Full text of Commercial and Financial Chronicle : May 28, 1942, Vol. 155, No. 4076, Section 2

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THURSDAY

Final Edition

In 2 Sections

Section 2

-

i'

(

my

Reg. U. 8. Pat. Office,

New

Number 4076

Volume 155

York, N. Y„ Thursday, May 28, 1942

Money Stabilization

The
tions

their'com¬

themselves undoubtedly will reach record heights in
the latter years of the conflict, according to D. Stewart Iglehart,

merce

among

Co., and the Grace' Line, which have

President of W. El Grace &

been active in South American trade for nearly 90 years.
In

issued

statement

a

May

there first

went

as

terests

of

than

that

40

figures
for 1941 forecast that the relative increase for that year will

than

410

that

"ever

War

South" American nations by no
means

the

since

volume has remained

on

trade

things

of

trade

is

; eco¬
hardship

a

conscious and

doubt seeking

U.

S.

Savings

Financial
From
.

If

ratio

1914-1918

the

this

in

themselves has already
started in large volume, total
exports of all Latin American
nations to their neighbors hav¬

war

1943 should reach

in

trade

continental

American

recurs

period inter-South

on

(Continued on page 2040)

Ahead

of

the

2042

that there is

Commodity Prices—Domestic Index 2044

Carloadings

2045

Weekly Engineering Construction..

2043

Paperboard Industry Statistics..... 2045

2047

Weekly Lumber Movement
Fertilizer

Price

2044

Index

Weekly Coal and Coke Output.....

2043

Weekly Steel Review.

2042

Moody's Daily Commodity Index...

2046

Federal

Reserve

Earnings (Mar.) 2046

April

Business

2035, 2043

Survey

Cuts WPA

2037

Wheat Crop

2044

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

$15,000,000,000 2035

Every night
made
good.
Un¬ ical warfare boys.
doubtedly, too, they were of that we hear on the radio and every
breed that used to skirt around day we read in the public print,
the corner screechingly on two the efforts of these psychological
It is a study of the human
wheels and make all of us say: boys.
that
they think that the
Those bQys -will never come to mind
the
Wheless's,
the
any good end.
They are the rep¬ Bulkeley's,
resentatives of the generation that O'Hare's, etc.—while they are nice

% and

fronts

fellows—have

not
All
that generation about whom we made a major contribution.
they have done is to be shot at
elders used to speak despairingly
and to shoot at them.
But they
as the "ne'er do wells."
"soft," the representatives of young

was

really

of
; It so happens that those boys
thinkers.
They are not men of
are giving a right good account
words.
With
the exception of
of themselves.
Doolittle who has had experience
\ But in spite of this, and with all
with the press for a long time, no
their medals, can they possibly
orie of' them has the knack of
not

are

period, telling his story.

compete in the after-war
the

with

more

among

articulate

men

is

talkative

a

our

group

No one of them
No

man.

of

one

prevalent in Washington who will them is good with the pen."
undoubtedly insist that they were
the

who

ones

indeed,

they

won

now

are

the war, who,

insisting

the main front.

are

Manifestly,

then,

they

can't

that tle, the decisive battle, - the battle
•

•

had the copies

file

useful that

of bound

our

correspondence,

copies dates back
1880:
Can there be any doubt in

important financial developments?
Financial Chronicle was designed for binding.
With

page

all

size, bound volumes will be

thinner, will

open

This is
we

want

merely

you

a

to get

Decries

Hull

Financial Chronicle.'

you because
subscription to the

suggestion—passed along to
*

your

Early

Victory




Political

2034

mism

War Industry

Calls

for

Business Planning

vs

2042

Strikes Higher in Apr.

We of American business

Synthetic Rubber

2042

Expansion
Weekly Worker Earnings at Peak..
To

ing

2042

planning for

men,

planning for the future, fight-

are

future and for

your

ours.

2042

Study Wage Stabilization.

It

April Bldg. Permit Valuations Down 2041

Urges

Treasury
for Tax
Braden

our

our

We
2040

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

V/'.,."

2040

this land of

Explains Price Order and State

.

.■

'

'-\"v

-

of

thousands

V'V'O

of

i;

'

men

We

*

*

\V

*

and

their brains and their

energy,

to

go

jobless in

hope and opportunity.—-Eric Johnston, President

of the Chamber

of Commerce of the United States.

2040

Laws

Funds to Cuban Sugar

2040

Mills.

Jt

2040

....

Conversion

for

hardly "news"

is

business

men,

Navy:*....2040

Savings Radio Program

f

the well informed that American

to

whether through their organizations like the

Chamber of Commerce

of the United States

offices and laboratories, are

•.

or

in their

own

planning for the post-war period.

2040

Looking

War Needs

2039

habit.

2039

Shortage...

dustry has

Creates War Division 2039

carefully and realistically

That is the

reason,

or

one

the future is their

made its record of achievement during the past

The trouble is that

Opposed as Real Estate

..■:

to

of them, why American in¬

century.

2039

2039

t

Treasury Offers Notes on Exchange

and their
to

handiwork

there

may

are

others who,

are

planning, too,

well make it impossible for industry

accomplish what it otherwise might

easily achieve.

2048
Data Survey

Limited.. 2048

Living Costs in Industrial Cities Up
Announces

*

hungry for employmentf eager foy< a chance to use

women,

Volume of South

Sales Rule Clarified...

Corp.

American

solution to

return to your country.

you

hundreds

allow

cannot

their talents,

OPA

a

of the fighting forces:

men

you,

when

you

.

2033

Threat

working to find

now

■

American Trade................
Installment

pledge to

jobs for

2038

.......

,....

Record

is

United States

representing

problems.

post-war

will have

Factory Workers Hours, Earnings in

Sees

nationally

Commerce,

and industry,

This is

vof War Plants. 2038

Group Raises Capital Gains,

Surtax rates

of

2038

Cuba Post...

Plan for Protection
House

2038

.'

Purposes

Assumes

time to reveal that the

opportune

an

business

Deductions

Wage

is

Chamber

2041

Predicts Increased AEF.............

Payment on Danish

•

Bonds
i

we

2036)

on page

Opti¬

Problem

^

be

comes.

however, after all, but the tools with which

are,

(Continued

To Establish New War Foods Boards 2034

Jones

which

may

2043

Expand

:JBasis

full value from

as

Housing Schedule Must

War

Says

Patman Bill

flat and

far

as

They

2047

Employment Principal Post War

will be easier to handle.

liberty

our

Redemption 2043

To Permit Wheat Loan

Warn of Acute Rubber

The new
the larger

rely in preserving

2047

Register

Sight-Seeing Buses

Bans

neces¬

upon

Youths 18 to 20 to

Justice Dept.

mind about the value of binding your copies of the
Financial Chronicle, of having at your finger tips a complete

must

the tools

during the war and of regaining it all after peace

Still Problem

your

of

we

Honored ."......

1906—and still another to

record

2046

are

2036

Plant

we find a subscriber
to 1887—another to

They

2036

War

have,

of freedom of speech

within those limits imposed by the

sity of winning the war.

Fed. Intermediate Debentures Sold 2040

we

nothing could be

sure,

Pattern...

Seeks More Funds for

bound and kept for reference."

Running through
whose

so

To be

overlooked.

was

important than preservation

2046

OPA Extends War Rent Areas..

been

Important Issue

to us that one aspect of this present danger
freedom, economic as well as other, perma¬

our

and of the press

De¬

1941

Trade

lish

Trade

One Reader Says...

and

FDR Predicts Long War

U. S.

"The Financial Chronicle lias

nently

Says PanrAmericanism Will Estab¬

OPA

(Continued on page 2041)

losing

more

2045

Benefits

Bank Loans for War Production Up

March

figure in on the great overall bat¬

the

war,

no

2045

Provisions

Retirement
in

cline

of

2044

Old-Age

or

Yet it appears

RFC to Aid Dealers in Rationed

Bond Reissue

defended

war

portant issue at a time when it gravely needed airing, and
his words for the most part were plainly words of wisdom.

2037

—..

He

President,

Whatever may be thought of his assertion about "plain
fascist economics" in times of war, he raised a most im¬

Appropriation..... 2037

Washington AIB Chapter..

Insurance

farsighted Washington

more

duration."

the

the

An

April Cotton Spinning Activity

the

"for

even

Miscellaneous

Deferred Payments for

correspondents have
lot of thinking the past week about whom, when the
war is victoriously over, will get the credit for it, I mean the credit
lor the victory, not the war.
Heroes galore have been pouring in on us: Bulkeley, Doolittle,
Wheless. O'Hare and the spirit of Colin Kelly, etc. These young men
have accomplished a tremendous
I am speaking of the psycholog¬
lot.
They went out to the battleof

criticize

2041

Gross and Net RR.

message was

right to
pled
calmly but strongly for less intolerance of those who before
Pearl Harbor thought we should remain at peace and he
denounced the "smear" tactics for the recent years so much
practiced in political circles.

2042

Weekly Crude Oil Production......

real

surrender

2042

Weekly Electric Power Output

Treasury Receipts at

lot

danger that his main theme will be neglected.
to the effect that we should sur¬
render as few of our traditional liberties as possible, and
that those necessarily surrendered should be restored as.
soon
as
possible after hostilities cease. We should, he
said in effect, insist upon the maintenance of the essen¬
tials of free speech, and a free press, not only because they
are valuable
even in war time but
by reason of the fact
that they will be the most potent of weapons for use in
the restoration of all other freedoms we feel obliged to

2035

General Review

Goods

A

the

tention has been attracted to this assertion of Mr. Hoover

Trade

of

War Industry Loans Increase.

been doing a

essential to

or

were

His
State

War

powers" in the
"just plan fascist economics"
winning of the war.
So much at¬

President,

JT

Items About Banks and Trust Cos. 2048

Heads

By CARLISLE BARGERON

evidently carefully prepared and,

an

2033

Washington

News

FDR

AHEAD OF THE NEWS

of

course

whole, admirable address last week, ex-President

hands of the

2033

Objective of Manpower Commission 2037

FROM WASHINGTON

the

Hoover remarked that "dictatorial economic

-

Situation.

total of 600

a

In the

and

League, Chicago.

Non-Ferrous Metals Market

no

to remedy.

among

.•

their

for

This

Washington is

nations

10

needed
life.

to them of which

"commercial

the

.

nomic

history in this war is going to
repeat itself.
The increase in
the

for

need

their

products here and lack of ship¬
ping space southbound combine
to
deny our neighbors many

level, the annual total never fall¬
ing below the 1914 figure except
in the low
year of
1932."
Mr.
Iglehart continued:
Every indication now is that
American

satisfies

manufactured articles
which they do not make.
For
these they look to the United
States but the shortage of such

higher

a

Counsel

many

World

first

American

Germany. .2034

2033

"'General
Loon

the

among

from

millions," and he states

South

it is, the

more

inter-South

-

trade

of

increase

trade

to

in

Planning'

Moody's Bond Prices and Yields....

?

•

though

dollars

of

millions

larger.

even

Gratifying

.

increasing

tripled,

nearly

i be

and

1914

incomplete

1940.

and

in¬
ago,

years

"between

inter-South American

1918

130

Company

Grace

more

observes

Loans

Business

as

Regular Features

■

manager

Value"

(Boxed)

•

ing expanded 20% between 1939

resident

a

^

•

-

"Fixed

Politics

|

25,^

Mr. Iglehart, who has been a close
observer of South America since
he

Editorials
Page
Save Or Irivest tn A Savings
and Loan Association? By Horace
Russell* (In Section I).......... 2024

Why

the 10 na¬

war is creating a great upsurge of trade among
the South American continent and the volume of

on

Copy

a

GENERAL CONTENTS

New Record Volume Of South American Trade 7
Foreseen Wiih Consequent

Price 60 Cents

:

V

2048

.

.

*

.

l-ii.......... i,.l>....«; 2048

r

It is encumbent upon

that does not

happen. A

the American people to see to it that

THE COMMERCIAL &

2034

FINANCIAL CHRONICLE

Thursday, May 28/ 1942

willing to lend on the security
would have to sell the mortgage bonds,
handing over the proceeds to the mortgagor.3 3 /; ;;
In practically all cases these loans met with singular
success ;i and - were oversubscribed shortly after
subscript;
Secretary of State Cordell Hull,
An Experiment During The Runaway Inflation *?v
in a formal statement issued on
tions were opened.
The issuing corporations, of course,
May 23, warned the public against
received only national currency but they were generally
By KARL KORANY1 '1
; */'; ?
1 ;
being too over-optimistic about an
able to convert such currency readily into real securities
With the progress of the currency depreciation after
early
victory
over
the
Axis
or: materials before much further depreciation occurred,
7
powers.
Secretary Hull said in a the first World War, distrust in the national currency of
'statement read to his press con¬
Practical experience proved thay once the people had.
Germany became general.
On pay-days, the housewife
ference that the "hard fight" will
[lost confidence in the stability of. the commodity value of.
be won "only by the combined waited at the factory gates or at the office- building in order
ithe currency, the. only way to raise new funds in the cap- ■
all-out efforts of all our people
not to lose an instant in exchanging her husband's earnings
dtaL market; at reasonable terms was to convince the in-1
and all of the United Nations,"
for tangible goods; Shopkeepers who found it more profit^
Ivestors that they could hope to receiye interest and re-<
adding that "we should accept
able to* close their stores than sell their merchandise, - were
our successes in a spirit of sober
[demption based, on about the same buying power they had
thanksgiving and "meet our - re¬ forced by law to sell for cash the goods which they; had
given away regardless of the nominal value of the currency
verses with a grim determination
taken out of display or hidden away.
involved.
to fight all the harder to ultimate
The flight from the currency had spread ■ rapidly.
and complete victory."
To reduce the burden of such guarantee, the debtors:
Since about 1921, values expressed in that currency had ;;
Mr. Hull had been reported as
•fried whenever possible to take as basis for the issue their
become meaningless.. At that time, a Berlin court fined
intimating at an earlier press con¬
own
particular product or a commodity they used as raw
ference (on May 20) that victory a
culprit 600 pounds of coal, and a municipal council leased
[material in their finishing process.
Thus rye loans weremight come sooner than had been a
swimming pool to a club at the rent of the price of thirty
expected several months ago in
very- convenient to farmers and farm credit associations,
large mugs of light beer as charged at a popular . chain
view of recent encouraging devel¬
.'particularly as in this section?of economic life a primitive
opments at home and abroad. The restaurant.: In some big mining and metal concerns* the
land crude rye currency had already been established at an
issuance of the statement is re¬ salaries of
top executives were fixed in pig iron or steel
fearly "stage of the inflation. In 1924, about fifty million
garded as intended to correct any units.
3 i''
■■■'
erroneous
impression that may
[quintals of rye loans were listed on the German stock ex¬
Strange as. it may seem at first, there was a .scarcity
have arisen from the May 20 re¬
of capital despite the abundance of money.
As a matter changes. / Compared with rye, wheat was of only minor
ports.
Secretary Hull's statement of of fact, for all practical purposes, the capital market did importance.
May 23 follows:
Coal
not function at all. The rapid; fall in value of the' currency |; ; Coal loans also were a very popular investment.
I have noted with uneasiness
as a commodity basis was favored by gas, light and power
had largely destroyed the incentive. for saving or for the
that
some
of the
American
companies, especially since in most power supply contracts
; •••';
people, seeing the rapidly in¬ investment of idle funds.
the prices of energy were linked with the coal price.
Some
creasing strength of the United
In 1922, several big industrial companies; Were com
States and United Nations' sucferring with > the, aim' of: creating:. theirowh "stable value" municipalities which owned or operated an electric power
cesses in various places, are inplant also chose coal as the most suitable basic commodity
clined to anticipate an earlier currency when some financiers evolved the idea of issuing
tor their loans.
For similar reasons, coke was taken' in
! victory than they had hereto-- a new type of loan in which commodities served as the basis
some cases.
fore expected.
We can too for calculation of the amount of subscription, interest and
In certain parts of Central Europe, lignite takes the
easily be over-optimistic.
We
redemption.
are in a hard fight which will
These "fixed value" loans or, as they were sometimes place of coal in power plants.: Hence lignite or brown coal
be won only by the combined
was the basis for some industrial loans.
To make its bonds
all-out efforts of all our people called, "commodity" loans were subscribable and redeem¬
still more attractive, the State of Hesse issued a compound
and all of the United Nations.
able in the national currency, the price of certain com¬
We should accept our sucmodities being used as an index for evaluating this cur¬ lignite and rye loan whereby the denomination was de¬
cesses
in
a
spirit of sober
fined as the arithmetical average of a quintal of rye and
They were, in a way, kindred of the gold clause a metric ton of
thanksgiving and meet our re- rency.
lignite. Some local governments and pub¬
verses with a grim
determina- and multiple currency loans, all of them springing directly
lic utiltities found it more convenient to replace the coal
[ tion to fight all the harder to from unsettled currency conditions' or, at least, a general
ultimate and complete victory.
distrust in the government's ability^ to maintain a stable price by the price of electricity in their loan indentures.
Communities which owned extensive forest areas issued
I have said it recently, but I national
currency.
Yet, they [are distinguished from these
repeat because it is most im¬
lumber and timber loans.
two groups by the fact that they aim- at sustaining, the real
portant:
"Victory
will come
As to the public response to the various commodity
sooner and with a
saving or commodity value of the invested capital rather than its
in suffering, in life and. in proptypes, coal and rye loans led in popularity.
On the other
equivalent in gold or foreign; exchange.
erty in proportion as every man
The construction of such loans was comparatively hand, lumber and timber loans never appealed much to,
and woman in this country and
the average investor, who seemed to prefer a commodity
each of the United Nations real- simple.
While the details varied from, case. to case, the
with a broad international market or, at least, a commodity
izes the extreme danger from general principle held that subscriptions were made accordthe price of which was controlled by a syndicate.
tne purposes of the worst bar¬
irig to the prices ruling on thb date of subscription for;the
barian leaders in all history
?: It is, of course, a point of great interest to both the in¬
commodity upon which the' issue was based,
who plan to conquer and bru- particular
vestor and the debtor whether the stock exchange quota¬
tally subjugate the world by while interest payments arid redemptions were ; contracted
methods
of unparalleled
sav¬ for likewise according to the prices ruling on the dates at tions of these bonds were in line with the price and fluc¬
agery."
lotted for payments.
The idea was to substitute for.the tuations of the respective commodities. And here ex¬
Victory will be hastened by
currency or gold, and their respective buying power, some perience taught that while during the runaway inflation
every additional ounce of effort
;Not only did; it inspire; the stock exchange quotations had caught up fairly well,
which each one of us puts forth commodity or, rather, its price.
in a situation that is as threat¬ great confidence, in some investors' minds, to have their with the commodity prices, they lagged considerably beAt the end of;
ening as if his own house were capital always linked with; the price of commodities^ but hind them after the currency stabilization.
on fire.
It will be delayed and
also experience proved that such, investors actually, fared 1926, for instance, the price of 5% gold mortgage bonds at
j will involve an incalculable and better in the end.
the German stock exchanges was 80 to 85% of parity,. At
1 j
V
*
unnecessary increase in suffer¬
the same time, the 5% coal loan of the State of Baden was,
ing and in losses with any
Among the first of such issues were the Oldenburg
| weakening of such realization
State Credit Bank rye bonds issued at the beginning of j quoted at a discount of 29 %, and the 5 % rye bonds of the
and with any lagging in effort
semi-official German Eye Loan Bank at a, discount bf
192th1 The subscription price represented .the value at the
1
and exertion.
34 % A An explanation for this might be found in the fact
time of issue of 125 kilos (1 kilo^2.2 pounds) of ryey re¬
I
I that once the commodity value of the national currency has
demption to begin April 1392.7,\based on the. yalue^
Rfcr
kilos of rye at that time.
The exchange quotation of rye beeri restored of' stabilized, the further price development
on the date of redemption was to determine the rate of ret | of the
basic - commodities becomes much more uncertain
To Be Set Up: Nelson
q i
demption." Interest was represented by the difference; Of and, measured in terms of the currency, more unstable
I ;Donaljd M. Nelson, Chairman of
Although most of the basic commodities were
25 kilos between "the price of issue (125 kilos) and ihe s than hitherto.
the War Production
Board, re¬
staple goods with a broad international market, the domesvealed on May 21 that an over-all prince of redemption (150 kilos).
tic and not the world market prices were decisive for the
food requirements committee will
Another scheme is exemplified by the 5% Badenwerk
valuation- of the loan.
The home market price, however.)
soon,
be
established
under
the Coal Loan of 1923.2
The loan represented the paper Mark
! was not
WPB. Mr. Nelson's announcement
only dependent on the world market fluctuations
equivalent of the value of 125,000 metric tons (1 metric
was contained in a telegram read
but .was also subject to such modifying factors as good or
to the meeting of the Associated ton 3 1,000. kilos)- of coal of specified grade, and bore in¬
bad harvests, labor conditions) taxes, government regula¬
Grocery Manufacturers of Amer¬ terest at 5%.
Individual shares were issued for -10,000;
ica in New York City.
He also
5,000, 2,000, 1,000 and 500 kilos of coal.
All charges were tions, etc.
disclosed that Secretary of Agri¬
Another characteristic of the price, curves of these
to be calculated on the price of coal.
r
.
culture
Wickard
will .probably
loans was that their fluctuations were much smaller than
head the new organization, which
Along these lines, various coal, lignite,, sugar, potash,
those of the respective commodities.
This fact, however;
will include representatives of the
timber and rye loans were issued by central and local gov¬
armed forces, the office of Price
is not surprising since according to the loan terms the price
ernments as well as by corporate bodies.
.
;
:
Administration, the Board of Eco¬
average of several weeks or even months was to be taken
nomic Warfare and the WPB.
Also the contraction of private loans, such as mort¬
as a basis for the computation of both the interest and the
Mr. Nelson's telegram said that
gages, on a similar plan had proceeded to an advanced
redemption/ Thus, price' declines or increases were re¬
the committee will "establish the
stage. Thus, in East Prussia arrangements were made to flected in the stock exchange quotations only if they indi¬
policies and programs by which
America's food supply will be pro¬ grant loans to farmers on a rye basis, this commodity being cated an actual change of the price trend.
duced and processed during the chosen because of its importance in the German diet and
After the currency stabilization, the amortization of
war," and added that an elaborate the ;fact that it is grown in large quantities all over the
the fixed rate obligations progressed rapidly and was al¬
food administration will not be
country.
In this particular case, the provincial authorities most
everywhere far ahead of schedule. The above-mennecessary since operating details
issued mortgage bonds to the value of a certain quantity
will be handled by existing agen¬
Viondd disCourit! was no doubt a great stimulus for the debtof rye, with interest fixed in similar terms.
The holder
cies.
Editorial—

Over-Optimism On Early
Victory Held Perilous vTixed Value"
*

then had to find a person

/v

-4

of this mortgage or

loans In Germany

*

f

•

.

.

'

*

...

.

*

'

*

,

-

.

*

..

<•

-

-

.

.

*

'

.

■

i

..

•

.

:

^

:

,

>

v

*




Volume 155

their (.sinking fund and ^redemptions pur¬
Furthermore, certain accounting difficulties made

increase

to

ors:

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4076

chases;

Federal Reserve

such

profitable operations all the more desirable;;;* And,
above all, there was always a risk regarding the future
price development, which the debtors hastened to. elimi¬
nate

possible.

soon as

as

;

^

conditions/ that industrial activity increased in April and the first

Later oil

half of May

than

short-lived product of

a

J* :

' \

duction
in

See:

2.

Ibid.

Saling's

stock

- v.

.

3.

Bulletin 'Of

4.

See:

furter

the

London

City

and

■:

1924/25.

Berlin

yearbook,

exchange

i7 •■■■/,/
October, 1923. "

,■■■

Bank,

Midland

.

upon

j

the

the

during

of

relative

the

first

sta¬

quarter

when growing
was
offset by

war

de¬

•/<-f. Since

the

beginning

total volume

of

the

of industrial

.output has shown little change
but 'there

The State Of Trade

machinery,

1

steel, nonferrous
metals,
glass containers, wood pulp, and
coal.
On the other hand, out¬
put of many products for civilr

war

*

that

state

There

has

been

in

buying

let-down
tion's

retail

several

noticeable

a

stores

in

the
the

over

Whereas

weeks.

Na¬
last

during

the first three months of the year
dollar sales averaged somewhat
better than

above the

20%

com-

the

marginal

many

store¬

tailers

Not

a

few younger re¬

will; be

into

going

order

•

.'.products

-

the

were

commodities

-

factured

April

principal
decline

showing

.

/maintained in large volume.
Value
tracts

of

construction

awarded

in

April,

con¬

as

re¬

ported by the F. W. Dodge Corp,,
almost one-fifth

was

high

decline

the

reflecting a
publicly
financed

in

/construction.
tracts

..and

below

March total,

Residential

decreased
for

the

con¬

one-fourth

by

month

at

were

.

about

the

year.

;

Awards for non-residen¬

same

level

last

as

.

;

There

f;

;

several

explanations
for the slowing down of retail
activity.
Some merchants hold
that it is a natural development,

•

are

months

as
it has after several
of heavy buying by conf-

sumers.

c

These merchants believe

coming

that
/

for current needs and in some in¬
stances for

some

months to

come.

Gasoline rationing also is viewed
as
having a retarding influence
on

Women

sales.

retail

who

shopped

usually

by automobile
yet taken to other

prcfii

concerns,

numerous

retailers, point to a
considerable rise in business fail1

observers state.
A

•!

?
,

t

contra-seasonal

decline j in

electric power output' was shown
last week, according to the fig*
Institute.

trie
ended

For

Saturday

amount

tributed

of

the

May

electrical

In

the

,

awards

first

for

four

months

.1942, total

awards

were

one-fourth

greater

than

of

about

in the

corresponding period last year;
..public
/

awards

more

than

dou-

bled,

while those for private
projects were down by about

J two-fifths.... Public

awards

in

not

as

6% larger than a. year
in contrast with price in¬

ago

arising in com¬

plying with the OPA price regu¬

in

the

week

same

The law is not

are many:

Total

last year.

pre¬

•

spurt

after

markedly,

several

months

this
of

month

week

was

relative

The

f

liabilities

concerns

were

these

of

insolvent

10% smaller.

There is good reason to believe,

however,

that

solvencies will
Even

in

the
soon

March,

trend

of

in¬

manufacturers

ous than
cline
V./-

in

two years ago.

This total

turn upward.

failures

among

food, apparel, lumber and paper
;

21,750 cars under the corre¬
sponding week in 1941 and 159,987 cars above the same period
year,

were more numer¬

year ago.

of insolven-

ing

a

j;'.-.:/. *7: V'v-




'

'<•

''

'

was

131.09% of

Steel

rent
■"

aver¬

loadings for the correspondr
week

of

the

production

week will
7

to

the

changeover

production.

of

civilian

'

With changeovers nearing com1

pletion

years.

A sharp de-

the number

age

in. such

major industries
as
automobiles, the rise of indus¬
trial activity should now be quite

preceding rapid, observers state. It is gen¬
erally felt that the index should
for the cur- top the 200 level some time this

10

amount to 1,691,;

.

•

•

> •

ted

year.

in

any

their

year.

one

Income

tax

first

making

payers,

under

returns

the

higher levies enacted last year,
contributed a total of $3,905,000,000, principally during the
first instalment period on March

because

products, and to
a sharp rise in iron ore
loadings
as the Great Lakes
shipping sea¬
son got under
way.
Shipments
of merchandise in less than

car¬

load

decline in

the average load per car
in order to effect fuller utiliza¬

tion of railroad equipment.

Beginning on May 11, whole¬
prices of most commodities
limited
to
the
highest
levels
reached
during March,
according to the general maxi¬
mum
price regulation > issued
April 28. Effective May 18, re¬

sale

were

tail

prices; ofmost;; commodities
limited."

likewise

Were

prices

of

related

be limited

Retail

services

will

schedules

beginning July 1.
new maximum price
for industrial
prod¬

ucts

issued from the mid¬

r

About 30
were

of

dle

allowed

were

ing the remainder of the
small

many

waived

the

year

taxpayers

privilege of instal¬
and remitted in

ment payments

full, officials said.
Of the remainder, a total of
$4,208,000,000 has been realized
through the purchase of Treas¬
ury bonds, including the issue
of 2Vz%

20-25-year bonds which

remained
for

open

period

a

for subscription
of 10 days and

which

Commodity Prices

was
closed on May 14;
$1,506,000,000 through the sale
of Certificates of Indebtedness,
and
$343,000,000 through the

sale of Tax Savings notes
purchased in anticipation of fu¬

net

ture income tax assessments.

The

of the

cost

is

war

ex¬

pected to increase progressively
from the present rate of about

$3,500,000,000 a month to more
$5,000,000,000 a month by

than

the

end

1942.

ficials said
of

the

the

the

of

calendar

year

Nevertheless, Treasury of¬
that

financial

that

the

was

vast

proof

a

soundness

of the

patriotism

797,000,000

it

of

amount

could

be

and

country

$15,-

collected

without dislocating the national

for

coal, ferroeconomy or without any wide¬
manganese,
tires,
petroleum
spread public awareness of the
products, and a few other items.
total
amount
of
money
in¬
Wholesale prices of most
volved.
farm products and basic foods,
which are exempt from direct
In the table that follows is a
control, showed little change in summary for the first four and a
this period, following sharp in¬
half months of ther year of receipts
earlier in the year.
Bank Credit

increased

ties

by

about

expenditures, taken from of¬

ficial

$200,-

000,000, while currency in cir¬
culation rose by $260,000,000.

Treasury records:

Receipts--

(In millions)

General revenue:
Income

tax

$3,905

Miscellaneous

1,553

Other, excl. transf. to Federal
Old Age and Survivors Ins.
Trust

Fund

402

;

Member bank

deposits increased
during the period and required
reserves
showed a correspond¬

Net
Trust

a

The net result was
$300,000,000 in ex¬
reserves.
Holdings of

decline of

cess

United States securities at banks

leading cities increased fur¬

in

while commercial loans
Liquidation of loans

ther,

concentrated

at/banks

in

New York City and in the Kan¬

City district.

sas

S ta t

United

e s

bonds
of

of

U.

declined

April,

S.

rent

from

Treasury
about

Certifs.

bill

the

issues

rose

in March to

in May.
The Federal
Market Committee an¬
nounced on April 30 that Fed¬
eral Reserve Banks stood ready
to purchase all Treasury bills

727

issues:

of

Indebtedness

1,506

bonds

4,208

Treasury notes (tax series) —
United States savings bonds.;

3,117

343

26

——_•

Total

public

Total

in

402
347
—12

receipts, cash (net):

Treasury

gen.,

Government

on cur¬

Fund

Fund
—

Marketable

Government

in the last half

0.20%

Trust

Trust

...

debt

Other

but steadied
May. Rates

first half of

(net i:

.Total trust fund receiptsPublic

.Security Prices
Prices

etc.

Age and Survivors

Insurance

Other

$5,860

—

Receipts,

Old

Unemploy.

declined.
was

receipts

Fund

Federal

ing growth.

,

.

comparable period of
the
Treasury's
an¬

a

says

coal and forest

Iron & Steel Institute announced.

to;

in

15.
This rate, of course, is not
expected to be maintained dur¬

3,t

The

a

freight car loadings in¬
sharply in April owing
chiefly to larger shipments of

'May 20, Federal Reserve Bank
holdings of Government securi¬

was

output for the country in the

ceding

the year

dis*

energy

,

during the period, which indi¬
cated the widespread popularity
of this class of security, particu¬
larly in the light of the limit
on maximum
purchases permit¬

and

12.0% higher
stability.
The Federal Reserve
than in the corresponding week
Board index of industrial produc¬
clear on
numerous
points, and
last year.
•„
;
•• J
tion as a result may go well above
promised interpretations and sup¬
Loading of revenue freight for the 175% (of the 1935-1939 aver¬
plementary rulings from Wash¬
the week ended May 16, totaled age), informed sources state. /
ington still are being awaited.
•1
The index advanced to 174 dur¬
Business failures continue at a 839,052 cars, according to reports
filed by the railroads with the
low level. The number of failures
ing April, after remaining at 172
Association
of i American
Rail¬
1 reported
during March and February. The
by Dun & Bradstreet,
roads. This was a decrease of 201
acceleration
in arms
production
Inc., in March was 13% lower
cars from the preceding week this
was such as to offset declines due
than in the same month last year.

lations

over

creased

.

chanical problems

amounting oil the aver¬

age to about 20%

creases

356,921,000 kilowatt hours, comr
Estimated output for the cur¬
:
transportation in any great num¬ pared with 3,365,208,000 kilowatt rent week compares with 1,685,hours produced in the preceding 000 tons last
bers.
week, when opera¬
week.
The output for the week tions werer at
99.2%/
with1,4
;
Declining retail trade is not the
represented a drop of 3/10ths of 591,300 tons in the like 1941 week.
only thing merchants have to
1%, but was 11.5% higher than
; Industrial activity is expected
worry about these days. The me¬
have

around

ril-ttme. peak output established
two
weeks
ago,
the American

the

ected

time,

were

During the five weeks ending

week

16,

by the industry

and

800 net tons of ingots, with 99.6 %
of facilities in
use, equaling the

released by the Edison Elect

ures

decrease

temporary controls. Upward ad¬
justments in maximum prices

in

crease

ures, and an even greater increase
in
the
number
of
liquidations,

during the period ahead, informed

further

a

-construction, practically all pub¬
licly financed.

building increased slightly,
mainly because of a 40% in¬

especially

large section of the public

a

Is well supplied with merchandise

of

margins

seasonal

factory

tial

volume ! of " merchandise year, and since then its trend has
moving across store shelves is been slightly upward. But the un¬
considerably under that of a year favorable effects of the war upon
ago.

usual

April to the middle of
May/ Most of these covered
wholesale prices of items previ¬
ously subject to informal, or

actual

the vblume of business'Smd

making

average,

for

variations, but were 5% above
the level prevailing during the
latter part of 1941.
During the
first half of May sales showed

a

foods, paper products,
and tobacco products has been

;

The trend of commercial failf1 parative 1941 period, they, now
ures has been downward for some
are showing gains of around 5%,
a
condition which has prevailed time past, and credit policies in
for nearly six weeks. It is pointr many lines
have reflected this
ed out that with retail prices up condition. Dun's, insolvency index
declined to a low point late last
.about 18%, this means that the

of

in output.
Output of furniture,
cotton and rayon textiles, manu¬

the

.

month

crude petroleum and petroleum

are not in good
condition, such liquida¬
will be accompanied by in¬

tion

quarter

allowance

crease

been

$15,797,000,000,

amount
of anticipa¬ nouncement, which further stated:
buying during the first
Contributing largely to the
quarter of this year.
At de¬
heavy influx was the voluntary
partment stores, dollar sales in
purchase
of
$3,117,000,000
of
War Savings Bond and Stamps
April were about 10% below the.

the

or

In

financial

solvencies.

some¬

by shortages of ma¬
transportation' facili1

or

ties.

Where they

army.

declined

lots, which had begun to
March, were reduced
sharply further in April, reflect¬
ing Government action to in¬

has

sharply reduced either by direct

high wages paid 7 in- defense

industries.

products

terial

keepers will feel the attraction of

year ago.

such

.

and

troleum

.

a

use

as
automobiles,
tubes, wool textiles,
electrical appliances, alcoholic
^beverages, petroleum, and pe¬

Following the posting of price tailment in the volume of sales in
ceilings there was a noticeable many lined resulting from exist¬
drop in the rush of consumers to ing production and priority re¬
stock up on goods, and for the strictions and the narrowing of
first time this year, Dun & Brad- profit margins under price-ceil¬
street reported that retail sales ings will bring
about a drastic
failed to
maintain
an
increase change in the .situation confront¬
over
1941.
Wholesale trade, in ing numerous retailers. Observers
low

ian

tires

continued to. automotive field,how ever, brought
expand in the first half of May, about the reduction noted.
the Board reported.
j
It is pointed out that the cur¬

dollars, also averaged slightly be¬

con¬

sales

to

sum, Treasury officials said, far
"n excess of any amount ever col-

period.

Activity

average.

and

tric

a bit, but continued to reflect the increased
production effort.
There was a slackening
fn retail demand for goods.
The Federal Reserve's indexf of indus¬
trial production in April set a^
new high of 174% of the 1935-39
cies in retail trade, outside the

with

tory

tial increases in output of elec¬

off

were

acceleration of the

chemicals,

$15,000,000,000
since the be¬

siderable

creases

'

freight loadings

marked

There

industries, steel operations hitting an all-time high during the week
of May 16.However, electric power production was off slightly, and

compared

last year.

Distribution
Retail

tinued to expand at a rapid rate.
have also been substan¬

high rate of operations in the heavy

reflected the

news

individual
In general output of

been

among

.armament of all kinds has

"

Statistical

have

differences
industries.

total,

what in April, following./a con¬

first

civilian output.

creased

year

1935-39

have

people

than

amounted

the

about 40%

Boards

This increase followed

production

;

of

American
more

of

reflected

was

in

174%

of the year,

■

Vol.. 1926/IV.

April

period

a

bility

.

"Wertbestaendige Anleihen" by E. Wolfgang", in: Wirtschaftskurve der Frank¬

Zeitung, Frankfurt/M.,

to

average.

can,

1.

in

advance

an

''172%

No

the inflation psychosis.

,

pro¬

seasonally adjusted index from

however, deny the fact that they played a very
important part during a serious monetary crisis.

one

1

-

Expansion of industrial

V

The

poured

into their Treasury

this period made up over 70%

continued.^-

summary

Production

*

At $15 Billion Record

ginning of the calendar year, the
Department's ledgers showed on
May 20. From Jan. 1 to May 15
Government receipts from taxes,
borrowings and all other sources

an

The Board's

in them nothing more

see

~

reflecting continued advances in

armament production.
increase in buying during the first quarter, retail trade
declined somewhat.
Wholesale commodity prices, advanced further.

Following

minimizethesigmfir

writers tried to

some

of these loans and would

cance

'

.*

:

May 23, in its monthly summary of general business and financial

on

new

bonds.

Treasury Receipts

Activity Increased Further In April

.

the 'is-;
commodity loans stopped, Some debtors ofr
fered a premature redemption of the whole issue or a con¬
version into a currency loan with a gold clause.The in¬
vestors' interest Was no longer centering on fixed value
of

Board; Reports Industrial

The Board of Governors of the Federal Reserve
System reported

With the definite stabilization of the currency;

sue

2035

debt

.

debt

receipts

$9,200

trust and public
receipts
$15,797

Expenditures—

.L-.-/.

GeneralWar

activities

Governmental

credit

Total

$2,142
12,192

—,

corporations

agencies

(net)

and
—

expenditures

1,193
$15,527

0.36%

Open

offered at 0.375%,

Excess of recpts. over expends.

General

Fund

$270

Balance—

Dec.

31,

1941

May

15,

1942——

Net

increase

_

$3,? 60

3,830
/■''

270

\

r v

(Continued From First Page)

that purpose. \

*

,

--1

_

work.
Of course, intolerance and the
Another fallacy, also grown popular of late years, is
technique are undoubtedly heavy burdens for democracy
found in the contention that we can put business in
to carry for they becloud issues and render it difficult, if
shackles and in addition hedge it about with all- manner
not impossible, to fix public attention upon the real ques¬
of obstacles which in practical effect amount to shackles,
tions of the day.

»

and

A More

Fundamental Question

way

;

Partial Freedom

"smear"

must

-

*•' v.

i >^ v

income.,: This is another
; saying
that restrictive
concepts of finance
or
trade

tional

the nature of the rcase guarantee us all those. other ..liberr
ties which are ^ssidntial unless both are effectively used for

THE FINANCIAL SITUATION
.

Thursday, May 28, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

2036

the

at

time

same

maintain

The truth of the matter is that a very

a more fundamental question say the major and most vital part, of an individual's ex¬
people have for a decade shown istence is composed of what is termed business activity.
but little disposition to come to grips.
That subject is at If he must pay homage to racketeering labor unions in
bottom the relationship
between liberty and economic order to obtain employment; if he must comply with so
welfare. / Unless and until we get our thinking straight¬ many regulations and restrictions that he can not longer
ened out on this subject and keep it so, freedom neither earn his daily bread in the conduct of his usual business;
1 of speech nor of the press will save us from much hard¬ if, as in the case of the farmer, he is paid to refrain from
ship which we need not endure.
Freedom to say what we using his own judgment and penalized for using it; if he
think or to publish what we think, if we persist in think- is to be crushed by Government competition at the tax¬
ing things which are not true, in failing really to think payers' expense; if taxation'is so arranged that he can re¬
at all, or in permitting
clever, smooth politicians and tain but a pittance of his earnings no matter how hard or
others to tell us what we should think, will not suffice. how skillfully he works; if for any of these reasons he is
Something of this sort has been the source of most of our obliged presently to become virtually a ward of the politi¬
difficulties for the past decade—despite possibly well cians—then he is no longer a free man and the general
level of economic welfare will severely suffer no matter how.
grounded suspicion that there were and are leaders in
free he is to complain and criticize.
public life who would like very well to suppress free dis¬
It is, of course, of the utmost importance that we re¬
cussion—and something of this sort probably holds much
fuse to surrender the tools with which we can keep our¬
more danger for the future than attacks upon free speech
and a free press.
It is more than doubtful that the Ameri¬ selves free, but even more important is it that we insist
can
people will long suffer much infringement of their upon the essence of freedom itself—important not only
for freedom's sake but that we may continue to build a
right to say what they want to say, or great abridgement

But behind all this lies

-

These rights are too highly progressively more comfortable existence for ourselves as
the years and the decades pass.

prized, and have been for too long a time.
Freedoms

countries, or one
countries are a thing
of the past.
Certain localities,
of course, have certain natural
advantages, certain populations
have certain specialized skills,
but the people of all countries
are entitled to the benefits of
One crop

4.

X industry

with which the American

bf the freedom of the press.

which stand in the way of full
development will be brushed
aside.

traditional liberty.
large part, not to

our

of

Misused

5.

*

*

*

greatest danger is from those who make

of the rights of free speech (including
the radio) and of a free press to build air castles into which
all too many of us are enticed.
It may well be that the
war, particularly industrial achievements during the con¬
flict, will seriously enhance that danger.
There is already
considerable evidence of it.
How often do we read or
hear statements by men of influence that after the ex¬
periences of this war, we shall never permit this or that
to happen in this country — wide-spread unemployment,
unequal division of income, high prices, and a dozen other
such things-^and it is usually obvious that the speaker or
and

plausible

writer

means

Pan-Americanism Will Establish Pattern For

clever

use

to

say

that such unfortunate circumstances

be prevented from arising
something very like it.

ydll

by Government fiat, or

Economic Welfare and

Future

will

implement

will

be

Liberty

nature in eternal conflict.
It will be recalled
that in 1932 Mr. Hoover, then a candidate for re-election

,

very

often criticized by the thoughtless
for talking about liberty when millions of people were
crying for bread. He may have committed an error in
political tactics, but it is a fact that he who surrenders his
liberty for bread will not long have either. But the fas¬
cists, the communists and the New Deal prophets have for
10 years been preaching a different doctrine.
According
to them, the more abundant life can best be achieved by
a surrender by the people of at least a part of their tra¬
ditional economic liberty—if indeed it can be achieved .in
any other way.
They, of course, have not always said
so in so many words, but that at bottom has been the gist
of much of their doctrine.
It has without question made
to

a

the Presidency, was

deep impression upon many minds in
War Achievement and

future," he said, that "for
a better term, and I don't

of the

want of

canism."
not

It

was

press

can

an

age

of despo¬

revivals, or shall I say
to remain alive were

considered

where

oratory,
the

about

for

conferences

with little in

men

talked

occasions

mere

flowery

common

glories

of

the

past, or mouthed sonorous phrases
about
an
Utopian future."
He

in

picture

which

ples

.VI do not believe that the
be

believe

of Pan Americanism

attributed

to

the

far-

that

many

individuals,

in all the nations of this Hem¬

isphere, during the past decade
have found in Pan Americanism

something which offered them
the

ideological sanctuary which
they were seeking.
They found far more than

of general princi¬
will determine the
foreign trade.

in

enumerated

he

part, as follows:
1.

and

a

master

master nation, or a mas¬
within a nation is un¬
That is what this war

race, a

nations.

minded

similar

This does not mean

regimenta¬

tion, it does not mean that in¬
dividual
initiative
and
the

profit motive will be discour¬
aged, but it does mean that the
avenues for these activities will
be

clearly defined. * * *
that no private

more

It

does

mean

international

of

group

ter class

tenable.

is about, that is what we are
fighting
against.
Translating
this into what we are fighting
for it means the Good Neighbor

system of interna¬
tional organization and under¬
standing under which agree¬
ments on foreign trade will be

indus¬

financiers, no mat¬
ter how strong, will be able to
take
action
which
is funda¬

trialists

or

opposed

mentally

the

to

na¬

tional interest of any one coun¬

try

nations

established

have

and

interests

mon

of

group

any

or

which

com¬

common

principles.
the

While

6.

temporary

cheapness of some particular
commodity, especially a com¬

nation does not

a

produce may recommend

other fac¬

be scrutinized before

tors will

arrangements will be made for
its purchase.
7.

about money,
relationships, the fu¬
gold, international in¬
vestment
policy, and all the
many other intricacies of inter¬
national finance, is world wide.
Curiosity

currency

of

ture

I

curiosity

word

the

use

pur¬

have encountered
nothing definite enough to re¬
port it to you as an idea. Ob¬
viously, the extent of the curi¬
osity, and I am sure that you
will agree that it is extensive,
indicates that change is immi¬
nent, and that new financial
concepts
which will fit and

posely

serve

I

as

produc¬

economies of full

tion and maximum national in¬

in

making.

the

Fi¬

come

are

nance

will not be laggard when

That

arrives.

decision

of

time

the

is

not

yet—finance
must serve in war, it is doing
so
and doing so
eagerly and
time

well.

by

Domination

gov¬

with the
governments of other friendly

When

and recon¬
finance will
prove that it too does not fear
the future, that it can meet the
problems of conversion and full
production in peace just as it is
meeting the problems of con¬
version and full production for

struction

peace

come,

victory.

Policy—a

reached not merely because one

is

strong

and

nation, is

weak.

To

nation

will

be

sure
tangible reasons

agreement

for

another

be

FDR Sees

Long War
Urges loderalion

And

President Roosevelt

on

May 22

will be

war

a

the long one and warned the public
represented by against being over-optimistic one
but

not

tangible reasons
a club or a division of tanks.

private groups the

turn over

exploita¬

the
exclusive development of vital
national
functions
such
as
transportation and communica¬
tion, either will not be granted
at all or will be so administered
that the public interest is fully
protected at all times. If such
concessions are granted to for¬
eign groups, further safeguards
will be imposed which will in¬
sure that most of the profits of
such enterprises will be avail¬
tion of natural resources or

'over-pessimistic

and

week

/

next

Concessions which
to

the

that

declared

on

events.

basis

the

of

the

single war

Reiterating his full con¬
the United

fidence in victory for

Nations, the President told his
press conference that public opin¬
and down from week
to week with news reports of war

ion goes up

activities

and

that

the American

people have a tendency to over¬
state the effect of these minor

practical frame-work on which
their
conception
of
modern

He said the press
helpful in not over¬
playing these war developments.
In reply to a question whether
censorship should pass some bad
news
in order to restrain public
able for further development of optimism, the President said that
the economic life of the nation this should be done as soon as it

civilization could be built.

which

sanctuary,
and

they

like-minded

men

who

fice brief

were

found
men

ideals

and

wo¬

willing to sacri¬

personal advantage in
the ideals into a

order to forge

y

ideas,

there

sighted statesmanship of any
individual, or to the organized
effort of any nation. But I do

conflicting with or antagonistic to liberty, is rather de¬
pendent upon it, just so long will our post-war liberty be
in danger.
Those leaders who really would protect our
liberty would, therefore, do well not only to see to it that
freedom of speech and of the press is scrupulously safe¬




in

born

resurgence

speech and a free press (including the radio) are employed

clear

new

a

struggles

will more or less certainly be used
mind again to preach the economic "ad¬

Neither free speech nor a free

is

history

occasional

vantages," hot to say the "necessity," of continued abridge¬
ment of liberty of action in the business world.
So long as
the American people have not a clear understanding and a
full realization of the fact that economic welfare, far from

liberty.

Americanism

tism, it was born in battle. For
years it was scoffed at, and its

tain when peace comes

is

"Pan

idea," he stated, "but
has been marked by
disappointments and by failures.

its

Liberty

effectively in making it clear to the unthinking that one
of the essentials of full and continuing economic welfare

just referred there are likewise
appearing, and with equal vigor,
certain ideas which offer a pretty

character of future

a

guarded during the war but also to make sure that free

basic

on

that at "in addition to the
concepts to which I have

These

regimented industry in supporting this
effort, and the conditions which of necessity must ob¬

by those of such a

say

desirable, we can say that
the pattern is that of Pan Ameri¬

sary or

went

Under-Secretary

The
to

know that a better term is neces¬

further remarked:

this country.

to be inherent.

foreign

future

tern, there has been brought into
being the inspiration for our world

can

war

of

character

trade," and in expressing the be¬
lief "that here in this Hemisphere,
almost without
our
knowing it,
there has been created the pat¬

.

The record of

May 18, during

Foreign Trade

the

that our post-war liberty, par¬
ticularly our economic liberty, stands in no greater danger
than that arising from the persistent fallacy that broad
economic welfare and economic liberty are somehow by

'

on

by

it for attention, many

Week, Wayne Chatfield-Taylor, Under Secretary of
Commerce, commenting on the discussions observed that "you for¬
eign traders always have had much to discuss, you have talked of
the past, you have talked of the present, of course, but most of all,
you have talked of the future. Therefore, if I touch only briefly on
the past and present, and directs
which was
noticeable at Rio,
most of my comments to the pat¬
had if anything intensified. Pan
tern of the future, I believe that
Americanism is going places. At
I shall be carrying on a tradition
Rio the spirit of Pan America
which you yourselves have well
showed its full vitality, it dem¬
established."
The Under-Secre¬
onstrated the full promise which
tary's talk led up to the "general
its sponsors had long believed
principles which will determine

We hazard the guess

their

New York

policies

basic

administered

ernments in agreement

itself

Foreign Trade, Says GhatfielsS-Taylor

At the World Trade Luncheon in

controls which

The broad

modity which

The

and inven¬

science,

education,
tion.

On

a

recent visit to Mexico,

I found that the

unity of pur¬

and the belief in the des¬
tiny of. pan American ideas
pose

.

3.

grants the concession.

A national economy or an

international economy must be
based

on

full

production,

full

/employment, and maximum na¬

engagements.
could

does

be

not

tions..
reason

is

that

news.

affect

military opera¬
added that the only

He

for withholding bad news

it
,

might
,

/..

cause
..

.

..

more

v.:...

bad

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4076

Volume 155

President Guts $185 Million From WPS,

Objective 0f Manpower Commission Is
c

War EM
President Roosevelt

Absorbing Many From Rolls

job of telling

He added:

Total

producing non-essentials.

has

new

of

,

•

brought us a
problem—the mobilization
whole

a

war

though

And

nation.

even

not have always

we may

:v the best answer* we can recog¬
nize the wrong one.
We can

stop the flagrant losses.

:

We

what labor

pirat¬
ing means.
We can recognize
the
impact of discriminatory
hiring practices in slowing down

•

can

see

Just

:

We

And

recognize

our

one

is to achieve maximum produc¬
tion.
Anything that stands in
the

ford and will not tolerate arti¬

to

ficial

immobilization

of

thusiastically. i

ers.

Discrimination

based

work¬
on

because

Sam

color must go—
of
somebody's

self-interest

or

ideals, but because discrimina-

Government
even

trial

will

make

not

men

unemployable by definition. A
with one eye is not disabled

man

for most jobs.

The

•

man

•

present, the War Man¬
Commission is meeting
every Wednesday afternoon as
a body reviewing the facts.
I
the

full

benefit

job is fact finding.
We know, for example, that
on
the
basis of present esti¬

production by Jan. 1 of 1943.
By the end of 1943, 7,500,000

will

shifts in

our

to
in

labor force.

of, civilian

Of the

industries.

who

are

not

down in

•

terms of the

ber

of

men

of such skills

num¬

set

now

and
in his remarks

Mr. Mc¬

serve

The

cause

most

Let

me

as

up

from

dozen

of

,

.

which will most speed victory.
Just

as

no

one

area,

the

ards. .Some industries have made
their

:

so

the skill of a ma¬




made

access

by

to
other
the con¬

roads, streets

whose

have

needs

accident

records

can

be

prose¬

National

Seltzer,

available

on

which require a

rolls and

In the circumstances, a reduc¬

War Industry

Loans
Show Large Volume

R.

B.

Hays, Vice-President and

of

appropriation of $280,000,000 to
the

Work Projects

Administra¬

Federal

the

of

tion

Works

Agency for the fiscal year 1943.
amount, together with an
estimated balance of $57,000,000

This

greatly to

administrative

including

efforts

ex¬

of the Work Projects Ad¬

penses

general

I recommend ad¬

appropriations of $2,767,000 to provide for the ad¬

ditional

ministrative

state

tion

of

the

office

and

expenses

accounting

application
siderably larger

a

unemploy¬

show¬

list of bottlenecks

the

fiscal

the

Canadian

for

ment

office

reported

that

as

a

now

gral

est

handled

one

-

it

•

part

of

as

an

inte¬

comprehensive

for social security and

public assistance.
I am now
giving attention to proposals for
revising and extending the So¬
cial Security Act, and expect to
make

recommendations

to

the

Congress for such legislation as
~

—

be considered

may" be

necessary

to

date

was

for

Copies of the guarantee agree¬
by a bank
other financing institution and
the
Army, Navy,
or
Maritime
Commission whereby the Federal

ment to be entered into
or

gives

agency

a
commitment to
the financing in¬
specified portion of a

from
a

loan made to finance a contractor
or

subcontractor doing war

tract

employment

to

$4,000.

forms of aid
cannot be ab¬

private

in

measures

employers

.7 will not bother with them.

been con¬
originally

in the process

were

who

those

must

workers, and that

consequence,

year

sorbed

border, from

hiring Canadian and British cit¬
izens of good qualifications. One
:: northern
New
York
employ¬

.

been

period beyond the
1943, the provision

of work and other

by unreasonable hiring

specifications, I could cite also
the Government red-tape which
has prevented plants on our side
of

Treasury

grand total of $282,767,000 for
1943.
For

my

has

than

had

stitution

the

of

the fiscal year

on

Cleveland

in

000. He indicated that the average

loan

purchase

units

able.

And

meeting

May 20, revealed that the Re¬
serve Bank since April 1 has re¬
on

Depart¬
ment for services in connection

my January message,
appropriated or recom-

created

speech

a

expected.
"There are
of negotiation
by banks in the Fourth Reserve
District five loans, each of which
of the 1942 relief appropriation,
is in excess
of $5,000,000," Mr.
will permit an average monthly
employment of about 400,000, Hays said, adding that the small¬

pub-

Since

as

in

Cleveland,

before the Ohio Bankers Associa¬

ceived 49 applications to aid in
causing
undue financing production of war ma¬
terials in the amount of $41,000,hardship, and I recommend an

works.

40

&

Co.

Trust

without

sible

ministration.

over

J.

tion of work relief is now pos¬

participation
in the
of airports, access
roads, sewer and water facil¬
ities, and other useful public

men

Bank, and Paul
American Security

Bank

unemployed

minimum of critical materials.

construction

i funds

Miss

Draeger,

Secretary of the Federal Reserve

the Work Projects Administra¬

through

r

elected to

dual

It has pro¬

war

were

Governors:

cuted by day labor of the resi¬

lie projects, and it has permitted
millions of persons to maintain

and

which

those

be

and its predecessor or¬
ganizations
were
created
to
meet a temporary relief and employment need for millions of
persons out of work during the
depression years. The program

defense

of

been

materially expanded by the de¬
fense and war efforts. The types

tion

the

E.

the Wash¬
ington Loan & Trust Co.; Jo¬
seph
R.
Fitzpatrick,
Second
National
Bank;
Robert
H.
Lacey, Columbia National Bank;
Herbert D. Dawson,
Jr., the
Washington Loan & Trust Co.;
Mrs. Myrtle P. Lewis, Liberty

Work

airports, and public works

ities

to clear such

usedon

been

following

Board

Leona

have been authorized for local¬

takes from two to three months

be

has

struction of

ple pfocess; pi setting' physical
standards as high as those of
our pre-war army< and classify-

not

the

of

rolls

appropriation
Federal agencies for

pieces of perfection by the sim¬

war

the

on

Provision

equip¬

shall

gadgets,

;

I need cite

the

of projects to be undertaken in
the relief program in 1943 will

tion has contributed

j

The

in

•

tin and chromium and

.plastics needed for
ment

Pittsburgh

practice of industry
after industry, and State after
State, when I point out the employment bottleneck of artifici¬
ally high physical health stand¬

but

reserves

or

urgent that
be fully util¬

ployment.

against.

tions.

principle vof the War
Manpower Commission is a simpie and I believe an accepted
one.
It proposes merely that
«every worker in America shall
! apply
his skill at that point

is

counsel.

Projects Administration be en¬
gaged in other productive em¬

—

The

It

Hulse,
chief

National Bank,

Hamilton

with the relief program, making

indication

direct

we are

cite

the 'plainest,

not to create it.

.

now

their self-respect through gain¬
ful employment.
More recently
the Work Projects Administra¬

our

Manpower Commission has been
set up to minimize dislocation,

.

The War

activities

war

work.

O.

Kenneth

and

tary,

persons

quired during the ensuing fiscal
year for continuing the work
relief program
by the Work
Projects Administration and indicated that a specific recommendatipn would be submitted

ing
A

half-cocked,

misinformed action.

:

Secretary; Thomas
Norris, Bank of C9mmerce &
Savings, Treasurer; 'Miss Mar¬
garet Allison, National Savings
& Trust Co., Assistant Secre¬

ized, and that productive labor

of

vided thousands of useful

ROOSEVELT.

J.

of circumstances,
obtain
employment

labor

our

budget message to the

has been successful.

cases

employ¬
ers
including
one
Federal
agency—are
maintaining arti¬
ficially high hiring specifica¬

or

.

are

triangulate

of victory will not

be served by hasty,

'

.

there
to

them

Nutt said:

•

;■

The United States Em¬

of

what

employable

in

other

tration

who make up the labor

issues.

some

available in the labor market.
Earlier

either

The Work Projects Adminis¬

problem. They are cases which
can be recognized for the bot¬
tlenecks
they are.
They are
cases which reveal problems and

skills in-

volved and in terms of the

men

Meanwhile

figures must be broken

These

These you will have to learn
a later date.
At present we

which

in the

now

labor market.

•

5

D.

House, May 25, 1942.

WashingtonJIB

reason

later in the year.

ployment Service is now calling
on
15,000 employers, and will
soon be calling on 30,000 to get
their needs 60, 90, arid 180 days
in advance, the better to plan
advance recruiting and deter¬
mine training needs.

and from other groups such as
women

are

from

must, in a large
be held to one of work

not

can

Congress of the United

January

or

tional Bank,

for

who, by

this
year,
I
estimated
tentatively
that $465,000,000 would be re-

.

We shall still need 3,000,000 new
workers from the unemployed

/

You

workers

direct

in

FRANKLIN
The White

program

relief

and

In my

of

measure,

follows:

Congress

move

possible elimination of the
Work Proj ects ' Administration.

next fiscal year

States:

•'

the

10,500,000 workers we need this
7,500,000 may be shifted
to war work through the con¬

version

possible

Jan. 15, page 226.

To the

the actions which you

market.

year,

1

not an enter¬

getting the facts.
The oc¬
cupational
questionnaire
will
give us new knowledge about

tremendous

mean

is

The text of the President's mes¬
sage

I

at

period, 4,-

men

This

production—
agricultural—for

are

same

will be added
the armed forces, 2,000,000
1942 and 2.500,000 in 1943.

'

umns

concerned

be

tion goal.

During this

relief

services in connection with the re¬

handle.

needed to meet the 1943 produc¬

500,000

'

with the detailed job of man¬
agement. You would like, I am
sure,
to know of forms and
regulations, the channels and
the authorities which you must

additional

will

or

;

.

It is

must take.

workers will be drawn into war

workers

work

priation of $2,767,000 for Treasury

I wish that I might set down

Our first

additional

?

and

war.

for you

10.500,000

orders

of

can

we

the

of the Work
Projects Administration for the

the President requested an appro¬

intervened and

issued

The

"without causing undue hardship."
In addition to the $280,000,000,

The goal is total

total

advice and counsel.

mates,

tion
■

prise which allows competition
between parts of the war effort
at the expense of another part.

their

of

en¬

'

,

will
which

to

toward the further reduction

production.

He also declared that the reduc¬

over

industrial

At

have

took

reaching it.

power

,

the

■

*

with
one leg can produce for victory
on
mpst jobs.
The man over
40 is not ready for the scrap
heap.
'

-

to make recom¬

plants, so com¬
lief program.
pulsion may from time to time
For the 1942 fiscal year there
be necessary in the administra¬
was $875,000,000 appropriated for
tion of the manpower program.
the WPA, with average employ¬
%
%
#
ment at 1,000,000 persons.
The President's January budget
We know our goal and the
answers
nuist
depend .upon message was given in these col¬

slowdown.

America

7

extent

by the Con¬
future on such
determine the

Elects Rowzee, Pres.

Work

also, just as in some cases
where speculative management

tion represents waste and indus¬

•

and

freely
■

proposals

near

available source will be
required, and possibly even or¬
ganized migration in some in¬
stances.
However, it is esti¬
The Washington Chapter of the
mated that at present there are
American
Institute
of
Banking,
still some 3,000,000 unemployed.
iias
elected George
M. Rowzee,
Of these, many will be hired
during the coming year; yet in Jr., of the Lincoln National Bank,
as
its President for the coming
a labor force exceeding
60,000,Mr. Rowzee was Second
000 persons there will remain a year.
Vice-President
during the past
substantial number of individu¬
als who will not be hired by year but because Kenneth Birgprivate employers because of feld, First Vice-President, has en¬
tered the armed forces, he suc¬
age, lack of skill, or other hand¬
ceeds to the Presidency.
This is
icaps.
A certain number may
learned
from
the
Washington
not be able to migrate from re¬
"Post" of May 16, which also said:
gions having surplus labor to
Other officers elected were:
regions
where
workers
are
•needed.
In this connection, I
George B. Earnshaw, National
can not emphasize too strongly
Metropolitan Bank, First Vicethe need for industry to aban¬
President;
B.
Bruce
Frantz,
American Security & Trust Co.,
don prevailing practices of dis¬
Second
Vice-President;
Miss
crimination, racial and other¬
Dorothy Werner, Hamilton Na¬
wise, in recruiting labor for war

integral part of comprehen¬
for social security
public assistance."
Saying

he expects

be taken

to

in the

gress

every

mendations to Congress for revis¬

But

•

not

Uncle

action

rapidly developing.
shortages the re¬

are

cruitment

possible elimination of the
Projects Administration."
In his message the President
how he can best put his shoul¬
also pointed out that there are
der to the wheel of victory.
still an estimated 3,000,000 unem¬
Just as most industries con¬
verted
themselves
in large ployed persons but said that many
of these will be hired during the
measure by voluntary action, so
American workers will switch coming year.

In war the Nation cannot af¬

or

volun¬ that

needs

To meet labor

measures

and

most of all to know where and

And it shall and must be broken.

creed,

who

persons

1943,

as an

sive

worker wants

Every American

of maximum produc¬
tion is not private business.
It
is a thing which stands in the
way of America's arms.
It is a
thing which impedes victory.
way

race,

material

ing and extending the Social Se¬
lieve, there are two answers, curity Act to provide alternative
and I think I know the temper means of
meeting the needs of
of American
democracy well those now on WPA, Mr. Roosevelt
enough to know there is no asserted that Congress action on
paradox in stating them both.
such
proposals "will determine
First of all, Americans want the extent to which we can move
the
facts
to
be
determined. toward the further reduction or

things.
job

these

know that

we

for

forms of aid "must be considered

be considered
To that, I be¬

draft of labor?

production.

relief

the President added,
the provision of work and other

Manpower Commission shall set
priorities on where and how a
man may use his skill.
Shall our procedure be

employable

year

tual determinations of the War

tary or shall it

work

For the period beyond the fiscal

by the market, so the fac¬

not

of

one

cannot obtain employment either
in war activities or in other work.

by the factual determinations of
the War Production Board, and

We can see the
loss occasioned by stiff-necked
adherance to seniority and other
personnel rules made to
fit
peace-time conditions.
war

those

the priorities for the
material are governed

as

of

use

be

the

being aided by the Work
Projects Administration.
The

to

must

our social-security
provide alternative

meeting

now

on

Congress, the President said that this amount, together with $57,000,000 unexpended from the 1942 relief appropriation, will permit an
and
average monthly employment of$
C■
v-'.v.'7'
unions can be relied on to keep<*>
about 400,000 persons.
most Americans matched to war
mended for the conduct of the
chinist or an engineer needed
The WPA program for the fiscal
in the production of war equip¬
war
have
jobs." "Our tasks," said Mr. Mc¬
tremendously
in¬
1943, Mr. Roosevelt said,
ment shall not
be wasted in year
creased.
Nutt, "is to break the bottle¬
Shortages of labor and
necks."

of

presented by the residual 'group

May 25 asked Congress for $280,000,000
Projects Administration program in the 1943
fiscal year, representing a reduction of $185,000,000 from the tenta¬
tive figure set in the January budget message.
In a special message

what job they may hold.

to

measures

to continue the Works

80 million American workers exactly
American management skill, the wisdom
experience of the worker, and the resources of American labor
national

:

'1

Discussing the objectives of the War Manpower Commission,
Paul V. McNutt, its Chairman, at the annual meeting on May 20 in
New York of the National Industrial Conference Board said, "Ours
no

protection of

r

means

To Break Bottie Necks, Declares Mull

is

2037'

work

distributed for the first time

at the bankers' meeting. ; The con¬

is

executed

by Federal Re¬

banks acting as

fiscal agents
protects
banks against loss on the portions
of the loan under the guarantee
agreement. In discussing features
serve

of

the

Government

and

the
agreement & Mr.
pointed out that in event
of

Hays
a

war

production contract is canceled, in
whole or in part, the borrower is
given a waiver of interest and a
suspension of maturity on a pro-

"extend the portionate amount of his loan.-

(2) Greater speed and flexi¬
bility in meeting the threat of
inflation;
^

-

(3) Greater assurance of col¬
lection for certain groups of

pointed out that the
suggestion for collection at the
source
of income tax had been
Secretary Morgenthau in
March 3. Before
the House Committee on May 20,

made by

his statement on

added:

Paul

Mr.

at

collection

If

were

source

at

1942,

1,

July

introduced

a

would be with¬
consumers during the

10% rate, there
held from

months

six

last

•

about

alone

a

of this year
billion and a

quarter dollars under the low¬
ered
exemptions
tentatively

adopted by the House Ways and
Means Committee. This is at an
annual rate of 2% billion dol¬
lars.
If the present system of
collection is retained, there will
be no increase in the amounts
collected from consumers until
As

the

to

Associated

working of the plan,
Press accounts from

Washington on May 21, said:
The deductions would be a
flat 10% of all wages, interest
or dividends over a scale of ex-

'■i

!

the

of

receipt
the

which

pay

Most

levied.

especially in the mid¬
income brackets,

dle and lower

emptions being written into the
hew income tax bill.

'

In the case -of a single person,
the check-off would be 10% of

r

his

week

.

in excess of $11 per
the tax bill now stands.

wages

vision for their tax liabilities by

building up reserves during the

as

$26

built

dependent of married

year

persons.

the March

When

ing

the

15 tax pay¬

tax return the

come

does

same

as

he

clines in income and

that has al¬

ligated

ready been paid for him by his

taxes

employer, and pay the differif any.
some
cases the tax might

/
1

smaller income. This

a

to

The

already paid, and refunds would
be provided for such cases.

ened if the tax

'

response

to questions, Mr.

posal

not
of

exempt any
employers.
If

many

the

from

wages

number

that

Paul

it

was

later.

or

how

mate

He

declined

to

Congress

long

to

proposals would add an es¬
timated
$2,756,000,000
to
the

v

•

•

.

now

collected,

emphasis
below $5,000.

heavy

comes
■

:

,■

of

introduction

The
tion

the

at

source

not only because

on

income tax,
>

would
more

is

;

■

indicates that the con¬

over
the plan has its
the following arguments:
X If the collections begin this

price ceilings in effect, they
could not afford to add extra

new

keeping.
3. If

a

■

contribute

at

$2,000 of net income.




the

income

tax

40%;

to

raised

•

a

and

non-resident

on

alien individuals to 36%.

iPrevious
tion

Committee

House

the tax bill

on

was

ac¬

noted in

these columns May 21# page 1949,

and

Facility Security Plan;
To Be Formulated

for war eased
against sa¬

- measures

would be increased to 50%.

3.

able

be

individual

the

at

fully

and

income

normal

water

serve

sored

normal

>

■

withholding

6. For corporations,

allowed

J as

the same
followed,

deduction

a

coor¬

operated by various Fed¬
have

to

since

role

the

the

worked

be

statement

principal

Secretary of

will have power over

White House

A

out.

pointed

War
the plan to

out

the

that

new

OCD program does not affect

the

investigative

Federal

with

Bureau

duties of the
Investigation

of

respect to acts of sabotage

and espionage.
i

Commenting

on

the

executive

order, Mr. Landis said:

practices would be
except that banks and insurance
company losses would not be j

,

or

continue

would
be allowed as an offset against
statutory
gains,
no
matter
whether long or short term.
5. Statutory
losses of either
kind could be carried forward
'«»■ for five years
against future
gains and $1,000 of such losses
:. could be offset against other inIcome each year for five years.
either long or short term,

...

the center for the

eral departments. • The Army will

amounts of loss,

4. Statutory

as

dination of protective plans spon¬

tax-

and surtax rates.

>

Under the order the OCD will

i

gains
would
considered as

Short-term
to

forests and mines, gas and
utilities, public buildings
and storage facilities.
ways,

of such gains
effective rate

50%

only

sys¬

tem, the airlines, highways, rail¬

But

I think

it should

be clearly

understood that at the outset

we

de¬

are undertaking a job of
veloping and supplementing ex¬

from

plus lowered personal
>
other income, but a five-year
isting
protective programs —
exemptions, might be too great.
forward period against ! rounding out the security meas¬
a
burden on the low-income U carry
future
gains would be per- ly ures already provided—and that

program,

>

groups.

:

-

-

4. A belief that the

authorities

might not be able to put a de¬
duction plan into actual opera¬
tion until late in the Fall, or
even

mitted.

,

the Army will continue to

7. For

losses

banks

Net capital
to sales or

—

attributable

have

j the principal role.

I would like to emphasize also~
of bonds or other ; that the owners and operators
indebtedness would { of essential facilities continue to
H be allowed in full against other I. be
primarily
responsible for
maintenance of a proper guard
income, with the capital loss

exchanges

evidences of

Jan. 1.

Braden Assumes Cuba Post 3 measured by the difference beagainst sabotage in any form.
tween purchase and sale price.
Our purpose is not to supSpruille Braden, U. S. Ambassa¬
Losses from other capital assets
dor to Cuba, presented his cre¬
plant any existing authority,
and all gains would be treated
dentials to President Fulgencio
j and we are determined not to
the same for banks as for other
Batista on May 19 at Havana. The
>

;

>

~

'

that

order

and $1,200 for husbands
and wives, a normal tax of 6%
instead
of
4,
and minimum
surtax rates starting at double
present level of 6% on the

'■

sales tax is approved by

the Committee, the

it would be a

effective fiscal instrument

porations

protective

taxable, the
would be 25%.

help to do the-necessary book¬ [.-

collec¬

but also because it

make

companies

fifteen program" designed
" '

than

more

continue

writing to members that,-with

<

essential

for the control of inflation.

•

in¬

persons

-

?

source.

year,
the taxpayers who ar¬
ranged to spread 1941 payments
would be hard hit by the 10%
reduction.
2. Business men have started

other

any

can

effects

the

first

the

survey

a

i

The program would be based
on
$500 exemptions for single

the

as

May

on

2. Maximum rate on statutory botage of the communications
net
long - term
capital gains

;

to Associated Press i
advices from Washington, May 25, !

in¬

succeeding

the

in

of

term

•

t

According

i

;

ous

The Committee's new income

with

action

consideration

permanent improvement in the

tax

ment

gains

capital

K months.

1

budget if his income falls off
or his expenses greatly increase.

it

chinery.

$5,000,000,000

further

at

have just as seri¬
on
the taxpayer's

debt and

enact

432.00

10% of income

pay

few large

a

burdensome

as

esti-

1,320

sion for deducting

This debt for his income tax is

would take
the legisla¬
tion, but said it would take 30
to 60 days after Congress fin¬
ishes the legislation before the
Treasury
could
set
up
the
necessary
administrative ma¬

■

in

Committee

20 also voted to increase the pres¬
ent 31%
tax on mutual invest¬

.

are

of

Furthermore, it is very much
the taxpayer's advantage to
a
substantial part of his
tax liability liquidated while he
is receiving his income.
Under
the present system he ends each
year in debt to the Government.

though approved by Con¬
gress, for two or three months

108.00

216.00

since

have

even

•

660

:

to

indicated, however,
unlikely that the

36.00

110

330 5'!

r

pro¬

large

a

The House

;

simplified to short term of less
fense, headed by James M. Landis,
than fifteen months and long
to formulate a "facility security

¥■

question of incorporating
in the forthcoming tax bill provir

* * *

year.

plan would be put into effect,

18.00

the

on

installments

small

of

stallments

Farmers and other employers
exempted from making similar
deductions for Social Security
also would be required to participate in the new plan.
Mr.

tax

to

directed the Office of Civilian De¬

17.00

.

55

-

On May 25 -the House Ways and
Committee voted to defer

light¬

to

taxpayer
currently in

rather than

domestic servants.

52
:

roots in

the

$750

President Roosevelt, in an ex¬
cording to the Associated Press.
ecutive order issued on May 20,
;
1. Holding periods would be

troversy

his

of

$8.50

$11
22
23
46
138
276
552

depen¬

Means

accomplisihng this objective, of

housewives to deduct small tax
amounts

for
single persons
$500, for married
persons from $1,500 to $1,200 and
leaving
unchanged the present
$400 credit for dependents.

from

and losses amendment follow, ac¬

dent

$26

—

Quarterly
Semi-annually

enabling

adopted in this form, the plan
would
require,
for
instance,

family

Bi-weekly
Semi-monthly.__

taxpayer

method

family)

Period—

prevailing ,15%

the

rates to 25%.

tatively; approved

Each

or'

head of

Payroll

taken from

source

convenient

a

person

head of

Weekly

week

Collection at the

it.

would

exemptions

Principal provisions of the ten¬
Married /

■;

by week or
month by month as he receives
vides

classification

were

20%

H:

person

for

considerably

income

Paul said that the Treasury pro¬

<

be

credit of 10% and lowering

come

exemption

from

dependent, by pay¬

.1 not

wartime

the

on

would

his

V/k.

year.

burden

married person or head

Single

r.\

Annually

yet be ob¬

heavy

pay

turn out to be less than he had

In

tax

its.

of

roll period:
:>

the high incomes of the

on

preceding

once,
In

•

source

-

likelihood

and each

family,

of

s':
4

Monthly

Many will suffer large de¬

war.

uring his tax, he would deduct
the amount of tax

at

where there would be an

of family),

bead

problem threatens to be par¬
ticularly acute at the end of the

However, after fig¬

now.

by

week

is less than the income of
taxable year and, accord¬

met out of

worker would make out an in¬

/

bit,

by

ingly, the tax liability must be

the

around

rolled

date

bit

up

week, or month by month.. Fur¬
thermore,
in numerous
cases
the
income
of
the
following

per

for each

,

taxes,
that is
with
the
wages in excess of $11 a come
changes
previously
ap¬
while for married persons other
weekly income
over
$26, plus proved. These include raising the
$8.50 for each dependent, would normal tax rate from 4% to 6%,
retaining the present earned in¬
come under the
plan.
affect

table prepared by the Division of for estate and gift taxes have not
obliged to pay the tax in,at most, Tax Research of the Treasury De¬ yet been voted.
four quarterly instalments, out
The House group on May 22
partment:
of the income of the following Amount of wage or salary to be exempt
agreed upon a revision of the
from collection at source, under personal
year. These instalments are in
capital gains and losses tax struc¬
exemptions
and
credit for.. dependents
many cases very hard to meet
ture and increased the maximum
tentatively adopted by House Ways and
because
they have not been
Means
Committee:
Single person ./(not effective rate on long-term gains

week income of mar¬
ried persons, or $26 plus $8.50

a

when the income is being
They
are
therefore

earned.

The check-off would start after
>

case

from $40,000 to the present 71%% and 82%%
$30,000 and to cut from $4,000 to rates on personal holding com¬
breaking down.
v
$3,000 the amount of a gift which panies to 75% and 85%, respec¬
Along with his statement Mr. could be made in any one year tively, and increased the 27%%
Paul
submitted
the -following without taxation.
The new rates rate on non-resident foreign cor¬

,

,

In the

15.

week,

information about the

increasing

make little if any advance pro¬

year

bill due on March It is estimated that the program
of single persons will raise $2,756,000,000 of addi¬
the collections at the source would tional revenue from individual in¬

the regular tax

gives

areas

20 the Ways and Means
approved a schedule

of individual income surtax rates

On May 26 the House Commit¬
compensation
but tee
agreed to fix the estate tax
the Government a
exemption at $60,000, such ex¬
large part of the tax, the part
emption to include life insurance.
it receives depending on how
Under the present law there is a
much of the tax is collected at
dual exemption of $40,000 for per¬
source.
With the income tax
sonal and real property and $40,extending more and more into
€00 for life insurance.
the masses of the population,
•." The group also voted on May
collection is thereby assured in
26 to reduce the cumulative gift
also

income on

the
is

tax

and

activities

5;i

-

On May

Committee

employee's

following

year

on

ernment

persons

individuals

stabil¬

prosperous year.

The collection

from the income

present,

—~————*——-—

by

ranging from 12% on the first
$2,000 of taxable income to 81%'
on all income over $200,000.
The
present surtax rates are from 6%
to
77%
and- the Treasury had
proposed rates of 12% to 86%.
The Committee voted against the
employers,
who
would
remit
them to the government at the Treasury proposal to increase sur¬
end of each quarter.
Those de¬ tax rates in $500 brackets, keep¬
ductions would be used to offset ing the graduated $2,000 brackets.

method not only gives the Gov¬

will find
very difficult to meet under the
present method of payment.
At

up. v:;

The plan,

unduly

!j!

The result is a tax burden

their tax in the

jtake the matter

the necessity of

more

many

will go pver the plan again before a final tax bill is completed, but
some members expressed the belief that the Committee may not again

hampered by
paying income
income received in a

not

are

economic

other

their

taxes

that

pro-

of, goods

purchases

their

above

come

the

with

taxes

ity if the taxpayers are out of
debt to the Government, so that

The rates are
rapidly
progressive,
as
they
must be, to raise in an equitable
way the amount of revenue that
needs to

- »■*.

«

economic

to

/contribute

Committee,

exemption.

tax.

'

-

income

Means, Committee on May 21, was
further consideration.
Chairman Doughton said that the Committee

as explained on May
Randolph Paul, Treasury
the income tax better adjusted
tax adviser, calls for deductions
to the needs of the economy at
of 10% of wages and salaries with
all times, and not only at times
an
allowance for
personal ex¬
like the present, when inflation
emption and credit for dependents,
threatens. In periods when in¬
and
10%
of bond interest and
comes
are
falling and unem^
dividends.
The funds would be
ployment is increasing, it will
withheld from workers salaries by

would
be increased by about 8,000,000,
making a total of about 28,000,- i
000 taxpayers in all. Under the
rates proposed by the Treasury,
the tax would begin at 16% on

persons,

March, 1943,

.

"

of

of

year

to collect income

House Ways and
deferred by that body on May 25 for

taxes

20

the number of taxpayers

the

a

even

on the Treasury's proposal for authority
at the source, which was placed before the

Action

f O

duction of the income will make

levels ten¬

the first dollar of income

or

simultaneously

r

tatively approved by the House

Means

months

Collection

approximately
payers are expected to pay a
tax on their 1942 incomes.
At

and

immediately \ instead

later.

levels,
20,000,000 tax¬

Ways

the

-

begin, al¬

can

many

present exemption

the lower exemption

taxpayers.
Mr. Paul

under

most

prepared statement to the
Committee, Mr. Paul said, in part:
At

rates

Defers Withholding Tax—
Capital Gains And Surtax Rales

Raises

increased

be

can

collections

the

increased

In his

the taxpayer;

taxes

come

and

-

burden on

(1) Lightening the

House Group

would

source

largely eliminate this lag.'; In¬

would be:

source

;•

at

Collection

of the proposal

statement in support

a

be done.

maye

for. the deduction at
the source—of 10% of wages, interest or dividends in the payment
of income taxes, Randolph E. Paul, Tax Adviser to Secretary of the
Treasury Morgenthau, told the House Ways and Means Committee
on May 20 that the advantages in the collection of incomes at the
In

inflationary^damage

the

tive,

Treasury Recommends Wage Deductions
For Collecting Income Taxes At The Source

Thursday, May 28, 1942

FINANCIAL CHRONICLE,

THE COMMERCIAL &

2038

increases
most

of

control

must

in

effectively

inflation,

In

taxes

to

they friendship

begin to withdraw income
Under present methods

once.

of payment,
come

not

affect

March

an

increase in in¬
now
will

enacted

taxes

tax

1943.

payments until
By the time the

higher collections become effec¬

existing

between

the

countries was stressed in the

two

exchange of remarks. Mr. Braden,
former Ambassador to Colombia,
was

transferred to the Cuban post

when George S.

named
eariy

Messersmith was

Ambassador

this year.

.

,

to

,i

Mexico

corporations.

f create

any

huge force of Fed-

j: eral employees, but, on the concompanies' j: trary, to work with and through
net
capital gains and losses | established agencies to the end
Ifrom assets purchased after the i that there can be no successful/
/ effective date of these changes
i attack on any part of the rewould be treated in the same
1 sources and utilities vital to the
:.i way as-capital gains and losses
8.

•

Life

„

insurance

'

x

of banks.

.

v- :

•

■

-

>

v

a

nation in winning this war.

:

Volume 155

-

2039

THE,COMMERCIAL & FINANCIAL CHRONICLE

Number 4076

all, the optimistic
n£? ^ Worst; of keep us from
£; stones-may
recog-j

Major Problem Of Industrial Conversion

nizing what

•

we

are

against

up

until 4qg late. Our biggest stock¬

lltif® To Meet War Needs Still Lies Ahead

Employment Held Principal Problem Of
•
1
Post War Period Of Readjustment
^

s-pile af. rubber is on our cars;

that "the observance of National Foreign
Day may seem to some thoughtless
supererogation, seeing that trade and shipping are
f fordack of tires put more bur:in
now so completely subordinate to our military needs," James A. Farden ; on> already
Board report finds
overcrowded
The Board under date of May 20 adds.that by the end of March ^ buses and trolleys.'
? •»-• - •
; rell, Honorary Chairman of the New York Foreign Trade Week
Committee, said that "nevertheless, we should not lightly assume
.the total of all completed war production .amounted to only $18,-;
Every citizen can and must
that the observance of National^1
—700,000,000, or less than 15% of
,v; ,
; adopt a five-point conservation
a
world of increased produc¬
Foreign Trade Week and Mari¬
;,the total existing war production
program;
•
j time
tivity and consumer demand.
'
Day has no message for the
load.
War commitments, it states,
1, Stop.,driving your car ex-, nation."
The world of free nations is
Mr. Farrell, who spoke
.were further increased
by $19,rapidly moving forward to a
;^cept^Jwh^ni': necessary; makew it at the World Trade Luncheon, at
000,000,000 in April, while the
fuller realization of the advan¬
;'j last;.
,.:,;.
the Hotel Astor in New York dur¬
total amount of production com¬
i.L Drive under 40 miles i an ing the New York Foreign Trade
Four, leading war agency-offi-H
tages of closer cooperation, after
pleted in April as measured by
cials on May 22 joined in a state-j
a
period distinguished by fail¬
Week,- added that "our industries
•payments on contracts was about
ure of so many countries to ful¬
nient designed to.elarify'the ^ctsj
/3y; Shifts tires from wheel to have been converted to the pro¬
.$2,500,000,000. At the end of No¬
about the severe rubber shortage,
fill
their
hopes
of
self-suf¬
duction of the implements of war.;
wheel'and

the remaining months
than the changes.introduced'
industry from Pearl Harbor to date, a forthcoming Conference
problem that lies ahead in

The conversion

of this year

Stating on May 18

i these

tires must be preserved,
Autos shelved for the duration

f'

Trade

Week

minds

is as great, if not greater,

a

and

of Maritime

work of

a

Officials Warn Of

Acuta Robber

i

.

,

,

Shortage

•

...

v'

vember

load

tion

of the total produc¬

lb%

had

off,

worked

been

In

January,
the corresponding
figure was 16% and in March,
14%.

The Board

I
"Since January
•total
amount
of
other

also

according to

of this year the

load.

Even

at

a

1

>■

has

statement

points; ; out

-

.

that

to the contrary notwithstanding, and that no: rubber of
any kind can be spared for purrj
poses not directly connected ^with
■■

;

v

-

2

.

Donald M, Nelson, Chairmanof
production rate of $6,000,000,the. War Production Hoard; Arthutf
000 monthly, unfilled orders rep¬
B.- Newhall, Rubber Coordinator;
resent
a
full year's production
Joseph B. Eastman, Director of
load."

^

•

.

Vl.}

•.

By the year's end, the survey of
War

"America's

Effort," by the
«National; Industrial
Conference
'r Board
estimates that the nation
will have

and 4,200,000 armed fighters,

ers
or

17,500,000 worker fight¬

fighter worker ratio of 1 to
War will have reduced civil-

a

.*4.2.

tlon, and Leon Henderson, Ad-j
rriinistrator of the Office of Price
Administration and Director of
the
WPB Division
of Civilian

.

iWar

least

at

mine

workers, almost
of all construction workers,

90%

and fully

50% of all persons em-

ployed in transportation and publie
utilities.
Other findings of

,
•

■

will require

work

half of all

v

; the Board include:
:
(1) Tp^ reach the goal of
500,000 war workers by the

About a mil¬

civilian industries.

recruited from the
unemployed.
After tapping all
these sources,
management will
still face the problem of train¬
lion

r

be

may

2,000,000. to

from

ing
•

workers

new

needed

in

non-essential

for

.

the

sorbed

•

year

1942

•

and

•

census

family.

.

■;

;

is

world

a

*

show three facts:

.

;

to

5

end

of

March

'

\

'!

*

,

make

rubf

tires for

new

7.000

$2,300,000,000/

,




a

cost of
;
;

all
'

war' effort.

If the time should

when the Government had
to; call on civilians to sacrifice

co.me
;

their tires, we know

they would
the

c

Production

the

of

Board

the

;

tablish

new

the

duce

Justice Dept.

.

.

"

and

new

Special

-

and next injanything
but the most essentiak uses.,
i
'i

v

is

for

rubber

far

worse

rubber] shortage

than most people

to realize; the enemy coni-

trols 90% of the world's

producing
ounce
::

V At a press

20,

Mr.

conference

of

.

our

desperately
forces.

for

r

the
:

enemies

military

area

mass

May
was

evacuation of

from

the

Eastern

recently designated

rubberjr. by the' Army and declared that

and

every
stockpile is needed

areas,:;

alien

on

•

armed

the

problem

and Japanese,

of 'German,

Italian

nationals should be

handled individually.

of the principal bur¬

one

resulting from it, while
relieving the renter or the mort¬
gagor of his obligations.
Not
many suggestions made in the
past ten years, it would appear,

flagrantly violate the sacred-

so

of

ness

practice.

a

mutual contract.

Automobile,
dealers

erator

within the scope

legislation;
conceivably
hard¬
shoe and all sorts of deal¬
ers might be
embraced by the
law later.
It is entirely con¬
ware,

.

possible of re¬

planning..
C The

view

long

a.

for

'

..;-.•

;•'.

tutions

In

aid¬

should

not

be beyond^he

of

power

where these are

in

his

insti¬
them

communication,

Mr.

for the
law but that it
ought to be opposed in his opin¬

bill

statesmanship to
'discover means for the raising
•; of
the standards of living and
buying

on

what the possibilities were

duction.
It

loans

We Champ declared he did not know

volving mechanical adjustments
everywhere to peacetime pro¬

resources

owned by

the

law.

reconstruction,-in¬

ing in world

mortga¬

They,
in turn, represent millions of
policyholders who will naturally
:
be. adversely affected by the

.

cannot doubt the enormous pos-

sibilities that lie ahead, in

or

right to ask
Many of these
a

held by institutions.

are

problem that con¬
fronts the post-war world is that
of employment.
To the solution
of
this intricate
problem all

s

has

large part of our

are

or

war

successful

a

renters

this relief.

properties

chief

planning must be directed.

to

might have

gors

business

of

a

commercial

level of

It is the average

brought

conclusion,

fhe. business

of

-

and refrig¬
are
obviously
of the proposed

tire

been

ing

;

Unit,

Biddle said that he

opposed to the

Actually, the

seem
,

no

as

has

war

dens

activity: that fortifies
the individual judgment in tak-

Solici¬

Policy

sume

business

Property

War

far

Because

owner.

brought rationing, it is proposed
to make the property owner as¬

ceivable that before the

man.

Control
Unit,
handles litigation for the
Property * Custodian, and
Alien

as

requirements

will. be. the. Alieh Enemy

the

erty

should

pression. Neither the mountain
tops, of prosperity, nor the deep'
valleys of depression meet the

sec¬

division

we

curring cycles of boom and de¬

It. will be temporarily di¬
In the

that

steady rate

ination

special war.

Fahy,

principal payments.
Thus his
obligation is shifted to the prop¬

international trade, by the elim¬

divisions, such as

Charles

ating expenses—his rent or, if
his property is mortgaged, .his

is that of a more uniform
of progress in.

years

under which

rected ; by

the principal items in his-oper¬

disorder

chaotic

in -effect, says that

affected has the right
to. seek to be relieved of one of

before

completion

following

anyone so

goal toward which we
advancing
in. pre-war

were

the "Anti-Trust and Criminal
tions.,

to

be translated into

The

UvsS. Attorney General Biddle
on May 20 that there
has: beenr established in the De¬

other

The bill,

nations, the task of
wise solution of all

spared

can

announced

as

(H. R. 6760, sponsored
Representative
Patman > of
Texas) provides that anyone

are repugnant to free
Within pur ; own na¬
tion we must .reach an acqord
not only in respect to the gen¬
eral ' principles of the AngloAmerican
Agreement, but by
united action "agree upon the
form jn which • the Agreement:

War Division

status

The bill

by

peoples.

Sets Up

a

pro¬

America, declared on
May 23 in a statement to the or¬
ganization's members.

ideas that

es¬

,

if the

trade.

It is not enough

re¬

content in
•

,

serious that

sociation of

be'united in opposition to Nazi

es¬

specifications to

rubber

sential articles.

so

be termed a partial

even

law, Frederick P. Champ, Presi¬
dent of the Mortgage Bankers As¬

through lack of prudent fore¬
sight

War

for civilian articles, and to

seems

es¬

prop¬

posed Patman Bill should become

ends, if the world is to

war

be

curtail

to

might

real

their

to

confiscation of capital

a

hastened

drastically jhe rubber permitted

-•

it

the difficulties involved must be

fore, .for the Rubber and Rubber
Branch

threat

a

rehabilitation! Partially relieved under a mort-

for the

between

It has been necessary, thereProducts

face

erty which

nation take the

for

program

reaching

of rubber.

the

mates for this year
dicate

na¬

Real Estate Threat

Having gage or trust deed.
Mr. Champ had the
regard to the disparities in eco¬
to say:
nomic
development that exist

chine still eats up huge amounts

•

tate

in formulating a post¬

now

measures

reduce the rubber consumption
j of military articles, our war mar

a

we as a

of international

..

synthetic, rubber ;we charged with coordinating policy
get must go to the war effort. ,] matters relating to sedition,.: es¬
■
3. The most optimistic estir pionage, and sabotage.. 1
-

of

planning for

are

cal application of those accepted
whose
principal business
is' in
principles.
It is gratifying to
articles
or
commodities
coming
know that our Government, in
under the government's rationing
consultation
with other
plan¬
system, can institute legal pro¬
ning bodies, is intent at present
in translating the Anglo-Amerir ceedings to be fully relieved, of
|bis liabilities under a lease and
can
Agreement
into working

it .will be an advantage to
transportation and to the

ers,

In

proposals of other nations make
it extremely difficult to reach
a general accord on the practi¬

r

2. All the

covered more

projects at

cars,

in the hands of their own4

cars

orf. Unit,

'

than

passenger

ends."

war

giving effect
to the general principles agreed
upon
in the Anglo-American
pronouncement of Feb. 23 last,
we need not be surprised if the

on

of the nation
will be swamped. ' On the other
hand, if it is possible to preserve

tor-General:'

tioned to essential uses.

expansion for war production at
the

lead

the truck, bus, and train trans¬

dinary passenger cars; the tires which
do have must be strictly- ra^ Alien

'

;■

Unless

war

out the tires

• wear

million

is

part Mr. Farrell continued:

portation' -syste

we

public

$10,700,000,000 and covered 1.428
projects. Privately financed plant

"

1. We cannot spare any
ber

Authorizations

funds for industrial
plant expansion had reached $14,400,000.000 at the end of April, or
about 85% of all investment in
war plant.
By the end of March,
plant expansion contracts placed
by the Government amounted to

but 'the

War Production Board figures

being

added.

'

division

all

eco¬

further the aims

can

who

Owners of commercial

recovery

markets when the

to

-

■

partment of Justiee

despite

most necessary uses.

.

be

of military rubber.

eliminates

which

plant
and equipment totaled about $22,-

will

re-;

essential

all the De¬
precautionary
steps taken in 1941, it has be¬ partment's war activities will be
Mr. Biddle said the
come
necessary
to develop ,a coordinated.
new division will have the same
rationing program for * rubber

value of all manufacturing

from

new

a

..

on

to the United States as

source

Thus,

.

■

program

to look

! 500,000,000. Under the war program $16,700,000,000 of new war
plant and facilities have been or

•

j

Jan.; 6,.
This very greatly increased our
military requirements, for rub¬
ber.
Then, our major source?
of rubber supply were lost. 1. In
addition, our Allies were forced
military

expanded to
meet the new demands upon it.
In 1940 the estimated net book
the

.

'

-J-

Pearl Hart

announced

President

industrial .colossus of

(3) The

^

.

equivalent to a war cost of $1,163
per capita, or $4,475 for the aver¬
;

\

(

.

following

bor, however, created a wholly
new
series of problems.
The

third of the income

age

Events

.

gress
•

had
already beep
regulate civilian conT

to

sumption.

including

•

in

in
the Far East,

steps

taken

loans to Allies.
Con¬
has made available through
April, 1942, $156,000,000,000 for
waging this war—or from five to
six times the total cost of the last
war.
Commitments to date are

•

from

shipments

as well as replacements
2,200,000 men to be abby the armed forces this

$7,600,000,000 or roughly
received by
individuals during those months.
The war has already cost more
than the whole of World War I,
a

If; we
the' 30

it. ap¬

Harbor,

those

a

on

of the

Oppose Fatal Bill

our

which' is; so vital*
of Our oversea

trade,

the

to

of

mechanism

efficient

foreign

industrial, medical, and

health items.

dea|

piled, substantial tonnages
anticipation of interruption

in-

reached

-

certain

.

During the first quarter of
total
war
expenditures

(2)
•

articles

the civilian industrial economy;
such as bus and truck tires, and
"

peared that this country had ah
•adequate supply of rubber, in
the light of the situation as it
then
existed... We had stockr

next year.
•

do vM6i

are

In

Pearl

Before

and probably a like number

•

to

and

the

,

.

of

based

interdependence

tions alone

service, under con¬

! importance of preserving intact

'

dustries,

<

military

Policies

consciousness

nomic

of the Maritime Commission,

'

Stater

uses.

and

contrary" are mis-i I ,: fespbnd ; patriotically
meantime, no American should
leading;;and do the country, a
™ a—deliberately waste the mileage
"great* disservice, for the faCts
left in his tires.
as
we
see
them are grim, and
In ispite^ of the excellent job
we
need 100%
cooperation, in
the Army and Navy have done
conservation measures by the
in re-arranging specifications to
general public and by industry.

3,000,000
war

stricted

-

tires,

car

merits to the

17,-

end
of this year, approximately 10,500,000 additional workers must
be brought into war industries.
About 7,500,000 of these will come
from persons now employed in

•

senger

.

stories
about /thq
availability of synthetic rubber
at an early date, or the largq
amount of scrap rubber which
can be reprocessed.
..'J
But, there is little real basis
for such optimism.
Our rubber
shortage is one pf the worst
materials shorta ges we face. :Wq
can spare no rubber of any kind

war

clear

Our ship-,
ping has been absorbed into naval

include any rubber for new pas-

r

optimistic

work, as against less
than 30% at the start of the year.
on

ficiency.

goods has

trol

r:The ii9^ ^all)ptmehts;;;

the rubbec

situation, much of it caused by

•

be

great,

•

confusion about

car-

It is further pointed out that:
!. v

v

There has been a
of

employment
to
26,500,000,
compared with 34,200,000 at the
end of 1941.
In manufacturing,
.' almost 70% of all employees will
•

the state-j

Supply, all joined in
ment, which follows:

ian

,

-*

Transport^

the Office of Defense

friends and neighbors;

civilian

of

greatly curtailed.

been

.

war

"

driyd to Work,* drive

you

;.5;- Remember that rubber is and is
a new and better world order.
playing a conspicuous part
precious; save .it; every car is in the war effort which is indis¬
An
address
by Secretary . of
now a vital part of the nation's
pensable to ultimate victory." He State Hull incident to the obser¬
transportation system.
further said, "the "presence here vance of National Foreign Trade
Needless driving today is un¬ today of the Under Secretary of Week was referred to in our May
patriotic.
Deliberate waste of Commerce should disabuse our 21 issue, page 1947.
rubber helps the enemy.We minds of any intention of post¬
pall on, Americans to ration poning indefinitely our plans for
themselves strictly.
the future, or of minimizing the
- •. - ;

.

ports

the war effort.

prop-

ppoling is essential.

shortage is extremely serious, rer

maximum

them

Production

if

4.

your

fusing and conflicting stories have
been circulated about rubber, the

risen
from - $61,000,000,000 , to
$99,000,000,000. At the April rate
of production, unfilled orders are
equivalent to a 2V2-year produc¬
tion

inflate

erly.

V

Manage-j

because many con-j

ment." Issued

contracts "and

commitments, placed

ahhouhcemcnt by

an

the Office for Emergency

;

states:

'

-

countries

subnormal, and

thereby creating employment in*

becoming

a

He added:

ion.

'*

I

fully appreciate the motive
behind the bill and the desire
the small business man
through no fault of his
finds his business Cur¬

to help

who,
own,

tailed

or

shut

down

entirely.

But there is certainly no reason
to

ask

the

property

owners

make all the sacrifices.

to

in

seen

Department Reports On Factory " j
Workers' Honrs And Earnings tn March

i

cents, Secretary

of Labor Frances Perkins

in overtime premiums were

increases

had

reported, on
?

Secretary Perkins

durable-

earnings in

Hourly

weekly earnings.

earnings since March, 1941, was
16.1%
for all manufacturing,
17.1% for durable goods and
13.0%
for non-durable goods.

ings
cents

rise

of

nours

than 44 per week

more

reported

industries

war

important
actual

Three

March.

in

working hours of more

than 50

per
wage
earner:
tools (54.6), machine-

week

per

machine

tool
accessories
(55.6);
and
screw-machine products (50.8).

strategic

Other

war

industries

reported the following working
hours: fire-arms (49.8), foun¬
dries and machine shops (48.6),

(48.4),
aircraft
electrical
machinery
(45.8), ammunition (45.7), ex¬
plosives
(44.9), brass, bronze
and copper products (45.4).
In

shipbuilding
(47.7),

all

scheduled

cases

hours

are

average,v hours
reduced be¬
low scheduled hours by absen-

than

longer

which

worked

are

teeism

the
Caribbean
countries and Mexico.
nations,

can

The

new

well

as

reporting increases to the
of Labor Statistics.
In

durable-goods

the
about

fected,

industries

120,000 workers were af¬
while 85,000
workers
advances

secured

durable

goods

dustries

in

of

numbers

the

in

which

the losses of Central Euro¬
and other markets cut off
by the war, if South American
trade is considered as a whole.
The distribution of the new vol¬

products

and

steel

In¬

over

lombia

cas

show

that

were

1940,

showed little change over
month, although marked
gains occurred over the year
interval.In March, 1942, an¬
thracite
miners
average
98.9

per hour, a rise of 9.2%
March, 1941; bituminouscoal miners averaged $1.06 per
hour, a rise of 19.5% over the
year.
Working hours showed
little change, averaging 34.6 in
anthracite
and
31.5
in bitu¬

cents

since

mines;

stood

average

at

weekly

$34.43

and

$32.92,
respectively.
Hourly
earnings in metal mines moved




war,

nation

such

as

A

and

the

-

in

is

in

were

by

active

in

building

to

received

up

her ex¬

her neighbors.
Growing recognition of their
community of interests may be

by

reported

was

7}

page

vV'

•

•;. »:

.

May 25 to appropriate Or

grant contractual authority for an
additional

$614,425,000

retailer Navy.
Items

.

in

listed

the

for

to

request

a

trade agree¬

that

in

totaling $404,355,000 in cash and
contract authorization, and a sup¬
plemental estimate of $209,440,000
for the 1943 fiscal year. The press
advices
from
which
we
quote
further said:
v
The

1942 from

mayf have violated 6

fair trade

also

naval

ization. for

such

charging

estimates

proposed

to increase the contract author¬

regardless of

would

s

aviation

for

$650,000,000 to $800,-

whidh

of

000,000,

agreement or a State

Fair Trade Act.

$210,000,000
for plant

available

be

facilities.

„

However, in the last instance,
a retailer is "frozen" at a

where

maximum

price

which

forces

FIC Banks

Place^Debs.

him to sell below the minimum

Interme^iate^redit
price set in a fair-trade agree¬
Banks on May 14 mai tela success¬
ment that was
in effect in
ful placement of $4L/16\000 de¬
March, he may apply under
bentures through Charles R. Dunn,
Section 18(a) of the Regulation
New York, fiscal agent for the
for an adjustment of his ceiling
banks.- Of the total amount $36,on
the ground that it is "ab¬
415,000 were sold publicly at par,
normally low in relation to the
of which $16,015,000, dated June 1,
maximum prices of the same or
similar commodities established 1942, and due Jan. 2, 1943, carries
a
coupon rate of 0.75% and $20,for other sellers at retail."
400,000, dated June 1, 1942, and
due April 1, 1943, bears a coupon
.

.

.

this US Advances

Funds
For Cuban Sugar Supply

The Defense

Supplies Corporat¬

rate
of

of

of

The

0.85 %.

other

issue

$4,750,000 carrying a coupon
0.50% and maturing Sept. 1,

1942,

privately at

sold

was

par.

Of. the proceeds of the sale $38,subsidiary of the Recon¬
450,000 will be used to pay off a
struction Finance Corporation, on
like amount
of debentures
due
revised effective May 6, permits May 13 began advancing more
June 1 next and $2,715,000 is for
sales to be made on "open book" than $150,000,000 to Cuban sugar
new money.
At the close of busi¬
or
"charge account" with the mill owners for sugar now in

setting maximum terms on in¬
stalment and charge accounts, as

ion,

understanding that the account
may

later be

up to six months.
procedure apparently has
been considered acceptable by

a

Business

of

means

"; the
cash
provisions re¬
all instalment sales of

avoiding

payment

quired

on

listed articles.

Such
ous.

article

• •

'

y

-<

impression is erronsale of any listed
in
an
open
book or

an

The

charge account with an agrees

ment, arrangement, or under¬
standing that the credit: will
later be converted into an in-

"

ness

observers

the release of the
some

said might run as

$200,000,000,

would

The

will have

the banks

deben¬

$299,470,000

Defense:. Supplies

'

V

War Savs. Radio Program
To Get Award Of Merit

high as

create

•J business boom in Cuba.
•

1

———M——

predicted

funds, which

'

■

June

outstanding

tures, an all time high,

ing is taken:

maturity

stores and consumers as a

From* Associated
advices, the follow¬

Press Havana

This

some

a

warehouses.

converted to an

instalment sales contract having

of the nations also

ports of finished woolen fabrics

fair

a

charged,

price he

gained the impression that
Regulation

but with aid and
encouragement from the United

industries, particularly textiles.
Uruguay also is reported very

agreements may
price

highest price charged

by

fact

the

the Federal Reserve

other

looking now toward the
manufacturing of steel and sim¬
goods.
Chile, Peru, Colombia, Brazil
and Argentina, are actively ex¬
panding their consumer goods

areas

columns VMav

$614 Million For Navy

the following

retailer during March was
price estab¬

actually

credit:

down

ilar durable

high rents in 323

on

President Asks Added

ment, the retailer is neverthe¬
less "frozen" to the prices, he

W

y have

ex¬

are

a

lished

indicate that some stores

fore the war,

some

1779.

below the minimum

Federal

Inquiries

goods, much of which
imported from Europe be¬

States

these

in

minimum

a

3. If the

Vy y

bank

Ecua¬

and

days the OPA will

and impose Federal

defense-rental

Mr,

occasion

ceiling price of that retailer

and

'dealing^ in tokens

ing to consumer

remainder to

textiles

step in

of that retailer.

as

Under Regulation
The

large part of the increase
the
inter-South
American

trade

then

Speaker of the House Rayburh
included, according to the Asso¬
2. No new fair trade agree¬ ciated Press, a deficiency estimate
ment effective after May 18 may for the 1941 fiscal year amounting
establish minimum prices for a to
$650,000,000, a supplemental
retailer higher than the March estimate for the 1942 fiscal year

gold

Instalment Sales Rule

20%, three-fourths of all the
exports going to the United

States

"de¬

as

controls.

only if that minimum is not
higher than the ceiling prices

the main-?

~

announcer

which is binding upon a

volume of
American trade

Askimarks."

out within 60

The Federal

dor's total exports to all coun¬
tries in 1941 exceeded 1940 by

Latin America.

Territory of Alaska

-

gress on

between

trade

eign

with

neighbors

nearly doubled.

of the

President Roosevelt asked Con¬

1. Fair trade

r establish

large

a

America

Latin

consumer

ing

the

stantial

1941
90% of her total for all of
or

County.
designated

On May 26 the OPA

.

three points:

well as sub¬
all of
the United
States. It is certain that if trade
between the United States and
Latin America could be estab¬
lished on a gold standard basis
the exchange control and ex¬
port-import permits could be
eased and trade in the whole
3 Hemisphere
wduld &ev e 16 p
much
more
easily now and
after
the
war.
That
action
would also make it more diffi¬
cult in the future for any for¬
after

ports for the first half of

In the

the

of

this inter-South

that
made

Henderson

throughout Latin America

tenance

♦,

Venezuelan

Morris,,*■ Passaic,
Union,
and
ex¬

18 additional communities and all

OPA action

On

price.

mon-i

a

on

would help to insure

Chamber of Commerce of Cara¬

earnings
and working hours,
weekly
earnings
rose
23.9%
over
the
year
to
reach
a
level of $36.15 in March, 1942.

earnings

basis

negligible but this is
increasing, especially with
Brazil. Figures reported by the

blast furnaces,
rolling mills

Hourly earnings in coal min¬

of value

standard

maximum

supplements a statement
issued by him a few days ago
to
the effect that State Fair
Trade Laws cannot require a
retailer to sell above his ceiling

Establishment of the dollar as
a

fixing

ment

stabilization.

etary

is

Mr., Henderson's

..

fund to aid in Paraguayan

trade of Co¬

Venezuela

and

and

tended to include Sussex

prices only.

in

agreed to provide for establish¬
ment
of
a
foreign
exchange

now

(8,500), machine tools (7,800),
and pulp (7,800), and cot¬
ton goods (5,100).
As
a
result
of
the
gains
which occurred in both hourly

minous

»<

years

their South American

and

to $27.72.

that'OPA

especially with Argentina
those
two nations
have

that

has been

paper

v

1940.

-

included

<

make clear to sellers and buyers

v

the

to

and

10 na¬

for the first 10 months of

In normal

(13,800),

durable-goods industries
weekly earnings rose 26.1% to
a
level of $42 while those for
the non-durable goods increased
17.1% over this same interval

figures

indicate that

1941

(17,100), foundry

(10,200),

1941

29%

machinery, apparatus

works

them

caused

Reserve Bank of
tions is growing rapidly.
The San Francisco issued on May 18
Banco Central de Reserva del
the following statement in con¬
Peru, for instance, reports that nection with revised Regulation W
Peruvian exports to seven of its
of the Board of Governors of the
continental neighbors increased
Federal Reserve System pertain¬

supplies (13,000), boots and

shoes

incomplete

of at least eight of the

substantial
received

chemicals

16,700),

has

America

the inter-South American trade

products

electrical

few

Monmouth,

Somerset

intent to void any

than others.

The

the ^ Regulation

of

/not be- construed to express an

benefiting

relatively

available for

workers

machine-shop

and

however, differs from the

more
•

and agricul¬

'

~foij
example,, her -trade •• with her
neighbors is so substantial ai
part of her foreign commerce

old, with some of the nations,
especially the large metal pro¬

wage-rate
increases were as
follows: brass, bronze and cop¬
per

should make

soon

pean

non¬

industries.

ex¬

up

ducers,

ments

themselves,

emergency

materials to the

war

United States

mately 205,000 wage earners in
manufacturing
establish¬
Bureau

the

as

of

ports

ume,

814

and additional trade

developed by the South Amer¬
ican nations among

.

conces¬

In the case of Paraguay,

to the

with the Central Ameri¬

merce

comple-j

-

Ameri¬
expanded com¬

nations, nor

can

••

>

-

involved

areas

New Jersey, origin¬
ally designated as the counties of
Bergen, Essex, Hudson, Middle¬

that "lower prices
than those established by thi?
Regulation may be: charged,' de¬
manded, paid or offered" shoiild

stabilization of their
relation to
each
other and to the dollar." He adds;

themselves in 1939,
of the war, was
nearly 200 millions.
These figures do not reflect
the substantially increased ex¬

and, labor turnover.
Wage increases from Feb. 15
to March
15 averaging
7.9%
were
received
by
approxi¬

.

as

year

of war materials
United States by South

$

Section

give new thought to the dollar
a
common
standard of value

to

and

ports

..,'

areas.

The

*

of the trade of the 10 na¬
first

these

providing

country but only of mi¬

one

South

tions among
the

have

camps

-

(Continued from First Page)
millions, or nearly 50% more
than in 1918, the largest year
ever
recorded. The total vol¬
ume

army

made the rent situation critical in

,

South American Trade

and 19 of the
durable-goods
industries
re¬
ported actual average working

of

struction

■

Sees Record Volume Of

earner

per wage

or

seller's obU- fense-rental areas."
: ;
y- gation
to maintain minimum
The OPA recommends a date at
nor voluftie in the other, y f
£ prices under any fair : trade which maximum rents should be
Mr.
Iglehart also
points out
agreement or State Fair Trade established in the areas
and if the
that "the rapid growth of trade
Act.
The purpose of this provirecommendations are not carried
among
the,> Good- Neighbors of
sionj: Mr. Henderson said, is to
in

cents in

(59.9

more

granting '

-

to industrial

currencies

goods industries had scheduled
hours of more than 40 per week

•

trade

retail

for

(3.0% above March, 1941).
Virtually all of the durable-

V

substantially

a

less than the ceiling
prices set by the Regulation, Price

tural products of major volume

March, 1942).

5.5% over the

non-durable goods

economies

mentaryby

year), 44.7 in the
39.8 hours in

:

greater
in recent months than those

shown

Average hours worked reached
42.5 for all manufacturing in¬

durable goods
(7.1% above March, 1941), and

utilities, as have their
Hourly earn¬
in wholesale trade (84.7
in
March,
1942), have

public

at equal to

sex,

sions

year.

<

which- they

Hourly

the

over

earnings have risen moderately
in recent months in the various

and

by

year

a

below

May. 23 enlarged the size*
previously announced war

on

six

of

authorizes production rental areas because
the minimum prices
expanding activities and the con¬

Northeastern

their

24.0%

hour, while the increase for
non-durable goods was 0.7%
to a level of 70.6 cents per hour.
The increase in average hourly
per

I V

41.0

basis

favored-nation

earlier; while weekly earnings
reached $38.27, an increase of

goods manufacturing rose 0.6%
to reach a level of 89.9 cents

dustries (a rise of

compared with

as

sales

tion

Price Regulation

agreement was that negotiated
Argentina and Brazil by
-sought- to make

amounted to 44.2

Hours

1941.

added:

in the General Maxi¬

Nothing

mum

^

The Office of Price Administra¬

least one, between Chile and
Ecuador, provides for exchange Administrator
Leon
Henderson
of
certain
products
without stated on May 22.
The OPA an¬
tariff.
A n o the r. significant nouncement likewise said:

not of significant proportions,

most war-production plants had already
increased the hours of individual^
steadily upward to 86.6 cents,
workers close to the maximum for
a
rise of 16.5%
since March,
effective operating," she said.
:

They have, already

marked effect in increas¬

a

And State Fair 'Trade Laws

being /"

now

Extends War Rent Areas

OPA Clarifies Price Order

ing the continental trade. These established
under
State
Fair
agreements are on the most-: Trade laws if these minimums are

of the fact that

view

in

South1

the. last

in

others

and

considered.

reported and

"Relatively few wage-rate increases were

19.

May

decade,

rose

level of 80.9

trade, agreements

.

American;; nations

hourly earnings of wage earners in manufacturing
0.7% from mid-February to mid-March to reach a

Average
industries

the

;

consummated among the

U. S. Labor

Thursday, May 28, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

<2040

i,

Cor¬

of

F.

Vincent
Press

and

Callahan,
Radio

of

Director
the

War

poration bought the entire 1942
export sugar crop of Cuba. The
money
represents interest-free
loans the corporation agreed to
make in exchange for an ar-

Savings Staff of the Treasury De¬
partment, will accept a certificate

rangement whereby the mills
would supply a greater amount
of raw sugar, and a smaller per¬

York City at

of

merit

awarded

to

one

of

the

Savings radio programs by
the Women's Press Club of New

War
.

to

be held

a

special

ceremony

in the Hotel Pennsyl¬

vania,New York, on May 23. The
centage of molasses, than had program voted the award by the
violates sec¬
been agreed upon originally.
Women's Press Club was entitled
tions 5(a) and 11(a) of the Reg*
But while business men ex¬ "Education for Death," and was
ulation.
It is desired that this
one of the "Treasury Star Parade"
pected a boom to result from
be widely understood by all re¬
:: the release of the loans, in other series of transcriptions which are
tailers extending credit in order
broadcast
three
times
quarters it was said that war being
that they may not unintention¬
problems made the future out¬ weekly over almost all of the na¬
ally make sales which do mot
tion's 868 radio stations.
A part
look for sugar very uncertain.
comply with the Regulation.
of the prize-winning program will
;
Plans for the United States pur¬
The
Reserve
Board's revised
be broadcast at the award pre¬
chase were referred to in these
regulation was referred to in these
sentation meeting... .,
.

stalment

contract

•

columns May

7, page 1780, • y

yv

columns

Feb. 12, page 676.

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume 155- Number 4076

Ncn-Ferroiis Melals^-End-Use Of
Allocaitions
"Metal
"To

to

of

flow

henceforth

metal

copper

Frozen

>

of May

issue

its

stated:

21

for the war program, end-use of
the tonnages to be

determine

will

monthly.

consumers

in

Markets"

Mineral

the

control

the

By WPB—Price Of Iridium Cut $10

and

allocated

made up in

inventories,

part of

products, should yield 255,000 tons of copper and 45,000
tons of zinc, officials in Washington believe.
Iridium, one of the
metals
in
the
platinum group,r
on
war
business and will obtain
.now tightly controlled, is quota¬
;
ble at $165 an ounce troy, a re¬ an allocation certificate.
The price situation last week
duction of $10 an ounce."
The
publication further reported as was unchanged. Sales of common
iollows:
'
j grades by the Prime Western di¬
vision for the week ended May 16
Copper
amounted to 5,508 tons, against
O. King, head of the
fabricated

•

.

,

•

,

Harry

.

•Copper Branch of WPB, met with
members of the industry during

>

•the
<

last

week

tions

the

of

outline

metal

determining
:

to

im-

an

proved plan for handling alloca¬

fabricators.

the
He

by

means

needs

exact
told

members

of

^includes foreign
The

etc.

copper, scrap,

Government

wants

3,500,000

tons of copper a year for the do¬

mestic

and

lend-lease

war

pro¬

gram,
c

-Consumers will be required to
a questionnaire to obtain

fill out

6,014 tons the week be¬
The backlog dropped to 86,-

against

of
638
of

•the trade that about 2,000,000 tons
-is in sight for this year, which

,

6,332 tons in the week previous.
Shipments of common zinc for
last week amounted to 6,769 tons,
fore.

tons.

;Vf /U V

be

the

in

smelter

Texas

is

to

enlarged again, this time to a

tonnage sufficient to treat virtu¬
ally all of the concentrate being
produced in countries now sup¬
plying the United Nations. This
would
bring
the
capacity
to
.

around

Washington

we

every

night
will

press

in

the

out

are

the

on

4n&>

win

who

men

told

are

daily

Permit valuations in

These

war.

there

shooting
getting shot—they are really

and

puny.;

v

They

valorous but

a

indistinct contribution
stand

it.

Something

I under¬

as

have

we

course, in war.
But if I
listen to the radio and the

to

am

the

newspapers,

who 4

men

really winning this war
engaged

the

on

are

those

are

psychological

Leish's office of what has come to
be known as the Office of Fascists

Fascism, at $8,000

$9,000

or

said.

a

"All classes of
"The

and

in

occurred

the

8,522

struction."

1941.

building. New

Principal

heroes

turn

in

up

jobs

in

Archie's outfit at the above stated
salaries ,than one could shake a
stick

at.

was

And

placed

that

he

not

of

them

the

basis

one

except

on

thought

"every

man

should get in there and pitch."

j

And

they
are
pitching, too,
these high paid heroes of Archie's.
They are terribly worried about

90,000 tons of tin a year.
We don't seem to
program
provides
against our morale.
copper, describing in great detail The
That is
exactly
where % and v when
the possible damage to the Liverpool realize that a war is on.
We are en¬
.product manufactured will be put smelter now treating concentrate the trouble with us.
to use.
The plan is expected to shipped to England by Patino. It tirely too complacent.
Most every
eliminate all guess-work in fix- also permits the United Nations night there is someone on the ra¬
ring allocations
and
speed the to take advantage of the shipping dio either directly working for
Archie or sponsored by him, tell¬
movement of the metal into es¬ situation.
Production of tin in the Bel¬ ing us how dumb we are.
sential .channels.
THIS
Mr. King be¬

Secretary

lower

valuations

for
or

than

which

is

those

movement.

valuations

for

contra

a

The
in

April

excluded

dential

12%

building showed a de¬
while" additions,

of 37%

alterations, and repairs declined
by 3%.
There was, however,
increase of 11%

an

expenditures for
tial

in indicated
residen¬

new

buildings.
This increase
brought about by resump¬

was

tion of

ing

Federally financed hous¬

construction

in

defense

areas.

•

lieves that
the
or

consumers

will, under

gian Congo is being increased to

month

total

of

ahead of the period when

tent)

a

plan, obtain

more

copper

a

the metal will be needed for fab'

year.

to raise output to

tons of

rication.

tons (metal con¬
Nigeria is being

20,000

pressed

tin

or

a

17,000

of

more.

copper

•

.

May 20

52.000

52.000

52.000

against 22,264 tons in the week
Chinese tin, 99%, spot, 51.125c.,
previous. Sales for the month so
-far amounted to 70,856 tons. The all week.
t
London Tin—No quotations,
price ,■ situation i was +, unchanged,
domestic
metal
selling on the
Quicksilver
•■basis~of 12c., Connecticut Valley,
The price situation in
quick¬
-with foreign copper moving into
silver remains unchanged.
Busi¬
-the country on the basis of 11.75c.,
ness
was
placed during the last
f.a.s. United States ports. >
week on the basis of $191 per
Lead
flask, Pacific Coast, prompt ship¬
:
Distribution of lead to domestic ment, and at $187-per flask on
forward
consumers is holding at between
metal.
The New York
70,000 and 75,000 tons a month. quotations continued at $197.30 to
May requirements of consumers $199.21.
Under prevailing conditions, the
; are covered to about 75%, with
/June at 25%, according to esti¬ Spanish market for quicksilver is
mates in the trade. Sales of com¬ exerting no influence on the price
mon
lead
for
the
week
ended situation here.
However, accord¬
May
20
involved
14,407
tons. ing to a survey of Spain's metal
Common lead in New York con¬ output in the May issue of "Engi¬
tinued at 6.50C;, with the St. Louis neering and Mining Journal," that
basis also unchanged at 6.35c.
country is producing quicksilver
Domestic
refineries
produced currently at the rate of 7,000
58,950 tons of lead during April, flasks a month. Stocks of quick¬
of which total 52,049 tons was ob¬ silver in Spain at the beginning
r

-

.

'

from

tained

domestic

trend in output

ore.

•

The

has been upward

: since the beginning of the

zinc industry

>

is busy pre¬
allocation sched-

for full

paring

the

year

amounted

to

52,000

flasks, the report states.

war.

Zinc

The

of

Silver

ship 25%

DAILY

PRICES

changed

at

35V8C.

and

35c.,

May

METALS

re¬

spectively.
("E.

&

I

Zinc
St. Louis

11.775

11.700

52.000

6.50

6.35

8.25

15

11.775

11.700

52.000

6.50

6.35

8.25

16

11.775

11.700

52.000

6.50

6.35

8.25

18

11.775

11.700

52.000

6.50

6.35

8.25

19

11.775

11.700

52.000

6.50

6.35

8.25

20

11.775

11.700

52.000

6.50

6.35

8.25

11.775 :V'

Average

11.700

52.000

6.50

'

6.35 !

8.25

Average prices for calendar week ended May 16 are: Domestic
copper f.o.b. refinery, 11.775c.; export copper, f.o.b. refinery, 11.700c.;
Straits tin, 52.000c.; New York lead. 6.500c.;
St. Louis zinc, 8.250c.; and silver, 35.125c.
>

St. Louis lead, 6.350c.:
>

are "M. & M. M.'s" appraisal of the major UnitedfState*
sales reported by producers and agencies.
They are reduced to the
basis of cash. New York or St. Louis, as noted.
All prices are in cents per pound.
The

above

markets, based

quotations

on

Copper, lead and zinc quotations are based on sales for both
deliveries: tin quotations are for prompt delivery only.
*

In

the

delivered

at

trade,

prompt and future

domestic copper prices are quoted on a delivered basis; that
plants.
As delivery charges vary with the destination,

consumers'

is
the
Delivered

net prices at refineries on the Atlantic seaboard.
prices in New England average 0.225c. per pound above the refinery basis.
Export quotations for copper are reduced to net at refineries on the Atlantic sea¬
board.
On foreign business, owing to World War II, most sellers are restricting offer¬
ings to f.a.s. transactions, dollar basis.
Quotations for the present reflect this change
in method of doing business.
A total of ,05c. is deducted from f.a.s. basis (lighterage
etc.) to arrive at the f.o.b. refinery quotation.
'
J
figures shown above

are




are
not only
but seeking defer¬

from

the

Out

draft,
all

over

the gold stars are

utter

the

going

the

country

in the

up

windows, the word comes from
missing Kansans and Nebraskans
in Bataan, the tell-tale telegrams
come of the boys lost in Hawaii—
et's forget that—they come telling
of stories in the jungles of the
East.,

v

,

The
mothers
who
get
these
messages^—-the fathers whose busi¬

are

taxes, by rationings, by price ceil¬
ings—they do not know that a
war is on.
They will be told that
tonight
by
Archie
MacLeish's
disciples—in print and over the

air.

They will be told that—because
this is really a Psychological War.
If these mothers who have put up
the

Gold

who

Stars

been

businesses

think

of these

foolish.

these

and

have

cause

in

this

war

is

not

are

their

in

will

the

win

pitched
I

win.

don't

part of

a

Why

war.

God

we

understand.

We

ever

have

that words

to

will

win

survive Hitler

Archie

Words

it.

Your

and

his

must let

we

word

boys

have

counterparts

of

Archie—the

propagandists—on

each

and

valuations

amounted

year
a

loss of 14%
first

the

ceding

4

one

has

year.

radio fitted for short

had too much to do to tune in
it. But

notwithstanding this

of

broadcasts,

Leish's insist

the

valuations

awarded

up

problems
against.

one

the

are

include

Federal

by

officials.

In

the

our

Mac¬

1941

are

summarized below:

1941, to April, 1942
Class of

Excluding

Construction—
New

residential

New

All Cities

of

the

City

—25.7%

—39.8%

tial

0.9%

+

altera¬

Additions,

repairs

—19.1%

—16.7%

construction

•—31.8%

-19.1:

&

tions,
All

Change from March,
1942, to April, 1942
Class of

Excluding

Construction—

All Cities

residential—

past

N. Y. City

+ 10.6%

+ 14.8%

—37.1%

New

—36.0%

non-residen¬

tial

altera¬

Additions,

&

repairs

construction

All

Comparisons
cities

in

tions

months

4

first

2.5%

—

1.1%

—

—12.2%

-10.0%

of permit valua¬
reporting for the
of

1941

and

1942

shown in the following table:
Change from First 4
Months of 1941 to

con¬

Auburn, N. Y., fac¬
to
cost
$653,000; New
City—Borough of Man¬
hattan, a school to cost $775,000,
and the Borough of Queens, 2family dwellings to cost $1,098,000; Philadelphia, Pa., 1-family
dwellings
to
cost
$2,629,000;
Upper Darby Township, Pa., 1family dwellings to cost $498,000, and 2-family dwellings to
cost $999,000; Chicago, 111., 1family dwellings to cost $1,108,000, and factories to cost $1,010,000; Lincolnwood, 111., a fac¬
tory to cost $1,500,000; Dear¬
born, Mich., factories to cost $1,630,000; Detroit, Mich., 1-family
dwellings to cost $4,086,000, and
factories
to
cost
$2,832,000;
Flint, Mich., factories to cost
$1,694,000; Cleveland, Ohio, 1family dwellings to cost $1,057,000; Columbus, Ohio, 1-family
dwellings to cost $674,000; To¬
ledo, Ohio, a factory to cost $1,000,000; Beloit, Wis., factories to
cost $810,000; Washington, D. C.,
multi-family dwellings to cost
$2,461,000, and a dormitory to
cost $600,000;
Baltimore, Md.,
2-family dwellings to cost $773,000; Baltimore County, Dist. No.
12, 1-family dwellings to cost
$1,002,000;
Alexandria,
Va;r
multifamily dwellings to cost
$1,101,000;
Norfolk,
Va.,
1family dwellings to cost $839,000; Arlington County, Va., to
cost $2,098,000; and Los Angeles,
Calif.,
1-family
dwellings
to
cost $1,149,000, and multifamily
dwellings to cost $5,549,000.
Among the publicly financed
housing projects for which con¬
tracts
were
awarded
during
April were the following devel¬
opments
with
the
indicated
number of dwelling units: New
Haven, Conn., $1,200,000 for 300
units; Boston, Mass., $3,200,000
for 972 units; Holyoke, Mass.,
$820,000 for 219 units; - Jersey
City, N.J., $1,643,000 for 416
units; Chicago, 111., $1,150,000
for 269 units; Springfield, Ohio,
$712,000 for 250 units; Burling¬
ton, Iowa, $1,129,000 for over
400 demountable units; Wash¬
ington, D. C., $8,490,000 for 815
units; Norfolk, Va., $2,265,000
for
900
demountable
units;

•

.

Compton, Calif., $1,500,000 for
500
units; Sacramento, Calif.,
$1,217,000 for 332 units; Vallejo,
Calif., $755,000 for 300 demount¬
able units; Portland, Ore., $1,312,000 for 400 units; Tacoma,
Wash., $1,711,000 for 400 Units;
and Vancouver, Wash., $1,705,000 for 550 demountable units.

First 4 Mos. of 1942

Excluding

Class of

Construction—
New

residential—

New

All Cities

N. Y.

—13.8%

tial

—

President
—

Additions,

0.3%

+

13.1%

altera¬
repairs

Hints Greater AEF

City

8.7%

non-residen¬

—

6.8%

—

1.6%

his
that
are

All

construction

—

8.0%

0.0%

The Bureau's advices also state:
New

for

housekeening dwellings

which

permits

were

issued

bureaucrats

in

Washington

I

press

Roosevelt

conference

additional
to

be

sent

implied to
on

American
to

Europe.

May

19

troops

Com¬

menting on the arrival on that
day of a large United States force
in
Northern Ireland, the .Presi¬
dent said that the landing opera¬
tion was successfully carried out
and expressed the hope that suc¬
would continue in the future.

broad¬

affect

don't

on

fighting
men,
with
all
their When a reporter asked if that
medals, and heroic deeds, have a meant more troops Mr. Roosevelt
chance in the future.
They won't replied that there was a sort of
be able to tell about what they implication in his remarks.
Con¬
have done.
But the Bureaucrats tingents of U. S. troops began ar¬

our

month

I

tering the words of Goebbels.
view

N. Y.

non-residen¬

—29.0%

is

have heard three high ranking of¬
ficials accuse one another of ut¬
In

State

aver¬

propa¬
of the grav¬

these

an

contracts

and

April 1942, March 1942, and April

the

having

same

April 1942, Federal and State con¬
struction in
the 2,364 reporting
cities
totaled
$55,474,000;
for
March 1942, $78,367,000, and for
April 1941 $84,449,000.
'
Changes in permit valuations in
the 2,364 reporting cities between

tions, &

Government

Unquestionably
casts

pre¬

the

Governments in addition to private
and municipal construction.
For

German

ganda constitutes
est

on

Americans to the foreign

wave

the

of

Over

re¬

broadcasting but that so
help them goodness, they had long

short

compared with

The Bureau's tabulations of per¬

are

every

wave

sion

$391,167,000,

to

as

period
new
non - residential
building decreased slightly less
than 1 % and additions, altera¬
tions, and repairs- declined 7%.

him.

never heard any
Axis propaganda in his life. Some
of these people have
said that

a

for

months

plied that he had

they had

for

buildings

the first 4 months of the current

tions,

thing, too, because
I have asked every one of my
friends what was the influence of

And

Permit

residential

New

full sway.
It is a funny

German

1941.
new

got

MacArthur's and the boys on the
front are a lot of nonsense.
If we
are

buildings
valued at
$826,131,000, a de¬
crease of 8% as compared with
the
corresponding
period
of

to give
his legions full leash

and

re¬

for

are very

into it is something

men

that
will

the

of

name

issued in

were

cities

be¬

Understanding.
New Understanding is that

Words

porting

Change from April,

facts, they

They

fathers

ruined

the New
The

During the first 4 months of
1942, permits

being
closed—those
mit
being wrecked by

nesses ■; ■■ are

people who

the

M.

who

men

money

words.

.

J." QUOTATIONS)
——Electrolytic Copper—— Straits Tin,
LeadSt. Louis
Domest., Refin. Exp., Refin. New York New York
OP

making

so

During the past week the silver
market in London has been quiet,
.with
the
price
unchanged
at

1. Under the plan, 23V2d.
The New York Official and the
will be permitted to
of a consumer's needs, U. S. Treasury prices are also un¬

/provided the producer feels cer¬
tain that the consumer is working

these

as

truly frightening

a

One must search his mind

Archie

uled for June

/producers

shriek.

ment

Straits quality tin for future de¬
in Chile,
Peru, and Mexico during April liveries was nominally as follows:
totaled 51,342 tons, which comMay
June
.Tuiv
May 14
52.000
52.000
52.000
pares with 49,212 tons in March.
May 15
52.000
52.000
52.000
Sales of copper in the domestic
May 16
52.000
52.000*
52.000
market during the week ended May 18
52.000
52.000
52.000
52.000
May 19
52.000
52.000
-May 19 amounted to 10,854 tons,

Production

IS WAR! It is

of their

York

•

.

because

tories

lower than during March.
Over
the same period, new non-resi¬
crease

in

$683,000;

permit

were

awarded

were

fidential nature, were: Camden,
N. J., 1-family dwellings to cost

also

March,

total

contracts

1942, except those
awarded by the War and Navy
Departments,
Maritime
Com¬
mission, and the Defense Plant
Corporation which have been

seasonal

-

of

April

Perkins

were

centers of various
building construction
which permits were issued

types

further stated:

April

April 1942, 2,462 in
1942, and 7,931 in April,

in

March

of

alterations, and repairs were low¬
er by 19%.
The stop construction
order issued by the War Produc¬
tion Board, effective April 9, was
largely responsible for the falling
off in the projection of new con¬

The National Press Club has, in
the past few
months, witnessed

;

num¬

In

provided

cluded in these totals numbered

decline

residential building showed a de¬
crease
of 29%, while additions,

year.

fewer than the

"Y

%

April, 1941.
Dwelling units in publicly fi¬
nanced
housing
projects in¬

con¬

value

20%

ber

decrease,"

heaviest

non-residential

new

front, preferably in Archie Mac-

and

May 23.

struction shared in the

(40%)

have, of

were

of Labor Frances Perkins reported

she

to

April

32% lower than during the corre¬
sponding month of 1941, Secretary
on

making

are

the 2,364 reporting cities in
April 1942 will provide 33,090
dwelling units tfcf 19%
more
than the 27,916'dwelling units
reported in the previous month,

Valuations Are Down

radio

the

in

April Building Permit

(Continued from First Page)
which

more

Advices from Washington state
that

From

Copper To Fix

2041

articulation

of

will.

see

how

in

the

world

the

cess

riving in Ireland

on

May 19.

Thursday, May 28, 1942 .;

:.rVk

THE
2042

173,500

166,700

213,000,000

200,000,000

59,000,000

March, 1942

April, 1942
v.

lost
_
Man-days worked
Percentage—time lost to time
number of strikes—

Man-days

1223

of

-

'/k /K

■//■"■■■

1%%

8/100 of 1 %

8/100 of 1%
;^/A,:AV 395

PERCENTAGE

Major

Central

West

States--,

Southern

that the strike figures were based on the work
interdepartmental committee on strike statistics. The committee
consists of representatives of the War, Navy, and Labor Departments,
the War Production Board, the Maritime Commission, and the War

4.6

2.5

Total United States

11.2

(Based

r"

PRICESt

BOND

MOODY'S

Yields)

Average

on

1 '
e

Apr.

Govt.

11
18

25

Aaa

rate *

A

Aa

■

..

R.

Baa

•

Indus

P. 17.

R.

16
23

May

116.02

112.93

107.44

91.77

96.07

110.88

113.50

106.39

106.39'

116.02

112.93

107.44

91.77

96.07

110.88

116.02

112.93

107.44

91.77

96.07

110.88

106.56

116.02

112.93

107.44

91.91

96.07

110.70

113.50

112.93

91.77

96.07

110.70

113.50

118.08

116.02

107.44

21_;—

106.39

116.02

113.12

92.06

110.70

113.70

106.56

96.38

116.02

113.12

107.62

92.06

96.54

110.70

113.50

106.56

116.02

107.62

92.06

96.54

110.88

113.50

106.56

113.12 '<

116.02

113.12

92.06

96.54

11C.88

113.70

106.56

107.44

'16

117.92
117.86
117.88
117.88

107.44

20

116.02

113.31

96.54

110.88

113.70

106.74

92.06

117.89

107.62

15

106.56

113.31

92.06

96.54

110.88

117.80
117.89
117.72

107.44

14

116.02

113.50

116.02

113.12

107.44

92.06

96.54

110.70

113.70

106.56

116.22

il3.12

107.44

92.06

96.69

110.70

113.70

106.56

116.02

113.12

96.69

110.70

113.70

106.56

92.20

117.74

107.44

11

116.22

113.12

107.62

96.69

110.70

113.70

117.76
117.79

106.74

92.20

9

116.22

107.62

92.20

96.69

110.70

113.70

106.74

113.12

96.54

113.70

76.54

110.70

6

117.83
117.98

106.74

116.22

110.70

116.02

113.12

96.69

110.70!'

113.70

106.74

92.20

118.01

107.62

5

92.20

110.70

106.74

107.44

\96.69

117.86

113.12

113.70

116.22

113.12

107.44

92.20

113.70

117.98
117.90

116.22

110.70

108.74

96.69

107.44

92.06

96.69

110.70

106.56

113.12

113.70

116.22
116.22

113.12

107.62

96.69

110.70

113.70

106.74

92.06

117.80

113.70

92.20

96.85

113.89

116.41

110.88

106.92

107.62

118.08

110.70

114.08

.+'12.5

2,983,591

12.5
-+12.4

2,983,048
2,975,407

2,959,646 A- +13.1
2,905,581
+ 14.3.
2,897,307
+ 14.2
2,950,448
+ 10.9
2,944,906 - +12.2
3,003,921
+12.0

,

3,356,921
3,379,985

*
...

:

9.7
11.1
8.9
16.1
3.3
19.8

i*

12.2

t

,

nounce a

- +

duction

118.34
___

23

—

'

22

—

19 :
18

,

+11.5
+11.2

3,011,345
3,040,029

1,480,738 1,696,543
1,469,810 1,709,331
1,454,505 > 1,699,822
1,429,032 1 1,688.434
1,436,928 1,698,492
1,435,731 1,704,426
1,425,151 1,705,460

2,529,908
2,528,868
2,499,060
2,503,899
2,515,515
2,550.,071
2,588,821

13

>:

8

—

*'

-

*

7

-

2

v

>1

92.06

preparing to take
steps to prevent "priorities inflation" under which a flood of high
ratings is interfering with the efficient flow of vital materials io
United States war plants, reports "The Iron Age" in its issue of
today (May 28), adding in part: "When the Allocation Classification
Plan is put into use in conjunction with the production requirements
plan, "The Iron Age" is told, 90%<S>time, until changeover to essential
of all industries will no longer
Production Board officials

113.70

operate under the "P" or
ence rating orders.
NPB

prefer¬
several

-

10

2

—

Mar. 27

'20

13

116.41

113.89

107.62

92.35

113.70

107.62

92.20

97,00

114.08

116.22

110.52

106.92

113.50

107.62

91.91

97.00

113.50

116.22

110.34

106.74

115.63

113.12

107.09

91.34

96.85

109.79

112.93

106.21

ing production needs, little com¬
months ago indicated that the ex¬
plaint being heard of shortage.
panding war program made it im¬
Intensive
collection
programs
possible to continue the use of
continue, with good results."
preference ratings assigned under

115.43

112.93

107.27

96.85

109.60

112.75

the "P"

117.33
117.32

106.21

91.34

115.63

112.93

107.27

91.62

96.85

109.79

113.31

106.21

113.31

107.62

91.62

96.85

110.15

113.31

orders without any

exact

116.34

106.39

96.85

obtained

115.82

113.31

113.50

106.56

91.62

116.32
116.27

107.80

20

113.50

107.80

91.77

97.16

113.50

116.41

110.70

106.74

mobile

industry

113.70

;

13 ——

106.74

116.41

97.16

113.70

107.80

92.06

97.31

113.70

116.22

110.52

106.92

107.62

91.91

97.31

116.41

113.89

107.62

91.91

110.52

113.70

106.92

97.31

117.60

114.08

107.62

91.77

113.89

armaments.

117.61

106.04

115.82

113.50

107.09

90.63

118.40

106.92

116.61

114.08"

107.98

92.50

115.90

106.04

115.43

112.93

107.09

90.63

108.52

118.60

116.02

109.60

92.50

120.05

105.52

116.22

112.00

106.04

89.23

ago-*
1941- 118.41 106.39
116.80 113.31

107.09

91.19

99.68

79.84

■

Low

—„

19421—

1942

1941—.

115.89

1941

1 Year

May 26,

107.80

113.50

91.91

2 Yeafrs ago

(Based

Dally

1

rate

3.31

4.29

3.01

3.31

4.28

2.85

3.01

3.31

4.29

2.85

3.00

3.31

4.27

3.36

2.85

3.00

3.30

4.27

3.36

2.85

3.00

3.30,

4.27

--

-

—

4.27

3.36

2.85

3.00

3.31

3.35

2.85

2.99

3.30

4.27

3.36

2.85

2.99

3.31

4.27

3.36

2.85

3.00

3.31

4.27

4.27
4.26

—_

15

13

3.36

11

3.00

3.31

4.26

2.84

3.00

3.30

3.35

2.84

3.00

3.30

4.26

2.84

3.00

3.31

4.26

———

3.35

'v7
6

3.00

2.85

3.35

9

8

2.84

3.31

3.36

12

3.35,

2.84

3.00

.

3.30

4.27

2.85

3.00

3.30

4.26

3.96

3.13

2.97

2.84

3.00

3.31

4.26

3.96

3.13

2.84

3.31

4.26

'3.96

3.13

3.36

1

2.84

3.00

3.31

4.27

3.96

3.13
3.13

3.35

3.30

4.27

3.96

2.97

-3.30

4.26

3.95

3.12

2.83

2.96

3.30

4.25

3.93

3.13

3.34

10

3.00

2.83

3.34

17

2.84

3.34

24

2.84

2.97

3.30

4.26

3.94

3.14

—

2

f

3.35

27

4.28

3.94

4.32

3.95

3.18

2.88

3.01

3.32 /

4.32

3.95

3.19

2.87

3.01

3.32

4.30

3.95

3.18

2.87

2.99

3.30

4.30

3.95

3.16

3.95

3.15

3.93

3.13

3.36

13

2.86

2.99

3.29

3.35

20

4.30

2.83

2.98

3.29

4.29

3.35

3.13

3.92

3.14

4.28

3.92

2.84

2.95

2.83

2.96

3.30

4.28

3.92

3.13
3.14

2.82

2.95

3.30

4.29

3.93

3.13

3.39

2.86

2.98

3.33

4.37

4.01

3.15

3.39

2.88

3.01

3.33

4.37

4.01

3.19

3.34

1942

Low

1942

2.82

2.95

3.28

4.24

3.91

3.12

-

2.86

3.06

3.39

4.47

4.03

3.20

2.72

2.85

3.19

4.24

3.89

3.03

3.01

3.34

:

1941

2 Years ago

1940

3.37

2.81

2.99

3.33

4.33

3.96

3.12

3.80

3.04

3.19

3.77

5.20

4.65

3.41

These

prices are




and 1,591,300 tons one

months last
v

the rubber program was

on

noted

16, page
1559.
/
:
Secretary of Agriculture Wickard on May 8 told the Senate sub¬
committee that the present pro¬
April
v

columns

these

in

,

,

for use of grains to make
alcohol for synthetic rubber pro¬
gram

reported in our is¬

remarks were
sue

his

be expanded;

should

duction

1870.

of May 14, page

Group To Study
Wage Stabilization

Govt.

committee of four
governmental officials has
been appointed to decide whether
a further directive from President
Roosevelt
is necessary
to deal
with the problem of wage dis¬
putes that do not come before the
National War Labord Board. This
was revealed on May
19 by Wil¬
liam H. Davis, head of the NWLB,
who is a member of the group,
together with Secretary of Labor
Perkins, Price Administrator Hen¬
derson and War Manpower Com¬
A

special

.

week."

and 72.0%
the year 1929.
latest month for

year,

above that for
March is the

Board.
at $38.14 in
higher than
in February, 19.9% higher than
in March of last year and 33.6%
higher
than
the 1929 level.
Since May, 1940, the month be¬

by the Conference

Weekly .earnings
March, were 1.6%

,

fore

lat¬

promises

to

continue

some

in Europe

"real"
somewhat less by
reason of the rise in the cost of
living.
Hourly
earnings advanced 0.9% in March to $.888.
At that figure they were 15.5%
above those of March; 1941, and
50.5% above average hourly receipts in 1929.
^

i

'

/

The rise in his

earnings

This trend

for

week, his earn¬

is 39.8%.

production and enter

market for steel.

per

outbreak of hostilities

increasing as more manu¬ :v
facturing plants complete conver¬ /
the

program was

ings have risen 37.8%. The total
rise since the month before the

promise

sion to war

defense

got $27.67

delivery at lower
priorities find the margin steadily
narrowing. At the same time or¬

to

our

initiated, when the wage earner

is

Canadian

illustration and
not necessarily as his view of a
standard wage in the United
States.
He reiterated that he
regarded absolute freezing as
"a very tragic thing because it

-

.

used the

He said he

standard

| which data are available for the
25 industries regularly surveyed

ders are

computed from average yields on the basis of one "typical" bond (3%£
coupon, maturing in 25 years) and do not purport to show either the
average level or thi
average movement of actual price quotations.
They merely serve to illustrate In a more com¬
prehensive way the relative levels and the relative movement of yield averages, tho
ter being the true picture of the bond market.
t The latest complete list of bonds used
In computing these Indexes was nub»
lished in the Issue of Oct. 2, 1941, page 409.
;
.. .
. ,
♦

month ago,

,

3.42

1 Year ago

80,000 tons to
.
.
f

/^ones'/ipreviousi testimony

.

year ago.
2.97
"Steel"
of
Cleveland, in
its
2.97
2.97 summary of
the iron and steel
2.96
2.95 markets, on May 25 stated in part:
V 2.95
"While production and shipment
2.98
of steel are at an unprecedented
3.01
3.02 rate, new records being made con¬
2.99 stantly, demand is outrunning best
2.99
efforts of the industry and war
2.98
are crowding out
2.98 requirements
2.97 practically everything else.
* 2.97
"Critical ratings are moving up
2.97
2.97 steadily and producers who have
2.96
been forced to refuse all business
2.99
rated below A-l-a are receiving
3.02
2.95 directives which'jeopardize com¬
3.08 mitments even at this top rating.
2.82 Steelmakers who have been able

3.25

1941
1941

May 25,

3.93

4.27

_

High

May 26,

4.28

3.29
3.30

3.34

9

2

High

3.29

2.97

3.34

16

Low

2.98

2.84

3.34

23

v.

2.83

3.34

30

Mr.

•

3.15

3.33

3.37

6

3.30

3.00

3.38

13

2.98

2.87

3.38

20

2.84

3.38

27:„w.——

ber

present plans for
200,000 tons.

In

2.97

3.00

—

farm

.

3.35

?
'

.

At

converting

for

"Real"
weekly
earnings
of
the production of
manufacturing
workers in the
addition, 3% of
mission Chairman McNutt.:
:
113.31
110.34
95.92
United States, total man hours
its equipment is earmarked for
114.08
In his seven-point program for
110.88
97.47
worked, and total payrolls rose in
112.75
near-future war work, according
109.60
95.92
control of the war-time cost of
March to levels never before at*
116.41
112.56
97.78
to
the
Automotive Council for
111.62
109.42
95.62
tained,
according
to
statistics living, the President said that "all
War Production."
stabilization
or
adjustment
of
compiled monthly by the Confer?
The American Iron and Steel
wages will be settled by the War
ence Board, New York.
96.69 110.88 112.93 Institute on May 25 announced
Labor Board machinery" but'it is
Under
date of May 20, the
that telegraphic reports which it
estimated that the Board handles
86.78 105.69 106.92 had received indicated that the Board stated:
"Real" weekly earnings, that less than 10 % of the" industrial
disputes seeking wage increases.
operating rate of steel companies
is dollar earnings adjusted for
Mr. Davis said that under these
having 91% of the steel capacity
changes in the cost of living, in¬
Corporate by Groups
of the industry will be 99.6% of
circumstances it is
difficult to
creased 0.5% from February to
R. R.
P. U.
Indus
stabilize wages and clarification
capacity for the week beginning
March.
The March level was
,4.00
3.12
2.98
of the President's1 order is needed
May 25, compared with 99.2% one
4.00
3.12
2.98
7.7 %
higher than in
March,
4.00
3.12
2.98
week ago, 98.9% one month ago
to deal with the problem of wage
1941, and 39.1% higher than the
4.00
3.13
2.98
and 98.6% one year ago.
The rate
increases that are. granted volun¬
4.00
3.13
2.98
average for 1929.
r
for the current week equals the
3.98
3.13
2.97
Man
hours
rose
1.7% in tarily by employers which might
3.97
3.13
2.98 all-time peak figure established
have an inflationary effect.
Ad¬
March above the February fig¬
3.97
3.12
2.98
two weeks ago and represents an
vices as to his comments are taken
3.97
3.12
2.97
ure, and
exceeded the March,
increase
of 0.4 points or 0.4%
as follows from Washington As¬
3.97
3.12
2.97
1941, level by 20.0%. The March
3.97
3.12
2.98
from the preceding
sociated Press accounts May 19:
week.
The
/
figure was 13.8% above the 1929
3.97
3.13
2.97
Citing Canada's wage
con¬
operating rate for the week begin¬
3.96
3.13
2.97
level.
ning May 25 is equivalent to 1,trols, Mr. Davis said:
3.96
3.13
2.97
Payrolls advanced 2.6% in
"We might say we don't want
3.96
" 3.13
2.97 691,800 tons of steel ingots and
March
over
February.
The
3.96
3.13
2.97
castings, compared to
1,685,000
any wage increases except for
March figure was 38.8% higher
3.07
3.13
2.97
tons one week ago, 1,679,900 one
those,
getting
below
$25 a
3.97
3.13
2.97
than that for the corresponding

3.35

4

Jan.

adapted more than two thirds of
automotive
manufacturing

3.35

_

5-,

Feb.

3.01

2.85

3.36

14

• *

2.85

3.37

18

-J,

4.29

—

16

:.A,

Baa

4.29

3.31

3.36

19

Mar.

A

3.31

3.01

3.37

20

Apr.

v

3.01

2.85

—

_

21

'

Aa

2.85

-_~

22

.

Corporate by Ratings
Aaa

3.37

25

-•

Individual

3.37

;23 :

■

on

Corpo¬

26

A

AVERAGESt
Closing Prices)

Avge.

;

Average

May

109.60

MOODY •S BOND YIELD

1942—
■-■

112.37

99.20

113.22

1940_

25,

May

Earnings
Unprecedented High

Real Weekly

already

equipment to

116.61

110.70

106.92

97.16

118.00

16
9

has

its

114.08

113.70

116.22

110.70

106.92

117.02
117.08
117.51

30

High

110.34

of the amount

110.70

6

Low

115.63

check

also disclosed
financed plants
grains and otherproducts into synthetic rub¬
would
be
increased- from
Secretary

that Government

supply is meet¬ high

106.92

27

High

completed.

"Current scrap

97.16

of material
by their use. The auto¬

—

6

Jan.

goods is

118.20
117.80

r17

Feb.

this week are

118.06
118.10

24——

Apr.

92.20

107.62

113.12

116.22

106.74

107.44

113.12

Again At Record High-War
Needs Increasing-More Plants Converted

Steel Production
War

making

other war materials.

.1,537,747 M,687,229
1,514,553
1,687,229
1,480,208
1,679,589
1,465,076 1,663,291

2,550,000
2,508,321'
2,524,066
2,493,690

for converting
distilleries to the pro¬
of -alcohol
needed for
explosives, rubber and
program

the liquor

1929 ;

1932

-,

that the War

Board will soon an¬

Production

The

1940

his testimony,

In the course of

Mr. Jones revealed

113.50

106.39

-

8:0

,

113.50

118.38
118.33

...

.1941

"i?.'•*, 1942
'A
V over 1941

alcohol in the

rubber production to bring it ih
line with the use of petroleum. :

% Change

3,348,608
3,320,858
3,307,700
3.273,190
3,304,602
3,365,208

—

9

May

-

May 2, '42

-

11.512.0
v
Kilowatt-Hours)

3,357,032
3,345,502

2——

May

}

Corporate by Groups

Corporate by Ratings •

118.40

26
25

•

4

Apr.

Avge.

Corpo¬

Bonds

28

Apr.

/ .V-'.'... '

21

Mar.

'

14—3,257,444

Mar

May

V. S.

Averages

May

:

.1942

Apr.

the following tables:

1942—

.

Mar.

bond prices and bond yield averages are

Moody's computed

Dally

..

..

to 1,000,000 tons
under way for

and that plans are

(Thousands of
,

Week Ended—

given in

•*>*::

DATA for RECENT WEEKS

Yield Averages

8.7
10.2
10.1
17.0
3.3
20.1

v;;19.6

—

program

000 tons a year

:

May 9, '42
' •' : 7-8

-*1

8.4
9.3
8.2
16.7." \

19.2

Pacific

Labor Board.

Moody's Bond Prices And Bond

$;7

Coast—

Rocky-Mountain——

an

—,

16, *42

?<-

-

8.2
•/, 9.0
8.2
.15.4 Vt

Industrial

Central

The Board states

of

,9.8'-

•

&

rubber production
be increased from 800,-

using more grain

INpREASE OVER ; PREVIOUS YEAR ;
'
,
-Week Ended-

Geographical Divisions— May 23, '42 ; May

Atlantic

Middle

Senate

a

tion's synthetic

.

'•

England—i—s

New

74

k

39,250

43,000

lockout.

*One of this number was a

i;

.

worked-

involved—————A

men

1942,
the

April, 1941
1,031,000

told

sub-committee on May 21 that he
had recommended that the na-

industry of the United States for the week ended May 23,
3,379,985,000 kwh., which compares with 3,040,029,000 kwh. in
corresponding period in 1941, a gain of 11.2%.
The output for the
week ended May 16, 1942, was estimated to be 3,356,921,000 kwh., an
increase of 11.5% over the corresponding week in 1941.

was

the Board gives a

Commerce, Jesse
Agriculture

of

Secretary

Jones

of electricity by

power

detailed
picture of the strike situation as it affected war production during
April, compared with March of this year and April of last year:

Number

that the production

Synthetic Rubber

mm
1

current weekly report, esti¬
the electric light and

Electric Institute, in its

The Edison

mated

nounced on May 14.

table made available by

Jones Calls For More

For Week Ended/May 23,1942
Shows 11.2% Gain Over Same Week In 1941f

V-VMan-days lost from war production due to strikes in April of this
year were 8/100 of 1% of total man-days worked during the month,
William H. Davis, Chairman of the National War Labor Board, an¬
The following

CHRONICLE

Electric Output

April

Industry Strikes Increased In

War

'

COMMERCIAL & FINANCIAL

an

as

down heaviest on

'

bear

would
■

the lowest income

groups."

Moody's Daily
Commodity Index
May 19
May 20

Tuesday,

Monday,

Year

.1941

May

weeks

Month

231.7
231.9

26
May

ago,

12__^__^__

231.7
196.3

April 25__
May 26_

ago,

ago,

High—Sept.
Low—Feb.

1942

___
.

May 25_____

Tuesday,
Two

22________
23_
:i.~

May

Saturday,

___

21____.

May

May

Friday,

231.5
232.0
231.5
231.5
231.8
231.8

____

Wednesday,
Thursday,

Low—Jan.

219.9

9

171.6

17

High—April

9
2

>

234.0

___—220.0

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4076

To Encourage Redemption
Of 1941 Loan Wheat

Construction

Weekly Coal And Coke Production Statistics

current week

The bituminous Coal Division, U. S. Department of the Interior,
in its latest report states that the total production of bituminous coal
in the week ended May 16 is estimated at
„

The Department

.

announced

of Agriculture

May 20 that farmers
be permitted to redeem farm-

will

stored

on

wheat

loan

under

held

In

.

the

wheat

the

basis

1,262,000
decrease of 4,000 tons, or 0.3%, from the preceding week.
compared with the output in the corresponding week of 1941,
however, there was an increase of 390,000 tons (about 45%).
The
calendar year to date shows a gain of 16.7% when
compared with the
corresponding period of 1941.

feed

the

determined

is

of

The U. S. Bureau of Mines reported that production of
Pennsyl¬
vania anthracite for the week ended May 16 was estimated at

De-, tons,

on

the

Corporation's ;
release price for corn, the re-

a

The Bureau of Mines also reported that the estimated
production
ademption price shall be the Cor-; of byproduct coke in the United States for the week ended
May 16
poration's release price for corn showed a decrease of 2,100 net tons, when compared with the
output
at the producer's delivery point for the week ended
May 9.
Coke from beehive ovens increased 23,but not less than 93c a bushel. 800 tons during the same period.
In

the

wheat

of

the

wheat

1941

UNITED

ESTIMATED

the

on

NET

STATES

PRODUCTION

COMPARABLE

WITH

TONS

DATA

loan

ON

OF

SOFT

Week Ended

cents

v

than

more

the

value of wheat.

1941

loan

ing that the wheat will be fed
the

on

farm

shall

livestock

to

No redemption

be

county

or

sale
unless the

permitted
committee

•

or

determines

that the producer redeeming the
wheat or the producer purchas¬

ing

the

wheat

livestock

-

Daily

poultry

or

the wheat

sufficient

has

——January 1 to Date
May 16,
May 17,
May 15,
1942

1941

1937

11,480

11,415

9,936

215,049

162,826

177,032

1,913

1,903

1,656

1,867

1,404

State

5,581

5,677

In

the

purchaser

fails to feed the wheat to live¬
stock

poultry, he shall be required to pay to the Corporation an amount equal .to the

•

,

;

or

difference

•
.

the

between

for

'"includes

production

and

.

the

wheat

which

amount; at

was

redeemed.

The plan further provides that
producers
who
redeem
their
1941 wheat be

:

the

tain

permitted to

7-cent

re¬

storage allow-

^

1941 wheat if

ance on

they have

received the allowance, and that
the
7-cent
allowance
be
de-

ducted

.

in the

from redemption
event

price

they have not

re¬

ceived it, and producers who re¬
deem 1940 wheat be permitted
to

retain
the
7-cent
storage
allowance advanced at the time

;

the loan was extended
;

and the

5-cent storage allowance for the
extended

of

purposes

period

dedlucted

be

; from the redemption price.

historical

119,168

comparison

and

114,205

f

New

provide

homes

public war housing
must be stepped up to

provide five times
third

a

previous

the

in

as

housing

Herbert

the- Federal

homes

as many

time

public

Commissioner

qf

war

the

workers

program
in

for

statistical

convenience

effort,

Federal Reserve April Business Indexes
Board of Governors of the Federal Reserve System on
May 23 issued its monthly indexes of industrial production, factory
employment and payrolls, etc. At the same time the Board issued"
its customary summary of business conditions.
The indexes for

address

Officials in' Baltimore
This

unprecedented

1939,

page

|

construction is necessary, he said,
to provide shelter and decent liv¬

ing conditions for the great army
migrating workers demanded
by
the
war
industries.
These

of

workers, it is added, must be pro¬
vided. adequate housing if our
Army and Navy and Air Forces
are

to

be

sustained and

prevail. "The gravity of

to

are

our

f-

emphasized by three factors—the

shortage of materials, the lack of
transportation,
public

and

recognition

the
of

lack

the

of

high production rates

faster schedules."

; •

•-




and

-v

•

year

ago,

is

not

directly

competitive

with

coal.

industrial production and freight-car
= 100
for all other series

Adjusted for

loadings;

Without
—Seasonal Adjustment—>

.

Total

Mar.

April

April

1942

1942

1941

1942

Mar.

April

1942

1941

(174

172

144

(172

168

Total

(181

180

153

(180

177

153

(234

230

180

(234

227

181

(138

139

131

(137

137

130

(130

127

95

(125

118

PRODUCTION

.

OF

PENNSYLVANIA

ANTHRACITE

AND

96

(115

125

103

(131

125

117

COKE

§May 16,

Residential

United

May 17,

May 16,

1941

1942
1,266,000
1,203,000

May 17,

1942

May 18,

1941

United

'Includes

operations.

1,180,500
and

washery

126,600
t

1,182,600
coal,

dredge

colliery

(Excludes

fuel.

WEEKLY

ESTIMATED

2,918,400

1,958,400

and

22,747,100

coal

shipped

(Comparable

data

PRODUCTION

OF

(In Thousands of Net

by

$

truck

t

from

available.

not

u

authorized

SSubject

COAL,

BY

STATES

estimates

based

are

on

railroad

—Week Ended—

May 2,

May 10,

1942

1942

1941

'

Vi'!\

•'-4

—

vw.

4

May

May 11,

g

1940

May 8,

avge.

1937

3

3

63

269

73

117.8

182.9

134.7

»

217.3

149.9

117.7

11

18

8

115

81

81

79

"Data

not

available.

yet

((

1

tt

1,241

880

677

516

347

270

223

394

41

48

25

44

21

83

89

69

780

797

208

245

118

126

19

24

17

47

4

3

2

1

12

50

42

49

27

42

21

15

19

26

23

18

28

15

(109

76

and

732

558

408

450

contract

department

shown in

indexes

based

2,468

1,882

1,953

153

117

1942

1942

1941

198

*

-

Open

hearth

&

Electric

♦

194

170

217

216

192

180

172

179

180

172

473

483

333

~

483

473

smelting

265

194

(274

265

194

327

196

(345

327

206

(182

184

183

(183

185

184

(155

products-

147

145

(155

147

145

184

164

185

184

221

(195

208

221

148

147

145

148

147

56

121

(134

134

132

(133

129

130

6

15

15

22

Lumber

(127

128

128

(127

120

128

49

36

31

74

Furniture

(149

145

139

(144

147

135

413

335

284

231

250

(160

171

141

(159

142

140

26

23

26

161

23

28

2,300

2,200

1,928

1,652

913

783

587

543

862

Wyoming

124

125

70

80

56

110

1

1

1

((

((

""5

11,415

11,260

9,193

7,818

7,014

10,878

829

935

952

and

1,932

coal

^Pennsylvania anthracite

1,266

1,321

,

products

Stone, clay, & glass

1,380

904

Lumber

44

2,314

Total bituminous

Cement

12,681

12,581

'i

10,022

8,753

"Includes operations on the N. & W.; C. & O.;
and on the B. & O. in Kanawha, Mason, and

Virginian; K. & M.; B. C. & G.;
Clay counties. (Rest of State, including

Panhandle

District

and

Grant,

Mineral,

Tucker counties.
(Includes Arizona,
§Data for Pennsylvania anthracite from pub¬
lished records of the Bureau of Mines.
HAverage weekly rate for entire month.
•■♦Alaska, Georgia, North Carolina, and South Dakota included with "other Western
States." ((Less than 1,000 tons.
"
*
,/

products.—
—

188

139

43

41

142

43

(151

—

glass
products

plate

and

152

150

(151

152

169

161

177

169

175

158

170

175

158

*

Shoes

kip

Manufactured

leathers

152

128

119

126

110

139

119

140

119

96

97

117

96

116

119

(124
(124

«■
—

—

(118

food

flour

21

weeks

since

——

under

a

May 21.

week ago

reported by
The report also said:
as

Public

construction

137

123

121

112

110

92

98

103

144

126

(133

131

119

138

122

(121

121

107

»

150

134

155

137

154

above

109

106

114

(125

126

124

98

103

113

106

105

107

126

121

ft

122

119

ft

116

119

(106

117

120

(105

112

118

124

120

«

131

118

ft

130

113

117

ft

115

160

133

'160

160

«

*

oil

a

Kerosene

and is 1,367% over the 1941 week, but 3% under the preced¬
ing week.
■
The

current

week's

total

73% increase over
construction,
year, but public work,
ago as a result of the

129,000,

a

Private

boosts

1942

construction

to

$3,773,-

the volume for the 21-week period in
$295,303,000, is 51% below the period
$3,477,826,000, is 120% higher than a
205% gain in Federal construction. ;

117

122

122
v

119

133

69

502

476

151

134

150

151

134

161

133

(171

165

136

(125

Chemicals

476

150

Bvnroduct

122

87

69

Minerals—

122

86

(120

+ 178

146

22

(150

140

Anthracite

(114

113

71

(122

116

76

Crude

(105

114

113

(107

115

116

(156

154

149

(158

98

149

217

215

23

210

Fuels
Bituminous

coal

petroleum

Metals
Iron

ore

199

134

"Data

not

yet

available.

V::-;;,

236

(175

165

156

119

ft

131

(1935-39

121-

LOADINGS

average

=

100)

160

122

200

168

Grain

119

113

101

Livestock
Forest
Ore

38

175

120

100

102

96

90

159

convert

149

130

159

282

266

143

130

142

102

81

80

coal

and

77

miscellaneous

by .213 and miscellaneous by .548.

'

92

Indexes

to

82

149

^

•

€

130

73

218

141 '■

Miscellaneous

Note—To

93

97

7"

267

produc

_

Merchandise, l.c.l.

coal

-

125

176

137

117

135

45

Coke

—.

-

(Preliminary or estimated.
FREIGHT-CAR

Coal

18

152

162

(170

year,

ume,

r'.\

120

(168

Beehive

last

however, it is 3% under the high total of last week.
Private
construction is 44 and 46% lower, respectively, than a year ago and
a week
ago.
Federal work is responsible for the week's high vol¬

146

168

114
118

502

oil

Copper

is 479%

157

106
121

Lead

week

143

162

109

(119

120

Coke

■

for the current

125

101

,

—

Lubricating

"Engineering News-Record"

voluipe for the month.

99

129

160

refining

Gasoline

The high totals of the opening three weeks of May bring con¬
struction to $881,345,000 for the period and insure a new record

96

116

*

Petroleum

beginning of the
;year that the total has topped the $200,000,000-mark.
The week's
volume is 315% higher than in the corresponding 1941
week, but

*

(138

foods

products —
Paperboard
—
Newsprint production
Printing and publishing
Newsprint consumption
Petroleum and coal products
Paper and

the

91

98

.

—

manufactured

(136

*

(141

products

———

packing

Other

148

(125

109

ft

leathers

—

Meat

♦

115

.

hide

Goat and kid leathers

Wheat

152

120
126

products

148

(121

textiles

Cattle

Up 315% Compared With Year Ago
the

;

161

170

Fuel

in

150

177

_

eighth time

i

142

deliveries

Tanning

Engineered construction volume for the week totals $216,513,-

:

.

139

43

consumption

Leather

California,-Idaho, Nevada, and Oregon.

the

141
'v'

Rayon

and

Engineered Construction For Week

161

Cotton

12,810

7,966

—_

—

Polished
Textiles

Calf and

|. Total, all coal—

-

164

208

145

*

185

(195

smelting

Copper deliveries
Zinc shipments

%

333

(274

equipment

Non-ferrous metals &

Zinc

181

(345

Machinery
Transportation
Copper

April
1941

£

198

170

216

179

Bessemer

1942

(198

192

194

217

—

Mar.

1942

181

April

5

Virginia—Southern—

year

Without
—Seasonal Adjustment—

April

81

(West Virginia—Northern-

1941.

100)

418

Virginia—
Washington

last

=

5

'—

——

Utah—

on

multiply dur¬

PRODUCTION

Mar.

(198

steel

and

Steel

3,578

100

Chart Book,

3-month

on

91

Texas-

6%

store sales Indexes based on dally
non-durable manufactures and minerals

Federal Reserve

Statistics.

Labor

of

Manufactures—
iron

860

2,742

148

estimated.

or

manufactures,

index,

v*.;

—Seasonal Variation—

""14

14

752

2,884

Tennessee——

74

Adjusted for

57

27

Pennsylvania bituminous—

106

(107

(1935-39 average

183

44

57

North and South Dakota—.—.

108

118

by .379, non-durable toy .469, and minerals toy .152.

Bureau

679

5

Ohio

,129

(114

moving averages, centered
at
second month, of F. W. Dodge data for 37 Eastern States. ; To convert indexes to value
figures, shown in the Federal Reserve Chart Book, multiply total by $410,269,000,
residential by $184,137,000, and all other by $226,132,000.
Employment index, without seasonal adjustment, and payrolls Index compiled by

131

761

43

—

149
976

227

!

durable

in total

89

160
977

New Mexico-——

136

104

carloadings,

convert

points

Construction

1,292

430

—

112

124

April

430
,

—

136

(Preliminary

ftft

1,173

Missouri

To

to

—

*

168

1

i' i

143

66

1

—

Kentucky—Eastern
Kentucky—Western
Maryland
Michigan

000

*

122.0

(117

value

398

62

123

Indiana

the

127.7

123.2

INDUSTRIAL

391

Georgia and North Carolina.

♦West

147.4

*

144.3

2

71

Colorado.—

Montana

*

118.0

M

Department store stocks, value.

111923

386

——

Arkansas and Oklahoma

and

122.6

126.3

123.1

goods

Freight-car loadings
Department store sales,

indexes

May 9,"
State-

Iowa

135.0

146.9

*

goods

averages.

Tons)

:

134.7

*

goods

Nondurable

to

and State sources or of final annual returns from the operators.)

Kansas

93

136

*

Durable

2,431,200

carloadings and river ship¬
ments and are subject to revision on receipt of monthly tonnage reports from district

Illinois

99

147

Factory payrolls—

able

current weekly

Alabama

(99

(157

goods

Nondurable

Note—Production,

Alaska--—

80

121

„

Durable

revision.

(The

95

149

*

Total

1929

372,000 22,371,000 19,177,000 28,087,000
819,000 21,253,000 18,218,000 26,065,000

144,500

168,300

total—

States

(84

(140

other

Factory employment—

Total

total—

States

Calendar year to date

May 9,

1942
1,262,000
1,199,000

„

contracts, value-

Total

(In Net Tons)
Week Ended-

144

Manufactures—

(Minerals

Minerals

ESTIMATED

V

[

are

average

—Seasonal Variation—

Construction

facili¬

ties and standards needed to pre¬
serve

for

Industrial production-

^Revised.

situa¬

tion," Mr. Emmerich asserted, "is

average = 100

r-^ V;? I-1

(Subject to revision.

of

schedule

a

BUSINESS INDEXES

Nondurable

products
702).

petroleum

of

supply

Yearbook,

May 13.

on

month and

a

follows:

as

Durable

the

Housing

an

at the 10th annual meeting of the
National Association of Housing

f

110%

the

Emmerich

Public

Authority, declared in

any

construction

financing for the year to date, $6,811,776,higher than the $3,237,025,000 reported for the 21week period in 1941.
is

000,

Wool

To

195,721,000

for the week totals $26,448,000, an increase of 328% over the volume for the correspond¬
ing week last year.
The week's new financing is made up of $1,346,000 in state and municipal bond sales, $10,102,000 in corporate
security issues, and $15,000,000 in RFC loans for industrial plant
expansion.
'
M

103,700

week convertea into equivalent coal assuming
barrel of oil and 13,100 b.t.u. per pound of coal.
Note that most of

tOther Western States

Says Public War Housing
Schedule Must Be Speeded

202,126,000

9,305,000

purposes

April

The pro¬

V,

11,487,000

r,

13,331,000

lignite.

of

6,000,000 b.t.u. per

ducer having the loan may de¬
liver wheat not fed or sold as

.

207,208,000

10,380,000

22,452,000

1923-25

6,062

the

'feed to the Corporation on the
loan basis. 1
."
V

$216,513,000

212,506,000

March, together with comparisons for

tTotal barrels produced during the

loan

value,;, plus interest, plus the
storage allowance, plus interest,

•

1941

By-product coke—

the

event

May 21, 1942

$229,877,000
17,371,000

municipal—.—

1935-39

—

—_

rea¬

livestock

to

the

'

and

weekly

of

equiv.

output

i

poultry,

or
<

fed

and

May 14, 1942

Federal

All

a

week,

35,783,000

1,552

length of time.
Pro¬
purchasing wheat from •r Penn. anthracite—
f Total, incl. colliery fuel
other producers will be required
•(Commercial production
to agree
in writing that the I Beehive coke—
be

May 17,

fuel

sonable

will

OF

PETROLEUM

——

average

ducers

wheat

THOUSANDS

CRUDE

1942

utilize

to

feed within

as

last

$52,346,000
16,563,000

T

Public construction

(Crude petroleum—

Coal
;

SMay 9,

IN

OF

1942

mine

incl.

Total,

will be sold for such

or

purpose.

^Bituminous coal-

V

.

Producers must agree in writ¬

poultry

*May 16,
'

COAL,

PRODUCTION

'

value at the point of destination,
the redemption price shall be 3

week,

The

feed

the

price is determined

basis

•

where

area'

1941

,

construction

.

•

the

41New capital for construction

9,936,000.

When

where

area

price

the

plan

for

Private construction

an

mated at

volumes

are:

May 22, 1941
Total

increase of 65,000 tons, or 0.6%, over the output in the pre¬
ceding week. Production in the corresponding week of 1941 was esti¬

to

Commodity
Credit
Corporation
through June 30, 1942,at feed
wheat prices.
: Explaining
this
partment stated:

11,480,000 net tons, indi¬

cating

2043

203

139
92

,

131

103

points In total index, multiply
-•

t

Labor Bureau's Wholesale Price Index

Shows
of

Bureau

Labor

Statistics,

$ot subject to price ceilings, indexes for many other commodity
groups which are under control remained above their March levels;
these groups include hides and leather products, textile products,
ittel and lighting materials, house-furnishing goods, and miscel¬
laneous commodities.
While the Regulation went into effect for
transactions at wholesale on May 11, it is possible that prices of some
Commodities as reported during the week failed to show the full
adjustments which are required, the Department states. It adds:
As of April 28, 1942, just prior to the issuance or the General
V Maximum Price Regulation by the Office of Price Administration,
more than 52%
by value of all the commodities included in the
Bureau of Labor Statistics' general wholesale price index were
5
already subject to formal or informal price ceilings. • The new
£ Regulation brought under control an additional 25% of the commodifies included in this index as measured by their 1940 value,
; ? leaving
about
23%—principally
agricultural
products—still

^'Uncontrolled.

Exchange reporting changes in their holdings of
stock was made available on May 19.
Following is the
issued by

the

For

1

the principal groups
April 18, 1942, and

Jijay 17,1941, and the percentage changes from a week ago, a month
\ '

1942

1941

1942

98.7

98.3

84.6

—0.1

1942
+0.2

104.8

1942
98.6

1942

105.2

76.3

+ 0.3

—0.9

+

—0.4

+ 23.2

1941
+16.4

Eucyrus-Erie Co., common
>\
7% preferred
Case
(J. I.) Co., preferred™

products

Farm

i--.

104.3

104.0

98.2
119.8
97.3
78.8

99.3
120.2
97.3
78.7

products

99.9

98.6

79.7

—1.1

119.8

106.1

—0.3

97.2

97.0

82.4

78.6

78.1

75.6

+

103.9
110.0
97.3
104.6
89.9
99.5

103.9

103.9

98.1

+ 0.1

108.7

108.8

100.2

+ 0.1

89.6

89.6

79.4

100.1

-99.9

79.3

92.6
99.3

92.5

92.7

86.4

+ 0.2

+

0.1

+

7.4

99.1

98.6

87.2

0

+

0.7

+

13.9

97.4

97.3

96.9

86.5

—0.2

*95.9

-

Hides and leather

120.0

*97.2

Foods

j 95.8

95.6

95.5

87.3

+0.1

products
Fuel and lighting materials
Metals and metal products
*104.0
Building materials
110.1
Chemicals and allied products—
97.3
Housefurnishing goods
104.6
Miscellaneous commodities
90.2
Raw materials
98.9
Semimanufactured articles
92.8
Manufactured products
:
*99.3
All commodities other than farm
Textile

—

+

products

.

+ 12.9

0.3

+

18.1

+ 0.9

+

4.2

+

0.1

+

6.0

+

;/

0

0

+

0.1

+

1.2

+

9.9

97.1

97.1

83.7

0

+ 0.2

+

16.2

104.6

104.4

92.3

0

+ 0.2

+ 13.3

+ 0.3

+ 0.7

+ 13.6

—0.6

—1.0

+ 24.7

All commodities other than farm

products and foods—

+

0.4

+

9.9

31,241
10,907
3,235

_™_.

:

7% preferred
Chicago Yellow Cab Co., Inc., capital

'160
9,604

Century Ribbon Mills, Inc.,
Consolidated Oil Corp.,

Crucible Steel Co. of America. 5%

5V2V0

preferred

conv.

Davega Stores Corp.,

preferred

conv.

;

6,733
13,588
9,550
10,118
13,000
318,319
23,366
1,115
1,352

cumul. preferred--

™™_™.

common-......._......^;

(The), common

—

Department Stores, Inc., 414% conv. preferredFirestone Tire & Rubber Co. (The), common
:
Federated

cumulative A preferred

6%

Florsheim Shoe Co.

common.-

;■

General

Motors

Corp.,

4,149

$5 conv. pref
Gimbel Brothers, Inc., $6 cumul. preferred.

Gillette

Co.,

Safety Razor

Hanna

A.)

(M.

Household

Corp.,

Iron

International

Corp.,

common

Certificates,

Insuranshares
Interlake

The, $5 cumulative

Co.,

Finance

Inc.,

25,003
500

Corp.,

preferred BJ

5%

preferred A

Mead

Corp., The,
cumulative

$6

-—

Garden Corp., capital

Madison Square

$5.50 cumulative preferred
preferred A

Aviation

National

Department Stores Corp., 6%

Natomas

77,813

7,700

Co., common

preferred

Reliable

Stores

Corp.,

Republic Steel Corp., 6% cumulative convertible preferredSafeway Stores, Inc., 5% cumulative preferred——
—

cumulative preferred

Schenley Distillers Corp., 5%%
Sheaffer

L—

Superheater Co., The, common
Swift & Co., capital

Growers may

i
Vulcan Detinning Co.
(The), 7% preferred
White (The S. S.) Dental Mfg. Co., capital.
common

*

i

1—

make one pay¬

covering premium instal¬
ments for the first two of the

ment

embodied in
choose. The
Corporation is not permitted by

three

■

years

crop

the contract if they
law

to

for

payments
in ad-

such

accept
than

more

one

year

Collection of instalments

vance.

is

provided for by the commod¬
ity note, a part of the threecontract.

year

contract speci¬
protection
against all unavoidable hazards
such
as
drought, wind, flood,
insects, and other similar haz¬
Although the

fies

4,385

insurance

ards

16,300

96,850
77,967
1,086,123

78,005
1,079,300
5,000
2,025
1,283

-A-

capital

Corp.,

Fruit Co.,

United

The announcement adds:

5,503

15,300
4,156

Pen Co., common

(W. A.)

ture."

43,459
3,507
3,252
4,001

83,350

capital

Oil Co. of Delaware,

Seaboard

loan programs administered
the Secretary of Agricul¬

by

(12)
5,303
42,859
ib1 483
2,014
3,601

the

of

amount

any

(13)

Li

common

paid

not

are

to deduct
instalment
from his indemnity, if any; from
payments due him for cooper¬
ating in the national farm pro¬
gram; or from any commodity
loan
he
might obtain under
the

9,900

•

—

Plymouth Oil Co., common.—.
Radio Corp. of America, preferred B
Real Silk Hosiery Mills, Inc., 7% cumulative preferred

,

instalments

low^ the Corporation

19,100
1,700
78,253

900

—

about

be

,

when due/the insured grower,
under terms of his contract, al¬

1,842 (101
350 (11)

450
15,600

time.

harvest

will

dates

due

these

(9)

2,913

Generally,

from State to State.

"If

3,824
65,958
26,383
26,383
20,800

B

Mills, Inc., capital
Corp., capital

Mohawk Carpet

stalments become due will vary

25,143

3,834
63,253
25,301
25,301
19,800

common

Inc.,' common—

Laughlin Steel Corp., common

The dates in¬

payment is due.

(8)

common

common

Mining

Jewel Tea Co.,

8,216

15,765
100
7,497

(The), $5 cum. conv. pref.—
preferred

Goodyear Tire & Rubber Co.

instalment

each

date

the

fore

(5)

General Shoe Corp., common—

be¬

the cash equivalent on or

or

3,726 (6)
3,251
4,849
3,216 (7)
16,165
140
10,483

247,640
3,525

common

payable in wheat

mium will be

1,205

cumul. conv. preferred

Gaylord Container Corp., 5V2%

"Each instalment on the pre¬

10,350
8,453
11,700 (4)
318,459
25,166
1,015
1,294

1,175

convertible preferred

5%

;

(The), class A common

Trailer Co.,

Freuhauf

He added:

tion, explained.

34,800
7,300
7,443
14,388

13,500
5,000

common

Cuban-American Sugar Co., The, 7%

Transamerica

+12.4

+ 0.3

54,632
31,254

f

National
36.7

i

Belding Heminway Co., common.........
Co. (The), capital

Percentage changes to
May 16,1942, from
5-9
4-18
5-17

29,500

Borden

outlay for the entire insurance
period when the contract is signed,
Leroy K. Smith, Manager of the
Federal Crop Insurance Corpora¬

1,100
29,937 (2)
11,273
32,800 (3)
55,032
34,254
21,741
11,061
3,535
190
10,004

_

273,961
6,122

Barnsdall Oil Co., common—™.

"

5-17

pfd.__
'

5%

4-18

5%

Lines,

common

May 25 by the Depart¬

on

Agriculture.

•

13,983

9,464

preferred

Jones &

.

5-2.

5-9

1942
*98.5

Commodity Groups—

.

All Commodities

■

,1

(1926=100)

*

5-16

-K

Corp.,

6%

.24,065
1,746
1,057
19,905

_

i;

Indies Steamship

Gulf & West

Atlantic
Atlas

'

;

!

7%

cumulative preferred™

,5%

i,

52%

ago:

;

Corp.,

(Del.),

Co.

69,600
7,500
3,157
25,777
1,646 (1)
1,675
21,106

69,100
7,100
3,001

common

preferred..

preferred
5% cumulative preferred
preferred™
Associates Investment Co., common
ki,
Viscose

&

Armour

,brought under control for the first time under the new Regulation,
—was only slightly greater—averaging 27 %.
The products which
remain exempt from control subsequent to the issuance of the
General Maximum Price Regulation rose 52% on the average in
the same interval.

ago and a year
Of;':

Co.,

6%

6%

American Ice Co.,

American

Detroit Edison Co.

iThe following table shows index numbers for
of commodities for the past three weeks, for

Report

American Home Products Corp., capital

:

.

Steamship

American-Hawaiian

nounced
the

304,299
5,003

preferred

5%

Corp.,

American Hide & Leather Co.,

12, 1939, to April 18, 1942, was about 25%.
The increase
during the same period for the additional commodities which were

-

Reported

in

Mills, Inc., common..
Stores

time

first

Payment of
premium in annual instal¬
ments
(usually
about
harvest
time) is permitted, thus obviating
the need for an immediate cash

Shares

292,837
4,103

Stock—

Company and Class of

Allied

wheat growers
this year was an¬

offered

contract
the

for

plan

payment

three-year crop insurance

new

ment of

;

Per Latest

Previously

Allied

;Aug.

.

,

Shares

controls of one kind or another

-

reacquired
tabulation

the Stock Exchange:

V'.

of commodities which were subject to direct
prior to the issuance of the General
Maximum Price Regulation, the average increase in price from

i.Vr

compilation of companies listed on the New York

The monthly

Stock

deferred

A

the

S.

U.

Crop Insurance Payments

Of N. Y. Stock & Curb Listed Firms

May 22 that in the first week during

on

Defer Wheat

Farmers May

Changes In Holdings Of Reacquired Stock—

Slight Decline In May IS Week

Department of Labor,
which wholesale
markets were governed by the Office of Price Administration Gen¬
eral Maximum Price Regulation the average level of wholesale prices
showed little change.
The Bureau's comprehensive index of whole¬
sale prices of nearly 900 commodities for the week ended May 16
stood at 98.5% of its 1926 average.
This, says the Department, was
jhore than 1% above its highest level during March, 1942, the base
period stipulated in the Regulation. While part of this increase since
March reflects higher prices for farm products and for certain foods
The

announced

Thursday, May 28, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

2044

for

three

growers

years,

cancel the last year of the
insurance upon written notice
to their local AAA committees
may

5,300
2,175
1,338

on

the

before

or

final

day for

contracts during the

accepting

*

,,.1 * Preliminary.

NOTES

.

Fertilizer Ass'n Price Index Lower

I

prices was halted last week, according to the wholesale price index
compiled by The National Fertilizer Association and made public on
May 25, which was fractionally lower.
In the week ended May 23,
1942, this index stood at 123.0% of the 1935-1939 average, compared
with 128.1 in the preceding week, 127.7 a month ago, and 106.8 a

shares disposed of

243,914

,(6)

retired.

shares

5,000

(8)
(9)

In Rationed Articles

1,774 shares retired.
(11) 30 shares acquired; 130 shares retired.
(12) 7,200 shares acquired and retired.
(13) 800 shares acquired and retired.
703 shares acquired;

Corporation

The

due

Exchange

Curb

New York

from,

■

—

—

—

declines counter-balancing price advances.

Blue

During the week price declines and price advances were

evenly

advancing and 12 de¬
16 advances and 15 de¬

balanced with 12 items included in the index

clining; in the preceding week, there were

clines; in the second preceding week there were

21 advances and 4

WEEKLY WHOLESALE COMMODITY PRICE INDEX

500
,359
9,156

■

-

Cottonseed

Oil

(George A.)

(Henry)

Ago
Apr. 13
1942

Klein

(D.

Knott

Corp.,

Mav 24
1941

__

_

_

—

_

_

-

participating

Inc., common

Co.,

;

101.1

Merritt-Chapman & Scott Corp, 6V2%

Michigan

163.0

163.0

159.3

120.8

Midland

138.1

137.7

102.9

191.4

193.3

121.4

117.2

113.9

94.3

133.0

133.0

100.9

187.4
115.1

Machine Tool

Monarch

commodities

L

«

Share Corp.

106.5

B

Chemicals

and

.3

Fertilizer

materials

.3

Fertilizers

.3

Farm

—

drugs

—

:

—

__

_

119.8-

machinery

—

104.1

Selected Industries,

116.6

Seton

120.7

118.7

118.7

107.1

5%

115.3

101.1

fOroock

104.1

*

103.4

151.7

120.7

120.7

_

Seeman

104.4

151.8

151.8

115.0
128.3

-104.4

'.

materials

104.1

99-3

105.0

^Indexes

combined

All

groups

on

1926-1928

base

—

were:

May

23,
......

1941,

83.2.

,

—




-

-

128.0

1942,
:r,

123.1

99.7.;

• -

May

127.7

16,

106.8

1942,

99.8

.

.

——

Brothers, Inc., common—;—_—

Leather Co.,

Trunz,

second

—4—

"

———

Inc., 6% first preferred—
preferred—————————

Inc.,

& Co.,

Inc., capital

common

Lamp Works,

—

;—————
—

——

Inc., 80-cent

convertible pref.—

'

Common

United

-

——

Profit-Sharing

Corp.,

common—i--

Utility Equities Corp., $5.50 div.

4,236

—

18,350
16,434
28,129
7.604
314

prior stock—r—++-+•

,

.

18,500
16,444

37,129
-2,604"
315

8,590-:-r~+- 8,790

one

dealer

incurred

nary course

a

in

to

the

reason¬

the

of business.

ordi¬

A

rea¬

sonable allowance for transpor¬

storage,

costs,

servicing,
carrying charges

be included in the loan
purchase price." •
may

. .

None '
11,809

139,281
104
304
19,700
/ 20,000
2,800 •3,300
6,200
,.7,500
None
.25
None" • *.
50

Sterchi Bros. Stores.

(S.)

insurance and

139,081

Inc., $5.50 div. prior stock—
common

-

4,226

Oilstocks, Ltd., capital

TUng-Sol

••'£;"

:

——'i—_

.—

128.3

149.5

8,100
None
6,000
14,746

—

«

of Maryland, A preferred

common

128.1

127.9

24,000
pref

common

Oil Co., common-

Niagara

115.3

—

Co.,

Navarro

149.5

Building

1.3

117.4

119.5

Bumper Corp., common
Corp., $2 convertible

article or
amount equal to

such

?

495
1,600
3,543
None
8,200
1,312

900 ■
3,243

—:

an

to

to

such

extent that the cost is

14,989
8,358

A preferred

any

„

14,155
8,058
None

+

cost

able

6,945

:—

for

commodity
its

rationed

of

commodities)

or

secure

20,884

——

substantial

(a

handling

articles

tation

6,545

•_

Mock, Judson. Voehringer Co., Inc., common

Oil

.;

20,800

r
—

__L__
—

,

basis which will

dealers

the

in

;

None

—

—

common

Mangel Stores Corp., common—
$5
convertible pref
-

enable

purchases will

or

a

on

17,333
1,000
573
8,986
10,447
11.866
212

.——

A

111.5"

Metals

24,

common

Inc.,

125.6

v

Miscellaneous

7.1

V

Emil)

-——

138.0

Textiles

4,6.1

May

Co.,

& Co.,

8,486
10,588
13,516
51

—
—

139.1

Fuels

8.2

lpO.O

——

1942

Livestock

il08

•

,

Products

Grains

'

-

117.3

+

Corp.; common

His

Jones.

part of whose business consisted

12,800
6,244
2,915

700
570

pref

137.8

_

Cotton

V,£,

.

prior

125.3

Fats and Oils

Farm

:■

Petroleum

Central

Crown

$3.00

Corp.,

—

common

1942

"&3.0
r:+

Cooper-Bessemer

Ago

Week
Mav 16

Foods

£•$5.3

tO.

—.—-

common.—

Inc.,

139.1

Total Index

"10:

Rosenberger,

Jesse

loans

be made

356,656

.

11,300
5,944
2,465
7,775
72
16,025

—

common

Corp. of America,

&

Year

Month

Preceding

Week

May 23

Group

Cohn

pref

conv.

"The

Report

None
309
8,931
356,644

-

Interstate Hosiery Mills, Inc., capital—

Latest
:

Catalin

Holt

100]

%

Each Group

Beat's to the

Bourjois, Inc.,

Fuller

Compiled by The National Fertilizer Association
=

Ridge Corp., $3

common

Dejay Stores, Inc., commo *
Dennison Manufacturing Co., A common—
Detroit Gasket & Mfg. Co., 6% preferred

declines.

[*1935-1939

Works, Inc.,

commodities which

or

announcement said:

Per Latest

Reported

—

■

or

Commerce

of
Shares

Shares

Previously

'■

Art Metal

Finance

prepared to buy
to make loans to, dealers
is

,

issued on May 14, the follow¬ have been rationed, it was an¬
securities which have reported nounced on May 17 by Secretary

-

::

Reconstruction

The

-v

result of price

1943

RFC To Assist Dealers

Retired.

(10)

principally to rather marked declines in the price of some farm ing list of issuers of fully listed
products.
Livestock quotations were higher but declines in grains changes in their holdings of reacquired stock:
and cotton were more than sufficient to lower the farm product group
v
index fractionally,
The textile price index declined to the March
Name—
;
,
levels, due to a drop in the price of raw cotton.
The index of mis¬
Air Investors, Inc., convertible pref.——
—
cellaneous commodities was lower, reflecting price declines for cot¬
American General Corp., $2.50 div. ser. preferred—
tonseed meal and linseed meal.
The fertilizr materials group moved
$2 div. ser. preferred
Common
"
to higher levels last week as a result of an upturn in the price of
——dried blood.
The food index remained unchanged last week, the American Writing Paper Corp, common

'

bonus plan.

2,300 shares acquired and retired.

in articles

slight drop in the all commodity index last week was

The

contract
the

on

wheat crop.

,

through operation of employee
■
f:

(7)
;

year ago.
•

....

„

contract

one-year

written

be

-

commodity

trend in. the general level of wholesale

retired.,
disposed of.

8,614 shares acquired; 252,638 shares

(2)

i(3) 5,100 shares acquired; 1,800 shares
(4) 1,300 shares retired.
(5) 1,435 shares acquired and retired.

j

will

the

of

year

period. i No

800 shares acquired.

900 shares retired;

(1)

The rising

second

Inquiries

or

and

.applications

should be made to

the RFC Loan

Agency
the

.

of the

district

in

which

applicant is located.

Such

purchases

and

loans

will

be made under the Act approved

by
11.

President
This

designed
dealers

Roosevelt

is

the

to

in

bill

provide

and the House

30,

as are

passed the Senate

indicated
page

relief

for

automobiles, tires and

such other articles
It

on
May
primarily

in

on

rationed.

April 27

April 28, as

these

1712.-

on

columns
•• ■

was

April

Volume

155

Revenue

Treasury Amendment

Freight Car Loadings During Week
Ended May 16,1942 Totaled 839,652 Cars

On War Bond Reissue
In
to

making available

banks

eral

in

the

Reserve

New

May 19

on

York

District

Fed¬

of

copies

Second

Amendment, dated April
20, 1942, to Treasury Department
Circular No. 530, Fourth Revision,
entitled
Regulations
Governing

United States

Federal

Savings Bonds, the

Reserve

Banks

of

New

York points out that it is the pur¬
pose of
vide:

the amendment to

pro¬

(1) That a United States Sav¬
ings Bond registered in the name
of-one person alone in his own

.right,

to

which one person
shown to be entitled in his

is

or

right,

own

appropriate, re¬

upon

quest (Form PD 1762) by such
person, may be reissued in the
name
of the owner together
with that of another individual
as

coowner; and

reissued

the

the

with

designated

name

beneficiary

of
as

coowner.

Allan

Sproul, President of the
Reserve Bank, also says:
In addition, the
Treasury De¬
partment

has

bank to add

authorized

this

beneficiary to a
States
Savings
Bond
registered in the name of one
person alone in his own right,
upon the execution by such person of an appropriate
request
a

United

on

Loading of revenue freight for the week ended May 16, totaled
839,052 cars, the Association of American Railroads announced on
May 21.
The decrease below the corresponding week in 1941 was
21,750 cars or 2.5%, but the increase above the

Form PD 1077-A.

159.987

was

preceding week, and an increase of 21,554cars above
the corresponding week in 1941.
Grain and grain products loading totaled 34,964 cars a decrease
of

181

coowner

in

accordance

(a) (4), or
a request
(on Form PD 1077-A)
to add a beneficiary, may be
signed by a minor who is of

sufficient

competency

and

grain and grain products loading for the week of May 16
totaled 22,016 cars an increase of 201 cars above the preceding
week, but a decrease of 4,016 cars below the corresponding week
1941.
Live stock

loading amounted to 11,994 cars, an increase of 296
above the preceding week, but a decrease of 942 cars below

cars

the corresponding week in 1941.
In the Western Districts alone,
loading of live stock for the week of May 16 totaled 9,056 cars, an
increase of 26 cars above the preceding week, but a decrease of 946
cars below the corresponding week in
1941.
Forest

products loading totaled 49,854 cars, a decrease of 764
cars below the preceding week, but an increase of 8,512 cars above
the corresponding week in 1941.
Ore

loading amounted to 83,793 cars, a decrease of 3,007 cars
preceding week, but an increase of 7,245 cars above the
corresponding week in 1941.
below the

Coke

amounted to 14,046 cars, a decrease of 270 cars
preceding week, but an increase of 934 cars above the
corresponding week in 1941.
reported increases compared with the correspond¬
ing week in 1941 except the Eastern, Allegheny, Northwestern and
Central Western, but all districts reported increases over 1940.
1942

weeks

weeks

of

Four

weeks

Four

March

of

2,866,565

2,465,685

3,066,011

2,489,280

3,351,038

weeks of April

3,215,565

3,122,773

—

1940

3,454,409

3,171,439

February

1941

3,858,273

January

2,793,630

2,495,212

of May 2

858,904

of May

9
16

Week
Week

Federal Reserve Bank

Week of May
Total

;

—

S-

——

Copies of Form PD 1762

en¬

titled

"Request for Reissue of
United States Savings Bonds to
Add

Coowner

a

or

to

Name

is

LOADED

FREIGHT

AND

Present

Beneficiary
as
Coowner" and copies of Form PD
1077-A
entitled
"Request for
Adding a Beneficiary to United
States
Savings
Bond(s)
In¬
scribed * in One Name Alone"

of the. freight carloadings for

RECEIVED FROM CONNECTIONS

will be furnished upon

request.

Activity In The Cotton

Spinning Industry for April
The Bureau of the Census an¬
nounced

May 20, that accord¬
ing to preliminary figures 24,073,448 cotton spinning spindles were
in place in the United States on
April 30, 1942, of which 23,100,202
were operated at some time dur¬
ing the month, compared with 23,096,479 for March, 23,077,722 for
on

February, 23,077,352 for January,
23,063,112 for December, 23,069,346 for November, and 22,807,432
for April, 1941.
The aggregate

number of active
spindle hours reported for the
month was 11,462,971,594.
Based
on
an
activity of 80 hours per
week, the cotton spindles in the
United States were operated dur¬
ing April 1942, at 135.3% capacity.
compares, on the
basis,
with
134.3%
for
March,
135.9%
for
February,
136.9% for January, 124.0% for

December, 129.4% for November,
and

120.1%

for April, 1941.

The
average number of active spindle
hours per spindle in place for the
month

was

476.




588

464

1,653

1,881

1,895

1,318

2,846

2,846

311

258

165

299
408

200

214

150

1,200

1,850

1,082

1,849

920

42

23

120

1,171

1,103

2,350

1,962

376

369

286

489

633

4,035

3,795

■

Y

86

3,377

*3,279

3,105

27,236

23,015

19,500

15,170

14,295

27,182

26,352

22,779

9,396

7,38,7

164

153

146

721

156

158

110

494

°$53

3,702

3,597

2,893

3,761

3} 219

1,530

1,212

1,051

314

508

i 381

466

312

11,006

11,553

10,903

9,312

8,859

23,680

26,373

20,801

23,123

678

559

452

.1,159

92

173

149

979

121,816

100,717

107,429

21,391

22,651

894

2,121
J." 1,255

535

Line

System—.—
Central—

■f 1.076

1,513
6,'574

Y

.5,819

.

39,641
/; ,665
•

933

8$,218

District-

& North Western

Great

Missabe

Duluth,

South

&

3,422

9,383

:; 8,445

3,333

4,037

3,238

3,526

25,234

22,531

14,413

427

4,094
Y* -258

1,561

1,549

808

500

10,752

7,537

9,603

543

694

519

145

24,124

16,611

4,661

3,980

671

530

694

91,695

3,523

Range

2,981

539

&

2,491

18,356

10,426

Iron

Shore

12,837

2,707

21,766

22,538

Duluth,

17,779

2,396

18,508

Western

Milw., St. P. & Pac
St. Paul, Minn. & Omahi

3,114

Atlantic-

Elgin, Joliet & Eastern
Dodge, Des Moines & South-

Great Northern

Bay & Western

Lake Superior &

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

11,784

2,362

2,013'

1,519
6,177

10,204

9,995

9,643

147

178

2,514

77

'2,141
7

4,543

158

2,561

& Seattle

131

3,108

International

Spokane, Portland

482

v.

8,997

2,129

7,940

'

67

1,946

6,671

Northern Pacific

Spokane

1,073

38

1,088

125,710

Air

1,801

C

& 744

;£,285

349
3,270

rt'343
1,987
—

Total

131,521

137,236

103,942

21,213

22,694

18,741

2,905

Central

.

Received from
Y;l

1 •••1

Connections

3,344

2,622

734

680

566

14,628

16,475

13,153

58,223

53,865

1,924

1,587

320

304

7,048

1,302

1,386

15,495

13,803

1,893

2,431

>

24

22

60

61

1,350

2,325

2,896

5,957

4,682

12,418

10,522

7,991

9,640

8,969

10,252

8,877

275

Shore Line

;

Western

.

—

2,114

1,376

1,265

438

314

2,603

2,930

14,933

———.

275

3,259

315

—

288

1,976

_

Ironton

&

16

1,419

6,820

,

Mackinac
Toledo

Trunk

1,522

1,345

Delaware, Lackawanna & Western—

Toledo

1941

1,236

1,003

—

Hudson

&

1942

583

8,603

15,066

12,109

16,970

14,126

3,463

6,225

4,736

7,567

8,331

280

246

162

338

District—

Bingham

Chicago,
Chicago
Chicago,
Chicago

&

Garfield

—

Burlington & Quincy—,
& Illinois Midland—

7,376
*2,871
>:• Y J03
Y 9,298
9,579

9,673

3,570
V

-

132

848

Y-821

10,311

9,915

2,320

2,871

3,012

610

1,705

1,702

2,519

2,032

4,533

564

336

338

14

3,375
•-Y:
27
>1,042

2,763

2,640

1,996

10,591

13,842

10,653

2,888

784

724

Denver & Rio Grande WesternDenver & Salt Lake

2,994

Rock Island & Pacific.
&

Eastern

Illinois

Y

2,417

,

Fort Worth & Denver City

1,019

1,596

1,100

1,021

Illinois Terminal

1,894

1,868

1,642

2,193

Missouri-Illinois

1,333

1,081

927

461

2,004

2,026

1,534

118

.'f

1,086

842

731

455

.L.A20

18

7

•■Y' 14

28,650

28,190

24,330

Northern
Western

Pacific

Peoria & Pekin Union
Southern Pacific

Toledo,
Union

Utah

Peoria

&

•

(Pacific)
Western

Pacific

Total

431

0

•

104

Y^/0

:

9,328

6,498

286

295

284

1,415

1;491

11,912

14,534

11,924

12,143

10,487

224

192

1,834

System

1,592

1,474

——

Western

mYYY

-IL,828

531

Pacific

...

•

3

3,655
v

.2,1713

74,030

63,517

110,159

118,397

97,183

160

213

154

165

5,334

3,380

2,596

2,809

2,862

2,176

1,632

2,855

218

—

Coast

205

292

1,147

U'l-i

Island

Lines

International-Great Northern—_
Kansas, Oklahoma & Gulf
Kansas City Southern

1940

515
■' *

Western

Atch., Top. & Santa Fe System.,
Alton

Burlington-Rock

151

5,537

Missouri-Kansas-Texas
Missouri

Lines-

2,527

2,213

1,912

334

1,008

985

419

407

243

270

220

207

383

310

4,603

4,552

3,903

4,195

3,419

15,436

15,001

12,357

16,457

11,075

114

Pacific

115

76

174

Quanah Acme & Pacific—
St.

Louis-San

St.

Louis Southwestern

Francisco.

170

&

8,505

8,494

6,430

7,321

5,495

2,929

2,676

2,212

6,090

3,042

9,823

7,757

6,463

4,155

3,960

4,492

4,329

3.879

6,988

5,024

148

164

188

50

32

18

18

38

64,660

Texas & New
Texas

2,216

1,847

310

176

Arkansas

1,823

2,376

676

~

2,384

336

& Arkansas
Litchfield & Madison
Midland Valley

Missouri &

.1,715

3,279

Louisiana

54,789

44,838

58,507

Orleans

Pacific

Wichita Falls & Southern

Weatherford M. W. & N. W
Total

Lehigh & Hudson River
Lehigh & New England

2,166

1,949

1,822

2,080

9,123

9,557

8,511

12,170

9,398

'"Previous week's

Note—Previous year's figures

72
'

38

1,510

Lehigh: Valley-Y——
Maine

Central-

2,098

Central

Pittsburgh & Lake Erie.
Marquette.

Pere

Pittsburgh

&

52,283

40,056

55,362

48,033

9,285

1,175

1,041

6,137

418

■479

8,575

8,445

5,299

Shawmut

48

12,165

6,637
805

770

Pittsburgh, Shawmut & North.
Pittsburgh & West Virginia

20,774

16,414
12,212

350

1,506

1,750

6,070

■•9,187

10,010

5,937
,.

15,196

5,890

6,188

963

Y-<

61

32

424

515

318

247

490

1,152

991

3,031

389

642

619

1,109

1,251

Wabash

5,254

5,906

5,165

13,196

10,811

Wheeling & Lake Erie

5,202

5,522

4,586

4,673

3,955

161,432

180,044

145,609

We give herewith latest

dustry, and its

Baltimore
Bessemer

Buffalo

Ohio

&
&

Lake

Creek

_

_

_

„l—

^

Cambria & Indiana.
Central R. R. of New
Cornw all

Jersey..

&

>—«,

Pennsylvania..

Ligonier Valley.
Long Island

Reading
Union

Co.

__

_

31,062

27,106

5,228

2,504

2,285

267

314

n

985

11

20

7,890

6,453

21,105

15,053

701

699

647

51

59

326
-

230

18

42

'

94

45

21

800

573

3,639

3,079

1,537

Lines

>: 97

1,627

1,145

2,526

1,790

85,373

87,672

u

Orders

_

_

Feb.

7

Pocahontas

-

f.

'

Tons

168,424

102

28

163,067

164,601

493,947

100

102

177,823

165,081

505,233

101

101

140,125

166,130

476,182

100 V" -

101

157,908

169,444

465,439

101

101

144,061

168,394

442,556

100

101

Mar.

7

55,186

28,901

22,677

Mar.

14

7,294

6,533

Mar.

21

4,260

3,244

12,811

8,420

Mar.

28

187,680

190,733

141,052

172,208

138,033

4

Apr.

11

Apr.

18

—

161,888

169,249

436,029

153,269

428,322

93

129,834

153,442

404,199

94

156,201

.388,320

152,569

143,427

141,745

102

100

145,000
—"

25

139,026

2

135,273

28,648

23,657

14,266

12,736

May

9

130,510

24,045

18,417

6,933

6,072

May

16

5,094

3,670

2,222

1,847

20,655

Y 102

Feb.

65,196

'•

101
101

13,031

'

522,320

102

15,291

23,421

Cumulative

510,542

62,242

45,744

Percent of Activity

Current

496,272

16,156

57,787

Ordzrs

Remaining

167,424

19,833

57,890

Unfilled

,<

165,240

May

-

'

157,563

4,581

: :

•

156,745

23,460

Total

'

14

29,849

Virginian

■

21

21,210

District-

Chesapeake & Ohio

-

Feb.

Apr.

.

'

Tons

162,894

Apr.
Total

These

they represent the total

1942—Week Ended—
Feb.

4,073

_

,

Production

Received

figure which indi¬

PRODUCTION, MILL ACTIVITY

Tons

14,887
_

Y

•:

Period

a

the time operated.

on

'

1

STATISTICAL REPORTS—ORDERS,

of the total in¬

statement each week from each

advanced to equal 100%, so that

4

2,019

144

_

Maryland.

are

21,866

6,807

328

_

(Pittsburgh)

Western

41,608

7,242

998

701

_

...

Penn-Reading Seashore
Pennsylvania
System

41,035

T.

7,494:

i————

Cumberland

1,000

1,960

_

'

Gauley

513

•291

..

Erie

&

672

a

production, and also

the activity of the mill based

industry.
704

program includes

member of the orders and

228,009200,168

Allegheny District—

V

The members of this Association
represent 83%

figures

Akron, Canton & Youngstown

from the National

us

paperboard industry.

cates

Total

figures received by

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

2,230

__

revised.

Weekly Statistics Of Paperboard Industry

2,427

5,337

"

3,119

,

1,181

Rutland

44,190

figure.

410

36

7,636

_

3,093

356

1,933

1,100

_

_

3,605

4,452

2,324

9,912

Lines

N. H. & Hartford

New York, Ontario & Western
New Ydrk, Chicago & St. Louis
N. Y., Susquehanna & Western

2,660

6,322

46,680

—

3,097

2,427

York

N. Y„

2,652

6,041

—--i—

Monongahela
Montour
New

3,763

This percentage
same

4,251

Northern—.

Northwestern

Gulf

1941

6,117

Vermont

Grand

3,776

Southwestern District—

1942

Indiana

Erie

3,740

349

Total

12,690,982

Total Revenue

Chicago, Indianapolis & Louisville-

&

4,550

Winston-Salem Southbound

14,672,865

a summary

District—

Central

&

873

6,446

Southernl

Tennessee

Chicago
Chicago
Chicago,
Chicago,

1,769

1,330
8,457

326

Southern—

Seaboard

16,040,732

Y]

& Maine.:

Detroit,

2,452

668

8,630

Richmond, Fred. & Potomac
Southern

1941
:! 217

v 348

1,761

&

Piedmont

679,065

1,779

Detroit

702

786

Macon, Dublin & Savannah

860,802

Freight Loaded

Detroit

263

847

12,341

Carolina—

Mississippi Central
Nashville, Chattanooga & St. L.¬

North

450

Delaware

Y

1942

.-

'

356

3,783

Illinois Central System

Green

1940

399

818

Louisville & Nashville

Ft.

1941

Connections

13,122

Georgia
Georgia & Florida
Gulf, Mobile & Ohio

Norfolk

'X. Received from

743

Florida East Coast-Gainesville Midland

680,628

Total Loads

Central

each request.

1

of Ala.

Coast Line

Durham

837,149

Railroads

Boston

1942

Northern.

R.

Clinchfield

Nevada

(NUMBER OF CARS)—WEEK ENDED MAY 1G

Eastern

&

R.

Atlanta, Birmingham & Coast
Atlantic

665,547

mitted for reissue in accordance

provisions will be
returned by registered mail at
the expense and risk of the
owners, and postage sufficient
to cover return postage and reg¬
istry fees should accompany

V

District—

P.—W.

Central of Georgia
Charleston & Western

839,052

REVENUE

such

w.

794,299

railroads and systems for the week ended May 16, 1942.
During this period 61 roads showed increases when compared with
the corresponding week last year.

Department,
Washington, D. C. Bonds sub¬

&

Total Revenue

Freight Loaded

Colorado & Southern

the separate

at the Treasury

with

Southern

'■/.

Alabama, Tennessee
Atl.

839,253

The following table

Reissues under the provisions
a

of

un¬

referred to above may be made

Railroads

loading

districts

All

Total Loads

'

below the

of the bond.

only at

the

below

derstanding to request payment

or

below the preceding week, and a'decrease of 3,941 cars
corresponding week in 1941.
In the Western Districts

cars

alone,

Four

a

revenue

the

above

2045

Columbus & Greenville-

97,219 cars, a decrease of 1,214 cars below the preceding week, and
decrease of 65,280 cars below the corresponding week in 1941.
Coal loading amounted to 169,007 cars, an increase of
1,198 cars

request
add

1940

a

Five

with Section 315.11

week in

same

23.6%.

or

freight for the week of May 16 decreased
201 cars or 0.02% below the preceding week.
Miscellaneous freight loading totaled
378,175 cars, an increase
of 3,741 cars above the preceding week, and an increase of
10,168
cars above the corresponding week in 1941.
Loading of merchandise less than carload lot freight totaled

The Treasury Department has
also advised this bank that a

(on Form PD 1762) to

cars

Loading of

in

(2) That a United States Sav¬
ings Bond registered in the
beneficiary form, upon appro¬
priate request (Form PD 1762)
by the registered owner, may
be

THE COMMERCIAL & FINANCIAL CHRONICLE

•

Number 4076

i:

119,142,

.

Y

101
101
101

:

93

100

371,365

90

99

360,221

86

99

336,530

82

98

Note—Unfilled orders of the prior week plus orders received, less production, do not
necessarily equal the unfilled orders aw the close. Compensation for delinquent reports,
orders made for or filled stock, and other items made
necessary adjustments of unfilled
orders.
-7"
.,'Y
:
-■

,

;

Retirement Benefits

Showed Decline In 1941
of

number

The

insurance

survivors

Daily Average Crude Oil Production For Week
Ended May 16,1942, Off 60,450 Barrels

said

McNutt

V.

Paul

greater employ¬
ment opportunities for older work¬
ers as a result of defense produc¬
in part to

each year

tion.

He explained that

for

•

number of years there nor¬

a

mally should be an increase in
receiving each type

number

the
of

monthly benefits, and stated that
awards of all types of benefits ex¬
cept those to workers past 65 had
increased in 1941.
These include

monthly benefits for aged wives
of retired workers, widows with

i

widows,

aged

children,

young

lump-sum
death
payments which are made when
no member of the deceased work¬
er's family is qualified to receive
monthly benefits immediately.
and

The Administrator said that ac'

Social
Security Board's Bureau of OldAge and Survivors Insurance, the
employment

sufficient

had

have

workers past 65 who

of

and
wages
to
be
entitled to
monthly benefits but have failed
to apply for them is several times

the

than

more

the benefit rolls.

number

now

$180,204,500, last March from $132,899,824 in
or 35.59%. : We now present

ol $47,304,676,

Incr. ( +) or Deer. (•—)

on

"Many of these,"

said, "are receiving higher
wages than formerly because of
the current demand for experi¬
enced workers.
In such cases the

Gross

payments
will be greater when they do ap¬
ply for benefits.
Thpse working
at
lower
wages
should consult
security offices
to determine whether it would be
local, social

to their advantage to

send in their

applications for benefits now even
though they intend to keep on
working and will not start draw¬
ing benefits until later."
v

1941, awards of lump¬
death payments amounting to

During

sum

$13,229,525 were made to 117,303
persons. Awards of monthly bene¬
fits by type of beneficiary and
amounts

are

Net

Aged

with

young

children.

Widows

Central

-+

3,400

150,650

129,250

190,500

West Texas

East

+

4,300

176,750

256,900

450

77,850

50

206,050

373,700

225,950

+

Southwest Texas

134,200

+

Coastal Texas

209,400

East Texas

Total

"

Texas

210,150
276,800

8,350

1,039,600

1,403,300

--

83,800

"

Louisiana

Arkansas

133,250
212,300

2,050

81,250

72,800

219,800

9,500

230,350

242,500

303,600

7,450

311,600

315,300

JT

North Louisiana
Coastal Louisiana
Total

6,750

20,550

1,067,500

960,000 cl,155,000

—...

321,100

298,600

150

71,250

72,191

74,000

..

72,700

72,350

48,100
—_

Indiana

b87,450

2,450

90,850

276,750

37,950

296,350

325,700

19,800

3,750

20,700

17,900
(not Incl.

Eastern

of the previous year.

105,400

99,400

2,500

99,550

90,350

Michigan

60,500

66,700

2,600

63,700

38,400

Wyoming

98,300

90,650

3,850

92,400

81,350

Montana

25,200

21,600

100

21,600

18,900

Colorado

7,900

7,500

700

6,200

3,700

73,650

49,850

647,200

10,600

2,843,850
642,300

to

60,450

3,486,150

3,784,450

Ind.)

—

70,750

73,300

73,300
2,800,700

California

d673,800

673,800

jx Automobiles

O. P.

3,483,900

3,474,500

recommendations

C.

and

—

allowables

State

petroleum liquids, including dude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however,
that certain wells may be incapable of producing the allowables granted, or may be

Actual State production would, under such conditions,
to be less than the allowables.
The Bureau of Mines reported the daily average

limited
prove

by pipeline proration.

production of natural gasoline in February, 1942, as follows:
Oklahoma, 29,800;
Kansas, 6,000; Texas, 112,700; Louisiana, 20,809; Arkansas, 2,300; New Mexico, 5,600;
California, 42,600; other States, 21,900.
5 Ok la., Kans., Neb., Miss., Ind. figures are for week ended 7 a. m. May 13.
cThis is the estimated net basie 10-day allowable as of May 1.
Some fields
whose

oil

considered

was

the

For

shutdown.

necessary

the war effort were exempted from any
other fields were ordered shut down on

for

several

reason

same

and 10 only.
The remainder of the State was ordered shut down on
May 2, 3, 4, 8, 9, and 10.
The current order did not become effective until the 16th.
It is assumed that the 4 day a week shutdown basis of the previous order applied dur¬
on

May 3, 9

ing the intervening period.
4 Recommendation of Conservation Committee of California Oil Producers.
RUNS TO STILLS;

CRUDE

(Figures in Thousands of

<

;

-

'

. .

I

919,224

Potential

Rate

quar¬

Appalachian

quar¬

tivity of

lending ac¬
the American Bankers
of

war

Rocky Mountain
California

787

Okla., Kansas, MO.—

for publication on May 25.
Association also states:

31.

This compares with an in¬

crease of $460,000,000 during the
previous quarter ended Dec. 31.
The ABA report is based on

high-spotting survey of 500
of the country's larger banks,
406 of which reported these fig¬
ures.
The 406 banks reported

U.

Tot.

plies

and

equipment

totaling

S.

•

Daily

Stocks

eStocks

eStockt

Finished

of Gas

of Re-

Includ.

and Un-

Oil and

sidua)

Distillate

Fuel

Fuels

Oil

14,215
444

porting Average erated

Blended Gasoline

89.7
84.5
84.9

1,511
159

63.4
91.4

4,928

743

81.1
50.7

362
87
622

94.8
86.6
63.0

2,361
1,237
297

45,169
3,927
20,635
9,637
2,474

79.0

1,625

17,292

90.9

.

497'

2,883
844
320
11,500

4,684

86.9

3,484

74.4

10,945

fl99,134

30,206

(

632
3,280
1,553
523
56,635
78,826

4,684

86.9

passenger

schedules
are

are

swelled.

any

is therefore no

is

3,270,499
4,390,090

1,160,682
1,605,337

5,676,357

X977.312 4 x850,977

;

X408.573

xl,468,743

4,457,368
4.

:

xl,067,691

Xl,025,531

X899.7911

x547,167

xl,562,519

—

Xl,109,621

Xl,127,628

X913.150

x552,873

Xl,638,245

No less than 74 and 58 roads were

in

increases

Manufacturers' Associ¬
x

and

gross

Four weeks.

able to show major respec¬

net over March,

The Pennsyl¬

1941.

While the Chesapeake

at

obliged to handle freight and

surprise to find that the gross and

reached in March

of $25,-

& Ohio showed a minor increase

and a decrease of $1,052,929 in the net classification,
it is interesting to note that in contrast the New York Connecting
showed a decrease of $126,597 in gross, and only a minor decrease
in

gross

$30,673 in the net category.
In the following table we list all the major changes of $100,000
or more, whether increases or decreases, in both the gross and net
clasisfications:
'
""
. '

of

"'

THE MONTH

CHANGES IN GROSS EARNINGS FOR
OF MARCH
' - *'

"
increase

Increase

Pennsylvania

roads)

(2

Pacific

Southern

...

Central

—

Pacific

—

York New Hav.
Northern

Atlantic

Coast

& Hart.
.;

...

Line

—

Line

New

Island &

Srie

—-

—

Fran.

(2

rds.)

St.

Louis-San

St.

Louis Southwestern——

Delaware & Hudson

Lehigh Valley
Denver

N.

&

Orl.

Rio

Tex.

Central

St.

Texas

&

Paul & S. S. Marie

Pacific

Lack. & Western..—.—

"These figures cover

Cleveland

is

an

Gulf

Maryland

Mobile

—.

Ohio

&

—-

v

Norfolk & Western......

320,139
317,973
309,462
295,617
280,438
255,789

—

237,670

Louisiana & Arkansas——

231,364

Georgia

_

198,781

Elgin Joliet & Eastern. *
Pittsburgh & Lake Erie——;.
Lake
Penn

Superior & Ishpeming.
Reading Seashore Lines

Lehigh & Hudson River—
Western Ry. of Alabama.—.
Canadian Nat. Lines in N. E.

1,217,536
1,180,788

Illinois Terminal

1,150,557
1,056,445
1,036,745
945,518
913,578
885,634

Total

—

(74 roads)

—

197,411
+

Norfolk & Southern.—..-

1,449,758
1,443,535
1,229,038

—

134,086

132,1?9
130,254
122,923
113,739
102,099

101,672

..$124,265,908
Decrease

Grand

Trunk

Virginian
New

795,306
702,534

York

Total

the operations of

Cincinnati Chicago & St.

;

Central ———296,914

Maine

Western

1,620,194

Western.

....

Connecting..

(3 roads)—..,——

$427,190
170,258

126,597

$724,045

the New York Central and the leased lines—

Louis, Michigan Central, Cincinnati Northern, and

Indianapolis & Terre Haute.
increase of $7,990,379.

Evansville

Minn.

Minneapolis & St. Louis

City

Wabash

355,056

P.

Florida East Coast—-——

Southern..—854,979
Fredericksb'g & Pot—
798,172

Kansas

Del.

.—

of New Jersey

Minn.

Rich.

Valley—
& Mex. (3 rds.)

Pacific

Western

;

Grande West.

Mississippi

&

Yazoo

*

363,295

& Omaha

St.

Chic.

1,220,414

—

Missouri-Kansas-Texas

Nashville Chatt. & St. Louis.

1,689,052

Maine——

&

Boston

Reading

402,446
402,319
393,053
383,049

Chicago Great Western...—-

2,204,900
2,034,424
1,937,715
1,874,279

Pacific.
York Chic. & St. Louis.
Rock

'

Central of Georgia

2,274,328

Chicago & North Western—.
Louisville & Nashville—

541,473
470,131

Seattle.

(2 rds.)
New Orleans & Northeastern
International Great Northern

2,646,814
2,356,657
2,303,526

[

Northern Pacific +..

Chic.

Spokane Portland &
Long Island
Colorado & Southern

2,651,711

Chicago Burlington & Quirtcy
Chic. Milwaukee St. P. & Pac.
Air

Pacific—
Duluth Missabe & Iron Range

6,783,445
5,650,399
3,274,345
3,233,563
3,230,896
3,146,717
3,046,201
2,830,452

—.

$612,237
585,706
584,094
546,761

'

Great Southern—

N. O & Tex.

Cinn.

"7,792,968

Central

York

———

—

Alabama

/: 12,832,203
Topeka & Santa Fe
8,607,220

Atchison
New

Alton

$13,§43,282

—— ..

Pacific

South

New

refineries,

of $12,832,203 and $5,-

in both gross and net with increases

501,945 respectively.

Great

previous year.
it

x992

(number

92,020

the month of March exceed those

X3.401

1,449

x576

.

§ Si American Ifon and Steel Institute. MINational Lumber
of reporting mills varies in different years),

Age.'"
ation

80,1*5

ever larger quantities as the war production
increased and the ranks of the country's armed forces

It

x7,815

X2.194

x

>

*U. S. Bureau of the Census. tF. W. Dodge
Corp. (figures for 37 States east of Rocky Mountains).
JNational Bituminous Coal
Commission.
§U. S. Bureau of Mines.
([Association of American Railroads.
tfReported
by major stock yard companies in each city. ttNew York Produce Exchange.
•""Iron

33,657

traffic in

net earnings for

in

are

X4.185

x5,032

x5,428
v

Note—Figures in above table issued by:

29,947

Earnings Of United States

States railroads

X20.125

received——.—

IlliOrders

94,286

Railroads For The Month Of March
The United

X24.419

.

X943.853

1!!!Shipments

Seaboard

Gross And Net

xl,785

X13.271

-V

feet):

(000

ff Production

100,650

eAt

6,298

xl,453

X21.416
xl0,959

4,704,135
5,113,187
7,392,911 '1 7,124,003

""Pig iron production—*
SigSteel ingot production—
Lumber

,7.116

(net tons):

Steel

and

12,885

expected that the heavy war traffic will continue,
$1,641,827,^768, and for new plant
facilities \ a n d
construction, a question arises as to how the railroads are to be affected by gas¬
No doubt a good number of people will use rail¬
$895,679,751. For working capi¬ oline rationing.
tal loans arising out of opera¬ roads in place of cars to reach their summer vacation places, but
then again, many will not be able to, as there will be no means of
tions of customers contributing
Means
indirectly to war production, the transportation from railroad stations to their favorite sites.
banks
reported
$562,015,741. also would have to be found, by those who settle in places remote
from towns and cities, to obtain their daily food and other sup¬
Miscellaneous loans for war proIt has also been suggested that unnecessary rail travel should
duction purposes totaled $20,- plies.
963,000.
T be restricted. What the net result is going to be remains to be seen.




Iron

16,762

xio.488

xl,639

^
v

X17.499

x939

10,658

Finished,

X12.791
<

xl,390

Missouri

.

x1,746 i

xl,725
\17,650

X23.016*

(000 bushels)

Rye

11.954

4,135

:

2,121
1,760

.

x6,728

—

3,860

1,835

,:v

4,813

6,271

*

x5,483

72.7

3,406

2,227

x4,890

Illinois

Mines

17, 1941-

;

5.964

2,381

Baltimore & Ohio

91,492,000 barrels; unfinished, 7,642,000 barrels.
bulk terminals, in transit, and in pipe lines.
•At the request of the Office of the Petroleum Coordinator.
a

5,936
3,498

16,203

% Op- Natural finished

M.

1942-.,

of

Bur.

While

t

Runs to Stills

% Re-

:

at Re-

fineries

Crude

M.

1942of

B.

basis May

a

/J loans and commitments for sup¬

S.

basis May 9,
U.

The survey showed that 406

$3,120,486,260
outstanding
on
March 31, an increase of $891,196,800 over the total on Dec,

Of

B.

S.

basis May 16,

The

reporting banks in 159 cities had
war
production loans totaling

U.

Tot.

x3,837,736

X6.117

Union

Association, covering 500 of the
country's larger banks, released

x2,280,837

(000 bushels)

PRINCIPAL

2,383

174
784
418
138

——

x2,489,i&80

Barley (000) bushels)—

North

Ind., 111., Ky.

4,859,000

X3,171,439- x3,066,Oil

bushels)-.
bushels).-—

AvVancac

•

Inland Texas—

and

40.068,000

4,789,000

(000

Oats
.

589

Louisi¬

Gulf,

ana

T.miicfatia

$891,000,000 during the first
survey

Bureau of Mines basis

♦Combin'd: East Coast,

ter of 1942, according to the
terly

a

Production

Daily Refining

goods increased

32,250,000

3,773,000

barrels)—

(000
(000

ner-up

in

Gasoline

Gulf,

35,244,000

4,595,000

;

repeated its last year's performance by again heading the
gross listing with an increase of $13,943,282 and placing third in
net with an increase of $2,952,388.
The Southern Pacific was run¬

GAS AND FUEL

1942

therefore on

District—

47,996,000

423,620

vania

this section include reported totals
plus an estimate of unreported amounts and are

Texas

585,455
$484,818

receipts:

tive

Barrels of 42 Gallons Each)

Figures

16,406

119,344

$112,235

507,834

.

grain

$ %'Western flour and

Wheat

•i

$272,178

47,400,000
5,085,000

all (cars)
ttLivestock receipts:
Chicago (cars)—Kansas City (cars)
Omaha (cars) '

..

PRODUCTION OF GASOLINE; STOCKS OF

FINISHED AND UNFINISHED GASOLINE AND

—

$479,903

94,510

$610,799

Freight Traffic:

Corn

>
1929

1932

(units):

([Pennsylvania anthracite-

production of all

represent the

1940

1941 v

tons):

(net

Coal

•,

(passenger cars,

"Production

-

Total United States
a

1942

4 trucks, etc.)———
—
Building ($000):
tCoristr. contracts awarded.

Flour

Total East of Calif.

by

war

+ 35.59

period for the years 1941, 1940, 1932, and 1929:

March—

3,148,450
636,000

&

New Mexico

commercial
finance the production

of orders for

+ $47,304,676

for the month of March last in comparison

portant business statistics
with the same

112,700

2,836,700

HI.

Production Increase
banks

+27.41

;

HCarloadings,

Bank Loans For War
made

77,468,582

+30.03

•

subjoined table we have brought together the more im¬

the

In

19,750

b

Capacity

Loans

+

.—+-$180,204,500 $132,899,824

28,000

329,200

Mississippi
Illinois

591,336
222,410

1,272

Parents

—,

to earnings—

earnings-—-—

78,000

78,800

Texas-

$2,604,740
435,605

75,619

Children

expenses

•

—00.31

$124,773,258

Since the trend of business

;

148,300

——■

of benefits

36,213
30,502
11,020

>/„

722

__

North Texas

OIL, WEEK ENDED MAY 16,

114,660

workers

Aged wives of Tetired workers

:

expenses

"

+

—

of awards per month

"Widows

of

Ratio

Amount

Retired

earnings

Operating

4 231,575
232,297
_$540,299,056 $415,525,798
—
360,094,556 282,625,974
| (66.65)
(68.02)

-——

,

shown below:
Number

roads

132

of

—

-

amount of their monthly

.

•

■

Mileage

1941

1942

Month of March—

he

their

March, 1941, a gain
the March results in

form:

tabular

stills, on a Bureau of Mines' basis 3,484,000 barrels of crude oil
daily during the week ended May 16, 1942, and that all companies
had in storage at refineries, bulk terminals, in transit and in pipe
lines as of the end of that week, 99,134,000 barrels of finished and

cording to estimates of the

number

gross

was

underlies the general financial sta¬
tistics of the railroads' operations, we now turn our attention to
unfinished gasoline.
The total amount of gasoline produced by the activity of the various vital factors responsible for the $124,all companies is estimated to have been 10,945,000 barrels during
773,258 increase in railroad operations for the month of March,
the week ended May 16, 1942.
1942, in comparison with March of the previous year. Building
DAILY AVERAGE CRUDE OIL PRODUCTION (FIGURES IN BARRELS)
construction showed an increase of 27.3%; anthracite rose to 5,085,a State
—Actual Production009 net tons, an increase of 10.7%; pig iron output rose 8.7% to 5,4 Weeks
Week
Week
Change
a O.P.C.
Aiiow113,187 net tons; and steel ingot production recorded an increase
Ended
From
Ended
Ended
Recommenables
Previous
of 3.8% over March, 1941, previously the greatest for a month on
May 17
May 16
May 16
dations Beginning
1941
Week
1942
1942
May
May 1
As a result of the restrictions placed
record, to 7,392,911 net tons.
415,750
398,100
10,950
5388,000
Oklahoma
438,500
438,500
on
the automobile industry, automobile production followed - the
253.300
218,200
+
18,800
Kansas
259,300
259,300 5 261,750
b
+
250
3,900
4,350
4,000
previous month's precedent with a- decreased production of only
Nebraska
4,500
1,830
78,500
82,750
80,350
94,510 units.
March 1942's production was only 18.6% of March
Panhandle Texas
"

parents of deceased

children and

workers,

for March, 1942, amounted to

of the railroads

revenues

$540,299,056, against $415,525,798, an increase of $124,773,258 or
30.03%.
Higher wage scales as well as Cither increased operating
expenses absorbed a good part of the added gross but efficient man¬
agement enabled the railroads to increase their net earnings to

received from refining companies owning 86.9% of
the 4,684,000 barrel estimated daily potential refining capacity of
the United States, indicate that the industry as a whole ran to

attributed this de¬

Mr. McNutt

KlV Gross

daily

Reports

Security Board, added:
crease

the

for the week ended May 17, 1941.
The current figure, how¬
9,400 barrels higher than the daily average for the month
of May as recommended by the Office of Petroleum Coordinator.
Further details as reported by the Institute follow:

Social

the

of

that

ever, was

compared with 114,660 in 1941,
;The
advices
from
the Federal
Agency

estimates

Institute

age

on

May 21. In 1940, awards to work¬
ers
past 65 totaled 132,335, as

Security

Petroleum

crude oil production for the week ended May 16,
3,483,900 barrels, a decrease of 60,450 barrels as compared
with the preceding week and 300,550' barrels below the daily aver¬
1942

than in
Security Adminis¬

Federal

1940,

American

average

during 1941 was 13% less
trator

V The

earnings for,+the month of March reflect the

.The statistics of

„

higher passenger fare charges as well as -some additional revenue
from the freight rate increase which went into effect on March 18.

v

-

old-age
system

benefits under the Federal
and

who

workers

awarded monthly retirement

were

Thursday, May 28, 1942

& FINANCIAL CHRONICLE

THE COMMERCIAL

2046

Including Pittsburgh & Lake Erie, the result
4 4:4.*'/■"

Volume 155

IN NET EARNINGS FOR THE MONTH

PRINCIPAL CHANGES

OF MARCH

•

+

■

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4076

:•;+ >/%,■'

increase

Atchison Topeka & Santa Fe_;
Pacific (2 roads)—

$6,041,925
5,501,945
—s—2,952,388

Southern

Pennsylvania

-

Baltimore

Ohio_-.*i._'_-.-

&

York

Hav

New

Missouri

Coast

Line

-

New York Central
i.

Southern

St.

Air

:

Louis

Line

Pacific.

-

Texas & Pacific.-———--

New Orleans & Northeastern-

Minneapolis & St. Lcuis——Duluth Missabe & Iron Range

197,561
168,131

Ohama

&

Minn.

P.

155,067
,152,825
145,981

,

Central of Georgia.———

883,682 •;

Southwestern——

St.

Chic.

;

856,952

Georgia

& Mississippi Valley—
Chicago & North Western

822,247
816,387

Chicago Great Western.—•_

139,809
136,579

Alton

(000)

Louisvillie

807,672
786,570

—

Yazoo

Boston

Nashville

&

&

Maine

Chicago Rock
N.

Tex.

O.

Denver

Island
Mex.

&

Rio

&

&

(3

Grande

Grand

Ohio..———

Chesapeake &
Trunk

$1,052,929
304,484

586,869

Fere

—

286,971

Norfolk & Western

262,336

-634,200

uU..:.

-

;

Marquette

225,546

rds.i-

555,126

Potomac-

547,693

Virginian "—i_:
Elgin Joliet & Eastern

Chic. Milwaukee St. P & Pac.

538,289

Detroit Toledo & Ironton—

169,852

Western Pacific

522,061

Chicago & Eastern Illinois—

141,118

St.

Louis-San Fran.

Richmond

Fred.

Minn. St.
Central

Paul

of

&

(2

—

& S. S.

New

Marie

;—

179,747

469,194

448,436

Jersey

$3,187,547

(9 roads).—_—

Total

.

leased linesNorthern, and
Including Pittsburgh & Lake Erie, the result

the operations of the New York Central and the
Cleveland Cincinnati Chicago & St. Louis, Michigan Central, Cincinnati
"These

figures

cover

Evansville Indianapolis

increase pf 51,481,988.

1? an

Haute.

& Terre

— --

—------■-+-

^

into

districts

separate roads on a geographical basis

with the ex¬

all regions

that

indicates

regions

of the Pocahontas region recorded increases in both gross

ception
and

and

net.

witb

gain of 42.85%
and also led the net
category with an even greater increase of
72.15% over March, 1941. The Eastern District and Southern District
The

District

Western

first in

was

gross

a

Jollowed in that order in both gross and net.

Central

The

Western

showed

region

gain, 81.86%, while the Pocahontas showed
7.37%, both of these being in the net listing.
!

percentage

greatest

only

the

decrease,

present our

now

in

summary

below

footnote

the

the

mission:
SUMMARY
District and

BY

Gross

Region
1942

Earnings

1941

$

Month of March

$

District—

Eastern

Incr. (+) or Deer.

(—)

$
30.17

22,458,859

17,253,805

+

5,205,054

95,240,821

79,569,665

+

15,671,156

+ 19.69

+

25.90

113,988,453

90,542,359

+

23,446,094

+

231,688,133

187,365,829

+

44,322,304

+ 23.66

+ 31.89

Southern District-

Total

;

58,681,859

+

18,715,926

27,524,555

+

903,292

86,206,414

+

19,625,218

.

.

roads)

<30

77,397,785
28,433,847

105,831,632

Southern region <26
Pocahontas region

+

3.30

+ 22.77

Western District—

39.421,012

+

13,634,440

+ 34.59

71,908,095

+

33,268,403

+ 46.27

.

30,624,448

+

13,922,888

+

45.46

-202,779,291

141,953,555

+

60,825,736

+

42.85

-540,299,056

415,525,798

+124,773,258

44,547,336

Southwestern region (20 roads)—

Li.,

Total (51 roads)
Total all districts (132

roads)

........

(bush.)

(bush.)

(bush.)

935

527

6,134

1,042

248

732

8,104

1,264

48

1,019

7,394

1,915

business,

1,960

753

i «41

2,391

4,216

1,020

1,491

662

2,645

to reports to the National Lumber

1941
1942

-Net

district and Region
1942

Eastern District—

Jew

Earnings

1942

-—Mileage—

Jonth of March

58

1.1941
J1942

1941

Incr.

( + ) or Deer. <—)

%

V", $

$

England region.

6,644

6,694

8,288,703

5,779,791

+

2,508,912

+43.41

Lakes

region.

26,023

26,065

30,252,173

26,044,795

+

4,207,378

+16.15

East,

region.

24,269

24,485

32,701,084

27,332,517

+

5,368,567

+19.64

Sreat

Jentral
Total

———

Southern

•

56,93656,936

•

>57,244.

71,241,960

59,157,103

37,821

38,142

6,076

region.—
Pocahontas region. _

Southern

6,076

28,586,077

20,830,218

12,475,535

44,218

41,061,612

+

20.34

45,526

15,359,025

10,153,341

56,099

56,249

35,725,833

29,023

2.9,060

16,816,070

+ 37.23

7,755,859
993,118

—

34,298,871

45,618

—

7.37

+

6,762,741

+ 19.72

+

5,205,684

+ 51.27

19,644,787

+

16,081,046

9,645,722

+

7,170,348

Western District—

Southwestern region¬
al

Total

*+

130,742

;

Total

all

districts. 231,575

Mote—Our
Commerce

of

grouping

Commission,

130,835+

232,297

the

roads

the

and

67,900,928

39,443,850

180,204,500

132,899«824

conforms

to

the

following indicates
+
*

groups and regions:

-

-

81.86

+ 74.34

Omaha

+72.15

47,304,676

+ 35.59

+

of

confines

of

the

Interstate

different

the

v".

England Region—Comprises the.New England States.
">
,
,<
Lakes Region—Comprises the section on the Canadian boundary between New
-

Great

.

England

the

and

westerly

shore of Lake Michigan
to New York.

to

Chicago,

and

north

of

a

from Chicago vi# Pittsburgh
'

line
„<•

the section south of the Great Lakes Region east
through Peoria to St. Louis and the Mississippi River to the
and north of the Ohio River to Parkersburg, W. Va., and a
line thence to the southwestern corner of Maryland and by the Potomac River to its
ihotfth.
'
'
1
a

line

mouth

from

Chicago

Ohio River,

of the

SOUTHERN DISTRICT
4

Southern
the

of

eastern

the

Region—Comprises
River

Ohio

to

a

point

near

section east of the Mississippi River and south
Kenova, W. Va., and a line thence following the

boundary of Kentuoky and the southern boundary of Virginia to the Atlantic.

Pocahontas

the section north of the southern boundary of Vir¬

Region—Comprises

ginia, east of Kentucky and the Ohio River north to Parkersburg, W. Va., and south
of a line from Parkersburg to the southwestern corner of Maryland and thence by the
Potomac River to -its mouth.
,
,
;

(

'

WESTERN

DISTRICT

Region—Comprises the section adjoining Canada lying west of the
Great Lakes Region, north of a line from Chicago to Omaha and thence to Portland,
find by the Columbia River to the Pacific.
! Central Western Region—Comprises the section south of the Northwestern Region
west of a line from Chicago to Peoria and thence to St. Louis, and north of a line
from St. Louis to Kansas City and thence to El Paso and by the Mexican boundary
to the Pacific.
V<
between the Mississippi River
south of St. Louis and a line from St. Louis to Kansas City and thence to El Paso,
and by the Rio Grande to the Gulf of Mexico.
;
Southwestern

~

The
ceeded

Region—Comprises

aggregate
the

the

section

lying

Western grain movement for March, 1942,

previous

March's receipts by

9,623,000

bushels.

more

in

than

offset

by

increases

of

whegt and corn respectively.

slight decrease of 21,000 barrels.




4,859,000

and

5,517,000

258

29

2,014

98

22

,820

48

18

2,230

1,007

836

202

38

4

1,165

410

1,404

15

€

924

774

39

4,131

■

,■

788

2,769

506

8

~19

524

664

1,832

338

"83

222

586

847

1,065

224

83

Peoria

167

144

78

3,544

108

88

281

.+
Kansas City

) 1941

187

218

1,981

>235

82

272

J1942

64

3,186

2,604

218

11941

96

2,681

792

92

236

383

148

117

132

St.

Joseph

v

(1942
11941

Wichita

175

11199932050374862746——-

323

75

14

107

156

33

32

2

112

1,725

17,650

23,016

4,890

1,390

12,791

17,499

5,483

939

FLOUR

AND

GRAIN

RECEIPTS

Three Months Ended March

"wheat

Flour

--—Year

(bbls.)

(1942

2,928

) 1941

2,505

Corn

Oats

(bush.)

(bush.)

•

(bush.)

'•

1,971

24,136

Al¬
were

bushels

The flour movement showed

a

Rye..
(bush.)

4.261

Barley
(bush.)

989

3,542

2,359

21,426

2,988

110

3,374

(1942

24,082

6,598

8.262

3,335

10,727

(1941

9,560

2,407

4.112

Duluth

1,464

8,671

j 1942

7,817

2,140

56

660

j

1,044

2 619

539

198

75

512

*131

2,729

85

314

6,652

95

2,364

105

134

4,995

1,804

2,977

859

39

46

...

Milwaukee

119943008573—2245•j-—_-;IJ

1941

(1942
(1941
(1942

Indianapolis &

224

)1941

Toledo

---

217

...

1,075

1,824

20

2,830

138

1,220

32

27

6,478

886

1,835

2,737

503

682

(1941

1,890

2,978

2,570

732

121

422

503

421

11,894

422

275

855

Ship¬
produc¬

above pro¬

industry stoocC at
of produc¬
the corresponding week of
the

average

and

1935-39

shipments

153%

of

average

the

in

same

week..

■■

Year-to-Date Comparisons

262

885

4%

was

below

shipments, and
above

the

orders

new

orders

of

11 %

the

1941

period.
new

For the 19 weeks of 1942,
business was 28% above pro¬

duction, and shipments

1-7%

were

above production.

'

•

Supply and Demand Comparisons
The

ratio

of unfilled

gross stocks

62%

was

orders

to

May 16,

on

1942, compared with 40% a year
Unfilled orders were -27%
greater than a year ago; gross
ago.

609

723

7,007

472

176

10,435

10,470

626

(1941

275

5,499

2,177

334

(1942

801

1,312

826

(1941

334

550

508

(1942

2,964

(1941

3,193
306

1,355

255

52

448

May 16, 1942, for the cor¬
responding week a year ago, and
for the previous
week, follow^ in

(1941

356

392

116

11

360

thousand board feet:

5,659

56,827

85,063

19,368

6,305

24,026

5,503

31,346

49,391

12,609

(1942
(1941

stocks

17%

were

Softwoods
Record

furnish

2,229

SOFTWOODS

parisons of the gross and net earnings of the railroads of the

coun¬

summary

of

the

Given

Dec.

Preceding

$205,700,013 $183,509,935
238,725,772

205,838,332

1942

1942

Year
Given

(—)

Preced'g

+ 12.09

223,563

220,421

32,887,440

+ 15.98

230,263

226,96E

238,829,705

11,264,790

4.72

237,735

234,258

224,608,654

12,955,678

-+

5.77

238,218

238,634,712

10,595,839

+

4.44

240,510

249,514,091

660,166

0.26

+

245,200

243,184

238,157,881

253,352,099

15,194,218

238,098,843

58,731,563

321,317,560

294,068,345

27,249,215

362,761,238

312,276,881

50,484,357

375,772,750

365,096,335

10,676,415

+

408,582,467
456,978,940

347.090.277

61,492,190

+

458,462,330

1,483,390

473,433,886
533,553,199

457,374,460

16,059,426

+

3.51

234,986

473,747,009

59,806,190

+

12.62

534,644,454

30,628,340

235,424
235,715

235,470

504,016,114

-

485,498,143

I

43,668,624

529,467,282

516,134,027

-

18,864,833

485,236,559

529,899,898
504,233,039

1927---------—+

504^62,976

528,905,183

—

505,249,550

432,616

294,485

279,035

Softwoods

Hardwoods

1942 Week
Mills

1942 Week

368

106

Production,

236,906—100%
Shipments— 272,277
115
Orders ,*.—..,296,042
125

11,767—100%
15,085

128

11,527

-

98

Youths 18 To 20 To

6.00

246,848

243,59(

+ 24.67

247,363

246,548

+

9,27

248,185

247,317

+

16.17

230,336

228,835

2.92

226,086

225,631

17.72

213,434

212,770

0.32

234,832

233,382

date

234,202

and

—

—

5.73

—

3.74

—

9.00

+

236,520

236,559

236,04C

236,774

236,500

Register On June 30
President Roosevelt
fixed

who

June
for
19

30

young

men

old

years

have

the

as

on May 22
registration
between 18

and

become

20

for

those

old

years

since the first of the year.
This
will
be
the
fifth
registration

0.08

237,804

236,948

239,649

238,729

2.15

241,115

240,427

Service Act of 1940 and will thus

—12.50

242,325

241,964

complete

76,672,852

—16.95

242,566

242,421

85,983,406

—22.89

241,996

241,974

69,022,941

—23.89

240,911

241,482

+ 34.44

239,228

241,194

the inventory of man¬
provided for under exist¬
ing law.
The youths of 18 and
19 years, of which there are an

4.20

238,011

239,240

estimated

10,884,477

516,620,259

—

452,261,696

—-

289,633,741

1933.

307,569

—

4.98

26,410,659
+

452,024,463

—

471

249,892
293,429

64,595,796

530,643,758

375,588,844

-

v

276,141

237,291

—

296,830,406

-

459

256,599

287,362

234,692

249,230,551
250,174,257

-

Previous

Wk. (rev.)

248,673

i

Year

237,564,332

—

1941
Week

—459

Production

-Mileage-

227,564,915

.

>f

HARDWOODS i

Shipments—

+ $22,190,078
+

AND

Week
Mills

>

-Gross EarningsYear
Inc. ( + ) or

Year

week

Orders

try; from the current year back to and including 1909;
Month

current

19,265
com¬

a

Hardwoods ;

the

ended

March

we

less.

and

for

.

following

1924.

1942

of

(1941

all

the

weeks

corresponding
weeks
of
1941;
shipments' were 6% : above the

(1942

City

1931-

above

The

of

30

8,884

aw,

City

In

16%

orders 24%

new

Compared with the cor¬
responding week of 1941, produc¬
tion was 3% less, shipments, 4%
greater, and * new * business 4%

19

14,974

1,737

(1942

Joseph

Total

'

1 893

3',358

(1942
(1941

Louis

Sioux

softwood mills.

were

duction.

19

28

Minneapolis

St,

from

Reported production for the first
WESTERN

Omitted

Kansas

tion;

6,728

f°°0)

St.

and

ments

6,117

1,746

according

Association

1935-39

46

.(1942
11941

wood

tion in

»

11941

all.

greater,

regional associations covering the
operations of representative hard¬

132%

849

m-.

10%

Manufacturers

greater.

664

,,,

City..

Total

;

11941
Sioux

:

375,617,147

—

+
—

+

under

the

amended

Selective

power

219,857,606

288,880,547

292,775,785

217,773,265

280,492,018

292,798.746

12,306,728

307,833,663

280,484,056

27,349,607

+

9.75

237,054

238,226

377,085,227
282,571,467
314,460,087

307,749,980

69,335,247

+ 22.53

236,158

236,607

376,997,755

94,426,288

—25.04

234,828

235,822

282.514.278

31,945,809

+ 11.31

233,659

234,761

1940—326,243,592

314,460,087

11,783,505

+

3.75

232,976

233,617

415,525,798

326,366,143
415,525,798

89,159,655

+ 27.31

232,300

233,020

proximately

+124,773,258

+ 30.03

231,575

232,297

will

—

:

...

1942:

540,299,056

—

75,002,520

+

of

Year Given

1909

Preceding

$69,613,713

78,357,486

69,038,987

68,190,493

64,893,146
67,993,951

% 69,168,291

68,452,432

Decrease (—>

69,658,705

69,209,357

+

$14,303,842

+

8,664,106

+ 12.4<

9,048,129

—11.6r.

—

+

4,275,145

64,889,423

+

67,452,082

+

+

3,104,528
1,000,350

—

1.24
6.IE

+

4.78

+

1.48

68,392,963
96,718,706

87,309,806

.29,596,482

82,011,451

—^

52,414,969

present

27,202,867

+

13,669,908

+ 50.25

58,538,958

39,882,642

+

18,656,316

+ 46.7E

58,831,644 -V 5. +

54,637,199

+ 92.87

113,468,843

—

29,378,627
—

:

7,911,240

+ 42.96
—

4,748,470

—

8.18

109,081,102

+

24,561,652

+

22.52

135,691,649

—

114,677,751

133,642,754

—

_—- -

117,668,590

109,230,086

-

113,697,798

114,754,514

1924^—-w—

134,064,291

+

1,627,358

+

1.21

135,874,542

—

131,840,275

—

+

,

3,419,324

+

2,914,076
—

—

5,447,665

—

4,034,267

—

7,516,400

3.01
2.48
4.75

2.97

5.69

139,639,086

132,122,686

+

101,494,027

JL39,756,091

—

38,262,064

—27.38

84,648,242

—

101,541,509

—

16,893,267

—16.64

1932__—————.

67,670,702

84,706,410

43,100,029

68,356,042

83,939,285

•n

42,447,013

71,711,908

111,515,431
54,102,703
74,688,342
78,332,834

-

—.——

1939—

—

ri—.—

—:—~

~

132,899,823

180,204,500

+
—

+
+

111,501,626

—

+

54,100,286

+

74,688,343
„y
•

78,414,72.2

132,899,824

+

17,035,708
—

83,942,886
68,205,090
71,708,880

67,659,321

-

be

20

It is

years old by June 30
reported, however, that

may

soon

be

asked

to

lower the minimum age for draft
service.
.

There

.

approximately 40,between the ages of
20 and 65 registered in the four
previous drafts, of which about

000,000

were

men

27,000,000 between 20 and 45
subject to military service.

are

5.44

117,117,122

—

legislation, but the ap¬
600,000 who are or

—63.91

40,872,775

—

—

848,494

—

82,561,336

1920^-^—w--

1940.

+ 25.86

97,771,590

1919—-—--.--—.

1938

%

88,807,466

—

1937——

3,000,000
throughout
country, are not subject to
compulsory military service under
the

Congress

Increase ( + ) or

$55,309,871

78,322,811

1916—+:^—-1---—-----

1926—J-

Earnings

Year

March

1918

—

are.
-Net

1933

ex¬

154

j 1941
v 1942:

1936

though minor decreases were shown in oats and barley, these

21

25

72

—

Northwestern

I

55

724

Month

Central Eastern Region—Comprises

of

590
338

66

++■

____—___|l94i

Louis

1938

■

944

(1942

St.

1932..

+28,457,078

classification

the

+

.

EASTERN DISTRICT
New

•

12,084,857

+

33,468,653

43,897
t

+

District—

(bush.)

J1942

Indianapolis &

—

>

Barley

/1941

Toledo

1915.

1941

Rye
(bush.)

942

11942

,+';

Oats

2,858

1941

MuwauKee

-

+ 30.03

May

(bbls.)

March

53,055,452

.105,176,503

Northwestern region (15 roads)—
Central Western region (16 roads).

ended

Corn

of

::

production

during the
16, 1942, was
0.5% less than the previous week,
shipments were 2%
less, new

week

Wheat

1942

Wichita

GROUPS

Lumber

28

Year

...

Peoria

by districts and regions.
As
following table, our grouping
conforms with the classification of the Interstate Commerce Com¬
We

revealed

Ended May 16, 1942

RECEIPTS

Ended March

(1942

.

Omaha

the

GRAIN

Lumber Movement—Week

Flour
■

Chicago

The consolidation of the

AND

cumu¬

usual form:

our

805

Chicago

564,564

Western-

Bessemer & Lake Erie__—

560,282

'

Missouri-Kansas-Texas

$49,927,627

,

!vD0Cr6ftS6

660,454

-

*

Northern Pacific i..*—.—**!—
'.

.

655,326

West.

Delaware & Hudson

Reading

(58 roads)

Total

743,861 i
702,192

Pac.

rds.)_:

give the month of March and

flour

,•'

Omitted

133,961

Erie

we

Four Weeks

:

226,438

East Coast..

Internat. Great Northern.—

988,110

western

■'.vv'.vW'.1

228,117

••

(2 roads)-

Colorado Southern
Florida

Louis_

St.

Great

O. & Texas

N.

1,081,181

-

&

Southern.;:.—

Alabama

1,083,1031:

■

Chic.

345,761
339,040
280,285
274,317
236,600

—*-i.

Cinn.

■:'

372,711

351,967

1,459,922
1,036,259

—_

...

Illinois .Central
York

392,158
<

Wabash

*1,473,582

—

Great Northern

New

—:——
& Western—

Lack.

Spokane Portland & Seattle.

1,858,588
1,704,497
1,573,337
1,543,632

Hart.

&

Pacific

Atlantic

Seaboard

Lehigh Valley

1,964,706

'

Chicago Burlington & Quincy
New

$433,980

Southern

City

Delaware

following table

2047

lative details of the Western grain movement in

2,295,671

Pacific

Union

\;-v

••

Kansas

In the

.

'

—20.11

25,256,013

—36.95
+ 97.75

41,492,272
16,283,565
3,506,818
39,806,551
57,398,923 *
20,588,056
3,644,491

+

54,485,101

+

47,304,676 '

—19.40
+

5.14

+'55.51
—51.48
+ 38.06

+
r

4.88

+$9.48
+ 35.59

;

Bans Sight-Seeing Buses

:

The

Office

portation

on

sightseeing

of

Trans¬

Defense

May 20

bannejd all
services ancj. re¬

bus
chartering of buses to

stricted the

such essential operations as trans¬

portation of the armed forces,'war
workers and school children.
It
was

estimated that the ban,

effec¬

tive June 1, will result in an an¬
nual saving of over 100,000 pounds

of

crude

Joseph

rubber.

B.

that such
sent
war

a

a

real

effort.

ODT

Eastman

Director

pointed

saving would
contribution
/

out

repre¬

to
'

the
-

2048

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, May 28, 1942
"The

Treasury Offers l'/2% Holes Of I94S To
meeting of the Advertising

a

Association of Group V, the Sav¬

ings Banks of Brooklyn, Queens,
Long Island and Staten Island,
Alex. E. Leighton of the Williamsburgh
Savings
Bank,
was
re¬

the

Chicago

merce"

of

"Journal

Com¬

May 22, from which
foregoing is learned, Mr. Van
a member of the Agri¬

the

Council

of

the

Chicago

Association of Commerce, and has

Chairman, and Ervin M. been active in the affairs of the
Burrow, Secretary of the Associa¬ American, Bankers
Association,
tion.
Both were unanimously re¬ having served as a member of
elected and will be serving the the Executive Council,
and the
in their

for

seventh

the

year

Commerce

justment

Y.

Savings

Dollar

(the

of the

Gerald

Miller

C.

As¬

Federal

Reserve

System

as

Edmund

Treasurer,.,

an¬

interest from that

bear

the

the

HOLC

were

to

office

Flatbush

the

of

at
Church and
Avenues,
a
few blocks

Ocean

The Parkside office orig¬
inally opened on July 30, 1930, at
562 Flatbush Avenue, and some
away.

later was moved to its pres¬

years

ent location.

ciation

47th
in

of

the

ing

Credit

Men

Western

annual

May 10.

the

William D. Ireland,
of

dent

National

the

of

Bank

Vice Presi¬
Rockland

since

Boston

1933,

on

elected President of
the Worcester County Trust Co.,
Worcester,
Mass.,
to
succeed
George Avery White.
Mr. Ire¬

May 19

was

will

land

24, the

Aug.

his

assume

date

the

President of

as

Life

Mutual

State

which Mr.

on

White takes office

duties

new

Assurance

of

the

business

O.

E.

has

Long

the

of

elected

been

North

Side

Co. until

L.

Vice-President

has served

the

of

of

Seattle

the

National

Bank

of

in Seattle in 1929.
1929

he

Seattle and
President

then

of

UNITED
1

First

bank

Bank

of

Renton

STATES

Dated

and

Dec.

1942

Blaine

has

I. Offering

Loan

.Edwin

•

signed
dent

Executive

as

re¬

Vice-Presi¬

of the Ameri¬

Director

and

has

National Bank and Trust Co.

can

of

Home

Van

N.

in

Chicago

become

Federal

Land

the

and

had

President

as

National

previously

of

Con¬

the

Bank,

Lincoln.

According to the financial
(by Nancy Mclnerny) of

column

Requested From Corps.

for

of Notes

conducted by the
Office of Price Administration, as
announced May 2, apply only to a
being

reports

selected list of corporations with
assets in

excess

of $250,000 in the

manufacturing, mining, construc¬
tion and wholesale fields, H. F.

Taggart, director of the OPA ac¬
counting division, said on May 25.
In
indicating
this,
the
OPA
further said:

to clear up
*

was

made

confusion which

ex¬

ists, particularly among retailers, as to whether they are required to make reports based on
balance

count

sheet

data.

and

income

Retailers

are

ac¬

re¬

quired under the General Maxi¬
Price Regulation to file

mum

March prices

before July 1 with

the OPA but these reports have
nothing to do ,with the balance
sheet

and

income

account stu¬




applied for, and to close
as
to any or all sub¬
at any
time without
and any action he may

notes

of

take

in

final.

these

shall

respects

Subject to

these

in

be

full.

Allotment

sent

out

upon

before June 5,

the

United

only Home Own¬

Corporation

1942,

or on

Owners'

2*4%

dated July 1,

pons

attached

either

to

bearer

issue

securities

bonds

of

$4.28177 per $1,000 in
of Series S notes) will be

of
and

California, Nevada,
Washington.

Oregon,

The

latter

studies

each

hover

a

limited group of 25,000 corpora¬
tions in* the catagories listed
above. ■/'

Dec.

year

amount

15

and

until

becomes

will mature Dec.

Dec.

the

15

in

principal

payable.
They
15, 1946, and will

not be subject to call for

redemp¬

Only those firms re¬ tion prior to
maturity.
ceiving
the
questionnaire —
2. The income derived from the
Form A, Annual Financial Re¬
notes shall be subject to all Fed¬
port, and Form B, the Interim
eral taxes, now or hereafter im¬
Financial Report—are required
posed. The notes shall be subject
to supply data.
v
i
r
to estate, inheritance, gift or other
Retail
businesses
excise taxes, whether Federal or
have
not
been asked to file except in a State, but shall be
exempt from
few

cases

where

corporations

wholesale

and

retail

activities.

Publishing
empted

but

V

firms

are

commercial

ex¬

print¬

ing, however, is subject to the
Emergency Price Control Act

payment

all taxation

posed

now

or

hereafter im¬

the principal

on

thereof by any

State,

of

accrued

or

interest

of the
possessions of the United States,
or by any local taxing
authority.
•3. The notes will be accepted at
par during such time and under
or any

Treasurer

of "the

United

Plans for the financial
reporting
program

were

disclosed

in

these

columns of. May
H page 1871.

payable
notes.
; f;

to

at
:

the

maturity

of

the
' I

/

4. The notes will be acceptable
i

secure.

deposits,

ofpublic

States,

ing subsequent dates should be at¬
tached

bonds

such

to

when

sur¬

rendered, and if any such coupons
are missing, the subscription must
be accompanied by cash payment
equal

to

missing
be

the

as

a,

the

United

whole the cost of
11.7% from April,

living rose
1941, to April, 1942.

Payment On Danish Bonds
Henrik
ister

Kauffmann, Danish Min¬
Washington, issued the

in

following statement
the

on

information. of

May 25 for
holders

of

Kingdom of Denmark 20-year 6%
external gold bonds, due Jan.
1,
1942; 30-year 5%% external loan

bonds,

:

and

34-year

due Aug. 1, 1955;
4V2% external loan

due Nov. 1, 1955; and
25-year 5%

coupons.

at

dom
of
Denmark
45-year
5%
sinking fund external gold bonds,
series IX, ;of
1927, due Dec. 1,

1972:

the purpose of
paying
June 1, 1942, coupons of
City of

Copenhagen 25-year 5% gold
bonds, due June; 1, 1952, and

The bonds must
expense and

the

Facilities for

of the holder.

v

„

For

amount of the

face

delivered

risk

v

June

1, 1942, coupons of Morttransportation of bonds by regis¬ V; gage Bank of the Kingdom of
mail insured may be ar¬
Denmark 45-year 5%
sinking
fund external gold
ranged ■ between : incorporated
bonds, series

tered

banks
the

and

trust

Federal

companies

.

and

/

Reserve

Banks, and
holders may take advantage of
such arrangements
when avail¬

able,

2.

pay¬

profits taxes

17.6%

external gold
bonds, due Feb. 1,
Washington, D. C. Coupons dated
July 1, 1942, and all coupons bear¬ 1953; Mortgage Bank of the King¬

such

utilizing

printing, if Requested to do

Secretary of the Treasury in

States

In y

Corporation

agents.

ment of income and

com¬

available.^

gold bonds, due April 15, 1962;
bonds of City of Copenhagen 25-year 5%
Series G 1942-44 in coupon form gold bonds, due June 1, 1952; and
tendered
hereunder
should
be 25-year 41/2% gold bonds, due May
presented and surrendered with 1, 1953; Danish Consolidated Mu¬
ex¬
the subscription to a Federal Re¬ nicipal Loan 30-year 5V2%
ternal sinking fund gold
serve
Bank or Branch or to the
bonds,
Loan

banks and trust

required to file the finan¬

which

are

Coupon bonds.—Home Own¬

such rules and regulations as shall

cial reports.

Newark.

gold

be prescribed or approved by the

so, are

interest

V. Surrender of Called Bonds

commer¬

and firms engaged in
cial

in

ers'

15, 1942, and there¬

June

the

the assignments on the bonds sur¬

1, The notes will be dated June

on

of

case

rendered.

Description of Notes

on

the

G

5, 1942, and will bear interest from

basis

In

Series G registered bonds, checks

1.

after

acceptance of the

to

that date at the rate of iy2%
per
annum, payable on a semiannual
ac¬

paid following

for

figures

smallest, 9.1%,

in

when

and

case

cities

The largest increase was
in Joliet, 111, the

surrendered,
and accrued interest from Jan.
1,
1942, to June 5, 1942 ($9.63398 per
$1,000 in the case of Series G
the

the

parable

1942, must be

Series

accepted.
n.

sur¬

veyed each month by the Confer¬

maturing July 1, 1942, which will
be accepted at par, and should ac¬
company the subscription.
Cou¬

bonds and Series S notes tendered
and

April in

industrial cities

Loan

limited

such

from March to

66 of the 67

the United States as a whole, the
Corpora¬ cost of living rose 1%. The Board
tion bonds of Series G
1942-44, also says:
called for redemption on July
1,
The cost of living was higher
1942, or in Reconstruction Finance
this April than in April,. 1941, in
Corporation notes of Series S,

Home

be

In

etc.

earners

be made only

may

will

Men,

wage

Board,
New
York.
The
largest increase was 2.5% in Balti¬
more, Md., the smallest, 0.2% in
Front Royal, Va.
One city, New
later Haven, remained unchanged.
In

^

of

Credit

for

low-salaried clerical workers

ence

IV. Payment

circular

of

and

notices

promptly

amount

as

Living costs

reserva¬

the

the

of

In Industrial Gilies

be

this

later Vice-

President

April Living Costs Up

books

will be drawn in accordance with

and

combine

The announcement

the

scriptions

all

States, designated V/2% Treasury
of Series
B-1946, in pay¬

•

Studies of corporation financial

any

offering under

President

dies being conducted by the
counting division.

OPA Clarifies Data

States

be communicated
promptly to the
Federal Reserve Banks.

part, to allot less than the amount

The amount of the

and

Board

mem¬

to
the

Secretary of the Treas¬ HENRY
MORGENTHAU, JR.,
the right to reject
Secretary of the Treasury.
subscription, in whole or in

Council

ber of the

as

up

by

reserves

Seattle Association of Credit Men;
member
of
the
Northwest

years;

and

issue interim receipts
pending de¬
livery of the definitive notes.

as

securities.

Faculty for eight

basis

indicated

Secretary of the Treasury to th^

•

bonds, Series G 1942-44, called for
redemption on July 1, 1942, or
Reconstruction Finance Corpora¬
tion 1% notes of Series
S, matur¬
ing July 1, 1942, may be tendered.

the National Association of Credit

1937

tinental
Neb.

of

Men, Mr. Blaine has long been
active; he completed a three-year
term in May, 1942, as a National
Director,
representing
District,
No. 10, which includes the States

been

with the American National Bank

served

member

associated

has

Home

since

as

Omaha, Omaha, Neb. Mr.

Bank of
Van

to

order
the

of

President

of

authorized to act

are

agencies.

of notes

in

from the people of the United

par,

of which

served

later President

the

on

amounts

2. The

or

1. The

ment

and

to

subscriptions, to make al-

lotments
the

requested

1. Payment at par for notes al¬
lotted hereunder must be made on

Secretary,
Washington, May 25, 1942

ers'

Board

re-{

ceive

and

Washington.

partment
official

will

Notes

the

of

are s

authorized

Banking & 2. The Secretary of the
Treasury
may at any time, or from time to
subscriptions for account of cus¬ time, prescribe
supplemental or
tomers, but only the Federal Re¬ amendatory rules and
regulations
serve Banks and the Treasury De¬
governing the offering, which will

lotted

and

15

Office of the

the Seattle Chapter of the Ameri¬
can
Institute of Banking, which

in

the holder.

1. As fiscal agents of the United

tions, all subscriptions will be al¬ increased

TREASURY DEPARTMENT

1933-35.

served

as

bonds

institutions generally may submit

allotment, and

of

member

also

The

at the expense

States, Federal Reserve Banks

Branches and at the Treasury De¬

notice;

of the Public Debt

he also

r;

AMERICA

Fiscal Service

Bureau

Mr.

—

Department,
Currency,

and

C.

Treasury

Department Circular No. 686

other

activities

D.

a?

Branch

or

VI. General Provisions

V

allotment.

Vice-President.

*

OF

Due Dec. 15, 1946
Interest payable June 15

Director since the

a

Loans

■

surren¬

subscription to

Treasury

and risk of

6. The notes will be subj ect to
general
regulations of the

here¬

now or

bearing interest from
June 5, 1942

organization in 1934. Ray¬
mond G. Geltz, Treasurer of the
institution, has also been made

as

the

be delivered

interest

the

un¬

B-1946

National

during

must

The notes will not be issued

ury

bank's

'

such,

as

Vz % Treasury Notes of Series

Executive Vice-

the

of

1941, in¬

new notes will not

exemption,

and

Bank

the

of

The Treasury's official circular
describing the new notes follows:

Commerce

Avenue

provisions

der Federal tax laws

For four years
Cashier of the

was

First

1928,

the

after enacted.

1924, and then as Credit
of the
National
City

Bank

to

Debt Act

terest upon

and

until

Public

have any

Wash¬

Manager
of

May 27.

on

Secretary of the Treasury,
He has been Vice-President of the pursuant. to the authority of the
Second
Liberty Bond Act, as
Peoples National Bank since that
amended, invites subscriptions, at
and time.

of Pittsburgh.
Mr.
is Secretary of the
Clark Co.,
was
formerly

posit Bank
Long, who
D.

De¬

the

Bank

banking
world
since
his
graduation
in
1922, serving as Credit Manager
in Spokane for the B. F. Goodrich

Peoples
President

University

with

partment,

ington, Mr. Blaine has been active
in

after

Co.

the

to

Washington,

in registered form.
1

the

Division of

at the Federal Reserve Banks and

gradu¬

a

are

outstanding in
$875,438,625 and the

Pursuant

America, Los Angeles, who
held the post during the past year.
ate

bonds

000.

with

and

Federal Reserve Bank
or

$100,— $500,
$10,000 and $100,-

$5,000;

presented

hereafter

closed

of

A native of Seattle and

basis,

$1,000,

", and thereafter

;;*//•'

;

be

•

notes

denominations-- of

annum,

semi-annual

Bearer'

$25,000 or less of the HOLC bonds.

He succeeds R. W. Wat¬
of

dered

coupons attached will be issued in

date

In the latter case, the books were

congress held
during the week of

Vice-President

son,

per

5.

v;•,-,'

r'

;

1,

May 26, except for the receipt of
subscriptions
from
holders
of

credit

Cincinnati

1 V2 %

a

culation privilege;

Treasury

Department,
now
or Federal Reserve Banks of the re-L
$275,868,prescribed, governing spective districts, to issue allot-,
000.
:
>
<<
ment notices, to receive
United states notes.
payment
The subscription books for the
for notes allotted, to make de¬
III. Subscription and allotment
current exchange offering
were
livery of notes on full-paid sub¬
closed at the close of business on i :' 1. Subscriptions will be received
scriptions allotted, and they may

the

at

July

on

RFC notes in amount of

represent¬

Division

on

amount. of

T.

company,

of

rate

to

Treasury
5, 1942, and

redemption prior to maturity. The

nounces that the following banks

•

ferred

redemption

nevy

but will not be subject to call for

recently admitted to mem¬
bership in the System:. American
Wolf Jr. as an Assistant Secre¬ Bank and Trust Co., Miami, Fla.;
tary, Charles R. Sitler, Jr. as an Bank of Oakfield, Oakfield, Wis.;
Assistant
Secretary,
Lloyd
F. State Bank of Northfield, NorthDempsey as an Assistant Secre¬ field, Minn.; Austin State Bank,
tary and Lester J. Ferguson as Austin,
Minn.;
Peoples
Bank,
Lakewood
Auditor.
•;
•
Village,
Cal.;
State
Bank of Virginia, Virginia, Minn.,
The Brooklyn Trust Co., Brook¬ and the Farmers State Bank of
lyn, N. Y., announced on May 18 Englewood, Englewood, Ohio.
that its Parkside office, located
E. L. Blaine, Jr., Vice-President
at
Flatbush and
Parkside Ave¬
nues,
Brooklyn,^ will be discon¬ of the Peoples National Bank of
tinued
at the
close of business Seattle, Wash., was chosen ViceSept; 26, and * its accounts trans¬ President of the National Asso¬
sistant

The

dated June

at

The Board of Governors of the

N.

Bronx), announces .y the
following new of¬

election

ficers:

Bank,

for

interest

accrued

notes are

payable
The

called

will

sion.

respective capacities. r

of

June 5,-1942.:

Commis¬

Marine

and

Corporation,

the

to: ytfvU
should

and the
Series S 1% notes of the Reconstruction
Finance Corporation, matur¬
ing July 1, 1942. Holders of these securities were given the
oppor¬
tunity to exchange themfor notes^
on a par for par
basis, with an ad¬ moneys, but will not bear the cir¬

elected

Association

Loan

ers'

Home is

cultural

'

Secretary of the Treasury Morgenthau on May 25 offered
up to
$1,151,000,000 of 1 V2% Treasury Notes of Series B-1946 in
exchange
for the outstanding Series G 1942-44
2y4% bonds of the Home Own¬

of

of

exchange for Treasury Notes
of-Series B-1946 to be delivered

f, Holders Of Maturing MUM 0F0 Issues
At

Secretary

for

V'...

their

be

1942-44

G

tendered

assigned

payees

:

or

by

to
■\i

the

is

the

estimated

make

to

particular

be

coupon

so

far

as

necessary

payments

to

should

registered

assignees. thereof; to

holders, other than

residents of
of these two

issues.

>

7,.\ June

in registered

hereunder

put

Denmark, of bonds

as

Registered bonds. — Home
Loan Corporation bonds

of Series

it

,

Owners'

form

to

paying-agents in funds

incorporated

companies

IX, of 1927, due Dec. 1, 1972, I
propose

ments
.y

■

t■

1,
will

licenses

as

:;yy:

1942,
be

coupon

may

be

paying-agents, by
;■ States

pay-

subject to

Treasury.;.;

such

granted

to

the -United
y,,*
4
,