bank of Brook¬

lyn,

elected

was

John

J.

Vice-President;
Assistant Vice-

Hayes,

President

of

Manufacturers

the

Trust

Company, was elected Sec¬
Vice-President, and William
J. Grange, Executive Vice-Presi¬
ond

dent

of

the

Brooklyn,

Citizens

of

Bank

re-elected

was

Secre¬

tary and Treasurer.
The

following " W

and

sons

of

the

elected

e r e

Executive

Com¬

yearnings,

took

a

occasion

at

of the

meetings
Board to

of

one

who

serve

ex-

officio: George P. Kennedy, Presi¬

dent, Lafayette National Bank of
Brooklyn; Harold F. Klein, As¬
sistant
Secretary
of
Brooklyn
Trust

Company, and J. H. Law¬
Assistant Vice-President of

and

Upon

that

occasion,

where

and

brothers

we,

or

ment,

; :

of

sons

govern¬

•

going to guaran¬
tee them economic
security
in any sense and still leave
are

them their civil

i

:/•

liberty and
personal freedom, if they
still

it.

want

true.

.

.

rather

Let

.

It

is

not

tell them

us

that

nobody can
i pledge them full employment

as

'"•nent

workers

every

they
them

fix

as

national

a

a

or

■

;

anyone
without
his
occupation,
_

saving

and

for him.

;

.

the

words

ning"

"national plan¬

mean

of

all, to which

community

none

To

pretend

worse

else-

or
.

the

to

It is

spirit

and

faith of American life.

is

It

shameful incitement to
class strife in the American
a

community, and business
leaders, above all, should
be

humiliated

that

any

among them should lend
themselves to it, for what¬
ever

success

passing

or power,

Certainly the

armed

of

purpose

popularity
v

men

forces, need

May

attend

in the
such

unlimited

his

than
.

a

full

belly.;

Above all, let

us

.

efforts.

.

.

.

not tell




worst of all—the

ber of

us

are

.

Aug. 24, 1944, which were
on May 19,
were opened

offered
at the

Federal Reserve Banks

larger

deceiving

on

May 22.

num¬
our*

During the
century, we were
largely dependent upon the rail¬
roads

for

a

the

in

was

shores—the railroads
But

these

1939,

speeded up. And
brought to our

were
war

ready.

were

took

management

no

mands.

During : the four .years
1940-1943,
the
railroads
spent
more than IV4 billion dollars for

movement

of traf¬ new
and
improved equipment.
today the back¬ They installed nearly 238,000 new
bone
of our transportation sys¬
freight cars and more than 2,500
tem.
No substitute has yet been new locomotives. More than 700
devised upon which ^ the public million dollars went into the bet¬
could depend lor the mass trans¬ terment of
roadway and struc¬
port service now furnished by the tures. These improvements were

fic, and they

are

railroads.

solely for
handling more
traffic. The total expenditure was
financed by the railroads them¬
planned

However, as a people we take
most everything for granted. We

the

The

details of this issue

are

as

mand

We

of it.

more

have

we

that

assume

always! had

Total applied for, $1,951,360,000.
Total

accepted,
$1,207,114,000
(includes $57,022,000 entered on a
price

basis

at

99.905

and

it

and

to

we

Average price 99.905 equivalent
of

rate

little

thought to the forces
to its creation. As a re¬

sult,

we paid little attention to the
well-being of the railroads prior
to the first World War. As long
as the carriers provided satisfac¬

tory service and did not ask for

discount
per

approximately

annum.

Range of accepted competitive

0.356%

per annum.

Low, 99.905, equivalent rate of

approximately

0.376%

per annum.

of the amount bid for at

the low price was
There

ilar

was

the amount

accepted.)

maturity of

a

of

issue

selves

have

bills

of

on

a

sim¬

May 25 in

$1,007,677,000.

•

about

many of these
Nor need the speaker

limited

his

remarks

to

the

incompatibility of statism
and personal liberty.
No one
can
promise the more abun¬
dant life through collective
action of the sort in question
with or without personal free¬
dom.
the

how

If

the

others

reformers

think

become known

as

and

they know

eliminate

to

what

has

the business

of

management.

And

ignorance
judgment.

so

pairs has been reduced to
time

low

14%
of

point.

In

of all freight
locomotives

all

repairs.

freight

Less

re¬

all-

an

1939, nearly
and 20%

cars

awaiting

were

than

3%

of

the

and only about 5% of

cars

War, with

a

distance

ple

interest in the rail carriers.
the end of the
railroad

tion

war

brought

demand

policy.

Act

of

for

And
a na¬

sound

a

The Transporta¬

1920

or

it is with most of

the "advanced

day

the

was

result.

to

needed.

day

This

is

an

aver¬

100,000 passen¬
gers for every hour of the day and
night—the equivalent of the popu¬
lation of many of our
important
cities.

roads

Each

age of more than

or

the rail¬
provide the kind of a
system: the
country

41/2

an average

miles.

average
150 miles.

than

nearly

freight

500

before.

ever

haul

about 2V2 million peo¬
distance of more

carry

This Act really constituted a part¬

obligated

of

an

nership.

It

than

they

million tons of

operation
of
the
finally aroused public

tion-wide

service

Each

they

On

the

terminal

average,

train

passenger

two

every

freight

a

leaves

now

seconds.

1943, the railroads handled

a

In

more

In

than twice

be

and passenger traffic as was car¬
ried
by
all
other
commercial

return, the carriers
permitted to earn a
fair return on the capital invested
in their transportation facilities.
to

That

management dis¬
charged its obligation under the
Transportation Act, is admitted.

earnings fell far short of
a fair
return, is common knowl¬
edge, When the railroads emerged
from
governmental
control
in
1920, they were not in the best of
condition

physically or finan¬
Therefore, the job of re¬
—

overnight.

could

It

be

not

required

done

little
Millions
a

time and it cost

are

now a popular idea in
quarters that the railroads

too prosperous—at least more

than

prosperous

Of course, the rail¬
doing better than they
did in the depression years. And
are

this is true of most lines of busi¬

However, I hope; railroad
history is not about to repeat it¬
self.
Every ; time the railroads
manage to get;five or six steps
ness.

of roadway and

the

and safer than

At the

before.

ever

railroad

any

ought to be.

roads

ahead of the

structures. More
were
spent for modern
locomotives, cars, signal systems,
safety devices, and the like.
While
management was later
criticized for these expenditures,
the performance of the railroads
over
the past two decades has
more
than
justified them.
But
what is more important, the peo¬
ple got the kind of rail service
they wanted. In a relatively short
period of time, traffic was moving
on
dependable schedules—faster

freight

There is
some

money.of dollars went for the betterment

millions

much inland

as

transportation agencies combined.

railroad

those

ways

earnings

back
to

sheriff, there
who

in

are al¬
lop off
the roads

want

and

to

put

the bread line.

We

seem

forget that the railroad share

of national
been

too

prosperity has always

little—and

most

of

the

time, it has come too late for the
public good.
While the Transportation Act of
1920 carried

a

hope that the

car¬

riers

would be permitted to earn
the so-called fair
return, the fact
is that the railroad
industry did
not

this

earn

single

year

which

the

fair

return

in

a

of the

period during
return provision

fair

in effect.

the volume of trade
railroad earn¬
ings increased;! the credit of thecarriers' improved; and investors

charges, averaged $613,692,000

evidenced

rail

nually.

en¬

the first

the

years

same

time,

was

and commerce rose;

renewed

securities.
But

abled

;;

before
the

faith

in

'

better earnings
to absorb

carriers

rehabilitation

expenditures

on

a

sound financial

basis, the post-war
prosperity had vanished. A busi¬
ness depression had arrived for a
long stay. Traffic volume of the
railroads

cycle, their confidence is but
lack of

not asked

tation

were

inclined to be criti¬

we were

habilitation

High, 99.910, equivalent rate of
discount - approximately

(56%

was

help.
Today, equipment in need of

the
locomotives are now
going
through the shops.
As a result, the railroads are
producing more units of transpor¬

cially.

bids:

discount

of

rates, we assumed that
they were all right. When times
were
good, we were friendly to

increased

That rail

accepted in full).

0.375%

give

necessary

were

follows:

fixed

executed

and

purpose

accept improved service as a com-;
monplace and immediately de¬ selves. Government

railroad

a

Yet
the
danger is much
compulsion.
broader than is thus indi¬
These boys
may come back
Many are being de¬
believing that civil liberty cated.
is less
important or less ceived at home, too; indeed,
problematic in the future one often suspects that-

;

programs
when the

governmental

Secretary of the Treasury
on
May 23 that the
for
$1,200,000,000.
or
thereabouts, of 91-day Treasury
bills to be dated May 25 and to

evidence of their

sonal

.

started

turbance

railroads,

tenders

things.
is

otherwise

improved.

greater part of

But the first World

The

anounced

.

.

than falsehood.

treason

.

our

standards

cal

im¬

were

in America

anything dif¬ champion.

ferent in the end from
per¬

weak¬

common

where in the world.

the first time in human his¬

'

the

mune,

pretend to them that, for

tory, something has hap¬
pened in America while
they were gone that makes

.

"

not

us

.

or

in the

planning
spending,

Let

sponsibility to make pros¬
perity or depression for
everyone else, which they
were too
wicked, selfish or
stupid to use with the wis¬
dom, benevolence and purity which-has since been
permanently established in
public' office.
The

nesses

consumption
.

the

Twenties,
other time, was a
thing apart from everyone
else in America, a collective
group of people with com¬
plete power and sole re¬

were

for

v

in

that

crimes, the ignor¬
greed, the indo¬
lence or injustice, which
may
have brought down
the great depression of the
Thirties, or any of the past,

statistical standard

a

falsehood

at any

ance

en¬

employment or payrolls
or
consumption and still
leave everything, or any¬
thing, about the life, labor
or
thought of everybody or
anybody as it was before.
Let us, tell them instead
that
nobody, business or
government, can plan to¬
morrow's employment for

to

errors or

income

people

the

.

one

figure for
force

power

without'

depriv¬
by one of
individual freedom
have.
Let us tell j
frankly that no one

ing them

can

permav-

purchasing

.consumers

or

confirm

confusion and

our

business

that

ours

or

is the

are.

not

us

by

fear

or

labor,

Treasury
Bill Offering

mature

them

not tell these

us

they

Let

Virgil

Jordan said in part:
Let

State which

spirit of that hopeless pur¬
gatory of Europe and Asia

in the armed forces.

men

and

transportation needs.
The country grew rapidly.
Trade

bad,

Results Of

despair of dependence
the

on

tragedy
likely to flow from constant
preachment of such deceit to
the

are
defending Company,
destroys their

it

dons them to the darkness

Conference

they met

railroads

the rail carriers. When times

rence,
the Public National Bank & Trust

faith in America and aban¬

of the

warn

for

us,

the

throughout

,

the

came

.

Vice-President

brothers who

before this
forth
keener mind

or so

"liberal" group set

everywhere

the land.

*

new

products

Vice-President of the Bank of the

mittee of the Association, in addi¬
tion to the President and First

that lies beneath
any such
confession of sin or
repudi¬

of us, hearing and
repeating such things so of¬
ten, are in real danger of be¬
lieving them. In that situa¬

Assistant

upon

inflict

them.

too many

Ahern,

members

there is

to fear that all

J.

faith

or

It shall be like—and because
reason

(Continued from first page)

William

The chances—they endeavored to keep
ment, either in the Thirties suing year at the annual meeting and commerce increased.
or at
and living ahead of the wartime traffic de¬
any time before in the of the Association, held on May people prospered

past

furtherance of the New Deal

program,

SIS

•4

them, that because business
or
government did not and
could not give them both
freedom and full employ-

new

j*

Ahern Named Pres. Of

The Financial Situation
We have

Thursday, tylay 25, 1944

drifted

to

net

,

the

income

decade

after

taxes

1921-1930,
and

fixed
an¬

This period included the
prosperous years which followed
Over the next ten

war.

1931-1940, net income

aver¬

aged only a little more than $40,000,000 annually. This period in¬
cluded the depression years fol¬
lowing the business collapse of
1929.

;

=

Over the entire

and

ebb

low

During

earnings disappeared.
Investors
again lost faith in, rail securities

riod

and the credit of the carriers

twenty-year

pe¬

annually.

ished.

-.VHV.

:";V.

c

?',V.

van¬

1921-1940, net income

aver¬

aged less than 327 million dollars
These figures speak for

themselves.

.

But railroad managers were not

They certainly do not
indicate high rates or excessive
earning power for a 27 billion dol¬
lar industry which is essential to

planning" for discouraged. They remained hope¬
It is deception; it ful although there was little rea¬
the national welfare. This is true
son for optimism. Even during the
is self-deception;
it is ex¬
depression, the railroad industry particularly when we realize that
tremely hazardous.
Let it made substantial progress. Year over this same period, more than
proceed much further, and it after year, management estab¬ 10 billion dollars went into the
might take a century or two lished new high records for effi¬ improvement of railroad plant
post-war.

under the most favorable cir¬
cumstances

to

damage that

ciency in railway operation.
piwehVeht

programs

were

Im-

prog¬

may

remedy the ressed-'hs1'far as resources would
be done.
ft&yiirWhen the European disj

t

.

) j.-

;t

■

and

equipment.

-

During the past three years
1941-1943, net income of the *carriers has
.

i'

■

arisen to
J

.

J

''

iV-

t

'■

an
'V.

average
-

j

f.i

'

of
i ■''>

'

f
h
i

Volume 159

THE

Number 4284

COMMERCIAL
nearly as'

$758,500,000 annually.; And money, and the public looks upon
the indus¬ this-earning power with approval.
It can be liberal with stockhold¬
try has likewise improved. Here
ers, strengthen credit position, and
we have a clear illustration of the
reserves
for the future.
difference between a starvation create
ration and a living wage for the When times are bad, it is free to
railroad industry. We also have a reduce operations or even to close
^
-v
demonstration of what railroads plants.
But
the
railroads
cannot do
do with money-r-when they are
these things—they operate in a
permitted to earn it.

about

enabled

have

earnings

Better

.

house
Bank loans and other

the rail carriers to put their
in

order,

obligations, contracted during the
depression years, are being paid.
Funded debt is being reduced. Re¬
serves are being set aside for re¬
newals and betterments
in the
post-war period. Improved credit
has encouraged refunding of long-

somewhat

interest rates.
quarrel with this

be no

can

policy—it is definitely in the
lic interest.

pub¬

;'■-■■••'S -v;?*

!

ILO

Adopts Charier Of Liberties And Rights
For All Peoples For Inclusion In Peace Treaty

way

to

The 26th International Labor Conference at Philadelphia ad¬
journed on May 12, following the adoption unanimously of the social
provision suggested by the United States for inclusion in the peace
ation.- '•;'j',v
The wartime job of the rail¬ treaty and sending a strong message to the enslaved peoples of the
roads may be long remembered. occupied countries of Europe that their day of deliverance was not far
off. We quote from special advices from Philadelphia to the New York
The public may be more friendly
"Times'' by Walter W. Ruch, whc*to the rail carriers than ever beT gladly second this resolu¬
reported that at the same time the'

cheapen transportation is through
traffic volume and efficient oper¬

Rates,

"

But shippers and travelers

fpre.

the

are

service.

British Government made it clear

tion, and with it

that

buyers of transportation
When the war ends, their

sage

Furthermore, the railroads
must of¬

will also face, highly
competitive
markets, and they
will be looking for the best serv¬
ice at the lowest cost. If the rail¬
roads

are

to

the

expressed
would

be

hope

would

15

the

prevent

that
from

years

victors

for but

done

now

again

if the carriers could se¬

to

be

mutual

of

time in

some

of them put

"Outlining

when I refer to post-war

than

concern

quarter of

a

a

the

common

portation policy and that the field
of transportation will be a fair
field—with equality of opportu¬

plementing

struggle

nity Tor all forms of service.
'

Each

transportation agency
the sphere where it
do the best job at the lowest

vide

can

ence on

an

social

Atlantic

Charters,

for

the

and

the

international

domestic

lot

of

objec¬
Phila¬

United

Nations
It

enemy.

■

"

'We express the hope that the
United Nations and other mem¬
bers of the conference will unite

their efforts

to promote in every
the economic and social re¬
covery of all the countries sorely
tried by enemy occupation and by

way

the devastation due to

confer¬

problems of

United

the

common

adds:

and for the im¬

the

of

the

of

delphia

should occupy

man

of

of
the

against

States' proposals also included an
amendment by Australia to pro¬

tives

betterment

the

heroic resist¬

of the essential factors in the

one

it.
specific points

expresses

that the

of the occupied countries is

ance

seven

the

United States Gov¬

delegate,

conviction

at

for

resolution, introduced by

ernment

century,

tion, I am assuming that we will
then have a sound national trans¬

,

Frances; iPerkins, .Secretary

of Labor and

prob¬

lems

showed

by

short time longer, when

a

"The
Miss

more

on

any

and they expect to meet it
when the war ends. But
competi¬

years,

them

strongly bound together

it. They have
for years and

they meet
meeting it

been

and

low rates and replacement work which could be

which

The railroads know competition

coun¬

stand

We are

the traffic, they

when

to those

them to

ask

coming to rescue them and
make them well again.' "

must continue to dealing with the Germans in the
improve the quality of service and proper way. The advices as given
in the "Times" by Mr. Ruch went
regardless1 of - whether the Vol¬ to reduce the cost of producing it.' on
to say, in part:
They must keep "pace with scien¬
ume is large or small.
"As for the occupied countries,
While the railroads may have tific developments ;|n the art of y
themselves, their delegations in
encountered difficulty in, creating railroad transportation, and they
the closing hours of the confer¬
cash reserves in the past, they must have the best railroad tools
ence
presented
a
declaration
should certainly be permitted to that genius can develop.

fer service day and night for any
traffic that may be moving, and

we convey a mes¬

encpuragement

We

tries.

there

that

of

heroes and heroines in those

indifference

moral

no

within ' the ' next

their share of

secure

regards Germany, it felts it
dealing with murderers and

as

was

products

cannot shut down—they

There is much maintenance

Moreover, these

.

sound

2173

.

what is more

sive rates.

the

that

dence

important is
the fact that present rail earnings
are
not the result of high rail
rates, fares and charges. The av¬
create them in the future. If there
erage ton mile rate is now only
a.v little
more
than nine mills. was ever a time when the rail¬
Think of it—less than a penny for roads should prepare for the rainy
moving the average ton of freight day—that time is now. This war
is demanding a more intensive use
a distance of one mile. And what
is still more important, this is the of railroad plant and equipment
than ever before. It goes without
total cost of the service—it is all
that any one ever pays; for it. It saying, therefore, that the carriers
will emerge from this war with
should be apparent, therefore, that
deferred
maintenance, and
the
present earnings are the result of
need for replacements all along
a
high traffic volume and effi¬
cient operation—and not exces¬ the line.
But

r

two

in.twenty-five years.; This is evi¬

Wages constitute the largest item
of operating cost, and a govern¬
mental agency assists in the de¬
termination v of
railroad
wage
rates.

as

The average ton-

milerate is lower than it has,been

fares, and
charges—the selling
prices of railroad transportation,
are
controlled
by
government.

term debt at lower

There

restricted field.

ton-miles

many

did in 1929.

cars

the5 credit position of

& FINANCIAL CHRONICLE

em¬

"

'We

ILO

the

of

war.

determination

the

assert

associate

to

its

en¬

deavors with the concerted will of
the oppressed

nations for the pur*

being maintained in
real cost.
What we know as a ployment and unemployment in pose of rebuilding their social life
costs of Railroad cure the necessary materials, sup¬
according to the principles of in¬
"complete service" may require the near future.
operation. Since 1939, the aver¬ plies, and manpower. The work
ternational solidarity and respect
"The proposals suggest that the
is being deferred solely as a result the use of one or more types of
age hourly wage rate of railroad
for the fundamental spiritual and
of wartime conditions. However, transportation service. Therefore, peace treaty, or some other treaty
employes has increased more than
;'; ;
to be concluded before the war is human values.'"
the carriers would be glad to set transport agencies should be per¬
23%4 Average annual compensa¬
Under date of May 10, Phila¬
to
provide a complete over, provide international guar¬
aside reserves to cover deferred mitted
tion—the take-home money—has
and
replacements, service—when it is essential or antees of the right of a job for delphia advices to the New York
■increased 38%. The cost of fuel, maintenance
ever^ person who wants one, of "Herald Tribune" by Paul Toben.desirable.
materials and supplies has risen charging these amounts to current
raised
standards
of
living,
of kin staled that two basic proposals
Commercial transportation
nearly 30%. In 1939, rail taxes operating expenses, and spending
minimum
standards
of employ¬ which
representatives
of
the
the money in the post-war period. service, regardless of which
were less than one million dollars
United States, Great Britain and
Such a policy on. the part of the agency provides it, should pay its ment, and of effective recognition
a
day—they are now more than
of the right of freedom of associa¬
the 39 other nations attending the
railroads would have the approval way, and it should contribute its
five million dollars daily,
tion and of collective bargaining.
current parleys will demand be
of the Interstate Commerce Com¬ fair share to the public tax chest.
v
Furthermore, the railroads have
"In
addition,
the
resolution incorporated in the peace treaty
mission.
Subsidies, - preferred
treatment,
made
voluntary
reductions
in
makes the governing body of the at' the
end
of " the
war
were
■Unfortunately, the taxing au¬ and special advantages, should be
rates in order to ease critical situ¬
International Labor Organization adopted today at the 26th world
thorities are unwilling to recog¬ eliminated or reduced to a mini¬
ations created by the war. and as
a
One by
watchdog of world-wide em¬ conference of the: ILO.
When public property is
nize these charges as h current mum.
charges are

the face of rising

-

,

a

effort it¬

direct aid to the war
There

are

operating

expense,

sist that such

and they in¬

expenditures cannot

used
and

private business venture
private gain, a fair and

in
for

ployment, with the duty of calling

the whole assemblage of govern¬

special conference of the ILO
when in its opinion there is a

ment,

tries.

also greatly re¬
duced fares for members of the
armed forces traveling on fur¬
self.

,,

.

and considered an

a

management

and

labor

delegates, the other by a commit¬
until the reasonable price should be paid
danger of a substantial fall in gen¬ tee. These advices added:
money is actually spent.
There¬ for such use.
lough.
These voluntary conces¬
eral employment levels. ;
"First adopted unanimously by
Government regulation is es¬
sions
"Such
aggregate a sizable sum fore, there is nothing to be gained
conferences
would
be
the conference was a charter of
by setting up such reserves at this sential, but it should be applied held to recommend
each year.
appropriate liberties and rights for all peoples,
time.
They would become re¬ in equal measure to all forms of
This wartime record of the rail¬
measures to prevent the develop¬
coupled with obligations upon the
serves only after they had been
transportation. It should protect ment or
spread of unemployment governments
roads speaks for itself. But it is
of
the world ;'v to
taxed. And it would be necessary the public interest, and it should
and to establish conditions under maintain
not something that just happened.
peace by providing ade¬
for the carriers to set aside more foster and preserve our transport
which high levels of employment
On the contrary, it is the result
quate social, labor and economic
than five dollars in order to set agencies in full vigor. It should
of planning and preparation for
might be maintained or restored.
standards.; This is titled 'A Dec¬
up one dollar of cash reserve for not hamper managerial functions,
"Thunderous applause greeted laration Concerning the Aims and
more
than twenty years. But in
spending in the postwar period. and it should not crush initiative. the unanimous
adoption of the Purposes of the ILO,' although
spite of this fact, there are those
This is an interesting situation, It should permit carriers ta con¬
United States resolution and the
who always find it difficult to
spoken of as the 'Philadelphia
particularly in view of the fact duct a profitable business under resolution
have faith in a railroad system
pledging full and swift Charter' and compared by the
that Federal income taxes of the honest, efficient and economical
assistance to the occupied coun¬
which is the envy of every nation
delegates to the Atlantic Charter
railroads
now
equal the
sum management.
be charged to

expenses

•

in the world.

*

Perhaps,

the

however,

which government pays to the
Such a policy would provide a
cheering
and
hand-clapping
emerged railroads for the transport of
sound solution for most of our
reached its climax for the day in
control in Army and Navy war freight.
transportation problems. It would Mitten Hall, at Temple University,

railroads

the

When

the

of

governmental
management was criticized
But this is
only part of the encourage all transport agencies when Sir Frederick William Legfor not having plant, equipment
story. The post-war period will to keep pace with developments in gett,
British Government dele¬
and facilities that would take care
bring a revival of keen competi¬ the art of transportation. It would gate, sounded his stern warning
of our trade and commerce. Ten
tion :V in
transportation.
Motor stimulate constructive competition to Hitler in seconding the latter
years later business collapsed and
trucks, buses, and air ships will and discourage cut-throat and de¬ resolution.
'
■,:-V.7'v5'-;'

from

1920,

management

was

criticized

for

having too much plant, too many
facilities, and a surplus of equip¬
ment.
In fact, there were those
who insisted that one-third of the
railroad plant should be junked.
V But while we were trying to de¬
cide

what

could
years

be

portion of the - plant
scrapped, another ten

rolled by and

management

question—are the
handle the
traffic demands of war. For the
past five years, there have been
dire predictions that the railroads
would fail—that a break-down in
rail transport was just around the
corner.
Nevertheless, the -rail¬
roads have given a good account
of themselves in this war. More¬
over, they will continue to meet
the test—if they are. able to se¬
again faced the

railroads equipped to

.

the .manpower necessary
operate the roads efficiently.

cure

.

The-

railroads

compared
But there

are

to

sometimes

.

return to the field

better than ever before.
In

the

competition. If the newer forms
of transportation did not attract
private capital, we dipped into the
public tax chest for the necessary
funds—even when this meant the

duplication.. of facilities
which
relatively few people, demanded,
and which nobody really needed.
This is not

the

ideal

are

good,




A

sound premise.

in

efficiency—when

it

operates as nearly as possible to
maximum capacity.
Present-day
operation of -the railroads proves
this fact. They are carrying
twice,

as

much

traffic

nearly

as

they

moved in the first World War pe¬

about, one-third

less

equipment and 500,000, fewer, em¬
ployees than they had lherU,.Qne
freight car is-tQday :prodpcipg.a$
manv ton miles of service as Hyp

industry
freight
generally is relatively free to earn
times

a

transportation agency approaches

with other industries;
marked difference. riod—with

country is normal, other
industry enjoys a greater measure
of freedom than do the railroads/
When

past, our transportation

policy has been based upon the
premise that the way to cheapen
service is to create more and more

is a

When the

of commercial

transportation.
And they
will
probably come back bigger ana

cars

.

President

"Second

.

the greatest
the face of the
globe.
It provides the best rail
service at the lowest real cost, to
be found anywhere. It has served
us faithfully for more than a cen¬
tury—in good times and in bad
possess

times.
not

This

created

on

railroad

system

was

of

vately owned and operated—al¬
though they have been under gov¬
ernmental regulation and super¬
vision for more than fifty years.
They are a product of the Amer¬
ican System and they demonstrate
private enterprise at its best.

However, the railroads are
the sole determining factor in

not
the

prosperity of any particular sec¬
tion of the country, or of any spe¬
cial industry. They cannot be used
successfully as the shock absorber
of

economic

disturbance.

They

by

the

wave

It

was

not created

cannot create markets for surplus

by governmental, edict. We have
as
a
result of the vision, the
courage,, and,

products which the world cannot
consume.
And they cannot spend
money which they are not per¬

a

mitted to

magic wand.

a

it

the determination, of
long line of empire builders—

the

men

who made America what

it is today.
In

this

J

earn.

all they ask, is that we shall have

the railroads
doing-a job which has been
war,

are

faith in the integrity

of

an

indus¬

of

'general

maintain

They

are

pri-

a

still better job in the future.

plan

refusal to enter any

to

undertaking

high levels of employ¬

ment", and

proposed instead that

governments be called on to bring

positive
service'

rather

action
to

the

cause

than

Tip

of working

people and the economic welfare
governments.

this

effect

mously.
"The

which

facilities.

a

international

•treaty

war

Government,

J." A. Beaslev,.5 its dele¬

gate, said that the American

of fair play that we

produced in 1918, and of

special treaty or agree¬
nations'
which

constituted

same measure

with the opportunity to do

the oppo¬
calling for a

over

Australian

"The

,

try which is willing to stand on
its record; that they enjoy the

wage;

or

through

claimed

accord to other business; that they
be
permitted - to earn • a living

3

recognize that it is the duty
of every government 'to maintain
a high level of employment.'

tation.

ac¬

to

Australia,

between

ment

-

as a miracle of transpor¬
They have.not asked for
government subsidy or preferred
treatment. They are not seeking
special grants for the construction

States

would

of

All that the railroads need arid

46

of

sition

promote

now

United

a

proposal, adopted in
the committee on recommenda¬
tions to the United Nations by a
vote

We

was

Government

structive competitive

railroad system

Churchill.

Minister

would

practices. It
operating econ¬
omies, put a brake on the need¬
less duplication of service and fa¬
cilities, and restrict, the costly
waste in our present system of
transportation and distribution.

implementation
enunciated by
Roosevelt and Prime

principles

.

was

A resolution to
adopted

unani¬

-

*

resolution

for

represented
the

United

Great .Britain

were

the

a

special

limit

States

to
and

preoared

e<vnrmt themselves in advance

the peace."

to
of
j

2174

THE COMMERCIAL

tion

Four Post-War Fiscal Problems

or

natural

as

inevitable rule of

an

things which I think
reasonably

be

to

level

answers

able.

That

the

about

great deal of discussion over the
past year about business respon¬
sibility to provide jobs. Today we
are
more
likely to hear about
business responsibility to provide
markets.

People who talked about pro¬
viding jobs really had in mind
that the jobs would come from
the

markets.

is

guage

the

But

much

lan¬

new

and

better

our

thinking is much clearer when we
responsibility
provide markets; jobs and in¬

think about business
to

vestment

will,, come

the

as

mar¬

kets themselves

are developed.
afternoon, however, I am
not going to spend any more time
on discussing business and the op¬
portunities of business in bringing

This

about

the

conditions

would

all

about

another

desire.

I

For

about

a

of

world

new

kering with money.

quite set
The

post-war
people

in

bringing
through tin¬
The individ¬

for

their

own

private welfare they generally get
rich.
I

want to make clear that I do

objective

to

more

high
tate

through

our

manipula¬
should

we

fiscal

the

remove

policy is

obstacles

and

to

to

facili¬

prospects of getting there.

Here is

•

the

What

our

consumption
our

attain

we can

tions of money.

try to do with

medical illustration I

a

think

may be helpful.
A doctor told me once

\

me

upon

a

attempt
diabetes, that is to
correct the disorders of" metabo¬
control the

lism

so
that the body could be
strong to resist the second disease.

think

of

the

fiscal
same

must

"we

to

see

policy in
that

way;

it that

fiscal

our

policy

and our monetary meas¬
help in moving goods from

ures

producer
at

sumer

distributor

to

to

con¬

high

level and then
the
other
problems
which
we
have, and there are many of them,
be

can

the

a

studied

light of

and

corrected

healthy

a

there

in

economic

largest in peoples' minds.
First, what about taxes after the
war?

clear that there

debt?

And

can we

expect from

finally, what about social

security?
In

remaining minutes that
I

should

these questions.

put before you
four

questions

which
to be

if

seems

to

like
I

each

on
a

to

discuss

should

basic

like

of

to

these

principle

me common

sense,

non-controversial, but which

accepted

ahead.

would

There

will

lead

us

far

be

plenty to
discuss even if these questions are
answered
by agreeing to prin¬
ciples which from my points of
view

seem

clear,

common

sense

and matter of fact.

I

With resnect to post-war
taxes,
should think we might
adopt

this

principle, that

we

I made this suggestion,
not in the spirit of witch hunting

without regard
employment and
answer

have heard

will reduce




home

we

do

the

comes

interest

other

the

on

than

is

debt

if

investigation,

that

turn out

may

immunities

under

the

I

value

thinking of

am

an

inquiry of

budget after the

think

from the standpoint of fiscal pol¬

icy.

circumstances.

under

war

Business

any

tion

ac¬

men

or

or

duction.

;■

balancing
this budget at high employment,
can

through our reconversion. It
is
very
important to bear this
qualification in mind because un¬

mediately
To

rates

our

down.

-

give

can

some

im¬

what is

possible, but without mak¬
ing any positive recommendation,
let me point out that we could
eliminate all

excise taxes

our

ex¬

tax

entirely and

third
tax

off

and

the

to

we

cycle

of

by
of

com¬

about

taxes

agree on this basic

prin¬

ciple.

that
a

can

that

thing

costs

of

pro¬

there

as

a

is really no
corporation that

be taxed; that taxes

are

paid

be

an

something,
We

do.

can

public works

accep¬

however,

can

adopt

as

will plan our
that we stabilize

we

so

the construction industry itself; so
that public and private employ¬

the

the

is

we

not

This

policy.

principle that

become

of

would

There

year

one

business cycle.

table public

As
to
the
corporation tax I
think it is very helpful to under¬
stand that the corporation tax has

such

whipsawing men in and
industry according to the

needs of the

show that there is plenty

we

ment in construction in the aggre¬

is

gate

at

after
year.

difficult

about

but

thing that

is

same

level

and

reasonably attain¬
It gives you some¬
could really shoot

a

you

at

lower wages or lower dividends.
And that in all cases harm is done

the

throughout
This principle gives a
year

able objective.

by people either in higher prices,

to the economic system
by
tax money at the

,

Now, what that level should be
matter

a

on

which there

can

take

The second question is the
ques¬
tion about the national debt.. I

country

believe^ that

due to the fact that it would

will

on

agree

reflection
that

every

a

great deal of discussion.

has

a

once

certain

turning to
and

not know what

do

the magnitude of
debt is going to
be, but also
because it represents a new situa¬

the

If you

an

problem, not only because

we

be

ideal that you wanted
to rebuild the physical plan of the
as

cannot
know today
very much about that
we

ought

generation,

a

amount

generation

one

new

Such

the

on

next

factories and

a

of

the
new
new

that
appeal

program

in¬

haps more,
There

reassembly of these forces bearing
fiscal policy.
I will mention
of these..

one

A

social

question

security

should be

program

financed.
It
cal

to

seems

clear from

me

fis¬

a

policy point of view that these

by

be one committee in the House on
fiscal policy
consisting of certain
members of the existing four com¬

mittees, and one committee in
Senate; that there should be

the

office of the

the

which

under

stature

same

Office

present
tion

of

would

War

as

an

Mobiliza¬

give directives

the law to the various

de¬

partments of the Executive Branch
whose policies in detail should be

guided by our fiscal policy in gen¬
eral; that the Federal Reserve
System should be left where it is
to coordinate the activities of the
twelve banks and the open market

policies

of

the

system.

amount

this

of

The

Na¬

Association

Planning
that

has

is

the

minimum

coordination

that

make it possible to have
of policy and

monetary

the

made

mittees propose that there should

ministration

raising

been

Planning Association,

by its Committee of Business, its
Committee of Labor, and its Com¬
mittee of Agriculture. These Com¬

spect to what level of benefits

I am only
of how the

has

proposal

the National

Social security from the
standpoint of fiscal policy? I am
not raising any questions with re¬
who should get them.

System.

doubtless many solu¬
to how
there may be

on

Now, for the fourth question I
raised; what about the social se¬

or

are

departments and per¬
and outside of them

are

as

said

curity?

in

clarification, reorganization,

tional

will

clarity
consistency of ad-?

These
must

else

in

the

a

fiscal

and

area.

.

administrative

be

made

before

;

reforms

anything

be done. It is time to
stop
dreaming about spending our way
into prosperity or
balancing the
budget at times of mass unem¬
can

the old age program ployment. These things cannot be
done unless we have both
legisla¬
unemployment insurance
tive and executive coordination
so
program should
be so financed,
programs,

and the

that they are not deflationary at
times of mass unemployment.
I
the

should

stand

programs

be

different

on

basis

considered

separately.
security it seems to
me reasonable to
so
arrange af¬
fairs
that
income
and
outgo
For

old

age

should be at about the
As

far

unemployment

as

level.

same

insur¬

is concerned, it seems to me

ance

that

the

that

measures

must

be

taken will be taken.

Let

a

and

I

go back and repeat what
said before so that there

me

have

be

may

no

misunderstanding.

Measures of fiscal
policy can clear
way and can facilitate; they

the

cannot

produce goods, and serv¬
they cannot give employ¬
They can create a situation
which high
employment be¬

ices,

ment.
in

that the unemployment trust fund
should not build balances except

comes

at

way.

levels of

of

an

unemployment insur¬

fund to

ance

It

finance it that it

so

creates

the unemployment that it
is intended to relieve.
I

think

sheer

we

folly

can

to

employment.

say

build

that

built

in

reserves

Insofar
the

it

mass

as

funds

is
in

un¬

reserves

\fill
have to turn up as deficits in the
regular budget and such deficits
are

mean

they

Irresponsibility.

Now, then, if we can agree on

houses

the debt, to make sure that amor¬

tization

of the

debt

vjpaintaining
If

is

high

consistent

employ¬

could agree that pub¬
lic works should be used to stab¬
ment.

and

as

business and in-?
lead

commerce

the

we

N. Y. Banks Agree To Plan
To Liquidate Chilean Loan
Under

date

of

May 15 Associ¬

ated Press advices from
said:

"The

Chilean

nounced

been

Santiago,

government

today

reached

agreements
with National

an¬

had

City
Guaranty Trust Co. of

Bank

and

New

York

under which loans
by those banks would be
liquidated at approximately 18%'

made

these

with

possible

dustry

inconsistent with the pur¬

seems

poses

high employment.

average

schools.

at least four

dustry.
:

basic principles; on taxes,
reducing taxes to balance the
budget at high employment, on

mean

would require
of the national product
and employ about six and one-half
about 8%

to

would

we

in this important

go

either fund at times of

taking
point of pro¬
duction and distribution.

one

to

we

direction

out

you

clearly

to

think

$18,000,-

particular

controversy' left

business

like

I

what

somewhat

bination for ty/o reasons. One is
to show what can be done, and
also

whole

clusions.
know

think

a

ment.

this

public works

use

the

that

undertake

to

in-catching up.-.It will take us
that kmg, first to decide to have
such an investigation, second, to
make it, third, to adopt its con¬

try,

take

000,000.00 budget at high employ¬
mention

could

we

stabilize

clear

becomes

time

short period of three to five years
of intensive construction activity

income

can

an

if

it

the

could only do it by unstabilizing the construction indus¬

individual

still balance

matter

even

eliminate the corporation

can

used

the

cept those of tobacco and alcohol.
We

what

Ever since

major business cycle is much too
great for any handling of the mat¬
ter by way of public works. Not
only that, but as you think about

to

as

do about them.

perience of the 1930's shows that
that is not true. The swing of a

come

idea

ques¬

and

works

cycle, that public works can
to fill in the valleys of
depression, that public works can
be made to provide work for the
unemployed. ' I think that the ex¬
be

.

you

public

ness

reconverted, we are not
position of' being able to
produce $140,000,000,000.00.
But
in that position

of

think

that investigation is now. We will
have probably after the war a

con¬

be used to stabilize" the busi¬

can

are

are

place

are

early 1920's the proposal has been
actively urged, and accepted to a
certain extent, that public works

.be

come

we

take

These
are
basic prin¬
frame of reference which

a

can we

made at once, as soon as we have

when

will

which

Now, with relation to the
tion

.

of

drastic reductions in taxes

debt

I

we
can
use
in approaching: the
problem of the national debt. % •;

$17,000,000,000.00
$18,000,000,000.00, and that is a
.

the

conditions

ciples,

to be around

lot of money.
With the policy

lished.

know that the amortiza¬

we

of

that

know

we

sistent with the prior requirement
of high employment and high pro¬

$25,000,000,000.00. We must fight for as low
a
budget as is practical, but the
lowest practical budget seems to
me

think

under

cept too easily the necessity of a
budget
of
$22,000,000,000.00
or

$24,000,000,000.00

I

In the Executive Branch there

are

we

going to stabilize the
construction industry and if that
happens, there should be corre¬
sponding regulation by a public
body.

more

face

committees

immediate relations to fiscal poli¬
cies. In the Senate there are three.

some

It

Anti-Trust Law will be necessary

a

its

four

are

House, committees that have

tions

certain

know, however, this: that

important

There

no

requires

judgment.

period of
years regardless of the economic
or employment situation.
I think
over

is no possibility of
adopting a fiscal policy or
administering one.

emotional crisis that would distort

indebtedness—that is, that we can
the debt by fixing an¬

nual installments

there

all is the Federal Reserve

a

may

either

that

is

experience
of
private individuals

mortgages and

ment

hostile spirit at all; at the
present time there is no scandal

the

and

in

or

mission, following which the Fed¬
eral Reserve System was estab¬

duction,

the
left

are

from

business

industry.

over

we

ent time, under the existing or¬
ganization of the Federal Govern¬

the

a
Congressional inquiry at the
present time into the construction

years

of

a

the years go by.

debt will be paid off, principle or
interest as it becomes due and, I

after

Second, what about the national
Third, what
public works?

amortized

state

policy and here I think

employed
industry should
larger and larger prod¬

encouraging and pleasant tax
policy. We will have a very large

I

talk about fiscal policy
four questions that loom

we

are

the

us

as

basis.
however, with

common sense

still left,

are

well be apprehensive. At the pres¬

men

You may have read that I favor

suggestion
wrong
is

be

can

production. That simple

most

system.
When

simple
probably

debt

period of

a

the

I

uct

also

the

to

or

give

ourselves.

to

We

stabilized

a

the

we

and

first

something of the

it

fixed number of

in

These

the problem of the administrative
and legislative aspects of fiscal

high cost indus¬
try. Consequently, over the years
a

guarantee high employ¬

controversial,

of the balances
500.000

and

outstanding, $11$6,000,000, respec¬

tively.
i'None of the Chilean Treasury
representing the loans, made

bills

with
and

the

banks

in

the

f

themselves

of

measures

not

principles do not
solve the problems that are pre¬
sented by the questions, but they
do represent a first point on which
we can get agreement on a non-

a

the scope, dignity, and competence
of the National Monetary Com¬

in

to

have resulted in

proposition
importance

no

by fixed annual installments

people who constitutionally
believe
that
anything
that
is
pleasant is sin. This would be a

til

would

in

other

is

that

from

fering from both tuberculosis
you

the

owe

we

that

with us instead of against us, as
it has done for fifteen years.
The only objection to such a
program that I

construction

timates and costs and restrictions

a

important.

taken

to

seems

time that if you had a patient suf¬

diabetes

is

The

debt.
It

has

amortize

who become fascinated

not believe that

because
It

be used to reduce the national

can

dismiss

us

with

apt to become
particular formulas.

information

Let

which

balances

as

it

worth $25,000,000

spoon

that the debt is of

alone, not chang¬
ing them every year. It makes it
possible leaving them alone after
your goal has
been reached, to
surpluses

time

same

its mouth.

and leave them

balances,

the

ing the budget at any other point
than high employment. We should
design our tax system to work

by the problems of money when
they apply their; imagination for
the benefit of the social and pub¬
lic welfare are generally consid¬
ered cranks and when they apply
their

silver

000.00, it means pushing against
the tax system all the way, where¬
as if your budget will balance at
$140,000,000,000.00, the tax system
will help you all the way up. It
makes it possible to fix tax rates

either be held

ment.

These

industry would
go down. The unpredictable and
wide swings in the construction
industry have made it necessary

are

at

is nothing to be gained in balanc¬

>are

on

men

that

talk

ual who become involved in these

speculations

that, at $120,000,000,000.00 instead of $140,000,000,-

to

years

interested

balanced before

build

na¬

will

the

be

can

of

things would happen.
One thing that would almost cer¬
tainly happen is that the costs in

mean

we

want

subject,

hundreds
been

be

"To balance the budget at high
employment." That is where the
budget should be balanced. If it is

can

I

that

fiscal policy.

have

to

seems

public works to sta¬

use

and

out the whole business

even

cycle, and that the social security
program
should
be neutral
in
terms of' its effect on fiscal policy1,
I think we will have gone a long
way, a very long way indeed in
clearing away some of the ob¬
stacles to high employment.

not

socially accept¬

level

experience

our

probably wrong. By
that it is certainly
tru§ that the debt is not im¬ for the industry throughout all
portant simply because we owe it its branches to make sure that
to ourselves.
I must say that if the prices that it receives when
anyone tells you that every child it is at work will pay for its liv¬
born in this country has a debt of ing expenses and its idle
plant ex¬
$25,000.00 hanging around its pense when it is idle. Since these
neck, it is perfectly fair to say swings are unpredictable, the es¬
that

55,000,000.

We have heard

of words.

.use

a

would agree was

to

number

First, I think we can
reasonably sure that the easy

be

at work; only a high
employment
that
we

of

change
in business attitude recently, per¬
haps not so much in attitude as in
a

we

of about the

sure

not to

bilize the construction industry a

however, :* certain

are,

with

ilize the construction industry

!
are

.

ment

tional debt.

employment of people who ought
not

I think there has been

consistent

of in terms of ideas.

There

and off site.

on

preliminary estimates

with the construction industry in
the latter part of the 1920's.
;j
If we should make a commit¬

pplitics, bias or
of
any
kind, without
thinking in terms of superstition
instead

Thursday, May 25, 1944

men

These

-v

emotion

many

law.

million

It is

without

ment,

be

course

public finance

with complete intellectual detach¬

taxes to balance
the budget at
who may high employment. It is very eas¬
skeptical but they would pre-, ily stated and I think the prin¬
fer it this way if it can be done. ciple is
easily understood. High
There are some that are over op¬
employment does not mean super
timistic with respect to how eas¬
employment, not the highest pos¬
ily it may be done; it will not be sible employment, not employ¬
done by chance or as a matter of ment involving
overtime, or the
are

the

as

CHRONICLE

problem that has to be studied

a

that is advocating any other solu¬
There

far

as

of this country is concerned.

(Continued from first page)
tion.

& FINANCIAL

late

1920s

previously adjusted and part¬
ly paid, was held publicly.
v

* 3

Objectives—Says

Roosevelt Lands IL© Social
/

Congratulating those participating in the International Labor
Philadelphia, President Roosevelt on May 17 referred

1,000 bankers and their
expected to attend the
54th annual convention of the Illi¬

adopted by the Conference, as summing up "the
aspirations of an epoch which has known two world wars." "As I
look over the report of your work," said the President, "I see that

nois Bankers Association

to the declaration

out in a form which could

have, for the first time in history, set
be adopted as a treaty by the Na-<£'

objectives."
"that among

working
of

a

progress

of social

to all, the

under

conditions of freedom

extension

security, the recognition

of collective bargain¬
provision for child welfare,
the
assurance
of adequate

and

educational

vocational

and

op¬

portunities." "It will be your re¬
sponsibility," said the President,
"to promote these objectives

conditions of

and under

dignity

and

House, Chicago,

time

and

banking and
scheduled

postwar

economic subjects were

address

to

security and opportu¬
attainment of those con¬
ditions must constitute a central
aim of national and international
policy. Indeed, the worthiness and
success
of international policies
will be measured in the future by
the extent to which they promote
the achievement of this end.
economic

declaration sums up

May 24-

George R. Boyles, President of the
Association, announced on May 11.
Authorities on all phases of war¬

nity. The

"Your

were

26 at the Palmer

development

and

Of the right

ing,

material well-

spiritual

being

employment, wages and
conditions calculated to
just share of the fruits

clude full
insure

"I note," he added,
other things they in¬

beings to

all human

of social

tions, a particular series

A. L. M.

i

About

wives

the

Robert

sessions.

President of the Wach¬
Winston-

M. Hanes,

Wiggins Of American Bankers

(

To Address A. L B. Wartime Conference

Hold 54th Gonvenlion

Conference in

you

A. L I.

Illinois Bankers Will

Program Worthy Of Treaty Action By Nations

-r

2175

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4284

yolume 159

i

will

address

Wiggins, President of the American Bankers Association,the wartime conference of the American Institute of

Banking, to be held in St. Louis, June 6-8, it is announced by David
L. Colby, President of the Institute.
Mr. Wiggins will speak at the
first business session of the two-and-a-half-day conference, which
session will be on Tuesday afternoon/June 6.
The conference, which
will serve
as
the 42nd annuals
t
•;
dition, it is stated the conference
meeting, will transact the Insti¬
business.

essential

tute's

There

will

be

held
to

for

five

review

will be business sessions on Tues¬

These

day afternoon, June 6, and Thurs¬
day morning, June 8.
The
annual
National

ter leaders

purposes.,

the

educa¬

tional problems

/■

are

so

confronting chap¬
that an educational

designed to help banks
the training of new and up-,
Salem, N. C., and newly appointed Speaking v Contest for the A. P.
Giannini Educational Endowment graded employees can be effected;
Chairman of the American Bank¬
to
review
administrative prob-,
ers Association committee.
Dr. E. Prizes, which has been held for
17
consecutive years, will take lems confronting chapter leaders
A. Goldenweider, Director of the
in order that the most effective
Research and Statistics Division place Tuesday evening, June 6.
methods of presenting and pub¬
of the Federal Reserve System, Wednesday, June 7, will be given

the

ovia

Bank & Trust Co.,

Ansel Mowrer, Chicago

and Edgar

"Daily News" foreign correspon¬

Public

program

in

over

to

educational conference

an

morning and a chapter ad¬
ministration conference in the af¬
in the

licizing such an

educational pro-,

be achieved; to review
the progress of the Job Instructor
Training (JIT) Program, which is
considered essential to the war
can

gram

prominent among' the
The names ternoon. The annual pre-election
caucus
will be held Wednesday
program also included as
dently believe that future genera¬
effort; to review the broad, over¬
speakers
Frederick
A. Virkus, evening, and the election of of¬
tions will look back upon it as a
all training needs of banks for
agencies as may be created."
chairman
of the Conference of ficers will follow the closing ses¬
The President's remarks were landmark in world thinking. I am
the next several years and to plan,
Small
Business
Organizations; sion.on Thursday morning.
addressed to about 150 delegates glad to have this opportunity of
The Institute's Executive Coun¬ for an adequate educational pro¬
Earl C. Smith, President of the
to the recently adjourned Confer¬ endorsing its specific terms on be¬
Illinois Agricultural Association; cil has recommended to all chap¬ gram to cover those needs; to elect
half of the United States. I trust,
ence of the ILO, these delegates
ters and study groups that attend¬
Mr.
the Institute's officers for the en¬
Boyles,
and several other
representing 40 or more countries, also, that within a short time its
ance
be restricted in compliance
leading bankers.
In connection
suing year and transact other of¬
who
called upon the President specific
terms will be whole¬ with the
with the suggestions of the Office
convention, meetings will
ficial business of the Institute.
following the conclusion of the heartedly endorsed by all of the
also be held of Illinois members of Defense Transportation. In ad¬
Philadelphia Conference. Noting United Nations.
of the American Bankers Asssothat the President delivered his
"As I look over the report of
ciatioh,the"/ Illinois
Bankers
brief speech from his desk in the
your work," I see that .you;have, Foundation, Inc., and the Council
Executive office the Philadelphia for the first time in history, set
qf Administration.
;
;
"Inquirer," in an account by Wil¬ out, -in a form which could be
A feature of the meeting was
liam
C.
Murphy, Jr., from its adopted as a treaty by the nations,
President Roosevelt has taken occasion to advise Prime MinisterWashington
bureau, said, "The a particular series of social ob¬ the celebration of the 80th birth¬
day,of J. M. Appel,. Board Chair¬ Churchill that he joins with him in his hope that his line of action
P h i 1 a d elphia Declaration was
jectives. I note that among other man of the First National Bank of
"may succeed in bringing the Greeks back into the Allied camp
signed, with the President as a things they include full employ¬
witness, by Walter Nash, Min¬ ment, wages and working condi¬ Highland Park, 111., at the past and to participation against the barbarians." The President's letter,
Presidents' annual dinner on Mgy made public at Cairo, was given as follows in Associated Press ac¬
ister of New Zealand, who was tions calculated to insure a just
24.
One of the first appearances counts from that city May 1, according to the New York "Herald*
Chairman of the conference, and share of the fruits of progress to
of a color guard of members of Tribune":
Edward J. Phelan, Acting Direc¬
all, the extension of social se¬ the United States Marine Corps
"Thank you for the information ing and analyzing of the statistical
tor of the ILO Secretariat."
curity, the recognition of the right Women's Reserve took place at
information received by the Bank¬
regarding the recent difficulties
Mr. Nash, Sir John Forbes Wat¬ of collective bargaining, provision
the annual dinner of the Associa¬ encountered in the Greek partici¬ ing Department from institutions
son, of Great Britain, Chairman of for cl\ild welfare and the assur¬
under its supervision and would
tion May 25,
pation in our Allied effort. I join
the Employers' Group; and Jef ance of adequate educational and
make
special, studies in money
you in the hope your line of ac¬
Rens, of Belgium, chairman of the vocational opportunities. It will be
tion towards
the problem may and banking for the Department.
Employees' Group, responded and your responsibility to promote Would Issue Postal Notes
succeed in bringing the Greeks
thanked the President for his in¬ these
objectives through your own To Mail Money Up To $10 back into the Allied camp pnd to 1944 Wheat Loan Program
terest in the meeting.
organization 'hnd through such in¬
Wheat
loans
averaging
na¬
/ The address of
the President ternational agencies as may .be
Afsystem of postal.notes is pro¬ participation against the barbar¬
ians. That will be ^worthy of the
follows: fv,. • *
tionally $1.28 a bushel at the farm
created.
1 ; vided in a bill passed in the House
traditions established by the he¬
/ "It is a great pleasure to have
on May 2, whereby there may be
will be made by the War Food
"With great wisdom you have
roes of Greek history.
/ %
Administration's Commodity Cre¬
transmitted in the mails any sum
you with us here in the White
realized that these social objec¬
"Frankly, as one whose family dit
House again. As I pointed out to
not
to
exceed $10, to cost the
Corporation on the 1944 crop.
tives cannot be attained and sup¬
and who personally has contrib¬
Last year the average was $1.23.
sender at the present time not
you when we last met—two and
ported without a high level of
uted personal help to Greek in¬
The War Food Administration of
more than 5 cents.
As explained
a
half years ago—taking part in
useful
economic
activity.
You
dependence for over a century, I the Department of Agriculture,
a
conference of the International
have
recommended a series of by Representative Burch of Vir¬ am unhappy over the present sit¬
Labor Organization is not a new
reporting this on May 16, further
economic policies and undertak¬ ginia in the House on May 2, "the uation and I hope Greeks every¬
said:
experience for me. I take pride ings designed to bring about a Post Master General is given au¬
where will set aside pettiness and
"Loans will be made on a note
in the fact that I was permitted
material
economy
which
will thority, ' if he finds that the in¬ regain their sense of proportion.
and
chattel mortgage basis
for
comes
from the postal note is
to play a part in the first confer¬
make it possible to maintain them.
"Let every Greek think of his
wheat stored on farms and a note
greater than The expense, to re¬
ence of the organization that was
"You have also wisely provided
glorious past and show a personal and loan agreement for wheat
duce it to not less than 3 cents.
held here in Washington in 1919.

through your own organization,
and through such international

aspirations of an epoch
known

two

which has

world wars.

dent, were

I confi¬ speakers

announced.

the

on

*

.

„

,

Hope That Greeks iay Be tagk! Beck To
Allied Gamp Expressed By Roosevelt

.

"

.

i-

,

.

.

-

and If the cost of the postal note is
of the - Interna¬
greater than 5 cents, he is given
tional Labor Organization
itself
authority to increase it to 6 cents."
so that it may be broadened and
Mr.
Burch,
the
"Congressional
strengthened
for
carrying / out Record", reports, added that "this
Yet, with the courage and fore¬ these social objectives and at the
is simply for the purpose of trans¬
sight that have always charac¬ same time integrated on a co¬
mitting money through the mail at
terized
the International Labor
operative
basis with whatever a very small expense, and it is for
Organization, you as representa¬ new international agency or
the general good of the public."
tives
of
governments,
workers
agencies are created by the United
Associated Press advices from
and employers had the boldness
"Those were

indeed trying days

met in 1941. The
fate of the free peoples of the en¬
tire world hung in the balance.

when

last we

for

further development

the

reorganization

This forms an admirable

Nations.

to

come

of

the

for

together from all

world to

parts

formulate plans

reconstruction.

"You

have

been

meeting

in

where,
168 years
ago, the fathers of this Republic
affirmed certain truths to be selfevident. They declared that among

Philadelphia

other things

all men are endowed

by their creator with certain in¬
alienable rights, among them life,
liberty and the
ness.
Iri
these

pursuit of happi¬
words

are

ex¬

Washington May 2 stated:
for formulating certain
"The
legislation provides for
of the peace. I want to
handling of small amounts now
assure you that this Government
will do everything in its power to moved by postoffice money orders
and on which fees run from 10 to
see that the provisions for the at¬
tainment of these social and labor 19 cents. About 70% of the postal
pattern

aspects

objectives shall be included.
"The

people

countries

are

of
in

the

deep

occupied
suffering.

representatives have agreed
upon
the social objectives/and
economic policies
you
have set

Their

forth.

I trust that this marks the

mofiey

order

business

is

for

unselfishness
sary

which is so neces¬

stored in

now."

"Wheat

approved warehouse®.
produced in 1944 grad¬

ing U, S. No. 3 or better or

Dunkman Heads New
I.

Biv. of

Bell, Superintendent
announced on May 19
appointment of William E.
Dunkman as chief, of the newly
created Division of Research and
Statistics in the Banking Depart¬
ment. Mr. Dunkman is on leave
of absence from the University of
Elliott

of

V.

Banks,

the

Rochester, where he
sociate Professorship

grad¬

ing U.S. No. 4 or U. S. No. 5 be¬
of test weight only, will be

cause

holds an As¬
in Econom¬

eligible for loan. Loans will vary
the basic rate of $1.28 per
bushel at the farm to take into

from

grade, and qual¬
example, the loan 'rate
for No. 1 hard winter wheat at
Kansas City for 1944 is $1.44 per
bushel as compared with $1.38 in

account location,

For

ity.

1943.

"Seven
age

cents

per

allowance will be

bushel

stor¬

advanced at

the time of the loan on

all farm-

appointment stored wheat. Loans on both
farm-stored and warehouse-stored
to the Banking Department Mr.
Dunkman had been in the employ wheat will mature on demand butConfirms McConnaughey - of the War Production Board and not later than April 30, 1945. Any
loan may be
liquidated by the
the Office of Price Administration
On May 17 the U. S. Senate con¬
for more than two years.
More payment of the full amount ad¬
firmed the renomination of Rob¬
vanced plus 3% interest from the'
recently-he has been price execu¬
ert K. McConnaughey, Ohio, as a tive of the OPA's export-import date of the note. All loans will be

amounts of $10 or

less."

pressed the abiding purpose of all beginning , of a new and better
peoples imbued with the ideals of day, a period of hope for material
member of the Securities and Ex¬
freedom and democracy.
comfort, for security and for spir¬
J "The
declaration
which you itual and personal development, change Commission. Mr. McCon¬
have formulated in Philadelphia for all those groups now suffering naughey was named by President
may well acquire a similar sig¬ so sorely under the heel of the Roosevelt on May 11 for another
nificance.
In it you have reaf¬ oppressor.
The United Nations term expiring June 5, 1949. The
firmed principles which are the will be determined that all the
Senate
Committee on Banking
essential bulwarks of any perma¬ oppressed of the earth shall be
nent peace.
With the expanding included in these social objectives. and Currency reported in favor of

ics.

Before accepting

in

the

counties

by

branch. Mr. Dunkman, who

administered

uated from the

Agricultural Adjustment
Agency committees under the
general supervision of the State

grad¬
University of Cin¬
cinnati in 1926, did post-graduate
work in economics and banking at
Columbia
University
and
was
awarded a Ph. D degree in 1933.
He was assistant to the late Dr.
H. Parker Willis and lecturer in
banking at Columbia University
use of machinery and the revolu¬
the nomination unanimously.
from 1929 to 1933. .Since 1933 he
"I want to offer my congratula¬
tion in transportation, it is well
tions to those of you who have
has been a member of the faculty
that the world should recognize
participated in this conference. who want to build and maintain of the University of Rochester.
the fundamental principle of your
Mr. Dunkman
is the author of
a just peace.
declaration;
'Poverty
anywhere You have my gratitude for the
"Qualitative Credit Control" and
constitutes a danger to prosperity program
The sessions of the ILO opened
of mutual helpfulness
"Questions in Money and Bank¬
everywhere.' This principle is a which you have laid out—a pro¬ in Philadelphia, on April 17 and ing."
guide to all of our international
Mr. Bell said that Mr. Dunkman
gram which, I am sure, will in¬ were were brought to a close on
economic deliberations.
would have charge of the compil• '
■
- -'
"You have affirmed the right of spire all those in our generation May 12.

county

committees.
"Loan

values

at

selected

ter-'

minal markets are as follows: No.
1

hard

winter,

at

Kansas

City,

at Omaha, $1.44; at Gal¬
veston, $1.52; at Chicago, $1.49; at

$1.44;

..

.

„




St.

Louis, $1.49.

at

western

No. 1 soft white

white

at
Portland,
$1.39; No. 1 dark northern spring,'

or

Minneapolis, $1.46; No. 1 red
winter, at Chicago, $1.49; at St.
Louis, $1.49; at Philadelphia,
$1.60;
at
Baltimore,
$1.60;
at
Louisville, $1.51.

liWwWfcBMjrfS-WiltaiWr

2176

THE COMMERCIAL & FINANCIAL CHRONICLE

'

Thursday, May 25, 1944

!/
Supreme Court Rejects Plea For Rehearing Of Final Dividend To ^: ^j-r New Type Of Labor Union Leadership Urged
require
Ruling Permitting Negro Vote Sn Texas Primaries Creditors & Depositors according to Morris Llewellyn Cooke,type of leadership after the
consulting engineer and Chair¬
Labor unions will

i

Two requests

for

rehearing of its ruling of April 3, granting
Negroes the right to vote in Texas Democratic Party primary elec¬
tions, were rejected by the U. S. Supreme Court on May 8.
The
April 3 ruling of the Court was referred to in our issue of April 27,
page 1741, at which time it was noted that on April 20 Attorney
General Grover Sellers of Texas had asked the Supreme Court to
set aside its ruling, asking per- ♦>
mission

at the

same

sonally

argue

the

a

time to

rehearing

quest.
Besides

also

two

Houston

by

election

defendants in

were

that

contended

Sellers

court had erred in

United

Washington,
we

"He

S.

the

and

the

to

convention

State

county offices."

From

,

from

Associated

the following:
"The recent
the

Press

advices

Washington, May 8,

take

we

Democratic

held

in

Party

that

Texas

that

true

Constitution and

deci¬

Bank

of

of

E.

Court

order

an

by

McGeehan

Justice
Supreme

in

May 16 approving the
of the Superinten¬
liquidator of The Bank of

on

account

dent

as

With this

payment,
the depositors and creditors will
received

76V8%

of

their

Announcement of this

was

made

May 17 by the State Bank¬
ing Department, which also said:
"The Bank of United States

closed

was

December

one

dividend have been mailed to ap¬

at

party

State

and

expense,

can

noti

say

are

such elections.

deed,

is

forms

a

State

Strange, in¬
doctrine which trans¬
private association into a

agency

police

...

a

merely because the
of the State are

powers

applicable to such association.

on

Checks

for

proximately
present

Court

that

'the

Democratic party (nor any other
party) in Texas is not responsible
Legislature and
cannot prevent enactment of stat¬

for the acts of the

which

attempt
party affairs.'"
In the item in

tion it

was

to

noted that with

a

view

to

preventing Negroes from vot¬
ing in the Democratic primaries,
a
special session of the South
Carolina

General

final

200,000 depositors are unknown to
Banking Department.
Over
45% of the depositors of The Bank

of United States have failed to
more

or

over
for them."

A

reference

$1,500,000 set aside
to

the

final

ac¬

2055.

have been

media

completed
—

by

newspapers,

magazines, radio and trade

papers

Assembly

—for their participation in the ad¬
April 17 hundreds of vertising clinic which features the
bills repealing primary laws on
second day of the 62nd annual
the State books.
convention of the Proprietary As¬
sociation of America, to be held
at the Hotel Biltmore, New York,
on May 15-17. William Y.
Preyer,

Following

Latter's Return From London

President

of

Vick

Chemical

Co.

and Chairman of the Association's

Advertising Advisory Committee,

The recent mission to London of Edward R.

on

management^

longer be characterized
bitter industrial strife but by
approach to com¬
mon
production
problems.
He

statesmanship is required under
the only type of collective bar¬
gaining worthy of development."
Urging greater public recogni¬

also

tion

no

by

1

cooperative

says:
"There is

when

the

received

necessarily

fact

of

the

unionism

broad

has

was

navia

the

rule

before

in

all

Hitler

after

role

the

dying

a

con¬

labor-management
industrial

in

war

plants

is

emergency

over

placing greater emphasis

the

on

of

Department

conciliation

Industrial

era.

for

and

characterized the successful lead¬
in

for

I

over.

Militancy of heart and hand has
ers

the

calls

also

of

committees

Scandi¬

took

Cooke

Mr.

tinuation

acceptance

which is the rule in Great Britain
and

I
1

a

U. S.

Labor's

work.

Supreme Court To Review Findings Of
New York Court In Associated Press Case

On

May 8 the United States Supreme Court agreed to review

the

decision of the Federal District Court of New York—in a
3-judge
ruling—handed down in the Government's anti-trust action against
the Associated Press.
From Washington May 8 United Press ac¬
counts stated:
In

*

brief notation

'

■

its order list, the
jurisdiction" in the matter. Such a
a

means

<

that

on

Court

the

briefs

on

the

The "By

case.

arguments were expected to be
heard in the fall.
The same ad¬
vices

Associated

Press, in a di¬
Supreme Court
month, contended that
the lower Court's judgment, hold¬
ing it guilty of violating the anti¬
trust laws, would subject it to the
supervision of the Department of
manner

be

to

as

from

modified

Court's

its

by-laws

satisfaction it

to; the
might con-

v

tinue to provide a news report ex¬

Justice and the Federal Courts in
a

AP

on

bunal said, however, that the AP?
might restrict applicants on other
grounds and ruled that if AP,

last

such

decision, the Dis-;

2-to-l

a

Jan.
13 enjoined
observing by-laws-;
which permit members to consider'
the competitive position of an ap- ;
plicant for membership. The tri--

the

rect appeal to the

filed

«

Court

trict

(United Press) added:

The

'

Court noted "probable

of alleged anti-trust violations by
the AP.

clusively to members, to require,

"wholly

members to furnish local

incompatible with freedom of the
press.",
\
^' '

AP

.

Stettinius, Jr., Under will preside at the clinic on May
described by President Roosevelt on May 9 16. For the newspapers, a pre¬
The Government, a few days
as very
useful, and, according to the President, encouraging progress sentation
on
readership
habits later, filed a cross-appeal, argu¬
was made on various subjects. Mr.
Stettinius, who arrived in London will be made by the Bureau of ing that the judgment was too
on
April 7, returned to Washington on May 4, and immediately
of
the
American limited in scope to prevent effec¬
Advertising
reported to Secretary of State Hull. During his trip Mr. Stettinius
Newspaper
Publishers
Associa¬ tively "continuance or renewal"
visited North
Africa
where
he *
tion, under William A. Thomson,
conferred with W. Averell Harri- ' which were taken
up in London." director,
with Allen B. Sikes,
man, Ambassador to Russia, and
I|i Washington on May 5 the eastern manager, assisting.
..
:
>
Robert Murphy, American poli¬ Under
The magazine presentation will
Secretary told correspond¬
Secretary of State,

constructive

the

of

signifi¬ which labor unions can play in a
cant
difference
in
the
type of post-war economy based on full
leaders of both management and employment and capacity produc¬
labor, as between those best fitted tion, Mr. Cooke calls upon schools:
for
the
rough-and-tumble rela¬ and colleges to introduce courses
tionship that precedes collective on unionism in their curricula for
bargaining and the type that may management, union leaders and
be expected gradually to emerge the general
public. In his article

accept

Participate In Convention

on

President And Slettinlus Confer

article

an

the

Institute

agrees to hear oral arguments and

Advertising Medium To

major

In

with

University

relations

notation

four

"After

Brazil.

to

Cooke asserts
will

ag¬

counting of the bank's affairs ap¬
peared in our May 18 issue, page

Plans

14 in

war,

Mission

its

York

re¬

dividends

control

April 27 edi¬

our

and

the

judges, S. E. All¬ ceive one
wright and James E. Liuzza, told gregating
Supreme

ninth

Technical

200,000
depositors.
addresses of about

The

"The election

the

the

American

War," official publication of the
Post-war Reconstruction, Mr.
that organized labor is entering a new era in which

New

a

United

11, 1930. At
the time of its closing it had 59
branches and 413,000 depositors.

passed

decision

equally

oper¬

The

with respect to the persons
entitled to participate in

word

who

is

so

Texas, all primary elec¬
conducted
by party

the

utes

"Barring such action, the court
ruling will be tested in Texas
July 22, when that State holds
primaries for Congressional, State

Texas

are

officials

judges—

system.

and

in

that

election

it

the

tions

E.

return

but

sions

Allwright and James E.
Liuzza—argued that the /Demo¬
cratic Party in Texas is a 'vol¬
untary association,' not an in¬
strument
of
the
State or
'any
governmental agency.'
"While the April 3 ruling spe¬
cifically affected Texas, it also
applies to all other States having
similar primary laws.
Southern
Congressmen have said that ways
will be found to bar Negroes from
primaries, and some suggested a

of

signing
John

claims.

under

8, from which

May
quote, added:

statutes

ninth and

This payment followed the

have

ate,

from

I advices

the

of

States.

It is true that the statutes

ruling that the

"white" primary.

a

Press

United States.

that

a

final dividend of 1%%, or $1,475,000, to the depositors and cred¬

regulate the manner in which
primary elections are conducted.

the

Federal Constitution prevents the
Texas
Democratic
Party \ from

conducting

May 17 payment of

fact

judges who
Suit brought

a

on

the

published April

Bell, New York Su¬
perintendent of Banks, announced

final

.

?

V.

itors

.

by the

Texas Attorney Gen¬

Negro.

a

eral

asked

been

Elliott

Sellers complained:
"This court makes much of the

General Sel¬
lers, reconsideration of the deci¬
had

Of Bank Of U. S.

required to follow State leg¬
procedure in
selecting
party nominees in primary elec¬
tions, and thus the party becomes
a
State
agency.
To this,; Mr.
islative

re¬

Attorney

sion

is

per¬

of

man

a new

exclusively

news

and-to-retain

to y
a

contract with the Canadian Press.::

was

The Government's appeal urged
that AP be enjoined perpetually

from restricting new

irrespective of
by-laws.

any

in its

memberships
modifications

,

.

Goal Of $53,008,080 In Fifth War Loan Drive

tical

adviser

Allied

on

Commander

terranean.

London

in

Besides

with

staff

the

of

the

his

the

Medi¬

talks

Prime

in

Minister

that ^Britain and the United
States will "stick together

lishers

thick and thin" in the peace as in

tion of Frank

the

with W. H.

ents

through

Churchill

and

Foreign Secretary
Anthony Eden, Mr. Stettinius also

This is his firm convic¬
tion, he said.
Associated Press accounts from

conferred

in

which

London

with

King

war.

we

quote, also said in part:

Haakon and Crown Prince Olav of

"Mr.

Norway; Dr. Eelco N. van Kleffens, the Netherland Foreign Min¬
ister; Camille/: Gutt, Belgian Fi¬
nance
Minister; Lord
Beaverbrook, Lord Privy Seal; Sir John
Anderson, Chancellor of the Ex¬
chequer, and
Stanislaw
Miko-

tion in

lajdzyk, Polish Premier,

as

various others.

ing operations would be satisfac¬
tory to the Allies.

Regarding the President's talk
Stettinius, upon the lat¬
ter's return, the New York "Her¬

"His mission was the first the
State Department has sent to Lon¬
don for business talks.

as

well

with Mr.

Stettinius

trade

Previously

ton bureau:

Roosevelt,

discussing

the

trip of Mr. Stettinius at his first
-

_

.

.

.

.

press conference since his vacation trip south, disclosed that the
Under Secretary had prepared a '

21-page memorandum embracing
approximately 40 subjects which ,
were talked over with the British !
in

London.

President

The

said,

subjects,

covered

the
about

_

"Mr. Stettinius went

over

with

Foreign

Office

missions

here.

come

insurmountable

obstacles

from across the Atlantic had been
um across me
mnVkiv

Q ^
1
A..
*n London Mr. Stettinius said
be had engaged in most valuable
dl^clJssl0ns Y,
Allied Govern™ents--^0mething he had not antlclPated when he left.
t

™ -

u

.

"As

a result of this and of the
co-operation of the British

apd other United Nations
cials, his visit had been of

offi-

_

no

formal

agenda, the President

continued, and took up all subjeets in an extremely effective
way

with what Mr. Roosevelt la-

beled awfully good results. Some
of the subjects are in an active

stage,
still

while others,

in

the

like oil,

study stage.

the mention of

oil, Mr

did not disclose any

are

Beyond

Roosevelt

of the topics




greater
pected.

value

than

he

much

had

ex-

"Russian and Chinese representatives in London
advised

of

what

were

the

kept fully

British

American authorities were
cussing, and they, in turn,

and

dis-

gave

'forme? Russia"'
bassador to Canada and

now

Am-

of

Broadcasters, with J.
Ryan,
President,
and

Lewis H.

Avery, director of broad¬
advertising, assisting. For the

Sought From III. And Wis. Savings Loan Asstts.
Sales of War Bonds equivalent to 10% of their assets is the goal
member savings and loan associations of the Federal Home

of the

Loan Bank

System in Illinois and Wisconsin during the forthcoming
drive, A. R. Gardner, President of the regional Home
Bank of Chicago, announced on May 3, following his returnVJ
from a Washington, D. C., conference of Presidents of the 12
regional
Fifth War Loan
Loan

Home Loan Banks and officials of<^

the Federal Home Loan Bank Ad¬

have accounted for about

ministration, the National Hous¬
ing Agency and the U. S. Treas¬

000,000

presentation will be
made by Pauline Arnold, of Mar¬
ury,
at which plans were for¬
ket Research Corp. of America,
mulated to step-up participation of
who will give the results of an
the nation's thrift and home-fi¬
advertising survey of drug stores, nancing institutions in the Treas¬
and Stanley A. Knisely, executive
ury's war financing effort. "Again
vice-president of Associated Busi¬ the goal or quota of War Bond
ness
Papers, who will note the sales by members of the Federal
press,

conclusions.

The
cludes

"Issues that had looked like al¬
most

great

everything in the world.

poised
Europe is high.

"There seemed not the
slightest
doubt in the minds of those he had
met that the outcome of the com¬

British

"Mr.

ciation

Harold

cast

have

r",

hesita¬

saying for publication that

no

by the Periodical Pub¬

Association, under direc¬
Braucher, President,
Mullen, director of the
Magazine Advertising Bureau, as¬
sisting.
For radio, presentation
will be made toy National Asso¬

for the invasion of

ing

reported the follow¬
May 9 from its Washing¬

made

the morale and confidence of Brit¬
ish and American services

ald Tribune"
on

had

be

Section

convention

program

In¬

meetings of the Scientific
of

the

Proprietary Asso¬
ciation, the Veterinary Section
and the Section on Foreign Trade.
Government

officials

who

speak at the convention

will

are

Fred

J. Stock of the Chemicals

Bureau,

War Production Board; Robert P.
Fischelis of the Office of Civilian

Requirements,

and.T.

W.

Dela-

hanty of the drugs and pharma¬
ceutical unit, Bureau of
Foreign
and Domestic Commerce. Another

speaker will be Ralph Heinzen,
long-time United Press manager
in France.

:

Home Loan Bank System has been
raise d," said Mr. Gardner. He
added:

V*

issues of March 23,
page
and May 1, page 1809.

1230,

Limits

Scope Of Suits

IV

The recently-enacted New York
law limiting the scope of

maintained

preme

member
total

of

Bank

associations
bonds

must

equivalent

System
sell

to

a

at

stockholder

suits

'

Court

Justice

Collins, who also
statute

was

least one-tenth of their assets dur¬

plies to actions
fore
from

of the

of

member institutions

Federal Home Loan Bank

Chicago

amount

mately $531,840,000,
should

to

approxi¬

sales in this
the

attain

record

New

and

T.

the
ap¬

pending be¬

This

York

is

learned

"Journal

of

Commerce," which further stated'.

"Considering that the combined
assets

of the

ruled that

now

courts.

the

William

retroactive

ing the Fifth War Loan campaign.

the

declared

was

May 16 by Su-5

on

This goal is one-third higher than
for any previous war loan drive.

volume of
$53,184,000, if every
Britain, was particu¬ member association succeeds in
larly helpful and is playing an making the 'Honor Roll' goal.
important role in international af¬ They are organizing now for a
fairs, he said."
vigorous start when the drive be¬

our

N. Y. State Court

minority

bassador to

Items bearing on the trip of Mr,
Stettinius to London appeared in

May, 1941."

constitutional

by the

$2,000,financing since

war

"To qualify for admission to the
'Honor Roll' of War Bond sales

district

.

i

.

in

"Justice

Collins

declared

valid

Section 61-B of the General Cor¬

poration Law, which provides that
no

stockholders'

brought
holder

unless

owns

at

action

the

be

may

suing

least

5%

stock¬
of

the

outstanding stock, or shares of
value
out

in

excess

of

posting security.
court also upheld

"The

a

$50,000, with¬
provi-,

sions of the law in Section 61-A,
which requires a corporation to

gins on June 12. Throughout the
cdiintry-f>the member institutions

pay expenses of directors who are

and the'12 regional

successful in

Banks of the

Federal'Home Loan Bank System
.0

1 oiit

$"■'. '

•

■

ers' actions.

defending stockhold-.

H

yolume 159

Number 4284

THE COMMERCIAL & FINANCIAL
CHRONICLE

2171

Electric Output For Week Ended May 20,1944
Shows 6.3% Gain Over Same Week Last Year

drop
than

now

;

/

r.

;

May 20

May 13

West Central

12.9

5.5

6.1

9.5

7.4

4.4

6.1

7.4

10.4

*5.0

2.2

15.2

19.8

20.9

25.3

6.3

6.8

8.5

12.1

Southern States-

'

-"Decrease under similar week in

DATA FOR RECENT WEEKS

(Thousands of

.

^ T, .;. ■
Week Ended—

it.-

.

1943

5

4,524,134

Feb.

12

4,532,730

3,960,242
3,939,708

4,511,562

3,948,749

4,444,939

4,425,630

3,892,796
3,946,630
3,944,679

4,400,246

3,946,836

Feb.

19

Feb.

26

_

-

__

.

4

March

4,464,686

11

March

18

March

25

April

-

_

-

4,409,159

-

1

April

-

8

_

1932

3,474,638
3,421,639

v,

+ 14.3

3,423,589

+14.2

3,409,907

1,519,679

+ 13.1

3,392,121

1,538,452

+12.2

3,357,444

1,537,747

+ 11.5

3,357,032

1,514,553

'

'■

3,928,170

+ 12.2

3,345,502

April 15

•

1,480,208

+ 13.3

3,348,608

1,465,076

3,320,858

1,480,738

3,916,794

6

+ 10.0

3,307,700

3,925,175

s

+10.7

3,866,721

I

+12.1

3,273,190
3,304,602

1,469,810
1,454,505
1,429,032

4,233,756

3,903,723

+

8.5

3,365,208

1,436,928

4,238,375

3,969,161

+

6.8

3,356,921

4,245,678

——;

3,992,250
3,990,040

+

6.3

3,379,985

1,688,434
1,698,94?

1,435,731
1,425,151
1,381,452

-■

-

,

3,322,651

of the

increasing steadily, in

1,709,331
1,699,822

4,307,498
4,344,188

_

much

1,615,085

pected

to

set

expenditures by
month of April amounted
or 5.7% from the
high of
Production Board said on
The daily rate of

-

the United States Government during the
to $7,493,000,000, a decrease of
$455,000,000

From

$7,948,000,000 expended in March, the War
May 16. The Board added:

war

slight increase

a

ernment expended

over

$184,000,000,000 for

war

i

going

EXPENDITURES

JANUARY,

MONTHLY

1941—APRIL,

AND

Monthly
Expenditures

Daily Rate

25

$27.4
34.5

monthly average
$684
monthly average
897
3rd quarter monthly average__^_—
1,253
4th quarter monthly average-..—____ Yfrl*
1/797 :Hv
quarter

■J*

12-month

1944—

January
February

total—

•

25

83,135

+,■

.

.•

71:9

the

312

•

f'f? r

...

—

7,808

—

March

26
25

i?

272.9

7,948

April

——

27
25

299.7

It

Up

basic slowing up in order

a

volume," the "Iron Age" says
today (May 25), further adding:
"More properly it was being
interpreted as a slight reluctance
on the part of steel
buyers to make further commitments until the
military situation became more^in its issue of

clarified...

:%%%%;•.,

"Order volue
Still

close

to

on

the whole

actual

was

shipments in

the past week, and any decline in
total
backlogs was said • to be

slight
steel

or

no consequence.

centers

ing that
one

of

of

were

still

Some

complain¬

carryovers will represent
their major troubles in

months to

come.

This is particu¬

larly true, it was said, on plates,
shapes and semi-finished steel
The strong tempo engendered by
the approaching shell program in
the third quarter, the tightness in
the tinplate market and the heavy
over-all demand for semi-finished

steel,
botb for
lend-lease
and
forgers, is also being accelerated
by outlaw strikes, equipment
breakdowns and high turnover."
The

American

Institute

Iron

and

Steel

that

May 22 announced
telegraphic reports which it

bad

received

on

indicated

that

the

operating rate of steel companies
having 94% of the steel capacity
of

the

industry will be 98.4%




of

capacity for the week beginning
May 22, compared with 99.2% one
week

ago,

100.0%

month ago

one

is slowly unfolding.

one year ago. The oper¬
ating rate for the week beginning
May 22 is equivalent to 1,762,600
ions of steel ingots and
castings,
compared to 1,777,000 tons one
week
ago,
1,791,300
tons
one

'year

mary

one

of the iron and
on

mar¬

May 22, stated in part

as

follows: "Pressure for
shipment of
steel continues
heavy,
with as much

flat-rolled

tonnage

pushed forward

sibly

carry.

urgency

of

as

This
some

mills

is

being

can

pos¬

because

war

ments and also to the
steel production of the

shortage of manpower
proaching hot weather.

of

require¬
threat

to

these

set

plot

this

up

a

of

Gov¬

Fascist

people

were working to a
end, and some of them
already agreed upon the man
they were going to make the
common

fuehrer.

He was the retired army
officer Van Zandt
Moseley. /

Well, sir,
and

see

you

ought to go down

these ambitious

In¬

men.

trial

There

has

is

80, died since

been

another

in
one

Washington

progress.

of

newspaper¬

hungry for the past eight
a

them

know to have been broke and

He is in his seventies.

couple

of

women

difficult by the fact
country's economic ma¬

services,

Henry A. Wallace

were

nominated

by the Liberal Party for reelec¬
tion, and United States Senator
Robert
F.
Wagner
(Democrat)
named to succeed himself.

was

% \In itsiissue of May 21 the "Her¬
ald Tribune" said.' i • '
.u

years.

There

are

crackpots.

"Completing its organization

two-day
session,
the
new
party elected Professor John L.
Childs, of Columbia University,
State Chairman. It elected
Joseph
V. O'Leary, former* State

Comp¬
troller, Secretary; Harry Uviller,
Impartial Chairman of the Dress
Industry,
Treasurer,
and
Alex
Rose, former State Secretary of
the American Labor
Party, Chair¬
of

man

What

then

is

the

Government

trying to build up?
The most
competent observers see in it an
effort to offset the New Deal's al¬
liance with the Communists.

Communists

administrative

The

old

American

election
Dean

"Left-wing

The

are

openly out for
They have re¬
organized their set-up to make it
less
embarrassing to the New
Deal.
They are now just a bunch
the Fourth Term.

of

and

403,026
for

leadership
Chairman

increasing

whatever

also two

or

that

But, bear in mind, it

ap¬
a

is.

There

three Bundists.
was

surprise to know that this

T

quite
con¬

"Third quarter steel allocations glomeration, many of whom have
have been reduced
5%, appargnt-i ;never seen one another before,
ly in recognition of this tkneah had been
trying to overthrow the
Some trade-interests
believe the Government.
That
is

not

what

for

Governor

dustrial

Action

under

the

Sidney
Hillman,
Congress of In¬
Organizations
Political-

Committee,

They will

have

taken

American Labor

the

over

forces

of

of the

Party.

name

President Roose¬

educationalists, for the time be¬
ing in the New Deal.
They are
good law-abiding citizens. Aren't

velt and his ticket,
including Sen¬
ator Wagner, after the

the

convention.

Soviets

miration

they,

deserving of the ad¬

of

the

world?

Aren't

as a matter of

fact, just fel¬
Democrats trying to accom¬
plish the same things in Russia,
in Poland (breaking
up the landed
estates); in Eastern Europe, even
in this country; aren't
they trying
low

accomplish the

is

masses

sort

of

same

things for

the New Deal?

as

amazing

misunderstood

that

them,

we

It

mutual

understanding

world is to

Well,

if

the

live in peace.

now

Dubinsky, President of
the International Ladies' Garment
Workers'
Union, again asserted
the ALP is under Communist con¬
.

trol

predicted the

be

the

third

you've

been

wrong

alertness

to

about

"A

tailed

preserve

De¬

party
strength

carefully prepared and de¬
platform was adopted at

security"

dealt

with

specific

domestic

issues.

a

"The party's new rules include
provision that 'no person shall

member
a

of

or*

remain

Liberal Party or
party office or party po¬

sition

here

before the bar of jus¬
trying to do, including
those aggressive 75 and 80
year
old codgers.
We just lost a 13
year old dog.
He was so old he

advocates, supports, follows,

couldn't

other name."

are

tice

fighting
now

was

even

bite.

a

the

at home while the boys
for it at the front,
prevented what this crowd down
mocracy

we

the morning session.
It asked the
world powers 'to adopt collective
actions for international

these

time, let

new

in

after the next election."
Also from the same
paper
take the following:

and

that you've realized

and

would

ever

and
one
right force¬

thing we will tell you
fully is that we had better have
a

Chicago

David

hold

Fascist

votes

Alfange

in 1942,

be eligible to become

admitted

Labor;

Roosevelt in the 1940 Presidential

their

an

con¬

poll at:
400,000 votes next Novem¬

least

fellow Democrats all the

is

com¬

"Mr. Rose predicted to the
vention the new party will

Party polled 417,418 votes for Mr.

charged with.

are

the

mittee.

ber.

they

in

the

the New Deal show you something
that is really dangerous, and only

Dennis

?

,

party took

cently killed in Italy, and Law¬
rence
Dennis, and our recollection
that

.:.

.

There are, of
course, George Syl¬
vester Viereck whose* son was re¬

is

the

prosperity

more

the

he said.

move

the.

of

man

1929

effected in

as the first
step in national
political realignment "by which a
major party will emerge."
On May 20 President Franklin D.
Roosevelt
and ) Vice-President

to

the

was

new

cidentally, one of them, an ener¬
dynamic, dictatorialv in¬
old

that

chine has been doubled
during the

.

clined

getic,

are

and

gigantic

and

had

sum¬

steel

the

dictatorship.
It was one of the
most
hair-raising recitals you ever
heard.
According to Mr. Rogge,

men

Cleveland, in its

statement to

to -overthrow

ernment

whom all

ago..

"Steel" of

kets,

1,719,500 tons

a

as uncertain as were

war, with "tremendous" increases
in
employment, wages and the
production of goods and

pros-

It really

Fascists

and 99.3%

month ago and

is

the pur¬

of

war,

predic¬

permanent.

that

sponsoring the new party) in his
keynote
address, described
the

Washington

Court once—and

told

the

such

Avoiding repercussions has been,
made

American^
Labor Party and Chairman of the
Liberal
and
Labor
Committee

The

sought to incite the armed forces.

"Although there appeared to be some hesitancy in steel buying
during the past week, this factor was by no means taken as an indi¬
of

done.

of

was

before

termed

a convention held at the Hotel
Roosevelt, at which, according
to the New York "Herald
Tribune," Dean Alfange (the 1942 candidate
for Governor
of
the

Asso¬

statement went far beyond the in¬
dictment that these people had

Steel Production Off 0,8%--Order Volume
Holds Gloss To Shipments—Mil I
Carryovers
cation

Bar

jury of the assistant attorney gen¬
eral, Mr. Rogge, the ace of the
attorney general's office.
This

294.4

7,493

a

attitude

unfolded in the

312.3

be

less

or

Palmer

tions just

na¬

per¬

$140,000against $100,-

place at

no¬

in the

out of

285.2

/'.'Vv

District

Administration

pose

7M16

has

trying to
do. It has been
pursuing this case
right tenaciously—it was thrown

169.1

v.

It

past several days it
has become more
apparent what

,.,48.2

■

310

52.406
1943

26

Mr.

a

a

about

outrage that the
lawyers have been

this

that

New York City on
May 19 of
Liberty Party, its formation having been
brought
by right-wing forces who withdrew last March
from the
American Labor Party.
The action in forming the new

now

charge against them, and if so,
they should be put away.
There
has been a lot of
feeling that the
Government was right silly to
bother with people like this.
But

26

1st quarter

2nd

trial

Washington.

the

forecasts

annually,

assurances

future

busines

Roosevelt And Wallace For Re-election

has been that
maybe these people
were
guilty
of
the
particular

1944

Number of Days
Checks Were Cleared

sedition

of

The organization
what is styled the

an

that

general

RATE

000,000
000,000

Without

prise system.

A group of them have

to

ciation

DAILY

in

such

moved

(In Millions of Dollars)
1941—

great

tice of it.

Corporation and its subsidiaries.
>
Monthly expenditures and the average daily rate from
January,
1841, through April, 1944, are shown in the following table:

Mentioning

time."

problem

in

a

tional income had reached
manent
high level at

the maintenance of the free
enter¬

"The

"We

Govern¬

Newly Organized Liberal Party Nominates

Washington
thinking of taking collective

nance

WAR

deliveries on
scheduled for June

now

on

been

by the Treasury payable
outlays of the Reconstruction Fi¬

STATES

back

Washington

the

as

These figures include checks cleared
from war appropriations, and net

UNITED

probable to
This is ex¬

(Continued from first page)

purposes,

Mr.

sponsoring groups' program
for
encouraging current study of
post-war problems, and said the
country's primary aim should be

result

a

this

that

see

whether

—

not—by

ning for the solution."

Palmer, Chicago Chairman
CED, spoke in furtherance

Ahead Of The News

,

expenditures in April, on the other hand,
March, expenditures averaging $299,700,000 per day, an increase of 1.8% over the
daily rate in March of
$294,400,000. The highest average daily rate to date was reached in
February with $312,300,000 per day expended by the Government for
war purposes.
The daily rate is based on the 25
days in February and
April, and the 27 days in March upon which checks were cleared
by
the Treasury.
From July 1, 1940,
through April 30, 1944, the United States Gov¬
showed

As

cases

and third quarter from
two to six
weeks."
'
'

April War Expenditures Lower
war

days.

directives ar4
handle this excess.
more

contracts

V'

ten

as

1,704,426
1,705,460

some

Mr.

or

problems without sound plan¬

war

avoiding

difficulties

by business,

explode, but certainly we can¬
intelligently attack our post¬

not

of the

as

Co

good job is done
public places.
"The powder keg may or
may

not

of

adequate planning we haven't
Chinaman's chance of

tons of tin mill products and
104,000 tons of plates for third
quar¬
ter.
Carryover by some mills is

1,696,543

unprepared,"

often been unfortunate.

tons of

1,633,291

+ 12.3

direction

"Neither have ade¬
quate preparations been made for
peace and the results have too

195,000 tons of shell steel, 200,000
sheets, an additional 12,000

1,687,229
1,683,262
1,679,589

history

Palmer said.

problem

1,706,719
1,702,570

3.889,858

our

WPB is said to be faced with
the
of placing additional

1,699,250

3,882,467

4,336,247

__

May 13
May 20
May 27

1929 "

1,726,161
1,718,304

4,408,703
—

April 22

•

1,578,817
1,545,459
1,512,158

+ 15.1

4,361,094

_

April 29

May

1942

+ 14.2

sound

it

ment," he said.
must

in

"We have entered
every war in

replacing

like

you

meeting the post-war chal¬

toward

enterprise

labor, agriculture and

government, Mr. Palmer said.

Shipbuilding

Co.,

operative

as

men, business men must
be prepared to devote
more atten¬

tion

& Dry Dock
30 cargo ships
transferred to Pacific Coast
yards.
Steel Requirements
Committee of

©

over 1943

Feb.

March

Kilowatt-Hours)

% Change
1944

indicated

Palmer,

service

for 24 tankers to be built
by

Sun

also

lenge of maintaining economic
stability and absorbing returning

125,000 tons of hull
steel, mainly plates, will be placed
soon

....

"In

some

appearing.

1943.

quoted,

follows:

"About

Total United States

is

other remarks of Mr.

extent in sheets

some

&

——

tentative inquiries for
sheets for this purpose already are

11.7

9.4

__

Rocky Mountain
Pacific Coast

reflected to
and

6.1

9.3

!'A "9.7

_

and

going

shortly. Both these programs,
particularly landing craft, will be

4.3

6.0

•

of Marshall Field

joint meeting of the Chicago Association
of Com¬
the Committee for
Economic Development at
a

Chicago
said that American business
will find itself
perched atop an economic
"keg of dynamite" that may explode at
any time in the next 10 years
unless sound plans are
formulated at once to avoid
post-war reper¬
cussions. The New York "Times"<$>
of April
4, from which the fore- perity is one of
individual co

out

Apr. 29

1.8

4.0

4.9

Central Industrial

,*•

May 6

0.7
3.6

Repercussion

Palmer, First Vice-President

April 3, at

merce

for

plates and sheets
off, although the ttend is
likely to be upward soon, espe¬
cially in plates, because of the
new
landing craft and merchant
ship programs scheduled to come

Week Ended

New England

Middle Atlantic

James L.
on

are

:

—

Palmer Asserts Business lust Plan Now
To Avoid Posl-War

result of trefrten-

a

down, with repairs
by shortage of skilled help.

"Orders

PERCENTAGE INCREASE OVER PREVIOUS YEAR.

Major Geographical Divisions-

1

greater

are

slowed

approximately 4,245,678,000 kwh., compared with 3,992,250,000
in the corresponding week a
year ago, an increase
of 6.3%
output for the week ended May 13, 1944, was 3.8% in excess

of the similar period of 1943.

as

be

tions of recent months. Some units

The Edison Electric Institute, in its current weekly
report, esti¬
that the production of electricity
by the electric light and
power industry of the United States for the week ended May
20, 1944,
.

kwh.

this,

will

strain on equipment result¬
ing frorri record-breaking opera¬

,

The

output

.

dous

mated

was

in

or

membership

in

a

party

committee

or
receive
a
party
nomination for public office who

heres

to

or

espouses

tarian doctrine,

any

philosophy

ad¬

totali¬
or ac¬

tivity, whether it be Fascist, Nazi,
Communist
or
known
by
any

1944

Thursday, May 25,

CHRONICLE

COMMERCIAL & FINANCIAL

THE

2178

$2,000,000;.
President of >

Knox Estate at

Averages

And Bond Yield
Daily Average Crude Oil Production For Week Moody's Bond Prices prices and bond yield
Moody's computed bond
Ended May 13,1 $44 Decreased 16,550 Barrels given in the following table:
The

daily

the

that

estimates

Institute

Petroleum

American

conditions

Corporate by Groups'"
P. U.
Indus.

Corporate by Ratings"

R. R.

Baa

A

Aa

Aaa

rate"1

Bonds

Averages

119.60

112.19

118.60

116.80

102.30

112.00

118.60

116.80

111.81

102.13

105.86

113.89

119.59

112.19

118.60

116.80

111.81

102.30

105.86

113.89

119.59

112.00

118.60

116.80

111.81

102.13

105.86

113.89

19—

105.69

113.81

10

23—

22

—

111.81

119.57

112.00

118.60

116.80

111.81

101.97

119.51

112.00

118.60

116.80

111.81

101.80

105.86

113.70

119.48

112.00

118.40

116.80

111.81

101.80

105.69

113.89

119.48

112.00

118.40

116.80

111.81

101.80

105.69

113.89

101.80

105.52

113.89

105.52

113.89

113.70

18

17

,

*

16

15

119.48

111.81

118.40

116.80

111.62

119.48

112.00

118.60

116.80

111.81

101.64

119.51

111.81

118.60

116.61

111.81

101.64

105.69

11

119.51

111.81

118.40

116.61

111.81

101.64

105.69

113.70

10

13-

-

12

119.58

111.81

118.60

116.61

111.62

101.80

105.69

113.70

119.52

111.81

118.40

116.80

111.62

101.64

105.52

113.70

119.48

111.81

119.40

116.80

111.62

101.47

105.52

113.70

6_

119.48

111.81

118.40

116.61

111.62

101.47

105.52

113.70

5

119.48

111.81

118.40

116.61

111.62

101.47

105.52

113.70

4—~

105.34

113.70

118.20

116.61

111.62

101.47

119.47

111.62

118.20

116.61

111.62

101.47

105.34

113.70

2

119.34

111.62

118.40

116.41

111.62

101.31

105.34

113.70

1—

119.35

111.81

118.40

116.61

111.62

101.47

105.34

119.75

111.62

118.40

116:41

111.62

101.31

105.17

113.70
113.70

105.17

113.70

104.83

113.89

111.62

119.51

3

Apr. 28—_
21

119.86

;

111.62

118.20

116.61

111.44

101.14

119.81

14—

•

117.00
117.00
117.00
116.80
116.80
116.80
116.61
116.61
116.80
116.80
117.00
116.80
116.61
116.61
116.41
116.41
116.41
116.22
116.22
116.41

105.86 ,113.89

119.60

20_—;

May

111.44

118.20

116.61

111.44

100.98

119.68

111.44

118.20

116.41

111.25

100.81

104.66

111.44

118.20

116.61

111.44

100.81

104.66

113.89

120.14

111.44

118.20

116.61

111.25

100.65

104.66

113.70

120.26

111.44

118.20

116.41

111.25

100.81

104.48

113.70

100.49

104.31

113.70

113.50

1-

100.32

119.96

111.25

118.40

116.41

111.07

100.49

104.31

113.50

111.25

118.40

116.22

111.25

100.49

104.31

113.50

116.22
116.41
116.41

111.07

116.41

118.20

111.25

120.21

18

:

104.31

119.69

25

Feb.

111.25

116.61

118.20

111.25

120.44

page 1842.
On May

116.22
116.41
116.41
116.41
116.41

113.70

119.86

17

3

■

116.41
116.41
116.41
116.22

24

Mar. 31

certified an
all-time-high production rate of 4,879,100 barrels daily of all petro¬
leum liquids to the various oil-producing States for June, 1944. This
figure represents a net increase of 60,600 barrels daily over the rate
certified for May, 1944, the previous record high.
Administration for War on May 15

made on
election of Laird
Bell as President of the "Chicago
Daily News, Inc.," to fill the va¬
cancy due to the death on April 28
of Frank Knox, Secretary of the
Navy.
• '-v1'V' \'/
.'">£>*■
i.xr. Bell, who was chosen by the
Board
of
Directors,
has
been
,pounsel lor the "Daily News" for
many years and a director since
1926. He also is one of the three
executors named in Col. Knox's
will. The death of Secretary Knox
was noted in our issue of May 4;
was

16 of the

May

Avge.
Corpo-

Govt.

Daily

6

the East Coast.

on

The Petroleum

U. S.

1944—

4,502,000 barrels, a decline of 16,550

was

News"

"Chicago Daily
Announcement

Yields)

(Based on Average

ended May 13, 1944,
barrels per day from the
preceding week and 17,700 barrels less than the daily average figure
recommended by the Petroleum Administration for War for the
month of May, 1944. The current figure, however, was 517,700 bar¬
rels per day more than the output in the week ended May 15, 1943.
Daily production for the four weeks ended May 13, 1944, averaged
4,469,800 barrels. Further details as reported by the Institute follow:
Reports received from refining companies indicate that the indus¬
try as a whole ran to stills on a Bureau of Mines basis approximately
4,400,000 barrels of crude oil daily and produced 13,618,000 barrels of
gasoline; 1,637,000 barrels of kerosene; 4,545,000 barrels of distillate
fuel oil, and 8,399,000 barrels of residual fuel oil during the week
ended May 13, 1944; and had in storage at the end of that week
87,823,000 barrels of gasoline; 7,049,000 barrels of kerosene; 30,763,000
barrels of distillate fuel, and 49,737,000 barrels of residual fuel oil.
The above figures apply to the country as a whole, and do not reflect
crude oil production for the week

average gross

averages are

PRICESf

MOODY'S BOND

Bell Elected

17 a petition was pre¬
Chicago before Judge

in

sented

probate of
who, until
Secretary of the

John F. O'Connell, for

of Mr. Knox,

the

will

his

death- was

Publisher of The Chi¬

Navy and

Daily News, Inc. The will
with
Frank
Lyman,
Clerk of the Probate Court, by

cago

filed

was

Bell, Boyd & Marshall,

the firm of

Reid Knox;
President of

for Annie

attorneys

Holman D. Pettibone,

Title & Trust Co., and
Bell, named executors in the
An announcement with re¬

the Chicago

Laird

4

PRODUCTION (FIGURES IN BARRELS)

DAILY AVERAGE CRUDE OIL

■"State

Week

0

begin.
May 1

dations
Mav

Oklahoma
Kansas

from
Previous

269,600

t278,000

•—

—

1950

900

Nebraska

Low

270,700

305,550

High

200

1,100

2,150

—

91,000

Texas-

West

321,150

91,100
145,500
—

-

104.14

113.50

116.61

will.

100.16

104.14

113.31

10C.16

104.31

113.31

99.84

104.14

113.50

116.41
116.41
116.41

gard thereto says:
"The estate, estimated by the
executors at $2,000,000, is left to

21——

119.58

111.25

118.40

116.41

111.07

119.57

111.25

118.60

116.41

111.25

119.69

111.07

118.60

116.41

111.07

99.36

103.80

113.50

116.22

120.44

112.19

118.80

116.80

111.81

102.30

105.86

113.89

119.34

110.70

118.20

116.22

110.88

99.04

103.30

113.12

117.00
116.02

132,100

364,100

363,200

Southwest

300,100

519,300

22,

23,

May

214,000

375,200

137,150

Central Texas—
Texas

200

+

519,850

Coastal Texas

—

120.87

74,850

North Louisiana

Louisiana

Total

Arkansas

357,950

76,700

77,991

80,300
41,100

43,000

282,800
250

+

79,800

114.27

97.16

111.81

117.40
114.46

110.15

118.20

115.82

110.88

97.47

102.13

113.12

115.82

*
*

Corpo

220,000

Daily News, Inc. continuation of

2.72

2.81

3.07

3.61

3.40

2.96

2.80

2.72

2.81

3.07

3.62

3.40

2.96

2.81

3.07

3.61

3.40

2.96

3.07

3.62

3.40

*2.96

2.80
2.80
2.81

a

2.72

newspaper which it

1.84

3.06

2.72

1.84

3.06

2.72

2.81

3.07

3.63

3.41

2.96

2.81

17——

1.85

3.06

2.72

2.81

3.07

3.64

3.40

2.97

2.81

1.85

3.06

2.73

2.81

3.07

3;64

3.41

2.96

this

15

1.85

3.06

2.73

2.81

3.07

3.64

3.41

2.96

3.08

3.64

3.42

2.96

gard thereto. They shall be under

—

9—

1.84

3.07

2.72

2.82

3.08

3.64

3.41

2.97

8

1.85

3.07

2.73

2.81

3.08

3.65

3.42

2.97

6—

1.85

3.07

2.73

2.81

3.08

3.66

3.42

2.97

1.85

3.07

2.82

3.08

3.66

3.42

2.97

1.85

3.07

2.73

2.82

3.08

3.66

3.42

2.97

2.82
2.82
2.81
2.81
2.80
2.81
2.82
2.82
2.83
2.83
2.83

13,200

21,700

81,600
21,400

7,200

8,100

52,100

79,750
22,200

51,200

58,700

9,550

92,200

92,900
r; 20,550

300

21,400
8,200

50

112,100

96,950

3,640,200

3,205,500

150

+
—

1.85

3.08

2.74

2.82

3.08

3.66

3.43

2.97

2.84

2.82

3.08

3.66

3.43

2.97

5

—

•*

3

2.73

3.06

2.72

3.65

3.42

2.96

3.07

2.72

2.82

3.07

3.65

3.41

2.97

1.85

4

■

3.07

1.85
1.85

L

12
11

72,300

2.81

1.85

13

210,550

2,600

3.07

2.73

2.82

3.07

3.65

3.41

2.97

2.73

■

3.07

2.81

Total East of Calif
California

position by sale or otherwise of
said interest in said corpora¬

my

tion

gas

above,

shown

3.08

2.73

2.83

3.08

3.67

3.43

2.97

3.07

2.73

2.82

3.08

3.66

3.43

2.97

2.83

1.83

2.73

2.83

3.08

3.67

3.44

21—

3.08

2.97

2.83

1.82

3.08

2.74

2.82

3.09

3.68

3.44

2.97

2.83

6

1.83

3.09

2.74

2'. 8 2

3.09

3.69

3.46

2.96

2.84

Mar. 31

1.83

3.09

2.74

2.83

3.10

3.70

3.47

2.97

3.47

2.96

2.84
2.83

them

3.47

2.97

2.83

and

3.48

2.97

2.83

3.49

2.97

2.83

Lem
the

Apr! 28

778,800

4,469,800

-16,550
as

and do not include amounts of

of crude oil only,

production

allowables,

state

and

3.08

1.86

1.86

3,984,300

represent

the

tThis
includes
several

condensate and natural

shutdowns
down

for

days,

from

for

ordered

were

7

exempted

were

of

as

1 calculated on a 31-day basis and
entire month.
With the exception of
and of certain other fields for which
days, the entire state was ordered shut

May

1

to

14

definite dates during the

no

required

CRUDE

OF GASOLINE; STOCKS OF FINISHED
UNFINISHED GASOLINE. GAS OIL AND DISTILLATE FUEL' AND
RESIDUAL FUEL OIL, WEEK ENDED MAY 13, 1944

RUNS

AND

TO

PRODUCTION

STILLS;

barrels of 42 Gallons Each)

:

\V

.

;'

'

Daily Refining

"

,

tial

Runs to Stills

% Re-

Daily

Op-

tStocks

Finished

Includ.

and Un-

tStocks {Stocks
of Gas

of Re-

Oil and

sidual

Natural finished /Distillate

porting Average erated Blended Gasoline Fuel Oil

Rate

District—

at Re-

fineries

Crude

Capacity

Poten-

Fuel
Oil

♦Combln'd: East Coast
Texas

Louis¬

Gulf,

2.82

3.10

3.71

2.74

2.83

3.10

3.70

2.74

2.82

3.10

3.72

*:

1.81

3.10

2.74

2.83

3.11

3.73

3.49

2.98

1.83

3.10

2.73

2.83

3.11

3.72

3.49

2.98

2.84
2.83

1.85

3.10

2.73

2.84

3.10

3.72

3.49

2.98

2.83

Low

3.10

2.73

2.84

3.10

3.72

3.50

2.98

3.11

2.74

2.^4

3.11

3.74

3.50

2.99

2.83

1.86

3.10

2.73

2.83

3.11

3.74

3.49

2.99

2.83

1.86

3.10

2.72

2.83

3.10

3.76

3.50

2.98

2.83

1.85

3.11

2.72

2.83

3.11

3.79

3.52-

2.98

2.84

1.87

3.13

2.74

2.84

3.12

3.81

3.55

3 ..00

2.85

1.79

3.05

2.71

2.81

3.07

3.61

3.40

2.96

2.80

2.08

3.31

2.81

2.96

3.23

4.25

3.93

3.07

3.07

3.54

2.94

2.78

3.00

the

highest

but they

bidder

may

accept any bid from any bid-*

der

for

reasonable

by

terms deemed

any

to be

and

fair

be

upon

to

amount deemed

any

to

acceptable in view of

foregoing."

'

"Col. Knox's interest in the Chi¬

2.86

1944

1944——

1943

3.09

1.79

1943

2.80

2.68

1.90

3.16

2.74

2.86

3.12

3.91

3.G2

sented

partly

shares

of

1.94.

3.37

2.85

3.01

3.31

4.29

4.00

2.98

3.12

computed from average yields on the basis of one "typical" bond
,3%% coupon, maturing in 25 years) and do not purport to show either the average
.evel or the average movement
of actual price quotations.
They merely serve to
llustrate in a more comprehensive way the relative levels and the relative movement
>f yield averages, the latter being the true picture of the bond market.
tThe latest complete list of bonds used in computing these indexes was published
n the issue of Jan.
14, 1943, page 202.
♦These prices

are

is repre¬

5,301

by

common

corporation

the

and

partly by a controlling interest in
Daneco

Corporation

which,

in

turn,
the

of

of Delaware

owns

common

226,300
stock

of

Daily News, Inc. out of

Chicago

Ago

1942-

Inc.

Daily News,

cago

shares

1 Year Ago
May 22, 1943-

fc

obligation to sell said interest

to

2.93

3.79

effectual

no

2.82

1.87

14——

High

1.87

28—-—

North

Gulf,

iana

2.74

25-———

May 23,

Production

3.09
3.09

3.10

1.80

2 Years

§Gasoline

■

3.70

21

fan.

Low

Figures in this section include reported totals
plus an estimate of unreported amounts and are
-r—therefore on a Bureau of Mines basis

3.09

18

Feb.

High
(Figures in Thousands of

2.82

1.81

—

3

month being specified; operators only

to shut down as best suits their operating schedules or labor needed
to operate leases, a total equivalent to 7 days shutdown
time during the calendar
month.
SRecommendation of Conservation Committee of California Oil Producers.
being

2/74

1.80

10

for week ended 7:00 a.m. May 11, 1944.

for the
entirely

exemptions

and

which

allowable

basic

net

the

is

are

3.09

1.82

17-

Kansas, Nebraska figures

shutdowns

fields

—

24

derivatives to be produced.
tOklahoma,

1.85

dis¬

their

in

carrying out my wishes in re¬

in

2.84
2.83

2_—

shall

they

as

cretion deem to be most

2.74

6,700

829,600

5,800

4-

4,502,000

4,519,700

recommendations

—22,350

831,500

§840,000

840,000

Total United States

—

3,670,500

3,679,700

______

♦P.A.W.

112,050

111,700

111,700

New Mexico

—

particularly authorize

I

end

publishes. To

executors to make such dis¬

my

14—

Colorado

the

of

16

13,400

—

traditions

and

the

preserving

management

character

2.81

•

20,000

Chicago

of view "of insuring to the

R. R.

3.05

.

208,200

71,400

24,400

:

Corporate by Groups*
P. U.
Indus.

Corporate by Ratings'"
Aa
A
Baa

3.05

>

52,450

50

2,950

—

(Mrs;

Knox) "and further from the point

3.06

10——

Michigan

legatee"

residuary

1.84

18

—15,450

11,600

73,800
23,000
54,000
94,000

Wyoming

point of view of

sirable from the

1.84

(Not incl. 111., Ind.,

Montana

Daily

The

Inc. as may be "most de¬

1.84

Eastern—

______

Chicago

in

interest

20—

100
>

W

204,700

14,000'

Kentucky

Prices)

are

of the

the

Aaa

rate*

Bonds

113.50

executors

The

♦

given discretion to dispose

AVERAGES

Avge.

Govt.

110.88

96,07

91.77

107.44

112.93

Inc.

News,

News,

(Based on Individual Closing
U. S.

°

in

interest

:

MOODY'S BOND YIELD

May 23

'

Ky.)

116.02

106.39

118.38

1942-

Daily

72,100

.

42,100

500

—

50
_•

103.47

92.35

Ago

Averages

348,050

358,200

350

—

150

Florida

Indiana

99.36

108.88

19

Alabama

Illinois

111.81

113.89

including Col. Knox's
The Chicago
Daily

Mrs. Knox,

22——

390,500

Mississippi

75,400

87,000
261,050

:

.

350,000

__

1,502,550

250

—

283,100

Louisiana-

Coastal

1,952,900

200

+

1,9.95,500

1,972,000 t 1,976,904

117.00

116.80

<

1943-

1944—
Total Texas

119.41

107.44

119.48

___

111.44

116.85

1943

339,300

307,050

East

„_

1943-

2 Years

124,300

East Texas

1944-

May

226,750

401,600

—

100.49

111.07

1 Year Ago

i

131,900

429,150

Texas

111.25

116.22

Low

91,100

147,200

Panhandle Texas
North

334,600

—

116.22

118.20

1944—

2,000

+10;800

t333,550

285,000

_

328,000

High

1943

1944

118.40

111.07

7

May 15,

May 13,

Week

1944

>330,000

Ended

Ended

Ended

May 13,

ables

Recommen

>

Week

4 Weeks

Change

111.25

119.47

14

Actual Production

Allow¬

•P. A. W.

119.45

28

Ian.

shares

400,000

of

common

stock

outstanding.

N.

Union-Leader

the

of

"Stock

Publishing

Co.

Manchester,

of

H., is left in trust with Mrs.

Knox

for

benefit during

her

her

Col. Knox at the time of

lifetime.

Louisiana-Arkansas,

2,279

90.5

6,680

37,672

15,953

14,388

95

73.1

305

2,052

925

204

87.2

51

108.5

143

1,275

235

141

824

85.2

752

91.3

2,667

20,472

4,329

2,740

418

80.2

348

83.3

1,226

8,578

1,266

1,187

District No. 3

8

26.9

10

125.0

38

74

6

30

District No. 4

141

58.3

94

66.7

358

2,227

317

546

817

89.9

771

94.4

2,201

15,473

7,732

30,501

4,903

87.3

4,400

89.7

13,618

f87,823

30,763

49,737

30,438

49,841

2,518

90.3

1

130

83.9

District No. 2

47

and

inland Texas-

his

*

Appalachian—
District No.

Ind., 111., Ky.
Okla.,

Kans.,

Mo;

-

Rocky Mountain—

California

—:

Commercial Paper
Reports received by the
from commercial paper

market paper

13, 1944_

•

basis May 6,

1944—

4,903

87.3

4,316

88.0

13,115

88,267

10,600

3,758

15, 1943_

87,011

30,811

67,366

request of the Petroleum Administration for War.
tFinished, 75,901,000
unfinished, 11,922,000 barrels.
tAt refineries, at bulk terminals, in transit
in pipe lines.
§Not including 1,637,000 barrels of kerosind, 4,545,000 barrels of
oil and distillate fuel oil and 8,399,000 barrels of residual fuel oil produced during
week ended May 13, 1944, which compares with 1,510,000 barrels, 4,118,000 barrels
8,948,000 barrels,
respectively, in the preceding week and 1,594,000 barrels,
■"At

1943—

$

Apr 30—

178.900,000

194,800,000
213,700,000
208,900,000

Mar 31

the

Feb

29—

J an 31

—

and

Nov 30

and

3,720,000 barrels and 7,701,000
Note—Stocks

of

kerosine

against 6,673,000 barrels a

barrels, respectively, in the week ended May 15, 1943.
at

May

13,

1944

amounted

to

7,049,000

barrels,

week earlier and 5,850,000 barrels a year before.




as

—

143,300,000

Jun 30————

315,200,000

—

159,600,000

May 29_

354,200,000

—

Oct 30

-

Sep 30
Aug 31

^

July 31—

—

Jun

30—

May 29

,

Two

Sep 30
——
Aug 31—
July 31

202.000,000
203,300,000

—

Thursday,

229,900,000
260,600,000
271,400,000

187,800,000

/
—

a

but

small
Mrs..

substantial interest.

—

—
-

-

——

—

—

—

281,800,000
297,200,000
305,300,000

Mdy 16,

Wednesday,
Friday,

169,500,000
156,200,000
149,800,000

-

1943—

a

only

stock,

Moody's Daily
Commodity index

200,600,000
209,100,000
220,400,000

Feb 27
Jan 30
1942—
Dec 31—
Nov 30
Oct 31

—

this

Knox owned

Tuesday,

$

194,800,000

Dec 31—

the

1943.

Apr 29—

barrels;
gas

announced on
outstanding on March 31,

Following are the totals for the last two years:

Mar 31—

U. S. Bur. of Mines
basis May

York

1944—

Total U. S. B. of M.

owned

$171,500,000 of open

outstanding on April 29, 1944, the bank

1944, and $178,900,000 on April 30,
basis May

death

amount" of

Federal Reserve Bank of New

dealers show a total of

This compares with $194,800,000

April 29.

Total U. S. B. of M.

Outstanding

May
May

May

1944
17

—

250.1

19—

20
Monday, May 22_
Tuesday, May 23
Saturday,

ago,

1943

High,
Low,

1944

ago,

ago,

Year

May

22

22_____:

April
Jan.

250.4

May 9

April

1

2

High, March

Low,

250.1
250.3

May

weeks

Month

Jan, 5

250.0
250.0

250.0'

18

17

;

249.7
249.6.

246.1-

249.8'
240.2"
251.5

247.0

Volume 159

Number 4284

THE COMMERCIAL

Market Valise Of Stocks On New York
Exchange announced on May 6 that as of
•the close of business April 29, there were
1,241 stock issues, aggregat¬
ing 1,493,590,566 shares listed on the New York Stock Exchange, with
total

a

market

value

of

$48,670,491,772. This compares with 1,243
1,492,248,939 shares, with a total market
value of $49,421,855,812 on Mar. 31.
In making public the
April 29 figures the Stock Exchange fur¬
issues,

aggregating

•

ther said:
As of the close of business
member

total

net

April 29, New York Stock Exchange

borrowings

amounted to $696,751,105 of which

The

warehouse

The

'

'

.

2

New

Aviation

3

Philadelphia

4,250,812,974

16.20

551,589,025
430,984,992

Business and Office Equipment

Financial

434,911,635
6,025,907,063

1,589,150,149

56.33

787,986,996

_

Land & Realty

19.57

986,748,689

20.15

3,202,514,291

38.30

26.G4

45,744,662

27.36

32,800,390

■

6.74

34,790,487

7.15

242,817,439

28.81

243,905,112

28.94

1,710,354,814

23.86

1,748,571,529

1,357,801,368

22.04

509,172,646
5,978,432,842

21.80

3^71,711,308

36.00

1,386,348,539
512,673,486
6,067,014,808
3,924,384,903

2,645,002,774

36.33

2,673,568.880

55.99

604,487,369

93,940.009

17.57

99,889,248

18.11

17,585,580

Rubber

Ship Building & Operating.

Shipping Services
Steel,

Iron &
Textiles...

Electric
Electric

(Operating)
(Holding)

42.34

2,167,636,674

90

12.57

87.33

3,704,385,256

87.91

19.56

117,491,766

20.11

22.88

797,066,498

23.42

863,207,509

20.84

859,331,135

21.24

volume

153,607,938

26.17

154,074,911

26.25

month since

July

30
31

.

1943—

L

.

Jan.

30

Feb.

27—

Mar.

31—

Apr.

'

30—

Average
Market Value

$

1943—

$

$

.

May. 29
June

30

22.73

July

31

23.42

47,710,472,858

32.04

23.70

Aug. 31
Sept. 30-——'

48,711,451,018

32.82

24.20

Oct.

30—

25.65

Nov.

30

48,178,040,869
45,101,778,943

I 32.44

25.41

Dec.

31—

47,607,294,582

48,437,700,647
48,878,520,886
47,577,989,240

32.96

Civil

per week.

30.33

28.16

Jan.

29.61

Feb.

31

—

29

31.20

Mar.

Apr.

32.47

29

-

48,494,092,518
49,421,855,812

32.59

32.51

than

in

in continental U. S. totals

in

the

both

corresponding

state

and

1943

month

municipal construction

March,

are:

April, 1943

March, 1944

April, 1944

(5 weeks)

(5 weeks)

(4 weeks)

Total U. S. Construction
Private Construction

$397,068,000 $175,726,000
$145,040,000
45,710,000
45,109,000
27,649,000
Public Construction
333,358,000
130,617,000
117,391,000
State and Municipal
26,605,000
18,643,000
19,638,000
Federal
306,753,000
111,974,000
97,753,000
The April construction volume
brings 1944 volume to $595,162,000 for the four months of the
year, a figure 51% below the
$1,218,109,000 reported for a year ago. Private
construction, $125,989,000, is
1% lower than last
year, and public construction,
$469,173,000, is
down 57% due to the 4%
decline in state and
municipal construc¬
tion
decrease in federal volume.
New

j

New capital for construction purposes for the four
April, $183,997,000, is 45% lower than the
$416,561,000
last year.

The current month's

weeks

of

new

Agency construction.

$365,635,000,

•

a

new

total

construction

24%

below

opening four months of 1943.




15,

1944

Aug.

31

139,304,000

Aug.

30

123,494,000

direction.

one

31

118,581,000

Oct.

193,590,000

31

Nov.

194,220,000

173,906,000
162,849,000
156,302,000

Dec.

30

May

29

June

Mexico and Canada.

The

London

quiet

was

Official

market

and

the

31

_

_

_

31-

116,067,000

Nov.

130,244,000

-

—

31

1943—

31

197,278,000

Jan.

30

119,682,000

Jan.

31

28

190,010,000

Feb.

27

127,062,000

Feb.

29

182,675,000

Mar. 31

129,818,000

Mar. 31

Apr.

128,350,000

Apr.

30

Non-Ferrous Metals

at

price

was

unchanged at 35c.
Gold

120,497,000

809 oz., against 97,976 oz.

134,772,000

_

_

and

129,358,000

_

29

125,566,000

Copper And Lead Sales
June Shipment Large — Quicksilver Lower

For

—

in Feb.,

129,154 oz. in March last year,
according to the American Bu¬
of

reau

Metal

Statistics.

Output

lead for delivery next month
was heavy last
week, pointing to a high rate of activity at fabricat¬
ing plants in June. Buying of zinc will expand as soon as allocation
certificates covering June reach consumers. The tin trade
is deeply

centrates will be

maintained, and

the supply outlook here is not

pected to change. Quicksilver
dull

ex¬

was

and

prices were unsettled,
declining $4 per flask during the
last week."
The publication fur¬
ther went on to say in part as
follows:

capital

the

brings

'

1944

A./,-J

volume : to

$479,279,000 reported for the

to
a

be

Most operators in

more

use

of

zinc in essential ap¬

Shipments of galvanized sheets
during the first quarter of 1944
totaled 303,204 tons, against
203,707 tons in the same
period last
year.

present

indications,

sumption

of

copper

will

hold

to

the

has

obtained

next

high

month

level that

since

ever

con¬

March

this year.
Lead

Consumers

Conditions

hased

14,021
tons of lead during the last
week,
against 7,519 tons in the week

under

which

pro¬

ducers may accept orders for and

shipment of aluminum in¬
got, as well as the method of re¬
porting on Form WPB-2593, are
covered in CMP

Regulation 1, Di¬
rection 29, issued last week. The
term "ingot" as used in the direc¬
includes

pigs, slabs, billets,
shot, and other raw forms. Pow¬
der, flake, and paste or pigment
are

not included in the order.

Increased buying was
expected, in view of the fact that
act

were

unchanged

pearing in the

from

those

Chronicle"

of

July 31,

■

Cotton

Spinning For April

The Bureau
nounced

on

of

the

place

spinning spindles
in

the

United

were

States

ing

operated at

the

month,

time dur¬

some

compared

with

22,568,308 for March, 22,513,300 for

February, 22,217,994 for January,
22,596,322

for

December,

406

for November

for

April,

1943.

and

634,608.

Based

22,623,-

22,894,718

The

aggregate

spindle hours

on

an

was

activity of

80

tinned

spindles in the United States

far

for

be

also

promise

to

large.
Zinc

Allocation certificates
zinc
17.

went

Brass

large

into
mills

the
are

consumers

of

mail

for
on

certain

zinc

June

May
to

be

next

month, with galvanizers also ab¬
sorbing good tonnages. The con¬
servation

order

for

amended

last

week,

per

zinc

is

about

by WPB to include smelters
engaged in the recovery of tin in
the list of plants that
may accept
delivery of used tin cans. This

124.9% capacity^

action

delivery this month, and

allotments

was

hours

122.0

would

ment-owned
treat

used

permit the govern¬
Texas
for

cans

smelter
tin

to

recovery.

Mpmbers of the tin trade

believe

that the smelter at present is

not

equipped to treat such material.
Permission
cans

may

be

to

obtain

granted

used

to

tin

other

operated

during

compares, on

ary,

for

the

April,

124.0

133.2

month

were

1944,

at

This percentage
same

basis, with

for

January,
for

125.3
for

April,

115.3

for

November,
1943.

average number of active

houjs

cotton

March, 123.3 for Febru¬

December,
and

the

re¬

9,315,-

Conservation Order M-325, gov¬
scrap,

in
on

April 30, 1944, of which 22,411,922
were

erning salvage of tinned and deweek

an¬

preliminary figures, 23,305,534

ported for the month

VvV.s.>v'';Tin

Census

May 18 that according

/Jpne

on

of

ap¬

1942, page 380.

foreign metal on
May 22. Some 20,000 tons of for¬
eign lead have been released so

allotments

re¬

"Commercial and

number of active

previous.

WPB is scheduled to

(domestic and export

copper

cotton

make

tion

pure

daily price of electrolytic

finery), lead, zinc and Straits tin

to

*

Aluminum

Fabricators

From

Daily Prices
The

plications.

Copper
purchased substan¬
tonnages of copper for June
delivery during the last week.

1943.

Financial

amended, permitting

little

the

of

1944
totaled 269,916 oz., against
379,877
oz.
in the Jan.-March
period of

Markets," in. its issue of May 18,

"Demand for both copper and

interested in the Bolivian political situation.
metal feel that exports of tin con-<8^

un¬

Production of gold in the United
States in March amounted to 83,-

__

1944—

Jan.

at

metal

114,883,000

31

Feb.

tinued

silver

foreign silver con¬
443Ac., with domestic
70 %c.
The Treasury's

117,016,000

__

30

Dec.

135,815,000
139,846,000
138,692,000

_

_

_

30

118,039,000

___

for

price

The New York

for

$

30

July

Com¬

week ago, the price

a

Silver

Sept. 30

Oct.

30— 177,293,000

than

more

pared with

tailed in

1943—

Sept.

July

29

Apr.

livery $116 could have been done

us,

30

$117.50 per

lots for nearby de¬

$4 per flask. The lower
price-level prevailed throughout
the week.
Output is being cur¬

%

29

at

lots, spot New York,

round

on

declined

ft

$

inactive

was

offered

was

ft
ft

June

31

reported for

financing
is made up of
$22,757,000 in private investment,
$46,240,000 in fed¬
eral funds for non-federal
construction, and $115,000,000, in federal
funds for Federal Works
month's

MAY

Selling Rates

May

Nov.

Mar. 31—

metal

in

ft

1942

1942—

market

changed at 23V2d.

Dec.

June

Capital

;

the five-week
period

Dealers'

215,005,000
212,932,000
209,899,000
197,472,000
176,801,000

31

as

Private construction 23 and
24% lower, respectively, than for a
month ago and a year
ago.
Civil engineering construction
volumes for April,
1943,

The

1

.$96,075,000

&

tial

1944, and April, 1944

BANKERS ACCEPTANCES

"E. & M. J. Metal and Mineral

of

and federal work.

and the 60%

30
,

Total-

$3,572,000

184,806,000

—

30

Sept.

stated:

construction, on the weekly average basis, is 12% higher
than in the preceding
month, as a result of the 32% increase in state
and municipal constructions and
the 9% gain in federal. Public
work,
reported

31

33.12

48,670,491,772

31

31.45

48,396,650,695

Public

were

July
\ug.

the

in the first three months

tary engineers abroad, American contracts outside the
country and
shipbuilding, is 3% higher than the weekly average for the five
weeks of
March, 1944, but is 52% below the average for the five
weeks of April,
1943, as reported to "Engineering News-Record" and
made public on May 4. The
report went on to say in part:

decreases

30_

33.27

April, an average of $36,260,000
volume, not including construction by mili¬

however, is 56% lower

31

June

$44,937,000

May 31, 1941:
$

current

selling pressure again was in
evidence, unsettling prices. The

and

furnishes a record of the
acceptances outstanding at the close of each

bankers'

that

longer excessive,

no

flask in small

1944—

the four weeks

This average

10,562,000

26.39

engineering construction volume
lor

May

32.17
"'

April Civil Engineering Construction Volume
Tops March Weekly Average By 3%
$145,040,000

6,593,000

BAlUs

31.96

>,

41,410,585,043
43,533,661,753
45,845,738,377
46,192,361,639

week

following table, compiled by
of

de¬

consum¬

and

317,000

%

1941—

Oct.

21.41

'

'

Price

22.40

33,41.9,047,743
34,443,805,860
34,871,607,323 i
35,604,809,453
37,727,599,526
37,374.462,460 i$h
38,811,728,666

31——

Nov.

Exchange:

Price

The

33.12

;

Average
$

31—

Oct.

49,421,855,812

two-year compilation of the total market value

30—31,449,206,904
29
32,913,725,225

'Dec.

32.59

the

13,178,000
24,837,000

i/2

180

re¬

and

Until

buying is expected to remain on
light side. During the last

75,000

%

—

show

been

the

11,254,000

ft

150

will

bring supply

convinced

are

19,622,000

J/2

—

21.62

1,238,265,265

to

balance.

19,339,000

PRIME

120

2,237,881,937

on

8,632,000

Bills of others

———

12.36

48,670,491,772

$70,824,000

12,380,000

6,551,000

ON

many
believe
production
has

stricted

production is

$79,434,000

Dealers' Buying Rates
i/2
' ;

778i568,343

Market Value

June 30

60

which
that

290,000

RATES

30

Quicksilver

mand in

$2,784,000

at

The industry is awaiting official
news
on
the statistics for April,

CREDIT

for month

Days

21.33

and the average price of stocks listed

Aug. 31—;
Sept. 30__

MARKET

year

12,177,000
■

99% tin, held
pound all week.

or

51.125c. per

10,565,000

$51,138,000

CURRENT

for

Apr. 30, '43

;

Decrease

$128,350,000

Chinese,

ers
OF

BILLS HELD BY ACCEPTING

/ -

Miscellaneous Businesses

$129,358,000

Mar. 31. '44

goods stored in or shipped
between foreign countries

Own bills-

712,000

10,454,000

$76,644,000

___

114,306,759

r.'

445,000

Decrease

on

46.71

S. Cos.
Operating Abroad
Foreign Companies

May

Based

35.11

:

a

722,000

204,000

month——;__$3,792,000

i;

-

4,679,000

27,000

347,000

.

3,683,326,011

All Listed Stocks,

52.000

May 17-

2,458,000

_

Domestic shipments
Domestic warehouse credits,.
Dollar exchange——

42.85

525,293,099

1,272,098,711

U.

1942

Imports
Exports—

2,208,192,213

Miscellaneous Utilities

We give below

for

1,217,796,,522

Communications

Apr.

9.50

36.49

46.20

,

&
&

52.000

396,000

3125,566,000

29.89

32.82

,

:

24.40

488,308,407

Gas

52.000

3,769,000

Apr. 29, '44

22.50

1,258,188,419

Gas

77,048,000

2,120,000

21.97

2,141,729,593

Tobacco..

Utilities:

80,065,000

32,000

''

29.46

16,377,993

Coke

52.000

1,787,000
2,421,000

ACCORDING TO NATURE

10.20

Petroleum

52.000
52.000

5,151,000

-

_

56.85

...

Machinery & Metals
Mining (excluding iron)
Paper & Publishing

Railroad_.^_,:._L._^j-______._.i__„_.
Retail Merchandising

Total

36.73

595,313,632

...

Leather——

-

57.59

37.33

52.000
52.000

52.000

9,784,000

38.84

957,470,684

Garment.

__

62.80

39.01

3,123,164,306
44,549,142

Food

_

_

_

33.66

61.56

1,607,521,115
770,793,399

Machinery..—....™..

July

52.000
52.000

52.000

City

Decrease

June

52.000
52.000

52.000

Francisco

27.21

5,909,841,589

—

Electrical Equipment.

..

Dallas

567,080,387

26.49

33.35

Straits quality metal for ship¬
ment, in cents per pound, was as

52.000

4,841,000

16.76

dipped tin-plate in the Jan.-March
period this year totaled 400,161
tons, and electrolytic 138,624 tons.

52.000

598,000

593,643,086

Steel In¬

52.000

1,058,000

Louis

Grand

and

Production of hot-

May 15—

35.18

575,899,570

Iron

May 16

2,117,000

10

34.81

American

Apr. 30, '43

Chicago

Kansas

the

stitute reports.

$22,714,000

6,073,000

Atlanta

San

of tin-plate
during
quarter of 1944 totaled
538,785 tons, against 494,386 tons
in the Jan.-March period of
1943,

first

Mar. 31, '44

3,163.000'

6

12

Production

the

May 11—

865,000

__

Minneapolis

23.76

and

impose.

May 12—
May 13——

DISTRICTS

Apr. 29, '44

Riclimond-

St.

550,610,687

Building

Farm

RESERVE

terms

upon

it may

as

follows:

OUTSTANDING—UNITED STATES

_

Cleveland

5

7

22.98

...

Chemical..-...:

FEDERAL

conditions

May

ACCEPTANCES

77,366,000

9

532,582,738
4,205,138,283

i—

DOLLAR

York

11

Amusement
Automobile.

on

parties by WPB

$20,780,000

Market Value Av. Price

Market Value Av. Price

based

Boston

8

'

those

Federal Reserve District—
1

—Mar. 31. 1944—

—April 29, 1944
;

and

Reserve Bank's report follows:

4

are classified by leading in¬
with the aggregate market value and average price

bankers'

BY

1

following table listed stocks,

dustrial groups
for each:

credits

BANKERS

w,

In the

of

goods stored in or shipped
between foreign countries were
lower, while in the yearly analysis
only credits for imports and exports were higher.

value of all listed stocks, on that
date, was, therefore, 0.96%. As the
loans not collateralized by U. S. Government issues include all
other

types of member borrowings, these ratios* will ordinarily exceed the
precise relationship between borrowings on listed shares and their

volume

dollar
acceptances outstanding on
April 29 amounted to $125,566,000, a decrease of $3,792,000 from the
Mar. 31 total, according to the
monthly acceptance survey issued
May 15 by the Federal Reserve Bank of New York. As
compared
with a year ago, the April 29 total
represents a loss of $2,784,000.
In the month-to-month
comparison, imports, exports, domestic

$468,371,064 represented loans which were not collateralized by U. S.
Government issues. The ratio of the latter borrowings to the market

total market value.

2179

Acceptances Outstanding On
April 29 Decrease To $125,586,900

Exchange Lower On April 29

The New York Stock

Stock

FINANCIAL CHRONICLE

Bankers' Dollar

"

Stock

&

The

spindle

per spindle in place for the
was

400.

-

#

Says Chancellor

intend to go back to the
Gold-Standard was indicated on May 10 by Sir John Anderson,
Chancellor of the Exchequer in the House of Commons, when, during
debate on the International Monetary Plan he said:
"I believe there is in fact no foundation for the view that this

involves a return to the gold standard. Certainly
present Gov-«>
—
ernment would be one of the most 'out at something like 20 or 25%
of the total.
'
vehement opposition."
The right of members to with¬
The agreement reached by tech¬
nical experts of the United Na¬ draw was introduced because it
tions on "a set of basic principles was held that no purpose could be
for
an
International
Monetary served by attempting to hold peo¬
Fund,,' as made known by Sec¬ ple in the fund against their will,
and because small nations would
retary of the Treasury Morgenthau on April 21, was referred to be more likely to come into the
in our April 27 issue, page 1737. scheme if they felt that in the
Advices from London (Reuter) last resort they had the^right to

scheme in any way
attitude

the

of the

'

remarks of

May 10 regarding the
Chancellor Anderson,

respecting

plan, were reported
in
the New York

the Monetary

follows

as

v

"Times":

Chancellor said the inter¬

The

monetary

national

plan

Dealing with the position of

contem¬ ships

plated the necessity of fixed par¬
ity. There should be a recognized
machinery for the adjustment of
rates
of
exchange
of
several
countries in relation to their cur¬

the

John said the
Government would not be disposed
to favor any plan likely to inter¬
fere in any way with relation¬
sterling

with

area,

Sir

between

different

States

association
another under the ster¬

had

which

one

been

in

ling area arrangement.
The Chancellor recalled that the
Prime Minister had made

it clear

agreement was formal¬
including United States
which was based on ly entered into between tne two
gold.
Therefore,
he said, the Governments, the understanding
was
clearly established that it
scheme provided
for /regulating
contained non-obliga^on on Brit¬
the parity of national currencies
ain's part to get rid of imperial
in the last resort with gold.
in' consideration of
"The general idea accepted by preference
our friends in
the United States lend-lease facilities.
He had not the slightest doubt
and ourselves is that the voting
that those who had been engaged
power should run parallel with
in discussions with representatives
quotas and that the voting power
of the British Treasury on the
of the United States and the vot¬
other side of the Atlantic had been
ing power of the British Common¬
this matter with the
wealth
should be for practical handling
most complete good faith and with
purposes
equal," Sir John said.;
the intention of obtaining as far
He added that the voting power of
before this

rencies,

currency,

the

States

United

and the Com¬

monwealth would probably

work

in

possible the object set out
agreement.

as

the mutual aid

Extending Lend-Lease
Program As Hastening Day Of Victory

President Signs Bill
Hails
•*"!'/

With the signing on May

17 of the bill extending the

Lend-Lease

statement accompanying
of ever-increasing help
who defied the Axis has
April, 1941, the first full
furnished aid valued at $28,-

President Roosevelt in a
his approval,/declared that "the promise
which the United States held forth to those
been fulfilled." He went on to say that "in
Act for one year,

month of the Lend-Lease program, we

In the

000,000.

month of March,

1944, the Lend-Lease

aid supplied

Lend-Lease aid

supplies amounted

$1,629,554,000 — al¬ to $1,629,544,000—almost as much
most
as
much as the aid ren¬ as the aid rendered during the en¬
first
year
of Lend-Lease
dered during the entire first year tire
From the beginning
of Lend-Lease operations." It was operations.
of
the
Lend-Lease program in
also asserted by the President that
."victory will come sooner and March, 1941, to April 1, 1944, our
aid totaled $24,224,806,000.
will cost less in lives and ma¬
terials because we have pooled
"Through Lend-Lease and re¬
our
manpower and our material verse
Lend-Lease, the material
resources and supplies of the
resources, as United Nations, to
defeat the enemy."
United Nations have been pooled
amounted

to

President's

The

statement fol¬

for

their

most

effective

use

again, by overwhelming

"Once

"The

combined

forces

members of the textile division of the War
session
at<S>
reasons
he banking system to cooperate with
cited were that the risk tends to and supplement the facilities of
increase with the term of the loan the investment banking fraternity
generally speaking, many
quite properly feel that

and,

lenders

there

should

*

both

be

a

well-

established earning record and a

substantial

of capital to

cushion

a long-term commitment.
Some of the techniques developed

justify

.factors- and

banks,

by

such

field

finance

term loans,
and the dis¬

as

warehousing

were

"After

Dec.
an

7,

on

we

their side.

were

attacked

United
defeat the enemy."resources,

on

1941, Lend-Lease became

essential part of our own war

It

as

Nations,
>

to

...

noted in Associated Press

was

by

for their con¬
after the war.
capital, Mr. Price
pointed out that the present tax
structure, the relatively high cost
possibilities
risk

for

As

of public issues for

smaller com¬
panies and the dependence
of
many
small businesses on the
efforts of

two

he

hoped

to

the

three

or

men

difficulties.

real

sented

that

some

structure

tax

pre¬

He

said

amendment
might be

adopted for the specific benefit of
risk capital as well as for new
business enterprises.
He observed
it might be possible for

that

the

objective

He said that, in this

lieve

the part of the financial
community, a far greater degree
of skill,
patience, thoroughness
and ingenuity in the conversion
and
immediate post-war period
than in more normal times; and

Senate

quire,

on

nished

aid

program,
valued

In the month of

at

we
furr
$28,000,000.

,v::

March, 1944,^ the according




to

its

provision,

sponsors,

is

to

,

Professor
Columbia Univers¬
ity, and President, Limited Pricq
Variety Stores Association, was
Dr. Paul H. Nystrom,

of the Sales

President

re-elected

Club of New York at

Executives

the Annual Election Meeting of
on May 15, by a vote of
that
organization in the Hotel
motion for the adoption of the cloture rule to limit debate
Roosevelt on May 16. This will be
on
the anti-tax bill, the Senate subsequently adopted on the same
Dr. Nystrom's fifth successive an-*
day, by a vote of 41 to 35, a motion by Senator Clark of Missouri
nual
term
as
president of the
(Democrat) to take up a measure to provide artificial limbs for
Club.
His candidacy was uncon¬
veterans.
As a result of this action the anti-poll tax bill, which

Following the rejection of the Senate

44 to

36,

would

a

make

quirement

"unlawful, the

for the

shelved

so

of

sion

far

as

the current

Congress

ses¬

concerned.

is

Stating that the Senate action au¬
tomatically displaced the House-

—

tion.

said

Barkley

Senator

"The

Senate

the

accounts

from

Washington May 15 also had the
following to say: .' .
.

McCarran

"Senators

(D.-Nev.),

(D-Fla.), and Taft (R.
Ohio) protested against Senator
Clark's
motion
on
the ground

Pepper

the

approval would displace

its

that

poll

tax bill without giving
a
direct
vote
on

Senate

the

Sen¬

answered that he, like

Senator Pepper,

bill

appeared in our issue of May

11, page 1947, in which it was in¬
dicated that the bill passed the
House

on

cific

on

consent

of

Congress.

*

The

agreed to the amendment

March 12.

a

invoke

to

vote

in 96

44

hours,

South¬

Corp.

-

Vice-

as

Presi¬

dent; General Features Corp., as

Carroll

Secretary;

cloture,,

not only short of the
two-thirds of those vot¬
ing, but short of a majority."
to Washington ad¬
17 to the New York
"Times" Representative Winifred

According
May

Stanley, Republican, of New York,
a joint resolution that

introduced

day providing for a Constitutional
amendment
which would elim¬

and

Francis, President,"Gen¬

Clarence

Foods

eral

Nichol,

Major

Corp.;

President

Vice

eral Manager,
ness

Scribner's Sons-,
as Directors

Chas.

Treasurer;

as

nays,

Merritt,

B.

Manager, Subscription Book De¬

partment,

necessary

vices

Stores

v

President; S. George Little,

36 ayes to

was

Manager, United Cigar-

Whelan

which would have shut off all de¬
bate

Mer¬

chandise

anti-poll tax bill.

"The

General

&

Vice-President

Democratic filibuster against

ern

Director of Public
Relations, Loose-Wiles
Co., and Frank M. Head,

Flack,

Biscuit

the de¬
petition

rejected
cloture

bate-limiting

'

with him were;

serve

and Trade

opposition to
cloture, any expectation of a vote
on the
poll-tax bill was 'a vain
hope.'

which would have halted

Press

Gene

m

view of the Senate's

ment for/

sociated

Elected to

in supporting Senator Clark's mo-

approved bill outlawing the col¬
lection of a poll tax as a require¬
voting for Federal offi¬
cers in 8 Southern States, which
had been debated since May 9, As¬

'

tested.

re-3>

payment of a

poll tax as ja prerequisite to voting
in a primary or other election of
National officers" is regarded as

House

this

or¬

Nystrom Again Heads

Rejects Cloture, Then Displaces Bill

that

of

prevent

of democracy,'
Wagner."
' V

operation

Sales Exec. Club

Senate Shelves Anti-Poll Tax

or

idea

agree¬

an

of Marketing,

first obtaining the consent of Con¬
gress. The Associated Press added
the

would

which

said Senator

weight to the character and
ability of prospective, users of
money
as
to
their
financial

W.

F.

&

Gen¬

International Busi¬

Machines Corp.; and George

P. Joha'nsen,

Secretary-Treasurer,

Advertising Distributors of Amer¬

ica,

Inc.

R.

Harry

White

<

con¬

poll-tax requirements in all tinues as Executive Secretary of
States where
they now are in the club, a post he has held for the
force.
A similar measure, it is
past eleven years.
stated, has been submitted in the
It was announced at the meet-:
Upper House by Senator O'Maing that the club has had a 10%
honey of Wyoming.
In later advices from Washing¬ increase
in membership
in the
inate

ton

(Associated Press, May 20) it
that

stated

was

than

more

30

of

the Senate's 37 Republicans spon¬
sored

that day a constitutional

on

amendment to ban

ing the signatures of himself and
32 colleagues,
talked of getting
action

this

session

to

bring

the

poll tax issue before the people.
On May
13 President Roose¬
velt was urged by the National
Negro Council to take an immedi¬
ate hand in the Senate battle over

the anti-poll tax

sition

the

on

and

of

bill; state his po¬
and, "if fav¬

Southern Democrats

about passage of the
The foregoing was reported

bring

bill.

by the New York 'Herald Tribune'
in

advices

rate

of

3%,

from

its

Washington

which also had the fol¬

say

resig¬

bringing

total enrollment to 1,500

its

members.

Alloy Steel Output In

April Shows Decline M
Production of alloy steels dur¬

ing April totaled

889,051 tons, less

than 12% of total steel

during' that month,
the American Iron

measure

orable; lend his weight to end a
filibuster

past year, with a record low
nation

poll tax levies.

Senator Wherry (Rep., Neb.), who
introduced- the amendment bear¬

lowing to

Lend-Lease

attempt

the

of

member

any

would

derly

that it would be essential to give

position.

that

ment

full

country to any post-war military
economic role without the spen-

or

opinion, to

attain this" objective it would re¬

military

In April,

1941, the first full month of the

Democrat, of New York, a sup¬
porter of the anti-poll' tax bill,
admitted that he had heard ru¬
mors
that if the vote Monday
failed to limit the debate that the
bill would be withdrawn and no
vote ever taken. 'But I cannot be¬

can.

Axis has been fulfilled.

post-war
economic way without

desirable,

be

of

bureau,

any

might

cooperation

.

Government

where

areas

some

behind-the-scenes

Senate failed to invoke cloture on
Monday.
V .': /
"Senator
Robert. F.
Wagner,

opinion that there might be

the

settlements may not obligate the

in

his influence

use

agreement between Senate Major¬
ity Leader Alben W. Barkley of
Kentucky and the Southern Dem¬
ocrats to scuttle the bill if the

United

States

but to

tration,

gether with people in the com¬
munity with that type of capital
to invest.
Mr. Price expressed

held forth to those who defied the

.

was

'to dissolve the

notes, were mentioned, as well as
the

turn

N.N.C., not only to
the present anti-poll legis¬
'must' under his adminis¬

would
be to
bring
worthy users of risk capital to¬

April 19, and the Senate
on May 8.
As passed by the Sen¬
ate the bill was amended to pro¬
vide that the President in making

Washington,

lation

it

jective

May
effort.
17 that, "the new law prohibits
"The promise of ever-increas¬ the President from .using Lending help which the United States Lease authority to obligate the

from

accounts

make

the financial com¬
munity to do just as much of the
job themselves as they possibly

tinued development

'his strategic

in

Roosevelt

"Mr.

but that it should be the primary

instalment

(

appealed to Gov¬

Dewey to use

screening organizations whose ob¬

machinery

of

count

Walter

asked by the

local

supporting

of

means

.

position' in the Republican party
to swing Republican Senators in
line with those favoring resort to
cloture to limit Senate debate.

Congress
in
Omaha, Neb.
The

had voted to in¬
majorities, the elected representa¬ combined resources of the United voke cloture because he did not
Nations
are
striking with their believe that the Senate should
tives of the American people in
Congress have affirmed that Lend- united strength from all direc¬ permit a filibuster during critical
tions against the heart of Nazi
Lease is a powerful weapon work¬
periods of war, but said that, at
ing for the United States and the Germany. Our fighting men are the same time, important veter¬
with British, Soviet, ans legislation 'cannot be
other United Nations against our joined
de¬
Dutch,
Polish,
Czech, layed.' Senator Clark said that he
common
enemies.
For the third French,
time I am affixing my approval Yugoslavian and the fighting men was against passage of the antiof the other United Nations.
In
to a Lend-Lease Act.
poll tax bill. ■;■■■<.
V > n •<:.• •> .>; V
the Far East and in the Pacific,
"When on March 11, 1941, the
"Majority
Leader
Barkley
combined United Nations fighting
Lend-Lease Act first bdfame law,
(Ky.j, who voted for cloture, and
forces are also striking with in¬
Britain stood virtually alone be¬
Acting Minority / Leader White
fore the tide of Axis aggression creasing power against the Jap¬ (Me.) who voted against it, joined
anese.
''C-.-;/.,:--'//.X
-\,.'v' ■/ <■:'
which had swept across Western
"This unity of strength, both in
Europe.
Everywhere the peacemen
and
resources,
among the prevent a situation whereby the
loving peoples of the world were
free peoples of
the world will executive branch could accept a
facing disaster but the passage of
base, or give one away, in con¬
the Lend-Lease Act gave firm as¬ bring complete and final victory.
That victory will come sooner and nection with Lend-Lease settle¬
surance to those resisting the ag¬
will cost less in lives and ma¬ ments, which might lead to inter¬
gressors
that the (Overpowering
terials because we have pooled national complications. Reference
material resources of the United
our
manpower and our material to the action of Congress on the
States

ernor

Price spoke before

ator Clark

and the

the

The N.A.A.C.P.

Credit

whether to lay the bill aside.

against our common enemies.

lows:

expressing the view that the short-term credit needs of
can be adequately taken care of by the banks, factors
companies, W. G. F. Price, Vice-President, American
National Bank & Trust Co. of Chicago, declared on May 18 that he
wasn't so certain about the intermediate or long-term credit needs.
finance

Mr.

.

Colored

of

While

and

by

r

the National
Advancement

People, on Governor
Thomas E. Dewey of New York.

By Banks, Price Declares

small business

companies,

withdraw.

made

White,: Secretary of
Association for

Be Adequately Handled

the British Government does not

That

that* recently-

Can

Great Britain Does Not Intend To Go Back'To

Gold Standard

1944

Thursday, May 25,

& FINANCIAL CHRONICLE

THE COMMERCIAL

2180

in part:

■

,

'

^The request of the Negro or-'
g^aizgtion; set forth in a telegram
signed by Edgar G. Brown, direc¬
tor'of the N.N.C., was similar to

stitute.

production

according to
and Steel In¬

; In March, 952,287 tons of

alloy steel were produced, while;
in

April

a

year

,

ago

i-

alloy steel

production was 1,214,965 tons, or

/

16.5% of total steel output.

Open hearth furnaces produced
581,005 tons of alloy steel in April.
The remaining

loy

steel

.308,046 tons of al¬

production came

electric furnaces.

'•

from
•

;■»

I

Volume 159

Number 4284

THE COMMERCIAL & FINANCIAL

Weekly Coal And Coke Production Statistics
The

Solid Fuels

Administration for

War, U. S. Department of'
Interior, in its latest report, states that the total production of

,

the

soft coal in the week ended

May 13, 1944, is estimated at 12,560,000
tons, an increase of 410,000 tons, or 3.4%, over the preceding
Output in the corresponding week of last year amounted to
12,097,000 tons. Cumulative production of soft coal from Jan. 1 to
May 13, 1944 totaled 235,395,000 net tons, as against 224,658,000 tons
net

week.

in the

period of 1943,

same

gain of 4.8%.

a

When compared with the production in the corresponding week of
last year, there was,
however, a decrease of 60,000 tons, or 4.3%.
calendar year to date shows an increase of 4.6% when

The
compared with

the

same

period in 1943.

<./ '

.

The Bureau of Mines also

reported that the estimated production
States for the week ended May
13,
1944 showed an increase of 2,900 tons when
compared with the out¬
put for the week ended May 6, 1944, but was 16,000 tons less than for
the corresponding period of 1943.: Production for the 134
days ended
May 13, 1944 was 162,500 tons below that for the same period of last
of beehive coke in

the United

year.

.

;

Week Ended-

Bituminous coal
and

'

May 13,
1944

lignite—

May 6,

IN NET TONS

1943

1944

1943

;

week.

A month ago this index
registered 136.9 and
based on the 1935-1939
average as 100. The

follows:

as

The

PENNSYLVANIA ANTHRACITE AND

ately.

materials

slightly.

index

'

'

'

•

(In Net Tons)
Week Ended

$May 13,
Penn. anthracite—

1944

•Total incl. coll. fuel

S66lliv6 colcc
United

May 13,

1943

WHOLESALE

by

The

1.

1,331,000

23,319,000

22,298,000

162,400

2,896,300

3,058,800

23.0

j.

i

2,431,200

subject

State

sources or

revision

to

receipt

on

of

shipments

reports from district

and

State—

i

April 29,

Alaska-

1944

1944

1943

388,000

.

385,000

304,000

■

Alabama
•

5,000

—

Arkansas and Oklahoma
Colorado

_

tMay 8, •

5,000

100.0

6,000

2,000

83,000

88,000

68,000

170,000

•151,000

1,000

1,000

1,514,000

1,222,000

540,000

511,000

Indiana—

430,000

42,000

49,000

21,000

150,000

141,000

69,000

941,000

773,000

797,000

393,000

289,000

126,000

35,000

36,000

30,000

5,000

81,000

38,000

:

32,000

17,000

5,000

92,000

41,000

North & South Dakota (lignite)

5,000

80,000

1,000
'

27,000

37,000

31,000

24,000

COTTONSEED

14,000

700,000

706,000

588,000

450.000

3,057,000

2,368,000

Pennsylvania (bituminous)

_

152,000

__

138,000

114,000

56,000

4,000

3,000

4,000

15,000

123,000

..

_

118,000
413,000

117,000

31,000

332,000

231,000

lignite)—

_

Virginia
Washington

378,000

27,000
__

tWest Virginia—Northern

28,000

29,000

28,000

2,157,000

2,247,000

1,845,000

1,652,000

1,035,000

tWest Virginia—Southern..

1,063,000

762,000

543,000

184,000

165,000

Wyoming

175,000

•

56,000

.

*
•

§Other Western States

1,000

1,000

#•;: '

'

»

State—

Total bituminous & lignite—
Pennsylvania anthracite

12,150,000

Total, all coal

12,360,000

1,278,000

—

1,344,000 '

13,428,000

13,704,000

9,930,000

7,014,000

1,031,000

952,000

,10,961,000

7,966,000

tIncludes operations on the N. & W.; C. & O.; Virginian; K. & M.; B. C.
on the B. & O. in Kanawha,
Mason and Clay counties.
tRest of
Panhandle District and Grant, Mineral and Tucker counties.
and Oregon.
'''Less than 1,000 tons.

& G.;

and

State, including the
-§Includes Arizona, Idaho

Civil Engineering Constriction $26,807,010
For Week
engineering construction volume in continental U. S. totals
$26,907,000 for the week. This volume, not including the construc¬
tion by military engineers abroad, American contracts outside the
country, and shipbuilding is 36% lower than a Week ago, 58% under
the total reported by "Engineering News-Record" for the correspond¬
ing 1943 week, and 3% below the previous four-week moving aver¬
age.
The report made public on May 19, continued as follows:
Private work is 30% lower than last week, and down 5% com¬
pared with the 1943 week. Public construction is 39 and 68% lower,
a

week ago and

week's

a year ago.

construction

brings 1944 volume to $706,134,000 for the 20-week period, a decrease of 51% from the $1,445,$94,000 reported in 1943. Private construction, $163,047,000, is 12%
above the 1943 period, but public
construction, $543*087,000, is 58%
lower

as

a

result of the 62%

is 1% under

a

decline in federal.

year ago.

State and

United States

130.1

152.0

150.9

104.4

104.4

104.4

152.4

152.4

127.7

127.7

126.6

117.7

117.7

I: 117.7

119.7

119.7

119.8

104.2

104.1

104.3

152.7

137.2

1944,

137.0

106.9;

136.9

May

13,

135.8

106.7;

and

revenue

than

in

the

of

four months of 1939.
The

following table summarizes

ton-mile

statistics for the first
four months of 1944 and 1943.

1943

Increase

60,487,994

55,134,789

Mo. of Feb.

59,307,320

54,417,879

9.0

Mo. of Mar

•63,000,000

61,220,266

2.9

Mo. of Apr

t60,400,000

59,052,370

243,195,314

229,825,304

1st 4 mos.

•Revised estimate.

9.7%

2.3

5.8%

tPreliminary estimate.

April Living Costs
Up 0.7%
.

Living costs
of the
average
family
of
wage-earners
and
lower-salaried clerical workers in
the United States

from 0.7%

rose

from March to

April, according to

the

Industrial

National
Board.

The

Confer¬

board

reports

that sundries

were up 1.2%; food,
0.8, and clothing, 0.2%. Fuel and
light declined 0.1%.
The board's

of

the

of

cost

living

(1923—100) stood at 104.1 in April,
against 103.4 in March and 104.0

Aug. 1 to April 30

April 30

1944

Total U. S. ConstructionConstruction

Construction

*

"

State and Municipal—Federal

May 20, '43
$63,929,000
10,209,000
53,720,000
4,162,000
49,558,000

r

May 11, '44
$42,209,000
13,822,000
28,387,000
6,807,000
21,580,000

May 18, '44
$26,907,000
9,724,000
-

1944

1943

287,709

294,890

3,691,616

4,202,208

244,743

243,117

82,687

55,019

75,366

4,508

469,762

342,316

420,326

124,319

40,756

157,004

61,257

122,770

126,013

353,393

8,445

335,785

330,660

-28,837
2,742

1,776

76,617

164,110

705,529

737,045

640,452

1,560 and

Aug. 1

"The

nor

to

13,129

10,872

222,164

3,887

amounted to 96.7 in

1,085

261,002

354,241

19,416

36,581

892,568

998,252

57,169

144,404

42,589

101,251

124,950

at 96.2 cents in

9,897

tons

186,825

199,172

destroyed at mills but

not

9,728

SHIPPED

OUT,

and

AND

Aug. 1 to

(thousand pounds).(

1942-43

34,460

1943-44
f 1942-43

t207,409
310,191

1,151,366

Cake and meal

j
_

j 1943-44
i 1942-43

(tons)

18,542

1,712,247

190,100

1,859,623

j

1943-44
f 1942-43
) 1943-44
bales) __f 1942-43

11,964

HAND

April 30
•90,969

1,292,403

90,765

t353,927
300,949

1,672,668
2,011,391

862,606

Refugee Boards
Integrate Activities
Integration of

On hand

Aprli 30

1,133,960

(thousand pounds)

tons

respectively.
ON

Aug. 1 to

April 30

1,151,990
1,304,631
U,019,675

58,121
38,332

850,658

23,912

44,118

1,013,131

1,032,647

>135,927

24,602

§1,103,397

1,022,940

43,295

§216,384

1,262,276

1943-44

1,020,570

556

285,001

19,246

__f 1942-43
Grabbots, motes, &c.) 1943-44
(500-lb. bales)
| 1942-43

18,973

829

229-

30,009

28,975

14,106

44,465

39,816

18,755

23,644

57,651

55,145

War

•Includes

13,826,000

and

59,127,000

...

pounds

held

by

refining

1,263

and

manufacturing
.,»„u.uv.Ui.nS
establishments and 3,150,000 and
7,505,000 pounds in transit to refiners and consumers
Aug. 1, 1943 and April 30, 1944
respectively.
tIncludes 3,196,000 and
8,530,000 pounds held by refiners, brokers,
agents, and
warehousemen at
places

other

than

refineries

and

2,551,000 pounds in transit to
Aug. 1, 1943 and April 30, 1944
respectively.

and

manufacturing establishments and
manufacturers of shortening,
soap, etc.
Does not include winterized oil.

^Produced from
1»082,682,000 pounds of
linters

bales
and

produced
mill

includes

run.

Total

22,973 bales mill

..

267,221 bales first cut, 759,630 bales second cut
includes 67,604 bales first
cut, 125,807 bales
;

Exports and Imports of Cottonseed Products
In the interest of national

discontinued

until

notice

the

publication

of

representatives

statistics

earthwork and

of

37

tive Director of the WRB, and Sir

Emerson, director of the
intergovernmental
organization.
Advices from Washington to the
New York "Times", added:

"A series

of

meetings held be¬

tween the two to discuss relations
between

the

organizations

'the tragic problems of

they

said

in

a

have been 'most

'Not

joint

and

refugees,'

statement,

successful.'

only have
complete agreement

we

reached

organiza¬
relations, but what is more
important, we have taken definite
steps to increase the effectiveness
on

tional

of

concerning imports and exports.

the

Herbert

the efforts

defense, the Department of Commerce half

further

of

governments, was announced on
April 21 by John W. Pehle, Execu¬

;

held

run.

of

posed

"

oil.

activities

Refugee

Board, a Federal
agency, and the Intergovernmen¬
tal Committee on Refugees, com¬

26,150

j

(500-lb. bales)

April, 1943."

15,513
81,928

Shipped out

Aug. 1

•

3,534

5,581

90,336

•23,283

has

1923, which
February and

381,635

1943-44

76,546

in

1,007,886

]

§Total

dollar

remained at that figure in March,
declined to 96.1 in April.
It stood

On hand

;

second cut

the

58,545

260,128

108,357

Season

3,734,000

power of the
the basis of 100 cents

on

210,856

44,834 and 51,625 tons
reshipped for 1944 and 1943

Item—

Hull fiber

purchasing

dollar,

269,343

6,716,000
10,467,000

buildings, earthwork1'and
drainage, and streets and roads. Subtotals for the week in each
,4l;ass
of construction are:
waterworks, $239,000; sewerage, $275,000;
bfi'dges
$474,000; industrial buildings, $1,220,000; commercial
buildingXiaVici
large-scale private housing, $7,010,000; public
buildings,

4.6%.

218,785

Produced

(running

were:
fuel and light, 2.9%, and
clothing, 3.7%. Housing remained
unchanged while food declined

202,759

104,429

•Includes

(tons)

ad¬

months

277,152

All other states

Linters

12

905,068

Texas

-

Other

the

110,452

222,920

Tennessee

Hulls

7,712

April, 1943, with

5.9%.

193,960

North Carolina
Oklahoma

South Carolina

oil

14,078

of

during

vances

9,182

163,078

684,741

200,862

Louisiana

326,794
198,663

16,894

over

increase

an

32,166

17,183,000

In the classified construction
groups, gains over last week are in
bridges, commercial buildings, and streets and roads. Gains over the
1943 week are in bridges, commercial




1943

253,862

Arkansas

Irude

est advance

On hand at mills

1943

Sundries showed the great¬

ago.

(TONS)

59,524
373,489

Georgia

hand

HAND

259,452

California

on

ON

Crushed

4,425,067

Alabama

and

—

132.2

152.0

3,890,549

Arizona

;

engineering construction volumes for the 1943 week, last
week, and the current week are:

Public

132.2

CRUSHED, AND

1944

municipal

Civil

Private

more

1943, 34% more
than in the same period of
1942,
and 152% more than in the first

147.7

—

Aug. 1 to April 30

Refined oil

Civil

current

period

same

ence

COTTONSEED PRODUCTS
MANUFACTURED,

The

service

122.8

104.3

♦Received at mills

Mississippi

respectively, than

146.1
130.1

119.7

RECEIVED,

1,953,000

..
-

Utah

5.8%

of

in April, 1943.
May 12, the Bureau of Census issued the
The board on May 12 further
following statement
showing cottonseed received,
crushed, and on hand, and cottonseed reported:
•
products manufactured,
shipped out, on hand, and exported for the
"The level of living costs was
nine months ended
April 30, 1944 and 1943.
0.1% higher than that of a year
On

26,000

3,095,000

Ohio

Texas (bituminous &

proximately
ton-miles

...

939,000

333,000

_

Montana (bitum. & lignite)
New Mexico.;.

Tennessee

144.0
130.1

Cottonseed Receipts To April 30

223,000

47,000
180,000

Iowa

Class I railroads in the first four
of
1944
performed ap¬

142.0

117.7

20,

in

to

months

index

516,000

Kansas and Missouri

Kentucky—Eastern
Kentucky—Western—
Maryland
Michigan
:

May 22, 1943,

Freight
ton-miles,
approximately 60,ton-miles, according

measured

to preliminary estimates based on
reports just received by the Asso¬
ciation from Class I railroads.
\

200.7

164.8

104.4

May

Railroads

£2.

*

1,000
1,428,000

.

198.9

164.8

'

base were:
■> ?

May

152.9

198.9

79,000

Georgia and North Carolina
Illinois—

1926-1928
105.8.

in

same

2.3%, the As¬

American
on

400,000,000

147.9

156.0

8,000

161,000

_

on

the

159.0

154.7

153.4

All groups combined—.-,;

♦Indexes

of

amounted

140.7

146.1

159.6

127.7

drugs

1937

73,000

138.4

152.1

Farm machinery

May 8, 'vi;

139.5

132&

Fertilizer materials
Fertilizers

-Week Ended
!

and

traffic,

1943

1944

Ago

144.4

Metals

of final annual returns from the operators.)

May 6,

May 22,

1944

May 13,

Year

130.1

Building materials

monthly tonnage

Ago
Apr. 22,

199.7

.

are

Month

164.7

Chemicals

exceeded

month last year by

traffic

railroads

1944

146.1-

*

Miscellaneous commodities
Textiles
;

(In Net Tons)

I

(000 omitted)

155.0

Fuels

ESTIMATED WEEKLY PRODUCTION OP
COAL, BY STATES

end

5 advances and

159.6

Livestock

'•Includes washery and dredge, coal, and coal
shipped by truck from authorized oper¬
fExcludes colliery fuel.
JSubject to revision.
^Revised.

railroad carloadings and river

5

145.2

Cotton

1944,

sociation

de¬

156.7

Grains

on

6

Week

138.5

Fats and Oils

ations.

.

and

Preceding

May 20,

Cottonseed Oil
Farm Products-

1929

1

(The current weekly estimates are based

the building
high. All other

freight

Mo. of Jan.

1944

28,087,000
26,065,000

April,

of

Class

by

COMMODITY PRICE INDEX
Fertilizer Association

Group

Foods

volume

National

Week

25.3

1943

143,500

caused

all-time

new

Each Group

23,227,000

J 146,400

a

Latest

May 18,

'

reach

1935-1939=100*

Total Index

May 15,

to

%
Bears to the

1944

principally

drop proportion¬
prices for raw cot¬

as

were

Compiled

COKE

24,289,000

1,278,000
1,227,000

1,386,000

1,273,000

total

States

May 15,

fractionally

Higher prices for brick

'
WEEKLY

Calendar Year to Date
.

1944

1,326,000

tCommerclal produc.

•

§May 6,

reflected

group indexes remained at the previous
week's level.

1937

'

,

all-commodity index

number

The

handled

announced

The textiles index advanced

ton increased

declines.

"

-

the

con¬

farm products
group. The slight decline in
lambs and ewes was not sufficient to
offset the rise in
cattle, hogs,
and life fowls. There was a
fractional decline in the
grains index
number as prices for rye
dropped sharply. The foods group
dropped
off one point as lower
prices were quoted for eggs and cottonseed
oil. The cottonseed oil index
number, marking its first change since
Jan. 1 of this
year, has reached a new low since Oct.
31, 1942 and in
turn has caused the fats and oils
index number to

~

OP

in

135.8,

year ago

Association's report

W- -j".'...

advance

a

higher quotations in the

Total, incl. mine fuel 12,560,000 12,150,000 12,097,000 235,395,000
224,658,000 177,033,000
Daily average
2,093,000
2,025,000 12,016,000
2,059,000
1,962,000
1,552,000
♦Subject to current adjustment.
ESTIMATED PRODUCTION

index/ compiled by The

*

January 1 to DateMay 13,
May 15,
May 15,

May 15,

1944

The weekly wholesale
commodity price

National Fertilizer Association and
made public on May 20, advanced
to 137.2 in the week
ending May 20 from 137.0 in the preceding

During the week 7 price series in the index
advanced
declined; in the preceding week there were 2 advances
and
clines; and in the second preceding week there

■.

ESTIMATED UNITED STATES PRODUCTION OP
COAL,

2181

National Fertilizer Association Gommodily Price
April Freight Traffic
Index Advances
Volume Increased 2.3%

tinued

According to the U. S. Bureau of Mines, output of Pennsylvania
anthracite for the week ended May 13, 1944 was estimated at
1,326,000 tons, an increase of
48,000 tons (3.8%) over the preceding week.

CHRONICLE

of

stated.

being made on be¬
refugee group,' they

the
'It is

our

intention to keep

in close touch with each other in

the

drainage, $534,000; streets and roads, $6,836,000; and
unclassified construction,
$5,081,000.
New capital for construction
purposes for the week totals $3,It is made up of
$1,175,000 in state and municipal bond

755,000.

sales, and $2,580,000 in corporate
security issues.

financing for the

$5,238]^ $489,749,000

year

to date,

New construction

$415,907,000, is 15%

reported for the 20-week
period in 1943.

lower than the
,

,

.1;

future, with a view toward ap¬
proaching our goals more rap¬
idly.' "
"Sir

Herbert

general

explained that a
working agreement

reached would allow the two

or¬

ganizations

as¬

to

give practical

sistance to each other in specific

projects

as

they

were

instituted."

week of last year.

Commission made public on May

The Securities and Exchange

With

a

corresponding

and 2.6% below the

lower than at this time last month

Trading On New York Exchanges

V

'

-

market prices for fresh fruits

decrease of 1.8% in primary

prices for foods dropped 0.4%. Prices were
slightly lower during the week for flour and for cured and fresh
pork. In the past 4 weeks, average prices for foods at wholesale have
fallen 0.4% and they are more than 5% below the mid-May4943 level.
and vegetables, average

v13 figures showing the volume of total round-lot stock sales on the
'New York Stock Exchange and the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
members of these exchanges in the week ended April 29, continuing
Industrial Commodities
Industrial commodity markets con¬
a series of current figures being published weekly by the Commission.
tinued fairly stable. The quicksilver market showed further weak¬
Short sales are shown separately from other sales in these figures.
ness as some producers again lowered prices in an effort to stimu¬
Trading on the Stock Exchange for the account of members
late sales. Naval stores markets were somewhat stronger as rosin and
(except odd-lot dealers) during the week ended April 29 (in roundturpentine rose about 2%. The Department's announcement also
lot transactions) totaled 945,576 shares, which amount was 14.70%'
contains the following notation:
/
of the total transactions on the Exchange of 3,216,380 shares.
This
Note: During the period of rapid changes caused by price con¬
compares with member trading during the week ended April 22 of
1,217,036 shares, or 15.08% of the total trading of 4,214,500 shares. On trols, materials allocation, and rationing the Bureau of Labor Statis¬
the New York Curb Exchange, member trading during the week tics will attempt promptly to report changing prices. Indexes marked
(*), however, must be considered as preliminary and subject to such
ended April 29 amounted to 241,450 shares, or 15.31% of the total
adjustment and revision as required by later and more complete
volume on that exchange of 788,150 shares; during the April 22
reports.
week trading for the account of Curb members of 264,790 shares was
The folio wing, tables show (1) index numbers for the principal
13.41% of total trading of 987,531 shares.
groups of commodities for the past three weeks, for April 15, 1944,
Total Round-Lot Stock Sales on the New York Stock Exchange and Round-Lot Stock
and May 15, 1943, and the percentage changes from a week ago, a
Transactions for Account of Members"'
(Shares)
month ago, and a year ago and (2) percentage changes in subgroup
WEEK ENDED APRIL 29, 1944
1
indexes from May 6 to May 13, 1944.
A. Total Round-Lot Sales:
Total for Week
\%
—

Short sales

i

—

tOther sales

108,960

Members,
of Odd-Lot

for Account of

the Odd-Lot Accounts
Dealers and Specialists:
1. Transactions of specialists in stocks in which
for

Except

showing the daily volume of stock
transactions for odd-lot account
of all odd-lot dealers and special¬
ists who handled odd lots on the
New York Stock Exchange, con¬

tinuing a. series of current figures
being published by the Commis¬
sion. The figures are based upon
reports filed with the Commis¬
sion by the odd-lot dealers and

specialists.

■

4-29

5-6

5-13

•

Week Ended May 6,

Number

Poods

221,090

104.6
117.6
97.3
*83.7

-

Hides and leather products
Textile products-

1944

:> 1944

1943

1944

1944

*103.7

*103.8

103.8

—0.1

-—0.2

8.26

purchases-

Fuel and

126,330

—

Short sales

*123.1

*124.5

125.7

—0.7

—1.7

105.0

104.7

105.0

110.2

—0.4

—0.4

117.6

117.6

117.6

118.4

97.3

97.3

97.3

96,9

0

0

+

0.4

81.5

0

+ 0.1

+

98,860

Other transactions

3.

Total purchases
Short sales

tOther

3.69

111,360

I

initiated off the floor—
1

Semimanufactured articles

80,527

(Customers' sales)
Number of Orders:

farm

*83.7

*103.8

103.9

0

0

114.7

114.7

110.4

0

+ 0.3

+

purchases
Short sales

105.4

105.4

105.4

100.2

0

0

+

:;y

106.0

106.0

104.2

0

0

+

1.7

93.3

93.3

91.4

0

0

+

2.1

*113.2

*113.9

113.7

93.5

short sales—-

* Customers' other sales

,

:

7,388

383,887

;.

—0.4

—1.0

93.5

92.9

0

0

*101.0 *100.9

101.0

0

—

+ 0.1

+

Short sales

30

tOther sales

——

111,820

——

0

*99.5

*99/4

99.1

0

+ 0.1

+

0.4

*98.6

*98.6

*98.5

*98.5

96.9

0

+ 0.1

+

1.8

111,850

Total sales
Round-Lot Purchases by Dealers:
shares

of

Number

marked

•Sales

141,150

—_

"short

exempt"

are

INDEXES FROM

and sales to liquidate a

1944 TO MAY 13, 1944

is

than

less

long position which
with

round lot are reported

a

"other sales."

Total

Stock

Round-Lot

Sales

Transactions

Account

of

■

—

Other

\%

Acqount of Members:
Transactions of specialists in stocks in which
Total purchases—

*

66,480

—

,

purchases

12,655

-—

_

1.93

Short sales

i

:

tOther sales.
Total sales

33,530

5.34

Total-

4.

Total

purchases

128,785

-

Short sales

Statutory Debt Limitation as of Apr. 30,

5,500

.

107,165

tOther sales

112,665

Total sales

Section

that

§Customers' other sales

...

Total purchases

the

Second Liberty

1944

Bond Act, as amended, pro¬

under authority of

Act, "shall not exceed in the aggregate $210,000,000,000 out¬
any one time."

standing at

0

__

of

21

vided that the face amount of obligations issued

15.31

Odd-Lot Transactions for Account of Specialists—
Customers' short sales

to

added

0

.

from the total face amount of
($191,528,560,009) should be de¬

$707,240,501

ducing the total

33,530

-

public on May 5 its monthly

(the unearned discount on savings-bonds), re¬
$183,821,319,508, but to this figure should be
$1,145,594,169 (the other public debt obligations outstanding
but not subject to the statutory limitation). Thus, the total gross
debt outstanding as of Apr. 30, 1944, was $184,966,to,077.
The following is the Treasury's report for Apr. 30:-

ducted

—^"" :" 50,695

-I 'Total purchases-—

Treasury Department made

report, the Treasury indicates that
outstanding public debt obligations

Other transactions initiated off the floor—

.

34,354

The following table shows the face amount of obligations out¬
standing and the face amount which can still be issued under this

34,354

limitation:
23,759

Total sales.
♦The term

firms

and

tin

"members"

their

includes

these

only

Exchange volume includes
JRound-lot

rules

are

short

included

§Sales marked

sales

with

their

special partners.
percentages the total of members'

compared with twice the total round-lot volume on
the

associate Exchange members,

including

partners,

calculating

all regular and

which

sales.
exempted

are

purchases and sales is
the Exchange for the reason that

from restriction by the

Total face

are

amount that may be

Outstanding

of April 30,

as

(maturity value)—

Depositary

_

A 40,203,995,500

fruits and vegetables
together with lower ceiling prices for heavy hogs were largely re¬
sponsible for a decline of 0.1% in commodity prices in primary
markets during the week ended May 13, according to the advices
May 18 from the U. S. Department of Labor, which states that the
decrease brought the Bureau of Labor Statistics' all-commodity index
to 103.6% of the 1926 average. It was 0.2% lower than at the same
time last month and in mid-May of last year, says the Department,
which further reports:
in

prices

for

fresh

Foods—Average prices for farm products
dropped 0.7% during the week, led by a decline of more than 1% in
the livestock and poultry markets. Heavy hogs fell 7% when OP A
lowered ceiling prices on heavy weights 75 cents a hundred pounds.
Light hogs declined fractionally and lower prices were also reported
for sheep and for live poultry in the Chicago market. Favorable crop
reports were reflected in the grain markets with rye down nearly
2% and wheat off slightly. In addition, quotations were lower for
eggs, oranges and onions. White potatoes in the Boston and Chicago
markets declined but were substantially higher at New York. Cotton
advanced seasonally.
Average prices for farm products are 1.7%
Farm

Products

and




of

uted

13,149,652,000

only to persons who have proved
and filed claims against the bank

'

coupons

unmatured
interest

representing

interest.

Holders

of

which matured
prior to May 1, 1936, will not par¬
ticipate in this dividend as to such
coupons inasmuch as such coupons
are
payable from a special trust
fund on deposit with The United
coupons

National

Bank

of

Port¬

increased its capital on May
$700,000 to $1,000,000, ac¬
cording to announcement by John
B.
Glenn,
President.
This in¬

344,531,525

crease

196,403,588

—_

191,528,560,009

RECONCILEMENT WITH DAILY STATEMENT
APRIL

30,

$18,471,439,991

OF THE UNITED STATES

1944

..

..

.

TREASURY

.>

Total face amount of outstanding public debt

obligations Issued under
authority of the Second Liberty Bond Act-.
unearned

discount on Savings Bonds (difference
value and maturity value)
;

current redemption

between
L™;

$191,528,560,009
7,707,240,501
$183,821,319,508

public

debt

obligations outstanding

but

--

not subject to the statutory limitation:
Interest-bearing (pre-war, etc,)
:
—
Matured obligations on which interest has ceased
Bearing no interest
r

______

__

$195,926,860
7,692,050
941,975,259
1,145,594,169

debt outstanding as of April 30,

1944-;

$184,966,913,677

♦Approximate maturity value.
Principal amount (current redemption
public debt statement $32,496,754,999.

cording to preliminary

capitalization, Mr. Glenn

was

the

260,207,402

obligations issuable under above, authority

in

made in order to bring
capital structure in more fav¬
orable relationship to the large
volume of deposits, and to handle
a growing volume of business. The
capital stock of the bank, having a
par value of $25 per share, will be
increased from 28,000 shares to
40,000 shares. Sales price of the
new
stock is $35 per share, 0$
which $25 will represent the par
said,

63,803,814

■

amount of

Capital of

18 from

:

profits tax refund bonds

Total gross

and/or in¬
said

based upon such bonds
terest

pany

$190,923,821,082

Bearing no interest:U. S. savings stamps

other

the

assets of the bank and is

The Pan American Trust Com¬

30,707,798,000

Matured obligations on which interest has ceased

Add

proceeds derived
liquidation of pledged
payable

out of the

from

$33,150,504,625
indebtedness

1

Deduct,

,

Pan American Trust Co.

77,007,954,625

Face

announced on May 10

"This dividend is being distrib¬

718,276,657

Treasury bills (maturity value)

Excess

was

nouncement also says:

$113,915,866,457
Certificates

declines

1944, it

by George B. Guthrie, Receiver of
the Bank on May 10.
His an¬

Increase in

467,626,750

——

Adjusted service

included with "other sales."

April 30, 1936, has been declared
of the close of business May 25,

as

$72,525,967,550

Treasury

"Savings

gon, and unmatured interest ac¬
crued thereon up to and including

land (Oregon).

Treasury notes

Seasonal

10% of the out¬
principal of farn# loan
bonds
issued
by
the
OregonWashington Joint Stock Land
Bank of Portland, Portland, Ore¬

States

Bonds—

Commission's

Wholesale Commodity Index Declines 0.1%
In Week Ended May 13 Labor Dept. Reports

$210,000,000,000

outstanding at any one time

1944:

Inter-bearing:

"other sales."

"short exempt"

Dividend

standing

Apr. 30, 1944, totaled $191,528,560,009, thus leaving the face amount
of obligations which may be issued, subject to the $210,000,000,000
statutory debt limitation at $18,471,439,991. In another table in the

8.04

10,980

Total sales.

C.

*

1,675

tOther sales—

10%

designated
Number
8, in an

dividend

further

A

0.1

showing the face amount of public debt obligations issued
under the Second Liberty Bond Act (as amended), outstanding on

17,800
;

Land Bank Dividend

0.2

report

Other transactions initiated on the floor—
Short sales—.

,

The

3,825

62,655

Total sales

3.

————,

Other foods

Statutory Debt Limitation As Of Apr. 30* IS44

t

tOther sales

Total

Meats

0.2

amount equal to

60,290

—

Short sales

2.

———_

——

as

they are registered—
.

-

products

1-.™.

779,605

Round-Lot Transactions for

,

farm

■

Grains

1.8
1.1
0.6

788,150

Total sales
1.

and

vegetablesLivestock and poultry.

8,545

JOther sales™-—.——

B.

Fruits

Total for Week

A. Total Round-Lot Sales:
Short sales-

Ore.-Wash. Joint Stock

Decreases.

1944

29,

0.1

Agricultural implements

0.2

(Shares)

Members"'

APRIL

ENDED

"

Increases

paint materials-

and

Paint

Exchange and Stock

Curb

New York

the

on

for

WEEK

X,

14.70

468,979

Total sales

re¬

ported with "other sales."
tSales to offset customers' odd-lot orders,

*Preliminary.

6,

391,273
$14,141,217

'; Number of Shares:

0.6

*99.5

PERCENTAGE CHANGES IN SUBGROUP

,-

———

Round-Lot Sales by Dealers—

0.8

'101.0

MAY

value

Dollar

sales.

total

Customers'

0.1

than

407,499

tOther sales.

15.642

5.2

106.0

farm products and foods

476,597
61,480

—

sales—

total

Customers'
■

4.2

—

*99.5
other

234
15,408

..

Number of Shares:

0.7

*103.8

products

commodities

All

2,75

96,299

Total sales

Total

—

than

other

commodities

All

Total—

4.

other sales—-

short sales

Customers'

5.1

*101.0

Manufactured products

87,549

——

15,023
405,627
$18,077,193

2.6

115.0

115.0
105.4
106.0

.*.—

Raw materials—

8,750

sales-|

—

93l3
93.3
*112.8 *113.3
93.5
93.5

Housefurnishing goods
Miscellaneous commodities

—

2.7

0

0

.

—

*83.7

lighting materials

Building materials
Chemicals and allied products

12,500

tOther sales

sales-'

shares

0.2

*103.8

261,320

Total sales

Total

of

value

♦Customers'
—

*83.6

Other transactions initiated on the floor—
Total

orders_«._.

Customers'

+

fOther sales—

2.

of

Number

1943

1944

*123.3

269,740
40,230

.

,

Total'
for Week

(Customers' purchases)

they are registered—
Total purchases
Short sales

'

1944

Odd-Lot Sales by Dealers

5-15

4-15

5-6

5-15

4-15-

*103.7

1944

Commodity Groups—
All commodities

-

TRANSACTIONS FOR THE ODDLOT ACCOUNT OF ODD-LOT DEALERS
AND SPECIALISTS ON THE N. Y.
y
STOCK EXCHANGE

STOCK

Percentage change to
May 13, 1944 from—

3,216,380

Total sales

Round-Lot Transactions

May 13 a summary for the week
ended May 6 of complete figures

Odd-Lot Purchases by Dealers—

(1926=100)
B.

Securities and Exchange
Commission
made public on
The-

ENDED MAY 13, 1944

PRICES FOR WEEK

WHOLESALE

Trading

NYSE Odd-Lot

Dollar

3,107,420

;

;

25, 1944

Thursday, May

CHRONICLE

THE COMMERCIAL & FINANCIAL

2182

value)

ac¬

value, increasing the capital by
$300,000, and $10 will be allocated
to surplus, increasing this account
to the extent of $120,000. Deposits
as
of May 18, 1944, aggregated
$12,526,738; surplus amounted to
$280,000; undivided profits were
$47,800 and total capital funds are
shown as $1,327,800,

h

I

Volume 159

Number 4284

THE COMMERCIAL & FINANCIAL
CHRONICLE

2183

'

•

Revenue Freight Oar Loadings During Week
Ended May 13, ! §44 Increased 31,331 Gars
Loading of revenue freight for the week ended May 13, 1944,
'totaled 868,309 cars, the Association of American Railroads announced
May 18. This was an increase above the corresponding week of
1943 of 19,277 cars, or 2.3%, and an increase above the same week in
1942 of 29,255 cars or 3.5%,
1

on

Loading of revenue freight for the week of May 13, increased
31,331 cars, or 3.7% above the preceding week.

above the

corresponding week in 1943.

Loading

of

merchandise

less

s

than

carload

;

freight totaled
106,451 cars, an increase of 105 cars above the preceding
week, and
§in increase of 9,967 cars above the corresponding week in 1943,

•

.

Coal

loading amounted to 179,133 cars, an increase of 7,027 cars
;above the preceding week, and an increase of
2,901 cars above the
i
corresponding week in 1943.
(

J

cars, an

increase

15,709 cars, a decrease of 148
week, but an increase of 1,245 cars above

•cars

•the

corresponding week in 1943. In the Western Districts alone load¬
ing of live stock for the week of May 13 totaled
11,955 cars, a de¬
crease of 198 cars below the
preceding week, but an increase of 1,406
-cars above the
corresponding week in 1943.
Forest products loadings totaled
47,212 cars, an increase of 3,555
cars above the
preceding week and an increase of 3,521 cars above the
corresponding week in 1943.

f

Ore loading amounted to
79,552 cars, an increase of 10,469 cars
week and an increase of 2,667 cars above the
corresponding week in 1943.
above

loading amounted to

15,006 cars,

the

preceding week, and
corresponding week in 1943.

increase of 599

an

increase of

an

578

cars

above

the

reported increases compared with the
corresponding
in 1943 except the
Eastern, and Pocahontas. All districts re¬
ported decreases compared with 1942, except the
Eastern, Allegheny,
'Southern, Centralwestern and Southwestern.
1944

5

Weeks

rA ' .weeks
4

weeks

5

,

weeks

Week

of

January—
of
February.—

of
of

of

:Week'of

1942

-

corresponding week
REVENUE

FREIGHT

V

j

a year

206

132

121

200

,647

2,747

1,850

1,483

,■■■.

'

"■

.

..'V'

District—
'Ann Arbor,—,

4,322

4,463

19,081

Macon, Dublin & Savannah,-—,—

11,540

156

206

164

Mississippi Central

259

228

156

3,242

Nashville, Chattanooga & St. L

1,671

381

357

314

Richmond, Fred. & Potomac

1,163

427

410

535

1,109
11,310

Seaboard Air Line
Southern

——

11,063

11,320

.

22,353

23,680

542

678

865

■"■'4 ■ 753

157

128

92

1,006

897

127,519

,

Chicago & North Western

122,344

125,710

127,107

119,774

19,617

—

Chicago Great Western
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha

2,832

10,637

3,219

3,195

3,333

3,901

3,488

23,067

25,234

157

193

852

889

1,561

503

473

10,426

11,917

8,918
412
.

379

543

22,538

6,479

461

539

985

3,523

45

Ishpeming

450

Minneapolis & St. Louis,
Minn., St. Paul & S. S. M.—.

1,779

443

1,886

1,946

2,415

6,697

6,671

4,446

10,633

9,609

10,204

6,116

14,591

2,277

1,903

43

24

141

151

147

731

5,703
681

3,030

2,033

2,561

3,000

;3,034

131,081

122,177

131,521

69,499

63,468

Spokane International

Total

——

23,238

20,796

21,213

12,816

2,718

2,905

3,278

45

69

460

592

734

Chicago, Burlington & Quincy
Chicago & Illinois Midland

101

104

18,409

18,040

14,628

13,185

11,141

3,294

3,017

Chicago, Rock Island & Pacific,,
Chicago & Eastern Illinois

2,763

846

11,502

11,633

10,581

13,063

11,997

2,751

115

289

1,976

New York, Ontario &

Western,——.
Chicago & St. Louis
Susquehanna & Western,Pittsburgh & Lake Erie,,
Rere Marquette

3,463

8,697

246

3,599

2,166

1,726

8,770

9,123

16,905

2,078

2,098

3,282

6,569

2,520

6,041
2,427

56,797

46,680

9,728

9,912

—

1

.

WheelinF&~LakeErie"—'—11

16

1,019

'

923

306

868

1,379

Allegheny District—

5,299

.

8,145

7,208

20

17
?

231

.

—,—

2,649

2,246
412

ernment

2,089

2,004

131

118

1,140

1,086

767

701

and other accounts resulted
in net
sales of

.:

18

0

0

28,650

15,564

13,515

332

286

1,986

1,803

14,327

.

1

30,798

12,429

11,912

18,411

556

531

2,132

1,843

16,857

6

2,155

—

1,278

910

12,368

13,307

*

6,397

5,202.

4,266

4,998

169,042

161,432

239,449

233,589

46,714

43,404

4,548

117,657

110,162

y.

:

Cambria & Indiana,,—

.

1,658

Central R. R. of New Jersey
Cornwall-^——————

.

Cumberland & Pennsylvania—
Ligonier Valley—,—
Long Island
:
Penn-Reading Seashore Lines——
Pennsylvania System..

461

302

7,553
(

28,894

7,242
v

1,261

41.035

;■

,

1,962

96,009

*4

239

2,731

2,322

April

2,862

4,176

176

218

1,126

3,873
591

■June

6,917

4,843

5,537

2,777

2,502

3,348

4,218

300

263

696

361

—*

193

86

176

433

Missouri-Kansas-Texas Lines.

6,491

5,771

4,603

13,969

15,445

15,436

Missouri Pacific

._

'

Quanah Acme & Pacific

62

3,279

i:

52

1,031
I-.,

August—;

sales

or

purchases

5,579

December

No

sales

or

purchases

19,841

114

No

20,010

429

8,505

9,454

8,320

2,929

8,410

7,937

13.453

14,564

9,823

5,220

5,178

4,735

4,492

7,869

7,326

98

148

70

43

15

32

31

24

.v.;

72,861

70,615

'

64,660

72,522

7

21,959

Total

week's figure.

The

members

industry, and its

of

this

Association

represent

83%

of

the

;■

Period

Received

1944—Weel: Ended

6

Feb.

36

Orders

Production




-'.Vy '7:''-■'V.'';';7

,

Percent of Activity

Remaining

Tons

(

Tons

5

185,069

151,102

Current Cumulative

628,048

97

93

97

94

94

154,797

151,870

630,449

130,252

148,533

609,429

3,691

151,980

139,044

621,875

93

1,659

1,537

2,679

2,901

March" ;/4

83,998

85,373

178,375
152,627

146,926.

650,606

95

94

144,761

655,682

95

94

136,105
125,806

150,940

639,537

95

94

147,604

613,978

97

b

68,284

March

15,831

11,^_______^____

14,887

28,966

28,812

March

18

21,288

21,210

8,477

'7,148

March

25__________.

4,266

4,073

13,202

12,913

188,926

187,679

7,454:

13,936
.7,649

5,017

4,581

2,133

2,052

55,571

58,271

57,890

23,906

23,637

16,511,300 sold

e r

—

April

8___

April

_

1-JL

April

—

15_
22

29—__—

May

6

May

13

133,724
179,056

141,959

145,936

^

143,883

"

144,422

607,537
•

-

Trade

635,727
636,176

92

-

-

■

■

_

_

158,871

610,555

98

94

147,768

156,041

601,880

98

95

158,534

628,495

98

95

144,921

150,435

620,728

95

95

ments of unfilled orders.

National
were

re¬

Lumber

2.3%

be¬

production
for
the
week
May 13, 1944. In the same

were

new

orders

0.7%

of

these

below

mills

production.

Unfilled order files of the
report¬
ing mills amounted to 123.0% of
stocks.

mills,

For

reporting

unfilled orders

softwood

are

equiv¬

alent to 41 days' production at the
current rate, and gross stocks are

equivalent to 31 days' production.
For the

ceeded

Notes—Unfilled orders of the prior week, plus orders
received, less production, do
necessarily equal the unfilled orders at the close.
Compensation for delinquent
reports, orders made for or filled from stock, and other items made
necessary adjust¬

not

the

.

Of

186,666

;

to

Barometer

94
94

Association,

shipments of 508 mills

porting

94

93
94

138,712

—

May 13, 1944

Manufacturers

lumber

94

68,858

15,250

.'•< 19,954

14,310

—^ 105,100,000 sold

94

96

12

178,250

—

.,•.>■

$9,924,000 sold

i

week

Orders

Tons

19

23,460

sold

11,500.000 sold

ended

26_.

29,849

purchases

or

——A-

low

PRODUCTION, MILL ACTIVITY
Unfilled

—

23

■178,739

sales

4,800,000 purchased

—

Ended

tfce orders and production, and also a figure which indi¬
cates the activity of the mill based on the time
operated.
These
figures are advanced to equal 100%, so that they represent the total
industry.
1/-;.
v*'

Feb.

23,256

—

According to the National Lum-

member of

Feb.

29,998 *

2,651,600 sold
$5,000,000

Lumber Movement—-Week

total

32

21,688

15,800,000 sold
No

—————

April

program includes a statement each week from each

3,741

29,386

—---—

March

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

Feb.

•

4,497
-

August

We give herewith latest figures received
by us from th$ National

144

•

67,757,200 sold

September

December

701

■

35,200,000 sold

145.768,000 sold
——

November

140

328

sold

400,000 purchased

May

Weekly Statistics Of Paperboard Industry

April

—

72,927,750 sold

1944

April

Virginian

90,300,000

April

revised.

1,146

—

$14,500,000 sold

March

October

74

■

Pocahontas District—

Norfolk-& Western,*

January

February

68,463

1,279

.

1,000,800 sold

1943—

172

7,454

29,110

'■

20,559
69

4,500.000 sold

November

July

♦Previous

8,446,000 sold

————_

204

*■

31

195,087

Chesapeake & OhiO-i——

16,625 purchased

250,000 sold
2,295,000 sold

October

105

year's figures

$300,000 purchased

■

—_

September

3,288

Weatherford M. W. & N. W.__

„

.

————_

242

87,678
.

_
———,-

■

1,196

|

55.5

4,676

Texas & Pacific

Note—Previous

ohows

5,003

676

8,846

_.

1942—

2,742

2,925

336
'.

3,101

4,288

(Pittsburgh)

following"tabulation

Treasury's
transactions
in
Government securities for the last

5,334

1,752

—„——

Union

$11,500,000.
The

the

1,814

150

Reading Co.————

of

6,327

Midland Valley.
Missouri & Arkansas

Secretary

two years:

1,309

8

7,494

-■;; 701

■

■■':

$16,511,300,

2,632

4

1,960
-

650

Treasury investment

announced
on
May
In March there were
net sales

15.

3,554

104,426

for

Morgenthau

7,544

2,000

290

.

1,860

7,380
219

i—.r

3

,v

guaranteed securities of the Gov¬

202

•

STATISTICAL REPORTS—ORDERS,
704

5,832

♦348

the
month
of
April,
market transactions in direct and

2,153

5

—

April

During

441

3,688

389

V 5,254

7,246

Buffalo Creek & Gauley

Diesel.

391

123,704

;

Baltimore & Ohio

213, of
steam, 9 electric

were

In Govts. For

160

289

5,834

Bessemer & Lake Erie,——

160

44

Market Transactions

1,105

2,649

318

758

steam,

one electric and 195 Diesel.
Loco¬
motives installed in the first four
months of 1943 totaled

243

15,712

5,524

710

They also put 336 locomotives
in service in the first four
months
of 1944, of which 140 were

1,915

332

Total

•

162,486

Akron, Canton & Youngstown——

service in the first four months of
1943 was 6,260 freight cars.

1,744

'

.'yV:.';"::.-A%k"'

r

Diesel

1,894

1,048

541

2,489

1,181

490

6,059 hopper, 524 gon¬
dola, 718 flat, 383 automobile box,
2,265 plain box, and 113 refriger¬
ator freight cars. Total
placed in

January

9,582

1,251

and

included

February

8,824
-

on
May 1,
including
394

The Class I railroads
put 10,062
new freight cars in service in
the
first four months this year. These

55

8,575

424

two

locomo¬

order

9 electric
locomotives.

19,105

2,163

770

893,

20,547
3,830

391

*

was

steam,

Diesel

363

15,933

932

293

1943,
steam,

53,677

4,945

4,778

228

475
on

32

7,651

"

and

Total

56,703

„

*

418

V

.

included

electric
tives.

1,333

1,682

31,604

.

Western Pacific

2,286

*

Total

21

937

,

Southern Pacific (Pacific)
Toledo, Peoria & Western

14,733

403

—

*

564

1,707

5,389

——

720

1,865

.

8,189

1,100

624

>

6,481

2,778
1

7,636

7,097

490

7,707

——,—

Pittsburg & Shawmut
Pittsburg, Shawmut & North,——.
Pittsburgh & West Virginia,,

1,283 ";

6,604
'

6,328

832

2,766

219

——

2,994

19,638

2,087

.1,263
:■

•

1,497

2,541
17,138

14,933

3,938

128

1,183

315 V

v".

which

locomo-*
May 1 this year,

on

2,255

3,641

833

Texas & New Orleans

11,958

275

10,424

New York,

5,971

2,685

2.158

j

12,987

7,991

2,813

N. Y.,

6,640

784

730

St. Louis Southwestern

48,845

Hartford—

2,420

789

'

2,498

"

J,—

2,581

3,880

'

Denver & Salt Lake

11,868

6,631

;

*

688

—

Colorado & Southern
Denver & Rio Grande Western

2,117

405

order

on

735

13,743

1,802

The roads also had 705

tives

3,887

Bingham & Garfield

1,003

7,620

order,
total of

on

12,060

3,165

flat, 18,207
3,125 automobile

cars,

last, they had 36,727 cars
on
May 1, 1943, a
34,262.

and

Atch., Top. & Santa Fe System

May

hopper,

and

which
Central Western District—

6,820

9,344

—

-'.s

347

14,94?

181

,

Rutland,—

1,555

6,117

2,156

New York Central Lines,,

tlToHo oft

—

1,345

2,205

Monongahela

2,271
2,878

:

box

on

797

cars, 1,137 refrigerator, and
500 stock freight cars.
On, April 1,

45,

2,084

Louisiana & Arkansas-

1,510

13,350

Maine Central

784

.

gondolas,

box

254

6,228

333

■

2,073

101

6,151

,

6,935

.

.

1943

1,443

928

3,810

Lehigh & New England
Lehigh Valley

Montour

1944

232

1,738

Grand Trunk Western

f->

1,944

Northern Pacific

11,315

80

21,676

431

1,026

Lehigh & Hudson River

N. Y., N. II. &

1942

4,905
plain

International-Great Northern

Connections

13,653

Erie

8,519

■

21,933

—

—

Burlington-Rock Island

•

7,899

—

12,882

3,583
11,363

Received from

1943

ican Railroads announced
20. This included
15,787

Gulf Coast Lines—

CONNECTIONS

254

Detroit, Toledo & Ironton
Detroit (fc^Toledo Shore Line

13,781

2,396

18,508

26,906

Dodge, Des Moines & South

Lake Superior &

21,391

2,721

19,249

Elgin, Joliet & Eastern
Ft.

Great Northern

19,572

2,705

21,321

.

Duluth, Missabe & Iron Range
Duluth, South Shore & Atlantic

6,490

Detroit & Mackinac

7,634

23,690

Northwestern District—

1,064
& Western

9,345

26,221

'

777

———

Winston-Salem Southbound

6,072

Delaware & Hudson,.:

11,527

11,553

23,799

—

System

Southwestern District—
FROM

The Class I

railroads on May 1,
1944, had 44,458 new freight cars
on
order, the Association of Amer¬

4,913

1,693

15,251,532

32

Delaware, Lackawanna

512

4,621

1,530

Peoria & Pekin Union,:

1,282

Central Vermont

630

:

3,702

1,170

..

North Western Pacific

7,625

Central Indiana—

947

3,252

—

.

839,054

2G5

Maine——,,——
Chicago, Indianapolis & Louisville-

1,002

986

Norfolk Southern

839,286

1,352

Boston &

V

Piedmont Northern,,

849,032

1944

v

Bangor & Aroostook——

597

13,014'

816,538

freight carloadings for

v

81

2,999
Vv,v

19,935

Nevada Northern

Freight Loaded

-'

785

27,182

Total Loads
••"-■>

182

2,773

376

1,909

27,236

4,209,907

Total Revenue
'.*• ''

38

1,088

369

144

623

.4,035

3,924,981

(NUMBER OF CARS) WEEK ENDED MAY 13

Eastern

46

1,115

2,892
•

3,676

Missouri-Illinois

16,044,449

3,193,

1,105

Fort Worth & Denver
City
Illinois Terminal

'\'

.

26,687

3,174,781

RECEIVED

Railroads
*

,>«.1,85H

326

26,202

3,122,942

ago.

AND

1,836

349

1,761

330

4,345

3,858,479

summary of the

LOADED

4,674

523

—

3,073,445

the separate railroads and systems for the week
ended May 13, 1944.
.During the period 74 roads showed increases when
compared with
the

5,413

30,049

15,865,036

a

3,783

1,634

Freight Gars On
May. I Increased

Order

2,799

26,393

868,303

The following table is

4,i44

223

Union Pacific System

;

,

1,285
11,133

.

1,790

Illinois Central System

3,531,811

May 13——
—

10,082

743

37

836,978

V" Total

' 2,964
1,720

—

3,055,725

6

818

13,122

457

Georgia———
Georgia & Florida
Gulf, Mobile & Ohio—

3,135,155

4,068,625

•

260

803

1,978

3,796,477
3,159,492

!

March

April

May

1943

678

479

""*"466

—

.

week

399

New

1943

13,021

4,047*

Columbus & Greenville—
Durham & Southern

cars

All districts

1944

837

———

Central of Georgia
Charleston & Western Carolina
Clinchfield

1942

'282

924

—

above the preceding
Coke

1943

13,127

Atlanta, Birmingham & Coast—,—.
Atlantic Coast Line

alone,

Live stock loading amounted to
below the preceding

Connections

362

Atl. & W. P.—W. R. R. of Ala,

*of 1,623 cars above the
preceding week but a decrease of 3,201 cars
below the corresponding week in 1943. In the Western Districts

grain and grain products loading for the week of
May 13, totaled
24,656 cars, an increase of 1,736 cars above the preceding week but a
decrease of 3,541 cars below the
corresponding week in 1943.

Received from

1944

Alabama, Tennessee & Northern—,—,.

Tennessee Central—.

Grain and grain products loading totaled 40,011

'

,<

Total Revenue

Louisville &. Nashville—

lot

•

Freight Loaded

Gainesville Midland

Miscellaneous freight loading totaled 385,235 cars, an increase of
-8,101 cars above the preceding week, and an increase of 1,599 cars

1

Total Loads

Railroads
Southern District-

Florida East Coast,

>

'

year-to-date, shipments

reporting

ders by

identical
production, by
13.2%.

mills

ex¬

7.8%;

or¬

••

Compared to the average
responding week of 1935-39,
duction
of reporting
mills
32.6%
greater; shipments
31.4% greater; and orders
33.3% greater.

cor¬

pro¬
was
were
were

"The First National

Companies

Items About Banks, Tiust
Percy H. Johnston, Chairman of
the Chemical Bank & Trust Co. of

H. Zweeres,
of East Side, will be the
Joseph

Chairman.
President

New York, at the meeting

President of the combined banks,

board of

with

nounced

of the
directors on May 18 an¬
the appointment of WilTrust Officer in

lard R. Brown

as

the

trust

personal

Mr. Brown is

University,

State

in 1934.
Attended Columbia University Law
B.

graduating
'

native of Utah and

a

the

attended

department.

A.

School, from which he received
his L.L.B. degree in 1937 and was
admitted to the New York Bar in
1938.
He has been admitted to

practice before the U. S. Treasury

the U. S. Tax
Court.
He received practical ex¬
perience in trust administration
and

Department

with the New York Trust Co., and
been associated with the law

has

Sterling

&

Shearman

of

firm

since 1941.

President of
The Public National Bank & Trust
Co. of New York, announced that
at a meeting of the board of direc¬
tors on May 18 James J. Farrelly
was promoted from Chief Clerk to
Assistant
Cashier
at
the main
E. Chester Gersten,

office.
V

.■

N.

Richard

Assistant

Cotter,

Secretary of Manufacturers Trust

Avenue), began his 65th year
service with the

continuous

May 17.
started his banking
bank

with

established in
the first
New York City to apply

which

1864,

was

which

and

bank in

career

was

The first

National charter.

a

Cotter
in 1880

Fifth -National

former

the

Bank,

for

Mr.

on

the

of

location

bank

was

at 366

26th Street,
and this building contained space
not only for banking quarters, but
also for living quarters, because it
was
the general custom at that

Third

Avenue,

near

Hamilton C.

tive Vice-President.

Griswold, Philip O. Williams and
Alexander G. Hay, all officers of
the East Side, will

continue their

branch."

positions at the East Side

Service,

and

part of their salaries.
The
Fifth
National

Bank

It is

inter¬

esting to note that Mr. Cotter has
with

the

throughout

his

office

same

entire

banking

He is

ate School of Law.

a mem¬

York Bar.

ber of the New

of

the

capitalization

in

change

of

the First National Bank & Trust
Co. of New Haven, Conn.,
for

from

canital

stock

in

increase

an

the

calling

common

$1,260,000

to

$2,205,000, and the retirement of
all the preferred stock will be
acted upon by the stockholders at
a special meeting on May 27.
An
increase in the common dividend
annual basis to a $2.50
basis also is contemplated as part

from $1.50

President Dwight

of this program,

East

ac¬

advices in the local
in which it was also

to

proposed to offer at $53 a
18,900 additional common

share

shares, $50 par value, first to

present

common

Transfer¬
evidencing these

each four shares held.

warrants

sent

be

will

rights

of

stockholders

,

to

record

common

27,

May

1944, and will expire June 6, 1944.

stock to

preferred stockholders of
on a pro rata basis.
rights
will
expire

latter

his

"In

letter

Chamberlain

that

pected

the

to

stockholders

states it is ex¬

offering

of

ad¬

ditional shares will be underwrit¬

by

a

group

Connecticut

of

ings Bank, will become effective
June
1, Presidents of the two

investment bankers.

banks

entire

May 18, it
Rochester
which also had
on

the

"Times-Union,"
the following to say:
"State Banking Department ap¬
proval has been given the merger,
proposed by the trustees of the
"The

a

of

names

"Notice of the retirement of the

of

9,200

shares

of

redemption price of $125 a share,
plus accrued dividends, is ex¬
pected to be given on or about
June 22, 1944, and the actual re¬
tirement is scheduled for Aug. 1.
"Consummation of this program

month ago.

the two

issue

convertible preferred stock, at the

banks,

would return the bank to the tra¬

familiar to Rochester for 75 years

ditional

and longer, will remain to iden¬

tion,

form of bank capitaliza¬

tify two of the Community Sav¬
ings
Bank's downtown offices.

single class of shares with
no
preferences.
In recent years
the bank has been moving in this

The office at Main Street East and

direction,

Clinton Avenue South, headquar¬
ters
of
the
East
Side
Savings

inclusive, the entire issue of $630,-

Bank, will become known
East

Side

Bank,

at

known

as

as

the

office; the Mechanics
21 Exchange, will be
the

Mechanics

office.

The third office, in the Rochester
Gas & Electric Building in East

Avenue,

will

be

called

the East

Avenue office.

"Sol Heumarin, present Chair¬
man
of the executive committee

of

the

East

Side

Savings Bank,

a

prior preferred stock was re¬
tired
at par in r several instal¬
ments.
As the prior preferred
stock was retired, the common
stock
was
increased
in corre¬

sponding

44,100

shares

Mechanics

ers.

Vice-

William Bausch, hon¬

Chairman of the East Side
board, will continue in that office.
orary

"Arthur A. Barry, now Chair¬
of ih* Fast Side board of

man

trustees, will be honorary Vice-




through

the

"'Upon the completion of the
proposed changes,' Mr. Chamber¬
lain states, 'the capitalization of
the bank will consist solely of

of

Chairman.

and Luaura Falk Foundation of

pointing out that "this is no time

celebrations," the

says:

deepest hope that, before our
centenary rolls around, next year,
we
shall hail that day of . days

Pittsburgh.
Membership of the

,

Magill, chairman; Fred
R. Fairchild, Knox Professor of
Economics,„Yale University; Row¬
land R. Hughes, Comptroller Na¬
City
H.

Victor

American

of

Bank

York;

New

Stempf,

President,

Institute

Accoun¬

of

Thomas

Tarleau,
Member of New York Bar, re¬
cently Tax Legislative Counsel,
the Treasury Department.
The

•

will

staff

research

headed

be

Harley L. Lutz, Pro¬

by

fessor of Public Finance at Prince¬
ton

University.
into

comes

direct result of
some

Dr.

a

being

Com¬
as

the

conference held

weeks ago presided over by

Henry M. Wriston, President

of Brown

University, and attended
by a score or more of the nation's
The Board of Governors of the
leading economists. That meeting
Federal Reserve System announce
unanimously
approved
a
fourthat the East Side Trust & Savings
point resolution urging the im¬
Bank
of
Chicago, 111., a State
portance of a program:
member
bank, has changed its
1.
To develop a simple, pro¬
title to South Side Bank & Trust
Co., effective May 17.
The bank
changed its location from

also

Ewing Avenue to 47th Street and
Cottage Grove Avenue.

"Journal of
Commerce" of
May 17 it was
stated that Carl L. Jernberg has
the

In

Chicago

ductive and equitable tax

system

having in mind primarily the Fed-

"

will

be

other

and

directors

will

include

Howard F. Knox, loan and mort¬

the Heitman
Trust
Co.; Edward V. Trainor,
automotive
parts
manufacturer,
and Herbert J. Nickelson, insur¬
manager

gage

of

broker.

ance

the

of

common

stock,

much larger portion
bank's earnings may be
a

authorized

the

of the bank from

common

stock

$1,000,000, con¬

sisting of 200,000 shares of $5 par
value, to $2,000,000, consisting of
400,000 shares of $5 par value.
This proposal was approved by
shareholders at a special meeting

April 27, 1944.'

on

and

the

un¬

Shareholders

1944.

of

record

on

April 27, 1944, were offered rights
to. subscribe pro rata to the re¬
Plans
to increase
the capital maining 100,000 shares of addi¬
stock
of
the
Uptown National tional common stock at the price
Bank of Chicago from $300,000 to of $10 per share, in the ratio of

divided profits

of $100,000."

share

for

each

three

after

the

issue

of the

$-300,000 through the sale of 12,000
shares at $35 a share (par $25) to
the bank's stockholders, in the

dividend.

President,

balance

cago

for

one

held

shares

stock

rights
ratio of one new share for each expire May 15, 1944.
The stock
share held, were announced on to be offered by the purchasing
May 15 by H. F. Wuehrmann, investment houses represents the
according to the Chi¬
"Tribune," which added:

"The

directors

have

called

a

The subscription

of

shares not subscribed

by shareholders."

'

It is also stated that "since

of

the

issued

after

favorable

action

by

tors to continue the

of $1.25 per

dend rate of $2 a share a year oh

the

Governors of the Federal Reserve

common

sharehold¬

share on the common
stock, thus placing the stock on a
$2.50 annual dividend basis.'

of

the

stockholders

and

the

Con¬

troller of the Currency.

"It is the intention of the direc¬

increased

mann

said.

stock,

present divi¬
Mr.

Wuehr¬

Since June, 1940, Up-

on

economic

nation's

the

and vitality

the vigor

system".

Magill, • in outlining the
purpose
and scope of the new
Committee's activities, said:
';
Mr.

:
"Many groups today realize the
importance of re-designing the
Federal tax structure so that it

adequately meet the un¬

can more

precedented fiscal problems which
will

the government

confront

on

The Baruchemphasized the
importance ; of shaving new rev¬
enue bills ready for prompt action
by Congress; an interdepartmental
committee
is
already at work
drafting the outline of such a
measure.
In addition, of course,
the problem is being studied by
the return of peace.

Hancock

report

industrial organizations

business research

and

bodies.

the

will have

Committee

practical experience
of its
members, some of whom
have had long association with the
Treasury in connection with tax
matters.
Others ^re
recognized
authorities
dealt

have

The Tracy Loan

Salt

Lake

System.

City,

■

7

in

public finance or
in practice with the

complexities of taxation.

'

,

"The Committee will undertake

to outline tax

policies and to sug¬

gest revenue proposals which will
be appropriate to the post-war
fiscal needs of both Federal and
Governments."

State

Mr.

:

;

■

recognize,"
"that while

is important to

"It

added,
obligations will rest
upon the Federal Government at
the conclusion of hostilities, such
Magill
new

many

obligations must not be permitted
independ¬

to undermine the fiscal

of

ence

mental

local

and

state

agencies, which

mental

to

govern¬

are

funda¬

nation's 'liberty.

the

Committee activities will end with

publication of its recommen¬

dations."'

..

.

June 14

/

Flag Day
June

Proclaiming

14

as

Flag

Day, President Roosevelt on May
4 urged that the day be observed
"as

day of earnest rededication

a

to those

high principles of human¬
civilization which con¬

and

ity

stitute the foundations of the Re¬

public.". 7:
The

'•

•

also

President

urged that
"we
display our flag proudly,
knowing that it symbolizes the
strong and constructive ideals—
the

democratic ideals."

"Let

us,"

he added, "display our flag, and
the flags of all the United Na¬
tions which fight beside us, to

symbolize our joint brotherhood,
our
joint dedication, under God,
to the cause
of unity and the
freedom of men."

1940

growth has been es¬
ers for June 12 to vote on the pro¬
pecially rapid, the bank's deposits
posal.
Of the proceeds, amount¬ having expanded from $45,995,ing to $420,000, $300,000 will be 510.93 on Dec. 31, 1940, to $123,added to the bank's capital and 813,151.26 on April 13, 1944—an
the remainder to surplus account. increase of 169%."
The subscription warrants will be
special meeting of the stockhold¬

end

laration, at a meeting soon to be
held, of a semi-annual dividend

are

to

Accordingly, the directors
presently considering the dec¬

the tax burden and the effects of
taxation

determina¬

"Initially the bank will have tion of the board of directors of
capitalization and resources iden¬ the terms and conditions with
tical to the East Side Trust & respect to the issue of the 200,000
shares,
100,000 such
Savings, which at the date of the additional
last call reported total deposits of shares have been issued as a stock
952,880,000 and resources of $3,- dividend to the holders of record
258,000.
It had capital stock of of common shares as of April 27,

and

the distribution of

To study

4.

the

action of the

"Pursuant to this

& Trust Co. of
Utah, a State
member bank,
has changed its
title "to Tracy-Collins Trust Co.,
effective May 6, according to an
announcement by the Board of

disbursed

with the tax laws.

ance

;:

surplus

will promote iii

degree possible sim¬
plicity, clarity and ease of compli¬

the greatest

benefit of the

shareholders

$200,0007 and

:

such changes

improvements of definitions

and

and procedures as

"The

An

of

v

J. Green, an attorney,
Chairman of the board,

"Harold

formulate

To

numerous

town's deoosits have grown from

George .
Cashier,

Cashiers.

\V;".J;'7.,

requirements.

$10,666,068 to $26,249,754."

Vice-President,
and
scribed for by its shareholders.
W.
Glasson,
Assistant
The offering circular of the in¬
all formerly with the
vestment houses says:
East Side Trust & Savings Bank;
"In order to adjust the bank's
Authony E. Frale, formerly with
the
University
State
Bank, capital funds to this substantial
Cashier,
and
Erwin F.
Beyer, rise in deposits, the board of di¬
formerly with the Madison-Craw¬ rectors on April 7, 1944, recom¬
ford
National
Bank,
Assistant mended an increase in the amount
erland,

reasonable

Federal budgetary

necessary

3.

fis¬

methods of tax¬

To formulate

ation that will meet all
and

due

■

that the

is announced

It

mittee

regard, also, to the needs and
cal dependence of the states.

N.

and

tants,

our

of our enemies

"

Roswell

tional

Government but giving

eral

2.

Committee
is as fol¬

Post-war Tax Policy
lows:

on

1

the new institution, while George
"Wendt, present President of the

be

amounts

declaration of stock dividends.

and hence

will

In the years 1936-1941,

000

will be Chairman of the board of

Bank,

un-

) der a special grant from the Mau-

record June 6

ten

two institutions

Chairman.

a®.

project has been financed

from the bank the shares not sub¬

announced,

"It is

Side

Community Sav¬

in

particular phase of the tax problem, is to serve

some

Mr.

the
stockholders in

cording

newspaper,

the title of the

announced

perience in
J The

offering (at $10 per share)
resigned as senior loan examiner of 100,000 shares of common stock
for
the
Reconstruction Finance (par $5) of the Valley National
Corporation to become President Bank of Phoenix, Ariz., has been
of the bank.
Other officers, said made to the stockholders of the
bank.
Blyth & Co., Inc., Refsnes,
the same paper, are:
"John
W.
Algar,
Executive Ely, Beck & Co. and Pasadena
Vice-President; William A. Suth¬ Corp. have agreed to purchase

Chamberlain

L.

Mr.

reported

and the

New England

oldest, except one, in the United
States.
It is the largest bank in
New Haven and the sixth largest
><:
in Connecticut."

is silenced."

A

Savings Bank and the Mechanics
Saving Bank, both of Rochester,
N. Y„ to be consummated under

was

charter in

when the last gun

June 16, 1944.
merger

this

under

which is the oldest National bank

"Only one event will truly de¬
serve celebratiion—Victory.
It is

The

career.

The

ating

Organization of a committee to aid in the study and formulation
of Federal postwar tax policies was announced on May 20 by Roswell
Magill, former Under Secretary of the Treasury, Professor of Law
at Columbia University, and a member of the Bar of New York. /; A
small professional group, the members of which have had wide ex¬

It is still oper¬
Charter No, 2,

bank

"Upon expiration of these rights
it is proposed to offer the unsub¬
scribed portion of new common

been

June 20, 1863.

He holds degrees
from Columbia University School
of Business, Brooklyn Law School
and St. John's University Gradu¬

Trust Co. absorbed the Fifth Na¬
1925.

four National bank charters issued
on

Magill To Aid In

Formulating Federal Pesf-War Tax Policies

of

second

with the Manufacturers Trust Co.
five years ago.

able

Bank in

the

granted

for anniversary

changed its location several times
before finally accupying the quar¬
ters at 23rd Street, corner of Lex¬
ington Avenue.
Manufacturers
tional

was

the ration of three new shares for

further, and also pro-

~yicreti living quarters for the Pay¬
ing Teller and the Messerger, too,
as

and

J. R. Williston & Co. before going

time for the Cashier to live above

even

Committee Under

to

Investors'

Moody's

-the bank; the Fifth National Bank
went

organ¬

in

Edward E. Stokes, President of J
the Providence,
R. I., "Journal," the appointment Stokes Industries, Covington, Ky.,
of Harry G. Bruns, former senior has been named a director of the
analyst and Assistant Trust Offi¬ Peoples Bank & Savings Co. of
cer
of the Manufacturers Trust Cincinnati, William J. Schroeder,
Co. df New York, as an officer of President, announced on May 15,
the Industrial Trust Co. of this it is learned from the Cincinnati
city is'announced by Ernest Clay¬ '"Enquirei^'V,whichv"said that Mr.'
ton,
President.
The "Journal" Stokes's appointment was in line
added:
77:.
'v>\.-'.j.---y'J- with the board's policy to increase
"Mr. Bruns, who will work in the bank's directorship.
the bank's trust department in
connection
with
supervision of
The
99th anniversary
of the
trust investments, had been asso¬
National City Bank of Cleveland,
ciated with E. H. Rollins & Sons, Ohio, occurred on May 17.
In

According

Co., at his 23rd Street office (131
23rd Street, corner Lexing¬
ton

Vice-

President of Mechanics, as Execu¬

East
of

Carson,

W.

Charles

was

1863, shortly after enact¬
ment of the National Bank Act,
ized

1944

Thursday, May 25,

THE COMMERCIAL & FINANCIAL CHRONICLE

2184

In

his

proclamation the Presi¬

dent also said, it was noted in the
Associated Press:
;
♦
"Our

is a flag of battles
carrying our message of
promise and freedom into all cor¬

It

.

.

.

is

ners

of the world.

flag of

peace

.

.

Ours is also
.

varied
may

heritage,

a

It is the flag

under which> men and

creed

women

and

of

race

work and live or, if need be, £•

fight and die together as only free
men

and

women

can."