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1943
MAY 28
Edition
Final
In
ESTABLISHED OVER 100 YEARS
2 Sections-Section
1
!:
ommetcia
Reg.
Volume
New
Number 4180
157
Horizons
By
W.
In
PATTERSON
A,
is
that
say
almost trite to
becoming
there
be
will
'
tremely largescale
ex¬
of
The
his
ir
on
the subject
recent
that
months
the
Ik
possibili¬
ties
well
those
quai
with
herewith:
issue of May 20 and others are given
C.
CARR
of
Philadelphia
opinion, the most unfor¬
thing about such discus¬
sions is that the subject should
be discussed at all.
Its very dis¬
tunate
W. A.
Patterson
cussion
that the time has
authorities feel
to rationalize this
(Continued
on page
the
leads
unwise
or
1972)
form
I
or
over,
maintain
taining information and comment
to dealer activities in
State starts on page
1958;
pertinent
devoted
section
to
MICHIGAN SECURITIES appears
1960.
some
or
an¬
a
acts
thinks
It
happens
20's,
made
of Ohio is fea¬
tured this week.
or
times
and
ness
to
a
was
at
see
Harry C. Carr
first hand the
v
results
QUICK ACTION ON DESIGN
AND CONSTRUCTION
the
the
on
countries
and
the
the
of
economy
on
of
welfare
people of inflation in its vary¬
ing
and
stages,
there
than
Dr.
Manu-
and
excellent
and
read
varying
its
de-
of
your
article should be
(Continued on page 1967)
Crowther
man
asserted
times
civilian
our
we
y."
"the
that
ceived
and
executed
inflation
"It
acute.
more
is
time," said Mr. Crowther, "for the
real spirit of America to assert it¬
fail
we
economy
that all
at
find that the props
knocked from under
been
here, all
will fail."
else
Mr. Crowther's address follows in
large part:
(Continued
on
page
1962)
INDEX
' He
may
•
Page
■'■v.
Bank
and Insurance
....1969
Stocks
Calendar of New Security
Canadian Securities
Flotations. 1974
1961
1959
Investment Trusts
Municipal News and Notes..
1970
Our Reporter on Governments
1962
Our Reporter's Report..,.
.....1956
..1957
Personnel Items.
Referring "to the extraordinary
antics
of the OPA" Mr. Crowther
stated
that
due
not
"our food shortage
the
to
is
people eating too
Railroad
Real
Securities
Estate
.........
Securities Salesman's
Tomorrow's
Says
1957
1959
Securities
1961
Corner
Markets—Walter
Whyte
1955
.......
the soldiers eating too
much,
or
Lend-Lease
sending
abroad too much. The shortage is
much,
or
Its Ceil¬
wholly to the OPA.
due
ings, its regulations and its horde
of busybodies have turned upside
Bond
Buy
the
chase
bank
Brokerage
Broaden your customer
Service
FINANCING and VALUATIONS
WAR BONDS
for Banks, Brokers
Sanderson&Porter
PROSPECTUS
R. Hi Johnson & Co.
Established
San Francisco
INVESTMENT
Buffalo
or
and Dealers
BE
DEALERS
from
HUGH W. LONG and COMPANY
INCORPORATf Q
Syracuse
Williamsport
Pittsburgh
AUTHORIZED
MAY
15 EXCHANGE PLACE
434 SO. SPRING ST.
JERSEY CITY
service with Chase
correspondent
FROM
".*•
1927
PHILADELPHIA
Albany
Troy
OBTAINED
SECURITIES
64 Wall Street, New York
BOSTON
1856
is
dol¬
OF THE CITY OF NEW YORK
In connection with
NEW YORK
more
lars." The regulations are not pre¬
venting inflation.
They are pre¬
venting production and making
national
52 WILLIAM STREET
it
that
forcing the spending of
man¬
us."
MANAGEMENT PROBLEMS
Established
rationing which was designed
the spending power of
was
so
clumsily con¬
dollar
as
REPORTS
ENGINEERSand CONSTRUCTORS
Mr.
that
sev¬
also
SURVEYS AND
Chicago
declared
further
limit
the
some
and. .methods
of Govern¬
ment
are
so
swiftly destroying
single post-war plan may be de¬
veloped which will represent the
combined viewpoint of all busi¬
ness
and industry.
I think that
copy
"the
to
t
have
a
in
ner
have
I
Saxon:
likewise
once
very
State
employ ees,
and
Samuel
Westing-
Crowther
are
Federal
more
eral.
published in The Commercial and
Financial Chronicle, May 13, 1943.
I
have
been
hopeful that a
<
busi¬
on
he said
whole structure of food
our
production and distribution."
multiply¬ self." "It is on the home, as well
ing until now as the foreign fronts that crisis
in every State
impends," he asserted, adding "if
article, "Can The United States
Support a $300,000,000,000 Debt?",
Eu¬
to
year
Crutches,"
toward losing
On
way
"are
timely
your
regular
three
able
Dear
I
two
aucrats,
expenses,
Attorney,
of
u r e
high, but
a
facturing Company-
through
e
b
on
spread
States
Electric
house
that from 1919
t h
cut
Mr.
commented
the
a
Tax
General
on
,
at
told."
is
it
as
which
E. M. ELKIN
their
off
to
su¬
Crowther
able proportions.
debts.
visits
State
The
as
animal
and
rate, and to devote
the next two generations or more
to getting our debt into manage¬
trying
honestly
rope
Special editorial material per¬
taining to SAVINGS and LOAN
ASSOCIATIONS starts on page
down
per¬
which
that when this
every honest effort
taxes
high
;
page
escape
are
fined
■
made
be
not too
pay
similar
to
we
pine
degree of inflation.
any
is
should
to
to
OHIO SECURITIES section con¬
1964.
thinking,
strongly feel
war
to
other,
In This Issue
on
from
ment, can be more tragic, particu¬
larly for the middle and lower
income
class
groups
than
any
think that per¬
means
that
scramble
mad
our
another.
haps weshould
post-war
avoid, by
a
in
of intensity in one country
Nothing, in my judg¬
grees
In my
air¬
the
our
sturdy, pernickety independence which most of us were reared
was our birthright." Speaking before the rotary Club of
mitting an American to be rede¬
HARRY
a n c e
on
believe
debt problem.
In line with its suggestion, the "Chronicle" has been favored with
various comments regarding the views and conclusions set forth by
Dr. Saxon in his article.
Some of these expressions were carried in
sound solution to the post-war
President, The First National Bank
ac-
OPA
Thursday, Samuel Crow¬
"Capitalism
discussing
already well along
are
from
who
t
;
and economist,
author
declared that "we
to
of
address delivered in New York last
an
exactly
plane.
Many airline
come
article, the author discussed the vital stake of the millions of
war bonds in the methods employed in working out a
our
by
no
n
ther,
Planless Planning;
To
"Antics"
investors in
under-,
even
have
In
rather
are
stood
Shortages Due
Criticizes
New York, at the Hotel Commodore, he sought to bring the gather¬
In ing to "an acute realization that$-
The nation's leaders "have the political courage to attempt it."
Hfy
Copy
a
what he terms "honest dollars," provided, of course, that
be paid in
war.
read and heard
during
Dr. Saxon holds that the debt can
indirectly, in whole or in part?
general
much
Federal debt be redeemed in money of present
purchasing power, or will it be repudiated directly, or
pre-war
All
Contends
that
air
public has
so
caption, Dr. Olin Glenn Saxon, Professor
question of primary concern to the entire nation, viz; Can, and will,
or
transportation
after the
Price 60 Cents
1943
University, undertook to provide an answer to the
of Economics, Yale
the gigantic post-war
..
expan¬
sion
;
an
4
York, N. Y., Thursday, May 27,
carefully documented article published in the "Chronicle"
a
of May 13 bearing the above
President, United Air Lines
It
Office
Pat.
Govt. Methods Tend To Destroy
Can The United States Support
A 300 Billion Dollar Debt?
Civilian Economy Says Crowther
New Airline
)
S.
U.
Hardy & Co.
facilities
Members New York Stock Exchange
York Curb Exchange
Members New
New York
Member
LOS ANGELES
30 Broad St.
Federal Deposit Insurance
Corporation
Tele. NY 1-733
Tel. Dhrby 4-8400
Dallas
H. Hentz & Co.
Actual Trading Markets, always
Members
Stock
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Exchange
York
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And
of
finest contacts in
other
LAMBORN & CO.
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•
Over-The- Counter
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YORK
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DETROIT
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Y.
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HART SMITH & CO.
REYNOLDS & CO.
INCORPORATED
N.
Ass'n
Members New York Stock
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Street
Tel. REctor 2-3600
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Telephone:
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Y.
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Exports—Imports—Futures
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thru
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Exchange,
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DIgby 4-2727
COMMERCIAL & FINANCIAL
THE
1954
Thursday, May 27, 1943
CHRONICLE
a
-Trading Markets in:
Active Markets in V. S.
We Maintain
Auto Ordnance
United Gas Improvement
Common
Exchange
GOODBODY <Sl Co.
Ass'n
'
BROADWAY
115
Telephone
J
"A"
BIdg. 5's, '50 & Stock
Paperboard Pfd.
United
Com.
Maryland Drydock, Com.
May, McEwen & Kaiser,
Mitchell & Company
Stock Exchange
Baltimore
Members
120
Broadway, N. Y.
N.
Teletype
issued
Y. 1-1227
benalf
on
tions.
All
of
The
1943 and official
have
only
obliga¬
reprinted
letters
are
your
all "Inactive"
his views
>i:'V■
v-
W'mS'Mr
•
■
With
of
New York,
L
Jersey City,
N. Y.
1L1
dogmatic
so
air of finality which
influence
a
good
will
elsewhere
the
that
decree
Com.
The White House,
Washington, Nov. 16, 1933.
Joint Statement by the President
Vertientes Camaguey
Amott, Baker & Go.
Indiana Limestone
Inc.
Auchincloss,
addition
"In
v
.
,
5%s,
.
we
to
have
"
signed
today,
1949
Kimball & Cross Is
H. G. GRUNS & CO.
New York
20 Pine Street
Telephone: WHitehall 3-1223
Bell
Teletype
NY 1-1843
Indiana Gas & Chemical
&
Common
Preferred
Int'lMiiteral & Chemical
Warrants
*
Seiberling Rubber Pfd.
Marion Steam Shovel Pfd.
subject
arises
N.
Members
Y.
Security Dealers
St., N.Y.
Tel. HAnover 2-4850
instantaneonsly,
almost
safety doors in mines; detect pres¬
fact
the
electronic devices
electronic
device)
we
being
are
detect
can
ships,
submarines,
reefs
and
planes with a high degree of ac¬
curacy at considerable distances,
despite darkness, fog or clouds.
The
nifies
electron
100,000
new
fields
metals.
microscope
mag¬
times; opens great
study in bacteria
Million-volt X-rays
of
photograph the internal structure
of thick
metals, detect flaws.
Electronic devices count
steel
of
ence
traffic,
match false teeth, reverse rolls
Association
37 Wall
from
control bleaching
employed in great quantities to processes, fill tooth paste tubes,
win the war.
foods,
inspect
razor
Many of the new sterilize
applications are secret, for mili¬ blades, guard factories by invisible
tary reasons, but we are now in¬ light-ray "fences," cure disease by
formed by the use of "Radar" (an internal
body heat (diathermy),
that
and
&reetteaaCompa.Tii|
in
interest
intensified
Recent
in
mills, control furnace tem¬
Teletypes—NY
1-1126
&
1127
gas,
add
precision and uniformity to
welding.
Fluorescent lamps, an
electron¬
application, have had rapid
growth in the- past five years. Ra¬
dio
facsimile
transmission
has
ic
used
been
mission
Kimball
of
principally for trans¬
photographs, but it
the
new
firm
shades, compared with about 10„000 for human eyes.
Other elec¬
straighten threads in
inspect
fast - moving
(Continued on page 1972)
pictures long distances
eyes
Specialize in
TITLE COMPANY
Railroad
TRUST COMPANY
Public Utility
Air Transport
way,
Inc., and on Chicago and
Southern
Airlines, Incorporated.
These two circulars are the
11
N. Y.
WHitehall 4-4970
Teletype NY 1-609
Spokane Inl'l Ry. Esc. Recpts.
first
and second of a series of studies
of
ers
and
upon
available
are
New York Water Service Pfd.
air transport
over-the-counter
issues
to
deal¬
Scranton
Spg. Brook W.S. Pfd.
request.
Int'l Mineral & Chemical
mm
Warrants
E. Walker A Director
Electric
&
Ohio Match
Established
Company. Charles E. Hook, Presi¬
dent of the American Rolling Mill
Company, has also been elected
30
Pine
1915
Street, New York
Telephone DIgby 4-7900
a
Bell System
Teletype NY 1-1790
director.
are
MR.
PARTICIPATIONS
Robert C.Mayer&Co.,Inc.
Manufacturing
CERTIFICATES
pleased to
announce
EDWIN L.
JOHN
MR.
A.
that
TATRO
DOYLE
have become associated with
our
us
Trading Department
WHOLE MORTGAGES
It will be worth your
buying
or
selling
while to check us before
any
Hon Rose & Trqster
of these securities.
STERLING INVESTING
70 PINE ST.,
WHitehall 4-8120
Teletype NY 1-1919
ways,
Established
Members New
II
Broadway
Bell System
Air¬
Braniff
on
K
"Nv
Members New York Curb Exchange
65
& Company,
available
'
'
/
Members New York Stock Exchange
120 Broad¬
New York City, have a cir¬
cular
>.•
Edward A. Purcell &. Co.
Lines
Offer Possibilities
Ward
"A
quoted
sold
bought
,
in
STOCKS & BONDS
G.A.Saxfon&CovInc.
BONDS AND STOCK
for¬
>
We
We
both
were
& Co.
house
tronic
Trading Markets in
Industrial
Laboratories
Street, to engage in a gen¬
Partners
eral securities business.
Elisha Walker, partner in Kuhn,
systems and newspapers Loeb &
Co., New York City, was
later on.
The spectrophotometer
elected a director of the Westingaccurately detects 2,000,000 color
weaving,
news
1-2480
egraph
peratures, prospect for oil and ore,
send
NY
Teletype.
Dumont
&
Devon--
82
at
might become a competitor of tel¬
control humidity, help ships dock,
Bell
i—
control
System
I
Clellan
Everett
formed
with offices
Cross
F.
MASS.—Robert
and
have
Cross
*
Assn.
York, N. Y.
to The Financial Chronicle)
BOSTON,
merly partners in Collins, Breed
the
Dealers
Formed In Boston
in
<*>—
Security
REctor 2-5288
Bell
shire
tures, electric eyes.
Members
York
New
Kimball
of electricity, 'one of the
particle
1
r
■
Ill Broadway, New
the agreements
:
.
„
J.F.Reilly&Co.
;
Inc.
ing the past year, the science is not new.
Well-known applications
include: radio, frequency modulation, television, X-ray, talking pic¬
Preferred :f
&
Com. & Pfd.
nolds, Fish & Co.; in the past he
was with Clarence Hodson & Co.;
(Continued on page 1972)
inval¬
invisible
an
Botany Worsted Mills
prior thereto was manager of
the trading department for Rey¬
and
Although the term "electronics" has come into common use only dur¬
Struthers Wells
Common
is
Great. Amer. Industries
Redpath,
&
Parker
Farnsworth Television
of
Department
Trading
parts of an atom. Electronics is the science of electrons.
Electrons
can
be controlled and put to work by means of vacuum tubes.
1952
6s,
electron
Sugar
Cor¬
John Miller is now in the
and Mr. Litvinov:
which
New York
Teletype NY 1-2361
Alegre Sugar
Punta
Amott, Baker & Co., Incorporated,
150
Broadway, New York City.
Mr.
Miller
was
formerly
with
or
Broadway,
REctor 2-7634
Miller" Willi
John
Department of
Electronics
An
120
of the bond
manager
Halsey, Stuart & Co., Inc.
(Special
Pfd.
&
C. E. de Willers & Co.
that conditions
Common
■
depart¬
Baker & Co., Inc.
was
with the
1932 or earlier, trading department for Distribu¬
But, this is tors Group, Inc., and was with
Byrndun Corp.
Douglas Shoe
Ph. & Read. C.& I. 6s 1949
New; York office of Bankamerica
was
per
formerly
was
he
thereto
$50.00
1942
share
Annual report on request
depart¬
trading
the
ment for Amott,
Prior
Colortype Pfd.
over
in
them
porate
been
Moscow
from
Kranz
of
manager
changed. Suppose we discuss
enough of these to arouse
readers' doubts about repu¬
num¬
that "there has
and
intimation
no
Mr.
ment.
(quoted in full):
your
diated"
trading
publics." On page 15 we find the
following
interesting
statement
in
readers, he tells us
that
"all foreign
loans, without
exception, are absolutely repu¬
ber
George A. Rogers & Co., Inc.
an
is
Russian Dollar Bonds.
on
doubt
no
article,
his
War and American Foreign
"The
Investments,"
S'
in
Winkler
Max
•
an¬
1933, and entitled, "The Establish¬
ment of Diplomatic Relations with
the Union of Soviet Socialist Re¬
why
cannot help but wonder
I
Dr.
Earned
branch offices
has be¬
pamphlet
called
Eastern
European Series No. 1, printed in
President, Carl Marks & Co., Inc.
also
with
corporate
records, persons,
Exhibit I is the
Sugar 8t Coal
i associated
their
State
MARKS
CARL
that George Kranz
come
diation.
herewith:
American
our
agree.
and events tell us
Russian
these
worth
would all
Exchange,
Stock
York
nounce
Co. and
If th e year were
we
received
several letters taking issue with
the
opinions expressed by Dr.
Winkler
regarding .■ the • actual
The "Chronicle" has
sia.
New
modified."
prices of bonds
of Czarist Rus¬
the increase in the
WOrth 2-4230
Bell
for
justification
the
questioned
Direct wires to
Cohfl & Torrey, 1
be revoked or
been or is about to
Orleans, La.-Birmingham, Ala.
New
2-7815
REctor
-
NY 1-1557
York Curb Exchange
Wall Street,
New York City, members of the
published in the
article
an
Exchange
Stock
George Kranz Joins
Cohn & Torrey Dept.
"Chronicle" of May 20, carrying
the above caption, Dr. Max Winkler discussed the status of- the
external obligations of various foreign governments and pointed out
that the aggregate market value of such securities has enhanced
materially since the outbreak of the present war. 'While he attrib¬
uted the disrepute attaching to foreign securities generally to "prop¬
aganda," not deterioration of in->
vestment status, he nevertheless idating Russia's public ■ debt has
In
Members New York Stock Exchange
25 Broad St., New York, N. Y.
Members
York
Tel.
Foreign Investments
Mayflower Hotel 5's, '50 & Com.
Natl. Press
Steiner,Rouse&Co.
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The War And American
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NEW YORK
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BELL
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Preferred
&
Quoted
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and Other Principal Exchanges
Members N. Y. Stock Exchange
HA 2-2772
PL, N.Y.
Bought——Sold
Common
'
New
:
-
Security Dealers
York
New
Members
r:
^
CANADIAN BANKS
>
,•
KING & KING
40
Residual Certificates
CANADIAN RAILS
4s, 1957
Ralston Steel Car
,
CANADIAN MINES
Nu-Enamel
De bard elaben
| Improvement
,
CANADIAN UTILITIES
Alabama Mills ; i.;
United Gas 'v/;. "
CANADIAN INDUSTRIALS
Superior Tool & Die
Established 1920
FUNDS for
42
CORPORATION
NEW YORK
BROADWAY
BOwling Green
9-0480
74
1914
York Security Dealers Association
''
•
Trinity Place, New York
Telephone:
Teletype:
BOwling Green 9-7400
NY 1-375
Volume
{i
157
THE COMMERCIAL
Number 4180
& FINANCIAL CHRONICLE
The COMMERCIAL and
FINANCIAL
CHRONICLE
-Reg. TJ. 8. Patent Office-
•;
William B. Dana
25
We
.; j. vy ?; ■
Company
Publishers
Herbert
D.
offerings of
Consol. Textile
Public
Thursday,
'
May
twice
PREFERRED STOCKS
Mergenthaler Lino.
week
Pfd.
Sp'
I every
25 Broad Street, New York
Stromberg-Carlson
Telephone HAnover 2-43004
5>/2-7i/2-Com.
1-1%
1943 EARNINGS
Preferred $24.68 per share
Common $9.35 per share
^
Teletype NY 1-5
Members New York Stock
1
Monday] :
on
Detroit & Mackinac Ry.
Trask & Co.
•encer
Rockwood & Co.
1
1943
27,
a
Thursday '(general news and ad¬
vertising i^sue) with a statistical
issue
Typical "Cats & Dogs"
Utility and Industrial
William D. Rlggs, Business Manager
Published
AND COMPANY
Seibert,
William Dana Seibert, President
i
liCHifnsTfin
B. S.
High Grade
<
Editor and Publisher
j
interested in
are
Chicago Ry. Equip.
Sprucp Street, New York
BEekman 3-3341
V
|.'
1
1955
Exchange
99 WALL
r
STREET, NEW YORK
Telephone:
WHitehall
4-6551
Other Offices:
Chicago—In charge of
Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.
Fred
H.
Copyright
Company.
1943
by
y
^
William B.
-.rM:-'*
York, N.
3, 1879.
Y.,
the
under
Feb¬
New
March
Subscriptions in United States and
Posessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain, Mexico and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
NOTE—On account of the fluctuations
In the rate of exchange, remittances
..foreign-, subscriptions
for
advertise¬
and
Our
Real
Securities
Estate
specialized
past twelve years in:
for the
has
Title^Co. Certificates
81Prudence Co. Issues j
Mortgage Participations
Issued
-
by
.
New York City
\
-
Call
v
V-
w\.
And The United States
Teletype NY 1-832. 834
Inquiries
Over-Warnings Against Inflation May Produce Evils
They Seek to Combat, Says Dr. Hirsch
CHICAGO
Harrison 2075
Teletype CG 129
Banks
Newbiiigei\ Loeb & Co
U Members New York Stock Exchange
WHitehall 4-6330
St, N. Y.
Bell
1-2033.
MY
Teletype
.
Invited
In
Mtge.
Co.
Title
Co.
Too many warnings against inflation may, by creating public.
alarm, produce the very evils they seek to combat. This is the opinion
Ctfs.
Co.
Ctfs.
Title
Hirsch, who as minister of economics in Germany before
and during the disastrous inflation of 1923, was the Leon Henderson
of that day.
Having left Germany in 1933 when the Nazis came to
power, he is now in this country, dividing his time between New
York and Washington as a chiefs
consultant to the Office of Price to make the prediction that the
Administration.
His new
book, forebodings of the New Deal's foes
"Price Control in the War Econ¬ were groundless.
In 1941, how¬
Dy WALTER WHYTE
;.
omy," has just been published by ever, it was a little disconcerting
Persistent
absorption
o f Harper & Brothers, with a fore¬ to hear government officials tell¬
ing the people that prices would
offerings
points to higher word by Leon Henderson. •
run
away and that the
country
prices. Widespread optimism
Dr. Hirsch arrived in America
stood upon the brink of devastat¬
on
one
of his periodic visits in
unhealthy.
But buying now
ing
inflation.
However,
once
the War Economy," "to find that
advised with close stops.
again, a survey of fiscal and in¬
1935, he writes in "Price Control in
dustrial conditions
convinced me
the War Economy," "to find that
that, if the proper controls are ap¬
There may be other fields the enemies of the New Deal were
plied, the danger of runaway in¬
where a man is a hero one predicting that its financial poli¬ flation in this country is remote.
cies would plunge the country into
"I was sensitive, to this subject
day and a bum the next, but inflation. On my return to this
because my service as
German
not being familiar with all of country six years
later, in 1941—
secretary of economics came dur¬
them, I can say, from personal to remain, I hope—I found, to my ing the wild inflation which de¬
amazement, that high officials of scended on that
experience, that nowhere the New
country after the
Deal itself were warning
last war.
Naturally, we learned
does this feeling reach such a the
country about inflation.
much from that disaster. Hitler's
crescendo than in this busi¬
"I hadn't been in the country government
has
certainly
also
ness of stock market speculalong in 1935 before I was able to learned much. One lesson is not
learn enough about affairs here
tion.
(Continued on page 1961)
%
Co/s
Walter Whyte
&
Mtge.
all
and
Bank
of Dr. Julius
'
Ctfs.
Lawyers
.
40 Wall
In
Lawyers
Bond
Tomorrow's Markets
Specialists
REAL ESTATESECURITIES
Board of Trade Bldg.
Broadway
Are
other
Trust
Participations
Complete Statistical Information
L J. GOLDWATER & CO
'
INC.
Members New York Security Dealers Assn.
39
Broadway, New York, N. Y.
HAnover
2-8970
Teletype NY
1-1208
Botany Worsted
Mills
Common & Preferred
'/.
Consolidated Textile
Co.
,
for quotations
us
Dealers Ass'n
Inflation
Says—
ments must be made in New York funds.
Department
Security
York
DIgby 4-8640
;i
!
32
New
NEW YORK
of
Act
Members
Dana
j
Reentered as second-class matter
ruary 25, 1942, at the post office at
We
STRAUSS BROS.
Comparative Analysis
on
Request
J.F.ReiUy&Co.
Members
York
New
111
Security
•"
Dealers
Assn,{
Broadway, New York, N. Y.
,
y,.
Stringfellow
Scoll&
The
Fiftieth Anniversary
VA.—S
RICHMOND,
c o
&
11
Building,
Mutual
Stringfellow,
members of the New York Stock
Stock
Richmond
this month celebrating
the fiftieth
anniversary of the firm's founding
It was originally formed
in 1893.
partnership by Frederic W.
Stringfellow
a
as
Scott and Charles S.
and, although both of the founders
now
deceased, the firm has
policies
are
been carried on under the
they outlined.
the
At
*
.
the
of
beginning
hath
man
-
war
partners were Buford Scott, Ed¬
ward
C.
Anderson,
Walter
S.
fury like
no
scorned"
to
who
trader
a
a
should lend
an
ear
listened
to
advice to
off
He'd
another bender.
on
tive manager of the Victory
the'
of
Committee
retired
Scott
Federal
Fifth
join
to
Lend-
the
Lease Administration in Washing¬
Robertson
Mr.
ton.
Lend-Lease
on
a
is
also
with
foreign assign¬
ment?
E. G.
Ringrose Forms
Own Firm In N. Y. G.
,
G.
E.
specialist
Ringrose,
in
Bond
States" Government
.United
in United
The
cated
at
new
76
York City.
Mr.
long,
or
brokers
*
As
all
firm will
Beaver
; j.
be lo¬
Street,
Ringrose was formerly of¬
fice manager
for Wm. E. Lohrman
Co. with which he had been asso¬
an
like
answer
question.
the
to
to
answer
an
matter of fact,
the
the question..
Investment
\
...
common
few perhaps stop to realize just what is
or
six years. Pri¬
should
done.
be
Anybody
acted
to
129.17
from
high
137.45, that prices not only
firmed
went;
on
up
to
140.
Obviously this
only a candidate
drawing and quartering
cross
made
for
but
a
me
not
and
future
dividend
These
measured?
the factors that
are
one
when looking at
is
return
Miller Tool & Mfg. Co.
equity prices.
..
years
1938,
1939
1940
and
the
are
high
or
a
far
In
course
question.
not,
the
more
first
comlex
place,
it
outlook for all
least
at one time or an¬
150.
True, the aver¬
averages were
an
Please
.
Note in
FASHION
industries
far
is
from
identical.
companies will experience
Jacksonville Gas Corp., 5s
difficulty in making a future tran¬
to peace.
the
perhaps
should
Some lines, and
railroad
industry
Textile Building 3-5s,
be
We Make A
J. B. Lyons
Trust
Lohrman
quiries
States
and
.
orders
Government
Land Bank,
the
Company.
new
Wm.
Co. is referring
for
or
E.
all in¬
United
Federal
Frank C. Masterson & Co.
Members
64
etc., bond orders to
Specialty of Dealing in
company.
New York, N. Y.
Tele.
Exchange
NEW YORK
SECURITIES
Preferred Stocks
Complete Statistical Information
Established
v
Members New York Stock Exchange
.
Curb
HAnover 2-9470
WATER WORKS
Bonds.
Bristol & Willett
HAnover. 2-0600
York
New
WALL ST.
Teletype NY 1-1140
Inquiries Invited
Request
SIMONS, UNBURN & CO.
25 Broad St.
Really 5s, 1S59
Singer Manufacturing Co.
Dun & Bradstreet, Inc.
of $9.00 per share
on
1958, W.S.
Johnson & Johnson Pfd.
PARK, Inc.
Descriptive Circular
& Com.
Tiffany & Co.
Corning Glass Works
Accumulations $17.50 per share
as of April
1, 1943,
Earnings
excess
That
Great American Industries
.
$3.50 Cumulative Preferred
L942 in
Your Records
Tybor Stores, Common
companies and all
included, have passed
ideal ap¬
their peaks and may be fighting
other over
plicant for a permanent home age of equity prices is currently a rear-guard action for survival
in the booby hatch. So since about 5% above the best figures in future decades.
Contrariwise,
I returned to my desk I have reached in 1941 and about 14% many industries qualify as dyna¬
above 1942's best.
But the fact mic, growth industries; and per¬
spent hours, poring oyer what
looks like miles of ticker tape, that equities are above last year haps airlines, the electronics field,
and
the
(Continued on page 1959)
year
before in itself
(Continued on page 1960)
but at the
COrtlandt 7-6190
Teletype NY 1-84
170 Broadway
should be stated that the earnings
sition
r
n
the earnings outlook, is
on
Some
Est'ms
Bell System
Whether stocks
based
of
.
'it
rluiioo&lo.m
terprise system.
but three of
must appraise
Historically, it seems quite sim¬
ple and obvious that the level of
equity prices is not inordinately
high.
The D-J averages closed
May
18
around
138.
Dur¬
ing 1937 this same average
was over 190, and in each of the
thereto he was with the Guar¬
anty
and rights
Bartgis Brothers
v
ciated for the past
j
Federal Screw Works
inquiry.
New
-
want
also
would
a
States Government
obligations, both direct and indi¬
rect.
term
...
trading/has formed his own firm,
jE." G. Ringrose Co., to act as deal¬
ers
Stromberg-Carlson
large and small, and regardless of whether their outlook is short-
When one^something new about
For the war out¬
stops to consider whether stocks means little.
fury and the diabolical de¬ are
high, there are almost count¬ look, both East arid West, is im¬
lights of the nether regions. less factors to be considered. Are measurably better and brighter,
*
*
*
.V
stocks high
historically; i.e., as and wljile taxes are high, and
compared with the averages in properly so, corporate profits are
For the
past month this
past years?
Are stocks high in not being confiscated and one
writer
has
persisted in ; a relation to the earnings outlook? hears fewer misgivings today as
stand
that no new buying Are stocks high when the current to the survival of the profit en¬
Fund of
Later James H.
Reserve District.
Every individual who is connected with the securities profes¬
sion is having this question propounded almost daily.
Investors,
behind
learn
who reads this is aware that
N. Fitzgerald, after the break of
mid-April,
James "H. Scott, and Thomas D.
when the Dow industrials re¬
Neal. Mr. Anderson retired in the
of 1942 to become execu¬
"Is The Market High?"
woman
Robertson, Marion
summer
REctor 2-5288
who wrote: 4'Hell
get out of his stocks
the
just before said stocks started
are
Exchanges
and
Exchange,
Curb
and
V»y-
Bell System Teletype, N. Y. 1-2480
NY 1-210
115
-Members
New
York
Broadway, New York*
Bell
1920
.
.
~
.
..
V"
Security Dealers Association
v
1
■
'
Tel. BArclay 7-0700
System Teletype-NY 1-1493
CRAiGMYLE, PINNEY & CO.
V
'
Members
.
ONE
New
WALL
York Stock Exchange
ST.,
NEW
YORK
Telephone WHitehall 4-5290
)
THE COMMERCIAL &
1956
FINANCIAL CHRONICLE
Thursday, May 27, 1943
PUBLIC
Troster, Currie & Summers ■§
Members New York Security Dealers Association
74
INDUSTRIAL
We Wish to Announce that
Trinity Place, N.Y.C.—HA-2-2400—■Teletype NY 1-376-377
We have
Alegre Sugar
BONDS
Vertientes Camaguey Sugar
Bought
'■} ' ' Private
MUNICIPAL
g. m. (jim) white
f
Punta
RAILROAD
interest in
an
—
julian m. white
C&mProCOME&NY
Sofd — Quoted
INCORPORATED
have terminated their connection with the
Wires
to
Buffalo
Cleveland
*
-
Detroit
Pittsburgh
-
UTILITY
CHICAGO
firm of
Louis
St.
-
New York
Boston
Milwaukee
MURDOCH, DEARTH & WHITE, INC.
and that they will hereafter engage in the Securities business
Specializing in
at
the
address under the
same
firm
R. Hoe &
of
name
CHICAGO TRACTION SECURITIES
Co., tnc.
Common Stock
WHITE & COMPANY
13th
ST.
cruttenden & co.
Members New
Telephone
York Stock Exchange
Wires
209 South La Salle Street
Teletype
Chicago 35
request
LOUIS, MO.
AIGELTINGER & CO.
to-
and
East
Chicago, Illinois
on
Private
Direct
and Chicago Stock Exchange
Dearborn 0500
Circul ar
Floor, Mississippi Valley Trust Building
West Coasts
V
House-Senate Conferees Agree on Compromise
76 William Street, New York
BOwIing Green 9-3530
Legislation For Pay-As-You-Co Income Tax
We take
pleasure in announcing that
Mr.
George Kranz
has become associated with
in
us
DALLAS
75% Of Year's Taxes Cancelled For Those Owing Over
$50; Full Cancellation For Those Owing $50 Or Less
Bought
a full year's taxes would be cancelled for
per¬
owing $50 or less and 75% would be abated for all whose tax
exceeds $50.
Payment of the unabated 25% of one year's tax—1942 or 1943,
whichever
is
be deferred
iod,
Members New York Stock Exchange
One Wall Street
NEWARK,
N. J.
ST. PETERSBURG, FLA.
greater—would'#-
basis,
a
withholding
levy
(above
exemptions)
would
be
installed
against
all
wages and salaries, effective July
The compromise
We are pleased
to
has
been
of
our
promoted
to
with
has become
Auchincloss,
Parker
N.
Redpath)
in
us
$6,000,000,000 of • one year's tax
liability, or about 64% of the to¬
tal taxes for a year.
^
.
V '
In Associated Press Washington
advices
May 25 the following
was
indicated
as
the way
the
our
Corporate Trading Department;
/
abatement provisions of the com¬
AMOTT, BAKER & CO.
promise would work:
INCORPORATED
150
1.
BROADWAY
NEW
Telephone BArclay 7-2360
Bell
System
YORK
Teletype
NY
1-588
Persons with $50 or less lia¬
bility
1943
the incomes of 1942 and
on
would
this
have
abated
which
A
the
on
their
100%
credit
one
liability
year
of
in
the
was
ESTABLISHED
which
in joint
(husband-wife) returns where the
obligation was lower than $50.
2.
EASTERN OIL ROYALTY DEALERS ASSOCIATION
UNDERWRITERS—DISTRIBUTORS—DEALERS
Desirable
Commodity Oil Investments carefully selected
for their long term investment
prospects as well
their satisfactory current
for
as
monthly returns.
Persons with liabilities
over
$50 in 1942 and 1943 would have
75% of their obligation canceled
for
the
one
of
the
which they had
able income.
3.
two
in
years
the smaller tax¬
True, there
for
fourths
those
gaining
abatement
amortized
over
three-
would
two
be
with
years,
half
522 FIFTH AVE., NEW YORK
MUrray Ilill 2-4247
falling due next March and
the
other
this
would
12.5%
Man with specialty
active
wanted
Commercial
& Financial
Chronicle
25 Spruce St., New York, N. Y.
dealer
of
25
with
following
firm.
arrangement.
giving
H
or
would
by long established
over-the-counter
eral
S-7
amount
"To iron out inequalities which
exist in cases where the
TRADER
Trader Available
Box
the
the
taxpayers would remit
in the two-year period.
Experienced
Department
in
15, 1945.
roughgly a
all
details.
Lib¬
Reply
Box
26, Financial Chronicle,
Spruce St., New York,
N. Y.
tax liability for 1942 or 1943 is
only slightly above $50, the con¬
ferees
said
a
'notch'
$52
pay
a
con¬
Stik
Naturally
of
#09 OUVE ST.
Bell
System Teletype—SL 80
substantial backlog
a
demand
among
the
houses
doing
business
loan
Co.
SAINT LOUIS
,
has
general
clientelle
straight
and
the
naturally
<■*
accumulated
of
municipal
Members St. Louis Stock Exchange
Texas-Works
proved
decidedly
attractive.
So much
so
in fact that it
dealers
among
potential buyers
quiring
issue
for
the
price,"
were
bonds
without
was
that
"at
,
This
not
any
inquiry, however, should
be interpreted as suggesting
rush to buy at any price, for
ment
no
in the
group
world
is
invest¬
capable of calcu¬
lating markets any closer than the
municipal faction.
They had a
pretty good idea of how the is¬
sue
would be
Proceeds
priced.
from
the
.
sale
of
by
an
the
equal amount of 4s held
Reconstruction
Finance
Corporation, which are subject to
starting June 1, 1945, at 105.
call
TEX.—J. R. Phil¬
lips Investment Co., Inc., Com¬
merce
Building, announces that
William
J.
Shawell
has
associated with the firm
of
ager
ment.
the
Mr.
investment
Shawell
was
become
as
man¬
depart¬
formerly
manager of the local office of the
Ranson-Davidson Co.
Tafro And
Doyle Are
With Ho:!, Rose Go.
Edwin
Doyle
L.
Tatro
have
and
become
John
A.
associated
with
Hoit, Rose & Troster, 74
Trinity Place, New York City, in
the firm's
trading department, it
is
announced
and
in
Portfolio Troubles
Phillips
HOUSTON,
the
$21,635,000 issue, which will ma¬
ture semi-annually from 1944 to
1970, with $4,615,000 of 2%s fall¬
ing due in 1975, will be used to
refund
Far J. R.
the
knowing
definitely what price would be
set.
Shawell Dept. Mgr.
in¬
provision
will be added to the bill. Without
such
been
issues
limited in the scope of their
are
appeal.
March
mean
increase
taxes
Capable of Managing
half
has
new
sprinkling of public
housing authority bonds, but by
and large, issues of that type
perhaps
The 25% obligation remain¬
ing
Royalty Offerings Invited
persons or
ST. LOUIS
siderable
r epor.ted
by
San Antonio
•
clearly indicated the effect
that the long dearth of
has had in that field.
come
1935
DALLAS, TEXAS
Houston
cent revenue bonds of the
Lower Colorado River Authority
some
were
Southwestern Securities
situation
Tax experts said that 2,036,000 returns filed on 1942 in¬
Member:
Utility Preferred Stocks
on
per
smaller.
William F. Ferris & Co.
us
RAUSCHER, PIERCE & CO.
REPORT
mated the bill would abate about
&
associated with
REPORTER'S
4
by the Joint Conference
Representative Doughton (Dem.
C.) Chairman of the House
Ways and Means Committee, esti¬
Trading Department
Ry. & Terminal 6% 1951
developed in the
municipal market, coincident
with the public offering today of
Committee by 11 to 3.
Manager
MR. JOHN MILLER
(formerly
Chech
adopted
MR. JOHN T. CUSACK
Dallas
OUR
plan, which' is
regarded as virtually certain* of
final
passage
by Congress, was
^that
announce
So'western Pub. Serv. Com. & Pfd.
—
All Texas
cur¬
20%
basic
a
Southern Union Gas Common
a
bring taxapayers to
rent
-
two-year per¬
1945.
over
1944 and
To
New York
.
the
Quoted
Republic Insurance
sons
lDe/M&
—
Dr. Pepper
;
lation under which
Corporate Trading Department
Sold
—
The pay-as-you-go tax stalemate was broken on
May 25 when
the Senate-House conference committee agreed on
compromise legis¬
our
Thomas
by Howard S. Hoit
C.
Brown, partners
the firm.
a
provision, a man with a
liability would have to
25% of it, or $13, while his
tax
friend
across
the street with
liability would
see
a
$50
it all erased."
Increasingly
frequent
of
institutional
The Associated Press also said:
"House conferees accepted with
an
amendment
a
Senate
anti-
continued
on page
1972)
calls
for
redemption of whole bond issues,
along with sinking fund opera¬
tions, are giving the rank and file
ers
many
an
portfolio
manag¬
anxious day at the
moment.
(Continued
Magid On Active Duty
David H.
Magid, Secretary and
of Hill, Thompson
&
Inc., 120 Broadway, New
York City, is now on active'
duty
Treasurer
Co.,
with
the
the U.
on page
1969)
at
U.
S.
S. Naval
Naval
Reserve
at
Training Station
Sampson, N. Y.
Volume
1957
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4180
157
"Railroad Credit has been Restored yet Unrecognized"
REORGANIZATION
CANADIAN
SECURITIES
By Patrick B. McGinnis
if®
RAILS
,
CANADIAN STOCKS
Copies of the address on the above subject available on fequest
Brown
Confpany
Bulolo Gold
Inquiries Invited
com. & pfd.
Dredging
Canadian Bank Stocks
Canadian Marconi
PFLUGFELDER, BAMPTON & RUST
NEWBORG 6> CO.
Members
New
Eleclrolux Corp.
York Stock Exchange
MEMBERS;'.
Broadway
61
Exchange
York
Baltimore
: r
■
Stock Exchange
Exchange
Chicago Stock Exchange
Philadelphia Stock Exchange
Exch. (Assoc.)
City Stock Exchange
Lake
Cotton Exchange
Exchange
& Sugar Exch.
Telephone—DIgby 4-4933
If
Produce
lication in. this column*
(Special
Finucane
with
<.
i.
>
.
;
•
(Special
\
•.
bert
Donovan
Com¬
Day
&
Bros.
Co.,
&
<
The Financial
to
CITY, MO.—Frank I.
has become connected
Lamson
BOSTON,
Charles
A.
Co., Inc., Sears Building.
& Co.
Upham
found
(Special
Financial
The
to
Chronicle)
(Special
to
has
Gardner
staff
of
tional
D.
Chronicle)
The Financial
'MAYSVILLE,
KY.
Newell,
a year
could
to
to
The
Financial
Ilellerud
with
become
has
Slayton
ell
Chronicle)
Co.,
&
was
for¬
A. C. Allyn &
and Bond & Goodwin, Inc.
Co.
Wahl
Mr.
Street.
with
merly
Ill
North Fourth Street.
(Special
to
The Financial
(Special to The Financial Chronicle)
Chronicle)
5
MASS.—Ilyman
joined the staff
of Tifft Brothers, 332 Main Street.
WORCESTER,
II.
Berman
KANSAS
strangest
part
6
Co.,
Barrett
Herrick
1012 Baltimore Ave.
Inc.,
and Southern Pacific.
with
tions of
seven
on
leading agricultural
machinery companies, including a
production in the face of recordcomparison
of
sales,
earnings,
breaking farm purchasing power,
total
assets,
book
values and
may reach V/2 billion dollars or
other items obtainable by an in¬
according to an analysis of
the industry just completed
by
the research department of E. W.
Axe & Co., Inc., investment coun¬
more,
$100 in the common
of
vestment
stock of each company.
Copies of this analysis may be
from
the
Tarrytown
obtained
sel, of New York City. Cash farm
income in 1943 will be more than
P. O. Box 147, Tarrytown,
Press,
The
Y.
N.
unless there are
is
cost
cents
45
per
failures, and normally such
a large income would bring about
sales of about 1.3 billion dollars'
worth of farm machinery. Produc¬
tion has been sharply curtailed,
however, so that both in 1942 and
1943 there has been and will con¬
tinue to be a large unsatisfied de¬
mand.
Since farm income will
copy—free to public libraries and
non-profit institutions.
probably remain high for several
years after the war, the post-War
Seaver
crop
for
the
shows.
•
"
The
•
study traces the history
at 40
and
listed
brokers in
and
dealers
as
unlisted securities. As¬
sociated with Mr. Seaver as man¬
ager
and
of
the
trading
Both
were
& Lucas,
ing
er was
1
department
Barmonde.
will be Philip T.
longer-range develop¬
with respect
such influences as the declin¬
probable
rate of population increase,
the position of the United States
in world trade in agriculture and
has formed
Seaver
Company
formerly with Cooke
of which firm Mr. Seav¬
manager
of the investment
department.
.
""r
.
equal
those of all last year.
bring the aggregate
to
of
amount
the
in
reduction
outstanding
bonds
price discrepancy that
has now developed the 4%s, 1980,
are considered by many rail men
With the
1st
to
'
*
progress
as
to
answer
an
all
.
of
Pere
though
even
the
ities.
Mar-1
belated
start must be considered construc¬
tive.
the
of 1st
outstanding as of
of last year, $40,556,000
Of
$62,276,000
Mortgage debt
the
was
end
in
the
1956
and
maturities
$21,720,000 was represented by the
4V2S, 1980.
Certainly a maturity
13 years
hence may hardly be
considered as a pressing problem
in relation to the broad objective
of
the
reducing total fixed charges to
and if issued V
'
*
ALL ISSUES
be made
of the
operations
time the
handi¬
were
capped by the changing over of
industry in the service area to
war work.
These plants are now-
producing at capacity. Net income
for the four months through April
more
than 180% above the
level of the like 1942 interval.
theory
the
that
in
more
James Bean Borden,
partner in
Sparks & Co., Philadelphia,
died after a short illness at the
J. W.
age
Mr. Borden began his
National
of Mount Holly, N. J., later
of 66.
business career with the
Bank
the staff of Charles A.
Co., railroad contractors.
associated with The
Tradesmen's
National
Bank of
joining
Sims
He
&
became
York,
possible
charges
interest" settled, it is our
on
New
rapid
through retirement of the lower-
"interest
,/'
James Borden Dies
and price
Lackawanna &
Western
Ry.
the
STOCK
.
f
SEABOARD AIR LINE
will
Last year at this
come.
road's'
It is pointed
reduction
level conservatively supportable
the question of
for
and
possessing particularly attrac¬
tive income
quette's long-term financial prob¬
lems,
far as earnings
this should
some
months
to
as
concerned
are
Philadelphia, remaining there for
potential¬ eleven years and leaving to set up
out that even
his own investment business, Bor¬
if the company continues on its
Fifteen years
recent course, and the 4V2S there¬ den & Knoblauch.
fore do not get the benefit of any ago he joined the staff of J. W.
company buying,
they will still Sparks & Co., becoming a partner
eventually have to reflect the im¬
ten years ago.
provement in the over-all credit
position of the property due to
reduced debt and charges.
At
the same time, there is always a
possibility that the management
will change its buying habits, on
made so far can
reorganization of the
as
41/2S.
opinion that Special Master Tazewell Taylor's Plan for
Minneapolis, St. Paul & Sault Ste. Marie Railway Co.
When,
depression conditions. Nev¬
Pere
Marquette
has
followed the policy, less effica¬
cious in bringing about the great¬
would
This
With
s 00
N. Y.
$1,578,468 was utilized for
purchase of bonds and a to¬
$2,259,000 face value was est possible reduction in interest
acquired. Based on recent market requirements, of concentrating on
prices it seems likely that the cur¬ the 1956 maturities, with the re¬
rent tender operation will result
sult that the 4s have pushed ahead
i n
retirements
approximately to a substantial premium over the
a
:
Incorporated
New York,
1-807
Street
of
The
with offices
Wall Street, New York City,
act
to
ment of the industry
to
H.
&
1935
under
the
tal
showing
year
ertheless,
hardly be considered as affording
Charles
Wall
is making
year-to-
far better-than-average
continue
Fort Dodge 4s
Frederic H. Hatch & Co.
63
a
1951
&
problem
that
.when
was
cash of
r
Own Investment Firm
Central 4s
Moines
Bell Teletype NY
in 1943,
net income of $3,569,000
1938
the
of
exception
$64,535,000 of mortgage debt,
represented entirely by the three
series of 1st mortgage bonds. With
Glias. Seaver Forms
v
'
^
Des
5s
would make more
of the 1956
refunding
Meantime, the road
*
(962
& St. Louis 5s
Central
Iowa
of
of
Mortgage
farm
,
1943
retirement
1934
5s
Minneapolis & St. Louis 4s 1949
changed the company had a total
7%*
machinery
industry is favorable, the analysis
outlook
the
NEW YORK
arises.
& St. Louis
Minneapolis
a
maturities
& St. Louis 6s 1932
Iowa
in
late
no
feasible
Minneapolis
of debt
bonds
priced
Minneapolis
regular serial payments on equip¬
ments.
When
the
policy
was
ing more efficient and lower cost
machinery.
It concludes with an
agri¬
analysis of the investment posi¬
cultural machinery, brought about
18 billion dollars,
been
York Slock Exchange
Telephone HAnover 2-1355
(in reorganization)
of
The deferred demand for
restrictions
Until
had
1-2050
Teletype: NY
ST. LOUIS RAILROAD
\
-
program
any
Members New
ONE WALL ST.
YORK
MINNEAPOLIS &
,
on
3-3450
NEW
Teletype NY 1-1310
Pere Marquette was one of the
of the marginal roads to
embark
STREET,
appeal of the
debt
For Farm Machinery Seen
government
WHitehall
farm
machinery, and the progress
scientific research in produc¬
WALL
McLaughlin, Baird & Reuss
The
bonds is not based
spectacular improvement
in its debt position such as has
been accomplished by such roads
as
Nickel Plate, Great Northern
reduction.
Good Post-War Outlook
by
1
any
there
1
LEROY A. STRASBURGER & CIL
Pere Marquette
tardiest
Invited
that the
of it is
investment
sudden
request
upon
•
all
without undue
market levels.
on
CITY, MO—Cecil E.
with
is
Harrow
has
'
cases
influence
on
associated
Inc.,
associated with Sills, Trox-
Minton, Inc., 209 South La
&
Salle
M.
MO.—Ilenry
LOUIS,
purchase
readily
issues.
same
Inquiries
the marginal car¬
ago
most
and in
CHICAGO, ILL—Orlin I. Wahl
now
of
Circular
Less
industry.
the bonds they wanted or could
handle
at
substantial discounts,
(Special to The Financial Chronicle)
State Na¬
is
'Special
'
the
Bank Building.
ST.
Y
:
the
1970
Mtge. "A" 4^s,
Income
prevailing levels for coupon bonds
changed in¬
towards
sentiment
railroad
entire
riers
Street.
Toronto
Montreal
Railroad
concessions below
dramatic evi¬
more
no
than
L.
Ralph
added
been
P.
—
1-395
Teletype NY
Boston & Maine
Registered Form
kt substantial
been added to the staff
has
IIAnover 2-0980
Y.
ST., N.
Bell
supply several lots of
can
In
prices.
of Ilaydcn, Stone & Co., 85 Water
Lean
WILLIAM
RAILROAD BONDS
and,
present very thin markets,
to exert too strong an influence
vestment
BOSTON, MASS.—Karl S. Mac-
We
has
with
There is
Auerbach,
slow
too
be
to
method
this
apparently
dence than this of the
prior thereto
and
local manager for
Pollak & Richardson.
was
52
New York
Previously the. road had been able
to acquire the bonds in the market
on
HART SMITH & CO.
1956, to exhaust $2,000,000.
1st 5s,
been
Chronicle)
Mr. Finu¬
with Harris,
formerly
was
Sun Life Assurance
1st 4s and«t>
tenders of its
for
call
but
MASS. —Harry Al¬
is with
Noranda Mines, Ltd.
The increasing difficulty being encountered by the railroads in
furthering their debt retirement programs through open market pur¬
chases had been highlighted recently by New York Central's action
in calling the 33/4s for redemption at a premium, and a similar call
for redemption of $18,000,000 of the Great Northern General "G" 4s,
1946.
The problem is now further emphasized by Pere Marquette's
Trust Building.
merce
cane
;
^
Minnesota Ontario Paper
a;
Tele. NY 1-2972
NEW YORK
Chronicle)
to The Financial
Halifax Insurance Co.
Teletype—NY 1-310
Bell
Kerr Addison
contemplate making additions to your personnel, pleast
particulars to the Editor of the Financial Chronicle for pub¬
KANSAS
J
V
Railroad Securities
,
you
send in
.1
International Utilities "A" & "B"
personnel;; items
:
.
Exchange
Exchange
Winnipeg G-rain Exchange
30 BROAD ST..
HAnover 2-6540
York
New
Stock
Louis
St.
Coffee
York
^Chicago Board of Trade . *
Chicago Mercantile Exchange
Commodity Exchange, Inc.
Pittsburgh Stock Exchange
Salt
Cocoa
York
New York Mercantile
Stock
Boston
York
New
Exchange
Curb
York
New
New
New
Stock
New
Fanny Farmer Ltd.
New York
\
public by the middle of June.
Our analysis
significance of this plan will be ready for
distribution
shortly thereafter.
bought
sold
•
'
quoted
ARNHOLD and S. BLEICHROEDER, Inc.
New York
30 Broad St.
WHitehall 3-9200
,
•
>
.<
V-
•
Teletype NY 1-515
E.-..
■
.
11. h. rothchild
co.
specialists in rails
120
broadway
COrtlandt 7-0136
Adams & Peck
63
"
■
n.
y. c.
Tele. NY 1-1293
Wall Street, New
BOwling Green 9-8120
Boston
Philadelphia
York
Tele. NY 1-724
Hartford
1958
THE COMMERCIAL & FINANCIAL CHRONICLE
Ohio Brevities
TRADING MARKETS
ip'.v''
in
Upward trend in Cleveland bank stocks has slowed but
theless several are at their best prices in years.
Cleveland
The
and Ohio Securities
most
sensational
Commerce
Teletype
Bldg.,
Cleveland,
CV 565
-
L
D
"
•
New
working
offer
Bank
of
Central
the
Union
Commerce,
bolted 30 points to
York City
proposal
National
would
have
U. Ss
;
Commerce
to
the former Union Trust.
Truck-Lines, Inc.
The of¬
of Delaware
fer, which was made by:letter to
stockholders, met with a cool re¬
Mansfield Tire & Rubber
ception on the part of Union Com¬
merce officials.
Common Stocks
It stayed at the
179 price for
member
a
of the
one
members
by
of the
board
She
Druckenbrod,
Wood,
Wallace
was
on
City Bank announced it
request
Ralph J. Perry, of
Bank, and Edward
Ritenour, of Lorain Street Bank,
viting
gotiate
OTIS & CO.
ESTABLISHED
Terminal Tower
the
1899
Bell
CHERRY 0260
to
Teletype
280,
CV 496-497
;
day
the
close,
Circular
on
in
been
275
Request
v
Union
Exchange
Commerce
Bldg.
!
the
it
local
a
.
V
u
of
week
Cleveland
been
not
Trust
Co.,
in
100 mark for the first time in six
and
currently is quoted
130
bid
and
140
offered.
Nat'l
Bid
4-
130
1
1
Bank
1
the
Nat'l
92
-
/•-.<
'•>'
15 Ys
-
-
_
■
able
city
12%
Council's
after
of
weeks
voted
the
utilities
5
of
to
public
3
against
purchase
by
Cleveland
the
Electric
ican subsidiary.
a
zens'
counsel
consider¬
the
as
gen¬
special
as
attorney-genera?
With
of
challenged
Paul
Dave
The
Armed
W.
He
state¬
Walter, chair¬
challenged Walter's predic¬
public
operations
ownership,
and
un¬
also
acquire the utility under the
pany's
city.
the
as
much
so
business
The city
only
legal
constitutional
CLEVELAND
is
of the
outside
law
con¬
com¬
of
the
the
was
prohibition.
''
s;:
Geo. F.
i:'v.J
Honors Woman
Cleveland
v
American
Institute
of
on
now
is sta-
1969)!?!'
page
Wagner Joins
R. Diehl Also With Firm;
CLEVELAND,
Cleveland
of
the
Banking
formerly
Union
Commerce Bldg.
CLEVELAND
Teletype CV-255
New York
Tele. NY 1-1541
Cincinnati
Tele. CI-574
this
month
Bank
of
with
them in their Investment
Depart¬
ment.
Mr. Wagner came to
Toledo
of
in
in
the
1914
Cleveland
to
Federal
join the
Reserve
the
capacity of, book¬
keeper i After serving .The bank:
in various capacities, he was made
.
Vice President in
1938.?! ;? !J
Mr.
Wagner was active' in the
Chapter of the -Instir
of Banking, serving as Presi¬
Cleveland
tute
dent in
1923.
Robert D. Diehl has also become
associated
with
idge & Co.
E.
A.
McDonald-Cool-
Mr. Diehl in the past
trading
with
manager
for Fahey,
Prior thereto he
was
Mitchell, Herrick & Co., and
Pierce
&
the community in question. These
were from Messrs. Left-
Ross, on their offering of
Knoxvilles, from Messrs. Paine,
Webber, Jackson & Curtis, on
their
offering of West Allis, Wis.,
and
from
Savings
of
1954.
the
Harris
Bank,
Trust
and
their
offering
This last bank,
at
This coupon compares with
2 % rate on a larger issue of
a
maturities.
last week
winning
And the bidding
especially close, the
being 100.286, the
was
bid
Second
bid
100.22,
all
100.28
for
and
V/z's.
the
Jacksonvilles.
time.
some
The
(Continued
Three
back
into
their
During the month
smaller
State
dollars
6%.
block
funds
Firm
Marathon Paper
Rhinelander Paper
U. S.
apparently
the
sold
on
own
Prt'g & Lithographing*
Local Bank Stocks
half
a
of
Ohios,
coupon rates of
Although
invest-
1969)
Trading Markets in
of the
one
sold
worth
on page
days
High premium bonds appear to
coming
•
among
third
than the Toledo issue.
be
'
tendency
$200,000 refunding bonds at 100.33
for iy2s, with maturities
running
from
1947
to
1956, or approxi¬
mately a two-year longer average
also.
on
least, may it be said to their
credit, has made it a practice to
show overlapping debt figures for.
later Youngstown sold an issue of
Glair S. Hall & Co.
514%
largest
an
der, nevertheless the bidding
strong and close.
Union Trust
Bldg.
or¬
CINCINNATI, OHIO
was
Phone: Main. 1433
Tele. CI 156
To close these comments about
small-? supply, it is
•
enlightening
note
that
municipals
the-total amount
shown
in
the
of
General
Blue
Machinery Com.
List has declined steadily to about
$44,600,000 at the close of last
Globe Wernicke Pfd. & Bonds
week,' a /decline for the month
of approximately
$10,000,000. It
fGruen Watch Pfd. & Com.
Ohio Dealer
W. D. Gradison & Co.
MEMBERS
New
York
Stock
i
Neto York Curb Associate
Dixie
Terminal
Building
?!
CINCINNATI
Cayne, Ralston &
Commerce
Building,
'1 i
i
Exchange
Cincinnati Stock Exchange
Literature
Co.,
Union
Tel.
!
Main 4884
prepared a, recent analysis
Mohawk Rubber Co. Common
st6ck{-copies of which
may
be had
UNDERWRITERS,
upon; request.
W.. D.
Gradison
&
Co.,
Terminal
Building,
Cincinnati,
Ohio;*, will furnish late informa¬
tion on; General Machinery com¬
mon,;, Globe
Werneke
BROKERS
and DEALERS
Dixie
/
'
v
.
'
•"
-i
•
"
f
'•
Industrial,, Public Utility
Railroad
and
Municipal
SECURITIES
preferred
and bonds, and Gruen Watch
pre¬
ferred and
common, upon request.
GlairS,
.Hall .?&
Go.,
W. E. HUTTON 6- CO.
Union
Trust; Building, Cincinnati, Ohio,
will
send
financial
request monthly
reports
on
Marathon
Paper and Rhinelander Paper and
will
Established
upon
supply
Stocks.
data?
on
Cincinnati
Members New
;
1886 .'.
York Stock
Exchange
First National Bank* Building
Cincinnati
Main
2560 "
Bell
«;
-
Teletype CIN 586
■
We
OHIO
Buy
And
OHIO
General Market
OHIO
~
Tele. CIN 68 & 274
Cleveland,
have
on
Bank
Co.
Municipal Bonds
Municipals
For Our Own Account
/
Collin, Norton & Co.
,
$656,000 To¬
as iy2S to
18
overlapping
wich &
Messrs. Halsey, Stuart & Co., with
maturities running from 1945 to
Cleve¬
land, has become associated
:
the
was
ledo issue sold May
Exchange, an¬
George H! Wagner,
Vice President of - the
SECURITIES
Exchange
of
supply of
especially acute. The
first large issue in Ohio to be sold
Stock;
Ohio P. S. Pfds.
request.
dearth
the
the direct debt of
as
OHIO—McDon-
Reserve
Toledo Edison Pfds.
Members Cleveland Stock
the
seems
Hickok Oil
M. A. Hanna Co.
L. J. Schultz & Co.
But
Ohios
as
that
nounce
Shown
circulars
ald-Coolidge & Co., Union Com¬
merce
Building, members of the
Clark & Co.
Chapter
and
MeDonald-Coolidge Go.
was
Teletype CV 383
the
.
Being
day recently, three circulars
well
to
director said
obstacle
*
forces
(Continued
contended that the city could not
stitution
of
manager
(In¬
others
It.vyay ipteTesting^ tojreceiyevon
one
showed
and
Corp. since 1937, has left for
the armed
of the
tions of profitable
der
Field,
Debt
debt
mostly vvith
Forces
and
More Widely
developed. / .In rfact;
vigorous this month
so
million
f
Overlapping
which
Properties,
handling legal matters for the
liquidator of the Union Trust Co.
Municipal Light Plant from
Association, chief advocate of the force
purchase.
Bank
Bank Stocks
upon
to
Federal
final
League,
ments
man
Information
had
Inc., and prior to that
com¬
Illuminating Co., North Amer¬
Teletype CV 67
(Common)
has
banking experience
17%
hearing a week ago,
Mayo Fesler, director of the Citi¬
<
of Arthur
27%
295
12
-
proposed
At
Cherry 3800
death
34
260
l-il-iV-
mittee,
'
Bldg..
the
eral counsel for Union
85
26%
'
_
hearings,
CLEVELAND, OHIO
Union Commerce
by
Young. March 26.
140
319a
s."
.
1
Asked
% '
83
City
Jan.
Jan.
Ledogar-Horner Co.
of
ton
Central
Bought—Sold—Quoted
F.
Bank
at
! ,-::.
.■
Trust
Jan.
Cleveland
caused
City
lie fills the vacancy
low:
?Union Commerce Bldg.
6800
National
Cleveland office of the First Bos¬
Merrill, Turben & Co.
Main
vice-president in;
of the trust department
a
Current quotations (May 21) as
compared with last January 1 fol¬
City
Tel.
has
charge
has
Muny Ownership Plan Dies
Investment Securities
been elected
Lindemann
of
of Cleveland
/;
S.
the
condition
offerings.
companies,
rise in prices
is constrained to wonder
one
like
the
consid¬
indeed plen¬
are
The expected
is
Tbledos sold in July; of: 1942 with
Cleveland.
proposals, also has
steady upward surge.
About six weeks ago it passed the
Union
-
chairman of the. women's
past
now
a
Jan.
•
Speaking
chapter, is secretary
the
Eugene
bank
involved
T
City Bank
is
the
two
or
of
committee.
a
merger
staged
CI.
Cleveland Trust Co.
Club
Public
of
$325
called
Women's
organized
surance
that
excellent
Supply of Ohios Especially Small
of the. group's Victory Chorus and
couple of decades.
last
has
around
Teletype CV 343
;
Nat'l
share.;
block
at
Druckenbrod
in
iff it has not been too fast.
Na¬
re-elected.
demand
therefore
that
Plan
Lindemann
Stock
years
CLEVELAND
Cherry 7445
a
odd-lot
the
Central
the
the
it has been
Bank.
Miss
see-sawing between 245 and
any
Cayne, Ralston & Co.
2027
small
a
offered
were
bid.
which
Member Cleveland Stock
During the
per
tional
Morris
be¬
The stock has settled down
and
,
in
and
some
-
$275
Brokers
stock
Stock
Bought—Sold—Quoted
y
at
fastest advance in
Mohawk Rubber Co.
The
out had soared
was
were
was
share.
Common
230
advance of approxi¬
there
the
At
ne¬
announcement
to
100 points.
transactions
stock
in¬
to
consolidation.
went
an
mately
was
Commerce
of
stock
fore the day
Cleveland
•
Phone
for
morning
(Incorporated)
v.,
Union
of
mu¬
is
nicipals, please take note.)
has
of the distributing
manager
distributing
therefore,
seem,
to receive further
who do not need tax exempt mu¬
tiful.
H.
department
of
erable, for funds
had
governor by the local
elected
busi¬
nicipals, found the supply of such
chapter.
Also
investment
securities exceedingly small. Con¬
been serving an unexpired term,
became The first! woman: :'ever > to
a
work
currently,
who
the
in
who returned in May to their
usual
Bank of Cleveland.
be chosen
market
ness
Dorothy Druckenbrod,
secretary to F. J. Zurlinden, first
vice-president of the Federal Re¬
Miss
would
engaged
is
serve
column^
indicated in this
was
last month, the thousands of men
of
about two weeks when National
Memorandums
I As
hard¬
electing
governors.
it
Central's
179.
permitted
liquidate at
about $225 a share and retain its
interest in liquidation of assets in
Union
her
out, proposing to pur¬
came
chase
Open Wire to Troster, Currie & Summers
■
has rewarded
the
O.
>:
War Loan Drive.
But with the return of the investment banking
fraternity to business in municipal and other securities, the rise in
prices has gone forward with renewed vigor.
i
,
By J. AUSTIN WHITE
Of course,
the outstanding feature of the municipal market dur¬
ing May has been the rise in prices. This rise started the early part,
of April and continued slowly and quietly
right through the Second
the
Co. j
,
; A little over a month ago, the *
stock.was quoted at 149 bid. When
r
,
of
the old Union Trust
1
Cherry 5050
500
stock
*
,
Members Cleveland Stock Exchange
Union
the
?:!
never¬
I This stock, following merger proposals by two Cleveland banks,
vaulted an unbelievable 130 points within two weeks in over-
cimsr^RussEUA
:
performer has been
Union Bank of Commerce, successor to
:
the-counter markets.
.1.
Ohio Municipal Comment
.!
,
Thursday, May 27, 1943
MEMBERS
..
New York Stock Exchange
Stock
Exchange (Associate)
Cleveland
Chicago Board of Trade
Associate Members New York Curb
Toledo
Adams 6131
Tele. TO 190
New
Field, Richards & Co.
Katz & O'Brien
Carew
York
BOwling Green
9-2432
Union Com.
Bldg.
CLEVELAND
Tele. CV 174
Union Cent.
.
A.White & Co,
Union Central
Investment Securities
Tower
CINCINNATI
CINCINNATI
Tele. CI 150
Tel. Main
0138
Tele. CIN
Bldg.
Cincinnati
Bldg.
Teletype
489
CIN
163
.
i
Telephone
Parkway 7340.
1959
& FINANCIAL CHRONICLE
THE COMMERCIAL
Volume 4575 "Number 4180
"Is The Market
High?"
(Continued from page 1955)
and rubber chemistry based
UNION BOND FUND "A"
a;
Co.
New York Title & Mortgage
Complete descriptive circular will be sent upon request.
41 Broad Street
<
-
.
creased.
'
1 evel,
New York
;
•'
appraising
N ro'N
morale
?ZC.
■
A,;
63 Wall Street, New York
CHICAGO
further
and
time
UNION FUND SPECIAL
Prospectus covering all classed
of stock on request
INCORPORATED
back one
the country's
survey
that
at
STOCK FUND "A"
Lord, Abbett & Co.
market
the
PREFERRED STOCK FUND
COMMON
UNION COMMON STOCK FUND "B"
Sfiy'-
look
might
yye
and
year
Teletype NY 1-592
Telephone HAnover 2-2100
UNION
'
".
in
So
Security Dealers Association
York
New
'
,
BOND FUND "C"
r UNION
.
ings if the corporate normal-sur¬
tax
is
to
be
substantially in¬
Seligman, Lubetkin & CoMembers
are
.
BOND FUND "B"
UNION
on
three clear ex¬
Taxes, too, are an
all-important factor in determing
the outlook for earnings, and as
an instance of this, one must keep
in mind the effect on utility earn¬
synthetics,
amples.
series c-2
Incorporated.
UNION
I.OS ANGELES
JERSEY OITY
give weight to the investors' de¬
sire to retire from positions that
a red light ahead and add
positions where large develop¬
ment
and
expansion are indi¬
show
Real Estate Securities
cated.
Hotels
Post-War Future Of New York City
advance in
City hotel bonds are still continuing to
New York
.
is
more
on dividend returns
less needless.
For
or
keeping with the continued increasing.trend in hotel business.
The natural question on everybody's lips is how long is this
dividends stem from earnings
of affairs going to keep
the war is over?
ings influence dividends,)
Generally speaking, now
than
the
after
ever
we
1
a
war.
theory is based on several
This
factors—among which are the fol¬
list of those on which
securities
Allerton,
Ambassador
Travel
Vacation
of
Resumption
laire, Beverly, Brierfield,
Should Certainly Aid New York
Broad¬
doubt but
thousands of people seek¬
that
ing
is
there
for their savings
outlet
an
consider
.will
no
with its magnitude and
variety, should be a Mecca for
York,
these visitors.
and
York
New
L
Post-War
a
Shipping
Boom
Ralph H. Tapscott, President of
the
Edison
Consolidated
<
Co.
of
New York, recently stated:
that have pre¬
from being a
will prevent it
serious post-war
"The very factors
5
war-boom
town
having
from
a
slump.
town.
will
ties
Consumers'
,
obligations;—a sheltered category
were
Holland, Holly, Hyde Park
King Edward, Lexington, Lombardy
:rjf;, f-yP ¥:;¥ Va'
Madison, Mayfair House, Marcy,
to
early
tal
effects"
were
for
industry.
#
protect a portion of one's capi¬
against the sudden and un¬
expected arrival of a world down¬
trend. The balance of one's funds,
in this category we
size
have
would empha¬
high-grade oil stocks as pro¬
tection against inflation, and we
would ; mention,
too,, companies
and ^industries that are featured
provide the investor
with protection on two fronts;—
safeguarding his capital against
both inflation and. deflation and
with
m
abil¬
when the
*
*
*
Iff
40 EXCHANGE
Bell
for space at
vwood
x
the
Prudence Collaterals
of air¬
tremen-
surge
come at
Huge cargo
will
carrying thou¬
be
to New
sands of tons of freight
s
commerce.
Tropical fruit will .come to New
York
by
giant
cargo
airships.
industry
the
investment
radios,
furniture, rugs and carpets, wash¬
ing machines, arid other house¬
hold^ appliances,
production of
System Teletype 1-1942
'
,
•
R. M; Horner Co. To Have
Branch In Albany, N.
i
M.
R.
Broad
Horner;; Co.,
investment
■
Y.
been
has
duration: ;
;
and
daily
predicted
York to
hourly trips from New
London
a:.Some
bonds
than
a
of
30
Street, New York City, will
a • branch
in - Albany,
Residential
that
are
been
.
City
more
hotel
popular
However, there are
many
Edwin
and
hut
less known issues
worthwhile.
For
your
of
was
F.
Coffin.
formerly
an
George R. Cooley &
Mr.
Coffin
was
in
Co.
in
the
New
R.
York
upon
we
are
enumerating
Prospectus
classes
I
Inc.
Request
~
DISTRIBUTORS
GROUP.
63
on
Incorporated
YORK
WALL STREET—NEW
of
percentage
m
DIVIDEND
x
;
price ad¬
of each class of Group Se¬
to
much
more
end
with
Horner
office
as
cashier will be James M. Halliday.
of
16 month
period.
divergence—how
wide
the
the
from
inc.
date—a
Note
'
'/.U-''
profitable some groups
than
the averages.
"Note also that the stock groups
which
1'\Vi
have
placed most
emphasis are at the top of the
list
in
performance—Investing
Company
Shares,
Automobile
Shares, Petroleum
Shares, and
more recently Low Priced Shares,
r
"We have based such emphasis
we
Prospectus and additional
data obtainable from your own
investment
-
dealer,
orX from
CALVIN BULLOCK
Established 1S94
One
Wall Street, New
York
ill the past on. relative underval¬
uation. -.The industry which alrriost
is.
invariably gives best results
that is unpopular at the
one
time,
but
unpopular
for
reasons
that do not stand up under inves¬
tigation
and
hence
"
"That
is
exactly
undervalued.
the present
situation of the steels.
Keystone
The stocks
Custodian Funds
Certificates of
mail
beenj
X-Xxx.:
Participation in
Trust Funds
investing their capital as
follows:
CPPTPC
study
B-l, 2, 3 and 4 in
& Co.
bonds
Series
request.
K-l, 2 in Preferred
Stocks
Series
F. L. Blewer
Co., Inc.
M.
which
Copies of this interesting
be had frorn Shields
officer
connected
with
building
companies have long
dominant factors."
;
Now A Major
Captain Francis L. Blewer, a
partner of W. E. Burnet & Co.,
11 Wall Street, New York, mem¬
bers of the New York Stock Ex¬
change, has just been promoted
4
convenience
20
Mr.
Amott, Baker & Co., Inc.
Associated
for the
order
75 State Street under the
management of Walter H. Eisen-
Eisenhut
York
New
others.
great
Paris.
and
have
even
to
in the sale
The memo¬
enjoy a big revival and
indirectly; stimulate demand for
numerous
household furnishings
recently and;; appliances
'firm
banned
may
He
Group
should
maintain
N. Y., at
From
standpoint, how¬
Exchange.
accessories;" refrigerators,
which
formed
of
volume
huge
present
its
augment
to
York
vance
on
of
"A tremendous pent-up demand
will have accumulated for auto
that will
.the end of the war.
planes
Bell
de¬
;
Dlgby 4-2370
39 Broadway, N. Y.
prosper
the study reveals, the chief
appeal of these companies lies in
their post-war outlook.
CO.
&
SI EG EL
most important
plane commerce is the
1970)
Shares
and
price ad¬
for each-class from Dec. 31,
curities,
ever,
I
■
-
TITLE CO. CERTIFICATES & MTGS
aspect of the new form
J dous
other
XxXX-X,.... and all
estimated that 900
that the
Inc.)
on page
Securities'
the
have been
the
A-18
'
planes will arrive at and depart
from the airport every day. He
stated
to
New York Stock
field
be five times the size of
present municipal airport.
He said it is
:
F1
Series
pointed out that the new
will
Group
shows
the
lists
randum
1941
companies
order
continue
study
C2
N.Y.TitletMlge.
La Guardia
City, Mayor
York
participating
Group Securities.
published
by Shields & Co., 44 Wall Street,
New York City, members of the
BK
New
Queens,
in
Bay
dealers
of
Distributors
from
dum
spite the hampering influences of
the war economy, according to a
War
the vast new Idlebeing built on
mail
Leading
should
Airport
Jamaica
•
Stocks,
A Class of Group Securities,
A good
;
day
vance
Enjoy Good Outlook
application
receiving
is
ready
York
(Continued
an
Mail Order Cos. Should
Teletype NY 1-953
disclosing that the city al¬
In
re-,
Shares
field as in:
other—and sales policies
been largely tempered by
"Here is the record of
Active Markets
Commerce After the
has.
their
in
follows:
DIGBY 4-4950
PL,N.Y.
City's
Raise
Co.
with
&
stand
this knowledge.
Membert New York Stock Exchange
other State or any other
port can compete with or belittle
the great advantageous and the
fine modern equipment for ships
in our port."
Will
on
Long
-
SH ASK AN & CO.
1 "No
Airports
depend
to
New
1941, to April 30, 1943. The per¬
invest¬ centage gains ranged from a high
ment policy with due regard for of 201.9% for the Investing Com¬
the,. popular proverb that . "The pany Shares to a low of 4.6%
unexpected
always
happens."— for the Steel Shares.
The memorandum comments as
Ralph E. Samuel & Co.
SECURITIES
cur¬
attempt
always - follow
would
rently to be assured of their
New
no
quick r and
nimble
investment
changes to meet the sudden ar¬
rival of the unexpected.
For we
to
W.
same
General Bond
invest¬
The
is afforded by a recent memoran¬
and a
the
to the
divisionVof this
.
that^
(Although we
note incidentally;
"after¬
by dynamic, growth possibilities.
type should
REAL ESTATE
of
,
example of the presentenlightened attitude toward
the sales problems of the industry
A program
concerned
not
speqt to the Steel Industry Series
learned that
customers are just as
important
like
Hugh
taken
companies
any
Parkside, Piccadilly
:!
Ritz ,: Tower,
St. George, Savoy
Plaza, Sherry Netherland ;a'a
Taft, Tudor, Victoria
a
Waldorf, Wellington, Westovers
TRADING MARKETS IN
that
disastrous
almost
is
policy
the
but
sponsors,
satisfied
equities, and
sales
highly satisfactory
the
be invested in sound
Royal,
resistance"
ment
Olcott, Oliver Cromwell
Park Central, Park Crescent, Park
during the war, are all holding
their leases in the Port of New
/'
well
¥2 to %, we should think can
\>
should
policy does
a
Steel
recommendation.
it.
The immediate effects of this
"least
;
sell
to
recom¬
on
this time."
column
This
We
emphasis
with the investment merit of
emotions instead
protecting him from them.
government bonds and high-grade
New Weston
sell
market.
the
special
Shares at
and
George
Washington,
Governor
Clinton, Gramercy Park
behind
mend
best results for
the investor—it preys on his in¬
of
,
-
undervalued.
meant
to
by Steel Shares are sharply
They have lagged
held
the
produce
capital in the form of cash,
pointed out that foreign
steamship companies, which have
been forced to discontinue service
ity to resume business
war ends.
He said:
not
would
Fran-
Street,
easiest
Unfortunately, such
of his
-
This
easiest
was
was
44th
Avenue,
con ia
goods
rent
follow
it
5th
Mayor
paying
to
when
experience
cease."
are
investor
an
proper
what
for the past year or two,
be to keep from >k to V2
A-. -,.:..
Mayor La Guardia also made
an
interesting comment in this
connection.
On
shipping,
the
and
a
certain
that
true
resistance.
least
selling
now, as
a'a*
1
Yofk
that
of
a
when hostili¬
demand
in
be
our
modbrate-term
industry or that.
feel
for
of
Elysee
New York is a consumers'
goods
this
would
We
f
pattern
is
followed ; conservative
sales policies from the very be¬
ginning, the tendency in the field
generally was to follow the line
course
York
New
vented
more
once
it
While
sponsors
Dorset, Drake, Dryden
New
holiday.
a
question,
of
Performance records for
years reveal a high and improving quality
of investment;:
management. But even more significant are the changes which have
taken place in the sales policies of representative sponsor- organiza-1
tions.?
: x
x:;xx/.^xvx. "■
"saleability" rather than investment value.
recent
the
or
for
outlook
Chesterfield, Croydon
that
is
future
economy
moor
the increase of national
With
income,
the
dict
Beacon, Bel-
Barbizon
Bancroft,
earn¬
going through
transition years.
No one can look
ahead and with any certainty pre¬
are
lowing:
emphasize
world
the
and
early days when portfolio selections were often made on the basis
definitive
no
to the definitive
would
we
that
publicly held:
Hotel
Abbey,
Alden,
influence
that
find that there is
answer
better
being
business
hotel
the
factors
the
opinion is that there is a good chance of
writer's personal
The
state
Will this type of business decline when
up?
long way from those
The investment company field has come a
(Comment
*
i
Investment Trusts
to
4-Vfc^v
v» o v~\
lr
/"\-p
1\/T 01 AY*
S-l, 2, 3, 4 in Common
Prospectus
from
may
authorized
be obtained
dealers, or
The PARKER CORPORATION
ONE COURT
ST., BOSTON
Stocks
obtained Jrom
local investment dealer or
Prospectus may be
your
The Keystone Corp. of
50 CONGRESS
Bos ion
STREET, BOSTON,
MASS*
1960
THE COMMERCIAL & FINANCIAL CHRONICLE.
Michigan Brevities
Specialist in
1,
4
i
'j
•
•
•
.
-
,
•
A
Municipals
-
'
-
-
.
\
•
Members of Detroit Stock Exchange
port
bridge to the downtown
district.
While taking a normal civic in¬
terest in the project itself, many
were
NEW YORK
even
potential
the
interested in the
more
effect
of
such
of the
revenues
plan
on
bridge.
The great structure was com¬
pleted in 1928 at a cost of about
$20,000,000
Tecumseh Products
Company ;
the start.
of
on
stock
Penobscot Building
DETROIT
Cadillac
,V
•
for
the
First
each
$1,000
principal
accrued
given
warrants
at
$12
to
off
revenues
from
year
the
buy
share.
a
to
international
but
airport
too
was
the
stock
around
was
Members
Detroit Stock
in
both
Exchange
the
tangible effect
which
continues
to
$5.
Detroit
and
investors
many
in¬
in
far
bridge see it
recouping. '
plan
support
Canada
in
is
the
the only hope for
as
-
Cadillac 5752
In
DETROIT
contrast
Detroit
week
and
in
to
the
bridge,
the
Windsor
Tunnel
last
reported
a
net profit ' of
compared with $175,593
The earnings were made
$190,932
1941.
■
Banking circles, with the
cessful
War
Bonds
conclusion
Loan,
plans
for
of
busy
were
the
the
annual
Bankers
Association
which
scheduled for
is
suc¬
Second
making
Michigan
convention
Mackinac
Island late next month.
Miller, Kenower
&
the
island.
'
and
out
expected to at¬
are
tend.
3262
Reflecting the steadiness of the
general
banking
picture,
leading
Detroit bank stocks continue vir¬
King-S^eley Corpn, Com.
Refineries, Inc., Com.
Federal Screw Works, Com.
Vinco Corporation, Com.
Graham-Paige Motors
tually unchanged in the last 30
days, with brokers reporting little
activity.
Leonard
Election
of
Bert
Vice-President
T.
announced
and
Fred
Detroit
Stock
SECURITIES
625 Penobscot
•
Exchange
Building
'DETROIT
E.
Van
Al-
styne, President of the Wyandotte
Savings Bank celebrated his fif¬
*
R.C.O'Donnell& Company
Members
the
institution.
*
*
Announcement
by
President
John Robinson of the West Mich¬
igan Consumers Company that his
firm may build a 60 mile, 8-inch
pipe line from Muskegon to the
City oil field, created some¬
what of a stir in Michigan oil
and gas circles.
If
the
proval,
Dealers
Contact
us
up-to-date
information and markets
on
Michigan securities.
project wins WPB ap¬
it will permit utilization
of
...
for
estimated
the
24,000,000 foot
daily gas production in the field.
A casing head plant, which would
remove
gasoline Nand
sulphur
Members
Members
be moved from the
..
.
,
Grand
,
812
Buhl
for
Bldg.
Detroit
Teletype DE 167
the
last
six
tempting to work out
,
volume
were
months
at¬
a conserva¬
:f:
*
*
that
the
increase
and
that
the
if
ing
piece
circles
of
also.
news
for
financial
Building
DETROIT, MI( II.
will have been achieved dur¬
000
ing the fiscal
for
year
an
all time
record.
expenses
to date total
$120,106,comparable period
a
charts with tech¬
whose ability I
respect, to discover
to
as
what the
market had done but what it
will do from here
*
for
for my com¬
always found
lonesome affair. I
like
people
to
If
me.
many
too
with
the
right of
of
But I can
Maybe not
way.
myself.
well
I
as
should
like
enough for the time be¬
*
'
*
V
*
A/A'A.
tive
Committee
voted
upon
annual
i'fi
«
.
„
-1
meeting in Sep¬
is
the
slate
to
be
Ward, Delafield & Dela-
E.
Rhinehart, Eastman Dillon.
Harold C. Shea, Fahnestock & Co.
Henry A. Barclay, Carl M. Loeb
Rhodes
v
Harold
&
Co.
Strohm,
nard & Co.
Stillman,
May-
i
Benjamin Powers, P. P.
McDer-
mott.
Spencer'
thony.
Walter
.
■
be
field.
A.
through recent highs.
If
they did you would have to
•
to
Association's
;
Kenneth
up
t
SjC
»■;
who
on:
tions.
*
21
nominees
the
at
business
Following
voted
John
■
of
tember.
of my recent col¬
I wrote that it was
pos¬
sible that stocks would
go on
one
slate
a
up
this group will have
charge of
selecting the officers and Execu¬
explaining anything
I'll relieve your suspense by
saying the market now looks
higher. Now for the explana¬
In
from
make
the 1943 Nominat¬
ing Committee. Those chosen for
but
ing-
Before
will
begin looking
Yet I can't argue
railroad train that has
a
protect
as
agree
exit.
an
well
on.
*
*
advisory
recommending pur¬
chases. In fact, there are
just
services
a
members
too many
are
with
going over
nicians for
At its regular business
meeting
June 9, the Association of Cus¬
tomers' Brokers will select nine
on
entirely
them do then 1
(Continued from page 1955)
much
Nominating Committee
too
many people in this market
wearing rose-colored glasses.
don't
Whyte
Savs-~uAAA-;-:Ac;
a
are
trading
Walter
so
are
too many bulls
fort.
I have
Tomorrow's Markets
have
There
All Markets
Receive Slate For
contrary, it indicates
flies in the ointment.
?
ivate Wires
J*
Ousters' Brokers
spell "bear market."
opposite. B Yet there
There
against
as
the financial statement
year,
not
Telephone
Randolph 5625
of $178,000,-
revenue
Phillips,
Tucker
An¬
Gordohn, Newman Bros.
&
Worms.
umns
Edward
Bender, Steiner Rouse &
Co.
B.
Eaton, Gude, Winmill.
Graef, Shields & Co.
Alfred W.
Frank
S.
Slee,
Merrill
Lynch,
beginning of April, pay more for them but the
Pierce, Fenner & Beane.
added cost would be a kind John
V. Jewell, Jr.,
everybody was cheer¬
Green, Ellis
of insurance.
& Anderson.
Well, the time
ful, I began warning readers
Chester B.
has come.
And here are the
Keating, Stern Lauer
to get out of stocks.
In the
& Co.
column of April 1 I called at¬ stocks.
Allen B.
Kendrick, Burton Cluett
tention to the prevailing ram¬
& Dana.
Buy Raybestos-Manhattan William E. Kohn, Josepthal & Co.
pant bullishness and advised
John S. McLean, Laidlaw & Co.
at 28Vi to 29;
readers that ".
a
onestop at 27. Buy
Arthur S. Mawhinney, Auerbach
National Distillers, 30 to 31;
point minor down-flurry of
Pollak & Richardson.
Buy Newport Elmer W. McCarthy, E. W. Clucas
today can easily turn into a stop at 281/£.
& Co.
Industries, 15 to 16; stop at
major break of tomorrow.
Maurice Glinert,
Hirsch, Lilienif there is any time for the 14. Buy Bethlehem Steel, 64thal & Co.
new
65; (stop at 63.
Incidentally, Samuel Brown, Whitehouse & Co.
buyer to tread cautiously
on
that time is today."
your last trade in BS you
Stocks,
in terms of Dow averages, got out at 64 with a 5-point
Situations Of Interest
were
then selling at about profit.
Buy Certainteed, 21Federal Machine & Welder C
136.
Buy U. S. and
By April 13 they were 22; stop at 19.
Purolator Products,
Inc., off<
down to 129.79.
Steel, 54-55; stop at 53.
(In attractive
the
In
when
■
.
.
.
* v
*
*
.
-
.
V'v
last
your
trade
X
in
possibilities,
you
to
accordir
Reynolds & Co., 120 Broadwa
York City, members of th
New
April 8 I bought it at 50 and got out
sharpened my previous warn¬ across 58.) Buy U. S. Indus¬
trial Alcohol, 34to
35J/£;
ings by flatly advising readers
to cash in paper profits. What stop at 33.
Buy Youngstown
these stocks were need not be Sheet and Tube, 341^ to 35 V2;
gone into here.
You can dis¬ stop at 34.
cover
them easily by refer¬
As to where
any or all of
ring to the "Chronicle" of
cular
that date.
the firm believes offers
attractive
In the column of
:
•
,
,
these
are
upside
likely to go
doesn't
got out with difference
yet.
profits this column has seen
their up-trend
fit to keep you out of the mar¬
ket.
But
since
mid-April,
stocks, instead of going down
me;
on
make
Ever since you
some
the
much
But it isn't
York
worries
So to get back to the
Stock
Exchange. Ii
upon the*
companies may be had from Rej
teresting basic reports
nolds & Co. upon
request.
Clothing Stock Looks Good
An
interesting descriptive cir¬
Fashion Park,
Inc., which
on
possibilities,
for
has been prepared
distribution by Simons, Lin-
burn &
Co., 25 Broad Street, New
City, members of the New
York
that
it's their possible down¬
trend.
New
York
this
Stock
Exchange.
circular
may
be
Copies ol
had
Simons, Linburn & Co.
from
upon
re¬
quest.
more,
about 135, spent
,
the Dow averages
Four
hit 139.30.
days later they sold off
to 136.13.
The improvement in Michigan's
financial position was a hearten¬
639 Penobscot
de¬
on
.
tion gas program for the field.
Detroit Stock Exchange
Chicago Board of Trade
SECURITIES
equally impor¬
crawled back to protection
I
spoke
about
almost all of
above, don't forget the stops
April between 133 and 135
Rapids field to Reed City.
are
put in for a purpose and
and in the beginning of May
The state oil advisory board is,
-d
™
in
not just for window dressing.
the
supporting the project and has stated up again. By May 10
would
been
Roney & Co.
does not
like
it continues at the present rate, a
general fund
,
Wm. C.
the
Reed
CHERRY 7040
INVESTMENT
*
volume. There
when
On the
expectations
Haberkorn
of
Surety
Savings and Loan Association was
as
tieth year with that
INVESTMENT
over
.
many
A number of New
York bankers
Detroit, Michigan
RAndolph
sold
are
taking the D. & C. boat, which
a regular cruise service
are
to
Building
Teletype DE. 475
Trains
operates
Company
Penobscot
said
Brown
as
from gross revenues of $881,693.
^'v
* 'A
*
*
Michigan Municipal
period
and
ill-fated
* M
was
was
days
a year ago.
exceeds
and freight revenue from
senger
However, the airport
receiving
considerable
Buhl Bldg.
$358,000
approximately
What
tant
m
cline
new
$417,000 . in
the previous
year,
earnings slumped to $95,954.
Prospects of considerable pas¬
sell
& dolphyn
were
Members of Detroit Stock
Exchange
again began j. to
May 20 the Dow
On
*
;
showed.
future to have any
Mercier, McDowell
10-month
period
the old
stockholders
Charles A. Parcells & Co.
trend
fiscal
last
common
their
industrials crossed 140.\
monthly
terest of the debenture bonds and
on
Request
Mortgage
;
..
rails the indus¬
looked ominous but in
summary of the
standings showed retrospect it is seen that most
general fund receipts for the fis¬ of the
volume occurred on
cal year beginning July
1, 1942
are now $142,960,081.
This repre¬ days of strength, not on weak¬
sents a gain of $7,175,060 for the ness.
Frankly, -such action
His
state's
Operating
an
Latest Information
issued to
was
a year ago.
$119,946,805
393 during
triguing
on
This
and
With
Common
de¬
April
once
climb.
Auditor General Vernon Brown
thereon, 2 shares of stock for each
$1,000 principal amount plus in¬
last
National Stamping Co.
1
,
announced that general fund rev¬
enue for April was
$1,880,920 over
interest
stock
9685
in
bonds
the basis of 16 shares of
amount
Keane & Company
from
money
the
stock.
holders
Bought, Sold, Quoted
lost
fault, the company was finally re¬
organized in 1939 and the entire
capitalization consisted of new
Bonds
2056
but
With
common
Common
•
the
reversed
and
an international airport to be located in
Windsor,
the Detroit River, calls for sealed highways connecting
to
the
International^
across
Bridge and limited access high¬
ways from the Detroit side of the
fhtsv op Michigan Corporation
*
in
trials
plan for
just
the
DETROIT
made
became airport conscious in a big way
during the last
and of the several plans for municipal, national and inter¬
national airports, the financial district took considerable interest in
at least one.
;
more
30 days
Michigan
,
instead of going down some
to confirm the new low
|
Detroit
Thursday, May 27, 1943
was
*
at this
*
point that the
;
.
\The
*
It
More next
article
time
V ;
views
do
not
coincide
c^rnviolo
picture began changing. For1 those of
Thursday.
—Walter Whyte
expressed
in
necessarily at
with
are
those
of
this
any
the
nroopnted
the author only.]
as
A. O. Foster In
Albert
Hospital
O.
Foster, partner in
Foster & Marshall, 1411
Fourth
Avenue, Seattle, Wash., members
of the New York Stock
Exchange,
is
in
the
Maynard Hospital at
Summitt
&
University, Seattle,
where he
was
operated
stomach ailment.
be confined to the
least
a
month.
on
for
a
Mr. Foster will
hospital for at
;
THE COMMERCIAL
Number 4180
Volume 157
The Securities Salesman's Cornet
Opportunities For Salesmen In Stocks
*
Canada Manufacturing
of Post-War
1961
& FINANCIAL CHRONICLE
We "offer,
subject'.
"
•
$250,000
Beaches New Peak
Dominion of Canada Gtd.
April, manufacturing activity
reached a new peak,
V In
Industries
Canada
in
Issued by
majority of indus¬
trial plants operating at a level
above
their rated capacity, the
Bank of Montreal reports in its
"Business Summary" dated May
Can. Nat. Rwys.
'
: "
with the great
Some weeks ago
the salesmanager of an
aggressive retail organi¬
he would put on a /'new account campaign,"
his opinion that the opportunity was right for it today.
zation told us he thought
because it was
which was based
completed a mail campaign
Last week his firm
41/2% Bonds due 1 September 1951
Price
111.25 and interest
Wood, Gundy & Co.
the "return card" approach. The salesmanager's predictions 22. The review further says:
"There has,
however, been a
out by the results. There-is more interest in securities
Incorporated
today than any time in years. We were also told that due to the slight decline in the operations
of the primary iron and steel in¬
14 Wall Street, New York
smaller number of salesmen now engaged in the business that people
.are
more willing to talk—they are more willing
to have salesmen dustries and also of the cotton
Bell System Teletype NY 1-920
call—the competition isn't so keen!
This paves the way for better mills. The clothing factories re-'
main busy with war orders and
'interviews and resulting opportunities for business,
the packing plants are well em¬
There is also considerable interest in the securities of companies
ployed. There is a shortage of
whose products are; likely to participate in postrwar developments.
beef and rationing. of this and,
•It seems, likely that if you are contemplating a "new account drive"
other meats will begin, under a
By BRUCE WILLIAMS
.
that such an approach would have a strong appeal at this time.
coupon system, on May 27.
Pro¬
•Plastics, electronics, aviation, televisiohy air-condition and companies duction of
The Canadian Excess Profits Tax did not go into effect until
newsprint continues to
:that might participate in the new housng developments of the future
Hence, last year it applied only to earnings for the final
be somewhat lower than in the July, 1942.
•—these are the knd of securities that have sales appeal.
six months.
This year the full burden of the tax will be felt and the
upon
borne
were
Canadian Securities
v
..
•
.
A few reminders
might be in order,
however, if you plan such
experience we have found the following
'procedure brings the best results. (1) Select one security of a
"single company instead of several—concentrate your efforts: (2) Pick
:a company that is not only statistically right from an analytical
-standpoint, but also having a background that can be "romanced."
(3) Get behind the figures and dig out the "color" for that is what
people- want to buy. (4) By all means sell, yourself fir strand'by this
■method' of seif-conviction you will be able to convince, others.
•(5) Set up-an attractive pre-mailing using the return card approach:
v-(6 > Follow lip every lead arid be - ready to tell" your story .in such:
van interesting manner that you/will either open an accountjor^mako
•such a giood"impression that'future business will hatlirally 'follow.* J
From
campaign.
a
our
*
*
For
some
years
interested
much
in
know that a certain dealer has been very
progressive company that has been rapidly
we
a
corresponding period of last year..
contracts
March.
try remains very active.
;
"Retail trade, despite the limita¬
are
Sprague Vice-chairman
Of NYSE Governing Bd;
hands
That's what his clients did when he showed
to them.
They were interested in this new plastic, they wanted
know more about the company that was making it, they wanted
know if it was profitable, what the future was for such a product—
thousands of shares of stock in this company over a
period of years from this dealer. He knew his story and he knew
how to tell
it well.
'
" *
The
profits.
pre-war
in
' ' >r~.
to all-out
production is preserved
reason
of the 20%
refund
by
which is to be made
time
after
the
will
interest
EPT
on
some¬
Although
war.
-
bulks large
war-stimulated
many- cases
the
all
In
-
refundable
1943
will: exceed
tax
for the year.
An
outstanding example of this is
Robert Mitchell Co.;- whose
re¬
fundable tax is estimated at $7.30
earnings
per •
compared
share
■?
with 1943
$1.35.
estimated net earnings' of
There is also the larger
gain to
which
welfare
national
a
wartime tax program con¬
sound
tributes by
checking inflation and
preserving the national credit. Ca¬
no
be
nadians
themselves
shown
have
to be
acutely conscious of the need
to keep their financial house in
been a member of the New York
Stock Exchange for 24 years, was no definite time for its repay¬ order during the period of war¬
elected
Vice
Chairman 1 of the ment has been set, present Gov¬ time stress./ Moreover, the meas¬
have taken are de¬
Board of Governors at the first ernment policy indicates that cor¬ ures- they
meeting of the new Board on May porations will be unrestricted in signed to prepare them for < the
20. He succeeds John A. Coleman, their use of the money when re¬ opportunities which the post-war
world
will vafford.
•
''
Taxing
all
who recently was advanced to the ceived.
who
Sprague,
Raymond
Chairmanship of
the Board.
paid on the re¬
fundable portion of the tax and
has
"
Mr.
With
Sprague was a member of the
Board of Governors from 1929 to
"excess"
100% EPT cutting in on
a
while
corporate earnings at a fixed level
•
corporate profits now
permitting
companies to
is
,
build up large post-war credits
(116%% of the pre-war average),
There are many companies today that will lead the field to¬
1938 and was again elected a Gov
the 40%
normal income tax re¬
-morrow. Those of us who have watched the history of the public's ernor in
May, 1942. He was born duces the net profit which a com¬
-reactions, particularly over the past twenty-five years, can be in New York City in 1887. En¬
pany may retain to' a maximum
assured that the cycle theory of the past lp still valid. Many people
tering the brokerage business as of 70% of its pre-war average
who were expressing the opinion two years ago that they wouldn't a eollateral lodn clerk, he became
earnings. v In
other words, re¬
'buy a security for love nor money have forgotten all: about their a partner in the firm of Drake1 gardless of how large a company's
gloomy predictions and are today interested in making investments Brothers in; 1918, which
partner-j earnings are before taxes, the ef¬
V; in securities. -V This is the TIME TO TELL THEM YOU HAVE WHAT
Ship he continued until the disso¬ fective ceiling on its net income
THEY ARE LOOKING FOR. - / •
lution of that firm in 1931. Since is 30% below its average earn¬
*
practically
companies.
1936 to 1939 constitute
moderate financial
,
EPT refund. This item
the
they bought
*
average
fixed percentage
a
incentive
and examine it closely.
to
of
four years
lines of
many
A
worthless."
to
in
supply
of
excess
net
sample. One day he showed us a small dark;
brown, square of plastic material and he said, "See this stuff, it's
weight for weight as strong as steel, and all made out of by-products
'it
of
in
.
cal-^-
earnings which
goods, is being maintained at a the base period used to determine
company's ^average
pre-war
high level; - its... dollar value in a
A company may earn
March, the latest month for which; earnings.
data
are
available, being 16%; up to 116%% of its pre-war aver¬
higher than in February and 5%; age before it pays any EPT. All
earnings in excess of that per¬
higher than in March, 1942."
centage are taken by EPT.
'usually procures a
:
It's 100% of
culate.
tion
is simple to
Canada's EPT
compared with $11,110,600. in
The flour-milling indus-j
as
divi¬
affect earnings-and
question, naturally arises as to how it will
dends of Canadian corporations.
'
April, the value of construction
placed was $16,047,300
In
expanding into the chemical and plastic fields. He keeps a close
tcontact with this firm and whenever they have a new product he
-they used to throw away because they thought it was
You couldn't resist the opportunity to take the stuff in your
•
a
logical and important phase of
the over-all program.
'
NASD Governors Held
'
that time he has
Inflation—And The United States
frighten
o
about
people unduly
of their cur¬
at the bottom of a
the
the stability
rency.
For
can
be
Dr.
to play
Hirsch
describes
some
Chairman
Coleman as
in these
reported
was
columns May 13, page
1776.
the evil he saw
enables
ceiling
•
•
of
done.by this devil New York Stock Exchange
sharp inflation is the people's loss
in Germany. He saw his father's
3f confidence in their own money.
Weekly Firm Changes
Sometimes, they lose confidence, insurance, representing '■ his life
The New York Stock Exchange
savings of 50,000 marks (about
is they did in Germany, because
announced
the
following
paid with two postage has
there is no longer any reason for $12,000)
weekly firm changes:
■•onfidence. But it is also possible stamps—and some months later
saw
one
of these stamps go to
Logan B. Gill, limited partner
to
make .them lose confidence
marks in value.
He in Crouter, Bodine & Gill, Phila¬
oefore a good reason appears. One 50,000,000
saw
a
baker's apprentice with delphia, Pa., will become a gen¬
is to advertise the fact that
borrowed money and a flair for
is going to lose its
iralue. If the enemies of the gov¬ gambling in currency run- up a
fortune of $7,000,000 in ten months
ernment in power do this it can
and lose it when the mark was
eause great
damage. But if the
stabilized in November, 1923. He
Government itself does it the re¬
saw
housewives
go
marketing
sult is apt to be grave. It can set
in motion the thing it fears. What¬ early in the day so that they could
lay in provisions before the value
ever sacrifices Hitler or Mussolini
of their money went down still
have demanded of their people,
more.
On a holiday in Holland he
inflation is one subject they would
saw the saying that money is not
not touch with a ten-foot pole.
worth" the paper it is printed on
As a matter of fact, they have
ten
stressed again and
again that they
eral partner;
Kenriard
Profit
-
Keen,
'" '
"
' *
flation.
When economists speak
refer to a phenomenon
Df it they
But Dr. Hirsch does not expect
the "devil of inflation" to appear
trols.
But this devil is a
danger¬
eign
.
A
major topic of discussion at
the progress of
this year's examination program,
which is an annual review of
the meetings was
1.45
1.94
0.56
Carpet
1.53
3.02
1.63
Association has disciplinary power
Harding
Carpets...
0.39
0.50
0.08
imperial
Varnish.,
0.75
1.59
0.53
Robert Mitchell Co.
";
1.35
4.76
7.30
4.71
3.83
2.47
0.35
1.74
1.88
3.19
1.70
Celanese
Mot. (A & B)
Ottawa
Elec.
-
Ry...
2.73
Breweries.
1.96
about' $32,000,000,000.
From these sample
is also huge, but clear that Canadian
it is an '.internal debt, owed to
are
faced generally
the people themselves and hence
earnings in 1943 as a
marks,
or
America's
debt
business
members
over
Rules
H. Fulton,
its
Wallace
violate
who
Practice.
Fair
of
Executive Director, re¬
not
a
disrupting force.
Germany had an
'*■*.
-
J
inadequate
figures, it is
corporations
a
' with
well as the
amination program, as
membership trend and other
ad¬
/
number of instances the reduc¬
earnings / will threaten
dividend rates. For ex¬
4. Germany
lost control over, ample, four of the ten companies
her frontier,: and since she de/ in the tabulation paid larger divi¬
pended- so much on imports and dends last year than they will be
exports this was a fatal restrict able to earning this year under
estimated
profit ceilings.
tion." America is so nearly self- their
sustaining that such a restriction These companies and their 1942
dividend
rates
are
as
follows:
would have relatively little effect
5. Territories which were taken Building Products, $0.80; Canadian
Celanese, $2.00; Robert Mitchell
from Germany included much
Co.,
$2.00; National Breweries,
her natural resources—coal, ores;
$2.00.
' /'
agricultural land.
,
.debt—132,000,000,000 ,;gold 'she had not control.
ported to the Bo^rd on the ex,-
lower
ministrative activities.
result of the
ceilings imposed by EPT. In quite
■*
general rise in in this country and gives these
prices. The rise may be mild or six reasons for his opinon:
moderate. • But to the public the
1. Germany had lost after four
word inflation is generally taken
years of war.
"Her whole indus¬
to^mean a runaway and devastat¬ trial system was exhausted and
ing rise such as occurred in Ger¬ disorganized". Even in the un¬
many in 1923.
The administra¬ thinkable event that America
tion is wisely determined to pre¬ lost this war it would be impossi¬
vent any serious rise in prices by ble for the disaster to produce
6. When
inflation
threatened
such an upheaval in the life of the
setting up an adequate system of
Germany she was able to control
country.
controls, and hence has invoked
prices on goods produced at home.
2. Germany was saddled by the
the devil of inflation to induce
But she depended much on im¬
Versailles Treaty with a huge for¬ ports and over the prices of these
the people, to accept these con¬
which produces a
.
.
'
3.
,
,
practices of all members,
particularly with respect to their
profit and pricing policies.
The
$0.21
7.03
Ford
picture handbills printed on the
permit it.
backs
of
German
20,000 mark gold reserve; ours is $23,000,000,is, of course, confusion
000..;.
;
notes. :
"
'
about the meaning of the word in¬
"There
Per Shr.
$0.88
National
dramatized in the form of motion
will never
Ref'dable
Profits. Tax (Est.)
Per Shr.
parts of the coun¬
try,
Guelph
in
"
Actual
•
1943
1942 ■
(pref) f 5.24
Canadian
Co., Philadelphia,
date.
Per Shr,.
.
...
Can. Cement
partner
follows:
for
Building Products.. S0.68
effective today.
G.
as
Ceiling
■
died on
May 10th, his interest in the firm
of Keen &" Co., ceasing as of that
Keen &
companies are
figures
1943 Est.
ivay
money
Comparative
lished.
estab¬
already
schedules—is
tax
-
the
on
May 25 and 26, the scene of its
Canadian
previous meeting in January, at
corporations to. Calculate in ad¬ which time
Henry G. Riter, 3rd,
vance the maximum net. earnings
of Riter & Co., New York, was
which they can achieve in 1943.
elected Chairman.
Governors of
For
companies- whose earnings the
Association, which is the selfwill place them well into the EPT
regulating instrument of the se¬
bracket, their net profit for the curities
business, represent • 2,300
year—barring changes in present members in all
This
,
The election of Mr.
with. Much harm
done with his shadow."
one
.
Sprague & Co.
(Continued from page 1955)
ous
National Association of Securities
acted as a spe^ ings in the base period before the
Dealers, Inc., met in Chicago;
«
- •
is
Raymond war.
1'.;
firm
His
cialist. I
Meeting In Chicago
The Board of Governors of the
in
tion
Province of
present
ALBERTA
All Issues
Bought
—
Sold
Quoted
—
Ernst&Go.
.
outlook for
sharply restricted earnings during
the remainder of the war period,
is the fact that substantial post¬
Offsetting
war
assets
many
the
are
being built up by
companies through the 20%
MEMBERS
New
York
Stock
'
Exchange
'
•
T
and
leading Security and Commodity
120
231
Broadway,
So.
La
Salle
1
•
other
Exchs^
New York
St.,
Chicago
1962
THE COMMERCIAL & FINANCIAL CHRONICLE,
Our Reporter On "Governments"
i
Destroy
Civilian Economy, Says Samuel Crowther
By S. F. PORTER
is
guess-work
siderable
go
such, it must be viewed with
as
caution
that, let's
and
con¬
and suspicion.
And now, having admitted
to the assumption that Secretary Morgenthau will
major June maturity rather than refund it into new
»
.
death power over all citizens and
all corporations. " Almost at thd
Government Methods Tend To
;
This
Thursday, May 27, 1943
time, we established the
Federal Reserve System as an aid
to
better
banking.
We
never
same
(Continued from first page)
.
on
thought
"At the risk of being classed as
can
change personalities before
pessimist, let me say it has not too much harm has been done,
securities.
His most recent statements and the "feelers" around
been made wholly plain, at least but
today we are at war and the
the Street indicate this may be the outcome.
Repayment of to me, how the path to freedom manner and methods of Govern¬
the $454,000,000 U. S. 3%% bonds of
6/15/47/43 and of the $629,- of speech will be cleared by its ment are so
swiftly destroying our
000,000 U. S. lVs.% notes of 6/15/43 out of cash on hand.
Cash suppression, nor
how the path civilian economy that all at once
on hand
totaling close to $14,000,000,000 will be used, if the story away from want will be cleared we
may find that the props have
turns out.
i The working balance will be drawn down
sharply, by death and destruction, nor how been knocked from under us'and,
of course, by this redemption as well as
by war expenditures run¬ the way from fear will be cleared in the hour when most
they need
ning into the multi-billions, but Morgenthau has another plan to by more fear, nor how freedom
us, we may in sheer helplessness
build up this balance.
And that report comes later.
to worship will emerge from the let our
boys down.
That would
Remember, the forecast that the June maturity is to be
smoking ruins of a world made be to our eternal shame.
redeemed rather than refunded is only a guess.
bare by stimulated hate.
"We 'have
been
But again,
taking
the
"It is all well enough to play at Washington bureaucracy as some¬
assuming it turns out to be accurate, let's continue to the
proper course of action for any holder of the
being Alice in Wonderland and it thing of a joke. It is no longer a
maturing 3%s or
is fun to go to Never-Never Land joke and it is no
IVss....
longer just in
by airplane with Eleanor or Hen¬ Washington.
The 3%s are selling at a premium of 5/32 as of this
It has spawned all
his
repay
.
.
a
.
ever
these
two
could
or
ever
laws
be
would
used
ex¬
in the general welfare, but
they did strengthen the power of
cept
...
.
.
.
.
.
.
.
.
.
...
writing!
1 %s
at
are
premium of
a
1/32.
.
refunded, the premiums quoted now
are
to be redeemed, the premiums
perhaps.
.
.
If you
hold the 3%s
.
.
an
If
.
are
too
are
these
in
.
.
.
small.
.
.
But
.
to
are
if
they
line—another signpost,
seems.
.
.
have "rights"?
A pretty dangerous expecta¬
Because you haven't thought of taking action?
.
...
especially wise policy at this time.
.
.
So
.
consider
.
.
.
these
points:
"Roll
over"
securities, sell
you want.
your
maturity.
own
3%s
your
lV&s
or
If you want longer term
buy the particular issue
...
and
now
Perhaps the new 2s.
Perhaps the last issue of l%s
due in 1948.
Perhaps you can even go out into a longer bracket.
If you want short-terms because the
money represented is in the
"hot" classification, still do your own
refunding.
Sell your issues
now and swing into the securities
you prefer at your own leisure.
.
.
.
.
,
.
.
.
.
.
.
.
.
.
no
sense
—and
lot
more
a
to
waiting, for
you
.
have little to gain—if anything
in interest and 32nds to lose.
.
.
the
They do not ask
anything about anything
do
moment
and
But may I remind you
that,
although one may seem to escape
from reality by
getting drunk on
glory, just as one may seem to es¬
by getting drunk
cape
on
State employees and in
several
times
as
I do not know how many
outside the United States, but
informed that in Brazil alone
many.
are
1
sort of
am
have
we
spirits, there is al¬
morning after with a more
complicated set of realities than
around
10,000 civilian
We thought we were
employees.
ways a
rid
had the day before,
we
farms
manpower,
States
some
dif¬
a
of
eral than
us.
ferent
and
are
acutely
the bureau¬
crats are multiplying until now in
every State there are more Fed¬
short
good show for the rest of
a
over
factories
they provide
fluent patter for those of us who
wish to be considered
intelligent
a
and
the country and pretty much
the world.
While the
over
all
of
the
again in
WPA, but it is back
new hat,
and, where
a
.
instead of asking
you lightly to skip with me up to
the top of my pet mountain and
there unfolding to you a
panorama
the primitive WPA's had to learn
to doze on
shovels, the modern
of
.
There's
or
to
at
be
IVss, why are you continuing to stay to
you anticipate a profitable refunding
or
Wendell.
ry
us
issues
Because
.
and think you may
Not
.
.
the last minute?
tion, it
take
government, and
granted that
for
given is
time
a
be
reaucracy and presents a phenom¬
enon, the like of which the world
"Therefore,
WPA's have desks.
"It is
pet
world, I am going to
to sit right where you
my
most
a
extraordinary bu¬
Incidentally, one trader reports there already has been consider¬
ask you
able switching into longer-term stuff and it is his
opinion that much are and look
around, and I am has never known. Never has any
of this represents switching from the
maturing issues.
He believes
asking you to do this in the hope group anywhere at any time had
the larger banks holding the
maturing notes and bonds and confined of
bringing an acute realization so low a general level of ability.
to shorts are still to take action on
moving into other obligations.
that, in our mad scramble to es¬ Having said all that, I have said
And from that he draws the conclusion that we
may see a pick-up
cape from thinking, we are per¬ exactly nothing, for this bureauc¬
in prices and activity in the short-term
category between now and
mitting an American to be rede- racy is not a cause but a result.
June 15.
...
.
...
.
.
:
,
lined
unnatural
It
that
one
a
some¬
thus
was
in
may
power
that will
power
used.
.
.
The
central
not
the
great de¬
pression people should turn help¬
lessly to the government to do for
them
what
could
not
The
cry
the
they
do
NRA
member
for
thought
for
called forth
you
will
re¬
and
that
departure
they
themselves.
help
was
from
a
complete
the
American
theory of free private enterprise
an
experiment in a kind of
guild
socialism
with
business
grouped into guilds, with codes
of laws supervised by the
govern¬
and
ment.
That act was killed by the
Supreme Court. But it lived long
enough to establish in Washing¬
ton
the
flat
principle that the
American people
have not the
mental capacity to think, act or
spend for themselves and there¬
fore
must
be
regulated,
super¬
vised and kidded by government.
"The kidding phase—which has
now come to be known as morale
building—was also
new in Ameri¬
life. Never before had a
gov¬
can
ernment
elected by
become
us
a
thing of itself with a vast pub¬
licity crew trying to sell policies
to the people in
exactly the same
fashion
'and
with
of
most
the
same
devices that the Soviet
Nazi
governments
themselves to
NRA
their
used
to
sell
peoples.
The
be considered
may
interlude in
and
a
comic
national
our
life, and
bureaucracy some
of you who are here
acts
are
not to be blamed for
may
A SPECIAL BANK ISSUE?
being have
walked up Fifth Avenue
told.
We are already well
along what they are.
We, the people,
And now to the rest of this story, which is of utmost
importance, on our way toward
wearing
buttons
and
carrying
losing that put them there by insisting that
even though it may be based on "talk" rather than
actual statistical
sturdy, pernickety independence government do what government flags, in the hope that depres¬
informaion at this point.
sion was a kind of Jericho whose
which most of us were reared to is
incapable of doing.
And a
If Morgenthau redeems the June issues instead of
walls
would
refunding believe was our
fall, if only you
in
birthright.
We change
government
which
them, he draws down his balance by more than $1,000,000,000
marched around them.
At are not
exchanging it for some would merely mean the Republi¬
a time when war expenditures are
running at the rate of $7,290,000,000
"The NRA was quickly followed
supposedly higher form of life in can Party displacing the Demo¬
a month, at the
daily rate of $280,000,000.
which
dependence and interde¬ cratic Party, while it would bring by the AAA, the WPA and no
His balance is only at the
$14,000,000,000 mark to start with and pendence become hallowed.
of other agencies
We in a lot of new faces, would not end
that not
it won't be built up too much by the June income tax
payments and are not losing it because
shoveled
out
the
anyone change the manner of government only
public
regular sales of war bonds and tax notes.
planned it that way.
or lessen the
weight of bureauc¬ money but bore prodigious litters
So.
Another in-between issue is to be looked
"We are losing it
for, prior
because, as a racy or enlarge the freedom of the of bureaucrats who were nearly
to the time of the next war loan
all the kind of
campaign, aimed directly at in¬
people, we have beep too coward¬ average man.
people who be¬
.
.
as
The members of this
supine animal which
and thinks
exactly as it is
a
.
...
'
.
.
.
...
.
..
dividuals and non-banking investors....
For the exact timing of the
financing, look to the maturity
of the $1,609,000,000 %%
certificates, due August 1.
Assuming
Morgenthau is going to roll over this one, he'll take action in
.
H
July and give the issue
At the
an
August 1 dating.
.
ly to
.
time, he may ask for another few billions from the
particularly from the big commercial banks...
Now, what does this mean?
According to the data available,
we
can
.
look for:
A repayment of the June issues.
(2)
A big bank issue in July, simultaneously with a
rolling
over of the c.is.
Maybe totaling $3,000,000,000 or $4,000,000,000 or
.
.
even
.
.
.
$5,000,000,000.
(3)
.
on
this
one.
Just
market
a
issue, along the
lines of the ones we had before the war.
Quickly subscribed,
easily handled, restricted pretty much to the experts and the investors
who actively deal in the open market.
•' •
.
.
.
.
.
.
.
.
•
.
And in September or so, a third war loan
drive, directed
at non-banking investors and
designed for anti-inflation as much as
for financing purposes.
With the commercial banks to be
(4)
.
eliminated.
.
"We,
what
tents
so
.
...
socialism,
matter
they
but
"I
it
bandwagon
in
not
are
on
and
does
that those who
political
are
shriek
the
mud
hold
that
it
is not
that
all
of
Sure, it's guess-work.
investment
But it makes sense and the
story is
the basis that it may
help you formulate your
on
.
policy between
.
.
now and the middle of summer.
.
.
War,
right
In peace time
can
put up with errors and
incapacity because usually we
large size.
looks
beautiful,
according to consensus among
dealers.
At the moment, it's
consolidating its gains, is resting for
a bit after a three-month advance.
Nearly all issues have caught
up to the general level and there's
virtually no loan out of line at
the present writing.
...
...
.
.
Which
is
another
.
way
opportunities in the market
The
new
bonds
of saying
now.
a
the
.
that there
are
few
have
1968/63s and 2.44
price of 100.21, yield
on
the
1.89%
.
.
1972/67s.
to
call,
shorter-term 2s of 1952/50 and this
as
cular position, you can act
now
.
.
on
The 2s
.
of
1952/50
compared with
seems a
So, if you've been holding off
getting into other issues that appear
from
In
1.87
at
new
ones
a
the
on
logical enough spread.
selling the
..
.
and
.
.
.
r
sensible for your parti¬
.
'1
1
And if you've been playing the
switches, you
original position or the position you prefer.
.
As for the market's
course
over
the
.
.
.
.
to
be
these
cared
to
Federal
the Congress the
graduated income
to
levy
thereby centered in the
Government
life
a
advance in the short-terms
and
can
and
.
this
In
score.
themselves
"All
are
this
took
only three
government
the
longer-term
considerable
tax-exempt
tax-empts
are
difference
of
capable of
.
money.
and
taxable
categories,
sensible and probably will be profitable.
.
.
.
in
ways
can
There
which a
raise money. The
taxing. The second is
by borrowing savings. The third
is by
printing money.
The first
notion
was
that wealth
redistributed
could
through taxes,
be
and
the income taxes, which had
been
sanctioned by the 16th. Amend¬
ment,
were
that it
was
raised to such heights
longer worth while
no
for anyone to venture.
The Gov¬
ernment, while wailing about un¬
employment, took away the only
means which has ever
given use¬
ful
and
self-sustaining
And,
what is
took
away
business
to
National
sustain
Industrial
employ¬
these
more,
the
.
in
di¬
first is by
power
itself.
of
The
Conference
Board several years
ago compiled
some
...
there
yields after taxes, meaning that
switches out of the short-term
tax-exempts and into the long-term
tax-exempts or out of the long-term taxables and into the long-term
is
And
recting the American people.
taxes
the earlier tax-exempt
for.
bureaucrats had to
petty, legalistic, mono-rail
minds, else they could not have
.
.
figures
on
production
per
capita of population and compared
them with Federal
expenditures
and gross Federal debt.
significant.
During
1923-1929, which was
istration
They are
the
years
the Admin¬
of
President Coolidge,
or
the production index
figure was
growing significance is to consider 405 per
capita, the Federal ex¬
the "popularity" as well as the
position of a bond, when you're deter¬
penditures were $1,314 per
capita
mining your portfolio.
The 2%s of 1965/60, for
instance, are a and the gross Federal debt was
popular bond and as such, they will have a favored
position in any $5,017
per
capita.
During
the
market reaction in the future.
Some of the short-term
tax-exempts years
1933-1940, which was the
are leaving that classification
because of their high premiums and
Administration of President
the obvious short-term life of the
privilege they carry.
Franklin
Roosevelt, the produc¬
Open market portfolio of the Federal Reserve System reveals tion per capita fell to
One
amateurs
point
that
but
which
doesn't
seems
.
get
attention
any
among
experts
of
.
...
...
can return to your
.
coming weeks, stability to
preponderance of longs—two-thirds of the issues held
having matur¬
ities shorter than five years.
Reason is this is a central bank, of
slight advance may be expected.
Even some reaction is
possible, course, and its operations
depending on the news and on the actions of individual banks
of ordinary bank.
r "
.
gave
taxes and
Toward June, some
.
.
more
When the 21/4s and 2s go
up
on, they'll rise with the rest of the
market, not ahead
now.
a
more
taxable categories, according to
dealers, there's not much difference in yields after taxes.
Meaning
that you can sell whatever short-terms
you want without sacrifice
switching
.
moved
.
independence for
but
INSIDE THE MARKET
on
up to the point where they're in
The 2y2s of 69/64, for
instance,
price of 100.18, yield 2.46 to call date, as compared with 2.46
on
of it....
.
needed
course
ment.
still
with the rest of the list today too.
at
.
while,
since the 16th
incapacity.
be looked for.
still
explaining.
.
THE MARKET
Market
some
especially
Amendment, which
became a part of the Constitu¬
tion just before the first World
And I further hold that
it is stark desecration for
any
Government officer to wrap him¬
self in the flag to hide his errors
we
worth consideration
needs
individual
Government, and especially in long
his
ask government for
found
"That
wartime.
or
con¬
We have been drifting away from
the historic American
conception
only the
solemn right but the holy
duty of
an
American citizen to criticize
his
the
of
the
at
nor
expected, and,
our citizens were in¬
capable of deciding anything of
importance for themselves
and
have
fine paved highway.
a
as we
we
lieved that
ing to get an ever-increasing dose
exactly what we are getting
now—regardless of what party is
nominally in power.
not
on
package
what
are
long
people, are getting
for,
although
asked
that which is not in the power of
government to deliver, we are go¬
plan¬
less
the
we
neither the
form of Government which has
means of going forward and
therefore must go backward and
is now mired in the bog of
...
No fanfare
with reality,
no
usual market sources,
(1)
to grips
a
...
same
here's what
come
and in trying to escape from real¬
ity we have set up a manner and
.
.
.
.
are
.
.
entirely different from those of
.
-
'
•
an
was
four
312—which
points lower than dur¬
period 1901-1909, which
ing
the
was
the Administration of
Presi¬
dent
Theodore
Roosevelt
—
the
Volume
Federal
expenditures
money
rationing
or
through the com¬ Hoover,/; without
put it blunt¬ regulations, sent twice as much
mercial banks—or, to
ly, by printing money. A change
and character of
food
the
Federal
made
private enterprise with
a system of doles and regulations
administered by welfare workers,
free
let
talk
production fell by nearly a quar¬ fancy
about
ter, Federal expenditures nearly
about
tripled and the gross Federal debt
what all this
heard
Washington
of
out
also,
more
lot of
a
of
necessity
the
if,
on
a
clining volume of business,
increases spending and debt;
out to be a reason
de¬
ernment control.'
one
ary
gap'
is
at
the
than $100 on an
probably nearer to
$50; and, further, that the time
required for foreclosure is short,
usually less than three months. In
three other States costs are equally
low but the time required is long¬
er and the redemption period per¬
mitted is even longer.
He esti¬
short
mated that in about a fifth of the
of
remaining States foreclosure costs
the rule."
costs
coop¬
less
are
but relies solely on regi¬
eration
but
all
at
brings
That
money
is
lend
but lends a credit
a
serves as money,
which
though
going on
sounds as
queer
business were
somewhere but that is nonsense.
such distribution.
"The revision consists of an ad¬
ditional sentence added to the end
Probably
a
single factor has been
no
being used as money.
This
the manner in which
socialistic
important in the growth of
British and American trade as the
flexible
banking system
which
can circulate credit as money. But
so
We
ration book.
planned
in
are
half-
a
our
the
limit
dollar
and
ra¬
which was designed to
spending power of the
so clumsily conceived
but tioning
economy,
chief planners
have astigmatism and are work¬
unfortunately
was
executed
it
that
is
(a) bf
present subsection
/
I
,<
Casualty index Up
ent
April,
declined
Index
to the Insurance Stock
prepared
by
Mackubin,
Legg & Company, 22 Light Street,
Baltimore, Md., members of the
New York and Baltimore Stock
Index
Copies of the Index,
Exchanges.
memorandums
on
Insurance
current
and
American
Rese rve
Baltimore
Company,
American
Company, Carolina In¬
Insurance
Company, General Rein¬
surance
Corporation,
surance
Georgia
Company, Gib¬
Marine Insurance
Home
Insurance
raltar
Fire
&
Pacific
Company,
the pres¬
attention that
while the Fire
fractionally, ac¬
cording
Indemnity
Company, and Preferred
wording of the rule operates
time,
present
adoption, namely, when price
declines occurred resulting from
the fact that the security has gone
ex-distribution.
Accordingly, the
its
at
the
to
possibilities
interesting
cases
Accident
Company, which offer
Insurance
prevent short sales in certain
not intended at the time of
to
of
month
"It has been called to the Com¬
mission's
upward trend of casualty
continued
during ;> the
stocks
follows:
as
exactly
The
the
The
supposed to be the
of individual initiative.
effected in a
ex-divi¬
gone
are
replies
with
more
regulations
and, if unchecked, will surely
Hitler managed to * re-arm Ger¬ bring this nation into acute hun¬
It has withdrawn from our
many, although by now, both in ger.
Germany and in Russia, money is economy the one thing which
only a ticket entitling one to use kept the economy alive—the spark
from
money.
bank does not
credit.
has
ex-right, or ex-any other
distribution, all sale prices for the
security prior to the 'ex' date
may be reduced by the value of
another
to
investment trust,
It lends
an
lend
not
does
us
be
may
that
dend,
difference between the amount of It set a new high in bumptious long. Redemption periods are also
goods available to buy, which in ignorance until the order came unnecessarily long.
highly
important
point
which turn is supposed to be exactly the through to compensate losses and
somehow does not seem generally
amount of goods on which our to spur production through sub¬
Short Sale Rule Amended
to be grasped, and that is gov¬
The intricacy of that un¬
civilian population can stay alive sidies.
ernment borrowing.
I think the and
The
Securities
and
Exchange
work, and the amount which dertaking baffles the imagination
reason for the confusion is partly
Commission announced on May 20
the Government is spending. The and it is wholly evident that its
the sort of statistics that have been
a
revision of Rule X-1QA-1 un¬
notion
is ; that
through
taxes, projectors have not the slightest
coming out of Washington and forced savings, price control and idea of the nature of the bull or der the Securities Exchange Act
partly the mystery that somehow rationing, the Government can the nature of the tail they have of 1934, dealing with short sales
surrounds banking.
A commer¬ create
effected on a national securities
money at will and make it grabbed. The OPA, having caused
cial bank as distinguished from a
an
acute food shortage through exchange.
act, smell and taste like money,
The SEC explained the change
savings bank, which is not a bank and at the same time prevent it its policies and regulations, now
"That
sale
security
and
average
high, at least $100 on an aver¬
mentation and compulsion.
The age and probably nearly $150;
time required to foreclose is long,
order fixing prices was an order
In the
for the winds to cease and the well over three months.
The order to roll remaining States costs are high, at
for more Gov¬ seas to still.
least $150 on an average, and the
The -inflation¬ back prices was an order for the
seas to part and
open a passage. time consumed in effecting it is
controlling
more
than doubled.
Remember
It
that those figures are per head prices, and so on and so on.
of
population. Any
man
with may or may not have struck you
that no matter what happens turns
ordinary sense knows that the
not far away
the war's end, had
at
beef cattle on the farms than
beginning.
He relied on
the
voluntary
cooperation
of
American citizens.
The present
ling inflation through
end is
only
not
and
control¬ Administration talks about
'inflationary gap'
the
is being sent in
provided
the home table with ample food,
and
war
,
see
us
You have
means.
System has
Reserve
this possible.
"Now
as
overseas
this
but
in the basic law
initiative
individual
American,
and
the
of
capita
per
$3,108 and the gross Fed¬
eral debt to $11,709.
That is, as
the Government tried to replace
to
rose
1963
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4180
157
the
according
be had from the Insur¬
firm,
may
ance
Stocks Department
of Mack¬
ubin, Legg & Company upon re¬
forcing
revised rule provides that in de¬
ing without their glasses.
'. '
;
"We have in this nation no the spending of more dollars. The termining the price at which a quest.
will work only in shortages that are not man-made. regulations are not preventing in¬
private hands, because it depends I include both materials and man¬ flation. They are preventing pro¬
ADVERTISEMENT
ADVERTISEMENT
on loans being paid off out of new
duction
and
making
inflation
power. You are familiar with the
production. In government hands, mess in manpower.
THE BALTIMORE AND OHIO RAILROAD COMPANY
We have a more acute.
the banking system may serve to national
"Let us put aside the brightshortage of rubber and
SUMMARY OF ANNUAL REPORT FOR THE YEAR 1942
create the illusion of money, and sectional
blocks
with
which
so
shortages of petroleum colored
>
The annual report of the President and Directors covering operations of the
that is exactly what has happened
products.
Even elementary pro¬ many,
are
playing
'Post-War Company for the year 1942 is being mailed to its. stockholders.
here and is at the root of our vision
would have supplied
us World' and get on with the grim
RESULTS OF OPERATIONS
trouble. \
with a great rubber stockpile and job of winning the war on the
The audited income account of the Company for the year 1942, as compared
a synthetic rubber industry which
home front. For it is on the home
with 1941, is summarized as follows:
"Although the New Deal pre¬
Year
Year
"Increase
tended to redistribute wealth, it would have been in production as well as the foreign fronts that
1942
1941
Over 1941
by the time the pile was used crisis impends. If we fail here,
never
collected in taxes more
It is time for Railway operating revenues
$306,254,193.49 $227,503,021.56 $ 78,751,171.93
than half the money it spent, and up. Equally elementary provision all else will fail.
would
have
204,241,198.76
160,918,417.51
43,322,781.25
provided either a the real spirit of America to as¬ Railway operating expenses :
I
may
say right here that the
that
system
of social reform
kind
which has
be
printing—is not social
all but something in
nature of fake stock selling.
Government borrows from
The
at
bank buys
Government securities, it opens a
deposit to the credit of the Gov¬
ernment to the amount of the se¬
curities and
puts them among
an
or
against
these
sert itself."
Calls For Overhauling
which ig¬
these vital supplies has cut
its
follows the same pro¬
cedure as with an individual bor¬
rower.
If the Government does
not retire its securities, the bank
assets. -It
port
indirectly by wasting,
and
sorts of boards
Legislatures in at least one half
that could have use¬ of the States have it in their pow¬
fully been employed.
It is quite er to make one of the most im¬
evident that the bureaucrats ap¬ portant contributions possible to
plied to the motor problem the a healthy post-war housing re¬
same
grade
of reasoning that vival by acting now to get rid of
stopped for a few weeks the sell¬ their obsolete mortgage and fore¬
deposits created by their purchase ing of sliced bread.
"There is not now and never
remain, and it may surprise you
to know that the increase in our was a shortage of sugar except
bank deposits since 1916 has been for a little while after Mrs. Roose¬
entirely due to Government bor¬ velt and Secretary Wickard re¬
There
rowing, for business, up until the assured us on the radio.
opening of the war period, was need be no shortage of coffee.
borrowing less than in 1916.
Practically all of our shortages
have been due to loose talking,
"Our bank deposits are no long¬
planless planning, hopelessly in¬
er an
evidence of wealth or of
volved and ever-changing proce¬
savings.
They simply represent
dures
and
competition between
unpaid
Government borrowing. Governmental
buying agencies. It
Since they may be turned into
is a magnificent tribute to Amer¬
hand money at any time, they
ican industry that it has been able
simply a
are
printing
Government way of
money, and you
paper
will remember
that our money
is
exchangeable for gold.
been an attempt to
spend these bank deposits at any
time between, say, 1937 and 1941,
we would
have had an inflation
of prices which would have made
a piker out of the 1929 stock mar¬
ket.
If such an attempt at indi¬
vidual
spending had then
oc¬
curred, we would have then had
longer
no
If
there had
that we have now.
it was just not worth while
the individual to spend for
all the controls
But
for
gain, because under the
the Government said:
win and tails you lose.'
*.
"Now we are at war
tax laws
'Heads I
;
but, finan¬
cially speaking, we are continuing
to do what we did during the so¬
cial
welfare days of the New
Deal. The
Government then raised
about half of what
spent. Now it is spending sums
by borrowing
it
human comprehension
and raising about three-quarters
far beyond
closure
been
laws most of
the
on
"horse
and
law
new
15.
time is now here to
He said it would
or
are
to
causes
blame
outside
are
the
untrue.
OPA
getting pretty tiresome.
They
from income
for
fixed
and
This
for other purposes
$ 56,680,159.09
$ 32,458,657.95
$ 24,221,501.14
11,356,562.50
11,366,775.00
*10,212.50
$ 45,323,596.59
$ 21,091,882.95
$ 24,231,713.64
$ 76,543,416.17 .$
war
the war."
"277,776.59
'
contingent
charges
income
not
does
summary
give effect to
available
"Income
from
appropriation for capital fund which
purposes" and before contingent
an
other
for
the appropriation from net income for sinking fund;
certain adjustments to conform to the provisions of the Modification Plan of
r
tions
R.
to
'
R.
*
\,»
...
«
«
*
nor to
Aug. 15,
report.
dealt with fully in the annual
all of which are
'
«
of $11,572,108.85 in outstanding interest bearing
made during the year, including $3,000,000 of Cincinnati, Hamilton &
Co. General Mortgage 5% Bonds which matured June 1, 1942.
There
was
a
net decrease
$
-:V.
as
in
accrued
of
»
*
*
«
property used in transportation
against which depreciation has
Dec.
the
leaving the net recorded value
of $118,647,600.50,
amount
obliga¬
Dayton
*
investment of the Company in
31,
1942, is $1,005,867,783.46
recorded
The
service
■
decrease.
charges;
interest
re¬
represent "post
"318,195.97
$ 23,943,724.55
deductible
is
2,004,180.92
\
.
52,599,691.62
20,141,033.67
net
"Denotes
these statutes.
Mr. Mullenix pointed out that in
The about a fifth of the State mortgage
flag-waving pleas are contempt¬ and foreclosure laws are relative¬
ible.
In the last war, Herbert ly favorable in that foreclosure
are
$ 23,625,528.58
time of payment
to
as
Audited
1938,
planning that can not only be
planned-now but actually done
to produce so gloriously in spite now as well.
It will require the
of Governmental regulation.
use of no critical materials—only I
"That is over the dam, but a some honest vision, a realistic ap¬
proach to facts as they exist today
new series of regulations are not
over
the
dam and we can do and the death of some sacred cows
It is noted in the re¬
something about them before they of politics."
take us into another winter so port that in at least one-half of
the State's present laws governing
cold and so hungry that we may
the making of mortgages and the
become helpless.
foreclosure of property have long
"I
refer to the extraordinary
been out of date, benefit neither
antics
of the OPA.
Our food
the borrower or lender, tend to
shortage is not due to the people
make foreclosures costly which, in
eating too much or the soldiers
turn,
makes
it impossible for
eating too much or Lend-Lease
sending abroad too much.
The mortgage bankers to lend as liber¬
ally as they would otherwise, and,
shortage
is due wholly to the
in general, will act as deterrent to
OPA.
Its ceilings, its regulations
the great post war expansion in
and its horde of busybodies have
new residential building which, he
turned upside down our whole
structure of food production and said, "is estimated to run any¬
where from 900,000 to
1,200,000
distribution.
The official pleas
units annually for the decade after
that the people or the black mar¬
kets
only
Mullenix's views were ex¬
on
363,935.13
$ 54,603,872.54
19,863,257.08
interest
Other
buggy" days, accord¬
the attack
8,306,748.01
$ 78,229,401.12
1,685,984.95
since
pressed in a report to the Associa¬
tion's members in which he said
that the
2,892,890.07
$ 23,261,593.45
and other charges—-
Income avail,
'
Mr.
4,507,373.81
$ 46,297,124,53
charges
other
Fixed interest
ing to Charles A. Mullenix, Presi¬
dent of the Mortgage Bankers As¬
sociation of America, in a state¬
ment issued May
7,400,263.88
8,670,683.14
available
Income
which have
books
$ 26,154,483.52
$ 69,558.717.98
income
Miscellaneous deductions
manpower
$ 50,804,498.34
—
—
operating
railway
Total
various
before
9,273,907.10
$ 76,958,981.86
income
Other
Foreclosure Laws
15,780,105.71
income
debit
Net
$ 66,584,604.05
inc.)
operating incomfe
Equipment and joint facility rents—
And
$ 35,428,390.68
$102,012,994.73
25,054,012.87
revenue--
Railway
Net
Obsolete Mortgage
deeply into the efficiency of our
effort, both directly by crip¬
trans¬
operating
railway
Net
Railway tax accruals (incl. Fed.
at¬
The recklessness
pling a great section of our
u
ade¬
war
When a
banks.
the
attacks
defense
nored
reform
the
enemy
tacks.
into money
safe
transportation
petroleum
supported by borrowing— from
which, as I shall develop, turns quate
to
$887,220,-
182.96.
«*««**
multiple-unit Diesel
1942 and
the medium of a conditional sale agreement three
freight locomotives were acquired and placed in service during
also acquired and placed in service 687 new steel freight-train cars.
To
accommodate increased traffic 50 caboose cars were constructed at Company shops.
Four
locomotives, two passenger-train cars, 81 freight-train cars,
and some
Through
electric
there
were
equipment were rebuilt and
28
modernized at Company shops.
work
During the same period
passenger-train cars. 173 freight-train cars and
equipment were retired from service because of obsolescence or
two
locomotives,
laneous
some
miscel¬
other causes.
placed orders for early delivery of 1,000 box cars
and 1,000 hopper cars, each of 50 tons capacity, but because of restrictions emanating
from the War Production Board this equipment was not allotted to the Company;
however, under a directive recently Issued by that Board, the Company is permitted
to acquire 525 composite hopper cars which are expected to be received some time
In
in
March,
1942, the Company
1943.
multiple-unit
and it is
number of
placed for twenty
during the closing
of the Company authorized the acquisition of three
locomotives and twenty-five Diesel switching locomotives,
that, pursuant to orders placed with manufacturers, a
these units will be delivered during 1943.
Recently, orders were
heavy freight locomotives which have been scheduled for delivery
The
Diesel
now
months
Ten
Chicago
months
the
Directors
freight
anticipated
of this
Diesel
year.
,
~
...
switching locomotives were
of
this year,
Staten Island area
of New York City,
-■
-
ordered last year for service within the
six of which were delivered in 1942 and four in
and the acquisition of nine similar locomotives, for
switching area,
has been authorized.
the early
service in
«,»***»
item of expense, for the year 1942 aggre¬
1941 of $9,273,907.16, or 58.77%, of which
roll and capital stock taxes, and the
remainder
or $6,988,773.71, for state and local taxes.
Taxes for the year absorbed
24 56 cents out of each dollar of net operating revenue and were equivalent to $4.00
and
$8 85 per share respectively on Company's preferred and
common stock out¬
standing, on which no dividends were paid and, together with
miscellaneous tax
Railway tax
accruals, an uncontrollable
gated $25,054,012.87, an increase over
$18 065 239 16
is for Federal income,
accruals, were
equivalent to $463.51 per
pay
employee.
R.
B.
WHITE,
President
IN DIVERSIFYING YOUR INVESTMENTS
•
'
,
.v,
■
'•
..
consider
•
area—of which
This
:.
fft
Great
the
Lakes
.
%
...
Toledo, Ohio, is the hub.
conservative
institution,
$11,000,000 assets, invites
<
■■
manufacturing
with
over
investment.
your
Current dividend rate—2M>%.
.
Descriptive circular and statement on requeii
First Federal
Savings And Loan Ass'n of Toledo
335 Erie Street
-
i
-
-
FULLY
to $5,000
up
by
United
Assets
as
Toledo, Ohio
-
INSURED
instrumentality of the
an
States Government
of May 1, 1943
$5,550,000
Broadview Savings
AMI LOAX C'OMI'AXV
3341 BROADVIEW ROAD
CLEVELAND, OHIO
ECONOMY SAVINGS
&
LOAN
42 E.
COMPANY
TRUSTEE
GAY STREET
COLUMBUS, OHIO
INVESTORS
BUCKEYE
.
.
."concerned with safety of
their
THE SCIOTO
BUILDING
AND LOAN COMPANY
61
East
Gay
Street
COLUMBUS, OHIO
Incorporated
15, 1943
or
own
clients'
funds,
invited to investigate the
investment
Federal
facilities
Savings
Serving
most
areas
1910
Total Assets
Mav
are
one
of
highly
...
of
this
Association
the
nation's
industrialized
Established 1921..,
Assets:
.
Over $3,000,000.00
$2,210,000.00
Total Reserves
May 15, 1943
$212,000.00
Home
of Cleveland
1876 East Sixth Street
Member
Federal
Savings and Loan Association
Loan
Bank System
Cleveland, Ohio
1302 MAIN ST.
CINCINNATI
OHIO
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4180
157
1965
Savings and Loan Institute
Management Conference
Marks Fifteenth Graduation
Studies Savings-Loan Problems
The Industry Much The Same
As Those Of Business Generally
Finds Problems Facing
Institute
Has
pretty generally those of the business as a whole. 'Unanimity on
such programs as increased investment in Government Bonds was
dent
future
was
more
evi¬
the conferees than
diversity of practice in the
among
any
Op--
present,
of
erators
s
opinions v>——-—
in
Disparity
the
about
-
.
-
-
in-
t/i tu t ions
to
the
four
any' .other
in
Fafced
con¬
in
overall
Gr
the
property
a
de¬
have
keep on lend¬
competing lending agencies. That
is only one half of the story, how¬
ever.
Faced with the necessity
money
either
to
S
a m
Uncle
*
to
buyers,
take
the
that
money
offered
is
them for investment in apparent¬
undiminishing
amounts, and
and liquidity po¬
sitions at unusual highs.
Presid¬
ly
to keep reserve
ing
of
officers
four
the
F.
lifting their sights a bit in
judgment of property values
the
association • operators
have
been devising ways of placing ad¬
ditional
safeguards
around the
stances.
groups
Atlanta,' Past
and W.
President of the League;
McAllister,
W.
Antonio,
San
circum¬
these
under
made
loans
St.
Scott,
West,
W.
George
show against
a
their
Paul,
Minnesota,
who
is
first
Vice
President, United States Savings
and
Loan
League;
George
B.
Campbell, San Jose, California,
District 8, Director of the League;
John
were
ghost of
a
of
Distclhorst
Carl
home-
to
or
New York
Texas.
Generally the methods of safe¬
The
values
will
sufficiently
down
care
of that
to
(2)
contingency;
be
22.
above
from the borrower over and
the property, in¬
the mortgage on
these
of
show how the war
men
cluding such collateral as
stock
policies,
surance
or
government bonds as
permanent investments of the as¬
sociations alongside their month¬
buy
ly-repayment,
fact
adding
portfolios
for the duration.' Their estimated
increase for the six mnonths of
1943
in volume 'of Government
bonds held was 69.7%, so that
Governments
to
their
about 12.2% of
in Government se¬
they would have
assets
their
curities by June
This is an
30.
amazing
development
realizes
that
loan
at
the
those
Of
when one
and
savings
bonds at
Harbor.
associations represented
institutions had no
at
all
most
time of Pearl
Conference, the
the
most fre¬
first
the
time
112
in
"With
years'
business
of
body
Loan
a
trained
whose
people
knowledge of the operations and
of the savings
purpose
of
gressive
institution
approaches
type
and
curriculum
it
year
and
starts,
educational
direct
Repayments on loans
scheduled
are
1943.
ahead of
amortization,
characteristic of
manager objects to this
monthly
marked
a
No
his loan
portfolio
by
decreasing
the
amount outstanding in proportion
process
of
improving
the
than
during
its continuance.
As
associations
for wartime measures
which
last
emphasized
year
War
carrying
under
the
need
the
borrowers
their
to
for
insurance
Damage
Government
plan, are
planning this year to use the
same persuasion on their borrow¬
ers
to renew it under the plans
recently announced by the board
of the War Damage Corporation.
These
pro¬
ern
the
pro¬
umbia.
to
every
two
new
where
this
or
for
work
the
coastal regions.
that
some
the
loan
of the institutions were
to be absorbing part of
of
this
insurance
al¬
though it did not seem to be gen¬
eral practice.
The associations
the
v
Chicago
represented at
.held
Conference
New Jersey; Ralph R. Cros¬
by,
Providence,
Rhode
Island;
Philip Lieber, Shreveport, Loui¬
Rice, Kansas
W. West,
H. Allen,
G. VanderEnde,
T.
Clarence
siana;
City, Kansas; George
Atlanta, Georgia;
L.
Houston,
cross-section
of
re¬
on
over
in
now
LOAN ASSOCIATION
Federal
The
of
Bank
second with
was
Loan
Home
(111.
Chicago
and
WICHITA, KANSAS
Financial and
of the Federal Home Loan
System now includes 3,736
Bank
savings and loan associations and
similar
institutions,
23
insurance
companies and 22 savings bankswith total assets of more than $5,
St. Paul Federal
Savings and Loan Association
St. Paul, Minnesota
Assets $1,998,872.24
Current
enabling them to meet de¬
bers,
able locally."
Write for further Information:
AXEL
the
and
leadership in
who
women
a
have
12
regional
banks and
in
the
institutions
the most
liquid condition in their
history.
With new home building
housing for war work¬
limited
now
are
to
outlets for construction loans
ers,
by members have shrunken re¬
cently.
However, it is noted they
are active in financing the sales of
INSURED SAVINGS
Up to $5,000
this organiza¬
its first diplomas for
savings and loan business,
now
and there
464 with this additional
training.
Their number will be
close
-
at
to
500
current
mencement exercises.
by the
com¬
The direc¬
tory will also include their names
and
on
earns
from
10th
combined
with
in capital, has
permitted these institutions to in¬
vest heavily in government securi¬
ties, as a wartime supplement to
their aggressive sale of War Bonds
their steady growth
is
It
or
before the
the
1st!
3%
situation,
This
Current Dividend Rate
NORTHWESTERN FEDERAL
SAVINGS O LOAN ASSN.
823
Marquette Avenue
MINNEAPOLIS, MINN.
indicated
that
the
Friendly Institution"
"A
3,781
members of the System
have made
total of approximately $6,700,-
in
war
industry
areas
summer
bf
they
It is
1940.
serve
a
estimated
total of about
million savers, investors and
since the' home-owner borrowers.
t
v,
m CITIZENS
the Graduate Diplomas,
are
received
Money
existing houses in crowded cities.
post-war
advanced work in the study
of th'e
Exec,-Secretary
in
member
19
ii
FEDERAL
n
m
SAVINGS
Eight years ago
more
OLSON,
their
preparation for
growing business
which bids fair to have its great¬
tion awarded
A.
Twohy reported that both
Mr.
seven
men
Rate
of the volume of funds avail¬
cess
and
process
Dividend
3%
mands for home loans when in ex¬
ing $2,135,000,000 loaned on homes
outstanding
request
"Founded in 1932, the member¬
ship
that
this
on
$127,581,000.
gional Home Loan Banks, includ¬
these
operative statements
sent
Wis.)
savings and loan business and to
the financial world in general.
It
will
contain
brief
sketches
of
today's
the part of operators
the country.
thinking
from all
southeast¬
States and the District of Col¬
000,000 in home loans since they
became affiliated with their re¬
made
and
serves mem¬
seven
MID KANSAS
FEDERAL SAVINGS AND
a
awards
a
re¬
compiling a directory of its
Graduates, the first
ever to be made available to the
of associations in this country
constitute
Home
Assets Over $3,000,000
Three-Year
up
should
Legal for Trust Funds
and stamps.
of
brought
liable
is
Institute
Loan
about one-fifth of the total assets
therefore
in this
Insured Investment
personnel
York; Henry N. Stam, Pater-
New
est
cities
No Market Fluctuation*
has 800,000,000.
Geographically,
its
not
previously
been
available. member institutions are located to
This May and June will see the serve almost the entire non-farm
addition of some 100 to 125 to the population of the country.
The
alumni
group,
the
Three-Year regional banks grant long and
short-term credits to their mem¬
Diploma Holders.
: ;
and
opportunity
in
It is noteworthy period.
mainly
are
Winston-Salem Bank
2331
of
ported the largest volume of ad¬
vances by a regional
bank.
The
assures
practically
one
Federal
ber institutions in
cities
in
the
-
in most States
figure
of Winston-Salem
loan
of this business in the fu¬
gram
Bank
Street
Ml
•
em¬
The advices
cumulative
a
$141,472,000,
Vaile
C.
D.
history of this
Texas;
pared for any emergencies which Berkeley, California.
they think are more likely to
The
American
Savings
come with the ending of the War
reported percentage of reported
the
cost
bonds.held to total assets at the
15%.
were
associations without
exception are aiming at higher re¬
serve
ratios in order to be pre¬
quently
present time is 10 to
all
that
the
prompted
conference
thought they would keep
which
conclusions
Other
at $87,369,000.
point out:
also
Olive
Angeles
Buy War Borrc/s Here
outstanding ad¬
vances
ing
creat¬
for
the
Los
May
on
Twohy said that total
leaving
South
735
Loan
15
past
years,
son,
community.
customary in the
loans. And
long-term
home
practically all of them
payrolls became
the inflated
fore
Mr.
Gov¬
Home
135,039,
*
to
Twohy,
Federal
in
by
life in¬
bondholdings,
or
associations'
pass
economy has made them change
their approach to their jobs with¬ books; and (3) keeping the ap¬
Charles L. Plumb, New York City
praisal of the property to
be who was a member of that first
out disrupting the traditional sav¬
loaned on at least six months be¬
ings and loan refusal to get ex¬
Graduating class in 1928, is now
cited about supposed-lo-be crises. hind the market levels of real es¬
national president
of the Insti¬
The advantage of a
grass-roots tate values. With these alternate tute.
Among
other
Institute
position in the American economy, safeguards for today's inherent Graduates who are on the Execu¬
which
benefit is enjoyed to a lending risks, the associations are
tive Council of the United States
singular extent by these thrift applying their usual scrutiny of
Savings and Loan
League are
•and home financing institutions, the personal risk &nd espepially
Fermor S. Cannon, Indianapolis,
always shows up best when the in the case of. a rapidly stepped- Immediate Past President; James
^nation - is confronted by- today's Up income for a borrower in a Clawson, Muncie, Indiana; Roger
defense area, the personal credit
kind of situation.
W. Nutt, Boston,
Massachusetts;
risk is customarily based on the
Many managers felt that even
E.
Clinton
Wolcott,
Rochester,
credit rating of the applicant be¬
after Victory they would continue
highlights of the opinions
Some
James
the
ployment of reserve credit sup¬
plied by the regional Home Loan
Banks since they were established
reached $1,004,504,000 on May 11.
Repayments amounted to $917,-
Year
take chapters
re¬
home-financing
Bank System, announced
in
1,100
collateral savings
additional
of
quests
loan
the
comes
paid
of
ernor
guarding embody one or more of ture.
these
devices:
(1)
accelerated
In those fifteen years since the
amortization of the principal of first class
graduated the Institute
the loan in the earlier years so has
developed an ever-extending
that when and if the deflation in
fetmt'StwvtyjAND LOAN ASSOCIATION
institutions,
by.
cities
the
in advances of the 12
member thrift and
Institute
71
month
of
1st
Federal Home Loan Banks to their
has
Diplomas
by 10th of month
full from
in
STANDARD
billion dollar figure has
one
been passed
received
Funds
earn
Pio-
-
FHLB Advances Pass
Chap¬
first
some
Three
in
began
d uating
the
on
more
than they would have loaned
three years ago, or they will not
now
or¬
Institute
granting
of
past
termination to
ing
a
its
-
Class.
have to lend
an
sense
their
of
with'
three, years' defense
and war economy, these savings
and loan operators know that they
and
was
The
ganization.
of real estate which
the inflationary trends
Reflects
graduated on
Brooklyn, after studying the standard three-year
savings and loan educational
the
into
di-
was
and Loan Institute.
New York savings;
May 29, 1928, at a ceremony at the
prescribed by the nationalf
course
resul ted
the
there
circles,
St. George Hotel, in
price levels
which
vided
and loan
conference
subject. neering
an" incfease* in
the this class
with
ferences'
group was
the
on
of
Three-Year Diplomas from the American Savings
A group of ten, seven of whom are still active in
lending side of the business than
in
.
spent
was
15th anniversary of the first class
mark the
Saturday will
savings and loan executives and junior executives to graduate with
."J
-
v
time
More
By DOUGLAS C. VAILE
Education, American Savings and Loan Institute
problem of in 1922 but its
finding outlets and thus enhanced
ter,-the 18th
the desirability of government se¬
to be founded,
curities as a /savings and -loan in¬
presented
it
vestment/
-from
$2,OOP,000" to
v'.,;yv
..
it has increased their
ranging
$57,000,000
assets-..sat
—
of the property, but
the value
of
Director
V.-P., United States Savings and Loan League
Two hundred and twenty-five representatives of the nation's
savings building and loan cooperative banking system in 35 States
friet in Chicago in mid-May for their annual Management Confer¬
ence and found that their individual attacks on today's problems are
obvious.
•
,
By CARL F. DISTELHORST
Asst.
Curriculum
Ever-Extending
Developed
Many New Chapters Each Year
brief biographical
sketches.
Ij
ft*
'{
II
O
Yield
On All Kinds
of TRUST and
INVESTMENT ACCOUNTS
by this
AND LOAN ASSN.
la
of Hammond
2lA Million Institution
—JUST MAIL CHECK
WE DO THE REST—
5272 HOHMAN AVE.
HAMMOND, INDIANA
All Accounts Insured To $5000
THE COMMERCIAL & FINANCIAL CHRONICLE
1966
Associations
Occify Leading Place In Field;
(Continued from page 1964)
15.7
and
ees
Ohio Savings And Loan
cents for employees
clearing house.
complication arose over
of the stock
"The
The history
of the Ohio League
particularly scintillating in its
efforts on behalf of the industry
Executive Order 9328
the
matters
affecting national leg¬
islation. After the Congress of the
United States granted an exemp¬
on
tion
Federal
from
taxation
to
building and loan associations in
the
Excise
Tax
of
Act
1909, the
Commissioner of Internal Revenue
Savings and Loan League, as well
as
having acted as host for the
national
ferent
convention
occasions.
four
on
dif¬
The
day
same
April 8,
on
the first RWLB
as
unauthorized strike took place on
the Exchange floor on May
Rankin
total
wage
we
Exchange
will
of W.
name
"Both of the decisions
Jan.
to
1,
the
retro¬
Including
week for floor clerks—
a
increase
be
present payroll.
In his remarks
for
10.5%
the
over
the Philadel¬
to
Megrue
First Vice President of the United
to
credit
wholesale
urban
reconstruction
the greatest civic
as
areas
challenge of the
"Year
after
of
post-war
years.
States
employees from $1.02
and restricted
narrow
con¬
struction, which would have de¬
Brock,
Dayton,
current
League, who will undoubt¬
prived associations throughout the
edly be advanced to the presi¬
the ben¬ dency at the next convention.
The significant growth in Ohio
entitled.
The
Ohio
Savings \ and
Loan League history dates from 1919
League again came to the rescue when the Ohio Savings and Loan
with suits well known in savings League established permanent of¬
and loan history, which were suc¬ fices in Columbus under the di¬
cessfully fought in the Federal rection of a fulltime executive
court, and defeated the restrictive secretary. In 1921 the League es¬
United States of many of
efits to which they were
efforts
ment.
of
the
tablished
its
partment,
League
under
Depart¬
V';.
/
..
The
Treasury
also
prosecuted,
the
first
?
publicity de¬
unique departure and
own
its
of
kind
to
be
main¬
own
authority, other
that, which became
as
the
Cambridge case,
where five Federal judges in the
tained
as
organization in Ohio. From 1919
to 1931 the assets of United States
United
grew
its
such
cases
known
States
Court
Claims
of
completely reversed the rulings of
the
Commissioner
Revenue,
which
of
Internal
denied
associa¬
tions proper exemptions under the
Revenue
This
Acts
case
Supreme
of
1918
and
of
loan
and
staged
and
remarkable
a
dollar
The
comeback
again close to the billion
are
mark
in: total
and
have
we
seen
the
away
economic
civic
health
stability of the old
districts."
The
problem
of clearing
away
the dinginess left in the wake of
this outward movement was ap¬
praised
by
Mr.
Greenfield
as
"staggering but not insurmount¬
with
pride
to
judgment of the lower court
many
other achievements, Ohio
savings and loan associations are
This
was
most
the
fact
that
in
addition
to
impor¬
tant
and
far-reaching decision
because it definitely determined
the rights of building and loan
other states in both
the purchase of Government se¬
associations
and the sale of War Bonds to the
was
under
acts
revenue
a
the
passed
various
since
that
leading
all
curities
for
their
associations'
portfolios
own
membership and the
time, which contain building and general public.
loan exemptions in identical lan¬
This
guage.
is
probably
the
crowning legislative achievement
of
the
Ohio
Savings
and
Loan
League.
vices to its members down
years,
be
mentioned,
ser¬
through
which
among
ren¬
should
particularly,
the
active part the League took in at¬
tempting to change Ohio's archaic
uniform rule of taxation.
the League led the
In 1925
fight for classi¬
fication which, although defeated
in that year, laid the
groundwork
for
a
successful
siveness by instituting and
spon¬
soring the first state wide indus¬
try-selling radio campaign. Scripts
for the broadcasts
the
three
cally
the
League
times
every
were
office
weekly
of
aired
practi¬
over
station in
encroachment
prepared
and
Ohio until
conditions,
brought about by the rapidly
ap¬
proaching
tion
of
until
a
war, made discontinua¬
the
program
advisable
more
favorable
post-war
period.
However, much favorable pub¬
was achieved in behalf of
Ohio savings and loan associations
and
numerous
plan
were
inquiries
on
the
received from associa¬
managers
and
state
leagues
throughout the country.
Many
in Ohio
annals.
have loomed large
Savings and Loan League
No
names
historian,
confine his efforts to
space
available
for
who
must
the limited
this
article,
c?.uId attempt to
VW tribute to
deserve public
recognition
their part in
promoting and
all who
for
as
home
leader in the thrift and
a
financing field.
Mr. Tobin
League as Direc¬
of Publicity in 1921 and was
started with the
tor
elevated to executive head of the
Ohio Savings and Loan
League
1940, at which time Donald A.
in
King,
formerly
managing editor
of the American
Savings and Loan
News, assumed the post of Direc¬
tor
of
Public
Relations.
Employees Pay Raises
The
situation
in
as
the
key to its
neighborhood
"Good
He added:
tion
referred to in these col¬
result of
May 6, page 1687.
cellence in construction, in archi¬
was
of
umns
"When
tecture
Security Firms
Formed In Increasing
lumbers, NASD Deports
dreds withdrew from the
principally
business,
because
into
or
owners
of entry of
military service
This picture of the
work.
war
current situation
business
H.
in
the securities
drawn
was
by
Wallace
Fulton, Executive Director of
the
National
curities
Association
Dealers, Inc., at
of
Se¬
meeting
a
This illusive
hood product.
net
a
decline
for
the
period from December 31, 1942 to
30, 1943, the period was
April
marked by a steady increase in
applications for membership with
the
result
that
during
the
first
four months of the year the Asso¬
ciation admitted 30 new members
If
we
may
Concluding
his
remarks, Mr.
three-point
program of local action for urban
redevelopment, viz.:
"First, sponsorship by municipal
Greenfield
urged
authorities,
in
a
cooperation
with
business groups, of State legisla¬
tion
comparable to the recent
Maryland
the
Act
which
establishment
of
authorizes
municipal
land development commissions to
acquire land for private redevolpment;
•
\
•
.
"Second, the preparation of city
plans which give full attention to
the possibilities of rebuilding spe¬
cific
deterioriated
areas'
in
con¬
formity with accepted principles
of neighborhood buildings;
to
New
Magazines Cannot
Get Paper Allotment
neighborhoods. The neighborhood
has
become the real unit in city
planning. It offers the only hope
for
combining
the
undisputed
amenity advantages of small-town
living with the equally evident
cultural and economic advantages
of the metropolis."
The complex nature of building
afresh
out
on
sites that contain
worn-
buildings requires certain
operation
on
and
task
co¬
the part of Federal,
governments for
local
acquisition, in the opinion of
Mr. Greenfield.
"The monumental
of
rebuilding," he said, "is
of undertaking that the
imagination,
inventiveness
and
daring of American business is
especially equipped to do."
the kind
The
advices
from
end."
that
neighbor¬
a
want to pro¬
in the old areas, we must
them completely by
rebuild
land
show
factors
on
quality of livability is
of the Board of Governors of the
although NASD membership fig¬
of
be
or even on a
NASD.
reported that
in
lavish
can
lot,
State
Mr. Fulton
it is present, it is the
planning. All of the ex¬
and
CHICAGO, ILL.—New organi¬ duce it
zations to deal in securities have
been formed in growing numbers
combination
landscaping that
a
single city
"Finally, the formation of local
single city block,
civic groups to explore the pos¬
cannot create the livability that
sibilities of urban redevelopment
is now competing with the dis¬
and to engage in public education
tricts we must save.
we
New
this
the
Institute
state:
The
War
Production
Board
on
May 15 warned publishers and
prospective publishers against the
issuance of
out
magazines with¬
new
permission.
vices
further reported:
Officials
public
United Press ad¬
said
that
-
increased
interest
in world affairs
and the technical,: aspects of the
war, such as aviation, radio and
chemistry,. has prompted many
publishers to consider publication
of new magazines.
"Any publisher who did not is¬
a magazine in
1942, the base
period, has no allotment of paper
sue
for
publication,"
a
WPB
state¬
ment
said.
"Some
prospective
publishers have assumed that this
limitation
order
does
not
with nine applications pending as
of April 30, when the Association
poses
ment extend its credit to the cities
had 2,221 members.
apply
impres¬
decreasing supplies of
wood and wood pulp make it nec¬
for
essary
1942,
NASD
more
than
"Entry
into
the
At its peak in
members
numbered
2,900.
of
organizations
has
not
as
yet
the
that
this
Federal
Govern¬
type of land acquisition.
to them.
sion.
This is
a
wrong
The
to curtail usage by estab¬
lished
magazines, which means
stated, is that a request for an allotment
primarily concerned with pricing of paper to start a new publica¬
and profit policies of members.
tion will probably not be granted."
program,
new
business
"The Urban Land Institute pro¬
Mr.
Fulton
been in volume sufficient to offset
declines in our membership which
WLB Gives All NYSE
which
384
occur for a number of
reasons, in¬
cluding expulsions, but it has been
encouraging that new members
and new applications for member¬
ship have increased noticeably in
,
employes of the New recent months," Mr. Fulton said.
Stock Exchange were Another indication of the healthier
;.V
What
a
treat...
^
v;J&3
unionized
York
granted
a wage increase while 531
non-unionized employees received
higher pay was resolved on
May 21 by the Regional War La¬
no
bor Board
in New York with
ap¬
proval of increases for the remain¬
ing workers. All of the increases
are
retroactive
The
licity
tion
counselor, nationally recog¬
classification
fight in 1929.
Again in the spring of 1941 the
League demonstrated its progres-
by
loan
nized
However, the League has
dered other and far-reaching
the
League's brilliant execu¬
tive secretary, Don L. Tobin, is an
experienced and able savings and
cited
was
last month for equal treat¬
ment for all
employees; his peti¬
ures
The
areas
Schram, President of the environment," he said, "is not
Exchange, appealed to the created by accident in this age."
WLB
low
with
a
process
Emil
Stock
over
peripheries," he said, the type of rebuilding that is ac¬
has been continually tually needed by the community."
newer
solution.
the
resources.
League points
States by the Government but the
affirmed.
$1.12."
over
$1,250,000,000. Even after depres¬
sion
shrinkage in values, Ohio since last December in
contrast
savings and loan associations have with the trend in
1942, when hun¬
the
to
the
savings
any
savings
and
loan associations
from $381,000,000 to almost
United
appealed
was
Court
1921.
by
to slightly
purchase of land,
the use of Federal
long period of time
interest rates, so that
suggests
employed to absorb any dis¬
our
substantial
citizens
follow crepancies
between
the
actual
each other to the periphery of price paid for land and the new
the city, and there establish newer value put upon it to encourage
year
hourly earnings of
a
subsidies for
or
but
This will lift the able." The creation of good neigh¬
the total 915 borhood environment in the old
sought to give the language of the
Act
.
are
1943.
the April 8 order—an increase of
can
phia group, Mr. Greenfield pointed
and
$2 to $5
well add the
manpower and industrial capacity
"easily involve $25,000,000,000 in work and material
in the first few years following the end of the war" is definitely
possibly if government will cooperate with private business in
rebuilding worn-out city areas, Albert M. Greenfield, Philadelphia,
Chairman of the Urban Land Institute Executive Committee, declared
In an address May 18 to the Phil¬
The Institute proposes no grants
adelphia Poor Richard Club.
in work that
history of the Ex¬ draining
v'
change.
active
may
Challenge To Private Enterprise
Employment of the Nation's
10, "The
the first in the
four; past
presidents
include
Ferd
Bader,
Cincinnati (1899); James M. Mc¬
Kay, Youngstown (1911); L. L.
(1918), and J. E. Kinney
(1923), of Columbus. In addition,
Posl-War Rebuilding Of Cities Galled
the issuance of the 'hold-the-line'
brought its forces to Columbus in extending the welfare of the sav¬ decision granting pay rises of
$2
special trains and marched in a ings and loan movement in Ohio to $5 a week to floor clerks on
solid phalanx into the hall of the and throughout the nation.
the Exchange. As a result of this
Ohio might be accused of self¬
House of Representatives on the
order, four applications of the Ex¬
evening of March <15, 1911, and ishness in claiming such founding change asking similar increases
fathers as Herman F. Cellarius,
made known its opposition in no
for its remaining
workers were
of the United
States
uncertain terms. This was prob¬ Treasurer
frozen.
ably the most spirited hearing Savings and Loan League, and
"On May 12 a directive on Ex¬
ever
heard
in
Ohio
legislative Henry S. Rosenthal, editor and ecutive Order 9328
by Economic
hallS.
publisher of the American Sav¬ Stabilization Director James
F.
Time and again the Ohio League ings
and
Loan News, both of
Byrnes opened a way for approval
has similarly defeated the efforts whom have for half a century
of the remaining increases to cor¬
of those who have attempted to been prominently identified with
rect intra-company or intra-plant
foist harmful legislation upon the savings and loan affairs nation¬
discrepancies.
Ohio
has furnished four
savings and loan associations of ally.
"In the meantime, a 10-minute
Presidents of thel United States
the state.
is
Thursday, May 27, 1943
ment
Labor
to
Jan.
Board's
1,
1943.
announce¬
explained the ruling
as
of
the
business, Mr.
the response of
mid-year assessment
billings of the Association.
Nor¬
mally, he said, a number of with¬
said,
members
was
drawals of inactive
members fol¬
he added.
year,
NASD is accumulating a wealth
of valuable information
"The new increases range from
33 cents to $12.81 a week for the
531 employees of the
of
the
Exchange,
Corp.,
Stock Clearing
the New York Quotation
Co., and
the New York Stock
Exchange
bers'
business
on
Co.,
cents
the
ance
for
men,
7.2
cents
for
mainten¬
the
re¬
for
special
it
■:v
:;■>.:/
..•"
•
'
'• "V '"
occasions!
practices
through
year's exami¬
program, Mr. Fulton re¬
ported to the Board. This second
the medium of this
nation
annual
examination
is
about half completed
now
of
members
and
all
building
save
mem¬
balance
of
examinations
wholly-owned the
subsidiaries
of
the
Exchange. should be completed well before
Average increase per hour is 6.4 the end of the year, he said.
cents for quotation
employees, 6.8 NASD, through its Rules of Fair
Building
I'll
to
low receipt of assessment notices.
No
such
exodus
occurred
this
fol¬
lows:
and
condition
Fulton
Practice,
over
has
disciplinary
members'
maining Stock Exchange employ- public.
This
power
dealings with the
year's
examination
ROYAL RESERVE
60% grain neutral spirits. Blended whiskey, 86 proof. Schenley Distillers Corporation, N. Y. C.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4180
157
Can The U. S. Support
A Gold Standard Based
A $300 Billion Debt?
in
raised
Upon Gold Bullion
thrift,
way—by
only
groups,
hard work, more hours
of labor, and this applies to the
national economy as well as to
war
the individual.
economy,
who are studying post¬
planning.
It is about time
we got down to earth instead of
wasting our energies on high-
I
am
that
sure
articles
benefit
constructive
this
at
Brooklyn
President,
thesis
that
is
time.
I
it,
see
fundamental
the
debt
the
of
the
to
in
the
that
me
lic
students
I i
put
rather
upon even
alive
basis.
safe
by
Professor Sax¬
on's
various
is
as
timely.
Dr.
I
issues
Ander¬
G.
done
McLaughlin
V.
fine
a
from the
W.
the absurdities
erably
White plan for
been the
case
he
level
that
than
this is
to understand that
only reason for these
the
I
believe
plans being proposed, enthusiasm
for
their adoption is likely
to
written
wane,
in
and its
GASSER
W.
is
problems
sound
I think there is some very
thinking forwarded by Mr. Saxon.
There are some things, however,
with
First, T cannot agree that
quite
cannot
that
I
him
on.
agree
an
international
that
I
that
has
all
unless
we
have
coin
ber
the
troubles.
75 billion dollars per year.
over
I
the
"Due
quite agree with Mr. Saxon
that
must
be
larger
come
revamped
to
secure
a
yield from the lower in¬
Whether this can
or
antagonistic
the
tax ^structure
groups.
done
be
Federal
the
it
desirable to re¬
is
results of operations to
of
face
wealth
idea
ticians, is
on
in
and
of
completion
the
part of poli¬
much doubt if American
industry can hold its own in the
coming years.
Hostile Govern¬
on
trolled
one
unions
side
and
the
on
uncon¬
other
are
stockholders
currently
would suggest
we
tice
be
sent
as
soon
revised
the
the
old-fashioned
individuals who believes we
not
I
if
of the gold
country is
a
if its
based
way
may
have
If
and
spend ourselves to prosperity.
wealth comes only
production.
I believe in
low-cost mass production.
I be¬
lieve you can not
.
enrich the poor
by destroying the rich.
I believe
our
standard of living can be
would
If
case.
the
is
scope
of
depend
in
each
would
have
still
appear
that the
a
a
the
upon
individual
change in earnings
relatively small,
order
of such
brief notice
a
desirable
stockholders
,
in
may
States is
United
gold basis.
the
a
United
becomes
States
buyer and a seller of gold
THE
plfe
If
Harper, has
of
Manpower Commission
accepted a post with the
Deputy Chairman
resigned
the War
and has
Board of
WMC Chairman Paul V.
accepting Mr. Harper's
ports.
resignation praised his services in
helping to organize the agency.
complete understanding of
393
the gold
is in some
on
the
the gold
Notice is
the
hereby given that in accordance with the provisions of the
State of New York the Board or Directors of 1 he
Equitable Life Assurance Society of the United States has nominated the
following named persons as candidates for election as Directors of said
Society:
JAMES B. BLACK, San Francisco, Cal.
President, Pacific Gas & Electric Co.
'
•
JOSEPH P. CHAMBERLAIN, New York,
Director, Legislative Drafting
Research Fund of Columbia University
i
Richmond, Va* j
historical writer
1
WILLI AMJ. GRAHAM, New York, N. Y; 1
"
I
I,
price of gold should be so
regulated that there is a demand
for gold in the commercial and
purpose
raise
or
lower the
should
operate in regard to gold
just
it operates with any other
as
commodity.
any
gold
There
need
not
be
of the gold
content
make
ment which has taken
dium unstable.
me¬
Any change would
•
/
Pa.
Corporation
Baltimore, Md.
Counsellor-at-Law
TODD, Washington, D.
G. CARROLL
Counsellor-at-Law
j
A certificate of
V
;
G
.
'
.
.
:
nomination of the said candidates has been
Department of the State of New York.
duly filed
r!
with the Insurance
of Directors of The Equitable Life Assurance Society
of the United States will be held at its Home Office, 393 Seventh Avenue,
The annual election
New York,
N. Y., on December 1, 1943,
from 10 o'clock a.m. to 4
constituting one
o'clock p.m., and at said election twelve Directors,
Class of the Board of Directors, are to be elected for a term
of three years
Policyholders whose policies or contracts arc in
election and have been in force at least one year
entitled to vote in person or by proxy or by mail.
from
January 1, 1944.
force
on
the date of the
prior thereto are
A
dollar
the circulating
JESSE SLINGLUFF,
,
fear that this change in the
would
"
Brooklyn, N. Y. \
of the Board, Brooklyn Trust Company .
'
con¬
gold dollar in order to
make
the
government
both
a
buyer and a seller of gold. That
is the law of supply and demand
Manufacturer
,
LEONARD PECKITT, Allentown,
of maintaining the value
to
,
[
Fitchburg, Mass;
President, Warren Foundry & Pipe
of gold on a
commercial basis. If
at the
price of one dollar for
15 5/21 grains of gold there are no
buyers, then the price of gold is
too high.
There should be some
government authority estab¬
'
Chairman
the
for
Texas
EDWIN P. MAYNARD,
The
This is
Society
Counsellor-at-Law
RUSSELL B. LOWE,
price of 15 5/21 grains
price.
world.
"Vice President of the
EUGENE P. LOCKE, Dallas,
of gold at that
industrial
.
Newspaper editor and
grains of gold for one dol¬
the circulating medium, it
the
J
DOUGLAS S. FREEMAN,
gold in the cir¬
If the govern¬
either
buy
or
sell
15 5/21
DODGE, New York, N. Y:
Remington Arms Co., Inc.
culating medium.
will
(
Chairman, Board of Directors,
lish the value of
ment
N. Yj
BERTRAM CUTLER, New York, N. Y. \
Member Personal Staff, John D. Rockefeller, Jr. j
M. HARTLEY
being both a buyer and
a
seller of gold bullion.
If the
government will both buy and sell
gold at a fixed price it will estab¬
fixes
New York, N, Y.
Insurance Law of the
.*
be brought about by the gov¬
of
UNITED STATES
Seventh Avenue
Notice of Nomination of Directors
ernment
lar
LIFE ASSURANCE SOCIETY
then
Here is my plan for making
can
EQUITABLE
OF THE
on
gold
still
standard.
the financial effect of the adjust¬
place."
Fowler V.
as
gen¬
tent of the
extent
Harper Leaves WMC Post
money
standard.
money
upon
The
can
believe
from
as
results
The
have had various modi¬
years we
lished
circumstances
of
everywhere.
American dollar when based upon
containing a certain num¬
grains of gold. In recent
operations have been determined.
notice
one
upon
stockholders
to
try and business.
am
that,
these proceedings
which affect a previously
pub¬
lished earnings statement, a no¬
of
badly crippling American indus¬
I
feel
keep
informed
is your intention to
it
and
doubtful.
renego¬
and
the operating figures, we
sure
redistribution
Government
the
of
results
the ef¬
that the settlements may have
an
I very
ment
the
current in¬
great
proceedings
in the face of
not
very
tiation
fect
the
to
in
terest
on
value
commodity
a
of
But
Our present
national income, in my opinion, is stockholders as soon as possible
greatly enlarged by federal spend¬ after the close of the year, the
ing.
When
we
begin to live earnings of a number of compa¬
within
our
income
and
stop nies were reported as subject to
squandering the taxpayers' money, the renegotiation provisions of
I very much doubt if we can main¬ the National Defense Appropria¬
tain a healthy national income of tion Act.
big dose of inflation.
is
it
mean
By
that the monetary unit was a gold
Renegotiation On
Earnings, Schram Urges
"Because
value.
international value.
value.
standard
lease
Accord¬
The gold standard used to mean
Disclose Effect Of
a
money
money,
international
have
must
To
currency?
international
Gold has
$75,000,000,000 will be salvaged on
Emil Schram, President of the American dollar an international
from * governments'
New York Stock Exchange, sug¬
monetary unit. I am in favor of
debts to us, etc. No foreign gov¬
a
gold bullion monetary system.
ernment except poor little Fin¬ gested earlier this month, in a
letter to the heads of corporations There is no good reason why gold
land even attempted to pay their
should be coined at all. The es¬
indebtedness
caused by World having securities listed on the Ex¬
sential feature of a gold standard
War I.
How can we hope for any change, that they inform stock¬
holders of the results of any re¬ is that whatever money is issued
better treatment in this war?
as a
circulating medium it must
Second, Mr. Saxon thinks we negotiation proceedings and the
effect that the adjustment may be redeemable in gold—not gold
will have a post-war national in¬
coins but just gold bullion.
; =
come of
from 100 to 150 billion have on their operating earnings.
This feature of redeemability
Mr. Schram's letter follows:
dollars.
I cannot see any such
at
American people.
ing to my plan any nation could
get gold from the United States
by giving
equivalent value in
goods for gold.
be
an
lend-lease,
income
basis, how would
gold bullion
that make the American dollar
any
economists
and
intrinsic
debt
into
should
States
its monetary system on
establish
a
United
both
the
run
dis¬
Sam
In the BEW's Office of Imports,
bullion, other nations can obtain
gold by selling to the United Mr. Harper will be in charge of
must have intrinsic value or be States some of their own products (procurement
and economic de1
redeemable in money which has receiving
dollars which can be velopment in occupied countries.
President, The Gary State Bank,
,
the
the gold standard means the redeemability of all our money in
gold coins then the United States
is not now on the gold standard.
will
of
Uncle
gold gratuitously he is
giving away what really belongs
McNutt in
of
which
certainly
kind
when
real
basis
the
system
fications
worst
Gary, Ind.
seems
erally believed that sound
not handled
are
There
what
to be quite
clear
make
to
because
Economic Warfare's Office of Im¬
well
if
his proposal
discuss
a
of the gold supply, it
is to the advantage of other na¬
tions to remain off the gold stand¬
ard.
My plan offers the: best
method for the distribution of gold
among the nations.
Many of the
plans which are proposed for the
distribution
of
gold really are
plans for the United States to
play Santa Claus and give its gold
away.
Every such plan is an in¬
justice to every American citizen
gold bullion will be recognized
internationally because it has a
made
very
a
and
If
pro¬
careful and conservative way,
a
we
W.
this
article
in his
suggests
not
means.
ciers
First National Bank of Peoria, 111.
comes
gress
mone¬
also
As long as
maintains
States
must have intrinsic value. Finan¬
existed
whidh
does
national
that, in essence, these plans
are
nothing more nor less than prior to 1941.
devices
for
turning
over
the
HAROLD L. HARSCH
assets of the people of the United
Vice President and Cashier, The
States to other nations.
If Con¬
fact
to
return
inter¬
be
adopted.
This is because of the
idea
that
a
monetary standard
be
The huge volume of cur¬
tional banking rency and bank deposits created
Wilford I. King
system. He and yet to be created out of war
has extracted financing would seem to insure a
from the maze of camouflage the considerably higher general price
prices.
interna¬
an
is what W.
mind
general agreement that gold must
the basis of 1940
on
in
have
sufficiently
consid¬
would have
than
easier
not
monopoly
to the
in¬
an
should
United
selling.
posal concerning the "free dollar."
the servicing of this debt
of the Keynes-
will
tributes his
Perhaps
currency.
Aldrich
He
will probably make
war
I
dollar
It
system.
the
deemable in gold bullion through
the regular process of buying and
the
of
am
what
the
price
general
once
ternational
level resulting
piece of work
i n
exposing
gold is not as essen¬
monetary system
sound
a
was
make the American
the
in
rise
also
has
son
ma¬
think
a mone¬
buy
the price of one
dollar of its circulating medium
for that number of grains.
The
circulating medium should be re¬
opinion that the
United States is in a position to
ture.
I
beginning
are
thought to be. Any
monetary system must necessarily
be managed to
some extent by
government regulation.
'
<•
re¬
they
therefore very
to
it
as
the
funding
article
tial
g, but
that it
n
of money
to realize that
be kept
will
reasonably
a
i
gold
and sell gold at
of anyone now
try cannot be
way.
standard unit for its
tary
tary
lifetime
v
number of grains of
gold standard as essential to
honest money. I think that many
the
is
this
any
ply requires that the government
by law should make a certain
evidently regards
Iglehart
in
The gold bullion standard sim¬
the
done, the coun¬
until
1.^^:0
Mr.
paid off
during
and
disturb business
World
before
textbooks
most
War
will
debt
not be
Govern¬
banks,
to
appears
post-war pub¬
most
our
postwar problems is
retirement
ment's
of
speakers have in mind the
theory of money taught
orthodox
It
v
University
one
and
that it will be.
Economics,
York
New
As
of
world
gold standard until there is a
wider distribution of gold ampng
the different nations.
upon
said about money
'
Professor
States
any
placed
$300,000,000,000 can be serviced
and repaid without devaluation—
notnecessarily
WILLFORD I. KING
United
"honest money." It seems to me that in much that is
there is implied certain conceptions of the nature
and
function of money.
These**
conceptions show that the writers be so slight that it would not
it, Dr. Saxon's
post-war debt of
a
The
others
provoked by his article.
been
the
government.
In the article entitled
"International Currency," by Dr. Stewart Iglehart, much emphasis is
Co.
Trust
have
from
bullion
"The Future of the Gold Standard" and also the discussions by
As I understand
this subject will be of
on
Normal, 111.
I have read with much interest the article by Dr. Kemmerer on
which
such fine
more
By WILLIAM T. SKINNER
george v. Mclaughlin
sounding theories that are imprac¬
ticable of accomplishment.
exchanged for gold bullion. For
example, if Brazil desired to ob¬
gold bullion, the government
of Brazil could buy coffee of its
producers and sell that coffee to
United States importers for dol¬
lars with which it could buy gold
tain
(Continued from first page)
placed in the hands of those agen¬
cies, and particularly those in¬
dividuals
representing
business
1967
May 25, 1943.
ALEXANDER McNEILL,
Secretary.'
.
1968
THE COMMERCIAL & FINANCIAL CHRONICLE
ness
Industry Has Every Chance To Meet Successfully
Challenge Of Post-War Production, Employment
Small Businesses
American
of
post-war
est
it
chance
every
America's great¬
natural
is
this
upon
of meeting
level
the challenge
intiative
that
to find ways
and
born' of
free
rely
to provide the highwhich
must
production
meeting of the National Industrial
"In order to arrive at a
Conference Board at the WaldorfAstoria
last
goal, let
Hotel
(May 26), Mr.
Hoffman said:
is
my
opin¬
that
ion
spe¬
phase
dustry
will
would
Its
levels
failure
endanger
do
to
so
free society."
our
He declared that
"attacking this
high-level pro
duction and employment gives us
of
task
insuring
businessmen
an
inspiring
chance—by bold action based on
as
bold
planning—to
great
world.
new
fighting
world
and
to
help build a
Americans are
dying
preserve
all
and mine. The least
we
the
over
do
can
to insure for their return
is
better
a
post-war world—a world in which
boys and mine may be
your
sured
of
of
the
all—the
security
that
security
of
war
economists
when
even
will
million
something
with
normal
a
have
a
work-week,
to
reasonably satisfactory sit¬
uation—58,000,000 as against the
1940 level of 46,000,000. Approxi¬
mately 2,000,000 of these will be
in the armed forces.
"Jobs
goods
stem
and
nomists
from
services.
estimate
The
that
to
of
eco¬
provide
56,00,000 jobs our output of civil¬
ian goods and services would have
to
total
between
$135,000,000,000
$145,000,000,000 a year. You
and
appreciate
the job
that
we
the enormity of
face when I tell you
in
1940, when we produced
"Industry must attain a high more
goods and services than in
level of employment quickly after
any
previous single
year,
our
peace comes, because it has been
gross
output
totaled
less
than
long recognized that too much
$100,000,000,000.
unemployment for too long is a
"How
can
private
industry
direct invitation to dictatorship.
achieve the high-level production
Perhaps what has not been so
necessary to provide what we con¬
clearly recognized is the impor¬ sider
^satisfactory level; of em¬
tant fact that, if Government pro¬
ployment?
vides too many jobs for too long,
the
will
result
exactly the
same, so far as the effect on the
maintenance
of
free
society is
concerned.
Too much unemploy¬
ment, too much Government em¬
'
ployment,
death to
either or both,
free society.
a
"While
must
we
for jobs in private
forefront
of
of
"I
be
spell
keep the need
industry in the
minds, only out
high-level production in pri¬
industry can we be assured
should
ment have come to two main
"1.
Individual
prises must start
own
war
the
reasons
high
for
its
standard of
maintenance
of
attainment—a
living
our
and
the
free
enter¬
to plan their
markets;
"2.
The
able
completely
business
now
post-war products and post¬
post-war
disregarded
to
prise.
"As
have
period
the
must
expansion
in
the
be
favor¬
of
enter¬
:
as
I
am
confidence
concerned,
whatever
I
in
the
ability of any agency—public
private—to make overall plans
or
for
our
economic
system,
or
for
business program.
But I do
have the highest confidence in the
our
could easily
temporary job for everyone who
wants to work by giving up steam
own
shovels
and
individual
shovels,
or
going back to hand
by adopting a 12-hour
to
plan
for
the
businesses.
future
of
men
their
That's why I say
enterprisers must do
this planning for themselves—and
I
mean
all
3,000,000 of them.
revised
and
can
than
ours
the
change
America
the
with
in
solution
address
an
the
made
National
Act
for
the
and
Form
ends
war
the world will be
bor.
the
In
graphical
becomes
in
my
country
every
close neigh¬
our
light
in
this
of
revolution
geo¬
isolationism
Publishers
balance
opinion, those of
who
isolationists
as
us
Association
to
bring
newsprint into
newsprint produc¬
of
with
tion to check the decline of stocks
hand.
on
thing of the past and,
a
Newsprint Use
consumption
In
must
be
are' headed
down
a
blind
alley."
its
ing
-
I
-
current
2%: increase
a
by
W.
H.
Duff,
Association
of
of
Duff
& Phelps, Chicago,
Savings Banks.
Mutual
mortgage loans under war conditions
analyzed by Charles F. Chubb, President of the Dollar Savings
Bank, Pittsburgh, while the ques-<S>
tion of granting
to all mutual saving is by the school savings
savings banks the privilege of system."'
*
.
mortgage
loans
Harry
J.
President
beyond
reviewed
was
Landbeck,
Vice-
the
of
Hopkins
Savings Bank, Baltimore.
Place
in
newsprint
April,
the
ANPA asserted that "the situatioii
during
not
so
print
was
address, L. A. Tobie,
President of the Meriden (Conn.)
Savings Bank, discussed the ques¬
tion whether private lending in¬
stitutions, such as mutual savings
banks, should raise the ratio of
of
cussed
Boston,
"How
who
dis¬
We
Ob¬
Can
tain More Accurate
the
C,
Problems
and Walter R.
of the
G.
Taylor,
President
Savings Banks Association
of
the
under
war
conditions,
MacCornack, Dean
School
of
Architecture,
casual review
a
statistics
shows
of all recent
that
mill
Massachusetts
Institute
of Massachusetts and Treasurer of
nology and Chairman of the Com¬
mittee
Bank, stressed the cultivation of
public good-will as an essential
need for mutual sav¬
The
bulletin
further
said:
The
savings
necessity
in
time
a
for
of
national
emphasized at the
May 6 by Judge Ed¬
ward A. Richards, President of the
on
East New
York
Savings Bank of
Brooklyn. Declaring that "school
savings perhaps are more impor¬
tant than
ever
before," Mr. Rich¬
ards added:.
"The generation now in school
been subjected to the
theory
I hat the people of a nation
may
spend its way to prosperity. Great
emphasis has been and still is
upon
Government
security for old age.
heard
about
the
.
social
They have
prospects
of
a
provision for $30 every Thursday.
some of them, WPA and other
relief programs have brought the
For
only security that they had. Un¬
til a year or so ago thousands of
boys and girls in our country
knew of
no
Post-War
other
source
Reconstruc¬
else
is
of fam¬
ily income but relief checks, and
prospect of anything else.
At
no
the present time jobs and money
;
the fact that the stocks of
newsprint
hand in newspaper
on
plants dropped to 52 days' supply
the
end
of January,
1943.
This
supply of 52 days on hand at the
end of April, 1943, is in contrast
with 54 days' supply on hand at
immediately
to
bring
consump¬
tion into balance with
next month the decision
of
use
no
involving
than
newsprint
more
they are now able to get; because
tects; whose remarks dealt with continued use" of
newsprint out
building "in the light of post-war of stocks will
impair ability to
•
the
meet
school
emergency was
meeting
on
reconstruction."
vital
.
"More disturbing than anything
tion, American Institute of Archi¬
ings banks.
stocks
generally have been going down,
and the
same
thing has been
happening with the stocks in the
hands of publishers."
•
V
production.
"Publishers, generally speaking,
of Tech¬ cannot
delay until next week or
the Worcester Five Cents Savings
war-time
news¬
Connecticut
mortgage loans to conform more
closely with standards of the Fed¬
Housing Administration.
if
Evaluations?";
Northrop, President of
Savings Banks the end of April, 1942.
Association, and Vice-President,
"Newspapers seem to be head¬
Waterbury (Conn.) Savings Bank, ing for an evil day which will
who surveyed
Banking Personal come soon if steps are not taken
Edwin
eral
Harrison
serious
being manufactured
stocks growing at the mills,
with
but
be
Among other speakers at the at the end of April in contrast
meeting were William P. Snow, with 56 days' supply at the end of
Jr., President of the Suffolk Sav¬ March, 1943; 60 days at the end
ings
Bank
for
Seamen
and of February, 1943, and 63 days at
Others,
In another
;
bulletin, report¬
consumption
were
their State borders
Instruction
2-MD."
Newspapers were urged on May
19 by the American
Newspaper
The benefits of amortized
making
adop-
and, N-
Commission
To Gat
are
By the time
utility prospects, from the- investment viewpoint and
development of the country, were viewed as essentially encouraging
before
the
N-30A-2
ANPA Warns Of Need
the
of
nautics all natural boundaries
persist in thinking
r;
entirely
an
'30's.' Because of the great strides
being made in the field of aero¬
to
as
period will hold
different position in this world of
unknown developments
future; certainly until this
of the.
SEC's New Annual Report
Forms'For Investment Cos.:
The
Securities
Commission
the
and
adoption of two
forms
report
ment
signed
unit
Exchange
May 8 announced
on
under
new
annual
the
Invest¬
is over,
war
The
>'
April increase in newsprint
consumption
in
the
over
compared with
decrease from April 1941
the first four
For
there
month
same
1942
5.1%
a
month.
months of 1943
decrease
of 2.4%,
Company Act of 1940, de¬
particularly for use by compared with the like 1942 period
investment
trusts
currently
issuing securities and by unincor¬
and
was
a
5.1%
a
decrease
period two
same
under
years
management investment
companies currently issuing peri¬
odic
payment
plan
certificates.
These forms, designated Form N30A-2
and
Form
N-30A-3,
re¬
spectively,
Chicago
Act of
1940
held
tion
(d) of the Securities Ex¬
15
also
under
Sec¬
change Act of 1934, thus eliminat¬
ing duplicate filings under the
two Acts.
They supplant Form
2-MD insofar
as
that form is ap¬
v
f
Chicago S. E. To
Change Closing Time
are prescribed for use
by such companies in filing re¬
ports not only under Section 30
(a) of the Investment Company
but
the
ago.
porated
plicable to these types of invest¬
But it is obvious that these
are
plentiful
but,
of
course, ment
companies..
jobs would not last long.
Only a small part of the neces¬ money is not worth so much and
"In my approach to this prob¬
Commission's
announce¬
sary job can be done by the ap¬ may be worth less. After this war H; The
ment added:
;
lem of post-war employment in
proximately 500 concerns which comes to an end there is likely
private industry, you will note I properly can be classified as large to be a great campaign to
"The forms are designated to
buy;
use the
term high-level employ¬ employers. The real shock
troops buy now and pay later; buy upon bring up to date, as of the close
ment, and not full employment. of this campaign of bold and in¬ the instalment plan. • *
of each fiscal year, the informa¬
■
*
*
*
telligent planning by individual
"Now that there is a real fam¬ tion originally furnished in regis¬
tration statements filed under the
"If we are to succeed in our enterprise are the smaller busi¬
ily income, more especially it is
efforts
to
attain
a
satisfactory nesses and the men in business our bounden duty to do all we Investment Company.Act. Most of
week.
Forms
30A-3,
Book
Public
placed
far
no
of
Investment Company Act, Rule
X-15D-2 under the Securities Ex¬
this
on
has
environment
society.
provide a ability of individual business
Industry
con¬
clusions:
of the kind of
we
that in the
Commitee for Economic Develop¬
us
goal,
you
connection
tion
also
amended Rule N-30A-2 under the
extent
Utility Prospects Held Encouraging
By W. H. Buff Speaking At Mutual Banks Meeting
that
answer
consideration of this problem the
men
associated with me in the
vate
jobs that will bring
high standard
of
living.
High-level employment by itself
is not enough.
High-level em¬
ployment alone could be attained
very easily if, in striving for that
to
question by telling
our
a
like
Some
report
possible.
fullest
Public
by
the output
"In
put
less
no
such
would
"2.
estimate
several
is
the competitive system
disappearing rapidly.
vigorously the entrance
will be created,
effort
every
file
not
All Americans must recog¬
nize that the America of the post¬
-
enterprises—where jobs
year
fighting stops, we
to
provide regularly
like
58,000,000 jobs,
have
oppor¬
part, Mr. Hoffman also said:
of this
the
war
restoration
a
risk-taking
so
make
competition
before February 28,
or
prior to June 30, 1943.
gov¬
brought into full play.
of venture-capital into productive
homes after the
:
,
stimulate
were
into
on
need
Competition is a stimulant for the
enterpriser. Without it his initia¬
fI%'1' '*V1V
$
-
There must be
tax laws must be
satisfactory.
million
women, along with overage and
underage men, return to their
can
tunity."
In
vital
most
as¬
not
nine
the end
"Leading
freedom
your
V'.V
#
that
see
annual, report on either of
for any fiscal year
"4.
the
part of business and industry. Our
20,000,000 will be directly
engaged in the manufacture of
war goods.
employ¬
which, three
would have seemed
ago,
fantastic.
p;
1943
and
^ of?' the -"registrants'
registrant required to
a
forms
ending
tive and resourcefulness cannot be
strongly inclined to be¬
of rewards for
than
production
ment
to
force—and of this number
peacetime
years
am
the
of
year
an
these
Small
alive.
' business
must
—to
cropper.
V'lp *. # Jv'■
"1.
or
of 1943, it is estimated more than
64,000,000 people will be em¬
ployed in our working-fighting
II,
in¬
and
forces
was
six
"By
have to attain
Hoffman
\
"I
unemployed.
of
World War
armed
From
Europ¬
American
G.
A.',.'
specific
a moment
a
tougher file
even
stay
the; bedrock
Both
back
our
situation
cifically, after
ean
back for
working
armament production.
From
employment standpoint, the
an
more
the
the
in
the conclusion
of
1940,
in
after
World War II,
or
us go
come
■
studied
Paul
to
last peacetime year. lieve that a few conditions must
In that year approximately 46,- characterize
any
economy
in
000,000 people were gainfully em¬ which free enterprise is to remain
ployed in the United States. Less the structural base. Among them
\:
than 600,000 of them were serving are:
to
night
"It
will
riod.
is
ernment
economic
to
fiscal'('■
enterprise system.
"3.
employment
and employment successfully, if "given a prevail if the freedoms of busi¬
climate, given the courage to plan boldly, and ness and labor are to survive.
"But the economic environment
given the will to do the job," according to Paul G. Hoffman, Presi¬
dent of The Studebaker Corp. and Chairman of the Committee for —the business climate in the post¬
Economic Development, "because," he said, "the market is going war world-^must be favorable to
to
be
there
in,: a
expansion of enterprise or the
big. way."<e>—
soundest
of individual
planning
In
an
address
at
the
annual dustry's task in the post-war pe¬
favorable
late—and
them
business
re¬
must
we
However,
for
Certainly,
resources.
in 120 days after the close of each
tough for small, businesses to be
resourcefulness
of
one
sourcefulness
Economy Grows"
industry has
and
which is
found for the special problems of
small businesses. ~It has been too
they
vast proportion of that
a
initiative
"Grass Roots From Which
Business
economy ' grows—and
embody
Thursday, May 27, 1943
The Beard of Governors of the
Exchange
on
May
establish
2:00
weekdays and
on
Saturdays
of the
In
at
21,
o'clock
,
11:00
as
meeting
a
to
voted
re¬
p.m.
o'clock
on
a.m.
the closing time
Exchange, effective June 1.
announcing this action, Ar¬
thur
M.
Betts,
Board, said:
"The
Chairman
•
•
r
of
'
'
the
\
.
.
sharply increased volume
transacted thus far this year has
put
strain
a
on
the operating per¬
,
level
war,
of
we
employment
must take off
after
our
the
rose-
as
individuals
3,000,000
who
individual
make
up the
enterprisers
glasses and forget such in America.
meaningless terms as full employ¬
"These small businesses supply
ment.
We must be specific, and many
millions
of people
with
I propose to be specific when I their
livelihood.
They are the
tell you what I consider to be in- |
grass roots from which our busicolored
can, in all proper ways, to teach
the value of thrift and personal
economic independence; the value
of
regular
systematic
against the time of need.
the
items
quired
to
of
be
the
forms
answered
are
only
re¬
if
change has occurred during
the fiscal year in the information
of
recent
lean
our
members.
years
many
During
member
firms had reduced the number of
their
employees and
now
further
some
savings
One of. previously furnished.
best and surest methods of
"Reports on
Forms N-30A-2
teaching thrift and the value of and N-30A-3 must be filed with¬
the
sonnel
depletions and- dislocations- have
been
Caused
action
some
by
was
taken
the
to
war.
This
relieve,
extent, this condition."
to
Volume
157
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4180
-
-
Royal Bank of Scotland
pJ^Report^^-'j
Incorporated by Royal Charter 1727
(Continued from page 1956)
OFFICE—Edinburgh
HEAD
f
Branches
The
Scotland
throughout
instance
such
latest
of the Atchison, Topeka & San¬
ta Fe
8 West Smithfield,
Railway to call for
ment,
Bishopsgale, E. C. 2
49
in¬
volves the decision of directors
LONDON OFFICES:
3
Ohio
Our Reporter's
as
of
132,000
JE. C. /
that
fornia-Arizona
Charing Cross, S. W. I
pay¬
of Sept. 1 next, $33,-
Cali¬
road's
Lines
4^
per
cent bonds.
Burlington Gardens, W, /
tion
/»?;'•£? V, ';■>/.
r%
J.,'"
'•; J;','
lien,
from
insurance
Deacon's
Ltd.
Bank,
a
to show more and more this over¬
will also
Ohio
cent.
per
as
Telephone
mental
vestors
bank
learned
\
1817)
(ESTABLISHED
6,150,000
Reserve
Fund
Reserve
Liability of Prop.
_
8,780,000
£23,710,008
30th
£150,939,354
Aggregate
Assets
Sept., 1941
ALFRED
SIR
Head
the sale
public
the
to
ly held came into sight recently
the filing of the necessary
registration covering the project¬
ed marketing of 764,500 shares of
Gulf Oil Corporation stock.
with
At current market prices this
Manager
cated
has
block
enormous
George Street, SYDNEY
Officer
operations
largest
of
value
indi¬
an
approximately
and represent
in
part holdings of the Mellon Se¬
curities Corporation which had
been carried in inventory for
$35,000,000,
of New 8outh Wales Is the oldest
The Bank
largest bank In Australasia. With over
in all States of Australia, la
and
branches
870
New
Zealand, Fiji, Papua and New Guinea,
and
London,
it
and
efficient
banking
most
the
complete
to investors,
service
In
Interested
travellers
and
traders
offers
these
view
a
to
eventual sale. The balance con¬
holdings of other large
interests
who
are
concerned
sists of
countries.
OFFICES:
LONDON
Threadneedle
29
with
time
some
C.
Street, E.
Since
with Banks
arrangements
Agency
;
of
upward
of INDIA, LIMITED
6,000,000
contemplated.
Paid-Up
Capital
Fund
Reserve
Bank
conducts every
banking and exchange
The
also
description
of
5
is
$2,500,000 of fifteen-year
cent bonds of the Inter¬
per
Bakeries
state
Corporation, ex¬
The
business
is well-known
company
indicates
*'•'
bulk if
that the
,
and
6
7
King
in
part
first mortgage
cent bonds, of the Schulze
"
•'
'
V'
Current
indicates
report
that
£3,000,000
announcement may be near rela¬
£3,000,000
.
.
.
.
Twentieth-Century-Fox Stock
Cairo
tive to the sale by
Bank
LONDON
assumed
retire
per
region.
Baking Company, due in 1945.
I
"
'
FUND
to
used
be
issue
Cairo
PAID CAPITAL
RESERVE
will
Proceeds
6
of EGYPT
FULLY
of
its
Chase National
of Twen¬
holdings
tieth Century-Fox Film Corpora¬
AGENCY
William Street, E.
C.
tion
stock
running close to 700,-
all
Branches
in
principal
This stock, which is convert¬
in
ible
of
the
into
rate
SUDAN
the
one
common
share
for
at
the
one
and
one-quarter shares of the junior
Cgo. & Southern Airlines
Situation Of Interest
Common
of the
v.t.c.
stock
and
Chicago
all this
is being
work, which of course
handled without protest or grudge,
has now been added the impor¬
and
tant
heavy
duty
of
"ration
banking."
Suffice it to say that
the Lord should certainly punish
anyone
who calls the bankers
"money changers."'
these
holdings.
(Continued from page 1958)
police at
Fort Custer, Battle Creek, Mich.
12
over
was
equity,
selling currently in
just above 30.
is
the open market
The bank has been
common
& Southern
Airlines, Inc. offer a most attracive situation according to a cir¬
holdings of stock
to it as
First
of
member
a
of that
Cleveland.
in
spent
for
Boston
nearly all
years,
being
the
He also
ber of Commerce.
raid
air
in
warden
Bond
the
Hudson,
a
suburb, where his wife
resides.
He is just a few months
under the 38-year-old limit.
as
Day, of the company's
office, has succeeded Field
manager.
*
*
salesman with Wm. J. Mer&
Co., who was commis¬
in the Mar¬
a
icka
sioned last February
ines, has been placed in charge of
marine
recruiting at Cleveland.
He
manager
was
of
Mericka's
1935 and 1936.
Another
Mericka man,
Howard
Eble, who was assistant vicepresident of the company, has
Chicago
been
office in
transferred
to
Camp Crow-
der, Mo.
He was with Mericka's
13 years
of the
latter
the
izing in real estate securities. He
is in the Air Force Signal Corps.
of
the
disposing of
which accrued
collateral for loans over a
Clem Gunn,
The remainder
builder.
tool
working
decade ago.
of Robbins, Gunn
Co., and Tom Melody, of First
Boston
Corp., are employed at
Warner & Swasey Co., machine
Co.
the Harris Calorific
George Placky, of
at
They
are
are
Analyzed
Quoted
-
Reviewed
-
Special
Bulletin
Trading daily 7
to 5 p. m.
m.
a.
Service
Brokers.
&
(P. C. T.)
Orders solicited.
invited.
Inquiries
Compared
-
Booklet
and
Dealers
to
figures
Butler-Huff & Co.
are
St., Los Angeles
PRIVATE
York
New
WIRES
Chicago
-
'
TELETYPE
-
San
Francisco
-
Seattle
L.
A.
279
-
L. A.
280
cited below.
Insurance
Company:
capital stock of Century In¬
Co., Piedmont Fire In¬
surance
Co., Standard Insurance
Co., Standard Surety Co., and
World Fire and Marine Insurance
and Marine Insur¬
adelphia Fire
ance
demnity
Co.
CALIFORNIA
OF
210 West 7th
consoli¬
vs.
Co.
1
-
,
Fire
National
7
Insurance
^
.
Com¬
stock
of
Franklin National Insurance
Co.,
capital
owns
pany:
and Traders Insurance
Mechanics
-
Transcontinental Insurance
Co.,# and also 13% of National
Co.,
Insurance A Com¬
pany: owns capital stock of Em¬
pire State Insurance Co.
Agcriultural
pany:
owns
50% -of capital stock
American
of
Com¬
Insurance
Continental
Fire Insur¬
ance Co., First American Fire In¬
surance
Co., Niagara Fire Insur¬
and Cas¬
Co., and Fidelity
ualty Co.
ance
50% of capital
stock of American Eagle Fire In¬
owns
Co., First American Fire
Co., Niagara Fire Insur¬
surance
Insurance
ance
Co., and Fidelity and Cas¬
ualty Co.
Fire Association of Philadelphia:
stock of Lumbermens' Insurance Co., and through
it 55% of Philadelphia National
capital
owns
Insurance
Co.,
also
Insurance
liance
of
22%
Co.
of
Re¬
Phila¬
delphia.
Great American Insurance Com¬
(with Great American In¬
vesting Co.): owns capital stock
pany
National
American
Fire
In¬
approximately 90% of Roch¬
ester
American
Insurance
Co.,
90%
of
Great
Indem¬
American
of North Carolina
Home Insurance Co., and 10% of
nity
Co., 80%
American
Alliance
Insurance
Insurance
Home
Casualty Co.
Co.
Company:
:
Insur-f
Providence-Washington
ance
-Company:
capital
-owns
stock of Anchor Insurance Co.
Eagle
also
&
Sold
-
company.
Co., County Fire Insur¬
At least seven members of the
ance Co., Detroit Fire and Marine
Cleveland Security Traders As-^
Insurance Co., and Massachusetts
sociation are at night war jobs
lire and Marine Insurance Co.,
in Cleveland plants.
Bought
position and op¬
Some
interesting examples of subsidiary
of
*
STOCKS
BANK
"hidden
financial
eration
and was a trader special¬
:Jt
;
,
.
"hidden
Company:
Captain Charles Andes, former¬
ly
In
Fidelity Phenix Fire Insurance
Yv
./'••• ,tj
11
\
INSURANCE &
equity"
and
earnings" are combined
with the parent company figures
and reflect a truer representation
case
was an
Cleveland
John
basis.
consolidated
holdings and parent
tioned with the military
with
'
.
situation,
and net
owns
was
•>;
equity." Furthermore, there are also "hidden1
As a result of
liquidating values
operating earnings of such
fire insurance companies are fre¬
quently reported on two bases:
viz:
parent company basis and
this
Aetna
He
"hidden
as a
surance
the
Towns
and
On top of
#
000 shares.
EGYPT
the banks, both
handling the details
deliveries.
:•{
NATIONAL BANK
No.
of
the Middle West, and
discussion
in
market
circles
will find buyers in that
Office
be
of
efforts
less
in selling and
through
undertaken
Register
could
?',^y ' •
Insurance Stocks
earnings" represented by the difference between dividends paid bythe subsidiary on the holdings of#
.;
the parent company and the sub¬
sidiary's earnings which apply to
made successful without the tire¬
Boston
month.
of
not all of the forthcoming
Head
such drive
that another
pected to be offered early next
here
Commercial
Loan drive and
referred to
Club of Cleveland and the Cham¬
apparent in
in the forthcoming offer¬
area
ing
Executorships
and
Trusteeships
during the War
I, for one, doubt
especially busy
time
interest
this
£4,000,000
_£2,000,000
£2,200,000
Subscribed Capital
personnel
problems in which every bank
finds itself now.
Every one was
He
Little
Ceylon, Kenya
Zanzibar
further sales are
no
West Deal
Middle
London, E. C.\/
In India, Burma,
Colony and Aden and
Branches
And
shares.
Uganda
and
26, Bishopsgate,
Office:
Head
in
Government
the
Colony
notice the difficult
dated
is, its distribution does not
involve any shift of control of the
holding
to
of
block
NATIONAL BANK
Kenya
Loan
around Ohio and
talking with many bankers, large
and small.
One could not help
but
,
,
—
companies have heavy stock interests in
other insurance companies, but which are carried on their balance,1
sheets at substantially lower values than their real worth.
The dif¬
ference between their real worth and the balance sheet value is
tour
a
1-1248-49
Many fire insurance
the
though
property, since the combined Mel¬
lon
interests are
credited with
Bankers
War
Second
Teletype—NY
Gibbs, Manager Trading Department
A.
By E. A. VAN DEUSEN
\
-
8. A.
throughout the U.
substantial
But
the
$
«.
.
This Week
diversification.
with seeking
Berkeley Square, W. 1
47
}
?*V:
1
Changers"
Drive I have had the pleasure
block of stock hitherto close¬
a
DAVIDSON, K.B.E.,
General
the
involving
of
£8,780,008
Capital
Paid-Up
of
V.',''" 2 $' f'l
A; ' j. ^
"The Money
are
about the only type available.
One
[
valuable
this
tL.
4-2525
Bank and Insurance Slocks
not
have
demand
CITY
Telephone: BArclay 7-3500
Bell
NEW YORK
DIgby
Exrhamre
Slock
NEW YORK
BROADWAY,
120
offer¬
funda¬
that in¬
simply
themselves
to
our
most
Exchange
exchanges
information.
f<i
$35,000,000 Stock Offer
NEW SOUTH WALES
is
reason
on
the
Probably
the
which
governments
show it
cannot
ings.
leaves
and
company
leading
1 WALL ST.
we
of
other
Stock
York
New
Members
and
bonds,
Ohio
all
Request
on
Laird, Bissell & Meeds
York
New
Members
information)
other
practically
taking
BANK OF
With
there is little, if any, reason why
on
high-grade
a
market
the
considerable
Available
a
Advisory
Municipal
data and
ratios.
Insurance
municipals
eventually adopt such
commendable practice.
institutions have their full share
of
reason
Ohio
the
the
lem of replacement, since these
Australia and New Zealand
in
very
bond buyers with no easy prob¬
Glyn Mills & Co.
there is
dealers
that
analysis with
consolidated
Travellers
Conse¬
to hope
lapping debt information.
coupon
disappearance
the
issue
of
portion
carrying
Recognized
Associated Banks:
Williams
last
debt
higher than 4
^ ' ' .."C-
£98,263,226
Comparative
has been
ment bankers generally
quently,
Insurance Stocks
National Ins.
Council providing this datum (and
the
of
road's
TOTAL ASSETS
Northwestern
(Continued from page 1958)
This action marks the elimina¬
64 New Bond Street, W. /
Municipal
1969
.
.
Security Insurance Company of
capital stock of
Indemnity Co., and
East and West Insurance Co. :v# 4
New Haven: owns
Connecticut
Marine In¬
capital
stock of Michigan Fire and Marine
Insurance Co., New England Cas¬
ualty Co., Sentinel Fire Insurance
Co., and approximately 89% of
New England Fire Insurance Co.
Springfield Fire
&
Company:
surance
owns
It will be noted that many sub¬
are ; owned
outright,
other instances either a
sidiaries
while in
majority of the stock is held or
else a substantial minority.
In
ownership
outright
where
cases
indicated, this is exclusive of
directors' qualifying shares.
In
is
the
ship,
below
tabulations
two
shown
liquidating
1942
on
are
effects of this owner¬
the
values
and earnings.
for
values
Liquidating
the
12
stocks under review average 8.9%
higher
than
on
on
the consolidated basis
Net in¬
income averages 16.0%
the parent basis.
vestment
and total net
profits 31.1% higher.
higher
The
stock
whose
operating
consolidated
liquidating value shows the great¬
est gain over the parent company
value
is
Great
American with
of Bal¬
28.4%, while Providence Wash¬
Co., Richard Cone of timore
American Insurance Co.,
Scherck,
ington shows the lowest of 2.5%.
Findley & Co., Walter J. Carey of
48% of Georgia Home Insurance Aetna shows the
Landreth Mohawk Rubber Attractive
greatest gain in
Robbins, Gunn, Everett King, of
Co., 50% of Gibraltar Fire and net investment income of 45.5%,
Building, St. Louis, Mo. Copies of
Common stock of the Mohawk Maynard H. Murch & Co., and Roy,
Marine
Insurance
Co., 76%
of while Home shows a gain of less
this circular, discussing the situa¬
Rubber Company offers interest¬
Bock, of Dodge Securities Corp.
Home
Indemnity
Co.,
19%
of than 1.0%. Consolidated net un¬
tion in some detail may be had
ing possibilities according to a
Homestead# Fire
Insurance
Co.,
from Scherck, Richter Company
derwriting results are very er¬
memorandum
issued by Cayne,
and, 48.5%
of National Liberty
upon request.
ratic.
Agricultural and Fire As¬
Ralston & Co., Union Commerce
Gurnett With J. S. Bache
cular
R i
c
just
h t
e r
issued
James G. Scarff,
owns
approximately 39%
by
Col.
Vice-President
Ripley
Director of Harriman
Building, Cleveland, Ohio, mem¬
bers of the Cleveland Stock Ex¬
change. Copies of this memoran¬
dum discussing the current situa¬
tion
and
including
comparative
Incorporated, has been
figures for the past five years as
commissioned a Lieut.-Colonel in
well as a balance sheet may be
the Army of the United States and
from Cayne, Ralston & Co.
las left for active duty in the Air ,had
Sc
&
Company,
Scarff Serving As Lt.
md
Schultz
Co.,
-orps.
upon
request.
(Special
The
to
BOSTON,
Gurnett is
Financial
MASS.—Edward
now
Gurnett
Weston
was
an
&
Co.
Worcester.
Federal Street.
Insurance
America:
Alliance
sociation
Company
owns
capital
Insurance
Co.
of
North
stock
on
a
greater
parent company
of basis, but all the others show im¬
provement.
In this connection it
of Phila¬
delphia, Central Insurance Co.
indicate
both
losses than
of
must be recollected that
1942
un-
distorted
Baltimore,
Indemnity Insurance by heavy marine losses in the
and prior thereto
early part of the year.
As reof Reed & Co. of Co. of North America, National
continued on page 1970)
Security Insurance Co., and Phil¬
was
officer
F.
associated with J.
S. Bache & Co., 30
Mr.
Insurance Co.
Chronicle;
formerly
with
derwritings were badly
1970
THE COMMERCIAL & FINANCIAL
VIRGINIA
Municipal News & Notes
The North Carolina Local Gov¬
Commission
ernment
of
act
the
ercise
1931
of
by
ex¬
complex,
control
the
units
local
units to create
over
governmental
debt, and au¬
thorized two years later to super¬
vise the refinancing of outstand¬
ing indebtedness, has succeeded
in reducing to only six the num¬
ber of, subdivisions still in
de¬
fault.
new
The extent of the commis¬
sion's
accomplishments is graph¬
ically illustrated in the fact that
in
1933
less
no
152 cities
and
than
62
counties,
and
towns
approx¬
imately 200 other local units
in
default
have
were
their
obligations.
time, refinancing plans
on
Since that
been
devised
and
com¬
pleted under the commission's
from
the
complete
habilitation of the
debt
structure,
also
in
succeeded
substantial
State's
the
re¬
local
commission
lopping off
of
part
a
total
the
debt originally outstanding. This
is
shown
against
in
grand
a
$362,400,000
the
1942,
that
as
aggregate
June
on
comparable
30,
fact
the
30,
total
of
1932,
June
on
$289,000,000, de¬
spite the issuance of $39,400,000
in
was
bonds during the period
new
finance
to
ities
essential
such
and
water
as
sewerage
The net result of these develop¬
best
has
it
been
the
in
history of the State.
In view of
this position the general assem¬
bly of 1943 authorized counties
and
municipalities
to
establish
capital
funds
reserve
with
any
part or all of the cash surplus
ac¬
cumulated at the close of the fis;cal
year.
"The
.
purpose of a capital re¬
fund is to permit a local
serve
unit to withhold and earmark this
for
money
needed
debt
post-war im¬
necessary
provements
retirement.
further
for
or
Properties
debt
rapid¬
are
Wire Bids
some
extension
-
refinance
to
with
of
had
of
their
7|:%.
entire
and
reduction
of
F. W.
CRAIGIE&CO.
to
conditions
current
gations,
for
except
towns.
few
a
small
Philadelphia's Cash
With
receipts from
fund
revenue
four
months
in
a
the
the
cording to the Bureau, with prac¬
tically all bills paid, no temporary
emergency
loans outstanding
and with the second and third
or
sinking
paid
installments
fund
advance.
ceipts,
months'
four
first
The
re¬
$46,083,449.88,
totaling
to
56.33% of the bud¬
of
$81,816,388.96
1943, the Bureau reported.
estimate
get
for
Current
economic
of
estate
real
equipment for needed repairs and
replacements. The commission ad¬
vocates
of this authority given
use
tax
The
amounts yielded
the
of
war.
"Practically
improvements
this
time
bonds
for
no
new
are
and
being issued at
the
for
naturally
prevail.
A span of years during
which no improvements can be
made and the simple fact that ex¬
tensive improvements cannot al¬
ways otherwise be financed, un¬
some
less
riod,
700,000
form of renewals,
of
from
bond issues.
new
capital
reserve
reduce
to
necessity
on
major
funds
issuance
minimum,
a
the
comes
Although
are
of
intended
bonds
new
when
this
commission's
time
control
will extend to
limiting these new
issues to intelligent financing and
tq proper maturity arrangements
so
to prevent peak loads which
as
have caused trouble in the
past.'
;
Still
another
member
of
the
all
mu¬
rev¬
re¬
New
bur¬
to a
The survey, prepared by Her¬
industrial
Swan,
con¬
states that despite
sultant,
the
of real estate val¬
maintenance
present
city's
unre¬
served margin of free borrowing
power
is
In
no
than approx¬
more
outlining
reasons
the
situation,
city's present
financial
the
consultant
industrial
stressed
major municipally owned and op¬
erated
revenue-producing
util¬
brought
with
him
on
contact
investors
performs
the
is
a
vital
of
the
local
bodies
stern disciplinarian in
all
matters involving fiscal
erations and procedure.
;The
in
involving the placement of
refunding and new issues
behalf
and
and
close
has
Carolina municipals. Mr.
Easterling
both
in
dealers
North
task
Secretary
as
Local
Government
op¬
Com¬
mission's problem, it is
said, was
arm
board of five citizens.
a
ations
are
owned
enterprise
at
cost.
of
those
when
capital are in¬
expense of opera¬
on
the
Not
city
Share
county
ferries,
markets and transit,, like water,
were
placed
ing basis,
real
by
the
that'in
as
upon
a
com¬
compared with
suburban
communities,
Mr. Swan said.
The
Jan.-
millions
of
quired
approximately
tax
the
from
board
paid
money
basis
for
the
with
stantial
by
South
39
is
penses
on
for
the
income
since
its
begin¬
These and other expenses
the
shown in these percentages
board's
income
of
rapid transist system—with
a gross funded debt of
$1,149,880,000,"or $25,860,000 more than the
city's total funded debt on Jan. 1,
1915—is listed as representing the
required
for
of
Operation
42%
power
—
7%
replacement
Bond
interest
Retirement
of
———-
_________
7%
7%
8%
bonds
Surplus
to
system
^___—-
7%
3%
•
<
,.
Aetna
7
■
>
.
before
comes
war-time
earnings:
favor discount bonds.;
added
factor
of
improving
issues attractive—
the opportunity in this
least while the supply
many
lasts."
;
&
The
>«
-
v;
'
,
ufacturing
Home
'
7 4.09
American
of
Ni
«.'••••
Fire
^
~
__w
Springfield
1.71
1.81
—0.48
'
Continental
2.34
Great
39.83
V
el- —0.65
1.07
41.53
^-v
-
74.89
%
22.80
0.85
-■0.34 *
24.71
3.66
-
0.03
73.71
"2.88
-
—0.62
1.09
—0.01
3.57
8.38
44.65
,Ti'
128.41
BASIS
2.78
0.34
—2.69
J. 82
2.19
0.73
2.92
42.33
2.57
____
0.4?
3.04
'44.86
,79.43
,
3.12
,62.01
86.33
Association
__________
4.46
—2;26
2.20
American
___________
1.58
0.40
1.98
1.51
—0.57
0.94
25.81
4.07
1.73
5.80
79,60
3.32
0.34
3.66
,
Insurance
Co.
National
of
N.
A.
Fire
Providence-Washington
Springfield
___
.
29.27
80.50
'
_____
1.84
—0.56
1.28
37.15
2.36
'
r
36.23
...
1.80
•
" '
76.53
-
4.51
Fidelity-Phenix
Fire
81.23
2.49,;
—1.75
,
53.31
3.01
.
2.47
CONSOLIDATED
,—^-.—,7.
!
12/31/42
/Liq. Value
i$Per Share)"
"
1.43-7"
—1.24
4.81
Aetna
Total Net.-:-.
Oper Profits
<$ Per Share)
'
'2.54
;
—0.11
3.63
A.:
annum.
($ Per Share)
0.03
1.50
Co.
Current dividend'
per
BASIS
Net
0.40
>1.18
____
National
- -
..
2,44
Association
Great
r
.
2.09
__
area.
21/2%
Und. Profits
„
7
4.25;
-
of
rate
COMPANY
<$ Per Share)
___
Fidelity-Phenix
of
^
Net Inv. Inc.
___
______
Federal
Association
advantages of insured Federalj
Savings & Loan investments, particularly of the Great Lakes man-1
1,91
Agricultural
Fire
t
First
Savings and
Toledo, 335
Street, Toledo, Ohio, have
prepared
an
interesting
de¬
scriptive circular discussing the;
Loan
Erie
___
Security
7o
their
:/\
Street.
PARENT
,
Home
Additions
Moran
i
Agricultural
Tax
of
as*nirance
Insured Investment
19%
expenses
Depreciation
away,c
bond isi
interest
field—at
39.5%
lower
and
National
Fire's nearest average with 27.1%
___
Purchase
whittled
high
broadens
al's
Providence-Washington
Security
its various expenses:
greater
make
7
of
is
protection through debt re-'
tirement—which of itself would
Salle
generating
purchase
is
«*<sset
basis, Aetna's
higher, Agricultur-
118.2%
Continental
ning.
La
debt
naturally
the consolidated
were
of
ex¬
issue
Long-term improvement in;
quality makes future inter-;
taxes,
Teletype
higher.
no
As
"Since
-
Stocks
sum.
As the board has
the
est payments less of a burden and
(Contihued from page 1969)
gards total net operating profits
the
plant, the largest item of its
-
of
size
continuance."
Francoeur,
of
sub¬
a
the
With Liberal Return
re¬
purchase
have amounted to
power
As
"3.
Bank & Insurance
owned
in
face
sizable dis¬
policies have three di¬
advantages to the holders of.
basic
refundings, due 1983.
Co.,
replacements made by
TVA
dollars
at
basic quality of the
improved, attracting new buyers.
Teletype No. CG 993.
7%
of
bonds
the
County, Pa.
21
policy
payments
a
,
formerly
privately
These
contribution
toward placing
estate
petitive basis
self-support¬
a
great
be made
would
local
a
docks,
on
due
8
to the
a
in
at
reduced, the floating supply dwin-dies and appreciation possibilities
increase.
governments
taxes
the
company.
are
airports,
retired
CHICAGO, ILL.—Due to prior¬
ity restrictions, Leason & Co., Inc.,
39 S. La Salle Street, have made
teletype arrangements on a joint
business
of replacing
up
annually
paid
purchased,
was
and
'dollars
large railroad has
amount
The
,
set
was
buy
One
more
advantage
discounts
received tenders of bonds at prices
as low
as
38.
Many others have
"1.
refundings,
exceeding 3^%
Insurance
If
discount.'
and
taking
are
substantial
prices to
gives
At the time the private power
system
the
bond
28
June
publicly
doing
board's
charges
2%
Its oper¬
a
power—this requiring 42% of the
deficit
current
in
companies
of
our war econ¬
continues—more
omy
"These
$13,815,000 Imperial Irrigation
District, Calif.
of
ities, with the exception of water,
tion.
position
Board
shows
fixed
earnings caused by
Not
is an
independent
of the city, administered by
for
the fact that every one of the six
a
lrom
Chattanooga
imately $153,000,000.
importantly to the
efforts is W. E. Easterling, whose
Power
incredible piece of
an
"Many corporations are able to
buy bonds at substantial discounts
under¬
exceeding: 3% improvement, due 1950-1973
Successful bidder at previous sale was
account
headed by Halsey, Stuart & Co;. Inc.:
second
high bid named by Chase National Bank of
New York and Associates.
...
ception, and, in addition, other
commission who has contributed
of its
exceeding
the board's income since its in¬
the
the
rect
June
payable
and
els far in excess of market val¬
ues,
of
$1,500,000 Allegheny
January
uations for tax purposes at lev¬
cluded
success
Electric
seventy-five cents*
or
Strangely enough,
thing is, in effect, possible.
a
"2.
The outstanding
The
just released by the Insti¬
S.
Not
replacements
in
possible to buy dol¬
were
fifty
July, 1944-1953.
July.
tute of Public Administration.
bert
such
Finance Corp.
been!
2.70%,
draw
semi-annually
Utility
six
has
did.
we
discount bonds:
Mr.
bonds
revenues
the
pe¬
and additions.
Necessity of meeting operating
tax
income
latest-
fortune.
good
$4,178,000 Alabama Bridge
Approximately $1,-
from
1
counts.
May
of these
year,
•)
You may
convincing as
it would be
Scheduled
$1,000,000
present
Corp.'s
Keystone
as
lars for
Major Sales
of
put back into the system in the
City High Tax
survey
members
regular
a
30-year
a
approximately
Finley said.
Amusement tax—$461,404.40.
from
over
July 1 of the
payments—$1,-
To
With
of retirement
of
"If it
1970; the
priced
are
May 26.
the
issue
an
,
a
We quote:
to
income of the electric system by
464,312.46.
Due
by
building
is
long-term sales policy.
find it
from
system
power
<
par value. Thus, by an ex¬
writing group include: if Smith,
penditure of fifty or sevent-five
Barney & Co., Harriman Ripley &
cents, they are able to cancel a
Co., Inc., Blyth & Co., Inc., and dollar's
worth of debt. This pol¬
Lazard Freres & Co.
Preliminary icy is being followed actively and
inquiry for the bonds indicated
aggressively by many companies.
strong investment demand in the
"As the present high rate of
will have been retired from the
estate—$28,781,603.94.
Income Tax—$8,116,988.80.
State liquor tax—$1,645,300.
Transit company
of
purchase
owned
obligations
Real
will
by excessive tax levy, will
rise to the need of funds
give
to
issues
new
private home.
bonds.
revenue
reported
nicipally owned and operated
enue-producing
utilities
is
sponsible for the inability of
York City to reduce the tax
den on real estate, according
close
or a
financed
was
by the Bureau are:
but
the
whether
for $10,850,000 on Aug. 15, 1939,
Among the city's income sources
practical because it will avoid the
necessity
of
issuing
any
new
bonds for improvements needed
after
city,
city's
schedule
one
yield
Proceeds of the financ¬
Other
occupied
the
in
97.50.
field
It is on
investment
for discount bonds.
case
remaining
for maturities
the
that
"Dollars At A Discount" is the •<
title
of
Chattanooga users of TVA elec¬ offering,
tricity through the city's Electric
Power Board have saved $9,000,- Halsey Stuart & Co.
000 in the three years and nine Buys Arkansas Bonds
months that TVA power has been
Halsey, Stuart & Co., Inc., New
furnished, it was stated recently York, has
purchased from the Re¬
by S. R. Finley, General Superin¬ construction Finance
Corporation
tendent of the power board. These
$9,768,000 State of Arkansas high¬
savings are based on the average way
refunding bonds at a price
Cost of electricity in 1938.
of
104, it was
announced
on
collec¬
by the general assembly wherever
"*
levy
a
every
upon
Chattanooga, Tenn., Utility
Cites Large Savings
sources.
deficits
2.35%
.
4s held
operated
equal to
are
apartment
these
Y.
are
to
basis
the
sis
ing will be used by the River
Authority to redeem an issue of
by the Reconstruction Fi¬
nance
Corporation.
un¬
Head
Operating Deficits
and
$20.56
privately
and the
The
priced to
on
sales expediency.
company
;
<
judgment rather
basis
sound
in
se-
The
that
these
part
20.
made
was
of
investment
per¬
popular
than
been
and
including May 1,
$4,615,000 2V2S of 1975
that
five
to
year
municipally
dwelling
tax
amusement
Burden
materials
emphasized
this
enterprises
receipts
and transit company payments,
the Bureau stated, all are in ex¬
cess of last year's income from
tions,
1953,
constitute
least
,
offering 1
market
by
list
entire
lection
:
lack
available
Swan
Mr.
an
ly depreciating due to the present
of
bonds
2.30%
the
beginning of May the
treasury reported a general fund
cash balance of $33,993,199.77, ac¬
N.
ac¬
involve
account of interest.
on
subsidies
running
search recently.
in
on
transit
general
the city was reported to be
"splendid cash position" by
Bureau
of
Municipal
Re¬
At
to
not
offering.
at
for the first
year
do
judged
of the 3s, due
and
above the same period last
1.34%
year,
sources
of
the
200,000
all
1944
bonds
$56,200,000, $16,000,000 for amor¬
tization and redemption and $40,-
Position Extolled
have
particular
is
of
}
sponsor
company
its
from
here
its major sales effort
formance,
s
arrangements
charges
year debt
of
rapid
count
Nov.' 1
wish to em- ;
is an in- ^
we
the
which,
of
from
principal single drain on munic¬
ipal finances. During the current
fiscal
toward
to
2%
made for the sale
and
<
and
i
v
■
is that
vestment
3s, due semi-annu¬
May 1
on
that
3-9137
re¬
meeting their maturing obli¬
of
point
directing
$4,615,000 2V2S due on
May 1, 1975; The syndicate states
RH 83 & 84
System Teletype:
Telephone
series
block
RICHMOND, VIRG IN IA
Bell
The
phasize
and
1960, inclusive; a series
maturing semi-annually
from 1961 to 1970, inclusive, and a
of
this
towns and districts have been
a
1944
that
burdensome
principal was
solution.
With
the
refinancing
accomp¬
lished to date, all counties, cities,
stored
of
ally
the only alternative as a
are
l/'
CAROLINA
■
(Continued from page 1959)
-
the First
Stranahan,
Harris & Co., Inc., is advertising
today
an
issue
of
$21,635,000
Lower Colorado River Authority,
Texas, revenue bonds, consisting
Corp.
y
Investment Trusts
/'?•■■
•
:
A syndicate headed by
Boston
MUNICIPAL BONDS
rate; others
accumulated principal so
an
'//;
on
interest
excessive
Authority
by
Group
First Boston
NORTH and SOUTH
compromise and
some
reduction
amounts
ments, Mr. Johnson noted, is that
"generally, the financial position
of our local governmental units is
the
an
Texas River
VIRGINIA—WEST VIRGINIA
time for the payment of defaulted
and early maturing bonds; some
facil¬
projects.
now
needed
one:
su¬
pervision, involving nearly $120,000,000 of bonds. Nor does this fact
alone tell the complete story, as
was recently noted in a summary
of the commission's operations by
its Chairman, Charles M. John¬
son, who is also State Treasurer.
Aside
anywhere in
The problem was a
three-fold
Thursday, May 27, 1943
Bonds Offered
precedent
this country.
legislature to
general
power
created
without
CHRONICLE
0.37
2.73
48.58
5.12
4.12
9.24
136.53
.
.
':/*
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4180
157
moment's
Employees Pity The Poor Draft
Form 25-Year Chb
Board-They Got This
!
At
dinner party on
a
27 employees
the
New
May 23rd,
and five partners of
Stock
York
Exchange
firm of J. S. Bache & Co., 36
Wall
Street, New York City, met to
form
a
Quarter Century Club.
The (Bache
firm, which holds
memberships in the New York
Stock
Exchange and other lead¬
ing
Exchanges,
celebrated
its
50th anniversary last year. Among
the
charter members
of
the club
present were Miss Martha Eisner,
Miss
Gertrude
Schoendorf
and
Christian
who
Schaefer
joined
the organization in 1892, the year
the firm was founded. Edward P.
Goetzy
.
with
v- who (r
the
became
firm
in
Groom
William
job
but
you
J. S. Bache
me
told
ly
of the
be
and
ears;
after
they
lice
naire
time.
back
after
left
I
middle
of
such
San
Pedro
me
Station
fill
there
it
was
(A
the
night
in
and
there
I
not
that
me
that
but I
many
I
a
I
to
came
few
never
we
went
know where
ing
or
when,
bet
that
saloons and
guess
is
to
me
to
wait
you
want
first, I
a
I work out
I
see
so
don't like
to
Wives,
heat,
Partners
firm
the
of
of
members
Century Club
who
the
are
This
I
are.
we
only quit my
police
dept.,
raiders,
I guess
so
are
go¬
rum
best
my
heaven
peso
and
too,
me
without
of
my
best
address
present is—
the
to
adhere
the
Association
Brokers
Lower Colorado River
closely
its
of
code
Dated
Due
as
shown below
TS, INTEREST RATES, MATURITIES AND YIELDS (OR PRICES)
rightly
so,"
he
Street
has
%
undesirable
declared,
purged
of
prac¬
there has been
education and slow
attrition in the securities
knowledge,
consciousness of
their responsibilities.
We do not
wish to see these hard-won gains
experience
and
N. Y, Title and
Series C-2 Interesting
Seligmam Lubotkin; & Co.; Inc.,
•
Street, New York City,
Broad
have prepared an
C-2 ..first
anlysis of series
certificates
mortgage
guaranteed
originally issued and
request.
Now Barnes &
CHICAGO,
ILL.
Turley
—
Barnes
*
*
A v;''
u
2.65
2.65
2.70
*
May 1
2 H%
Nov. 1
244%
24<%
1963
May 1
Nov. 1
2.70
2 H%
1964
May 1
2.75
1965
May
1
2.75
Nov
1
2.75
May
1
2.80
Nov. 1
2.80
2 H%
2 %%
400,000
400,000
415,000
*
♦
2 H%
426,000
435,000
435,000
445,000
449,OCX)
4,615,000
VA%<
2.30%
Nov. 1
2.35
May 1
2.40
Nov. 1
2.45
1956 May 1
2.50
Nov. 1
2.60
Nov. 1
2.75
?*
May 1
2.80
2.80
1
2.85
Nov. 1
2.85
May 1
2.85
1968 Mav
1969
4'
2.55
May 1
2.70
Nov. 1
1967
2H%
2H%
2H%
2H%
2 H%
m%
2 u%
420,000
May 1
1966
2K%
2.70
.
Nov. 1
.
2 K%
417,000
*
Nov. I
1954
2.75
May 1
1962 Mav 1
391,000
*
May 1
May 1
2.75
2 H%
373,000
380,000
385,000
*
Nov. I
1953
2y.%
2.70
May 1
Nov. 1
1961
2.70
Nov. I
1960
May 1
Nov. 1
362,000
365,000
I
'■
Nov. 1
1952
! 2.65
369,000
AAA
Nov. I
1951
Nov. 1
2.60
1955
1957
Nov. 1
1970
2.85
May 1
2.85
1975 May 1
91} 2
of this offering.
I
For
&
ence
any
and
in
Blanche
and
George R. Turley, all of whom
were with the predecessor, firm.
organization
May 1
2.65%
May 1
1959
2 H%
362,000
Nov. 1
Bonds refer¬
information relating to the Lower Colorado River Authority Revenue
is made to the
offering Prospectus which should be read prior to the purchase of
of these securities/This announcement does not constitute an offer to sell these securities
ahy State to
brokerage business of the Peoples
Investment Company. Partners of
new
*
.
Arrangements for the sale of these bonds have been made and they do not constitute a part
Turley, 120 South La Salle Street;
has been formed to succeed the
over-the-counter-r d e a 1 e r
))'■'
•
1958
3%
3%
3%
3% '■
3%
3%
(Plus accrued interest)
v
•
May 1
1950
3%
3%
3%
3%,
3%
•3%
3%
3%
*
Co. upon
May 1
1949
0/0
335,000
Copies of this analysis may be
had from Seligman, Lubetkin &
y'VjMi-
■'*
Nov. 1
10/
329,000
May 1
1948
10/ \
325,000
York Title & Mortgage
by New
Company.
357,000
357,000
358,000
360,000
May 1
;■
:
349,000
*
Nov. 1
0/0
320,000
May 1
1947
3%
3%
3%
3%
3%
3%
•3%
3%
3%
288,000
293,000
298,000
300,000
305,000
311,000'
315,000
Mtge. Ctfs,
*
Nov. 1
T'3%L
*J3%
272,000
274,000
280,000
283,000
dissipated."
1946
3% 1
3%
255,(MX)
260,(KM)
265,000
265,(XX)
have acquired greater
V;
338,000
345,000
*
Nov. 1
/o
10/
251,000
age business. Those firms and in¬
dividuals
who
have
survived
1945
10/
o
0/0
250,000
broker¬
>
$
maturity
(or price)
Due /
Rate
Amount
*
Yield to
Interest
Principal
to
maturity
May (l
Nov. 1
3%
3%
:
.
1944
'
;:,3%
240,000
245,000
tices. For ten years
regulation,
210,000
110,000
111,000
165,000
172,000
"that
and
elements
Due
Rate
a
Fontaine.
been
Yield
Interest
Principal
"Today the public believes, and
the
.
May 1, 1943
Amount
printed by the Association with
41
''
•
.
Revenue Bonds
of
urged
were
to
(TEXAS)
Authority
despite
foreword by Mr.
Wall
May 27, 1943
$21,635,000
the pressure of
more
active markets, by Armand
E. Fontaine, President of the As¬
sociation. The code has been re¬
ethics,
registered dealers in such State.
as are
,
Head Urges Adherence
To Code Of Ethics
of
solicitation of an offer to buy any of such
or as a
State in which this announcement is circulated from
'
:
■■*
Customers-Brokers
Members
any
the
firm
new club at
marnmttttg/HDBK**'**
Customers'
offer of these securities for sale
as an
be obtained in
may
NEW ISSUE
its first dinner party.
■
Prospectus
any person to
whom it is unlawful to make such offer in such State.
are
C. Barnes! Charles E. Barnes,
V-v;
j
TV'"«The First Boston
1
:
Stranahan, Harris & Company
Corporation
Incorporated
R. Hoe Co. Attractive
/
>
Common stock of R. Hoe & Co.,
Inc., offers attractive possibilities,
according to a circular being dis¬
tributed by Aigeltinger & Co.,
76
William Street, New York, N. Y.
Copies of this interesting circular
may be had from Aigeltinger &
Co. upon request.
P ;: V ! V
Smith, Barney & Go.
.
:A: -vr-
i'
An
interesting comparative anal¬
ysis of insurance stocks with con¬
solidated data and ratios has been
prepared
by
Laird,
Bissell
&
Meeds, 120 Broadway, New York
City, members of the New York
Stock Exchange.
Copies of this
analysis
Bissell
may be
& Meeds
had from Laird,
upon
request.
.
'
;
4'
.
Harriman Ripley & Co.
^incorporated
/-.!•
■
.t
'
A
Harris, Hall 8c Company
A. C.
i-'•
(incorporated)
.
Allyn and Co.
'
•&.
■
•
-/A..
Blyth8cCo., Inc.
L
• .*>•!
-v (jy.: 'f. F ■!
,
^
...
B. J. Van Ingen 8c Co. Inc.
Incorporated
R.A.Underwood 8c Co.,Inc.
Blair & Co., Inc.
*
v
«
\
>!
■
Union Securities Corporation
R. W. Pressprich & Co.
•..
\
.V-..;V .*!' •'
John Nuveen 8c Go.
Stifel, Nicolaus & Co., Inc.
Lizard Freres & Co.
;v /:■'■■■:.A'/
Ins. Stocks Of Interest
a::'' •!
V..
v.j:
,
■...
,
>
<
-
7
A/
Equitable Securities Corporation
••••;■•
Smallvvood and Company
a
to my name.
Anyway
if you want me
The Los Angeles
me.
draft boards, all this and
cokes,
always know where
guess
get
you can
we
German
F.B.I.,
of
partners
guests
circumstances to be construed
no
only such of the undersigned
founder of the firm, Harold L.
Bache, Morton F. Stern, Hugo J.
were
is under
securities. The
Lion and Walter F. Schultze.
Other
announcement
Jules S. Bache,
are
ali¬
monkeys,
? MK fliwjiimrggjaiju
Quarter
ali¬
pay
present.
charter
while
beer,
also
was
they
you'll have
or
pipelines,
jungles,
How¬
and
year's back alimony,
tropical
mony,
that.
me
guess
year
a
either.
mony
do
even
you
get
give you a New York
address. They
days later when I
had not
can't
if
ever,
—.
nearly enough Notary Publics,
because
a
know
one
too
were
.- associated
,
1897,
cor¬
I always
there helped
told
not have
crying dime. I not only couldn't
mail a change of address but also
I couldn't, even buy a short beer
which I needed very
badly.
I
don't like to be broke so I grabbed
myself another job, I am now on
the S.S.
This ship
is under the Panamanian flag so
a
Notary Public there
no
elsewhere.
the
on
and
police
to realize that I also did
place
someone
out
with
out
found
and that I would have to find one
long
a
I
quit
signature. About that time I come
day I got the
was
lit to the
I guess I filled it out
avoid) and
question¬
my
also
who
guy
that I had mailed the
the
The
was.
looking for
got
you
because
the
me
questionnaire without the N. P.'s
apparent¬
rectly because I went to the Po¬
Dear Local Board:
guess
You
out
questionnaire
sending
notices
everywhere, the Board
finally got the F.B.I, to help out.
A little later they received the
following masterpiece from the
missing registrant:
I
it.
that
did,
where I
registrants could not
located
found
F.B.I,
Leftwich & Ross, Memphis, Tenn.,
serves
on
his local Draft Board.
One
remember
not
of
Leftwich
notice, so if I mailed
Change of Address, I do
a
1971
W.A.Jackson
at
SHE COMMERCIAL & FINANCIAL CHRONICLE
1972
lieves any
The War And American Foreign Investments
dence
Loan
of-settling all outstanding
securities issued in 1916 which
tions
of
that
indebtedness
permits
ques¬
claims
and
hope
to
for a
speedy and satisfactory solution of
these
us
questions
Governments
which
desire
both
of the way as soon as
"Mr.
Litvinov
our
have
out
to
possible.
will
in
remain
and the $75,000,000
(1917);
Russian
listed
51/2%
the
on
6V2%
and
New
Dollar
Curb
York
Exchange.
'
:
are
*
,
substantial
control
of
amounts
Washington for several days for
Russian
further discussions."
been accumulated in the
This apparently is the first indication that Russian debts repu-
diated in
1918
again being
And, I might add, the
considered.
of
source
were
the
information
questionable.
To
give
is
'
this
1
un¬
',*
•
continuity,
story
I'll state
briefly that Litvinov re¬
turned to Moscow before arrange¬
prices.
I
wish it understood that my views
on
this subject at this time are
than
present
not intended
for the
of
as
these
in order that
negotiations,' the
made
United
was
general misunder¬
regarding the original
standing
agreement
a
In
arose.
Roosevelt
Davies
States
offer in 1935 which
an
rejected and
dent
numerous
1936
Presi¬
appointed
Ambassador
our
U. S. S. R. in
Mr.
the
to
endeavor to solve
an
the debt and other economic
prob¬
in
the
peruse
well
as
retention
I
have
no
Russians
references
other
as
carefully
mentioned
sources
they
available
decide for
may
themselves the status of the bonds.
My primary
purpose
in replying
to Dr. Winkler is to show that
an
that
the
and
to
our
as
a
State
record
sonal
book
contains
confidential
Department
as
well
diary and
of his
per¬
correspondence.
353 and 563
we
of¬
dispatches
On
pages
find that Premier
Molotov delivered to Ambassador
Davies
a
written proposal for the
sial
matters in
they
Winkler,
the
in
order
same
mentioned by Dr.
are
we come
continue
to
our
Ambassador
State
our
Depart¬
zens, Mr. Davies tells us
his opinion it would be
that
in
impossible
for the Soviet Government to
con¬
sider this part of the Russian debt
without being obliged to give sim¬
ilar favorable treatment to twen¬
ty-seven
under
other
the
U.
different
S.
S.
nations
R.'s
general
treaty and contractual obligations.
He states that as a practical mat¬
ter
this
was
financially impos¬
sible (page 568).
So far, we have an agreement—
a
misunderstanding of the agree¬
ment—an
The
offer
Russian
to
settle
Dollar
in
part.
Bonds
have
not been mentioned
by name and
proposal for
the settlement of the intergovern¬
mental debts in 1938, but there is
were
omitted
in the
little doubt that these bonds
included
in
the
1933
understand¬
ing and that they remain
for
consideration
time.
So
at
were
a
matter
some
future
/■,//;',
find
we
modified
that
her
Moscow
attitude
has
since
the
original decree of invalidation and
that
there is
whether
some
these
question
securities
as
to
remain
absolutely repudiated at present.
Q. E. D.
.
pay
their
"blocked"
the
funds
and
the
to
fact
that large amounts of these secur¬
ities held in Continental Europe
be sold in
now
market.
our
could these
use
coun¬
tries find for such funds under
ex¬
isting circumstances?
an
were
But
after
the
war—what?
Isn't it possible that the balances
held here may be withdrawn for
reconstruction
purposes?
this
is
a
rehabilitation
not
predict that
happen, but I do say it
possibility. Present quotations
could
the
not
go
we
some
much higher under
of
best
when
be
and
I do
will
circumstances,
conclusion
As
to
and
consider that there may
future risk involved the
seems
obvious.
consider
ment
some
as
not being able to
question of settle¬
private claims will to
the
of
extent be eliminated by
the
War.»The increasingly friendly re¬
lations and lend-lease advances to
the U. S. S.
intentions
R., and the expressed
of
the
United
Nations
•for closer post-war economic and
political
cooperation, may also
be considered as favorable
factors.
The Russian debt to the United
States is not
one
would
the
best
as
great
imagine.
a
burden
as
According to
statistics, the
available
total pre-Soviet
obligation is less
than $300,000,000
principal amount.
It is composed of the
Kerensky
Loan of 1917
something,
when
must
Dr.
to
even
sell
can
in
an
mean
-
Winkler,
these "repudiated"
bonds
Russian
open,
com¬
petitive market around 9.
This
price was a "breakthrough" of a
resistance point of about 8 which
has prevailed since 1929.
In all
honesty, "there must be a reason."
What it is time only can tell. The
writer feels there is much factual
and
securities, Gen¬
eral Enrique Penaranda, President
of the Republic of Bolivia, stated
at a press conference held on May
13, 1943, that a Commission had
been appointed by his Govern¬
ment to
study the foreign debt
problem and that it was hoped
a report would
be given to the
Bolivian Congress in August. He
indicated that negotiations might
then be expected to proceed with
bondholders'
representatives
in
this
If
price for these
registers their present approxi¬
mate speculative worth.
But we
some
will
confine
only
to
further
our
Winkler's
Dr.
remarks
one
con¬
crete
then
my
writing this note to
premise, to wit: that these
$75,000,000 par of Imperial Rus¬
you
according to which
'all
foreign loans, without excep¬
tion, are absolutely repudiated.'"
7 In a discussion of the specula¬
tive
possibilities
which
the
of
these
bonds,
published, not
January, 1933
writer
recently,
but in
(Russian recognition
New
ment
maintains
had
in
repudiated
many
all
Czarist
debts, and that these bonds, there¬
fore,
should
be
considered
as
worthless," and added: "However,
there is much
ground for believ¬
ing that these bonds have
definite
nuisance
appraisal
of this
is
value
ance
from
value
so-called
what
We
cited
the
these
attractive
on."
pointed
the
out
of these bonds to
ness
very
nuis¬
makes
speculatively
now
a
and
sensitive¬
rumors
and
N. Y. "Times" story in the
a
Summer of 1932 which caused
overnight
sian
advance
bonds
of
the
in
214
an
Rus¬
points—from
% to 3. The N. Y. "Times" account
had it that the Soviet Government
huge international
contemplated
a
10%
enable
loan
York
to
them
ing Czarist Russian
all
to
ar¬
the world.' And it is only
over
City
demerits
last
statement
1, 1930: 'We still
Dec.
on
As to
of
these
or
I
said
loan
a
lations,
and
normal
resume
re¬
enough. It is
easy
small
a
comparatively
matter
settled
is
matter.
bonds
to
9
not
The
yet
as
rise
indicates
that
Electronics
a
the
of
(Continued from page 1954)
sheets of metal, mark defective
some
speculators, foolishly perhaps,
figure that the chances are grad¬
ually improving that Russia
materials
will
things
have
carried
away
to
say
that
ern
rumor
will continue
to
gov¬
their future market behavior.
But
usually, or often, pre¬
sages fact.
In the discussion re¬
ferred to, for example, we said in
January, 1933, that "it is reported
frequently that recognition of the
rumor
Soviet Government by the United
may
become fait accompli
"The
Soviet
nulled
the
Government
an¬
foreign obligations of
on Jan. 21, 1918.
obligations.
very
the
Versailles
these "repudiated" Russian bonds
dated
unteered
value
which
*
the
speculative
market
is
en¬
offered
occasions
cial
"
to
In
Peace
pay
a
those
letter
to
Conference
Feb.
4, 1919, Moscow vol¬
'recognize its finan¬
obligations to its creditors in
to
deavoring to appraise. .Perhaps, Entente countries' and to guar¬
the moment, a price of 9 is antee interest
payments on them.
too high, maybe much too high, Lenin
gave Ambassador/Bullitt a
just as a price of 1 and less in the written proposal for transmission
last couple of years was much too to President Wilson 'to
recognize
at
low.
Despite, the
learned
Doc¬
f
> "• i-;
r-
.
.0
»
ii-i.
the
the
Among
prophets. We feel this must
be done in justice to the
public
following
and
shares
aviation
a
of
one
industry who
the
see
has
ourselves.
There is not
immense
which lie ahead
airplanes
day when
fulfilling
their
a
more
have
cal
stated,
that,
conclusions,
we
carrying
their logi¬
to
"Selected"
(number
of
indicated):
General
"Selected"
will
ers
expect,
possibly ten years, to see
the airlines carrying 40% of all
car¬
This
ried/in
ser¬
tages provided by
vice; all first-class mail between
points
where
not
of
other
of
one
the
investment
great advan¬
well-diversi¬
a
company.—From
May Bulletin of Selected Invest¬
Company.
transportation; 33V2% of rail¬
coach and inter-city bus pas¬
possible
is
fied
overnight delivery
by surface means
is
the
On
"Selected" has many other attrac¬
tive investments to balance it off.
by rail; 80%
Pullman
shareholders
benefit.-
of all passenger business now
first-class
Elec¬
hand, if the industry should prove
more
magical
than
profitable,
may
within
express now carried
the
which
participate in this almost
"magical" industry. If the indus¬
try proves as profitable as some
anticipate, "Selected" sharehold¬
closely-knit, neigh¬
statisticians' trends
which
are
thus
borly/and better world.
I
in
investments
The
true constructive mission of mak¬
ing
companies
(7,000); Minneapolis-Honey¬
well (100); National Cash Regis¬
ter (1,500); Sperry (1,500); Westinghouse Electric (2,000).
fail to
can
re¬
pro¬
tric
the
possibilities
that
on
begin
in
us
stimulus
leaders in electronics
are
of the
to
huge
vided by the war,
seems
ments
way
10%
of
freight,
"less
rail
"less
and
5%
than
of
system
mean
at
carload"
motor
than truck load"
This would
port
House-Senate Group
travel; 80% of parcel post;
senger
truck
Agree
freight.
least
30
transport
/
windfall provision designed to re¬
cover
for the Treasury
part of
times
immediately
use
Pay-Go Plan
on
(Continued from page 1956)
:
air trans¬
an
extraordinary increases in in¬
any
this
come
year
last, compared
or
with normal years,
"The years 1938,
after
1939 and 1946
the end of the war, as contrasted
with the 350 airplanes owned by
were
the
come of any of those
years, the
taxpayer would be allowed to add
domestic
airlines
ginning of the
at
the
designated
normal
be¬
war.
base
as
To the
vears.
or
highest in¬
$20,000 (the Senate had proposed
We must recognize the / fact,
$10,000).
however, that the airplane of to? be
morrow
supplement rather
supplant
other
forms
of
than
transportation.
We
do
1942
the view that the airplane
going to be the "cure-all" for
tax rates would be
difference.
post-war transportation prob¬
our
partly abated year,
1943, whichever was the
or
smaller, and the regular incomeapplied to the
with
is
for the
come
hold
not
That total then would
compared with the taxable in¬
will
"The
lems.
'
Rather, we foresee the air¬
liner, the train, the ocean carrier
pay
-
:
1
>
compromise 4 provides
blanket
and
the bus
exclusion of $1,500 basic
received by military person¬
from
nel
of
with
ing
men
where
:
vides
con¬
standing at time of death shall be
fronts
and
The
virtually
every¬
will
see
President's
year's tax
ported.
in regular
eration in the Age of Flight.
op¬
Chicago and
Singapore will be only 47 hours
apart; New York and Capetown,
<
i'vjf-t
>'
4
P :i *•••
;
•
<
._>■
.•
*'
the
opposition to a full
cancellation was re¬
——;
That
will be the day when
•'
of
our
airways
of
rejection
issue of May 20 page 1879.
In the same issue (page 1890) the
in
the> vast
for
network
House's
Ruml skip-a-year plan was noted
anywhere, is but lay¬
pattern
world-wide
we
canceled."
to
war
;
for
members " of
the
forces, the legislation pro¬
that any tax obligation out¬
"Also,
armed
carry¬
and materials of
the
which
airliners
making basic exemp¬
single military personnel
$2,000 and for married, $2,700.
Transport Com¬
Army Air Forces,
converted
combat
ing
the
and
taxpayers,
tion for
We, of course, foresee a great
expansion of airlines internation¬
ally as well as domestically.: The
global operations being carried on
today by the airlines under
income taxes, over
above basic exemptions for other
-R.
J. Stallman,
Wells-Dickey
was
a——in
Stallman Elected
,
their
.
of
sult
number
a
expected of the science
are
in the post-war period as the
(Continued from first page)
picture of air transportation and,
perhaps, to curb some of the
to
discard.
from this brief sum¬
mary, to see why the possibilities
in electronics have captured the
investment
imagination.
B i g
New Airline Horizons
boundless enthusiasm which
for
It is easy,
not repudiate.
that
Winkler
have achieved
we
to be evidence
seem
repudiation
5,250 airplanes of the type which
we
-expect to be available for
Dr.
has been responsible for all
fluctuations in these bonds and
Until
war.
-
greater than the existing domestic
airline systems and the need for
to
have
definite
air¬
propor¬
anyway."'
True, Dr. Winkler, Russia may sibilities which, will be theirs in
eventually repudiate these Rus¬
the era of world reconstruction. /•
sian bonds you are
talking about,
mand
very
the
victory, there can be no certainty
about any future plans.
When
that victory Comes, as it must, the
airlines will be ready to accept
the new and far greater respon¬
A debt
settlement with America—that is
responsibility for the finan¬ 39 hours from each other; Wash¬
amounting to $187,- tor's offhand treatment of Am¬ cial obligations of the former Rus¬ ington and Moscow, 24 hours
000.000 between the Governments
bassador Davies' reports on the sian Empire (March
14, 1919).' apart, and New York just >17
of the United
States and Russia; Russian debt situation in "Mis- The Soviet
'* Government officially hours from London.
the $11,000,000 National
City Bank sion to Moscow," the writer be¬ informed Premier Lloyd George
The air transport users of our
the
rest of the great powers
But since then it has on scores of
a
traffic of
the
.
have done with the
as we
ing the concrete—only glibness.
bonds simmer for nearly 20 years
the writer feels definitely that
return
concep¬
undreamed-of
are
tract for the Air
who' has watched these
will
new
before:
the Russian State
one
a
willing to do tions,. *
get the debt
Right now,' of course, the job of
question settled by the payment
the airlines—like that of every¬
of an extra
percentage on credits one else—is that of
helping to win
what
bonds he offers nothing approach¬
As
with
(he airplane's possibilities,
to
ways
who
men
war
swell
will
working together in
The following, regarding Soviet moving the great range in types
repudiation, was contained in an of passengers and cargoes which
article in
the "Nation"
by Mr. must be transported.
ly because of his glibness.
or
The
.
rumor
fair
Winkler's
merits
.
ranty of the N. Y. "Times"
indebtedness
"
the
tion of
.
made by Stalin to Walter Du-
settlements with outstand¬
glib observations Louis Fischer discussing the con¬
on
"repudiated" Russian bonds tention that the Bolsheviks have
refused to pay Czarist debts:
seem to me to be interesting sole¬
Dr.
debts.
was
to pass
came
in ment regarding these "repudiated"
has been bonds is better than a speculative
possibility.
V. II. MARDFIN
of
number
....
purpose
accomplished.
the
sugges¬
sian
your
so,
concrete
from the
that
to
justify
bonds that
in this and
ities.
and
1922
period,'
.
tions for the payment of Russia's
but there does
rapprochement,
readers will see, before the current year is out."
succeeding articles by That rumor did develop into fact.
the
writer
is
reasonably
others, the importance of a thor¬ And
ough and individual investigation certain from the evidence at hand
of all matters pertaining to secur¬ lately that some form of settle¬
Perhaps
made
sian
States
country.
Russians
hearsay evidence, particular¬
ly in view of an American-Rus¬
range
Bolivian
previously
for
excuse
bonds
At the Genoa
conferences-' in
-
coupled
with
learning the
benefits of air/speed during the
present war crisis, and the vast
to
.
bonds
7As to the future, I think that
advanced by the Soviet Union
whose
default—it
impression
that
reason
the general treaty and contractual
obligations which
countries
in
are;
quarters that the Soviet Govern¬
ment
(page 566). As regards the
private claims of American citi¬
various
high quota¬
tions of the Belgian, French, and
Norwegian securities are probably
due
to
repatriation
out
of
I
What better
turn
to
terest.
governmental Loan made in 1917
in
to
foreign
situations and prospects of
late in 1933), we stated that "the
cannot
submitted
seems
to
in¬
settlement of the Kerensky Inter¬
which
largely
Soviet decree
closely acquainted
with the subject.
Taking several other controver¬
bonds
note
confined
between those
task—Mr.
ficial
a
his metier
since
one
be
those who have been
Russia's'indebtedness
Great Britain.
speculator—
and Dri Winkler must obviously
be
pre-war
meet
Hague
Government 5Vzs and 6V2S
have registered a record apprecia¬
tion
"despite provisions of a
book, "Mission to Moscow," writ¬
ten by the man appointed to the
Joseph E. Davies. Please
As
July 7, 1920 of its willingness
to
meticu¬
independent and diver¬
gent • line of thought exists even
to the question
of
Belgium,
France,
Denmark,
and
Norway.
As stated,
these
This brings us to Exhibit II, the
f
lously presents.
on
the evi¬
Davies
entirely
which
lems.
or
"private" or "inside" information
and strongly
suggest that those
dent and himself.
After
recommendation
a
securities.
completed, leav¬
ing for guidance a gentleman's
agreement initialed by the Presi¬
be
market
purchase, sale,
interested
could
ments
have
past few
happy to say) lower
at (I am
years
These
securities.
Mr.
which
bond
Having presented such a favor¬
able picture, I think it necessary
for your readers' protection and
my own, to state that I have and
which to specu¬
on
in reading carefully
late
(Continued from page 1954)
-
there has taken place an exchange
of views with regards to methods
fair-minded speculator
will find much
Thursday, May 27, 1943
elected
rector
formerly of the
Minneapolis*
Co.,
treasurer
of American
and
Gas
Co.. Albert Lea. Minn., at
•
cent annual meeting;
~ ~
a
di¬
Machine
the
ret
-
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
157 * Number 4180
tionship
100% Reserve Plan Of Commercial Banking
Would Inject New
Disturbances Into System
Dean Madden Calls Plan
of
ume
Untried, Revolutionary
exists between
the
vol¬
deposits and business
DIVIDEND
role
in
the
Allied Chemical Si
61
bulletin
A
entitled
Director of the Institute^of InternaUniversity, states that it was sug¬
gested that the 100% Reserve Plan could be used as an effective
means
of reducing the public debt, which at the end of the war
may amount to between $200,000,000,000 and $275,000,000,000.
The
demands for the introduction of$>
this or a similar plan will un¬ or business activity is increasing.
politically
appointed
body
doubtedly be revived in the post¬ A
by
John
Dean
national
war
T.
Finance
Madden,
of
New
York
period when prices and busi-
vested with such vast discretion¬
versity, which
would be subjected to
pressure to provide for the ex¬
pansion of the currency involving
the danger of runaway
papermoney inflation.
"The 100% Reserve Plan is an
untried
revolutionary
proposal
state:
l-uX;:-
■
that
ness
activity
may
:
again
fluctuate
said
widely,
the
advices
from the Uni¬
"According
to
its propon¬
ary power
the
not
only would not achieve
objectives sought through it,
inject new major dis¬
but would
ents the 100%
Reserve
into
turbances
economic
Plan
financial
our
and
system, and curtail the
of commercial
of the country, the volume
adjusted demand deposits has
been larger than during the most
prosperous years of the twenties,
banking would
maintain
stable
a
price
These dis¬
level and iron ' tuations in business.
turbances would almost certainly
out the
swings
of
Dean
claim
upon
busi¬
ness
cycle.
They base this
T. Madden
J.
the
entirely
the assumption that if the
Government
could
volume of bank
control
the
deposits, it could
keep commodity prices and busi¬
ness activity stable,
f- ;
r
"Experience has repeatedly and
conclusively
shown
that
the
lead
to
popular
widespread
de¬
of
nationalization
the
mands
for
banks,
so that the Government
undo
the
harm
caused
could
introduction of this
system, and thus pave the way
for the adoption of state social¬
the
through
yet, as is well known, business
activity has failed to keep pace
common
the
On
question whether
Reserve Plan would
100%
the
pro¬
"It may be concluded, there¬
fore, that the 100% Reserve Plan
would fail to stabilize commodity
prices and business activity.
If
its advocates go further and seek
to regulate the forces that deter¬
mine the velocity of turnover of
bank
the
the
credit
100%
to fail
bound
to
Reserve
Plan
is
achieve ,the ob¬
1934
E
the
of
The lending pow¬
banks
would
be
se¬
been
entirely
national
effort. Thus
of
verely restricted, and many banks
probably be forced out of
would
business.
Since demand
have
Would
to
be
deposits
held
in
cash
its
equivalent, the banks would
longer be able to render free
of charge the many valuable ser¬
vices that the American public
or
no
in
general, and American busi¬
in particular, now take for
granted as typical of present-day
banking. The highly efficient and
ness
convenient checking-account sys¬
tem would be
many
jeopardized and in
instances would be replaced
by the
of currency.
use
economic
of the introduction
consequences
100%
Reserve Plan would
particularly unfortunate. The
entrusted with the admin¬
istration of the plan would be
be
agency
given
the
task
of
varying
volume of currency and
the
bank de¬
posits with the object of stabil¬
izing commodity prices and busi¬
ness.
This, of course, would at
times necessitate the issuance of
deposits
in
cities, excluding New
deposit^, then the powers of
Government
general
would
business in
over
have to
be
mate¬
rially increased.
Only in this way
could the Government effectively
determine not only how large the
volume of bank deposits shall be,
but also the extent to which the
of
owners
must
these
deposits
or
may
them."
use
In
wholesale
100)
=
In June,
the
while
wholesale
price
index
stood at 77.5.
"Secondly, the price level and
only by the volume of bank
j
of turnover of these deposits.'
deposits, but equally by the velocity
Obviously, in so far as existing
bank deposits are not utilized to
or services, they
do not influence either the price
for
level
or
volume
goods
business activity.
of
deposits
A small
turned
over
rapidly will have more effect
upon prices and business activity
than a large amount of deposits
not used by the owners.
deposits re¬
the willingness of the peo¬
"The
flects
Common
Stock,
has
the
"The
extent
which
to
funds
for
making new bank
loans would disappear under the
100%
Reserve
Plan
may
be
gauged from the application of
this plan to member banks of the
Federal
Reserve
Dec.
1942.
31,
System
of
as
On that date all
$78,276,671,000
deposits, including interbank
and public funds, of which $65,435,697,000, i.e., over 83%, were
demand deposits.
If a 100% cash
of
interest
business
on
the second
as
the outstanding
on
June
14,
1943,
their
the
on
required
money,
notice of intention.
Any such shift
of deposits from
the time to the demand
which
from
funds
loans
and
velocity
is'no
real basis for the
assertion, repeatedly made by ad¬
vocates of the 100% Reserve Plan,
that the volume of bank deposits
could
be
mined
properly
more
by
Government
a
deter¬
agency
of
the lending and in¬
vesting activities of the banks, by
which they satisfy the credit de¬
mands of business and govern¬
Both
other hand,
there
individual
and
corporate
depositors would
have
to
absorb
costly
service
charges, unless they could conduct
of
this
would have
a
revolutionary
plan
number of seriously
business,
banking and the well-being of the
population of the United States.
disturbing
It
would
available
effects
curtail
upon
the
volume
of
banks
would
have
a
number
to
liquidated their business. Busir
ness
concerns
business
with
currency
and
services
numerous
to
make
on
•
;
;
>
•
HARVESTER
COMPANY
The
Directors
of
International
Harvester
declared a quarterly dividend ol| fifty
(50c)
per
share on the common'stock
payable July 15, 1943, to all holders of record
at the close of business on June 19,
1943.
Company
cents
SANRORD
B.
WHI'IE, Secretary.
.
may
find
it
ex¬
tremely difficult to obtain loans,
A. HOLLANDER & SON, INC.
Common
been
to
mailed.
and inadequate restric¬
vague
tions.
The
the
open
plan
ment
probably
ultimate
the
business.
over
In
times
of
the whole ar¬
rangement could readily degener¬
ate into crude paper-money
in¬
flation, of the kind that developed
inAa number of European coun¬
as war,
100%
the
advocates
Plan, have
of
already
attained.
The
has
1943
bank
Fifth
475
dividend
A
in
the
total
Company,
of
holders
June
the
>
.
CENTS
N. Y.
share
a
has
the
15,
The stock transfer books of
not be closed.
J.
OSBORN, Secretary.
1943.
will
Company
HERVEY
Johns-Manville
Corporation
DIVIDEND
evil
The Board of Directors declared
a
regular
quarterly dividend of $1,75 per share on the
7% Preferred Stock payable
Cumulative
I. JV43, to
holders
of record
on
17, 1943, and a dividend of 50c per
on the Common Stock payable June
July
June
share
24,1943
to
holders of record
on
June 10, 1943.
ROGER HACKNEY, Treasurer
se¬
curity loans has been brought un¬
der control through the margin
regulation power of the Board of
KANSAS
First
CITY
POWER
Preferred,
COMPANY
Dividend- No. 66
LIGHT
Series B
&
City, Missouri
May 19, 1943
The regular quarterly dividend of
$1.53 per
share on the First Preferred, Series "B", Stock
of the Kansas City Power & Light Company
has
been
declared
payable July
1,
1943, to
stockholders of record at the close of business
June 14, 1943.
All persons holding stock of
the company
are requested to transfer on or before. Juno 14,
1943, such stock to the persons who are en¬
titled to receive the dividends.
Kansas
H.
Plan."
serve
'
*
COMPANY
York,
New
FIFTY
on
the
of
be
Sec.
capital stock
of this
payable
July
1,
1943,
to
stock¬
record at the Close of business on
brought about by sharp increases
decreases
will
FELDMAN,
SALT
Avenue,
of
declared
been
eliminated
through bank deposit insurance
and the improvement in the qual¬
ity of the bank assets.
The in¬
stability of the volume of deposits
and
J.
' •'
been
failure
to
busi¬
of
Checks
■
INTERNATIONAL
practically
been
close
has
1943,
Newark, N. J.
May 24,
"A number of the basic reforms
by
the
1943.
share
per
Stock
15,
at
record
5,
25c
June
:••
tries after the first World War.
desired
of
June
on
ness
Dividend
of
Common
payable
declared,
stockholders
nationalization of banking and for
increased control by the Govern¬
stress, such
the
on
ALBERT
would
for
way
dividend
A
system, which would have
to be given broad powers for is¬
suing fiat currency, subject only
C.
Secretary.
Assistant
DAVIS.
KENNECOTT COPPER CORPORATION
Says RR Credit Restored
a
recent
120
address, Patrick B.
McGinnis, analyst for Pflugfelder,
Bampton & Rust, 61 Broadway,
New York City, members of the
New York Stock Exchange, stated
Broadway,
(25c)
tion
share
a
of
today
payable
June
Rust
upon
Boston-Maine Looks Good
Mortgage
"A"
4!/2S
of
1970 of the Boston & Maine Rail¬
road offer
_
S.
the
1943
30,
June
close
of
to
busi¬
CHEROUNYT.Secretary.
NORTHERN
COMPANY
STATES
f
(WISCONSIN)
v
Illinois
directors of Northern State-*
Power Company (Wisconsin), at a meeting held
on
May 18,
1943, declared a dividend of one
and
one-auarter
per
cent <l1/4%)
per share
on
the Preferred Stock of the Company, pay¬
able
by check
June 1,
1943, to stockholders
of record as of the close of business May 20,
of
board
for
1943,
the
ending
quarter
N.
May
BUCKSTAFF,
H.
31,
lp43.
Treasurer.
interesting possibilities
The current
quarterly dividend
$1.25 a share on $5 Dividend
Preferred Stock and a dividend of
of
One
10
cents
a
share
on
Common
Stock have been declared, pay¬
able June 30, 1943, to
holders of record May
respective
28, 1943.
THE UNITED GAS IMPROVEMENTCO.
quest from the firm.
'/
distribu¬
cash
Chicago
Wall
Street,
New
York City, members of the New
York Stock Exchange.
Copies of
this circular may be had upon re¬
f
at
POWER
according to a circular being dis¬
tributed by McLaughlin, Baird &
Reuss,
City
May 21, 1943
twenty-five
cento
1943.
OF
The
request.
cn
record
1,
OFFICE
request from Pflugfelder, Bamp¬
&
York
special
a
A.
on
yet unrecognized." Copies
of the address may be had upon
ton
and
of
stockholders
stored
of
twenty-five cents (25c) a share have
been
declared
by
Kennecott
Copper
Corporation,
ness
New
distribution
cash
A
that "Railroad credit has been re¬
•
"
»
i
I. W. MORRIS, Treasurer
!■ i it
Philadelphia, Pa.
April 27, 1943
Interesting Situations
The current situation in Stand¬
purchases and em¬ particularly in periods of expand¬ ard Silica Corp., Utica & Mohawk
bark upon new ventures of all ing activity. The Government and Valley Railway, Fort Dodge, Des
kinds.
This willingness to spend, other long-term borrowers would Moines & Southern Railway, and
large additional amounts of paper
it has been amply demonstrated, find the banks on the whole un¬ Consolidated Dearborn Corpora¬
money,
which would undermine does not
depend solely upon the able to buy their newly issued tion offer interesting possibilities
confidence in the national mone¬
volume of money available. The securities, thus doubtless leading according to
statistical analyses
tary system.
At other times, it
velocity of turnover of bank de¬ to the creation of new credit prepared by Blair F. Claybaugh
would have to ration credit and
& Co.. 72 Wall Street, New York
posits fluctuates far more widely agencies that would merely do the
withhold it from many prospec¬
than their volume.
kind of business that the commer¬ City. Copies of these analyses may
tive borrowers in order to prevent
be had from the firm upon re¬
"Similarly, it can be proved cial banks of the country are now
an
expansion in the volume of
conclusively that no direct rela¬ performing as a matter of course. quest.
deposits when prices are rising
ple
business
of
Checks will be mailed.
INTERNATIONAL
serve
banking facilities since
of
close
the
at
1943.
H. C. Allan, Secretary and Treasurer.
they have been receiving
daily from the banks.
Monetary
control would be concentrated in
the hands of a currency commis¬
sion, or a Government-owned re¬
can
be little doubt that the introduc¬
tion
record
of
ers
June 9,
check-^account
Income
the
share on the Common
Stock, payable June 30, 1943, to stockhold¬
per
W. F. RASKOB, Secretary
ment.
"On
divi-
a
dead of Fifty Cents ($.50)
Philadelphia, May 21,1943.
May'24, 1943.
In
The bulletin concludes:
"There
^^2
on
category
further reduce the volume
would
of
plus of the Company
to
stockholders of record at the close of business
Directors have declaf-ed
The
AT^*3''r<>ra the Accumulated Sur-
which
following to say:'
available
of
share,
a
payable
dispense with
bulletin
close
the
at
their
the
banks
than through
business conditions are influenced
not
record
"interim" dividend for 1943,
the
prices
declined to 94.3 in
1940, the index of
deposits was at 171.8, the rate of
turnover
of
deposits was 83.8,
(1926
of
holders
July 24, 1943, to stock¬
July 9, 1943; also SI.00
discussing the effect of the
Plan on the lending service of
156.8 in 1926, while
of
index
1929.
The Board of Directors has declared this day a
dividend of |$1.12j4 a share on the outstanding
Preferred Stock, payable
ELECTRIC STORAGE BATTERY CO.
THE
& Company
Wilmington, Delaware: May 17, 1943
(1935-39=100) increased investments could be made."
187.9 from
the
pay
"Many of the broad
of the
York City
to
demand
of
100 leading
will
E. I. du Pont de Nemours
<®PU>
System.
Under
these
circum¬
stances, there is less reason than
ever to give any consideration to
so drastic, untried and disruptive
an
experiment as the 100% Re¬
have
9,
close of
Checks
VV. C. KING, Secretary
;;
*
York, N. Y.
1943, to stockholders of record
business May 26, 1943. MVu
be mailed by Bankers Trust
Co., N. Y., Transfer Agent.
H. G. SMITH, Treasurer.
May 14, 1943.
at the
influence
the
turnover
able June
the
1943.
Governors of the Federal Reserve
plan were to be adopted,
defense and the war
it
would
precipitate
the index of net demand deposits
profound changes not only in the
subject to reserves (1926 = 100)
banking
business,
but
also
in
rose to
104.6 in 1929, the rate of
other phases of the nation's eco¬
ers
stockholders of record at
close of business June 4,
deposits, apprehensive lest time
deposits could not be withdrawn
from the savings banks without
however,
nomic system.
to
would
1940,
under
"If this
1943,
probably transfer them to demand
the middle of 1940.
developments since
c o n o m
June,
jectives of its advocates.
19,
New
The
Board
of
Directors
has
this
day
declared a dividend of fifty cents per share
on the Capital Stock of the
Company, pay¬
the Common Stock of the
on
Company, payable June
COMPANY
33 Pine Street
c
to
i
up
★
BOAT
.
duce the desired effects, the bul¬
by
Dean
Madden
outstanding currency letin issued
reserve
had
to
be
maintained
and bank deposits is merely one states:
"Commodity prices and business against demand deposits only $12,factor, and frequently a relatively
minor influence, determining com¬ activity are profoundly affected 840,974,000 of time deposits would
have been available for making
modity price movements and the by a number of non-monetary
volume of business activity. Since factors, such
as the volume
of loans and investments by the sav¬
1933 an expansion of bank de¬ production
in relation to con¬ ings and loan bank£ or depart¬
ments that would be established
posits of unexampled proportions sumption, wage rates and other
to take them over. A considerable
has taken place, but commodity costs, taxes, tariffs, conditions in
amount of the banks' capital funds
prices have failed to rise to the foreign markets, and the political
is tied up in bank premises, fur¬
desired level until the war effort situation at home and abroad, etc.
niture and fixtures, and other real
created a huge demand for com¬ During the decade of the twenties,
estate.
modities and labor accompanied for example, the volume of bank
"It is by no means certain, how¬
by a sharp reduction in the vol¬ deposits expanded steadily, but
commodity prices remained rela¬ ever,
that
even
this
limited
ume of consumer's goods.
amount would remain available
Much more con¬
"In view of the demonstrated tively stable.
for lending by the banks. A num¬
fact that the level of commodity clusive evidence that no definite
ber of large depositors who now
prices and business activity has relationship exists between de¬
and commodity prices is keep a part of their funds on time
not been determined by changes posits
by developments from deposit, in order to obtain some
in the volume of outstanding bank afforded
of
amount
share
per
with the huge increase in the vol¬
of deposits.
ume
member banks had
ism."
ELECTRIC
Allied Chemical & Dye
Corjx>ration
has declared quarterly dividend No. 89
of One Dollar and Fifty Cents ($1.50)
services that the banks render to
business, the public and the Gov¬
ernment, and would probably ex¬
aggerate rather than prevent fluc¬
Dye Corporation
Broadway, New York
May 25, 1943
of
Plan," issued May 24
100%. Reserve
"The
DIVIDEND NOTICES
economic
life
Proposal That Would Fail Of Objective
NOTICES
ac¬
tivity. During the last few years,
prior to the middle of 1940, when
the effort began to play a pre¬
dominant
J 973
THE UNITED STATES LEATHER COMPANY
quarterly dividend of $1.75 per share will
paid July 1, 1943, to all holders of record
of business June 10, 1943, of Prior
Preference stock of this Company.
A
be
at
the close
C.
New
York,
May
26,
CAMERON,
Treasurer.
1943.
THE YALE & TOWNE MFG. CO.
On
fifteen
May
25,
1943, a dividend No.
212 of
cents
(15c)
per
share
was
declared
by the Board of Directors out of past earn¬
ings, payable July 1, 1943, to stockholders .of
record at the close of business June 10, 1943.
F.
DUNNING,
Secretary.
1974
THE COMMERCIAL
& FINANCIAL CHRONICLE
Thursday, May 27, 1943
Calendar of New Security Flotations:
STANDARD
OFFERINGS
MERCANTILE
Mercantile
PROPERTIES,
Properties,
registration
secured
May
filed
a
$3,100,000
4Va %
bonds
of
Business—Owns
in
York
New
rented
to
P.
W.
commercial
City,
each
Woolworth
is
be
supplied by amendment.
Proceeds—Net
proceeds will be used,
treasury, to redeem all of its presents out¬
standing
bonds
sinking
secured
in
face
the
fund
amount
of
5V2 %
gold
$3,031,000.
has
amendment
an
statement
dated
erties, Inc.,
public on
May
its
to
1963,
other
gives the offering price to the
$1,000
interest
from
May
delivery.
The
1,
plus
underwriters
record
the
the
and
face
amount
Meeds,
N.
N.
$600,000;
Y.,
$600,000;
Y.,
Spencer
&
May 24,
&
purchased by
Philadelphia, $300,000; Hornblower &
Weeks, N. Y., $300,000; Kidder, Peabody &
Co., N. Y., $300,000; Paine, Webber, Jack¬
&
Curtis,
N.
Y.,
$300,000;
terest
by
at
Bissell
Laird,
&
and
100
one-fifth
Unsubscribed
of
held,
common
Rights expired at
a
will
be
are
be
added
presently
will
work¬
be
in
balance
paid
of
as
April
1943,
15,
was
States
Registration
effective
statement
POWER
Iowa
ing
LIGHT
&
and
shares.
&
Light Co. has filed a
statement for $17,000,000 first
Address—312 Sixth
series due June
Avenue,
voting
Business—Is
business
Des Moines,
public utility engaged
a
F-l.
been
for
Commission.
the
series
of
Names
public
tered with
rants
of
The
cor¬
subsidiaries
exploratory
and
with
connection
who
is
at
take
desire
to
the
sell
firm
present no
shares
such
com¬
such
Mellon
546,400
to
to
from
Securities
the
of
the
Corpo¬
shares
The
regis¬
They
such
days
furnish
to
after
the
however,
such
of
prior
state¬
to
enter
character
effective
within
date,
corporation
the
to
registration
intend,
agreements
not
agreements
any
shares
the
of
have
selling stockholders
into
enter
date
thereof
owners
of
sale
few
a
the
not
the
into
of
debtedness
of
and
to
terms
the
of
will
open
ing, St.
properties
Co.,
estate
1,
1630
—
A-2
a
V.
Williams,
registration
certificates
capital stock,
par
statement
1,864
for
due
and
in
revision
lieu and
deposit
tate
which
the
$1
per
McMeekan
for
story
be
plan
warrants
created
and
of
for
and
warrants
of
the
to
voting
of
share, of Cerana
office of
corporation
70 Pine Street, Room 2305, New York City.
Business—Apartments.
Purpose—The trustees are presently act¬
ing as voting trustees for all the issued
capital stock of the corporation under a
voting
trust agreement
dated April 24,
1933, which, by its terms, expired March
31, 1943.
Under the terms of the voting
however,
the
holders
entitled to exchange their vot¬
certificates,
are
ing trust certificates for certificates of stock
of the corporation on Aug. 31, 1942.
It is
proposed to suggest to the holders of voting
certificates outstanding
that they
consent to the extension of the agreement
to Aug. 31, 1947.
Thus, holders of voting
trust certificates, who do not consent, will
receive stock certificates in exchange for
their voting trust certificates.
Those hold¬
trust
East
'
perferred
is
to
be
stock
distributed
unsubordinated
real
July 1,
of
being
bonds
Orange,
shares
to
N.
of
in
$600
cash,
J.,
$100
presently
the prop¬
surrender
for
of
consideration
cancellation
such
Munn
the rate
each, in
at
value
in
than
hold¬
of
each
bonds.
Registration Statement No. 2-5144. Form
S-l
(5-21-43).
*
es¬
1955,
the
by
DATES
extension
stamping
estate
East
the
to
mortgage on
registrant at 67 South
the
$1,000 face value
of
of
OF OFFERING
bonds
We
due
below
present
twenty
days
offering
mined
(5-18-43).
or
dates
list
a
or
more
have
cf
MONDAY, JUNE 7
INTERSTATE
BAKERIES
registration
first
(closed)
a
bonds
due
ARMOUR
for
mortgage
5%
refunding
W.
due
and
wholesale
and
in
St.,
Kansas
whose
been
to
deter-
us.
the
distribution
of
bakery products.
Offering—Price to public to
,
—
The
bread,
cake
underwriters
and
Mo.,
$200,000.
Proceeds—Of the proceeds approximately
$2,067,000 will be used for the redemption
on
Sept. 1, 1943, at 105%
and accrued
interest, of all of the outstanding first
mortgage 6% sinking fund gold bonds, due
Sept. 1, 1945, issued by Schulze Baking
Co.
and
subsequently assumed by Inter¬
state; $151,875 to the prepayment of the
real
estate
5%
note,
payable
Sept.
7,
1945, originally issued by Western Bakeries
Corp., Ltd., and subsequently assumed by
Interstate, and as an addition to working
capital.
and
(5-19-43).
1,
South
animal
has
filed
a
for $35,000,000 35income
debentures,
1978.
.
Street
and
Racine
Ave.,
America
and
for
the slaugther of
processing of meats and
for by-products.
In
the
products
and
conjunction with their meat packing oper¬
ations, company and subsidiaries manu¬
facture
other
butter
cheese
and
and
various
products.
Underwriting—Kuhn, Loeb & Co., New
York, head the underwriting group. Others
j
to
be
supplied by
amendment.
Offering—Company offers to
of its outstanding 523,581
the hold¬
shares of
ers
7%
of
guaranteed cumulative preferred stock
par value of $100 per share, the
the
right
to
exchange
debentures
amount
on
of
preferred
such
the
shares
basis
debentures
for
of
each
for
the
$100
face
share
\
its
on
than
the
entire
issue
of
debentures, to
of the debentures by the com¬
The debentures not taken upon the
allotment
pany.
exchange
and
price
will
The
3
offer
be
p.m.
have
offered
to be fixed
stock,
been
underwritten
to
the public
by amendment.
at
exchange
offer
will
expire
June 3, 1943, local War Time,
1978,
Co.
of
registration
a
<
debentures
lists
the
holders
of
stock
the
The
its
company
523,581
guaranteed
of
the
right
debentures
of
nation-wide
a
of
7%
Offering—The
the
to
of
basis
for
of
board
at
The
3
June
p.m.,
debentures
3,
face
the
of
names
underwriters
listed
as
and
follows:
the
ex¬
$200,000;
E.
Clark
&
Co.,
Boston,
$300,000;
Curtiss, House & Co., Cleveland, $150,000;
Dempsey-Detmer & Co., Chicago, $100,000;
Coffin
Dick
&
&
Burr,
Merle-Smith,
Dominick
&
Dillon
Emanuel
&
N.
Y.,
Y.,
$200,000;
Dominick,
N.
$500,000;
Philadelphia, $600,000; East¬
&
Co.,
N.
Y.,
$500,000;
Drexel & Co.,
man,
Inc.,
Co.,
N.
Y.,
&
Hardgrove,
Seattle,
Richards & Co.,
Cleveland Corp.,
$100,000;- Field,
Cleveland, $150,000; First
Cleveland, $150,000; First
of
Michigan Corp,, Detroit, $200,000; Glore,
Forgan & Co., N. Y., $750,000; Glover &
MacGregor,
Inc.,
Pittsburgh,
$100,000;
Goldman, Sachs & Co., N. Y., $1,000,000;
Graham,
Parsons
&
Co.,
Philadelphia,
$200,000; Grubbs, Scott & Co., Pittsburgh,
$100,000;
Hallgarten & Co., N. Y., $500,000; Harriman Ripley & Co., Inc., N. Y.,
$1,200,000; Harris, Hall & Co.,,Inc., Chi¬
cago,
$350,000; Hawley, Shepard & Co.,
Cleveland, $200,000; Hayden, Miller & Co.,
Cleveland, $250,000; Hayden, Stone & Co.,
N.
Y., $500,000; Hemphill, Noyes & Co.,
N.
Y., $500,000; Hill & Co., Cincinnati,
$100,000; J. J. B. Hilllard & Son, Louis¬
ville, $150,000; Hornblower & Weeks, N. Y.,
$500,000; W. E. Hutton & 'Co., N. Y., $500,000; Illinois Company of Chicago, Chicago,
$300,000;
$250,000;
cago,
N.
Kebbon,
Y.,
McCormick
&
Co.,
$750,000;
Peabody & Co.,
Ladenburg, Thalmann &
Co., N. Y., $750,000;
W. C. Langley & Co.,
Y.,
$300,000;
Lazard
Freres
&
Co.,
Y., $750,000; Lee Higginson Corp., N.
N.
N.
Y., $1,000,000; Lehman Brothers, N.
Y.,
$1,000,000; Carl M. Loeb, Rhoades & Co.,
N.
Y., $300,000; Mackubin, Legg & Co.,
Baltimore, $100,000; Laurence M. Marks
&
Co.,
Baltimore,
$200,000;
McDonaldCoolidge & Co., Cleveland, $250,000; Mer¬
rill,
Turben
&
Co.,
Milwaukee Company,
Moore,
Leonard
&
Cleveland, $200,000;
Milwaukee, $250,000;
Lynch,
Pittsburgh,
$150,000; F. S. Moseley & Co., Boston,
$500,000; Mullaney, Ross & Co., Chicago,
$100,000; Maynard H. Murch & Co., Cleve¬
land, $150,000; Newhard, Cook & Co., St.
Louis, $150,000; Ohio Company, Columbus,
$100,000; Paine, Webber, Jackson & Curtis,
weather & Co.,
&
Boyce,
N. Y., $150,000; Stein Bros.
Baltimore,
$250,000;
Stern
Co., Kansas City,
$150,000;
Stifel, Nicolaus &
Co.,
Inc., St. Louis,
$200,000; Stix & Co., St. Louis, $100,000;
Brothers
&
Stone
amount
to
(EWT)
net
no
-par.
Worth,
has filed
regis¬
a
Texas.
-
Fisher
.
■■
Business—Manufacture
-
v;y;: .?
Street,
Fort
'■
VvT- :'
mined
that
the
be offered
to
of
per
$10.50
formed
stock
stock
share.
voting
a
face
brick.
its
Distribution
is
to
by direct sales by the corporation
treasury
of
sold
should
trust
price
a
syndicate
for
has
the
common
from
the company.
Proceeds—Entire proceeds
will
be
for
additional
received
the sale
by the company and used
working capital and for
other
corporate purposes.
Registration Statement No. 2-5112. Form
(3-24-43).-
A-2
Amendment filed
effective
date.
CELOTEX
May 17,
1943, to defer
^
-
»
,
-
CORPORATION
Bror
Dahlberg, O. S>. Mansell and Andrew
Dallstream; voting trustees, have filed
J.
registration
a
certificates
stock
of
statefnent
for
150,000
Celotex
for
voting
shares
Corp.
of
trust
common
stock,
common
no
par
Offering-!—(See' Celotex
2-5112.)
voting
The
trust
forded
to
all
tificates,
holder
who
and
not
and
to
with
but
exceed
formed
the
be
af¬
syndicate
2-5112) and
such
of
stock, to
stock
common
voting
shares
upon
the
of
will
the
purchase
receive
Additional
trustees,
of
No.
stock
statement No.
be deposited
may
has
opportunity
their "shares
thereunder
statement
common
members
in
others
deposit
the
an
the
(mentioned
to
syndicate
for
and
company,
trust
of
cer¬
common
application of the
the consent of the
voting
voting trust certificates are
150,000 shares of common
stock.
Purpose—To "form voting trust.
;
■
.
Registration Statement No. 2-5113. Form
(3-24-43).
Amendment filed May 17,
1943, to defer
F-l
effective date.
...
FLORIDA POWER
A
mul0riitn,P0^Al
with
SEC
LIGHT
L,ght
CO.
C°'
*®gl»ter«l
$45,000,000
First
Mortgage
bonds, due Oct. 1, 1971; $10,000,000 Sink¬
ing Fund Debentures, due Oct.
1,
1956;
and
140.000
Stock,
and
shares
$100
Bonds
rate
on
Cumulative
Par.
Interest
Debentures,
the
preferred
plied by amendment
Address-—25 S. E.
v
I ft.
Power
&
System)
gaged
an
east
coast
sup¬
Miami,
^ .j
Americas
Bond
&
Share
operating public utility
(also
and
selling
manufacture
most
be
Ave.,
of
^princlpany in generating,
ergy
of
Second
of
of
the
and
Florida
en-
transmit¬
electric
sale
en¬
of
gas),
the
(with exception of
and other portions
territory
Jacksonville area),
the
dividend
will
subsidiary
distributing
the
stock,
(Electric
ting,
serving
on
the
...
Light
is
Preferred
rates
and
;
Business—This
along
Florida
Underwriting
ties
registered
Offering—The
ana
to
securi¬
be
sold by company
bidding Rule U-50
of the SEC's Public
Utility Holding Com¬
pany
Act.
Names of
underwriters and
price to public, will be supplied by
post-
under
the
effective
are
competitive
amendment to
registration state¬
ment
Proceeds
will
be
applied
at
follows:
as
102
V*, the $52,-
000.000 of company's First
Mortgage 5s of
1954; $15,693,370 to redeem at $110
per
share,
the
142,667
shares
of
company's
$7 preferred stock, no par.
Further de¬
tails
to
be
supplied
by
post-effective
amendment
:
-
Registration Statement
No.
>
2-4843.
Form
/Q-17-4P
Amendment filed
effective date. •
May
10,
1943,
:
,
to
defer
:
.
COOPERATIVE WHOLESALE •
Midland Cooperative Wholesale has filed
registration statement for $500,000 4%
15-year subordinated debenture notes.
plant
facilities,
f."
Address—739 Johnson St., N. E., Min¬
neapolis, Minn.
•
Business—Registrant
is
a
cooperative
association organized under the laws of
,
Minnesota.
All
of
its
by
It
is
business
in
a
.
non-profit
..
„
association:
common
or
voting stock is
cooperative, associations doing
the
States
of
Minnesota, Wis¬
consin,
Iowa, North and South Dakota-.
than ..85%
-of the common stock¬
holders are associations of farmers.
More
Underwriting—None.
Offering—At face value.
be dated
stock.
Proceeds—Expansion
be
The
of
owned
.
of
to
the selected group at
.
of
Offering—Present
offering
consists
of
2,000 units, each unit consists of four
shares preferred and one share common,
price per unit is $10.
•
•
Underwriting—None.
to
the
were
MIDLAND
-
....
Address—2500-22
company
through then available invest¬
banking channels. The board deter¬
ment
a
tration statement for 10,000 shares of 7%
preferred stock and 15,000 shares of com¬
mon,-
proposed
the
on
BURTONITE CORPORATION
Burtonite Corporation
carried
though such stock
as
A3
p.m.
be
then
company
price
000; Wisconsin Company, Milwaukee, $500,000; and Dean Witter & Co., San Fran¬
cisco, $500,000.
- ■
v.- .. :
.
whereby the
not
through
the opportunity to purchase the
the
a
$53,170,000 to redeem
,
out¬
single
a
willingness
a
arose
acting
of
from
could
& Webster and Blodget, Inc., N.
Y.,
$750,000; Stroud & Co., Inc., Philadelphia,
$250,000; Swiss American Corp., N. Y.,
$250,000; Union Securities Corp., N. Y.,
$750,000; G. H. Walker & Co., St. Louis,
$250,000;vWertheim & Co., N. Y., $300,000;
White, Weld & Co., N. Y., $750,000; Whit¬
ing, Weeks & Stubbs, Inc»t Boston, $250,-
Registration effective 5
May 18, 1943.
key
the syn¬
requested the company to afford
syndicate members, as well as other
of
Chi¬
Kidder,
block
stock
indicated
reasons
group
at
$200,000;
Equitable
Securities
Corp.,
N.
Y.,
$200,000; Estabrook
&
Co.,
Boston,
$300,000;
Fahey,
Clark & Co., Cleveland, $100,000;
Farwell,
Chapman & Co., Chicago, $200,000; Ferris
com¬
of
marketed
Co.,
Inc.,
$250,000;
working
of
group
large
a
purchase
same
Byllesby & Co., Inc., Chi¬
Central Republic
W.
of
had
When
employees,
$100,000; A. G. Becker & Co., Inc.,
Y.,
$600,000;
Blair,
Bonner &
Co.,
Chicago, $200,000; Blyth & Co., Inc., N. Y.,
$1,000,000; Alex. Brown & Sons, Baltimore,
cago,
carrying
company
common
issue,
N.
$350,000;
the
stock
land,
M.
substantial
of
the
the
Chicago, $250,000; Baker, Watts &
$150,000; Ball, Coons & Co., Cleve¬
H.
persons
dicate
Co.,
$350,000;
of
the company was
a
which
sell.
to
out,
Co.,
N.
Y.,
$2,500,000; First Boston
Corp., N. Y., $1,500,000; A. C. Allyn & Co.,
Inc.,
Chicago,
$500,000;
Bacon, Whipple
Co.,
advisory
or
group
,
proposed
Loeb
&
&
limited
a
standing
purchase
source
amounts
Kuhn,
con¬
including cer¬
tain officers and directors, joined in the
formation of a syndicate with a view to
change offer, have been underwritten, with
subscribed
of
standing
the
upon
$10.5(j>
group
business relations
company to be selected by the
directors.
Statement says that
employees
of
1943.
taken
not
professional
a
stock,
mon
held, subject to allotment
The offer to stockholders will
required.
expire
at
company
selected
a
negotiations to augment its
capital by the issuance and sale
preferred stock
if
in
recently, "while
per
share
Chir
shares of common
the
to
on
shares
$100
each
75,000
by
only
the
with
pre¬
$100
such
offered
serving
of
offers
be
share
capacity and
having long
outstanding
exchange
debentures
group
•
sisting of employees of the company, in¬
cluding officers and directors and those
an
April 1,
cumulative
value
par
to
on
due
common
'
1
will
registration statement
issue of $35,000,000 7%
income
which
filed
of
-
,
v-
.
Delaware
shares
/
ers.
its
to
underwriters.
be made
in
filed
75,000
value.
111.
cago,
the
of
for
par
per
proposed
shares
a
at
has
Corp.
no
Address—120 South La Salle Street,
Statement No. 2-5134. Form
&
cumulative
90
-
.
amendment
of
stock held,
subject, if the total
number of shares of preferred stock de¬
posited for exchange would require more
Registration Statement No. 2-5141. Form
S-l
DELAWARE
Delaware
cumulative
April
livestock
be supplied
amounts underwritten are:
H. M. Byllesby
&
Co., Inc., Chicago, $1,100,000; A. C.
Allyn & Co., Inc., Chicago, $500,000; Cen¬
tral Republic Co., Inc., Chicago, $500,000;
Farwell, Chapman & Co., Chicago, $200,000, and Stern Brothers & Co., Kansas
City,
of
Stock Yards, Chicago, 111.
Business—Engaged
in
meat
packing
business, operating packing plants in North
manufacture
amendment.
Underwriting
OF
Co.
Union
City,
other
by
CO.
statement
Address—43rd
1958.
34th
7%
year
$2,500,000
1,
&
registration
filed
statement
June
&
Armour
CORPORATION
Interstate Bakeries Corporation has
stock
$150,000; Reinholdt & Gardner, St. Louis,
$150,000; E. H. Rollins & Sons, Inc., N. Y.,
$500,000; L. F. Rothschild & Co., N. Y.,
$200,000; Schoellkopf, Hutton & Pomeroy,
Inc., $200,000; Schwabacher & Co., San
Francisco,
$250,000;
Singer,
Deane
&
Scribner,
Pittsburgh,
$150,000;
Smith,
Barney & Co., N. Y., $1,000,000; Stark¬
issues
but
ago,
not
unknown
are
preferred
Y„ $500,000; Arthur Perry & Co., Inc.,
Boston, $150,000; Putnam <Sr Co., Hartford,
whose registration statements were filed
sheets.
Celotex
taken
not
N.
UNDETERMINED
Registration Statement No. 2-5140. Form
S-l
the
four
for
issue
July 1, 1943, with an
legend, and affixing of new
appropriate
coupon
house
Avenue,
"
•
The
—
ten-
a
apartment
Munn
J.
It
addition
extension
an
said
of
erty
and
of
of
cash.
Avenue,
the
issued
and
delivery
stone
South
v;•
operates
secured by the first
certificates
due
Building,
registered is to be offered otherwise
issue,
such
and
Owns
67
N.
Offering
Build¬
and, upon
bond
of
Securities
v
and
at
Orange,
war¬
bonds
estate
—
brick
located
issue'certifi¬
agreement, the
first mortgage 5%
real
have
Apartments Corporation.
Address—Executive
COMPANY
be authorized.
Bankers
—
Business
war¬
and
holders
revision
and
and
mortgage 4 Ms %
first
value, to
Address
Bank
to
1943,
the
of
of
and
will
execution
1,
instead
said
bonds
real
July
consummation
1
shares
HOLDING
Philadelphia, Pa.
building.
the
to
V;"-v
Business—Engaged
trustees,
SEVEN
ers
5%
mortgage
Address—406
CERANA APARTMENTS CORPORATION.
Howard
(5-20-43).
par
Mo.
Walter
.
Sixty Seven Holding Company has regis¬
3,412 shares of preferred stock, $100
certificates
of first
and
proposed
deposit
warrants
S-l. (5-12-43).
Crawford,
stock¬
selling
in¬
Registration Statement No. 2-5138. Form
J.
the
to
go
etc.
WEDNESDAY, JUNE 9
Louis, Mo.
of
first
corporate purposes.
Edward
public,
are
$336,333
Boatmen's
Purpose—It is
Moines Electric Light
to partial payment for
of Iowa-Nebraska Light
$1,000,000 and for other
TUESDAY, JUNE
the
Registration Statement No. 2-5143. Form
CORP.
bonds
1955,
representing
Business—Apartment
be
Proceeds
account
to
holders.
Corp.
5% real estate bonds
July 1, 1943.
due
Des
$4,750,000;
Power
of
con¬
provisions
APARTMENTS
July
Address
the bonds,
$3,000,000
do
SIXTY
real
due
rants
the
together with
a
portion of funds to be received from
bank loans aggregating $2,500,000, will be
used to redeem on Sept. 1, 1943, a total
of $11,232,000 face
amount of the com¬
pany's first mortgage bonds; to redeem on
Oct. 1, 1943, 10,133 shares par $100 of the
company's 7% cumulative preferred stock;
to the purchase from Illinois Iowa Power
Co. of $1,750,000 face amount of general
refunding mortgage bonds, Series A, due
and
who
offered
Proceeds—Will
has regis¬
the SEC $336,333 of first mort¬
deposit
mortgage
of
the sale
extent
to
Apartments
4'/a %
gage
cates
from Illinois Iowa Power Co.
thereof
its
in
in
determined.
ment.
SUNDAY, JUNE 6
President
interdependent transactions
1 which
include
the
acquisition
by Con/ tinental Gas & Electric Co. of Iowa Power
& Light Co. and Des Moines Electric Light
trust
to
effective
(5-13-43).
PRESIDENT
Proceeds—Bonds are to be issued as part
trust
of
engaged
work
owns
intend
in
of
County,
Offering—Price to the
supplied by amendment.
filed
certain
United
tered
amendment.
and
foreign countries.
trusts
proceeds
In
underwriters will be supplied by post effec¬
&
the
in
Offering—The price at which the shares
may be offered to the public, the under¬
writing discounts or commissions, and the
supplemental agreement.
Registration Statement No. 2-5139. Form
and environs,
of
certificates
trust
except
amended
furnishing electric service
outside the City of Des
and in 12 contiguous
counties in Central Iowa, and furnishing
gas service in the City of Des Moines and
environs, and in two municipalities in ad¬
joining counties.
Underwriting—Bonds are to be offered
for sale at competitive bidding under the
Polk
Moines
Co.,
the
transportation, re¬
crude petroleum and
therefrom, or in busi¬
thereto,
There
ration
voting trust certificates subject to
provisions of the voting trust agree¬
the
ment,
1,
Iowa.
Iowa
Pa.
tered.
their
1973.
1955,
thereof
sale
Corporation.
Pittsburgh,
principally in
of
thereof.
owners
sent to the extension, will continue to hold
CO.
Power
registration
from
Oil
agreements, the names of the under¬
writers, the price at which the shares will
mortgage bonds, 3V*%
Co.
in
debentures
which, with the shares acquired
the exchange offer, will retire
par amount of such preferred
Armour
and
such
IOWA
a
Gulf
engaged
and
mitment
per
MONDAY, MAY 31
of
outstanding
acquisition of oil for future requirements.
Underwriting—The shares registered are
outstanding shares owned by certain per¬
11:30
EWT on May 13, 1943.
be
tive
and
are
actively
development
(4-22-43).
ing.
rules
$25
par
Building,
derived
poration
rule 930(b).
Offerings will rarely be made before the day follow¬
in
by
related
nesses
list of issues whose registration statedays ago.
These issues
are grouped according to the dates on which the
registrar
tion statements will in normal course become effective, that
is twenty days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally
become effective in seven days.
These dates, unless otherwise specified, are as of 4:30
the
and
products
Registration Statement No. 2-5127. Form
A-2
and
as
registered
registered
purchase,
note
Un¬
part
a
P.M. Eastern War Time
received
sale
of a long term bank
instalments to Dec. 15, 1951.
or
filed less than twenty
were
by
for
stock,
shares
and
production,
a.m.
Following is
the
issued
Business—Is
sons
ments
has
capital
of
Address—Gulf
$845,000.
associates.
supplied
the proceeds from the
of
none
the
to
of
cumulative
amount
Corporation
All
the
(4-29-43).
ferred
shares
share.
of
Registration
A-2
CORPORATION
Oil
764,500
per
the sale of
proceeds from
will
OIL
Gulf
at
3 p.m.
stock
Corpora¬
underwriters.
be
(3-5-43).
CELOTEX CORPORATION
$35,000,000
TUESDAY, JUNE 8
GULF
S-2
Business—Company is engaged in the
building material business.
Undenvriting—There are no underwrit¬
share
com¬
America
statement
company
sup¬
(5-19-43).
fining
due
in¬
Meads
of
will
and
equipment
A., San Francisco.
proceeds
stock.
the
additional
of
working capital.
Registration Statement No. 2-5105. Form
anteed
Registration Statement No. 2-5141. Form
offered
new
for
,
of
stock
were
be
Higginson
heads
others
will
holder.^;-^
the underwriters.
securities
all
of
Registration statement effective 2:45 p.m.
on May 19, 1943. v;
"
1943,
&
the
of
of
of
installation
Con¬
Trust
pursuant to
public
Lee
—
York,
Bank
&
exchange
pursuant
to
the
exchange
offer, with any other funds in the treas¬
ury which may be
necessary, to the re¬
demption of a par amount of 7% guar¬
gases.
part of the net proceeds to the prepayment
Minot,
(EWT)
20,
1943.
New
and
Bank
in
Day¬
Proceeds—Net
proceeds
from
sale
of
12,300 shares by the company will be add¬
to its general funds. Net proceeds from
57,700 shares will go to the selling stock¬
Hemp¬
to
net
issue.
equipment and cast¬
ing capital of the company. The company
may
determine at a later date to apply
&
Co.,
Inc.,
Boston,
$225,000;
Tucker, Anthony & Co., N. Y., $200,000;
Biddle, Whelen & Co., Philadelphia, $175,000, and Schirmer, Atherton & Co., Bos¬
ton, $100,000.
May
1943,
rate
share
Proceeds—Net
the
Kendall
Offered
each
Trask
Dillon
common
13,
the
share.
Parsons
Graham,
of
and
& S.
Depositaries
New York;
National
Proceeds—Company intends to apply the
remain¬
St.,
ed
is
of
and
Findlay
depositary.
Illinois
.Chicago,
N. T.
amendment.
Names
Co.,
liquids
Names
scale
Co.
Co.,
manufacturing,
conveying,
and otherwise handling corro¬
Underwriters
parts.
&
The
York.
authorized for
Offering—Price to
plied by amendment.
S-2
May
for
per
&
subscribe
to
at
$5.50
small
a
Loeb
Eastman,
Sachs
p.m.
New
are
North
the
of
tinental
of
the Chase
by
city
Chase National Bank,
are
reg¬
in
controlling
tion,
a
shares
■
used
sive
Co.
stock
share
Co.,
son
3
right
mon
of bonds to be purchased by each are given
in amendment as follows: Laird, Bissell &
Co.,
on
aircraft
underwriters:
Goldman,
Noyes &
of
O.
ings
and
bodies
underwriter.
Offering—Holders
of
date
certain
principal
Co.,
accrued
to
1943,
bomb
70,000
owned
Business—Produces
entry of
the
war,
undertaken
of
hill,
vi
:
:,:■■■
unit,
per
plating
named
17, Mercantile Prop¬
its proposed issue of $3,100,000
fund 4 Vz % bonds due May
at
the
Underwriting—Kuhn,
registration
secured sinking
1,
the
prior to
produces
recently
the
(4-29-43).
In
into
plate,
armor
Registration Statement No. 2-5135. Form
S-l
1941,
and truck bumpers,
steel gratings
and treads, universal joints and assemblies,
propeller shafts, steel spring parts, etc.
Company
now
processes
and
fabricates
its
necessary
country
Bank
Address—450
mobile
to¬
funds from
any
National
Coraopolis,
principal
products of the company and its whollyowned subsidiary, included steel automo¬
bile, truck and tractor leaf springs, auto¬
Trask
gether with
Ave.,
ton,
Business—In
this
outstanding and
ing 12,300 shares
Fourth
for
stock, par value $5 per share. Of
registered 57,700 are now issued
total
and
Pennsylvania.
Spencer
& Co., both of New York City.
Offering—Price to
the public will
the
the
INC.
Inc., has filed
statement
common
stock.
common
underwriters
and
statement
Address—843
COMPANY,
Company,
istration
common
of
Co.
Underwriting: — Principal
are
Laird, Bissell & Meeds
DURIRON
Co. has filed a
for 218,962
shares
and
build¬
which
of
CO.
Spring
stock, par value $1 per share,
subscription warrants evidencing sub¬
scription rights in respect of such shares
due
Street, New York City.
two
SPRING
Duriron
Steel
registration
1963.
Address—60 Wall
ings
for
fund
STEEL
Standard
has
Inc.,
statement
sinking
1,
INC.
as
will mature
of the
on
or
The notes will
date of sale.
before
15
Each note
years from its
-
Volume
date.
The
will
notes
nations of
THE COMMERCIAL
Number 4180
157
issued
be
for
used
•
part
Man*s Bookshelf
AGRICULTURAL MACHINERY
Registration Statement No. 2-5107. Form
A-2.
(3-17-43).
Amendment
*
•
effective
In
amendment
an
and
nated
the
W. Axe & Co.,
Inc.—Tarrytown Press, P. O. Box
defer
April
5,
1943,
preferred stock B,
the
reduces
debentures
latter
to
issued
be
stockholders
common
57, Tarrytown, N. Y.—Paper—45(J
—Free
only
to
unit.
EVALUATION
ABLES
AND
AN
CREDIT
1943.
5%
mortgage
erties,
Inc.,
ment
of
Holders
for
Securities
for
Commission
Exchange
and
the
certificates
deposit
of
RECEIV¬
PART
OF
ANALYSIS—Edward
Assistant
Cashier
F.
for
bonds.
-'V
;.
.
Address—Place
:
original
of
business
of
MENT
Address of committee,
711 Maritime Building, New Orleans, La.
Tampa, Fla.
issuer,
—A.
'
•Class B 5 %
of
mortgage bonds there are out-
dated
Sept.
1,
Both
the
'to
of
;
'
of
classes
rate
the
of 8%
securities
the
erty,
and,
Interest
bear
bonds
is
statement
desired
the
prop¬
be,
1
bondholders.
So far as'is known to the committee, no
'steps
have been
pare
plan
a
zation.
to
taken by
of readjustment
Securities
the
to
anyone
pre¬
reorgani-j
or
to be called for prior
are
proposal of a plan because from all
information
available, there is little possi¬
reorganiza¬
tion. The committee is of the opinion thai
the only feasible mode of procedure is to
foreclose the mortgage, obtain title to the
.property either in the committee or in a,
corporate or personal nominee of the com¬
mittee to operate the property for the ben¬
efit of the depositing bond holders and to
bility
of
seek
of
plan
purchaser for the same.
a
ibers
feasible
any
of
the
The memfound
that
have
committee
purchasers for the mortgaged
property are unwilling to negotiate until
title has been obtained through foreclosure.
The deposit agreement is dated Nov.
25,
The
has
committee
limit
any
period
the
to
not
yet fixed
as
the
which
within
will be accepted.
bonds
St.,
Associates,
Angeles,
Los
INTEREST AND USURY—Ber¬
nard
Registration Statement No. 2-5083. Form
•D-l. (1-18-43).
W.
Amendment filed
1943, to defer
May 21,
effective date.
-
,
business
business
vate
Public Af¬
Heat
shares
and
Co., re
Power
$100
common
par
stock
Address—4th
>
Ohio
Main
&
Cincinnati
St.,
i
Operating
—
utility
electric
company
-Columbia
(Jnderwf iter
Gas
Electrlr
&
able
Offering—Stockholders will receive of¬
fer to subscribe to 25/94ths of one com¬
mon share
In units of 5/94ths of a share
for each 5/94ths of a share held at $5.35
for each
unit.
On a share basis, stock'holders
subscribe
may
share held
for each
5
to
share}
new
at $100,016 per share
Substantially all outstanding stock is
Columbia
by
debt
current
repay
held
Corp.
Electric
&
Gas
Proceeds—To
anc
bj
parent and associated companies, anu toi
first
$2,835,000
-construction
mortgage
bonds
Registration Statement No. 2-4379. Forn
.
..
be
other ar¬
production
produce
war-time
a
ser¬
machines
and
the
is
economy
what
of
and
organiza¬
accomplish if their tech¬
capacities
are
given full
And
tion
men
.
between government and business
know
that
at
the
present time, with the newness of
conditions
war-time
which
working,
are
we
under
the
or¬
that,
through
and
the
part of government
an
explicit fiscal
policy, it will act
monetary
when
not
business,
act
to
business, can¬
employment
as
"At
the
present
time,
even
if
a
fiscal
and
monetary
policy
to
complement
and
supplement the activities of pri¬
vate
business
agreed
upon,
generally
there is no possi¬
the present organi¬
were
$3.50.
with
fective.
NUTRITION
—
Food
Administration,
Food
INDUSTRIAL
Distribution
Nutrition
Conservation
and
Branch
—
United States Government Print¬
ing ,,Office,
Washington,
C.—
D.
Economic
giving thought to
the responsibilities of private en¬
terprise in doing its full part in
means,
any
are
achieving
MONETARY
MENTS
(A
REFORM MOVE¬
Survey
of
Recent
and
Panaceas)—Joseph E.
Reeve, with introduction by Willard L. Thorp—American Council
Public
on
in the Committee
Development
by
not only
men,
for
high
production and
high employment in the post-war
Paper.
Plans
ingly, today many business men
associations of business
and many
Affairs, 2153 Florida
Washington, D. C.—Pa¬
Avenue,
I hasten to say that as
I know, these business men
period.
far
as
•
would
in
case
every
subordinate
this thinking about post-war em¬
ployment
efforts directed to¬
of the war, and
to
ward the winning
each, in his capacity as a business
has nhade sure that his
responsibilities for present war¬
NEW YORK LAWS AFFECT¬ time
production
are
being ef¬
ING BUSINESS CORPORATIONS ficiently discharged.
"Although the task is difficult,
(Annotated and revised to April
$3.25; Cloth, $3.75.
per,
manager,
tion
Company,
150
rewards
the
An
Address
POST-WAR
OF
STABILIZATION—
by Winthrop W. Al-
Chairman of the Board of
drich,
of
the
National
Chase
of the City of New York—
Bank
Chase National
Bank—Paper.
STABILIZATION
POST-WAR
OF FOREIGN EXCHANGE—Ben¬
jamin M. Anderson—In "The Eco¬
nomic Bulletin" for May 11, 1943,
issued
Capital
by
650 South Spring
Research
are
success
material
so
and
great
from
human
Broadway,
York City—Paper—$2.00.
MONETARY
of
point of view that it is an
which can be undertaken
Co.,
St., Los Angeles,
Calif.—Paper.
real
with
every
and
zest
difference
Little
of
enthusiasm.
opinion
and
petty special interests become in¬
significant
and
can
brushed
be
under
"There
ways
three
are
inadequacy, and
must be found for eliminat¬
ing them, or at least reducing the
severity of their influence.
"The first change that needs to
in the organization of
be made is
the
adminstrative
Federal
Aldrich,
Winthrop
by
W.;
Board
Chairman of the
branch
of
the
government. The admin¬
istration of any fiscal policy at all
calls for cooperation among agen¬
cies and for singleness of policy
in
least
at
several
the
Federal budget; the Federal lend¬
ing policy at home and abroad;
the credit and monetary policies
under the jurisdiction of the Fed¬
eral Reserve System; the creation
and refunding
of Federal debt,
which
is now
managed by the
Treasury; the tax program; and,
possibly, the activities of the Se¬
curities and Exchange Commis¬
•
sion.
respects:
These several functions
are
all
intimately associated in giving
reality to any governmental fiscal
and monetary policy designed to
cooperate with private business in
high
achieving
productivity
effective
.
1943, to defer
to
support
reach the humane
companies
former
had
name
bearing
1939,
revoked in
been
his
"A
fields.
situation
similar
Congress
its attempts to
goals it had set
with
the
several
in
com¬
•
Is
stock,
$1
par
The
value.
stock
issued and outstanding and
represent new financing.
Address—Adams
Street
and
Western
presently
does
Business—Normal
.
95%
•
-
facili-
are
of
facilities
the
are
company's
devoted
now
manufacturing
to
war
produc-
tion.
Underwriting—Floyd D. Cerf Co., Chi¬
is named principal underwriter.
Offering—Offering price to the public is
$6.50 per share.
Selling stockholders are
.Western National Bank of York, Pa., as
trustee
under
the
Benjamin S.
Taylor
Trust 28,013
shares, and Dr. Charles P,
Rice, York, Pa., 30,750 shares.
Proceeds—To selling stockholders.
cago,
'
Registration Statement No. 2-5118. Form
S~2
SURVEY OF FEDERAL HOUS¬
MORTGAGE
AND
ING
CIES—Dr.
Robert H.
Council
American
manufacturing
primarily designed for pressed,
drawn and stamped metal products. About
ties
•
policy
POLI¬
not
'Maryland Railroad, York, Pa.
•
enable
Ohrstrom to
evade the possible consequences
of his admission of violation made
in connection" with the 1939 or¬
der of revocation.
Since Hood &
with
common
•
tempt
Corrugating Co. has filed a statethe SEC for 50,000 shares of
York
"
(3-30-43).
Registration effective 12 Noon (EWT) on
1, 1943, as of 5:30 p.m. (EWT) May
18, 1943.
Skilton—
Public Af¬
on
2153 Florida Ave.,
ington, D. C.—Bulletin.
fairs,
Wash¬
to
requested withdrawal of
Co.
had
its
registration,
that it was
the
stated
SEC
not "necessary to de¬
whether the record discloses
cide
Ohr¬
of the
SEC Rejects Application
act." Ohrstrom had been a "con¬
tact" salesman for Hood & Co.
For Brokerage Permit
The Commission also declared
; The
application of George L. that Ohrstrom's application had
found
to
contain
"false
Ohrstrom, doing business as G. L. been
Ohrstrom & Co., 40 Wall Street, statements and omitted to state
strom
City,
was
denied by the
important
was
sion. Simultaneously Hood &
the
also
of
mitted
tion
40
to
as an
Wall
Street,
withdraw
was
its
Co.,
per¬
of
Hood
&
Co. by
within the meaning
information,"
failure to file a
Securities and Exchange Commis¬
May
Hirshon Co. To Admit Daly
had
control
New York
which
truthful statement
especially serious in view of
prior revocation order
him.
against
"T.--
that
New
England Pub. Service
must
consider
fiscal
legislative
and monetary
on
the
initiative
have been
which
might
expected from the Fed¬
government in analyzing the
and making some pre¬
tuted proceedings against the lat¬
liminary suggestions has not been
Ira Haupt & Co., Ill Broadway,
to partnership in Hirshon & Co.,
ter firm, which dissolved in 1942, New York City, member of the forthcoming until recent weeks.
61
Broadway,
New York City,
The Report of the Treasury Com¬
members of the New York Stock to determine wheth'er its regis¬ New York Stock Exchange, have
mittee
on
Inter-Governmental
Exchange, as of June 3. Mr. Daly tration should be revoked under prepared an analysis of the New
Levels treats of this problem in a
England Public Service Company.
''will be a member of the Stock
the securities acts.
somewhat timid
and ineffective
Copies of this interesting analysis
Exchange, acquiring the member¬
The SEC found that Mr. Ohr¬ may be had upon request from Ira way, in sharp contrast to the bold
ship of the late Eugene L. Maxassurance
of
the
more
recent
strom, whose registrations of two Haupt & Co.
wtell.
Richard E. Daly will be admited
and
dealer.
The
SEC
had
insti¬
hostile
of
or
government will
the
unless
most
be
but
the
preparatory or¬
work is done now,
Federal
helpless
indifferent,
even
government
in
executing
elementary
will
be
the
even
collaborative
program..
"In
let
concluding these remarks,
point up what I have to
with three observations.
me
say,
"First, On i our
planning
about
period,
to
be
there
done,
tion has its
tion
to
is
thinking
the
plenty
and
and
-
post-war
of
,
work
every
organiza¬
proper
own
contribu¬
make.
We
should
get
along with this planning, subject
only to the reservation that noth¬
ing must be permitted to inter¬
fere
with
winning
direct
the
for
measures
war.
"Second, let us avoid wasteful
duplication but J let us recognize
that
all
not
is wasteful.
the
great
this
4
For
and monetary policy
lation
and
example, one of
problems in
question of national
post-war
whole
fiscal
duplication of effort
sound
to
business
high employment.
want
we
should
a
re¬
Although
policy, we
a question
consistent
not leave
in
activity
such
to be studied
by any single agen¬
The Federal Reserve System,
of course, must work on it, but so
cy.
will the National Resources Plan¬
ning
Board
and
the
National
Planning Association.
And I feel
that the Committee for Eco¬
sure
nomic
this
Development will also give
matter
extensive
We
tion.
considera¬
must
judge
effort is
duplication of
by
more
penetrating
than
one
whether
is working
merely
agency
whether
wasteful
standards
more
than
single
on a
topic.
"And third and
in
the
United
finally, business
has
States
organization
an
to
created
think
about
and to work for expansion of pri¬
business activity and
vate
level of
employment.
high
This is the
a
Situation of Interest
single function of this
zation,
about the role of business
in
the
post-war world."
Macy & Co.
National
which
and Advisor of the
Planning
Resources
At
Board.
the
meeting
before
he spoke, Frederic A.
De¬
Chairman of the National
matters.
Even if a consistently Resources Planning Board intro¬
strong policy should emerge from duced Mr. Ruml, and said, accord¬
the
administrative
branch,
it ing to the New York "Times" that
would be subject to delay and he was in agreement on the point
possible
damaging
amendment that government must find mea¬
before
the
necessary
legislation sures to encourage "the healthy
would be forthcoming.
As far as and aggressive development of
taking the initiative is concerned, private enterprise."
Congress is handicapped both by
From
the
"Times"
we
also
organizational and procedural dif¬
quote:
ficulties and also by grossly in¬
Mr, Delano asserted that "full
adequate staffing of its technical
employment" after the war did
services.
not mean regimentation or that
"Another very serious difficulty
government would be "running
is the lack of close collaboration
business and industry."
He said
on
policies of expenditure and
it meant that government and in¬
taxation
between
the
Federal
dustry must each bear responsi¬
government on the one hand and
bility
for
providing
jobs
"at
the State and local governments
wages that will turn into buying
on the other.
This weakness has
power."
been well understood for years,
but
registra¬
over-the-counter broker
may
Mr. Ruml is Treasurer of R. H.
exists
of Directors of the Chase National
City of New York—
problems,
business
properly be apprehensive. It
be aprehensive, not that the
may
sures
of cooperation
mittees of both House and Senate
The Chase National Bank—Paper.
CO.
production
level.
organized a third company to
continue his business "in an at¬
h,.
CORRUGATING
YORK
.•ment
date.
May 20,
im¬
working out of
employment
and
ployment to high peace-time em¬
ployment
without
cooperation
from public government at every
pect that business can make the
transition from full war-time em¬
Bank of the
Amendment filed
re¬
and
the
post-war
our
the
new organi¬
the Committee for Eco¬
Those who
policy.
This meant that during nomic Development.
that
period the
administration have organized the Committee
had no consistent or continuing i hope that it may be a focus for
cooperative eforts of other
fiscal policy and was unable to the
business men who feel as they do
use the full power of fiscal mea¬
for itself in other
Address
principal
this
for
causes
and
aside in view of the prospect that high employment.
These func¬
lies ahead.
Business is definitely tions are scattered among several
committed to take the initiative, departments and
agencies, and,
and to do its proper part.
during the 30's, there was clear
"But it would be folly to ex¬ evidence
of
conflict
in
basic
"These measures
SAVINGS AND WAR FINANCE
—An
of
are
where
government
the greatest
sustain
and efective demand.
bility
OF
business
portance for
that,
zation of the Federal government
of its being made operative or ef¬
MANUAL
policy,
between
ganizational
administrative
of much less ef¬
fectiveness than they will become
Accord¬
lations
not
are
longer experience.
"Here, at the point of fiscal and
monetary
good, but in
on
sta¬
currency
as
among the sovereign
of the whole world.
are
my opinion they
enough.
In addition, we
require for success in the attack
by business and government on
mass
unemployment a commit¬
on
bilization
nations
are
can
we
that
agree
Treasury report
intentions
ment
under
evidence
unanswerable
held
costs
A-3
to
of
to
as
and
on
Corp.
"
the
far
so
arrangements
Directors
Business
some
for
go
ganizational
PROBLEMS
Light,
25,000
re¬
fairs, 2153 Florida Ave., Washing¬
ton, D. C.—Paper, $3.00; Cloth,
New
PANY
Union
by
pri¬
will
"The demonstration of what we
rules
effort
'glstered
enterprise,
enterprise
goods and
Continuing he said:
vices."
-^American Council
POWER COM¬
'UNION LIGHT, HEAT AND
system of
a
and distribution of
the
26, 1943)—United States Corpora¬
fer effective date.
'
private
Dempsey, with an intro¬
duction by Joseph A. Schumpeter
prospective
<1942.
eliminated under
be
nical
Spring
prop¬
the benefit
erty at the foreclosure sale for
of
fore-:
to
and/or pledged
to bid in the
mortgaged
if need
order
in
at
According
the deposit
after maturity.
registration
close
date
maturity
with
1931,
1,
1941.
Clifford
M.
&
the first
is
can^'
unemployment
rangements
Calif.—Paper.
i
standing $8,125 Class A 6% first mortgage
gold bonds.
3oth classes of bonds were
Sept.
Clifford
"Many," said Mr, Ruml "will
mass
supplanted
INVEST¬
unemployment
mass
rein.
639
office buildings,
and rental of store properties owned by it.
Purpose—In
addition
to
the
$956,500
Business—Operation
i
POLICY—A.
M.
18.
unless
are
AND
of
quirement for the post-war period" was made by Beardsley Ruml,
author of the Ruml "pay-as-you-go tax" plan in addressing a meet¬
ing of the American Society of Planning Officials in New York on
the
$950,500 of such first mortgage real estate
INFLATION
that the elimination
Co,
of
Bank & Trust
Richmond, Va.—Bankers Publish¬
ing Co., Cambridge, Mass.—Cloth
—$3.50.
bonds of Stovall Prop¬
a registration state¬
gold
has filed
with
and
INVENTORIES AS
State-Planters
first
B
Class
OF
INTEGRAL
Gee,
PROPERTIES, INC.
Committee
The statement that "it is fortunate that today most business men
agree
May
I
company's
per
(EWT;
STOVALL
libraries
non-profit institutions.
Registration statement effective 3:50 p.m.
(EFTi on May 21, 1943, as of 5:30 p.m.
May 8,
public
$250,000,
to
to
$100
at
par
of subordi¬
amount
sold
be
to
filed
issue 5,000 shares of
to
proposes
non-cumulative
$100,
to
date.
company
3Ve
1943,
6,
May
1975
Ruml Calls This A Most Important Post-War Problem
INDUSTRY—E.
.
filed
& FINANCIAL CHRONICLE
Question Of National Fiscal & Monetary Policy
In Relation To Business & Employment Vital
The Business
pur-,:
chase of1'a' refinery for the
refining of
gasoline,
kerosene
and other
light. oils,
located at Cushing, Okla., together with
pipelines, tanks, tank cars and inventories.
be
■kytJ-w.4•»
<**♦
denomi¬
in
$25,: $100, $500 and $1,000.
Proceeds—Will
*>■***
eral
problem
lano,
"In
periods where business and
are not at full capacity,
example, during such times as
industry
for
may
war
be needed to reconvert from
to
peace-time
production,
must be responsible
ready definite and
sound programs to provide jobs
and income, with resultant buying
government
having
for
power,
until business and industry
again reach the full produc¬
tion level," he said.
can
1976
THE COMMERCIAL & FINANCIAL CHRONICLE
IIAnover 2-0050
For Dealers
Teletype—N. Y. 1-971
Firm Trading Markets
Fort Pitt Bridge Works
..
Common & 6s of SO
Active
FOREIGN SECURITIES
Thursday, May 27, 1943
Trading Markets in
Preferred
Bendix Home
Class A
Appliances, Inc.
Erie Railroad
and Common
All Issues
Warrants
-
Majestic Radio & Television Corp.
PARL MARKS & HO. ma
Preferred
and
Houston Ltg. & Power
Common'
Common
,
FOREIGN SECURITIES
Allen B. DuMont
,
SPECIALISTS
Class
New York City
50 Broad Street
A
Laboratories, Inc.
M. S. WIEN & CO.
Members N. Y. Security Dealers Ass'n
Common
25 Broad St., N.Y.
Information
request
on
Teletype
■-
'
■'
.
t
Members New
STREET,
NEW
West
YORK/
delegation to the United Nations Conference on
Food and Agriculture, at Hot Springs, Va., proposed on May 23 the
establishment of an international food bank.
The bank, according
philadelphia
telephone
RKotoe
new
Goal Co.
Teletype
Bell
telephone
Enterprise 6015
2-3600
york
1-576
1st
Press, would take the form of "an internationally
held balancing or buffer stock which could be increased when pro¬
British Undersec¬
Foreign Affairs and
Bichard Law,
for
retary
Chairman of the delegation,
pre¬
3,000-word statement de¬
scribing this and other elements
of a British blueprint for a world
free from want. Under it, the ad¬
vices from which we quote added,
sented
a
the
plow-it-under
philosophy
would be supplanted by a bold
policy of expanded production.
Production and consumption of
protective foods would be subsi¬
dized.
An
internationally
fi¬
nanced
organization
would ' be
empowered to give foodstuffs to
populations in need.
1
Hot
From
.
.
Springs the Asso¬
reported:
Press -further
ciated
"The
how¬
ever, that before such long-range
plans can be put into effect the
urgent problems of the imme¬
diate
post-war period must be
proposal
stresses,
met. '
-■
^
.J
period of drastic short¬
growing out of the war's
widespread destruction and dis¬
organization of production is de¬
scribed as falling into two phases,
"This
age
of
the first
which will be dom¬
the struggle to prevent
hunger in wide areas.
"The
second phase, Mr. Law
inated by
explains, will be one of transition
in which production and distribu¬
tion will still be gravely disor¬
ganized, with enough food avail¬
able to satisfy hunger, but not
enough to achieve a balanced
diet.
cure
it."
"The
United
Kingdom
delega¬
tion suggests the food conference
should
do
these things toward
are
way through the pe¬
shortage to achievement
riod
of
of
well-fed world:
should
It
stating that the
all
the
go
on
supply.'
For U. S. Armed Forces
ning affair as compared with the
policy of expansion as against the former all day outing; there will
be no luncheon, but golf and ten¬
policy of restricted production.
'We believe that the only unques¬ nis will be features of the after¬
tionable justification for reducing noon, dinner, bridge etc. in the
the production of a desirable com¬ evening.
Members of the picnic
com¬
modity is to release capacity for
funds
It
should
'enunciate
"4. It should recommend
basic
a
governments
the production of some other still
desirable one.'
mittee
Ray
are:
F.
Weidenbor-
Henderson - Weidenborner
St. Paul, chairman; Cecil
"5
It
should recommend
the Co.,
Burnham, First National Bank of
buffer stock, or food bank.
Minneapolis;
Elme)r
Williams,
'Such a stock would serve a
Allison-Williams
Co.,
Minnea¬
double purpose,'
the delegation
polis; H. N. Tufvesson, H. M.
said.
'Not only would it insure
Byllesby & Co; Rollie Andrews,
that
the
consumer
always has J. M. Dain &
Co., Minneapolis;
more
ner,
"
ample supplies available for him
Goth, Piper, Jaffray & Hopand that the producer always has a
wood, H. T. Booth, Paine, Webber
purchaser for his product, also, if
Jackson & Curtis.
H. T. Booth,
properly managed, it would shield
who was chairman of the commit¬
both parties from violent shorttee, found his duties serving on
term fluctuations in price.
his draft board taking so much
'In the view of the United time that he could not do justice
Fred
"
Kingdom delegation those respon¬
sible for operating a buffer stock
should aim at combining a short
period stabilization of prices with
a long period price policy which
balances supply and demand and
allows
steady rate of expansion
to the most efficient producers. It
should be possible to achieve this
a
through varitions in
the
prices at which the authority con¬
trolling the buffer stock is a buy¬
and
er
seller.... A buffer stock
a
of the type described above is of
buffer stock designed simply to
a
maintain
"6. The conference should adopt
declaration that 'there should
a
as
modity except under the control
of
to the
arrangements committee.
<
special
The Financial
to
Chronicle)
DENVER, COLO.—The Regional
Agency, Inc., has been formed
.
authority
fully
kind
firm
are
Harold W. Thorne,
President; Byron G. Rogers, Vice
President, and M. G. Kimsey, Sec¬
retary. Mr. Thorne was formerly
an
officer of the Colonial Service
CHICAGO,
ILL.
—
Sidney L.
Castle, of Chicago, partner of Car¬
ter H. Harrison & Co., and Dr.
Henry G. Langworthy of Dubuque,
and
Iowa, were elected to member¬
is
R. HOE CO.
Pierce-Butler Radiator
COMMON
tion
Eastern Footwear
Bought
—
Sold
Quoted
(Direct
in
private
the
State
wire
to
Tower
our
Office
Building,
SYRACUSE, N. Y.)
BIRNBAUM & CO.
HAY, FALES & CO.
Members New
71
York Stock Exchange
Broadway N. Y. BOwIing Green 9-7027
Bell
Teletype XT 1-61
"While advocating steps toward
achievement of a well-fed world,
ithe
British
delegation
warns
against
Differential Wheel
Members N, Y. Security Dealers' Assn.
60 Broad St,
HAnover 2-6790
Bell
New York
Syracuse 2-7153
Teletype NY 1-2230
of
attempt at regimenta¬
appetities or solution of
any
problems as though all nations
and peoples were alike.
"'Improving the consumption
habits of peoples,' says the mem¬
orandum, 'does not imply that
every one in every part of the
world should have exactly the
same diet.
In approaching our
main task of abolishing want, we
.
Telephone:
Bell
in
trict
BOwling
Teletype
Co., Inc.
York
Green
NY
City
9-4970
1-1043
raise
to
supplying
Mission Oil
the
for
of
purpose
Vicana
am¬
bulances
the
New
t
R.
o
Sugar
Hoe & Co.
United
Air Communications
Armed
States
Forces.
It
believed
is
General Aviation
Great American Industries
that this
time
has
Equipt;
that
this is the first
been
at¬
L D. Sherman & Co.
tempted in the
industry
and
Street, New York
Telephone WHitehall 4-7970
anxious
very
Pine
30
is
STANY
Bell
System Teletype NY 1-2218
to do the best
job possible.
The
400
members
tion
o
White & Co. Is Formed-
f
Associa¬
the
Walter
Saunders
New St. Louis Firm
New
in
appointed
ST. LOUIS, MO.—G. M.
(Jim)
members of a general committee
White and Julian M. White an¬
to get the job done and done well.
nounce that they have terminated
The members will serve on sub¬
York
been
all
have
under
the
leadership
of
captains listed below:
Walter F. Saunders, Chairman,
The Dominion Securities Corp.
Jerry Aal, Abraham & Co.
Michael
J.
&
Manus
Thomas
Willers, C. E. De Wil-
Co.
Heaney,
Joseph
Mc-
Co.
their
of
with
the
firm
gage in the securities
business
under the firm name of White &
Company from offices in the Mis¬
sissippi Valley Trust Building.
Associated
with
the
firm
new
will be Leonard P.
D.
A.
connection
Murdoch, Dearth & White, Inc.,
that they will hereafter en¬
and
Gremp,
Betz, Raymond
Theodore C. Honig,
Larkin, Goodbody & Hiram
Neuwoehner, Paul T. PhiJohn J. O'Kane, John J. O'Kane, ambolis, and Arthur E. Smith, all
formerly with Murdoch, Dearth
Jr., & Co.
& White.
Harry Peiser, Ira Haupt & Co.
Fred Preller, Eastman, Dillon &
Co.
Abraham
Edward
Sees Seaboard Plan Soon
Strauss, Strauss Bros.
Thompson, Smith, Bar¬ To Be
& Co.
ney
Torpie,
Merrill
Lynch,
Pierce, Fenner & Beane.
Contributions
are
to be sent di¬
rectly to the Chairman
the
Captains
checks
are
to
or
any
mentioned,
be
drawn
to
of
administrative
on
the
question of "interest
interest" settled, it is the
opin¬
ion of L. H. Rothchild &
Co., 120
Broadway, New York City, that
Special Master Tazewell Taylor's
and plan for the
reorganization of the
the
order of Security Traders of New
York Ambulance Fund.
All
Made Public
With
Robert
expenses
in
Seaboard Air Line will be made
public by the middle of June.
L. H. Rothchild & Co. are
prepar¬
ing
an
analysis of the signifi¬
plan which will be
be paid by the' Association and
ready shortly thereafter and
may
every
penny
collected will
be
connection
with
the
above
will
cance
used for the purpose intended.
be
of this
obtained from them
upon
quest.
■
■
re¬
v.
..
Chicago Traction Issue
foodstuffs.'
Title Guarantee & Trust
Broadway,
York, Incorporated,
inaugurating a drive
the security business and dis¬
Co.
Chicago Exchange Members
42
New
lers &
new
D. F. Bernheimer &
are
Chester De
repre¬
a
of
today
ings Building, to engage in a se¬
curities business.
Officers of the
'to insure to all man¬ sentative of both producers
supply of food which is consumers.'
ship in the Chicago Stock Ex¬
secure, adequate and suitable.'
-"7. It should recommend crea¬ change by the Executive Commit¬
"2. It should, despite exclusion of
tion of an international
body with tee, it was announced.
relief from the conference agenda,
authority to buy foodstuffs for in¬
consider both phases pf the period
ternational distribution 'and give
data on food problems and to
of shortage and 'resolve that, so
them to populations in need.'
'study the problems continuously.'
long as this state of affairs exists,
"On this point the memorandum
"8. It should recommend crea¬
international arrangements should
exist to encourage the maximum tion of a 'new' and comprehen¬ adds that such an -organization
production of the commodities sive organization' to collect and might also serve a useful purpose
which are most needed and to se- distribute scientific and statistical by 'giving authoritative advice re¬
garding the free distribution of
sented
tion
Description on Request
Security Traders Associa¬
with offices in the Midland Sav¬
no
some
The
committees
Form New Denver Firm
Corporation of Denver.
prices.'
goal of
here repre¬
Twin
bold
regulation of quotas of the
export of any agricultural com¬
record
City Bend Glob
MINNEAPOLIS, MINN. — The
City Bond Club will hold its
annual picnic at the Midland Hills
food
production'
principles
of
which every nation can follow in Golf Club on June 24th.
Some
deciding its own food supply pol¬ changes have taken place in the
icy and which it will 'recognize program of pre-war days—the af¬
as right for other nations, too.'
fair to be an afternoon and eve¬
be
common
STANY Opens Drive To
To Hold Annual Picnic Raise Ambulance Fund
Twin
orderly and equitable dis¬
in short
"3.
Mtge. Income 6s, 1947
Bought, Sold & Quoted
tribution of the commodities which
pointing the
"1.
an
aim
"During this phase," says the
memorandum, "we cannot hope to
abolish want, but we can alleviate
a
when
^
it falls short."
1-1397
Virginia-Pittsburgh
British
duction for the time being outruns demands, and drawn upon
HAnover 2-8780
Y.
"}'■
INCORPORATED
York Security Dealers Association
NASSAU
45
'
to the Associated
N.
Kobbe, Gearhart & Company
International Food Bank Urged By British
At Food Conference-Favor Greater Production
The
.
Penn Central Airlines.
(
.
.
must cater for wide differences in
Appears Interesting
OFFERINGS
Preferred & Common
5% gold bonds of the Chicago City
and
Connecting Railways offers
an interesting situation at current
levels, according to a detailed
memorandum
issued
by Straus
Securities Company, 135 South La
Salle Street, Chicago, 111.
Copies
of the memorandum, which con¬
tains interesting price range fig¬
ures and graphic representation of
market range, is available to reg¬
istered dealers and banks upon
type and adeqqacy of diets both request; copies may be obtained
within, and .between .countries.' -" from Straus Securities Co.,,vi
WANTED
Pacific Coast Cement
The collateral trust sinking fund
Empire Sheet & Tin Plate
Bonds
&
Stock
American Department Stores
4s
&
6s
Quaker City Cold Storage 5s
Hill, Thompson & Co., Inc.
Markets and Situations
120
for Dealers
Broadway, New York
Tol. Rector 2-2020
Tele. NY 1 -2660
@FedFRASER