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MAY SI
.
ESTABLISHED 1839
Edition
In
IS#'
3 Sections-Section 1
Reg. U. S. Pat. Office
iVolume
163
Number
440? *
New York, N. Y.,
Why I Voted
Against Truman
Price 60 Cents
Thursday, May 30, 1946
A Constructive Financial
a
Copy
Utilities Integration Program
Program
Speeds Up
Anti-Strike Bill
By HON. FREDERICK C.
SMITH
U. S. Representative from Ohio
In addition to objecting to method
of presenting the bOl Rep. Smith
holds it is unnecessarily dictatorial
and akin to State Socialism. Says
if
measure
passed could
be
not
readily repealed, and, like every
other authoritarian machinery, will
extend and intensify its power, v
1 voted against the President's
"emergency" strike control bill
for several
The'
reasons.
nation"
tense
v'df
M'
was
the '
and
Congress
strong. Action
by both the
A d
4
%
jf&
Li
~
Pff
r
t
Wjm** <
1%
i nistra-
m
f*EL
jm'
fL^.
pressure upon
;
\
tion and Con-
£
overdue.
y.
The
,
Jill
jfe^Br
hour demand--
\
/* %. j
'A.
'
gress was long
4PM
coolness
ed
delibera-
and
but
tion,
of
was
pHE» JBBBBmSSi
the
House
giSBP' Jm
the
mood
rush
Allan Sproul
Frederick
to
the
J.
"
through
whatever
Smith
C.
President
recom¬
mended,, which
resulted,, in
opinion, in the
bad legislation.
passage
I
v,
(Continued
;
■
my
very
2932)
on page
of ^ Regular
Index
-page
of
Features on
2972.-
villi!
Bond Club of New York
Field Day Pictures on pages 2934,
2935, 2936 and 2937.N
L. E.
State and
Carpenter & Co. *
AerovoX Corp.*
Nu-Enamel
*
Prospectus
on
Municipal
f|i
Bond
request
Successors to
■
,1. *
HIRSCH, LILIENTHAL &
f-
for Banks, Brokers '
,j
Members New York Stock Exchange
and other Exchangee
'
2-0600
Chicago
Teletype NY
Cleveland
1-210
London
Geneva (Representative)
;
|
.
Street, New York 5
BOSTON
Albany
Dallas
Pittsburgh
Springfield
Buffalo
Syracuse
Washington, D. C.
Scranton
Wilkes-Barre
New Haven
Woonsocket
CORPORATE
BOND
NEW YORK
14 wall st.. new
york 5.n.y.
SECONDARY
INCORPORATED
Members
N.
Tel.
REctor
TELEPHONE- RECTOR 2-6300
Y.
Security Dealers Ass'n.
Philadelphia
2-3600
New York 5
Teletype
Telephone:
NeW York 4
Tel.
UTHE
N. Y. 1-576
Enterprise 6015
CHASE
NATIONAL BANK
Tele. NY 1-733
LOS ANGELES 14
DIgby 4-7800
I:
OF THE CITY OF NEW YORK
New
England
CANADIAN
Winding Co. Com.
Public Service Co
SECURITIES
Appraisal
*New Haven Clock & Watch Co.
Kobbe, Gearhart & Co<
45 Nassau Street
30 Broad St.
634 SO. SPRING ST
3
YorJCCurb Exchange
*Firth Carpet Company
,
YORK STOCK EXCHANGE
•; >:•:
Members. New
*Air Products, Inc. Com. & "A'
■;
MEMBERS NEW
Members New York Stock Exchange
N CO I r O RATI
WALL STREET
HARDY & Co.
•
from
HUGH W. LONG and COMPANY
48
^Universal
FINANCE
MARKETS
BULL, HOLDEN & C2
FROM
I AUTHORIZED DEALERS 1
or
Bond Department' >, :j;
and Dealers
"
PHILADELPHIA
Baltimore
BROKERS
BE
MAY
iiviiiOBTAINED
INVESTMENT SECURITIES
Troy
AROSFECTUS
Established 1927
.
64 Wall
HAnover
request
on
R. H. Johnson & Co,
CO.
25 Broad St., New York 4, N. Y.
Bonds
Service
Prospectus
Hirsch & Co.
Brokerage
■;»'x ^ Preferred ' V
^Prospectus
on
120
New
York
■
I'l/'
Stock
Exchange
Broadway, New York 5, N. Y.
Telephone:
REctor 2-8600
Bell Teletype:
Values
'/
request
HART SMITH & CO
NY 1-635
IRA HAUPT & CO
Members New
and
Members
Reynolds & Co.'
Members
of
available upon request
Nexo
52
York Security Dealers
WILLIAM
Bell
New York
ST.,
N. Y.
Assn.
HAnover
2-0980
Teletype NY 1-395
Montreal
111
other
York
New
York
REctor
6
Hancock 37SO
v.
Toronto
Direct
Exchange
10 Post Office Sq.
Boston 0
2-3100
Tele. NY 1-2708
Stock
Principal Exchangee
Broadway
Private
v.,
Wire to Boston
y:
,
Thursday;. May 30, 1946
THE COMMERCIAL & FINANCIAL CHRONICLE
Trading Markets in:
■■
Benguet Consol.
'
■
Changing Costs of Electric Power Generation
By ERNEST It. ABRAMS
Lithograph*
Havana
■
~
..,
Mines
Pfd.
&
Com.
\i
H.yy:
Gerity Mich. Die*
American-Barge
.
■
,
tion
KING & KING
y*': Members
;■
■
Seeurity Dealers Ass'n
flecurlties Dealers, Inc.
Exohange PI., N.Y. 5 HA 2-2772
Ass'n* of
Nat'l
40
BELL TELETYPE
f "*
I
.
NY 1-423
rates——
to
added
rail
of
.
R.
Ernest
Y. 1-1227.
Rogers Peet
Common
Mississippi Shipping
77*'
;
usual
hydro
York Curb Exchange'
Telephone COrtlandt
•
•
-
i
this decade
Iv
■■■;r:ry
%
■ ? ■■
-v-V v;-'...: y
biturpinous coat
change in its delivered cost
2940)
on page
<...
A.
May
but keep1
the
...
1'
*
V
i'-
"t V
■
v
iKft.i ^5
y
>
y-±':
we
reaching for the stars,n
tackling
is ' already
Council
problems running the wide gamut
from microbe-killing to world¬
universal
suffrage.
Reflecting
as
read
"yy
-
Preferred
"
Bought—Sold—Quoted
by Mr. Winant; follows:
20 Pino Street,
McpONNELL &fq
ioyyh
Hew York 5
Bell Teletype NY M*43
Members
/■;■ /
New
Telephone: WHitehall 3-1223
a
120
freedom
td encourage? prddiic^
tionj help to open up transport:
arid clear communications, end to
"
■
cial Council
stirs the
■
York stock Exchange
BROADWAY, NEW YORK
world*
hearts of
people all over the
the common
You
make the peace
can
Tel. REctor 2-781S
a
for. you to promote a.
recognition of the dignity
worth of the human
to
Stamped Preferreds
We Maintain Active Markets in U, S» FUNDS for
Colonial Mills
Macfadden
& Preferred
Common
;
Power
Marion
■
POWER
ABITIBI
Publications
"To this: great task
MINNESOTA
STEEP
functions
next
rections
and
stipulations
several- technical
is.
Canadian Securities Dep't.
Members N> Y.
37
-
Security- Dealers Assn.
Wall St., N. Y. 5
Bell
Teletypes—NY 1-1126 & 1127
;,
For? Banks, Brokers
Bowser
,u;.
Telephone BArclay 7-0100
& Dealers
Harrisburg Steel
Trading Market
preparatory work that has
Diebold, Inc
c q n
fe
previous
Bought
——
r e n c es
Members New York
Simons, Linburn & Co.
Members New
25 Broad
York Stock Exchange
St., New York 4, N. Y.
HAnover 2-0600
Tele. NY 1 -2908
Members N. Y. Security Dealers Ass'n
74 Trinity
Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
DIgby 4-7060
-
Pittsburgh
-
St.
Louis
5, N; Y.
Teletype NY l-OSflT
1
'the Council with the
•
/
Attractive for
y
'y/;-' V-'/V i
Retail
'7 '• j
'
Macf adden
pro¬
pre¬
Subse¬
structure.
beginning, on. April
Publications
v;v':,.: V ^
'"v
-s
'■
"v."
-
Common
29
have been
continu¬
ously, meeting to; prepare their re¬
Exchanges
ports to the Council.. In
these re¬
ports; recommendations are
Teletype. NY" 1-672
VfrvntiniiArl
A1T
Circular
on
Request.
made
Curb and Unlisted
Securities
'
v
/ V'rt
MICHAEL
HEANEY, Mgr.
J-G-White 8 Company
Joseph IManus &Co.
INCORPORATED
Jefferson-Travis Corp.
NEW YORK 5
ESTABLISHED 1890
Tel. IlAnover 2-9300
Tele. NY 1-1815
Chicago Stock Exchange
39 Broadway
Digby 4-3122
;
^
Leased Line Stocks
Empire & Bay States
York Curb Exchange
Members■ New
>
5, N. IT.
Teletype NY 1-2361
REctor 2-7630
Western Union
WALTER KANE, Asst. Mgr.
37 WALL STREET
Dealers Assn.
Members New York Security
120 Broadway* N, Y»
International Ocean Telegraph Co.
Pacific & Atlantic Telegraph Co.
Southern & Atlantic Teleg. Co. ;
Common
^
C. E. de Willers & Co.
nnffp
WARNER & SWASEY
Private Wires to Cleveland
Detroit
Stock Exchange
1; WalL St.,.New York
boughtx
Troster,Currie & Summers
Issttet
Gude, Winmill & Co.
held
BOUGHT—SOLD—QUOTED
Sold
All
ses¬
Assembly
of the General
commissions
NEW YORK 6, N. Y.
X-\t
'
The Preparatory
Common
San-
,
Minneapolis & St. Louis R.R.
to build
serves
COMPANY
j. -f #.. < •. :it#
Consolidated* Film Ind.
here at Hunter the several nuclear
Goodbody &. Co.
115 BROADWAY
v
v
r-
,
Members N. Y. Stock Exchange and Other Principal
Hanover 2-4850
Buckeye Iricubator V
its
to
commissions* so
This
urgent plans.
organizational
il
5Yeenae<mAGompaT\u
pfd:
Corp. 7% old
Brill
proceed witit their
that they may
the
..
Fac^
5s/2000
liminary outline of its duties and
PAPER
NEW YORK 5
HAnover 2-0470-
Chicago, Mil., St, Faul &
di¬
its
consist
vided
ftOCK IRON MINES
York Curb Exchange
the
of
of
will
quently
^
Com; & Pfd;
Members New
64" WALL ST.
Teletype NY t-il40-
.*
Council
ing
United Piece Dve Works
■''/■"•"sivy
Frank C.Masteison& Co.
.the United
in Londbm during; the first meet^
Preferred
& ONTARIO
Common
£'{$■ y
•
BULOLO GOLD DREDGING
England Co.;
Hotel Waldorf Astoria
person,
pledges its full support."
States
Commission
PAPER, Common & Preferred
BROWN COMPANY,; Common &
S\:
Shovel
Preferred
Northern New
&
Eastern Footwear
fundamental
advance
sion in London,
'
Colonial Utilities; Corp;
higher standards of living;
been done since the
& Maine RR
Boston
(Va.)
Common Stock-.
rights of man through the world.
on
reality for them.
j
is
"It
The
and So¬
Teletype NY 1-1919
Central States Elec.
"want,
*
second
this
opening; -of
session of the Economic
New York'Curb Exchange-
Bell System
vic¬
;"Your task is to achievfe
from
Economic,
and Social Council'
H. G. BRUNS & CO.
Broadway WHitehall 4-8120
50
brave men.
v
Truman's
which,
.
Members New York Curb Exchange
to accept
poverty and in¬
security in a world made free by
and
Truman Grbets^
"The
Members New York Stock Exchange
1
Axis powers; only
and
President
was
r
Edward A. Pureed & Co.
hunger, disease,
ambitious pro¬
the
1 ^
Jockey Club
domination
the
Adams Hat
Monmouth Park
struggle to prevent
of the world by
"We did not
the
fuller
brief address of welcome
Guaranty Co.
Struthers-Wells
and
A. Wilfred
gram
Common
Common
must
keep our feet
on the ground,
ity
Home Title
Campbell
S.
of all human¬
woman
Common
•
"j
Chicago Corp;
tories of peace.
wide full employment to
Byrndun Corporation
-
branch oificet
our
Textiles,. Inc.
-yyv-
construc¬
greetings:
"you carry on
your
shoul¬
ders the hope
assure
^
;■
-
-y ■
was
(Continued
■■£££ A: v;''
during
consumed
fuel
•
v.
the
mobilizes
Council
tive forces of mankind for the
*
boiler
all
Lie's
awe-inspiring
80% of
since around
Moreover,
7-4070 ' • J
any
■
;
Soya Corp.
microbes to full'
matters ranging from
on
General
:
Teletype NY 1-1548
Bell System
NY 1-1557
>
Globe Union Inc.
{'^
Abrams
ing from 73 billion kilowatt-hours
m
1036 to 132 billion in
1945.
Street, New York 5
31 Nassau
High Gear
Arrangingr for continuation of UNRRAV benefits |
Messrs.. Winant and Noel-Baker; the U: S;:
and British delegates, voice great expectations. Australian Minister
Evatfs arrival presages strong acceleration- of political decisions.
kilowatt-hours of electricity, rang¬
Vanderhoef & Robinson
New
St., New.York 4, N. Y.
HAnover 2-0700
Direct wirti to
employment.
electricity produced in this coun¬
try during the past ten years gen¬
erated In- f uel^consumihg ■ plants*
the price of fuel has affected the
production cost of 1,083 billion
W. & J. Sloane
Members
Members New York Stock Exchange
25 Broad
New Orleans, La.>>Birmingham, Ala.
.
plants
today.
HUNTER COLLEGE, New York, May 29—The Economic and
These are the i
important de¬ Social Council of 18 member countries, a top-level body of the United
Nations, ; has<®>velopments in
"As you begin your delibera¬
finally gotten
the generation of electric power
down to real tions, I extend; to you the heart¬
over the past decade.
business. Con¬ felt welcome of this country and
Although apparently insignifi¬
sincere
wishes of all . the
vening , in
a the
cant in its impact on unit costs,
ceremoni a 1 American people for your success.
the delivered, price: of fuel is an
session Satur¬
[ "While the Security CPuncil
important element of cost in- the
day last, with stands guard against new threats
generation
of electric
energy.
Secretary to peace, the Economic and Social
With roughly two^thirds Of all the
,
WOrth 2-4230
Common
<
v k' -
STEI NEE; BOUSE; &.
after its termination;
factors
than
Baltimore* Stock Exchange*
N. Y. 5 . ■
:,/•
Bought —' Sold
r
n
#v
*
■
By A» WILFRED MAY
Formulating decisions
lower
plant
Mitchell & Cranpoity
\'y,
-
-
———..........
Moves Inlo
•
e n-
ergy at
cost at
J
"
1
y
„
am
■
fuel
electric
1
^
Economicand Social Council
generate
can
120 Broadway,
y
»
natural gas as
boiler
■
'i
4
\
.
"using
plants
Preferred
Bell Teletype N.
,k'tfrSK
—
Only
steam-electric
Bougfib—Sold*—Quoted
.
1 *u
"*
labor.
ELK HORN COAL
*
><
i|y|
freight
offset
Members
",'1
'»*»,/■* A" It
%
^
.
increase
h
*>■<
»
iti use;i Mainteinsi that despite higher capital costs, hydroelectric genera¬
steam at average plant factors.
Expects further agilation for public: power
costs
|;i;
/>*
\
reign of bituminous
.v-v:K:-i.■-
Common &
y
4
*
coal as the major boiler fuel in the generation of electric energy ap¬
pears nearing an- end;
Steadily rising prices* induced by mounting labor and transportation costs* are
placing it at a competitive disadvantage/with oik and natural gas. :Tlie* constant1 decline in cost of -capital
has benefited hydro-generation more tjian steam-generation of power.
At usual plant factors, elec¬
tricity can now be produced cheaper with water power than with coal arid this differential promises to
become more pronounced as: bituminous prices arise urdT pressure of boosts in miners' pay and as
The long
York
New
,
r
cheaper than
now
$ development.
1920
Established
't'1 /'?
pipeline capacity1 restricts
Prospectus
*With
\
price rises place bituminous cpal at competitive disadvantage in generation of electric
energy;
Contends further increases [toy cover \wage and freight rate boosts will stimulate the use of oil
and? natural gas.
Holds latter already is most economical for power production;. and? tfcafc only lack of
Samson U nited Pfd.*
'
S,''f
S1
>h ,V J
<,T
Writer says past
«
Teletype NY 1-1610
* '
.
quoted-
,
Arnhold and S. Bleichroeder
INC.
'
New York 6
eold
Teleg. Co.
30 Broad
WHitehall
St.
3-9200
New York 4
Teletype NY 1-619
.Volume 163
Number; 4494
THE COMMERCIAL & FINANCIAL
CHRONICLE
AND COMPANY
NEVER PUT BANANAS
IN THE REFRIGERATOR
—and
if keeping
bonds
and
running
them, to
high
a
lot
a
stocks
obsolete
of
ice
on
has
you
temperature, sell
for; aohae; cool cash.
us
.
Obsolete Securities Dept.
99
V'
WALL STREET, NEW YORK
Telephone
WHitehall
Book
Cadillac
Commodore
Schulte
Real
61
United
4-6551
Hotel
Estate
Pfdl
Broadway
Piece
Dye
Common
Members New York Security Dealert Assn.
.
39
New York 6, N. Y.
*
p
Broadway
HAnover 2-8970
U
Teletype NY 1-1203
PLASTICS
MATERIALS CORP.
Prospectus
vf
on
Request
By PAUL EINZIG
,
Mr. Einzig calls attention to impression in Britain of
Secretary
Vinson V statement regarding extent of
application of
proceeds: of
British loaa torepayment of blocked sterling balances.
Says these
likely to cause
resentment because of large amount of loan
proceeds that are un^available >to obtainneeded dollars. Sees vratification of. loan
^jeopardized.
-i&&C :Srf§j >-""SlSfB
details
were
not
disclosed to Parliament and
are
LONDON, ENG.—The statement Mr. Vinson is reported to have
made iiit the; course of his evidence before the House of
Representa-;
tives Banking ♦>—
r :
'—7——-——
'
£
AXELSON
MFG. CO.
.
and
Currency {
Committee
■
May
-
the
terms
4^1
E
"'Psf
ll
British
on
Gov-
B
.
,
settle the £ 3,-^ text of Mr. Vinson's statement,,
can be no doubt that his
sterdisclosures^, if&^confirmed; will?
balances,
caused
stir
some,
lead
cial
certainly
single
to the
it is
in
the
Engineers Report
on
BOUGHT
•
request
SOLD • QUOTED;
.
of
the
tnis side,
seems
to
(Continued
miim&iom
Members New York Security Dealers Assn.
^
possible to judge;
case
from
newspaper .report
on
aoie
ment
row
Commons.
as
*acts
-
first-rate
a
As far
•
circles.
new
to
House of
in
The details he
has given are
of Parlia-
the
on*
.
500,000,00(1 of there
cal and finanEinzig
the
blocked
British politiPaul
Houses
not
ernmerrt is ixf ing the receipt of the authentic
ling
■MB:'
both
were
occasion of
ratification of the
ioan-agreement in December last,
And- while many peop.e are inclined t< reserve judgment pend;-
the
has
\
ment
They
the
on
iebate in
details pt
which
.
iisclosed,
giv-
20,
rag
1
British public;
on
the
170 Broadway v ;
.
? WOrth 2-03Qo\
Bell System
Teletype NY 1-84
avail-
the ioan agree-
have
contained
on page
al
Haytian Corporation
2949)
Punta Alegre Sugar
Eastern Sugar Assoc.
We
are
interested in
,
Public
offerings oj
Lea Fabrics
U. S. Sugar
High Grade
American Bantam Car
Utility and Industrial
Pressurelube, Inc.
Susquehanna Mills
PREFERRED STOCKS
Spencer IiTraskf& Co*
Sprague Elec;
DUNNE &CO
25 Broad Street. New York-
Leland Elec.
Telephone HAnover 2^-4300
.
■
Members New York Security Dealers
Assn.
25 Broad St., New York 4, N. Y
Teletype. NY 1-5
„
II
Rhinelander Paper
TITLE COMPANY
I
Oxford Paper
CERTIFICATES
Bond &
Mtge. Guar; Co.
Lawyers Title & Guar. Co.
N. Y. Title & Mtge. Co.
V.
Seen rit.y
32 Broadway
Prudence Co.
Mewburger, Loeb & Co
I
Members New
York
I 40 Wall St, N.Y. 5 K
II
Bell Teletype
Stock Exchange
WHitehall 4-6330
NY 1-2033
.:
—
I
Public Nat'l Bank
Quoted
& Tr. Co.
*Prospectus
'
Tfl^tvpe CO t2i
Service
upon request
j
Harrison 2075
83s
Direct Wire
New
Bought—Sold
Service, Inc.
Dealers' A ssi>;
CHICAGO 4
DIgby 4-8640
J
National Radiator Co.
Board df Trade Bldg.
NEW YORK 4Teletype NY 1-832
Wire to Boston
Sales &
Common & Preferred
STRAUSS BROS.
M ember si
Private
g;* Parks Aircraft
American Bantam Car
Plymouth Cordage;
Lawyers Mortgage Co.
t.:
J
WHitehall: 3-0272—Teletype NY 1-956
Ior| Sfoife Exchange
v
C. E.
•
i
^
s
,
74
,
York—Chicago—St. Louie
C Kansas Cityr—Los Angeles ^
ESTABLISHED 1914
Telephone:
BOwling Green 9-7400
...
r
;
Trinity Place, New Xor^ ^ N.
.
-
-
-
Unterberg & Co,
Members N.
;
Teletypes:
NY 1-375 & NY 1-2751
61
Y.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone
BOwling
Teletype NY
Green
1-1666
9-3565
;•
fur I
fjSafcn
' '•'
*'•*'♦ "Av Vttdwfr*.!♦.
•
u
i", i-s o'<
■
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srr-~
"
'...•we
j
i
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'£-•
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^THE;COMMEiy:iAlgfi FINANCIALS ^HROKflCItfi'
'2912
ftwftOTrrijrri f ;wV^':,*w£Js'vs tV
••'■
Probieiti
,y;^
Secretary, National Association of Security Administrators.
Securities Commissioner df Colorado
>'r^rV^ r^'* * ;.V V>V.
\!- vf
.'y::i; • iS-iv*- .^V'*/*£ ■'* Y',Jvt^V,.VlV;VV.**'r j'A"-;. •'y'$C:
'v*
Mri, Richardson reviews accomplishments of State .Securities Ad¬
*•
two-fold task of preventing and of suppressing
'
■
ministrators in
Air
Cargo Transport!,
Air Products Com. t
Air Products "A"f
American Bantam Car
Assoc. Dev. & Research
Automatic Instrument
Barcalo.Mfg, Co.
regarding value of securities but to furnish investors with means of
verification of salemen's representations, as well as to prevent sales
of fraudulent issues.
Holds State regulation is still needed, despite
by SEC, and deplores tendency of
legislatures in reducing appropriations for securities com-
authority and control exercised
State
missions.
vestment
.Calls for closer cooperation between members of in¬
fraternity and State securities administrations.
State securities
are
functions of preventing or suppressing
charged with the vital
bonds
Deep Rock Oil
rais¬
the
for
ing of capital
doing
so
have
Chicago R. I. & Pac.
on
before
they go to bat
the security to be offered had to
meet
certain
requirements
for
qualification and the offerer had to
be registered as a dealer in turn
meeting standards enabling him
to be licensed to engage in the
business of security selling.
In the first instance, the pat¬
tern called for the filing of a
prospectus in a public office, con¬
sisting of what is properly termed
full disclosure of pertinent in¬
intellectual, and political freedom; and cessation of reliance on
State.V Decries present trend toward authoritarianism under Rus¬
sian leadership.
Urges us to combat challenge of Soviet system by
affirmatively and strongly demonstrating self-controlled freedom if
indispensable to greater productivity and higher standards of liv¬
ing. Holds unwise domestic policies, as in labor situation and in
withholding truth from people, are rendering our foreign policy
ineffectual.
There is one.paramount political issue in the world today.
Will
leadership rest with those who believe in spiritual, intellectual and
political free'
"
dom
doms
the
for
individual? Or
ship
State and make it
So after the second World War
to
pass
the
to
all-powerful, it will in. some way
take care of them.
leader¬
those who be¬
for freedom,
lieve that such
periL§:|l^®4lf|-#4^ v>v:
should be sup¬
men
can
Union.
be
.
conformed
the
to
authority is vested in a few
who
leaders
life which the
committed
are
The
best for them?
John F. Dulles
cen¬
have
individual, surrenders his
right to -personal freedom and
personal choice in most matters off
economics and religion.
politics,
a
formation concerning a proposed
been marked by a
security offering,'including finan¬
cial facts and supporting evidence
large the area of human freedom.
form
The
discordant elements which
1
e
g
and
is 1 atures
no
propa¬
to the legitimacy
of the deal.
ganda agen¬
Frontier Ind.
as
cies to smooth
Allan S. Richardson
Very properly many exemptions
from qualifying a security were
their path.
General Mach. New
Getchell Mines
Gt Anier. Industries*
} Hartford-Empire Co.*
Jessop Steel
public permitted, such
American
the
After
exemptions; in¬
the hard way that state cluding of course the offering of
regulation was necessary to pre¬ government instrumentalities and
vent, legally at least, the mulcting credit obligations of municipal
of the unwary investor, the legis¬ corporations or those of other po¬
latures 4of some conimonwealths litical sub-divisions. Exemptions
decided rather belatedly to' pass also permitted, included securities
laws to protect people with money of companies whose issues are
to invest from having to run the listed on certain recognized stock
learned
and
of
companies
the wrong stock or exchanges
dealing with an imposter rather whose? operations are under the
than a respectable dealer in se¬ regulatory authority of govern¬
curities. Early legislation created mental agencies such as the Inter¬
a pattern, since followed by most state Commerce Commission, the
risk of buying
Lanova*
Asphalt
Michigan Chemical
Minn. & Ontario Paper
Mohawk Rubber*
Moxie
Purolator Prod.*
Thomas Steelf
of the
never
lalil'Bo^ht-Sold-Quoted
a
_ .
-3*Prospectus available on request. ■?
tResearch item available.
-
^
confident
was
cause
tive
their
and
has
confidence
waned. In order to win two world
peoples have had to
of the freedoms
which they were fighting to pre¬
serve.
Also, these wars have so
impoverished. mankind that in
much of the world men's only
free
wars,
abandon
many
to
is
seem
in
freedoms
to be moral and
eat
polit¬
which they
ical abstractions
neither
They
keep alive.
interest
lost
can
They are
wear.
nor
like waifs who look to some bene¬
factor to
"the
war,
State"
During
for them.
care
of
years
called
something
seemed
be
to
the
arbiter of their destinies,
now, pathetically, they feel
if they sacrifice their free-
*An address by
115 Broadway,1 New York
105 West Adams St., Chicago
'
Teletype NY 1-672
Telephone BArclay 7-0100
their
that
prestige of freedom is tarnished.
Its proponents have lost the initia¬
that
Principal Exchanges
impede the smooth functioning of
seems
righteous and would prevail.
In
that
struggle,
Americans have
been at the front.
But today the
Mr. Dulles be¬
Presbyterian General
Assembly, Atlantic City, May 24,
1946.
Mr. Dulles is a partner in
fore
The
is made uni¬
eliminated
might
are ;
the economic and social programs
and
and
n-:
there
and
of the State.
supreme
Goodbody & Co.
Members N. Y. Stock Exchange and Other
human race.
have had the initiative
they have been supremely
In that way the mass
But they
which
t H. H. Robertson Co.1
*Auto Car 5% Con*. Pfd;
Oxford Paper Com. & Pfd.
Bowser Inc. Com. & *Pfd. * Stand. Steel Sprgs.4% Conv.Pfd.
*Crowell-Collier Pub.
Sunray Oil 4%% Conv. Pfd.
been more than a
small minority of the
concern
American Hardware
Vacuum Concrete
Alabama Mills*
dom have
struggle to en¬
of human free¬
proponents
have
,:
Aspinook Corp.*
(Continued on page 2940)
states, under which, first,
UpsonOorp.*.,
U. S. Air Conditioning
:
That, superficially,
to
promote
calculated
greater efficiency.
Soviet leaders
now
seek world¬
wide acceptance of their system.
In part that is because of a nation¬
alistic desire to enlarge their do¬
In part it
that indi¬
vidual human freedom is a basic
cause of human discord arid in-*
main and to protect it. *
is because they believe
efficiency and that if it is taken,
away it will increase men's ma¬
terial welfare.
They think that
their
experience
at home has
proved that to be so, and that if
their system were given world¬
wide application that would best
assure world-wide peace and se¬
curity.
To achieve that is the
basic goal of Soviet foreign policy*
challenge to freedom is
in part because of
That
formidable
methods of coercion and of prop¬
aganda which th£ Soviet -leaders
use.
We concede'the right'of any
(Continued on page 2955) *
The
COMMERCIAL and
Reg. V. 8. Patent Oflloi
Sullivan & Cromwell.
Publishers
25 Park Place, New
Iowa Pub. Ser. Com.
j .New England P. S. Com.
;
Thrifty Drug Co.
^Dumont Electric Corp.*District Theatres Corp.
fCitizens Utilities
York 8
Southwest Natural Gas
-
Standard Gas Elec.
William D. Riggs,
Great American Industries
tStatistical Study or Special Letter on Request
^Prospectus
on
* Bulletin
or
Selbert,
Business Manager
Thursday, May 30, 1946
Published
every
request
twice
week
a
Thursday
-
-
(general news and advertising iiwi),
FIRST COLONY CORPORATION
■Members New
York" Security Dealers Association
Established 1008
New York 5, N. Y.
S2 Wall Street
Teletype NY 1-2425
Tel. HAnover 2-8080
J.K.Rice,Jr.&Co.
Members N.
Y.
V
Bell
and every Monday
(complete statistical issue—market ;qws»
Broadway
System Teletype N. Y. 1-714
Circular upon request
CTIVE MARKETS
clearings,
banking,
corporation,
records,
tation
Security Dealers Assn.
REctor 2-4500—-120
fpr08pectaa jjp0n Request ■ -'
1
D.
v
>
v
William Dana Selbert, President
♦District Theatres
Commercial Nat. Bank & Tr.
*Prospeetus Available
PugetS'nd P. & L. Com.
Southeastern Corp.
444'4y.VSpec. Part.
;
fLe Roi Company
Herbert
I
:'
Editor and Publisher
Aeronca Aircraft
Simplicity Pattern
^Princess Shops
"
William B. Dana Company
REctor 2-9570 to 9570
American Gas & Pow.
•
FINANCIAL CHRONICLE
Textron Wrnts. & PI A
Cent. States Elec., Com.
to
promote the welfare of the many.
State deems
turies
Under the Soviet system, abso~
lute
pattern of
Recent
v
primarily from the Soviet
comes
that
so
^
Leadership in the present trend
pressed by the
State
freedom is in dire
Soviet Leadership
freedoms
different state
Old Pfd.
'
.
———
—
/-yv
is spiritual,
because of in¬
.
N.Y. New Hav. & Hart
i
two
them
Old Pfds.
--
often
strikes
Old Pfds.
in
and
funds
Douglas Shoe*
Mastic
or
other media
District Theatresf
I
the^>
in
frauds
'
v,
POSTER?'DULLES.^^tl;®^44^^' ||
-?;?By i JOHN;
?■:..
#«-
Mr; Dulles declares most important issue before world
will
administrators have a two-fold task in that they
sale of stocks,
Missouri Pac.
;
Points out State's duty.is hot to advise
frauds in sale of securities.
Cinecolor
'
'
RICHARDSON
V-
Thursday, ;M&)r 30^ 1946
Security Regulation:
By HON. ALLAN S.
•
<:r"
•/-'•
•
■
A State
&'£'■•■
state and city news, eto.)
8. La Salle Si.
Chicago 3, 111.
(Telephone: State 0613)8
1 Drapers* Gardens, London, E. G„ Eng¬
land, c/o Edwards & Smith.
Other
Offices:
135
Copyright 1946 by William B. Dana V
Company
Wuui&l'o.
•;<-v
EST.
•
1926
Doyle Mfg. Com. & Pfd.
*Upson Company
ruary
*Wellman
Members N.Y. Security Dealer:Assn.
120 BROADWAY, N.Y. 5
REctor 2-8700
Y.
Direct Wires
N.
Di-Noc Co.
Subscriptions In. United States ami
Possessions, $26.00 per year; in Dominion!
of
on
Great American
request
'
Industries
V.
to
Chicago and Phila.
Buff. 6021
$27.50
America,
per
Seligman, Lubetkin & Co.
••
Members New
41
Incorporated
York Security
Broad Street, New York 4
.
?:;4'
Dealers Association
HAnover 2-2100
'
.i.
,
South and
Mexico, ami
year;
Spain,
Cuba,
$29.50
per
year;
Great Britain,
Continental Europe (except Spain), Asia*
Australia and Africa, $31.00 per year.
Other Publications
Bos. 2100
'
Canada,
Central
descriptive Circulars
1942, at the post office at New
Y., tinder the Act of Marcto
3. 1879.
Engineering
Textiles,Inc.
*Temple Coal pfd.
25,
Soya Corp.
1-1287-1288
ENTERPRISE PHONES
Ilartf'd 6311
Reentered as second-class matter Feb¬
York,
*Shatterproof Glass
Central Paper
'
^Tennessee Prod.
N.
United Piece Dye
^
^
Record—Mth.$25 y*.
Earnings Record-r-Mth,. .$25 yr.
Bank and Quotation
SI EG EL & CO.
Monthly
of the fluctuation®
exchange, remittances fog
NOTE—On account
89 Broadway,
N.Y. 0
Teletype
DIffbj 4-2870
NY 1-1949
In the rate of
foreign subscriptions and advertisement*
must be made In New York funds.
lYoIumu 163
THE* COMMERCIAL & FINANCIAL CHRONICLE
Number 4494
/ V')f rj,: VLv*1:-
:.-r*
•'
" I
*1
*;-
•. *
<;• \
"•*•.«* * *•'
-
« •«
.
\
.»•
-
t,
in
.Seleclionffpff
Of Railroad Investments
%
*/'
Insurance executive caution*
'
\
*
'
,
,
,
ri
11
•
;
•
In a} recent issue
great pleasure to have the opportunity to appear before
this distinguished audience.
Today, we, who are the trustees of
other peoples
money,
have
keep in mind for unless there are
many com¬
great changes, there will be trou¬
mon problems;
bles in the future.
■
a
and few clear-
solutions/
Oh
and it is obvi¬
that
ous
we
all investment
opportunities.
They have
few
enough
In
far
so
1946
and
of
the going rate
low
so
there is
that
a
Go
of
occasion
Back?"
last
your
i
bankrupt rail¬
is—"will
us
railroads
go
back"—to the perilous days of the
thirties.
There can be only one
R. K. Paynter, Jr.
reasonable
neg-
ligible margin for any
judgment.
/
the
answer
to that—some
of of them certainly could.
I would like to stop a moment
and point out * that I used the
with
errors
Before attemptinjg to, deal
the present, or the iuture in jail-
word
"some"—I want to make it
clear
age and wisdom of your represen¬
that in - my ' own opinion
there is entirely too much talk in
investment circles about the rail¬
tatives who labored manfully by
of Ketcham &
,
tle
credit, I must refer to the
pay tribute to the cour¬
talk about the status
ously. in the armed
vidual
railroads—I
,
under
portaht
•:
devoted
t
is/
to;
-
the*
mentioned,
i;
emphatically
Bill
cial.
(S1253) which
difficulties
companies
of
were
some/of
plunged
provides
that
result
railroads
now
In this connection it may
undergoing
reorganization
dur¬
D onald
ing/the/ past
Liddell, Jr.
years
have been sufficient to meet
the
Great
,
av¬
erage annual fixed charges, would
have their trustees immediately
proval.
With
r-
»
many
*
;•
•
Bank of Montreal
the
gj
be worth
^
The Rock Island filed
a
.
petition
■
for 1933
was
in prospect.
Dominion Bank
Imperial Bank of Canada
Royal Bank of Canada :
Abitibi Pr. & Paper Com. & Pfd.
Andian National Corp.
Assoc. Tel. & Tel. $6 & 7% Pfd.
|f
Atlas Steel /
;
Brown Company Com. & Pfd.Bulolo Gold Dredging
Canadian Pacific Rwy,
Canadian Western Liimber
Current
hitherto
made by the author of the afore¬
said article, the writer hereof is
assets of $13,410,000 and the situ¬
ation^^ was^worse byJune I933/Interest due July 1, 1933 on the
in
General
into
put
effect,
hearty agreement. But with the
theory that the railroads
many
today
cases,
out¬
.
credits.
By and large,
those who complain the loudest
about the
reorganization which
have not been completed are the
very persons who have littered
the path of reorganization with
every
cle.
which
our
industry.
has
4's, 1988. the best-secured
(Continued
now un¬
on
page
2962)
■
Famous Players
Canadian Corp.
Hydro-Electric Securities Corp.
International Utilities
-
\
Noranda Mines
;
Pend Oreille Mines
a
a
Steep Rock iron Mines
Direct Private J/Vire Service
COAST-TO
that
New York
Chicago
-
St. Louis
-
-
Sun Life Assurance
Teck Hughes Mines
COAST
-
Kansas City
-
■ >
HART SMITH & CO.
Los Angeles
62 WILLIAM ST., N.
In 1940
moment.
we
Bell
made
STRAUSS BROS.
careful
comparison of a top
grade railroad credit and a most
respected name in a certain heavy
32
This study dealt with
period 1930-1940.
The rail¬
Perhaps it Is too melancholy a road won on every comparisonnote to speak of reorganizations ability to meet
falling business^—
in these happy days of a high ability to recover—to absorb
wage
level of national jncome,s but it is increases—to absorb tax increases
a thought which is always well to
4 closer relatioii to F..R1 B./index
of
productioh~»-greater pes
Y, 5
;
Teletype NY
^
Kew York
UAnprer t-0980
1-395
Montreal'
Toronto
Members New York Security Dealers Ass*n
technical and legal obsta¬ industry.
the
.
Sherritt. Gordon Mines:
To point up this industry situa¬
tion
i
Jack Waite Mining
Minnesota & Ontario Paper Cn.
seen
surrounded
:
Consolidated Theatres, Ltd.
'Electrolux ;
the. operations* of trusteeships and liabilities of $27,490,000 at the end
of the types
of reorganization of 1932 were over twice current
plans
2
Canadian Bank of Commerce
charges were: covered ,only .38
times, and an even larger deficit
of the- criticisms Of
Bank of Nova Scotia
Bank of Toronto j;
t.{,
Depression.
herein discussed.
mission and to the Courts for ap¬
SECURITIES
these
as
reviewing briefly the situation, as
it existed prior to the beginning
of World War II, of the Chicago,
Rock Island, and/Pacific Railway,
a
typical example of the roads
which would be affected by that
provision of the Wheeler Bill
whose average
earnings
CANADIAN
disagrees;
would
called
Wheeler
conditions
undersigned
It
appear that many of the
advocates of this procedure have
forgotten how deeply into finan¬
most
section of the
so
the
stockholders,
a
defense of that
the
are,
in
standing
previ¬
be. returned to the control of the
p a r
which.":
of
of indi¬
have
were
;forces,-r//:>'>.;
dergoing;^^ reorganization^^ should^
ways/an ihiT
reorganization of the lot of good railroad bonds scorned
many
railroads
which
have because the "industry" was in bad
emerged, from the protection of repute and a lot of poor utility
the courts and those same roads bonds bought because of the glam¬
about
>
Nongard, 105 West
Adams Street.: Both
road industry and entirely too lit¬
the side of the representatives of
the insurance companies to bring
road
past and
Chroniclr)
Richard ;
J).
—
phal have been added to the staff
1
discharged and would be returned for reorgariizatioh Under the pro¬
to
theiv
stockholder - owners. visions of the Corporate Bank¬
his. Ispeech pointed out that it was Thereafter the • stockholders, in ruptcy Act in June 1933, having
no longer a question of
"would conjunction; with the bondhold¬ experienced losses in each of the
the railroads come back"—"they ers, would, work out a new reor¬ two
preceding years. Actual defi¬
had come back"—today I think ganization plan for submission to cit of
the system for 1932 was $9,the question in the minds Of many the Interstate
Commerce Com¬
956,801,
in
which
year
fixed
must weigh
been
the
Railroads
meeting in 1944, a very able rail¬
road
executive, R. W. Brown,
spoke to you and at the start of
as
before
never
the
'K
" 'a
a
Commercial and)^nancial.: Chronicle
(Page 1637, March 28, 1946) there is an article concerning the reorganization
seven
"Will
iiVi
(
ILL.
Vermillion and Richard B. Wesf-
of the
,
cut
r;t
Editor, Commercial & Financial Chronicle:
railroads may go back to peril?
iw days of thirties, but holds many individual rail securities still
inerit investor's confidence. Points ^ut; railroads; ate
JinkejT td
capital goods industries/ and, looks for increased tonnage arising
£ from heavy building operatiqnsr enlarge(LoutpuLo£-automobiles,
and expanded agricultural production. Sets up as standards for individual rail bond purchases (1) wartime operating results;
(2) working capital and cash resources; and (3) condition of
; physical equipment. Says prime indications of railroad prosperity
^ nre (a) percentage of net income to gross revenues; and (b) abilityto keep down wages and joint facilities expense.
It is
i
'
NongitrS
(Special to Thk Financial
CHICAGO,
LiddelI,Jr., Vice-President of Templeton, Dobbrow
& Vance, Inc., New York City/writes that measure if
passed would<
|"V
some
With Ketcham &
Donald M.
Treasurer, New York Life Insurance Co.
;
of Wheeler BiU
impair the protectionof mortgage bonds.
*/ J
r
hj\"
t'A'
£ PAYNTER, JR.*
By RICHARD
Points
Broadway
^
Board of Trade Bldg.
.
NEW YORK 4
CHICAGO
4
|
AIR PRODUCTS CORP.
Harrison 2075 ft;..
Teletype CG 129
DIgby 4-8640
V
Teletype NY 1-832-834
HAVANA LITHOGRAPHING
,
*An address by Mr. Paynter
be¬
of
Company
Baum, Bernheimer Co.
ST. LOUIS
j
KAISER-FRAZER CORP.,
KANSAS CITY
KOLD-HOLD MFG.
Pledger & Company, Inc.
cent of gross available for
charges
—better return on invested capi¬
Mutual Savings Banks, New York
White &
tal—yet the industrial commanded
~
the
fore
Association
National
City, May 17, 1946.
(Continued
Chicago and
Southern Airlines, Inc.
| Continental ?
Airlines, Inc.
on page
,■fi.;,-;-:A.yy■
LOS ANGELES
2931)
LIEBERT & OBERT
Buckeye Steel Castings
*Longines-Wittnauer Watch
TEMPLE COAL PFD.
Roughl>-/Sold-//Q
Prospectus
Jeff. Lake Sulphur Com. & Pfd.
r v
*Prospectus
on
J. F.
request
Stand. Fruit & S/S Com. & Pfd.
*All American Aviation
E. H. Rollins & Sons
BURNHAM & COMPANY
15 Broad Street, New York 5, N,Y.
telephone: Hj4riover,2-(\ffl&
<'
-
Tel. WHitehaU 4-4860
Carondelet Bide.
■
Street, New York 5, N. Y.
Boston
A'"'' Aa
Teletype NY 1-490
Philadelphia
-
Chicago
-
San
Devonshire St.,
68
■
NY
1-2733-4-5
Boston 9, Mass.
Riphmond 4321
■
Private Wires:
Francisco
Boston
...
Bell Tel.—NT-J-493
y-rA
•
Bo, 9-4433
TWX
.39 So. La Salle St., Chicago S ;
Bandolpb 8924
TWX CO 616
.
40 Wall
Members New Orleans Stock Exchange
New York 4, N. V.
NewOrleans 12, la.
41 Broad St.
Rejlly & Co., inc.
HAnover 2-4785
Incorporated
T. J. FEIBLEMAN & CO.
Exchange
associate members IV. Y, Curb Exchange
.
<
Exchange Fl.,-Nfew~ York 5
.40
•
Request
Regal Shoe
Lane Cotton Mills Corp.
members New York Stock
on
National Gas & Electric
;
;
>■
L'AIGLON CORP.
w
1
^
Cleveland
Los Angeles
<.
*" Chicago
New York
;
Consolidated Electric & Gas Co. $6 Pfd.
Firth Carpet
Getchell Mines
Baker Raulang
Master Tire & Rubber
Carbon Monoxide
/
r
Oil Exploration Co.
Suburban
'
Preferred & Common
t
fc
i
•
;
'
■
,
>
„
w
./
United
'
i
.'L
«i
1
J*
'* '
PETER BARKEN
32 Broadway, New York 4, N. Y.
Tel. WHrtehall 4-6430
Tele. NY 1-2500
Public/Utilityi
Bought
—
Sold
—
Quoted
'
AAQuotatione
Request
V;'/ 'v-;:v'/'.
IFARR
FREDERIC H. HiTCH 6 00., IDG.
HARRISON & SCHULTZ
Phone HAnover 2-7872 Tele. NY 1-621
Upon
1
Bought—Sold—Quoted
A A6i Wall St., New York 5
;*/,
Sugar Corp.
* Prospectus on request
;
Preferred
1
Propane Gas Corp.*
AAAA A'A AAA-' Common A'-AC AA
American Beverage
f
Punta Alegre
MA' rJyiyAAf
Tennessee Gas & Transmission Co.*
Recordograph
American Insulator
,s
Petroleum Heat & Power
Common
Eliminator
Company*
Globe-Union Inc.*
Established
;
63
: MEMBERS
1888
120
New
York
New
N. Y. SECURITY DEALERS ASSOCIATION
Wall Street. New York
Members
New
York
Curb
York
WALL
Stock
Exch.
Coffee
N. Y.
Bell
Teletype NY t-897
•
*
Exchanne
Assoc.
Member
& Sugar Exchange
ST.,
NEW
YORK
'
S.
/
& CO.
TEL. HANOVER 2-9612
zm
rr
Thursday, May 30, 194$
The Staievs-Cust®mesrsProf it
By ENDERS M.
/ JT/
VOORHEES*
Chairman* Finance Committee.
United States Steel Corporation.
.
'
\
Margin
By HERBERT M. BRATTER
and Stock Prices
"
Bill, approved by Senate Banking and Currency Com*
mittee, is intended to replace rider attached to Treasury Depart
ment Appropriation
Measure, with which it is identical. Bill not
expected to reach floor for some time. If passed, would require
appointment of conferees to draw up final measure for approval of
both Houses of Congress.
Estimated supplies in Mexico and effect
of price change on hoarding.
;
"
/
--protection."
I
I fear that I am not
•
much concerned
as
as
about giving you an entertaining or even ;an
an hour,
My^ 1 • 111
mind
is
not
have
in
moment's
out
One
.
the
of
tellers'
fore-
will
pile of
a
,
,
;
will
relieve
onerous
restric t ions
of
many
businesses and
a
industries.
I
ok
o
;It
s
as
though
Senate
the
back
up
o£Re|>~
last year by
On the
before
54th
General
Meeting
resentat i ve$
York, N. Y., May 23,1946.
we may
shall at least have the means
(against
we
/
>
(Continued
on page
2954)
r
a 3%
yield basis
present 3.30%) before
encountering any sizable volume
of selling.
(On the basis of cur¬
and
EISS
AND
But
Private
'
;
.
.
.
SAN FRANCISCO
•
stitute
a
better price
ANGELES
control
agency
changep
"
'
*
HONOLULU
than OPA and its economic
of this country have the people been bom¬
propaganda from a Government agency.
From top#
OPA officials tences like—"Only price control
and the "eco¬ stands between our country and
nomic
stabi¬ inflation."... "OPA aids produc?
And that grand old fear
lizer"
from tion."
more
..
radio
commenators
line
and
the
of
ments
.
.
—
certain
recent
member of the
Co., but the views and opinions
-
con-
2956) /A
Never in the history
barded with
.
.
expressed by him are not neces¬
sarily those of the firm.
happened
what
"Look
after the last war."
You've been told that the reten¬
and some seg¬
over
research staff of Smith, Barney &
STREET, NEW YORK
LOS
a
on page
producers will demand
tion of Mr. Bowles and Mr.
Porter
liter¬ and all their cohorts is absolutely
ally
millions essential to save the starving peo¬
of words have ple of Europe.
In fact, never be¬
been
pouring fore in our history have so many
press—
mounted so many white
into your eyes
little
and
*Mr. Gould is
sound very
may
(Continued
Association of Manufacturers
horses—so
°
LOS ANGELES STQCK EXCHANGE
telephone BArclay 7-4300
■
this
All
theorists.
that
SAN FRANCISCO STOCK EXCHANGE
_,
is not dead.
tion bill
opposition of NAM to price control was taken without poll
that businessmen want inflation? Says price
control will not help world, food situation, and housewives con¬
be increased this
social
But
complications loom, and the
rider to the Treasury appropria¬
of 'membership/ of
~
14 WALL
r
the
has its way.
denies
evolving concepts of the function
and
duty of government have
acted
as
a
brake and damper
(Continued op page 2960)*
Wires
MEMBERS
•
extent
intermittently
years
Dean Witter & Do.
~
NEW YORK STOCK EXCHANGE
HONOLULU STOCK EXCHANGE
:
may
bloc
new
argument that without price ceilings
exorbitant /prices. Holds Competition^
level would be raised.)
HAWAIIAN SECURITIES
Direct
the
to
Committee, if
Currency
propaganda for price control and refutes
NAM economist attacks
industrial market would
dividends
—
Those con¬
By RALPH ROBEY*
achieve at least
225-230
conferees.
silver
Rhode Island's Sena-
rent dividend payments the DowJones equivalent would be about
PACIFIC COAST
and
the
Chief Economist, National
vestment and it is the pressure of
funds
that has
suggested
that the
ing
for
approves,
Govt. Propagandaon
these
expect, at least for a while, to
have our order books bulging and
of
American Iron and Steel Institute,
New
whole/however,
the House
Senate
ferees, who heretofore were ex¬
pected to come from the House
Appropriations Committee, will
now come from the, House Bank¬
Currency
months
had
bill introduced
V :<
been sitting on the
matter be¬
the
paper
economy.
by Mr. Voorhees
days,
the
if
and
Banking
which
.
address
b ly
Committee
M. Bratter
Herbert
This puts the
fore the full Senate for
ma y
House
Edson Gould
the
a
four
and
lying
the
interval
the
across so
And
in
remark
and
tions
S. 2206.
by
approval,
the
ing and Cur¬ only remaining obstacle to $1.29
rency
Com¬ silver in two years' time will be
Bank¬
Senate
short
regula¬
the
to
then
•
*An
bill
a
mittee.
form that
the
The
last.
voice vote to report out the con¬
tent of the mining Senator's bill,
ferred
.
,
market
enormous
tor Theodore F. Green—agreed
Utah, intro¬
duced
in
May 16 the Senate silver bloc
of
and had it re¬
;
of silver politics play by play
on
Abe^'Murdocht
activity, corporate; profits
and stock prices is the increasing?
'
iy
favorable
that
W: prospect
OPA
legisla¬
tion
may
be
us are un¬
and ought to serve.
■
We do not know how 16ng
shift of scene when
elements in the outlook for .busi¬
serve
re¬
a
in
a
ness
orders
are
treated to
were
encouraging
more
peculiar
a
WASHINGTON, D. C.—Followers
on
to serve many Cus¬
that *we should like to
fully
tomers
upon
trot
quested
profits. Believes
a 3% yield
basis, and for long-term outlook
favors building, chemicals and oils.
will hold
claims— by passing a measure that will, so
;
cast, .■ I have hand money, bank deposits, gov¬ far as legislation can, restrict or
taotr the material for a good pep ernment bonds, etc.—in the hands prevent
many of the practices that
;4alkir$f
?f **' ■'' ■ f of our citizens and corporations have so seriously interfered with
is not a criterion, for that great production
and
f "I; think that we all have a lot
profits.
That
jmore to fear than just feat,
This pile was accumulated in creating would, of course, be highly im¬
is not to say that I shall try out goods and services which were portant to the market.
'
an
anti-pep talk and wind up destroyed and hence were never
The big bullish factor in this
galling for three deadening trem¬ available for exchange against the market has been the stimulating
bles.
Rather, I shall ask you to paper. We do not yet know what effect on security prices of the
that pile of paper will do to our
; thhik with me about the shape of
huge volume of funds seeking in¬
.
:
We
of
quaint
and
notice,
Voorhees
should like.
market but
kind, and nearly all of
a
M.
we
able
wit
Enders
that
of
variety
or
with
'
such
level of corporate
stocks
are
sellers'
tellers
who,
pending OPA legislation that gives
reasonable confidence in a fair
a
rangement
a
for-r
of
tune
encouragement foi
sees
rise in/stock/:values ' Jji
faced - as •: an industry
with a period of high production.
they Our order books .are fairly .filled^
some
although not With: quite the ar¬
quarters,
stable
have
JWe
And,
not having at
as
further
hand in the shaping of
things to. come;
^
.<>
may
entertain¬
hand,
instructive! quarter of
''
/
as^thby/;iar^;/'a0^^tbatiK^e
things
running to
ment.
perhaps I ought to be
Mr. Gould
'
Murdock
By EDSON GOULD*
Leading financial executive, reviewing present steel situation, holds
"picture is none too cheery," and/stressesVdanger
/Government
price fixingand its /definition of j'Veasonable profits/' Cites cornhog ratio as proving that a "price" js really the exchange value
of one commodity in terms of others/ Points out that customer's
decision determines exchange values hut "costs" determine an
industry's survival more than they determine its prices* Denies
A wages can he continuously increased without affecting costs, ex: ; cept if offset by (1) increased output; (2) improvement of tools;
and (3) increase in price. Decries Government intervention in >
price adjustments, and concludes "the customer never needs
Silver Scene Shifts
.
ears-
men
people
many
become
heroes — to save the
people from them*"postwar
Ralph W. Robey
selves
attempting to work us
profiteers"
all up into such a frenzy that we'll
"greedy, self¬
ish, irresponsible groups."
Sen- all go out on a crusade from per¬
petual regimentation.
Well, it's time to come down to
earth.
It's time to take stock of
words like
sel^-styled
nation and the
.
.
.
"
TO INVESTMENT DEALERS
Send for circular CC
descriptive of
Magor Car Corporation
Quick Assets about
Fixed
Assets
about
paying Railway Equipment Stock
Earned
Year
1945
Selling at about 5 times earnings of
a single year.
Data upon request.
Glaybaugh & Co.
'Members
Philadelphia Stock Exchange
George A. Rogers & Co., Inc.
Tele. NY 1-2178
Harrisburg-Pittsburgh-Syracuse-Miami Beach
,
.
•X
Montgomery St., Jersey City,N.~J.
42
,
f Circular
.)
on
Ltd.
request
MAHER & HULSEBOSCH
■'
;
..
ST., NEW YORK 5, N. Y.
WHITEHALL 3-0550
about—
about--.
„$54.00
$ 7.30
_$ 8.30
Exploration
*Can. Western Lumber Co.,
_$34.00
,
Blair F.
WALL
—$20.00
Book Value about
Earned Year 1941
52
Per sbaPe
,
Net
Z
■
;
.
Dealers
Brokers
" In investment Securities
62 William St.
Telephone
address
by
Dr.
Mutual Broadcasting
May ,23, 1946.
Robey
System,
.
New York 5, N. Y,
• Teletype
;
WHitehall 4-2422
NY
Branch-Office
113 Hudson St.. Jersey
Broadway, New York, -N^ Y.:
It's time to an¬
stand.
the
*Radio
over
- <
>
we
emotional outpourings
of those egomaniacs who think
they've been ordained by some
supreme being with the brains to
regulate an entire economy —8
million products, 3 million busi(Continued on page 2961)
alyze
Clayton Silver Mines
Great Western
$1 Par Common
'
where
V.T.C.
GAS EQUIPMENT
f
A sound dividend
Steep Rock Iron Mines, Ltd.
STANDARD
/
\
1-2613
'
"
City,;N, X
:
Philippine Mining Stocks
Atok
Expresso Aereo
SEMINOLE OIL & GAS CORP.
A
Linn Coach & Truck
Common Stock
v
Producing Company
.*•
\v
Super-Cold Corp.
Bought
F. H. HOLLER & CO., Inc.
Members N. Y.Security Dealers Ass'n
111
BROADWAY, NEW YORK 6, N. Y.
BArclay 7-0570
|
/
Benguet Cans. Mines
^Kinney Coastal Oil
Big Wedge Gold
Equity Oil
Mindanao Mother Lode
VV:'
PROSPECTUS ON REQUEST
^
Balatoc Mining
NY 1-1026
—
Sold
—
Quoted
R. C. ILSLEY & CO.
Member of National Association
of Securities Dealers,
64 Walt
;
Inc.
Street, New York 5
' H An over 2-1140 A"
Utah Southern Oil
Quotations and information
*Circular
on
request
Furnished
on
Request
JOHN; J. 0'KANE JR. & CO.
JAMES M. T00LAN & CO.
67 Wall Street,
New York 5
Telephone HAnover
2"933S
Teletype NY 1-2630
-'
Established
1922
Members N. Y. Security
42 Broadway,
DIgby 4-6320
v
Dealers Ass'n
New York
<
Teletype NY 1-1525
.Volume 163
Number 4494
THE COMMERCIAL 4: FINANCIAL
lr—
CHRONICLE
2915
Dangers of Organized Labor Control Officials of Fund Our Industrial Relations Problem
By DONALD R. RICHBERG*
(Sixth of
by arguments that labor is free to pursue self-interest regardless V
■*0f in jury lo others, that we fail to recognize labor aggression as an r
attack on Government. Calls for revision of labor laws That would ;
.
end rule of force and institute rule of justice, and point* out eco-
By WILLIAM K. JACKSON *
and World Bank
One-time Administrator of National Recovery Act scores abuses
>of labor union liberties, and states we have become so befuddled
a
President, Chamber of Commerce of U. S.
series)
Prominent industrialist, asserting it is time for action to end nation's ;
paralysis from Tabor disputes, urges legislation to end coercion,
violence, intimidation, mass picketing ,and blocking of public
services*
Says these practices -undermine collective bargaining, j
and analyzes proposed remedies > of
(1) compulsory arbitration; V <
(2) government seizure; and (3) application of anti-trust laws to f
labor.
Holds compulsory, arbitration success is not assured;
LOUIS RASMINSKY
Executive
Director
of
Fund
the
Representing Canada and Norway
i
During the technical meetings
nomic power
held by unions leaves no alternative to governmental
preceding and following the B W
action to enforce industrial peace. Blames both labor and manageConference
Mr. Rasminsky
be¬
TOent leaders as well as politicians and -'economic reformers." ' came well known in Washington
that government seizure is not desirable but
/
financial cir¬
may be necessary; and ¥
*
lays down economic principles regarding national income distribu- ;
cles.
At ij Sa¬
4|is in favor of applying anti-trust laws to labor. Proposes a means .1
tion,- wages and price relationships, and profit incentives. Urges q
vannah
he
to improve collective
bargaining, and calls for a revision of National f
was
elected
Industrial feeders to indulge in more self-criticism and maintain - j
¥ Labor Relations Act.
•
**
,
.
•executive
iheir interest in rule of law.
di¬
of
the
by
the
rector
No matter how ;large the enterprise or. how. specialized "the:-furic4
tions of a corporate officer, there is hardly any responsible executive
Fund
deeply con¬
or
terdepertdent industries and trades.
labor
with
rela-
tions.
■
The
;i sales execu¬
tive must have
something
to
sell which will
be
to
who
on
somebody
depends
R.
Richberg
There
chain
-
of
labor
relations
from the production of
rial
to
the
ultimate
is
a
running
raw
mate¬
consumer
which must be in continuous oper¬
ation.
If it is broken or
stopped
at any
place ihe complicated in¬
dustrial machine is thrown out of
not only
•gear,
in
one
has
shown
of
and
Executives,
Chicago, 111.,
Mr. Richberg is a
power
votes
in
en?
tire -nation.
The strike of 3,500
tugboat men in New York harbor,
(Continued on page 2946)
To
j
Company
on
request
materials
B
and
parts
o
r
are
them selves
in
n
shut
in
down.
He took
at the
of London and the London School
of Economics.
In 1930 Rasminsky
few
William K. Jackson
Time for
radios,
few
tors,
The time has
in the securities business.
are
Clarency Y. Palitz,
President, and Walter A. Weiss]
and
Economic
in
with the League-of Nations from
1930 to 1939, was appointed head
emphatic.
President of the
tion
of the Economic and Research
The
ments, The public's impatience is
Vice-President.
little progress because of the lack
of essential items that are the
engage
Officers
doing
same
was
name.
Mr.
Palitz
was
previous corpora-j
business under thd
Mr. Weiss in the past
with Lehman Brothers.
Walker & MacKay Join ;
Financial
Section
of
the
League of Nations. He specialized
banking and currency questions
vision
of
the
Foreign
Di«f
Exchange
Control Board of Canada in 1940;
Electrical appliances, Their inven¬
tories are hungry for replace^
There
products of factories
are
making
floyd D. CSerfCompany - i
Foreign
Board
the
and
Exchange.
executive
governors
Canada.
of
Control
assistant to
the
Bank
of
In Washington, Mr. Ras¬
minsky continues to be paid from
Canada, in keeping with Canadian
policy as evidenced at Savannah;
He accepts no Salary from the
Fund, ?but only expenses.
4
During the past few years, Mr.Rasminsky has participated ac¬
tively in the preparations for and
which
Those
who
of
as the public is concerned
outstanding fact is that its
rights have been flouted. The pub¬
lic knows what caused the strikes.
the
That is history.
wants is
our
fo pay the grocer.
have gone back to
peated^ and dthat it shall not, be
again impotent and helpless in the
face of threatening calamity.
There are those who say
im?
prove the processes of -collective
bargaining. I believe in that. But
of what/avail is it if the processes
iof collective bargaining are meticulously followed and then nego¬
tiations break <down and strikes
own
strikes
are
arellaid off again because
they have no materials on which
Great
work.
upon
of
numbers
our
employees Jh&ve Jiad "to
sell; their
that these
wages
over
factory
What the public
assurance
an
wholesale strikes will not be re¬
work after their
to
"
As far
closed.
now
; Hundreds ;of thousands
workers are receiving no
with
those who say—keep
are
What facts are not now known?
place to live.
the
for
righteous wrath
calm—get the facts first—let there
be an investigation of the causes
and at present occupies the posi¬ And our veterans continue to have
tions of chairman (alternate) o£ no
f
Action
come
of these strikes.
Our home builders
i.
Reynolds & Co.
Members New York Stock Exchange
bonds
war
and draw
their savings.
Business Ad-i
.
•
.
120
Broadway, New York S, N. Y.
Telephone:
Bell
REctor
Teletype NY
2-8600
1-635
Victoria Gypsum
American Vitrified Products
'
Washington Properties
S. Weinberg
&
Co.
Commodore
M.
Members N.Y"^Security Dealers Ass'n
60 Wall Street
H.
Reorganization
,
Bell Teletype
SERVICE TO
IN
AND DEALERS
BROKERS
ON
'
•'*
;V
y.
'
-
Chicago, Rock Island
& Pacific
American Felt Co.
quotations
«
'
EC U RITIE S
U OA S T
PACIFIC
Rhodes
Nazareth Clement
WhitehalI8-7830
NY .1-2763
SPECIALIZING
Rails
Hotel
Telephone
New York 5
handled
and
executions
promptly
.
private wir£
our tdirect
over
*
01dGom*&Pfdf
•Render
in
all
a
brokerage service
Unlisted
11
Broadway," N.Y.4
Old Com. & Pfd.
NEW
SAN
Tel. Dlgby 4-1388
Established
Tel.
ITDBK
STOCK
«XCHANBII'♦ -NEW YORK
CURB
CXDHANOC
LOS
STOCK
EXCHANGE
EXCHANGE
*
ANGELES
~
Capitol 8950
TeIe.SS 169
:New York, New Haven
1926
SAN
NEW YORK
FRANCISCO
seattle
spokane
& Hartford
-
Old Com. & Pfd.
St* Louis & San Franc i sco
FOB
Trading Markets
Railroad
P. R.
Old Com. & Pfd.
•
YPRK
FRAN CISCO
27 State St-.'Bo iton9
Tele. NY 1-86
HELP WANTED
Kaiser s. Co.
Missouri Pacific R. R.
H. D. KNOX & GO.
Securities
for Banks and Dealers.
POSITIONS WANTED
Mallory & Co.
Mass. Power &
Light Associates
$2.00 ^Preferred
OTHER CLASSIFIED ADS
120
Broadway, New York 5, N. Y.
Telephone COrtlandt "7-9400
•
.
.
■00
""
SEE INSIDE BACK COVER
and
action.
of«a long
suffering public demands it. 4?
1'
refrigera¬
and few
appointed
the
gas,,
curred. 4
no
was
to
electric,
industries costly strikes have oc¬
automobiles,
University
its
have
tailers
post
from
water utilities. In all these service
almost
work
and
re¬
4 Our
,
'
S2.40 Conv. Preferred
Prospectus
V
1908, Louis Rasminsky graduated
from the University of Toronto in
graduate
The "First New Amsterdam
Graduate School of
^Raytheon Manufacturing Co.
*
f
economics in 1928.
Open in Nev/ York
ministration.
90c Conv. Preferred >
or
total.
Rasminsky
public expects production
uninterrupted in this
crucial
period of reconversion.
Even more,
the public has the
right to expect continuous service
from its railroads; from its tele¬
phone and telegraph companies;
from its bus and streetcar; lines;
because
the
of
ig¬
The
plants that
supply 4 the
Montreal
First New Amsterdam
parts
all but
to continue
amd
the
the
Fund,
Louis
nored.
ma¬
raw
terials
"
lie which have been
ob¬
unable to
Count¬
Numberless others are short
♦>
are
they
tain
a
4.83%
| and
And, of all the world, our na¬
the work of the Bretton Woods
flame out.
tion, alone among nations, has had
Conference, the San Francisco
There are those who say — ex¬
the brightest
prospects for
a
Also associated with the firmis
Conference, -and the subsequent
happy return to the ways of peace. tend the Railway Labor Act or its
Allen L. Walker. Mr. Walker was
Inaugural 4 meetings of the Eco¬
:
I am going to talk to you to¬ principles to all industries where
previously with the Reconstruc¬ nomic and Social Council of the
the public interest is preeeminent
tion
Finance
Corporation, and United Nations Organization. Mr. night about these strikes and their
effects, and the rights of the pub- The Railway Labor .Act has its
nrior thereto with Goven, Eddins
Rasminsky was a member of the
good points. I am aware of thenv
& Co.
Canadian Delegation at the Savan¬
*An address by Mr. Jackson be¬ hut, why extend that 'law, which
nah Bank and Fund meeting.
in fact does not Outlaw strikes;: it
fore New Jersey ..State Chamber
of Commerce, Newark, N. J., May there be repetition of the events
Richmond Cedar Works
(Continued on page 2925)
- ^
23, 1946.
Tennessee Products
TRAD1NG MARKETS
^Detroit Harvester Co. Com
Solar Aircraft
►holds
fuel
also
Nor-*
integrate the business of the
..member of the law firm of
*
of
Thus he
the strike of 600,000 men may dist
..CHICAGO, ILL, —Lt. Donald
MacKay, recently released ^froni
Davies, active
army service,
has joined
Richberg, Beebe, Busick and Rich¬ Floyd D. Cerf
Cp., X20 So. La
ardson of
Salle Street, in the syndicate de4
Washington, D. C.
par.ment, Floyd D. Cerf, Presi-i
dent, announced today. Mr. Mac-?
Acme Aluminum Alloys, Inc.
Kay is a graduate ) of the Univer-i
"Common .'4 'Copy. Preferred
sity of Michigan and the Harvard
May 23, 1946.
ada
state of industrial stagnation.
a
shut down by strikes.
Can¬
way.
how
enterprise
*An address by Mr.
Richberg at
Banquet of National Federation of
Sales
strike
Corp;
resell it is being formed with offices at
120 Broadway,- New York City, to
buy it.
to
or
coal
are
voting
of 4,000
wage earn¬
ers to
Donald
The
inr
many
produced
by labor,
transported by
labor, and sold
"
industry buttoften in
nation is in
our
combined
votes
cerned
Tonight
less factories
Teletype NY 1-1950-2 & NY 1-2837-9
69 Devonshire
LAfayette 3300
Direct
Street, Boston 9
Teletype BS 208
private wires oetween New York,,
Philadelphia, Boston and Hartford
New York Hanseatic
120
Corporation
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-5660
'<
Teletype: NY 1-583
THE COMMERCIAL & FINANCIAL CHRONICLE
$916
have'
We
Electromaster, Inc.
Bayway Terminal
Emerson Drug
/Monumental
Life
Report furnished 'ion- reque st
Noxzema Chemical,
American Wringer
^
Investment analysts predict a probable 20-30% increase in the cost
of living from present levels. Aver that despite political pressure
■
to keep the cost of living ^index^ down during election year dollar T
devaluation resulting - from arbitrary production cost hike is an ;
accomplished fact. Hold inflation inherent in huge wartime savings f
versuf goods shortages^ emphasized by politicians, is of' short
1 rather than long-term significance,i See protection against decline in
purchasing power of fixed incomes, and <<real,> yalus of high grade
Credit obligations, afforded by the holding of carefully selected
Co. Com.
:
\.r;;
,v;w\
;
So. Colorado Power Com,
[^
>
.
jj-t, • -.-Si'-
•.
?"
■''.: v'-V-:-'Vjv -
>"5 r, :-V
5,: ■'/
Mercier, McDowell
& Dolphyn
& Baltimore Stock
Members
Bxchanges and other leading -exchanges
S. CALVERT ST., BALTIMORE 2
Bell Teletype BA 393
'New York Telephone Rector 2-3327
Stock
Detroit
BOENNING & CO.
1606 Walnut
PH 30
.
Private Phone to N. Y. C.
Exchange
Buhl Bldg., Detroit 26
Cadillac 5752
St., Philadelphia 3
.Pennypacker 6200
COrtlandt
"growth-securities.
7-1202
Tele. DE 507
Strikes and politically sponsored wage increases, combined with
efforts to "hold the line" against inflation in this election year, have
created a dilemma from which
RICHMOND
GRAND RAPIDS
BOSTON
there
-,
ACCURATE
Issoc.
DEPENDABLE
CAROLINA
MUNICIPAL BONDS
':
Inquiries Invited
white, noble & co.
Jockey Club
•F. W.-
CRAIGIE&CO.
Bell System
GRAND RAPIDS 2
MICH. TRUST BLDG.
•/vVv;; Ocean Side, N*
Phone 04336 ;
New
Hampshire
Jockey Club
'i! ' Rockingham, N. H.
'
;
.
Teletype: RH 83-& 84
A.
orotection
du
•.v""-
i.
)':\ ■f-«.
•>■■■
? 1.;".-L
31
MILK
HJANcock 6200
N; V. Telephone CAnal 6-8100 A
one we
from
x
forces
The first is the
hear most about.
unprecedented
an
■
It arises
pose.
level
market"
of
During the war the "black
was
at
a
minimum since
stored^up purchasing power and
back-log of accumulated demand,
as against
an acute shortage of
goods.
But this disparity is of
SALT LAKE CITY
U. S. Government Bond Maiket
STaLouistMo.
Floor, Kentucky Home Life Bldg.
Member* 8t. Louis Stock Exchange
LOUISVILLE 2, KENTUCKY /*
Long Distance 238-9
Bell Tele. LS186
.
TRADING MARKETS
Bangor Hydro Electric
Boston Edison
-
STREET]
inflationary
the obvious and only cure.
Government price controls
production facilities were fully
employed either for war or essen¬
tial civilian needs, and appeal to
the patriotic motive was sufficient
to stigmatize both purchaser and
''The first of a series of monthly seller of black market/goods. ; '
reports on financial matters issued v But these influences no longer
by Gross, Van Court'& Co.uf Los exists. and unless an 4eiilightened;
r"
Angeles, Calif. •
f Continued on page 29511 ^
NASHVILLE
"""
distinct
currently at work.
Incorporated
1st
-
Teletype BS 424
^, . ■■■.<
which impede full peacetime pro¬
duction will defeat their own pur¬
SECURITIES
509 OLIVE
m BANKERS BOND ^
/
•
INVESTMENT
long-term sig¬
Utah Power & Light
STREET
BOSTON 0, MASS.
,
short rather than
two
;ST*X:6|i§i!
"
Pont, Homsey Co.
-
foreseeable:
nificance, with volume production
V.:YC^v.\v'vV?
Winu & Lovett Grocery
V"J;0'
v
E. Van Court
In belaboring an infinitely com¬
plex price structure, the OPA has
ignored the fact that there are
American Turf Ass'n
Louisville Gas Pref.
-..
of
Two Current Inflationary Factors
Girdler Corporation
"V/'. A
'f
■
now at stake. But a clear
Albert
understanding of the facts is
essential to investors planning
capital and purchasing power against
Slater
dollar devaluation.
American Air Filter
Inquiries invited
r'rV:
" {v;<- J
^ '
many years
issues
Telephone 3-0137
ST. LOUIS
Merchants Distilling Co.
»''
so
^
Bought—Sold
'•
■
that confu¬
sion exists with respect to the
.
..
choice
A
The pros and cons of "infla¬
been bruited about
Teletype CR 184
LOUISVILLE
retreat.
tion" have
for
RICHMOND, VIRGINIA
Members Detroit Stock Exchange
no
higher prices, or a continued
shortage of goods. The modifi¬
cation of OPA price controls,
therefore, is both an essential
step toward full employment,
and an indication that Congress
is becoming more realistic with
respect
to
the
reconversion
NORTH and SOUTH
Suffolk Downs, Mass.
is
will have to be made between
VIRGINIA—WEST VIRGINIA
Michigan Markets
Eastern Racing
Dealers in
,
■LWi.
By ALBERT E. VAN COURT and AUGUSTUS SLATER*
& Paper
"
.
stein bros. & boyce
*
Common
-
!. v?X.
;.N
of Baltimore
members New York
Thursday, May 30, 1946
Wages, Prices and Securities
-
Marathon Corporation Com.
Manufacturing Corp.
Co.
Ins.
'
-
Shelter
.
current; interest in
a
Southern Advance Bag
Prospectus furnished on request
>
Davis 'Coal & Coke
Common
'•
!
DETROIT
BALTIMORE
*<:
>'
*
Wiley Bros.
Hollingsworth & Whitney
'Megowan-Educator Food Co.
New
By JAMES II. CLARKE*
Utah-Idaho Sugar
Assistant Vice-President, American National Bank & Trust Co.
.
of Chicago
Amalgamated Sugar
INCORPORATED
Mr. Clarke, in reviewing fluctuations of Government bond price*,
notes recent decline has been due to abandonment of Treasury
England Lime
Submarine Signal
policy of pumping deposits and reserves,into banking system
Edward l. burton
Dayton Haigney
Company
Stocks
*75 Federal Street,' Boston 10;.
-
& company
Bonds
Salt Lake City l, Utah
Nashville, Tennessee
.
as an
war financing. Because of statements ] of fTreasury and
Federal Reserve authorities announcing retention of present inter¬
aid to
est rate
160 S. main street
Private New York Telephone
HEctor 2-5035
^
ESTABLISHED 1899
;
despite
pattern, he does not look for substantial change in market,
loan deposit withdrawals to retire national debt Urges
earnings on loan deposits by
searching for other sources of income. Cautions income loss is
preferable to assuming risks of unsound investments.
BELL SYSTEM TELETYPE SU 464
war
banks to prepare to replace loss of
PHILADELPHIA
TRADING MARKETS
Norma Hoffman
Bearing Co.
@12
'
i
I'l-o^ttces the finest precision ball
roller bearings. Has net quick
o er $5 pei* share and has shown
good
peacetime
earnings
($3.14
The Gruen Watch
and
•i
•
!
BROKERS and DEALERS
grow during
Company
UTAH
dOf
<?*.
1341). £
W.
Memos
.H
Bell & Co.
'
phlO
New York Tel.
-New-York
Teletype BS 189
CAnal
:\
6-3667
Philadelphia
Washington
Harrisburg Portland
cntown
Easton
on
Request
Established
Los Angeles Stock
1420 Walnut
Exchanges
j
:
Members Salt Lake Stock Exchange
Street, Philadelphia 2
New York
1898
W. H. CHILD, INC.
Members New York, Philadelphia and
; ;
saw
MINING
STOCKS
BUCKLEY BROTHERS
«
Federal St., Boston 10, Mass.*
"tff. HUB;
yu
Midland Utilities Co.
'
Incorporated
Investment Securities
In 1942, the first full year of the war, many bankers were wor¬
ried about the increase in this country's debt./ They had watched it
for
Texas Public Service
BROKERS
Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehaU 3-7253
Private Wire System between
Philadelphia, New York and Los Angeles
DES MOINES
;Stock Exchange Building
: r'. Salt Lake City, Utah
:
Teletype SU 67
s
Phone 5-6172
"
UTICA. N Y.
Dealer Inquiries Invited
Botany Worsted Mills pfd. & A
INCORPORATED
Oneida Ltd.
Common
.
Preferred
EmpireSteelCorp.com.
Iowa Power & Light Co.
■
Preferreds
■
■■■■
Sioux City Gas & Electric Co.
Preferred. and Common '-\'i
FOUITABLE
DES
BUILDING
MOINES
Phone 4-7159
9r
IOWA
Bell Tele. dm 184
Utlca
-
Cotton
Warner Co.
com,/
So. Colorado Power Co. com.
H. M.
Mills, Itic.
common
Penna. Engineering Co.
Byllesby & Company
INQUIRIES INVITED
MOHAWK VALLEY
INVESTING COMPANY
-
PHILADELPHIA OFFICE
Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717
Tele. PH 73
extent the
stagger¬
1942
ber,
bankers
some
and
-
by* early
became
1943
venture¬
the short-term
more
and entered
they bought the
eight to ten-year two's which were
offered by the Treasury, and by
1944 and through 1945 many of
those who at one time had been
Later
%ths be¬
buying Government securities
with
little regard to
maturity.
Figures on bank holdings of bonds
show that short maturities pre¬
dominated in the early years of
the war but during the last two
gan
■■
United Light 8c Railways Co.
the 1930s and fore-r
afraid to buy one-year
Vinco Corp.
Sterling Motor Truck
-
some
ing amounts which would be piled
up to meet the costs of war. Some
bankers were disturbed to a point
where they carried from 60 % to
80% of their deposits in cash and,
inr one; or: two
instances; their
desperation caused them to lir
quidate
everything, -and
close
up
shop. ! The first war loan
drive did not come until Decem¬
market.
9YHEEL0CK & CUMMINS
Preferred
to
238 Genesee
INC.
there was no
change in the
♦An address by Mr.
St., Utica 2, N. Y.
Tel. 4-3195-6-7
years
Tele. UT 16
fore the 55th Annual
the
Tennessee
Clarke be¬
Meeting of
Associa¬
Bankers
tion, Memphis, May 23,
1946.
,
short position but longer holdings ■
increased 60%.
/
;
,
Why this change? What became
of
the fears of the bankers who
three
before
only
two
were
of the opinion that Govern¬
ment
financing in World War II
or
would encounter
culties
that
years
the
broke
same
the
diffi¬
markets
during and following World War
I? The answers to these questions
are riot too complex. The ability
of the
Treasury and the Federal;
Reserve Banks to manage money
did the job. "Managed Money" is
a
loosely defined term and in this
instance is used only to cover the
by which the Treasury
additional de¬
posits of over $100 billions into
the banking system, and the Fed¬
processes
was
able
to pump
eral Reserve Banks were able to
create
and
reserves
deposits
in
two
things ultimately made converts
out of the most skeptical.' These
deposits and excess reserves pro¬
vided the enormous funds which
excess
of $23 billions. These
banks
used
securities,
to
buy
until
Government
bank
holdings
(Continued on page 2933)
.Volume 163
Number 4494
THE COMMERCIAL & FINANCIAL
CHRONICLE
The Economic Outlook Cooperation of Banks
^
,
Bfy MARCUS NADLER*
.
Professor of Finance, New York University
of business activity
for next few
production with demand; (3)
(2) an early balancing of
expanded role of U. S. in inter-
:* M
-
trade; (4) increase in middle class income
(5) efforts to alleviate the debt burden. Predicts
bank holdings of Government bonds will
decline, while business
loans will increase. Looks for more bank
mergers and says interest
and
groups;
rates
are
to remain low for
some
time. Holds competition
cooperation of banks
Introduction
It is always difficult to make predictions, particularly at the
present time when the world at large is in turmoil and in a state of
ed and labor difficulties and
the
unable
to
far
agree
on
import¬
points.
ant
Considerable
encountered
in drawing
up the terms
of the treaties
of
peace.
Thr oughout
Or. Marcus Nadler
has
States
great shortage of all kinds of com¬
modities and many millions are
pleted.
faced with hunger.
will
In the United
States, too, the reconversion has
not proceeded at the rate
expect-
•An address by Dr. Nadler be¬
fore the New York State Bankers
Association, Atlantic City, N. J.,
May 27,1946.
culties
practically been
are
be
has
lem," states the Guaranty Trust
rent issue of "The
is
less
in the hands of the
public, half of
which is in the form of cash and
demand
deposits,
(Continued on
Guaranty Sur-
a
quarter
page
2925)
challenge
of
day in
our
Fed¬
a
of
this
year
amounted
$250,673,000,000.
When
presume to multiply by four
in
those
astronomical
forced
a
to
the
realms, I
|:1
in
so
This is truly
bor,
but
it
Building. For
situation
that
symptomatic
of
banker
derstands and welcomes.' The
every
CHICAGO,
from
former position with
&
who
can
contribute
SCHENLEY DISTILLERS CORPORATION
NOTE—From time to time, in this
space,
there will
appear an advertisement which
hope will be of interest to our fellow
of a series.
7 SCHENLEY DISTILLERS CORP.
American8.This is number 128
:<t
,
By MARK MERIT
5 The Liquor Control Board of one of
southern states, issues
our
Wickliffe
Shreve, manager of
! he
syndicate
department
for
Lehman Brothers, will shortly be¬
come a partner in
Hayden, Stone
& Co., 25 Broad
Street, New York
City, members of the New York
Offices at 5 Commerce
Street, to
engage in the securities business.
McBfee' Co. Elects
Stock Exchange and other
leading
Rummel & Stitt
Exchanges.
Frederick
C.
tors
of
Athens,
nounced.
The
McBee
J. A. White & Go. Adds
Finan & Mallon to Staff
•r v<*
;
«
v\v
»
»
i>''
The
lt-'
an¬
CINCINNATI, OHIO — J A.
recently White & Co., Union Central Build¬
company
public into 'owner¬
ing, have added Edward R. Finan
ship of its securities for the first
and
time
staff. Both have
through the sale of 98,000
shares of its
$5
par common stock.
Horace
T.
Mallon
to
their
recently been in
the armed service.
,
all factual information and
?
be obtained
on
wCireuhfcteforiokfcfc
request from the undersigned.
99,000 Shares
^
Indcstrial Electronic Corporation
conveniently
single reference
S
29,
all agencies working for better law/
enforcement. We have on oun
desk, a copy of the Review for
April 1946. It is both interesting/
and highly illuminating.
ment which is
reminiscent of those
days when the entire country was;
subjected to what its sponsors
termed
ignoble
era of crime in
our
entire
history. For instance, in the month
of March, alone, there were 255V
for
evasion
of
the
the state. Fines and costs forevasion of the dry.laws in the
dry
areas, totalled
$42,924.27—in one
•
'.v
■»
,\V,|V-V.'.'V','
;
w?•'}' •'
In reading the report, one truth
stands out in bold relief. The
people in these so-called dry areas
have a perfect right, under local'
option, sto make the sale of alco¬
holic beverages illegal in their
They have notr
however* that merely/
learned,
expressed desire. Not only is thi3-
'v4'
v'.'t;
\>
.*,
rt
**
<\
->
'uV*®'
^
^
i
;
-
;
\
'
*
j
v
,
s~./«
,
>• yr,
-•
y
9
V
^
#
11 j
Sy* p
s
^
of
true
Prices $3 per share
^*''%
-n-
T
'
our
pleasant personality,
^
74
country, it has?
,-J*,
(
An
** I
HOIlRgSE ShtgSTER
V
own
been true of all countries since theearliest days of civilization.
old
through
&
Financial
*
"noble experiment** and
which turned out to be the mosh
a
Trinity Place, New York 6
We
adage keeps running.;
mind as we write this.
our
think
it
was
Emerson who
wrote
something to the effect that,..
"When laws are too
strict, people
will not obey them."
.
Commercial
Telephone:
Teletypes:
BOwling Green 9-7400
Chronicle,
Place, New York 8, N. Y.
The;
voting their districts dry, does nob
result in the enforcement "of theicr
position to obtain
remunerative business, and secure high
class, responsible
customers.
'
,.
'
Box
volume."
board expresses the hope that jtv
will encourage cooperation between*
communities.
Common Stock
inactive
HE IS IN A STRONG AND POSITIVE
25 Park
making
available, in at
liquor laws in the dry sections of
Banking and
Address
Liquor
Control Board activities,
it
convictions
in
Securities circles where his standing is
very high.
,.
Re¬
enforce-;
i
•"< -*
(Special to Thk Financuuc. Chronicle)
Company,
Ohio, the company
admitted the
ORGANIZER HAS HAD OVER 25 YEARS of
experience in
practically every branch of the Securities Industry. He is
an up-to-date executive and
administrator. Is well con¬
nected in the "Street" and elsewhere in
.
a
This southern state has aconsider-*
able number of dry.
areas, and the
Liquor- Control Board's Review
reveals information? ori
Rummel,
Presi¬
dent of Burr & Co. Inc., New York
and William B. Stitt, New York
attorney, have been elected direc¬
:
$250,000 working capital
a
E. W.Thomas
Co., 135 So. La Salle Street.
re¬
2950)
on page
(
IS KEEN-MINDED, ALERT, has
and is easy to get along with.
Ser¬
Captain, has resumed his
as
a
John J; Ryan Shortly
Wickliffe Shreve to Be
To Form Own Inv, Firm Hayden, Stone Partner
A?NEW INVESTMENT BANKING
HOUSE, now being
organized, is desirous of adding to its present experienced
or more.
T.
view, periodically, "to coordinate?
By Investment Banking House Contem¬
plating an International Business
partners,
Chemical Warfare
the
vice
..
or
ILL. —Edward
Spiker, having just been released
un¬
of this country are larger
sources
(Continued
_
active
years
!\
month!
more
many
with Prugh, Combest and
tremendous la¬
a
is
Partner Wanted
or
Chronicli)
:
year.
21,1946.
may
one
Financial
Christopher & Co., Board of
was
we
am
conclusion that the
banks have been honoring checks
at the rate of a trillion dollars a
es¬
■The offering ofthese securities is made
only by
personnel, by taking in
Thk
/ Spiker Rejoins Thomas
achieve
not
deposit accounts during the first
quarter
NEWARK, N. X—John J, Ryan,
partner in J. B. Hariauer & Co.,
will shortly form Ryan. & Co; with
and financial conditions.
;
serv¬
to
th is
having
banking
Christopher & Cc;
to
eral Reserve report that debits to
Convention* St. Louis, Mo., May
a
brought about profound changes
and banking condi¬
tions; which, to the extent i that derlying and continuing inflation¬
they are not counteracted, threat¬ ary danger? It is the existence of
en to be a continuing, not a tem¬
$101 billion in demand : deposits
porary,
influence on the price and currency in circulation, plus
level. Such essentially temporary $50 billion in time
deposits and
measures as direct price control $49 billion in United States sav¬
and the stimulation of reconver¬ ings bonds redeemable in cash on
sion, however useful they may be demand," The Survey" continues.
as emergency
expedients, offer no "This makes a total of approxi¬
solution to the long-term prob¬ mately $200 billion of liquid assets
Company of New York in the cur¬
I
to
more
•An address by Mr..
Snyder be¬
fore the Missouri State
Bankers
and
Source of the Inflationary Threat
"What is the source of this-un¬
in monetary
come
exciting
I noted the other
perfectly suited to its needs--*
solid, flexible, dependable and yet
Stabilization
Government
war,
tablishment
the
"Only gradually has it become widely recognized that price
stabilization is not wholly, or even primarily, a problem of the
reconversion period, but that six-^
'!
teen years of deficit financing by
vey " lts monthly review of busiFederal
depart¬
1.
KANSAS CITY, MO. — John A.
Foltz has become associated with
B. C;
times.
in
Nation'
John W. Snyder
com¬
problem for tem¬
porary expedients, but one of long-term solution.
Urges a "de¬
monetization^ refunding of National Debt.
the
most
done
tunate
ensuing
is good.
(Continued oh page 2926)
not
(Special
Trade
The job
ahead is new; it is difficult and
very big, but - it constitutes
the
years
Guaranty Trust Co. of New York holds it
Of B. C.
*
the future they envisage.
fully how for¬
budget of the United States- is
practically balanced and the fiscal
Essentials of
investment
John A. Foltz Joins Staff
/)
With¬
banking
ice, Americans could
the
the
ready to produce larger
of commodities than
Outlook for 1946-47
firm's
effec ive June
uu«m,-
dynamic and imaginative.
out this superlative
have
realize
as
Furthermore,
I
have
the labor diffi¬
ironed out the nation
before.
to
you
before.
helping to win
quantities
ever
the
ment,
'Vv:, T;'' "VV..iv.?
have
by it will soon conie
As soon
closer
watched
The physical as¬
pect of reconversion in the United
world
there is a
plans to aid
of
Urges continued.
fighting inflation, in i'
in
government
magnificent
job the banks
into existence.
I the
<
.>
with demand.
than
As
the countries and the insti tutions
advocated
it
were
There are certain bright aspects
to the picture, however. The Or¬
ganization of the United Nations
has survived its first shocks.
The
Bretton Woods
Agreement has
been ratified by the majority of
been
with
you
;
,
dif f iculties
have
•
i
to brings
great and spending by the people
continues at an accelerated rate;;;
many
-•
he
ty planning by the Administration
have - contributed ; materially! to
the present shortages and difficul¬
ties.
The danger' of inflation > is
so
'
Sometimes, getting away from your own business for a whilesLand. $
seeing it froip the outside-r-improves your perspective and
actually
faul¬
seems
jor nations of
been
•'
stimulating production, and in aiding policy of repaying govern¬
ment debt by withdrawal of war loan
accounts, even if banks' earn¬
ings are Sacrificed. Upholds our system of private enterprise.
i;
have
V4
'• ».
,
up
,than realized,
world
,
a government dominated
economy,
but advocates retention of
existing price, credit, and production
controls until supplies catch
of banks
flux. The ma-^
'V
"
ing of small business. Denounces
lending agencies may increase, and concludes
danger of inflation may have reached peak, but is still greater
;
V''
increases in bank loans of $2 billion and to bank
with Government
,•
Director of War Mobilization
,
t
...
Stressing important role of banks in aiding reconversion,
emphasizes production accomplishments since V-J Day, and jus
tifies his erroneous
predictions;of large unemployment. Points
national finance and
:
v
,..•,
V
RICHMOND, VA.—L., Richard
Kinnard, formerly partner of Van
yne,. Noel
& Co., will join
Branch, Cabell & Co., 814 East
Street, members of the New
ork Stock Exchange, as
manager
By JOHN W. SNYDER*
•
years;
an
Wih Branch, Cabell
SlSilWitfcv Government
.
Asserting the economic picture has certain bright aspects, Dr.
Nadler gives as expected economic
developments; (1) a high level,
i
L. Richard Kinnard
NY 1-375 & NY 1-2751
May 29,1946
FREE
—
OP
CORP.,
Dept.
N.
Y.
t, N.
page book
earlier
4
Send
MERIT
a
postcard
SCHENLEY
18 A,
350
to
DISTILLERS
Fifth
Avenue,,
Y., and ycu will receive
a
B6»
containing illustrated reprints of
articles.
-V /'
■.•4VV
«. • :-n,.
v.
V
V >f'»%
>4
1»/
V'f-v
"
:
t-,7 '
t
t;s'J
•/'
Atlas Press Co.
Fifteen Low-Priced issues—List
interesting speculative situa¬
tions
Brand, Grumet & Ross,
of
C.L. Schmidt & Co.
Established
1922
.
—
£
.
CHICAGO 3
Fire & Casualty Insurance
Tele. CG 271
tel. Randolph 6960
New York 6, N. Y.
55 Broadway,
Salle Street
120 South La
'•;,><*»* j;Y." '
•'.'•f
•
•
,
V/'
y.,
*'
It is understood that the firms mentioned will be pleased
to send interested parties the following literature:
;!■
■
' •'(.
Recommendations and Literature
Atlas Brewing Co.
'*
1945
—
Stocks
Earnings comparison—cir¬
cular on
request—Laird, Bissell &
Meeds* 120 Broadway; New York 5,
Public Utility Corp.
Central
Analysis
-
Brailsford & Co., 208
South La Salle Street, Chicago 4,
—
111.
:
Commodore
Hotel,
Inc.
—
De¬
scriptive circular—Seligman; LUbetkin & Co.,. 41 BroadStredt,
New York 4, N. Y.
1
Pierre
N...Y
Commonwealth
CARTER H. CORBREY & CO.
>;:
Geared to the News—Brochure
Association
Member, National
:
■of Securities Dealers
<.
-
—
The
Pacific Coast
<
DISTRIBUTION
LOS ANGELES
CG 99
State 6502'
14
650 S. Spring St
Michigan 4181
LA .255
'
::
Lawrence
&
Hentz
Co.,' 60 Beaver Street
4, N. Y.
y:, yy i
Consolidated
Gas
Utilities
and
Corp.—Circulars-
Chicago
^: '
Broadway, New York 4, N. Y.
The Muter Co.
Darling
A.
L.
Utilities Corp.
Co.—-One
com¬
in four growth fields -L.
Analysis for dealers bnly-r-Moreland, & Co., Penobscot Building,
Detroit 26, Mich.
The Chicago Corp.
Ohio Unlisted Common Stocks—
The-Muter-Co.
};''pV['"■ -C;^v :'1 'r['t'.",,
v
Circular
on
Dried Industrial Corporation
available
Also
*
Request
*
-
V.." ltj
,
the
Members Principal
Stock Exchanges v
Chicago Board of Trade
Wall
Quarterly folder of statistical in¬ Street discuissing the outlook fc^r
on
selected
issues— the market and the situation in
Merrill, Turben & Co., Union several interesting issues.
Commerce Building, Cleveland 14,
Manufacturing
:
t
CHICAGO 4
Also
Randolph 5680—-CG 972
•1
New York Office
available
lar—C. E.
& Co., 120
de Willers
Broadway, New York 5, N. Y.
;
Corporation—Circu¬
Magor Car
Abitibi Power &
*
*Camden Forge
Co., Common
Snap-On Tools Corp., Com.'
^Prospectus Available
Established 1916
.
,
_
\
Members Principal Stock Exchanges
Chicago Board of Tirade\
10 So. La Salle St.,
Circular-tDe
Young, ; Larson
Tornga, Grand Rapids National
Bank Building, Grand Rapids 2.
dividend-paying
on
equipment stock—Send for circu¬
lar CC—Blair F. Claybaugh & Co.:
Chicago 3
.
;
ern
Railway
South¬
Rnaj*
ysis—Adams & Co., 231 South La
Salle Street, Chicago 4, 111..
■
.
Grinnell
American
Light
Memorandum
up
&
Traction-
tlorporatioh
—
ADVERTISING
South
La
Salle
Street,
Chicago
fj*v
%
1
'
,
,
*•
,
Branches
-V"
Albert Frank
■
^
-
V"
V
on
value—Ralph E. Samuel & Co.,'
•
Guenther Law
.Telephone GOrtlaridt 7'5C6G
■
.
A.
S.
Co.,
Campbell
Inc.
—
AnalysisNew York Hanseatic
Corporation, 120 Broadway, New
York 5, N. Y.
j Canadian Western Lumber Co.
—Circular—Maher & Hulsebosch,
62
William
Street, New York 5,
Industries:
American
Dou&las
Shoe; General Tin; Upson Co.:
Mohawk Rubber; Aspinook Corp.;
Alabama
Mills,
Inc.;
Central
Adams
Paper
Fred.W. FairmanCo.L
Jwnni since 1908 enanai- j
'v'
;
"
Nafidnal
—Late
.
Panama Coca Cola-^Circular or
Illinois Central — Memorandum
c
New
Telephone Randolph 4068
Wire to New York
1420
—
Walnut
Service
Buckley
—
Mem¬
Brothers,
Street, Philadelphia
2, Pa.
Also available
,
are
Grueit Watch
Midland Utilities.
On
possibilities — Hoit
Trbster, 74 Trinity Place
York 6, N. Y.
& Brkss-f-Stud^
Edward A. Purcell
—
Co., 50 Broadway,
4, N. Y.
memoranda
and
Company
-
Thermatomic
Cb.
Carbon
—Circular—Hoit, Rose & Troster,
74 Trinity Place, New York 6,
N. Y. ;
;.r.
.
.
Now York
Upson Co. —* Descriptive Cir¬
Co.—Late data cular—Seligman, Lubekin & Cb.,
1 Broad Street, New York 4, N. V.
of -^-Goodbody & Co., 115 Broadway,
Also detailed circulars on
New York 6, N. Y.
'&Hickey, 49" Wall Street,
New York 5,
N. Y.
available
is
^
II. II. Robertson
a
leaflet
Tennessee Products; Wellman En¬
—
portation; Statistics for the First
Schenley Distillers :■ Corporatloi
-Brochure Of articles they hav«
gineering Co.; Shatterproof Glass*
Temple Coal.
—We M&intain Active Markets In—
DEEP ROCK OIL CORP. Common
,
Common Stock
Priced at 22M
to* Yield
.:
♦
REEVES-ELY .LABORATORIES Coiiv. Preference
4.44%
i,r\ -""-..vt
'
V::y
,
v
„
135
•
209 SO. LA SALLE ST., CIUCAGO 4,
ItL.
Teletype CG 864
;; .•••;.
Incorporated
SO. La Salle
;i Telephone State 8711
New York
"•,!>':
Byllesby and Company
v
Member? Chicago Stock Exchange
Telephone Dearborn 1421
J-/*
v
-.'V"
>;*••'.'•
INCORPORATED
-
\
'*'•.•
v
H. M.
SILLS, MINTON & COMPANY
-
BEND RR. Common
CHICAGO SO. SHORE & SO
,
^
?
System CG 537
Texas Public
■
—Vilas
Quarter of 1946.
CHICAGO 4, ILLINOIS
Bell
fro'nk
automobile,
building, and
frozeir food industries^taymond
the
Rose &
company.
208 SOUTH LA SALLE ST.
Direct Private
the company
War benefits to
interesting
of outlook
N-l,
of this
Public Service—
New England
Analysis — Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
>4
discussion
Corp
stock
ICC Monthly Comment on Trans¬
Wall Street,
v.y".
Corporation Common Stock
A
a
Simplex Paper Co.—Descriptive
analysis discussion potential post- E
orandum
Scranton Electric
*
National Gas & Electric
For
on
f—
report—Mercier, McDowell
& Dolphyn, jBuhl Building, De¬
troit 26, Mich.
circular — D a; y to jt
Descriptive
Prospectus Available
Chicago Board of Trade
Write
Gas & Electric
memorandum
Sheller Manufacturing Corp.
Recent
'
.
Chicago Stock Exchange
;
Circular
—
&
Peck, 63
New York 5, N. Y.
Members
alysis of current situation and
prospects for 1946—Comstock &
Co., 231 South La Salle Street
Chicago 4, 111.
Revere Copper
Purolator; Lanova.
Also
*
Chicago Philadelphia San Francisco
.
South
&
Incorporated
^
131 Cedar Street New.York 6,N;Y«
Boston
135
Co.,
Broadway, New York 6, N. Y.
,
'H;'-"*
.
sheet—Doyle,
ance
Haigney & Co., 75 Federal Streel
Boston 10, Mass.
-Plans Prepared—Conference Invited
*
and bal¬
O'Connor &
La Salle Street,
memorandum
ligation, write to department T—
Merrill Lynch, Pierce, Fenner
Beane, 70 Pine Street, New York
5, N. Y,
Memo¬
increased break¬ 3, 111.
Great
Its
Moines &
Co.—Detailed
Hartford-Einpire — Study of
outlook and speculative possibili¬
ties foh appreciatioh f6r this com¬
Amott Baker Realty Bond Price
Averages—Current news bulletin pany—Ward & Co., 120 Broadway,
New York 5, N. Y. Also available
—Amott, Baker & Co., Inc., 150
are late memoranda on;
Broadway, New York 7, N. Y.
FINANCIAL
All
Company-
.
115
In
Current
Realization
,
Teletype CG 4b5
Indianapolis, Ind.
Rockford, 111.
y
-,M
■■
Cleveland, Ohio
;
Midland
offering combination of improving
5c Co., 148 State Street, Boston 9,
Utility income, together With ex-4
Mass.
eellent
speculative
possibilities
American Glass Co.—Analytical
look— F. J.Young & Co,, Inc., from oil
developments—Fred W
brochure 'indicating
speculative 52 Wall
Gtreet, New York 5* N. Y. Fairman & Co., 208 South La Balle
Spokane
Portland
Cementpossibilities ^ Kneeland
& Co.,
Bulletin on recent developments—
Street, Chicago 4, 111.
Board
of Trade Building, Chi¬
Hammond
Instrument
Co. -~
Lerner
&
Co.,
10 Post Office
cago 4, 111.
New England Lime CompanyAnalysis—Caswell
&
Co.,
120
Square, Boston 9 Mass.
Tel. Franklin 8622
.
4, N. Y.
including a timely article on "The
Outlook for Interest Rates"; rail¬
randum indicating interesting out¬
RDavis &Go.
.
American Forging and Socket—
Mich.
Request,
on
York
Ft. Dodge, Des
Inc., Pfd.
Industries,
1
■
5, N. Y.
Wells-Gardner & Co., Com.
*Woodall
\
York
1
With Selections
railway road, utility and corporate bonds,
preferred stocks, and a listing of
consistent- dividend-paying com¬
52 Wall Street, New York 5, N. Y. mon stocks
mailed without ob¬
lar
Eversharp,'.inc.-~-Analysi6 on iii- Chicago 3, 111,
teresting situation—-HaydeftBtOne
Miller Manufacturing Co.—An¬
Co.; 25 Broad street, Neiv
Paper—Sum¬ &
mary—Ernst & Co., 120 Broadway,
New
■11'
isj a study of
pf New York.
Americah Surety Co.
1 WaU St.
•
1"
objectives; factual
appraisals of 34 leading industries
of individual is¬
sues for specific purposes; sections
oh U.
S. Government securities
and for varying
Macfaddeti Publications^Circu-
-
Midland Utilities CompAny and
-
""'
current positibn
business ahd
analysis of the
the securities markets; selectiohs
ytical studyr-r*Graham, Parsons & of pre-planned portfolios for the
Co., 14 Wall Street, New York 5, investment of different amounts
Co.
Descriptive
analysis—du.. Pont.
Stocks versus Groups—Study—
Homsey
Co.,
31
Milk Street,
Geyer & Co., Inc., 67 Wall Street,
Boston 9, Mass.
'
New York 5, N. Y.
7
231 So. LA SALLE ST„
Avenue, New
and outlook for both
—
formation
Dwight
Corporation,
York ;1,
Distillers
LeToUrneau, Inc.—Anal^
R. G.
Ohio.
HICKS 6- PRICE
Fifth
Company
able On Citizens Utilities. y
current
of
"Highlights
of
issue
is
Schenley
— Study
of N.Y.
sound specu¬
lative
^purchase — First
Colony
Security and Industry Survey
Corporation, 70 Pine Street, Nev —64 page booklet covering 34 ih~ '
York 6, N. Y. Special letter avail¬ dustries —^ includes TeView aijid
Roi
pany
Pamphlet on favorable outlook4- Current situation and outlook —
Kugel, Stone & Co., 20 Broad J. F. Reiliy & Co., 4Q. Exchange
Street, New York 4, N. Y,
Place, New York 5, N. Y.
'
Consolidated Gas
,
Stocks—
write to
350
N. Y.
New York City Bank
running in the ChronicleMark: Merit, in care of
been
yommbn stock as a
Also available is a recent meipon
Ahaiysis4^James M; Toolan & Co.;
o7 Wall Street, New York 5, N. Y :•
Le
Hicks & Price, 231 South La Salle
Street,t Chicago 4, 111,
orandum
Treasurer
Secretary
Kinney-Coastal Oil Company-^
New York
The
Irvinjy, Kelin'
Phillippa Caterer.
Vice President
outlook—fi
and
Co.;
Ohio Leather Co.; American Fur¬
niture Co.; Punta Alegre Sugar
Corp.;
Haytian Corporation
of
Ymerica; Latrobe Electric Steel
Co.; Ray-O-Vac Company; Fort
Pitt Bridge Works and Welch
Grape Juice Co.-^Strauss Bros., 32
Rubber
Armstrong
Corp.;
MARKET
SECONDARY
135 La Salle St.
Company;
Upson
Corp.—Analysis
Shelby Cullom Davis G.
Bretey
President
Southern
and
Appliance Co.; Pettibone Mulliken
UNDERWRITERS
CHICAGO 3
contain¬
Portland Cement Co.; The Parker
For'
■v
of comment and review
ing brief analyses of Philip Carey
Manufacturing Co.; Sargent & Co.;
Wholesale Distributors
Middle West
Thursday, May 30, 1946
Dealer-Broker Investment
1
■
CHRONICLE
1946-47 Officers of New York Security Analysts
'
Mills
Allied Paper
V'W:;.
THE COMMERCIAL & FINANCIAL
2918
Trading Markets
t.
Philadelphia
,
Street, Chicago 3
■
Teletype CG273
Pittsburgh
Minneapolis
,
Volume 163
Number 4494
THE COMMERCIAL & FINANCIAL
CHRONICLE.
2919:
Report Deterioration
Chicago Personnels (Special
In General Business
NSTA Notes
rPtif&asingAgents* Survey points
out -confusion is fan^anh'- Sayr'
supplier* make sales without profit, an d there is indication that
orders are being inflated.
Inventories are lower.
shade
i
,
,,yi:
11
u
*
*
1
v»i''
The
■
Lv
Chicago
Ar
Seattle
Lv
Seattle
Sept.'16
Early Evg.
Milwaukee
tee;,headed by
11:55 P.M.
Union Pacific
Sun,
-
Lv
San Francisco
Tues.
Los Angeles
Wed.
Angeles
**
Grand Canyon
made
& Rubber
a
Southern Pacific
r
There
9:10 P.M.-;; Southern Pacific
10:00 >A.M.-«-Southern .pacific
-Sept. 27
Septv -28
-
Grand Canyon Sat.
Chicago
' Mon.
Sept. 28
Sept. 30
■
downgrade.* Suppliers
Price, Jr., of
Goodyear Tire
Sept, 25
;
commit¬
a
George"E.
c'
Union Pacific
10:30 A.M.
4:30 -P.M.-
-
poor¬
&
the
Co.,
staff
141
of
West
Army.
Santa Fe
Santa iFe
^..T
„
Gough
not
Chronicle)
with
'
D./Tl.
Mason, Moran
&
was
previously
He
Lieutenant in the
a
;
being
let
is
Financial
ILL.—John
U.S.. Navy.
generally
are
The
Co., 135 South La Salle Street.
alone
profit,
in
up
demand but the
1
inflated and look for
a
TRADING MARKETS
.
Cliffs
.*•/:
j
reduc¬
^
tion in backlogs, before the
year is
seems
bver.
ramp a nt;
"Take
it; or
Cars connecting with the Special at Chicago will leave Sept. 13
Lorn Boston, New York, and
let
no
are
Confu¬
ago.
sion
George EL Price, Jr.
month
a
sales
any
to
CHICAGO,
Capacity to produce: is static,1 be¬
cause. of material
shortages. How-f"
ever, many buyers, bedeve orders
b usi ness
than
with
,
Boulevard, after serving
in the U. S.
V.
A*
Chronicle)^
normal profit. There
appears to
be
trend
er
5:30 PM.
a
strong
Santa Fe
10:30 A.M.
indicate that
Co.
is
•
toward
Santa ;Fe
8:30 A.M.
#
(1
(Special
Southern; Pacific-.
A.M.]
1:0Q P.M.
Road
Sept. 24
Fri.'
Sat;
8:00
Sept. 21
Sept. 22
.
-Ar
Ar
submitted
Sept. 19
Sept. 20
Sat.
Lv
tin
Mon.
;Fri.
'.-v
•rules. Strikes and material short¬
ages have buyers groggy. While
Some few buyers report the quan¬
tity of businesses on the
upgrade,
the quality is
definitely on the
Agents Bu.le-
*'{ *Vm'!
,
Tfc '£
rejoined
Bros.
-
Jackson
/
,
:yr.y
•
g
Thurs.
San Francisco
"
/
1
Follows:
as
n
10;30- A.M.: Milwaukee Road
Portland
Los
/?%•*.*».
i
Sept. 14'
J\r
Lv
I»*
a s
by
Lv
Ar
•'
-
Schedule is
Sat.
Ar * Portland
,
i-','
Purch
.
,
^
Association of %
Chicago Sept. 14 for the National
Security Traders" Association Con¬
vention in
Seattle,, Sept. 17-19.
,"
'
i
1
Financtax,
industrial purchasing agents report a marked deterioration
in
general business conditions, according to a report in the
National
NATIONAL SECURITY TRADERS; ASSOCIATION CONVENTION
Reservation should be made < now for Special Train leaving
'V•
'>
Ths
has
Lamson
- -
»*'.
to
CHICAGO, ILL.—Paul J. Espen-
Cleveland-Cliffs
.
Reports from the
West
Corp.
COMMON
/••"'v ;
Coast
and Canadian, buyers follow the
leave it" and "What's, the
use?",
>4 J The approximate cost of the All Expense Trip (including Pullman,- jexpress the: general attitude of general pattern of confusion and
hotels and meals on train) on the basis of two in as-compartment business. Forward planning is im¬ uncertainty. 3toney; and work are
plentiful
The lack of finished
ifrom: the - fol lowing" points to Seattle and return via: Los Angeles
possible," and a, day-td-day basis
(Continued on page. 296X) ^
"Will be: ""
;
'
'
PREFERRED
Philadelphia.
.
From
Baltimore, Boston, New York, Philadelphia, $425
iiperson; from Chicago,. Illinois, $300 per person.
f. _-,>/*1 *
-
1
*
*
►
-
'
Lay tori Haigney> Dayton Haigney; 8r;Co^' Boston, Mass.; and Russell
31. Dotts, Bioren & Co., Philadelphia, Pa*
iSlilS
Tel.
Chile and Mexico
Ratify: Bretton Woods
In both countries fands for the
purpose are obtained from, their
^DALLAS BOND CLUB
: ' respective National banks^
Chilean Finance Minister explains im| L .portance; of tlie lnternational
; -: The Bond Club of Dallas, is holding, its annual
spring' party on
Mobetary Fund to stability of bis
"May. 3(^1 949r at the Lakev/ood Ctountry Club. | Features of the day f:d?natioii3s1^ currency^ Mexico alters Userve
requirements of National
Are J golf,■: tennis,; and
swimming,. with
gin
etc.,, following
rummy,'
.
reserve
[
Members of the Entertainment Committee are: ; Jesse Al Sanders
jr.j Banders .&• Newsom, Chairman; John • L. Canavany Rauscher,
.'Pierce & Co.; P. B. Garrett, Texas? Bank & Trust
Co.;; Robert R. Giiltort,r Jr., First National. Bank in Dallas; and James Fi Jacques, First
■
^Southwest Co.
'
'
'
a
"
.
'
i
'
\
M
V
«
i
•
CtUB, INC.
:'
*.
.
;
V
,
' h* V
1
,
«
'
*•
1
*v
Oil June' 13 and 14 the Cincinnati Stock and Bond Club will
hold
its Mjd-Summer Party, ^ There will be a cocktail'
party, on the night
:
«©f the 13th and
all-day outing at the Kenwood Club on the 14th.
Frederick F. Latscha; Geo. Eustis & Co.; to Chairman of the Com¬
mittee on Arrangements.
'
' ■-» '
•
'
k*r / r: .'
an
STAte
Tele.
V/.
CG 28
<
AMERICAN
tfeVvV
-
con-
4950
^
.
-w'
4"v
■
SERVICE CO.
r
\0'
•I-
"
requirements.
WASHINGTON, D: C., May 29-i-The circumstances of the ratification of Bretton Woods
Agreements by the United- States and the
United Kingdom have been wide»
$3 Preferred, Class A
~
-
ly publicized in the§?e pages. • Not
to much is known about the. rato
Jg
CINCINNATI STOCK & BOND
v'
Bank of Mexico, so as to
exclude; liability resulting frora iis
tribution to the international
institutions from
Chicago 3, III.
{
; -
Luncheon.
CO^
135 South La Salle Street
per;
Reservations may* be-made now through John M! 6'Neill, Stein '
Bros; & Boyce, Baltimore, Md*; B, W. Pizzini, B. W> Pizzini &
Co.;
New York, N. Y.; Edward R. Welch, Sincere & Co., Chicago,
;
KITCHEN &
'
v
.
*■/;.
.
ification by other governments, or
their methods of ffnhncing their
Subscriptions;
rency
I:/-',
.
ratification.
of-
Bretton
■■
today; is. worth Only one
fifty-second- of what it was when
peso
M S/
Circular
■i't*?".
«.
+
ti'.A
"j
"In the last 100 years all. sorts
of
monetary * systems
have -been
tried.: bi-metalism, gold standard^
jDer ofiDeputies.
,,
bank notes, Government currency;
;
According to - Art. 13 of the metallic/ conversion,' free ^xChilean.- law
the
Government phange, Central. Bank with, gold
hdrrows from the central bank to
exchange standard, Centra) Bank
financed its subscription to •: the Without
gold, standard, exchange
Request
on
■'
Chile becahie independent. Chile
iaiuiof maintain the Valu6 pf the
Woods
Agreements together with some of
the. colloqpiy in the Chilean Cham,-
-
difficulties, stating that the
-
*
s*
';II
$
☆
etc!4
Accordingly
"Chronicle"
presents some; beso without - foreign help, the
data regarding the laws passed
iq Minister of Finance explained in
Chile and Mexico providine for these words:
the;
and Common Stocks 4
i/
ADAMS & CO.
< '
231 SOUTH LA %ALLe STREET
I
■
;
TELETYPE CG 361
,* CHICAGO 4, ILLINOIS
1 PHONE STATE 0101
.
World Bank.
Art. 14 provides for
exchange permits to raise
with- which to, meet in¬
terest- payments due the World
Fund on borrowings from it by
a
tax
on
revenue
,
Chilei^Th^ transitory articles
vide for
.
X Fleming Settl«
Julian
R.
At
Hirshberg
R,
C. Mathews,
Jr.
recent meeting of the Atlanta Bond
Club, the name of the
was changed to the Georgia Security Dealers Associa¬
Officers and the Executive Committee forThis
year are:
a
•organization
President:
<
•
J. F.
Vice-President:
Settle., J, H. Hilsman & Co^ Inc.
J. R.
pro-;
foreign
ex¬
Hirshberg, Norris
which would
cause
Chile to
use
the resources of the Fund must
have the approval of the Central
Bank of Chile;
In
his
address: to\ the
Chamber of
Chilean
Deputies, the Finance
Minister traced: Chile's past
probably those of the last
periods of fixed ex¬
change rates and the gold: standi
ird-ri. e;, the metallic conversion
of 1895, and "the Central Bank of
>
.
brief
Howard
^
Miller
that
whatever
we
type
of
on
,
our country,
monetary; re~
have
may
(Continued
had
at
page 2962)
Manufacturing Go*
Puget Sound Power
firm the fact that iii
gime
lndustriesr Inc.
Kropp Forge Co.
not
trying to lead to the
fixed exchange
rates and the gold standard are
not desirable. I only wish to con¬
am
conclusion
cur¬
t
Company
Hydraulic Press Mfg. Co.
1925-31.
"I
■'
& Light Co.
Superior Tool & Die Co.
'
any
Trailmobile Company
1
'«'v11:1'\
»Hirshberg, Inc.
-
'-,vp
<"
<
: Secretary-Treasurer:
R. C.. Mathews, Jr., Trust Co. of GBorgia.
Committee: J. L. Morris, The
Executive
V*
COMSTOCK & CO.
Robinson-Humphrey
Co.;
T. R. Waggoner, Wyatt, "Neal & WaggonerByron
JBrooke, Tindall & Co.; and J. F. Glenn, Courts & Co.
J
annual
change budget. .Authorizations of
foreign exchange the granting of
•GEORGIA SECURITY DEALERS ASSOCIATION
tion.
an
Appleton, Manufacturing
were
two
Aeronca Aircraft
Corp.
r
control* import control et cetera.
Of all these the two most fatal
Brooke',
The Association will hold its annual outing on June 7 at the Fritz
Orr Club; features of the day wdll be golf,
swimming,"
v
horseshop
pitching and other outdoor sports.
CHICAGO 4
231
B O N D S
,:''6
Municipal
i-y,
■
^Circular available upon
request.
.
I
»
pf! Gisholt Machine
;
:-
A-CAUXN^COMEVNY
>
'•
Incorporated.. T
'
■.'-•.•••'
incorporated
135 SOUTH LA
CHICAGO 3, ILLINOIS
Telephone: Dearborn 6161
l!|!WiCHICAG0-
,
SALLE STREET
'
:
A
,
Teletype: CG
;
/
1200
WLLEY, DAYTON & GERNON
Member—Chicago Stock Exchange
"
/
:
1
DOYLE, O'CONNOR & CO.
i
Macfadden Publications
IS All Wisconsin Issues
REALIZATION
■
Utility
Railroad
UTILITIES
CHICAGO SOUTH SHORE & SOUTH BENO
"■
955
Industrial
H ALLIC R A FTE RS
MIDLAND
.Dearborn )501
-.
Teletype CG
Public
^MIDLAND
So. La Salle St..
new
york
boston
i
V
milwaukee
'/
105
,
minneapolis
omaha!kansas
city
r:.-
-
So.
CG
•
262
La
Salle
v.-
St., Chicago 3, 111.
Central
0780
Offices in Wisconsin
Eau Claire
-
Fond du Lac
Madison
-
-
La Crosse
Wausau
:
i
■
.
..
Thursday, May 30, 1946
2920
Robt. Lovett
that the market
Rejons
Tomorrow
Brown Bros. Harriman
following interest distributions will be made
hear that the
Walter
additional % of 1% with approximately $32,900 reserved for
sinking fund purposes. This compares with a total of 2.4% and a
s.nking fund of approximately $24,300 for 1945.
Filth Madison Corp. will pay $30
per $1,000 first mortgage
per $1,000 second cumulative inThe payment includes the
cc~ e 6% bond, as against $15
plus
toes
paid for the
$1,000
pion
previous
Firth Avenue's newly reor¬
first mortgage leasehold
4 s will pay interest at the full
rata of 2%
for the six months
Gibccn Apartments will make a
payment of $10 per
$ 1,C00 .bond, After June 1, 1946,
the bonds will accrue interest at
the rate of 2V2% per annum.
New York
per
.
service,
ment
resigned
1945.
in December,
woods
v
:
his
2.3% additional, or $33 per $1,000
first mortgage bond. This com¬
pares with $27 paid in ? June of
Robert A. Lovett
a$"5! As-\:;/V;
post *
''yy'\/V
sistant Secretary of Weir' foir Air
—
Terms
France
cancellation of $1.8
to remove some
agrees
restrictions
against American motion pictures/ and not to raise import duties.
Terms similar to British loan, but arrangement. through Export-
interest on
-—
thi €% income debentures
provide for advance of $1.4 billions and
billions in lend-lease.
■
^MasterPrinters
will be
$1,000 bond.
Byrnes and the Ambassador
F.
cancellation
of
estimated at
In return for the
under the terms,
to accept the U. S*
lend-lease advances
$1.8 billions. ^
credits,
new
France agrees
BLOCKS OF
.
1946.
frain
from
tariffs
raising
ment of the United States
above
level; and to remove some provisional Government of the
French Republic have
met to¬
on American motion
pictures. As the credits are grant¬ gether? in Washington and have
ed through the instrumentality of discussed important economic and
problems of common
the Export-Import Bank, no rati¬ financial
These problems / have
fication by Congress is essential, interest.
included /the
need for
foreign
though the terms of the agree¬
credits
for
reconstructing
and
ment, including interest charges
prewar
restrictions
SECURITIES
WANTED
>
will t pay
We
above
•
prevailing bid prices
and in
instances
some
prevailing of¬
fering prices for ceiv
above
blocks
tain
of
lected rtmlisted
se¬
real
securities.
estate
and
methods ' of
similar
to
repayment,
are
Anglo-American
the
Agreement, which is
now before Congress for approval.
The full text of the agreement as
Financial
is
reported by the United Press,
as
follows:
The
Representatives of the Gov¬
provisional gov¬
ernment of the French Republic
SHASKAN & CO.
■i'i;;|^AItmfc«r* Now York Stock Exchange
Member* Now York Curb Exehango
J j 40 EXCHANGE Pl„N.Y. Dlgby 4-4950
|.
Teletype NY 1-953
•
and for page one newspaper
stories.
It has nothing to do
It is not interested
ever.
as
sentiments
in
dramatics.
or
mo s t people
who have come into the mar¬
Unfortunately
ket in the past few years in¬
sist on giving the market an
.
,v
Descriptive Circular
en
Incorporated
'?•.
,.
.
41? Broad Street, New York 4
ipf&'i-
•
Roosevelt Hotel 5s, 1964
-
Sherneth Corp. 5&s,1956 W.S.
S.
Commodore Hotel, Inc. Com.
Mayflower Hotel Corp.
870—7th Ave. Corp.
Common
be sold at 107
■'
:i
./>;*; ///;Members
Stock
Curb
York
New
Montgomery
SP
61
&
62
& Co.
St* San Francisco 4
EXbrook 1285
.
-
r
V-;
.
Incorporated
150 Broadway
Tel.
BArclay
7-4880
/
,
York
'
.
•'
'
Teletype NY
..
,4
iJ, '
'
.
'»
•?/•••(
/ ' - * >■ t, tig ^ '
-
Orders Executed
Pacific
"
f
Exchange
Exchange
/ Cotton Exchange
Commodity/: Exchange,
Inc.
C h i c a g o
Board of Trad/1*
New
A
-
on
-
Coast Exchanges
Schwabacher & Co.
Orleans Cotton Exchange
And other Exchanges
Members
:•
New
Exchange Bldg.
NEW YORK 4,
N. Y.
York Stock Exchange
14 Wall Street
New York S, N. Y.
,
Teletype NY 1-928
Private Wires to Principal Offices
CHICAGO
1-588
.
COrtlandt 7-4150
(
'
New York 7, N. Y.
'
-
York
N. Y. Cotton
■
2959)
New York Curb Exchange (Associate)
Chicago Board of Trade
Amott,Baker & Co.
•'
better. Mon-
page
Securities
Roosevelt Hotel Inc.
'
or
on
.
Common
-
Mon¬
Pacific Coast-
New
Hotel Waldorf Astoria Corp.
'r
better.
or
across
Dlgby 4-2727 ?:
Eltablbh'.d ISM
New
Westmghonse Bldg,; 4/48
.
the 70 figure
so you have a ten
point profit/
Bethlehem bought at 99; to
./
HAnover 2-2100
.
40 Wall St. 5s, 1966 W.
J. S. Strauss
.
,
York Security Dealers Association
Savoy Plaza 3/6 1956 W.S. /
I $6
Well, you know what hap¬
pened.
Saturday's market
was closed by the rhil strike
so
nobody could cover had
they wanted to. But last
Thursday's and Friday's mar¬
kets gave signs of what was
to come. Monday, you saw it.
They opened up and stayed
up most of the day closing at
practically the best prices of
day it was
Exports—Imports—Futures
request
Seligman, Lubetkin & Co.
New York A. C. 2s, 1955
*
♦
(Continued
Members New
front
.
SUGAR
/?'
the
,
H. Hentz & Co.
/ ;«
#
taken at 70
Teletype NY 1-1203
[Poll New England Theatre 5/83
make
^
Commodore Hotel, Inc.
39 Broadway
New York 6, N. Y.
will
pages."
...
agreements reached
follow;
York Security Dealers Assn.
Anover 2-8970
coldly realistic
as
3/46
L. J. GOLDWATER & CO.
;
The
with the stock market.
i SOO Fifth Ave. 4-6 Vz /49
Members New
and most
Saturday afternoon. Drama,
however, is for the theater
Y
problems of interest to their re¬
spective countries. -
SI East 42nd St. 3/56
position^ present and
adding the possibility of a
rally to it led to the state¬
ment, "The market is how
teetering on the edge of an
overloaded short position..
If it starts
the panic cov¬
ering can bring about a rally
.
today concluded their discussions
of the economic
and financial
Texts of the
overloaded
was an
short
,•
2/45
Chanin Bldg. 1/45
2 Park Ave.
armis¬
that there
.
America and the
Chanht Bldg.
and the coal
nearby advance/ But under¬
neath all this gloom the ac¬
tion of various stocks pointed
to a rally.
It didn't take any
remarkable foresight to see
what such a rally could mean
at this time.
Being aware?
aura of mysticism.
They ap¬ the
day. This brings us up
ply their wish fulfillment to
against the immediate future
modernizing the French economy,
symbols on a ticker tape and and what to do about it.
the settlement of lend-lease, re¬
dress the whole thing up in
ciprocal aid and other war ac¬
counts, the purchase of United something that just? doesn't
For practical purposes we
States surplus property situated exist.
News for news ( sake
have to consider our positions
in France and certain French over¬
means nothing to the market.
first. As of last
seas
territories, the purchase of
yeek w^ .were
It jSiWhatishehind the news,
ships owned by the United States
long of four, (stocks,/about
and international qommerci al oraih/advahbe of it that is
which last week's cblump ad-policy.
; v,'.;? r .,/-/■
important.? /
vised,
if their prices im¬
The discussions have brought
*
*
*
out clearly the full agreement of
•:/-'
>i
•.y ' V
i--':
' ,/"• J'* ."*■;• Jfi
prove on any rally
.
you
the two governments on coopera¬
Last week I warned readers will have still
larger profits.
tion in the fulfillment of the eco¬
When
specific objectives
nomic objectives which both gov¬
are seen the
ernments recognize as essential to
suggestion is to
(Continued on page 2958)
accept the profits." So here
LAMBORN & CO.
is what happened /American
99 WALL STREET
Car & Fdry, was bought at
NEW YORK 5, N. T.
60 in which profits were to be
ernment of the^ United / States of
Bell
and gone
stoppage which had an
tice, is on again. :
market is
Representatives of the Governand the
non-discriminatory policy; to re¬
REAL ESTATE
:
this column the rail strike had
come
a
available
...
ingtori by the President of the
United States and in Paris. by "
the President-of the ^Provi-,.
sional ■„ Government
of the
French Republic on May 28,
with
together
'
All this
made considerable fodder
But the biggest
^ Declaration made in Wash-
viding U. S. credits of $1.4 billions,
y
*
At' least not
news.
all the
pessimistic. / Even
was against any
was
news
This
made at
was
when
time
through Secretary of State James dramatic event was the rail
that
Extraordinary for France, Leon Blum, strike which Truman ended
signed a general loan agreement^
in Washington on May 28th pro-'
.
the coal situ¬
The United States and France,
will
New York Athletic Club
'
not:
as
concerned.
for newspaper headlines.
By
the time I sat down to type
approval.
Import Bank does not require Congressional
made at the rate of 5% per annum
'
was
far
so
was
observation
on
was
surprising news even though
1945.
Fiench Credit Agreement
will pay $25
$1,000 first and general mort¬
gage 3-4% bonds. This constitutes
Xlk% fixed interest and 1% in¬
per
terne interest.
ation
it
will pay $15 per $1,000, or $5 more
than was paid on June 1st, 1945.
per
will pay
--
interest plus
fixed
1%
usual
flatten
the market
nation
the verge of a railroad strike
and it still wasn't out of the
$770 reduced par bond.
61 West 39th Street
the
the
that would
advance
by Recent many a fat pocketbook.
Rally. Suggest Withdrawal to
Sidelines for Time Being.
written
payment of $7.70
semi-annual
a
Market
of
As last week's column was
Majestic—wili make
6% debentures
Cra mercy Park's
'6f: $25
jEg
Dislike
Action Intensified
reorganization.
epf'ed May 31, 1946.
# London Terrace
partner
$10 per
bond made for the first time since
ganized
semi-annual
eral
jj|9i
gen-
full additional interest of
hs period.
509
as a
of such
tyros could turn-a mild tech¬
nical rally into a stampeding
==By WALTER WHYTE=
firm
tired of
poking its
into waters it had no
was
business. The presence
an
Previous
become
dullness and
Says—
Broadway-Barclay first mortgage -bonds will pay the fixed 2%
had
vances
Whytc
Stocky Ex-..
5
s
Markets
Brothers f Harriman
&
59 Wall Street, New York
City, members of the New York
Brown
Co.,
vVo
was
building
amateur short position
that was dangerous.
A pub¬
lic long nccustomed to ad/
up an
DETROIT
GENEVA,
PITTSBURGH
SWITZERLAND
>
San Francisco
Monterey
—
—
Santa Barbara
Oakland
Fresno
—
"
Sacramento '
T
X1
Volume 163
Number 4494
THE COMMERCIAL & FINANCIAL CHRONICLE
•'
i
rebuilding. Europe
must
have
food; raw materials, and tools to
Ihteinatidndl^ Coopeiatio«0
A Goal of
By FRED M. VINSON*
Secretary of the Treasury
In
*"
discussing
problems with reference to
Secretary Vinson stresses need of:
*
sound and expansive
economy.
both political and financial international
|||denying;
cooperation. Though
on world healthy
conditions, he points out that unless we are prosperous,
the world cannot have
f
basically dependent
our prosperity - is
economic
{
'
stable economy.
Lauds Bretton Woods V
institutions and British Loan Agreement as factors
promoting world
trade and prosperity and as
fostering greater international cooper-
| ation.
a
Predicts balanced budget in 1947. /'/•;
||
•
•
•/.•/;: v//
;/// Our country is the most influential nation
basic
a
fact.
It
is
?/" C-S&-.A
in the world.
That is
recognized by the peoples and governments of
other nations.^
;1?■:?/,/.;■
■/
W h a t e v e r must accept fully the
,
:
doubt;
arises
exists
not
as
we
the
most
influential
nation, but
to whether
as
we
fully
realize
the import of
this basic fact
leadership
and1 responsibility that; now rest
upon our shoulders, and this job
is
that requires our attention
and effort day in and
day out. :
one
In
exercising our leadership and
assuming our responsibility, we
must first set a good example in
our own country. / We must con¬
tinue to be the most freedom-lov¬
ing and freedom-having people in
and
the world.
to
»
show
are ready
accept the
lead
ership
and to assume
the
Secretary Vinson
responsi¬
that it
bility
entails.
r
"W e
must
tackle this j ob i in such a
way that these doubts vanish. We
*An address by Secretary Vin¬
,
Europe the greatest cohesive
and constructive force
is Great
Britain. For more than a century,
^
r
,
markets and open way to
\
of
statism.
is
war
•
of
After
dictators took
the
most
son, read by Assistant Secretary
of the Treasury, Edward H.
Foley,
men.
We
First:
continue
~
and
war
under justice, law. and order, ana
it is
our
duty to keep this record
unblotted
so
that all nations may
Jr., at the Tri-State Bankers' be inspired to live in
justice, or¬
Meeting (Tennesese, Mississippi, der^ and security.
Arkansas), at Memphis, Tenn.,
Our laws so far as possible are
May 23,1946.
(Continued on page 2944) /
Why do the British need
They need it because they hc ve
just
finished
an
all-out
war
is the opposite of Democracy. For
Great Britain has been
which
in Europe the most powerful
ponent of human rights.
with the Brit-»
and months of
against
our
common
enemies.
They need a blood transfusion to
help * them regain their interna¬
goti ations
centuries
we
conducted
ex¬
To
tional economic healtn.
The pro¬
posed credit is not and, therefore,
should not be judged as a conir
strengthen Britain is a most effectivemeans of resisting dictatorship.
ish
Even in Britain itself the struggle
between
statism and democracy
Fall, I formu¬
draft
lated
/'We in this country know some¬
thing about the cost of war. We
the
powers
a
cure
or
and if
we
are
EccleU
into
the
ually found
of
could
swered, at least to
1.
an¬
to
us
help
get in,
we
re¬
program,
Currency
that program.
resources
recovery from
the war effort
economic
and
our
own
the
resource#.
British
-
^
^• «• >
Pros and Cons |of
Proposed British Loan
By W. RANDOLPH BURGESS *
question
the
America, who
to
House
Banking and
Committee, May 22,
a
resources,
Vicc-Chairman of National City Bank of New York
Although favoring ratification of Loan Agreement, Mr. Burgess
calls attention to: its defects asi
(1) it is not up to commercial
standards of a bank loan; (2) it increases nation's financial burden when inflationary tendencies and tax hardens
require reducHon; and (3) it aids a government committed to a socialist
policy,
Sees loan essential to restoration of
'I vention of
power
regimentation,
and - less ; individual
more
win permanent peace and
European
peace
extension
more
-and to
.
pre-
bfxgoVernm4nt^ i
for wider program! to
prosperity.
vast
page 2959)
on
J
.
(
',l
L
"•/
<■;
YK
\
*
•,,]
^
-
an
•
,
*
--f
oferto fiuy^
/
,
^
1
-f'
%
May
24,
v
:
1946
a
,•
"
11
r
ȣ$&$$$$$
Dated March 1, 1946
uri&kT;. }£'
•'
.
;1Z
-j 'l
i
-*'K
r'i
-V
'i'
Vf-L
v''-
'•
Price 103% and accrued interest
•-X-
,
'<v
:
<yx
'\*c'
Due March I, 1976
'
"
seireS%%2
due 1976
o'X'.'tV
at-
•H .r -:
.
4»
•
vo
125,000 Shares Cumulative Preferred Stock, 4% Series
.,
/
'(Par value $100
a
share)
•
essential
part
pedes production.
of
con¬
storing
and
Third, the
maintaining
to
peace.
The weight of
a
agreement
gives aid
government in Britain which
to a socialistic pol¬
There
is
plenty
of
certain industries.
The policies of
this government seem to
est
for hon¬
difference
of
opinion as
to ; this- pro¬
posal.
It
is
well to recog¬
nize
some
the
difficul¬
of
ties.
First, this is not
a
suitable bank
commercial standards.
•There is a good chance it will be
paid, but the risk is substantial.
No group of commercial banks or
investors could afiora to take so
"great a risk.? This risk can only
be borne by the nation as
"in the national interest.
Second,
creases
burden
the
at.
a
a
whole
time
in¬
financial
when
we
are
'seeking
to
reduce
inflationary
buying power and seeking also to
•reduce the tax burden, which im*Statement of Mr. Burgess be¬
fore
the
House
many of
placing an obstacle in the
of freedom of trade and the
stimulation of enterprise.
us
to be
way
These
all objections which I
know have been weighed
by our
are
government, and which this com¬
mittee is justified in:
reviewing.
Committee
on
iBanking an^ Currency, May 24,
fl946,/ ~///'
-
As
against
these
objections,
however, there seem to me over¬
riding
reasons
which
make
ratification of the agreement
the
The First Boston
World
War
I
and
lost
the
peace, so today we are in danger
of losing the peace a second time;
It was the economic and social
disorder after the first World War
which bred Hitler,
Mussolini, and
World War II, and we are today
moving in the same direction.
Every traveler returning from
abroad tells
and
.the story of disorder
distress
that:-can
be
cured
only by' patient and Constructive
W. C.
Kidder, Peabody & Co.
Riplev & Co.
Incorporated
E. H. Rollins & Sons
Corpbratiori
"-f
Stone & Webster Securities
Allyn and Company
Incorporated
Central; Republic
V' >»,-••
Harris, Hall & Company
(Incorporated)
Company
Alex. Brown & Sons
Hayden, Stone & Co.
.
!
Company
(Incoriwrated)
...
Company
Corporation"
H. M. Byllesby and
Blair & Co., Inc.
■
Higginson Corporation
The Wisconsin
Incorporated
Union Securities
Corporation
(Incorporated)
Lee
Langley &• Co.
*
Mellon Securities
A. C.
The world is in a desperately
difficult economic, financial, and
political situation.
Just
as
we
"Goldman, Sachs & Co.
Eastman, Dillon & Co.
Blyth & Co., Inc.
Harriman
Corporation
es¬
sential.
won
British i loari
this/ country's
dealers in securities and in which such
with care.
by
1
Copies of the Prospectus may be obtained from any of ffte several under¬
writers only in States in uthich such underwriters are qualified to act as
Prospectus may legally be distributed*
icy; of"government ownership of
room
loan
share
plus accrued dividends from May 1,1946
is committed
.
W. R. Burgess
Price $103.50 per
the loan is not large, however. It
takes about 1 % of the national in¬
come for twoand one-half
:years.
any
structive pro¬
gram
for re¬
.
'K
/5',/
ofering of these securities for sale, or as
is made only by means of the Prospectus,
as an
of such securities. The ofer
t'
$'■
Congress should ratity the British: Financial and Trade
Agreement, iiot because it is a perfect arrangement, but because such
t,/ <
/
r
a
plan is an^
.1
'• ^ 5
b v
$34,500,000 First Mortgage Bonds,
f -/-V
//'i'
The
•"
*
be construed
NEW ISSUES
,
•
>4
to
.............
...........
Hemphill^Noyes & Co..
Shields &
Whiting, Weeks & Stubbs
f Granbery, Marache & Lord
//The Illinois Company
Company
...
.
F. S. Moseley & Co.
'E. M. Newton &
we
continental
find it "difficult to real-
(Continued
^
the
accustomed
are
nation with
Jersey Central Power & Light Company
~
-
,y V *'
any
I J*
-
-
^
do
■:
this
answer
in
.Chairman Eccles
1946.
i
rf-
This job we, plan
t
This is Under no circumstances
we
re¬
must look at the peculiar charac¬
ter of the British' economy.
We,
♦Statement of
before
with
a
":
our
which
our
on
do
To'
to win the perma¬
'we must be
willing to take the individual
steps which are essential parts of
strain
Why ican't
same? ■;?/
'
.
turn?
nent peace we seek
like
without .thought
nancial system.
to
2. What would it cost
would
more
anything but victory. And
a tremendous job of
placed
Why do the British need help
From abroad?
3. What
thrown
breach
conversion and of
the
them Out?
is
blood bank.
too face
be
my own satis¬
faction:
the world,
a
S.
It
loan.,
on a
too/have
which I event¬
Marriner
and
for the troubles of Europe
world. - There must be
mercial
my
extension of
more
of government,
last
three
questions
i n
mind
goes on.;
Without economic help
Britain will be forced into more
regimentation,
represen¬
tatives
but it is one step,
to be the - exem¬
plars of living under justice, law, anct an essential step, in any pro¬
and order. We have lived through gram for rebuilding and main¬
taining a peaceful, prosperous
prosperity, % depression
must
i;
help from abroad?
continuous ne-
.
govern his
///:•
^
System
genuine world trading system.
a
whether it was called
Nazism, or Fascism, or Commun¬
ism, it was all dictatorship, which
that
relationships with other
7
ing the weeks
power, and
We must continue to
world
•:
difficult. Dur¬
over
less freedom For the individual
democracy human being. - This British loan
works, and works well, and that is
a-Safeguard to human liberty.
it is the best political system that
The British loan is not by itself
man has established to
the
'
•
Reserve
this opportunity to express my views on the pro¬
posed British loan.
This is one of the most important issues of oar
time, and one^
disorder and dis¬
tress, the greatest enemy to hu¬
man
freedom
and
the
greatest
threat
Federal
<>4 I appreciate
Second only to
World War I
Governors,
Financial
Agreement on grounds (1) British need help from abroad in meet¬
ing bill for their essential imports during transition period; (2) cost <■
to us would in no way be a strain on our financial resources and
is a small price to pay for what we
expect in return; and (3) loan
would promote economic peace and restore free access to
foreign-1
,
•
of
Chairman Eccles urges ratification of Anglo-American
tannica,. maintained by her sea
power, her skill in government
and business, and her ideals of de^
mocracy and integrity.; The stra¬
tegic point for aiding Europe is
1
Board
,
to whether
are
Chairman,
in
^
to Britain
By MARRINER S. ECCLES*
the often demonstrated fact is that
aid to Britain.
Aspects oi Loan
Now
the world's peace was a pax Bri-
current financial and trade
a
Three
restore the order and tranquillity
which are essential to peace.
Prosperity and Peace
2921
-
Company
Bacon, Whipple & Co.
Hayden, Miller & Co.
Kebbon, McCormick & Co.
Riter&Co.-;
t;;
I
attributable to (1) electric gas
and
British
heat
Public
departments and (2) trans¬
portation department. The' lattef
Utility Securities
■
v
;
>•»
V,"
;■
/-'V
-s.
•
-vrvv*' --;:.Cvv"«
;*
Vi'l <?5';
only about
3% of operating income Or one-
.
.1
P'-.i'.v.'--
Columbus & ^Southern Ohio Electric Common Stock j
-
On May 23 United Light & Railways Co. offered for sale
j
at,com*
much
as
the contribu-
as
ap4
cion to gross. Hence it would
By CHARLES S. DEWEY*
that, after deducting federal
axes,; transport operations haye
only a negligible effect on com¬
mon
share
earnings,; and
any
pear
Vice-President, Chase National Bank ^
Former U. S. Representative from Illinois
petitive bidding slightly less than the entire common stock of Columf
bus & Southern Ohio Electric Co.
A syndicate headed by Dillon,
change in -the status of such ;op4
7 Read & Co. made a successful bid and /the /stock? was offered id th£ srations would have a rather, small
pu|lic at $53.50 a share. The books have now been closed on: the effect on future earnings. The
^offering, which is unusually large for a common stock sale.
- vr.
company expects to resume ! its
TJie
,
prospectus
<s>-
contained
6n
,v
..
the
date.
same
nately no adjustment
;:.fQr,T:the new tax law
vfSCtpr
in
> lowing
vital
a
current
con¬
earnings,
figures as
tained in the prospectus:
-
;
^'Period—v
*
l^ufuter ended Mar. 31,
12 nios.
-^.'Calendar
1936
rent tax rates; the yield, however,
is somewhat: on the - high >sidq,
$1.29
31, 1936__
encL Mar.
Paid
3.06
year—
since:
2.60
$2.40
2.31
2.40
2.53
2.40
2.65
2.00
2.70
1.60
3.50-
1.60
3.61
1.60
'^3943—————_\
.
1942__
1941_._:
____:
1940
.i___
.
;
1939
-1938-
2.83
to
yields
currently averagb
(somewhat lower for
about 4.3%
old-line seasoned issues).
Possibly
the better-than-average yield was
designed to offset
sales
any
re¬
sistance which might result
fron|i
the unusually high price
(most
1.60
1
' '
,
Mr.
Dewey contends loan to Britain, though it may not fulfill its
objectives, in combination with Bretton Woods and International
Trade Organization, will aid in arresting the movement toward
* state-controlled world
trade, as a threat to free enterprise. Holds;
7 loan will break foreign trade log-jam caused by bilateral agree- V "
§nients and tightening, of wartnne^cphttols; and maintains
panded foreign trade is essential to prosperity.
;
j
has enjoyed a fait
business,: as=,inl
of
war
cheated by the -detailed list of in¬
dustrial customers on page 11 of
to believe
the
world
and
future
-
and:
subsidized
is;: of
peace
an ideology ;
opposition to .our own.
,%<.:*■
There are three, business ideolo¬
gies existant in-the eWorld today^
the Soviet System, our own free ;
enterprise system, and a third
in
the
to
ance
Earnings'in relation to original
which is neither
years to come.
!
r
about
the first
place
;
of Vcurrent
In
•
.that
federal
income
new
taxes
the other. '
system of r bilateral
wish. agreements between England and )
I
I
am
is
and ^Dominions. and„:
colonies
of
number
a
a
believer in
utility stock offerings hav&
free
enterbeen at a price level one-third tb
Chas. S. Dewey
cost. Under Ohio law, rates* may
; amounted to $1,074,410 and fedprise based on
one-half as much). The substan¬
be-jfiited 'd3y;-^tihidpalitie$j"f
| eral excess profits taxes were
tial
competition,
earnings from transit operar ject to certain: restrictions as: det
$2,100,052. Savings under the new
both nationally and as it affects
law-would
have. approximated lions (about 22% of gro«s> may scribed, on page 23 Vof the; pros-f
international trade; Our very laws
$1.62 in 1945 bringing the total to also have been d factor. Earning}? pectus.
in the United States are written to
i $4.22. Of course the
quarter tended are figured after an item of plant
prevent combinations in restraint
/ March 31 is on the new tax basis, amortization amounting to about
of trade.
The very efficiency of
but due to higher seasonal earn130.a share.
our industry is due to this com¬
J- ings :for this quarter it would be
The pro forma statement
petition, *
>
*
!
/ improper to multiply the share
In"!. 1945
one nor
third
This,
!;.tqV emphasize her
cost ).7Howevenj
cost of feproduction^would: jfim
doubtedly be higher than original
assets with plants
or.
either heavily
controlled by gov- &
are
ernments- which: have
Ainericanway
IC>.vPf:! life today
|.,v and, i n the
cost y(less ^ depreciation) 7nppeah
inclusion
|;
which
nations
>! major import¬
profits; in fact, the substitution
residential business-., apr
pears to be generally favorable. .6
after
cause'me-
the trade and industry of foreign
trade
^
of larger
'
^
*
.
of®
;.
on
6.7%
arch
7 stability
by recent earnings figures for this
and other companies that loss of
such business has had little effect
^
an exv? w
^
.
the British Loan Agreement has become: the keystone to
prospectus. However, it has
been rather widely demonstrated
fairly high (nearly'
,
What I wish.to do itf to. present the basic reasons that
the
earnings,
about in line with ratios for other
electric utilities^ adjusted for cur¬
-V
Earned
,
company
amount
and reflects a
yield of nearly. 4.5%. The pricer
earnings ratio would appear to be
Fol-
the
are
j
"
.
! The
current
made
was
present" trends, " 1946 earnings
be in the neighborhood of $4
share or better.
Accordingly, the retail offering
price of 53% would be equivalent
to about 13.4 times the estimated
Unfortu¬
---
war).
a
1938-45, for the 12 months ended
March 31,1946 and for the quarter
vended
program Of moder n.i zing.the
transit lines (interrupted by th0
may
on
page five a summary of the pro
forma earnings for calendar years
,
Loan—Keystone to
Worid Tiade Stability
contributed
service
seventh
.
:
Thursday; May 30, 1946
THE COMMERCIAL & FINANCIAL CHRONICLE
2922'
a
independent. states
mechanism
defense
most
entirely
al¬
due
the
distressing;
economic condition they are fac¬
ing as a result of the war.
to
"
White, Weld Chicago
^ earnings by four. However, it ap- sjhowed- the„ division) of -qperatih.
pears fair to estimate, that, based .fncome(before
income
taxes)
Branch Ucder Meers
.^^vWe^i^.|M^:thoughi':A Tittld
further
-
CHICAGO—White, Weld & Co.,
a
leading investment hanking nnd
brokerage firm with offices in thi$
Southwestern Public Service
announce^
and abroad,
the opening of
country
Common
Southwestern Electric Service
a
Common
fice §
<-■
-'
*•
i
Chicago Of¬
at
'
Common
'
»
-
Meers
Puget Sound Power & Light
Common
as
o m-
released
ESTABLISHED. 1879
.
.
-
■
^
April
has
'
5.
with
<
1936.
Common
-
1
-
Common
-
*
x
,
Empire District Electric
>4\
,
$2.80; & $5 Preferreds
„
'
,
.
Common-
r
Iowa Public Service
~
Common
Missouri Utilities
7
Sioux
Common '
.
<■
Mobile Gas Service
7,
Common
Texas Public Service
-
*:
^Nassau & SufFoik Lighting
,
City Gas & Elect.*
,7% Preferred
Commen,
/Vv):/!?
United Public Utilities
-7 All Issues
,
National Gas & Electric
Western Light & Telephone
Common
*Prospectus Available
to
Dealers
and
Bankers
only
6. A. Saxton & Co., Inc.
70 Pine Street, New York 5, N. Y.
_
^ WHitehall 4-4970
,
Teletype NY 1-609
is
of the
graduate
a
]
University of Illinois.
\
Puget Sound Pwr. & Lt.
Meers
Mr.
Henry W. Meers
Inc.; for five years!
Stuart & Co.i
r
Public Service Co. of Ind.
Common
- -
he was..
Halsey,
with
Pennsylvania Edison
Mr.
Meers
holds
flying license,
of
is
University
Club,
Saddle
commercial
a
also
member
a
Economic
Club,
Exmoor
Cycle,
&
Country Club and the Longmeadow Hunt Club of Northbrook,
r
White, Weld & Co. was one of
the
few American firms to
their
office open
London
World War II.
50 years ngo^
The firm,
keep
during
Federal Water & Gas Common
Midland Realization Common
.
Stock
York
Go.
(Special to Trie
CHICAGO,
Veneklasen
Financial
•
has
be-,
we may
nation, trying to
page
on
2966)
•
-;V
(
—
espousing his views was one thing
no one ever questioned. It was a c
1913
and
point;i^eat^,over and/oyer by/::
known
Republicans and Democrats alike /;
as Senators, in a 21 minute session V
father
was
the
as
in
Senate
age, it was
pointed out by
the Associated
Press
27,
on
May
-although
his 26 years as
Senator
was
Carter
"
Glasa
1
■
Kenneth D. McKellar, of Tennes¬
Chronicie)
become
He
in the
and
associ/
135
was pre¬
Chicago Ordnance District,
prior
thereto
of
partment
for
the
the
was! assistant
investment
Chicago
:!
yvas
stated: /
^
There
fraud.
and
tense
unable
de¬
office
"
/
policies and said
New Deal's fiscal
vigorously. He also opposed a
third term for Mr. Roosevelt.
:
despite
their/ differences^
Mr. Roosevelt maintained a warm;
affection for the man
he once
t
e r m e
rebel."
the
d
r
Glass's
•
sincerity
^
in
to serve in this
ever
It
added
was
body."
:
"Senator
that
Glass had been so ill that he was
since
to: appear in the Senate
June, 1942. Because of this
John Locke Green, a
last year
vacant
to
and
called to
Virginia Re¬
unsuccessfully
have his seat declared
sought
publican,
a
name
special
a
election
successor.
Vir¬
threw the suit out and
Supreme Court declined to
ginia courts
the
•
.
Senator
"unreconstructed
;
1
7
:
was
Democrat, of New York, said: "He
one of the foremost figures
strongly
with President Roosevelt over the
so
§
sham in his soul."
public at large, however;
was probably better
known for pungent speeches in
political battles and in Congresssional debate. He differed
£
long-time friend: ''He instinctively
turned away from all false pre¬
was
But,
;
.
dean
was
of the
t
,
Re¬
System.
serve
He
today, spoke in sorrow of their
colleague's death,
• : *
'
Senator Harry
Byrd, Democrat of Virginia, announcing his
colleague's death, said: "His character, carved out of unblemished
granite, was composed of truth.
and
that
loyalty and sincerity
hates deceit and detests a lie," ! :
;
S e n a tor Walter F. George,
Democrat, of Georgia, said of his
the
of
Federal
To the
ated with Boettcher and Co.,
manager
.
don't
we
Dies-Spsnsored Federal Reserve Act
Senator Glass
ILL.—Herman W.
of Fenner & Beane.
-
If
hermit
(Continued
;
Reserve Act of
it
Staff of Boelfcher
Direct Wire to Chicago
v-v'
a
-
29 BROADWAY, NEW YORK 6, N. Y.
are we
free
Exchange
viously with the War Department
&
bluntly,
third group
come
founded outranked in service by Senators
member of the
a
So. La Salle Street.
Gilbert J. Postley
going to let this
abandon the policy of
enterprise and open competi¬
tion and become state trading na¬
tions or are we going to take h
smart gamble
and4 back our own
future by advancing funds that
may tide them oyer their difficult
period and permit them to play ?:
the game under the rules we ad¬
it
i
and see, and Arthur Capper, of Kansas. % Senator Arthur H, Vandenberg,
The public career of Senator Glass Republican, of Michigan,, .called
the Chicago Board of Trade and
of a half-century not only
in¬ Senator Glass "one of the great
is also one of the leading under¬
cluded Congressional service but men of this age "* - and Senator
writers of investment securities. I that! of the :office of ^Secretary of Wallace H. White, of Maine, Re¬
the
Treasury
under
President publican Leader, said: "He fought
Wilson. In the Associated Press always gallantly for the right." ?!
Senator 7 Robert
accounts from Washington May 27
F, Wagner,
New
is
Hi Veneklasen Joins
American Gas & Power Common
Central Public Util.'5Hs, 1952
with
30) at Lynchburg,. Va. The
Senator, spon¬
sored the Fed-
Previ¬
ously
AH Issues
Central Arizona Lt. & Pwr.*
in /competition
am
AVashmgton,, The Senat(>r, who was 88 '.years'^ofiage^died in his.sleep»
shortly before 3 a.m. The funeral service will be held today (May |
ley & Co. since
'•»?r
than
I
ately after convening, at 11 a.m. on May 28, on which day the death. ;
oL the Senator occurred in his tapartment at the Mayflower Hotel in/ 7
as¬
Harriman Rip¬
Northeastern Water
made under
citizen
American
an
)".v In tribute to the late Senator Carter Glass, of Virginia, Capitol ;
flags were flowered to half-mast and the Senate adjourned immedi- ^
He
-
been
sociated
Arkansas-Missouri Power*
rather
Sen. Glass
r:
4
,
are
tatives, May 23,1946. •*'
from the Navy ;
Paine, Webber, Jackson & tens
business contacts
rules with which we are familiar
As
extremely troubled about the fu¬
ture of free enterprise.
To put
the Banking and Currency Com¬ here to.
mander Meers !
was
!%yident
qiir own economy :WiU niaki
the best progress when our foreign
teat
Troubled A-houi Future of Prcd
Man- )
C
ager.
v
become
mittee of the House of Represen¬
Street, under
Henry
W.
•
must
% fStatement of Mr, Dewey before
231;
South La Saller
Texas Public Service
it
.
review the case,
...
:
'
'
t
iVolume 163
Nurhber 44,94
THE COMMERCIAL & FINANCIAL CHRONICLE
or
neW powers
2923
to' carry out n long range program of debt
man^
W. W, Fanning Joins Staff
Of Stifel, Nicolaus Co.
igemeiht interest rates will continue low and the pattern from 7/$%
ffOur
Reporter
Governments"
on
or
in
By JOHN T. CHIPPENDALE, JR.
„
will most likely be
rates, low because of the large debt and heavy debt burden..
.
.
.
.
signs appear that the market is being cleaned
as
up.
FOR
SALE.
SUCH
The market should be watched carefully because not only is
** a buying range,, but there arc; indications that in the not too
'distant future the (technical condition will be
rising trend will again be in evidence,.
i
OR AS AN OFFER TO BUY, OR AS A
SECURITIES.
*
THE OFFERING
with Francis, Bro.
improved that
so<
IS
MADEJ ONLY BY
MEANS
'
*
'
'
,
THESE SECURITIES
'
.
/
OF THE PROSPECTUS.
'
r
;
;
„
-
-
'
,
v
,
-
1
1
•
.
-
.
New issue..
a
.
156,300 shares
The Ohio Public Service Company
,.
securities by the commercial banks.
<,,
3.90% CUMULATIVE PREFERRED STOCK
BUT
The statements by Chairman Eccles of the
Federal Reserve Board
*
.
SOLICITATION OF AN OFFER TO BUY. ANY OF
-
.
thesp obliga*
Nevertheless as these regulations are more clearly under¬
stood; it is believed that there will be greater trading in,these
i
in the past was
& Co..
■'
'
"
j
The ruling by the
monetary authorities to allow commercial
banks to buy and sell the
ineligible bonds for customers, has not yet
i esulte.d in
top much activity by the deposit banks;
in,
tipns.,.
Stifel, Nicolaus & Co., Inc.,
Broadway. Mr. Fanning
314 North
BE CQNSTRUED.AS; AN QFFERFNG OF
TH.IS l?i UNDER NO CIRCUMSTANCES TO
.
buying
.
with
.
Y
-,
Chronicls)
,
.
.
.
Financial
LOUIS, MO. — Willis Wood
Fanning has become associated
change in the present policy of keeping
no
Ths
to
ST.
Although there have been considerable discussion and state¬
sizable amounts of weak
holdings have passed into strong hands.
A' good,
trading market is looked for with large commitments to be
made if prices should,
show signs of weakening much from, curren.
levels...
Non-bank investors are reported, to be
ready to do vigor¬
ous
(Special
///;/.T;;
ments made to support the cause of higher interest rates, there
The Government bond market is still in the process of digesting
speculative holdings and this operation i& expected to continue for a
short period,
although some let-up in selling is anticipated after
June 8,.
Despite, cautious, selective buying it is reported that
V
.
certificates to 2V2% for long-term obligations is still very much
style, .•>>;•
par value $10q per stfar£
and
President Sproul of the Federal Reserve Bank of New York
indicate that the monetary authorities would like to take some action
to- limit commercial bank
holdings of long-term Government ^ecur-?
ities, if it can be done without increasing interest rates,
; Such a
.
policy would prevent further declines in yields of long-term bank
eligibles.
No doubt Federal Will continue to decrease excess
reserves so that tho deposit banks will not have
surplus-funds, to put
.
.
Price
.
in the market..
.
$102,625 per Shar^
ACCRUED DIVIDENDS FROJV1 APRIL 1, 1946.
PLUS
,
However, this does not
mean (that the commercial banks will
sell certificates and notes to buy the longer
they have done in the past.
..
It seems as though
policy to free the monetary authorities "from the, strait-jacket
hot
continue
maturities
a
to
as
.
of the pattern of rates" would be most welcome.
<
This, however, would
mean a rise in
COPIES OP THE PROSPECTUS MAY BE OBTAIN ED* FROM ONLY SUCH OF THE UNDER.
..
.
SIGNED AS MAY LEGALLY OFFER THESE SECURITIES IN COMPLIANCE WITH
the rates of short-terms to
THE SECURITIES LAWS OF THE
;
RESPECTIVE STATES.
make them so attractive that the
deposit institutions would not be
buyers of the longer-term obligations, v,. Such a change would also
add to the Jpcome Of commercial
banks, and the money managers
certainly do not want this to happen.
Mellon Securities Corporation
'
DECREASING DEPOSITS
'v
.
Continued retirement of debt by the Government will, decrease
deposits as. well as holdings of Government securities by the deposit
institutions.
.
.
t|he desired results,.
.
'<■ f.'"
'
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Blyth B: Co.f Inc.
.
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,
W. E. Hutton 8t Co.
]\
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'k
;
McDonald & Company
schqellkopf, hutton & pomeroy, inc.
blair 6C com inc.
.
.
Dick &
Merle-Smith
Co.
Drexel
Hawley, Shepard & Co.
'
<
.
J
j
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;^
L. F. Rothschild 8( Co.
•!.
"V.
Phelps, Fejnn Si Co*,
STATUTORY AUTHORITY EXPEQTEH
\
v
m
Salomon Bros. & Hutzler
short-term obligations, and the ones
that the monetary authorities want these' institutions to hold or have
more of.... The long-term obligations are retired
only at call dates,
and then, there are also shortrterm securities.
Legislation to
limit holdings of the longer maturities of Government
obligations by
the; commercial banks means that persuasion will probably not give
are
.
I
,1
s
*
Bear, Stearns & Co.
This debt reduction, however, is eliminating prin¬
.
\
'
,
,
;
cipally certificates, which
'
*
"s
/ Legislation to. give the money Managers greater power oyer the
banking system is very definitely in (the making.,
Whether it will
during? 1946, is a,matter of conjecture* with Chairman Eccles, of
.
MAY 29,1946
,
;;'
.
,
;;
•
Wertheim 8c Co.
.
,:
v
.
come
the. Federal Reserve Board indicating that - these- new> controls would
iiot be necessary until the close
offhe calendar year;. .. If
Federal the Treasury would;
powers should be given to
have to. give its consent to
these
new
doubt
large dobt - and heavy
no
thern,. . i
With a
service charges* there would have fa be a ra^er complete
change
in the Government's attitude if
anything would be done to increase;
interest rates.
,
<
....
.
.
THIS IS UNDER NO
«
Inability to control sales of bank eligible securities, by hon-bauk
boiders to commercial hauks indicates that the Chairman* of the Fedh
<erai Reserve Board-is .not in favor iof offering long-term restricted
securities.
fcCGLES*
NEW ISSUE
AS AN OFFERING OF THESE SECURITIES
I
,
$32,000,000
...
SUGGESTION
YHEsOHIO PUBLIC SERVICE COMPANY
* ;
Eccles talked of non-marketablesecurities'fo;t)9 made: avail¬
able by the- Treasury to tap the savings of individuals and
corpora¬
tions, with the funds so realized to, be used to. retire hank-held debt
^vith its inflationary potentialities. .}, . A; non-marketable tap. issue,
similar to savings bonds, open to institutions, would
probably mean
less competition for the, outstanding bonds at rising prices. ;
Yfoujd the money obtained from these sources he used, to retire shortterm debt, or with the necessary new
powers, would it be used to.
compel the banks to. sell long-term obligations- to the. Central
\
.
CIRCUMSTANCE? TO BE CONSTRUED
-FOR SALE,-OR AS AN OFFER TO BUY, OR AS A SOLICITATION OF AN OFFER TO
BUY, ANY OF
SUCH SECURITIES. THE OFFERING IS MADE ONLY BY MEANS OF
THE PROSPECTUS.
.
}
■
-
First mortgage bonds, 234% Series due
^•8
1976
.
banks?...
.;t:'
.
'"'../-
"
1,1976?ttf|§
DUE JUNE
v
es
.
"
-'
dated june 1,1946
r
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I
,,
What kind of,
a
s,
'
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,
1
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'
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" 1 '
lk
'
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*
rate would; thes# proposed noncarry; fn order to attract- individual
buyers?
The real inflationary potentialities
today lie* withI
these holders of bank deposits .and if threy- should become
seared ~
hpd put them to work, their not even higher interest rates would
coupon
marketable bonds have
.
curb such
.
to
-
PRICE
1Q1% AND ACCRUED INTEREST
.
a
development.
Tr:
.
,
j
.
care
.
of the floating supply of bonds
now
$
LEGALLY OFFER THESE SECURITIES IN COM,PLIANQS WITH^,
THE SECURITIES LAWS OF THE RESPECTIVE STATES.
'
,Tm
:
m
■
j,.
Mellon Securities Corporation
in weak
:c- •
T?/-r5
r Of
course, if the market, should turn very
strong and the
Restricted obligations should move up sharply : near their old
highs, (the money managers might change their mind and offer'
bonds,
might even be
even
some
without the
desired
powers.
.
.
.
.
Salomon
Bros. qt
the need
Hutzler;
Dick & Merle-Smith
'-4:'p\:.ry;
>:
'"'ttjj
—
Drexel & Co.
vi,'
w. E.
«
v
lv
-
•
•
'-C
t
<^'v
Hutton & Co.
-«r
<11
%i
^
,
j:'
>
.
RATE PATTERN TO CONTINUE
on
•'..v
;
,
.
Despite all the statements by the money managers
Blyth & Co., Inc.
TherePJ
selling by Government Trust accounts.
It is believed by some monetary experts that if the
yield on the
longest-term restricted bonds should go below a 2.25% basis there
would be action by the monetary authorities to prevent a further de-,
cline in yields,
-
V
•
-
new
SIGNED AS MAY
.
-
new
S4
COPIES OF THE PROSPECTUS MAY BE OBTAINED FRQM ONLY SUCH
OJ? TH,5 UNDER¬
!
:
It seems as though there will be no new issues of
ineligible ob¬
ligations until there: is greater,control over the' buyers of bank
eligible securities, if one can take for full value the statement of
Chairman Eccles of the Federal Reserve Board.
If Mr. Eccles sees
up. need for pew banking legislation until the end of
1946, then it
could be reasoned that there wilt probably be no new issues of the
restricted bonds until late in the year,,.. This would give the market
hands....
s
:
.
NO NEW ISSUES LIKELY
ample time to take
&
<
Graham, Parsons & Co.
•I;?.
'1'—H
)'
/{,
f
-•W'Tf
''i
1<U'N '
*
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/ '
!"
•-*
-
,*
'
McDonald & Company
!"•
^
n
'
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r
'
'
»,
V*4 "
t
'
*fc
1
-
f:;•^r;v" ■'
Hawley, Shepard & Co. 's
Putnam & Co.
-
'
PC'-
»'
Col^t
Phelps, Fenn 8j
-
*'
•
»
*.
*
-•«-»-
.
i
Baker, Weeks & Harden^
V
'
..'
■
•
•
v-v..;
^
^T/- .|E^
r
Reynolds &
Co?2^
THE COMMERCIAL & FINANCIAL CHRONICLE
2924
ment in
this ratio (between cor¬
poration dividends and earnings).
April 30,
cline,
the
uncertainties
Saying1
Research £!orp.-K'The action of the stock
National Securities &
♦market
the
in
year
from V-E Day to last week has reflected the
prosperity of companies in the consumer goods lines and also the
'handicaps of manufacturers of durable goods. Stocks Of the latter
generally appear under-priced and should soon begin to benefit from
an
improvement: in labor conditions and a more favorable price
structure.';
Calvin
believe
H '
®
Bullock
that
the
—-
"Because
basic
the money market
factors
point to
of
period of gradual firming inter¬
,
three yeaf£,
consid¬
ering the timing of an investment
in petroleum stocks it is well not
to attempt to await positive in¬
dications of a price advance for
crude.
It should ,be sufficient
gressively tighter banking posi¬
tion, and because we believe that
recent developments are hopeful
est rates."
as
Distributors Group—"In
a pro¬
signs; of a- revision of official
monetary policies, we believe that
we are at the beginning of a long
—*
ity lasting as long
possibly more."
we
.
.
.
justification for immediate pur¬
chase of carefully selected petro¬
leum stocks to know that at pres*
of war¬
desire of
Net
This
com¬
Average.
applicable
stock at the end
period amounted to $28,-
Mutual
Literature
Fund
Distributors G
r ou p
—
Revised
booklet, "Group Investing in Un¬
dervalued
Securities";
Revised
folder on Low Priced Shares,
Securities
National
Corp.
tional
vised
Trust
Fund
folder
.
on
Fund
Trust
Shares
—
,
,
bocker Fund,"
.
.
.
,
Research
of the
Survey;
First
Na¬
Re¬
Mutual
Knickerbocker
.
Revised
information
ahd
&
issues
May
—
folder,
about
.
.
"Facts
Knicker¬
W. L. Morgan
^5 Co.—New booklet, "From Shirt
Sleeves to Shirt Sleeves in Three
this
valued
Generations."
v
ruling."
their present earn¬
foregoing analysis of the forces
Hugh W. Long & Co.—"Steel
i'
Dividends
how determining business activity ing power; that there appears no
industry facts are changing for.
prospect of a decline in petroleum
suggests fairly prompt recovery,
the better.
Prices for steel
Union Trusteed Funds, Inc. —
followed by a period of prosper- prices; that the financial position shares do not
yet reflect improved The
of the leading companies is ex¬
following quarterly dividends
steel company finances."
cellent; and that present prices
payable June 20, 1946 to stock of
Distributors Group — "Because
for their stocks are in reasonable
prices they are fairly
ant
Broad Street Sales Corp.—"The
...
with respect to
•
.
.
.
Hugh W. Long & Co.—"Prices
always shared generously in pe¬
riods of general prosperity. Steel
of
STOCK
earnings.
The future value of securities
.
.
future
estimated
times
.
cannot be established with
matical
precision
based
mathe¬
when
historical facts.
on
factual evidence
.
even
v
But the
does encour¬
.
age
an
optimistic
viewpoint
toward oil industry securities.".
Union Bond Fund A
a PROSPECTUS ON REQUEST FROM
YOUR INVESTMENT DEALER OR
therefore, always Union Bond Fund B
participated in rising-stock mar¬ Union Bond Fund C
Their advance usually be4
kets.
have advanced—then
and farther.
.
.
moves
Union Common Stock Fund
faster
.09
n e
^DISTRIBUTORS GROUP; INCORPORATED
*
4i Wall Street
New York 3, N. Y.
investor
the
One
of the
"What
can
63%
shrunk
his short period of
be done to halt these
First, it is essential that
program
be
brought into line with presentlosses?
the
TIO
.
investment
securities
Securities Series
in
:
count may
taken
as
a
individual
The
conditions.
day
an v
investment
ac¬
be perfectly sound, but
whole they may not
form the type of program.which
the investor needs under the dif¬
ficult investment conditions exist¬
ing, today."
LOW-PRICED
STOCK
Wellington Fund—"No one suc¬
with¬
Shares
ceeds in business or finance
out
Priced at Market
|
Prospectus upon request from
lour
investment dealer ot
4
:
NATIONAL SECURITIES &
RESEARCH CORPORATION
plan; nor should you' invest
a
securities without an in¬
vestment program. Only after you
have planned your program can
you properly select the type of
securities you should buy."
in
.
any
Lord
is
Abbett—"There
now
good reason to expect an improve-.
120 BROADWAY
New York 5, N, Y.
(2) In the same
I
'3'
'
,
:/*' r:
•;
K, \
1928
'. '.
Ir K--K v-.
:
report to Congress. That
is expected. ip another
report
week
or
two.
Because of the com¬
plicated nature of the problem
and the
movement ''is
pushing?
thd
up
and will continue to do so
as long as there is a seller's mar¬
ket for goods,
i
.
_
Professor
that a
general rise in prices for several
years is almost inevitable.
The
essential problem, as he sees it, isj
not how to prevent the rise in
prices, but how to keep the rise
moderate and to keep it orderly
and
free from
speculative ex¬
opinion
Slichter, all of this
of
means
cesses.
period of generally rising
prices, it is important to have
some
portion of the investment
account in classes of securities
a
Management
f
Kin
«•
Consecutive
Quarterly Dividend
repori'will
go ahjK further and
recommendations
seems.^to be? definitely pre¬
dictably at this writing, because
make"
of
a
specific
certain amount of vacillation
among
the various
individuals
who must reach an agreement. *
One hears on the one hand that
the report will not make specific
recommendations to Congress; blit
;
merely let the facts presented do
so 'by implication.
On the other
hand, some persons fairly close tc
the scene think that the report
ask some discretionary au¬
thority for the Board, in consultation with the Treasury Depart¬
ment, to require commercial banks
may
hold
to
not
than
more
Th#
liave
Directors
66th consecutive
distribution
share
is
from, pour
map
be obtained
local investment tlealer
The Keystone
Abbett
percentage
dividend
Company
,
(
'
?? K
,
-
1946
June
~
the perform¬
Composite Down 1.0 %;
American
Business
President
PHILADELPHIA 7,
PA.
—Up
Shares
realized securi¬
WALTER L. MORGAN
-KKK:.V
Bradley & Co.,
tin & Coy and H. H.
Whaples,
Whaples, Viering & Co., are also
on
the board, having previously
been elected for terms which have
not
expired.
Ernest C. MacLean With
Sutro & Co. in L. A.
LOS
ANGELES,
4-
CALIF.
Ernest C. McLean has become
sociated
with
Sutro
Nuys Building. He
been
with
Prior
he
was
with
was
Hoffman
Wal-
Goodwin
? f^
&
H. R. Baker & Co.
ston,
Co., Van
recently
Securities, Inc.
Atlas
thereto
&
as¬
and
"
on
Inflation
Believes relations between
are
that the Federal
cer¬
of
Such a
Board
from
the
time
by the
time, after
amount
to
come
out with
a con¬
for drastic action,
program
it would
carefully consult the re¬
banks and the Federal Ad¬
visory Council, but no such farserve
reaching consultations are
lieved to have occurred.
doubt I the
Without
be¬
Board
is
keeping the Treasury Department
advised on the nature of its report
Congress, but the responsibility
the Board's
alone, and it is therefore thought
unlikely vthat the Board has asked
the Treasury for its suggestions.
to
for that report will be
Relations between the Board and
the Treasury are now much bet¬
ter than they used td be.
When
the Board decided to eliminate re¬
cently? the differential in the dis¬
count Tate
for
ernment paper,
short-term
Gov¬
the Treasury De¬
partment was advised beforehand
in
Writing, The night of the
Board's
of the
announcement
Secretary
Treasury Vinson put out a
statement that the Board's action
came
as
no
met with his
it
is
surprise, to him and
approval.
Actually
believed
that
the
statement
did
surprise Mr. Vinson, for the
reason
that, being busy with so
many important problems, he had
not read the correspondence from
the-
However, the ♦ only
which the Secretary had
Board.
point
on
expressed an interest was whether
the elimination of the differential
would
consultation with the Treasury.
There
are
several
increase the cost of Treas¬
reasons
.,
Dow-Jones
19,;
/••V-vV.V-'.v-
5
>
•; ' .'"-V" '■%■■■
To May 10
;
Dow-Jones Industrials Up
.06%
Fund
from net
M.
-
t
Affiliated
Boston 9, Mail.
29,
variation of
L
,
:
ordinary net income and
share represents a special
from
10c per
or
June
shows
share of this dividend
per
ties profits.
of Boston *4
50 Congrett Street,
is
payable
stockholders of record
1946. 10c
Prospectus
declaredtho
quarterly dividend
shared of Welling¬
Fund. This dividend of 20c per
ton
to
on
■
,
,
a
their bond
portfolios in the form of longtain
requirement would be subject to
current issue of Abstracts
.
:
Edward
ury financng.
When he was in¬
for formed that it would not, the Sec¬
ance
of several of its funds in
supposing that the Board's report retary said he would have no ob¬
comparison with the Dow-Jones to Congress will not result in any jection. Actually, the Secretary's
Averages for a recent period. Here drastic changes this year. For one press release after the Board's an¬
are the figures:
thing. Congress is working toward nouncement was regarded within
Change
adjournment, probably in August, the Board as very satisfactory.
O '
"
K>:VK VKKK
Prom Feb, 2 -V j
•
Lord
66th
a
ley,
New Haven.?
In addition to the above gover¬
nors, George L. Austin, G. L. Aus¬
crete
annual
period, individ¬
Professional Investment
INCORPORATED
Cheatham; one-year term, Elisha
Wattles, Coffin & Burr, Inc.;
non-resident, E. Holbrook Brad¬
Board would
term Government bonds.
r
term,
Thomas
C.
tion and what. to do about it will
that can show capital growth and
increased income."
:
year
term,
one-year
take the form of a section of its
wages
"In
Co.;
WASHINGTON, D. C., May 29—Indications
saved $124 billions in
the
-
Reserve Board's report to the House Banking and Currency Com¬
on the inflationary -situa-#
'.. ??.. ?■
:. ; ?;;
■.. ■>.
difficulty of suggesting a
remedy free of "bugs," the Board
ment.- securities;
:
has taken longer- than expected
(3) The backlog of deferred der- in making up its mind on the sub¬
mand for goods amounts to at
ject.
For one thing, the annual
least $50 billions on,top of cur 4 report will review the present
rent demands;
monetary situation in the light of
V
(4) A powerful and aggressive all the effects of the war. Whether
"In
Three
—
mittee.
cash, bank deposits and Govern¬
labor,
Governors
Charles E. Bayliss, Jr., Putnam &
specific recommendations will be made.
Treasury improved.
.
uals have
Weeks; Teasurer, Edward F. Dustin, Day, Stoddard & Williams.
FRB and
(1) The volume of money has
nearly trebled since 1939 (from
$64 billions to '$177 billions);
in
16 years.
the
announces
following officers
coming year
beginning July 1:
_• 1
\ )
President, Charles W. Gould,
First Boston Corp.;
Vice-Presi¬
dent, Willard A. Snow, Jr., Lee
Higginson Corp.; Secretary, Hen¬
ry
H, Sutphin, Hornblower &
and governors for the
Washington observer says report will review present monetary
situation in tight of all the effects of wkr, but indications are that no
C o.—"Professor
Co,—"If the investor Slichter of Harvard University-4
placed equal amounts in one of the country's leading econ¬
Government bonds, in corporate omists---in -addressing the United
bonds and in savings banks, he States Chamber of Commerce on
would hav^ received an income, April 30, last, pointed: out that
after taxes, of $6,424 on capital of there are several potent forces
$150,000. The same investment in working toward higher prices for
1945
would ;have given him a commodities and goods:
of
Hartford
of the
Forthcoming FRB Report
■
to
of
election
Steel stocks ap¬
.
look."
e y s
.12
,29
pear
substantially
undervalued
in relation to their earnings out¬
K
.22
Union Preferred Stock Fund
other types of stocks
after
gins
1929
spendable inco.me of $2,370, after
taxes and adjustment for the rise
in cost of living. The real income
$0.20
have,
Keystone
in
Share
Fund
•
stocks
Club
Per
dustry the steel companies have
leading oil companies' 'shares
m the past bull markets averaged
18 times earnings.
Today these
issues are selling at a mere 10
RAILROAD
record June 10.
steel is basic to practically all in-?
relationship to asset value."
HARTFORD, CONN.—The Bond
of the fund
214,630.
Revenue Code provides an addi¬
tional basis for expecting higher
dividend ratios. This section, im¬
posing a tax of as much $.s 35%
on
undistributed
net
earnings
when they "are permitted to ac¬
cumulate beyond the reasonable
needs of the business," was not
strictly applied during the war*
Recent
Washington
dispatches,
however, strongly indicate that
the IL S. Treasury is planning
of
share
per
gain of 11% for the
a
common
of the
$25,000,000,000 to $51,000,000,000 during these years.
the Internal
"Section 102 of
enforcement
assets
td the
from
active
with
pares
in¬
net
a
value
Dow-Jones r? Composite
corporation directors to increase
working capital for: reconversion
needs and the financing of post¬
war sales volumes, have bben re¬
moved entirely, or in substantial
degree.
Net current assets rose
moire
asset
of 28%' for the period.
Two important reasons for its de¬
time conditions and the
1946 reveals
in
crease
Thursday, May 30, 1946
.
?-\:.'
Up
4.0%
;
2.1%
impor¬
Secondly,
while the inflation situation is of
and
meanwhile-has
many
tant bills to act upon.
great
importance
to
the
nation,
monetary causes thereof are
not
increasing, but diminishing.
The war bond drives have ended,
the
i
has commenced to
Fund
Up
9.6% pay off some of the debt, which
process results in a diminution of
Affiliated Fund
commercial bank reserves, and the
trend of Government bond prices
The semi-annual report of Af¬
filiated Fund for the period ended has been reversed.
Before the
Union Common Stock
...»
_
the
Treasury
'Kin view of the unlikelihood of
Congressional action this year be¬
cause of the pre-election adjourn¬
ment, the Board, even if it had def¬
inite recommendations for legis¬
lation,
would probably refrain
from making them public at this
time, since many changes in the
situation might cccur before the
next Congress could get around
to
doing
something
about them.
(Continued on page 2962)
;
Volume 163
Number 4494
THE
firsl Field Day Since Beginning of Wsr
■f
4V:'
Draws 500 Members of New York Bond Qtob
"■
■■
y?\/
; i
77v;..
*'*■' •*•
77/ '»
i>:
••*,,7?/
"BawIStreetJournar'reappearsafterfiveyearsandi sdistributed
r
to ;lho«e in attendance.\ H. K«
-
Halligan winner of rex-Presidents* X
in golf tourney. Water carnival^
fashionshow areotherevents.
cup
Essexptials of Rrice Stabilizatiaii
(Continued from page 2917) ! j "the Federal-Treasury "sells its ob¬
time: deposits," and a quarter in ligations to nonbank investors, no
savings bonds- These types, of as¬ increase in bank deposits results,
sets, .whjle all;very liquid, repre¬ since the funds thus acquired and
r
somewhat
sent
stock exchange,: dinner and
differing
degrees
spent
from the accounts of the
buyers
of the securities. When
Treasury
Supply,; j H, obligations are sold to
commer¬
"The potential, meaning of this cial banks; however, the banks set
volume of liquid assets with re¬ up credits qn their books in
favor!
spect to prices depends on a num¬ of the Government, As the funds
ber of factors, one of the most im¬ are
spent, they become merged!
portant of which is the prospective with the general volume of bankamount of goods and services to deposits and remain so
as
long
be
bought,.and
sold.
A rough
the
of
income.
very
of
•
beginning of the
attended
A.
by
and
was
than
500
war
more
members.
.
had to- find other
men
means
to reach the grounds. Most of
them drove out in their own cars
but many went by special busses
which
Willard
K. Stephenson
F.
club
the
ticipated in
be in the next few years
members
par¬
another of the
one or
athletic games which ran through
the morning and afternoon.
Special
included
entertainment
of
acts
a
water carnival featur¬
were
provided for the trip. ing a half-hour demonstration of
fancy diving by professionals and
a
swimming ballet in the after¬
number of the men could not get noon and a fashion show with
out to the club in the
morning; models representing various Wall
the great majority of them were Street, firms after the steak dinner
there in time for lunch at noon.
in the evening. Other events and
The program lasted from 8 a.m.
to 11 p.m., and though a large
\
The golf tournament in\ which
nearly
half
of
all
the
persons
present took part was one of the
7 principal features of the Hay's
events. The
competition
and aroused
Howard
was
lively
considerable interest.
features were, the traditional Bond
Club Stock
Halligan, Cyrus J.
Xawrence & Sons, who was the
Class A winner with
a
gross score
games.
C winner.
comercial^bahks to
their
loans
expand
and -investments by
several,, times the amount of the
new
f
K
r
I
reserves.
V77'
0
'
1. V '
J*' 5.*'X; % X,:\X 'A" \\
"The most essential part of any
long-term stabilization
effective
in-
is to bring the sixteenyear series of Treasury deficits to
an end and, if
possible, create a
substantial surplus; available: for
program
at an annual rate of $150
billion. The present amount of de¬
,
,
b.-s7*7
:
*
•
'
*-7 .*■*
'.;,'7,; v^1.
"
XJ.:
cause
an
XXfilXy)
Banks
the
Hence; it is desirable that
years.
Treasury Borrowing From the
effort be made, to shift
sub¬
a
of the increase in the money
commercial banking system. When
would
& Co.;
of
withdrawing funds
market Kand
money
--
forcing the commercial banks
replenish
their
ducing* their
vestments.
reserves
loans and
-own
As
by
Journal,"jpub-
in this direction without
"A
somewhat
expedient
slower
would
be
seriously
but safer
to
refund
Treasury bills and certificates by
the issue of long-term securities
yielding interest at a high enough
rate to attract individual and cor¬
porate buyers. The
billion
:
of
bills
more
than $55
and certificates
"The principal objection to the
refunding - method 7 is • that
It
would increase the cost of
carry¬
consideration
less
so
debt. 7 While
is
than the
lished regularly by the Bond Club
monetary disorder that would re¬
sult from a continuation of the
'easy-money' policy of the past,
'The
time
has
come
for
Nathaniel
have
—
smaller
drawing on' bert
amounts
of
E. 7
Schwabacher,
partnership in the firm
6th.
.
Jr.
as
-
Glidden,
'
these
Compania Iitografica De la Habana S. A.
Glidden,
(Havana Lithographing Company)
Marks, Laurence M. Marks & Co.;
entertainment/ William
G. Laemmel, Chemical Bank &
afternoon
Kte^i|7.
Trust
Co. John A.
Straley of
Hugh W. Long & Co. was Editor
of the "Bawl Street Journal,"
Also
dinner
7,.
Anonymous in the
Co.; indoor sports, Austin Brown,
front page cartoon
Dean Witter & Co.;
refreshments,
Walter F. Blaine, Goldman, Sachs
&
Co.; publicity, William H.
-7;
7
($25.00 Par Value)
*
*
;
t "
Richard de la Chapelle, Shields &
of Alcoholics
19,419 Shares 7777
\6% Cumulative Convertible Preferred Stock
entertainment,
traders similar in its work to that
liquor field."
It also ran
on
a
the riyalry between
Chase Na¬
tional
Bank, New York, and the
Bank of America, San' Francisco,
in which the directors of the for¬
mer
are
shown
breaking
piggy
"big¬
large ad¬
a
bank to make their deposits
gest again." It carried
a
vertisement for Kaiser-Fraser
7 in' which the
cars
man
jare
saying, "See them be¬
fore you buy—we'd like to see
one ourselves, some day." In other
ways, too, the paper poked fun at
quoted
as
the stock and bond traders and at
7:- .rPrice $25.50 Per Share
Long, Jr., Doremus & Co.; tro¬
phies, George J. Leness, Merrill
Lynch, Pierce, Fenner and Beane
Softball, Robert L. Hatcher,.! Jr.,
;
vh*vt
.197,000 Shares
>
Chase
National
Bank;
Common Stock v ;
tennis,
Price $5.50 Per Share
Co.; horseshoe pitching,
Robert H. Craft,
.
(10^ Par Yalue)
Clifford A. Hipkins, Braun, Bosworth &
Guaranty Trust
Co.
'■
Lee M. Limbert of
Blyth & Co.,
Copies of the Prospectus
i: the
Inc. is President of the Bond Club.
undersigned
as may
be obtained within
may
any
State from such of
regularly distribute the Prospectus in such State.
their trade.
Tennis
was
also included in the
day's program and in the doubles
final, John Nickerson, John Nickerson
& Co., and Nathaniel F.
Glidden, Jr., Ranney
Water Col¬
lector Corp. of N.: Y., won, 6-4,
6-4, ' from Benjamin J. Buttenweiser, Kuhn Loeb & Co., and
Marvin L. Levy, Lehman Bros.
Prizes were gifts valued at $35
for the winners and at
runners-up.
Other
$25 for the
program were
events
on
Admit Rob!,
the
about forty
con¬
Kennedy
Allen &
<
Ih^'V,
change, will
on
June 10th admit
Morris
rlo
Exchange,
partnership in the firm.
Zinneman
partner
will
as
oi.
become
the
\
v'
'
; <v
'7 7;
-
y
Burr &
Kennedy, Jr., member
of the New York Stock
'i
-
1
Robert G.
r
'
of the New York Stock Curb Ex¬
horseshoe pitching, limited'
which attracted
Hirsch & Co.
Stanley Heller & Co., 30 Pine
Street, New York City, members
to general
XvXXS- X': XX
atheletic
Stanley Heller to
^
-V
}/Y
'
' V
^' ;V' '
;;
1
n
'
* T '*'
77''$ 'H-f'
.
*XvXX v-
- •
X;
•.'
•XX7'V
'
Ames, Emerich & Co., Inc.
May 28, 1946
Jacques Coe & Co.
m.
Emanuel, Deetjen & Co.
Company, Inc.
'
a
same
Company
X 7"'- '* *H 'e ~
r-.:-': ■ -"'Vi
v
to
of June
offering is made only by the Prospectus.
:
Morris & Co.; golf, Laurence M,
F.
dis¬
Schwabacher & Co* Admits
| SAN FRANCISCO, CALIF.
The "Bawl ^Street
day events, made its appearance
again and was distributed to the
club members as they arrived.
The eight-page newspaper cari¬
catured
prominent
Bond
Club
members
and ran
a
story on
"Speculators Pseudonymous,; an
organization for reformed stock
this
important, it is
lasting threat of
This advertisement is not, and is under no circumstances to be construed as, an offering of
securities for sale, or as an offer Jo buy, or as a solicitation -of an offer to, buy, any,
Journal," A. Glen Acheson, Lazard
Freres & Co.; Stock Exchange,
in connection with its annual field
in¬
practical matter,
however, not much could be done
a
'
The^Bawl Street
to
re¬
part of the debt -now held Schwabacher & Co., 600 Market
banks into the hands ^ of Street, members of the New York
nonbank investors, who would pay Stock Exchange, will
admit Al¬
their cash and deposits, and thus
Carroll
the
stantial
for the securities by.
in
-
important by the
most
governmental borrowing from the
Committee
effect
.
Willard, Reynolds & Co., were cothe
of
avowal of further
responsibility
deposits and currency is
for holding interest rates at ar¬
equal to nearly 81% of $125 bil¬ debt retirement.
s
bitrarily low levels and the adop¬
lion or 67% Of. $150 billion. It is
"It is not likely, however, that
tion of a credit
policy more in ac¬
equivalent to 31% of: a national debt retirement can proceed fast
cord with the long-term economic
income of $326 billion; a total enough -to, bring about; a great
needs of the nation "
that has hot been seriously sug¬ change in
monetary and banking
gested. * rX conditions over
.next
'few
mand
suppl^^^ recentfyeara has been
of
the
from
ing the public
1,'j
"Demonetizing" the National Debt
year
was
%
the
in the first quarter of this
come
given
the son & Co#
Christie Cup. Richard N. Rand,
Chairmen of the various sub¬
Hand & Co., with a gross of 87 committees were as follows: At¬
and a net of 57, was declared Class
tendance, Lee W. Carroll, John B.
tional,' Bank,
the national
shift
a
outstanding offer wide scope for
commercial banks in .the form of the partial 'demonetization' of
the
additional
reserves
that permit' public debl by this method. -
very
Kenneth Stephenson, Gold¬
Sachs & Co., and Frank A.
F.
man
77, was awarded the ex-Presidents* Cup. Arthur H. Searing, charge of the field day. The viceDrexel & Co., who was the Class chairmen were Robert E. Broome,
B winner with a gross of 68, re¬ Guaranty Trust Co., Thomas T.
ceived the Hamilton Candee Cup Coxon, Mellon Securities Corp.,
and Edward L.
Love, Chase Na~ and! Harold MacDougall, George-
estimates
merce
"By 7 far
Chairman
of
Reinhardt's
Heinrich
and
German Band, and various indoor
K.
'
Exchange, music • by
forty-piece
the Seventh Regiment
band
pansive effect is even greater, be¬
the funds thus injected into
the money market flow into the
uncertain; but some conservative
estimates, based on assumed con¬
ditions of approximately full em¬
ployment and a price level not far
from that now prevailing, place
the figure at approximately $125
billion. The Department of Com¬
is
Treasury obliga.bought by-the Federal
banks, the potential ex¬
cause
"What the national income may
softball game be¬
tween
two s pick-up
teams. j A1
Schacht, "Clown Prince of Base¬
ball," refereed the softball game.
"Theoretically, such
ownership could be accomplished
through the sale of Government
obligations • by - the Federal. Re¬
serve
banks, whieh would have
form
a
are
Reserve
7
a
testants, and
Most- of
Because of the railroad strike,
the
billion.
of the national income,
much
customers. When
andX currency tions
;
That
is,
the
amount of demand deposits and
currency was equal to about 31%
$26
was
as
credit
expansion as the mak¬
ing of loans by the banks to their
$83 billion, while the amount of
demandX-deposits
*,
That
mercial banks is
estimated at
was
.
•
is, the purchase; disturbing the level and structure
of Treasury obligations
by com-* of interest rates.
In 1929, a
active business, the
national
year
national income
the banks continue to hold the
as
securities.
of business is the amount of
ume
Frank
come
Increase ? in Money
measurement of this probable vol¬
Lee M. Limbert
the1 Government
bfvjiqm<e
;
The Bond Club -of Hew 'York •gathered -at the SleepyvHollow*
Country Club at Scarborough last Friday • for its twenty-second
annual field day. The
outing was
the first the club had hold since
the
by
liquid funds; available for spendingi ->r••••;
•'
Dempsey & Company
!.'! .Y;
&>/&#■
t: »
THE COMMERCIAL & FINANCIAL CHRONICLE
2926
":
substantially, above their
mand.deposits, for time deposits
This Week— Bank
business
of
and vthey will un¬
receive / their
share.
Finally, building activity is in¬
creasing and a further increase is
Trust's
de¬
to
of
■
-
be
expected
as
soon
short¬
as
building, materials*, have
beeri alleviated,. The demand for
ages; jot
.
Stocks
'V
/
Thiitsday, May 30, 1946
doubtedly
Apologies: In the May 16 issue
the
"Chronicle,"
Guaranty
"Safety
of
Dividend,"
posits and .earning assets they still, through a statistical-. error, ;; was
stand very neai/their historical shown as ^12, The correct.ratio
peaks established last December* is .1.59...
In
Despite; these declines
DEUSENi
VAN
A.
E.
high levels of May, 1945.
expansion "from $1,180,-
582,000 to $1,304,784,000.
Bank and Insurmice Stocks
By
and very
show an
■
mortgage loans will therefore un¬
doubtedly
rise
and
mortgage
loans made by banks operating
-
City bank stocks have declined
Since Dec. 31, 1945, New York
4.1%,
The average
measured by the American Banker Index.
as
of 17 leading bank stocks has been 4.8%, as shown
tabulation. Only one stock out of those listed
resisted the market decline arid showed a moderate gain, viz; Conti^
nental Bank & Trust Co.
The prices shown are the asked prices as
published in the New York "Times."
decline of a list
in the accompanying
;
3-31-46
-Asked Price-
Manhattan—
of
Bank
—
Bankers Trust
Chemical
& T
B.
Continental B. & T.~
48%
-22%
23
64%
41.46
0.90
2 40.58
0.78
55.39
1.14
»r!«.7.6
.
0.95
113.13
7.0
8.4
(Continued from page J2917).
.
22.94
4.7
>54.07
the United
States, insofar as they are bound
important bearing" on
1.00
+1.7
61 %
j
whole. The fate; more/it is quite possible that to¬
of the banks, economically and, ward the end of? the year the
politically speaking, is closely in¬ Treasury will offer long-term ob¬
to
ultimate investors
terwoven with ; that of the econ** ligations
omy of the entire country.
Eco¬ and will utilize the proceeds for
the country as a
nomic developments in
'
•
0.88
National
——
Guaranty Trust
Irving Trust —————First
■
.
—
1,880
2,895
1375
the purpose of j redeeming; shorty
term and other; naaturing; obliga¬
-+•10.3
1,339.73
*r+ 6.9
349.85
to have an
0.71
349
1.00
-
—
•
■
—
■
—
,
•
—
—
.
—
*■
f
:
j';
riot be
imiforni ih ra^ iseq^
•
0.99
0.94
materiaL growth... •. ^
While the trend may
a
i tions held by ;the •; commercial
activities; ofthemay be banks;" All this >will Tbe done in
: }
rirder> to reduce* thCf Yoluriie of
summarized as follows;
1.09
22.25
'
3.0
20%'
21% /' /
bank- deposits
which have in0.88
55.46
2.0
63%
.?Y64%- r
(1) Business activity will be at
Manufacturers Trust——-—
0.92
3.9
45.47
creased rapidly during the war
;
49%
National City,-——— ^ 51% ,v
a high -level at least for' the next
0.92
102.38
4.5
111
and which constitute one of the
New York Trust——
1.08
49.59
6.2 i
fewiyeais^^ ac?mrnri^hied; by satis¬
2 45%
V
48%
Public. National ——2—
prineipal dangers, of
inflation
0.95
4.2
768.21
805 :•
840
factory employment, a high na¬
U. S. -Trust—
which^ is s& pronounced^
to1
tional income and a - balanced
0.94
4.7%
'■'"'Average ^2i2^i222.k^;i2,^2'^%.r
present s time
throughout
the
budget.
^
-4./
4.1%
48.6
American Bkr. Ind.—L—. 50.7
country.
(2) Within a. relatively short
One may,. therefore, take it for
First
National
registers
the this fact has been reflected in dhe
period of time production will
greatest decline, with a loss, of listless and weak character of the catch up with the demand and granted that bank holdings: of
$215, equivalent to 10.3%. Higher market. Member banks of the' competition for the family income Government securities will: ide+
than average
losses were also New York area show a decline in dollar may be expected to; be crease/; Thi^ in; itself is a whole¬
some tendency and should be en»
registered by Bank of New York, total loans and investments from
—T--—
Corn Exchange
,
—
—
—4,1 : '
52%
152%v
^Commercial Kationai^iw---^i^i~-.w
'
51%
46
•
54%
■
439.20;
48.22
-7.5
119
49%:
—^
0.89
30.65
,
'
52'/4
-—;—:
1.8
.
442 '
128
-+r-~—
_
34%
3514
of Mkt.
% Change
5-23-46
478
—
Central Hanover
Chase National
'
/.
vv
Bank of New* York-
wit&ia£ih^
If one wishes to ascertain what ■ purpose of redeeming, maturing
,—Book Value— lies ahead for the banks one must obligations, notably those-held by
Per $
first inquire what: I cs!^ahead?for the commercial banks, i Further¬
,
12-31-45
The Economic Outlook
—
country; yet/o^
the- total .volume of business loans.
to increase and keep
with the volume of business
activity of the country. * Certain
types of loans, of course, will de¬
crease, such as loans made for the
bound
is
pace
purpose of enabling individuals or
corporations to; carry; Government!
obligations; On tha^whole, howr
ever, the transition in the economy frqm war to peace will llead
to a considerable shift in the com¬
position of earning assets of the I
bartks. ; Holdings of Government
securities-will -deprease; the vol^
ume
of business loans will: in¬
Such a development will
undoubtedly be welcomed by all!
crease.
-
—
Commercial $23,904,000,000 to $22,035,000,000
National, Guaranty, Chase' and between Jan. 2 and May 22,
Their total
^Public.
The market decline was equivalent to 3.7%.
strongly
resisted by Bank
of Governments of all classifications
Manhattan, Bankers
Trust and dropped from $15,985,000,000 to
Manufacturers
Trust,
each
of. $15,123,00.0,000, a loss of M%* W
which show a decline of not more the other hand their long term
bonds
expanded
than 2%.
It is Of interest to ob¬ Government
from $9,413,000,000 to $9,759,000,serve that National City declined
only 3,9% against 3.4% for'Chase. OOO, equivalent to 3,7%. Total
Central
*
Hanover,
The table also shows the ^rela¬
tion of market to' book value; £ On
^average $1 will buy 94 cents of
2 book value. However, three stocks
declined, from $6,798,-
loans also
000,000 to $5,883,000,000 or 13.5%;
but commercial and agricultural
loans have increased from $2,830,-
$2,910,000,000 equiva¬
It is significant that
are
000,000
mercial
lent to 2.8%.
selling below book, viz: Com¬
National,
Irving
Trust
and Public National, while Con¬
selling
tinental and Guaranty are
approximately
■
per
less
book value
dollar than any other stock on
increases
have
been
in
>
the
higher revenue categories.
Deposits of New. York Clearing
House banks also show a moder¬
ate decline since the first of the
dropping from $28,014,534,Earning assets of the banks have 000 on Jan. 3 to $26,371,790,000 on
been in a moderate down-trend May 16; a loss of $1,642,743,000, or
The loss has been in desince the first of the year,, and 5.9%.
the list.
.
value*
book
at
offers
Chemical
the
to
year,
,
Earnings Comparison
7,
V-'fc"?
*:i
!;-vV
',',^0;
Fire &
'
.n
"si
•
•
NEW
jersey;
J ^:|securitiesK:.;
'Vi. r ;/v
.
United
the
of
role
likely to be greater than
before. Under certain -condi¬
ever
rion|id+
one oan,yisuali2:ri a
erable
expansion
of
American
tions
business concerns in all corner^
the earth,
of
>
(4) The Middle class 'hris grown
during the' war.' Personal income
taxes will remain high which in
turn
distribution
national income and' the
means
of the
wider
a
national wealth.
!
,
The public .debt wilt con+
tinue to be a topic-of considerable
(5)
discussion and certainly after the
-.c
;v; y
v
• >
.'•
.
-j
^
While the holding of
Govern*
banks will
decrease; the volume of business
loans is bound to iucreasei- In the
first place. it is to be expected
that as soon as labor difficulties
have been'ironed out the physical
ment securities by the
volume of business of the country
much higher level
than
ever
before in peacetime
Second, it is a well known fact
will
be
at
a
that the volrime
of retail trade is bound to be very
"•'.'"v.
Established
120 BROADWAY, NEW YORK 5, N. Y.
1891
2, N. J;
BArclay .7-8500
MArket 3-3430
1-1248-49
N. Y. Phone—REctor
Gibbs, Manager Trading Department)
2-4383
developrnents
these
of the
bound to be at a high level are
bound to have
a profound effect
composition of the earning
•on the
18 Clinton St., Newark
' V>-
'
of
the war, and
much larger.
These factors com¬
bined will force many concerns to
borrow from
are
pleased to announce the installation
of
direct wire to
a
*
SKALL, JOSEPH and MILLER
CLEVELAND 14, OHIO
TELEPHONE
CHERRY
TELETYPE CV-365
3322
provide
more
PRIMARY MARKETS IN
|| §| "
'
io Posf
Office Square
HUBBARD 06SO
67
"Wall Street
WHITEHALL 3-D782
•
NT
the banks
in order
have
.
addition
in
considerable
be reduced to
amounts of government securities
which they will liquidate. Yet the
fact remains .that not all business
of
the
Federal
Government
will
approximately 20%
present size. This will pre¬
vent a large portion of the; war
loan account from becoming other
deposits. It may also be expected
that later on, particularly *when
the budget is balanced, the Treas¬
ury will utilize the funds accumu¬
in
the
trust
funds
for
the
.concerns
NATIONAL BANE
Bankers to the Government ill
Kenya Colony and Uganda
Head.Office:
26, Bishopsgate,
.London, E. C.
|
Subscribed
CaSalle Street
Reserve
The
Bank
Fund
conducts
lead to
^^-£2,000,000
_£2,200,000
every
description
increase in the volume
today
are
considerable
not well adjusted and
nany distributors complain about
i lack of merchandise.
As soon
tories
are
production increases inventodes held by distributors are likely
to increase.
This, too, will cause
riany merchants to borrow more
than was the case during the war
is
at present when inventories are
and when the,turnover of
merchandise is very, great. Furhermore, one may expect. that
he volume of loans made by the
the
sale
of
financing
durableconsumer
i
mods
».
an
banks for the purpose of
Trusteeships and Executorships
also undertaken
favorable
this
business loans.While inven¬
of
ir
banking and exchange business
■
in
small
Capital_^__£4,000,000
Paid-Up Capital-
are
position and the large volume of
production and trade and < the
highericost; of xdomgibusiness will
they
PRIVATE WIRE SYSTEM CONNECTING: NEW YORK,1 BOSTON, CHICAGO,
PHILADELPHIA, CLEVELAND, LOS ANGELES
,
;
flow, of currencyl
as]
expected]
probability ' several]
will not be
from- circulation
great as 4 waScoriginally,
and
in,. all
ad justs]
will pass before vit
to a more normal level.
years
Investment Policy
loans
The outlook for
'
well
as
Hie possible trend of deposits
as
an excellent clue" as' to whal
investment policies of com¬
mercial banks will be. They un¬
gives
the
doubtedly. will endeavor to
a
sufficient amount of
notably
PRANKLIN 7633
£6-105
return
they will be able to use for qriite
some
time while many others
turing outstanding obligations out
Of the huge funds accumulated
during the Victory Loan Drive.
One may expect that by the end
of the year the war loan acicount
in India, Burma, Ceylon, Kenya
Colony and Aden ana Zanzibar
1-4875
The
in
8ranches
23i &
tively high;
tional shift in deposits.
the
CHICAGO 4
,
war
tion
::
INCORPORATED
the same scale : asl
they will be tela-j|
(4) A moderate 'sec¬
on.
and
CO.
NEW YORK 5
grow
ing capital. To be sure, the' li
quidity of business as a whole to¬
day is very great; many business
concerns have more deposits than
.
BOSTON 9
not
during the'
ury has already adopted a policy
of redeeming a portion of the ma¬
of INDIA, LIMITED
flfil 1
invariably liriove
keep]
short-terirj
assets in order to
banks.
of the
convenient access to our
BANK and INSURANCE STOCKS
v
to obtain additional needed work¬
lated
to
larger scale
business activity ripd riatioimtiri-i
come. While savings deposits may|
The Treas¬
assets
of its
We
a
on
production and nota¬
country?
.
will
banks will be
deposits,
bly wages/ have ^ind^ased^ite*
rially, that prices are higher thar
they were^^rior teethe'outbreak
V
How
The RfovemenL of; Deposits
The redemption :bf Government!
securities held by the commercial,
than the iimrease;i^
So long as the banks of loans and this is bound to bringf
held a very large amount of Gov¬
about a general ,reducti0ri in theij
ernment obligations and a considtotal
volume of bank deposits.[
erable portion.-of their, earnings
The movement of bank deposits^
was
derived^ from
interest or
may; be visualized somewhat /as|
Government obligations, they
follows: (1) A very material de-j
were subjected to all kinds of po¬
crease in the war loan account!
litical attacks.
If during the next
probably to about 20% of its pres-l
few years, when business activity
ent level.
(2) A moderate in-|
is high, the holding of Govern¬
crease in other deposits caused in;j
ment securities by the banks is
part by the redemption of securi-'i
materially reduced, these political ties held by others than
commer-|
attacks will end and the danger
cial banks and part by an increase!
that efforts may be made to alle¬
in the volume of loans.
(3) Al
viate
the
debt
burden
of
the
substantial increase in the volume!
country at the expense of the of savings deposits.
Experienced
Ocuiks will be materially reduced.
of the past has shown that savingsj
that costs of
•
Treasury Redemption]
J. S. Rippel & Co.
Members New York Stock Exchange
L. A.
The
trade is
/
Request
Teletype—NY
(3)
States in international finance and
affect the banks
Laird, Bisselia Meeds
Telephone:
goods which will tend to reduce
its cost.
'"I
■
couraged.
The balancing of the budget plus
the fact that business activity is
v-.
I94S
Bell
small¬
organizations, to vertical inte¬
grations by medium and largesized concerns and to the adoption
of new^ methods Of distribution of
er
"
.v< '<&i
on
bound to lead to mergers of
'x'-■
Insurance Stocks
Circular
■;.ihi^;iu;:tri^^is:
catch-up period is over andi busi¬
ness
activity again depends on
current demand, considerable ef¬
forts may be made to alleviate the
debt burden along unsoundKlines.
-
Casualty
keener than ever.
banks.
V.
will
-
increase,;
;
Banks all
loans.
the
meet the reduc¬
volume of deposits!
increased
All
other
demand,
will
funds
foi]
b(
invested iri high+grade^^ bbligationij
United
-
States
Govern¬
While the
ment securities.
marj
high+grade Oibligationsaricl
particularly of Government bond<|
ket for
continue to fluctuate, par¬
ticularly in the immediate future!
will
yet undericonditions as they
exisf
present no material incrfeaseirj
money rates will mke place/7Th(
most that
one
can
say
abouS
money
rates at- the moment • i\
at
that the decline! in money; rates!
as well a short-term, - haf
to an end;
To judge froi
statements recently made by the
long-
come
monetary authorities the rate
patl
Treasury obligations wilj
continue to range from % of 1'
for certificates of indebtedness t<!
2^% on long-term Governmen
tern
of
obligations.
(The bill rate ij
omitted because; it is a pegget
rate.)
The Merger Movement
The
merger
movement
of
mi
dustry and the efforts to cut th(
cost of distribution are bound t(J
have an effect on the size of busii
ness
institutions
as
well
as
banks
made Notwithstanding the great effort)
made in Washington to strengthpreparations > to handle this ,type
over.
the
,
country
have
Volume 163
^A
t
•
•,
-
?\
,
-«.
i"<
Number 4494
v-^rr.,v.v.v:;.7.^
'Vt. V .* fl ,v
^
; i-ftv,.?
'".7' 7 V"'.'. VwK{>, J?" \ '
THE COMMERCIAL & FINANCIAL
CHRONICLE
'V/
i
•
the position of small business*
men? developments are 6n the
whole against them, Costs of pro¬
duction, notably wages, are in¬
creasing and there is no indication
of a reversal-of .this trend. Union¬
4. en
.
\
.
mand for the American dollar is
the
bound,
reserve
to be world-wide.
\
over;
well
as,
small
as
should, be
the banks as well
combined Will make the dollar
gress. -
ac¬
concerns; Undoubtedly
business* are
when
practically no- foreign ' ex¬
change restrictions in this country
com
,petition.:v.fOn the family income
dollar becomes keen great efforts
will be made to reduce the cost
of production and this in turn Will
lead
,
to
business units which make
sible
the
saving
introduction
devices,
of
more
pos¬
labor-
modern
-
methods of production and thus
lower.costs of production.
Con¬
siderable changes may also be ex-
,
and
the
experience of the banks
in
dealing with international fi¬
is wider today than ever
before.
It is quite certain, there¬
fore, that the banks of the United
nance
consolidations
mergers;
and; the establishment of larger
banking
cies will play
,
-
considered
only
temporary; in
here, too, the present .tend-- character. ,As soon as conditions
ency is toward larger units.
throughout the world have be*
As is well known the
crime more normal, * assoon as'
larger industrial
and
commercial
units currencies .have been ^stabilized,
the .activities
of
governmental
Prefer to dn "business With larger::
banking institutions.;); in .addition agencies will be reduced and
to
the -abbve-rmentioned factors,
competition among the banks will
;
those
of the commercial banks
will undoubtedly increase. Under
certain conditions one can visual¬
be keen and low money rates are.
ize
bound to affect the earning
ability
j of, the banks, .particularly those
operating with a relatively small
Dvolume of deposits; At the same
time- expenditures
of the
banks
have already increased and unless
wages ahd-salaries paid by them
;
are
commensurate
With
those
paid in local communities; the
banking institutions will find it
difficult
attract
to
satisfactory
considerable
outflow , of
American capital abroad, partic¬
a
.
ularly in the form of direct in¬
vestments.
If
conditions
fa¬
are
vorable then American banks will
Undoubtedly play
ant role not
import¬
only in the financing
a very
of international trade but also in
the restoration of the war-shat¬
tered
ecpnpmies of
coun¬
many
tries of the wbrld.
help.
..."
AH these factors combined are .-.The4 NCw Middle Class
bound to lead to bank mergers. „; The rise of a new middle cla^s,
This is already taking place on a
^modest .scale.
Wherever permis¬
sible bydaW, small banks are be*
ing absorbed: by larger institu•; tions end Converted ihito branches.
There is also
.
a
merger movement
afbdt in many parts of the coun¬
try whereby good-sized banking
institutions merge In order to in¬
?
their
crease
efficiency,
reduce
their expenditures and be in a po¬
sition to accommodate their
customers.-,
(
Bank
the
distribution
come
of national
in¬
fect
and will find it necessary and ad¬
that
will
many more people
utilize the banks as trustees
and
executors
the
of
average, size
decrease
the
a
will.
...
While
of estates
number
of
will
-estates
-
'to
make; necessary
played a
njendations.
f
(2)
;
There
is
competition
the
to
the
,
;are
or
where*
a
have
their
of
.Jn
addition
there
lems
is
the
inflation
the
be
possibility
made
to
that ^fforts
alleviate the
may
debl
burden of the country at the ex¬
of the banks which may
atise after the end of the
pense
catch-up
period.
deposifcs~which
per¬
payable in le^
|^l .tender,:curreney, they are not
in a position to protect their own
capital Vesoutcbs frpm the losses
sustained by iriflatioh. If the inflation is
a
are
permanent orie
as was
the case in many countries of Eu¬
rope at: the. end of the last war.
real purchasing power of the cap¬
ital resources of the bank is dras¬
trade.
Such
will
have
serious
for
the banks
history
of
the
a
since
past
development
they, too, a;
has shown,
serve
Therble.
which
the
the
•determine
nancial
the
*
international
transactions
carried
fi¬
out
by
the banks.
For the moment
the; situation is not. sufficiently
clear
to make any predictions.
nation
dur^g
;
the
facts,
are
that
the
nor a
before.
that
principal
problem ? that
confronts the nation at present is
to defeat the forces of inflation.
Once this is achieved the nation
will embark on a period of con¬
siderable prosperity during which
it; will;be possible to make plans
fdrv the futiire in order td avoid
the recurrence of large -scule un--
employment.
The bahks have
v
banks.
Under
those circumstances the debt bur¬
[important
ari
ment
den
will
become
particularly
hfeavy and furthermore - the defi¬
the
country
standard
cit of the Government is bound tc
be. considerable.
Efforts may be
"always played
role in the develop¬
the natural resources-of
of
of
and in raising-the
living of the people.
We have every reason to look
with great confidence into theTfutute and; as in the past so in the
therefore, to alleviate the
future,,'the banks will continue^to
be the hub. of our economic
wheel.
expense of the banks. This can
be done either through the intro¬
duction of the 100% reserve sys¬
tem or through the offering of
r
Richard Adams With
no-
ob*
Sucl
Conrad, Bruce, Seattle
ligations
to
the
bahks.
measures would materially reduce
the ability of the banks to meel
their tasks arid to perform their
SEATTLE, WASH. — Richard
Adams is now associated with
•
Oohrad,fBruce & Co., 1411 Fourth
fiinctioris.
\They will undoubtedly Avenue
Building
undermine
the
position of the
batiks arid at the same tifhe the
economic foundation on which
the system of private
enterprise
as
managers of
the; ^trading ^department? In M:he:
was with
Hughes,
Humphrey & Galbraith, and its
predecessors in Por11 and,-in
rests.
charge of trading.
: While, the
dangers of inflation
past Mr. Adams
..
(
>
h■
ate very pronounced at the pres¬
time they could be met if
them^
Sooner or later the labor
difficulties are bound to come tc
■
OKLAHOMA CITY, OKLA.
,
as
and of
equipment is bound to wit¬ ing, announce that Major Edgar
ness a
material increase.
as
As
soon
Roy Oppenheim has been released
the people see merchandise dis¬
from active duty after five years
played
in
buy
a matter
solicitation
windows .their
store
to
eagerness
of offers
in
the
service and
of record only and is neither
to
has resumed
diminish; his partnership in the firm.
will
buy
any
an
offer
of these securities.
the Prospectus.
7C ;
Common
Stock
j
;
(Par Value $1 Per Share)
Price
briefly be summarized-as follows:
<1)
Legislation:
>
-i-t..
the
is
Reserve
to
;
i.
.
..
^
-
......
...
Copies of the Prospectus may be obtained in any State from only such
»'
clealers
Various
>
pro¬
posals have been made to increase
the powers of the Reserve author¬
ities over the monev market."One
suggestion
$6.50 Per Share
dis¬
The political problems
: the
-banks? may
"the
effect
that
;
participating
in
this
issue
as
may
legally
bffey these
_
Kotibe, Gearharl & Company
Incorporated
May 29, 1946
;
securities under the securities laws of such Stale, i
Newhurger & ilano
power to'
—
Leo ' Oppenheim
and
Company?
Production of goods as
the productivity of labor Tradesmen's National Bank Build¬
end.
well
.■■■■..
Maj. Oppenheim Resumes
Activity in lnv» Business
there is a will on the part of the
Congress "and the people to meet
an
i,-
,
ent
(A Pfeitttsylvariia Corporatibn)
tonfront
*£?*•
0
.
The
lidbert & Obert
.
war^s
fortunately, relatively small?-Our
the
pedal low-coupbn-behring or
iiiterest-bearing Government
the
120,000 Shares
the
Board be given the
raise further reserve re¬
United
States v currency
is the quirements.- Suggestions have
Soundest in the world and the de¬ been made which would lead to
s
However,
for
all,
Our loss in manpower, was,
-
appeared.
United
States will play in the field of in¬
ternational trade and finance will
quences
darkest hours of
After
war.
as
as
coun¬
economy is intact and our ability
td produce is greater than ever
reduction in the national income
it is bound tq have serious conse¬
The offering is made only by
fs to. survive,:we must have'
free and Jinregimented banks.
It
private^^terpris^;
Trade and Finance
the
NEW ISSUE
war,
mergers
wholesome and should be en-
■■■■'./v-
ty during the
over.
■
This advertisement appears as
sell
They certainly are riot
important or as far-reaching
purchasing
1 If the inflation - is only tempo¬
rary in character and followed by
a period of
declining business ac¬
tivity accompanied by an in¬
crease
ifi unemployment and ; a
consequence'
to
of
debt burden to some extent at the
7iThe danget Of iriflatibri, particu¬
larly at the present time, is
volume
ever before it
advisable for the banks to take
bade,
'
nation; are
small compared 'with*
those that confront the rest of the
relatively
those which confronted the
is
banking legisla¬
of
lems that confront this
world.'
the
is
settlement of the existing labor
difficulties is excellent. The prob¬
banks
ItP aetiyp^ part^Tn the fight against
Inflation.
- f?
two
danger
the ?;•• banks
whole.
The economic fotm*
dation of the country is sound and
the outlook f.or business after-the
perhaps, more thari
customers
which is imminent, and the other
the
of
as k
expenditures of the Govern¬
ment, by a sound refunding policy
of
the
Treasury and by
the
preaching of thrift on the.part pi
all
financial
institutions.
Now
serious prob¬
confront the banks.
which
One
to
are
Association
the
agencies.
tion
Bankers
future
closely tied up with the economic
and political future of the
country
power be reduced.
This can be
achieved by a drastic reduction in
never
suffered materially
competition of governmental
from
and
to
almgethe^;stpp: "6mall
«
The
con¬
that
ability to meet the
requirements
couraged but should not be, per-; should;not -*beoverlooked;thb t in
countries where the banks-have
mitted to go too .far.
;
been, regimented the system of
The Banks and International
.
Conclusion
quite
can
The Political Outlosk
banking unit
-
banks
the Congress but to the
people at
large. ' Above all it is essential
danger that
banks from
The fate of the banks, political¬
ly speaking, is- closely >;tfed up
function in the community where With the, political fate of the nait is located and cannpt easily be tibri:as k whole?,If the vsystem Of
replaced by "a branch; However, private enterprise, which demon¬
where, a
community, is- .over- strated its virility ands its abUHv
-
" The
It is highly desirable
throughout the
country take active steps to bring
these points home not
merely to
that
-
-
.
has performed, does and will con¬
tinue to perform a very useful
is
expected that they will be taken.
the
tepriee*^
Which in the past have been ag«*
gtessive and endeavored to the
bfest of their
purpose or another.
country at the expense of the
banks*;^The small countty bink
of
wefe
production.
lending
agencies
may increase; The
banks
can
overcome^ these dangers, however
bV
their. Own
efforts.
Banks
country. To weaken the unit
banks will share in the economic
banking system, therefore, is to
weaken the banking system of the prosperity of the country.
The
economic outlook for the
b^nks,
country as a whole. A repetition
therefore, is as good as that' for
in* the field of banking pf Mat
the coiintry as a Whole and even
happened in California would be
the greatest pessimist Will con¬
-disastrous
particularly in times
when efforts may be made to al¬ cede that the immediate outlook
leviate the debt burden of the for business activity is favorable;
banked
Ahierican
governmental
The growth of the middle class of
the United States indicates that
the volume of business of the
banks will grow and that the
important role in
very
one
losses
time
a
great deal te halt the
forces of inflation.
Recently the
recom^
.
the economic development of this
substantial.
oh cur currency system it would
.
for
that
at
announced a program intended to
stem the tide of the constant rise
v
rower
The
pur-
1
banks
3b which have *a direct bearing on
the operation of the banks and
handled by the banks is bound io tically reduced and
they are con¬
considerably.
Banks fronted with the task Of raising
capabie;bf? meeting theneeds ;bf increase
their customers, small as well as which recognize this tendency are new capital. Like all other finan¬
large.
(2) They may lead to bet¬ making. serious efforts to. put as cial institutions the banks suffer
ter management, a reduction in many people on their books as fTorri ihflation.
If, on the other
This is done partly be¬ hand, the inflation is
the cost of 'doing business* and possible.
only tempo¬
cause
it is realized that almost
above all they "may offer better
rary in character, as it is more
opportunities to young men who every individual in the United likely to be, then it will be fol¬
States is a potential
wish to make a career of bank¬
buyer of dur¬ lowed by a sharp decline in busi¬
able consumers' <goods and there¬ ness
activity^ by a fall Itt price?
ing.;-:
7";;fore any customer of a bank
may of commodities and by consider¬
i< i The disadvantages of mergers
be considered as a potential bor¬
are % also
able losses suffered by industry
considerable, however.
The fact should not be' overlooked
that the unit banking system has
of what occurred in 1920 is
likely.
'a
have
measures
chasing power. More are needed,'
however, and it is to be hoped'and7
repe¬
quite
1
ury to reduce the volume of
?■
tition
^
Some constructive
tribute
the activities of the banks. haps greater than is realized
by
savings of the people, are many people.- Although the banks
large arid Will cbritinUe7td;grbw»: db riothave to hedge against" their
people will have bank' accounts
a
^
■
already been taken by the Treas¬
taken" to
piroposes legislation. Since quite
•a!-number of laws, have been
Passed during the last decade or
on
The result will be that many more
7- <4
are
halt the forces of inflation
governmental - agency
The
assume
The favorable aspects, briefly, are
these 7<l) They-lead to the form&tioh of stronger institutions
by the Con¬
It is highly advisable for
brought about through high •Hf-'' The Danger of Inflation
income taxes and higher wages is
bound to have a pronounced ef¬
visable? id?do business ^With the
large banks. ; Furthermore, itTsTait to
mergers have favorable
as unfavorable aspects*
as* Well
great.
Unless measures
as
banks themselves to take the
lead in such matters and not wait
until ;some
important" role,1 ahd
an
lending activities?may vbe
a
sharp decline in
activity and their losses
are
by
likely to play a much be advisable for the Congress to
important role in financing appoint an unbiased Congression¬
international financial ? transac¬ al '-committee similar to the Unit¬
tions than ever
before. While in ed; 'States Monetary Commission
the beginning Government agen¬ to study the various
banking laws
their
from
business
it
passed
studied
suffer
States are
,
.
is
carefully
.
the
arid
;
legislation
-
more
pected in the field of distribution
,
.>
banking
Interest rates are bound to re¬
main "low for quite some time* in'
is spreading
.rapidly; all ceptance an excellent medium to
thecountry, and embraces finance International frader There
7,large
of thd T00%
system, Before
establishment
the United States., These-factors
.
ization
v
2927-
,.V;-v.;,;;\?
-
.
;
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•
».:>{. T'.Xi'MP'■
•.<;* 7;,'y
THE COMMERCIAL & FINANCIAL, CHRONICLE
2928
Thursday May 30, 1946
(;r
difference that "the recent advance
of modern technology
CaiuMUm Securities
accelerate
In
,
the -rate
addition
progress.
of
the Dominion will be still further
WILLIAM McKAY
By
With air conquest of geographical to, take shape as the center of the world
f,
'
b
assisted
barriers Canada commences
of the future.-y : <.< -
The unattained ambitions of ancient explorers in their quest for
,
their time.
top of the
of the globe con¬
as
a
result of its natural
ability to draw
the
on
of capital and industrial
genius of
both this country and Britain.
;
ket remained in the doldrums and
With the land
centrated in the Northern Hemi-^
direction there
sphere
established fact.
an
Canada' Com¬
with
and
,
manding the longest North Polar
masses
frontier, i the Dominion
stands
clearly at, the world's new stra¬
tegic center.
;It
would
appear
considerations
Canadian Securities
illtP"'
in this direction.
also
conceptions of the value of out¬
moded forms of Imperialism, Brit¬
ain perforce is commencing to re¬
tire from her obsolescent lines of
communication
in
Mediter¬
The
the
the Near East.
and
ranean
feXfi
that political
evolving
Apart from new
are
British Dominions, and Canada
in
moreover have now
reached a stage of political and
particular,
maturity
economic
and internal
external
bonds.
Stock
orders
executed
lies in the development
independent Dominions,
loosely, yet firmly,
linked with the mother country
(for dealers, banks and
institutions) on the Mon¬
treal and Toronto Stock
net
t-v
Exchanges,
-r
Direct Private Wires to Buffalo,
Toronto and Montreal
at
which
are
by the community of ideals and
traditions.
The Colonial Empire
and
mandated
territories have
been more of an obligation than
and concentration on
their administration has militated
an
-
instalment of the
be
regarded
as
new
issues will
pointer to
a
the
trend of the market in general,
v
There was little activity in in¬
bonds but internal stocks
ternal
continued to attract attention with
interest centered
on
the paper is¬
which Abitibis were
especially prominent. Free funds
were slightly easier at 9% %.
sues,
among
With
regard to the immediate
inactive market both in external
the
of
now
basic strength of the British
The
now
Empire
MABKETS maintained in
all classes of Canadian
believed
that the Montreal financing will
be postponed from the beginning
to the end of next month, and
the reception given: to the first
their
where
is
It
prospects there is still reason to
are
British
stocks
price-wise.
little change
loudly heard in
Commonwealth councils.
voices
bonds
in the absence of interest in either
was
asset,
against
realization
potentialities
the
enormous
the
the
of
of
somewhat neglected Dqnnnions.
foresee the continuance of
a
dull
The peak ap¬
to have been passed in 311
and internal bonds.
pears
under
the
abnormal
dramatic
conditions of
by no' means undebatable
to whether these technical ad¬
ready nearly reached $45 billions.,
rapid a rate are on And yet the debt increased six:
the whole a good thing.
In par¬ fold and was at no time a signifi¬
ticular and; in detail they seem; cant 7 limitation in our productive;
to increase the material blessings
But in
satisfactions of life.
and
prematurely,
taken place
elsewhere.
to
further
A natural
artificial
and
new
tradition to provide a
firm social
technology.
New York Prices.
worth the scientific and technical
and
progress that
we
accompanies it, and
do not regard
this acceleration
of progress as even a token offset
to the loss of life and the moral
of
Domimoh Securities
Grpokation
of the application of
*c-.
40 Exchange
.
new
lines of communica¬
tion, and the vast empty spaces of
the Canadian Northwest will be
The in¬
creasing difficulty of exploitation
opened up to civilization.
Place
New York 3, N.Y.
Bell System
low the
of the economic wealthiof the po¬
Teletype NY 1-702-3
unsettled areas of the
British Empire will compel atten¬
tion to be directed towards the
litically
see
the: Federal budget
in
inflationary.
Today we can
that a nation that has millions
and billions of dollars
invested in
appears atomic energy. The basic scientific idle plants and equipment is much
developing universally, not insights on atomic fission were like a factory or company that
only in this country but also in well in hand before World War II has a sizable amount of unused
Britain; it is not to be expected began, But I have heard it esti¬ capacity.
Under
such circum¬
lowering of interest rates
to be
therefore that Canada which has
mated that in
1939 with methods
the prodigal
expenditure for sheer survival
which war releases, a bomb actu¬
ally exploded after a period of six
short
years.
Except
for war,
Kalb, Voorhis & Co., members mankind might never have found
of the New York Stock Exchange, out how to use atomic energy, or
will be formed; shortly with of¬ at least, the knowledge might
fices at 15 Brpad
Street, New have been delayed for many dec¬
development will inevitably fol?
deficit
was
technology and science was of unemployed who want to work
knowledge
enough U235 to produce a bomb.
And yet, under the pressure of
eventual result it can be
that Canada will grad¬
produced
out of
a
to reverse the current trend.
an
we
inevitably
that war
ually emerge as the senior part-?
ner
in the British association of
As
addition
in
billions worth of armament.
The miracle of production came
$80
productivity that had been
growing unnoticed beneath (the
surface of actual output for a pe¬
(Caiises,::H;^
riod of 15 years.
It is this level
The first World War speeded of
productivity against which we
the practical development pf the must now
judge our standard of
radio and aeroplane. It also made
living and high level employment.
us aware of the extent of illiter¬
Let me give one more example
acy in the United States and hast¬
of a new insight in the Yield of
ened by many years the reduction fiscal
economics.
During
the
of this handicap to human free¬ 1930's most
people believed that
deterioration
of separation of fissionable mate¬
rials then known, it would take
I
living
setting for the new
One thing is certain, no war is
conservative
in its approach to problem of the
rate of interest will do anything
foreseen
have to cut our standard of
sharply. And yet in 1944 the gen¬
eral over-all standard of living
was at least
as high as in 1941,
nations.-) Commerce and economic
or
.•^■;7 ;''7,
that we
between
perhaps would have to choose
custom guns and butter, that to/arm for
sufficient, war in two hemispheres we would
From the second World War, by
all odds the'greatest contribution
resistance
•
in
changes
and; tradition 7 without
time for new custom
dom.
the
.77 .'■.';77::7...
In 1941, we were told
ity.
the aggregate they force,
nadian market has
reflected
we were
at so
investment markets and the Ca¬
not yet fully
reaction that has
entering a period of
preparations with the
handicap of a debt that had al¬
that
defense
war.
It is
as
vances
>/■' During the past week the mar¬
Policy
(Continued from first page)
resources
the North West Passage showed vision centuries ahead of
Now the practicability of air-routes over the northern
world is
The New Tax
will greatly
of
development
the
hitherto
been
very
about
70,000
necessity
war
years
collect
to
and
Kalb, Voorhis & Go.
Forming in New York
York
City. Partners will be John
Whether
ades.
we
like it
or
not,
stances, an increase of demand
tends to reduce unit costs, and
therefore under competition tends
to reduce
crease
prices rather than to in¬
For the same rea¬
them.
sons, Federal deficits prudently
incurred in times of mass unem¬
ployment, since they also tend to
unit costs, tend to be de¬
reduce
flationary rather than inflationary
as far as the purchasing power of
the dollar is concerned.
These
insights, or
discoveries,
whatever
you
in the field
want to call them,
of economics, and fi¬
nance are just as real as radar,
Voorhis, John this technical progress has been
D.D.T., and atomic energy." They
C;
Newsome, member of
the made, and we must adapt our
virgin natural resources of Can¬
are not. matters of theory or wish*
ada.
No longer is emigration to Stock Exchange, Spencer Phillips, ways of life so that we can exist
ful thinking, they are matters of
the Dominion confined to work on Gilbert H. Wehmann, and Louis in a world where atomic energy
experience and observation. The
the land with the natural hazards Orchin, general partners, and Eva is at the command of the human
plain fact is that the war was ac¬
of
crop
failures and
doubtful A; Merrill, Elaine L. Boss, and will.
There are many other examples tually : financed on a declining
markets for agricultural produce. Evelyn A. Henry, limited partners.
rate of interest. What does this
of accelerated technical progress
In addition to an almost inexhaus¬
Mr. Kalb and Mr. Voorhis are
mean?
It means; that a new rela¬
tible/universal demand for the partners in Lewisohn & Co., with coming out of the last World War. tionship has been.created between
product of farm; and forest, Can¬ which Mr/Orckm is associated as Radar, rocket and jet, propulsion, the
private; money market and
insecticides, the use f-of blood
ada is unrivalled in scope for the
manager of the
arbitrage dept.
the national state. > This relation?development b£ modern industry^ Mr. Newsome has been associated plasnfa, ;aft illiistfate the, hev(: ap¬ ship was created in 1913,1933 and
plications
and f discoveries
to
The Dominion stands today in with Spencer Trask & Co. Mr.
1934, but it required the impact
which our thinking must adjust.
the place of this country a few Wehmann in the past was with
of a World War to give us the fac¬
We
cannot
wish
these
things
tual basis for understanding, in
Tucker, Anthony & Co.
decades ago with the important
away, nor. abolish them by closing
part at least, what had happened.
[l r
:
******* ...-yy
our
eyes or turning our backs.
Now let us turn specifically to
The world in which they did not
Ernest Linburn Dies
the problem of taxation to see
exist itself no longer exists. Man¬
Ernest A. Linburn, partner in
what changes we may need to
agement and statesmanship that
Simons, Linburn & Co., 25 Broad
make in basic tax policies, as a
does not take the new technology
Street, New York City, died at
result of new insights in the area
into account is living in a dream
the age of seventy-one. Mr. Lin¬
of fiscal economics.
As in other
world and is talking in the past
burn had been a member of the
fields, during the war we learned
tense.
New York-Stock Exchange since
1st 5s, 1965
many things about taxation in its
1899.
Advances in Finance and
relation to fiscal policy.
Economics
I feel that I .should point out
Summary on request
The
discoveries and insights that a number of people seem to
J. Arthur Warner Co. Inci
coming out of World War II are be rather upset by. the observa¬
J. Arthur■ Warner & Co., 120
tions I am about to make,
I hope
by no means limited to physics,
Broadway, New York City, is now
chemistry, biology and surgery. that it will be understood that for
doing business as a corporation.
Advances have also been made in the next few minutes I am only
Officers'are J. Arthur Warner,
MEMBERS
the fields of finance and econom¬ describing what has come about,
New York Stock
Exchange and other
President; and Thomas C. Kehlenics.
The full import of these ad¬ and that I am no;t advocating, ob¬
leading Security and Commodity Exchs.
bach, Vice-President and Treas¬
vances, I am confident, are not jecting; praising or blaming. My
urer.
Mr. Kehlenbach had been
12 0 Broadway^ New YorkS, fl.V,
yet understood, but we do know point of view at the moment is
associated with the firm for many
231 So. LaSalle St., Chicago 4, 111.
enough to know that some things purely surgical, as cold and ob¬
years.
that
many - competent
people jective as I know how to make it.
thought were ; true
are
either -7;If we look at the financial his¬
false or7 true: in a different way tory of the past 10 years, it is ap¬
than was believed.
Let me give a parent that nations have been able
Kalb, Peter A;- H.
•
CANADIAN BONDS
GOVERNMENT
PROVINCIAL
•:»nT£
«
MUNICIPAL
{if};-.*:'\ v?•'
-
r
CORPORATION
Abitibi Power
CANADIAN STOCKS
A. E. AMES & CO.
INCORPORATED
TWO WALL STREET
NEW YORK 5, N, Y.
/t;7.^;.y/,■ ,.:.y ■
r
Sector 2-7231" NY-I-IO4S
■
i
i"
taylorr.deale
&
&
Paper
ErnstoCo.
Dominion of Canada
All
to
the budget was soon balanced, the
interest rate would go to 6% to
134 Wall Street; "Newt-York 5;
i7^::^i^WHitehalb:3^1874^P
examples.
* ';
1937, an eminent economist
advised the Treasury that unless
expenses were
few
In
Bonds
Company
Issues
8%
.
Government
Provincial
-
Municipal
to
Corporate
Wood, Gundy & Co.
Incorporated
14 Wall
Street, New York 5
Direct Private Wires
to
way
had
it
France.
the na¬
billions
in
yet during the war,
tional debt rose from $45
CANADIAN
SECURITIES
the
And
Bought—Sold—-Quoted
;
Toronto & Montreal'
billions
$275
rate of interest.
.
on
-
a
'^
declining
1
1940/
which
shared,
I
their bills
even
though.
greater than their
paid .their
receipts, from .taxes
bills
by borrowing the necessary
The borrowing of money,
therefore, is an alternative which
governments use to supplement
money.
the
revenues
from taxation in
or¬
.
metropolitan news¬
paper
of
high reputation ex¬
pressed ' an 1 opinion^ editorially,
In
pay
their; tax revenues fell. short of
expenses.
Those countries whose
a
suspect was generally
that it was unfortunate
der to obtain the necessary means
for the payment of their bills.'
{To. be sure/; the borrowings of
a;
at
country must be paid in money
some
future date 'when thfc
y;yy-iy
olume 163
loans fall due, land, in the
f
*
time, interest
% principal of
j
umber 4494
must be
•
the
FINANCIAL CHRONICLE
mean-
p^id
the
on
loan.
Since,
when a government
borrows, it
must provide the
money for both
r
v
*
principal and interest, its need for
taxes J seems greater * than
ever-jthe only; difference
being that tnd
time of taxation 'is
*
postponed,
However, when these
v *
loans fall
due, the government may decide
,: to ■ borrow
-again :ahd/" with';:the
•
v*
proceeds of the new
the
.
:
:
^
loan,'piay off
principalof the old: Such a rfe~
funding operation again provides
the money which the -government
needs—and, again, the
need for
present taxes is avoided;';:
; A government which
depends
loans and on the
refunding of
Its loans to get the
money it re¬
quires for its operations
is, nec¬
on
essarily, dependent on the sources
from which the
money can be ob¬
tained. In, the
past, if a govern¬
ment
persisted
heavily to
interest
in
borrowing
its expenditures,
would get higher
cover
rates
and
higher—and
greater
and
greater inducements would have
to be offered
by the government
to the lenders. As a
consequence,
power over the government would
gradually shift, in some measure,
to the
money market, which could
dictate the terms on which the
necessary loans would be made.
Governments then found that the
way they could maintain
their
sovereign independence and
their solvency, was to tax
heavily
only
;
<
.
enough to meet a substantial part
of their financial
needs, and to be
,
-
prepared—if placed under undue
pressure—to tax to meet them all.
The
necessity for a government
tc tax in order to
maintain both
its independence
•
and its solvency
still holds true for
state and Ideal
.
(2) (the national income at high! occur under conditions of
depres¬ such as the present, when
effect
vels of employment.
sion. But the; surpluses and
i v
j
defi¬ tive demand is so great that arbl-'
Obviously under such a: policy cits will only be in proportion to trary
regulations and control aief
the lower the budget the lower the swing in the production
cycle still needed to prevent
inflation,;
our tax rates could be.
Clearly we that causes them and their crea¬ {t is ~ easy to
forget that iaii
federal taxation alone cannot pre¬ do not justify spending for its own tion will in
itself be an important
hrough the 30's, and perhaps' ni
vent ^inflationary price rises 'in sake j nor ao we want any wasteactor in bringing the
economy
he 20's, too, effective demana was
Ul expenditure; The policy I have back to accepted levels of
periods such as the present: All
high not sufficient to move the prou- ■
other means, in any case; must be outlined has beerr attacked from employment^ .....
.;ucts which- business and agriuuf-i'
integrated with federal tax policy some quarters as a "spending"
The suggestion has been : made ture could
produce.
Nor have
if we are to have' tomorrow f a policy; it is nothing of the kind. that
tax rates should be
changed those corrections of past policies
dollar which'has; a -value near, to
Obviously under such a. policy up and down to compensate; for and practices, been- made which
the higher our potential national
what it has todays.
. j
ups and downs in business. Al¬ would
give us confidence: that
The'war has taught the > gov¬ income at high levels of employ¬
though there is1 much to be-said such periods will not come again.
ernment^ and' the government has ment,^ the: lower; our 'i tax : rates for such a practice 'On theoretical It is for this reason that
there is ;
taught: the people, that, federal could toe. In consequence we want grounds, I do not favor
it, since need to consider national fiscal
taxation has much to do with in¬ employment with high productiv¬
have not been able- to convince policy as a principal means < of
flation and deflation, with: the ity, we want harmonious manage¬
myself that a policy of varying helping us to maintain a
condition;
prices which have to be paid for ment-labor relations, we want a tax rates is either
politically or of high prosperity.
the things that are bought and world at peace.
. >
V
;
We must recognize that the obadministratively workable,
sold. If federal taxes are insuffi¬
How shall we estimate this level
ective of national fiscal policy is]
Let me repeat the basic
prin¬
cient or of the wrong kind, the of potential national income? The
ciple for federal taxes once again: above all to maintain a sound cvr- j
purchasing power in the hands of best procedure would seem to be Tax
rates should be set to balance rency and efficient financial in¬
the public is likely to be greater to. take a level we would be will¬
the budget ait high levels of em¬ stitutions but consistent with this;
than the output of goods and serv¬ ing to live with over a period of
ployment. Under this principle we basic, purpose, fiscal policy should:
ices with which this purchasing years—pot war^boom conditions
can move
forward rapidly to - a and can contribute a great deal idemand can be satisfied. If the with overtime wdrk and excessive
oward obtaining a high level of )
reorganization of our whole fed¬
demand becomes too great, the re¬ numbers of women and adoles
eral tax
structure, to a simple and productive employment and pros- ;
sult will be a rise in prices, and cents turning out production, nor
s v *
stable system of taxation that will perity.
/
there Will be no proportionate in
sub-standard
conditions
which
If a constructive over-all fiscal i
help rather than harm air other
crease in the quantity of things mean excessive
unemployment of efforts to
policy is to be legislated and ad- (
gain and to maintain a
for sale. This will mean that the men and women who want to
ministered, % corrective measures!
dollar is worth less than it was work. The statisticians will have high level of productive employ¬
ment. Never again need we repeat must be adopted by the govern¬
before—that is inflation. On the to give us some recommendations
the errors of 1930 and 1931 of in¬ ment in' both the legislative and]
other hand, if federal taxes are as to this level. Two or three
years
executive branches.
At this time, ;
creasing tax rates against a de¬
oo heavy or
are of the wrong ago a level of 140 billion dollars
even if a fiscal and
monetary pol-j
clining national income in a futile
kind, effective purchasing power was widely suggested, but today,
complement and supoJe-i
and disastrous attempt to balance icy to
in tlm hands of the public will be on the
assumption that efficiency
ment
the | activities
of priva+er
the budget; Under this new prin¬
insufficient to take from the pro¬ will be
restored, the 140 billion
business
were
generally agreed*
ducers of goods and services all dollar figure, seems somewhat too ciple the budget will be balanced
upon, there is no possibility under
when it should be
balanced, when
the things these producers would small.* In
any case, the higher the
a
high level of employment lis the:present organization of the
ike
to
make.
This will mean level that can be
Federal Government of its
supported by
being:
supported by a balancing demand;
wide-spread unemployment.
reasonable: estimates
the
more
made operative or effective.
I
r
The importance of national fis¬
The
dollars
the
government conservative, since the result will
Here, at the point of fiscal and
spends become purchasing power be lower tax rates and less danger cal policy, including'tax policy, in
monetary policy, where the re!**-',
in the hands of the people who of mass)
attaining and maintaining high tions between
unemployment.
government
and:
have received it. The dollars the
The budget should be taken ex¬ prosperity is so great that there
of;federa 1; taxation-'all other
of*, stabilization;-" such as
monetary ^policy attd price con¬
trols and subsidies, are- unavail¬
ing.: It is Of course also true that
_
,
financing
of
its
The first of these
.
:
of vast new experience in
the management of central
banks.
The second
change is the elimi¬
nation, for domestic
purposes, of
4he convertibility of the
-
.
government takes
not
by taxes
be spent by the people,
can¬
and
therefore,
longer
things
taxes should be
their
in
part
high enough to do
protecting the sta¬
other commodity,
,]■ No longer do private lenders have
:
the final word on the fiscal
poli¬
oossibly can be without putting
the value of our money in danger
of inflation. The lower our taxes
into gold
or any.
cies
a
of
national
government
the
are,
purchasing
more
which does not tax*.
power
are
some
who
over-emphasize
security,
which
raises fiscal policy questions of what fiscal policy can do, and
who' give the impression that
its own. Given the prospect of a
world, at peace, I believe that the sound fiscal policy by itself would
federal budget at high levels o" be a penacea for all our economic
ills. This, of course, is far from the
employment can be held below 20
case. Measures of fiscal policy can
billion; dollars, and. still provide
the administrative and s o c i a" clear the way and can facilitate
they - cannot produce! goods and
services that the "modern nationa
services, they cannot give employ
state can appropriately provide.
cluding
social
It follows that
once we
ment;
have go
well
the
on
road
to
in
taxes
should
,
ereign national
exists
every soVstate where there
institution which funictions in the manner of a:
modern
central bank, and whose
currency
is not convertible into
gold or into
•
some
'
other
commodity.) The
un¬
sound practices of a
reckless, tax¬
less government can be
controlled
by . the citizens -of a democratic
country; - but, they > must exericse
control as citizens, and not
this
■
v;; as
1
and invested in whatever manner
they- choose
an
lenders.
The United States is
a
national
.
more
all
the favorable
conditions with
respect to basic elements and to
the organization, of men and ma
terials for work; will be unavail¬
Now it. follows from. this "primi
ciple thai,
tax rates
our
can
and
should be,-set at the-mint where
ih^ federal , budget will be baU
an'ced ut: what ~we Jwbuld
consider
Accordingly, the prime considera-
,
tion in. the imposition of taxes has
become the inevitable social and
economic
.
i
K
consequences
of
the
taxes that are imposed.
Since al
taxes
have
consequences
of
i
social and economic
character, al
federal taxes must meet the test
of public policy and practical ef¬
,
fect. The social and economic
'
con¬
sequences of a federal tax should
never
of
be obscured under the mask
raising
revenue.
By all odds, the most important
i
j i single purpose to be'served by
j f the imposition of -federal taxes is
•
\ the maintenance of a dollar which
I has stable purchasing power over
n the
years. Sometimes.-this/pur.
jj
is stated as "the avoidance
inflation:!; and without the-use
pose
^of
or
even
unless
the
ganizational work* is
the
done *» rw}
Federal. Government will bel
cal
policy that will help it create
good products,
good j obs, • and
good investments.
Business does
maintaining
a
jlourjjf j^rcha^ti^
demand that wilX'have some gen¬
eral correspondence to what
ag*~
riculture. laborarid, business Ore
of many years of
shortages and of able to produce and to distribute.
purchasing power in ;:;\With such a flow of purchasing
setting of stable tax rates to bal¬ the hands of the people; The, de¬ demand,- we can avoid, regimental
ance the budget at high
mand in fact is so great that many tion, maintain a high level of ^
employ
merit-' means that surpluses wil
restraints are necessary to keep? It oloyment; and raise the standard
automatically arise in times of from expressing itseH-in an inf^a-r of living to new heights for all the
boom and deficits will likewise
tionary price rise. J In a period peeple^'\
high/em-,
$7,500,000
be able to maintain high employ¬
V.■
ment im normaltimes if we;.set
bur tax rates too high.
•• r iv;
Bowater's Newfoundland
Let
repeat and- explain more
fully this basic principle of fed¬
eral tax policy, because it marks
a sharp break with
past practices
and
: V
■
-V;.'•'
4
..
.
"*
'
'
,
'
r
-
Pulp and'Paper Mills
me
affords
powerful
a
new
-The
limited
':
'
•
principle
First
;
•
"■"•
'
in¬
strument in helping maintain a
high level of productive employ¬
ment without regimentation, j;:
s
•
•
*
•
'
*
S
Mortgage 3V£% Bonds, Series of 1946
!
:
:
Dated January 1, 1946
1
^
Due January <1, 1963
is:
Tax
rates
should be set to balance the bud-
high levels of employment
been
set,
these - rates
should
be
let alone,
except as
there may be - important
changes
in
public .policy or significant
get at
Having
shifts
■
in
the- level; of
potential
productivity.
I* tax rates
are
set
are
t
(I) the size of the budget and
•*: -«
DomimoQ Securities
to balance
the> budget* at high levels of emu
ployment, the two critical factors
im*(
indifferent, but
preparatory or-«
enormous
ployment and to stay there. We do
not want our= tax system to work
against us all the way up to high
employment—in fact, we may not
federal government has final free¬
dom-from the money market in
meeting its financial requirements.
that,
to spend and to invest; and there¬
fore, we make it more difficult
domestic purposes, is not converti¬
ble into gold. It follows that
our
.
hostile
satisfactory level of high em^
ployment. If we set our tax rates
any higher than this, we are re¬
ducing unnecessarily the money
that private individuals will have
for ourselves to get to
a central
banking
system, the Federal Reserve Sys¬
tem, and whose Currency, for
greatest
a
state which has
-
the
employment and pro-!
ductioh' problems* business
rrupy
properly be apprehensive; It may)
be apprehensive, not that the in¬
tentions of .government will be!
not expect:a national; fiscal poU
ing if effective demand is insuffi¬
icy to do the work of business
cient to keep the wheels turning
it. It does ask for cooperation in
come,
encouraging private investment.
It should be noticed- that the
of
which
e
; lenders holds true for
.
peacetime
situation
*
wJlLbe left at home in: the hands but iir general, federal ■: -taxes
Today. we are experiencing, an
This fihal freedom frorri the
liii- of, the people—-money that can. be should j be reduced where feducr unprecedented j demand for.; ^the
position of unwanted control
spent by them, for the things they tiopfr wilfciffi t
products of business and agricul¬
dn
want to buy, or that can be saved
the national state by p r i v a t
creating consumet demand and iri ture.
This demand is the1 result
,
are
portarice for the working out; of
|
comes
orderly times, substantial further
reductions in federal taxes will
be in order all along the line. It
is not part of my task tonight to
suggest where I think these re
ductions
a
business
high employment be¬ helplessyin;*executing even the1
tnost
elementary
collaboratlvel
possible as business, labor
program.
and agriculture find the way* Bu
/
Business wants a Federal f^ I
in
through the current unpleasant¬
of liquidating the war and
ness
are
They-can create
i
•
[
..
.
currency
•
~
u.
bility of our currency, and no
higher.
Putting it another way,
our taxes should be as low as they
::
-
•:
Briefly the idea behind our tax
policy should be this: that our
:f gaining
„
-
the
com-
,
.
requirements.
changes is the
have
pletely altered the position of the
national state with respect to
;
2$ lVi g£
means
these dollars can no
be used to acquire, the
which are available for
sale. Taxation is, therefore, an in¬
strument of the first importance
in the administration of any fisca
and monetary policy.
governments, but it is no longer
^ true for the national
government.
Two
changes of the greatest
consequence have occurred in the
last 25 years which
^
.ar'fi
May 29, 1946
k
s
x
Coloration
The First Boston Corporation
-
;
CIAL & FINANCIAL CHRONICLE
year as
compared with
a yea? ago.
In the first
quarter income &Yahable»for charges before' Federal
income
taxes,; and
eliminating:
amortization of defense facilities,
RattroM $e<wities
dipped
.
The railroad market reacted very favorably to the cRmax represented by the virtual stoppage! of rail transport occasioned by: the
strike of the trainmen and locomotive engineers.
Quite obviously
speculators are not concerned over the fact that, as a result of tljie
brotherhoods, the railroads will be saddled with! a
substantially greater wage increase than had originally been arrived
;-by arbitration with most of the
brotherhoods 2nd by the Fact
.stand of these two
Finding Board that heard the case
of the engineers and trainmen.
.^Alabama Mills, lac,
More
important than this in¬
burden is the hope that
creased
•L; '*'■
'ji.
.1
^ '• $':'v
••
"A
r
the violent public and legislative
reaction to the crisis of the rail¬
J
V
road
Artlen Farias
Common & Preferred
:xr
s
t
r
i k
tend
will
e
more
rapidly to clarify the entire labbr
picture and bring about the longawaited industrial'boom;: J
Chicago Railways
the action of the
upon
soft coal miners. At
this
Cons. "A" 5s, 1927
writing
whether
or
the mines
Sunray Oil Corp.
4 Vz % Cum. Conv. Pfd.
j
it
is
the
time
of
not
yet clear
will return to
that the twelve-
not they
now
year-to-year' comparisons wi}l
make shrrV reading for thesecbbd
quarter of the year.
"
\
,
'
'
MEMBERS
'
J
'
New
York Stock Exchange and other
leading Security and Commodity Exehs.
120
Broadway, New York 5, N. Y.
"231 So,
laSalle St., Chicago. 4, 111.
TRADING MARKETS—
such increase is not
expected
now
to go into effect until quite late
in the year. Nevertheless, even
without any increase in rates, and
ev^h with the worst that now ap¬
pears conceivable in the general
industrial picture, there; is little
day truce has expired. Obviously question but that Southern will
they will not be so impressed With operate profitably this year and
the
President's new
legislative will be well able to maintain-its
*
proposal as were the railroad present $3.0Q dividend rate.
In the final analysis it is not the
workers, where such great im¬
portance is placed on the matter earning power in any one dis¬
of seniority. The bill proposed by torted year such as 1946 will be
President Truman would abolish that
determines
the
potential
seniority for those workers strik¬ value of a stock. It is the basic
ing after the Government .'has earning power under the condi¬
taken over an industry or plant, a tions apt to prevail over a period
step calculated to make the blood of years that is important.
of railroad engineers and train¬ from this angle ,ther§ is ample
men run cold.
justification for enthusiasm ovpr
In the recent change to a more the. Southern stock. For one thipg
favorable speculative attitude to¬ the management has been very
wards railroad stocks as a group aggressive in reducing, the debt
the common stock of Southern and the burden of fixed charges.
Railway has been attracting conr It is indicated that by the end of
siderable attention, a development last year the road's fixed charges
Which is hardly surprising to most were down to an annual level of
railroad analysts. Along with vir¬
Magazine Repeating Razor Co.
Universal Match
tually every, unit within the-in¬
Corp.
dustry
Dixie Home Stores
Missouri Pac, RR. Serial
i
? Tennessee Gas &
~
5Vis?
Trans.
[
National Mallison Fabrics
-
Southern
decline
has
in
suffered
earnings
a
this
the
stock
befn, warranted
Over
a
gree
of
72 WALL STREET
less
than $12,000,000,
nearly 30% from ten
cut
a
from the
the
Telephone
■i
$3.50
shar„e
a
on
the
common
-v'.-
■>:-
the city employees affected by the
June
13-day~old dispute would return
to work "without prejudice" and
noon
,4th.
A t hletic
events
will
include
golf
a
tournament
for
the
Stein
Bros. & Boyce
Trophy,
to
mem-
bers and their
12:30
from
Club
LeRoy A. Wilbur
tween
New
York,
and
Golf
Match
.
from
will
b
e-
teams
Philadelphia,
Baltimore
also
be
the
Telephone-Joigby
on
2
at
pitcjitradi¬
exchange" at 5
p.m.
jobs, but reinstated them
May 20.
union
Local
leaders
New York Stock Exchange
,
with the mass demonstration.
The
j
j
Bell Teletype—NY 1t310
-
1
strategy
committee's
statement
asserted
that
C.
Harold
Hanover, Secre¬
tary-Treasurer of the State of.
Labor, had "failed to achieve fhe
basic objective of the union, and
that is whether the city admin¬
istration will recognize and abide
by Article 1, Section 17, of the
York : State
Constitution,
which clearly states: "Employees
have the right to organize and
bargain collectively through rep¬
New
Chicago, Indianapolis & Louisville Rwy. Co.
GUARANTEED RAILROAD STOCKS-BONDS
Mortgage Income 4s, 1983
2nd Mortgage Income
25 Broad Street
A
Class
4%s, 2Q03
FT.
WORTH, TEX. — Villareal
Henry has been formed with
offices in the Commercial Stand¬
Frederick A.
-i
Stock VTC
L.
We will discount
the
above
profits and
"when
assume
issued"
losses
r
are
Henry and ; Eugepe
Henry
was
formerly
in
business ••'in1^ New" Ybrit City IPs
contracts.
an
individual dealer and
was
With
Harvey Fisk & Sons, Inc. and
Dunne & Co. He was recently
SUTRO BROS. & CO
y
ses
Villareal.
Mr.
.
in
been
serving in the U. S. Army
Air,- Forces, ' with the rank of
Colonel, Mr. Villareal
Members New York Stock Exchange
Lieutenant
120 BROADWAY, NEW YORK 5, N. Y.
was formerly a partner in E.
Villareal & Co. of Little Rock.
Telephone REctor 2-7340
Common Stock
union—the joint strategy commit¬
tee will immediately call off the
th
statement
e
L.
Kugef Stone & Co,
Formed in New York
L. Stone & Co., Inc., 20 Broad
Street, New York City, announce
that
the
name
of
the
Members Ncv>
fork
Stock Exchange
BOND BROKERAGE SERVICE
Specializing in: Railroad Securities
UNITED PUBLIC UTILITIES
ONE WALL STREET
^63 Wall Street, New York 5
BOwling Green 9-8120
Boston
Tele. NY 1-724
Member of National Association ^
Philadelphia
Hartford
of Securities Dealers> Inc.
NEW YORK 5
S
'TELETYPE NY 1-2153
TEL- HANOVER 2-1355
co.
y?^
52 wall street
HAnover 2*9072
;
'
n.
y.
c.
5
;
■
h.
Tele. NYl •1293
has
Stone
as
principals.
George
Noakes, Jr., Vice-President, will
he: Manager' of thq U. S. Governrhent securities department, and
Philip. R. Meyer, Vice-President,
will continue as Manager of the
bank stock department.
Mr. Kugel was formerly a part¬
ner in Kygel and Sparks.
« 1 x
GETCHELL MINE, INC.
UNITEO PUBLIC SERVICE
firm
been changed to Kugel, Stone &
Co. with John H. Kugel and Louis
Mclaughlin, reuss & co.
BUDA CO.
1. h. rothchild &
W*;-:";J-
added.
ard Building to engage in the
curities
business.
Partners
•
-
choos¬
demonstration,"
Formed in Ft. Worth
1st
!
AFL-CIO
joint
Viiiareal & Henry Is
'
New York 6
.
4-4933
A.
Cartwright;
an^; the Republican administra¬
tion accept the New York State!;
Constitution
and
recognize the
.
;Adams &Peck
of the
F. of L. and C. I. O. disregarded
the "settlement" and
proceeded
Stein Bros.. & Boyce, Joseph. W. J.
Cooper, W. E. Hutton & Co., E«
Guy Gray and Francis E. King,
Stein Bros. & Boyce.
;
'}y
request
workers'
on;
p.m.
Inter-City
an
that they had the right to belong
to; any union not in favor of strik¬
ing against the public. During the
dispute the city "abolished" 489
open
all
guests,
&
on
the'
on
announced sir
was
requested
are
,by
LeRoy A. Wilbur, Stein Bros. &
Selected Situations at all Times
Circular
it.
Boyce,, is Chairman, of the Com¬ resentatives of their own
mittee on Arrangements whtyh
ing.^ H' ;5
< v;n ^
includes Edward, J.
Armstropg,
"When and if Mr.
Members
«New York 4, N. Y.
Telephone BOwling Green 8-6400
Teletype NY i-1063
,,...-'{'■ V
cqlled a§ a,Jasttresort.;
Si^hCftlY^Mter s2 A.* M.
multaHeoUsiy^b^ the State Fedef-S
and dinner at 7:30 p.m..
PFLUGFELPER, BAMPTON & RUST
\-v,
VR% Vy
Public
Works Deparhh^ht emplcyees. He
declared that picketing was "a
empathy demonstration and not
a general strike," and had been;'
atioii of Labor at Albany, - N. Y.,
BALTIMORE, MD. —The Bond and
City^Mana^er^Louis B.' Cairt^^
Club of- Baltimore "will hold its
wright at Rochester that the dis¬
annual
outing at the Elkridge
pute.had been settled through the
Club Friday, June 7. Reservations
help of Gov. Thomas E. Dewey.
for the event
The Statement said it was agreed
tional "stock
61 Broadway
>;•'u- i. r.V/'.v ,i
unionization'. of
over;
■
Washington
§
SECURITIES
Gendrai Strike
Disregarding a settlement
reached on higher levels, organ¬
ized- labor in Rochester, N. Y.,
held a mass picketing demonstra¬
tion on; May; 28; that halted public
transportation;
crippled several
industries, / closed ; theatres and '
Curtailed hdtel serviqe in that city
of 325,000, states ah Associafed
Press
dispatch, which further
,same;.date
p.m.; tennis, and horseshoe
RAILROAD
l+l;>;
V.**'5*-.'
Vi'.riYw*'
ing^x-y V.r":'1:
Specialists in
c-'i-'i
growth
This, industrial
Baltimore Bond (M
duction is equivalent to more than
Teletype
NY 1>1499
HA 2-6622
industrial
Southeast.
bf
i
■
Southern
years
normal pattern. It is felt in many
quarters that such potential earn¬
ing power would support an in¬
creases in the dividend rate.
ago.
years
;
,
-
period of
old
the
witty
Of
have
expansion
Before allowing for taxes the re¬
Van Tuyl & Abbe
NEW YORK 5
would
has.benefited.to.an important de¬
There
:
than
,
.
Ernst&Co.
for
Rochesferr N,Y.^ in Grip
.was; further stimulated
by the necessities of the war, thus
opening upadditionalnew traffic
sible to. make any reasonable
sources.
Post-war, earnings will adds:
estimates of probable earnings' bf
also be supported by. economies
individual roads. There is still, too
Anthony A. Capone, President
arising from money spent on new of the Rochester
Central Trades
much uncertainty as to when our
equipment and additions to the and
Labor Council, said that 26,industrial plant will go into high
properties in recent years. All fn
650 employees had been made idle
gear. Also the question of freight
all, it does not appear overly op¬
rate increases |s still unsettled. It
by the mass picketing five hours
timistic to look forward to: earn*
after if began at 5 A» M,,v on M^ay
may be taken "for granted thht
ings of at least $8,06 a share once
28 in defiance of a settlement of a
the railroads will get a fairly sub¬
things settle down to a more
stantial increase from the ICC,
dispute with the City of Rochester
As far as the entire
year'19|6
is concerned it is' virtually impose
but at least the major part of any
,
Whether these hopes will he
realized remains to be seen. Much
depends
70 %' below the level
of the initial 1945 quarter.
Also,
it is obvious in view of the
many
strikes of the recent pasf that
some
stock. More important, the reduc¬
tion in charges, through improving
the road's credit, naturally justlfies a higher'
ice-earnings fatjq
Philadelphia Telephone — Lombard 9008
■
*'1
''
.Volume 163
Number 4494
THE COMMERCIAL & FINANCIAL CHRONICLE
Considerations in Selection of Railroad Investments
(Continued from pafe 2913)
the lack of favor in which
those of any manufacturer in the
favor
heavy industries
group. The heavy
hand of Government regulation of
they have been held/ Some/"poor
names'' were rated very highly
the price of the commodity sold
are much closer in line— is,
for
the present,
generally
probably not more than 10 basis shared. Intense competition, ris¬
points in favor of' the
industrial* ing taxes, highly organized labor,
even that is far from
justified. feather bedding and weakening
and some well-known roads made
in the public mind
and in the
market place a* much
higher rat*
ing—more than" 1% in
yield—to¬
day they
™
Remember it is not the bonds of
railroad industry, but of the
the
individual railroads
you
are
con¬
sidering.
Railroads and Capital Goods
Industries
a
or
the fallacy
of using "industry"
figures is to be found than in the
wide variance of wage ratios for
different roads. For the year 1941,
found
we
the
25
roads
under
study, it ranged from 21%
49%; adjusted for indicated
increases, wage ratios
to
from
25.2% to 55.6% of
It was very clear which
were
Bond
for
current
pretty poor showing.
Standards in
that
Postwar Rail
gross.
roads
Purchases
could
best
withstand
a lot of
mystery
thrown around the railroads
that
has obscured what is their
basic
function in the
economy today—
they
are
manufacturing
plants,
primarily in the heavy industry
field—that is to say, their pros-
perity
is
closely
related
to
the
operations of the capital goods in¬
dustries— they
ton
control
management
are
was
,
the
raliroads
the
ICC
facturing these
measured
in
carry
the
ton
more
the
goods
is
your
shining example,
you
can
trains
fewest
profitable
hontas carriers.
is an
miles
and
1
that
assume
will' not" be ' guiltyr
"too little and too late.'r
bf
the
operation—
the Poca¬
What I have said
over-simplification—neglect¬
ing terminal costs, difficulties of
terrain, special services, etc., but
if you
keep the general principle
m
mind, you will never get too
far away from the answer.
Like other manufacturers, rail¬
can look forward to a period
years of what in com¬
parison with prewar years • cari
roads
tor who is
but
it
buying
could
inflow
of
a
40ryear bond,
furnish
cash
to
a
desirable
help meet the
relations
poor
who
came
through with flying colors). The
first reaction to seeing St. Paul
Generals, Rock Island Generals,
Chicago and North Western Gen¬
erals
on
the
casualty list
was
hurt
pride —most
investment officers
could not believe their
judgment
had been that wrong.
As a mat¬
ter of
fact,
of the basic judg¬
some
ment
of mo^t of us was wrong,
relied too much both on the
essential public service performed
we
by. the railroads
as
is
Future Sources of Railroad
'
'
these is the
any
building industry.
in¬
real progress is -to be rriade
As said before, a
manufacturing enter¬
prise and like any other—where
there is aggressive," alert and. com¬
substantial amount of pas¬
traffic, the prospective in¬
vestor
will
clear
idea
wish
of
to
have
a
very
the
management's
plans to meet the future competi¬
tion; from motor cars, busses and
planes and its ability to eliminate
unprofitable pas s e n g e r train
miles.
I
.
have
seems to me to be some of
the. obvious questions that an in¬
vestor must have answered before
a
of past
axiomatic, but, these
to
in
be
enough. For a road
position to meet the
be. well supplied with cash
equivalent,
ing net
so
can
or
its
that periods of fall¬
be
met
with
confi¬
to
Maturities for many years
should be within the nor¬
come
throw-off, and plant and
equipment now on hand or on
make his decision as to the
performance, both operat¬
and
financial, is equally
essential. > ; /
I
ing
Some Rails Still Merit Investor"
Confidence
From
; PHILADELPHIA, PA.—Buckley
Brothers, members of the New
York
Stock
our
attempts
these
considerations
roads,
one
Exchange, announce
Philadelphia
the removal of their
office
to
larger quarters at 1420
Street where they will
the entire third floor. The
new
quarters will provide im¬
proved facilities for the expanded
Walnut
occupy
only tried to indicate activities
what
can
And Larger Quarters
of
the
firm
and
allow
for further growth of the various
departmental divisions.
In
addition
to
,
,•
.
principal
office in Philadelphia the firm
maintains, off ices in New York,
Pittsburgh, Los Angeles, Hagerstown, Lewistown, Hanover, San
Diego and Long Beach, the four
last named have been established
during the past
year.
Their other exchange member¬
apply
to
to
various
conclusion seems clear
ships
comprise the Philadelphia
Angeles Stock Exchanges
and Los
and the New York Curb
Exchange.
to
permit
the most economical operation and
provide the strongest competitive
weapons; Unless a mad can meet
these
standards, it is
as
a
bold man
who would .buy the bonds.
The next set of standards to be
ated in relation to the
changes of
-
;
The second substantial contrib¬
utor
will
all
ever-increas¬
be-the^utpmbbilein^ ing decentralization of industry
dustry. Much has been said about
the, automobile and truck as a
will
there has been the
in
move
in volume.
^
vast
quantities
are, being
built
(
which
the
was
war.
greatly stimulated by
regions have been
New
opened* up pi: new? products de¬
veloped,- such as the vegetable
and citrus crops of Texas or the
soy beans Of^ Ohio and llndiana.
Population has been on the incre ase
bp the southeastern/ south*
western and Pacific Coast States.
looking
over; an r analysis which -we? had
made up in 1931 of our railroad
portfolio.
It was an attempt to
Agriculture, will be ' the ' third Ohvidusiy/some;roads have been
maj of contributor.' If; is*very clear grieat/beneficiajEies;; others i badly
forecast
most continue for several years to
those
situations
which
that
we
have
\
undertaken/• and
hurt.
An important indication of the
competitive strength of a carrier
is its ability to get traffic as com¬
seemed destined for trouble,
The
undertake,, to/supply, a tremen¬
way, things.actually, worked out dous tonnage of. agriculture and
there were all tod 'many instances animal products-and foods to the
pared
of bonds
felt
same;
about
which
we
quite confident which had trouble
and a large number on the doubt¬
ful list which came through, in
good,shape.,(This certainly shows
th£ Value of diversification.)
Out
of
the
rest of the world, y Provided
the
With y others ^serving " the
region. Forriiyjcnyhprirt/1
experience of our
through the un¬
portation service than competitors.
happy" thirties we hope we ac¬ the; millions Who live in agricul¬
Furthermore, with. the aforemen¬
quired some wisdom. I feel there tural areas.
tioned shifts in population and in*
is no need for the- extreme pessi¬
After this happy period, there
dustry over the past decade or sb,
mism of those who would hold no will be times when once more a
the
desirability of building up
railroad bonds nor for the opti¬ ton of freight will be hard to find.
friendlier delations with connect¬
mism of many who, during the past (This is not a
pessimistic predic¬
ing carriers has become all the
few months, thought any railroad tion, but / an
acknowledgment of more
important.
bond -which yielded more^ than the economic,
cycle. >
It is the
2.75
was
a
bargain. Railroad earnest objective Of all of us to
Prime Index of Railroad
bonds have a'place in an institu¬ have our'portfolios in such
shape
Prosperity
tional portfolio, arid a good size that when such a time
comes, our
It has been recognized for a
place, but if we are to avoid some; investments will be confined to
long time that the percentage of
depressing experiences in the fu¬ the strongest roads.
gross that a road is able to bring
ture, the purchase and holding of
We have recently tried to ana¬ down to net
railway operating
railroad bonds iriust be the result
lyze 25 of the major roads in an income over a period
o| years is
of-some highly critical and com¬ effort
to measure their ability to a
prime index of it£ ability to
mon sense analysis.
survive in an economy of high service its debt.
Whether a road
railroad portfolio
Classes of
find this
showing one of the most
important.
In most instances, it
reflects aggressive traffic solicita¬
prices will not only provide an
tion, so highly important in any
outward
movement
of
traffic
from the farms, but create a de¬ competitive enterprise, combined
mand for manufactured goods to with the ability to perform a more
satisfy the wants and desires of satisfactory and. efficient trans¬
weather cycle continues favorable,
a high ^volume of sales at
good
Group Securities, Inc.
Prospectus
on
Request
JJnderwrjters and Investment Managers
,
Present
Problems
of
Railroads.
Today, less than ever, is there
any reason
to feel that the funda¬
prices
and intense competition—
always having in mind the proba¬
bility. of some period of sharply
restricted business.
The indicated
can
continue
a
good
percentage of gross required for
mental problems which confront outlook for
some of the roads was
wages and, second, its joint facil¬
a railroad are very different from.
in startling contrast to the
public ity expenses**,No better proof of
DISTRIBUTORS GROUP
INCORPORATED
NEW YORK 5, N. Y.
53 WALL STREET
Sales'Offices
showing in
the future relates very closely to
two items of expense—first, the
BOSTON
/ f
their
.
while automobiles
Several years ago I was
a
overcoming the. vast; deficiency population and . industry which
housing the; ;COuntry, there have beep quite marked during
must be'a .tremendous volume of the
past 10 or15 years. Specific
heavy^. commodities moving over example^ of the shift of industry
thb'ir'ailrpads. This- will include are to be found in* the shift of
lumber^ gravel, sand, cement, textile pmductiorifi^rii/NewEri^
brick, refrigerators,'; ranges; sani¬ lahd td the/South- or the shift of
tary fixtures, plumbing, heating bituminous coal production from
equipment, hardware, etc.
This northern mines to the West Vir¬
source of traffic could be fairly
ginia; and Kentucky fields,
In
long-lived.
J
■■
:Vr.«d addition to such wholesale shifts,
in
,
were
lie ahead.
railroad is
in
assurance
competitor, but it is also a great
.adequate rates ^|md* fair^com^ benefactor. .The hrial^ iron /cure;
petitive condition^ and on .the finished iron,and steel/ aluminum,
strength of so-called underlying copper, glass, lead;; cotton, etb.y
<
may
If applied is. how the road,,is situ¬
an
bonds in situations that
a
senger
desirabUty of a railroad bond. A
searching, analysis and evaluation
are
order should be such
of
herently weak. ?;
confidence—
.
of roads which still
not
almost
mal cash
rates
have
case
tion
adjustment. of
railroad
In the
he
dence.
.
the
done
inflow of cash
money Y has
that and the great
prospective rapidly rising costs,
provided some reasonable upward
••
that^sb^many highly
investor
the
has made substantial debt reduc¬
difficult periods- ahead, it should
comfort for the inves¬
range
Tonnage
fell during the thirties and early
forties was only in part due to
There would appear to be three
the wave of
bankruptcies—after particularly large sources of ton¬
all,' billions of dollars of railroad nage for the railroads during the
investments came
through un¬ next several years. .The first of
was
charges-^easy
interest
reduce
long
granted.
regarded bonds went into default
(few talked or have talked about
to
alone
great abyss of investment
disfavor into which the railroads
phased
roads
be considered a most satisfactory
volume of business.
This is not
The
scathed. One of the most
unhappy
During the past few years it
required no great effort for
has
most
by train miles—in other of several
words, the
more
net
merit
others may have an unhappy time ;
in some of the
dark days that
In
no
extraordinary.
Based parently highly prosperous roads
on
the record of the past, there found themselves in great diffi¬
is every reason to believe .that in culties in the early thirties from
the future a ; well-managed -road three weaknesses which were not
will meet its problems in as sat¬ appreciated prior to; that time:
isfactory a manner as say a well- first, lack of working capital and
managed-steel company. I. might cash resources; second, heavy ma*
add that just as the steel compa¬ turities;
and third, obsolescence
nies required price relief so do of plant and equipment.
rates
net
goods to handle, shippers buy net
ton miles—the
expense of manu¬
will
of the
miles-f-by giving: J;he railroads
manufacture
me, namely/that without any
attempt to minimize the problems
which' lie ahead, some rail credits
petent management, a sound fi¬
considering ..the desirability impact- of. the indicated heavy nancial structure; a modern, eco¬
wage
increases.
Joint
facility nomical plant and a good territory
purchase of the obligations
longer a railroad monopoly. While
it is true • that the tiriie lag of of a railroad today, the first point costs must of /necessity increase served—you have the opportunity
adjustment to Higher costs is con¬ to be considered is just what that sharply in any period of rising for a sound investment.
siderable, the ability of ;the rail¬ road did with its wartime pros¬ prices and wages and -they may
roads in i the
We are particularly in¬ well prove the cause of some fu*
prewar years
to: perity.
ture financial readjustment.
absorb
Buckley Bros, in New
rising costs and lower terested in this because many ap«r
of.
.
There has been
to
CHICAGO
SAN FRANCISCO
ATLANTA
mz
THE COMMERCIAL & FINANCIAL CHRONICLE
U. S. Government Bond Market
Why I Voted Against Truman Anti-Strike Bill
px escribed
(Continued from first page) ;
The Bill was not presented in
printed form. Only mimeographed
copies of 4 were ' available,
of
which there were not enough to
by the President," any
employee, officer or v executive
"wno has failed or refused, with¬
out the permission of the Presi¬
dent, to return to work within 24
was sometime after
the measure was under considera¬
tion before I was able to procure
hours after the final effective date
ple.
of his
would
go around. It
a
copy, No Committee action was
had on the proposal. The members
were not afforded an
to see it until debate
opportunity
started.
was
It was
precipitately thrust upon
the House in what appeared to be
a dramatized
setting of a momen¬
tarily impending national catas¬
trophe. It was solemnly urged
would,
their
National
a
relative to the
erations.
own
put
unions
merits. This would,
type of
in
create a much higher
unionism and provide a
finer service to the
working peo¬
of such an Act
The passage
be nothing
reaffirmation of
emergency
more
than
a
of the basic
one
This
is
Hitler
,
-
the
kind
evoked*
the United States.
.
The
of
measure
technique
used
that the Nation has taken another
upon us that the threat
could be a concentration camp by another long step in the direction of dic¬
only by suspending the rules, name?
tatorship. <; Accordingly,
I
was
prohibiting amendments and ram¬
This Bill would -vest in the compelled; to cast my vote against
it.
ming through the President's pro¬ President the dictatorial
power to
posal in the brief space of forty fix the
wages of employees of all
minutes, which was insufficient seized plants. The use of this au¬
time for; acquiring a reasonable
thority would, in- general, hffect
Understanding of its contents and wages in all .other industries. <
met
,
Spragae Re-Elected bp
implications.
,
NYSE Beard ef Revs.
The claim that this is only tem¬
v>
There
was
absolutely
no
valid
before he had finished his
address
the
tb
Joint
'•
^
iU-'-H
porary
ground for this Unusual and dic¬
tatorial act. The President was
aware
>;
legislation
should : be
The Board of Governors of the
promptly discounted. It is New
New York Stock Exchange, at its
Deal
"emergency"
legislation,
organization meeting, following
which means that it-is permanent
the
annual
election, re-elected
legislation.
Raymond Sprague as Vice-ChairFurthermore,
the
President's man of the Board. Mr. Sprague
proposal is not something that can has been a member of
the, Ex¬
be put into operation and later
change since December, 1918; was
repealed like, say, prohibition, a Governor from 1929 to 1938 and
A Dictatorial Act
of
Session
Congress that the railroad strike
had
ended, as he interpolated a
message from-Mr. Whitney to that
effect. The acute emergency had Once this proposal is enacted into has been Viee-Chairman
since
passed^ There was time for delib¬ la\jr and put into operation, it be¬ 1943. He is a partner of Raymond
comes
permanent by virture of
eration. At least a few hours
Sprague & Co.
■
might have been given the House; the peculiar forces which brought
The Board re-elected as Gov¬
it into being and by its own mdto study the measure.,
!
ernors of the Exchange represents
mentum. Furthermore, like every
This Bill" gives' the President
other authoritarian machinery, it ing the public John Q. Adams and
profound and sweeping dictatorial
Mr* Adams is
will progressively acquire - more C.) Robert Palmer.
powers. Ho is authorized to seize
a director of the Central Illinois
any plant, mine, or facility that he power and extend its operations. Bank & Trust
Company of Chi¬
,
-
.
a
vital.
or
substantial
part of
ah
essential
which is strike-bound,
industry
or £where
ai strike is
threatened, or which is
sheeted by any kind of work
stoppage.! This, in effect, .means,
that the President could seize al¬
most any plant and he <?ould do
this for political as well as eco; nomic
purposes.
We have the
Montgomery Ward case.
'
"
Akin to State Socialism
The
The Right Measure
•
Legislation is indeed needed to
cope with the spreading strife
tween labor and management,
not this kind. There is
one
be¬
but
basic
law
that must be placed on the
statute 5 books before our nation
ever hope; to put an end to
the strife between employers and
can
,
,
Pass
Federal
a
""
'
of
Withdrawals during
this period
little for, as war loan
deposits were drawn down as the
Treasury paid its war bills, the
funds found their way back into
meant very
circumstances
or as a
The
the war
financed
fortunate that the occasion
the
form
reduction
in
of other
these
posits would be offset by
de¬
in¬
was
which necessitated
to
be construed
solicitation of
as an
an
offering of this Stock for sale,
offer to buy,
any
or as on
of such Stock.
offer is made only by
of the prospectus.
means
New Issue
an
commercial
'
arose
f
;
our
de¬
two? How large are your earn¬
ings? Do you have a substantial
profit in your bond account? Have
you realized on these profits by
inspired switches from one Gov¬
ernment holding to another? Even
those who doubted the soundness
or
yield. This was not neces¬
sarily the highest day in the Gov¬
2.12%
market
bond
ernment
were
the
not
generally recognized at.
These
outset.
the
were
an¬
nouncements
has
trend
downward
been
and
change in the positions of tee
increasingly
interested in their bond holdings. Treasury! nnd tho 'Reset^bank^
in their market policies was the
Bond
accounts have
become
a
matter of greater importance
questions
on
have
profits
subordinated to two others:
first,
decline
and,
what
the
caused
second,
how
it
will
far
go?
Strangely enough, the answer to
the
and
will
it go
been
pretty
well
covered by a recent
statement of
Federal Re¬
In
Board.
the
per
following
shall
During the war it was in the
the
in
discuss
some
effect. We
of
few
a
them
briefly.
Rate
Reserve
various
the
Recently
Banks
Federal
eliminated
the
%% preferential discount rate on
one-year or
which
war
shorter Governments
instituted early in the
was
to
timid
induce
The
restoration
rate of 1% made it
borrow
buyers
to
the Government mar¬
into
come
interest of the country and neces¬
sary
on
of
the
old
unprofitable to
one-year
securities and
possibly distrubed the market
operation of deficit slightly/ This change in rates was
some' inflation of a logical move, however, as most
financing that
Share)
bank
deposits be permitted at the of the conditions that necessitated
same
time that other prices, such
as
PRICE: $3 per Share
of. commodities,/ were
those
being strictly controlled. Now that
the
war
is behind us, this pattern
is changing.- It
intent
of
ment to
J. F. Reilly
v
Incorporated
-
&
?;
difficult Ending the Preferential Discount
(at least the exterme
has
limit)
work which had
how far
to
answer
j
and underlying cause of tee decline.
been There were also minor forces at
ket.
COMMON STOCK
(par value $1
;
bankers have become
of these matters.
Corporation
return in
points some
Changing Pattern of the Market
Plastics Materials
no
of other deposits. Thus
other
as
there is
case
the way
their
reached
had
serve
99,900 Shares
In this
these losses of deposits resulted in
high
a loss of bank buying power in
time before* But it
the Government market. One can
can bb looked on as a. milepost
for, since that time, the market see, therefore, that this basic
issues
paragraphs we shall discuss both
:
;
doing any
financing for war. By and large, ^
posits. As a; result^ the demand the Treasury did an outstanding; I
lorced bond prices up and by the job during the war in raising vast ? ?
same/ token interest/ rates
fell; amounts of money at low rates, :
Bond portfolios increased to and it ^should ^celve' full credit
'
double and triple their prewar size
and earnings and profits soared,
Going back to the change in the
! During this particular era, when
pattern which has taken place
bankers met, they asked each since the first of the
year, it is in¬
other some of the following "ques^
teresting to see that tee first steps '
tions: How much have your de¬
taken, which were ultimately to
posits increased in the past year play a part in the market
decline,
:
their
in
crease
the Chairman of the
May 24, J 946
•
that too much of3:■
fact
that
the
in
banks
one
offer to buy,
ward .< the
deposits. Hence, most banks in¬
vested a good part of their war
ban deposits knowing full well
what caused it, is not a
no
of, financing V
have directed their criticisms to- '
by deficit
financing and too little by taxation. That is a question which will
be
debated
for
a
good many
years. Naturally it is too bad that
it was not possible to finance a
greater part of the war through
taxes just as it was even more un~
i—
This is under
of; those dissatisfied with the
*
Treasury's 1 policy
the
<
fe
Act
-
,
in the
mand.
On April 6th of this year* the in deposits to a point where some
DALLAS, TEX. — Crummer &
Company^ Inc;*of; iTexas^Kirby ineligible 2%s of 1972-67 which of their Government holdings had /;
which will guarantee! to every Building, has opened a new cor¬ were sold in the Victory Loan to be sold* Wat Loan deposit; wite^ U
>
and trading department Drive reached a high of about drawals which /retire bank-held
person in the United States the porate
under the management of G. Stan¬
*
106%, which is approximately a debt are lost to the banking system.
right to work wherever he pleases,
employees.
life (and re¬ employers. Until this unholy com¬ Broadway, New York City, mem¬
placing it with state capitalism.
bination is broken up and de¬ bers of the New York Stock Ex¬
The President would be empowstroyed there can be nor hope for change, will admit Edward L.
G^ed to force into the Army "at
peaceful relations between labor Jephson to partnership on June
fflich time, in such manner (with and management. This would not 6th. Mr.
Jephson will acquire the
©r without
oath) /and on such affect any fair and equitable prin¬ Exchange membership of William
Tms and conditions as
may be ciple of collective bargaining.
It
way
this de¬
creation of
tors
\
'
Opens
New Trading Dept.
measure
empowers
the at whatever
wage he can agree ley Metcalfe. Mr. Metcalfe for the
to
capture
the
net
upon with his employer, without past three years has served in the
profits of corporations which have
U. S.
Army with the rank of
having to pay tribute to any one.
accrued
during the period of Such a law would have the effect Major. Prior thereto he was with
seizure, This clearly embraces the
of eliminating both corrupt pol¬ thebond department Of ;the;Firsf
principle of confiscation of pri¬ itics and
National Bank of Dallas.
irresponsible union lead¬
vate property and state socialism.
ership from the field of enter$0 doubt this will be
encouraging price. These forces are accountable
to those who believe in abolish¬
for
ni^e-tenths of all the trouble Boody, McLellan to Admit
ing; the
Constitution >;' and « the
i
laboring people have with their
Boody, McLellan - 8t Coi^ lit
American
creases
Crummer & Go.
President
-
which helped, but the in¬
in war loan deposits and
reserves were the important fac¬
course,
'
quite evident that inflationary forces might very well get
out of hand if the war policy of
the Treasury of higher prices was
kept in force in peace at a time
when other prices are rising. Most
comes
by the Treasury of
the retirement /out of funds on
?
hand of $2% billions of bonds ma:
turing In March of this year, and
the' payingi bff of $2 billions of v
of the program cashed in on < it. the
April
certificates. - The /
Bankers; g e n e r a l l y - made no mkfket was hoL
immediately
special study of the forces behind fected by this news. As it became
the Government market or increasingly apparent, however,
worried about the ultimate out¬ that
the Treasury would use its
come.
It was generally accepted
cago and Mr. Palmer is President
large balances, built up through
that the market would move in sales of bonds in the
of Cluett. Peabody & Co., Inc.
Victory Loan
the one direction — upward. This
Drivento nay off maturing; bonds //
is a brief and inadequate picture
and certificates, security holders; z
of the United States Government
began to realize that an under- - '
market situation in the years of
lying change was taking place.
;
1942 through 1945 but is sufficient Bankers saw that such retirements
•
for our purposes at this time.
wore bringing about a -reduction/
.
considers
peak of about $92 bil—
lions. There were other factors; of
a
The Spiral of War Loan Deposits
President to force this
President
The
earth. What is this but Siberia or
.
reached
interruption of op¬ principles of the Constitution of
,
by
the
legislation
would have the power to induct through Congress is the technique
such persons into the Army and used by all dictatorship builders.
condemn them to the jungles and In my judgment, the enactment of
deserts at the far ends of the this proposal into law will mean
-
(Continued from page 2916)'
on
the long run,
proclamation", of the exis¬
tence :of
however,
Thursday, May 30, 1946
Co
,
is
no
the Treasury
and
to
of course,
balance
other markets,
in the first
some
|The
place, had disappeared
time before.
'
recommendation ~l of t the
executive council of the American
Depart^ Bankers Association and of the
permit inflationary forces
to work in the bond
hopes,
longer the
the establishment of the % % rate
Federal Reserve Banks teat com--
market ras; it mercial banks review their, loans
to retire * debt against securities bought in the
budget. - In last war. bond drive, probably'
the
such as commodi¬ brought about
ties, concessions are being,
made
■and/prices are now rising.: It ,be-
ther. selling
some
by
selling. Fur-i.
stalled "riders
may ;.be :e x p e ct
.
:
ed;as>teefii3^ a
^Volume
{* THE COMMERCIAL & FINANCIAL
Xv';> Wtf.
,ji
months
holding period affecting
taxable profits passes. When weak
holders get out of the market,
there is no fundamental change
but
;to
such
a
adds
move,
somewhat
weakness already in evidence.
Then a technical market condition
.also may have added to some of
a
the
confusion. Early in the war
dealers in Government securities
entered into
ment
with
Bank
of
gentleman's agree¬
a
the
Federal
New
York
market fluctuations
Reserve
to
confine
U. S. Gov¬
on
ernment securities to
eight thirtyseconds of a
point during one
day's trading. There was a logical
reason for this as bad
over-night
news during the war
might dis¬
turb
the
markets
Federal
Reserve
unduly
before
authorities
and
!sl
>'_■
'V.g
Vv,.V f,-*vv n'CV.-i
^
days. In
given at
a
Bankers
Association
y
unscheduled* speech
an
meeting of the Illinois
in
Louis
St.
May 2nd, Marriner S. Eccles,
Chairman of the Board of Gov¬
on
of
ernors
the
Federal
Reserve
System, said that he could
see no
change in the future in the % %
rate for short paper and the 2^%
rate for long-term Government
obligations. "That is the pattern,"
he stated flatly. Since the Treas¬
ury has indicated its satisfaction
with these
rates
same
earlier
on
CHRONICLE
should
be
improvement
some
the country gets
once
back
on
high production basis. There
one
or
banks
two
draw
can
from
sources
a
a
which
higher average
yield- than
from ;: their
present
bond accounts. We do not include
in these the purchase of long-term
corporate bonds
believe the
as we
market risk which is present far
outweighs
come.
is
somewhat higher in¬
a
The first
refer to
source we
to maintain such
powers
seems logical for bankers
to accept such statements at their
face value.
the
loaning of money for the
financing of purchases and sales
gages.
Bankers
are
entering
the
financing field in large numbers
attracted by the glowing reports
of other banks who have found
this
The pattern of 2Vz% on longTreasury could step in to re¬
aetiVity most profitable.
orderly trading. After the term Government bonds does not, There can be no doubt that ex¬
war, however, the need for such of course, guarantee the levels perience up to this time has be&i
store
a
restraint
became less
Important.
Two
and
less
three
weeks
? ago the
Government market was
under pressure and sold off its
full limit of a quarter of a
or
point
almost every day. - It was natural
that dealers, being uncertain as to
what the actual market was for
the
bonds, should withdraw their
today's good. To state that this phase of
banking is productive of profits
with practically no risks, how¬
ineligible 2V2S of 1972-67 are sell¬ ever, is probably an over-simplifiing about 103 as we write this, to cation of the picture. Bankers will
give a yield of approximately need more experience under de¬
2.30%. At such a level the 2^% pressed economic conditions be¬
rate gives no protection against a fore a full appraisal of this com¬
further decline but indicates that paratively new source of income
which
prevailing
are
in
market*
It simply puts a bottom
level of par on these bonds. The
bids. This development,
however,
which might have led to serious
tain
consequences was corrected by the
lower
simple expedient of removing this
limitation. Immediately following
the removal, the market broke
rather sharply but before the day
was out, much of the loss had
bonds, while of great interest to
commercial bankers, are-^except
in an academic way—of no im¬
portance to the Treasury, as it has
received only 100 cents on the
dollar in its financing. From a
practical
standpoint,
however,
bankers have reason to believe
that the Treasury and the open
been
recovered
and
since
that
time somewhat more stable condi¬
tions have existed in the market.
V
>,
«
.
,
.
f*,
'
,
*
j
)
■,
*
"C"''' *
'l
'•
Future Treasury Policy
We
:
have
reviewed
the
as some
of the less
important
causes. It is clear that the
philos¬
ophy of the Government so neces¬
sary
during the
war
—
that is; a
sponsored increase in deposits and
reserves
has been replaced in
by
peace
the debt
effort to demonetize
an
through the retirement
primarily by banks.
of bonds held
During this year it is indicated
that the Treasury will continue
its policy of retiring debt through
use of the excess funds it re¬
ceived in the Victory Drive. Using
Premiums
par.
committee of the
market
basic
reason for the downward trend in
U. S. Government bond prices as
well
the Reserve Board plans to main¬
the market at a price no
than
hindsight, it is reasonable
Federal
the long-term issues. Although no
further financing is expected this
year,
it is quite certain that
some
is
While
the present
discussion of
on
no
future financing is planned here,
it does appear that, when the time
comes to raise more money, that
the
financing will be directed to
buyers other than banks.
light of conditions
In
the fall
the
as
Mr.
they existed
of
1945, no one was
able to predict what is happening
While
the Treasury is retiring
debt through the use of this large
windfall surplus, it is not accom¬
Eccles, in his talk in St.
said some other things
which are of interest to bankers.
He pointed out that as of May 1st
The trend toward
level
and
the
a
lower debt
possibility
of
a
balanced budget next year should
receive increasing attention
from
bankers. It is
hoped that the bud¬
get will not only be balanced but
that taxes will be kept at a level
there
where
will be
a
sufficient
amount received to pay off
excess
large block of Government obli¬
gations. It will be unfortunate in¬
deed if bankers, who in the public
a
have
been
witnessing
are
—
from
banks.
difficult to believe that this
a
conservative
of
vesting funds at higher yields and
banks
must
placements
seek
for
out
be
to
outlined,
re¬
some
their
losses
of
bona income. But all markets
are
must be exercised.
care
Lower bank earnings are a better
choice than principal losses.
The following is a summary of
This is under
he predicted,
of 1946 another
bonds
well
1.
which
we,
-
Harold Elected Pres. of
the
Federal
pumping
into the
Reserve
deposits
Banks
and
Raymond
of
and
banking system has been
abandoned for
a
Federal
give
assurance
Reserve
on
Savings
Worcester,
May
17
elected
Savings
League, trade organiza¬
tion of the thrift and home finan¬
cing business, at the third annual
convention of the
League, held at
Chicago, at the Edgewater Beach
rate
one-year Government obliga¬
tions and the 2V2% rate on
Hotel.
long-
Mr.
the
was
term Governments will be main¬
tained. '
'
Harold the past year
Vice-President of
first
he League. The two
,
Vice-Presi¬
full
dents elected May 17 were Curtis
F. Scott, President of the Guar¬
of support to the present
anty Savings and Homestead As¬
.
Bankers
measure
policy
was
and Loan
on
3.
President
1 President of the National
to¬
authorities
that the %%
League
Harold,
Loan Association,
Mass.,
peacetime policy
Statements by both Treasury
and
P.
of the Worcester Federal
reserves
of retiring debt and
working
ward a balanced budget.
2.
Nat. Say. & Loan
primarily because the war¬
policy of the Treasury and
time
should
give
reduction
of
a
debt
sociation
of
New
Orleans, La.,
balancing the budget is inherently who moved up from the Secondsound."
Vice-Presidency; and James.J.
4. The Treasury will continue O'Malley, President of the First
as
and
Federal Savings and Loan Associ¬
ation of Wilkes-Barre, Pa.
John
its present policy of war loan de¬
posit withdrawals to retire Gov¬
ernment debt. To be
side, banks should
S.
the safe
on
prepare
loss of this entire deposit by the
5. So
M.
of
Glidden
of
Natick,
Mass.,
re-elected Secretary.
was
for the
middle of next year.
Part of the organization's Board
Governors
was
elected this
,
including W. J. Bowman,
Albany, Cal.; James Fitzpatrick,
New London,
Conn.; J. Clynn
Ellyson, Hammond, Ind,; D. A.
other sources of income. A reduc¬ Willbern, Coffeyville, Kan.; Irvin
tion of bank income, however, is H. Schonberg, New Orleans; and
Mahan,
Whitman,
preferable to increase in risk Howard ; E.
far
as
banks
are
year,
con¬
cerned, war loan deposit with¬
drawals will keep money tight.
Search must be made for some
.v
an
no
either
in
loans
long-term Mass. Re-elected
Ellingson, District
in
or
corporate securities.
Maurice
4%
were
below
March but
16%
Carl
were
April,
1945,
states
the
"Rayon Organon,"., published by
the
Textile
vention
Economics
Bureau,
Inc., whose report issued on May
10, also said:
"April deliveries of
1%
were
below
over
year.
"At the end of April producerheld stocks of rayon amounted to
11.400,000 pounds, an increase of
3 % over the March level."
1
for another year under two-
derhead;vSeattle; Wash.; arid Allen
R.
Calhoun, Milwaukee, Wis.
be construed as an offering of these securities
for sale,
solicitation of an offe* to buy, any of such securities.
The offer is made only by means of the
Prospectus.
to
or as
The Bingham Stamping Company
100,000
5%jCumulative Convertible Preferred Shares
(Par Value $10)
bank
must now decide how it can best
Price $10 per
first, meet war loan deposit
withdrawals and, second, what
Share
Copies of the Prospectus may be obtained from only such of the under,
signed as are registered or licensed dealers in securities in this State*
be
on the safe side a bank
prob¬
ably should figure that all of its
war loan deposits will be
gone by
national debt, now hesitate to go the middle of next
year. The speed
along with the program of the at which the
Treasury will re¬
Treasury because they see some deem bonds will be
subject to
profits fading away in their bond changing conditions but conser¬
have stood for a balanced
budget and a reduction of the
press
accounts.
How
vatism
Far
Will
Decline
Go?
range
way
Now that
we
have discussed the
of the decline this year in
causes
dictates
based
on
changes in the next few
a
bank
ar¬
Wm. J. Mericka & Co
Incorporated
Straus & Blosser
«'*'»
r
1'
v
investments in such a
that it can meet war loan
calls with
minimum of disturb¬
a
*
*
'
Dempsey-Tegeler
K -/V $
i
j
Moreland
r
1
j
f
Offsetting Government Deposits
While
it
believe
seems
that
too
there
optismistic
will
be
1
& Co.
!v:5-
Wm. C. Roney & Co.
\
-'fh'
\
',l
,
i
war
loan
5>*■'
/
t
Gottron, Russell & Co.
Co.
B. V. Christie & Co.
•
^
'
*
\
f.
Vy.-;
'
,
Bradbury-Ames Company
Incorporated
.
..
.
■
•:
•
'
*■:x*-:.'■ ir
Green, Erb
&
Co.
Incorporated
a
growth in other deposits sufficient
to offset the loss of
*
v**
'
&
^Incorporated
J
ance.,
to
'
its
market
prices, we come to the
question of how far the decline
will
go.
We
are
thinking, of
course, in terms of market action
over the next several months and
we
are
not making predictions
that
there
•
an¬
holding
or as a
—
con¬
Westfield, N. J,; IL D. O* Ham-*
mond, Roswell, N. M. Franklin
Herdeg, Gowanda, N. Y,; Dink
James, Greenville, N. C.; R, O.
Hoiton, Dayton, O.; L. C. Pollock,
Oklahoma City, Okla.; J. Douglass
Dole, Pittsburgh, Pa.; J. Bertram
Watson, Providence, R. I.; E. E.
Shelton, Dallas, Tex.; S J. Cal-
Domestic deliveries
600,000 pounds, an increase of
12% over deliveries in the same
circumstances
offer to buy,
The
votes
Hattiesburg, Miss.; E. H. Busiek,
Nevada, Mo.; J.v Alston Adams,
of rayon for the first four months
of 194-3 have amounted to 280,-
period last
the
year terms are: J. Frank Brown,
rayon yarn
while staple fiber shipments de¬
creased. 12%,
results.
Members of the Board
March level
the
the
approved
nounced.
NEW ISSUE
steps it may take to offset losses
in earnings which result from the
liquidation of an important part
of its bond holdings. In order to
H.
of
E.
announced
above
retired
each
2933
The market has declined this
year
up
for the loss of income in their
bond accounts,® there is trouble
ahead. There are ways of rein¬
the .Chairman of the Federal
Reserve
Board
and
with
the
amount
are
many good real estate loans but
if bankers now depart from sound
of
quite
was
There
one.
Also,
that by the end
'
Columbia;
Vasen, Quincy, 111.;
and Frank Sweigart, Newport, Ky.
April Rayon
Balloting
was
conducted
by
mail prior to the convention un¬
Shipments Down
der the supervision of the Elec¬
Total
domestic
shipments
of tions Committee headed by Ar¬
the rayon in April at 72,300,000 pounds thur G.Erdmann, of Chicago, who
risky. Recently newpapers carried
a
story of a piece of property
which had sold at about
$26,000
four years ago,
being: resold at
$55,000 this year. The interesting
part of the story was that a bank
this year, $6 billion, 400 millions
of the piiblic debt had been retired
and that $4 billions of thjs came
$8 or $9 billions of bonds held by
plishing the real deflation which banks and $2 to. $2 ^ billions Gf
we associate with a balanced bud¬ securities held by the Federal Re¬
get where excess tax receipts are serve Banks may be paid off.
used for this purpose. This is in¬ Buyers of bonds other than U. S.
creasingly apparent when one Government's will be interested
recognizes that in the short period in a statement he made that
since the completion of the Vic¬ private interest rates better ad¬
tory Drive, only, a small part of just themselves to the Federal
funds
raised
could
have
been pattern as he warned "That's the
monetized and gone into the hands pattern we're going to hold."
of the public. The most encourag¬
With
short and long interest
ing aspect seems to be ahead of rates established
by this statement
us.
we
high and
Mr. Eccles' Attitude
Louis,
necessary, However, in
gg
.
period of sharp price rises which
sell TVz s if there practices in lending to make
premium
some
issues.
we
in 1947 and it will
be easier then to
to
now
whether
was
Real Estate Loans
All bankers recognize that real
estate loans — especially after the
will, under all con¬ made a loan of $37,500 to
ditions* prefer to maintain the buyer. Going back over the his¬
market at somewhat above par on tory of real estate loans, it is
Victory
question
possible.
on
the
Drive
is
Reserve Banks
shall s'ee
gig
points
have covered:
the
consumers'
and,
since
both
the of
goods,
and
the
Treasury and the Federal Reserve second is an extension of activities
System are endowed with sub¬ in the field of real estate mort¬
rates, it
the;• principal
are
occasions
stantial
'
^
May 23, 1946
£
Thursday, May 30, 1946
MwtortWteSN
Lee M.
Limbert, Blyth & Co., Inc,
W.. Manning Barr, Burr Bros. &
Co., Inc.; John
Moran,. Irving Trust Co.
Joseph Nye, Freeman & Co.; Albert Randall, Jr,
mm mttrnm
Lee Carroll, John B, Carroll *&
Co., Newark; A. Glen Acheson, Lazard Freres &
Co.; Harold MacDougall, Georgeson & Co.
V
.
-
J. D. White, J. G. White &
Co., Inc.; H. S. Krusen, Shearson, Hammill &
A. D. Converse, A. C. Allyn &
Co.; H. C. Ballou, Doimlnick & Dominick.
P. W. Brown, Smith, Barney & Co.; Grover
O'Neill, Grover O'Neill &
Devlin, Blyth & Co., Inc.; Scott Russell, Glore, Forgan & Co.-
Co
Co.- Paul
J. W. Wolff, Newburger & Hano; Gail Golliday, Stone & Webster Securities
Corp.; S. R. Reed, Paine, Webber, Jackson & Curtis; J. Taylor Foster, Lee Higginson
Corporation; J. W. Valentine, Harris, Hall & Co. (Inc.)
A. G. Joyce, Craigmyle, Pinney & Co.; J. S. Rittenbaugh, Goodbody & Co.; E. B
Vinson,[Hallgarten & Co.»
>,*
\ 5
*
^
Howard Murfin, Dor emus & Co.;
Jr.*Doremu$ <SlCo*
-
-
-
John Broderick, Dor emus & Co.; Wm. H. Long,
^
v.-„
.
-
iVolume 163
Number 4494
•'*.
,
At
Eli T.
& Co.
#*',•
k*!
.
Sleepy Hollow Country Club, May 24
Watson; Benjamin Seigel, Hay den, Stone
:
Frank
A,
Field Day
Willard, Reynolds
Committee/.
&
,
Co., Chairman
J. A, 4e
Camp, Penington, Colkei & Co.; Jack
Arrowsmith, Edward A. Viner & Co.
,
*
■
mmm*
V.
\*:*h
2
'.•?
J. A, Davis, Reynolds & Co.; A. D. Lane, Chase National Bank
of the City of
New York; Hori. Frank L. Sundstrom,
Burton, Cluett & Dana, Rep. 11th District of
IV. J.; Chas. L. Morse, Jr., Hemphill, Noyes &
Co.; Richard de la Chapelle, Shields &
Co.
\
;
son
E. tD. Boynton, Hi F; Boynton & Co.; Frederick S.
Robinson, Frederick S. Robin¬
Co.; H. A. Bradford, Calvin Bullock; Richard C. Noel, Van Alstyne, Noel<Ote.Co,
&
[Av
''*}'
..
»'
•'
~k'
•!
v
j.1'*
i// ^ t'*4*
'
*'
*
v*
VW>k&&yi
Carl T.
Naumburg, Stem, Lauer & Co.; C. H. Liebenfrost, Stern, Lauer & Co
Paul L. Sipp, First of Michigan Corp.
^
Emmett Lawshe, Shields & Co.; Mat Hall, L. A.
Mathey & Co.; F. D. Arrowsmith,
Arrowsmith, Post & Welch.
4
Edwin M. Bulkiey, Jr., Spencer Trask
R. I. Clark, Spencer Trask'& Co.
'& Co..;Geo. E. Clari^
Express'Co,
Ri W.-Bressprich, Jr., R. W.
Pressprich & Co.; Orrin Leech, Estabrook & Co,
Robert J. Lewis, Estabrook & Co.
•
,
\
Thursday, May 30, 1946
*■•>***■'
•
^
^
,
'>
v-."
—,
(
' ;r
•
v
-.«/
4
.
\.
>
Ji
.,
}
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«k'
't.'V
i'v
;.^vV'n,
-v
« «,
,v
S'v
SVI
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'•
"V'
i',
'■*'*
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l' S \
f r''
**
'•*"<
M'
' '''
;C ' 7 '
°*r
T ,'*.'*•!* 7
tH-' *'
„»
More Than 500 Members in Record-Breaking Attendance
r
'W
Frank Gernon, Carl M. Loeb, Rhoades & Co.; W,
Murray Lee, Hannahs, Ballin & Lee.
Robert
W.
G. A,
Fisher, Blyth & Co., Inc.; Ed. Glassmeyer, Jr., Blyth &
Eberle I. Wilson, Merrill. Lynch, Pierce, Fenner
Harry C. Clifford, Kidder, Peabody & Co.; W, H,
McLeod, Young, Weir, Incorporated.'
Alexis^on, Hornbloyoer & Weeks; Edward
& Co.
K. Jarvis,
S. Johnson, Wood, Gundy
Co.) Inc.;
& Beane.*'
F. M.
Grimshaw, Barr Bros. & Co., Inc.; Thomas S. Evans, Lee Higginson Corp.
Chester A. Atwood, L. F. Rothschild & Co.
Jo M. French, Blyth & Co., Inc.;
.
••*>
a£.T2;.-
:
V
Moffatt Ames,
Kidder, Peabody & Co.; Amyas Ames, Kidder, Peabody & Co
Witter & Co.
Austin Brown, Dean
Glore, Forgan & Co.; Elmer F. Deickman, Glore, Forgan & Co.;
Jr., R. W. Pressprich & Co.;E.uNorman Peterson, Equitable Securities
Corp.; Ernest J. Altgelt, Jr., Harris Trust & Savings Bank.
Scott Russell,
John J. Clappj
E. K. Van
•1
;
Home, Stone & Webster Securities Corp.; O. K. Zeugner, Stone &
Webster Securities Corp.;
David Lewis,
Will Price, Stone & Webster Securities Corp.
Paine, Webber, Jackson & Curtis; R. G. Dillon, Dean Witter & Co,
Bosworth & Co. ::>:V J-W
J; D. Topping, Braun,
TTiriTiifl"
^Volume 163
^6mber^494
First
Outing of Club in
''''• f
Henry L. Harris, Goldman, Sachs & Co.; L.Walter Dempsey, B.J. Van Ingen &
Co.; Richard N. Rand, B. J. Van Ingen & Co.
Journal"; John Straley, Hugh W. Long & Co., Inc..
Grosveripr Farwell, Hitt Farwell Associates; Inc.; Pierpont V. Davis, Harriman
Ripley & Co.; G. W. Bovenizer, Kuhn, hoeb & Co.; Jacques Coe, Jacques Coe & Co.
H. Morton, W. H. Morton & Co., Inc.; Wm. B. Chappell, Melton Securities Corp.
Harry M.- Addinsell, First Boston Corp.; Sanders Shanks, "The Bond Buyef'i
Delafield, Equitable Securities Corp.
.
• »
F. P.
•
Benjamin J. Brtten weiser.
Morris & Co.; John
Kuhn.
Loeb
&
Co.; N. F.
W. F.
:
Patrick Carberry, "Wall Street
Blaine, Goldman, Sachs & Co.; Herbert Hall, Morgan Stanley & Co.; Wat
Wm. Harman Brown,
Jr.; Robert E. Broome, Guaranty Trust Co.; Robert li
Craft, Guaranty Trust Co.
Glidden, Jr., Glidden,
Nickerson, John Nicker son & Co.f Marvin Levy, LehmanBros.
C. Norman Stabler, New York "Herald Tribune";
&
T. A. Norsworthy, President, Bronx
Savings Bank; A. W. Benkert, A. W. Benkert
Co.; Miller H. Pontius, F. Eberstadt &. Co.; Lincoln J. Patton, Halsey/Stuart Sc
Co. Inc.
.
'
;
•
*
-*
t
THE COMMERCIAL & FINANCIAL CHRONICLE
Lr^ i f.J Continued from first page)
with
The
one year.
"death sentence" had much
-name
[
time limit of
a
to ,do with the resulting debacle
|.
inutility holding company secur>: ities; investors and speculators
,V
|
feared that the .time limit might
I«
i
r
be strictly enforced, and that they
i
I
"be
would
;>,
J u.L;; technical
?
^
river"
interpretation
of
the
tioning
the holding companies'
portfolios. The .nadir of this bearish psychology was reached early
,
.
•
..
|
the
Actr-regardless of the poor values
^which might be realized by auc-
[
|
down
do. .satisfy the narrowest and most
,
•
sold
in 1942. Doubtless the SEC itself
^became frightened by this bear
]
market
in
utilities—worse
than
pUt'the 1932 decline in
was
many cases. It
discovered that death
soon
"'
dead-lines
sentence
didn't
mean
much—the
SEC readily granted
delays if a holding company indfCated that it was working (not
loafing) with its problem.
The
death sentences were; gradually
abandoned, and a new and more
cooperative trial-and-error meth¬
od was odopted. A plan would be
^
'
submitted
hold
and
the
SEC
on
hearings
it.
has been anxious to bid for
pany
and loss ' of
rather
the
would
Protests
Speeds Up
Foreign Power) made
voluntary subordination of its
a
tric
interests to
(which is to be sold soon by
Continental Oas & Electric in the
United
elimination
vestment in
Columbus & Southern Ohio Elec¬
amount estimated
an
at around
$50,000,000. At the re*
cent
hearings ^Mr. Fleishmann
sought to bar participation in the
plan of $19,500,000 [Cuban Electric
Debenture bonds held by Electric
Bond & Share,^and to force com*
plete subordination of the parent
company in the proceedings.It
was contended that the equity in-,
Light & Railways system,
geographical integration rea¬
sons), but permission has been de¬
nied because the company is too
large. American Gas has retired
its bonds, and will probably re¬
tire its preferred stock now that
it cannot buy Columbus. The com¬
pany's earnings in February were terest
running about two-thirds over placed
>
for
last year, but of course "leverage"
will be reduced if the company
Bond &
Share with the knowledge
that the company was a poor in¬
der way.
The rise in the operating
stocks, while slower,
paid
the
ground-work
for.
a
leverage rise in holding Company
junior equities. It was suddenly
discovered in a number of hold¬
ing company integration programs
•
;
that senior security .-holders, who
would be paid off with a certain
percentage of the total portfolio
value, would be receiving more
than they were entitled to. Thus
it became necessary to revise the
plans,
either
apportioning
a
smaller proportion to senior security holders or paying them off
;
s
stock advahced in ;a little
over a
from less than 1 to 15. Com¬
year
monwealth &
from
•
about
JStates
^
Southern advanced
1
Power
around1 15
vances were
to
4%,
"A"
Northern
stock
from
to
70, etc.;" Big ad¬
enjoyed by other io ?
priced
equities such as .Watei/
Works, Electric Power & Light,
iAmerican Power & Light, Ameri¬
8c
can
Foreign Power; American
jGas & Power, and others.
,
.
While
senior
security holders
enjoyed their innings in 1942-44,
the
biggest
market
plums
of
1945-46 have been
|
in
the
junior
equities. Many of the latter equities now appear to discount sub¬
stantially their immediate pros¬
pects, though proponents of cer¬
tain
issues still think their fa¬
vorites can enjoy substantinal ap¬
preciation. The timing of such ap¬
preciation would
on
seem to depend
the rate of progress with the
plan. It may be worth while to
briefly on the position
individual holding companies,
taking them alphabetically.
comment
of
American
Gas
&
Electric
in
a
few months will conform to SEC
requirements by disposing of At¬
City Electric (it recently
lantic
sold Scranton
Electric). The
corn-
teroic: rise
enjoyed
the
over
me-
a
in
stock
common
one
of the
com¬
retained the bonds.
of
new
publicly-held
retire
order to
would have pro
is
known
senior
Central
as
&
South¬
ever, the SEC has ordered disso¬
lution and this has been princi¬
common,
which
•
forma earnings of west Corp.'
about $3.50 h share. The recent
Cities Service whs described in
price of the stock, around 38, last week's "Chronicle" (p. 2794).
pally delayed by (1) doubt
seemed
long dividend record. How¬
a
how
the
retire
to
to
as
non-callable
preferred stock and (2) questions
raised by the company's proposal
to build a $70,000,000 pipe-line.
Recently the SEC proposed that,
instead of paying off the preferred
at the $25 liquidating price, $33
tion
,
to
to
be fairly high in rela¬
potential earnings on a
half share of
new
though
improvement
since the pro forma figures were
issued. Under the plan the old
common stock would receive only
there has been
one
not seem to be far off and on this
new
common,
some
for* each
common
50
American
Power
&
3^.
around
It
dubious
it
still
has
a
realized
be¬
rears
of the great amount of ar¬
which have accumulated on
both
first
in
eral
Power
to
spect
go
and
second
magic
the
case
preferred
which
has
of
some
do¬
before
Commission, with
plant
account
re¬
readjust¬
ments. Tentative proposals to
sell
two of the Pacific Coast proper¬
ties to public power districts (fol¬
Bond
&
backed
Share's
up
it
ever,
is
has
ing companies in the northeastern
of
the United
States;
interest—and
is
by the courts. How¬
probable that some
modifications
•
holders
an
exchange
formula,
using Texas Utilities and one or
two
other
There
is
stocks
as
a
-medium.
deal of senior
outstanding and if its claims
are
fully satisfied, it is difficult
to estimate just how much would
a
great
remain
for
the
common.
Never¬
mon
stockholders,
then
dissolve.
On April 1st the American Water¬
works
Co., Inc., registered 2,343,-
105 shares of $5 par common stock
(plus an additional amount to be
adjusted). This
course
possibilities
will
of
elimination
be reduced by
preferred stock. The
com¬
mon appears to have further ap¬
preciation possibilities, possibly to
the
ultimate
extent
of
25-50%
from present levels, it is generally
estimated. Sales of United Corp.
holdings
market.
740
last year but
increased
new
have retarded the
share was earned
may
to
a
this would have been
well over $1 on the
tax basis.
Commonwealth & Southern
common
stock
remains
in
the
common
stock to¬
eign Power, but until the degree
of subordination is settled by SEC
decision the value of EBS'
years,
seems
and further appreciation!
likely before these holdings
distributed to EBS stockhold¬
are
ers.
A good deal of the
stock has
Electric
The SEC some months ago
ally offered for cash to common
holders of the parent concern and
haS
sev¬
this year's high
earnings on the
200 in 1943
to $1.99 in 1945 and
further increased
should
be
by substantial tax and refunding
savings this year. However, part
of
this
increased
earning power
will be lost due to the necessity
of paying off the preferred stocks
provide for large dividend arrears
and
possibly the call premiums.
Recently two plans were proposed
retire
to
the
preferred stocks—a
at nearly twice their par value, to
rather generous proposal by the
of
Middle West Corporation is one
the
few
holding companies
with
all-common
an
stock
capi¬
talization
(as the result of a re¬
organization in the 1930s). How¬
ever,
its sub-holding companies
have
rather
complicated
capital
prob¬
structures and subordination
lems
eral
have
cases.
been
an
issue
in
sev¬
The largest sub-holding
Central & South West
Utilities, has now almost com¬
pleted the development of an in¬
tegration plan (see above), with
a successful compromise of
the
company,
de¬
subordination issue. Another subprevious plans,
company.
North
West
and interested parties were in¬ holding
Utilities, filed a dissolution plan
vited to develop new ones. Four
on April 23; Bear, Stearns & Com¬
plans were submitted by the com¬
pany recently acquired the com¬
pany, and by. representatives of
panies (necessary for geographic
integration reasons) and for re¬
tiring the holding company's pre¬
savings
%
cided to scrap all
properties from the top
company.
stock would be initi¬
Light
stock have jumped from
common
this
&
Power
meteroic rise from
a
company
the
common
hold¬
ings cannot be accurately determ¬
ined. The equity interests in the
other system holding companies
has greatly increased in recent
is enjoying
cash to purchase the waterworks
The
and
America!!
low-priced class because of the
EL management and a less attrac¬
huge number of shares outstand¬
tive one bv EBS (see the "Chron¬
ing (over $33,000,000). Several
icle" for May 16, (p. 2650). Until
plans have been submitted to the
a
more definite plan for retiring
SEC, only to be outmoded by
the preferred is worked out, the
changing market conditions and
ultimate liquidating value of the
rising earnings of subsidiaries.
common will be hard to appraise,
Estimates of future earnings made
but it is generally assumed that
byj~the company and the SEC
it will work put better than pros?
some time ago have proved to be
ent levels.
,7
ultra-conservative. The
gether with $15,000,00Q ' bonds (to security-holders*
They provide
be sold privately) wouTd furnish varying methods for disposing of
theless leverage
is high and tax
eventual refunding
fu¬
adviser
for
other utility
com¬
panies in underwriting programs^
By far the most important invest¬
ment is that ih American & For£--.
eral years ago to
of 29. The share
big benefits from the
new tax law, since its bill for ex¬
cess profits taxes was perhaps the
largest
of any electric
utility
($14,539,194 in 1945 plus a reduc¬
tion of $8,268,685 due to special
chargeoffs). Earnings this year
are showing a sharp rate of gain,
American P. & L.'s best properties would retire its bank; loan, and and while monthly reports are no
are
Washington -Water Power, preferred; stock; and (after some longer published share earnings for
Montana Power, Florida P. & L. further readjustments) distribute the 12 months ended March 31
and Kansas G. & E. Obviously the the stock of West* Penn Electric were 320, or just double the fig¬
system will have to be broken up (the subholding company for the ure for the previous correspond¬
for geographic reasons. It is pos¬ balance of the system) to lt^coin- ing-period, :
.
:
sible that the company might de¬
cide
to
offer
preferred stock¬
-
Share's
and
American P. & L. and
had
of the
can
it can mestic holding companies seems
emerge from SEC scrutiny. Some unlikely to work in this instance,
of its subsidiaries have also been unless perhaps the SEC takes a
under the microscope Of the Fed¬ very harsh view of the Electric
to
Bond
preferred
already been retired by
ers
of
Columbia
being: given purchase; 30% of the remainder
had been paid off in cash (re£
rights to subscribe to these equi¬
ties). Columbia will refund its during par value to 70 and call
price to 80). The company pro¬
outstanding bonds
(with
some
poses later to retire the rest by
changes) and retire its preferred
stocks. The! common
stock will offering some of its best securities
in exchange (probably American
then represent an equity
in a
Gas & Electric and Pennsylvania
sound
holding company system
Power & Light).
controlling natural gas distribut¬
Leverage
worked
subsidiaries
Electric
Light, which will be sold in the
"future (common stockhold¬
whether; in
hopes of junior
tered
way
&
near
be
seems
cause
Gas
Gas & Electric and Dayton Power
&
this instance, the
The
long
Columbia
been engaged in streamlining its
two electric properties, Cincinnati
stockholders
stocks.
some
Electric
section
Light has
progress with its in¬
tegration program, but due to the
company's numerous and scat¬
made
work
,
share
stock
common
value might
past
soundest holding company issues,
comparatively simple.set-up and
the
stock
The Advance in Junior Equities
Southwest
with
a
vestment, while the parent
pany
■
-
&
above,
be
capitalization.
all-common
an
American Lrght & Traction has
might be made in
the plan, and it would seem logi¬
lowing the successful sale of Ne¬ cal for the first preferred stock¬
braska Power) were stymied in holders to benefit thereby.
Congress by Representative -Bo¬
American Water Works & Elec¬
;
ron's blast against this method of tric was one of the first
holding
/ in cash.
"exploiting" tax-free public own¬ company systems to file an early
Thus
the Standard
Gas
plan ership. Central Arizona L. & P. plan and obtain tentative SEC ap¬
was
sold
to
the
was hauled; back from the courts
public a few proval (in 1937).1 Nothing more
after the
Commission and
the months^ ago. v A! strong Southern was heard from this plan, how¬
courts had approved it, and the unit has been built up under a ever,
since it proved: impracti¬
} Commission permitted the com¬ newi sub-holding company, Texas cable marketwise. In February of
Utilities Company, which controls this year the company filed a new
pany to arrange a bank loan and
Electric
Service,
Texas program with the SEC. Under the
pay off its bonds in cash.
As a Texas
Power & Light, .and Dallas Power new
result: Standard > Gas
2nd
proposal
the
waterworks
pre1
& Light (the latter acquired from business would be
ferred shares advanced from
segregated by
to 53 a share. As the result of a the Electric-Power & Light sys¬ setting up a new holding company
series of changes in the Central & tem).
(American Waterworks Company,
South West
Utilities plan,
Outside
the
Texas
Next j the I top
system, Inc.).
company
the
,
Central
Under the plan the second pre¬
ferred stock Ivas tq receiver a half
has
assumption the stock is considered
Holders of utility holding com¬ in some quarters to have modest
pany senior securities recovered appreciation possibilities.
company '
the high side).
as" noted
break-up
out around 8-10.
ture, prospects are, of course, tied
up yvitA the integration programs
of
its
sub-holding companies—••
American & Foreign Power, Na¬
Utilities, tional P. & L ., Electric P, & 14
securities.
American Public Service, an af¬
filiated holding company, will be
merged with Central & Southwest
Utilities into a new corporation to
.was
their courage and a four-year bull
market in these securities got un-
leverage; Due to |he
complicated program it is
difficult to
envisage the exact
break-up value, but some street
estimates range as high as $50 (on
the basis of an earnings estimate
of $3.60 at share which seems on
j
18 Gas & Electric. Activities of the
months;" but how, seems td have service subsidiary, Ebasco, is be¬
substantially discounted the re¬ ing broadened to cover new lines
in
Cuban i Electric
was
sults of the final plan which pro¬ of
activity and
serve
outside
with i Foreign Power by vides for the sale of additional clients; it has already acted as
might be made by certain secur- 4 a share should be paid as repre- shares now held, and hence the
;
ity-holders, and the plan would sent ing the approximate investment recent price of 11 would be equiv¬
; be amended and the procedure value. As to the pipe-line, it looks alent to 275 for the new common,
started over again. But with war¬ as though this would be handled indicating that the junior stock¬
time conditions and lack of ade¬ by the principal operating Sub¬ holders
currently seenjv to ;be
quate trained personnel, proceed¬ sidiary,
Michigan Consolidated hopeful oLari upset ins the ; plan;
Even the warrants, which would
ings frequently moved at a snail's Gas, which should remove this
pace.
obstacle. Hence -dissolution would be wiped out under the plan, sell
The next stage in the program
caused by the stock market.
dilution of earnings due. to
of seftior
securities
lend some support to the conclu¬
sion; reached by, a member of, a"
large Stock Exchange house that
some
Utilities Integration Program
Thursday, May 30, 1946
stocks
of
the northern
com¬
mon
lic
stock
of Northwestern Pub¬
but
Seryice
murred at
Public
a
the
SEC
de¬
similar sale.of United
Service
Corp.
Another
year or so may suffice to clear up
the system integration program.
stock
Middle
West
preferred would retain the entire equity in
stocks of Community Water Serv¬ the southern group of companies.
tribute
cash
will
probably dis¬
some
holdings,
retaining what is geographically
possible under the holding com¬
ice and Ohio Cities Water in ex¬ Considerable further delay seems
high as $30-$60 a share L
pany act. Liquidating Value is. es¬
American & Foreign Power in change for their shares, any stock indicated before the final plan is
not taken up being sold by under¬ worked out and approved. Mean¬ timated by Wall Street analysts
October, 1944, filed a plan of re¬
at around 35 or higher. The stock
while the-company is declaring
capitalization with the SEC. Hear¬ writers.
has been pooular in the past year,
ings were held in the next fewMeanwhile,system earnings extra dividends against the pre¬ nearly tripling in value, v
have increased very substantially,
months,
and
resumed
after
a
ferred arrears, and is asking SEC
National Power & Light has al¬
lapse of a year (in April," 1946) at 690 on the parent company com¬
the request of Norman Johnson mon being reported for the March permission to use $5,000,000 cash most
completed its integration
and other holders of the 2nd
quarter compared with 280 last to buy in as much preferred stock program. A substantial part of its
prefered stock, represented by A. J. year. Profits for the calendar year as
possible at a price. not to ex¬ equity in the principal subsidiary,
Fleischmann and Claude Gonnet 1946 might on this basis run in
ceed par and arrears. As to the Pennsylvania Power & Light, has
excess
of $2 and this estimate
as
counsel. In the original
ultimate appreciation possibilities already
plan would be
been
given
to
stock¬
improved after adjust¬
Electric Bond & Share
(which ment for
holders in the form of valuable
system refundings, etc, for. the common stock, the pres¬
years ago placed a huge cash in¬ On the other hand there
may be ent high earnings level seems to vrights. The remaining equity, toeconomies may build up a sub¬
stantial equity for the common
(estimated in some quarters as
to
public
holders
of
ferred
stock.
The
common
and
.Volume 163
Number 4494
THE COMMERCIAL & FINANCIAL
gether with the stocks of Birm¬ holdings of the common stock of
ingham- Electric, Carolina Power r the Minnesota operating 5' com¬
Light, an# Memphis jStreet; pany (its principal asset), giving
mitting
Railway, will
plan remain to be ironed out.
late
be
distributed
stockholders,
this
The
year.
to
possibly
question
of
claims of National Power & Light
subsidiaries against Electric Bond
& Share (reflecting readjustment
of former service fees) is the
cipal
issue remaining
posed of. The
understood
involved is
amount
be
to
prin¬
be dis¬
to
about
$750,000.'
Niagara Hudson Power had dif¬
ficulties with is original integra¬
tion
plan, due largely to the fact
that
this had
to
with
cleared
be
its
preferred
five times
as
stockholders
the exchange offer. Details of the
about
much -per share as
the Class, A*.
The
latter
''when issued" market,
a
to be initiated by brokers prior to
&
common
2939
i
Standard
Gas
&
,
Electric's in¬
stock*
tegration plans have encountered
finally ; discovered that more changes and difficulties than
they could make a deal through almost
any other plan.
The SEC
a banking
group to sell the Min¬
approved a program some time ago
nesota stock and pay off the pre¬
but this became involved in liti¬
ferred
at
its
redemption price
gation, and after considerable de¬
plus arreas, thus avoiding litiga¬
lay it became obvious that bond*
tion 'With the preferred holders.
holders (who were being paid off
However, tax problems arose and in a
parcel of cash and securities)
it was suggested by the .SEC staff
Were receiving considerably more
that it might be better to give the
than they were entitled to.
A
preferred stockholders equivalent group was formed to protect the in¬
increase in
the
to
serve
depreciation
effect
re-
retroactive
straightline depreciation, and the
company demurred. A substantial
plant write-off, ordered by the
Federal Power Commission against
of
one
holders
to
be
paid
off
(without the bonus) from
offering
Market
of
value
public
preme
ous
tactics, the
company
requested
the SEC to withdraw the old
me
perrmuea
the
ing companies, American Light &
Traction
(discussed' above) and
tion prices which averaged only
slightly above par. There are in¬
dications
now
is
Continental
maneuvering
to
ities,
gain "voting
Apparently they
by to obtain 100
second
Light B stock.
stock
SEC
(which
sibly
common
ruled off
a
to' obtain
even
year
the Board
or
this
from the courts (where it was well
the top
holding
along toward final consummation)
system,
United
and consider
a new one.
This
was
will
company
Light
&
in
doubtless
take
gram,
largely
with
merged
was
its
sub¬
sidiaries and the troublesome
ond
preferred
stock
sec¬
redeemed.
System refunding operations, plus
savings, have greatly improved
the earnings, which have been es¬
timated at $1.37 for the calendar
year 1946 by Ralph Sterling in his
tax
New Homes!"
talk before the luncheon forum of
the New York Society of Security
Analysts (compared with the lat¬
and only 33
cents
in 1943.)
The number of
corporations in the system will
soon be reduced to
12 compared
est figure of 77 cents,
with 59
vestment
in
substantial
tion
Buffalo, Niagara
&
(the new merged com¬
The company incurred a
pany).
with
bank
the
loan
BNE
in
connec¬
recapitaliza¬
tion, and it will be necessary to
sell
at
least
part of
the valuble
it
BNE stock to retire this loan; if
is
decided
the
retire
to
preferred stocks
total
Niagara
(making a
also
of
the
of
would
about $90 million ahead
common), all the BNE
probably be disposed of
The stock would doubtless be of¬
fered to Niagara stockholders, re¬
rights.
It
seems probable that the integration
program, which made wonderful
progress last year after a slow
sulting
AND A PROBLEM
valuable
in
previous start, might be virtually
Over six thousand
same
the end of this year,
tempo is maintained.
North American Company filed
a
.
plan several years ago but it
rather complicated, and the
was
SEC (after early hearings) appar¬
ently showed little interest in it.
A
plan was filed recently
provided for sale of all
Utility subsidiaries Xby
issuing
rights
to
stockholders)
except
homes
new
Island before the end of 1946
homes for modern young
know the great part that
UTILITY COMPANY
play in modern living
Long
America of
The rapid growth of
i
modern
community
and electricity
I
progressive folks
It
in home building is
a
large
was
people such
that
Of
and its affiliates
must
course
and will be
—
it is
a
Long
\
these who helped
which
equipment
helped
to
same
skilled labor which the precision industries
problem
of peacetime are
met.
seeking
to
speed the
resumption of peacetime production. That
it won't be easy
is
in the face of
industrial
strife
conditions
unsettled
why
far-sighted
business
manufacturers
are
getting the facts about Long Island
throughout the Country with
and
as
which
speed the day of Victory. It is this
order for the Long Island Lighting Com¬
pany
for
progress
produce $10 planes, motors, arid other
tomorrow.
upsurge
substantial home-
Islanihas long been rioted.
precision
This
a
owning population is indicative of the
couples who
gas
—
on
—
who will be the backbone of the greater
wound up by
if the
A HOMELESS G. I.
question is
whether the parent company will
be allowed to keep part of its in¬
Electric
GOOD
....
few years ago.
a
The big remaining
i
.
as a
place
locate their production facilities.
to
the resultant
shortages of materials and
And added
equipment.
But the
they
and
men
women
can
to
this is the
-
knowledge that
be assured of economical, ade¬
new
which
Illinois Power and Union Electric.
These would be retained under
comprising
our
Company who didn't let
ouy vital, industries
down in
it that there won't be
war
a case
will
see
to
quate
and reliable
I to meet
of "too little
and too late" in peacetime
either
and electric service
their needs; friendly service that
will make it easier and
a
holding^company, MissouriIllinois Company, the stocks be¬
: new
gas
J
ting settled In
a
pleasanter in
get-
hew industrial home.
ing distributed to North American
Co. stockholders. No detailed pro¬
vision was made for settlement of
litigation with
Illinois Power,,
however, and the President of the
latter company
bpopsition
there
to
plan.
the
be
may
While
has indicated his
further
the litigation
two companies
important
Hence
delays
between the
is settled, and the
sub-holding
OUR INDUSTRIAL DEVELOPMENT DEPARTMENT IS AT YOUR SERVICE—
If you are
engaged in light manufacturing requiring skilled or semi-skilled labor
it will pay
you
to get the facts about Long Islknd as a possible location for^your
plant. Address: Business Development M ariager, Long Island Lighting Company,
250 Old
Country Road, Mineola, N. Y,
1
V
company
North American Light & Power is
liquidated. The question of
a
di¬
vision of assets of the latter com¬
pany
(to
as
between Illinois Power
setttle
claims),
holders of its
common
can
own
public
stocks, and North Ameri¬
holdings of the same items,
presents
a
complicated
Northern States
plan
the
preferred and
some
problem.
Power filed
a
time ago to divide its
It
however,
Light & Traction.
ironed out. The sub-holding com¬
pany
com¬
which includes dissolution
of American
of the big
been
now
removed
are
its to complete the entire system pro¬
Power
sub-holding
company,
Buffalo,
Niagara & Eastern. These .diffi¬
have
be
some,
veloped with the holders of the
culties
Light
anticipating this.
some
subsidiaries,
also
difficulties. A fight de¬
caused
The
the stock appears to
the
second preferred stock
subsidiary,
United
pending changes
may
having been disposed of after liti¬
stock would be established by per-
increasing
be currently
now
stock.
now
restriction
imposed
pleted, and
ago.
so
United Light & Railways is
plan
has
when
was
worthless
as
have
& Railways $1 dividend rate, but
something
stock, which
important
an
against
sol.d at 2Vz last year), and pos¬
for the
which
Columbus & Southern Ohio.
for the
or more
preferred
selling
seek there¬
may
of
some
medium
of bank loans.
For geographical
reason?: Continental is currently
substantial interest in
a
Standard Power &
All
& Electric.
been retired through the
control of Standard Gas, by first
obtaining
Gas
three companies had senior secur¬
that the same group
Minnesota
unexhanged
of
cash
in
a
which reached the Su¬
Court. It has two sub-hold¬
gation
ana
holders
both the New York Public Service
value in Minnesota stock with a. terests of the junior stockholders
Commission and the SEC. The Al- j
bonus
of
10%,
nonraccepting and as an outcome of their vigor¬
bany Commission wanted a
large'
me
to obtain a bank loan
and retire the bonds at redemp¬
uone,
company
COMPANY
2940
Changing Costs of Electric Power two
Generationhigher ;
prices the
because of
Security Regulation!
has
ies
or
of these exempt catagor-
one
which
and
is
be
intended to
sold to the public must and
should
under the scrutiny of a state
come
.
tic salesman with
a
State's
The
No law
Investor
state¬
sworn
Duty
compel a careless
verify a salesman's
can
to
representations but it is a state's
duty to provide a means where
such a verification may be had.
One effect of this provision is at
least to inform an investor that
certain facts are a matter of pub¬
lic record. In the absence of such
record
commissioner
a
at
can
least warn a prospective investor
of the dangers inherent in pur-
i; chasing a stock concerning which
statement
qualification
has
been filed; and explain that if not
otherwise exempt, such offering
be. in violation of state law.
in effect at least,
attempt to pass on the merits of a
security, but in the majority of
may
Some states,
cases,
electric
generating costs than have changes
the completeness of the in¬
formation filed is the
of
measure
in electric generation.
Aside
"
from
price, the attrac¬
tiveness of any fuel for power
production depends on its avail¬
ability, reliability of supply, heat
content, ease of handling and the
cost of waste disposal. But in the
qualification
require¬
ments or of falling
short^thereof.
■f.:
State laws, in the main, were
meeting
assumed that no further need ex¬
ists for such state regulatory au¬
for
an
increased
cold recep¬
actual though la¬
fact
that the members
Requests
is
It
tion.
mentable
state
cf
legislative
a
have
believed and stated that since the
funds
need
bodies
such mattersj
SjS.C. looks after
be
appropriated
I "rond those required merely to
keep the office open.
o
Clite' Commission
This is
Still
ridiculous
as
Needed
as
district
a
bave
the
1936
Billion cubic
to
38.7
—
13.0
69.1
18.8
matter
it would
as
burgTaries of
? e?s
a
be
all
if
certain amount
to accomplish this,
much legislative amending of ex¬
isting laws would have to be pro¬
moted by commissioners and in¬
terested members of the invest¬
However,
profession. Until legislatures
fully realize the importance of
the securities department of the
ment
government such improve¬
state
ments in
tfie service will have to
It is
wait.
be hoped
to
fiscal calamity nor
that
no
financial scan¬
the
dal will have to occur to open
of
eyes
blind.
the
Perhaps
tween the state departments
of
members
the
a
degree of cooperation be¬
closer
can
the
arid
investment
bring
about
the
much to be desired benefits.
or
Diekman of Franklin
Society Heads Group
for
Vice-
Diekmap,
Home-Building and
217
simply didn't count.
C.
Bernard
President of The Franklin Society
Broadway,
New
Savings,
York,
has
legislativeignorance is been elected to the office of Pres¬
tart mount to legalizing small- ident of Group Seven, New York
,f»uch
t;
e
crime and..giving
1 *!ht to
ce's
a green
sw'ndle if committed in
own
back yard.
feet of gas—-
143.6
302.0
and
salesmen
most states
State League
of Savings & Loan
Associations. Willard F. Clark was
re¬
Vice-President
made
of
the
Group
and
Schaf-
Frederick J.
President of the Mt. Vernon Sav¬
ment and other pertinent data;
The
very
commissions
state
closely
work
with the other to
in preventing
one
other
assist; each
the issuance of permits to persons
who after being found guilty of
misdemeanor
state
turn
times w;th
a
or
up
a
a
crime in
elsewhere,
brand
a
one
some¬
new name
and
face-lifting job just to„ confuse
situation
prevailed,
—
5,475
3,285
4,380
5,475
$7.10
$8.87
$7.46
$9.94
$12.43
and
■
2.50
3.75
3.75
4.88
5.25
5.63
1.50
1.50
2.25
2.25
2.25
6.90
maintenance
6.00
6.00
6.75
6.75
per
3.75
3.75
1.50
6.75
2.50
2.50
3.25
Depreciation
Operation
37 %%
3,285
per year
Fuel
sumed /that f investments iof $1001.
kilowatt for 1936 and $150 per
kilowatt for 1945 were made in
these plants and that the fuel con¬
62 Yu %
50%
62%%
58%
37 %%
;
.
4,380
$5.32
factor
Kilowatt-hours
3.50
comprised of the same
proportions' of coal, oil and, nat- •
ural
$30.81
$27.94
$25.09
gas
which the privately$22.62
$20.60
$18.57
Total cost
5.63
6.38
4.13
7.64
4.70
5.65
Mills per kilowatt-hour
owned industry used during those
years. In the case of hydro plants,
Table I, which shows the cdm* in either year, their yield on a
investments at the rate of $240
plete production costs of steam- times-earnings .basis*4 dropped
per kilowatt in 1936 and $360 per
electric plants built in 1936 and
from 10% in 1936" to 6.7% in 1945 kilowatt
in 1 1945
are
assumed.
1945 and operating under condi¬
—a decline of nearly 33%.
Finally* it is assumed that the
tions applicable to those years, the
over-all cost of money to both
Property
Cost
of
taxes
money...
sumed was
...
This decline in the cost of capi¬
comprised
types of plants was 6% in 1936
total generation tal was, however, of greater ad¬
and 4%% in 1945.
vantage to private utilities build¬
expense at a 50% plant factor.
\
Only three plant factors have
The other major expense classi¬ ing hydro-electric plants than to
been used because they approxi¬
fication in the production of elec¬ those constructing steam plants.
mate the generation ratios of most
tric power is the hire of the Where the 1936 cost of a steam
privately-owned
plants
during
money invested in generation fa¬ generating plant was $100 per
both years.
Although one kilo- ;
cilities.
But unlike fuel, the cost kilowatt of capacity, that of a
watt of installed generating ca¬
of capital to privately-owned util- hydro-electric plant was $240 per
And where the cost of pacity can turn out a theoretical
?ties has dropped more than 30% kilowatt.
maximum of 8,760 kilowatt-hours £
between 1936 and 1945. Based on capital to a steam-electric plant
a year by
operating 24 hours a
in 1936 was 28.3% of total pro¬
the average yield of new security
duction costs at a 50% plant fac¬ day for 365 days a year, the actual
flotations, the cost of bond, de¬
generating ratio of all utilities is J
benture and note money to pri¬ tor, the corresponding cost to a
much lower.
During 1936, the?
vate
power
companies dropped hydro-electric plant was 67.9%.
Accordingly,
as
employers r of output of electric energy in the
more than 16% in the period un¬
country was at the average rate
amounts of capital than
der review—from 3.6% in 1936 to larger
of 2,740 kilowatt-hours for each
2.9% in 1945.
In the same . way, steam-electric plants, hydro plants
kilowatt of capacity, or 31.3% of r
the cost of preferred stock money received the greater benefits from
the theoretical maximum. During
This can
fell from 6.1% in 1936 to 4% in declining capital costs.
1944, with the war at full blast
1945, orrby more/than 34%. And be determined from a comparison and war industries operating on,
in the case of common stocks, few of the costs shown in Tables' I
three shifts a day, the average
of which were sold as new issues and II.
output was 4,632 kilowatt-hours
TABLE H
per kilowatt, or 52.9% of the max- >
Cost of Production Per Kilowatt of Capacity of Hydro Plant at Usual Rates
imum. Arid during 1945, with the
1945
1936
62 % %
end of hostilities coming after a;
50%
87%%
'
62%%
50%
37%%
wont factor
87%%
5,475
4,380
3,285.
5,475
little more than seven months,;
4,380
3,285
Kilowatt-hours per year
costs
fuel
of
alone
about 35% of the
—
—
quire the filing of applications fer, Secretary-T re a sure r. Mr.
for licenses, the information re¬
Clark
is
the
Executive
Vicequired including a financial state¬
:
same
in one sense, With respect to oper- ;
ation and maintenance expense,'
..
-
In the matter of licensing deal¬
ers
botri
To
-
Plant
we
safeguard the
public interest.
No thought given to the fact
that intrastate sales and offerings
oMeis than $300,000 in size do
not c pneern the S.E.C. is as tragic
p
The
1945
;
—
Million tons of coal
Million barrels of oil
end, the dollars-and-cents outlay
the quantity of heat it pro¬
vides dictates the choice of the
fuel used.
With sizable deposits
saved.
fraternity
it would
since
attorney
F.B.I,
te
j
vately owned utilities can best be
indicated by a comparison of fuel types of plants. In the same way,
consumptions, the volume of gen¬ property taxes were levied in both
eration and fuel costs in 1936 and years at 1 xk% of the,-cost of both
1945.
During these years private types of plants, with the higher .
dollar volume of taxes paid in
power companies of the country
1945 due to the greater cost of :
consumed, as a group, the follow¬
construction in that year. .
''
ing quantities of fuel:
! >
for
H to say there is no further need
for
wa^^the^ same
crease
—
appropriations meet
construction costs, the rate of in¬
although this classification needs
simplify comparison, both some discussion. / Operation of a'?
oil and natural gas have been re¬ steam generating plant, even in ?
duced to terms of bituminous coal these
days of automatic equip*
on the basis of their Btu contents
names
of undesirables who are
ment, involves considerable la- J
of bituminous coal of acceptable
and the per-ton prices shown are
quite unable to secure a state per¬
bpr, and particularly is this true/
mit.
Legitimate dealers are of quality within short rail haul of the outlays required to buy the of coal-burning plants with the *
great help and cooperate actively every section of the land, and heat equivalent of soft coal.
need of handling and ash disposal. s
with its delivered cost within the
■\
:
1936
1945
to rid the industry of those per¬
On the other hand, the operation !
price range set by competitive Millions of kwh. generated 66,413 132,000
sons whose activities only serve
Thousand tons of coal™.
Of a hydro plant is relatively sim¬
47,828
85,150
to tear down the good name of the fuels, even' its disadvantages of Pounds of coal per kwh..»
1.29
1.43
ple and requires little manpower.
bulk and residue have not been Cost of coal per ton in $s_
4.54
3.24
profession.
Similarly, the greater propor¬
sufficiently great to topple soft Cost of coal per kwh. in
2.9
tion of maintenance required in a
mills
i
2.3
coal from its position as the most
State Regulation Beneficial
steam plant is due to the high; *
economic boiler fuel in the past.
Although improved boiler ef¬
While the states have had an
ficiency between 1936 ^nd 1945 temperatures at which its boilers •
uphill battle to fight against the Today, however, the United Mine
made possible the generation of operate and, in the case of a coalfraud artist they have probably Workers, with the aid of the rail¬
one
kilowatt-hour of electricity burning plant, the likelihood of
saved the public a thousand times road brotherhoods, are fast ac¬
with 10% less fuel, the fuel cost damage tp fuel-handling and ashthe cost to the tax-payer; for it complishing that feat.
For these
Although a typical electric util¬ of generating this unit of energy disposal equipment.
is frequently a fact that fees col¬
increased 26% because of higher reasons, the operation and main- /
lected by the state commissions ity has as its main components
tenance costs of fuel-consuming
fuel prices. ' And while an in¬
do not pay for the maintenance of generation, transmission and dis¬
plants generally run from three
crease of only 6/10ths of a mill
the departments. This inability to tribution divisions, we are con¬
to three and one-half times those
cerned here only wth the genera¬ in the fuel cost of producing one
show an operating profits appears
of hydro plants.
Nevertheless,
tion of power. In a utility system kilowatt-hour may appear insig¬
to be of consequence when legis¬
because the cost of electric util¬
lative appropriations are request¬ producing its own electricity, the nificant, it gains added stature
investment in facilities falls about when it is realized that the pri¬ ity labor has increased more than
ed, and so often refused.
Some
50% between 1936 and 1945—from
vately-owned electric utilities of
legislatures have failed to recog¬ equally into the three divisions,
790 ah hour to $1.20—1945 opera¬
when power is generated in a the country could have turned
nize that security departments are
tion and maintenance costs of both
steam-electric plant.
In the case out their 1945 volume of power—
in nature police agencies, wbich
of hydro-electric systems, how* practically double that of 1936— types of generating plants have
are not set up as revenue raising
shown
the
same
proportionate; '
ever, the added cost of the dam at $79,200,000 lower fuel cost, had
bureaus.
boosts over 1936.
and reservoir usually results in 1936 fuel
prices been in effect.
From the viewpoint of invest¬
Changes in the operating costs'
about 55% of the- investment in
In addition, this rise to fuel of
ment
firms
and
and attorneys
fuel - consuming
generating
facilities being centered in the
who handle the qualifying of se¬
prices, with the resultant increase plants between 1936 and 1945 are
generation division and the bal¬
curities there are a number of
shown in Table I, while similar >
ance
divided between transmis¬ in the cost of generating elec¬
data for hydro-electric plants are
ways in which their relationships
sion and distribution.
Moreover, tricity in fuel-consuming plants,
with the state commissions might
presented in Table II.
In both
even where electric utilities buy
gains added significance with the
be improved. For example, if the
tables it is assumed that new gen¬
their entire electric supplies from
realization
that hydro-electric
state commissions could get to¬
erating plants have been built in
others,
some
transmission arid
1936 and 1945 at current construe^
gether on more uniform forms for
complete
distribution
facilities plants have no# fuel costs what¬
filing and arrange for similar must be
ever.
As can be determined from tion costs and that the operating •
provided.
V
dates for renewing filings, much
costs are those which prevailed
TABLE I
in those years.
duplication of effort could be
In the case of*
Cost of Production Per Kilowatt of Capacity of Steam Plant at Usual Rates
avoided and time and expense
fuel-consuming plants, it is as-;
1945
1936
passed prior to the enactment of
the original Securities and Ex¬
change Act of 1933 and functioned
as well as could be expected in
the circumstances. However, since
the S.E.C* came into being many
well
meaning
but umnformed
members of state legislatures have
thorities.
years
of rising fuel
electric generation costs of pri¬
on
.
ment of facts on file.
no
on
...
investor may compare the
statements of an overenthusias-*
;ful
a
effect
.
authority in order to provide in¬
vestors * with - the, facility
of
determining "the
facts
con¬
cerning it * by
inquiry at the
office of such authority. By this
means an inquiring and thought*
,
more
of fuel oil and nat¬
ural gas, which comprise the bulk
public
utility commis-. the record. Many states require a
of the remaining fuels consumed
smaller bodies, and of photograph for identification and
companies whose securities are of course the usual character and
publicly reported on in financial financial references. It is custom¬
manuais
oi
recognized standing. ary for the state commissions to
The purpose of these exemptions make their own independent in¬
from qualifications is to avoid un¬ vestigations if it is deemed neces¬
necessary duplication of reporting sary in order to properly pass on
where facts concerning an issue a license application. This pro¬
are
already a matter of public cedure has resulted in the build¬
record.
ing up in the various state com¬
of
An issue of securities not falling missioners' offices of a list
into
had
in the prices
(Continued from page 1912)
sions
The impact
(Continued from page 2910)
A State Problem
various
Thursday^ May 30, 1946
CHRONICLE
THE COMMERCIAL & FINANCIAL
ings
and
Loan
Association,
Mt.
0
•
1.05
0
1.50
5.40
16.20
Operation and maintenance
Property taxes
0.95
3.60
3.60
3.60
5.40
*
14.40
14.40
14.40
16.20
% $21.40
$21.45
Cost
of
Total
money
cost
$21.35
•
3.92
v
•
8.10
$3.60
average
output was 4,432 kilowattkilowatt, or 50.7% of:
;
1.57
hours
5.40
-
maximum.
per
16.20
In the case of large
$26.70
$26.62
V
0
0
$3.60
1.42
$2.40
1.00
$2.40
—
$3.60
0
$2.40
0
Depreciation
-
$26.77
6.10
:0 4.89
tems
which
operate
electric sys- f
both steam/
plants, it is
plants are
lower rate for the latter was be¬ often used to carry the main bur¬
Franklin
Society.
The
League tions are involved in electric gen¬
den of power supply during the:
eration
depreciation, property cause of/the longer life of the
comprises a group of 90 savings
fyll 24 hours, provided sufficient;
taxes, and operation and mainte¬ dam which accounted for 60% of
and loan associations located in
water is available at all times,
nance.
In both 1936 and 1945, de¬ the cost of the generation facili¬
Vernon, N. Y., and Mr.
Schaffer
is the Assistant Treasurer
of The
Mills
per
kilowatt-hour
Three other expense
6.50
:
4.89
classifica¬
!
and at 1% for hydro
plants.
The
and
true
hydro generating
that the hydro
.
—
New
York, Bronx, Richmond and
Westchester counties,-.
preciation on steam generating
plants .stood at 2^%. of their, cost
plants
em-,
And while the dollar amount with ; fuel-burning
depreciation increased between ployed to meet the added daytime:
ties.
of
[Volume 163 i Number 4494
demands.
THE COMMERCIAL & FINANCIAL CHRONICLE
Under these conditions,
hydro plants may generate
power at from 75% to 90% of ca¬
pacity throughout the year. These
some
high
tricity, the cutting out of a few
generators brings practically no
reduction in generation costs.
The more probable effect of the
present advantage of hydro over
generating, ratios are un¬
usual, however, and their large steam generation in the middle
outputs tend fa boost the yearly plant factors will be to cause a
averages.
re-examination and appraisal of
These tables show that
despite many water-power sites that have
decline in the rate of
money to
both steam and hydro plants be¬
a
been turned down in the past be¬
last year. And to move this gas to
after
market
placed
would
require
tional pipelines of the
addi¬
20
capacity of
in
the
barrel,
neighborhood of
supplies were insuf¬ per coal-equivalent ton higher
tween 1936 and 1945, of
25%, the ficient to insure plant factors in than the average. Nor would the
dollar volume of capital hire rose the higher brackets. And in many
.use of the "Little Inch" pipeline
12%% because of increased con¬ instances, the attractiveness
of
for the movement of oil, as now
struction costs.
They also shqw these sites will be enhanced by
that; the depreciation, property the knowledge that no "Czar" can proposed, result in lower deliv¬
tax, operation and maintenance of force the water to stop falling ered cost. In the
opinion of pipe¬
both types of plants rose 50% dur¬ until
his
extravagant
demands line
experts, the cost of moving a
ing the same period. To that ex¬ have been satisfied.. C Moreover,
tent, then, neither type of gener¬ since public power enthusiasts are barrel of oil through "Little Inch,"
electric
had
other.
fuel
an
advantage
over
the
But because the * cost of
to steam
plants, which
was
cognizant
many
country's
the
of
•
steam-electric generating plants.
Add to this the stimulating ef-.
of
generation does not ap¬
on
hydroelectric generation
the
present coal prices, with
in the; cards.
danger of losing its present posi- J
bring oil and natural gas to fur¬
tion as the major boiler fuel for
possible that sufficient the generation bf electric energy
ther distant consuming areas, but
it is hardly
built
be
will
lines
States.
in the United
extended
or
kk
,
.
present advan¬
the
of
in
More likely, prospect of still higher prices in
the near future, and it wou'd ap¬
existing pipelines will be extend¬
ed and new lines' will be built to pear that bituminuous coal is in k
pear
,
ation
for coal as a boiler
and oil
gas
fuel
boiler fuel in feet
natural gas as a
,
.
swing from bituminous coal to oil
or
the entire
serve
nation,-v Even so, it will mean a
substantial substitution of natural
Obviously, then, a nation-wide
water
cause
sufficiently far to
-
a
ton, which was 58$
a
pipe had been re¬
permit ■* of maximum
cost
coal-equivalent
its
$6.42
was
bad
to
present direct cost of shipment in
tankers.
1945
area
$1.55
-
capacity operation, would be more
than 2c a barrel greater than the
"Big Inch."
Similarly, with the average
cost of oil in the New York
all
2941
tages of hydro over steam gener¬
ation, we can expect^ further and,
perhaps, more successful drives
non-existent in the case of hydro
plants, rose 40% in the face of a
10% improvement in boiler ef¬
for the establishment of additional
ficiency, the complete production
opponents
costs
increased
be unable to advance the shatter-,
those
proof argument of the past that
power can be made cheaper in
of
much
steam
plants
than
more
did
of
hydro plants.
costs
of
hour at
25% in
In fact, where the
producing one kilowatt50% plant factor rose
a hydro
plant, the same
a
production costs
steam plant.
This gives
36%
rose
in
a
decided advantage
to hydro-electric generation.
In
1936,
a
according
these
to
tables,
the average hydro plant could not
generate power cheaper than the
average steam plant until a plant
factor of about 60% was reached.
At a 50% factor, steam generation
river valley
authorities. This time,
public power will
of
PUBLIC SERVICE
and Subsidiary
hydro-generation at
factor
50%
a
plant
28/100ths of a mill per
kilowatt-hour cheaper than steam
was
generation and at a 62%% factor
was 74/100ths of a mill cheaper.
Even at a 37%% factor, hydro-
it
_
Then, too, there will be a grow¬
ing shift from bituminous coal to
oil and natural gas as boiler fuels.
After all, it is heat that electric
utilities buy in boiler fuels, al¬
though ease in handling and the
cost of residue disposal exert their
impacts.
Based on the 1945 ex¬
perience of 38 operating electric
utilities
in
of
sections
all
Comparative Statement of Combined Results of Operations
For the Year Ended December
which
country
ish
Operating Revenues:
thermal
units
its
Street
$
,
Niagara Falls, Niagara Hudson
Power has found steam plants
desirable for stabilizing its, power
supply and even TVA has found
the steam
generating plants it
acquired from private power com¬
panies exceedingly helpful,, in
bolstering its uneven hydro sup¬
plies. There is, moreover, a flexi¬
bility in steam generation- that is
lacking in, water-power plants.
When demand decreases, steam
plants can reduce the consump¬
tion of fuel, their largest single
16,101,761
13,911,158
_
13,889,802
$
Federal
Excess Profits
Taxes
On the basis of this
Other Taxes
be
8,083,452*
20,846,459
20,851,944
———
'
j')?
Operating
from
Income
—
»■
——
$
:
Expenses
>;
Other
•
$
f
>
J--
'
$
9,683
••»&
But since the cost
which
money,
$
17,060
26,951
of
Deductions:
But for the same
provided by one
ton of coal, the average cost of
4.145 barrels of oil was $5.84. Both
oil and natural gas had an advan¬
tage over coal in that no bulky
cost
$2.74.
residue
remained
which is
an
for
disposal,
,
.
factor
Interest
.
Long-Term Debt-*——
on
.,
—
—
$
sively
in
1945
handling
found
6/100ths of
that
Dividends
t"
TABLE III
•Hydro alone
Natural
1%
Oil
:——
;
'
T
alone
tl946
coal
•
coal
alone..—;
•See
Increase
Table
6.71
,
II.
t50
cents
per
..
„.k
Preferred
Stock
Preferred
$
Stock
Balance
Stock
(directors'
-
1945
over
*
......
4 ' ikk''k f kk'/*. .!> kVv j
$
1,113
As'will be seen from Table III,
use of natural gas alone as h
boiler fuel in 1945- at its average
SERVICE
shares).
'1,501,127
.
"•
the
most
the
of
costly.
Actually, most
electric utilities
using oil
and natural gas as boiler fuels in
1945
were
located
in
or
within
short distance of large producing
•
6.83
:
>
k' k
$75
„
NEW
OF
COMPANIES
fields,
low
or
so
transportatipn costs
wholly absent.
were
At greater
Federal
k Other
'•
$
naturally is higher*".
'
As
an
'\r
indication of the cost of
natural gas:deUveredkin thCNew.
$
18,461,777
$
164)27,675,
$
124,470
107,197
of New Jersey
etc.—
'
-
$
389.071
$
372,532
$
387,231
1,200
450
—
—-
$
372,982
$
Taxes—
1,006,375
Taxes—
$•■ 1,015,491
------
■■k "
131, ^80
Furthermore, if natural
were, to
a
nually
or
natural
almost
7-times
was
as
so
much
Consumed
—
1
—,
——
Jersey
'
:
$
$
1,117,675
Public
Service
1,146,871
1.534,10$
1,490,667
Jersey—.
.
".•'-Sk-'k.-6
Corporation of New
>
1,242,719
—
1,237,017
'
,
deduction of dividends on
stocks of subsidiary company held by the public—.
capital
Dividends on
.
-
Net
Income
after
Preferred Stocks of Public Service
9,850,936
Jersey—-
■j
11' *'c
on
Common
Stock of
r
t
v
Public
Service
m k.
Corporation
v^ ^k-"
of New
'■
\, ^
9
Balance transferred to Consolidated Earned
kkkkkkkkk'k':kkkki
; kv.; • :k?kkki:kkk tikk ^
»Federal
Excess
.
9
6,144,145
Profits 'Taxes
Surplus^i——
^
kkk t. vk-k:k;
9,850,93#
5,839,782*
K;;
4,952,874
kkr Jersey
■
$ 15,690,659*;
9 15,995,081
Corporation of New
alone
gas
as
.——
'
•'
ton.
consumption
gas
—
Consolidated.
generation,* it - would
1945
Taxes
r--
'
.
the
kj;kk-'':
Other Deductions from Income of
;:k.k
supplant .all other fuels
at
111,300
—
Total Expenses of Public Service Corporation of New
k
Dividends
coal-equivalent cost of $6
Taxes
k1
$ 17,237,800
cost of natural gas to electric util¬
ities last year and would result in
rate
18,337,307
CONSOLIDATED—
Office Expenses,
———
Income
kjkkkk Total
not to exceed 250 per MCF. This
would be 2% times the
average
for electric
these fuels
k':
line and has agreed to sell gas for
require-about-2-billion 'MCF'an¬
of
'
AND
of Public Service Corporation
Federal Excess Profits
the
cost
•Pkk-;.S'
6.13
,
distances from producing centers,
delivered
;
1,501,127
$ 18,621,260
JERSEY
Total.
cents per ton
..
Rents,
Depreciation
6.00
'6.87 V:;
price.
t
Salaries,
6.22
York Metropolitan area, Big Inch
Gas, Inc., which is seeking to buy
the so-called "Big Inch" pipeline
a
1,1)3
k:7kl4?lk
Expenses of Public Service Corporation of New Jersey:
.
barrel would have proved
'
I
$ 18,728,457
4.67
6.97 k
'
CORPORATION
SUBSIDIARY
of 11.40 per MCF would from the War Assets Administra¬
have proved the cheapest fuel for tion, has proposed the movement
electric generation, while the use of 275,000 MCF of natural gas a
of oil alone at its average cost of day to the eastern terminus of the
a
$ 19,838,484
iy&r' :<;V« ■' S I : ■■
applicable to securities owned by Public Service
Miscellaneous Income
price
$1.41
7
1,500,000 7 '
14
*
the
i
11,883,978
1,500,000
Corporation of New Jersey
5.75
5.46
8.14 <•"
—
ton increase
'
5,475
-H.* 6.55
k
8.01 <*
——_
1945 price,
over
4,380
8.21-
__
alone
$1946
?>k..
7.82.'
#
—
Cumulative
Cumulative
Common
——Mills per kilowatt-hour
8.10
6.10
4.89
alone——
gas
k i
Gas Company:
$5.
66%k.v.. €2Vfe%
*
3,285
;
alone
Coal
-•"
12,254,406
>'
37»/a%
year
Electric and
Service
'
•:"k"
J '/x''■
X'",-
■
612,024
paid to the public:
Public
mill for each kilo-
a
;
lli;
$ 20,122,387
cost
k:k
3,000,000
coal
disposal
ash
and
856,375
'"3,000,000
Special Charges equivalent to reduction in Federal taxes
resulting
from excess of amount paid over principal
amount of bonds reacquired,
$432,925, retroactive wage
adjustments applicable to and not provided for in 1944,
$166,948, and loss on sales of land, $12,151 (reductions
related to and applied against items charged to surplus)—
L
8,027,£23
rf k
696,668
Appropriations for Amortization of Capital
item of some impor¬
$
7,945,714
Deductions*—,
Amortization of Debt Discount and Miscellaneous'
tance in electric generation costs.
The 38 utilities using coal exclu¬
____—
per
31,722,438
%
Deductions:
Income
amount of heat
Estimated Generation Costs In 1945 at Usual Plant Factors Witk Various
Types of Fnel
Plant
$
$ 32,376,793
*
--
—
—
MCF of natural gas at an average
PUBLIC
Kilowatt-hours
474,377"
587,681
'
bulks
■
39,571
17,268
Income—
Income
Gross
watt-hour of electricty produced.
largest
And natural gas has a further ad¬
among hydro expenses, continues
to operate 24 hours a day, whether vantage over both coal and oil of
or not the plant is producing elec¬ not requiring storage,
;
of
22,571
'• '
.
element of cost.
513,948
$
614,632
'V
$
.——
Total Other Revenue Deductions—
Total
$ 31,248,050
•.
—:
—
•
24.1
152,757,339
151,779,319
$ 31,789,112'
•
Other Revenue Deductions:
$43,319,108
§-skk
t'.'V" J
Operating Revenue Deductions-—:.——
of
secured
:
$ 14,389,197
$ 41.020,212
Total
ex-
oil, or
24.1 MCF of natural gas will pro¬
could
1
6,168,132
.
heat
'
14,000,136
—
boiler fuel obtained
barrels
$109,438,231
'
$110,759,107
based or
,
at
and Retirement Expenses
rL'J".7/.
-cJ •
$ 79,446,668
79,317,663
1,061,000 Btu for each MCF con¬
4.145
.'kS
17,530,286
Depreciation
by 16 operating utilities;
6,193,530 Btu a barrel.
And
13 electric utilities using natural
oerience.
"j
Operating Revenue Deductions:
the
$184,005,394-
47,336,908
$183,668,431
47,223,959
Transportation Operations
Sjk
was
sumed.
36,638,153
37,540,386
use
gas alone as a
$100,030,333
$ 98,804,086
The
heat.
of
1044
1945
<
used
heat content of fuel oil,
31, ;
SUBSIDIARY COMPANIES—
generation cost only 53/I00ths of
a
mill per kilowatt-hour more vide the same amount of heat as
than steam.
"v,.
one ton of bituminous coal.
Nevertheless, it does not neces¬
On the basis of 1945 average
sarily
follow
that
privatelyprices, natural gas had a decided
owned electric utilities will now
advantage over all other fuels
shy away from the construction
Where the average cost of one ton
of additional steam-electric plants.
of soft,coal was $4.79, equivalent
Despite its vast water, resources
,
Companies
coal-burning than in hydro-elec¬
tric plants,
\
bituminous
Was 29/100ths of a mill
cheaper coal alone as a boiler fuel, one fan
than hydro-generation for each of
coal delivered 25,760,000 Brit¬
kilowatt-hour produced and was
only 21/100ths of a mill higher at
a 62%% plant factor.
But in 1945
CORPOR&TIONIOF.NEW JERSEY
$
1,191,271
6,503,193;
A
$
3?r».529
i;"
for
1944
amounted tci
k:k;;
$8,981,613.-
$898,161, consisting of a debt retirement credit of $601,727,
This, amount has been ^reduced by credits
and a post-war refund of $296,434.
amounting
'to
kk'.;kkkT::;k.k.:"k
2942
THE COMMERCIAL & FINANCIAL CHRONICLE
Commodity Prices and Inflation in the
;
(Continued from page 2911)
lems, simple or complex, it has
been my experience that the best
results
obtained by
are
words of
sense."
common
Common
tant
sense
than
now
| The
sticking to
syllable and using
one
is more
impor¬
ever.
the present in-
causes of
flation are easy enough to under¬
stand.
•
[ The war was very costly-r-so
costly, that it might have been ex¬
pected to make us poor. It did
make
us
poor, temporarily, in the
type of goods demanded by con¬
and
sumers
made
us
arid
businessmen;
but
it
terms
rich—in
very
of
Temporary lack of goods
money.
excess
causing
of money are what is
the
trouble,
In
round
numbers, here is what happened
in; the -four years 1942-1945:
il. The Government spent 339
billion dollars. Of these, 307"Dillidn
spent to pay for tanks,
were
guns, ammunition, ships, aircraft,
military installations,
and
other
new
activities.
war
plants
That
4.
Although
rates
advancing
increase
production
costs
temporarily, this has always been
more thap offset by greater effi-'
savings
at
an
unprecedented
ciency within -a few* years.
peacetime rate, tfntil this exag¬
5.
Psychology
is
important gerated rate of current savings
mainly toward the top .of a price has been reduced to a more nor¬
cycle, when over-optimism will mal level, consumer
goods markets
prolong the rise for a few months, should be able to absorb
supplies
or toward the
bottom, when over- as they become available.
pessimism will prolong the de¬
Before
the
public's
savings
cline.
It
never
-carries
price
movement far
natural turning point.
a
major
from current income are reduced
beyond ;its:
i
■h 6. Commodity buyers and pur¬
chasing agents are shrewd busi¬
nessmen; they may be thrown off
balance for
short
a
time, but not
for very long.
Contrast this situation with the
to
$20
1945
can
be increased to this extent,
will have to be an even
greater rise in the value of
con¬
sharply, but the supply
civilian
goods became
restricted.
more
more
National income payments rose
from 93 billion dollars in 1941 to
160 billions in 1945;
1
But factories making munitions
could make ho
cars
and refriger¬
ators. Construction gangs
military
building
installations
" could
not
homes/ There was a
new
shortage of consumers' goods.
3. The Government did not tax
away the
growing
of pur¬
excess
With
for
securities.
set up
of that sort, prices
will sometimes outpace values for
a brief period; but not for
long.
a
tied that the value of production
there is much danger of a
taneous buyers' strike.
How Will the Present Cycle End?
A
be
over
and
That leaves 1947.
inflated
prices will
go down like a punctured balloon.
How can such a drastic change
occur so
rapidly? It can happen
overnight, literally, simply be¬
cause it is nothing more than
a
reversal in mass psychology.
Granted that real scarcities
ex¬
..Will the peak
half
4.
Consequently, to finance the day, supplies of most items
deficit,
new
money had to be increasing.
bank
deposits
circulation
and
currency in
almost 100 bil¬
were
lion dollars.
The gain in supplies is not yet
impressive. It
from
time
Costs
may
be interrupted
time
to
by strikes.
rise further.
Ship¬
may
ments are sometimes
5. Individuals
and
are
unincorpo¬ held
delayed
or
back.
Sellers naturally con¬
emphasize the difficul¬
in the'last
come
in the first half?
or
I'm not inclined to
pick the last
of the year. Price advances
coming a little too rapidly.
Every advance of 10% adds about
half
are
10 billion
dollars to the value of
one or
of that sort to
unit
and you
volume
have
a
two advances
rapidly expand¬
a
of
production,
major increase in
the value of supplies.
very
rated businesses saved 136 billion
tinue
dollars. Consumers' debts
ties and the problems. Many buy¬
ers
lack information
about the
quarter of 1947 will be
true level of
demand.
I shall
if
develops at that time
were re¬
duced by 3 billion dollars.
This
simple arithmetic
why
prices
ten
are
months
still
after
shows
advancing,
the
War
has
ended.
The great increase in money
supply simply raises the demand
factor tola new order of magni¬
tude. Everything
commodities,
rear estate.
securities---has
to
be
revalued, It takes time for pro¬
duction to get under way—more
time
in
some
markets
than
in
others.
3. Don't overwork your money.
When
take
you
profit,
a
to
production and be¬
lieve
anything they are told. By
shopping
here
and
there
for
wanted items, they give sellers an
inflated idea of what the true de¬
mand is. But all the time the sup¬
ply keeps gaining.
One
more
day
some
far-sighted
buyer, who is
intelli¬
or more
gent
next Christmas. I believe the first
tant
there
impor¬
an
testing period for
not
consumer
be surprised
marked resistance to poor
and high prices.
For
the
record
a
quality
then, I believe
the
high
point
in
prices will probably
its flow.
'
commodity
in the
first half of next year I believe
the high point for official com¬
modity price indexes will be from
come
about
nothing
I said
And
the
y
theory
;he bank.
don't
immediately to another in¬
unwilling to have your money
idle or drawing a low rate of in¬
Irving Savings Bank's
New Savings Plan
4.
Savings Bank is in- >
The Irving
terest.
Don't
the
its
troducing
value of cash. Your dollar, on the
nsurance
underestimate
Savings
new
Plan called
and j;
the "PAR"
representing Protection for *
Savings
Bank
Life
Insurance, y
average, may buy 10% to 20%
less a year from now than it will
Plan
markets,
to 20%
that
it
prices
down
much
they go
more
quickly
go
than
up.
Don't
bemoan
profits you
have failed to make; you
might also have suffered losses.
may
Exercise
foresight
your
rather
than your hindsight.
7.°Don't expect that anyone will
be able to pick the exact top in
any
market
There
is
when it will
or
come.
magic formula for
forecasting. Be suspicious of any¬
one
no
who
tries
to
convince
you
that there is.
Some
and
"PAR"
The
-
Savings
a
includes
Plan
'
that a depositor may lave
protection for himself and y
lis family together with a pro¬
gram
of buying savings bonds ?
while he saves. The Irving Sav--.
ings Bank has prepared a booklet *
describing the "PAR" Plan and a •
eaflet indicating how the Plan*
works for a depositor who may
wish to save $10 a month.
This \
leaflet enables a person to de- *"
termine any amount of deposits v
per month that he wishes to save. \
addition
In
to
booklet
the
and 4
the Irving Savings Bank
is giving to depositors a "PAR"
Plan Dime Saver to aid them to
leaflet,
of
these
apply to the
speculator or the investor, rather
than the purchasing agent; but
they are all worth remembering.
Conclusions
for
Reserve
count.
forget
Bonds
Ac¬
:;he provision
from
more.
Don't
6.
may
now, in
buy 10%
Annuities for U. S. Savings
years
—
How Businessmen
Can Protect Themselves
accumulate daily
Irving
that
the
ognize that:
(a) Commodity prices will ad¬
vance
further,
probably
not
reaching their peak until next
year; but
This rising cycle
followed by a decline.
will
be
Savings
coincides
Plan
and
states ;
Bank
of
the;
of
introduction
the
with
a
-
Life In-,
Department of the Bank
deoositors
enables
to
secure
.
Savings Bank Life Insurance and y
to buy U„ S. Savings Bonds or ,
either
one
with
a
minimum y
amount of
(b)
their savings.
recent establishment
surance
•
Barnet, President oL
Robert A.
"PAR"
In
planning his purchasing pol¬
Februarys after the Holiday icies, the businessman must rec¬
shopping period. I shall be
< ;
tionary forces; but it cannot stem
he
much surprised if the public does
not spend freely and
carelessly
:
.
I'm thinking about another fac¬
tor, too. That is the attitude that
the public will take next January
and
in
of equilibrium between
prices and money supply because ;
I believe, and I think you gentle- •
men will agree with me, that the 1
main
equilibrium of prices is;
1. Don't be greedy.
If you've with basic production costs and ;
already made nine dollars, let
competitive conditions. I am quite
someone else make the tenth.
sure you gentlemen will not buy
:
2, Don't speculate for. quick re¬
commodities where the price gets V
turns. You may be lucky enough
too high, merely because your ;
to make large profits; few are
companies have large deposits in
lucky enough to keep them.
5.
goods at
ing
The combined increases in total
me
to stick out my neck.
When will we reach the
to purchase; sellers know it and
take advantage of it. But even to¬
created.
for
come
day, the supply of
peak in
a given price will not be
commodity prices?
Not this year, I feel rather con¬
enough to meet the demand.
A
few days later, at the same price, fident.
And not in 1948, I feel even
sellers will not be able to dispose,
of all they have. The boom will more certain.
one
amounted to only 146 billion dol¬
lars. '
receipts from all
market as in another. They are
particularly worth repeating when
speculative sentiment is high, for
that is when they usually are for¬
gotten. Here they are:
many
now
stage, the Federal agency
still be able to cause ripples
the strong current of infla-
may
today. But two
spon¬
Forecast
The time has
sources
Total
always good. They apply
in good times or bad, in normal
price movements or inflationary
cycles. They are as sound in one
are
will have to increase by between
20 and 30 billion dollars before
is
supplies. Add
power.
I said little about OPA because,
factor
it
*
'•$&}':■
this:
at this
of advice
rush
than
theories.
Advice
bits
vestment merely because you are
goods
production,
since
supplies will go into inven¬
tory and some into export.
\I believe the conclusion is jus-
ist today in many markets. Buyers
know this, and are doubly anxious
chasing
that
Tested
some
some
ended. On
up
Time
are
sumer
went
build
their spending-by from $15
billion above the record
level. And before spending
crease
Some
Tnere
affecting houses or securities.
Shortages
of
commodities
are
made up much more quickly than
they are for homes; and psychol¬
ogy is a far less important price
one
This commodity price inflation
will end like the last
one, in 1920,
t,
anything approaching a normal
level, consumers will have to in¬
just about the same place, but not
quite in the same time.
there
were' paid out in
wages and salaries to workers,
Soldiers, management and farmers.
;
2. Consumer purchasing power
of
to
they
moons
and
Year Ahead
savings upon which they
can
draw; what is more important,
they are still piling up current
wage
Thursday, May 30, 1946
trouble.
Both life in¬
and savings;
paid for peripurchases over odically by an arrangement with ;
sales will increase profits during the
depositor who open a "PAR*; v.
the remainder of this year.
Savings Account.
However, such a policy, while
An
excess
bonds purchases are
businessman, will naturally
the
to
A
of
it will turn the rising price level
to the advantage of the individual
tribute
premiums
surance
that
pressure
j. P. BraceJr, Dir. of
con¬
is
or better informed than the
rest, decides the time has come to 10 to 20% above current levels,
be.cautious. He quietly cut$ down' and that the actual gain will be
Com. &
Industry Assn.
forcing prices upward. Moreover,
it cannot be applied
Joseph P. Grace, Jr., President
uniformly to
all commodities. Some prices will of W. R. Grace & Co., was elected
his byying or perhaps cancels a closer to 15 or 20%. Just when the begin to decline well before the a Director of the Commerce and
few orders. A few more buyers peak comes will depend on the
peak
for
"average"
wholesale Industry Association of New York .
follow him. Or there may be a extent to which strikes or other prices has been reached. Such a for a three-y§ar term on May 21 !
spontaneous buyers' strike at the factors limit production; on the policy must be applied selectively. at a Board meeting held in the
rate of price advances from now
consumer level. Or perhaps a few
headquarters,
233
Finally, such a policy is frankly Association's
sellers, seeing the end of a one¬ on; on the extent to which there speculative. It accepts a small Broadway. Seven other members ■
way street, make some sort of might be a final speculative out¬ risk
now
in order to avoid
a
of the Board were re-elected, also §
burst if price control expires next
concession.
greater risk later. Unless it is ac¬ for three-year terms. The seven
The news spreads. Within a day March; and so on.
companied by something more, or were: Bruce Barton, Chairman of
if it is continued too long, profits the Board, Batten, Barton, Dur- •
or
two
everyone
has heard it.
Price Controls
piade now will be offset by losses ptine & Osborn, Inc.; William C.
Practically overnight it is realized
My comments about price con¬ incurred later. Consequently bus¬ Breed, Breed, Abbott & Morgan;.
that the scarcities, that were so
trol will be very brief.
inessmen should:
real a few months ago have sud¬
Walter Hoving, Fred I. Kent, Di-* ?'■
First, elimination of price con¬
(a)
Increase inventory turn¬ rector, Bankers Trust Co.; G. Metz- *
denly become fictitious. The boom
is over-r-the deflation gets under¬ trols _at the end of June would over and reduce the length of man, President, New York Cen-,
certainly be followed by sharp commitments after the turn of the tral System; Allan Mi Pope, Presi- *
way.
price advances. Unless there were year; arid
■
•
&
dent, The First Boston Corpora¬
Role of the Consumer
almost continuous major strikes,
(b) Reduce fluctuations in in
tion; Philip D. Reed, Chairman of4
The consumer plays a -bigger
however, I doubt that they would ventory valuations by using LIFO the Board, General Electric Com- i
role in ending these commodity
last through the first quarter of (last in—first out)
pany.
price advances than the industrial
next year.
(c) Not overestimate postwar
Mr.
Grace,
who was elected )
purchasing agent may realize.
Second, even though price con¬ demand on the basis of current President of W. R. Grace & Com- \
Capital goods are the heart and
demand. The- latter has a lot of
soul of the
pany .May 10, 1946, at the age of1
economy,' but con¬ trol is continued there will still
be
substantial
advances
before inventory replacement, deferrec 32, is the third member of his •
sumers' goods are its body.
If consumers should decide to¬ prices reach a peak. OPA is ap¬ demand,. and duplicate ordering family to hold that position since [
morrow
that most of the goods peasing
its enemies now with in it.
(he company was founded by his»
And he should also remember
available to them were not worth rather liberal advances. Between
grandfather and follows in the I
the price, if they should go on a the first of July and the elections this: The most abiding asset tha
footsteps of bis father, who be-',
general buying strike as they did in November, price control ad¬ can be carried over into any de¬
came President of the company
in 1920, the advance in commod¬ ministration
will
revert i to
flationary period is the good wil
tougher policy. After November, of customers won by fair dealing at the age of 34, Mr. Grace is also ity prices would be over.
.
.
What Happened Last Time
Stop
minute and think back
a
to the time of the last war.
If I
the words—postwar inflation
—what do you think of? I'll wager
that most of you think of 1920,
say
when
commodity
prices
reached
tbe'r
peak.
Actually,
inflation
the last war continued for
eleven years and had three major
after
,
phases:
a
'
commodity-price inflation that
ended in
i920;
i
.
a
j
]
lasted until about 1925;
a security-price inflation that
)
real
estate
inflation
did
not reach the
point until 1929.
;
that
breaking
iWhy Commodity Price Inflations
Are Short-Lived
i
It
probably strikes you im¬
mediately that commodity prices
didn't advance as long after the
last war as either real estate or
securities.
There
are
Why that
a
was
number of
the
reasons
case.
.
..
.
.
1. The nation's system for
pro¬
ducing commodities is highly def
-
yeloped and very flexible.
,2. Shortages are made up very
Quickly.
3. High profits attract compe¬
tition very quickly.
'
When is the public likely to de¬
cide that it wants no more of to¬
day's
qualities at today's
I don't believe that will
this year.
•'
Consumers
prices?
happen
.
have
accumulated
the visible price advance
under way again..
On the
will get
whole, extension of price
probably delay the
peak
in
commodity prices by
about three months. We'll get to
control
will
the, inflationary
preceded.
during
that
period
Now that I have concluded my
remarks,
that
I
you may
said
nothing
at
think it strange
little about
all
about
a
member of the Board of Direc-
tors of
Ingersoll-Rand, of Stone
Webster,
of
the
National
City
OPA and
Bank, and of the Northern Insur¬
monetary
ance
Company.
,
ass
■
■
'■'% Hi! 5f:'^i/,:>:v;i^ $*&
■■"/.
:
:■■■:
■•'
'
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:
.
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Volume 163
.
•
■
V. 7• i' !vv
•
•
' *
Number 4494
:
■"
THE
:
,
IMMERCIAL & FINANCIAL CHRONICLE
^,t-,&£;■
,i„:
>.'U^ V.«
;,y
utility com¬ ments in the United States, even
panies, according to the Federal under a conservative Administra¬
tion's request from
Power
Power
ments of the country's
Problems Ahead lor Utilities
#».■*
Commission, show that
salaries and wages of the Class A
(Continued from page 2$11>
tthe strongest Federal action as roads, electric and gas companies and B companies (those with rev¬
embodied in the Public Utility cannot be
economically limited to enues of $250,00d a year or more)
^Holding Company Act of 1935. state boundaries in performing are now 12 % above the levels of
-The call for Federal
services.
regulation their
Long
distance 1945, which indicates an increase
was no
greater than in the case transmission of electrical current in payrolls of some $60,000,000 for
°f other
large corporations, in¬ and natural gas began more than 1946 at present wage scales. Fur¬
cluding the railroads, : For ; de- a half century ago and has been ther accenting the trend toward
.spite the scramble to control local extended to cover the territories higher expenses of utilities, the
companies and the-pyramiding of and jurisdiction of several States. cost of coal is expected to rise
^holding companies that took place Electric power hook-ups of vari¬ about 50%., In 1945 it cost about
yamong; the utilities the situation ous
generating
centers
located $4.54 a ton and it is expected that
,;in this field was not greatly dif^- over large regions is already an the 1946 average will be approx¬
.ferent; from that which: marked accomplishment and gives prom¬ imately $5 a ton.
But the same
.^contemporaneous developments in ise to develop further into a na¬ situation to a greater »degree must
.the railroad and industrial divi- tionwide interchange of current be faced
by industrials.. They
■sions of American businesses.
and services on even an inter¬ however, will have, it is hoped,
with the end of price controls, the
The Interstate Commerce Com- national
?cale. Yet, the question
; mission
by the Transportation of State and Federal control-over facility to immediately raise their
.Act of 1920 was. supposedly given interstate services has not been prices to offset higher costs.
The
$3,000,000
tion,; cannot be dismissed lightly.
It
is
to
be
pressure
expected
that
the
as
of population increases,
regardless
dens
of the
financial
its
the Interior Department, to
spend
$2,000,000 for extension of trans¬
bur¬
mission lines in the central
limitations of fiscal policy
or
heard
budget had been slashed from
$19,000,000 to $9,000,000. Further,
the House refused to permit the
Reclamation Bureau, a division of
vast and more
numerous govern¬
mental projects to provide addi¬
tional agricultural lands and pow¬
er resources will be
undertaken
$23,000,000 to
the - Bonneville
and
Administration
of California.
This
valley
done, de¬
spite the fact that when the Appro¬
the priations Committee was gathering
was
that the nation may be confronted
with,
and
notwithstanding
possibilities of the industrial
use
testimony on Which; it based its
However, these recommendations, ...witnesses for
are relatively re¬ the
Administration
and
other
of atomic energy.
developments
mote, and will come about gradu¬
ally, so that present investors in
Federal
utilities need not be seriously dis¬
turbed.
Certainly, the risks to
panies by pointing out advantages
of public power.
capital
arising
out
of
changes in technique,- in
power
sought to
groups
discredit the private power com¬
future
Yet, it would be foolish to
con¬
public
demand, and in political action
:>an iron bound
utilities must go through the slow are no greater in the utilities field
1927
the
State
of
straitjacket control settled* In
•.over the railroads.
Their finances Maine proposed a law prohibiting process of investigation, review than in any other sphere of human
and decision, before they can raise undertakings.
-as well as their
operations were the transmission of electric cur¬
.severely supervised. They, were rent generated within the State their charges*
Moreover^ there appears to be
This is something which may
-expected to be stabilized on a for use outside of the
State's,
a movement ill Congress against
interfere with the
sound
vestors should be as much alert iii
immediate expansion of Federal
to what happened to canals, turn*
and
secure
But what
investment basis.
the
speculation fever that character-
the
The
♦ized the period pervaded the rail¬
road industry to almost the
degree
of
it
as
marked
the
same
realm
utilities and industrials.
And
industry.
Of course it is hoped,
(and the hope may be realized)
that expansion of business and
constitutionality of such law,
Insull
their
transferred
interests
hydroelectric power projects
Hampshire.
About this
technical
improvements will off¬
set higher
operating costs, and
that
with
lower interest rates,
capital can be obtained even with
New
to
time, the Supreme Court in the
East Ohio Gas
this, too, under Federal statutes
i-which purported to assure con¬
to
Ohio Tax
vs.
of electricity
servative and wise financial
Go.
man-
Commission decided that the sale
•agement in all categories of rail-
interstate
•road management.
current has
■
The enactment of the Utilities
terstate
'Holding Company Act, following
But
'the most
Case
thorough-going investi¬
gation by the Federal Trade Com¬
mission of the utilities companies
-that
has
been
ever
business
made of any
organizations in this
'any other country,
a
was
or
in effect
drastic
piece of legislation.
It
accomplish at one stroke a
.was to
preformation that in the
railroads
and
of the
case
industrials
took
a
.half century to only partially ef¬
fect.
The
if
operating profit margins.
with some exceptions,
advantage in such a situ¬
ation, in that their labor and ma¬
in¬
by the
even
company.
vs.
S. 83)
it
that Rhode Island had
was
authority to issue an
affecting rates charged by a
company within
its borders on
electricity sold to a, Massachu¬
order
setts company, as the contract be¬
tween the two companies was one
rates—and, in time,
get them.
.commerce.
over¬
mind
It may be assumed that the out¬
uncertainty
regarding Federal and State pow¬
ran
roughshod
Federal law
State's rights
over
of
come
.and property rights. It confiscated
.without compensation. It replaced
ers
.private
the
with
govern¬
ment edict.
| ' Undoubtedly
>
some good has rethe reformation.
It
suited from
has curbed the wild, promiscuous
fscramble for operating plants.. It
;has led to
more caution and
cumspection in
cir¬
utility financing,
f And it has curtailed highly specu¬
lative utilities expansion. But it
-has not improved the mechanical
for technical skill in public utility
ioperation or management. It has
•not given better service to the
utilities
over
final
a
regulation
assertion
result
not
only
of
because
The
York estimates that in this State
alone, the cost to the public for
utilities
services
since
1930
was
$800,000,000 less than in previous
years,
after making allowances
for increased consumption.
of
Su¬
preme Court (which has invari¬
ably favored expansion of Federal
Government and Public Owner¬
emn cre*K
ship Competition
power),
but also because of the
evident tendency of the SEC and
the Federal Power Commission to
two
been
down. '
Public Service Commission of New
will
Federal
the present personnel of the
last
rates have
scaled
Probably
'
.
0
prob¬
lem than that of adjusting rates
more
a
severe
"
utilities commis¬
sions
in
all
matters
where, their
jurisdictions interlock and in all
additional matters where conflicts
'may develop,
♦
there is
no
assur-
that this policy will continue
in the light of the trend toward
ance
-further'
concentration of regula¬
V
I
wmt-K
intrastate rates have eS'me under
undertaken at
the regulatory
powerS^f the In¬
terstate Commerce Commission.
"
+
a"
'''
rrr^ioAiMios
'
Q PLANT LOCATIONS
•'..
The Future of Utilities Rates
The problem of adjusting utili¬
ties rates to. changing conditions
taxpayers'
expense,
The
Columbia River Power Sys¬
tem
which
Coulee
operates
and
the Grand
Bonneville electric
of operating costs and profits has generating plants, has already a
hot yet become a matter of much Virtual monopoly; of pbwer trans¬
Although several secmission in the Pacific Northwest.
concern, since under wartime and
lions' of the Act, as originally
Its $17.50 per kilowatt year rate
postwar expansion, profits of pub¬
'enacted, appear to; protect State lic service
corporations have been set? up, a yardstick that private
i
«
..
T
-
/
MftB
'
S"
10BAM
i+
y
,
m
v
■
1Nthe industrialist seeking favorable location
the territory served by the A. G. E. System*
will find
abundant
natural
include the world's greatest
Without
regard
to
operational
profits, may be a thorn in the side
of many private power concerns.
a
4
,
1A
H
|<jr
to
increasing operating costs will
enlarge the scope of* their relec¬
be the competition of Federal and
tive authorities.
As in the case
of the Interstate Commerce Com¬ municipal owned utilities projects.
The TVA with its ^yardstick" ob¬
mission,
a
limited
juridiction
jective is to be reinforced by
'public.
It has not solved the leads, through successive Congres¬ other similar
ventures—possibly
sional amendments, to an all-out
; intricate
problems and difficulties
on a larger scale.
The increase in
control.
The State public service
: involved in public utility valua¬
municipally owned and operated
commissions
will
be
gradually
tions and rate making.
And it
plants, the outcome in several in¬
and, although they
has not affected the relationships submerged,
stances of the break-up of holding
.of public service companies and may continue to exist, their activ¬
ities and authority will be greatly companies, is another factor to be
the public.
.
\
*
- •
'
reduced.
Even local rates are coped with, and the competition
Although the SEC in its execu¬
of power producing facilities aris¬
likely to be matters for Federal
tion of the Public Utility Holding
ing out of irrigation and drainage
jurisdiction, just as jn the case
-Company Act has;endeavored to of the
projects as well as from waterway;
railroads, as decided in the
follow a
policy of cooperation
and flood control improvements
Shreveport Case, (23 Fb. C. p. 31)'
"with the State
'
Industry
likely to
are
the
during
substantially
either directly or indirect¬
ly, over local as well as interstate
public service corporations. This
will
Here's POWER for
It should be borne in
that
decades utilities
present
power,,
judgment
be
of this.
Southwestern Power Administra¬
moreover, are low, and, through
widespread refunding, capital
charges of utilities- have been
greatly reduced.
However, the
utilities, along with the railroad
and other public service institu¬
tions, are likely to demand higher
held
consti¬
no
rode all constitutional scruples. It
new
occurred recently when the House ways, almost all of which are on
Appropriations Committee cut the the junk heap, is sufficient proof
are low in proportion
capital charges.
In an infla¬
tionary atmosphere, this is a great
advantage. Present interest rates,
tutional
affecting interstate
Evidence of this pikes, street and interurban rail¬
projects.
to
Public Utilities Com¬
mission 273 U.
forecasting them as others who
venture their capital in more risky
enterprises.
A glance backward
terials costs
(Attleboro Steam and Elec¬
tric Co.
an
Attleboro
selling
so-called
the
in
Utilities,
have
the
been transmitted
commerce
power
Utilities in*
lower
or gas by a utility
public does not constitute
the
order of civilization.
stabilization of
Rather than contest
boundaries.
same
happened?
sider the utilities industry as sta¬
bilized.
Constant change is the
ing
the
which
coal fields. Produc-
f
from these fields and solidly inter¬
power
connected by a
are
resources
network of transmission lines
eight principal
power
company's central system.
plants in the
These and supple¬
tory powers in the Federal Gov¬
ernment.
mentary steam
and water
power
plants provide
-
-jurisdiction and regulation, the
tendency for the SEC to reach out
for
more
already Ifully
demonstrated in its short history
of slightly more than a decade,
-'will
undoubtedly
assert
itself.
Gradually local controls of operapower,
*
generally
maintained
ings
apparently
are
and
earn¬
sufficiently
adequate to attract capital invest¬
ment.
But
should
inflationary
tendencies become more serious,
tions and rates, as well as of fi¬
'been
the
be invaded.
experience
in
Such has
railroad
•regulation, and there is no assur¬
ance that public utility commis¬
sions may, in time, become as un¬
important and as inactive as the
State railroad commissions.
This
of
danger lies in the spread
utilities service beyond state
lines.
As in the
case
of the rail-
;
tion,
tion
just
easily and
their prices
The
Utilities
can¬
readily ad¬
as
industrials.
to
anti-inflationary controlling
tion
Thus, the recent monthly state¬
t
that
company's
duplica¬
AMERICAN GAS AND ELECTRIC SERVICE CORP.
be
sold
.
that such
wholesale
ATLANTIC
existing companies at fair rates.
No
to
the
recommended
should
will be
cies.
cost power.
-
wasteful
* was
and
power
already are faced
with the problem, and have peti¬
tioned for higher rates—objection
to which has already been filed
by the OPA and other pseudo
agen¬
stockholders
customers in
territory
railroads
as
informed
Government sale of power to pri¬
after World War I.
as
pool of dependable low
dent of the Middle West Corpora¬
vate
not
match.
Recently Martin Lindsay, Presi¬
the matter may again be of con¬
siderable concern, just as it was
.
nance, may
concerns must
2,447,200 horsepower capacity—a tremendous
one
what
at this time
extent
can
these
undertaken in
activities
in
view
of utilities
gimes
in
But
the monopoliza¬
by socialistic
Europe
and
re¬
elsewhere,
the possibility of; similar experi¬
ELECTRIC
ELECTRIC
INDIANA & MICHIGAN
KENTUCKY
the future
under Government auspices.
having
APPALACHIAN
predict
Principal Affiliates
CITY
KINGSPORT
„
THE
AND
VIRGINIA
POWER
UTILITIES, INCORPORATED
COMPANY
WHEELING ELECTRIC
COMPANY
m]J
COMPANY
ELECTRIC COMPANY
WEST
OHIO POWER
"
COMPANY
POWER
,
.
i,'
-1
' <
'
^
COMPANY, INC.
1
'.a
J
|
/
"
8;]
l|
THE COMMERCIAL &
2944
FINAlicIAE
freely among the nations.
'
Our goal, then ,is more produc¬
tion and more strade throughout
A Goal of
public debt.
While our receipts
have; remained high, our expen¬
ditures have been cut: in rapid
Prosperity and Peace
(Continued from page 1921)
broad principles and oUr laws arc
"applicable to all.
And so," our
laws "arerespected and areeff ocr
live.'
The
who
men
make," exe*cute; implement ahd'lnterpret our
laws are public servants and have
Reconstruction
and- Development
ihstitutibh'sT/-
effective
Building the kind/ ^ Ij^ion
and
wofld We want" requires; constant
vigilance, and unstintedTeffofck in
,
problem wherein the.very strictive trade- measures should be
of .the problem is. the re¬ alleviated
;or *
abolished.
The
lationship ^between nations* .No Uriited;\States /has :■^proposed^^/ tha^i;
to
solve,
put its budget
all of these field&;/vTom£ht, I
on a peacetime basis. - > /
Shrill'/ speak/chief lyjdifethe^^i
-We often- spend today: to save
nomic;; ,situation:/in our; . coiintryj
tomorow. Rapid settlement of war
luimanitarianism,^ and ; life
arb and rimorig nations;;' ' v*
We have had our share of irri-, -contracts, for -example, increases
added to our system.
To say that I
the Government's immediate ex¬
<wr government is
either a gov¬ "tations and disappointments sincependitures, ibut speeds reconver¬
V-J Day, nine months ago./Not
ernment of laws or a government
sion to put our economy and the
©f men, is to me a false dichotomy. all. of
our: kjrifolk and friends
Government's finances in a sound¬
Ours Ms. a government *. both of could return immediately to, be
er position for the long haul. Con¬
laws and of men.'
with/iis.
Our. responsibility for
tract ; settlements have been very
V'/We; must "not ' Only set a good world order continued beyond the
rapid; they, wilt be practically
•example politically, socially, and day that actual warfare ceased.
completed by the end of this fis¬
refrigerators,
and
culturally, but also economically. Automobiles,
cal year.
In view of the speed of
.This requires • the maintenance of nylons did not
appear in. our
demobilization and reconversioh,
a
A production
sound, expansive economy in stores overnight.
and the pushing forward of ex¬
machine had to be changed over
/our 'hation/ : A sound economy
penditures which it has involved,
means an economy that affords from the ways/of war to the ways
I feel that our record of reducing
full production and a high na¬ of peace. Transportation was not
the current rate of total expendi¬
tional income..
A sound econ¬ always available;
Our distribu¬ tures
by over 50% since V-E Day
system could not recover
omy smeans an economy that af¬ tion
is remarkable.
fords work for those who want automatically from the strains of
: Meanwhile
our
receipts have
to work, at "a* decent return for war.
Many have been restive as
been: welT maintained;
that h work, whether it be as an a result of .wage, price, or raw
first 10 months of this fiscal year,
employee, an employer or a farm¬ material problems. Some days it
July 1, 1945, through Apyil 30,
er;!
In short, a sound economy seemed that we solved one prob¬
1946j our; net receipts were less
/means- that all'forms-of business lem:: only to be confronted • with
than 5% below the corresponding
another, or tvvo others.
activity, are .going in high gear,
period the previous year when
s. The basic principle underlying
we were,at total war. - Unl'esl our
Postwar Accomplishments
; that
sound economy will be our
receipts and expenditures picture
one
.
h
;
us u ai greater
nation.
We must
show the world that it is possible
for all groups within a nation to
have economic security and a full
opportunity to reap just rewards
-initiative, talent, andjndustry.
That, in summary, is what we
for
1
must do in
,.
we
our
must do
a
own,country. But
second job in Order
§tep; back and view the
over-all situation in perspective,'
however, we-readily realize that
we have /made much progress in
the short period: of nine months
since V-j Day.
Our reconversion
is well along. Nearly 100,000 war'
contracts
were
night
cancelled
over¬
when
Mofe
than
Japan surrendered.*
5,000,000 men were
discharged front military service
by the end of the year. / .These;
to
plants and
best-
:
to peace. ; In fact, our production
of peacetime goods reached an all-
discharge our duty of leader¬
ship, and that is to be the world's
proponent
of
international
cooperation. This* too, means at¬
tention and work on many fronts.
We / must do everything in our
/ power to achieve genuine cooper¬
in
ation
the political field.
The
institution of the United Nations
time
,a
.
standard
new
j law
and
.
of
in setting
international
justice;,/,. This includes
rious
^
/a
respected; and
merito-
tribituiaX.;; like
Supreme Cburt.
our
.own
In this country
/ we have long accepted the fun¬
damental principle that;a man
may
pot be the final judge of his
cause,j Gradually this con¬
cept must be accepted by the peo/, pies of all .the world.
/ We must lead the way in inter¬
national cooperation on economic
own
matters.
This
includes
making
the Intern a Uonal Monet* ry Fund
and
the
gone back?
high by March. This is diffi¬
fact, and we shall see
when the supply lines
a
filled.
the results
have been
\
Our national income is at a high
Not nearly so many have
unemployed as was ex¬
level.
become
While the pressures of
pected.
inflation have been terrific, a re¬
makirig|tbe Jnte^
Justice
have
cult to believe, for we do not See
it in our stores.
Nonetheless, it is
must succeed.
/ We must lead the
way
men
International
Bank
for
markable, job has been done. Our
values, therefore, are not distorted
as we swing: into/this peacetime
high-level economy. /■ While:; we
have
in
a
had
were
This
our..headaches,:
we
are
much
bette^ position than we
after..the first world War;
timeywe
have
a
fighting
chance.,;to do the Job right, at
howand-abroad.. - *-;/
•
/ One- of /the/ best evidences that
we
are
are
in good shape is that we
..well
on
our
way
to balancing
|heS/j3udgeti|];a^/Tiaye already
arir interna¬
./; .:v,. »
:
there
established
be
an
interna¬
tional trade organization to meet
many
strictions and discriminations that
United
Nations, and the In¬
Monetary: Fund and
International Bank for Re¬
ternational
the
construction
and
Development.
of these problems.;
of
time
the
at
I wish to place particular em¬
upon
the last two, the
World Fund and' Bank. -At "Bret-
phasis
Britain^
American-^
the
Agreement,
agreed with us on all of the main;
principles to guide a proposed Ini
ternational Trade Organization^;
The
Financial
Agreement/
moreover, meets directly several
of the most important trade andi
currency obstacles that now ex-/ist.
Basically, the Agreement
Financial
British
a
contract between
tries
our
two coun-i
trade and currency poli-*
It has two major aspects,.
on
cies.
.
if provides that Britain will
First
abolish
trade
and
world trade;
Second, it provides the financial
wherewithal that makes it possi*
ble'for Britain to remove these
restrictions and it requires the re-
payment of that financial aid*.
:
The underlying purpose of .this
agreed Financial* Agreement
between
Britain and the United States is to
upon
the .basic /principles that
should govern these two institu¬ make it possible to; follow;/the
and; doing our part in reestablish¬ tions. Bretton Woods is perhaps principle of fair and full world
ing: production and trade among the best example1 that we have; trade. A large volume of trade'
the nations, it now appears that seen of so many nations getting between countries benefits Amer¬
we can have a balanced
budget by together and working together to ica, benefits Britain," and benefit^
the end of our. next fiscal year, solve their common problems in the whole World.
the. interests of bettering the eco¬
Juiie 30, 1947.
Our export trade is a vital link
in American prosperity.
; /In view of the fact that our po¬ nomic Relationships among all na¬
Even /
sition, is better than we expected, tions, as well as in their own when our foreign trade was sev-i*
that is, our expenditures are much self-interest.'/-;," /
/ y /:/] erely/rieduced'^ during the/ '30s/qur /
less, and our receipts are much
By the end of 1945, more than exportsMvfere some 7 or ■ 8%f ef
enough countries had ratified this our ' .agricultural and industrial
higher, we arb using some of the
money on hand to reduce the pub¬ Work of their representatives so production. Foreign trade meant'
lic debt.
By June 15, the debt that the organizations could be the difference between prosperity
will be more than $10 billions be¬ established.
This spring in Sa¬ and depression for many' of * our*
low its peak reached in February. vannah, Georgia, there was held producers in the factories and on
That is a sizeable reduction, and the
Of all our foreign
Inaugural / Meeting of the the farms.
World Fund and Bank.
we had no significant reduction
At this trade, no part was more import*
before thus for 16 years.
meeting there was further imple¬ ant than that with the British Em¬
We have made a start on the mentation of the basic principles pire.
•
toad of high production and in¬ which had/beeriZ;agreed 4o; at ; It is a noble attribute to learn
come.
We should not lose the ad¬ BrettonWoodsy'More imports^ from experience, and it is veryj
vantage of this good beginning. at this meeting there was a re- costly: characteristic not to do so/
We will be helped' tremendously dedication to1 the proposition that Wft/riiusttriot; forget^^the lessort/bf
diij triairitainiiig ; itlils//highMeyeJ? the, nations/cbuld live;rand work the decade before the war; when
economy by the fact that we have together/ in ijeaC^/rind/prosperity/ our industry and agriculture suf-t
is
ton
significantly altered, and the
prevention of that includes doing
our
job in maintaining a sound
arid expansive economy at home,
of
Woods,/ representatives
40
than
more
countries
■
.
.
developed
Our faith in the future was re¬
martd.
freshed.
a large reservoir of deAll through the war, we
have done without' many consume
•
ef goods that we want.
We want
to improve our standard of living.
•
:
-
These "two
\
^
institutions will go
fered from trade and currency re¬
strictions.'
The
exports 'of;rthe
United States;were: harder/ hit: by
of any
devices than / those
far
these
have
warfare, which/ usually, leads in
always, had—the means to do
This accumulated demand can,
the end to actual shooting. These
other country.. Im 1928," our share
of wor|d exports ;was 15.8%/ of /
the: World ;fotah of $32/5;billions//
And
not
it.
we
have what
now
we
in removing economic" prob4
leiris that often lead to economic
institutions are cooperative enter¬
prises of governments. As such
they must riot become just two
barring inflation, be the flywheel
of our production system/ for a
long time to come.
All Ameri¬
cans can be more optimistic, with
justification, about their future
than at any previous time in our
financial, institutions.
more
,
It
is rather difficult for
-
us
.
■
in
America to realize the physical
devastation that was caused in
history.
many lands by the war.
These
nations must reconstruct in order
This American prosperity which
we have, and shall continue to
have, is an important factor in the
that
they
can
produce
and take
BySl934pouri^^shrire :riflw6rld/ex^;
ports was 11.5% of the world to¬
tal of
$18.5 billions. This drastic;
a large contribution
depression in indus¬
decline madeto the severe
try/arid the collapse in agriculture
that we experienced,
►,>
Particularly hard hit were oup
exports of wheat, cotton, tobacco
and lard.
From 1925 to 1928, we
annual average of
their part in a sound world econ¬
sold abroad
omy.
more
economy.
The International Bank will
Offer aid to.these countries in the
cannot have
reconstruction of their
four products. From 1931 to
our annual average was less
of
assurance
stable
a
world
It is Often said that we
prosperity in Amer¬
ica if the world is in an unhealthy
economic
do
condition.
•With
that
economy^
aid which could be secured in no
1
Other
not
disagree, but I emphasize
the converse, that the world does
not stand a chance of having a
sound, stable economy unless we
are
a
prosperous
Members New York Stock.
Other Leading
Exchange and
Exchanges/.
underwriters and distributors of
|1 /./Investment securities
/Brokers of bonds, stocks/commodities
Private Wires •Home Office: Atlanta • Phone LD-159
This supplementary
be" given" in terms fair tcj
both the lender; and the borrow¬
er.
The capital of the Bank will
be primarily a surety fund.
The
loans will be financed almost en¬
nation.
the
past' we
contribute and
have
ofteri
We had many
found nations interfering with the
of trade between nations.
contribute greatly,
world that is stable,
political¬
ly and economically, by having a
sound, / expansive
economy / at
national
forms of economic
the ,'30's which in¬
depreciation.
home.
*
/There
/
•
-
' •
are, -
•
cluded
;
things we'must do. to improve the
economic situation among the nations.
We want- high levels of
in
warfare
\ *
however, / other
•:/
devices: such
member
j
:
.
as
currency
Through the Inter¬
Monetary
Fund, / the
nations / will;
remove
monetary restrictions , and substi¬
tute fair " standards Of currency
j exchange. This will greatly aid
only in America,' in creating a' volume of World
but throughout the world.
We trade far greater than we have
want tne guoas that are created to ' ever had before.
nroduction
not
billion
these
on
of
lack
of these
four
1934#
/than
items.
abroad, for
markets
agricultural products was an
important factor in the decline of
nearly 60% in farm prices in the
four years
between 1928 and-1932.
Exchange Restrictions Should
flow
a
The
..
In
today the most influential nation
in the world.
We are going to
to
$.5
an
than $1.25 billions
our
tirely by private investors.
; This is simply one of the corol¬
laries to the basic fact that we are
BANKERS
way.;
aid is to
.
INVESTMENT
re*:
currency
in effect during the war and
which would be substantial ob*
were
stacles to peacetime
The World Fund and Bank
v
we
•
The wajr to solve international
problems is to obtain cooperation
among the nations.
The United
States r has •: long //advocated this
policy of international coopera¬
tion.
With us, it -has been "more
than a high principle.
We. have
done
something* about it. We
have done something about it, for
example; through the Reciprocal
Trade Agreements, the ExportImport Bank, the United Nations
Relief and 'Rehabilitation Admin¬
istration, the International Food
and Agricultural Organization, the
Social and Economic Council of
.
If
problem.'
the
^
.
,;
.
.
nation can meet
tional:
,
Our
.system of free enterprise has built
us a great nation.
It will build
a
essence
the.public interest as their guid¬
ing- principle. - And thus, equity,
/principle of free enterprise.
Britain ;
We
,
time to come. Contrary to the im¬
pression that many like: to hold,
Washington has made a Whole¬
effort
"/'
have, then, developed, manj^
the world,
To accomplish this, concrete,
practical measures to
we must work to remove the dis¬
wipe out international economic
criminations arid restrictions that diseases/and are developing more.
hamper production and trade.-The There are ' niany; harmful trade
removal of such economic barriers and nmhetaryrestrictions/existing
is,-bytheTveryna1xire/oftheprpb- that- are'^ not/ wanted, { but/ which
,lem ^a joint undertaking.
No one may ;bec6risidered / heCessaiJr "uri*;
nation, • no matter how big or til a clear alternative; cah be seerij
These other/re^
strong it may be,, can successfully and followed.
The Federal Government spent
$9.7 billions last June against $4.2
billions in April, and that rapid
decline will continue for some
hearted
/j
Financial Agreement With
flow
made substantial reductions in the
International Cooperation—
Tliflrsda^, May
CHRONICLE
;
/ Our
Be Abolished
;
/'
foreign trade cannot reach!
v
the level necessary
the
if
prosperity
resorts to currency
strictions.
Unless
r
;/
-
for American
world
again
and trade re¬
producers
our
have access to worl4
fair and equal terms!
and exporters
markets
we
our
will
on
not-be able to
which
fields
have
we
such
bacco /and
as
must
long
raising cotton,
have
ii^
Specialized,
wheat, making
biles, machinery
We
maintain
production in those fields
to¬
automq-^
and/equipment!
a
high
level
of
J/plume 163
Number
THEGpiptERGIA^J^inNA^qiAtjCHRONI)P^E^
^4494
2945
------------------I
foreign trade to have high levels
of. production,,, employment and
London,
national income in America.
was
Sectors of
All
all sec¬
tions of our country, are directly
or indirectly
dependent upon that
foreign trade*
r
■
4
our
economy,
.
International economic cooper¬
ation and the expansion of trade
'v;
all the nations
in the, interests
among
initely
are
def¬
of
each
Country
and of all countries. When
countries exchange their surplus
products, they, all gairi. .It
in
If dollars
were
needed
the
sterling area, application
made to London for an allo¬
dollars
that, she
means
cannot
make < sterling
convertible into
dollars until the blocked sterling
cation.
London allocated the dol¬
balances
lars
the basis of the most
that she cannot permit the sterling
on
es¬
settled;
are
It
means
sential needs.
In order.. to con¬ she pays for her imports to -be
dollars, London made no^al- used freely in any country, and
location to buy goods in America
particularly in the United States.
if they could be secured from any It meaiis- that
she must continue
one of the sterling area countries.
the dollar pool.
; .4
7
This device really puts a brake
To remove Britain's shortage of
pn- buying American .goods. *
f • dollars and to eliminate these
serve
means
Continued.
;
These wartime controls bring to
tnind such terms as sterling area,
of
and
income
in
,which sells, and it
goods
and
a
a
the
higher
country
means
better
more
standard
of
living in the country which buys.
;
During the war, Britain adopted
Certain currency and trade con¬
trols. These controls are still in
effect.
American
not afford to see
business
these
can*
controls
blocked
sterling, and the dollar
pool, What do these terms mean?
Living in the United States, we
are accustomed to
money in the
form of dollars and cents.
We
earn dollars
and we spend dol¬
lars.
v;,';
V V ' ;y. •;
;■
putside of this country, there are
.
;
.
Other currencies.
There
are a
few
controls.;- '
This means;,y ■
(1)
All
countries
of
the
ster¬
ling area will be; allowed to use
the proceeds of their exports to
England to buy goods in any other
country,
including
the
United
States. Sterling arising from cur¬
rent
trade
will
be
made
convertible.
.
fully
-
(2) All countries of the sterling
it means the
kets of
our
products
farms.
opening of the
mar¬
best customers to the
of.
factories
our
and
4It
means a larger Amer->
ican share in a larger world trade.
:
The
alternative
is
unhappy.
as
it is clear.; The great dangerv
us is
the division of ther
world into conflicting blocs;
.We';
as
before
trols
-
.
These
.
restrictions
are
in
still
.
.
done.
A loan to Britain will
she
help bal¬
the difference between what
ance
must
buy
abroad
what
and
the United States to England will
be paid for in dollars or in ster¬
to
ling that is convertible.
is
(4)
England
will
settle
the
adopt
the
fair
trade practices
we
currency
and,-
advocate, there;
every prospect that the; Fund
and Bank will succeed in their
Work
They-were necessary dur¬ she sells, until she reestablishes a blocked
sterling obligations out 61
ing the war. They helped Britain full flow of exports. During this
find
her own
^and that all countries will
of
inter-country
ap¬
plication, but the world-wfde
cur¬
rencies are primarily the dollar
and the pound sterling. If some¬
one abroad wants to buy your cotjon, tobacco, wheat, lard, ma-
and
mobilizing her resources
transition
-
ain must find
some means
to pay
for her imports,
Chine tools, or automobiles, he.has
to have dollars or be able to
Change his money into dollars,
; In converting money from one
form to another,.restrictions and
obstacles can grow up or be im¬
posed. If there is not free con¬
vertibility, there is a brake on
trade restrictions.
The loan part
of this Financial Agreement opens
line of credit Of $3% billions.
a
Britain Needs Loan
'
This line of credit is a
loan, not
Britain, as an island nation, re¬
gift. The principal must be re¬
lies heavily upon foreign trade. paid.
It is, moreover, an inter¬
During the war, what she shipped est-bearing
loan.
The
interest
in
and
bought and what. she rate of 2%,. beginning in 1951, is
shipped out and sold was thrown not a nominal rates; for it is quite
out of kilter.
In 1944,• she ex¬ comparable to what it costs your
ported only 30% of what she did Government to borrow money,
a;
.
In addition to the fact that the
financial aid is
a
repayable loan
and that Britain will
the
remove
trade and currency controls which
I have just discussed, it should be
remembered that the bulk of the
dollars will be spent in the United
that kind of
;
a
Two world
-
world.
wars
4
and
world-f
a
wide
depression have taught this
generation the bitter lesson that
the only-road to peace> and world
prosperity is through international
cooperation. ; The political • and
States,, and those that are not so
economic problems of 4be world
spent in the first instance, will
cannot continue to be solved
by
eventually find their way here.
trade between the nations that use
This; will increase the business of force, That road leads to destruc¬
tion.
our industry and agriculture.
different forms of currency.
in 1938.
Her5 exportindustries
The Agreement provides that
;
;The
M When we speak of the sterling were converted
political and
economic:
to4 war produc* this -interest will be- paid, except A
Step in Preventing Economic problems of the world can and
©rea, we are referring to the coun¬ tion.
She lost a large part of
Warfare
under; certain
temporary
.de*
must be solved by international
tries that use the pound sterling
her merchant fleet.
Her income
pressed conditions which are ob¬
This Agreement is a big step in cooperation. We are on our way
form of currency. These are the from
foreign banking and insur¬ jectively defined
countries of the British Empire,
ip the Agree¬ preventing economic warfare. It on this road. It requires hard
ance services declined.
She sold ment. In case of such
depressed is a big step in creating a world work, constant attention; and true
except Canada, and some Euromany of her most marketable for¬
conditions, it is thought to be far in which countries live and work devotion. But the road leads to
pean. countries who keep their
eign Investments and has lost the better to waive the interest for
.
>
monetary
reserves
in the form of
sterling in London. Australia, for
example, keeps its reserves on
^deposit, in England's banks.
4" Before
area
war,
the
sterling
on
these
to
buy goods anywhere
the world.
If an Australian
reserves
Sn
the
countries could draw
firm wanted to buy American cot¬
ton, -it sold fsterling for dollar^;
During'4he war, however, Brit*
sin had to stop this convertibility
of 4 sterling,
That meant that
sterling was blocked. Its use was
restricted.
Britain had
to say to
the countries of the sterling area,
inconie from them.
:
:
Britain
must
that
,
somehow
make
temporary
force
a
period
default
on
good the fall in her foreign income,
she must import heavily
to feed her'people and her fac¬
tories.
Her exports are off, yet
the
to
entire
amount of the loan..
she
than,
together in pea£e and prosperity.
the
For England, it means a chance to
feed her people and reconvert her
has
cannot be converted into dollars.
You
can
use
your
sterling
for
payments to each other,
making
jbut not to outsiders.
The primary reason for
Restrict¬
ing the convertibility of sterling
tyas that England did not have
enough dollars and gold. During
the war, Britain sold $4.5 billions
Worth of her foreign investments
to
finance
heir
expenditures.
Moreover, she incurred the enorfnous foreign debt of $13 billions
in the form of sterling balances
in London banks, and sterling se¬
curities in the. British Treasury.
import,
a
tremendous
volume to live. She does not have
the dollars to; pay for the^e im¬
be
repaid
use
of
the loan, which is to
with interest, Britain
promises)Tto; remove ' .within' - a
Moreover, her shortage of year, unless we agree to a tempo.
ports.
"SECURITY AH9
BEST LOCATION
INDUSTRY SURVEY"
"
V
Britain had
block sterling.
.
ta.y;
s
1
FOR SMALL PLANTS
up to
•
••employing
64 Fact-Filled
100 workers. In the excellent smoll towns of
Georgia you'll find friendly, native-born workers,
climate,
row
materials for many
industries
• • .
a
iiwyfi
Pages, covering 34 Industries
To the alert investor, our new
Security and Industry
Survey offers a sound approach to investment plan¬
ning by providing factual information, .impartially
presented, covering leading industry groups and rep¬
mild
rich,
resentative securities.
expanding markets
Write Industrial
are
closeby.
Development Division, GEORGIA POWER
COMPANY, Atlanta, Georgia
Specifically, the new "S & I SURVEY" includes:
i
Review and analysis of the current position and 4
-;
.
#
'
>
4
V
2
7'.:.
\
Selections of Pre-planned Portfolios for the invest# ment of different amounts and for varying objectives.-,
r
'
I
j
-
* selections of .individual issues for specific purposes.v ^
*
J
..
-
"
.
for war needs. This was done
through the so-called dollar pool.
*The dollar pool worked as fol-
;
*
^ Sections on U. S. Government securities (including I
7
ize all of her dollar resources to
of 34 leading: industries with" :
3# Factual appraisals
r
to do more than
She had to mobil¬
outlook for both business and the securities markets.■
v
Other currencies. She had to block
*
<
the money in
must
In, consideration fOr the
hot convert such
amounts v into dollars or
Sterling.
'
What Britain Promises
<
Britain 7 Could
large
goal that mankind
set~enduring prosperity
and peace.
;.
India,
Egypt,
greatest
eyer
because
Australia, and
all the rest, your sterling reserves
to
a timely article "The Outlook for Interest
Rates"); '. ;;
railroad,; utility and corporate bonds; preferred
stock's, and a listing of consistent dividend-paying 4 "1'
common
stocks.
<
.
*«
-k
-
"
"
^
i
pay
\ .When
an
Egyptian exporter sold
jgoods in the United/ States, he
furned over '.the dollars- he re¬
to
ceived
fegypt
the National
Bank
of
and • received
Egyptian
pounds. V The National Bank of
Egypt sold these dollars to the
British .Treasury for sterling. The
dollar
receipts of the sterling
f
.
fcrea were in this way
pooled in
;
.
it advantageous to be
in
resources, not out of the
period her imports will loan. The funds that are released rather than outside these institu¬
devoting them to war purposes. for exceed her exports.
tions.
It must in settling these
balances, whether
These devices, however, are dan¬ be
added, however, that though now or
If England finds it
later, will be available
necessary;
gerous in peace.
They restrict her imports will be large, her re¬
for purchases in any country, in¬ however, to keep her wartime
trade.
To restrict trade in time
sulting standard of living will not
currency and trade restrictions, it
cluding; the United £>tates,
of peace is to force poverty on be much different from
the aus¬
(5)4 England will support* the will:result in a British bloc, an:
the world.
tere level she had during the war.
and a Russian
American proposal for the estab¬ American bloc,
England and the other sterling ; The American-British Financial
lishment of an international trade bloc. Such a development would
area countires,
as well as our¬ Agreement goes directly, to. the
organization for the reduction of probably be an unsurmountable
selves, do not wish these restric¬ two basic problems pf. eliminate
trade barriers and for the elimi* obstacle to peace and prosperity^
tions to be continued.
Nonethe¬ ing Britain's shortage of dollars
No country wants »that'kindr of a
nation of trade discrimination.
less, they might have to be. Brit¬ and of removing the currency and
world, and no country, can afford'
in
.
currencies
>
of expand¬
For the United States,
ing trade.
<;
4444;>|4*-v.1
,'r
world
a
a
effect.
level
and currency
industries in
-
Along with these financial con¬
there .were established di¬
rect controls on imports in all
sterling
area
countries... These
controls, such as import licenses,
are used to
keep out goods that
must
be. paid. for
in foreign
money.
In practice, this meant
keeping to a minimum; imports
from countries that.had. to.be paid
for in money other than sterling.
production
fnore
extension, her wartime trade
are trying to meet the" economic*
major in¬ area will be able to use the dol¬ part of this problem through co-'
ternational
economic
problem. lars they. acquire from their trade operation in the World Fund and ;
The solution definitely depends to make purchases in the United Bank. That has been and
will bei
The sterling area dollar the
upon what. America and Britain States.
policy of the. United States.:
do.
America is the largest ex¬ pool, a most restrictive device
Russia has not yet joined the Fund:
porting country 4in- the world; will' be dissolved.
and Bank.
It is hoped that she*
England is the largest importing •4.(3) England's import controls will become convinced of the ad- •
country in the world. Between us will be administered in a manner vantages of full participation. If:
and the countries in our trading that is not
discriminatory agains. we make it possible through' the
areas, 75% of the world trade is American goods. Any export from Financial Agreement for England,
obstacles to trade is
Trade Controls
^
rary
fn-
•
~
Actually, this is more than a survey~~~it is a bastc
reference source for investors, Write today for .your MM
copy of ihe "Security an^t Industry S.urvey"-r-it will be ' 4
;mailed promptly without obligation. Address
Deptd'T." i 4 '
_
P LA N
T\ this Fut
Merrill Lynch, Pierce, Fenner & Beanb
,
!•;-
T7s \
Underwriters and- Distributors;^ Investment Securities, idri
\Z".
.*2.XBrokers in Securities and Commodities
70 PINE STREET
:
7
Uptown Office: 730
!' VM «■'
-4
W"'
fifth avenue-
.
•
1'-*
*
NEW YORK 5,
N. Y.
01 4
THE COMMERCIAL & FINANCIAL CHRONICLE
SanglrlbiOrgkmzedl^
to yield any
(Continued from page 1915)
it had continued for a little
Ef
v
There
win
that they should fear the outcome
Economic Power
of future
living conditions of seven million
t
Inhabitants of New York City/
\ r Business leaders have also large
,
/
them- which
opinion and public policies. Labor
relations today present not merely
industrial problems but also po¬
litical problems, involving even
more than the choice
between a
free economy and
a
controlled
economy. The political issue which
will be decided within the next
they • employed suc¬
' '
,1 i
'
\
as
]
'
'• V /'I
V
^
Rule of Force
that calls a strike to deny owners
the opportunity to earn a return
in. the face of hostile forces that
defeated but not
<?-.<
economic power to deny-men
opportunity to work except
upon his terms, every labof union
cessfully in past controversies. A
been
I >
an
leader who calls for disarmament
have
A
uses
and the freedom to use
responsibilities as citizens, in their
undoubted influence upon public
labor dispute.
a
w/. fl,
upoh .their investments—is using
force to compel his opponent to
con¬
submit to his dictation.
quered, who,1 before even- the
signing of a peace treaty, proposes
peaceful cooperation with an his¬
toric enemy, may be really sus¬
pected of betraying his followers
either through folly or for private
Such 'force
still be' lawful, but that does
not- make it righteous.
Yet, so
may,
long
the
as
Government fails
in
its
duty, to provide peaceful alter¬
natives, and to require all citizens
few years is: Shall we reestablish
to employ them and to renounce
a government of all
the people, gain!
the
Force in Labor Dispute
weapons
of economic and
by all the people and for all the
You may feel that it is inept physical coercion, business man¬
people, or shall we continue the
development of a government of, and undesirable to talk about the agers and labor unions]yyiU;/,use
these weapons.
In fact', they will
between
for and by a class-conscious mob- relations
management
•
and labor in warlike terms.
ocracy?
all
violated
have
I
Now
good oratory, and
rules of
find it necessary to use them.
Un¬
by asking the $64 ques¬ large bodies of workers, and far
But I wish to too many employers, requires one
make plain my belief that all sales to regard the conflicts of man¬
executives have a profound inter¬ agement and labor as a species of
est in labor relations throughout domestic warfare, Unhappily, the
the United States, regardless of law, which still reflects the ideas
whatever success their immediate of
backward management
and
associates may have had in main¬ labor, tolerates and helps to main¬
taining harmonious' relations lo¬ tain a rule of force for the deci¬
sion of labor disputes.
cally. " • "£■%
> v v] .;
And so
That is why I am venturing at long as force is the legal arbiter,
the
close of your
convention, the field of labor relations will be
/•which has' been devoted to a stu^ a field of civil war.
dious, hard-headed consideration
In a state of nature, force de¬
of practical business problems, to cides all conflicts of interest—
©sk you to cast a glance behind those
between the
worm
that
and then to throw your vision wants to
wriggle and the bird
phead so that you may see clearly who wants to eat him—those be¬
whither we are going if we keep tween wild animals and men—and
moving down the road on which those between wild men and wild
we are now traveling toward an
women! In a state of civilization,
organized labor control of gov¬ men are set free from a rule of
force .until
force.
force.
that I played a
part in aiding the wage earners
Co gain freedom of association and
of collective bargaining
Chat I played a part in the enact¬
ment of laws, and in their admin¬
istration, which helped to enlarge
Che numbers and to strengthen the
rights
powers of labor unions.
Chis I have no apologies
In fact,
For all
vance
We,
in my earlier days, and
to the lights of that
the
harm to the wage earners them¬
selves indict and convict them of
being either too ignorant; or too
narrow-minded
to
invested
be
of
brought losses
and
hardships
to
which ahy hos/dle army.of »600,000
soldiers
trained
could
"
have
in¬
The^first
reason,,
little
needs
•A Befuddled
v
an
invading
would
unite
vious
insurrection
borders.
human
to
But .we
an
within
have
everyone
except
privileges
sought and obtained by labor or¬
ganizations, the legal restrictions
imposed on their opponents, all
show too clearly a willingness,
indeed, a desire, to establish classconscious, dictatorial controls of
government. Such a government
could y^not be
sustained except
through more and more repres¬
sion of an ever-rising opposition;
and- ;the endv wbttlpl be the; over¬
throw of existing institutions or
their, preservation
through the
agonies of a civil war.'
The Work of Economic Reformers
The second
reason
for
checking-,
the growth of an autocratic labor
needs
power
discussion.
more
.complex; and
are
it
has
been
tried.
So
We
ob¬
thousands
of
plausible
reformations
our
army.
suppress
of
it is hard to prove that an eco¬
nomic proposition is unsound until
Situation
We would rally our forces and
destroy
business
the
labor leaders, the special
Economic issues
flicted en the American people.
inevitable
merce
been
so
drugged with the poisonous doc¬
trines of irresponsible freedom, so
befuddled by the arguments that
inescapable
conclu-*
:
entire
income
from
.
production were divided
equally, among the population, it
would be inadequate to' provide
and
have
we
fanatics advocating
finance
and
of
com¬
which
may
appeal to a multitude as sensible
until they are tried and become
proven folly.
Labor unions can
call upon trained publicists, even
enormous
government expen¬
ditures/and very much heavier!
taxation, the average net iiieome,
even if larger in dollars* is smaller]
actual purchasing power
in 1929.
\
it
than
'
was
It is
a fact
that, even under a.
communistic leveling of incomes/
every one could not in 1929, and
cannot today, enjoy the standard"
of living demanded by the labor;
unions for the lower-paid work-'
ers.
(Consider a minimum wage'
demand of 75 cents per
hour, $6-
day and $1,800 pr year.
per
With
60.^million" .workers, this would,
calf'^S^feUliqhs for minimum,
wages;
or
demand for
a
annual
mum
mini- (
a
income- per
of about
person
$900.):
C;
Also, it is a fact that millions]
Of trained and expert workers,s
industrial managers and highly,
.
educated
paid
professionals, must be
more
than
in order to
tives
and rewards
provide incen¬
for
average ^ntributioas
productivity/.^
been forced
has
in-,
average
an
come
than
more
^
to national,
Russia-
to furnish
addi¬
tional proof of this logical peces-/,
sity.,... And^igi^h^
taxes to support the -government,
and
compensation
for rprivate;
propertyinvestmentswhich
essential to
are/
free economy must r
be taken out of national income,
before
it
tirely
as
workers.
2.
a
can
distributed
be
purchasing
power
en- V
for the
It is therefore inevitable that
teachers and scholars of consider¬
when millions of industrial wage"
to
able
earners,
of
which
labor
law
presr.
to
the
If
annual
in
public authority.
with
the entire nation far beyond those
of Government
maintenance
are
spreading guemlja^/war*;
into nationwide ^struggles
that are as bitter and destructive
as the armed conflicts of a civil
war.
Indeed the coaL strike has
Law and Order—Prime Objective
The
industrial turmoil;
moving -relentlessly,
sUres and
beings.
to make.
according
of
settlement
of gov¬
be an
fare,
They ard made free to ad¬
themselves in peacful pur¬
conflicts of interest among
must
through increasing economic
suits, because the governments of
civilized people establish reason¬
able rules and peaceful means for
the
consequence
inaction
ever-growing
'
aware
The
ernmental
reason
lead
1.
"
The growth of Fed¬
eral bureaucracies, all supported
is
established and upheld by public
1
ernment.
rule of
a
and
sions:
labor-supported and
labor-favoring government is im¬
posing more and more restraints the necessities and comforts re¬
.upon the freedom of all^ the peo¬ quired for. a satisfactory standard!
ple, including the wage/earners. of living for everyone. This was
These./vfetters must be " loosened was demonstrated by The Brookbefore they become too strong to
be broken except by civil war.
Second:
The malevolent and (which was produced in 1929) as"
the basis for calculating that if
short-sighted selfishness' of labor
this income were evenly divided:
has
demonstrated
organizations
it would provide for every per/*
that their* leaders and the rank
son living in the
United • Stalest
and file are not to be trusted with
the powers of government. Their only en annual incOme of $625;.
blundering programs of economic Today, when we are carrying theburden of. a huge national debt"
reforms, that
will
do
infinite
elaboration.
millions of workers and thousands
pf managers of vast properties to
settle their inevitable disagree¬
ments by force, because any com¬
munity will be ruled by private
tion'at the start.
are
'
major reasons
criticism:
A
So long as it is permissible, it
the happily, an accurate understand¬
quiz ing of the emotions that move will be practically necessary for by the labor unions to regulate
programs,
You
a severe
First:
But every business manager.who..
struggles with opposing
they retain all the
interests unless
weapons
>s
two
are
force to :for such
unlawful
any
authorities that have aided them
to win their battles.
It is natural
longer, would have paralyzed the
businessand
disorganized
the
•
fense against the liberties and the
welfare of the American people.
i
of the privileges or rely upon
Thursday* May 30, 1946
is
only free when licensed
pursue self-interest regardless
injuries to others, that we seem
helpless even to understand when
a
labor aggression against em¬
and
order, and justice under the law,
are
among; the primary objects
time, I think that was the course
that should have appealed to any and purposes of any desirable
libertarian. One of the most sacred government. Laws are written to
rights of a free man is to asso¬ define the rights and duties Of
ciate with others to advance their citizens.
Executive and judicial
repute; to support programs
careful, conservative scien¬
tists are confident will not work.
So it would be tedious
and
un¬
ployers has been transformed into convincing for me to criticize a
an attack upon the 'Government
large number of the political and
and the people of
nited economic- reforms which £re ad¬
-
increase
.thfeirV. money, i'-:
wage^withbut increasing
their
production, they can gain ,no ac-;
tual:/■ increas^^;6f ^income^uhlOss I
there; is an actuaireductionln the ;
aggregate income of others,; such>
as ./farmers,, - small
businessmen;
and
the
/V. vocated by labor organizations.
.unprganize^^-hand/
among a officials are chosen to apply, in¬ States.
bruin workers,:
^
*
'Only part of the blame should Some of them appeal tu haVe
should al¬ terpret and enforce these laws!
3. If is true-tha|>Avhen-labor /
All persons are required by law fee laid against organized labor definite merit and some of them
unions compel the payment of'
;
When the exercise by wage to conform to establish rules Of pnd its leaders. They were com¬ to have obvious vices.
'• substandard^
But it is worth while to point
earners of the right of free as¬
good conduct, and to Use the pelled for years to overcome with
sociation
for
self-advancement peaceful means provided for the lough methods a tough opposition out the.zhopeless fallacy of the groups, they force a more equitable '<
division of the same national in¬
was being restrained by the eco¬
settlement of their controversies, to their efforts to join and act major programs now being ad¬
and
interest;
common
..
,
-
nomic power
of property owner¬
ship L fought against' such re¬
straints, and—although I may bp
mistaken—I think that I fought a
good fight and that, when I have
finished my course, I can say that
I have kept the faith,
•
.
,
•
*
...
Abuse of
j
'
1
-
;
-
*'
Labor Liberties
But the fight for liberty is not
finished when a battle or a war
|s
won.
There is always the dan¬
ger, indeed the likelihood, that
the victors may abuse their lib-
fake
the freedom of other
erty and use their new powers to
men.
away
Over
and
history has
over
been
again
written
the
of
an
oppressed class that threw Off its
and
and
to
and
compel other
bidding.
together for mutual aid and pro-tection.
They grew up under
do their laws which allowed the fighting
strength of private forces to de¬
domestic termine whether men should op¬
using fraud
intimidation to
refrain from
force
men
methods,
others or be oppressed.
peace and an orderly society have press
been maintained for centuries in Apparently in labor ' wars; as in
many lands and by many nations. International wars, G.od was" on
Yet today, when it is proposed the side of the heaviest artillery.
that controversies between em¬
Only part of the blame should
ployers and employees should be fall on the weak-kneed or biased
decided by a rule of reason, there politicians, because we are still a
is a roaring protest throughout self-governing people ^and..po.litithe land from the leaders of or¬ cians are expected to -fee, >and In.
ganized labor, in which, to their the main are, responsive to - any
shame, far too many business strong and prevailing public opin¬
leaders join.
These apostles of ion. And likewise they; respond
disorder demand that, where the to a confused and Inerf-public
By
these
to
vanced
and ^carried into effect
simp ft/by brutal force programs
which' cahnof benefit
earners
except in a temporary,illusory, way and which, .in the
long: run, must do -infinite harm
to all the people
.
This
is
not
aggeration.
conclusion
reach
of
an
emotional
ex¬
This is the inevitable
which
who
studies
production
which, reveal
anyone
must
the economics
and
so
soundness of the
interests
of
distribution,
clearly the un¬
outstanding pro¬
of organized labor.
The
folly of- these"'programs has been
demonstrated over and over agaim
history and in the-writings of
sound
economists, although the
grams -
'
-
-
~y,
.
.
•
responsibility for abuses of power
upon the officers or members of
when
unions.
men
It
have
is
had
natural
to
that
fight for
their rights they will be reluctant
labor unions that regularly
employ
picketing—even the employ¬
ers who engage in what they call
fighting fire with fire—will dis¬
in
order
to fend
a
rule
of
force
mass
claim-;.any wish
or
intention
to
and favoritism and to
rule of
reason
opposition is
establish
and justice.
an
a
That
They actually improve the'
come.
liying^vcpnditions of
these
sub-;
groups by ""reducing the
incomes* of the more prosperous
.thje wage: merged
employers and em/ Opinion with politicaV^N^fusiqn
shackles, that overturned an old ployees conflict,' they shall be and inertia."
writers seldom state their con¬
'
1-1'*'t"
.*/'
V ] _V; J
Visr-'.*
tyranny, and then became the permitted to fight put their dif¬
clusions in such a wajr as to make
Leaders of Labor, Management
tyrants of a new order.
them plain and fprceful.
ferences with force and violence,
But I
and Politicians to Blame
That is the history that is being regardless of the injuries inflicted
could not even summarize
the
written again today in the rise upon one
another; and the even % The most blameworthy persons statistical" evidence without losing
to power of the labor leaders who
graver
injuries to the general today are those leaders of-labor your?. kindly ' attention. "Nobody
Waged a long struggle to free the welfare.
and management and politicians loves a• fact rrian!"
manual workers from abuses of
Of course I can hear the pious who oppose, with misrepresentar
Some Disputed Facts
power by property owners who
protests from belligerent man¬ tion and personal abuse and dem¬
had freed themselves only a few
So with a deep bow to the
agement and pugnacious labor. agogic appeals/ every effort to
decades before from the abuses of
They will both disavow any desire have the United States Govern¬ scientists/ whose brains I have
power by an hereditary nobility, to use brutal force and violence ment
accept its long-neglected picked and whose work I respect,
and
with an
fIt is not fair to place all the in
entirely different
labor
struggles.
Even
the obligation to rewrite its labor law
labor
•
.
free people that right
ways be respected.
groups.
..
But when labor uhiohs
through-;
otif ifee]hation^^^bompei^
Of higher wa^es to
all organized 1
Workers, fp? less work/as in recent ]
campaigns for a higher wage per;
feour for a shorter work week,]
they do evil and not good.
In.
the/first place^tfeoy^force .higher$
prices,, which reduce? the buying;
of -.all wages.
Secondly,.
this lower purchasingpower, for ;•
the dollar reduces the -value of ^
power
all ' savings and securities against
/
misfortune/Thirdly, the real e^irn-.
|ngs of all workers £ who/do/npt
-
gain; cprrespon^ng-wagq increases $
are ( reduced.
Finally,
a ,new.
pyclb of higher wages and higher ]
prices impedes the*' expansion . of ].
business'arid thp increase of pro- :] •
duction from which alone
national..income
4.
It
labor
should
union
can
a
higher
be obtained.
fee plain
demands
that
raise
if'
the
of all workers equally, then'
can gain anything out
of the same national production
wages
no
worker
gesture to the labor leaders and
except through reducing the pres¬
politicians who lead their fellow
astray, I am going to state a
few facts that will be violently
property ownership.
men
unforgivable of- disputed; but which are authentic
ent/.; share
the
of
management
and
But even if
present share of management
and .ownership were reduced
so'
Volume 163
>* far
j
of
Number 4494
THE COMMERCIAL &
to
destroy the motive power
private enterprise system,
as
a
*
wage earners can be
ably
advanced."'"
the organized workers would not
have
permanently
In,recent months it
j
permanently increase their real
has been placing the crowning cap
of folly on its efforts by impeding
;
earnings, their actual purchasing
the
PQwer, 7 \heir ..: share
.
; production.
Any temporary gain
"would be. quickly-lost because of
J reduced production from
reduced
.
drive for
vidual"
the wage earners as well
on
So we Come to a
Simple but
irresis ible conclusion:
'
There are Only two ways in
organized
the
crease:
labor
of the manifold follies
This way Would re-
But
quire
a complete reversal of present labor union policies; " -
7
'
;
It may be asked: Why have riot
uneconomic labor policies
.these
,
^dohe^iririreft^
l:The
is easy,
answer
•/ placed
Tri; the first
built the : prosperity: pf:
1929 on bormWed'riioriey; y/e then
7 supported a. tottering economy by
? public borrowings unal the neces¬
.we
.
sities of war compelled such huge
, public
borrowings and expendi¬
tures
that,
with
price controls,
'
uneconomic
'. could
be
j destitution
upon
? people.
the rest
is
bureau¬
the
effective efforts of gov¬
ernment to maintain that domestic
pose any
of
industrial
proper part in
warfare
maintaining
peace
among the nations of the world.
Coons Re-Ekded Pres.
Better Business Bur. NY
Sheldon R. Coons
President
obligation of men
who seek and obtain leadership.to;
; show" intelligence and
visioh, rind
af least to attempt to lead;theiri
followers in the; right;. direction:.
Yet we find bur most Conspicuous
labor leader^ using their po#ers
and instruments of propaganda; to
foment hostility to all employers,
to misrepresent; the profits of all
ownersand the purposes of all
management, and, finally, to op¬
an
curse
which blights our prosperity and
undermines our power to play our
of
the
was
re-elected
Better
Business
Bureau vof New
York City at a
.meeting ,of the Board of Directors
on
May 22.
Named as a new
Vibe-Presidfent of the Bureau was
Mead A. Lewis of Dick & Merle-4
Manual workers were
Z able to get arid to save a lot of
;
By JOHN DUTTON
If professional advice is worth
more than amateur guessing, then
every salesman who is handling the accounts of
untrained
should lead the way
are
This account
didn't know the
difference
between
divided into percentages of medium
grade con¬
bonds, semi-speculative common stocks, and securities that
definitely speculative. The customer had been
doing business
was
servative
were
with this salesirian who handled
the account of the past few years.
He had: little experience
prior to that time in buying securities of
any kind. The salesman had
always been told that he was the only
person with whom the investor did
any business, which happened to
be the truth of the matter.
The salesman often explained that
he-was trying to achieve a
maximum- of capital gains with a
minimum of risk. He pointed out to
his client that he was
trying to help him preserve and build up cap¬
ital, and that it WAS THE OVER-ALL SITUATION
REGARDING
HIS ENTIRE PORTFOLIO THAT
WAS IMPORTANT.
In short, he
was handling this account in an
intelligent manner-^-he thought his
customer understood these facts.
One day the salesirian
came to the conclusion that
quite a few
should be sold and profits taken.
He explained why
thought it advisable to lighten up on sortie of the
highly specu¬
^mith;:investnient bankers* Dnvid lative situations. The customer, who was
thoroughly satisfied with
M. Freriderithal; was riamed Treas¬ results, agreed to sell.
The salesman' sold' out these
particular se¬
urer to succeed
Spencer Greason, curities and the checks in payment were sent to the customer.
of Brooks Brothers, whose ser¬
Then* the salesman advised the
vices
Treasurer for three years
as
were
recognized in a special mo¬
tion by the board.
Mr. Freudenthal is Vice-President and
Treas¬
.
It may seem: unfair to criticize
labor politicians who seek to re¬
uasophistiqated in¬
doing the right thing, meant well, and lost
out just because his customer
"wheat and chaff."
*
securities
he
pany
of New York, was elected
new member of
the board.
a
Wil¬
customer to .hold this cash for
while.
a
He told hirri
he wanted to wait for opportunities to
present
themselves before he would suggest some
reinvestment. Besides, he
conscientiously believed that a certain amount of cash was advisable
in the account at this time,
.
About two months later he called to
peace
the
investors,
Joward sound investment procedure. But there
difficulties that arise in handling the
many
vestment account. It is often a much
more simple operation to do
business with someone who has had
broad investment experience,
than those who have not
bought many securities before you begin
doing business with them. Here is a
sample of what happened when
a salesman
thought he was
.
ure of Bloomingdale Brothers,
and good order from which Inc.
Elliott EL
Lee; Vice-Pfesiwage
earners
themselves, dent of
the Guaranty Trust Com¬
of the ivriuld derive the greatest benefits.
payments for labor
without forcing
made
it
Federal
a
their differences.
That is
the only way to bring, an end to
real
hours.
by
tling
•
more
law for the control of labor
a
would not
utilize such peaceful ways of set¬
of
earnings of the" civilized
men
anything
more
; organized workers: One, by takf idiotic than a labor movement
ing more out Of the national inclamoring for price - controls to
7 come and leaving less, for all the
keep prices down and forcing at
r rest of the people. There can be
the same time enormous wage in¬
'no large gain in this way—even
creases that must inevitably push
J if the millions of farmers and prices up..
-businessmen were compelled to
It may seem unfair to criticize
; pay unwilling tribute to organized
labor power. The other way is by very bitterly a labor leadership
whose misguidance is, to a con¬
increasing the daily productivity
siderable extent, only a reflection
of organized workers, by producof the misguided opinions of the
; ing more per hour or by working
rank and file of labor unionists.
■
just Fed¬
a
That
to be settled peacefully and1 justly,
and a law to require all parties to
It would be hard to find in the
record
and
labor law.
relations
Prices Down
in-
can
new
united
a
cracy. :It would be a law to make
it possible for labor controversies
Folly of; Forcing Wages Up arid
-'t
a
in
be
the entire nation.
as
advantages,
eral
•
! "which
Securities Salesman's Corner
■
individual preferences and preju¬
dices, and even to forego indi¬
losses
-
Conclusion
'
leaders
should be easily persuaded to sink
re duced
alyzed one industry after another
ability and incentives Of business ; and imposed huge, irreparable
management.
2947
immediate and urgent in¬
continuous; efficient operation
of industries with countless petty
interferences, and by repeatedly
bringing on* needless and wholly
investments arid, frorn the
;
Business
assured.
an
terest in seeking to end a rule of
force in labor relations.
They
destructive strikes that have par¬
riatiorial
Of
FINANCIAL'; CHRONICLE
see
this customer to suggest
that he buy another security with some of this cash
that he sup¬
posedly had available. The customer tried to evade and
hedge' the
issue,, but he finally told the salesman that he was
sorry,
friend had told him
but :some
that some stock was a sure
thing, and that he had
Holmes, President of
put most of that surplus cash to work just a few weeks
Bonwit Teller, Inc., and Edwin S.
ago.
The
salesman then asked him
stituents, But, again, it must- be
why he didn't call him and discuss the
Friendly, Vice-President and Gen¬ matter
1 tinue such excessive money wages pointed out .that it-is the
before he bought through' someone else.
duty of eral;
The customer agreed
ManagerjOf "The Si^
;hfter theK war except' by allowing true- political
leadership to strive re-elected Vice-Presidents.
that he should have done
H. J.
so, but said' he was afraid the- salesman
t an inflation which would,
destroy to lead in the right direction. It
Kenner* General Managor;(;and W. would advise against the purchase; and since he was certain-that his
their reality. But the labor policy
is only the political charlatan who
P.
Collis, Recording Secretary, friend had such good
7 of increasing such wages and try- is
information, he told him to have his broker
willing to join an inflamed mob were
again chosen for those of¬
ing to prevent infla.ion is as non- and go roaring down the road to
get him the stock.
fices.
sensical; as trying to make two domestic disorder and economic
Regardless of how much sound advice this salesman
gave this
dollars by cutting a dollar bill in
Speaking of plans launched by
chaos, instead of at least trying to
customer, or how profitable this account had
half!
.lead his constituents into the do¬ the directors of the organization
been, here was a case
where customer loyalty just did not exist.
;
Part Management Plays
mestic tranquility which is essen¬ two years ago, to expand its pro¬
Since these situations are
,
;
they
did
not
earn.
It
would Jtiave- been difficult to con-
money
-
liam
M.
flect the wishes of. misguided con¬
-
'
In addition to
borrowing-money tia! ta industrial
to mee* excessive production costs;
there has been happily an increase
i
•
; in
J
t
c
entific
workers
and
Industrial Leaders
•
com¬
munity's needs, Mr. Coons told the
Board: that the annual budget of
the Bureau' had been increased by
Self-Criticism Needed by
what is
curiously described as
"labor productivity," but which is
really
managerial
productivity,
Management, with the aid* of sci-
tective service to meet the
;
progress.
Finally, since I am addressing a
gathering of industrial leaders,
may I be permitted, without in¬
alert
'•This has been made
possible,"
Mr: Coons said, "by
greater sup¬
members and by
and
often
daring investors, has been
; continually
increasing the prod¬
uctivity of • industrial enterprises
-
a
rarity it is advisable to suggest sortie reinvestment IN GOV¬
URY
SECURITIES, PREFERABLY SHORT-TERM
NOTES, if
believe that liquidation is in order
you
specific securities should be converted into cash.
nearly 80%;
dulging in criticisms that might port from our
the addition of 200 new members.
discourteous, to beg of you
to
indulge yourselves in some Inquiries and complaints from all
Have nearly doubled,
soul^ searctog' self - CHticisiiri? sources
7 through improved processes
and Many pf the historic sins pf busi¬ growing in annual volume from
better machines.
nessmen have largely
disappeared. 14,000 to. a present rate of 27,000.
To some ex .ent/ and in some The gouging and sharp practices We believe that this public service
of private business will be even
Industries, labor unions have aided of oldtime traders, the deceit arid
greater in the year ahead, which
this, advance.
But, as- a whole, defrauding of customers* competi¬
: is the Bureau's twenty-fifth year."
organized labor has been far more tors and associates, the exhibitions
obstructive than rconskuttive. / It of ruthlessness, greed and oppres¬
has opposed .iabpr-sayirig\devices; sion in:thbftreatment of employees
•It has 'con^peBed^paiymeritS 'fbi -^these are kno longer approved
-
not
ERNMENT
seem
,
always
a
temptation—especially to the unitiated.
Government securities is still considered
it is for all
an
TREAS¬
and
An
investment in
investment,
practical purposes, the equivalent of cash.
even
though
Remember to
make the objective of the investment in' Governments
clear to your
customer, and state that it is a temporary resting place for idle
casri until the
proper
reinvestment
opportunities appear.
►
doing you may be able to avoid such
a
situation
as
-
also
save your
customer some grief
as
By
well.
<•
unproductive work, for duplicate
•work, arid" for no work:
:
/
been
insisting
the costs,
-
It
on
more
increased the burdens,
the responsibiiities and
the difficulties of management; It
has * fostered
hostilities between
-
•i
».
employees- and. their
employers;
thereby: making /it"iriore difficult
for management
to obtain and
re-
•
and freedom,
'
a
business
en¬
succeed.
Business
and light!
gle is
RYSfai&Sa¥ings
making
is
not
sweetness
The competitive strug¬
tough
a
all
game.
Opportuni¬
ties to get and to use monopolistic
offer
powers
recurring tempta¬
tions, which are not always re¬
sisted.
it
cart
as
But,
as
a
generalization,
be 'fairly said that
a
business
profession; with ethics, arid
responsibilities"'to in¬
working, fofCC.: It has supported vestors, to workers and to; trie
public, is an emerging: ideal; and
phcdu&g£d?|p!it^
ericCs with mahagernerit-initiative that trie
leaders of modern busi¬
%tairi the ;efficierit^ ebopefatiohof ^
;
terprise
for
and less work.
shorter hours
has steadily
:
It has
pay
methods of
for
more
arid
preparirig the way
governmental
private. enterprise
more
accepted
ness
are
striving to
standards
of
uphold
the
good:
citizenship.
controls
of
They have the comforting knowl¬
whioh, if continually: extended, edge that, wbTether decorated or
must make 'the maintenance of a
denounced, they are engaged* in
free, competitive economy impos¬ useful,, productive work.
That is
sible.
"As
one;
of
its
worst
,
of¬
Bank
A
Airline Foods Corporation
Deposits Up
5Y2% Cum. Conv. Pld; Stock
-•v
.
net gain in-
savings deposits
$57,884,162 for April is reported
by the 131 New York State mutrilal
Common Stock
of
savings banks.
The total; number
of depositors served increased by
14,903 to another neW; -high of 6,793,621,
The; Savings Banks Ast
spciatiori in its advices also "says:
"Totai deposits
the;-highest
in history, having reached $8,500,399,039. At the same time activity
in both dollar" deposits and ac¬
counts
are
continues
at
near
Prospectus
Ratio of deposits to with¬
drawals was 1.25; While the rate
American
of gains in both- savings accounts
and deposits was lower than in
due
an assurance which a
great many
members of blder professions are
to
not
and
depositors
gain
from
&
Co., Inc.
55 LIBERTY STREET, NEW YORK 5. N.
Y.
peak
level.
April .1945, the
on request
Herrick,Waddell
Fruit
Growers Inc.,; Com.
Arden Farms Co.,
Fullerton
in amount
April 1945
Pfd. 8C Com.
Oil Co.* Com.
.
fenses, it has created and main¬
tained monopolies' of employment
and restraints
of trade which
are
incompatible with a free economy.
though
organized labor has been doing
its best to destroy the only system
and to hamper the only processes
by which the interests of the
In
a
word,
it
seems
as
It
always entitled to feel! 7
seems
ments
of
should
be
to
•
:
-
that, of all ele¬
society,
businessmen
most keenly conscious
me
of their
in an
.and
interest in a rule of law,
orderly and peaceful society,
in
processes
economic
justice
through
can
be
which
reason¬
April 1946
the
was over
gain
in
new
$i; billion
..
"Sales of United States Savings
Bonds and
Stamps for April
March figures
in our issue of
were
c\v
Members Los Angeles Stock Exchange
626
SO. SPRING
ST,
TRINITY 5761
'
were
$11",512,405.90."
The
Wagenselter S Durst, Inc.
accounts
262,162.
given
May 23, page 2844.; -
L0S ANGELES 14
;:.v: Teletype: LA 68 7
.
M«rk*t Quotations and Information
oa
..
so
here outlined, and
-
•
that
Cash in itself is
^7;:
all California Secorfffts
'
Financial Program
A Constructive
tion is less helpful than construc¬
tive suggestions as to just what
should be done, and when, and
The first and most im¬
emphasized the iieec how.
of increased production, and the portant stepi iri. the present cir¬
v
is
already being
maintenance of price controls un¬ cumstances,
til such increased production is taken—that is, putting our ; na¬
achieved, almost to the exclusion tional budget in order. According
of
other
factors
in
the
fight to the revised budget estimates
released by President Truman in
against
inflation,
including
a
April, the Treasury deficit for the
the public debt of the national proper ordering of our monetary
much we can sugar-coat the pill.
fiscal year 1945-46 will be $21.7
affairs. Fundamentally, of course
This is the problem which I wish government and in the amount of
in a situation like the present, billion, which is $6.9 billion lower
currency in circulation and the
mainly to discuss.
than the January budget estimate.
amount of bank deposits.
War, the antidote to inflation is a large
•'. It was said in jest, but riot With¬
and balariced output with rising And since the actual deficit to
out meaning, at the beginning of as it is now fought, spares neither
the end of March was $17.3 billion,
nor
neutral econo¬ productivity per worker. To this
World War II that, in • war, the belligerent
the anticipated deficiency for the
Some of them,
such as objective governmental and busi¬
role of finance is to get out of the mies.
eastern Europe arid in Asia, nor;
(Continued from first page)'U;
ployment is not a part of the arse¬ is it so difficult as in the former
nal of democracy at this particu- occupied countries of western Eu¬
lar moment in world affairs. Arid, rope and in the countries of some
yet, with all of the experience we of our Allies. All of these as well
have gained in the past 25 years, as the neutral countries, experi¬
we are not absolutely sure how enced a tremendous increase in
h
-
Thursday, May 30, 1946!
THE COMMERCIAL & FINANCIAL CHRONICLE
2948
France, Belgium, and the Nether¬
lands in the west, and most of
of production. Certainly, aft¬
fighting men with
fighting
way
s
er
eastern European
countries where
hearts, production was the key to
victory in the war- which ended currency chaos was greatest, have
last year.: No country permitted had to take drastic steps to reduce
its finances to interfere with its the money supply in an attempt
war effort. If the mistakenly la¬ to head off inflation. In general,
beled sinews of war could not be these measures have provided for
raised by taxes, they; could be the withdrawal of practically all
borrowed from the public, and if outstanding currency, the limited
of
they could not 'be borrowed from
issue
the
freezing of
■
the
from
rowed
be bor¬
they could
public,
banks.
if
And
they could not be borrowed from
the banks, they could be bor¬
rowed from the central bank, or
the
printing
presses
could
be
these things
the
except
last and worst, and
claim we did
there are some who
a
little of that,
make
great deal of
difference, however, how you do
it, both during - the war and with
respect to the kind of -monetary
headache you will have when the
war
is over.
The primary re¬
course
should be
to
increased
-
'
v
It
does
a
currency,
new
and the
large part of
a
the
existing, immedi¬
ately prior to the promulgation of
the currency decrees.
In most
cases these monetary ireform laws
have contributed to economic and
financial reconstruction , in that
they have sterilized a large part
of the huge liquid funds accumu¬
lated during the war period. In¬
bank
deposits
flationary price movements, to
the extent that they were being
by
<
On the whole I currency.
Fortunately we are not faced
good job; far from
perfect; but based on past per¬ with the need of such drastic
formance better than we might measures as have been taken in
have expected; Beginning with some other countries, nor cairwe
January 1941, shortly after the admit that the solution is so sim¬
start of the defense program, the ple as some
of these measures
Federal. Government spent $378 might imply, necessary as they
billion. Of this amount $150 bil¬ may have been in the circum^.
lion, or 40%, was raised through stances in which they were taken.
taxes, most of /which carried no The existence of a large supply of
future call on the Government for money in relation to the supply
reimbursement. Another $134 bil¬ of goods and services; is not, of
lion, or 35%, was raised by bor¬ itself, inflation even , though it
rowing from others than banks. Of may give you the feeling of wan¬
the remainder, $72 billion, or 19%, dering through a powder maga¬
came from the commercial banks
zine, striking matches to light the
and $22 billion, or 6%, from the way. As stated again in the annu¬
Federal Reserve Banks, the latter al report of the Federal Reserve
purchases
being
necessary
to Bank of New York, just recently
and
rationing.
:
we
enable
did
the
a
commercial
banks
to
play the role they .did without
heavy borrowing from the Re¬
the loans made by banks to pur¬
chase or carry Government se¬
curities, which resulted in
a
budgetary
with
ed
with deficits in a
Banks.
or was
reflectipn of the great increase
policies must be
mainly directed, and upon our
success in achieving it will large¬
ly depend whether we shall lay
in
foundations
the
of
period
orderly
1946
or
have an inflationary outburst ter¬
minating in depression.
A
second
fundamental
is
the
avoidance of a wage-price spira
such as we had after the last war
This time, the dropping
controls after V-J Day,
of wage
panying rise of prices. The prob¬
this rela¬
lem is how to stabilize
arid disastrous strikes
which have
since been in progress
have cloud¬
and
largely as a consequence
of
distrust of the
currency
resulting
in
capital
flight and a panicky desire to. run
them, has gone a
Nevertheless, this does not mean
that
Controlled
Our
as
it is in.
some
not
,
we
can
'
may,
sub¬
kind
in
of
securities
to
be
issued
refunding maturing obligations
in
of
order
to
the
absorb
supplies
investable funds accumulating
(and not needed elsewhere) in the
of insurance
companies,
hands
ceipts and a decline in estimated savings banks, and Other institu¬
tional and individual investors;
expenditures,
some
of which,
When the present program of re¬
however, have only been de¬
layed, not eliminated. It seems paying debt out of accumulated
balances Is completed, this prob¬
reasonable to hope and expect
lem will have to be met.
"
that this reduction in the fiscal
year's deficit, plus the excess of
of course,
Restraint
Credit Expansion
on
public
pronouncements.
keeping up taxes, in the make
During the war the credit policy
aggregate, and will depend upon
the maintenance of a high level
of income. The first we can well
during
recent
years
will
been removed.
policy,
tionary
must
be
but
the
control
and should be
recognition of the fact
flexible
in
which
resources
our
of
the
of
Federal
Reserve
System
(1) pro¬
banks with sufficient re¬
had two main objectives:
viding
to
serves
enable them
to act
as
residual buyers of government se¬
curities;
and
(2)
maintaining
stability or a "pattern of rates" in
the government security market.
The
fact
that
two-sided
this
policy largely or wholly deprived
the Federal Reserve System of th£
have initiative with respect to the sup-:
ply of credit was acceptable as a
Fed¬ corollary of war financing needs.
It is rioj acceptable urider; peace¬
With a reappearance of
prospect of success of the
eral surpluses some reduction in
policy. Similarly with pric
controls.
Drawing again on the the money supply will take place,
recent annual : report of the Fed¬ if bank-held debt is repaid. As¬
eral Reserve Bank of New York, suredly we are entering a phase
extension of the Price Control in which budget surpluses are
desirable and so¬
Act seems an indispensable condi¬ economically
In a situation
tion of a successful anti-infla¬ cially defensible.
based
on
men
and materials can be used to the
conditions, particularly when
time
inflationary:; pressures
are
"as
strong as they are today. Out
problem is to decide what is the
place of quantitative credit con¬
trol in
the fight against
inflation
and how it is to be reasserted to
afford to ignore the
aspects
of
our
prob¬
utmost in meeting
domestic and
the
to
that
extent
'fclay. (I
it
has
role
a
am
.
by purchasing power
the
gotten that increased production
will generate increased incomes,
which will currently provide the
means
of
purchasing
Remedies Not Easily
This sounds simple
credit.
in the hands poned.
public and the demon¬
strated public desire for goods
and servi ces. It must not be for¬
of
the
things
Applied
and logical,
but it is not so easy as it sounds,
lem, as it seemed we might be
and demanding courage of those
doing until recently. Official and
who serve you in seeking a solu¬
some unofficial reports on recon¬
monetary
desperate,
of the countries of
situation is
deficit reflects a
estimated
new
tion would feed. We must see that
here;,
It
smaller
ed the
^
Inflationary Situation Can Be
year was only $4.4 billion.
in fact, be even less. The
launched, is a
necessity.
There will also arise,
eventually, the question of the
receipts over expenditures, which
And now I haye driven myself
we
actually experienced in the
early sanction given to wage in¬
first quarter of 1946, are portents into a .corner where I must say
creases which would not require
of things to come—that our Fed¬ something about restraint on fur¬
price increases developed quickly
eral budget may be in cash bal¬ ther credit expansion, which is the
into a pretty general demand for
area in which I have some fVrect
ance this calendar year and in full
higher wage rates.
This soon
financial balance during the com¬ responsibility and, therefore, the
forced
recognition
that
there
area where it is most difficult to
would have to be some accom¬ ing fiscal year. That Will mean,
bank
this does not happen
fiscal
the
stand will soon be
and the
deposits and currency away from money into commodi¬ produced. If this newly created
held by the public during the ties^ real estate, and equity secur¬ income has to compete with an
These conditions are riot already large; supply of liquid
/"war. Here is a figure between $75 ities.
> and
$100 billion of readily avail¬ present in this country. The Fed¬ funds; such as we have built up
able purchasing power. And be¬ eral deficit is rapidly diminishing during the war, we might have
inflation no matter what our pro¬
hind that is
an
approximately and there is a highly favorable
duction records may be. What we
equal increase in the amount of prospect of our having receipts in
must do in the existing circum¬
government securities held by. in¬ excess of expenditures in the fis¬
stances is (1) prevent a further
dividuals and businesses, which cal year begininng July 1 next.
increase in the money supply, and
U may readily be converted into Internationally, there is no pres¬
reduce it as opportunity offers;
sure on our balance of payments
money. This is a financial legacy
of the war, * in addition to the and no anxiety about the external (2) keep present public holdings
of liquid resources, insofar as pos¬
greatly increased public debt. It stability of the dollar—quite the
There is, therefore, no sible, in their least volatile form
has been the financial legacy of reverse.
fundamental distrust of our cur¬ —government securities; and (3)
war in every country. It shows it¬
a
transfer
of
some
self as an enormous increase in rency such as characterized the facilitate
the money supply in relation to great inflations after the last war, government securities from the
and the inflations which have fol¬ banks ? to > nonbank
investors,
the goods and services available
will
mean
transforming
for consumption. That might be¬ lowed in the wake of the recent which
bank
deposits into holdings of
come
the meat on which infla¬ war.
Antidotes to Inflation
government securities.
in
of
stantial increase in estimated re¬
for
prosperity
months
three
last
long as incomes rehigh and goods continue in
short supply, there is every rea¬
son for dampening consumer de¬
mand by encouraging substantial
savings out of- current income
and j the retention of previously
accumulated savings.
Not only is
the continued cooperation of em¬
ployers and of the banks desirable
in
promoting this program; .a
stepped-up campaign ori the part
of the Treasury, which I under¬
purposely exclud¬
ing from the discussion qualita¬
that price changes in. a period foreign demands for our goods
tive or, selective credit controls
when we are trying to work back and services, and in the face of a
such as control of margin re¬
money
supply, some
to free markets, have an indis¬ redundant
quirements for purchasing and
pensable role to play in bringing restraint on purchasing power is
carrying listed
securities, and
out a balariced output and direct¬ necessary if the wartime savings
Control of consumer credit.) As
of the public are not to be wholly
ing and controlling demand*.
matters
now
stand, control is
frittered away in rising prices.
At the risk of introducing oc¬
We can provide a measure of re¬ largely in the market and' par¬
cupational bias, I must now em¬
ticularly in the hands of the com¬
straint through budget surpluses.
phasize that a third fundamental
mercial banks. Even though we
And we
can
have budget sur¬
in the present fight against infla¬
wish to prevent a further in¬
tion is the existence of a redun¬ pluses if work stoppages do not
crease
in the money supply, or
dant
money
supply. Increased dry up the sources of our na¬ even to
bring about some con¬
tional income, if taxes are kept
production will take care of the
traction, you need only offer
side of the equation represented relatively high, and if non-essen¬
Government securities for sale to
tial and less essential government
published, historically, drastic in¬ by goods and services, but there
obtain
more
Federal
Reserve
flation has usually been associat¬ is also a demand side .represented expenditures are reduced or post¬
deficits and
country's inter¬
It was this latter borrowing by national balance, leading to cur¬
With these,
the Treasury from the banks, plus rency depreciation.
serve
labor
the
taxation, and this should only be
limited by the requirements of
keeping the economy going full
blast on the production front. The
next line of defense, or attack, is
borrowing from others than banks rehabilitation cannot be
without the improvement
so as to avoid an undue expansion
think
and
ness
tion, because it must be stabilized
spending of those if we are to avoid a fitful period
stand, if the alternative is feeding
funds, were held in check and of illusory prosperity followed by the fires of
inflation; and the sec¬
black markets curtailed. Never¬ collapse. The modified wage pol¬
ond
we
can
most
certainly
theless,
the
ineffectiveness of icy announced by the President achieve if labor troubles do not
such decrees in two countries— last February recognized the need
rob us of the fruits of our ability
Hungary and Greece—and the re¬ for re-imposition of some wSge- to
manage and use our resources.
control
and
established
appearance recently of currency rate
With the disappearance of Fed¬
disturbances in some of the other procedure for wage-price adjust¬
eral deficits the principal cause of
countries, serves to remind us of ments which may achieve a more
increases in the money supply
the fact that complete monetary stable relation; though the major
fed
attained
of basic
of credit, and so as to channel in¬ supply-demand
conditions, and
creased incomes into Government the adoption of fiscal and eco¬
service rather than leaving them nomic (as well as morietary) poli¬
free to undermine/ the dikes of cies which strengthen'public con¬
price control / and wage control, fidence in a nation's credit and its
,
version have
market, v So
main
That has become
A Constructive Debt Management
Policy
or,
uation.
Debt
an
undesirable
say, an intolerable sit¬
I do not think we can ex¬
I might
management policy can
also / be; helpful and is presently
being* helpful. As you know, the
Treasury is using some of the
funds which it obtained in the
pect or permit some 14,000
Victory Loan drive last Decem¬
ber, and which increased its bal¬
indi¬
dundant money supply,
far
ances
in
excess
of
current
vidual
commercial
tablish
national
cart.. For various reasons there
was a very large sale of long-term
this
Maintenance
term
bonds
and it is
in
the
Victory
the proceeds
these sales which are now, in
of
ef¬
fect, being used to pay off shortsecurities held largely by
term
the
banks, including the Federal
The result' is that
es¬
policy for
reconversion
critical
We already "have a re¬
and a ten¬
dency toward declining interest
rates which such a supply engen¬
us; in
ders.
Loan,
to
period.
needs, to reduce the amount of
the outstanding
debt. This is
really a conversion operatibn in
which the horse comes after the
restricted
banks
credit
of
rates,"
because
"pattern
of
a
it
diminishes
profits
holding longaccentuates this
the risks and increases the
which
come
with
securities,
tendency. This combination, plus
a favorable business outlook, has
often in the
past been a highly in-:
flationary
force,'
pushing
up
prices in all markets for both se¬
curities
and
commodities.
I
should like to think that volun¬
tary action by the banks would
which meet the situation, but I; am
would have become private de¬ afraid that is a reed we cannot
posits if spent, and thus increased lean upon too heavily. The forces
the money supply in the hands of of competition, and in some cases
of greed, and the difficulty of sep¬
the public, are being eliminated.
productive transactions
Another constructive aspect of arating
debt management policy
is the from speculative excesses will be
additional
continued' sale' of savings bonds to too ii likely to ; bring
is readily
the public, bearing rates which credit into use if it
exceed
those
available in the available. In these circumstances
Reserve Banks.
war
some
loan
deposits,
.
,
)
kVolume l63
Number 4494
it seems to
clear, if
me
we are
THE COMMERCIAL & FINANCIAL CHRONICLE
to
discharge; our ^responsibility; for
promoting economic stability, and
for supporting the measures taken
by ? other agencies to curb infla¬
tionary tendencies, .we must com¬
bat
further decline
a.
in interest
rates and must curb further credit
expansion.
We
tle.
have
taken
that direction.
currency and J
some
A
steps
in
flow
of
return
ah increase in"
our
gold stock, amounting to nearly
$1 billion in the first foUr months
of the-
year/ which might others
wise have further eased the credit
situation,
tion in
was
the
offset by a reduc¬
Government security
holdings of the Federal Reserve
Banks.
We
have
taken
the
in
welcome
mat, in the form of a
preferential discount rate on ad¬
collateraled
vances
by
govern¬
ment securities
maturing within
one-year,! which encouraged you
to use Federal Reserve credit dur¬
ing the
financing period. But
war
the; door is still open; We have
yet to determine if and how we
can close it without bringing undue
pressure on
security market,
Wants No Tough
the government
-
-f,t
,
.
Monetary Policy
•/) I do not think
any of you would
advocate a really tough monetary
policy—that is, resort; to a drastic
increase
in
rates
money
and
a
drastic, decrease inthe; money
supply—as an anti-inflation wea¬
The
pon.
intend.
would
would be
should want
consequences
than
more severe
or
I
we
think
many
of you
generally
higher level of interest rates on
United States securities, than is
now being' paid by the Govern¬
ment, would not be desirable,
hvaing in mind the size oL the
public debt and the annual cost of
its service, although you would
undoubtedly add that if the choice
agree
that
a
,
is between
some
increase in the
cost of servicing the
debt and the
infinitely greater costs of infla¬
tion, you would choose the for¬
mer, It is within this area that
devise a policy, using
present p°wers to free our¬
selves from the straitjacket of
the "pattern of rates,'? and the loss
of .'.credits;control; which it inr
Volves, or else we might have to
seek ^new
and, perhaps,. novel
powers to attain the same objec¬
tive ; With wisdom and restraint
on the part of commercial bank¬
ers, we may be able to preserve
the present general level of inter¬
est rates, without endangering the
whole anti-inflation program by
an
uncontrolled
expansion
of
must
We
our
credit. If that is too much to ask
or
expect, however, those whose
it is to administer credit
duty
policy in the interest of economic
stability cannot shirk thier re¬
sponsibilities.
Favors Loan to Britain
,
"
I should
now
like to make brief
mention of a matter which seems
to
me
tance
to
in
other countries, revolutionize our
dealing with international affairs,
we are not going to prevent wars.
It would be a tragedy—indeed,
the final tragedy—if the hope ami
promise - which lies ' in the con¬
structive exploitation of atomic
energy were lost in senseless bat¬
the first impor¬
international eco¬
be of
our
nomic relations, and indeed in our
international political relations as
well. I. refer to the Anglo-Amer¬
ican financial and trade agree¬
ments,; which were recommended
by representatives of our Govern¬
ment and the government of the
United Kingdom last December.
Those agreements were promtly
approved .by the British Parlia-,
ment, though not without some
misgivings, and have been drag¬
ging theirWearyway through ^the
Congress of the United States.'!
need not review for you, in detail,
the terms of those
agreements.
•
Theyiafe; common knowledge;;; In
essence we would grant a line of
credit. totaling $3,750 million to
the British, plus $650 million to
cover the final settlement of lendlease and other claims arising di¬
rectly out of the war; against
which the British could draw at
time r between, the effective
of the agreement and Dec.
31, 1951. : The combined credit of
$4:40 billion require no payment
of; principal or interest during
any
date
Jhis^period* Beginning; Dec.
31,
,
In the words of Emerson, these
are
all
times
"when the. energies
men are
hope."
of
searched by fear and
It will be a good time to
have lived if our hopes
confound
THE COMMERCIAL & FINANCIAL
2950
ican economy is enteriiig upon a
and greater era of activity.
new
Production
Day
V-J
Since
/Six months after V-J Day, pro¬
duction
industry
American
by
had already reached record peace¬
time
And
heights.
despite
set-*
backs and very
the first quarter,
measured in physical volume, was
15% greater than in 1941, the pre¬
vious highest peacetime year, and
40% greater than in: 1929.
this
of
Most
output is being
soaked up like rain after a long
drought, and people are justified
iri asking, "Where are the goods?"
•
It is difficult for the consumer to
believe,
instance,
for
automobile tires
t
that more
are being manu-
factored than ever in peacetime
that the output of
washers,
refrigerators,
vacuum cleaners, and many other
badly wanted items is rapidly ap¬
proaching prewar levels.
De¬
mand will outrun supply for a
long time to come. But we can
before,
radios,
and
take confidence from the fact that
ip spite of the strikes more Amer¬
icans are working today, produc¬
ing
goods, earning more
money for it, than ever before in
oUr peacetime history.
more
■
Critics of Reconversion Policy
"One
of
.
the
most
conclusive
proofs of
me
our recovery — and to
of the most amusing—is
one
Thursday, May 30, 1946
their communities and the people plans and enlargement of services
them, who are leaders in their that we have been": talking about
in
communities, who have the
wel¬
dustry^ Within15 :daH after V-Jf come. No one can foresee the fu¬ fare of theiri communities at/heart.
And they are staffed by men of
Day the armed services, by-pre¬ ture* of course, but we are ori the
arranged
plans, had cancelled threshold of a new world. Lit¬ vision who, long before the end
over $20 billions in - war contracts.
erally new. We are entering the of the war, had begun to organize
By the end of the year $65 bil¬ age of plastic and synthetic ma¬ for their postwar job.
It was more than two years ago,
lions in war contracts had been terials, of electronics, of super¬
terminated, and nearly - half of sonic/ speeds, and of atomic en¬ while I was still here, in St. Louis,
the contractors already had their ergy.
In other words, we shall that I was invited to attend the
money
from the Government. By
the end of the year five and one-
have
half million of the armed service
methods of applying
serious ad j ustment
total of 12 million were out of
problems, the first quarter of this
year saw it still increasing.
The uniform, and demobilization was
national
output of
goods
and proceeding at v the unprecedented
services during
?A>>
'
CooperationBanks
(Continued from page 2917)
than ever before and our Amer¬
CHRONICLE
rate of
Now,
million
a
plainly,
close-out of the
a
month.
this precipitous
war
effort
was
a
build
new
deed
if
the
Administration
had
not made its
plans known to the
American people and warned of
the unemployment danger. If cer¬
tain people wish to cry out, now,
that those warnings were "un¬
necessary," I personally am very
happy about it. Obviously we had
to prepare for any foreseeable
contingency — whether it be the
lion
of inflation
or
the
lamb
of
deflation.
Role of Banks in Reconversion
Actually,
as
you
all
know,
American
industry rose magnif¬
icently to the reconversion chal¬
lenge. The banks led the advance.
materials with which to
and
manufacture,
new
first meeting of the Postwar
Business
and
of the
It would be
the
and boundless sources
very energy we use.
reckless man indeed who would
try to forecast the face of our
civilization a single short gen¬
tion.
was deeply interested in
project then; I am even'more
today, now that I see
results
the
have
that
achieved;
This
the
S. in Forefront of New
heart
of
most
our
small
of
important
We need
of
of
thousands
businesses;
backbone
they
free
our
But
that
the
greatest
single factor
depend upon, I think, as
enter this new
the
are
recent
Commercial
and industrial
loans
change in the line,
increased nearly $2 billions or
taken by
severe
critics of the
26%, during the latter half of
Administration's reconversion pol¬
1945, and have been growing ever
icy.
since.
When you're traveling a new
we
American
Nation
prosper.
them in a very special
during the years just ahead.
And bankers, because of the na¬
ture of their business, must take
the
lead
in
implementing the
to
ready for announce¬
immediately when the last
ment
shot
tpe
was
fired.
Plans to close out
war effort, upon short notice
worked out with all Gov¬
were
ernment
orders
Departments —- advance
were
prepared
to
assure
that not one war contract would
remain in effect; not • one man
would remain in the service; not
one wartime
control would re¬
main
on
the
books for
day longer than
was
single
absolutely
a
necessary.
This
course
was
quite different
from the
one followed after World
War I, when it was thought safer
to wind up the war effort "grad¬
ually"—when
more
manufactured
in
artillery
this
was
perous
are
to achieve
the pros¬
future that we foresee for
For these resources
Scores Government Dominated
Economy
this Nation.
and- these
deposits are the stored
energy of our economic body.
Money is far more than simply a
medium of exchange. The money
that people earn and do not spend
is economic energy. It is used to
break new ground and to start
new
enterprises — to
build, to
manufacture, to employ. And in
our free enterprise system it is the
banker who holds this energy in
A socialized state
—
a
govern¬
serve
way
Government's program of assist¬
This obligation has long
recognized. Since the for¬
ance.
been
mittee
Service for
on
War
Vet¬
in the fall of 1944, the mech¬
erans
by which the veteran ob¬
loan, or his farm
loan or his home loan, has been
anism
tains his business
improved.
immeasurably
a
thousand ways, but it is also the
blazer of our industrial ad¬
simplifying
the
speeding it up. *
The
vance.
of
manufacture
The
to
and
process
Cooperation of Government
the
and Banks
automobile, to begin with, was a
small business.
So also
were
the
steam
engine, the airplane, the
radio, and all of the other great
essential to
industries
omy
econ¬
our
today.
Small
Financing
Business
Before the
difficult
for
war
Plans
too often it was
business
small
the
All
of
should
us
learn
some¬
thing from this kind of bankerGovernment cooperation. I think
that the relationship between the.
banking business and the Federal
Government has improved greatly
in recent months, and I am sure
that it will continue to improve
in the future.
to get the credit
that
assistance
the
banks
he needed,
at the time he needed it, and in
rendered
convenient form. Individual banks
financing the war is an outstand¬
their legal lending
limits
limits to the risks they can
ing example of what this coopera¬
tion must be. Now in the peace,
the banks must take the lead in
man
have
prudently
in
and
assume,
days
past many of them have not of¬
fered the type of financing that
suits the small business
man's
The
press—about your plans for in¬
dustrial expansion here in Mis¬
souri.
As you go ahead to fi¬
nance
half
a
billion dollars' worth
the
to
in
Government
financing the economy; the Gov¬
ernment retires to the role of
rendering assistance.
The banks are ready for the job. ;
As their postwar plans mature,
the
"problem" of
Government
participation in the credit busi¬
ness^—and most of
us
have thought
of it as a
problem at one time or
another—will solve itself.
Both
the bankers and the Government
know that
production is now the
goal of the American economy.
;
Both know that it is the banks*
job
to
this
finance
production.
Both know that it is the Govern¬
ment's job to help the banks to
do tlus, by, standing behind the
bank loans when this is necessary,
and
offering credit directly
in cases where the banks
by
only
have not been able to handle the
The great
business.
the banks'
of
cilities
that
is
reduce the need/
Government
for
and this,
But,
war
participation—.
it should be.
again, is
as
the
speaking,
financially
is not
enlargement
credit-granting fa¬
now taking place
should / steadily
The Government.
over.
is still fighting inflation, that most
dangerous aftermath of war.
The
best type of banker-Government
will
cooperation
be required to
stabilize our monetary system.
While the danger lasts, the
,
we
made
trail
t
—if
have
veterans
sacrifices which obligate all of us
Congress have greatly assisted in
,
and had to be
/ •
the
battles
*
they
fighting their country's
in
But
are
As the
will
Committee's recommendations
,
to be established well in advance
so /
prospers,
distribute the products of big
business and serve the public in
world, is our
system of free enter¬
prise. Alone of all the great in¬ needs.
Those days are past.
dustrial nations of the earth, we
America
have
insisted
upon
preserving is now witnessing the greatest
This record credit service was the complete economic freedom team "play in financial history.
course—as the Administration has
made possible by long prepara¬ of the individual. Americans de¬ Fifteen thousand banks—each a
been doing in this reconversion
tion. The banks were preparing mand something more than a dob separate enterprise in our free
job—it is helpful to be able to
for this reconversion job even in at which to work. They want to enterprise economy—have bound
distinguish between the criticism
together
with the
the midst of their difficult war choose what that job shall be, themselves
of sincere well-wishers and the
job, at a time when they were and they want a- wide choice—as pledge: "Bank credit* shall be
carping of people who are par-*
made- available to every
com*
handling at least 80% of Govern¬ wide as the whole economy. Thetisanand self-interested. But' it
ment war bond sales to the public, American who conceives of a bet¬ petent man,l:firm, or corporation
isn't always easy to do so; the
that needs it for a constructive
at a time when they were han¬ ter mousetrap expects to have; the
brickbats thrown by those who
dling and collecting- ration cou¬ opportunity to make it. He will purpose."
hope you'll succeed often look
not tolerate—none of us will tolTo implement this pledge the
pons for the nation's businessmen,
very
much like. the brickbats
at a time when they were pro¬ erate—a system which prevents Small
Business Committee has
thrown by those hope you'll fail.
him from making it.
viding an unprecedented amount
gone'ahead on the principle that
In late weeks, however, it has of
financial service to the Gov¬
We will not tolerate a regi¬ the* Individual bank which can¬
happily become a little easier to ernment and the public—and all
menting power from above, an not grant credit for one reason or
distinguish between these mis¬ this with
seriously depleted per¬ all-controlling
and
supposedly another will cooperate with the
siles. A great /many of them are sonnel.
all-wise government which says: applicant and see that he gets the
being thrown nowadays by peo¬
Now, as they emerge from the "All necessary mousetraps are money from some other bank or
ple who complain that reconver¬ War; the banks have a bigger job now
being made. The best de* group of banks. Correspondent
sion
is
going better than we to do than ever before, and they
signs for mousetraps have already banking has been revitalized and
thought it would.} They complain are better
within the past two years banking
prepared to do it. They been discovered."
that we "predicted" a large un¬
are in the strongest financial po¬
The
American
producer, ha$ come forward with its own
employment during the change¬ sition in their: history.
Their whether
postwar product—the local credit
his • idea
involves
over—something which has not loans are good. Through conser¬
mousetrap or a jet airplane or a group. The nation is now blank¬
materialized.
vative
dividend
policies,
they new application of radar, expects eted with some 48 of these credit
But let's look back a little. The have added a large proportion of
—and demands—to be free to go groups, with a total capital of
Office of War Mobilization and their wartime profits to capital
close
to
$700 millions.
Every
ahead and offer it to the public
Reconversion had to do a lot of accounts. Their assets are twice in
American business, through a lo¬
fair competition with already
cal
thinking about the future and what they ever were in peace¬ established
bank, has access to one of
producers. He knows
them.
preparing plans of action long be¬ time before, and they hold in trust thatlhe
Will have to have a' lot on
fore V-J Day.
A reconversion more than twice as much of the the ball to win out:
I have been deeply" impressed
ingenuity, in¬
policy which laid down the broad people's money.
itiative, and courage. And a bet¬ by" what you * have told me—and
lines of orderly procedures had
what I have read in the national
This is as it should be—must be ter mousetrap.
the
Yesterday's GIs
tomorrow's business men.
system. Not only does small busi¬
ness
and
we
new
enterprise
.
world.
real .sense, "services :
a very
to veterans."
mation of the Association's Com¬
■„
hundreds
One
thing we do take for
granted, however,
is that
the
United States will lead the Way
in exploring
this new world—
that our industry will be in the
forefront in developing the new
way of life. We have many rea¬
sons
for believing this.
Amer¬
icans have always been pioneers;
it is part of their nature to attack
vigorously the new frontiers of
knowledge that lie before, us.
Americans have always had great
mechanical competence; the ca¬
pacity of this nation to produce
has been proven in the war to be
greater than anyone had dreamed
possible.
'
The ever-expanding American
educational system will develop
in our young men pre-eminent
fitness to take part in this new
been
project strikes directlyxat
postwar credit problem.
Developments
of
Bankers -Associa¬
I
interested
eration in the future.
U.
Small
Commission
Credit
American
the
energy,
a
gamble. It had its serious risks,
the gravest being that the sudden
stopping of the most tremedous
production effort the world has
ever
seen,
combined with the
most rapid demobilization in his¬
tory, would create a temporarily
depressed situation, and throw a
lot of people out of work.
It
:w6uld have been astonishing in¬
new
in
are,
,
t
ministration will continue its all-
J
out fight to keep a workable price
control system. We will continue
c
to allocate scarce
materials, limit
'
inventories, and prevent the excessive' expansion
of consumer
:
credit.
'
-*
*
"
<
1
durable
Who is to authorize the
expenditure of the state's econom¬
in plain words, the
One can only shudder
trust, who conserves it and di¬ money?
at the picture that is /called to
rects its flow into the economy.
mind of a permanent nationwide
Today in this country we have
with arbi¬
a record amount of this energy •corps of bureaucrats
trary power to prejudge men's
stored up.
Today in this country we have ideas, and arbitrary authority to
dispense the state's funds.
a
record need for new enter¬
ic energy—or,
he is able to get.
The short-term
credit traditionally offered by our
commercial
banks
in the
past,
with its continuous
renewal
of
tirely meet
business
demands for
loans, will not en¬
the need of today's
man.
The
current sys¬
tematic development of
loan—the
loan
the term
tailored
to
the
:
*.
\
- dominated
Until consumer
economy ~r is of new enterprise, the St. Louis
goods
powerless to take full advantage and St. Joseph credit groups will are: in considerably greater sup-of this kind of initiative. In such play an indispensable part in the ply it will be necessary to retain
a state, who is to. decide which program.
'
Regulation "W," limiting installideas should be pursued, which
We-cannot afford
Just about as important as the ment buying.
dropped? Who is to decide upon availability of eredit to the busi¬ to expand credit while inflationthe competence of the man with ness man is the type of eredit that ary forces are pressing so defi-
ment
the idea?
*
Ad-
'
'•
'
:
i
nitely.
You and I both remember what
inflation did to the country
after
:
'
the first World War—what it did
to
the
farmer
and
the
business
right here in Missouri.
must not happen again.
man
Banks Should Aid Inflation
It
Fight
>
%
'
•
Side by side with the Govern- /
I am
after the Armistice than before—
*
Now let us look at our system convinced, enlarge tremendously ment, the banker has an inescapprises.
when demobilization of the armed
able responsibility to wage this
v
Today in this country, there¬ again and see wherein our tre¬ the service of banking to the
forces was much slower. Actually
fight. I have spoken of the bank- <
fore, the banker has a record job. mendous advantage lies.
In the business man and to the Nation.
in this war we have demobilized
It is important to say a word er's key position in our modern • :
But it is necessary to visualize
United States there are some 15,a little too fast.
the future more closely if we are 000
banks — institutions
locally about the service of banking to economy; I have spoken of your //
This
time
the
Government to realize the true scope of the built and locally financed.
They the veteran. It should be pointed great power. I warn you now that *
tossed the ball to American in¬ banker's task in the years to are staffed by men who know out at the start that all of the if we are to prosper, you must V
country
.
needs of the customer—will,
.Volume 163
Number 4494
■THE COMMERCIAL & FINANCIAL CHRONICLE
bear ^-responsibility
eqtial to that
PQWerr*'1
We
'
■
already been talking
about the rti'o'st important aid the
banket can render to fight infla¬
tion—stimulate peacetime produc¬
It
is
almost
important,
as
however, that
ernment
you assist the Gov¬
the other side of the
on
picture—in reducing abnormal de¬
mand.
{.
.
.
I think the bankers'
motto dur¬
ing the days ahead should
•
be,
"Millions for production, but not
on#; cent., for speculation." Dur¬
ing these difficult days, credit can
; be
destructive as .? well as con¬
structive. In the public interest,
and
for
their
own
on
further rise in prices—'
a
credit for purely speculative pur¬
chases of real estate,
securities, or
inventories.
££ The close cooperation of the
banks is
indispensable to the Gov¬
ernment in
trial statesmen.
of
The
guardianship
the public funds—of our na¬
economic- energy — entails
tional
great responsibility.
a
There is yet another function of
the
banker—a
steadily
growing
function—that also entails real
re¬
sponsibility.
Bankers' advice, to
businessmen and others, -is becom¬
ing increasingly important in the
operation of our economy.
From,
personal
experience
know that clients,
these days,
terest is the banker's interest.
responsibility is, first and
most; to the public welfare.
His
fore¬
The patriotism and the public
service that the American banks
provided during the war and the
farsightedness
plans give
me
their
of
are
postwar
full confidence that
they will not be found lacking in
this responsibility.
greatly enjoyed my short
and I appreciate your
invitation to be with you. I shall
visit here
asking bankers a great many
continue to look to many of you
questions, that do not deal di¬
rectly with their > ^c6unts$g|hj^ ^o^lq^advice and counsel in
during banker is in a key situation; he the days to come.
every possible way and
the transition.periodshould. main¬
tain present tax rates, it
appears
that
now
the
federal
financial
Wages, Prices and Secnrities
balance sheet rfiay show a
surplus
for the fiscal year of
1946, and
certainly
we
achieve
are
balanced
a
planning
to
budget—or
better—for 1947.
;
But
v
the
excessive
amounts
of
into* circulation
money forced
by
the financing of the
;
must be
war
reduced
in every possible
way.
War loan accounts in banks must
be used to repay the Government
<debt.
The Treasury must refund
the debt held by the banks into
the hands of non-bank investors.
1 People
"their
must
be
urged
Government
vigorous
to
bonds,
campaign
must
keep
and a
be
in¬
stituted for the sale of
Treasury
savings bonds to the public.
The banks'
help in this
program
is
essential not only in the exe¬
cution of the purely
banking op¬
erations that it involves, but also
gin persuading the public
to
do
their part. The banks are in the
best position to tell the holders of
Government
ure
securities
that
they
hofdipg, the best and safest in¬
vestments in the world, and that
they will, be benefiting themselves and the Nation as a whole
-
by keeping them.
Now I have been talking almost
exclusively;» about what bankers
do to assist Government
can
how they can
use
and
their financial
power and their community pres¬
tige in the public interest. It may
seen
strange to you that I have
said
of
nothing
banks.
stranger
the earnings
about
And
still
it
that
I
may
seem
have
been
suggesting
measures — the
re¬
funding
of
the
public
debt
out of the banks, for instance—that
actually will reduce their profits.
Fifty years ago this would have
been
strange way to talk to
No doubt there are
cynics today who would tell me
a
bankers.
that
it
,
is
futile, effort to ask
forego "income in the
public interest.. And yet the, sta¬
a
bankers to
bilization program
which • 1 have
been
advocating is only coincidentally mine-rthe t&ct is, that it
Is the program originated arid
publicly advocated by the Amer¬
ican Bankers'
Association.
It is not simply a
non
that bankers
market" will continue to increase
in
those
commodities which lend
themselves to this type of distri¬
bution.
An extreme example of
the black market
the speak¬
was
easy during the prohibition era.
Gangsterism, crime, and intemper¬
ance were spawned by open flout¬
ing
of a law almost completely
lacking in public support.
war
now
phenome¬
ask them¬
selves, before taking an. action,
only, f,Will it make money for
me?" but also, "Is it in the public
interest?"
war more
firmly committed than ever to our
system of free private enterprise.
the object of an individual
And
private
money.
we now
•
have
a
had.
•
.
pattern
un¬
was
These
there would be any marked devi¬
ation from
time
similar trend at this
it not for OPA price
a
were
policies. As consumers, we all rue
the thought' of a drastic increase
in .the cost of living.
But goods
cannot be produced at a loss, so
that the readjustment of .dollar
values now in process will have
to be allowed for in the manage¬
ment of our personal affairs.
to estimate approxi¬
mately the extent of readjustment
of prices and cost-of-living levels
required to effect a balance with
production costs, two assumptions,
A and
B,
be made.
may
Assump¬
tion A (see table) presumes a re¬
sumption of labor productivity at
the 1941 level. On this basis, unit
production costs will have risen
that labor productivity will reflect
an accumulated gain of 15% above
with
the
offset
or
in¬
an
other.
'
V
>
.
I
f
'I
,
v
The
J
^
'
" '
1
V
»•
purchasing power of static
incomes, and the "real"
and fixed
value of
high-grade credit obliga¬
tions, will be reduced a minimum
of 20 %.
It is anticipated that
during the near-term and the mal¬
adjustments described above will:
result in manufacturing
losses in
industries,
dividend
some
omissions
and
in ' weaker
But, in the long
situations.
run, we are con¬
fident
that our-'economy will be
permitted to respond to the exist-;
ing pressure toward full employ-;
ment and reasonable
profits. Reof price relief and
the lifting of ceilings applicable
to products not included in the
"cost-of-living" formula are evi4
dence * of a strong trend in -this
cent examples
.
direction.
r
»
r-VV:''
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a-
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r
,
•
•„
■■
January,
1941.
An
rise
18%
eost-o£4iving : index would; be
quired
reestablish
to
a
:
in
•
between industries and individual
companies, careful selection based
the merits of specific situ¬
upon
ations is dictated.
With these conditions in
re¬
balance
&
mina,
issues least vulnerable to the wage
factor and where dividends are
manufacturing costs under
assumption. These estimates amply protected by earning power
and company resources are ones
are admittedly very approximate
and
represent over-all national we recommend purchasing at this
averages, but they serve to define time, For instance, stocks of sdme
within broad limits the extent of of the companies engaged in ex¬
this
the
accompanying table we
a comparison of wage
rates, labor productivity, and the
resulting unit cost of production
during and after World War I.
have shown
calculations
*
chasing power of the dollar dur-f
ing the current period of read-*
justment will bie afforded by: the
holding of strongly situated equi¬
proximately 36% and 32% in these
ties.
Since price-wage relation¬
price factors, respectively, above
ships, and war-deferred consumer
present levels.
Under "B," it may be assumed demand, as well as purely man-;
from a study of long-term trends agement factors, vary widely as
compensate for
in
,
^
Fixed Incomes Hit
wage rates.
To
bring "manufactured goods" and
"cost of living" into line would
require average increases of ap¬
wholesale prices and 15 % in the
In
V
Subject to intermediate risks;
by the same amount percentage
protection against decline in pur¬
wise as current
costs, in
turn, depend upon the hourly pay
scale and rate of production.
A
change in one of these factors can
crease
}
indicate
that,
further
inflation
arbitrary
inherent
in
the
tractive industries (petroleum
and
wage
,
,
little note has been given to the
fact that U. S. Bureau of Labor
data reveals that average
straight"
enterprise is to
This is true. But
better understand¬
and unselfish—-whose actions
63%.> There is
or
That
is
year
selected
as
base
a
for comparison in our study since
was
the
last period
of full
it
peacetime
production,
involving
also the operation of normal sup¬
ply
and
demand
and
wages
influences
prices.
quent conversion of
With
a
on
as
yet
por¬
no
tangi¬
that labor produc¬
tivity in this postwar period will
substantially greater than pi
1941.
On the contrary, some man¬
ufacturers complain of declines as
much as 35% in the amount of
production per labor-hour now
compared with prewar.*:*;
Undoubtedly
subse¬
large
indication
as
effort will
every
be made during the present twi¬
loss
a
under present price ceilings. The
ijiost ambitious of these at the
moment is the $600 million sub¬
sidy which its sponsors promise
will break the building materials
log-jam.
The sleight-of-hand involved is
simple.
You get your building
materials at the old price, but you
and your neighbor (who doesn't
happen to be building a home this
year) will eventually pay the dif¬
ference represented by increased
production costs, in the form of
taxes. This obvious political ex¬
pedient could, be employed on a
wide scale, particularly with re¬
spect to consumer goods, but will
some
unsettlement.'
continued
Typical examples of strongly situ-;*
ated ; * companies
-'among
these
groups are Standard Oil of New
Jersey, Kennecott'Copper, Good¬
year, Sears Roebuck,' International
Cellucotton, International Detrola,'
Bank of America, 'and Security
First National Bank.
<
w
New York Stock
Exchange
Weekly Firm Changes
The New York Stock Exchange
light period to effect labor econ¬
has
announced
the
following
omies, but increased production
weekly firm changes;
.
costs, at least to' the extent of the
;
-■*-f
wage increases to date, are an
Tuller, Crary & Co., New York
accomplished fact.
In contrast,
tiated
rather
City, will retire as a member, of/
than competitive
wholesale prices of manufactured
the New York Stock Exchange on
prices.
goods under OPA price ceilings ultimately have to yield to higher May 31st, when Raymond , de
Wartime wage rates were vejy
have been allowed to rise only bonafide prices at the point of Clairville, the Exchange member*;;
largely the product of political
20% and the cost of living 24% production it sanity is to be re¬ withdraws from the firm.
v
r
arrangement arrived at through
bargaining and pressure between COMPARISON OF
INDUSTRIAL production costs v& COMMODITY PRICES AND COSlf.
unions and the Government. High
of living
weekly take-home pay, financed
World War i vs. World War h
by Government debt, was simply
a cost of
Production
Calculated
Wholesale
Wage Rates per
getting the war job done.
Per Labor
It should not be confused with an
Total Cost
Unit Cost of.
Manuf'd vi
Hour, Overtime
tion of the nation's
manufacturing
facilities to the production of war
material, the Government became
the chief customer. It paid nego¬
equitable play
normal
scale
based
Eliminated
upon
Years
demand.
consumer
1914
World War i Cost Increases
some
political aspects of
the current labor disturbances are
of recent origin, the over-all
wage
increases to date
not; yet
are
great,: percentagewise,- as
place during and shortly
World
War I.
as
took
after
But the fruits of
realized
greater
or
since.
omy
at
extent
In
our
•
that
than
time
ever
are
a
before
competitive
selling prices
to
i
.
>1921
>
/
60.6
-
i
*
201
Index
(4)
(5)
100
100
100
'7
v'
...
.
205
194
193
178
158
167
148
158
148
165
7"vV?
;
r'-. '*
100
94.11
142
NA
A100
A168
IB 142
100.
100
•
-"t
•
;>VV.'
; :r7 NA
163
.
;
167
243
w
66.4c
108.0
(6)
■n'V '223
no i
B115
;v
♦Indicated postwar II, to date
Living1
Index
'
In ; 119
226
-'
•
98
;
212
55.9
WORLD WAR II
i
Goods Price
Index
100
245
52.4
-
:
Average 1922-1929
V: 1941 (Jan.)
1945 (Dec.)
100
49,6
(3)
of
Production
Index
;(2)
24.7c
v.;
.
1920
Index
(1)
1919
Hour
■
Cents
WORLD WAR I
were
are
would have to be sold at
be
.
governed primarily by the public
commodities which otherwise
creased
ble
A
Nation, to be great, must have
many men who arc farsighted
hourly wage rates have in¬
from 66.4 cents in 1941
to approximately $1.08 currently,
age
time hourly wage rates, eliminat¬
ing overtime, have thus been in¬
creased more than 60%-since 1941.
mass production, scientific man¬
ing of private enterprise than we agement, and improved technology
once
distribution.
cost-of-living"
mistakable following War I, and
there is no reason to believe that
increases to date. mining) offer the type of protec¬
related to 1914 as a base equal to
50% Hourly Wage Raise
Undoubtedly, fresh demands for tion needed,, since underground
What is demanded in the pres¬ 100, production costs during the wage hikes will be
generated by reserves will in effect be revalued
ent situation is prompt and un¬ flush '20s were 53% above 1914 actual inflation of
the cost of liv¬ with the general price level, and
blinking recognition of the in¬ due to the wage increases in the ing, so that a minimum increase the ratio of wages to selling price
crease
in production costs occa¬ interim. Wholesale prices of man¬ of at least 20% in the latter
is less than average. Merchandise *
may
shares of well-managed organiza-;
sioned/ by arbitrary wage gains ufactured goods uWere similarly be expected.*.
since 1941. This is the second, but pushed up to a level 48%, and the
4 Lions will also benefit directly by*
Subsidies A Political Expedient
total
cost of
living 65% above
primary inflationary factor which
high-level consumption predicated;
Efforts are being made to stave upon the breaking of bottlenecks? *
inevitably will increase the price 1914. This brief comparison dem¬
fact that national off the day of
of all types of goods and services onstrates the
reckoning with the now impending the flow of goods.
substantially above present levels, prosperity is dependent upon ef¬ consumer who is only vaguely
Selected automotive, radio,
and permanently during the fore¬ ficient volume production rather aware as yet of the
cost-of-living chemical, and finance (banks and
than inflated money incomes.
seeable future.
rise
which
has
already
been insurance). issues
also
deserve
staked out. One device is through close
While public attention has been
scrutiny in the process of *
Current Dollar "Devaluation",
an extension of the Federal "sub¬
focussed upon the approximately
rounding out the "growth" fund
There is a similar "devaluation" sidy" palliative in order to en¬
18V2-cent increases more recently
designed to protect the owner
of the dollar going on now. Aver¬ courage the production of critical
granted inr the basic industries,
against inflation in the face of
While
We emerge from the
make
and
These
not
under
largely by the cost of production
stored to the management of our
•
Sacrificing Bank Profits
V
(Continued from page 2916)
price policy is adhered to in the
operation of the OPA, the "black
January, 1941.
"production cost, price, and Federal finances,
In order
<
I have
I
carrying out its post¬
policy.
The Govern-
fiscal
war
The
For : want of a better deals with all segments of the
us call them statesmen. economy; he is in a position to see
We will always need statesmen both sides of most
controversies.
in
government.
But, we have He cahdo much wheh dislocations
occur—as
in today's labor-man¬
learned, in a free economy, if it is
to
survive, that" our statesmen agement disputes—to persuade the
must be found within the ranks contending
parties to look at their
of
industry-^among businessmen, problem in terms of their long¬
farmers, labor leaders, and in fi¬ time interests and of the public
nance.
interest.
He can help the con¬
By the very nature of the job tending parties to reach solutions
they have to do, the banks of the that will bring the greatest good
Nation are obligated to produce a to the greatest number.,
•
goodly proportion of these indus¬
The. reason is—the public in¬
protection,
banks must discourage credit
ap¬
plication? that are; clearly vpredi^
cated
above the level of
word, let
.
have
tion.
295t
interest.
100
4
120
"
100.
-
124
v
7
A Plus
A Plus 32%
B
B Plus 15%
36%
Plus 18%
Sources of Basic Data: National Industrial Conference
Board, U. S, Bureau of Labor Statistics,
National Bureau of Economic Research.
t
Column (4) calculated by dividing (2) by (3).
and
.
econ¬
determined
♦Assuming average 15% over-all
NA—Not available,
wage rate increase 1946 to date.
:
■linn*
THE
COMMERCIAL^ FINANCIAL; CHRONICLE
:
.
v\-vvVtV/f
:
v-V:,?;.;'Tv !.^:Vf-
(Volume 163. Number,v.4494
"*«•
•
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-i".,-
-.r.
'
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•
''.iv.-'"
:'''4fa
"
<*».•
.&
•>v" J
THE COMMERCIAL & FINANCIAL CHRONICLE
:
;■'%'.V
production has been cut down to
The Outlook for Security Prices
(Continued from page 5911)
tyas going, down lo,the low edge
of that range it was apt to do it
sometime during'. the first four
v.
ment and the Internal Revenue
Bureau,
make
up
their
own
.
minds about, but there is every
indication -from Washington that
months.
that Section is about to be strongly
Looking beyond the first four reactivated, and that the handling
months, • although the earnings of it will be very tough.
that I could foresee did not
seem
As
market, and I could not help but
come to, the conclusion that the
provide at
the present time the background
for quite as bullish a situation as
of payments of 67% of earn¬
ings. The figure dropped all the
way to 39 % during the war. Con¬
'i It seems to me at the present
time that the fundamentals of the
situation indicate the logic of re¬
good
corporate bonds, because
there we have the special factor
coming in of the end of what may
be the long march in money
rates,
than
what farther away than we hav&
been
The
have
doubt despite strikes that
no
eventually we are going to have
a very high level of business—we
have quite a high one now and
it .will be higher—and that either
ii the demise or curtailment of OPA,
probable labor legislation, and the
who
have ploughed
back
earnings in a very substantial
way, which from here on must
give very serious consideration to
paying out substantially larger
resolution of some of the labor amounts of dividends.
The pen¬
factors in the situation, make it
alty, is a decidedly high one.
It
probable that at some place, we is 27 lk% on unjustifiable reten¬
will reach a point that will justify
tion of earnings under $100,000
higher levels than we now see.
and
38^%
on
anything
over
Also, I
not inclined to dis¬
agree entirely with the market. Its
present attitude very obviously is
.
am
that. something
of
that
have
tion.
I
here
the
that market.
the second
are
So I
come
fundamentally
tive
bonds.
bonds
One
the
in
specula¬
two
of
the
average
.
.
tion.
At the current moment we
As you all know, the Treasury
entering what is traditionally
the good season for the market. It Department and * the" Bureau of
is about the only thing left in the Internal Revenue do not pay any
stock market as we know it today great attention to whether a com¬
which so far has not double pany is a growing company or
crossed
However, I
us.
even won¬
whether it has particular, special
whether - that is finally not
reasons
for
whether
der
it
going to double cross us,- because
those
capnot; help remembering last
earnings
I
year's
experience
when
the
in¬
dustrial average made its high for
the summer period at the begin¬
retaining
is better
earnings,
able
than
the
to
use
stock¬
holders to whom they will pay it
In other words, it seems to
out.
came
make
back again in April to 103 to
a double top; turned down
again while the stock market
holding
was
seasonably well, and
proceeded to decline to new low
ground in late April and early
up
of
the
seasonal,
favoraole
Besides that, we have other fac¬
.
tors which are now cOming in and
which are on the bullish side.
I
have mentioned OPA with certain
qualifications; either its demise
extreme
curtailment; the prob¬
ability of changes in the labor
laws; the additional factor that
we
are heading up for an elec¬
tion. Whether rightly or wrongly
the belief is that the Republicans
have a very good chance of cap¬
turing the majority of the House.
or
I think
that belief certainly will
least persist until that day in
November when the elections ac¬
at
So whether it is right or wrong,
I
haye
no
opinion
on
that
subject,', the hope .on that r score
will be a factor in this iharket
from here on.
Federal Tax Policy Will Stimulate
"
-
that the bottom side of the range
of this market would, be 180.
Forecasters' General Bullishness
A
Dividend Distribution
take
taken
the
them
basis,
28
roughly,
was
last week
year
bullish
R
earnings.
It is possible I think to project
better earnings for a large num¬
ber of railroads on a 1942 volume
245.
of
on
their
two.
November
was
The
-
taken
for,
December
New York
15.
Just
result o*
one
I
am
weeks
or
six
talk¬
two
months
or
a
I would be very surprised
through on the up .ride,
this time was followed ;$y a
year.
if
break
a
at
really
substantial advance^ iV Jni
words, I think the present
other
situation will be followed by an^
bad period in the middle!
of
he
and
that
it
quite late in the
year
before,
yon
the market in the clear oii
the,
summer
will
1 4t
In other words, I can see>that
we may be in the same
unhappy
situation as we were in February,
up
side.-"
It
us
best
information
I
■
;
'
■
P0:w..\
■
The
car
three
or
four weeks,
remember
and
we
had
the
steel
the market would not
Attention is
come
now on
the rail and
coal strikes and the general belief
is that when they are settled w?'
-
The current action of the
expect a bull market. I am
wondering whether at that point
may
mar
the pas-
over
as
go down until the steel strike was
settled, and then people could
stop and look at some of, the
things underlying' the situation.- 0
Market Action
action
vulnerable
as it; was
February at the present time,
strike
Significance of Current
ket and its
.
ket is not
but
makes^ you stop; and think
tlie
find is that that strike will
off.
'
• '
although then the market was up
45 points and now it is up only
22 points from its low,
The mar¬
in
which T had
believed Would be another testing
period for it, has been overall ex¬
people will not take another, look
at
these
underlying things and
say, "Well, it is not quite as rosy
it should be."
as
f:U'
to
traordinarily good. I would likf
point but, however, that peoph
George Kefr^en Opens
have said how extraordinary it if
that the market does not go down
Own Investment Firhi
Well, that is extraordinary, but
SEATTLE, WASH, -r Georg?
oh the other hand, the market ha" Hemmen
has opened offices in
Jhe
been using up during that period
1411 Fourth Avenue Building tq
I believe, some proportion of itengage in the securities business
bullish material.
under the firm
; Even while the averages were
virtually standing still
of
name
George
Hemmen Investment Co. The pew
or
v
I. have
somewhat
the
Prior to
that
at least a fair number of
stocks in the list have used up for
the time
being
'
of
connebtioii
I
find
the
utility holding companies
very largely the com¬
stocks, particularly attract¬
course
There Js no particular point
in my going into a break-up o"
values here.
I am not an experf
ive.
that subject and I might mis¬
lead; some of you, but I know,
on
of you do, where you car
values of at least 50% abov
all
as
see
present prices, that they are quite
tangible values and they are no
so far away that people cannot
put their fingers on them.
There will be
That, in turn, made
me
add up
number of items in the paper
over
the past few days.
I am
has
the adver¬
tisement of the General Electric
everyone
seen
very -re-;
Company with thesbig spool :with i
unanimously; copper wire on it > which was • al-1
bullish, and the average of the most gone and the statement that
forecasts for that group for the if something happened to that a
end of the year was 250.
An ad¬ large part of the plants would
ditional survey was made as to have to close
down.
You may
almost
less
a
constant series
of worries and troubles else¬
where.
The
a
'
"
holding companies I put in
separate classification.
or
not
should at
you
1911.
since 1924.
^
Whether
point
some
J:
i
•'
Public-
mon
since
bpenirig;iiis^^qwn finpj
with -Conrad, Bruce & Cq.^,
with which He had been connected
was
portion of their
a
bullish^ materials
•Hi In; this
business
,
feeling
developments toward the ap¬
preciation of those issues regard¬
a
sure
investment
sharply.
of
Bearish Factors
the end
forecasts
A survey of
opinion-—it
cently—was
volume.
and it found
to-
not
-
a
poll of thirty Boston analysts
was
of
us
two
about
.
and no rate increase than it is to
look at the project on a 1941 volume and a
10% rate increase. Without going
othersideoftherange,or250, Well
into details on that, I mention it
to begin with, I, like most
people, to
point up the importance of vol¬
have always been a little leery
about being in the company of a ume, and it just seemed to me
that this action of speculative rail
very large majority.
I would just
like to mention these few facts. bonds raised a real question as to
Now, let
ing
*
;
:
Is Alarming
4
beer
so
June
and
in dividend
average
tually take place.
and
have
me you
;■
•
running firm will act as
participating' dis¬
around
in a/ roughly 10 point
May.
tributor and dealer in listed and
range, we have seen stock after unlistedsecurities,
investment
During the past few days, while
stock, either because of esrtreme^
the rail stocks have been putting
trust shares, bank and insufaqc^
ly good earnings or because of t stocks.
on
a
distinctly, bullish, perform¬
split-up or because of a combinatr
ance, that average managed its tion
Mr. Hemmen has been in thq
of the two, go up extremely
first
rally in three weeks, the "ex¬
a clear upward trend
payments already un¬ traordinary" amoupt of 44 cents.
Then yesterday it went down and
period, and then declined when it der way, and this will exercise a
made a new low; at noon today
i$
distinct accelerating factor.
should have been going up.
made another new low. I bring
Possibly that will be a good
That, it seems to me, summa¬
that. up principally because it
thing; then.the things that are rizes a good :deal of the bullish
seems to me it'Raises a'question
sacrosanct about the market will side of the situation as I see it. It
regarding the volume of-business
be> put-Jo rest and. wer can/start seems fo me there is more justifi¬
over the immediate future and its
all over again on a completely cation now' than there was
in
relation to the question of rail
fresh basis.
January certainly for believing
ning
has
gasoline supply of the East.
down to
still
or
v
get down to the guessing
months and
see
would be that there would be nc
tankers moving to the East, anc
think of the effect of that on the
receiver¬
grade rail bonds which
consideration
that, which will interest all of
surprising situa¬
going to drop out of
am
might, be
called money, risks, but the large
proporation is credit risk. That
lem for the directors and manage¬
The Seasonal Influence
ment to justify to the stockholders average made a high in February
!
Going "on from there, 1 can add
of
103.04; it declined with the
why they had encountered such a
: to the bullish factors in the situa¬
market in February to
101.41;.
penalty. '•/ -v* ''
are
for
a very
consideration
ex
far to the effects of the
maritime strike which is called
bonds, which I have
ship rail bonds because there
again I think there is a special
situation due to the prospect of
most reorganization plans being
$100,000.
>. ■'
either thrown out or
radically
In the instance of a company
.which earned $1,000,000 and paid changed, a prospect which has
out
$500,000, where the Bureau produced. its own effect upon
sort is
going to be the conclusion. And, decided too much had been re¬
so to speak, why bother about the
tained, the tax would be 38%%
current difficulties? They will be
on the remaining $500,000.
That
over sometime, and-why not buy
is a very stiff penalty for a cor¬
earnings thai may be nine months,
poration to encounter, and I think
ja year,: a year and a half away?,
it would pose a very great prob¬
,v.'
-i.■
V-,/'
given
of Kail Bonds
always thought are intimately
connected with the stock market,
you
I will
.
But if you look down into spec¬
ulative rail
Prospective Maritime Strike
deal of
the
$
and
going through and
other
tremely well in the face of twe
very serious strikes, so possibly
I should not mention the possibil¬
ity! of another very serious strike
but I do not think that a grea
a
current period to retire all or The
Doubtful Action
very large portion oi.theii; debt,
thinking.
I know the market has held
sequently, it seems to me that
readjustment to a
there
are
a
very
considerable new situation, and I certainly do
maining bullish bp the long-term number of companies which have not think it has any direct bear¬
trend of the market.
I think we either used the war
period and ing on the stock market.
more
so
might be that the volume we hope
for, and which is necessary* foi
very big earnings, may be some¬
the
have been
we
end of the game now.
so
con¬
seriously. disrupted
by strikes, large and small, that it
and the failure of those sections
of the bond market to rally after
the sharp decline may be nothing
age
Basle Bullish Factors
though temporarily, been
tinue to be
moment the performance of Gov¬
ernment bo'nds, of the very best
because I .do not think this mar¬
has taken, into account cur¬
rently the real seriousness of what
ket
ques¬
seriously disrupted andwill
yard-stick, probably our best bet
is to take the proportion of pre¬
war
payments of payments out
rate for the latter part of the year of net
profits, which on an over¬
would be sufficiently high so that
all corporate basis in 1939 was
it would be possible to get up to
63%. It does not vary very much
250, Now, that is the background. from the usual Dow-Jones aver¬
v f
words, I.'greatly
tion whether the economy has not
even
corporate ' and
suppliers.
of which I have spoken, and also
.
its aftermath.
In other
Bond Market Action
grade
grade
their
licut;^^^
250.
-
among'
These strikes affect 124 suppliers
and have had virtually no pub-
I think I can leave out for the
to provide a basis for a very high
level of the Dow-Jones' average,
still the
probability -was that the
•
two-thirds of what it.should be by
strikes
bond market fails to
basis to go on, as a general
a
2953:
sj,.
.
iL".1
■
Alexiriye^Sinitli Officer^!?
Visit
v
Vi
Sto^^xcban^q
Coincident. with
the admission
to trading today on the New York
Stock Exchange of the common
and
3 Vz %
stocks
Sons
that
the
of
cumulative
Alexander
preferred!
.Smith
.
and
Carpet Company, officers of
Company visited the floor at
opening and were. guests of
Schramf President;
Emi 1
luncheon.
/tit
.
Representing the Company wdrid
Frederick B. Klein, Chairman of
the Board and President; William
F. C. Ewing, First Vice-President
and Treasurer; and Drayton
CocK^
ran,
Director. Also present at the
luncheon,
in
addition
to :Mn,
Schram, were Gayer G. Dominick
and
F. Wilder Bellamy, of
Doiri-t
inick & Dominick and A. N. Jones,
shift from retail stores to machine
of Morgan Stanley & Co., under-
tools and
writers; Mortimer (Marcus, Walter
cult
so
forth is a very diffi¬
problem. The only way I
how you can solve it is to
can see
sit down and
own
figure out for your
good how much you can see
.
N. Frank, of Marcus & Co., and
Thomas. W. Bartsch of W. R/:IC.
Taylor & Co., specialists in the
Company's securities, as well-as
the
outlook for the
John Haskell, Vice-President of
market
in have read this week's "Iron Age" in the
another, factor ;W^
retail stores and weigh' it
the Exchange and P. L. West, Di¬
in the ' market November or, roughly speaking, about the disruption that -will oc¬ as to what you can see as to the
rector of the Department oLStock
the end of the year.
cur oyer the next three or four
and
will
become
increasingly
possibility
in
the
depressed
List.
powerful as the year goes on, and •; ? Well, there was one bear, as I months regardless of the imme¬ groups.,
;
mm. /.
settlement of the strike
' ^
that is the reactivation of Section remember it, and 28 bulls, and al¬ diate
Conclusions
^ tat,'
There: is
I think" is already
-
*
Code. though no exact guesses were trouble.
probably know made at that time on forecasts, in¬
There was
that is the Section which permits dividual comment indicated a quite on one page
102 of the Internal Revenue
As
the
most
of
Bureau
you
of Internal Revenue
penalty: taxes against
corporations that fail to pay out
to
assess
unanimous belief that at the end
of
the year the
would be at 250.
market probably
This is a rather
frightening unanimity of opinion,
ings.
Now, what is a sufficient and that made me reinvestigate
pay-out' and what is unjustified my 250 With a good deal of care,
retention?
Well,"* that is some- and the first thing I ran across in
thing that" the Treasury. Depart-, investigating, it was. the bond
a
"
-
.
sufficient' amount of their, earn¬
-
a
My conclusion-would; be that I
tiny item hidden
of the New York
Times that automobile production
is apt to be seriously dislocated
because of inability to get. seats
for automobiles.
I read
today that
the production of General Motors
was.
a
sharply curtailed because of
decline
plies.
in
.
production of sup¬
The statement is that their
would very
range
would not
180
definitely modify
for the
year
my
somewhat.
I
change the bottom side-
seems
decidedly
safe.
>
If
it
should be broken I do not believe
it would be broken by
enough to
make
any
difference.
I
would
»jesup & Lamont Admit -,
.; Jesup &
New York
Lamont, 26 Broadway,
City, members of the
New
Stock Exchange will
Whitney Carpenter II
York
admit
and
ber
C.
.
Edward N.
of
the
Carpenter, memExchange, " to
Stock
partnership, on June 1st. Mr. Eddefinitely pull down the top (ward Carpenter has been doing
I would pull it down from.'businessv'as an 4individual floor
250 to 230 because of the factors broker.
•";
\
—
very
side.
THE COMMERCIAL & FINANCIAL CHRONICLE
2954
gains arising from increased
The State
pro
ductivity in tools would be suffi¬
Customers
vs.
Thursday, May 30, 1946
cient to offset the heavy increase
in costs since 1939. * Of c course*
By a curious sort of not too hon¬
to hogs and sold bs pork.:
The
with more productive tools both
exchange value of pork is deter¬ est presentation, a portion of the
widening opportunity and chang¬
That should be a cheery outlook. mined by the exchange value of public has been, made to believe—
ing qualifications result for those
other • meat products, while the or perhaps it would be more acr
who
operatethem,v.,^pnfli:Cting
exchange value of corn is af¬ curate to say "pretends to be¬
r * v Outlook None too Cheery
claims .have been-made with re¬
fected by the presence of com¬ lieve"—that wages-iHrtlargeindusBut, as I see the picture today
spect to the credit due the men
Thus, we have a tfy cam be advanco&iwithettt limit
it is none too cheery*
For I be- peting foods.
and without effect on price.
The who operate the macbines versus
viieve that under existing Condi¬ delicate and complex balance of
the credit due those who provide
prices which, before price and theory presupposes that corporate
's tions .iew or maybe hone of us
constitute a
bottomless the machines in so far as in¬
other government controls, was profits
r will
have a sustaining return
creases in output are concerned.
completely managed and policed well endlessly to be dipped into.
iipon the more than five billion
Just for purposes of rough com¬ I do not choose to engage in a
dollars of tools that represent the by the customer's preferences.
statistical debate as to the rela¬
In food, as in other products, parison, it might be noted that
steel industry's assets and which
the entirety
of corporate divi¬ tive validity of such claims. But
these preferences have to do only
we could use for an all-out prodends in the United States in 1939 I do wish to point out that with¬
For cus¬
x duction.
But while we are shift- in part with prices.
amounted to $3.8 billion and that out ever increasingVingenuity,,re¬
ing back into production of peace¬ tomers, in general, buy what they the maximum
amountin
any sourcefulness, skill arid responsi¬
None of
time products we are not yet prefer and can afford.
in designing,
supplying,
year since then has
only been bility
the prices are absolute; they are
shifting
back into
competitive
managing and operating the tools,
$4.5 billion.
These .amounts
all comparative.
The customers
business.
It can scarcely be said
about the size of the proposed the^fuU .measure- of their potenthat during the war years we decide whether they will buy
J^a&vProductivity could not be
British loan—constitute^
were really in business.
.
We were beef or pork.
realized. This requires. full rec¬
•,.
(Continued from page 2914)
..
for production at
;
a
high level.
,
,
x
incentive
Just "producing iron and steel
We have,
,
"
;
full.
We
can
look
forward
to
the
Exchanges
industry, been
an
as
operating between rigidly controlled prices and uncontrolled
costs, The heavy wage? increases
have only
pa r t i a 1 l y
seeped
.through to what we buy—but
eventually they will be felt in
■ir
of
having
tomer's
price drop out; from those
owners—is
to deal, with
the chaotic and fantastic costs we
fOod prices.
That
ernment employes
may meet if the dollar becomes
tute their
place—for the
ment of the market
tion.
judgment of the customers.
The
enly
rolls.
:
_
*
peacetime
Dividends
from
have averaged in the past 4 years
about
%Vz%
of maimfaeturing
relations
food
there has been
well
are
It
a
70% increase in
is
but not so well known
myriads of similar rela¬
government price fixing.
It
tions which extend through all of
quite true that the upside downprice situation is partly due to industry and finally reflect them¬ you really do is to abolish the
ceiling prices, together with the selves in the size and kind <of reason for paying wages.
The
yardstick of 1936-39 profits? by orders that go into our books. wartime wage increases were met
.which these prices are proj ected For steel, being basic, is moved by the repetitive production of
and measured by our price con¬ by what happens in the whole identical specialty items and by
trollers.
The attempt to measure economy.
the fabrication of many other war
and to make prices by profits or
It is apparent that something specialties. In peacetime we must
profits by prices overturns the akin to the corn-hog i$tte extends meet the varying specifications of
elements
of
enterprise in the through oUr whole economic life a multitude of customers—an en¬
blame our present situation upon
,
"
"
known,
is are the
American tradition and is a throw¬
back to
a
non-competitive sort of
capitalism Which we have here¬
tofore escaped in this country.
'
I repeat we have not re-estab¬
lished a voluntary, competitive
society.
But it is not an answer
to our problem to say: "Fix our
prices so that we can get back
Pur costs plus a reasonable profit."
Danger of Defining "Reasonable
Profit"
Once government
with
starts playing
definitions^ of
"reasonable
profit," voluntary enterprise is
For all that a government
can do
is to substitute govern¬
ment-sponsored m o n o poly for
competitive profits and losses,
but.
But from
that
the
I
of
some
hear
and
editorials that
remarks
the
from
some
I read,
of
some
'parts of industry are perilously
near to trading selfish appease¬
ments for sacred principles, which
boils down to asking the govern¬
ment to throw freedom and- com¬
petition out of the "reasonable
profit" window. May I recall to
your minds ;that some years ago
when certain appeasements were
offered to
forefathers to dull
our
the edges of their principles, they
jheld a party in Boston Harbor and
dumped a cargo of tea.
•
Let
Let
us
us
scratch
a
bit
deeper.
switch to something very
an
excursion into
different—take
farming and think about the
hog ratio.
farmer
I shall not set
corn-
up as a
into the food
shortage—which at least will be a
or
change for
even
go
you.
.
and that,
when we talk prices, we
our
' costs determine bur survival
hog.
But if corn has a
exchange value as pork
than
corn,
as
25% of the cost is
present nominees for- the
1946-7 administration at the Sep¬
tember ■ moetingyy Thes^'hinkware
to; be chosen
members
as
from ablate of
follows:
-
^Aucom^ YahAistyne^ Noel
^
Additional
.
nominatioftS^or the
Nominating Committee may
be
Things Worse
Government, of course, can in¬
tervene.
But
its
intervention,
r
placed before the meeting by
petition signed by 20 members,
a
which
must
be
filed
with
the
except
fixed*anri*sthat-
New Officers Ghosea
Bond
By Financial Writers
.
And that
of
our
brings
industrial
me
Problem
to the nub
problem—how
creased
cost.
v.
Of
course
I
am
thinking of our largest and tur-
New
Department
York Stock Exchange
and an
Dloyee of that organization for
thirty-four years, was given,.a
this-evening at the Masonic
Club by .members of the Exchange.
dinner
andy employees of the Bond De¬
partment, on< the occasion of his
retirement on May 31 as an active
I^Csident^Frariklyn Dezeridoff of employee.
Barron's; Vice-President, Robert
Mr^ 'Stead entered, the employ
Denver of the World Telegram:
whereas the longer-term
peacetime expectation i^Jbr dis^
tinctly lower rates. So we cannot
be saved by volume. =
rates,
The Nub of the Industrial
*
in July, 1912 as a
Secretary,vH, Eugene Dickhuth of
page on the trading floor, arid
Second, there is improvement in the Herald Tribune; Treasurer," 3ecame Manager of the Bond De¬
tools.
Estimates of the improve¬ Warren R> Williams of the Times:
partment in August, 1920. He is
ment in;; the productivity of. our Governors, Joseph M. Guilfoyle of
55
years
old
and resides;, in
Wall Street Journal, Hudson
tools run from 1.7% per year to
lackensack; New Jersey. •; ^"ui ;
Phillips of Associated Press, W.
double that amount.
Whatever
Kenneth Hayes- of United Press,
Sylvester P. Larking a former
figure is correct, it is clear that a Thomas /Keller of; Wall "Street governor Of the Exchange spoke
Driefly as did Jacob G. Stone^ also
great many years would have to Journal, and Joseph D. Aleo of
the corn will be fed rently most volatile cost—wages, pass
nominating
will
1946
Government Intervention Makes
volume
of ■'production
is
than they determine our the
prices.
It is what we call com¬ doubled, the unit cost theoretically
But
petition that makes our prices and would go down by 12
At its annual meeting at the
12Y2% is a long way off from the
our job as steel makers is to see
that we, over the long-pull, get approximately
70% increase in Hotel ^Astorin New York vJCity
May 24 the New York Financial
our costs and profits out of the' wage Costs sihee 1939. JlWo^ibVb^
prices that competing ^customers in the steel industry we have been Writers' Association.,,.elected the
operating
at
abnormally high following officers, for 1946-1947:
Will pay. '
■
"
to cover our costs and profits and
it is a purely American thereby stay in business when
price relation. Roughly, the rela¬ some of our costs are arbitrarily
tion is this: If corn exchanges for shoved up over night without the
more goods as corn than as hog,
correspondingly
increased: pro¬
it will go to market as corn and duction necessary to cover the in¬
as
item on the order of business will
be the election of a
committee of nine members who
& Co.; Alfred Borneman,
Kidder,
Peabody & Co.; James Comyns^
Gude, Winmili & Co.; George tp.
Deming; Craigmyle, Pinney & Co.;
Francis I. du
ognition of the incentive factor Arthur Hansen,
fojuboih,owners and operators of Pont & Co.; Alex Hayesy Smith,
the tools.
Barney & Co.;
A1 Heitzman,
Third, there is price. .It is clear Fahnestock. & Co.; A. B. Kendrick,
from the foregoing observations Burton, Cluett & Dana> John S.
that the wage rises have greatly MacLean, Shearson, Hammill &
exceeded the production required Co.; John Maher, E. F. Hutton &
to.offset, them and hence must be Co.; John Martin, Delafield &
covered in an abnormal price rise. Delafield; Edward Morgan, East¬
But the first abnormal wage and man, Dillon & Co.; Nicholas No¬
price rises start waves of other vak, Drysdale & Co.; Wm. Pendleincreases and these come back at ton,, Jr^, Clark Dodge
& Co.;
us in h high£^p£tef br
George Plain, Peter P.-McDermott
we buy.
You can see it coming &jCo.y.Adolf Rogenburg, Newtoday in coal, ore and freight and burger, Loeb & Co.; P. C. Hugaa,
thousands of
other items.
All Cohu & Torrey; Arthur Shaffer,;
these combine to require further Hirsch & Co.; James Sloat, Goodprice increases.
body & Co.; Anthony Smith, G, H.
And then where are we?
We Walker & Co.; W. A. Winslow, •
££fc^pn... .our
way to
the final Merrill, Lynch, Pierce, Fenner &
/
squeeze by the customer—for the Beane.
customer always has his own ceil¬
Members of last year's commiting prmer';'vAnc|L W& ?
< sfcajr
tee^which proposed • this slate are:"
squeezed by
Frank Walker, Chairman; Elwood
we adjust ourselves downward or
Ellis, Paul Gehring, Fred Gray,
the customer adjusts himself up
Charles Hemming, Jack Lowther,
Harry Horn,«Harold Shea and
about unless price and wage fix¬
Kenneth War dr.ing be abandoned.
' %
more
know,
not
Downtown; Athieti^^Giuhyhas^k'
full; ^h^Xntefeistihg agehda. One
.
in this country and, in so far as I
higher
Association of Customers
Brokers, to be held.June 12 at the
toy prevent fraud; /and Secretary of tpe Association five
are
r e a 11 y
There is one curious thing, .let
talking exchange
<
coercion,
only - make?- things days before the meeting.
values and that these exchange me remark, about the theory of "Worse.
For if the government or
Amendments to fee Presented^
values
depend upon other exr notion that wages in large indus¬ labor r unions—assuming
to su¬
io Meeting
change values and so on through try can be, advanced
without preme eCohbmic ^feisight^ttro^
a most complex mechanism.
It is limit. It is that the theory or no¬ dude rigidity into out affairs; We;
ecutive'yCommittee composed of
also apparent that never is the tion is never. extended to the
shall, be unable to adjust the exAndrew wShumaiY:
dollar figure an absolute—it is small filling station or the, corner
yWiljiam
chahgd relatiohs of our products
just an expression of exchange store or, for that matter, to any te thetexehahge relations of other Barber has been workiug on cer¬
tain revisions and additions to i
values of the moment. We never business operation that-'individ¬
products out of which comes auto¬
Constitution
and ' By-Laws
really know whether prices are uals can see for themselves.
matically self-balanced progress, the
which have been approved
for
high or low.
Thus, although a
Thafcis Whywe cannbtvhave; a
rT:''
Basic Problem
\ •
ton of steel is currently selling at
mixed economy. A muted econ¬ submission to the membership at
The real and basic problem can
its highest peacetime dollar price
he. regular quarterly meeting.
omy must always be a messed
The proposed changes would exin
two
decades,
nevertheless, be simply stated.; It is: How can economy.
end membership in our Associa¬
despite its vastly improved qual¬ our historic system of producing
5 All government efforts to fix
ity, it is exchanging for the small¬ and exchanging goods and serv¬ reasonable profits or to determine tion to customers' brokers em¬
ices recover from the acute indi¬
est quantity of goods and services.
ployed by those Curb firms that
prices by profits or profits by
are
not members of the Stock
If our books are bare of orders, gestion brought on by the increase
prices are unalterably opposed to
that does not; of itself mean that in the whole cost—for all manu¬
Exchange; provide for independ¬
the American fundamental that
prices are too high.
It may be facturing industries—of a wage producers must compete while ent auditing of the Association's
that exchange relations remote earner's hour of approximately
aooks; raise the annual dues from
competing customers—the public
five to $10; would insure greater
from steel have been disturbed 70% since 1939?
—decide. in some fashion which breaks the
facility in organizing the incomThe elemental fact is that the
All such government efforts ate
chain of relations that leads to increased costs—many of which
ng
Nominating Committee, but
either open or disguised, measures wouldnot
change any of the pres¬
the buying of steel.
as yet have not been felt in full—
to protect the customer from him¬
ent system of voting in such Com-'
If the customers are not buying can be met in one or more of only
self. Actually the customer never
mittee, and make all past Presi¬
We have no widow's
much steel and a price cut only three ways.
needs protection—except in that
dents of the Association
auto¬
switches orders from one pro¬ cruet out of which "to pour wages. ancient and
continuing struggle
matically become members of a
ducer to another, then it is not
First, there is volume.
There to escape frustration and exploi¬
prices but something else that is is no magic in volume. If we can tation by government under the permanent Advisory Committee?.
the matter.
double the volume of a business,
guise of protecting him.
We like to think that we can the unit cost will'be reduced to
NYSE Honors Stead
If we assume that
make our prices on our costs, but some extent.
James J. Stead, Manager of the
?
The corn-hog ratio is not an in¬
flexible relation, but it is one of
the most important that we have
tirely different cost situation.
quarterly business meeting
the
.
obvious that this*
great
wage
increase>. could not
have been paid out of dividends—
if you try to get a 70% wage in¬
crease out of a 7%
margin what
wages.
The
of
.
v-l'
manufacturing
is because gov¬ Wages "and salaries--that is, the
tried to substi¬ wages and salaries were about 15
judgment for the judg¬ times the dividends.
Since 1939
subject to further:rapid deprecia¬
satisfying to
the
for creating jobs and pay-
reason
Quarterly Business
Meeting en June 12
-
enormously
point is that the customer's productive and highly feffibient
decision and not the cost of the tools of production—tools for un¬
producer determines the exchange paralleled abundance in peacetime
relations all the Way down the and impregnable defense in war¬
food line. Those producers whose time. The expectation of earning
costs cannot come within the cus¬ wages
for tools-^dividends' for
*
It is convenient and
entire^dncur^
The
producers whose costs d£e within
Let the say, as an aside, that! the customer's price comes greater
mean by the phrase "rising costs" production.
You all know the
only those costs with which we chaos and the shortages which
commonly deal in business and I have come about through fixing
not attempting
our
comparatively, small cost to.
America
rising costs.
am
for
porated business. wThey:reptesent
Decision Determines
Customers'
cording to directions.
Customers Brokers
.
beforethe
accumulative
of the Exchange
>
World
Telegram..:
.
*
Volume 163
Number 4494
Freedom
;the
world.,
-
.
-
♦
we
be
acquiescent in such methods.
,
-
/v'
t
The churches
*
;
Business
already doing
that.
We who are here tonight
condition-cannot stand.
We are are particularly interested in the
Fund.
{daily witnessing against our pro¬ Presbyterian Restoration
cessed faith.
A world which has That is part of ark effort by the
strate they they; le^d to a disorder
which the ^world in its weakened
are
slight margin for survival, Protestant Churches of America
receptive to extending to raise $112,000,000, primarily
if they are influenced only by ex¬ freedoms which, if our conduct is for aid to the stricken churches of
ChaJtongev to-Freedom/, Based***, pediency; can,readily be induced any criterion, would wip6 out that < Europe and Asia. That is precise¬
to take - what seems the easy way margin.
ly the kind of a voluntary effort
on Our Weakness
Does
Distribution
Cost
Too
which must be made and which'
But we would gravely misj udge out/ that is to surrender their
Much?—It f May .Cost More—Don
must succeed if our free society is
The Failure to Make Peace
the situation if we concluded that freedoms to an authoritarian state.
to
survive.
The
Presbyterian Francisco, J. Walter Thompson
the present challenge to freedom If we can defend a societyof*&ee^
H®at is why our foreign policy
dom only on the ground of \its
quota is $27,000,000. That seems Co., 420 Lexington Avenue, New
was formidable only because, those
seems
so
ineffectual.
We think
small in contrast with the billions York 17, N. Y.—paper.
leading it used inhumah and of-- material" expediency;^ then/;wev
Neither should
end deceit.
;
2955
ways to restore the prestige and
the
safety • of freedom in
Through
(Continued from page 2912)
j that has been proved by the fact
/
group to propagate its faith by that we in this country achieved
^ force^of'-reasoa and
of example: greater- productivity and higher
standards of living than any-nonr; But we must 'not shut our eyes,"to
>'.; i methods, of violence', intimidation free society ever approached/Rut
'
:iW4«
THE COMMERCIAL & FINANCIAL CHRONICLE
there
are
-times
are
when
.
freedoms
abused and^at those times men,
only
a
not
is
.
y
.*
w
,
:
■•\-r
:.
y(r' fensive methods* '"That challenge place that defense- pn treacherous
derives its greatest power from ground.' " rJ;.
It was nof. .for^reasons, of;ex*
weaknesses. ^wluch'fbaye,ide-;
Cveloped in our society of freedom pediency that our own society was
.
-
and
which
caused
have
a
wide¬
spread lack of faith inJLtK Of the
last 25 years, nearly, half have
founded
Our
as a
free
society
games'
society
byr
product of-the religious beliefs pf
been. yeara oi;wqridrwide war an^ our people. Those .beliefs
r^in
most of the xemainder- ftaye^qeeh many respect divers.e., There wero.
■
t
a
of; world-wide,economic different ^Qtqsi^i^
v
crisis,
Those were years, also, tions. There-was, Boman Catho¬
.when
Western democracies licism and the Hebrew faith. .'^11
the
had .the leadership and the .initia¬ a*greed,however}on.thebasicpfpptive in the shaping ,of world af-' osiftbhi^bat.> mem; '^re ehdoyred
years
that the peace settlements ought
to promote in the world the free¬
doms
for
which
we
thought we
were
fighting. But Soviet leaders,
themselves atheistic, are not dis¬
posed to bend to conceptions
in
which
our
Government
deals.
Economic
But Government
operations, even
proposed loan to Britain, are
the
relatively
painless
in
the
ress—A
sense
that they
do not immediately re¬
quire any personal self-sacrifice
which, to them, seem obsolete and
by any individual." Indeed, many
to have little authority
except the look to them as sources of per¬
waning tradition of a dying faith. sonal
profit.
The
$27,000,000
-That is a reason why the Council
which we Presbyterians are rais¬
of Foreign Ministers has so far
ing is going, to be rich in volun¬
been unable to agree on any peace
tary sacrifice. That, to jny mind,
trenfies^That is a reason why the is its outstanding value.
.Security,..Council of the United
I could appeal in terms of the
Nations is sb*vdivided
internally, terrible want of our Christian
that it is relatively impotent.
brethren.
Of this I have some
surprising that by their Creator with certain in¬
alienable Rights."
That is what
slight first-hand, knowledge. The
should give rise to a strong reac¬ bur- f0ibbear^:said4^teir ;J?ecla'r
The People Must Be Told
Protestant churches
of Europe
tion; Many are tempted, to.gamble ration .- of Independence an<I that
In this crisis^ pur political lead¬ and Asia and Christian colleges
«y, on new leadership aqcL many rise is why they fought" to make it
like those of China are desper¬
to the lure of a. new and radical good and founded a Government ership can help, but it cannot be
fairs.
It
is
not
the resultant chaos and destitution
i
Under these circiunstances; the'
challenge to freedom cannot, be
met by using our present pre.-.
ponderance of military and eco?
nomie> power to cperce Soviet
leaders
into ^abandoning
their
mnbitions and leaving world leadership to us.. Even if we suc¬
ceeded in
doing that, it would
prove nothing.
It would not end
the challenge to a society of per¬
v
-
5
•
I
„v,-,
y
•
-
sonal
freedom.
On the contrary,
it
would probably
challenge. For the
ment would then
i succumbed,
not to
m
intensify that
Sovietexperi¬
to have
our merit but
»
to our might.
New disciples of
■*h# that faith would spring up everyV
where.
seem
No program is adequate if it is
merely against some one or some
thing; The only programs-which
-achieve permanent, successes are
those which, are constructive and
;
•
r
r
V
\y4jy ;CfeaU ve;4n^^their,;0 way righ&y At
-
decisive. It can help by itself see¬
ing the issues and telling ;them
Bill .of,Eights.,;:, simply to the people. It can help
by trusting our people more. The
Self-Control Necessary
fact is- that the people have not
There is another side
to. the
been told and they have not been
could
which
trespass
not
an
the
•
matter.-
Freedom
aloneis
not
There must also be selfthe oxercise -of free¬ ■,r. Wto ihe|fightlng ended, the
dom.
Freedom is not a joy ride. American people were encouraged
to act on the assumption that the
It is a serious responsibility. In¬
enough.
eontrol
in
deed, freedoms
are
dangerous un¬
less thoser who possess them are
restrained by the moral law. That
is the second reason why only a
iinchakflhl^ ^convictiam^that
fear
of
freedom.
They
point to
abuses of freedom.
Mr.
Vishinsky, in. speaking to ;rthe
United Nations Assembly,.said: "It
is indispensable to. brkightpita^
tion to the will,and to the action
many
free*
'
also
and
show
to
freedom
that
'
'
promotes the general welfare, We
have done that in. thepast,., That
was
the
essence
of& the "great
-
•
It will fail because we
great
will have restored the prestige of
majority thinks right and
what they already reflect in thensocial
will ugain want
it.
The Responsibility of
tion
the Churches
*
In such a constructive- program,
the churches must take a primary
:
was
over.
ration¬
more
which
would
still elude
us.
freedom
promote
&
.
,
Now, for six months,
been
told
in
world-wide
generalities
famine.
have
we
But
about
no
one
has
about it.
meet
the
They do not know today
situation
plans to
diverting
by
food at the source, or whether it
relies on individual self-sacrifice,
ited.
The point is, by whom; and
by what, shall it be limited.?./Jn a and if so/what form it should
I am confident that the
truly free ^society, : the Einitation take.
must come primarily from accept¬ American. people, if given clear
ance
of what we call the moral guidance; would exercise a self-
freedom in the world and all men
-
no
;Amerkan;exporimoPt»"^»
hap 0
great success.
If we- can reiiew law. A free society, .of courser has restraint in the matter of food
that-kind of performance, then manTmade laws.
But these laws which would amaze the world and
the present challenge to freedom are a codification of what the restore confidence in the work¬
will fail.
•
self-sacrifice
whether the Government
develop- ;:::;'^e::^>-agree.;tot^the?exercise;
child of God of human freedom must be lim¬
of man,-.as a
for
yet explained to the American
It is impossible not people precisely what they can do
of men.. *:
dom is necessary for the.
ment
»
time
There would be
ing. The, draft would be made
painless.
Labor could take time
off to rest, while
bargaining for
religious society can bold stead¬
high wages.
fastly to human freedoms.
It is not surpi^sing that,in con¬
The Soviet Fear of Freedom
sequence, freedom fell into disre¬
Soviet leaders-profess a great pute and that peace settlements
and
•*-
trusted.
v
conduct.
A
of that is the
Thus,
good illustra¬
common
law.
free society has controls,
but these primarily result from
acceptance by individuals of the
moral law; Religion which teaches
,the sacredness of the human per¬
sonality also teaches that men
a
ings of freedom. Even
American
people
are
as
it is, the
doing well.
I do not belieye that labor and
management
realize
that
then-
present performance is discredit¬
ing our free society to such an
that it jeopardizes
the
peace and may render vain the
human and material sacrifices of
extent
1
For the truth is
that a society of freedom cannot
the war.
That may have been
persist, and probably ought not must not use their freedoms self¬ said, but not in a
way to drive it
to persist, except as a religious
ishly but with consideration, do¬ home. I am confident that if the
i
society..
responsibility.
I
The only
;
1
;
1
over-riding and everpresent! reason, for protecting ,the
individual from spiritual, political
and
;
:
]
:
;
intellectual
coercion by the
created as
ing unto others what they would American people realized the true
situation, the moral pressure they
would exert would be irresistible.
that others should do unto them.
It calls for-self-restraint dnd selfsacrifice.
A society which is not
State-is that men are
religious
In sum, I believe that the moral
still operates in the United
States. I believe that, the Amer¬
ican people are still capable; of
Jaw
cannot grant much freedom^ It is
the children of God, in His image. dangerous to give freedom to peo¬
y!^
thus ple who do not feel' under a moral the self-control; the self-restraint
sacred and the State must not compulsion " to
exercise "• self-re¬ and the self-sacrifice which alone
trample upon it.
straint and. self-sacrifice; . Under entitle any people' to be free
peo¬
Unless men have such a faith, those circumstances, those in polit¬ ple. I believe that
they can dem¬
..
then
personal freedoms become
primarily a matter, of personal
v
i
satisfaction
■;
<
,
;
v.-,
and
their
retention
ical
power
must themselves im¬
the control which every so¬
ciety requires. An atheistic society
pose
onstrate
that
freedom
only right, but practical.
is
not
The important thing is to find
largely a matter of expediency; is inherently a dictatorial society. ways to show that, so, all. the
For: myself, I do not doubt that
The big question in the world world will see. If we do not find
it is expedient to have a free today is whether
moral law has those ways, then dictatorship will
society.
I 'am confident that, if wide enough acceptance so that it grow throughout the world.
Its
freedoms are properly used, a is practical to let men have free¬ alien faith will isolate
us
and
society of free men, will be far dom.
In this country we are still press in
upon us to a point where
more productive than a society of
officially committed to a world of we shall be faced either with
men
who, like well-trained::ani¬ freedom.
We talk a great deal surrender or with new war.
;
mals, docilely play their allotted about that.
But while we talk
In such a crisis we do not need
parts in some five-year plan made .we use our own freedoms in ways to wait until we are told what
to
for them, by the State,
I -think which, to others, seem to demon- do. We can' find for
ourselves
■r
y £
our
pany,
Inc., 330 West 42nd Street,
New York 18, N. Y.—cloth—$2.50.
Imports-^-The Gain from Trade
Robert L. Gulick, Jr., with in¬
troduction
by
Committee
on
J.; B. Condliffe—
International Eco¬
nomic Policy — 405
West 117th
Street, New York 27, N. Y,—pape.r
•100
tional
upon
of the World Council of
of which
Prog¬
Keynes-
Foreign
Exchange
For¬
eign Trade Regulations of the Na¬
the program
Churches,
Presbyterian effort
ately dependent
or
the
Regulations and Temporary
v
experimeht.y
of
ization—McGraw-Hill Book Com¬
Temporary
•
„.
Stagnation
critique
Hansen school of economic stabil¬
Government
China
of
feller Plaza;; New York 20, N.
;~-paper—200
.
is
part. But tonight I put pri¬
mary emphasis not upon the need
of others, but upon our own need,
We need the opportunity to make
the
personal
sacrifices
which
alone can demonstrate the right
of our free society to survive. We
need to keep alive iii the world
the Christianity which is the in¬
dispensable barrier to dictatorship
everywhere;
Each day we eagerly scan our
papers for news from the foreign
front: Often what we learn fills
our
hearts with foreboding.
As
one who has had some part in ef¬
forts to make the peace, I say to
you that if you really want to
know the future; look inward, hot
1—
Chinese News Service, 30 Rocke¬
■
a
outward.
The future of the world
depends, above all,
Americans
on
whether
demonstrate
that
we
~
1
|®
vj
to
Understand
the
Stock
Business
Publications, Inc., 82
Beaver Street, New York 5,
N;iY;
/rpaper$1.00.
Atomic
Age,
Slavery
The
—
Suicide;—
Socialism? — Aaron
Levenstein —^ Socialist Party, 303
or
Fourth Ave., New York 10; N...Y,
—•paper—150.
'
Career
view
of
a
Banker,
The—lie-
of
Banking to aid Senior
Bankers,; Institute graduates,,; re¬
turned banker veterans, and nqw
bankers
American
—
Banking
Institute
of
12 East 36th Street,
New York 16, N. Y.—cloth.
—
a
people who, by the grace of God
are free, are also a people who,
through
acceptance
of
divine
commandment, are people of selfrestraint, self-discipline and selfsacrifice.
How
Market—^William W. Craig—Mod¬
ern
National Accounts; Income and
Expenditure, 1938-1945 (Dominion
of Canada)—Dominion Bureau of
Statistics, Ottawa, Ont., Canada-^500, (Remittances should be made
payable to the Receiver General
of Canada.)
Lieberl and Oberl Co-
Imports^-The Gain from Trade
—Robert L. Gulick, Jr., with in¬
troduction by J. B, Condliffe'—*
Committee on International Eco¬
Common Slock Offered
N e w burger and Hano and
Kobbe; Gearhart & Co. Inc. on
May 29 offered to the public
120,000 shares of common stock
(par $1) of Liebert and Obert Co.
(Pa.) at $6.50 per share. Of the
total offering, 40,000 shares are
being sold by the company and
80,000 are to be sold by certain
nomic ^Policy, 405 ; West
llTJth
Street, New York 27, N. Y.—paper
—100.
International
wholesalers, jobbers' and re¬
postwar ex¬
pansion in export and import
tailers planning for
trade
operations — Committee for
Economic Development, 285 Madi¬
Net
proceeds to the company
used to
purchase the
brewery plant and equipment now
operated under lease.
>
Handbook
manufactur¬
ers,
individual stockholders..
will
Trade
—designed to assist
be
son Avenue, New York
17, N; Y.
—paper—500.
'
Liebert and Obert incorporated
March 28, 1933, conducts,; a
Conditions of Private Foreign
of
Nations
Investment—League
on
Its two; main
products are sold Under the trade
names
of "Cooper's Fine Beer"
Report
and "Namar Premium Beer."
York, N. Y.—paper—500.
brewery business.
No. C.14.M.14.1946.II.A.UColumbia University Press, New
After the completion of this fi-
Financing Business During the
nancing, the company will have
a capitalization of 240,000 shares
of common stock, par valuer $1
oer
share, outstanding. There^ is
Depression—Charles
McGraw-Hill
funded debt and the company
no
has-recently paid off the $50,000
of bank
loans previously out¬
the
Mortgage
fiscal year ending March
totalled
$1,756,484 as
1946.
compared with $1,386,291 for the
year,
an
increase
of
$370,193. Net income for
fiscal year was
marked
before
$36,148.
to
Sound Mortgage
of
$112,811, showing
A.
-
over
the
year
net : income<
was
.
;
and
.
Executive Practices in the Field
last
increase
when
the
Estate
Management
Depart¬
ment, Manufacturers Trust Com¬
pany, New York, N. Y.—paper.
previous
a
Keys
Management—Real
Net sales of Liebert and Obert
31;
Abbott—
42nd
Nine
standing. '
for
C.
Book
Co., Inc., 330
Street, New York 18,
N. Y.—cloth—$1.75.
'
r
West
Human
Resources—Lawrence
Appley—Industrial Relations
Section,. California
Institute of
Technology, Pasadena 4, Calif.—
.
paper—500,
/
THE COMMERCIAL & FINANCIAL CHRONICLE
2956,
be
Scene Shifts
Silver
(Continued from page 291^i
■
fusing to the uninitiate, but it is
quite in keeping with Congres¬
sional politics; First* of all, it; will
»be. recalled that on Pec. 18 ;the
House of Representatives passed a
bilf» of
Representative. Joseph
Martin of Mass., H.R. 4590, calling
'with* the :House, 'since, the
ence
already
House
H.R.
passed
has
4590;, and I am hopeful that the
conferees can reach a satisfactory
agreement/ My purpose in intro¬
ducing the bill was to expedite
matters.
In taking this action I
compromising: with prin*
for the sale of -Treasury surplus ciples I have supported for years,
silver to industry
at 71.11c an napiely that the Treasury shouild
ounce. - This
bill - was identical never sell its; monetary; metal
with one introduced in the Senate stock at less than monetary value,
am even
V"O
Bank's
their probable reaction
"compromise" containing
the $1.29 ^proviso, returned dis¬
couraged and informed the other
parties^ fa; thev compromise /j^at
they could no longer be bound
by it Thereupon, it is- said, the
on
the
to
silver-user
with¬
also
Senators
.
summer of -1945
Senator Green. Both Martin
the
during
states /with im¬
silver-fabricating inter¬
represent
Green
portant
of
Because
ests.
'; by
and
of enough
lack
silver, the position of silver fabri¬
cators is said to be very acute,
immi¬
with shutdowns present or
nent
Because.of the inactivity of the
and
Banking
Senate
which in the
ounce.
an
case
•My
,
mining states, the content of H.R.
4590 was this year reenacted by
House of Representatives in
to the pending
the form of a rider
Treasury Department appropria¬
tion bill. That rider, as related in
recent weeks,
Was last month materially ihodi?
tied in a subcommittee of ; the
Senate Appropriations Committee
and, in the form published in the
'Chronicle" of May 2, technically
is still pending business before
these colums during
that committee.
"
«
Ihfti-biliVwhich .was • introduced
by Senator Murdock and seven
ether silver Senators on May 16,
namely S. 2206, is in content iden¬
tical with the just-mentioned Ap¬
propriations subcommittee com¬
promise. What the Senate Bank¬
ing and Currency Committee has
tiow -done is to Rmend the Martin
ball^ H;:R.4590, by striking out
everything .but.. the number and
enabling clause
and thereafter
substituting the content of S. 2206.
Senator
Murdock's Comment
When
interrogated
consent.
mous
A; single
could prevent
Once
the
Senator
speedy han-r
such
dling Of the bill.
Senate
acted,
appoint con¬
Normally, but not neces¬
sarily, the House Banking and
Currency. Committee would be
drawn upon for five conferees,
namely Messrs. Spence, Brown,
Patman, Wolcott and Crawford.
This
is
where
Senator Green
ferees.
in again.
comes
•''A /',•
Statement of Senator Green
identi¬
bill is
cal
the
with
ise
to by
comprom
agreed
Senator
Green
and
Western
Sen¬
several
ators
which
on
reached
-
ac¬
-
and
agreement, was
announced
some
three weeks ago."
:
There i§ reason to believe that
private' parties, if not .Govern¬
ments,
are
hoarding unknown
quantities of silver abroad or;at
home.
The
Treasury
intimated
preferred
the
account
and" all'
of
being sold for
are
of
certain^ stock¬
holders.
Net
will
proceeds £ to
be
used
to
the
the
eompany
reimburse-it' for"
,
retirement of 926, old- shares
of 7%
which
cumulative-preferred stock;
were called for
^redemption
<
April 15, 1946. T^baiance of
the proceeds will be used to
pur¬
this in its recent letter to Senator
chase new equipment, and as ad*
McKellar, giving
its requested
opinion, on
-
on
silver- ditionaLworkingicapitel;^
the pending
compromise rider.
The
;
of
outstanding.-capitalization
company, after giving'ef¬
the
•; In that letter,
the compromise
The
shortage
artificial
this
silver is
produced
of
situation
country's
an
business turns out
fice of the "silver certificate" the
is
as
made to
money,
to
seem
circu¬
whereas the public
since the date mentioned has
been
and
Were the thousands c-f tons of sil¬
o
ver
report out the
silver
com¬
public
reported to the writer, an indus¬
the. following
statement:
;
"There
a
long idle in the Treasury
industry,
there would be no shortage now.
But the artificial shortage is today
so acute that, in at least one case
Green
made
now
vaults to be released to
promise, Sen¬
ator
generally unwilling to han¬
dle the inconvenient "cartwheels".
trial
consumer
to resort
of silver has
had
to the melting down of
was
thousands of standard silver dol¬
meeting to-
lar coins so as to obtain the metal
day on sil¬
ver legislation
needed to keep
When
Senator
tains
Green's office.
a
its
the industry going.
business
silver
in
ob¬
concern
this
way
it is
$1.29 an oz. for it.
is perfectly legal.
present OPA ceiling on silver
lion is 71.110 an ounce.
To
paying
process
Sen. Theo. F. Green
The
The
bul¬
ozs.
may
The
New
teams
York
more
of
in
the
representing
Exchange
the
Curb
were
"Shorts"
and
tied for the lead
division
of
the
Wall Street Softball League at the
close of the second week of play,
not be too during which the Curb Exchange
compromise,
silver
The
!
Soft Ball League
F. V. Foster
to be good
100,000,000
subsidiary coins
much.
have caused the Treas¬
ury to buy up silver and put it
away in the vaults.
By the arti¬
1878,
On May 26, one day after the
decision of the Senate Banking
Committee t
lieves
subsidi¬
in
the Mint be¬
the next two years,
of
ever
Currency
reliably reported to desire to
earmark from that bullion 100,-
is
The silver laws, starting with that
late
backing for Scores in Wall Street
But the Mint
silver certificates.
by
legislation.
silver
silver ribt' frbeded as
000,000 dzs. for its future
ary-coinage needs^R^
Results of Silver Politics
metal
,y;,i-i\ fy.
\^v..
correspondent in this There were
city, Senator present in ad¬
PHiSi
Murdock com¬ dition to the
"The
the
-
for comma With the silver
comma
rider
the
"Chronicle"
mented:
•
House would have to
in
the
by
denies
!
»
a
the
—.
,
.
,
objection thereto by some of
its members hailing from silver
;
•
good/part of - this - silver, for
coinage,eventually./
use
000 shares of "common
,
Currency ing and Currency Conimittee re-^
owing ported out last-week is by unani¬
to
The silver bloc
•
silver, rumored to
excess
weigh.between 40,000,000 and 50,000,000wozs. Probably Mexico Will
the only part of fect to this
financing will consist
immediate sale of silver at 90.3c curacy of such report. Said Sen¬
which the Treas¬ of
$1,000,000 of 5% first mortgage
and after two years,, sale at $1.29 ator Murdock to the "Chronicle": ury reluctantly accepted was the
bonds; 22,538.84 shares of >6%
an ounce."
"
■'
"Speaking for the silver Senators, 90.30 proviso for the sale of silver
cumulative convertible preferred
/.The Senate calendar is crowded I categorically deny that we have to! industry during a two-year
stock, par $25 per share; and 544,and important matters have pri¬ ever receded from the compro¬
period and the acceptance of new¬ 558: shares of
common stocky .par
ority with Senator Barkley. The mise agreement.
Moreover, the ly-mined domestic silver here¬
100 per share.
only way early action could be language of our bill S. .2206 is after.
The Treasury now holds
had on the bill which the Bank¬ identical
word
for
word
and about ,225,000,000 ozs. 6f "free"
Committee ohthe subject,
the
for
provides
bill
drew from the commitment to ac¬
cept the compromise.
of silver is $1.29
possible for Mexico to sell on
the whole of the
the ; market ;
i
promise. Unofficially, one learns'
that- silver-bloc> Senators,^ haying
sounded
out/ members • of
the
House
-Thursday, May 30, 19.46
however, gives no instructions as
defeated Carl M. Loeb, Rhoades &
Co. 8 to 4 and F. V. Foster
won
such earmarking of pres¬ from the New York Stock Ex¬
ently-idle silver for future Mint change Bond Brokers 5 to 4. Car¬
needs.
Doubtless, there are some lisle & Jacquelin bested Goldman,
to
any
iri
Congress
the
see
market
who
Mint
to
fill
would like
go
any
to
coinage needs.
;
,
fixes the new price
domestic newly-mined silver
If Congress
for
thereabouts, silver pro¬
have the choice of
offering the silver to industry at
that price, or to the Mint.
If
offered to industry, a given quan¬
tity of silver will reduce indus¬
trial demand by just that much,
and to that extent relieve the
upward pressure on the price of
silver.
But if the silver is instead
offered to the Mint, the latter will
immediately; have
to
earmark
enough of the silver to serve as
backing for the silver certificates
with which the Mint pays for its
af 90.30 or
ducers
Sachs & Co. 15 to 2 in
third
a
out into the test
In the "Longs" division
future silver
will
way
a
con¬
three-
-Ue tfbr; first place developed
between
DeCoppett
&
Doremus
and Hirsch & Co., both with :two
wins and no defeats, and the Se¬
curity Traders of New York with
a single victory and no losses. The
batting; power Of the DeCoppett
&
DoremiisHrieug thbVeftvhelm-
ing Orvis Bros. 24 to 6 and Merrill
Lynch, pierce, Fenner & Beanq
9 to 3 and the pitching and de¬
fensive strength of the Hirsch &
Co. team in shutting out Harris,
Upham & Co. 3 to O and Merrill
Lynch, Pierce, Fenner & Beane
16 to 0, featured the week's com-*
The Security Traders of
Harris, Upham &
petition.
New York beat
Co. 7 to 5.
\
acquisition. The rest of the Mint's
acquisition will then be available
ators
Tydings, Walsh, Bridges, higher
League Standings
price
is
illegal,
with for sale by the Treasury to indus¬
Wherry and Saltonstall, and the the exception of melting dol¬
Saturday, May 25
trial
consumers,
but this being
following representing users of lar coins. It would also be per¬
"SHORTS" DIVISION
'
only a fraction of that produced
silver in industry: Messrs, Mcfectly
legal to melt for their
Pet.
I® ■
' rf:■ / % j '
Cheshey,Otis; MiUspaugh i and smaller silver content fractional theIndustrial demand will be mat; N. T./Guirt* Exchange
1.000
1.000
Baker.
FitV.
/O
\ silver coins like the dime. In that
asnompardd with the «ther ineth- Carlisle f& Jacquelin
1
1
; .500
"The
particular occasion was case, the user would be paying od. It is easy to see which course C. M.i^Loeb, Rhoades—
.500
,'-'• 1
1
.000
the action of the Senate Banking $1.38 an oz. for the silver.
0
2
In will have the most appeal for N. V. S. E. Bond Brokers—
.000
Goldman, Sachs —0
2
and Currency Committee in vot¬ other words, under the law and American silver interests.
"LONGS" DIVISION
ing to report favorably on H.R. OPA regulations, you may pay for
Once the present Congressional
! '
I
i
4590 as amended to correspond silver 71.110—if you can get the silver crisis is
W.W pet.
past and the pros¬
2
0
1.000
with S. 2206. The latter was the metal—$1.29 and $1.38.
But you pect of any further Congressional DeCoppett & Doremus
Hirsch «11.000
same as the proposed amendment
may not pay
800, 900, or any increase in the price of silver is Security Traders ot N,.' T>-», 1' ,0 1.000
to the Treasury and Post Office other in-between price.
' 0 X
.000
V
dispelled, such silver as may now Orvis Bros-i/
Harris, Upham
0
2 : .000
Appropriation Bill, which amend¬
Abroad, of course, there are no be hoarded for the pending price Merrill
Lynch
0 2
.000
ment was recently adopted by the such absurdities.
A South Amer¬ advance will be released to the
sub-committee of the Appropria¬ ican country recently bought sil¬ market or for silver coinage. This
tion Committee.
ver at between 800 and 900 (US)
will tend to ease the present in¬ Dr.
Mudge Made Chairmait
"There was a difference of opin¬ an o.z for coinage. The USSR has dustrial stringency.
NY Chap, of Metals Society
ion as to whether it would be bet¬ been selling substantial quantities
Dr. William A. Mudge, Assistant
ter to press for the passage of the of silver in London at well above
Director of the Technical Service,
appropriation bill as amended, or the OPA price, the writer is in¬
Senator,
Sen¬
or
silver
sell
bullion
at
buy
any
•
-
.
weeks ago, as
a
substitute for
the
rider
the
Treasury
to
Departm e nt
Abe
appropriation
Murdock
bill.
Some
Democrats and
Republicans
the
Appropria¬
tions subcommitteevpf the Senate;
as
well
as
on
some
members of the
full
committee, very vigorously
objected to legislating by means
of
at
a
a
rider to the Treasury bill. So
recent
meeting of Western
Senators I suggested that the best
course
from
the
parliamentary
—
Hirsch & Go, Offer Stk.
to
try
4590
as
for
the passage of
amended.
After
H. R.
careful
consideration, it was decided that
standpoint was. to take the sub¬ the former course held
greater
committee compromise on silver
promise of success, and therefore
.and introduce it as a separate bill.
to press for the favorable report
"This I did, and when the Bank¬ of
the
appropriation
bill
as
ing and Currency Committee met amended. Of course, this might
I
called
the
whole
situation
their attention and suggested
they take immediate action,
bill, which contained the
to
that
be further amended
of the Senate."
on
formed.
Scandinavian
industrial
zilian
users
and
Bra¬
have been
buying silver in outside markets
at the equivalent of more than the
OPA price ceiling.
On the other
of Havana
Lithograph's
19,419 shares
of 6% cumulative convertible pre¬
hand, the Mexican and Peruvian ferred stock/ ($25 ; par yaluo): and
Governments buy up the silver 197,000 shares of common stock
production of their own countries (100 par value) of Compania Litografica
De
La
Habana
S.A.,
the floor at the equivalent of (US) 71.110.
■
on my
agree¬
~
The
been
Confusion Worse Confounded
Mexican
Government
has
buying half of Mexico's new
Public offering of
(Havana Lithographing Company)
was made on May 28 by a banking
group
headed
bv Hirsch
& Co.
production.
Also, it 'has
The preferred stock was priced
ment of both silver Senators and
( Obviously it is difficult for the been offering, without too much
at $25.50 per share and the com¬
Senator Green when the matter
public to keep its eye on the sil¬ success, a 20% premium in paper
was
mon at $5.50 per share.
before
the
subcommittee. ver ball. As
noted, a compromise pesos for silver pesos.
Until the
Most members
of the Banking was announced
The company was incorporated
several weeks ago silver price outlook is stabilized,
and
Currency Committee
were
by both Senator Pat McCarran of Mexico will not re-issue silver under Cuban laws in 1907 as a
fully informed as to the rather Nevada and Senator Green. This coins.
Meanwhile, the Bank of consolidation of the three leading
dire situation of the silver-fabri¬
was
the appropriations subcom¬ Mexico is holding for recoinage Cuban
lithographing companies.
cating I industry, owing to
the mittee compromise. The subcom¬ or other
disposal a large amount The principal business of the com¬
shortage of silver, and the com¬ mittee voted on the matter. The
of
silver
over
and
above that pany consits of stone and photo
mittee agreed without objection
compromise is a matter of record. needed to fulfill the legal reserve lithographing,
including color
to my proposal. I moved to strike Yet since then
there have been requirements against notes
and work, printing and binding and
out all but the enacting clause of from both sides
assertions that the deposits.
Since gold and foreign steel die and copper plate em¬
H.R. 4590 and substitute the silver agreement has been
broken by exchange, of which the Bank has bossing. The company estimates
the other. The silver users' emer¬
compromise. I was instructed to
substantial holdings as a result of that-'.it does approximately 70%
file a report for the committee.
gency committee
issued a press the
prosperity the war brought to to 80% of the entire lithographing
"If the Senate passes the bill, it release stating that
the mining Mexico, are also counted as part»work in Cuba,
will go immediately to confer- Senators had reneged on the com¬ of the
Bank's reserves, it would
Of the
total offering, 35,000
,
mine
„-r_-
,
Company's
of International Nickel
Development
vision,
elected
York
'
Chairman
of
the
Chapter of
has
been
the
New York,
at
Di¬
Research
and
New
American
Society for Metals, to serve during
the
coming year, 1946-47. During
the past year Dr.
Chairman
of
Mudge has been
the
Technical
Pro¬
gramCommittee.^/Returning, from
World War I
as
an
infantry cap¬
tain, he entered Columbia Univer¬
sity foi post-graduate *work,
his Ph.D. in
received
after
Dr.
Mudge
and
1920. Soon
became associ¬
ated with the Nickel Company as
Superintendent and
Refinery
Metallurgist
Works.
He
at
was
the
Huntington
apointed
,
to
his
April of 1940.
Mudge is the author of many
present position in
Dr.
technical
nirkpl
papers
allnvs.
on
nickel
^
and
V
i
.Volume
163
J Number 4494':,
THE COMMERCIAL & FINANCIAL CHRONICLE
„,
,
Economic and Social Council Moves Into High Gear
.(Continued from
page
i
2910)
■ - •
-
j ;
Incide
;
suggest should be undertaken in the
immediate future, and their relations with other agencies and or¬
ganizations. Arrangements must be made to take care of the cessa¬
tion of UNRRA which will
the
on
nomic and Social Commission.
Britain's
Minister
of the Labor
about
to
As
Mr.
This
become
Mr. Noel-Baker is
to
Laski
Harold
as
expressed in
pair of
a
basic
press
for
reason
'
'
was
In truth the Council's power to
1 Labor Brain-truster..
Noel-Baker's
United
exemplified here Monday last in the relatively* in¬
discussion, when the proposal was brought
up for' all the member nations to institute health insurance systems
m
their own countries.
Domestic action along these lines has al¬
ready been effectively blocked in our Congress by the unwillingness
to go along in legislating the socialization of medicine and doctors.
of
successor
a
field of health
nocuous
State, and Vice-Chairman
Party; in which latter capacity he is
Britain's No.
Russia,
'
Stephenson As Senior
Agent of Canada Bank
C.
:
J.
Canadian
Stephenson,
in
bankers
of
dean
prod
interviews,
hope is his
offending
an
nation's
implement resides in its ability to
conscience through the world's public
judgment; that
will be succeeded by W. T. Alex¬
ander, co-agent of the New Yorkoffice.
Mr.
/
Stephenson has
entire
career
with
his
spent
Canadian
the
Bank of
Commerce, having joined
Parkhill, Ontario branch fan
1901.
After
serving in various
Canadian branches, he was trans¬
ferred to the New York agency in
1910, becoming ; senior agent in
the
UN; already has accomplished
The United States Advisers
Nations in its equiv¬
1926.
Mr. Winant, functioning as the United States
early stages.
He emphasizes the aims in
representative to
vMr. Alexander also has a long
food, health, and disease; the "horizons" are the Economic and Social Council, will be assisted by a full-fledged
extremely- vwide in - the latter-r-coordinated re¬ Relegation, composed of; technicians from nine, departments and career with the Canadian bank,
search being Widely ; jheeded, without political agencies of the Federal Government. This
group, whose composition entering the Winnipeg branch in
obstructions, in fields like malaria and worm will change from time to time in correlation with the problems under 1909. In 1923 he was transferred
to the head office in Toronto, and
diseases.
Mr. Baker is, in fact, half-seriously
discussion, is at present constituted as follows; in
1929 was made head of the
From the Department of State: Louis K.
broaching the suggestion that there be an 11th
Hyde, Walter Kotschnig,
commandment added, by way of. amending the Otis Muliken^ Mrs.. Edith Penrose, Ernest F.
Penrose, Durward' V* Havana, Cuba branch. He was ap¬
Philip J. Noel-Baker
Bible, to read: "Thou shalt not harbor germs."
Sandifer, Leroy Stinebower, Maurine Mulliner-^-Sp'ecial Assistant to pointed a / superintendent in the
V ft.'8 Optimistic
head office in 1944, and came to
One basic advantage possessed by the Eco¬ Mr. Wjnant.
Delegate to the
New York several months ago to
nomic and Social, over the Security, Council* in
From the Treasury Department; Andrew Kamareck.
Economic Council
Mr. Baker's opinion is the former's voting by
From the Department of Commerce: Arthur Paul, Assistant Sec¬ assume 'his present position.
majority decision. Hence, at least On that level, retary and Director of the Office of
W. D. Dickinson of the Bank's
International Trade; Lewis
UN can reach decisions—or
rather conclusions, because it has no Lorwiri, James McCamy.
head office in Toronto has been
.
power of enforcement—-without the veto
From the Department of Agriculture: Charles C. Brannan, As¬ appointed Second agent in New
prohibition.
pne of the important matters to be pushed by the British Dele¬ sistant Secretary; Robert S. Schweiiger.
York.
; * .
gation within the next fortnight is the
From the Department of Labor: John W. Gibson, Special Assist¬
functioning of the Interna¬
The New York, agency of 'the
tional Organization of
Transport; ; on the expressed theory that ant, Office of the Secretary.
Bank was opened in 1872.
"transport is the key to political, econpmic, and social stabilization." I
From the^ Justice Department: Irving Hill.
/
Because of the collapse of the Danube River
From the Federal Security Agency: Arthur J. Altmeyer, Chair¬
Commission,' hundreds
of barges which
normally supply the Danube countries with food, man, Social Security Board; Perry Rosenfield, T. J. Wooster, Jr.
From the Executive Office of. the j President, Bureau of the
now^remain graiii-lessly tied to their docks. This situation must be
repaired before the July grain harvests.
Budget; Donald Stone, Assistant. Director; Alvin S.. Rosenman.
more
than did the League of
alent
.
.
,
,
>
Ohio Public Service
The
building-up of the world's devastated
where the: Briton feels the
how planned relief
on an
Council
enormous
can
scale
areas
can
results.
But
be harmonized with the
American-sponsored policies supporting free international trade, is
quite difficult to fathom.
Work,of the Refugee and Displaced Persons Committee, particu?
.
Tariff
is another field
accomplish
larly if it is brought into the UN through the Assembly, is another
useful agency, in the minds of the British.
This matter is extremely
important to settle when UNBRA, terminates.
Commission:
Loyle
Morrison,
Chief
of
the
Securities Offered
Commerce
Division.
J
Mellon
In addition to the foregoing, Mr. Winant will be assisted by the
staff of the United States delegation.
permanent
heads
an
which
public
L Security Council Reinvigorated by Dr. Evatt's Arrival
on
Securities
Corporation
underwriting ,• group
May
29 offered to >the
$32,000,000
of
Ohio
The
Public Service Co. first mortgage
23/4 % bonds, due 1976, and 156,300
The arrival on the scene of Dr. H. V. Evatt, Australia's hard¬
shares of that company's 3.90%
hitting Minister of tForeign ,Affairs; promises, to push the Security cumulative preferred stock
($100
J
;f
Council along toward some ctoar-cut political de- par)* 'The bonds are priced mt
- cisions
and action.
As the protagonist of the
101 %
and accrued Interest, $*>
small
nations
and
hence
of
the
relatively yield 2,70 % to ma urity, and/the
disinterested segment of UN, he will again fulfill
preferred stock at $102,625 per
the role of expounder of logic as he so
vigor¬ share and accrued dividends.
ously and volubly did at San Francisco and
The securities are'being sold 'tot
London.
connection with a comprehensive
In taking over here as chairman of the
Com¬
mittee^ on Spain, Jie has already, greatly accel¬ plan for refinancing the company
and its two subsidiaries, The Ma¬
erated the giving of the controversial evidence
-
The Problem of Commission Membership
.
As .brought out by Mrs. Roosevelt
yesterday in verbally report¬
ing for her Hmnan Rights Commission: in the selection of the
per¬
manent commission
members, there is the conflict between choosing
them on the basis of national
origin on the one hand, and expert
ability on the other. As a compromise she recommends that each
.
•
.
country in UN should nominate two
total
people, which? would give
a
panel of 102.
From this group the Council itself shall select
commissions, on the. basis of expertness combined with geographi¬
cal distribution.
The Social Commission.
.similarly suggests a combination of na¬
tional and .expert,qualifications.<.. > *«r
The Economic and Employment: 'Commission is
the
advancing the
proposal, as conceived by Mr. Lubin, that two-thirds of the mem¬
bership should be designated by countries, and one-third by ex¬
pertness.
Final
determination
of
this
problem
will
result
in
divergent
procedure by the. individual commissions. Some, like Transport and
Communications, will logically be heavily weighted toward Govern¬
ment
representation; while others, like the Statistical Commission*
more heavily on experts. :And ih
all eases it is evident that
will lean
the Russians will choose to function
their
own
country, and neither
Mr.
as
the national representatives of
world citizens
as
nor
experts.
Winant—International New Dealer
delegate is John G. Winant, sturdy Vermonter,
The American
former American member of the International Labor
cently retired Ambassador to Great Britain.
,;
Office, and
re¬
Economically, the emphasis in his thinking"
seems
World
to be centered
War I
factors of
duction.
more
on
the
alleged
attention
not
given to
purchasing
power, rather than to pro¬
In other words, ithe American
Delegation
apparently is going to push for the purchasing
power theory on an international scale. The con¬
flict between centralized direction and
planning
along
these lines, and the
aims
of
the
The
same
the
new
to
-
Bretton
on
which Mr. Winant likewise pins very great
hopes.
One of the major problems, admitted
by Mr,
Labor
John
U.
S.
G.
Winant
Delegate
Economic Council
^
tion may possible not exceed advisory
latter organizations will, in any
capacity in importance. The
event, sit in without the power to
One
"■■V-.'.V-
great
difficulty regarding these agencies is found in the
fact that membership in the United Nations does not
necessarily co-
extent, that it will actually
now
too late to follow the former .Australian pro¬
the
Hassien Ala.
And
accompanying walkout technique, Dr. Evatt is expected to begin his
over again.
Thereon -will han?
not only the personal glory of the
Australian, but the whole future of
San Francisco Battle of the Veto all
as
River
Power, Inc. Under the plan
will
acquire the
physical properties; and other as¬
sets of the ■ subsidiaries,
the
well.
company
.
The company will use the pro¬
ceeds from the sale of the securi¬
ties, together with $6,000,000 re¬
from the sale of 10-year
serial notes (offered by a group
headed by Halsey, Stuart & Co.,
Inc.) for the redemp ibn at 104% %
ceived
of
$28,900,000
mortgage
of first
4%
bonds, due 1962; the redemp¬
tion at 102% of $320,000 of 4%
notes, due serially to August, 1947;
of $614,of 2%%
promissory not-'s,
due serially i to January, 1943; 4he/
the redemption at 101%
000
payment of $6,836,441 of 4% prom¬
issory notes, dated May, 1942, of
Ohio
River Power,
Inc., and, for
the; redemption of $15,161,400 par
value of. first preferred
Public
Service,
stated value' of
and
stock pf
$3,230,6DQ
preferred
a
stock of-
The Marion-Reserve Power Co.
■uy
-A-..
.
,.*. v.
i,---
.
.
••
•
,
v.
John SnowdoaJoins
First N.J. Securities Go.
ASBURY PARK, N. J.—Martin
P.
Rubin, head of the First New
'
strictly relevant to the Soviet-Iran situation is the Veto
question, whose fundamental importance was recognized and whose
prerogative was so ably fought by Dr. Evatt at San Francisco.
With
its
repeated
use
again
threatened
by
Mr.
Gromyko
in
both
the Iran and Spanish situations, and the added
complication of hit
UN
rion-Reserve Power Co. and Ohio
various
contradictory and back-tracking moves vis-a-vis
the Council made by the Iranian
Government, and her. Ambassador
to
ether non-governmental bodies like the World Trade Union
Federa¬
vote.
an
its
reporting deadline of May 31.
The
Security Council itself will probably meet on
June 6 to take. action on the
report, and decide once and for all
whether Franco does or does not
pose a threat tp world peace.
Subsequently Dr. Evatt, as the Australian representative on the
Security Council, will try to "do a Jimmie Byrnes" in aggressively
Krincfir>g to a head the nasty Iranian
situation* and: particularly the
significance of the Gromyko performances. The course of events,
unfortunately enough, has served to substantiate the original and con¬
tinuing demands of the Australian delegation, for a thorough investiga¬
tion of what was actually going oil iriPersia,
The present /ait
accompli, effected by the Soviet while the
Council was lost in debate,
appears to have arisen from the fact that
into
Of¬
fice, Food and Agriculture, the Bretton Woods
agencies—and will have autonomy and a large
degree of independence from the Council; while
meet
admittance to that Province by the Russian authorities on the
spot.
And in addition to the Russian machinations, a committee cou,ld delve
Winant, is the arrangement with respec.t to the"
specialized agencies, some of which are inter¬
International
like the Lytton Commission in the
posals for sending into Iran a UN investigating commission must be
decided promptly by the Council. Objections to this are that such
a move would
surely run into another. Russian veto and Council
row; and that such a commission probably would be-denied physical
conflict appears to exist with
regard to
International Trade
governmental—like the
process
Committee to such
Herbert Vere Evatt
Whether it is
reconcile.
Organization,
tory
| League of Nation's annals. He has speeded up
the
dragging
proceedings
of
the
Spanish
longer interfering, beeause there remains no necessity for her so
doing. This looks like repetition Of the methods of political infiltra¬
tion by a great Power, which helped to wreck the
League of Nations.
Woods organization, particularly the International
Fund, is going to be most difficult
by sharply cutting short irrelevancies. As he says,
above, all
sought to prevent1 the Franco
proceedings from developing into another dila¬
he
Premier Ghavam has been under heavy pressure from
Moscow, ap¬
plied by its Ambassador, Mr. Sadchokov, who was transferred thence
from Yugoslavia for that purpose. It also
appears that midst all the
Council confusion and Soviet
obstruction, a Soviet-controlled autonomus state has been established in
Azerbaijan, and that Russia is no
error that after
was
i
-
•
Jersey
tison
Securities
Co.,
603
Mal-
Avenue, has announced that
John D. Snowdon has become
sociated with the firm.
Mr.
Snowdon
was
as¬
•
■
with
-
the
Smith Barney & Co. from 1924 to
1941, and with Blyth & Co.,, Inc..
from 1941 until 1942.
-
New York;
announced today that he will re¬
tire as Senior Agent of the Cana-
out, this insistence on non-interference
sovereignty cannot be entirely blamed on the Soviet Union. For any dian Bank of Commerce, effective
decisions by the Council involving American action, must await the
May 31, after more than thirty-five
process of enabling legislation by our Congress.
years of service in New York. He
the Eco¬
on.
Thus
As Mr. Winaiui points
with national rights and
in the per¬
scene
agencies.
lack of executive power and implementation.
The Optimistic Mr. Baker
representative
in the
t
And running
through their plans is the tying in of operations with the best parts
of the League of Nations'
experiences in the financial, general eco¬
nomic, and social fields.
A great "gale" of optimism has arrived
son of. Philip; J.
Noel-Baker,, Britain's
membership
The fundamental,, and inescapable weakness, underlying all the
aims and functions of the social and economic activities of UN, is the
the end of this year.
occur
with
hkimiw to Sisggeei
Nations participant,: is not a member of ILO or the Aviation body,
while Ireland and Spain (non-members of UN) are.
;V
Regarding the work which they
2957
;
.'
;;
.•
■>
Thursday, May 30, 1946
THE COMMERCIAL$
2953
other questions relating
patents.
-v'::vv
to
prosperity. The
well-being of the people of all
nations can be advanced through
a full flow of trade which enables
edch country to maintain higher
levels of production and better
....
Government
Republic on
of the French
Commercial Pol¬
icy and Related Matters.
program without
discrimination
The Government of the United as among foreign sources of sup¬
States and the provisional Gov¬ ply as soon A? France possesses,
ernment of the French Republic, or is able to earn, sufficient free
.These bene¬ having had comprehensive discus¬
fits of world trade can be realized sions on commercial policy and
only as the markets of the world related matters, find themselves
in full agreement on the general
y are Opened to all countries- op fair,
arid equal. terms.
The two gov? principles which they desire ta see
ernments are determined to work established to achieve the libera¬
together in securing general..in¬ tion of international trade* which
ternational
acceptance
of
the th^y deem, to be essential to. thq
world-trade
proposals fr of
the realization of world-wide pros¬
United States to be considered by perity and lasting pe£ce.
a 'conference
of the United NaThe
French
Government has
made known to the United States
tionfc,'
'
-•
•
The reconstruction and modern¬ Government the measures which
ization of the French economy will it has taken and intends to take
facilitate the integration of Europe to make possible the attainment
in the world economy and enable of this, common
objectivq. The
France to resume her place as a French Government has also made
great producing and trading na- known to the United States Gov¬
; tidni
The French delegation hps ernment its plan for the recon¬
presented a program for recon-? struction and modernization of
structing arid modernizingthe the French economy, In accord¬
ecohomy of France. The immedi¬ ance with, the letters exchanged
ate objective is to, restore; French on Nov. 8, 1945, the two govern¬
production to the* pre-war level; ments have examined this plan
the: ultimate objective is to ex¬ and have agreed that the attain¬
pand French production to higher ment of its objectives should make
leVels 1 commensurate
with the possible
full
participation
by
tectmiqal progress of the past two France in the co-op e r a t i v e
of
an
expanding
decades.
One requisite for the achievement
fulfillment of this program is an world economy.
adequate and assured supply of
The
two
governments
have
coal, not only from increased studied the problems involved in
French production, but also from the
construction
of
a
general
imports1 of
German coal. The framework for world trade and
standards of living.
;
Government
States
United
will
have also examined a number
of
continue to. assist France in secure
foreign exchange so that it is no
longer necessary for her to make
two
and trade presented by the French
governments summarizies the
understandings reached in these
delegation is necessary to the full discussions.
effective participation of France
1
in: the world economy. In further¬
The two governments are in
ance of the efforts of the French
complete, agreement, at all im¬
people to this end, the United
portant ; ppintsj on the principles
States has agreed to the extension
expressed in the "proposals for
of additional credits to France.
consideration by an ^international
-At the end of 194$ the; Exports
conference on trade and employ¬
Import Bank made a loan / of
ment" submitted to the French
$550,000,000 to France. The board
Government by the Government
of directors of the Export-Import
oif the United States. They have
have
approved
now
a new
therefore resolved to continue dis¬
line, of credit of $650,000,000. This,
cussions. between themselves and
action has been taken pending the
with other like-minded countries
time when the International Bank;
in. order to give effect to. these
-fori Reconstruction and Develop¬
principles in the chmter of the
ment will be in full operation,,
p^0pose4 international trade or¬
.The
two
governments
have
reached complete agreement for
the final 'settlement "of, ail lend-¬
lease and reciprocal aid, including
military and civilian supplies fur¬
nished by each government to the
other. They have also agreed on
the acquisition of United States
f.
Army and Navy surplus property
located
French
this
and
France
in
overseas
certain
territories. Under
to
trade and for the removal of
discriminatory
since the end of the war.
'Discussions
taking place for
an
additional credit, subject to.
thq provisions of the merchantare
ship sales act of 1946, whereby
France will acquire approximately
750.000
tons
merchant
of
ship¬
ping owned bv the Government of
the. United States.
9The
two
governments
believe
n
The ' French
Which
have
been
now
economy
and
concluded
France in
reconstruct¬
ing and modernizing the French
are
substantial
a
step towards the achievement of
the international economic coop¬
the
advised
Government
United
ernment of the
States
has
Gov¬
following policies:
(a) A new French tariff is be¬
ing prepared which will contain
ad valorem duties only and which
will
not
increase
the
degree! of
protection over the level which
existed prior to the war. This new
tariff will serve as the level from
which reciprocal reductions will
be negotiated in the forthcoming
doned
its
policy of pro¬
producers
with
prewar
French
import quotas.
(c) The French Government has
reiterated
that
it
has abandoned
rangements.
-
The
f
'
two
governments
have
reached •: a ; mutually satisfactory
understanding on the return to
private channels of trade between
France
The
United
States.
Government
has al¬
the
and
French
ready restored to private chan¬
nels a large part of the import
trade of France and its colonies,
sure
a
full
flow
of
commerce
to
111
,
the benefit of
countries.
the
.
peoples of all
-
Declaration by the Govern¬
of the United States of
America and the Provisional
ment
The
French
ment in the United States
limited
to
import program, but
Temporarily,
a
merit?) until the difficulties of
loading, shipment and transport of
essential supplies and their; dis¬
tribution in France are overcome
governmental procurement as in¬
dicated above.
It will limit its
purchases to the satisfaction of
essential civilian requirements; it
Gpyerririient
JAMES F.
the
of
government from
*
antici¬
1
'
i
j
r
I
soon as.
possible.
States of America.
■r
that
5.
the
terms
.
| For
the
Provisional Govern¬
ment of the French Republic:
LEON
BLUM,
Extraordinary
and
Ambassador
lie of France.
(
i
and when requested by
States
Government
-
prior to Jan. 1, >
1950, the French Government will
transfer to the United States Gov-
5
property to be mu- •;
tually agreed upon and not to exceed a total dollar value of $15,- .•
ernment real
In addition, the French I
provide, at the
request of the United States Gov* *
ernment, francs representing en
agreed dollar value not in ex- .
cess of $10,000,000.
Any francs so transferred will be furnished at •
Government will
Memorandum
of
Understanding Between the Govern-
I ment of the United States of
-
As
United
Plenipotentiary of the Repub- 000,000.
|
!
territories. '
from time to time
America and the Provisional
} Government
j Republic
of
the
Regarding,
French
Settle*.
ment
.'.j erty, and Claims.
11. The Government of the Unit¬
ed States of America and the pro¬
Government ^ of
the
French Republic have' reached an
visional
qnderstanding for the final settle¬
ment of lend-lease arid
two
extent
forces in France; and French over*
seas
reciprocal
governments
have
aid, and of the French obligation
agreed that, important benefits
to th^ United; States; Government
would accrue to both countries
under the military- supply pro¬
from a substantial expansion of
gram (Plan A); the acquisition by
French exports
to the United
the French Government of certain
States. They have discussed cer¬
United' States Army and Navy
tain United States laws and regu¬
surplus property, including in¬
lations, which, in the opinion of
stallations, located in France and
the French Government, % tend to
certain "French overseas territor¬
hamper unduly the importation of
ies, an4 for the final settlement of
French products into the United
other financial claims of each gov¬
States, Special attention has been
ernment against the other arising,
given to, trade: mark and copy¬ out of
the conduct of the war. In
right legislation, the use of geo¬
arriving at this understanding
graphic names related: to particu¬ both
governments have recognized
lar products, price control of im¬
the considerations expressed in
ported goods and valuation of im¬
Article VII of their preliminary
ported goods for the assessment of
The
the
payment
provided ,v in this ;
paragraph 3 aire inconsistent with r
those contained in previous agrees ••
ments, the provisions of this para- v
graph shall prevail.
4. The two governments have
agreed upon arrangements and"
procedures for the settlement of.
past and future troop pay and prq- '
BYRNES,
for Lend-Lease, Recipwill make the maximum practi¬
;! rocai Aid* Surplus War Propcable use of normal trade chan¬
nels; it will pursue methods con¬
sistent with commercial practices
annd it will cease operations as
To
Secretary of State of the United the
■
established in conformity with procedures of the >.
international monetary fund, or
if no such rate exists; at the rate T
usecj in OfficialFrench Govern- ^
menttransactions at the time of ^
such transfer* The United States ;
Government will use francs ^so 0
transferred exclusively to acquire
or
improve real property fdf ;
United States Government use or ;
to carry out educational programs j
agreed between; the two govern* ;;
the exchange rate
ments.
made in" accordance ;,
paragraph 5 will be
Credited first to interest then due
and then to instalments of prin- ;;
cipal in direct order bf maturitir* '
6. The two governments haiv^ j
also agreed upon the following:
|
Transfers
with
this
(A) All claims and financial ofe :
ligations between the two gov¬
ernments arising out of the acqqi-:'
sition, operation, disposition
or >
loss of French vessels and cargoes :
of such vessels while under United *
agreement of Feb. 28, 1945, on States control will be settled by ?
customs duties; The various ageni
the principles applying to mutual the United States ;for $17,500,QQO! ;
cies of the United States Govern¬
aid,, as well as the benefits ac¬ in accordance with! the provisions • ;
ment which are concerned with
cruing to each from the contribu¬ of an agreement relating to the ;
these matters have agreed to give
tions of both to the defeat of their purchase by Franc® of up to -75
careful and sympathetic considt
Liberty ships.
......,-s.
eration to the
common enemies. In the light of
yiews oi the* French the foregoing, both governments
Government, and to. - study the
possibility of altering their ad¬
ministrative procedures or recom¬
mending to the Congress the re¬
vision of existing legislation.
.
VI
The
governments,. have
two
agreed,
subject
to
participation
by other impor¬
tant industrial nations, each to
license freely and without royalty
in the program
to the. nationals
of: the other, on
the full possession
government, reserving
only those rights which have al¬
ready been granted with respect
to such patents.
The two govern¬
ments believe
that the general
of
either
achievement
economy.
of
expanding world
accordance
with
they have agreed,
future time,
jointly to
In
i
(B) Both governments express
intq a
their intention of entering
amounts now agreed upon and in
(C) As part of the general set ¬
tlement, the French government :
has agreed to process and pay alt 7
that no
be sought
-
maritime-claims agreement,, pro*- ?
viding for the mutual waiver of
intergovernmental claims arising >
: 2. The net amount due from the
French Government to the United from maritime accidents, and for /,
States Government for the fore¬ the handling by each Government •;
going, including all indebtedness of claims asserted in its courts by •
arising from provisions of the its nationals against the other
lend-lease
and
reciprocal
aid Government and based on mari ¬
agreements of Feb. 28, 1945, is time accidents occurring prior tq *
$720,000,000, made up in part of Nov. 1, 1945.
part of estimated amounts sub¬
ject to revision. The latter, for
which the best available figures
.
been
have
used
pending;-their
final determination by agreed ac¬
counting procedures, represent in
the main transfers after Sept. 1,
1945.
13. The French government will
pay
on the net
the United States
interest
due to
from
ment
terest
some
; -
further- benefits
Will
as consideration
for lend-lease and reciprocal aid.
agree
at
are necessary
.
curement of United States armed
the
For
v
only
they
con¬
modern and compre¬
United States of America:
part of French
imports wiil be handled by asso¬
ciations of. private traders (group-
a
1946.
rate
as
coun¬
Done at Washington, in dupli¬
cate, in the English and French
languages this 28th day of May,
corporations and agencies.
For
the time being, Government pro¬
curement will also be continued
for a restricted list of items, such
as short-supply foodstuffs,
steel,
lumber, tires and certain medical
supplies.
these objectives
long
two
commerce
that it will maintain such controls
so
their
treaty of^establishment^
and navigation;
hensive
will be
equipment for public
tribute substantially to the
an
between
clusion of
procure¬
made clear that it must maintain
import controls within the frame¬
of
provide a sound
framework for the expansion of
mutually beneficial economic, re¬
lations
to
possible looking toward the
Government
French
adoption of this policy will con¬
work
order
the Government.
has
Government
VIII
In
]
•
?
of
facilitate
;
refer¬
with
tries, the Governments of France
tablishing a world trading and
monetary system which will as¬
exports,
nationals
to war damages to property
in the United States.
ence
>
due in that year. Nothing • herein
shall be construed to prevent the
arid the United States have agreed
to begin negotiations as soon as
have come into
valuation of the franc in order to
compensation equal to that pay¬
to French nationals having
the same types and extent of
losses.
The United States *Gov«
able
:
is made, and the remainder of the
instalment shall be the principal
and, will continue to curtail the
foreign procurement activities of
compelled
to use provisionally
during the period prior to. the re¬
of
•
suffered "damage, to their consist of the ;full amount of the
properties
in
France
through interest due for the year preceding
causes
originating in the war, the July 1 on which the payment
riod.
a
peaceful
and
prosperous
world. They welcome the support
of all of the United Nations in es¬
prerequisite
^
instalments. Each instalment shall
have
American
IV
:
conditions of reciprocity, all for¬
mer German-owned patents which
the
1,
pating the payment of any of such
instalments, or of any part thereof.; If, by agreement of both gov¬
ernments, it is determined that
because of extraordinary and adverse economic conditions
arising
during the course of payment the
payment of any instalment would
not be in the joint interest of both
governments, .payments may be
postponed for an agreed upon pe-
price equalization (perequa¬
tion)
procedure
which it was
is
July
£
paid in thirty (30) equal annual
French
the
eration which
accord to American nationals who
be
ernment has informed the French
(b) France has definitely aban¬
tecting
Beginning ion
1951,^interest and principal will
will
Government
Government that equality of treat¬
ment is accorded, to French and
multilateral conference.
that the results of the discussions
will help
arrangements
greatly to the
of the world conference.
success
credits of $720,—
been provided for
a^id for goods supplied to France
"
contribute
would
agreement,
000,000 have
the purchase of surplus property
•
ganization, The two. governments
are of the opinion that the ■ prion
conclusion of agreements among
the major trading nations of the
world fot the,' substanti al reduc¬
tion of tqriffs and other barriers
vii
The French
;
purchases within the limits
her
,
Bank
on the first day of July of
each of the years 1947 to 1950, in¬
of bilateral trade and financial ar?
specific questions relating to com¬
The French Supply Council in
ing an adequate supply of coal mercial policy and other, matters
the United States will continue
f rpm. Germany.
which are of interest to thenw
In'the opinion of the American selves and to other countries. The to operate on a reduced scale, en¬
representatives, attainment of the following joint statement by the gaging principally in the liquida¬
tion of outstanding contracts and
objectives of increased production
-
nually
clusive.
achieve in
(Continued from page 2920) /
world peace and
to German
safeguard the equilibrium of its
of
payments
and y to
an orderly way its plan
of reconstruction and moderniza¬
tion. The. French Government will
administer the issuance of import
licenses under the French import
French Credit Agreement
;
Consider
balance
July
1,
1946,
amount
govern¬
at the
Such in¬
payments will be made an¬
of 2%
per
annum.
.
unpaid claims of French residents
against the United States Gov-xv.
ernment arising out of the use or ;
infringement in war production of ;
patent rights held by them, out of ; ,
the requisitioning by the United ;
States Goveriment for use in the
|
war
program
of any property in- > S
French residents, '
omiss'ons prior
1946, in France or /
terest owned by
and out of
to1 July
French
1,
acts or
overseas
territories
of
Volume 163
numbers
Number 4494
oU the.. United
:
THE
attached to
such forces.
claims of one government against
the.' other. All
other
financial
claims
of
'against
the
:*
government
other, except where
has
heretofore / been
"
liability
-
either
•
(Continued from page 2921)
ize how,, different is the position
of a ^country where lifeblood is
in foreign trade.
The key to the
.Vvhole British problem is that here
is a country which cannot live
largely from its own resources, a
'country which must import or
die.
The "British are ; handling'
•
arose out of
•
cal
or
ito
,*
aidy
lend-lease
theirs domestic
reconversion : well
nanced the war,-our
national debt ices
amounts to
nearly 275 billion dol¬
people possess a mass
of excessive purchasing power. The
great shortage of goods relative to
this purchasing power has created
dangerous inflationary pressures
in our economy. The expenditure
In our iharkets of dollars provided
under this loan would admittedly
add to
these pressures at this
time. However, the added pres¬
sures would not be as heavy as
lars and
our
enough but let's look; at the probt
lem they are up against in get¬
ting back to a pay-as-you-go basis
internationally.
f they might seem at first sight. The
Britain's export trade, the main risks which remain are, in my
dr'reciprb-
(2) otherwise arose on
after >Sept. 3,. 1939, and prior
Sept. 2, 1945, out of or inci¬
or
.
dental to the conduct of the war,
mot otherwise dealt with in this
sustain
can we
conditions
world
the
in
which it can be
this proposed
repayment of
the principal and for a moderate
rate of interest, but at this junc¬
for
.provides for
our
affairs at home
we
are
certainly not looking for loans
just for the sake of a financial re¬
turn. On the contrary no foreign
loan should {he made at this time
,
which does not reasonably prom¬
ise lasting
tions
benefits and compensa¬
the
to
outweighing
United
States
financial
the
the
by
would flow to the British
Latin
to
{America,
to
loan
far
con¬
,
Empire,
Western
Europe—to all of the countries re^
ceiving net payments from Britain.
The loan to Britain would
become
this
in
to
assistance
a
way
of
source
a
v
.
great many other
dollars to
here.
In short,
the
purchases
road
genuine
The' contract
loan
provided
countries which desire
get in
we
return?
siderations involved.
.
-
channeled
Dollars
make
the building. of -which there ; has.
'abruptly, ended; pn,«V^J5 Day>Brit'-i Uporr'by-the British only as needbeen a United States Government airing 5^eaF^rtiggle^io^bjaildi
many of the
contribution and which are trans;^ i
export trade ■ didwriot.Mbegim'Mntil dbll5rsr" drawtt under the credif
i ferred under; thissettl^en^^^^^ that1 day.^Sbe- has^freadyrb^
yObuld T>^{s|perit initially in otheij.
;,{F) The United. States Go.v^rn^ great-pregitess;^
cowtme^4Jhd; might; take ;^^ sOme
ment reserves itsrighLOi^eca^
time finding their way back here.
ture of any vvlend-lea se ; articles.
Even
the dollars
spent in this
;held by. the French armed forces, construction at heme ;iric order to eritmlry during the next year or so
v
,
under
repaid.
What would
Third:
ture in
source
of
ex¬
port business and enable the debts
due us to be paid.
*
But let me impress this thought
upon you: that our very purpose
in making the loan is to create the
of her international earn¬ judgment, a small price to pay for
ing power,-was reduced to one- what we expect to get in return.
understanding, third of normal during the war.
Expenditure of the dollars un¬
»are hereby waived. ;
Why?
Becausein:; her wartime der the proposed loan would not
(E) Appropriatev>non^discrimi- partnership5.with us, it was agreed hit 'our markets all
at once.
Iri
natory treatment wilThe-extendx that"»: she should concentrate'- her;fdc^fj5^buld be spread {out over
; ed by the French Government, to
efforts on way production while a number of years.
The line of
United States nationals"in the use we
provided her essential imports credit would be available until the
and disposition of installations-in under- -Lend".Lease. V Lendl Lease
end .of 1950 and would be drawn
memorandum
thriving
a
be
arbitrarily
bilateral lines.
have
to
along
longer
acknowledged • and the/method--of
computation agreed, which
(1)
-
2959
Three Aspects of Lean to Britain
:
(D) During the course of the
^negotiations . both
governmnes
have reached agreement on the
■disposition
of
certain .specific
•
& FINANCIAL CHRONICLE
States
^armeMp);ee$?bh,;Ciyiliariv '■■pevson^
nel
COMMERCIAL
would
-
be
,
a
.
system,:
trading
world
to
opened
which is essential to the mainte¬
nance
productive employment
stability in a demo-*
of
cratic
world.
''
v
,,
'
of this proj¬
The costs and risks
ect
,
,
and economic
weighed
objectives which we
Without effective British
be
therefore
must
against the
seek.
participation, which is possible j
only if we lend our aid, the Bretton Woods
institutions and the
International Trade Organization ••
cannot fulfill the hopes which we
;
•
,
■
.
,
fe^^Fi^liermore^
this
of
ment
My endorse¬
have placed in them. Without the :
to fulfillment of these hopes for, a
the firm be¬ stable and productive economic
proposed
Britain is based on
lief that it is
w o r
1d
an
loan
w
essential step in
and
recovery
recon¬
struction.
We live today
order in the
world, there is little
prospect of success for the United
Nations Organization in its search (>
/
sick world. foiv political stability and security*
yet to attain the objec¬ Without economic or political sta7 J
f except petroleum produets&nd an
manufactureJVgoOdsvfoy--export.1 wduld he^used ih part for pur¬ tives of the Atlantic Charter, free¬ bility, we can expect only a con1
agreed list of non-combat aircrafti; She must renew contact with for¬
drift
of
world
affairs
chasing goods in ample supply. dom from want .and freedom from tinued
«The United States Government eign markets and adjust her ouU And
We
do
not * yet
know toward the catastrophe of a third ;,unless we bog down in the fear.
has .indicated that it does not: input to the world's needs.
All of management of our own affairs at whether the victory of American World War.
*
;
tend to exercise generally this this takes
time, effort, and organ¬ home, our ' vast rapacity to pro¬ arms in the war will be crowned
j
right of recapture, except that ization.
Meanwhile the essential duce
goods
will
progressively by victory of American ideals in
'vessels of the United States Navyimports of food and raw •material^ overcome the shortages during the the peace. But we do know that
,
and lend-lease merchant vessels must
if the war-shattered world is not
keep flowing in if the Brit¬ life of this extension of credit.
are to be returned to the United
ish-people are to survive.
It was neither practical, nor de¬ restored to a tolerable degree of
; States Government unless other-?
economic health, our ideals
\ This temporary loss of export-r¬ sirable to' attempt -to
of
:
specify as
wise agreed.
(Continued from page 2920);
ing power would have been seri¬ a" condition of the loan how, or peace and democracy cannot sur¬
(G) Disposals for, military use
vive.
ous enough by itself but in addi¬
I
when, or for what the dollars
day it opened at 108 ^ Your
to forces other thahv the, French
The situation is a challenge to
tion, again as a result of the war, should be spent in our markets.
profit was about 9 points.
armed forces of lend-lease arti-f
Britain has suffered other losses We already have over-all control America. We have already gone
cles held on. Sept.
2,1945,bri,e7 of overseas income. Before the of
Superheater bought at 30,
exports, through export li¬ far to meet this challenge but the
'chived thereafter by the French
war Britain was one of the great¬
censes, whereby we can control measure which is now before you opened Monday at 34V£. Your
armed forces, and. disposals for
est Creditor countries ih Uie^world; the timing, and nature of all for¬ is in a sense the keystone of the sale
price was 33 or better.
Civilian use other, than in France
receiving each year close: to ^one
eign demands, whether they arise whole program. As you know, So your profit is now 4 Yz
r-anci French 'overseas territories of
billion dollars of net income from
in
a
We have
,
,
Tomorrow's Markets
r
Walter
Whyle Says- j
•
~
'
•
'such
articles, will be
only with the consent" of the
United; States^
Government
ih£-United:/lSf at^{;{G
except to
extentf ing
very ^ limited
a
release for
.
and
the form of'-frozen Sterling;1 bal¬
wili not-,
ances/foreign obligations amount¬
"The: French Government
;
emftai&U$e'
Overseas
■
armed
.
(H)
•:
.
Come
territories iend^Ifea^iarl
tides held by the French
•forces.
;
Except
pro4
otherwise
,as
Vided in this memoi^dhm
to
approximately V12 billion
.
tlx?, dollars;; ?As.. a,^ result, her net
in7
pbrtl frpm; ^Fraricesand;?::^
,
her
proceeds 'will be paid to
any net
-
.
under this loan or otherwise. This this Government has. taken the
foreign investments.
To fif control Should be retained during lead in drawing up treaties of
nance her war effort, she had to the
period of inflationary pres¬ economic peace as the basis for a
liquidate a; large part of- her for¬ sures in our
economy whether this stable world order. We have laid
eign investments and to incur.rin- loan is made or not." However, we down "rules of; the game" for a
lend-lease
:made
of
has
"fromf
been
foreign .^investments;
reduced
to
about-1400
million^ dollars.^-./Not-
only has she
lost- this income to pay for current
imports* in addition she no longer
has as large a volume of liquid
derstandihg^ the JFfehch; Gdye^n-J assets
ment and the United States7 Gov-■
merit
receive
full
title
lend-'
to
lease and' reciprocal aid articles
resoectively held as of -Sept; 2i
1945,
transferred thereafter. If
or
United States surplus .iristalla*
any
tion
riot
transferred
memorandum
of
v
under
■
this
understanding
contains- a
lend-lease
interest,
such lend-lease interest ; is^re-?
tained by the United States.
:
/ - •
;(I) The United States Govern-;
will
ment
undertake
to
make
(available to the French Govern¬
part of the United Stated
Government's share of captured
ment
German and
Japanese surface
na¬
val vessels when such vessels be¬
needs
and
United
States
no
longer need¬
task connected with
the implementation of the Gerr
man and Japanese surrenders*
7. The two governments agree
for
ed
,
to
excess
come
to
are
any
conclude
such
specific
agree¬
ments as may be necessary to im-*
plement this general understand-;
ing.
8. This memorandum of under¬
standing
will
be
effective
upon
signature, and instruments of rati¬
fication will be exchanged as soon
as
possible.
Done
cate,
at
in
Washington, in dupli¬
English and French
the
languages, both texts being equal¬
ly authentic, this 28th day of May,
\
1946.
For
the
-
Government
the
of
United States of America:
,
JAMES F. BYRNES,
Secretary of State of the United
States
,
of America.
.
r\.
For the Provisional Government
of the French
Republic:
: :'
LEON BLUM.
•■
<-v-
as would
otherwise have
been; available to .tide/her over
this postwar situation, i
: v..
In short, the British need help
,
points.
Electric - Auto - Lite ;
bought at 71 is to be sold ,at"f
77 or better.
Current price '
about 74^. Hold U.* S. Hub^
r
shall have to share with the world
peaceful and productive system of
ber bought at 65 V2, to be sold {
This world trade and finance, Tirst in
Currently
fact has been recognized in bur the.. Bretton Woods Agreements at 78 or better.
food:program. We shall need to and'" then»in the proposals for an about 77.
Gross profits al- ♦
recognize it as it affects other International Trade Organization.
ready accepted last week ■
necessities if we are to help bring The basic
justification for the
about economic And political sta¬ British loan is that it would en¬ were 23^ points. Paper prof- J
able Britain to join with us in its about 19 points.
bility in the world.
You may .
Up to this poiiit my assessment turning these blueprints into a be able to convert the latter
of the real cost of the loan has as¬ living reality; Without the loan,
two paper profits. into cash
sumed that it would be duly serv¬ the British would have to go their
before the week is over.
iced arid repaid. But what of the own way without us—indeed in
risk of default? What if this loan opposition to us.
some
of pur scarce resources.
:
As you know, Britain is the
proves to be a deadweight on the
meeting the bill American
taxpayer and not a self- largest market in world trade so
imports ^dur¬
liquidating investment in British that her commercial and exchange
ing the period when they are. get¬
recovery?
practices have a very great influ¬
ting back on their feet; in inters
from
Abroad in
for essential current
Of
national trade.
course
this risk exists but in
ence
the
on
rest
of
the
world.
of the British Government up to an
judgment it should not deter Traditionally she has tended to
us from action.
It can; easily be follow liberal trade principles. If
exaggerated and I, for one, would we refuse this loan, however, she
enter upon this loan with every could hope to maintain her es¬
reasonable
expectation; that
it sential imports only by making a
would be repaid; A country thai desperate bid for domination in
amount of
has shown the
•
Second:
us
What would it cost to
to help them out?
The
bill
calls for
a
which is before you
line of credit in favor
$3,750,000,000. This fig-?
just picked out of the
my
vigor, the courage,
and the strength of character that
air. It represents the
Britain has shown during this war
very care¬
ful judgment of the American ne-r
period is a country in which we
gotiators
as
to
the ; minimum can have confidence. Through all
amount which the British need the
rigors of .wartime life in Eng¬
from us. It assumes that the: Brit¬
land, the British people have
ish will continue to maintain an shown a
capacity for government
austere
living
standard ■ while and for management of their eco¬
they work their way out of their nomic affairs which is rare in this
ure was
not
postwar predicament. It takes into
world. The payments on this loan,
consideration the extent to which' which will
probably amount to no
they can use existing resources
and borrow from countries other
than the United States*
It repre-f
serits
the
hard-core
deficit iri
Britain's overseas balance of
pay4.
ments during the postwar transi¬
tion period.
more
than 2%
of Britain's annual
expenditures
abroad, will cer¬
tainly not prove unmanageable if
we
in building any sort
satisfactory postwar world.
succeed
of
a
Of
course
we
cannot foresee
the
conditions which will prevail over
the
rest
of
this
century
and
She would be
intensify the restrictive
and
belligerent
currency
and
trading practices born during the
years of war and depression.
In
order to exploit to the full her
advantage as the world's leading
importer, she would have to turn
increasingly to state trading and
barter. A large part of the rest of
world
markets.
forced to
Now
future.
as
to the immediate
I still don't
care
foij;
this market and now with this
As
rally I like it less.
mat- '
a
mechanical de^
removed I would
ter of fact if
vices
were
;
short sales, and
nothing to do
with it, But as restrictions dp
exist I suggest that you take "
what cash you have and let
suggest
strikes
have
.
the market alone for the time
being-
,
.
.
.
'{•£
L.D.M. New York: This coL
.
1
is usually written Mon^?
day night; sometimes Tues-. *
the same pattern and free enter¬ day.. If I can read one ques* "
prise in foreign trade would be tion^ you ask if I take losses, f
strangled.
Along this road lies The answer is
yes. But I take !
further totalitarian development.
them, I don't hold on to themi^?
the
world
would be
forced
The alternative is clear.
If
we
grant the British sufficient credit
to
cover
their
umn
into
that hard-core deficit in
The word "wart" is
Maybe mine
or
a
mistake.
the composing
payments during room.
The word was meant >
they will be to be "art" as
applying to the
750,000,000 cost the United States? neither; this loan agreement nof
way out of
The interest rate which our Gov¬ any of the -other economic ar¬ their postwar predicament in a
technique of market trading.;
ernment has to pay on borrowed rangements into which we now peaceful and orderly way.
They —Walter Whyte/,
^
*
*
money is not the important mat¬ enter can survive a state of world¬ will be able to open their markets
*
ter that some have tried to make wide economic collapse such as we to the world on a basis of non¬
More next Thursday,
it seem. The real question is the suffered
v. h
during the Great De¬ discrimination and receive access
strain on our financial and eco¬ pression.,;'
—Walter Whyte
Further, we in this to foreign markets on the same
nomic resources. That involves a country
must recognize that in basis. They will be able to make
[The views expressed in this
real cost. I scarcely need remind the long run international trade pounds
sterling earned by foreign article do not necessarily at any ."v
you-Nthat we, too, have inherited must be a two-way street, and suppliers of the British market time coincide with those of the
troubles from the war. As a re¬ that only .through an adequate in¬
freely convertible into other cur¬ Chronicle. They are presented a*
sult of the-, way iri which we fi¬ take of
foreign goods and serv¬ rencies so that trade would no
Now
what
does
a
loan of
$3,4
overseas
the transition years,
able to work their
i
,
.
Thursday, May 30, 1946
THE COMMERCIAL & FINANCIAL CHRONICLE
2560
domestic producers of the items to
British Loan—Keystone to World
peace
and maintain full
employment on our iarms and in
iactories in
our
world macte
a
un¬
friendlyby /obstacles to the free
flow of trade* a :.
.
.
1 <
1930's wheri our world trade was' to
does any buying or selling, outside
its own national borders. But with
but lk of what it had been during
us—how about the cotton growers,
the" cattle raisers, the auto and
machinery
manufacturers
and
,
and
indus¬
Have they not had in the
tries?
vltera are;very; familiar with; the
past thousands of individual cus^
Soviet Systemand that a number
vomers in foreign countries?
*
visited
last
Russia
Smitn
A1
to
say,
•look at the record", and
the
affects
how, far
it
life ;pf its
but
"let's
summer,
used
see just
economic
citizens.
Stalin
Premier
Now let's look at the record of
the .third group of countries which
under the leadership of England
have been, driven to set up the
-
defense
'
J
is
naturally
a
thorough, believer in the Soviet
I respect the forth; lightness, with which
he pro¬
its
in
success
his
cam-*
jpaigh speech iri Moscow on Feb. 9.
quote directly four paragraphs
from that speech, which I think
are
relevant
to the subject in
hand. Premier Stalin stated:."Now
.
mechanism
trading.
of
~
bilateral
■ ^
As far< back
System and
claimed
ia* hbn-Soviet ; social System, that
Soviet, social system is
form
than!
of
organization
.
*
•
great trading naiion, commenced
feeling; the effects of the world
depression in her revenue from
foreign trade.
Our own exports
fell
from $4.8 billion in 1925 to
$1.5 in 1932, while our imports,
which
meant
to the
£
£
better
society
a
of
dollar
>
in 1925 to
in 1932.
As
suppose
us
to read a few para¬
me
.
f
'
strengthen their bilateral trade against private enterprise. In the
agreements, and tighten the rules first place, the administration of
measures
would
and regulations of State Control. such -control
require the develop¬
In such an event they will natur¬ inevitably
ally trade with each other and
foreign trade Will wither and
ports greatly decrease. '-7X
There
are
many
her
Dominions
and Colonies
ment
our
super-national adminis¬
agencies; and the more ex¬
of
trative
ex¬
controls
the
tensive
the
greater
the number of such agencies and
who face such
the
more
events with great composure.
In
fications.
faot their arguments for the future
far-reaching their rami¬
any
.
What
r
In some fields; at least,
(Continued from
page
2914)7%
,
i
the market. Over the past
six weeks, for instance, the in¬
dustrial market, as measured by
upon
the
Dow-Jones
Averages, ;•) has [
virtually no net, progress,
though many graups and in*>; I
dividual issues have shown wide;;
made
even
j
ly divergent price performances.
The
reasons
lie in uncertainties
investors',
in
achievement
minds
over
j
the;
of
adequate wagepolicies ;and OPA legisla-f
price
tion that would permit not only
a!
period of continuous production J
in!
but also reasonable confidence
fair level of corporate profits.
a
this connection the strikes J
involved may have served at least one use-1
which, being dominated by gov¬ ful purpose, in that they have!
1. We do not need foreign mar¬
ernments; would leave little place aroused; public opinion, as re-j:
kets as there is a shart domestic
fleeted In, Congress, by drama-!
for private enterprise.*
supply of most everything;
v
"In any case, if a nation's in¬ tizing the need for legislation that1
will make for better labor rela-1
2. Why not use the British credit
ternational commitments with re¬
to help balance the budget or re¬
tions and less governmental inter-!
spect to the control program were
duce public debt;
ference to production and profits.;
to be carried out, government per¬
3. Our foreign trade is but a mits would be required for the ex¬ Such legislation is not likely to
be long delayed.
small percentage of national pro¬
port of strategic materials, for the
The long term outlook over a}
duction;
,•
extension of international credits
4. The credit will not be repaid. --long-term and short-term-rand period of years still suggests ma-|
hard
are
tion but
controvert.
to
a
I
a
.In
type of international car-
new
men¬
telization might well be
few:
v
I could continue at
some
short view.
for the establishment,of factories
length.
or
for the
are
branch houses in the controlled
Within
countries.
We must consider for
also
the longer
period what may hap¬
pen to the political and business
economy
of the United States,
nation
each
terially higher stock prices
of
levels
the
as
nation moves toward record
high;
production;!
peacetime
would employment, income payments,!
Each gov¬ corporate • profits and
dividend;
enterprise
private
have to be restricted.
were put into effect
ernment, in the light of its quota
really concerns us today
of permissible exports from the
is that England and many other should the other nations of ihe
controlled countries, would have
countries have emerged from the world, some in the group domin¬
to allocate the totals among: ihe
of; how works."
war in conditions of great eco¬ ated
by
Soviet Russia, follow
various domestic producers. ~
4
He stated:" "First of all it Was nomic necessuy, which has forced her policy of complete state con¬
"That is to say, it would no
jby the aid of the' Soviet policy of the continuation and in some trol and the rest, urged by neces*
^industrialization of the country* cases tightening of war-time con¬ sity, combine under , bilateral longer be possible for each indi¬
Tiib"! Soviet method radically dif? trols, and causing an acceleration trade arrangements from which vidual company to use its . own
initiative in developing to the
we would be excluded.
fers, from the capitalistic method of state (controlled trade.
fullest extent its foreign outlets
■of industrialization:
In the capI think we will all agree that
England
has
today
bilateral
jitalistie countries industrialization trade arrangements of some na¬ such is the efficiency of our in¬ in the quarantined countries, or
ushally starts: with light industry, ture with ^ all of her Dominions dustry, that in but a year or two even in adjacent states which
^ince
light
industry
requires and Colonies, and in addition with most items in short supply will be might be regarded as trans-ship^hialler investments and the turn¬ Argentina, Bolivia,. Brazil, Chile, plentiful, and at present there ping centers. Price policies with
over of capital is quicker; and it is Paraguay, Peru, Uruguay, Bel¬ exists a surplus in items such as respect to such exports would no
easier to obtain profits than in gium,; Czechoslovakia, Denmark, cotton, tobacco, petroleum, ma¬ longer be the result of private
initiative
or
competition,
but
heavy industry."
Finland,
France;
Netherlands, chinery and 'certain chemicals. If
would be determined rather by
•'
,^Let. us examine this theory. I Norway, Portugal, Spain, Sweden the list of such surplus items in¬
international, agreement.
Coun¬
and Turkey.
creases and should we be excluded
wonder if
non-Soviet social sysHaving proclaimed
the
strength of his system and his be¬
lief in it, he gives two examples
'
'
state controlled economy.
a
graphs relevant to the subject of
state foreign trade control, from
Dr.
MouLon
and
Dr.
Louis
$3.51. to the Such objections I fear
result bilateral
a
agreements! with
tem."
-
4"-'i
domestic control and leads
Permit
.
•rx •i
direct step
that the British
Loan Agreement is not enacted,
Marlio's excellent book""The Con¬
and
that the United Kingdom,
trol of Germany and Japan":
Dominions, Colonies Nand the eigh^
"A general^ system- of economic
teen nations I have 'mentioned are
would - work
strongly
forced, as they surely will be, to control
Let
1932 England, a
as
exchange in
world trade, fell from $4.1 billion
victory means first of all that our
to
$1.3
billion
for
the
same
Soviet social system has won; that
the Soviet system; has successfully periods.
Stood the test in the fire of war
England, so dependent on for¬
and bias proved its complete vital- eign irade, became increasingly
iy"'7 And later he stated, "The unable to purchase in those coun¬
point is that the Soviet social sys¬ tries where the value of the pound
tem ' has proved to be more cap- sterling had depreciated as it had
.able? bf life and more, stable than with us; having fallen from $4.83
.,
the 1920's,
io
a
-,
of other trades
scores
I know "that most of the mem-
as
exported, which is
back
government is the only body that
7 v--; (Continued from page 2922)
"keep at
be
payments.- The intermediate term v
outlook still suggests the estab-;
lishmept of industrial stock prices!
on an approximate 3% basis
prior;
to a major and. extended sell-off.;
The
term
near
will
news
of prices;
course
depend
upon
developments,
day-to-day;
these
and
may bring wide fluctuations, buti
the market is nearing the time
•
'
our
sailors
to
have
trialization
free
Returning GI's and
given
ever
state
wnat
..
thought
indus¬
controlled
.Under
means.
enterprise system
you
our
Mem¬
bers of Congress have provided,
tinder the GI Bill of Rights, the
Opportunity- for young men to
Start in lignt industry, which, even
Mr. Stalin admits, offers an op¬
portunity to. make af qhick profit,
as opposed to his
plan JbfJhavfng
the state take!oyer the tyhole in-*
'dustry of the country and special¬
ize in heavy industry and other
'
operations whicn mignt strengthen
from
Loan
Will
Break
Log-jam
The purpose of the British Loan
7 Let us quote another paragraph
in
Premier
fac
or
speech: "A
in carrying out our policy
the
was
Stalin's
collectivization
of
the
rural economy; Here our aim was
to give to the country more bread,
■
ihore cotton, and it
was necessary
tb
1
change from small scale peasant
economy to- large scale agricul¬
tural economy, for only the large
scale farm is in
a
position to apply
hfew, modern technique,; and
use
all
its
achievements
to
to
in¬
I wonder if
our
farming popula¬
tion throughout this great country
pL ours. have given vhought to
JJUis ideology in government.
I
•
wonder
farmers
their
how
mary
individual
would like to turn over
farms
national
to
some
collectivized
cooperative
planning
£4group.
System not only reg¬
economy but
ligidly controls all
more
{.foreign traf e.
,
Too
many
of
us
I
fear think of foreign trade as the
tries able to
produce at lower
prices would presumably not be
accorded the full advantage re¬
markets
trade
or
how long do
•
these
countries go back to their
policy of bilateral agreements and
These
Of course, no one
of
consist
Woods Bank
and
the
Fund,
Bret .on
our
own
that
no
matter what may be
retires
from
her
Bri.ain
bilateral
agree¬
ing^ which
less
my
them
have
and
It is
dilemma
abolishing of ob¬
trade..
,,To this point it might appear
that I am mostly interested' in the
the
future
of
v
those nations
on
the
basis
of
what would be best for America.
National Prosperity and Foreign
Trade 77x77 .77
I
hope
assume
you
as
a
permit me to
premise that active
into
.
'''
-
Geyer.
'•
.
y.'.""a-" 1
.
1
&
Co.,
Inc.,
67
;;
Wall
Miller, Cleveland, Ohio. .7; 7*7,
,
,
:'vr-
"-n/.
71
-x\\
26%
Bendix Aviation
48%
Best
|
29%
Borg Warner-,...
59'/4
.
47»/4
California Packing
Doehler
33%
Jarvis
...
&
M 55 < \
V
National
Yale
|
29%
Picher
Jewel Tea •-iii-i-Ti..,—I
Eagle
36%'
7" 47»/b
•
-
Towne__„._
7:
60%
77 60 • - f.|
77%
Speer & Sons
to
Tinr Financial
i
Chronicle) 1
CHICAGO, ILL.—Paul! MJ1
Schoessling has become connected
So, La Salle Street.
Street, New York 5, N. Y.-, an¬
nounces the installation of: a di¬
rect
wire
to,. Skall,
Joseph. &
else, probr [ States, certainly it is one of-the lows that the government would
government's.
This is indices of tne lack oi national necessarily take a hand in selec¬
! exactly true with the Soviets, the prosperity as evidenced by the tion, price and allocation among
i
|
158%
Belding Heminway
Sofia Co.; 135! |
Mr. Schoess-y
ling was
previously with Doylej
O'Connor
& Co., Otis & Co., and
Ames, Emerich & Co.,
,
Standard Securities Installs
to
SPOKANE, WASH. — Standard
Securities Corp., Peyton Building;
dealers in mining stocks and list-'
ed and unlisted securities,
now;
have their own wire to Kellogg
and
the
•>
Pttce:
Beatrice Creamery
with H. C. Speer &
Geyer Installs Wire
a
business of somebody
„ably
99,900
speculation).
position requiring controls
on our foreign business.
If these
new controls were applied it fol¬
world trade is good for the United
Recent
?7v::
'issue J
American Chicle
mon
Price
short-sightedness we have slipped
will
Among
Materials Corp.
The net proceeds
will be used to purchase the Newcons of this subject.
Despite the hall (Maine) wood flour mill now
owned and operated by E. I, du
necessity of holding (he price line
until production catches up, the Pont de Nemours & Co. 77. '7
The Plastics company was in¬
net of the thinking moves in the
direction of a desire to get rid of corporated in New Hampshire on
Jan. 16, 1946, to engage in the
government controls as soon as
manufacture of wood flour. It also
possible. How deluded we would
be
if
while believing we
will has an option to acquire control
of Wood Waste Products, Inc., a
shorvly be released from domestic
wood flour mill at Laconia, N. H.
controls, we one day awaken to
the realization that due to our
conducted my s.udies and reached
conclusions
of the
Reilly & Co., Inc. are of¬
shares of Plastics
$1 par value com¬
stockat $3 per- share- (as>: a
fering
consideration
(Commercial Credjt 58%)% I
individualissues re-!j
garded as attractiye axe:
:
(Special
J. F.
Control Legislation.
I am some¬
what familiar with the pros and
particularly distressed by the re¬
sults of the war.
I am naturally
very interested.
However, first
believing that I have the quali¬
fications and experience to ex¬
amine the subject as a Whole, I
my
in
shares
H. 8.
A short time ago this Committee
sat
strand 32) and instalment finance
Youngstown Sheet & Tube—
in our
goods.
7
56%, Van Norman 25, and Sund-i |
Sugar Refining.,
Phelps Dodge
of the
meat¬
are
packing shares
(Armour, ,17%,;
Cudahy 61, and Wilson 18%),
agricultural
implement
shares,
(International i, Harvester
98%,!
Deere 54%, and Minneapolis Mo-,]
line
Power ; Implement
17%),?
machinery stocks (Allis Chalmers
Plastics Materials Stk.
policy of free enterprise
and the unhampered flow of world
stacles io international
mediate term prospects
Woolworth ?
rejoin
ments,
champion
warfare,
that appear reasonably priced in:
relation to .other, shares on inter¬
crossing frontiers instead
goods of peace.
*
opportunity to help
the bilateral countries out of their
us
trade
»
Groups with best assured truly |
long term: outlooks rare,., building,!
chemicals and oils* Among stocks!
friendlinesses which start soldiers
last
the
and accepts -in -principle
proposals of the International
Trade
organization
which
will
international
sustained rise out of the [
Agreement
that the British Loan
our
only induce ruth¬
can
a
recent rut may be expected.
which in turn leads to those un¬
enterprise. That
main reason for believing
about
c©ntract
manently, the world-wide move¬
ment toward state controlled trad¬
the
free competitive
is
Trade
Organization it
will arrest, and I hope stop per¬
tion, it would be forced to make
foreign
trea.y arrangements
in
contradiction to our concept of
under
loan
national
political color of the administra¬
transcends most objections:
the
of the Bretton Woods and Inter¬
X do not believe that this coun-*
try can live alone, a free enter¬
prise s .ate, in a world of • state
controlled economies.
I feel sure
Export Import Bank, and most
important to be remembered, that
iments its domes ic
even
bilateral agreements,
£
The Sovkt
world
controlled
state
sulting from that fact; and at the
same time subsidies might well be
regarded as necessary to enable
tions to slacken their controls and or the administrative departments high-cost countries to participate."
To sum up: No one knows if the
to choose. as their future course, of the
government with the de¬
Agreement
will
the road of unobs .ructed world mand for export subsidies or other British - Loan
trade.
-7 :o
av7/7:; measures that would facilitate the bring complete success and 'fulfill
all its objectives, ' One does know,
X have been asked the question, foreign disposition of out surplus,!
who knows if1 the British credit and how much wotild such assis¬ however, that if put into operation
with its collateral organizations
will be enough? .. If it is not, wont tance cost the taxpayer?
economic
production."
crease
competitive
to
.
ment,but in; which the people as a can see deep into the future, but
whole lose opportune y> of indi¬ lei us remember that the British
vidual initiative and become the1 Loan Agreement is
the "Key¬
of
organizations J which
hirelings of the state instead of: stone"
the independent owner of a busi¬ never existed in the past, for in¬
ternational
trade
ness. ;
cooperation.
;/
•
due
Agreement is to break the log¬ you believe it would be before in¬
jam and to give an opportunity dustrial or agricultural groups
to the governments of these na¬ would descend upon the Congress
state controls?
the position of the central govern¬
Traed
when
Wallace,
Idaho.
The firm^
regular teletype is SP 82 and
they also have a teletype cn the
floor- of the Standard Stock Ex¬
change
use
of
Spokane (SP 43) for
10:45 and 12 noon,
between
Pacific time.
I
>
vf"
<•;
JI# v-
iVoliime 163
" NUrnbef 4494
A
f
.d-1»
,v>i\
THE COMMERCIAL & FINANCIAL CHRONICLE
ica short
Goverziineiit Propaganda dn Pri^e Control
(Continued from
nesses
.
.
American
It's
horse
made
2914)
page
time
to
our
use
It's
time
to
use
COMMON; SENSE
PRICE CONTROL.
ON
sense.
•.
this " statement:
"The
National
Manufacturers
IV quote:
Association
have
of
taken
not
a
poll among their members—" I'm
25%
.
..
.
2961
who believe in regi¬
draw up elaborate blueprints on
eight million products and three
mented economy .7.
who have no
real faith in the people .
who
.
without raising
prices.
.
*
They are the ones, you know, like
Leon Henderson, former head of
OPA, who on a nation-wide radio
forum recently said in all sinceri¬
ty that over-all prices have risen
only 4% in. the last three years*
Apparently the .cat-calls arid boos
think
they're ' smart
enough
million
to
businesses.
angry, all
Yes, they'rp
right.
4
,
.
V
c?
llepart^
quoting directly: "That poll would
undoubtedly show that the NAM
the silliest—of OPA's arguments was
not, truly representing, .its
for self^perpetuation- is this; that members,"* he said.
<big bad wolf,: the American busi¬
As a newspaper man, Mr. Reyn¬ from the audience didn't shake his
(Continued from page 2919)
1
/i
n,
nessman, is out to grab your life olds knows that- facts should be belief in that figure a bit. \
goods and materials of all kinds is S from a month ago Is, in the opinaway.
When price controls are checked and that OPA releases
Price Control and Food Situation holding
dropped, businessmen will imme¬ should not merely be echoed.. A
up progress.
I ion of buyers, largely brought
diately shoot their prices so sky- poll was taken among NAM mem¬
OPA .has sprung up with a new
about by the far-reaching effects
Commodity Prices /
high that absolutely no one but bers—and if Mr. Reynolds had argument in the last couple of
of the ccal strike. Material short¬
the very rich can
The trend of prices generally is
buy a paper of taken three minutes of his time— weeks.
ages
unless soon remedied' will
Now, from Washington
pins.
if he had spent one nickel, for a mouthpieces came the
undoubtedly aggravate the situa-.
long, loud upward at an accelerated rate
If
the:
Very few items are not affected tion, causing further unemploy¬
scream:
blueprint
specialists phone call—if he had read NAM
"Price control is neces¬
didn't repeat that line in. every testimony before the Senate—he sary to >save the
Price advances appear to range ment,
■1
■' .'Vabitt.;
starving people
,
,
Probably the most vicious—-and
In General Business
*
.
.
from 7%%
statement—if they didn't sob that
could have learned that fact.
line
know like the scratch of fingernails at in all industries account largely
what the poll showed, Mr, Reyn¬ the bottom of the barrel. How did for the increases. Escalator clause"
emotionally that you'd
they believe it—if it weren't
so
swear
slanderous
so
and
libelous
—
I
Wouldn't t even take the. time to
dignify it with an answer.
What Is Produced, Must
:
Be Sold
vf
•
:i
And
would
of the world."
it
olds?
All
Every tenth person
of NAM mem¬
bers was asked for his opinion.
And here are the results: 90 %
on
right.
the mailing list
OPA
said
price controls were
hindering production of manufac¬
gullible enough to believe that tured' goods-^94% said that, re¬
businessmen would price
their moval of price controls would in¬
products so high that nobody could crease the production of manu¬
buy
them?
What
businessman factured goods.
would price himself right out of
Please, Mr. Reynolds, the next
business?
■ $
time you make statements, take
ft Let's" use our - cerhmon' • sensed the trouble to find out the facts.
and, as Mr. Bowles loves to say,
Now, Mr. Reynolds also spent a
'
f
What thinking
person
can
That wail sounds
to 25%. Higher wages
Conditions
like to
you.
be
happen that the starving people
of
Europe
never occurred to OPA
before?
Surely
conditions
in
Europe have been bad—terribly
increase
and
many
are
without escape provisions.
Very
few orders
can
paying
h igh
over
There
than
e r,
are
about farm economics—and what
in
a
seem
free
to understand is that
economy,
safeguard
is
the greatest
competition.
Any
that
the
better
ardent
OPA
get busy and
proximately 100 industrial ^pur¬
chasing
agents
in
the
Unitqd
States and Canada highlights
on£
general
"save,
our
ourselves"
from
us
working with that of any other
stands
to
lose
more
people on the face of the earth— Business
and any of the planned economies through inflation than ,any. other
they like to talk' about, for; that group.:
ru.!;?}'
«
matter. We are able to buy *more
j; Thpinext ,maj°r argument that
OPA uses is one of; waitings;
goods for the number of hours we
work than any people anywhere "Look what happened after the
last World War when price con¬
else.
There were
Why, it's just common sense— trols were lifted..
proved by experiences in this na¬ 11-million unemployed. More than
tion and other nations in the last 100-thousand businesses shut their
150 years. . * . Can't they see it? doors. That's what would happen
,
Can't they understand?\
have
so
Do they
little faith in America?.
So little faith in the people? How
can
any
person
be
so
think he knows
egotistical
again."
Here's
makes
tries
than
30's.
to
more
,
of
one
the
the
points
maddest.
me
making
was
the entire 140 million Americans
as
•
.
you
OPA
think that that
depression
is
■; as
the
same
Here
that
For
obvious
most
the
put together?
twisting of figures to. suit their
Oh, but, it's not just Mr. Bowles
and Mr. Porter who are trying to
scare you into keeping them on
their white horses and keeping
ends.
,
their two and a half million dollar
propaganda machine in operation
keeping their gang of clerks
on your payroll..
The Communist
Party, through
its mouthpiece,
The Daily Worker," and through
booths set up on street corners, is
combining its drive for OPA regi¬
mentation with a recruiting drive
for 20-thousand more Party merhf
and
bers,
''
:
"u
Attacks On NAM'
are
The trend indicates
11-million.*
;;
ation is bad and very slight im¬
provement is noted.
'*\t
Consumer merchandise is being f
held from markets in
of
,
normal
thatwith
our
most
prosperous
1925-1929, when the aver¬
age number of failures was 22,920
years,
—about 700 less than '22.
those
the
are
not
the
official
.
.
And
.
figures
brainchild
of
.
.
.
OPA
of
7
Incidentally, it's not at all
un¬
Not very
usual
trusters to get bogged down, with
their own statistics and predic¬
on
the subject of price
control, he
bare
shelves.
She
knows
of
to
common
use
sense—to
ous.
The price
upward.
for
the
Government
brain
tions.
They are the ones, you
know, who predicted there would
from
6
to
15
million
unem¬
ployed today.
bile
decenf or'
line^^Ji :
many
trend
is
definitely
'
'
.
There
is positive evidence that-
manufactured
goods
withheld from
shipment awaiting'
-
are
price increases.
Many items
bein^
■
,
longer
are no
man¬
ufactured because they cannot be
made at a profit.
Escalator
clauses
are
•
being
commonly used and often mis¬
used. Retroactive escalator clauses
task
Specific Commodity Changes
There
factor
sems
to
to
be'no
the trend
limitfor
of increasin"
prices. Many believe advances ir
coal; and freight rates will comae1
advances in other materials an'
■
you
profits in
Under
Now, what about 100,000 busi¬ look behind OPA arguments. Let force another
complete turn o'
closing their doors?
Well, me repeat: surely no one is gulli-i the" wage^price circle that wiF
in 1922, 23,676 businesses failed— ble
enough to believe that busi¬ again
confront
industry
with
manufacturing, wholesaling, re¬ nessmen, at the end of price con¬
compensating
wage
demands
tailing and all others.
Compare trols, would be so shortsighted as There
appears to be a growin"
be
anficip^ion
higher prices,
is preventing
OPA
the war period.
Supplies mo vim
from - manufacturers have slbwec
nesses
on
if his voice would do
good in splitting the,ranks of
American business and industry
has keep goods from being pro¬
duced,
We can tell you, for in¬
come
"information specialists.".
But, as
inventories
lower, mixed n$d .unbalanced.'
The materials availability situ¬
are
.
propaganda, too,
any
buyers ■
,
OPA price
look, at the- OPA's
a
the Department of Commerce
Manufacturers I've ever heard.
how
on
the/inferior substitutes for what
figures. In the first place, unem¬ she
really wants. She kndws of
ployment in 1922, a "depression butter lines and
nylon lines—and
year," was 3,440,000. That's a long that 80% of the meat is on the
way from the
OPA's figure of black market.
Yes, the time has
and
.bad way;
sellers are
confused;
^ither
helpless or unwilling to stand5by
their commitments; and a
r^iirn
to; sound business practices • ^nd'
ethics is badly needed. Highlights
of some of the reports
submitted,
are quoted below:
Buyers are almost unanimous ir
chapter and
fixing
a
are being used to: permit materir
Buying Policy
als to flow to markets, at the saiue.
present business condi¬
time insuring "sellers will get ad¬
tions rigid adherence to any def¬
stance, how company after com¬ inite buying policy would be im¬ vantage of any future increase
pr.,ces'*'■
pany has been forced to shut their possible. Selling as well as buy¬
v
doors because they could not pro¬ ing is in a state of confusion, anc
j-jLaboij .di^ficultie^j ap .blocking;
duce* under the OPA theory.: that ,and; many; are not operating alon<* reconverj?ion,,j(
Too much labor; union moy
costs
can ' shoot
4 up^-inciuding SOUnd
business4 lines.
The
o'd
wages — without
price
adjust¬ landmarks and guideposts of bus5- ropoly and government in tmsiments.
We can tell you how the ness appear of little value. As i ness.
A more definite, labor and price
largest electrical manufacturer in result no definite time policy * fo*
the world loses
$10 on every buying can be stated. In genera
policy is badly needed,
Retroactive price increases are
washing machine, $4 on every it ranges from hand-to-mouth: u*
dishwasher that rolls off the pro¬ to coverage of some capital equip¬ not allowed in Canada.
duction line.
ment items for
With. opinions like the above
periods of twr
v
You've heard many of these years. The situation at the tim' coming from prominent purchase
actual cases—and OPA especially of negotiation dictates the police
ing executives, representing
In
general, however, a th^er of our great industries, no one
knows
them — their
files
are
can
doubt that;business is in a
crammed full of them—but any months' position would appear tr
bad
state.
The industrial ou?-'
housewife knows the story better be good buying policy, with any¬
and more personally.
She knows thing beyond somewhat hazard¬ chasing agent faces a difficult ■
verse
of
Let's take
And, unfortunately some wellmeaning radio commentators have
been sucked into echoing OPA
Quentin Reynolds, for instance.
long ago, Mr. Reynolds
this network made one of -the
most vicious attacks on members
of
the
National
Association of
you
Business7 ,is'
conclusion.
generally in
Come now,
heroes—would have you believe.
Let's use our common sense again.
fk
indica¬
some
tions of materials
pays more than lip service to the down. Extreme pressure by expe
Mr* Reynolds, let's belief that production is the an¬ ditors is * heeded to keep.' plants
get our stories together.
swer to inflation—ar^ overwhelm¬
runnings with, no overages for in¬
©f the running by another manu¬
ing avalanche of white shirts and ventory purposes.
facturer making a similar product Business Does Not Want Inflation
washing machines—of men's work
The low inventory' situation is
and selling at a lower Jprice. •':
Getting back, to the arguments sox and automobiles—of meat and
generally attributed to labor dit
This is such a fundamental fact of OPA, I'd like to make this butter—of radios and electric
ap¬ ficulties
of
suppliers
or
their
of
economics that the "Brain- point perfectly clear again. Amer¬
pliances and building hiaterial— sources. The outlook for good sus-1
trusters" in Washington can't com¬ ican business does not want infla¬ to smother
inflation.
tained production is not bright.
prehend it. Even at that, all they tion as the "white horse boys"—
We can cite
have to do is compare our stand¬
ard of living and our standard of
>
•
A summary of reports from
ap¬
letters.
manufacturer who attempts to sell
at too high a price is shoved out
than
.
drastic changes
month ago reported.
previous
can
supporters
But
Nobody wants inflation.
send more unlike some, American business
no
Goas.t
stable
more
General
*
doesn't
West
'
be done for" the people of their opinion that the price trenc
Europe—than OPA theorists. And all aloprg the line
upward.; Al¬
the Secretary of Agriculture re¬ though ceilings are
being held L
let's look at the record!
great deal of time declaiming that cently recommended that price some extent, an increasing num¬
v This nation was built on mass
a
flood of letters was reaching controls be dropped on meat—un¬ ber of items are
being removed
production—and mass distribu¬ Congress demanding extension of less there was an immediate im¬ from price controls.
: *&-; T
>
tion;
That means simply that OPA.
But that very afternoon provement in the Situation.
American
industry believes in three; hours before Mr. Reynolds
\, Inventories
I'd, like to say this:: that we'll
producing tremendous amounts of spoke, a Save OPA rally was held never feed Europe with words—
A decided trend toward lowev
in
New
York —'and * Franklin we'll never feed Europe when our industrial inventories is reported
products-—and selling those goods
at as low per unit cost as; possible. Roosevelt, Jr., announced that the own
economy is bogged down by Inventories are also reported in ?
No one has to be told of our pro¬ letterlido had^ turned^hat/more unrealistic
bureaucratic controls badly unbalanced condition. Les
duction record both in peace and letters were pouring into Congress at
home-i-wel! never feed Europe materials are available. This situ¬
in war.
And, what Mr. Bowles for the dropping of OPA—and as long as we're sick, ourselves.
ation is more critical than durih?
■
to; be
be placed withouv
being held from
do anything in our power to alle-s markets in anticipation? of higher
viate suffering—but throwing in prices,
principally - in consumer
this issue on price control is ludi¬ goods.
At present this does not
crous.
The Secretary of Agricul- appear to be a serious factor ir
industrial materials.
V
tnre, I believe, knows a lot more
Naturally, we're all willing to
a
the
on
elsewhere, with
daily,
prices.
bad—all winter.
appear
They are the ones,
know, who said the automo¬
industry
could
raise^ wages
to try
to charge such prices that
could buy their products.
Do you believe that, Mr. Reyn¬
olds?
Do you believe it, Mr.
Bowles—or Mr. Porter?
no
one
„
Well,
work
even
that
if
you
do, it doesn't
The
way.
American
housewife, buying on a free, open
competitive market, is -the only
real workable
cy.
And
we'd
a
price control agen¬
Mr. Reynolds,
frankly,
lot rather trust 40 million
disrespect for OPA and its re¬
expected by man v.
;
There is not the slightest indi¬
cation of a: change to a buyers'
moval is
to
protect his company's in¬
terests. He must keep a marked ?
decree
of balance,
and
dealings
with his vendors must be firm .if
.
he
intends to
difficult
through this
with his conpr
come
period
safeguard^ |
while;piantspperateias;n
;
panv's
"
interests
production schedules
as
labor and
materials permit.
Straus & Blosser Add
CHIC AG O,
1
Blosser,
members
135
of
ILL,—Straus &
So. La Salle Street,
the
New
York
and
Chicago' Stock Exchan ges,V have
of more added to their staff Maurice J.
normal conditions may well he
Amelar, Robert E. Bensen, Wil¬
what is necessary to restore the
liam G. Coppock, Carl O. Gustaf-j
morale of business generally. The
son,
James A. Kane. Louis - M.
attitude today of many firms, in
Leberman and Philip L. Salk.
completely,
disregarding
con¬
tractual
obligations " on
pric°
commitments,
may
some
day
Geo. T. Carter & Son
cause big headaches to many sales
FT. LAUDERDALE, FLA.
managers.
George T. Carter & Son has been
Employment
formed to- engage in the invest¬
Reports from all sections indi¬ ment business. Partners .are
market,
but the
return
•
•
housewives than
economic
a
theorists.
thousand OPA
•
Mr.
Reynolds, you said people
You're right, folks
angry—good and angry — at
were
are
angry.
those few who want to sell Amer¬
;
cate a very drastic trend to lower
George T. Carter, Emma W. Car-j
employment. The change in trend .ter ar.d George T. Carter, Jr.
another
jV Fortlacossiiiig FRB Report on Inflation
the
in itself
is
a
strong
reason would be likely to replace through
market purchases the amount that
supposing that the section of
the Board's a.u.uai report which
Will constitute the promised an¬
for
swer
carrying
Hence, nothing
would be accomplished towards
to the request of the House halting the monetization of the opment might
was
the facts and
off.
paid
debt and reducing the money sup¬
Banking and Currency Committee
at the time Mr. Eccles testified
on OPA renewal will
lay down
-
depression
were
company
earn
shut our. eyes tc
the realities of the1 situation as 1
have outlined^ it if we expect to
alternative remedies,
like that of
experienced.
future
We' ihdst not
to enable the
consideration to
occur
under
period, f in
which event the junior security¬
seven-year
holders might recover their for¬
recommending
stop a further decline in the long-r mer position. The result would be
a course of action now. Mr. Eccles'
statement regarding the Anglo- term interest rate, or to bring to impair, the protection which is
British Financial Agreement, in about an improvement in the rate supposed to be inherent in mort¬
more in line with the longest-term
gage bonds.
which he outlined the position of
2V2% rate being paid by the Gov¬
The writer prefers not to dis¬
the Reserve Board and the Treas¬
ernment on the last market issue.
cuss the
question of whether or
ury,: is
publ'shed elsewhere in
A serious by-product of the in¬
not
the Rock' Island and other
this issue of the "Chronicle."
creasingly low long-term rate is roads in the same category may,
^ While the foregoing has been to intensify inflationary forces,
if they are returned to the con¬
the major subject
of Reserve
particularly in the field of capital trol
of
the
stockhQjde^s^/|in4.
Bqard deliberation lately^ other assets such as in the stock market
themselves in fresh finaS<^£fdfe
problems have been seeking- its as well as in the entire real estate
ficulties before long. Jf is worthy
attention.
One, which seems to
field, including homes, farms and of note, however, that railroad
come up from time to time, has to
business properties. The low rate
reorganization plans ,;fo.r]tpulgt^d,
do with the'"reserve city" classifi-
without
;
•
d-rectly
What constitutes a "re¬
city" does not always meet
the. same criteria and from time
to time, banks seek to have their
cities transferred from "reserve
serve
city? : to ; "country" classification,
or vice versa.
In the one case the
desire to reduce reserve' require¬
ments is the ca'use, and in the
other a matter of supposed pres¬
tige..
There is some- feeling in
also discourages savings and has a
Serious
impact on all insurance,
pension and savings funds.
Points Out Defects
.
Of Wheeler Bill
j
n
f
Ratify Brete Weeds
Slightly in Iprit
2913)
Sales i:;jof :;;^raanuf acthred^t^hd^
(Continued from page 2919)
particular time, it has been im¬
possible to maintain a stable cur¬
rency over a considerable period
mixed gas' in April
were 242,108,therms, ah increase of 3.3 %
000
,
of time.
"The explanatipn is clear if it is
realized fhat the value of the cur¬
compared with last year, reflect¬
ing an increase of 23.7% in de¬
days last month-over
gree
a
year
.
is: not
rency,
purely
probleijo,,,b>ut to a
degree
is
an
national
a
important
very
international prob¬
lem.
"Theoretically,
maintain
country
a
balanced
can
.budgets,; and
prohibit by Jaw, by tyranny^or-by
any- other
means
increases ,,ih
salariesand wages—in a word;
stabilize- the cost of living
index,-
which is. the same thing as keep¬
r
ago? t the.:American - Gas Associa-^
tion
reported on May 28.
The
Association's ; index v number of
manufactured and mixed gas sales
for1
April was 141.9% 6f the 19351939 average.
>
S For the 12 months ended
April
30,
1946,
sales
t
and mixed
therms,
gas
of-manufactured
wehe 2.973,487,00ff
increase of 1.7% over
theT944-1945 period., *
W Natural gas sales for April, 1946'
an
.
ing the: internal value of the
that the road remained solvent
Jfor only 16 years thereafter
cur-.
^^..uhchanged^^But it is -also-
the entire present issue. The fact both
w,„A'oaiQY
i
Gas Sales Down
were
approximately 1,909,336,006
therms, a decrease of 2.2% under
a- year -ago.
This decline, is .at-;
true .that, the samel country can¬
tributed to the drop in war time
not prevent other countries from industrial,
production, in
areas
paying supplied/ hy : natural ,.gas.. Th©
before 1930 usually allowed'the lower prices for them, or raising iAssociation's natural
gas sales in¬
stockholders to keep their equity. the prices of their articles shipped dexwas 176.7% of the 1935-1939
Thus,
when
the
Rock
Island in exchange,.; or suspending*newN average. These figures, do not inemerged from its previous reor¬ capital investihents, or liquidating cludd
natural. gas
marketed
ganization in 1917, the old stock¬ their. investments,* • AH" of these through1 non-utility channels. "
>
holders were given foi:-theirdxQl4r, causes, result either in a decrease
Natural gas sales totaled 21,-.
in. gold or foreign exchange, re¬
ings a like par amount of new
878,035,000 therms in the 12-month
common stock, obtaining thereby
serves, or in exchange control, period ending April 30; 1946. This'
,
:cation/
Chile lasd Mexico
out
its interest charges for some
ply.
>
be
to
of reorganiza¬
tions might be delayed indefinite¬
ly by the objections of holders of
junior bonds or of stocks on the
plea that there was a precedent
for hoping that a favorable devel¬
(Continued from page 2924)
This
30s
The
Thursday, May 30, 1946
CHRONICLE.
THE COMMERCIAL & FINANCIAL
£962
tary
factors which lead to
depreciation-.asv
mone¬
represents
a
decline of about 2.8%
result: of
a
:yeari;^when t^naturai/gas J
to be deferred and the market
would appear to be an argument try;'s, control.; :
sales totaled 22,500,023,000 therms.-.
"yiTashington that the two classifi¬
price of this issue fell to 42 be¬
'The working of such external ;
cations are unnecessary land that
against
liberal
reorganization
The decrease.iniwariproductioh/
fore the year ended.
Obviously
Reserves should be uniform in
plans which give too ' much' cbn4 factors is not felt in countries like with: the fesubsegueht/decline in
the railway
was
in a serious sideratlon to the old stock" issues. the United States and
Russia, in natural gas sales morn than offset
each.
S
.;
.
While testifying recently on
'
the
British loan, Mr. Eccles disclosed
some
of the background of his
financial plight.
DONALD M. LIDDELL, Jr.
The company filed its initial
reorganization plan in July 1936,
Vice-President,
which
foreign trade is
insignif¬
icant in comparison with domestic
the
gain
manufactured
in
mixed gas sales for the
and;
inibnth of,
trade.
On the. other hand, other April and total sales of the gas?
the Interstate
Commerce Conn- Templeton, Dobhrow & Vanqe,Jqc,
countries like Chile whose: econ¬ Utility industry amounted to 2,-7
thinking on the above-discussed mission issued another one in New York City,. •
omies .depend^ fundamentally>pn a .151,443,000 therms, a decline of;
subject when he read into the September 1939 and the company May 23,1946.
lt6%-underVa^yeai* ago. The Asso-:
record..a fragment of an unpub- Submitted a modified
plan in No¬
fix the value of Iheir currency- in. ciation's index of total gas utility ",
Jished report as follows:
vember 1939.
Of these the ICC
sales, in -April was 172.3 % of the
relation to the currencies, of other
.The excessively low yields on plan was the only one which pro¬
1935-1939 averaged
~ 7 * ■ "'
v i
Government securities is due to posed the elimination of .the old
jcbuntrieS: 'Th 1895 we tried to do
pFor the 12-month period ending
the intense competition by the capital stock issues.
it by internal circulation. of gold,
This treat¬
April 30, 1946, Sales of gas to ul-i
banks to add to their holdings of ment, in the opinion of the writer,
and in 1925 with the gold ex¬
timate consumers totaled 24,851,-!
longer-term,
higher-coupon se¬ was entirely correct, but it is this : The First Boston Corp. headed
change standard: In both cases 522,000 therms, a decrease of 2.3%
curities.
They continue,7 to sell feature of the reorganization plan a
group of underwriters which on
under the previous; 12. months. r
•
the system failed miserably. This
their
shorter-term securities to of the Rock Island and of other
May 24 offered to the public $34,A therm is a unit of measure¬
the Federal Reserve Banks and
railways now in trusteeship or re¬ 500,000 of first mortgage 2 % % happened because in both in¬ ment of gas supplied which
^takes.
with the reserves thus created, ceivership which would be nulli¬
bonds,
due
1976,
and
125,000 stances the value of the currency, intu account the heating: valiife of 7
the banking system as a whole is fied
by passage of the Wheeler shares of 4% ;; cumulative pre¬
different types of fuel gas.. One^
or its gold backing, was fixed in
enabled to purchase six times that Bill. To show why it seems proper
ferred stock, $100 par value of the
therm is equivalent to approxi-.
relation to the domestic circula¬
amount.
In a word, the market that the old stock should have
Jersey Central Power & Light Co.
mately 170 cubic feet of manufac-1
today is largely made by the com¬ been given so little consideration,
tion—for example, in the case of lured mixed
The bonds were offered at 103 %
gas as combined for7
mercial banks.
it is necessary to review the situ¬ and accrued interest and the pre¬ the Central Bank as a
percentage- statistical purposes or to about 100:
This process of shifting from the ation of the
railway as it was in ferred stock at $103.50 per share
r:
of,,the,.circulating medium—with¬ cpbic fpet of..natural gas,/.,
Shorter to the longen-term securi¬
late 1939.
plus accrued dividends.
out Realizing thai if exports fell off
ties cannot be stopped unless the /v In
Proceeds from the sale of: ihe
every year beginning With
shorter-term rates are permitted
1931, the road had reported a loss. securities, together with $7,000,-; for a year, this would be sufficient
on
to increase until the shifting is no The cumulative deficit from 1931
OOO from the sale pf' ten*year to account for the loss of th^ en¬
ionger profitable, or unless Con¬ to 1938 inclusive was over $82,- serial
notes, a capital contribution
tire, gold reserve.'', g|
$' gress is willing' to give the Fed-,
000,000. Fixed charges during the of $5,000,000 to be made- by ,NYA Mexican
eral Reserve adequate authority
Congressional, de¬
It is understood thai $3,105,700
period were earned an average of PA NJ Utilities Co. and about
to deal, with the, situation.
The about .30 times only. < At the end
$6,398,000 of the company's gen¬ cree published in the/'Diario Ofi- has been, deposited af The Na¬
first method,, that of increasing
of 1938, current liabilities, includ¬ eral funds, will be used to redeem cial" of Dec. 31, 1945, authorized tional City Bank of New York.
the shorter-term rates, would be
ing ^bout $166,000,000 of funded $38,000,000 of first mortgage 3% % the executive to sign the Bret- tb;pay^ m^full; fhe interest Ion the 7
ill-advised as it would increase
debt matured but
unpaid, ex¬ bonds: due 1965, at 104Vi; 70,371
Antwerp" 5% bonds dueT958nfor.
ton
Woods
ratification
instru¬
; the. costto the Treasury of carry* ceeded current, asset? by over shares of 7%
the 13? coupons dated f_ June
preferred stock, $100
S ing the debt, thus adding to bank
ments. It designated the Bank of 1940 to and
including June 1,1946,
$243,000,000. Balance sheet defi¬ par value, at $110 per share; 69,earnings which are already very
and that
such coupons will be,
cit was more than $68,000,000 or 623 shares of 6% preferred, at $110 Mexico to represent the Mexican
large.
almost equal to the par value of per share; 78,621 shares of 5 y? % Government in. all
payable June 1, 1946, subject to
dealings with
j The way banks in this country
the
Executive
Order
8389" as:
the common stock of $74,360,000. preferred, at $107.50 per share,
the Fund and Bank.
The same
have been permitted to buy Govamended.
Even at that time profitable oper¬ and
?,%
promissory notes due
;
; ernment securities of their own
"Diario Oficial".published changes
The Foreign Bondholders Pro¬
ations were not in sight for, as it 1946-48 in the amount of $1,590,000.
choosing is,in sharp contrast to
in the organic law of the Bank Of tective ..Council, Inc.,- states that •
subsequently transpired, the road
,
■
Jersey Central P. & L
Bonds & Stock Offered
,
Interest
Bonds
Aniwerp 5%
Brought to Bale
.
..
British and Canadian methods of
debt management.
Those coun¬
tries have determined the amount
of bank credit they would use and
the rate they would pay.
They
have confined their bank borrow-
.
ings to short-term
at what,
J understand, is a % % rate, and
prohibited banks' owning other
':
paper
government securities except as
'
Until some adequate control can
fee exercised over the amount and
; i
our
commercial banking system can
hold, it would .be inadvisable to
,
i make available to the market for
the purpose
of absorbing surplus
^ money additional long-term
*
;
securities, even though they are not
eligible for banks to buy, because
the eligible securities held out¬
losses in 1939 and
in 1940.
It is
inconceivable that in any
(College Gives
with
Other type of
tors, who had received neither ? President Truman received an¬
principal nor interest payments other honorary degree, a doctorate
for about five years,
would will¬
ingly allow the old owners of a
company so
thoroughly bankrupt
the Rock Island was in 1939,
have any further say
in the man¬
agement or to obtain any share
the assets
in
or
to
the future
in
earn¬
ings of the company. And it is
most improbable that in the case
of
an
Courts
f industrial
would
stockholders
to
company
allow
the
former
any part
the
recover
of the
equity in the company un¬
der the conditions set forth.
It
would appear that the stockhold¬
ers of such a railway as the Rock
including
Mexico,
Jewell
business, the credi¬ President Truman LL.D.
as
related to savings funds.
kind of Government securities
showed large
of
laws, this time from William
Jewell College, at Liberty,
Mo., on
amendments
regard to the currency re¬
serves,
the definition <: of foreign
exchange,
and
the
like.
These
amendments provide for provision
of the funds required
btition to; World
for contri-
Fund and the
May 20,/ Speaking extemporary
Bank by the Bank of Mexico, .the
eously to the graduating class, the
President
was
reported by the refunding- of which will be guar¬
Associated Press to have declared: anteed
by the; Mexican7 Govern¬
"The United Nations will be
a
ment.
The law also permits .the
success because it must.
What we
Bank of Mexico to nominate with
need now are people who are will¬
ing to work for the things they
are for." The speaker at the com¬
mencement exercises, Dr. Manley
O. Hudson,
the; approval of the; Minister of
l^nance^^e^Mexican
Professor ^oLInternarr- ,tivf ^ vp«^he'; Fund
tional Law at Harvard University,
hailed Mr. Truman's record in
his
Bank:
The
placed
upon
reserve
represeiita-
r ecalled
punctually
paid
service
on
that Antwerp
and: fully
the :
its bonds until the war
intervened.
The last interest pay-
requirements
the Bank of Mexico,
•
•
the coupon dated 7
1939; and the last sink-:
ing fund payment was made in
April of 1940. Tt, is understood •
that suggestions have already b£err *
made by the City, as to the sinking fund payments, and the Council ;
hopefully expects satisfactory ar-»
rangements will he made for the:
due retirement of. the remaining ment
was' for
Dec.' 1,
^9,544,000 City of Antwerp bonds ;
presently outstanding.
^ Of the European obligors who
were not^ able to make payments
and op . the,r >on,:therr*>dollar bonds-during the
of the banks would in all
first year in the White House, ac¬ has been fixed at not less than
probability be sold to the banks Island have no * legal or moral cording to a report to the New 25
% .ot the. total notes issued and
and the proceeds used to purchase right to expect to obtain any con¬ York "Herald Tribune." asserting:
in
the reorganization "Not once have you been stam¬ of sightobligation s in ,'national
the higher yielding new issues sideration
from the Treasury.
Even though proceedings. !
peded by the tumult around you. currency for which the bank is
In the event that the Wheeler
the funds thus obtained by the
Not
once
have
you
lost your liable,, except the account in na¬
Government were used to pay off Bill is approved in its present
equanimity or judgment or fal- tional currency of the Internashort-term maturing debt largely form, it is easy to foresee the dif¬
if tered in your faith."
ficulties
that
; v
tionay Monetary Fund.
\,
might
occur
;held by the banks, the banks
side
it wiir be "
Antwerp is the first to provide funds to brihg its interest
war,
payments up to date. The Council feels that in meeting this ob¬
.
.
•
.
ligation the City of Antwerp has 7
taken a step which is highly com- •
mehdable, -andmuch
the
to
"
will
•
had in the
do
r
-
•
City
lent it $10,000,000 in
when' they
1928.
which
confirm the faith which
bondholders
?
'wZ'Z'Z
t.
;su.a •■■>••/'••■.■■.:• u::-. -v :''■«'
Volume 463
'■
.:-V>
.:
>'.«•;■.:.■••■ vf
■•
■,
7
ZZZ '• ■
-
r\
&.'1 p
THE COMMERCIAL & FINANCIAL CHRONICLE
-:x?rf?zr :rrt''
.:V-7.
•
jt#l :jimvi*r
J^um1bei:;T4494.?
^
7777?7'777^7/r:7
777;^\7
v^;i. ■■;';j<r.v..ji; 4*; >:,,.<y. ^:
■J--:/7
■:.■;■'■■'•■'>h'
:^.rt-:.^:i
v>"
2963
*'
S7;
Securities
Air
;<*>7 '77' .7 ':•■• 7"Tr.' •r--;
7i;Vy.T* ,^7 V':
\
•'
7' ''.'*>■>
f'-'■■■:<> '•'■
■>
7. '■"■
<
77
;■
bills payable. 7. r 7
v
*;
•"77.7•;•7> '-J, /':.X 77
the sale might b^; in Violation Of section 5 Of the 1933
Securities Act.
Present filing is to remedy this situation.
•
7-7 -•?/■:.iv■*:•. *'!'•'•-
Allied Stores Corp.
."»
■
^
.\
-yj,.
'7.\
••
*
,77»''*«;
7
•
at
one
close
of
share for each
will extend for
on
stock
date
•
.
All
cumulative convertible preferred stock (par $50) Underwriters—G. H.
Walker
&
Co.
Offering—Common stockholders Of.
record May 9 have the right to subscribe to new pre¬
ferred at rate of one share of preferred for each four
shares of common held at $52 per share. Rights expire
May 29. Unsubscribed shares will be purchased by un¬
Del.
of
for thbir shares.
exchange offers
American Airlines, Inc., New York
(6/10)
•
f.
,
stock
of
Mid-Continent.
•
Furniture Co.,
(6/17)
Offering—Preferred
offered to
and
common
Stocks
public.
the
Prices by amendment.
being sold by six stockholders iri♦cluding Central Republic Investment Co., A. C7 Aliyn
and Co., Inc., and Lee Higginson Corp. The latter two
companies and Central Republic /investment Co', (one! of
the selling stockholders) propose to participate as un¬
derwriters in connection with the public distribution Of
Mass.
are
the stocks. Proceeds—Net proceeds to the company from
the sale of preferred will be applied to the redemption
9,148.5 shares of preferred stobk at $105 plus divi¬
general funds. Business-
dends, Balance will be added to
warehousing.
construction
of
a
fishing; quick frozen fruits, vegetables and
and public cold storage
other foods;- sardine canning/
winter
of Norway Mountain,
• v
V
(N. Y.)
Brooklyn
Union Gas Co.
general mortgage sinking and
improvement fund bonds due Jdne 1, 1976, and 100,000
shares of cumulative preferred stock ($100 par).
Under¬
writers—To be filed by amendment.
Probable; bidders
include Halsey, Stuart & Co., inc. (bonds only); Harriman Ripley & Co.; and Mellon Securities Corp. (jointly);
The First Boston Corp,; F. S. Moseley & Co., and
May 3 filed $34,000,000
Atlas Distributing Co.,
®
Inc., Baltimore, Md.
Ma^; 22:; (letter of • notification) 1,000 shares preferred
stock (no par) and $100,000 5% debentures, due 1956,
Offering—Bribe is $100 a share for preferred and $500
Not underwriten,
Proceeds—For
for each debenture/
business expansion.
Otis
Maintenance
Aviation
:
■
'7
■■
"v;
'
•.
Awful Fresh
-v;
:7'"-- l'r
/'.V;1-
'•»;»,
■
/-V;.••••;
,i
••
7
MatFarlaHO, Oakland, Calif.
..
♦•-7'
(6/1)
May 13 filed 12,000 shares of 6% cumulative preferred
&
(stock only). Proceeds—Company plans
Co,
,
to refund its entire
Corp./ Van Niiys, Calif.
outstanding long-term debt, to reim¬
expenditures made for construc¬
burse the treasury for
fMby 6 filed 493,750 shares of common stock (par $4).
Underwrlters^-Livingstone & Co.
Offerlhg-^Price to
public $4 per share*
Proceeds—For machinery, tools,
furniture, fixtures, etc. and for Working capital. Busi¬
ness—Sales service and storage of planes. 7
<v
man
.
be
Commercial
Proceeds—For
sports resort on the South slope
known as Arapahoe Basin, Colo.
Business-
May 20- (letter of notification) 5,000 shares ($1 par)
common stock on behalf of O.; D* Ford, board Chair¬
of the company.
Offer is a recission ^)ffer to deal¬
ers to whom stock was sold.
The company previously
Corp., Chicago
15,000. shares of cumulative convertible
preferred stock (par $100) and- an unspecified number
of shares of common stock (par $5), Underwriters—By
Common shares
Arapahoe Basin, Inc., Denver, Colo..
for each
Inc., Martinsville, Va.
Fisheries
29 ifiled
derwritten.
transportation.
American
Booth
May 24 (letter of :hotificatioh) 70,000 shares common
s ock (par $1).
Offering—Price $1 a share. Not un¬
'
Air
•
! May
of
•
.
March 21.
amendment.
The company proposes lo issue
1% shares of its common stock in exchange
common
Inc., Boston,
filed
15
Co. from five stockholders.
Of the 852,302 shares,
150,000 Were sold privately at the cost price to Allen
Co.
Purchase price to Allen Was $2.10 per share,
rbffering—Price $3.50 per share. For details see issue- of
Will
,
^
of
issued under
7 /
,
f
&
par). Offering—To be sold in units bf nine /shares" of
preferred and five- shares of common at $905 a unit.
Proceeds—Working capital to merchandise and service
boas, marine supplies and air planes.
*
share
Anchor Marine
;
<
702,302 shares of capital sibek value
S. currency to 50 cents
per share). Underwriters—Allen & Co.
The shares are
part of a total of 852,302 shares purchased by Allen
to bb sold for cash to underwriters,
April 4.
\
Miami, Fla.
(par 1 peso, equivalent in U.
Mby 28 (letter of hotification) 900 shares^^preferred 'stock
(par $100) and 500 shares of class A common stock (no
May 22 filed $40,000,000 sinking fund debentures, due
'1966, and 400,000 shares ($100 par) cumulative convert-?
ible preferred s ock.
Prices by amendment.
Under¬
writers—Kidder^ Peabody & Co.; Lehman Brothers;
Emanufel, Deetjen & Co., and; Glore* Forgdn & Co.
Proceeds—General corporate purposes including expen¬
ditures required in connection with "postwar flight
equipment program" involving an aggregate expenditure
of approximately $96,000,000*
Of; this amount/ approxi¬
mately; $19,000,000 has. been paid or accrued in first
three/months of 1946.
Company expects to expend:
approximately $24,000,000. during last nine months of
1946, approxima ely $33,000,000 in 1947, and approxi¬
mately $20,000,000 toihg 1948^ Short-terh^ank loahSi
now outstanding in amount of $25,000,000, obtained last
February, will be paid in connection with this financing.
A previous registration statement of the company cov¬
ered the maximum number of shares to be. issued by
American for the purpose of acquiring control of MidContinent Airlines, Inc./ subject to the approval nf the
■
Civil Aeronautics Board.
or
Business—/Dairy business. Stockholders on June 1, 1946
will approve charter amendment changing name .of com-*
pany from present name of ^Beatrice Creamery> Co, 7$o
Benguet Consblidated Mining Co., Manila,1 P. I.
Service Coi ahd
Stock not subscribed
are
new preferred not taken in
'ex¬
change. Proceeds—Net proceeds from the public saie,, Of
unexchanged, shares of: new preferred will be applied |o
the redemption on Aug; 15 "of all : shares of old preferred
not exchanged at $104.50 a share plus accrued dividends.
March
preferred stocks of Community and Ohio in exchange
For details see issue of
Not underwritten.
writers of all shares of
May 3 (letter/of. notification) 6,710 shares common stock
(par $10). The : shares are being sold by /certain stock¬
holders.
The price to the public is $12 per share.
Un¬
derwriter—Atwill & Uo^-will act; as agent in; connection
With the1 offering,
.
•
"7
r
Ohio Cities Water Corpi, and provide cash Working capi¬
tal.
Common stock is to be offered initially for cash
to commoif stockholders of parent and to public holders
Company is of¬
fering the stock beginning July 1,1946 at $25 per share.
Subscriptions will close Nov. 1, 1946. Proceeds will be
used for incorporation expenses and as capital in oper¬
f
;
.
American Water Works Co., Inc., N. Y.
(par $25).
(6/lY)
change offer is made subject to the purchase by under-
Belcher Oil Co.,
March 30 filed 2,343^105 shalea of common <par $5) plus
an additional
number determinable only after the re¬
sults of competitive bidding are known. Underwriters—
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The
First Boston Corp. (Jointly).
Offering—Price to public
by amendment. Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds (to
be sold privately) are to be issued to acquire certain
assets of American Water Works & Electric, liquidate
subsidiaries, CbmmUftity^ Water
Beatrice Foods Co.» Chicago
Beatrice Foods Co.
other plant
For details sbe issue of April 4.
{
Improvements*
two
•
term
a
ditional machinery and equipment and for
Philadelphia
May. 14 (Btterzo$'-Mo, ificatioit) $,000abates of -54%.
ation of business.
ProCCed^ProCeedSi tb^ether With
loan 'of* $1,250,000 and current funds will be used to
finance the purchase of a plant formerly belonging to
the Defense Plant Corp. for $1,750,000, purchase of ad¬
Allied Investm't & Discount Dorp.,
cumulative preferred stock
I.
March 29 filed 21,550 shares of 4Vs%
,
-
6
,
May 23 filed 100,000 shares of Common stock. Under¬
writers—Van Alstyne, Noel & Co.; Francis I. du P6ht
&Cq^ andCoUrts & Coi ^Offering^Stock will be offered
t6 'public.
Price by amendment.
Proceeds-^Approximately $400,000 Will be used to purchase five twinengihe aif craf$160,000 to replace previous expendi¬
tures for purchase of two twin-engine aircraft; $140,000
for purchase of spare engines and parts, and $65,000
for other expenses.
It also plans to use $75,000 for the
manufacture of 25 air pick-up units.
The balance of
proceeds will be reserved for future expansion. Busine$s—The company^ business is conducted by two divi¬
sions, the Air Transport Division and The Manufacturing
and Development Division/ which latter is an experi¬
mental and research department.
. /
"
.
;
.
May 29 filed, 59,862 shares of 3%% cumulative converti¬
ble preferred stock
($100 par).
Underwriter—Glpre,
Forgan & Co., Chicago. Offering—New preferred, will
be offered for exchange to holders of company's. $4.25
cumulative preferred stock on the basis of one shared pf
new preferred for each share of $4.25 preferred. Ther ex-
urtderwrherSi/Procfeeds-^Net pro^
American Screw Co., Providence, R.
derwriter.
Wilmington,
Inc.,
7'
capital, for purchase Of equipment, repayment of loans,
see issiie of April 4., 7 f
redemption of unexchanged shares
preferred * at $50 - a share: on 'June 28.
Business—
operates personal loan offices.
'
,
Aviation,
Canton, O.
/development, etc. For details
of
[ Business-^ompatty ahd subsidiaries qper*
American
Illinois, £t. Louis
cash adjustment.
Shales of preference
stock, not issued in the exchange offer/ Will be offered
a
department stores.
being offered for the account of Tr | G.
Stanley, the preferred at $25 per share and the commqn
$8.75 per share.
11
\
at
Barium Steel Corp.^ S. E.
to the public through
ceeds will/be used for
■■
determines
Investment Co. of
'7* ■'v"?- 7 i
Will receive a
period of 14 days. Proceeds—Net pro¬
ceeds will be added to the general funds and applied
to such purposes as directors may determine, including
•?prdyisionxfbri Additional vrinrking:^
increases in customers' deferred payment accounts aris¬
ing from the sale bf household appliances, etc., and prob¬
able increases in other accounts receivable and inven¬
tories, possible acquisitions :of additional Stores/ the im¬
provement and, modernization of properties presently
occupied by the company and its subsidiaries and such
other'corporate purposes as the board of directors may
ate 69
ft-:■ ■?'' ? 7%.7 ' •
\
j:
exchange basis of two shares of preference stock for
each share of preferred.
Preferred stockholders also
shares held of
seven
f. ; .;;:•./;; \ 7':
May 24 filed 9C)^)00 shared 5 % cohVeriibleJpreference 7 March 30 filed 350,000 shares of common stock (par $i.).
stock (par $25).
Underwriters—By amendment. Offering—Price to pubUnderwriters—Alex. Brown & Sons.
;
lie at market but at not less than $10 per, share.
Offering—Shares initially will be offered to holders of
Proceeds
its 5% cumulative convertible preferred s-Ock on an v —Payments to and advances to subsidiaries for working
registration state; meht becomes effective.
It is expected that the offering
to shareholders will be made on or about June 18, and it
business
f
of common are
(6/12)
29 filed 257,840 shares of common stock (no par).
Underwriter—Lehman > Brothers. i Offering—Stock is to
at the rate of
-rVi.^'t7 ^
American
••
(6/17)
be offered for subscription to holders of common
■
'"
'May
record
price, $12.302571 Underwriters—Scott, Horner
Masom In'c;, Lynchburg, Va,
Proceeds—To selling
Offering
&
* ■
.
''"7
stock (par $25) and 30,400 shares of common stock, (ho
par). ' Of the common stock 24,000 are reserved fqr
conversion of the preferred.
Underwriter—Stevenson,
-Leydecker & Co. Offering—Preferred and 64,000 shares
a/letter^of notification arid'was advised that
did not file
Capital Manufacturers Inc., Wichita, Kan.
May 20 (letter of notification) ■: 40,000 shares of cumula¬
tive convertible, 6% preferred stock ($5 par) /and 40,000!
shares' of 100 par common to be given share for share
with"sales of preferred.
Offering- price, $5 a share.
Underwriter—The issuer.
For added capital for acQuiring additional equipment and 'floor space and retire '
V
Registration
INDICATES ADDITIONS SINCE PREVIOUS ISSUE
•
•./••Vv-- iV7\:7>:7-
in
Now
tion purposes, ahd to provide funds
of a construction * program now in
7
for the completion
progress ahd one
bontemplated to be commenced in the immediate future
by the sale of $34,000,000 general mortgage bonds and
100,000 shares of preferred stock. In addition, a $1,000,000 bank loan will be obtained.
The company will/re,
;
(Continued on page 2964)
;
/
.
rvfrtr *""" v •'
IF
—
SPECIALISTS /N
—
Underwriters and Distributors
Corporate and Public Financihg
United States Government Securities
of
>
■
State and
-CV: 7, .7'^,' '■ '77 /
The
Boston
♦
48 WAU ST.,
Chicago
Chicago and other cities
77
r
*-
/
-;
i
^ Securities
Kidder,Peabody ^ Co.
Founded 1865
CORPORATION
•
T -7
■
C. J. DEVINE& CO.
FIRST BOSTON
NewYork
v'/ :'t-K/'7' 7^'
Corporate and Municipal
☆
Municipal Bonds
.
☆;
|
NEWYORK S, N. Y.
Boston
•
Cincinnati
Philadelphia
•
St. Louis
*
•
HAnover 2-2727
Pittsburgh
*
*'
Members of the 'New York and Boston Stock Exchange^N
Cleveland
]New York
San Francisco
ft
Ooston
Philadelphia
•
•
Chicago
\
(Continued from page 2963)
-
•
<
of May 2.
the sale of bonds up to noon
i
addition, $4,000,000 will be used to provide funds for
the construction program now in progress and contem¬
additional pro¬
plated, each involving the installation of
duction, pumping, storage and distribution facilities*
$udd Company, Philadelphia
.
(6/12)
7 May 24 filed for an undesignated amount of no par
common stock.
Underwriters—Carl M. Loeb, Rhoades
.
ufy Cq>, and.Blyth: &. Co.. Inc; .Offering—Shares will be
offered for subscription to common stockholders of rec¬
ord? on June 21 at the rate of one additional share for
each five common shares held.
Unsubscribed shares
".will be offered to the public by underwriters.
Proceeds
/:•:—To increase working capital and .to finance purchases
of additional machinery and equipment. Wi.h funds pro¬
vided: by short-term bank loans, the company was able,
;
fiqm January to the end of April, to purchase $4,300,000
of machinery and equipment.
The company intends to
r
,
^
/:
par).
sion and the
Underwriter—A.
Inc., San Francisco,
Becker
Cal*.
filed $16,000,000 first mortgage bonds due June
and 169,636 shares common stock ($1 par). Uh-
California Electric Power Co., Riverside,
amendment. Probable
bidders include Dillon, Read & Co.,: Inc. (bonds); The
Fijrst Boston Corp.; Halsey, Stuart & Co., Inc. (bonds);
KJdder, Peabody & Co., and Stone & Webster Securities
Cow* (stock).
Offering—Securities will be offered for
s#l$>at competitive bidding. Price to,public by amend¬
ment.
Proceeds—Redemption of first mortgage bonds
series; balance to general funds.
derwriters—Names to be filed by
share of
;
new
for each
common
Proceeds—Of the net proceeds,
$10,378,500 will be applied for retirement at 101% Oiit*'
standing promissory no.es to banks. Company plans to
maximum of
use a
$1,170,550 in the purchase, or to make
subsidiary/Detroit City Icq
6
Fuel Co., for redemption-at par ny that subsidiary
of all its first mortgage 4 % sinking, fund bonds, due
-
Underwriters—White, Noble & Co., Grand Rapids, Mich.;
F. H. Koller & Co., Inc., New York, and Miller, Kenower
& Co., Detroit.
Offering—Stock will be sold to public
at $6,125 a share.
Proceeds—Of the total eight stockholders are selling 73,208 shares and will receive net;
proceeds from these shares.
Net proceeds to the com- /
pany from the sale of 18,910 shares are estimated at
>
$97,763.' v Of this amount, $43,686 will be used to pay
balance due in purchase of certain real estate; approxi-*
mateiy $40,000 for plant addition, and $14,076 for addi*;
tional machinery and equipment. Business—Engaged in
manufacture of mouldings, stampings - and assemblies
for the automotive industry.
^
1948, of which the parent owns $224,200.
BusinessOperation of cold storage warehouses, breweries; manu¬
facture of ice-cooling appliances and making of ice
City Investing Co., New York (6/3)
April 19 filed $4,800,000 4% convertible sinking fund de¬
bentures due June 1,1961.
Underwriting—First Boston
Corp.
Offering—Company is offering to holders of
common stock of record May 17, 1946, the right to sub¬
tures for each 100 shares of common stock.
,
Price par (flat). Unsubscribed debentures
be sold to underwriters to be offered the public
price to be determined. Proceeds—Proceeds will be
added to working capital.
For derails see issue of April
25, p. 2262.
Carriers & General Corp./ New
York (6/15)
>\ J"
V
,
"
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V
V
V'
-
'xi
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i
H/1" 7
•*
[>f
,1* '
!*'/$%
V"
1
'
Corp., San Diego
(6/17)
>•}
■
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i*. ,\y
: v
>
-
,J'-? *<4*
^
'
i
Rochester, N. Y.
■'
(6/1)'
i
1
repay
|
loan, the proceeds of which were
used for !
Issue not underwritten, but! j
sell stock it may later secure
■
]
,
Eureka Williams Corp., Detroit
.
April 17 filed 17,000 shares common' stock (par ^ $5). i
Shares being sold by officers and employees or their i
relatives. Offering—2,000 shares optioned to <*. H. Ber-i |
nard to purchase on or before Aug. 23, 1946, at $7.625:
j
share, 15,009 shares to be sold at market from time to»7
time upon the New York Stock Exchange or the Detroit j
Stock Exchange by the owners of such shares. For de- I
tails see issue of April 18.
.
Consolidated Vuitee Aircraft
(5-,„
manufacturing purposes.
if company is unable to
broker's assistance.
(letter of notification) 150,000 shares class B
stock (par $1),
Offering—Price $1 a share (not
be
offered to the general public);
No underwriting. * Pro¬
ceeds—To increase working capital,
•
r
common
to
at
7
'
May 20 (letter of notificaion) 40,000 shares of
Rights ex¬
Spring Corp., Baltimore, Md.
70'
stock (par $5). Price to public, $5 per share.; Proceed#-^
To finance the manufac.ure of corporation products and
will
Comfort
i
i
pire June 3.
•
«.
Ducor Mining & MiIling
Electronic Traps, lnc.,
the basis of $500 of deben¬
on
v
Corp., Reno, Nev.
May 21 (letter of notification) 30,000 shares of commoa
stock.
Offering price, $1 a share.
No underwriting.
For purchase of mine machinery and equipment and.
for mining operations.1
'74,,
cream.
scribe for the debentures
*
•
•
May 22
J^Ujsiness—Public utility.
.
at the rate of one
10 shares outstanding.
common
plied by amendment.
.
Co., Medford, Ore.
Mat 24 filed 312,000 shares of common stock (no par).
Sfcck will be sold through competitive bidding. Under¬
writers—Names by amendment.
Probable bidders In¬
clude Blyth & Co., Inc.; The First Boston Corp., and
Inarriman Ripley
Co.
Offering—Stock is being sold
by Standard Gas and Electric Co., parent, of California.
•
Offering-
Co.
114,827 shares of
the
,
•7 California Oregon Power
(6/12)
&
stockholders will be given the right to subscribe
Unsubscribed shares, as well as the entire issue of debentures, will be offered to the public at prices to be sup¬
Calif*
ating expenses.
v
G.
^
that amount available to its
-May 21 (letter of notification) 1,500 shares ($10 par)
common stock.
Offering price, $10 a share. No under¬
writing'
To furnish and equip studio, to purchase
artist#! materials, for artists' compensation and for oper¬
May 10
1, 197,6,
i
for
induction heating division.
Bwfano's Studios,
#>.
~
common
the wheel division, the railway equipment divi¬
sipn,
»
,
,
expend an additional $6,700,000 for such purchases dur¬
ing the rest of this year.
Business—Company will
formed as a result of merger of Budd Wheel Co. and
Edward G. Budd Manufacturing Co. Operations are con¬
ducted through four divisions, the automobile body divi-
Thursday, May 30, 194(5
Denman Tire & Rubber Co., Warren, Ohio (6/5)]
Bids Invited—Company will receive bids for
June 10, coupon rate to be, h May 17 filed 50,000 shares of 5% cum. conv. preferred
| stock (par 10) and 95,000 shares ($1 par) common stock. '*
specified on the bids.
*
v
i
<
1
j
t
7 ft <>
J };'V * ^
'
Underwriters—Herrick, Waddell & Co., Inc. OfferingChefford Master Manufacturing Co., Inc., Fair*
Company is offering the 50,000 preferred shares to the
field, III. (6/10)
public. The 95,000 shares of common stock are issued
May 8 filed 40,000 5% cumulative convertible preferred
and outstanding and are being sold by the present own¬
shares (par 25) and 40,000 common shares (par $2).
ers.
Price to public; preferred; $10 per, shate; com¬
Underwriter—Cruttenden and Co.
Offering—Price Of
mon, $$ per share..
Purpose—Proceeds..will;be added
preferred is $25 per share; price. of common by amend-,
to general funds.
!
1
, '
1
ment.
Proceeds—$300,000 will be Used to discharge
Diamond T Motor Car Co., Chicago, III.
bank loans, $60,963 to discharge machinery purchase
notes and approximately $909,694 for additional work¬
March 29 filed 60,000 shares of conimph stock (par $2),
Shares are being sold by certain stockholders. Underwrit-,
ing .capital.
Business—Automobile replacement parts;
etc.
ets—Hallgarten & Co. Offering—Price based on market.
For details see issue of April 4.
•
City Ice & Fuel Co., Chicago <6/11)
•
May 23 filed $12,000,000 of 2%% sinking fund deben¬
Douglas & Lomason Co., Detroit, Mich. (6/17)]
tures, due 1966, and 11*4,827 shares common stock (no 7 May 28 filed 92,118 shares of common stock (par $2)/
7
$29,240,000 general mortgage sinking fund bonds,
3.%% series, due Sept. 15, 1969, and $11,850,000 25-year
4% sinking fund debentures, due Sept. 15, 1969.
In
deem
*
FINANCIAL CHRONICLE
THE COMMERCIAL &
2964
,
Flying Freight Inc., New York (6/10)
May 29 filed 77,134 shares of common stock (par $1).
Underwriters—Names by amendment. Offering—Shares
common stock (par $1). Un»'
derwriters—J. F. Reilly & Co^ Inc. Offering—Price t(>
May 6 filed 300,000 shares
to be issued upon
debentures, due
I960, at 103%.% plus accrued interest.
Business—In¬
the exercise of options allotted by
the company to its officers and supervisor executives.
Proceeds^-Company cannot presently determine whether
any of the optionees will purchase any of the shares or
whether they will offer public the shares subject to the
options. Business—Manufacture of airplanes and flying
vestment in securities.
i
)
boats.
May 27 filed $1,872,000 15-year 3% debentures, due 1961.
Underwriters—Paine, Webber, Jackson & Curtis,
Oftaring—Price by amendment.
Proceeds—For redemp¬
tion, of entire
issue of 15-year 3%%
are
public $3.50 per share. Proceeds^-Proceeds will be used ?
for the purchase of six land planes, ten flying boats, re-* 7
'
Busi-7
conditioning of flying-boats and working capital.
ness—Compa«yi*was incorporated
on
earrier7 '"
operate as a charter air
March 9, 1946, to [
"
T >
Food Fair Stores, Inc., Philadelphia
Ceiotex Corp., Chicago
($/3)
Crampton Mfg. Co., Holland,
April 26 filed for 100,000, shares common stock.
writers—Paul
H.
Davis
&
Co.. and
Union
Under*
Securities
Offering—Price by amendment.
Proceeds—To
provide in part for expansion program, etc. For details
see issue of May ,2.
Corp.
Central Electric & Gas Co., Sioux Falls, S.
I
Mich.
April 2.9 filed 40,000-shares of■ common stock ($1 par),,
issuable upon exercise of options.- to purchase, common
The options to purchase common stock entitle
the holders to purchase between Sept. 5, 1946 and Sept.
> 4, 1950, shares of common stock at $19.50 per share.
The options were granted on Sept. 5, 194^.
Proceeds—
In the event that all opdons are exercised, corporation
will realize $780,000, which it intends to use for in¬
creasing inventory, acquiring and equipping additional
supermarkets, warehouses, etc.
Business—Food stores.
(6/4)
May 3 filed for 240,000 shares common stock ($1 par).
stock.
Underwriters—Baker, Simonds & Co.
Offering—Price
public by amendment. Proceeds—Purchase of addi¬
tional machinery and equipment and to increase worktag capital. Business — Commercial die-castings and
hardware for plumbing fixtures, etc.
to
D.
Dayton Power & Light Co.
(6/17)
May 29 filed 35,000 shares of $2 cumulative preferred
May
stated value of $50 a
share, and 175,000 shares of common stock (par $1).
Underwriters—To be named by amendment.
Probable
bidders include Morgan Stanley & Co., and W. E. Hut-
Underwriter—Paine, Webber, Jackson & Curtis,
ton
stock, series A (no par), but with
a
cago. z Offering—The stocks will be offered to
at prices to be supplied by amendment.
Chi¬
the public \
Proceeds—Net
proceeds will be used to pay off a $3,000,000 loan from!
the First National Bank of Chicago and Harris Trust
and Savings Bank, Chicago, the balance will go to work¬
ing capital.
Ind.
(EDST),
i,*
June 5, at 61 Broadway, N. Y. City.
on
'
,
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•
May 23 filed
,
!
>
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•
.'-{•"
Union Gas
>
.
(
Co., which
owns
7
(par 500)
stockholders of Southern
of ciirrent or other
crude
liabilities.
the payment
Business—Production of
petroleum.
UNDERWRITERS—DISTRIBUTORS-^DEALERS
:
1':
The Marine Midland Trust Company
Industrial, Public Utility, Railroad
and
OF NEW YORK
Members New York Stock Exchange
new york
albany
pittsburgh
chicago
trenton
>
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•
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trade
name
»
'
Franklin Simon & Co., Inc., N« Y.
r
1
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(l
(6/3)
May 14 filed 50,000 shares of cumulative convertible pre*
ferred (par $50) and 70,000 shares of common (par $1). Of
the total covered, the 50,000 shares of preferred and 60,000
Lee Higginson Corporation
INVESTMENT SECURITIES
Hemphill, Noyes CS. Co.
philadelphia
7/
'
i
the
under
marketed
1
^
;
Municipal Securities
Transfer Agent
.
•
cleaner
"SCOOP."
i
all of the outstanding com¬
be added to cash balances to be applied to
company
%
stock of the corporation..; Proceeds—Proceeds will
mon
which
household
Offering—Shares will
underwriters.
common
<
(6/11)
175,000 shares common stock
be offered for sale to
writers—By amendment.
Probable underwriters in-:»
Halsey, Stuart & Co. Inc.; First Boston Corp.;
Stroud & Co,
Proceeds—Redemption of first mortgage
3.%% bonds; construction fund.
For details see issue
1
'
Delhi Oil Corp., Dallas, Texas
Corporation, New Yprk (6/11)
175,000 shares common stock (par 500)
is selling 150,000 shares and two
officers 12,500 shares.
Underwriters^-First Colony Corp.
Offering—Stock will be sold to public at $5.85 a share.
Proceeds—Proceeds to company of $733,125 will be used j
for construction of a $200,000 plant at Rahway, N. J.,
and $300,000 for purchase of equipment, balance for
working capital.
Business—Manufacture of a general
of
1,530,000 shares of Dayton common
Bids will be received by-Columbia up to 11 a.m.
stock.
'u
FR
May 23 filed
for the purchase of
Underwriters—No
elude
•
and Lehman
considered June 5
has issued invitations for bids to be
will be
rate
Inc.,
Co.,
($7 par).
Bids invited—Columbia Gas & Electric Corp.
April 25 filed $3,250,000 first mortgage bonds.
Bonds
sqld at competitive bidding with the interest *
being named, by the successful bidder. : Undej>>>
shares cofnmon stock
(jointly) j Blyth &
& Co.
Brothers.
•
Central Indiana Gas Co., Munice,
filed 1,530,000
1
indianapolis
"
•
Registrar
ONE HUNDRED TWENTY
SS'Si4S'V7
Trustee
;
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Underwriters, Distributors
BROADWAY
NEW YORK 15, N. Y.'
^";:7::
*
rector 2-2200
;•
V;-Sv." J/'S"
-77 7
"7>-':
•
and Dealers
'!
NEW YORK
washington
•
•
•
•
•
•
f
77
BOSTON
CHICAGO
yolume 163
sharesof
Number 4494
to
will be offered
common
10,000 shares of
THE COMMERCIAL & FINANCIAL CHRONICLE
to the public,
and
h
will be offered at $20 per share
Underwriter—W. E.
Offering—Prices to public by amendment.
common
certain officers
Hutton & Co.
and employees.
New Issue Calendar
Proceeds-^Hedemption
of 21,339 outstanding shares (ex*
eluding treasury shares) off •■•'•7% cumulative preferred
stock at $115 per-share and accrued dividends,
For
details see iss.ue of May 16.^ 'V
;
(Showing probable date of offering)
June 1,
•
present.
Proceeds—To
drill
oil
well
and .to pay
in
gas
Investors
Inc., New York
May 22 filed 500,000 shares of
:
—
Powdrell & Alexander Inc.™-
Business—Open-end
I management type.
investment
June 3, 1946
Celotex Corp.———————Common
.
(6/10)
i.j.uj. i Xl>011
Gatineau Power Co., Ottawa, Ont.
.
BIyth & Co., Inc., and Mellon Securities Corp, Offering
-Series C bonds and debentures, on which principal and
are payable in U. S. Currency, will be sold at
competitive bidding. The principal and interest on the
series D bonds are payable in Canadian currency.
Pro¬
ceeds—Net proceeds, together with proceeds from pri¬
vate sale in Canada of $7,000,000 of serial debentures,
will be used as follows: redemption in U. S.*
currency
on or before Aug. 10, 1946,' of $52,500,000 first mortgage
bonds, 3%% series A, due 1969, at 104.5% and $1,980,000
of promissory notes at 100.5%; redemption in Canadian
currency on or before Aug. 10, of $9,370,000 first mort¬
gage bonds, 3%% series B, due 1969, at 104.5%; $1,200,000 Z3A % serial debentures at 101%, and $6,000,000 3% %
Hoffman
o
King-Seeley Corp
•
Proceeds—Net pro-
Douglas & Lomason Co.
Common
Ohio Edison Co.———————Common
-
Riegel Textile Corp.———--———Preferred
Salt Dome Oil Corp.--Certificates of Interest
Bonds, Pfd. & Common
——Capital
Sardik Food Products-
—I
Verney Corp.
Dividend rates by amendment.
Glacier Frozen Foods
of proceeds
Balance
will
be added to
Stock
Common
—
general funds.
Business—Production of food products.
v
Gulf Atlantic
•
-
<•
proximately 200,000 shares have agreed to waive •their
preemptive rights. Postponed indefinitely. For details
see
-
issue of Jan. 24.
•
Gulf States Utilities Co., Beaumont, Tex. (6/12)
.
May 24 filed' $27,000,000 first mortgage bonds, due 1976.
Underwriters, by amendment.
Bonds will be sold at
Glenmore Distilleries Co., Louisville, Ky. (6/12)
&
Webster
bidding.
Probable bidders
Securities
Corp.;
The
First
include Stone
Corp;;
Boston
Halsey, Stuart & Co. Inc.; Blylh & Co.; Harriman Ripley
& Co.
Proceeds—Net proceeds, together with a $2,000,000 bank loan will be used to redeem its $27,300,000
May 24 filed 150,000 shares of class B (par $1) common
(non-voring). Underwriters—Glore, Forgan & Co.,
and W. L. Lyons & CoK Offering—125,000 shares will
be offered,to the public and 25,000 will be offered to
certain officers and employees of the company.
Price
by amendment. Proceeds—Net proceeds will be added
to general funds to be used as working capital. Business
—Distilling beverage spirits.
stock
Atlanta, Ga.
$lju
Underwriters-AAllen & Co. have withdrawn as under¬
writers.
Offering—Price to the public by amendment.
Stock is being offered initially to present shareholders
at a price to be filed by amendment.
Holders of ap¬
competitive
•
Transport'n Co., Jacksonville, Flu.
Jan. 17 filed 270,000 shares of common stock (par
Inb., Philadelphia (6/10)
' May 27 (letter of notification) 125,000 shares of Class A
common stock (par $1). Underwriters—Not underwritten
but securities will be sold by officers and directors of
corporation.
Offering—Price to public $2 per share.
Proceeds—Operate business as well as purchase or erec¬
tion of own plant, purchase of machinery, etc.
of first mortgage
due 1969.
v"'" 7.',
and refunding bonds, series D 3%%,
\•
,,v>i
'7 7. AA
Hanson-Van Winkle-Munning Co., Matawan, N. I.
(6/11)
;
April 24 filed 1,250,000 4%% sinking fund debentures
Gold City Porcupine Mines, Ltd., Toronto, OnL
and 105,000 shares of common stock ($3.50 par).
Of
Jan. 4 filed 600,000 shares of common stock (par $1) ' the common stock 39,400 shares are being sold by the
Canadian
corporation and 65,600 shares by certain stockholders.
currency.
Underwriters—No
underwriters
Underwriters—Maxwell, Marshall & Co.
Offeringnamed.
Offering—Company is offering common stock
Debentures are being offered at 100 and the common
to public at 50 cents U. S. currency per share.
If com¬
stock at $10,625 per share. Proceeds — Approximately
pany accepts offers from dealers to purchase the stock,
$600,000 will be used to retire first preferred stock .at
company will sell to such dealers, if any, at 32.5 cents
U. S. currency per share for resale at 50 cents. U. S.
$40 per share, $600,000 for payment of bank indebtedness
and $143,500 for the purchase of additional lanc| and
currency per share.
buildings. For details see issue of May 2.
>
•
Grocery Store Products Co., Union City, N. J.
(6/15)
7
Harrison Wholesale Co., Chicago, III- (6/3-5)
;
Nashville, Tenn. (6/10)
21 filed 50,000 shares (no par) cumulative preferstock and 64,030 shares ($1 par) common s.ock.
nderwriters—Smith, Barney & Co., New York. Offer¬
g—Preference stock will be offered to public but comstock
initially will be offered for subscription to
common
stockholders
at
rate
of
one
share
of
for each 10 shares held.
Unsubscribed shares
f
common
will be purchased by underwriters and
ffered to public.
Prices by amendment.
Proceeds
roceeds
May 27 filed for
sale
of
common
stock will
be
added
to
Rubber
Co., Akron, O.
(6/1)
13 filed 25,000 shares of cumulative preferred stock
$100)
and
25,000 shares
Underwriters—No underwriters
Garbisch, President for purchase of
shares.
•
A
of record
June 20.
rants will expire on July 10,
gage
any
with Edgar
unsubscribed
Offeririg-^-Stock will be offered for subscription
to stockholders
may
General Tire &
undesignated number of shares of
bu'; company has entered into an agreement
W.
general
unds to be used from time to time for such corporate
urposes as directors may determine.
7
r
an
capital stock (par 250).
from
preference stock, together with other
unds, will be used to redeem company's $4,800,000 15ear 3%
sinking fund debentures, due Dec. 1, 1959, at
04^
(exclusive of accrued interest).
Net proceeds
ay
Common
Co., and Ball, Burge & Kraus.
Offering—Price to
public by amendment. Proceeds—Reduction of bank
loans, reimbursement of the treasury for expenditures
made in the acquisition of interests In related business
and for additional working capital.
For details see issue
of May 16.
Corp., Chicago, III. (6/3-4)7
General Shoe Corp.,
par
-Preferred and Common
Central Electric & Gas Co.—Preferred & Common
Consolidated Vultee Aircraft Corp.
Common
&
urposes.
rom
—---Preferred;
Boo.h Fisheries Corp
Common
Bonds, Pref. and 2nd Pref.
(par $100).
———Common,
Beatrice Foods Co.—
Common
—
-Capital Stock.
1946
Allied Stores Corp.
Underwriters—Kidder, Peabody & Co.; Goldman, Sachs
16 (letter of notification) 19,984 shares of common
riock. 4 Offering price, $6 a share.
Underwriter—Genral Finance Co., Atlanta, Ga.
Proceeds—For corporate
ommon
June 17,
Preferred and Common
Mead Corp
y,
on
United-Rexall Drug Co.——
Debenture and Preferred
Iowa Public Service Co
,
resent
Grocery Stores Products Co.—Capital Stock
Glacier Frozen Foods, Inc.--—-Class A Common
International Minerals & Chemical Corp.—Common
eeds—To^ retire outstanding 6% cumulative preferred
nce
Common
10, 1946
General Shoe Corp..
tock, Series B, $761,000; remainder approximately $3,94,0U0 will be added to general working funds.
For
etails see issue of May 9.
;
r.
y
Carriers & General Corp.—-u--——Debentures
Gatineau Power Co.———-Bonds and Debentures
Sterling Electric Motors Inc.-—Debenture & Com.
Fundamental Investors Inc.
"ay 3 filed $1,250,000 15-year 4% subordinated debenures, Series B, and 60,000 shares 4% cumulative conertible preferred stock, Series C (par $50) and
180,000
hares of common (par $1) reserved for conversion of
referred.
Underwriters — Paine, Webber, Jackson &
urtis.
Offering—Price to public by amendment. Pro-
General Securities Corp.,
——Common
Common
Corp.
Flying Freight Inc.-i———
eeds to the company will be added to general funds.
usiness—Manufacture of dry batteries for farm and
V
1946
Preferred
-
ay 23 filed 145,024 shares common stock (par $1),
f which company is offering 25,000 shares and 21 stockolders 120,024 shares.
Price to public by amendment,
v
1946
June 15,
7, 1946
June
ferred stock
1946
—Preferred and Common
June 14*
Chefford Master Mfg. Co—Preferred and Common
Central Indiana Gas Co
Bonds
Lockwood, O.
■
June 13,
Miles Shoes Inc...—~
Common
American Airlines Inc
i:•;
.,
Wayne Knitting Mills——v.—Common
Common
June
(6/5)'
Co;———-—Bonds
Meyercdrd Co;
Corp
'A',-' *
Twin Coach Co,—A—Preferred
6, 1946 A
Missouri Power & Light Co.—Bonds and
United Cigar-Whelan Stores Corp
Marathon
Common
Hudson Motor Car Co.——————Common
Debenture
Brothers
,
.
General Finance
Radio
Michaels
v
Price is presently
radio and portable radio sets...
June
.
Preference
——
Gulf States Utilities
*
expected to be not less than
unit (one share of first preferred and one share
f second preferred). <?/ / »
ome
Co.
—Capital Stock
Willys-Overland Motors Inc.—Preferred and Com.
150 per
nderwriters—Smith, Barney & Co.
June 12, 1946
California Oregon Power Co.--Common
Glenmore Distillers Co.
—Class B Common
Union Carbide & Carbon Co
May 17 filed 150,000 shares of 4% cumulative first pre¬
ferred stock (par $100): and 150,000 ; shares of 4% cUmuia've convertible second preferred stock (par $50).
Tinderwriters^—Blyth & Co.,; Inc.
Offering—Holders of
150,000 outstanding shares of 7% cumulative preferred
stock are offered the privilege of exchanging
their;
shares for 150,000 shares of
#the first preferred stock
and 150,000 shares of the second preferred on basis of
one share each (plus a cash adjustment) for each share
f 7% preferred.
Shares of first and second preferred
ot tkken in exchange will be sold to
Blyth & Coi, Inc.,
nd associates for resale to the public.
Price by amend-
Dry Batteries, Inc.,
Budd
.
77 Tuscon Gas, Electric Light & Power Co.,
(12 noon EDST)
..—Common
transmitting, distributing and selling electricity.
General
.''
American Investment Co. of Illinois
Philadelphia Electric Power Co.-'———Bonds
•-
/
,<
——Debentures
Preferred and Com.
General Cable Corp.—
Preferred and Common
Menasco Manufacturing Co
.—Common
Business—Generating,7
.,,,|g(6/ii)
Common
—--Common
June 5,
Socony Vacuum Oil Co. Inc
—Common
———
Corp.—X-—
-^--Common
General DryBatteries Inc.——Common
Hanson-Van Winkle-Munning Co.—Debs. & \jota.
Denman Tire & Rubber Co
•
interest
ent.
Delhi Oil Corp
Common
,•
1946
A.^AAA
Dayton Power & Light Co. (11 a.m. EDST)—Comu
A
Common
Debentures and Common
FR
-
elude The First Boston Corp.; Halsey Stuart & Co., Inc.;
General Cable Corp., New York
Preferred and Common
Crampton Manufacturing Co
Lemke (B. L.) & Co. Inc
National Bellas Hess Inc.——^
Seggerman-Nixon Corp.,
11, 1946
Chy Ice & Fuel Co.—
June 4, 1946
(6/15)
May 27 filed $45,000,000 series C and $10,000,000 series
D first mortgage bonds, due 1970 and $9,500,000 of sink¬
ing; fund debentures,^ due 1961.
Underwriters-*-To be
decided, by competitive bidding.
Possible bidders in-
debentures, due * 1949 at 103%.
June
All American Aviation Inc.-
_< inrmnun
vO.
Common
-Common
Wisconsin Electric Power C°.-.ABonds & Preferred
Wisconsin Power & Light Co.—
Common
United Investors Corp.——Certificates
7
■
•
V* liOicSaic
Milier-Wohl Co. Inc.-
limited
the
of
.
U. S. Airlines Inc.
__
stock (par $2).
Offering—-To be
trust
United Printers & Publishers
City Investing Co.—Debentures
Franklin Simon & Co. Inc—Prefered and Common
General Finance Corp
Debs., Pfd. and Com.
Proceeds—For investment in securities.
,
.
..••...Common
United Grocers Co.....M......M^M«M.JDebentures
common
Underwriters—Hugh W. Long & Co.
Isold at market.
Co.—Common
—
Common
Purex Cprp. Ltd.--..----Capital Stock
Sutherland Paper Co..,——Common
|jJnion Wire Rope Co
—Capital Stock
Nutrine Candy Co.—
Houston Oil Field Material Co. Inc.—....
Common
122Bast 66th St. Inc.—
Debentures
Albany
interests
officers' salaries and general expenses.
Fundamental
Narional Gypsum
jLatcupine
„
10, 1946
Namm's Inc.———-————Common
xraps inc. 1....__-:L_->-_-A
Common
General Tire & Rubber Co._-Preferred and 2d Pfd.
Front Range Oil & Drilling Co., Denver, Colo.
May 20 (letter of notification) 1,493,303 shares of capital
stock (par 50) and
20,000 shares as a bonus offering '
donated by Harry, J. Newton, President. : Offering-^
Price 50 a share.
100,000 shades allotted to present
shareholders to purchase, at par anu receive also - a *
20 % share bonus with eadh
purchase. No underwriting '
County, Wyo., to acquire further oil and
June
1946
Awful Fresh MacFarlane—Preferred and Common
•
at
2965
1946.
Subscription
Arenberg, President, 73,000 shares, and Louis Sisskind.
Vice-President and Secretary, 12,600 shares.
Under¬
writers—Brailsford & Co.
Offering—Price to public
$9,625.
!
^
.
war¬
Subscription price
be paid either in cash or by surrender of first mort¬
7 Hayes
Manufacturing Corp.,7 Gr, Rapids, Mich.
Feb. 27 filed 215,000
6% bonds, due 1953, at principal amount, or partly A Shares
in cash and partly by surrender of such bonds.
Proceeds
convertible second pre- A —For redemption of $646,200 6% first mortgage bonds.
,
April 30 filed 85,600 shares of common stock (par $i).
Shares are being sold by two stockholders, Albert L.
are
being
shares of
sold by
common
stock
($2 par).
certain stockholders.7 Stock
acquired by selling stockholders in exchange for 432,000
(Continued
on page
2966) 7
-
THE COMMERCIAL & FINANCIAL CHRONICLE
2966
Lemke
(Continued from page 2965)
shares
stock (par $3) of
American Engineering
Co. Underwriters—To be named by amendment. Offering
—Price to public by amendment.
Stop order hearing
by SEC, For details see issue of March 7.
common
(B. L.)
& Co., Inc., New York (6/4-5)
May 22 (letter of notification) 80,000 shares of common
stock (par 500).
Offering—Price, $3.62% a share. Un¬
derwriting—F. R. Lushas Co., New York. Proceeds—For
purchase of land and erecvion of factory; purchase of
chemical
•
Hennegen-Bates Co., Baltimore, Md.
and
May 23 (letter of notification) 1,504 shares of stock to
be sold on behalf of eight stockholders. Offering price
$75 a share. Underwriters—Safe .Deposit & ..Trust Co. of
Baltimore as agent for selling stockholders.
Net pro*
ceeds go to the selling stockholders.
Vv
•
l'' '
■'
1
"
'
u'
'
v
^
>.*
f
*
■||| Hoffman ladio nofp., Los Angeles (6/6-7)
March 30 filed 120,000 shares conunon stock (par
$1);.
U nderwriters—Cohu &
Torrey. Offering—Price to pub*
Proceeds—$97,125 to redeem preferred
.stock and .approximately $400,000 to retire short-terra
bank
borrowings; balance for working capital.
For
lie $6 per share.
details
see
issue of April 4.
Houston
(Texas
) Oil
Field
May 13 filed 1QQ,Q0G 5har.es of
Material
Co..
Inc.
(par $1). Under¬
.common
writers—Dallas JRupe & Co.j-Dittmar jfo iCo:; IDewar, Rob¬
ertson & PancoasU. Fridley & Mess; Creston H. Funk;
Milton R. Underwood &
Co.; Rauscher, Pierce & Co.,
Inc.; Pitman & Co., Inc.; Gordon Meeks
Co.; Dallas
Union Trust Co.; Moroney, Beissner & Co., and
"Rotan,
Mosle & Moreland. Gffering—Price to public by amend¬
ment.
•
issue of May 16.
see
Howard Industries, inc., 'Chicago
(letter of notification) 20,000 shares ($1 par)
stock.
Company has granted rights to Ray T.
Haas, President; EHing J. Hansen, Vice - President;
iJoseph T. Zoline, .Secretary-Treasurer, .and George H.
Lyons to purchase 5,000 shares each of its.common stock
at $2 a share.
No underwriting.
For working capital.
(6/12)
April 26 filed 226,973 shares: of common stock (no par):.
Underwriter—W. E, Button & ;Go.
Offering—Common
stockholders of record May 27 are given the right to
subscribe
to
the
additional
stock
-share for-each
one
at
seven
June
11, 1946.
Proceeds—Refunding, reimburse com¬
pany for expenditures in financing a new company,
enlargements and improvements to present plants. For
details see issue of May 23.
Menasco
two
Chicago
Corp,,
stockholders
and holders
of
stock
purchases
war¬
rants for
subscription at the rate of one common share
for each five shares held.
Price by amendment. Under¬
writers will purchase unsubscribed shares plus an addi¬
tional 65 shares. Underwriters may *or may not,as they
determine, make a public offering of unsubscribed
shares. The remaining 14,000 shares of common stock
will be offered to.'"certain officers and
employees."
•Proceeds—Construction and equipment. For details see
issue of May 23.
:
preferred and
common
on
the basis of
one
Iowa Public Service Co., Sioux
at
competitive ^bidding and the
common
improvements
.to physical properties, additional
working capital. For
jdetails see issue of May 23.
i
10,000
exercise of options granted
George Markelson and Irving Isaacs. Underwriters—
& Co., and Reynolds & Co.
Offering—Price to
public by amendment.
Proceeds—To replace working
capital exended to redeem class A and B first preferred
stock; balance will be used to increase merchandise
inventories, finance instalment sales, etc. For details see
issue of May 2.
Jet Helicopter ^Corporation, New York
May 21 (letter of notification) 45,000 shares ($1 par)
stock.
Offering price, $2.50 a share.
Underwriters—
E. M. North & Co. Inc.
For working capital, salaries,
office equipment, engineering costs and
other general
Cooperative
Wholesale,,
Minneapolis
May 8 filed 10,500 shares of series D non-cumulative
4% preferred stock (par $100).
Underwriters-7-No un¬
derwriters. Offering—Price to public will range from
,$100 per ;unit in January, February and March, 1946,
to $103 per units in October, November and December,
1946.
Proceeds—To pay off first mortgage loans and
for
par) cumulative preferred stock,
($15 par) common stock. Underwriters
stock will be offered for subscription to
present common
.•stockholders at the rate of one new share for each
Three shares held.
Proceeds—Refunding
♦
(6/6-7)
to
Midland
operating capital.
'v " ' [
Co., Kansas City, Mo.
May 20 (letter of notification) $95,000 of no par commoj
capital stock.
Offering price, $100 a share.
No under
writing. As cash operating, capital. V
•
Mutual
Income
Foundation, Detroit, Mich.
,
May 24 filed 2,000 fully paid certificates of pwpershi
and 4,000 periodic payment certificates of ownershij
Sponsor—Mutual Income Fb'ufidationi Inc., Detroit. Of,
Proeeed^For investment. Busiuee
fering—At market.
Namm's lnc.,
:
?
w
Brooklyn, N. Y.
(6/10)
May 3 filed 100,000 'shares common stock (par $1). r.Th
statement also covers *45,000 'shares vof common issuabl
upon^the iexereisoioft^ri'aht^^Un
styne, Noel & Co. -Offering—Price to public by amend
ment.
Proceeds—Proceeds
will
added
be
to
genera
corporate fiinds and used, as conditions permit, .ifp.
purchase of additional inventory, etc.
For details se
issue of May 9.
National Bellas
J
'
Hess, Inc., N. Kansas City, Mc
(6/4)
April 22 filed 397,644 shares common stock ($1 par*
Underwriters—Emanuel, Deetjen
& Co.
Offeringr
Company is offering to holders of common stock f
record May 20 the right to subscribe to the addition^
stock at $5 per share at rate of one share for each fiy
shares of common held.
Rights expire June 4.
Pro
ceeds—Will be added to working capital.
For detail
see issue of April 25, p. 2264.
National
Gypsum Co., Buffalo, N. Y.
(6/10)
May 21 filed 275,000 shares ($1 par) common stock. Up
derwriters—W. E. Hutton and Co., and Blyth & Co., In<
Offering to be based
construction
of
two
on
new
market.
plants,
Proceeds—Costs f£
For
etc.
details
sp
issue of May 23.
•
National
Iron
Works, San Diego, Calif.
May 21 (letter of notification) 18,500 shares of commq
stock.
Offering price, $4.12% a share. Underwrite
Nelson Douglass.
For general corporate .purposes.
Nutrine
Candy Co., Chicago
(6/10)
May 21 filed 200,000 shares of common stock (par $T[
Underwriters—Stifel, Nicolaus and Co., Inc. The «tocs
is being sold by seven stockholders. Offering—Price I
amendment.
For details see issue .of May 23.
For details see issue of May ;9*.
•
Ohio Edison Co.,
Akron, O.
(6/17)
May 29 filed 204,153 shares of common stock (par $8|
The stock will be sold at competitive bidding with name
of underwriters by amendment.
Probable bidders Ai
elude First Boston Corp.; Glore, Forgan .& Co.; Whit
Weld & Co.-Shields & Co. (jointly); Morgan Stanley^
Co., and Stone & Webster Securities Corp., Proceeds
Net proceeds will be used to finance construction
property additions. Company said it expects "to spend ap¬
proximately $5,000,000 during 1946 for the constructs
of ordinary property additions and an additional $7,009
000 Tor the^-totsdlatioh bf^^ approximately 60,000 skU<
watts of steam-electric generating capacity.
•
122 East 66th Street, Inc,
New York
(6/1)
May 27 (letter of notification) $300,000 registered 3i
.debenture bonds, due .Oct. 1, 1982. Underwriters—Ncunderwritten. Bonds are offered exclusively to membe)
of the Cosmopolitan Club, New York. Price—>$100. Prt
ceeds—Pay off mortgage when due and to exchange Tt
bonds presently outstanding at 5%.
' .i
.
Paulsboro
March
29
(N. J.) Manufacturing Co.
filed 9,886
shares 6%
,
f
cumulative preferrc
(par $100); 31,000 common stock purchase warrants an
31,000 shares of common, issuable upon the exercise
the warrants.
Underwriters—Butcher & Sherrerd, Phi!
Offering—1,886 shares of 6% cumulative prt
ioffered in exchange (one new share for 1
shares of 4% preference stock ($10 pail
together with all dividends accrued .thereon.
Exchan^
offer is conditioned on purchase of remaining 8,0
shares of 6% .cumulative preferred and of the $1,0
common stock purchase warrants by underwriterr Pr<
ferred
Inc., New York (6/13-14)
April ,29 filed 23,444 shares of cumulative preferred (par
$100) and 56,267 shares of common stock (par $1). The
shares are to be sold by five stockholders following a
recapitalization of the company in May.
Underwriters
—Weriheim & Co., and Lehman Brothers.
Offering—
Price to public will be filed by amendment.
;
Miller-Woh! Co.,
Inc., New York
(6/3-7)
April 29 filed 40,000 shares 4%% cumulative convertible
preferred (par $50) and 50,000 shares common stock
(par, 500).
The common stock is outstanding and is
being sold by four stockholders.
Underwriters—Allen
Co* -Offering—Price to public by amendment.
Pro¬
ceeds—Construct and equip additional stores; working
capital. For details see issue of May 2.
are
old shares) for
ceeds—Purchase
or
construction
machinery and equipment.
of April 4".
essary
of
a
plant
and
ne«;
For details see issi
Pennsylvania-^Dixie Cement Corp., N. Y.
April 25 Tiled 80,000 shares capital stock (par $7). TJ:
named.
Offering—The 80,000 shar
issue upon the exercise of warrar
issued to holders of common stock of Ge
derwriters—None
are
reserved
which
were
for
eral Cemeht Corp. in
connection with a merger of th,
corporation into Pennsylvania-Dixie effective Dec. 2
The warrants are exercisable on and after Jtnj
1945.
J
King-Seeley Corp., Ann Arbor, Mich. (6/10)
May 21 filed for an unspecified number of common
shares (par $1). Underwriters—F. Eberstadt &
Co., Inc.,
and Watling, Lerchen & Co.
Proceeds—To increase gen¬
corporate funds and partly to reduce bank loans.
gor details
'
Moore
adelphi'a.
Miles Shoes
expenses.
eral
;
stock held in
served for issuance upon exercise of warrants, and
City, la. (6/10)
by amendment.
Probable bidders include
Halsey, Stuart & Co. inc. (bonds); First /Boston Corp.;
WV C. sLangley & Co. (stock); A. C. Allyn & Co., and
Blyth & Co., Inc. Offering—Bonds and preferred stock
sold
common
treasury To
shares for issuance upon
—Names
be
Meyercord Co., Chicago (6/14)
Michaels Brothers, Brooklyn
($100
and 137,333 shares
•will
at
April 30 filed 100,000 shares of common stock (par $1);
•also ^60,000 -additional rshares of -Which 50,000 are re¬
May'21 Tiled $13,750,000 first mortgage bonds, due 1976;
shares
held
facture of decalcomania and allied products.
share
preferred and :% share of ^common for each
;share of 5% preferred.
Exchange offer will terminate
July 1. For details see issue-.of May 2.
42,500
shares
Burr
new
.
five
certain key employees at $5 a share.
Proceeds—Net proceeds will be added to general cor¬
porate funds to be used to maintain larger bank balances
and for other corporate expenditures.
Business—Manu¬
International Paper Co., New York
of
each
May 27 filed 100,000 shares of common stock (par $5).
Underwriters—Kebbon, McCormick & Co.
Offering—
public.
Price by amendment.
In addition, the company plans to sell 20,000 shares of
common to L. H. Knopf, President of the
company, and
3.0,000 shares .to H. C. Castle, Vice-President, at the same
.price The .common shares are sold to underwriters. It
its
Inc., Montclair, N. J.
•
•Shares will be offered to
April 26 filed 400,000 shares of $4 cumulative preferred
stock (no par)
and 100,000 shares of common stock
(par $15). Offering—Company is (Offering to holders cof
uts
cumulative convertible 5%
preferred stock (par
$100) the right to exchange 400,000 of such shares Tor
mew
for
Unsubscribed shares to be offered to
also will sell 477 shares of its
May ,21 filed 145,834 shares of common stock (par $5).
Underwriters—White, Weld & Co. Offering—Company
iproposesto issue 131/769 Shares 4hitially to present com¬
mon
shares
$4 per
public by
underwriters at not less than $4.75 nor more than $10.
Proceeds—To repay unsecured bank loans; to pay first
instalment on purchase of plant from RFC; balance to
be added to working capital.
•
(6/10)
new
share.
Hydraulic Products Co., Chicago
May 9 (letter of notification) 120,000 shares 7% cum¬
ulative preferred (par $1) and ,30,Q00 shares vCommon ($l
par). Price to public of unit consisting of 4 preferred
and ^one -common, $10. No underwriting. For acquisi¬
tions, working capital, .etc.
Manufacturing Co., Los Angeles (6/5)
May 17 filed 370,000 shares of common stock.
Under¬
writers—Sutro & Co., and G. Brashears & Co.
Offer¬
ing—To lbe offered initially to shareholders in ratio of
Rights expire 3 .p.m. ^EDST) June 12. Purposeaugment working capital.
For details see issue of
May
■'
ri'
International "Minerals & Chemical
Montclair Homes,
:
A, and $5.50 cumulative preferred stock, series B,
on a share for share exchange basis, plus a cash pay¬
ment.
Second preferred shares initially will be offered
Tor subscription to common stockholders of record on
To
.
•
May 21 (letter of notification) 2,423 shares of series J
($25) preferred stock, of which 600 shares are : to b
offered immediately.
Offering price, $25 a share. Fo
,(J6/1Q)
unsubscribed shares of second preferred, Drexel
Co., and Harriman Ripley & Co., Inc.
OfferingBonds will be sold to public.
Preferred stock will be
offered to holders of $6 cumulative preferred stock,
held.
.
Corp.,ChilIicothe, Ohio
and
$22 per share at
shares of common
Proceeds—Principally^refundingr'-For- detail
issue of May 23.
—Investment irust.
and
•
the rate of
(jointly).
see
general corporate purposes.
(6/7)
May.,21 filed $12,000,000 first -mortgage bonds, due 1966;
70,000 shares ($100 par) cumulative preferred stock and
101,056 shares ($50 pat) cumulative second preferred
Stock, the interest and dividend rates by amendment.
UjnderwritersTorbonds, unexchanged shares of preferred
common
Co., Detroit, Mich.
Rothschild, Wis.
bank loans
Peabody & Co.; White, Weld & Co., and Shields & Cc
series
May 16
Hudson Motor Car
repay
;
Mead
Proceeds—Proceeds will ibe used to augment the
For details
Marathon Dorp.,
equipment;
May 23 file d420,000 shares of common stock (par $6.25).
Underwriters—Lee Higginson Corp.
Offering—Price by
amendment.
Proceeds—Gf the net proceeds, $10,143,000
will be used for,redemption at 103% of $9,800,000 3%%
sinking fund debentures, :due 1959; $1,950,000 to com¬
plete construction of Canadian pulp mill; $1,500(000 to
construct a building at Menasha, Wis.; balance for work¬
ing capital and purchase of additional equipments Busi¬
ness—Operates plants producing paper, plup and paperboard and plants manufacturing food packaging special¬
ties.
(6/1)
working capital.
as
•
manufacturing
working capital.
Thursday, May 30, 194<
see
issue of May 23.
..
n
>•
;;
Missouri Pr.& Lt. Co.,Jefferson City, Mo..
(6/10)
May 22 filed 7,500,000 first mortgage bonds, due 1976,
and $4,000,000 ($100 par) cumulative preferred stock.
Bonds and stock to be sold through competitive bidding.
Underwriters by amendment.
Probable bidders include
Halsey, Stuart & Co. Inc. (bonds); The First Boston
Corp.; Blyth & Co., Inc.; Coffin & Burr, Inc.; Kidder,
1,
1946, ;and on and before May 31, 1949, at $20 p.
share.
For details see issue of May 2.
Pennsylvania Electric Co., Johnstown, Pa.
March
21 filed $23,500,000 first mortgage bonds, di
1976, and 101,000 shares of cumulative preferred stoc
series C, par $100. Securities will be sold at competitiJ
V.
ridding, and interest and dividend rates will be filed
by amendment. Underwriters—By amendment. Proba¬
ble bidders include Halsey, Stuart & Co,,. Inc.. (bonds
bnly); Smith, Barney ,& Co. (preferred only); Kuhh,
jLoeb & Co., and Lehman Brothers (jointly).
--Prices to public by amendment.
>f March 28.
V -J
'':
•
'•.
■
'
•••
•
.
Philadelphia (Pa.)
For details
v*
'
A
see
issue
'-'v'* Vf
v
Electric Power Co. (6/5)
>rincipal and interest by Susquehanna Power Co. Bonds
be sold through
competitive bidding.
Probable
Ivill
&
Co., Shields & Co. and White, Weld & Co.
jointly); Morgan Stanley & Co. Purpose—Refinancing
program.
For details see issue of May 23*
Pittston Cq*» Hoboken, N. J.
ent.
Proceeds—Payment of promissory notes aggre?ating $8,000,000. For details see issue of May 16.
-
||
(6/1)
.
.
.
&
V,
l
Alexander,
!"■
Inc.,
Conn.
Danielson,
13 filed 82,316 shares of common stock (par $2.50).
are being sold by certain stockholders. * Uitder"ter—Blyth & Co., Inc.
Offering—Price to public
\y
hares
$1). Uh«
derwriters^-Floyd
Cerf &, Co, Offering—Holders of
common stock, 7 % preferred stock and $2.50 cumulative
preferred stock are given right to subscribe to new
shares
common
at
of
rate
one
share
of
common
23
Corp. of Texas, Fort Worth, Tex.
(letter of
notification) 5,332 shares 6% pre$25), owned by Keystone Pipe &
upply Co., Butler, Pa.
Offering—Keystone proposes
exchange four shares of the stock for one share of
stock
(par
for
each two shares of any such stock held. Price by amend¬
Proceeds—Purchase of additional machinery and
equipment for modernization of present facilities, etc.
For details see issue of April 4,
Seggerman-Nixon
Corp.,
New
York
(6/4)
May 27 (letter of notification) $100,000 10-year 5% de¬
bentures due 1956."The issue is not intended to be of¬
fered to the public and only at principal office of com¬
pany in New York City. Price—$500 per
—To be u£ed for working capital in the
business,
unit. Proceeds
conduct of the
v
Sslver CapitoL
•
Miiiing Co.
May 22 (letter of notification) 600,000 shares of common
stock.
Offering—Price 20 cents a share,
Underwriters
ends
For
Corp., Spokane, Wash. Proceeds—
exploration development work in mining property.
(6/5)
May 17 filed $100,000,000 30-year, 2%% debentures, due
June 1, 1976. Underwriter—Morgan Stanley & Co. Offer¬
ing—Price to public by amendment. Proceeds—Proceeds
together with treasury funds will be applied to the
Purex
21
Corp., Ltd., South Gate, Calif.
Proceeds—To pay
bank loan, additions and imFor details see issue of May 23.
Riegel Textile Corp., New York (6/17)
29 filed 50,000 shares preferred stock, series A (no
ar). Underwriter—Dillon, Read & Co. Inc. Offering—
y amendment.
Proceeds—Net proceeds will be applied
the repayment of $2,000,000 of 90-day notes held by
entral Hanover Bank and Trust Co., New York, relaining proceeds will be added to general funds. Busiess—Textile products, principally cotton.
Reliable Oil Development Corp., Brooklyn, N* Y*
24
,ock
(letter of
(par $1).
notification)
Offering—$1
a
90,000 .shares common
share. Underwriters—
aiah S. A. Cooper, President will handle the distribuand sale of the securities.
Proceeds—For prospect-
on
in oil, gas, petroleum
g
on
lease held in Brazoria, Tex.
.
Steep Rock Iron
20*1946, to Morgan
the
Proceeds—Proceeds will be applied to
develop¬
For details see issue of April 4.
-
Corp^, Houston, Texas (6/17)
filed certificates of interest for 800,000 certifi-
tes in
overriding royalty in oil, gas and surplus. Underiters—Cohu & Torrey, New York, and Yarnall &
Co.,
'ladelphia. Offering—Company is offering the cer-
icates of interest to stockholders
record June 1
sis of oiie share interest represented
on
thereby for each
of common stock held at 58 cents per share.
pire June 17 at ,3; p.m.
loping. For details
see
Rights
Proceeds—Exploring and deissue of April 4.
Saridik Food Products Corp., New York (6/17)
•
29 filed 175,000 shares of capital stock (no par),
derwriter—George F. Breen, New York. Offering—
ock will be offered to public at
$16 a share with unrwriters receiving a commission of $2 a share. Of the
al being offered company is
selling 155,000 shares and
e remaining 20,000 shares are
being sold by two stocklders. Company is reserving 7,143 shares out of the
5,000 for possible sale to F. Gladden Searle, Bronxle, N.X, and Piatt F. Searle, Indianapolis, Ind. Pros—Net proceeds to the company are estimated at
$2,,000. Company will use approximately $160,000 to re-
working capital which amount was spent to
rchase two plants at Shirley and
Middleton, Ind. Adional $50,000 will be used to purchase
equipment and
a
plant at Kirklin, Ind.
Re¬
ining proceeds will be applied to the purchase of adional plant, equipment and to increase
working capi*
Business—Dehydrating foods.
see
issue of April 4.
Stephens-Adamson Mfg. Co., Aurora,
•
•
Twin Coach Co., Kent,
ir-
(6/12)V
O.
May 24 filed 85,715 shares ($35 par) $1.50 cumulative
Convertible preferred stock.
Underwriters—Underwrit¬
ers are headed by
Reynolds & Co. and Laurence M»
Marks & Co.
Offering—Stock will be offered to public.
Price
by amendment.
Proceeds—Company £ will use
$500,000 for purchase from the War Assets Adminis¬
tration of a hangar and other properties located at the
Buffalo (N. Y.) Municipal Airport which will be con-*
Verted into a mariufacturihg plant for producing inter¬
city coaches and urban motor coaches. It will expend
$600,000 for certain machinery, equipment and tooling,®
and $110,000 for ihachine tools for its subsidiary, Fageol
Products Co.
Balance will be added to working capital.
Business—Manufacture of transit type motor coaches.
Union Carbide & Carbon Co., New
York (6/5)1
May 17 filed 463,889 shares of capital stock (no par).
Underwriters—None. Offering—Shares are being offered
by the corporation to certain officers and employees ofi
corporation and subsidiaries pursuant to the terms and
provision of a stock purchase plan. Offering—Price by
amendment.
construction
Proceeds—Acquisi.ion,
Union Wire Rope Corp., Kansas
and
For
equipment of manufacturing and other facilities.
details see issue of May 23.
subscribe
to
the stock at
expire June 10.
City (6/10)]
$15,50 per share. Rights
<
.
United Cigar-Whelan Stores Corp.,
N. Y. (6/6-7)]
May 10 filed 400,000 shares of common stock (par 30c).
Underwriters—Allen & Co. Offering—Initial public of¬
fering price will be determined by a formula. Proceeds
—To reimburse company for amount spent in acquisi*
tion of the Dade Pharmacies and Dade Cut-Rate Liquor
Store, for redemption of shares of prior preferred stock,
working capital. For details see issue of May 19.
United Cigar-Whelan 'Stores Corp., N. Y.
May 14 filed 50,000 shares of cohvertible preferred stock.
Cumulative dividend, $3.50 per annum (par $100). Under¬
writers—Allen & Co.
III.
Offering—Prior preferred stock¬
holders will be given privilege of exchanging such shares
for shares of new convertible preferred stook at rate of
four shares of prior preferred for one share of con¬
vertible preferred with a cash
Convertible
adjustment.
preferred not issued under the exchange offer will be
public at $100 peV
share.
For details see issue of May 19.
;
sold to underwriters and offered to
Sterling Electric Motors, Inc., Los Angeles
.
May 27 filed $500,000 15-year 5% sinking fund deben.,-tures, due 1961, and 29,709 shares common stock (par
Offering
Debentures will be sold to public at $1,000 each and
at $3.50 a share.
Each $1,000 of debentures will
common
have attached
a
purchase of 100
detachable stock purchase
common
holders of ihe company
warrant for
In addition, four stock¬
will sell to the principal under¬
shares.
writer warrants for
19,591 common shares at 7 cents a
Proceeds—Net proceeds to company, estimated
warrant.
at
$532,097, will be used to finance construction of
United Grocers Co., Brooklyn
machine
an
tools; to retire current bank loans and equip¬
ment notes and to increase
working capital.
(6/1)
April 25 (letter of notification) $300,000 5% debentures
dated June 1, 1946; due June 1, 1956.
Offering—To be.
offered by company to stockholders and customers; also
exchanged for $75,000 6% bonds to be :redeemed July
1, 1946.
Price, par.
Proceeds—Proceeds will be used
as follows:
payment of bonds, $75,000; construction of
new building, $150,000; mechanizing warehouse equip¬
ment, $25,000; working capital, $50,000.
United Investors Corp., Denton, Texas
additional factory building; to purchase equipment and
Business-
Manufacture of electric motors.
(6/3)]
May 14 filed $1,000,000 investment trust fund certificates,
in units of $10 and up, in multiples of $10.
Offering—
At market.
Proceeds—For investment,
Business—A,
management investment company.
Sutherland Paper Co.,
Kalamazoo, Mich. (6/10)
May 21 filed 57,400 shares ($10 par) common stock,
Underwriters—4farris, Hall & Co, (Inc.).
OfferingStock initially tvill be offered for subscription to present
common
each
.
five
ment.
stockholders.
shares held.
on
basis
of
one
Subscription
Unsubscribed shares
will be
new
share
for
price by amend¬
offered to ^public
through underwriters.
Proceeds—To repay outstand¬
ing term-loan notes amounting to $1,500,000, improve¬
ments and .additions.
For details see issue of May 23.
•
•
United Merchants
York
Trailer Coach Corp. of America, Los Ang., Calif.
coaches.
*
(letter of notification) 128 shares of common
(par $1). To -be offered at $75 per share and
sold through the facilities of the New York Stock Ex¬
change. Securities are being offered for purpose of con¬
verting scrip certificates issued by company on or about;
May 15,1944.
May 27
•
United
Printers and Publishers
May 22 filed 165,656 shares ($1 par) common stock.
Underwriters—A. C. Allyn & Co., Inc.
Offeringr-Stock
will be offered to public.
Price by amendment. Pro¬
ceeds — $3,500,000 will be used to redeem its 100,000
shares of outstanding cumulative preference stock at $35
a share.
Balance will be added to general corporate
funds.
Business — Operations carried on under various
divisions including the manufacture and sale of greet¬
ing cards to retailers, art calendars and direct-mail ad*
V
*
r
-
,
-
Transcontinental Moving & Storage Co.,
•
Cleveland, Ohio
May 24 (letter of notification) 2,200 shares class A non¬
voting common stock (par $100) and 800 shares class B
voting common stock (par $100). Offering—Price for all
of the class A
the
(Inc.), loliefe
(6/10)
vertising material,
•
Inc., NeW,
& Manufacturers,
(6/29)
stock
lit.
May 20 (letter of notification) 1,250 shares ($1C0 par)
preferred stock and 1,250 shares (no par) common stock.
The common shares are to be issued to Charles R. Nolan,
an officer of the company, for services
rendered, and
to, be rendered, to the corporation.
Offering price for
preferred, $100 a share. No underwriting. For acquir¬
ing property and engaging in the manufacture of trailer^
burse its
$75,000 to purchase
For details
May 20 (letter of notification) 12,000 shares ($25 par)
common.
Offering price, $25 a share. No underwriting.
For manufacturing plant rehabilitation and expansion.
ay
out
Proceeds—Net proceeds will be
corporate purposes.
Salt Dome Oil
are
Ont«, Can.
(par $1).
public by
added to
general funds and will be available for generai
amendment.
of Toronto to
work, etc.
arch 28
Ltd.,
UfeiP* Underwriters—Maxwell, Marshall & Co.
purchase 500,000 treasury shares
500,000 treasury shares at 40 cents
r share, payable in Canadian
exchange. Mr. Kemerer
s assigned to Mark Daniels, 371
Bay Street, Toronto,
consideration of $1, the former's right and
option to
rchase 300,000 of the 500,000 shares optioned to Mr.
emerer at 80 cents per share.
Mr. Daniels plans to
arket the shares optioned to him
through the medium
a registered broker or brokers in the United
States,
fering—Price to public is 40 cents per share, U. S.
nds.
office, No. 70 Pine St., New York, N. Y., before 12 noon
(EDST) June 5.
i
_
30 cents per share and
ed
Mines
March 27 filed 500,000 shares of capital stock
Underwriters—Otis 6s Co. Offering—Price to
(6/15)
arch 27 filed 300,000 shares of common stock ($1 par)
nderwriters—Not underwritten. Company has granted
emerer
the purchase from it of 147,000 shares, as a whole, of
the common stock (no par) of Tucson.
Such bids are
to be presented to; Federal Light & Traction Co. at its
to
May 9 filed 117,000 shares of common stock (par $2)
and options to purchase 111,800 shares of common.
Un¬
derwriters—No
underwriting.
Offering—101,500
are
issuable or have been issued under options.
In addition
company expects to grant options to purchase 15,500
shares of common stock to certain of its employees.
Rockridge Gold Mines Ltd., Toronto, Can.
exclusive option dated Feb.
Ripley & Co.; The First Boston Corp./Bid3 Invited—Federal
Feb. 4 filed 42,000 shares capital stock (no par). Under-*
writers—P. W. Brooks & Co., Inc., New .York. Offering
-^-Stockholders of record May 24 will have the right
ay
ay
clude Harriman
Light and Traction Co.
Probable bidders in¬
amendment.
Spiegel, Inc., Chicago
and
(6/10)
165,000 shares ($1 par) capital stock,
nderwriters—Blyth
&
Co.,
Inc.
Offering—100,000
ares
are
being sold by 24 stockholders and 65,000
ares are being sold by
company.
Price, by amendent.
Underwriters—By
Business—Production, transportation, refining
marketing of petroleum and its products.
filed
rovements, etc.
Tucson and is owned by Federal
june 18 of $50,000,000 serial notes due 1950-55 at 100 and
($100 par).
interest.
ay
147,000 shares common stock (no par).
Stock constitutes all of the outstanding common stock oJ
--Standard Securities
redemption of $50,000,000 25-year 3% debentures, due
preferto prepayment about
s
/
March 29 filed
ment.
Socony-Vacuum Oil Co., Inc., New York
ay
'
;
Light & Traction Co. is inviting sealed, written bids for
Segal Lock & Hardware Co., Inc., N. Y.
March 30 filed 738,950 shares of common (par
y amendment.
rred
,.
Tucson (Ariz.) Gas, Electric Light & Power Co4
.y-
1
Public Service
..
2967!
Seaboard l^uif Co., Inc^ New York
•
$7,000,000 15-year 4% debentures due
Vpril 1, 1961, and $1,242,300 20-year 5&% cumulative
ncome debentures due Jan.
1, 1964.
Underwriters-*
31air & Co., Inc.
Offering—Priee to public by amenda
Powdrell
•
May 27 (letter of notification) 58,000 units, consisting
pf 58,000 shares of convertible class A stock and 29,000
shares of common stock. Underwriters-Hilly ;Tbdmp^drr
& Cot Offering—To be offered in units of one; share
class A stock and l/z share of common at $5.10 per unit.
V
bidders include, Halsey, Stuart & Co. Inc.; Kidder, Pea-
VTay 9 filed
.
and Blyth & Co., Inc.. (jointly).
••''J
V.
Offering:
[May 17 filed $30,000,000 first mortgage bonds, series
lue 1975/ guaranteed unconditionally as to payment of
oody
'
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4494
Volume 163
class
B
common
$100
a
share and for 395 shares of
$100 a share.
Not
Proceeds—For expansion of operations.
common
underwriter
United-Rexall Drug, Inc.,
Los Angeles (6/15)\
May 27 filed for an unspecified number of shares of $2.50
par capital stock.
Underwriters—Dillon, Read & Co.,
Inc.
Offering—Stock will be offered to the public. gZ
Price by amendment.
Proceeds—Net proceeds will pro¬
vide funds for acquisition of retail drug stores or
(Continued
on page
2968)
com-v
\''h
.J-t
"■
■
panies manufac.uring merchandise normally sold in
stores," for enlargement and remodelling of retail
stores operated ,by its subsidiary, United-Rexall
Co.; arid for ' increasing working capital.
Operating retail drug stores.
drug
~
drug
Drug
"
7T-7--^ :'v,j '"•T-*
>
•
subscribed for or exchanged^
shares; pf' its? old rserial'
preferred:stock; 4% % series.'?
j
of
St. Petersburg, Fla. (6/10)
new
serial preferred not
c:
stockholders will be
share of-new serial preferred
The subscription offer to common
at the rate of
$2,965,000 > estimated'net proceeds! (if
all shares are subscribed for),I the company will> use
$685,522 to redeem,on July. 15 its 13,497 shares of pre-/
ferred stock.
The remainder will be added to general
funds. Business—Manufacturing women's full-fashioned
hosiery*:
>
Aprjl I 23 filed; 9UU,000 shares/ common stock (par $1),
and 300,000 stock purchase warrants, of which 150,000
•
Whittaker (Wm. R.) Co., Ltd., Los Angeles; Cal.
have been issued to Harry R. Playford, President, and
May 20 (letter of notification) ; 12,000 shares ($1 par).
150,000 will be issued to underwriters. ..Underwriters—
R.*H. Johnson ^ Co.
Ofierinff—Price to public $3.25. ^capital stock.; Offering Iprice, $2 a share., No. under-;
writing, * To increase working, capital.v
per. shares Proeeeds^rTo pay principal and interest .,on
bank loan, to finance purchase of additional aircraft,
Willys-Overland Motors,Vlnciij' Toledo, O. (6/5)
equipment, etc.; and for working capital.
- /
* **;*"
■■■
dnl d shai^erfor-share; basis; for
Proceeds-—Of the
*T
U. S. Airlines, Inc.,
-
for
Jholders at $20
Business5
•■''"j -'i~'*'
subscription to? present"stohka. share, in;the ratio of!one additional
share for. each share -held. - * Unsubscribed; -shares; Will
not be reoffered or sold at this time, the company said.
Vbe * offered
'•$
*
(Continued from page 2967)
Thursday, May 30, 194$
•
THE COMMERCIAL & FINANCIAL CHRONICLE
?96S
^*****4*W.
1/lQth..of
a
for each share of common held. "The
right of
subscrip-j
the consummation of the exchange of-j
fer and, to the sale to underwriters of all shares of new,
serial preferred stock not subscribed for or required to
effect exchange. Proceeds—Refunding.
•;
-m '
tion is subject to
•,
Wisconsin Pr, & Lt. Co., Madison,
Wis.
(6/10)!
May. 21 filed 55Q,0Q0 shares ($10 par) -conimon stock tc;
competitive -blading;
Underwriters—Bj|
^ be. sold; pt
amendment;.?• Probable, bidders -include Merrill Lynch
Pierce, Fenner & Beane; White, Weld & Co.; Glore|i
Forgan & Co., and Harriman Ripley ■&- Co. (jointly)I
The Wisconsin Co., and Dillon, Read & Co.
Proceeds—j
May 17 filed 155,145 shares of cumulative preferred
Part of the shares are to be sold by Middle West Corp.(
•
United Utilities & Specialty Corp., Boston
stock, series A (no par), convertible on or before Dec.
> 31, 1953), and 310,290 shares of common stock ($1 par).
top holding company of the System, and part by prefj
May 22 (letter of natification) 75,000 shares ($1 par)
erence stockholders of North West Utilities Co., parent
Dividend rate on preferred by amendment.
-Under¬
Capital' stock; Off ering^Price $.3,875, Underwritersof Wisconsin, who elect to sell such shares of Wisconsin
writers—Kuhn, Loeb & Co., and E. H.. Rollins & Sons,
Donald Young & Co., Inc.
For additional working cap¬
Inc.
common which will be distributed to them upon the
Offering—Company is offering to stockholders
ital.
dissolution of North West Utilities Co.
I
rights to subscribe for the series A preferred at rate of
one share for each 16 shares of commob held.
Price
•
Verney Corp., Boston, Mass. (6/17)
;
Yank Yellowknife Gold Mines, Ltd., Tor., Ont.
by amendment.
Certain stockholders will not exercise
May 29 filed 150,000 shares of common stock (par $2.50).
Feb. 13 filed 600,000 shares of common stock (par $1)
■> their rights with respect to 46,773 shares of the series A
Underwriters—Names by amendment.
Offering—Price
Underwriters—J. J. Carrick, Ltd., Toronto, Canada^. Of¬
preferred, which together with shares not subscribed for
ifcy. amendment. Company said that of .the shares being
fering—Price to public 25 cents per share, United States
by other stockholders will be sold to underwriters for
Offered an unspecified amount is owned by selling stock¬
funds* For details see issue of Feb. 21.
possible resale^ to public.
Company is also offering
holders and the remaining shares are to be issued
to
rights to its stockholders to subscribe for 310,290 shares
the several underwriters upon conversion of company's
York (Pa.) County Gas Co.
of common stock at rate of one new share for each
5% cumulative convertible preferred stock owned by
May 8 filed $1,700,000 first mortgage bonds, due 1976
eight shares held.
Similar rights with respect to the
the selling stockholders. Proceeds—Net proceeds will go
Will be sold at competitive bidding.
Interest rate b:
preferred and common stock are being offered to holders
to selling stockholders,: however, company will have
amendment. Offering-^Price by amendment. Proceeds
of outstanding options.
Proceeds—Net proceeds will be
eliihinated an unspecified number of shares of, its'5%
added to the general funds.
—Refunding. For details see issue of May 9;
preferred. Business—Manufacture of rayon fabrics and
vs
•
-
.
J
*'
synthetic yarns.
N
Wisconsin Electric Power Co.,
of capital stock (par $1—
Underwriters—Willis E. Burnside & Co.,
New York.
Offering—Offering price to public 28 cents
United States funds. For details see.issueof.Aug. 2,1945.
June 24. filed 220,000 shares-
.
Canadian).
•
Wayne Knitting Mills, Fort Wayne, Ind.
(6/12)
May 24 filed- 150,000 shares-($5 par) common stock.
Underwriters—No underwriters. - Offering—Shares' will
?
ijjfi
I
.
May 22 filed $50,000,000, first mortgage bonds, due 1976,
and 260,000 shares ($100 par) cumulative preferred stock.
Bonds and preferred stock will be sold through com¬
petitive bidding.
Probable bidders include The First
Boston Corp.; Dillon,'Read & Co.; Blyth & Co., Inc.; Halsey, Stuart & Co., inc.
Mellon Securities Corp.
common
Young Radiator Co., Racine, Wis.
Milwaukee, Wis.
(6/10)
Virginia Red Lake Mines, Ltd.
(bonds); Wisconsin Co. (stock);
Offering—Company will offer
for shares:
stockholders the right to subscribe
Jam 29 filed 100,000 shares of common stock (par $1)
also registered 40,000 shares of common for issuance upoi
Underwriters—Van Alstyne, Noe
exercise of warrants.
O
Offering—Price to public $8.25 per share.
& Co.
40,000 warrants to purchase common stock at $8.25 pe:
share prior to Feb. 1, 1951, 20,000 were issue to stock
holders on recapitalization and 20,000. are being sold t»
underwriters at 10 cents per warrant share;; Offerinj
postponed indefinitely.
For details see issue of Feb. 1
"
Security Offerings
Prospective
i.•-
(NOT YET IN REGISTRATION)
•
•
6^
shares of
Air Services, lnc.r New York
reported planning sale of 150,000
Shares of common stock through B. G, Cantor & Co.,
New York, as underwriter. .Price about $2 per share.
Company's headquarters will be. located within eight
miles of New York City.
Principal business will be
April 1 company
was
student training and charter service.
•
American
company filed with FCC application
sion to offer a new issue of 1,000,000 shares
of company. The public offering of .stock, if approved,
will be made through % Dillon, Read, & Co. Inc., with
Whom arrangements have been made by the ABC pro¬
viding for the purchase' from it of the entire proposed
.issue of 1,000,000 shares at $14 a share. Sale of the stock
public by Dillon, Read & Co., will be at $15 a
share.
New York
proposal that present
1% preferred stock be exchanged for new 4%% issue.
Alternative plan would be the refunding of the issue
through sale of other securities.
American Bosch
on
Corp.
April 16 reported that • Alien Property Custodian may
shortly ask for bids on 535,000 shares (77.24%) of the
stock
the
of
Glore,
Forgan
corporation.
& Co.
Probable
bidders
include
and Lehman
and Blyth & Co., Inc., and
& Beane (jointly).
stock,
stock¬
will be filed with the SEC at
Probable underwriters will include
holders March 14, last,
for permis¬
of stock to
Estimated net proceeds ($14,000,000) would
be devoted to financing present and proposed facilities
American Bemberg Corp.,
American Yarn & Processing Co., Mt. Holly,N.C.
It is expected that an issue of $1,500,000 preferred
of an authorized issue of $4,000,000 approved by
early
date.
Brothers (jointly),
Merrill Lynch/ Pierce, Fenner
Kidder, Peabody & Co.
Arkansas Power & Light Co., Little
Rock, Ark*
reported company planned to issue 290,000
shares common stock (par $12.50) and $5,000,000 in
promissory notes, for; purpose of paying current promis¬
sory notes and finance expansion program.Probable
bidders include' Dillon, Read
CO. Inc.; The First Bos¬
ton Corp., and Blyth & Co., Inc.
March
•
Association, San Francisco
May 21 it was announced that a hatioh-wlde syndicat
of investment bankers headed by Eastman, Dillon ^
Co.; The First Boston Corp., and Lehman Brothers com
pleted negotiations with Transamerica Corp. for a publi
offering of 500,000 shares of common stock of Bank c
,
Savings Association; ; Th
offering, it is stated, will take place the first week i
June.
The stock is currently quoted at 51^ bid an
America National Trust and
53% asked.
30
Artloom Corp., Philadelphia
July 16 stockholders will vote on increasing bommon
stock by 300,000 shares, the new stock to be offered
stockholders at $10 per share.
Proceeds for expansion
and working capital.
Management does not anticipate
entering into any underwriting arrangement.
Atlantic Refining Co.,
Bangor;& Aroostook >RR.rv Bangor,
e
underwriters include Smith, Barney
Power Co.
April 10 company (name to be changed to Minneapolis
Gas Co.), under modified plan approved by SEC, reserves
right, to make public offering of not in excess of 874,078
giving holders thereof the right to
for new 4%
Bibb
finance
ments, etc.
from
Probable
Manufacturing Co., Macon, Ga.
200,000
shares
Bridgeport (Conn.) Brass Co.
of constituent company, improve¬
Blyth & Co., Inc., probable underwriters.
purchase
needed.
INCORPORATED
..
Corporate Securities
Underwriters and Distributors
Our Sixteen
Offices
• •
NEW YORK
Nevada
•
? v-
BUFFALO
PHILADELPHIA
CHICAGO
PITTSBURGH
'
'?
>
•
CLEVELAND
ST. LOUIS
>
Head Office: San Francisco
ttiltv"
(par $1), after which a 100%
Directors also seek
Central
.
-7 7
'»
;.xf'7 * jl1,1'
{.
"r-
Corp., Louisville, K;
stock dividend will be d
approval of an addition
&
,
whi
shar«
1
Southwest Corp.
Central & South West Utilities C
Service Co. approved by the SE
sufficient number of shares of Central & Southwe
Pursuant to plan of
and American Public
a
BOSTON
i
claied.
for-share basis.
•;^ •-•'::• .-TV'-,
%Serve California and
J
issue of 14,750 shares of 4% preferred stock for
'the present $5 preferred can be exchanged, on a
*
Blair 6- Co.
•> *
Brown-Forman Distillers
July 23 stockholders will yote on a plan which calls f<
increase in common stock from 300,000 shares to 600,0<
First California Company
and
underwriters, Hincks Bro. & Cc
Securities Corp.; Hornblower &. Week
Probable
V,
•
State, Municipal
stoc
(p*
April 23 stockholders voted to issue an additional 450,0(
shares of common stock when and if new capital
Stone & Webster
Government,
vote on changing capital
(par $100) to 800,000 shares
$25) four new shares to be exchanged for each old shar<
an
additional 200,000 shares (par $25) will be create
to be held for future needs of the company.
& Co.
v
United States
exchange their share
preferred share for share.
June 1 stockholders will
Atlas. Imperial Diesel Engine Co., Oakdale, Calif.
19 stockholders voted to split common stock
2 for 1 and create new, preferred isue of 300,000 (par
$10) of which 150,000 shares would be issued and sold
to
shares of new 4% cuir
ulative preferred stock (par $50), Direptors plan to ca
the present outstanding 23,141 shares of 6% preferret
Philadelphia
for capital expenditures.
v
Cement Co.
Bessemer Limestone &
May 27 stockholders voted 25,000
May 7 stockholders approved proposal to increase the
company's indebtedness from time to time by additional
amounts not in excess of $50,000,000 in aggregate. The
purpose of the plan; it was said; is to place the company
in a position to fund bank loans, add to working capital
and to provide funds
Me.
April 16 stockholders authorized new mortgage. - Com
pany contemplates refinancing one-third of outstandin
funded debt (Dec. 31, 1945, $12,605,000) through sale c
equal amount of bonds under new mortgage, throug
competitive bidding.
Probable bidders include Ham
man, Ripley & Co., Inc.; Lee Higginson Corp., an
Halsey, Stuart & Co. Inc.
April
American Gas &
Trust & Savings
Bank of America National
Probable bidders include-
common stock.
R. S. Dickson & Co. and
the public.
June 25 stockholders will vote
new
v
PREVIOUS ISSUE
White, Weld & Co., W. C. Langley & Co., Otis. & Co.
an
Broadcasting Co., New York
;May 23
to the
INDICATES ADDITIONS SINCE
be sold at competith
otherwise supplied,
stocks of Central a
Corp.,.the new company, would
bidding to provide funds, not
retire
outstanding
preferred
k
^
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|^V:^^:.iv;''V-^;■ ■:;.:
^ ^£rfervi..;;D;.-
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oiume^ei^Itenber/.^^
2969
x1vo
«jo, >/v.
,VJ^'"V/
?May; 2&^reported^rc^cfi^
>^r"r;»
& Cb.-Harriman, Ripley & Ca; (jointly);.Blyth
arney
Securitips-qprp. and £i*st
Co., Inc.* Stone & Webste?
.
|Bpsto|3L ^Cp^Vt-iUpinrty^&'
Pacific;'RR. J
Chicago: Milwaukee St. Paul &,
^
thq^oePof/$58$()i(),q0^^
^aance
bjr:
ortgage bonds, proceeds from thie sale, of which would
used to redeem - first'; mortgage ^4% bonds. 1994,
s expected to be postponed, until latejhis year. Earlier^
lans were r for the retirement lof ; the bonds *. July ? L?
hree investment banking: groups were
-
-
/
-
chase, as a whole, of 100 shares of common stock (no
par) constituting all the issued and outstanding com¬
mon stock.
Company presently is engaged in the manu¬
facture, and sale of a line of scissors and shears. All bids
must; be presented at the-Office of Alien Property Cus¬
set up to enter
todian, 120 Broadway, New York 5, N. Y., on
ompetition for, any new offeringi viz.: Ktihn, "Loe^ «
"0.; Mellon Securities Corp., and Halsey, Stuart & Co.,
12
noon
•
or
•
-•:•••
't
*v*.*'• r •■'■'.v.*./p••
••*-'.,-y.
Colling
(H. T.)
v:>;
• <
•
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v
000,000
before
(EDST), June 7, 1946.
Grand Union Co.
May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additional
new stock, but it is likely that no action will be taken
before September. The management, it is said, is now
making an exhaustive budget study to determine what
additional capital will be needed to finance an expansion
Co.
Columbia Gas & Electric Corp., New
York
program.
stated that In final step in recapitalizaion program, corporation is expected tp sen approxiately $100,000,000 debentures to pay off .balance . of
senior Securities and provide funds for property ; ex¬
pansion.
Probable bidders include: Glore, Forgan &
"0.; W. E. Hutton & Co., and Halsey, Stuart & Co,, Inc.
April 12 it
Consolidated Edison Co- of New
Consumers Power Co., Jackson,
arch 14filed withMichiganP^tt^
™ation to sell at competitive bidding
hares, after capital adjustment;
robable bidders
•
The
876,568 common
V*
Se-
Machine Co., Chicago
une 20 stockholders
will vote to create a new issue
f 5% convertible preferred stock which will be offered
exchange on a share-for-share basis for 7% preferred
;tock. All the 7% stock which is not exchanged will be
edeemed oh July T at $105. Each share of new stock
11 be convertible into two and a half shares of com-
to consider
inancing of $65,000,000 3%s and 4s. Probable bidders
elude: Mellon Securities Corp., First Boston Corp.,
Mo.
filed application with the Arkansas P. S,
own name.
;
2%% first
ortgage bonds due in 1976. Proceeds would be used for
dditions and improvements to the company's properties
Missouri, Arkansas, Kansas and Oklahoma. ,
Probable
Corp.; Halsey, Stuart
,Co.iliW4-JSW^ .& Poland ^hjnan
Paso
El
12
une
stockholders will vote on
^thers.,
authorizing the fin¬
line from the
7A J
u
#
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-
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-
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.
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'
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(The), Chicago
18 it was stated that company was planning to
finance: its $1,239,330 4% mortgage notes, due 1959,
„
'
a
long-term basis.
k
Fairchild Engine & Airplane
23 in connection with the
ay
•
Huyler's, New York City
May27 Stockholders approved an increase: in authorized
Smith, Barney &
0., and associates are offering to purchase at $56 per
lare (flat) all shares of $2.50 preferred stock tendered
♦eferred stock for redemption June 24
them.
All such shares of preferred will be converted
to common stock.
Arrangements have been made with
nith, Barney & Co., and associates whereby the cominy will sell to them any common stock into which
converted preferred was convertible. Associated with
nith; Barney & Co., are Eastman, Dillon & Co., Newird, Cook & Co., Spencer Trask & Co., and McDonald
Co.
ay
•0
;
''
& Co. Inc.
-
■.
*
Illinois Power
Co., Decatur, III.
cumulative preferred
on
basis of two
pany
stock (par $50) into common stock
shares for one preferred. Com¬
common
states underwriting is available for this
conver¬
sion program and will cover a 30-day commitment to
/purchase enough additional common to redeem any pre¬
ferred not tendered for conversion.
Company proposes
issuance of 200,000 shares of new preferred (par $50)
and such additional
common
shares to provide cash to
certificates ($11,596,680). Prob¬
able bidders include Merrill Lynch, Pierce, Fenner &
Beane; Otis & Co., and the First Boston Corp.
pay
dividend
arrears
Indianapolis find.). Power & Light Co.
April 24 it was reported that company probably will
replace its $32,000,000 first 3%s due May 1, 1970, with
29 reported a registration statement covering 650,(par $1). Expected to be
shares of common stock
»d at
an
early date with Newkirk & Co., New York, as
ncipal underwriters.
new
lower-cost
securities.
Probable
underwriters
in¬
clude Lehman Brothers; Blyth & Co., Inc., and, Halsey,
Stuart & Co. Inc.
^
Public offering price about $5
•
stockholders approved amendment to certifiincorporation modifying restrictions against inrring debt for capital purposes without specific stockilders' approval.
Stockholders, also approved amendent to authorize 175,000 additional preferred shares,
•obable bidders include Paine, Webber, Jackson • &
Indianapolis Union Ry.
Company will receive bids up to June 11 for the pur¬
$6,500,000 refunding and improvement mortgage
bonds, series G, due June 1, 1986. Interest rate to be
specified in. the bids. Bonds will be guaranteed jointly
by the Pennsylvania HR. and New York Central RR;
Proceeds together with treasury funds will be applied
to the redemption* on Sept. 1, 1946, of $7,679,000 re¬
funding and improvement mortgage 3%% series B
irtis,
bonds.
•
share.
General Telephone Corp.,
Dril
17
te of
•
;
New York
>
.
V??!'
hVV-V-*-,• v.
Inc.,
New
chase of
^
York
May 20 it was reported that company had under con¬
sideration plans to refund the outstanding 6%* debep^
tures and the $1.50 participating preference stock.
j;
May 23, Alien Property Custodian James E. Markham
announced that he is offering at public: sale
minority
stock and bond interests in this company," engaged -in
the export of hardware and farm implements with the
aid of foreign and domestic affiliates.
Securities being
offered include 2,164' shares (21.99%) "of " the first pre-ferred Stock, 1,588 shares (34.90%) of the second pre¬
ferred stock, 1,046 shares (29.90%) of the class A com¬
stock, 2,000 shares (38.10%) of the class B common
stock, $39,900 (14.60%) of 6% serial bonds and $93,100
(14.90%) of 6% income bonds.; Bids will be received
on the six lots individually and on the six lots as an
entirety.
Bale will be! bypublic auction to/ibe held
at 12 noon (EDT), June 21, 1946, at the Office of Alien
Property Custodian, 120 Broadway; New York 5, New
York.
^ V
mon
•
McGrath St. Paul Co.
May 28 early filing by letter of notification of 37,000
shares
of
37,000
shares
cumulative
of
convertible
^ common
stock
preferred stock and
(par 500) v expected.
Principal underwriters tohig^;ji:.Rice;.^Coi'-Sti;RauI^Minnt, arid Amos -Treat & Co., New York^ Preferred
Stock expectedvto he offered at $6 pe^ share and cant*-:
mon
•
at
$2
per
share.
,
Metal Forming
.
.
Corp.
May 29 filing of letter of notification expected in two
weeks of 60,000 shares of common stock (par $1) to he
sold for the account of certain stockholders.
$7,50
per
First Col¬
underwriter;^ Stock expected to be
share.
:".U-
Illinois Centra! RR.
May 3 it was announced that in connection with pro¬
posed bond refunding plan company proposes to sell
$35,000,000 first and refunding mortgage bonds Series B.
Proceeds would be used to retire outstanding refunding
mortgage bonds ta b© called for payment Nov. 1 at 107%,
Probable bidders: Kuhn, Loeb & Co. and Halsey, Stuart
V
Fresh Dry Foods Inc., Columbia, S. C.
Publications,
ony Corp., is to be
company filed plan with SEC to simplify capi¬
tal structure.
Plan contemplates the conversion of 5%
Corp.
:
& Sons, Inc., New York
syndicate.
Macfadden
-
April 11
corporations call of its
Price $3 per share.;
;
(M.)
May. 14 it was reported that due to expansion and
acquisition of grey mills company, ha^ need of additional
capital. If additional stock is required, Eastman, Dillon.
& Co. are expected to head the underwriting
•
ay
1
Lowenstein
offered at
irities Corp.
v;
»
working capital.
County, N. M., field to close to Blythe, Calif. The
contingent on the company attaining /the
ecessary approval of the FPC, which is expected to
1 early date.
If securities sold, probable underwriters
ill be White, Weld & Co., and Stone & Webster Se.
;
(total 141,530) at not less than $10 per share. Proceeds
would be used to redeem loan, preferred stock and for
eeting is
;
.
Hungerford Plastics Corp., Summit, N. J.
May 29 stated filing by letter of notification expected
next week of 74,000 shares of common stock to be sold
in behalf of the; company; Proceeds—For expansion, etc.
First Colony Corp will, be underwriter Public offering
price expected at $4 per share.
' '
ea
Fair
new
from 600,000 to 700,000 shares and; appproved
the sale of the 100,000 shares plus 41,530 now unissued
ancing of a proposed natural gas pipe
1
Kurman, President;
V Markt & Hammacher Co., New York
Hotels
common
Natural Gas Co.
(Texas)
distributed
.
■
idders include The First Boston
be
•
ommission for authority to issue $2,000,000
1
Hilton
Halsey, Stuart
Empire District Electric Co., Jopiin,
3 company
would
Hoving Corp., NewYork
May 28 Walter Hoving, former President of Lord & Tay¬
lor, announced incorporation under laws of Delaware of
Hoving Corp. with an authorized capitalization of 2,000,000" shares ($1 par) common/; New; York office of the
corporation, is at 10 Rockefeller Plazal The shares, it is
understood, will be offered to the public at a date to be
announced later; Blyth &, Co., Inc. are associated with
Mr. Hoving in his plans. The corporation will acquire
ownership of and operate well known department and
specialty store companies in ^various parts of the United
States, These companies will be, operated under.their
-
ay
stock
•
Detroit Edison Co., Detroit, Mich.
.
Utilities
May 28 company reported to be planning some
financing with Blyth & Co., Inc., as underwriters.
Continental Foundry &
illon? Read & COi Inc; Coffin & Burr,
Co., Inc., and Spencer Trask & Co.
States
through issuance of rights.
& Co.; Leh-
Brothers; Harriman, Hipley & Co., and Mellon
mrites Corp. s(jointly),
-<
Gulf
through B. G. Cantor & Co.
An addi¬
shares would be sold for account of;N; S.
V:iVVVVh vr;VV'-'!:VW• V-;-• r';-VV'- -VV'V-V";
"
Gulf States Utilities Co. and El Paso Electric Co., and for
distribution to Engineers common stockholders.
Proceeds for extensions,
committee of directors formed
it
of
Service Co. part one of the plan calls for
of common stocks of two subsidiaries,
their
ah
19
Public
Cleveland
financing al
stock
tional 7,500
reclassification
Mich-
include Morgan Stanley
common
Gulf States Utilities Co.
eers
new
Kurman Electronic Corp.
Vv
Company, manufacturer of various electrical relays^ancl
clocks, is reported planning the sale of 90,000 shares of
public
Underwriters, it is
May 24 In connection with
some
,
,
Ready Built Home, Inc., Rockford, III.
understood, will be R. H. Johnson & Co., New York,
and Shillinglaw, Bolger & Co., Chicago.
granted management's request to
ortgage system's properties said to be forerunner to
efund $304,240,000 callable debentures. Contemplated
ew bonds, to be- sold at competitive bidding, would
nitially, it is said, involve $100,000,000. Morgan Stanley
Co. probable underwriters.
$20l^
an
early date, mostly common stock.
Proceeds for
working capital. Probable underwriter, Harriman Rip¬
ley & Co. Inc.
J
-4
derwriters at H per warrant.
Price of stock to
is expected to be $3.50 per share.
York, inc.
com¬
new
Jack & Heintz Precision Indus., Inci,
May 15 it wars repbrted'that early registration of 350,000
shares of common stock (par $1) was expected.
Com¬
pany, it is stated, will also sell 150,000 warrants to un¬
arch 18 stockholders
rch
j
(Del.)
Company is reported planning
was
Green's
II
first mortgage bonds and such number of
3,000,000 common shares as may be necessary to enable
the company to carry out the provisions of the amended
plan. Probable bidders include the First Boston Cdrp^;
Halsey, Stuart & Co. Inc. (bonds only); Dillon, Read &
Co. Inc. (stock only).
" y-;."1
'y-^'yr.'l-vVV-
May 29 registration expected within 10 days of 58,000
shares of common stock. Public offering price $5 per
share. Underwriter~-Westheimer & Co., Cincinnati,
Interstate Power Co.
May 21 pursuant to amended plan filed with SEC
pany proposes to sell through competitive bidding
'
•
v:-j
tv*' -ji
•
Insuranshares Certificates IncVr .V; :V
M4y/23 New York Stock ExchangeVreceivecf notice from
^with Merrill Lynch, Pierce, Fenner & Beane, as under- * ! company
that; the proposed offering of 101,700 shares "of
Waters.
»' •v
6*-mi^
1^'*j;
capital stock" tp holders of common stock of record
May 27 has been-postponed. Offering is contingent ion
Graef ^& Schmidt, lnc., New York ;
VI *" -1 ] '
registration .statement:(yet to be filed) becoming efTher Alien Property^'.:Cdstod^an^:in,idtes;:bid$; fbri the piu&i .fective.---^
y^a/:: ■/,;
^^^edrin^Merchpndising-Xo^/jk^^j;'--^^^-'^
einilcm X)iUuieia-AJct^cuu,
** *\ m,r*+
,•
■:>
Michigan Gas & Electric Co., Three Rivers,
Mich.
April 1 filed
With^^£E& application to
sell (a) $3,500,000
first mortgage bonds due April i, 1976, (b) 14,000 pre¬
ferred shares'(par $100) and (c) $400,000 common stock
(par $10). All issues would be sold through competitive
bidding. Probable bidders include Blyth & Co., • Inc£ ?
Kidder, Peabody & C6.; The First Boston Corp.; Harris,
Hall & Co." (Inc.); Merrill Lynch, Pierce, -Fenner &
Beane, and Ira Haupt & Co.
-
Michigan:Wisconsin Pipe Line Co.
May 3 it was reported that Michigan Consolidated Ga$
Co., through the purchase of $17,000,000 in common
stock, would acquire full control of the Michigan-Wis¬
consin Pipe Line Co.
Sale of the stock to Michigan
Consolidated Would be a part- of the initial financing /
which-proposes to build a $71/000,000 pipe line to bring; natural; gas from, Texas to
Midwest States.
Michigan-Wisconsin's proposal /also
of the new company^
contemplates issuance of $6,000,000 in 2% 5-year serial
notes and of $34,000,000 in 3V4% 20-year first mortgage
bonds to complete the "initial financing." The plan ha$
yet to be presented to the SEC. Probable bidders of the
bonds include Dillon, Read & Co. Inc.; Glore, Forgan
& Co.; White, Weld & Co.; Halsey, Stuart & Co, Inc^
and Mellon Securities
Milwaukee Gas
Corp.
Light Co.
'!
May 6 it was reported company is considering refunds
ing its $13,000,000 4V2 % bonds due 1967 and the refund¬
ing or retiring of the $2,000,000 outstanding 7% preferred
stock. Refunding step would strengthen company's capi¬
tal structure as a forerunner to distribution of its stock
by the American Light & Traction Co., parent, to enable
latter to meet Utility Holding Company Act require¬
ments.
Probable bidders include Otis & Co., Glore,
Forgan & Co. and Lehman Brothers (jointly):; Halsey,
Stuart & Co. Inc., and" Dillon, Read & Co. Inc. •-
(Continued
on page
2970)
j
■
FINANCIAL CHRONICLE
THE COMMERCIAL &
2970
Thursday, May 30, 19''
gg
■
■
in'
(Continued from page
i
•
Monogram Pictures Corp.,
as
for
it a warrant to subscribe
New York
.
stock
& <?o.
of'yfears;"
&
-
Southern
Phiico Corp.*
f
may
Probable? under¬
New York Dock
Inc.
& Electric Association, Cam¬
Rome
Harriman, Ripley
3
will include. Merrill
Lynch, Pierce, Fenner &
Beane; The First Boston Corp., and White, Weld & Co.
(N. Y.)
Peabody Coal Co., Chicago
issue probab
Halsey, Stua
:! 3
^
Texas Co.
will request that rate be
Probable bidders include Halsey,
May 16 it
was
consideration to
reported that the directors are givi
a
plan of refinancing presently ou
the issuance
approximately $100,000,000 of debentures.
Details
the new debenture issue, including interest rate a
maturity are expected to be decided upon at an ear
date.
Proceeds from the sale of the new issue will t
Cable Corp.
recapi¬
applied to retirement of the company's presently ou
standing $40,000,000 3% debentures due 1959 and $6
000,000 3% debentures which mature in 1965.
Dillo
Read & Co. Inc., is expected; to head the underwrite
,
syndicate.
,
United
States
ReaJty-Sheraton,
fi||
u
lnc.
reorgahiiatiohi of the U.
Realty & Improvement Co. and merger wi h Sherat
Corp., 42,390 shares of the reorganized company's- co
mon will be sold to an investment group headed
In
company
connection
with
the
Lehman Brothers.
Vacuum
,
Seaboard Corp.^ Harrisburg,
Pa.
interests will be received until June l;
I
•
company
for
to
announced of
a
group,
controlling interest in
public offering.
Springfield, Mass.
Proceeds to reimburse treasury f
expenses incurred -in::
& Machine Co., reduce
fexaS' Corp.r Houston^ Texas
was
Norman Co.,
,
N. Sixth St., Harrisburg, Pa.
the
Van
May 24 reported directors; plan shortly ;o file a regi.
tration statement for 120,000 shares of common, sto
water
May 21 sale
Philadelphia
3
1946, by the com¬
Operations consist mainly of owning and managing
utilities located in;" several states.
Interested
> firms are invited to eommunicatef with the general office,
pany.
22
Concrete Inc.,
stockholders approved increase in authoriz
capital' from 310,000 shares (par $1) to 350,000 shar
(par $1). Additional stock will be used to obtain worki
capital and for. purchase of assets of Vacuum Concre
Corp., parent, which it is planned to liquidate.- •
May
-
composed of Stifel Nicolaus
& Co.,' St. Louis; Dittmar & Co., San Antonio, and
prior preferred 4Y2% s-ock (par $20).
If approved,
Rauscher, Pierce & Co., Houston.
New owners, it is
holders of present 6% preferred (on which there were ? said, plan considerable expansion of' the company, in¬
dividend
arrearages
of $30 per share May 1) will
cluding installation of new machinery, etc., necessitating
new capital.
be asked to exchange one share for 6Yz shares new prior
'3
approving recapitali¬
zation plan involving the authorization of a seriesvof
Inc., and Halsey, Stuart & Co., Inc.
.
Loeb, Rhoades & Co.
Seven^Upr
on
Union Electric Co. of Missouri
,v^?Uwited States Lines Co., Hoboken, N. J.
June^stockholders will vote ^
new issue
4^% cumulative preferred stock "junior to the presei
7 % preferred stock. It is ■ proposed fo offer the ne
preferred in ^ch?qige^ioi^4he vZ%^ preferred stock shai
for share; Unexchanged 7% preferred will be called ft
redemption. It is not the present intention tq .issue ar
new preferred except in exchange for the 7% preferre
April 30 John Stapf,. President, announced that proposals
and plans for the refinancing of corporation and affiliated
Electric Co. sells its holding of common stock (in ac¬
cordance with SEC regulations) to sell approximately
stock, proceeds of which
will be used to reimburse treasury and retire bank loan
used in redeeming the 7% preferred stock.
Probable
"j
'
(N*y.) Telephone Corp.-
-Boston Corp.
City
new common
y
.
Company contemplates at same time Standard Gas &
June 24 stockholders will vote
'
6 Co. Inc.
petitioned the Missouri Public
Service Commission to simplify its financial structure,
including reduction iii interest and sinking fund changes.
Company proposes to retire current funded debt ($11,640,683) and to issue tip to $10,000,000 new bonds, but
limited originally to $6,000,000.
Probable bidders in¬
clude White, Weld & Co.; Blyth & Cd.^Inc., and First
refunding of $55,000,000 collateral trust
Oklahoma Gas & Electric Co., Oklahoma
propos€
was
company decides to refund through new
bidders will be Kuhn, Loeb & Co., and
Prob¬
sold, Dillon, Read & Co.
&U Louis, (Mo.) Public Service Co,
4%% bonds due 1975 and the issuance of a new series,
collateral trust bonds.
Prospective bidders, Morgan
Stanley & Co., Halsey, Stuart & Co. Inc., and Kidder,
Peabody & Co.'
approve
Eastman, Dillon & Co. principal underwriters,
& Co.
•
of
bidders
of Sunray is
outstanding $90,000,000 3%s of 1971 with lower co
obligations. Possible bidders would include Dillon, Re£
«s
Co., Inc.
and Carl M.
pacific Ry., St. Paul, Minn.
140,000 shares of
subject to stockholders'
Union Pacific RR.
for erection of a new
manufacturing plant at Rome, N. Y. The plan involves
issuance and sale of 63,270 shares of a new conver ible
preferred stock (par $30) and an increase in the author¬
ized common stock from 200,000 shares to 600;000 shares.
Probable underwriters^ Mohawk... Valley Inves ,ing Co.
reported April 10 that company has under con¬
the
announced,
distribution of securities
May 9 it was reported officials are considering the que:
tion of meeting the $100,000,000 first mortgage railros
and land grant 4's due July 1, 1947. However, it is fe
maturity date is too far away to determine now wheth<
issue will be paid off in cash or will be. refunded,
$6,238,000 35-year bonds, now held by Halsey,
Bonds now carry a 2Vz% coupon but
April 19 the
sideration
r
talization plan to provide funds
Nort^
Northern
5§|
It is rumored that company contemplates refunding i
,
New York
June 5 stockholders will vote ion approving a
April 17 reported that company has under consideration
the refunding of its $45,000,000 series C 3Vss with issue
of about same size carrying lower coupon rate. Probable
was
OrpheumCorp.,
specified in the bids.
New issue will probably run 25
Probable underwriters, Hayden, Stone & Co., and
Halsey, Stuart & Co., Inc.
•
It
Drug Co.
standing securities which would require
*'
"
Stuart & Co. Inc*
mortgage 4s, due 1951.
& Co.
'
.
stated that a plan was under way 1
finance a new company to acquire the assets of Nashi
Manufacturing Co., 95% of the common stock of whic
is owned by Textron.
Probable underwriter, Blair & C
Co., N. Y.
bidders, Halsey, Stuart & Co. Inc., and
Co.
April 30 it
it is probable, that company
years.
:
Sunray
with
May 29 expected early registration.»and -competitive sale
in June of
f |
.
"
•
y
Textron, Inc.
Reynolds International Pets Co., Chicago
Rochester
-
Public
:.i
'•...
•
■
Oil
An. early offering of 200,000 shares of cohittioh: stock at
about $10 per share is expected, with. Allen & Co. as
principal underwriters.
,
May 28 reported negotiations will be resumed probably
in June with view for refunding of $10,000,000 first
^
j
(J. P.) A Co., New York
Sunray Oil Corp.
be made by June 30 or some time in the fall.
Stuart &
•
|
Manufacturing Co., N. Y.
able underwriters if stock is
bridge, Mass.
.
Power
May 1 proposed merger of Sunray and Transwestei
t
Gag & Coke Co*
Preferred Utilities
Radio-Keith
;
recapitalization plan with SEC
providing for sale at competitive bidding of (a) $22,500,000 20-year sinking fund collateral trust bonds, plus
(b) sufficient shares of new common stock out of the
original issue of 2,300,000 shares to supply $11,500,000.
Proceeds, will be used to retire at par and interest qutstanding debentures. Bidders may include Halsey, Stuart
& Co., Inc. (for bonds only), Bear, Stearns & Co. (for
stock only), First Boston Corp., White, Weld & Co.; Kidder, Peabody & Co. (Joint).
•
May 4 L. Boyd Hatch, Executive Vice-President of Atlas
Corp., stated that company may shortly dispose of all or
part of its holding of R-K-0 common stock; which
amounted to 1,329,020 shares (43%) Dec. 31, 1945, with
a total market value as of that date of $21,762,702.
Sale
May 23 it was reported that company may refund its
outstanding $4,300,000,5%r debentures due 1959 leter this
March 27 filed amended
Electric
May 23 reported company plans registration in imm<
diate future of $2,000,000 debentures.
Proceeds to 1
used to pay $1,000,000 bank loan and for working capita
May 27 filing by letter of notification expected within
week of 24,000 shares of 51/2% cumulative convertible
preferred k>tck (par $10) arid 24,000 shares of common^
to be publicly offered in units of. one share of each.
Principal underwriter Childs, Jeffers & Thorndike.
May 22 expected filing at early date of 200,000 shares
of common stock, to be offered at $6 per share. \ Floyd
D. Cerf & Co. will be underwriters.
New England Gas
.
May 29 company reported continuing study of a refund¬
ing and capital adjustment plan. It is hoped company
will present the SEC with a program lateEihis year.
National Cellulose Corp.
with new lower-cost securities.
writers Van Alstyne, Noel & Co.
of
termined.
Philadelphia
Portland (Ore.)
Inc;, Chicago
year
stockholders
y
Stevens
-
(par $3). Purpose is to secure permanent capital, as
may be required for future expansion.
Smith, Barney
& Co. probable underwriter if sale of securities takes
place.
Harriman Ripley & Co.
*
•
May 17 stockholders voted to increase capital stock from
2,000,005 shares of common to a total of 3,370,057 shares,,
consisting of 250,000 preferred shares (par $100), 2,500,000 common shares (par $31 and, 620,057 class H stock
Co., Albany, Ore.
National Container Corp.
common
May 29 it is rumored- that .-company expects to do son
new financing in the-immediate future
following -tj
merger of scveralvBouthern mills^^
^ which the compar
holds a controlling interest. Name of underwriters undi
Marquette Ry.
April". 24, W. H. Wenneman stated that refinancing jof
company's $59,749,000 first mortgage 3%s will be un¬
dertaken following consummation
of merger of road
with Chesapeake & Ohio Ry.
Probable underwriters
include Halsey, Stuart & Co., Inc., and Blyth & Co., Inc.
May 15 it was intimated Ihdt company may have financ¬
ing plans in connection with steps being taken in ac¬
quiring additional lines. Probable underwriters include
Reynolds & Co.
•
SEC
.
and Blyth & Co., Inc.
Lines^
J
'
Pere
May 20 it was reported that Standard Gas & Electric
is planning to sell at competitive bidding at an early
date its holdings of 140,614 shares of common stock.
Probable bidders include Blyth & Co., Inc.; The First
National City
Inc.
Service Inc.
'
The tenta¬
the munic-
Glore, Forgan & Co.; one jointly by Harriman .Ripley
& Co., Inc., and .Dominion Securities Corp.; and one
Boston Corp.;
,
•Light Corp., Would be given rights to subscribe to Unit!
Gas Corp. common stock and^stock of the new holdir
company Southern Electric System, Inc. The latter con!
party would be formed to hold the stocks of Arkansf
Power & Light Co., Louisiana Power & Light Co., Mi;
sissippi Power & Light Co.,t and New Orleans Publ!
(par $10) to Scott, Horner & Mason, Inc., of Lynchburg,
Va., for $600,000, plus closing adjustments.
ipal calls for bids on $20,610,000 bonds in June; $22,460,000 in August; $20,095,000 in December, and $22,474,000 in February of 1947. As an alternative the City
may sell half the issue in June and the other half soon
thereafter.
Refunding in Canada of $121,816,000 Cana¬
dian and other payment bonds is to accompany the
financing.
The City will determine the coupon rate
on the bonds, which are to mature 1947 to 1975.
Invest¬
ment banking groups planning to enter the competition
include one led by Halsey, Stuart & Co. Inc.; one by
Mountain States Power
.•
,
with
May 7 corporation applied to the SEC for permission to
sell all of the eonimon stock of the Petersburg & Hope¬
well Gas Co. (a subsidiary) consisting of 55,000 shares
May 16, J. O. Asselin, Chairman of Montreal's Executive
Committee, conferred with investment bankers ; *with
respect to proposed sale in the United States of a new
bond issue designed 10 provide funds for retirement of
Jointly by Shields & Co.,
'
^
Electric System,
May 10: pursuant to substitute plan for retirement
preferred" stocks of Electric Poyver & Light Corp., fili
Pennsylvania Gas & Electric Corp., York* Pa.
Montreal, City of
city's outstanding two-payment obligations.
tive schedule, which is subject to approval of
-
and'
Montgomery Ward &
;
proposes
-construction.
(b)' 101,000 shares -of series C cumulative preferred
stock, with a dividend rate not to exceed 4%; Both
issues are to be sold through competitive bidding. Prob¬
ablebidders include Mellon Securities Corp,, Smith,
Barney & Co., Kidder, Peabody & Co., and Merrill Lynch,
Pierce, Fenner & Beane.
*
:
Co., Chicago
Sewell L. Avery, Chairman, following the annual stock¬
holders' meeting, indicated that rights may shortly be
offered to shareholders to raise funds to finance, an; ex¬
panded volume of business. Probable underwriters_if
stock is offered include Glore, Forgan & CO., and Shields
Corp.)
fdVCbihmbnwealf
to sseil for cash (whe
Commonwealth's recapitalization plan becomes effei
tive) sufficient common stock to realize $10,000,000 1
be invested in Southern ^ Ca's subsidiaries and nd
Pennsylvania Edison Co., Altoona, Pa.
March 28 company applied to the SEC for permission to
issue (a) $23,500,000 first mortgage bonds series of 1976,
principal underwriter.
Southern
|
%
fbeysuccessor
stock at varying prices over a number
May 27 registration of 225,000 shares of common
expected within two weeks, with Emanuel Deetjen
-
""
....
Southern Co., New York
Each prior preferred' share would carry with
preferred.
2969) '
"
■
:
wri.er
acquisition of Morse Twist Dri
bank loans, etc. Probable unde
Paine', Webber, Jackson & Curtis.
-Wabash Railway
May 1 it was reported that company may
dund its $47,000,000 first mortgage 3^4s of
lower
Stuart &
possibly r
1971 with
Possible bidders include Halse
Co., Inc., and Kuhn, Loeb & Co,
coupon
issue.
^
Western
New
to be sold
RR.
in
the aggregate of debt being; -1
'
i
called.
through competitive bidding. Possible bidder®
Stuart & Co., Inc.; Morgans Stanley &
Co.; Lehman Bros.,, Harriman Ripley & Co. and Union
Securities Corp. (Joint)!; Blyth & Co.,, Inc.; Shields &
Reporter's
<l^' ck** ■1 $^2*2^ )' ^'5'' '7°^- -'
Report
total will
Next week's new issue
projected flota$100,000,000 of new 30-year
swelled by the
of
n
Socony-Vacuum
bentures of the
Co;,- expected toTeach: market,
cording to
latest indications,
out next Tuesday or Wednes-
il
.
yYfp},;\,,
The
debentures will
carry
a
Vk% interest coupon and judgng by the reception accorded
he
recent* huge* offering
of
tandard*
forthcoming
'
eceived.
be
will
ndertaking
similarly
1
^
proceeds the company
oposes to retire $50,000,000 of
o
sinking fund debentures outmding, with- the public, due July
1946, and a similar amount of
rial notes held by banks.
With the
convert, on or
fore May 1, 1948, any borrOWY
»s under such credit into notes
the option to
for either five^or ten years.
tions in the money market
set the
ing
period
isoutstanding
idering a $190,000,000
replace
bligations.
new
Savings and Loan
Mortgage Volume Up
in 1944;
interest
and
and
on
time and
since the
lished
record
a new
in
the volume
of loans rhade during, the month
According to figures re¬
leased. May 22 by Zebulon V.
112 Two Utility Issues
This; week
brought
to
utility issues, namely
5,000,000 6f 40-year 2%% de¬
ntures of Mountain States Teleone
&
Telegraph Co., along
th
$32,000,000 first mortgage
i% bonds, due 1976 of the Ohio
iblic Service Co., and 156,300
ares of that company's preferred
large
^
Service
onds brought the spectacle of
ie bids, but without creating
ny difficulty for the company,
tender
iiiced the two and ran
outdisoff with,
tie award.
state
the
during
the
of April, 1946 amounted to
This it is announced
$23,585,412.
represents
increase of $6,624,-
an
March,
during
amounted: to
when
"Profits
$16,960;886.
on
total of $67,242,919
a
In
one
of the
gotiated refinancing operations
recent months, International
announcement further says:
"For
the
month of April
$18,-
432,930 was loaned for the pur¬
all
homes, representing 80%
other
"Savings
purposes
in that it in-
reduction of. some 30 %
A
at.the close ofv business June
161
Dividend No.
amounted
the
year
amounted
loan
in
any
mailed,».
mon
Stock
dividends
been
have
declared.
DISTRICT THEATRES
stock transfer books will remain open.
W. F.
to
The Board of Directors-has declared an initial
Secretary
quarterly-^^ dividendisof : 200 per-. share-^ on-the
far
the
associations
increase
repre¬
reached
$758,833,259 as of April 30,
representing
of the. year J'
COMPANY
an.
1946
increase, of. 4.1%
-Y
stock,
a
basis of -80(f per an- k
Eugene M. Kramer, Secretary
New York 8, N. Y.,
Preferred Dividend
or on
payable July1 1, 1946 to stockholders of
record June 14j 1946.
Washington, D, C., May 23, 1946
No. 152
Common Dividend No. 83
over-
of*
dollar* seventy-five
one
cents
Preferred Stock and
the-counter
trading
or¬
ganization.
Box
K
declared
payable July 1,
|§ii. & COMPANY||||g;Y
1946 to holders of
^Wilmington,: Delaware: May 20, 1946
1946;
The Board of Directors has declared this day a
tlve close of business on June 5,
Transfer books will not be closed.
30,
Commercial & Financial
E. I: du Pont de Nemours
thirty-five cents- (35tf) per share on the
Common Stock of this Company have been
of
dividend- of' $1.12)4 a share orj
Secretary
May 23,1946
July 10, 1946; also' $1.75 a share, as the second
"interim" dividend for 1946, on- the:.outstanding Common Stock, payable June 14, 1946, to
stockholders of- record at" the close of business
on May 27, 1946.
Chronicle, 25 Park- Place,
Allied Chemical s: Dye Corporation
N. Y.
61 Broadway,
the outstanding
Preferred Stock, payable July 25, 1946, to stock¬
holders of record at the close of business on
CARL A*. SUNDBERG
W. F. RASKOB, Secretary
New York
May 28,1946
Allied Chemical & Dye Corporation
CITY INVESTING COMPANY
quarterly dividend No. 101
Fifty Cents ($1.50)
per share on-the Commotr Stock of the
Company, payable June 20, 1946, to
Y
of One Dollar and
$34,059,468
*
CORPORATION
Colclough, JR.
May 22, 1946
lias declared
thus
<*
Both
record
record at
New York 8,
'
'.
m
payable July 1, 1946, to
June 6, 1946. Jhe
are
of
holders
to
during the month of
*
quarterly
num,
capacity
with medium-sized
10, 1946. The
147
Common
ru
AMERICAN LOCOMOTIVE
21; former G.I. wishes to
t
share in
May 23; 1946.
-
dividend'of 7S(f per share
(l'/2%) on the Preferred Stock for the
quarter ending June 30,
1946, and av
dividend of 25tf per share on the Com¬
r
.
April increased $8,488,501 and for
and
a
■
*
YOUNG MAK
ar
per
the Common Stock
JOHN L SNYDER, Treasureri
Preferred Dividend No.
30 Church Street
t
on
FINANCIAL CORPORATION;
payable July 1, 1946, to stockholders of record:
/•>*'-fy V <*■
common
SITUATIONS WANTED
s
&r Telegraph Corp,
privately with a group of senting an increase of 5.5% in
surance companies this week an
share capital.
;ue of $30,000,C0Q of 15-year 3%
"Total resources of all savings
iking fund debentures.
rtved
.
T.
-
transfer books will not dose. Checks will be
corresponding period of 1945, the
aced
ine refinancings
$29,652,000 were $11,387,000 less than in the previous
year. Taxes on net income, Fed¬
eral and State, in the year 1945
-
Company
($1.75) per share* on the
dephone
This operation was something
fferent from the run-of-the-
loans and
" -yo-v'.vA-. *' [
Dividends
$1,435,606.
largest directly
on
discounts of
as
Mountain States deben^ of the total amount loaned.
For
reoffered on Tuesday the construction of new homes an
and were reported
aggregate of $2,540,068 was loaned
International Telephone
American
V;;{\
Bank Note
compared with $29,094,510 for the
were
good response.
off
of' C; I.
1946
sving briskly. The Ohio Public
rvice
bonds- and stock- were and refinanced loans amounted to
aced on the market to the pub- $1,176,808.
Loans for repairs and
th
than in the year before.
dividend of 50 cents
cash'has'been' declared
securities sold dur¬
charged
Common Stock Dividend*
A quarterly
Loans
iced at 101.87
met
more
Losses
loans
for. the first four- months of
chase of
yesterday and likewise
formerly-
Commercial Investment Trust Corporation
DIVIDEND NOTICES
$142,959,000 over the gross
earnings for 1944. Operating ex¬
penses
were
$816,688,000,
as
against $725,248,000 for 1944.
000
C.I.T. FINANCIAL CORPORATION
526 of 40% above the record made
reached;
-
Sale of Ohio Public
third
in
tions
market month
loan associa¬
DIVIDEND NOTICES
,,
of
beginning of 1946 estab¬
by all savings and
res
look
which
he argued might Contain informa¬
into State Department' files
The special Pearl Harbor Con¬
gressional investigating committee
formally
closed its voluminous
record on May 23, according to
Washington Associated Press ad¬
vices, in spite of last minute
sav¬
tive month and for the third time
eration.
The
Senator
Records Closed
ings 'deposits, an increase of $26,741,000.-Gross earnings of $1,349,222,000 were reported for the year
1945. This represents an increase
latter company, it is calWoodardj, Executive Vice-Presi¬ ing 1945 aggregating $141,803,000
lated, may seek* at the same
were $72,840,000 more than in the
of the
New
York
State
me, to raise additional new cap- dent
preceding year, and losses and
al which may boost considerably League of Savings and Loan As¬
depreciation on securities in 1945
dimensions of
the overall
sociations, mortgage Ipans granted totaling $74,627,000 were $7,053-
a
by
•
Brewster; (R.-Me0: that1 it
$34,575,000 over 1944;
$124,567,000 expended in the
iorrn of interest
of April..
-Y
r
The
ince
recommendations
of
crease
Savings and loan associations of
>ck.
' •
••
.
New York for the second consecu¬
o
(jointlyj.
'
is exected to- speed up action on the
art of Texas Co.-which is conto
&^ Co; (Joint)W. C; Langley &
labor, upheaval.
>
- tral Hanover. Bank & Trust Com¬
The promise of a period of sus¬
"The principal items of operat¬ capital accounts.
"On December 31, 1945 there
tained labor peace, perhaps in the
pany
of New York, President;
ing earnings for 1945 were $651,were 5,023 national banks in op¬
wake of stringent legislation now
952,000 from interest on U. S.
Henry G. Diefenbach' of United
eration as compared to 5,031 in
being considered in the Congress, Government
obligations and $92,—
;
States Trust Company
of -"New
1944."'
was regarded as likely to pave the
992,000 interest and dividends on
York, Vice-President; and Milton
way for a long spell of industrial other
securities, a total of $744,A. Schwarz of
activity.
.;••• Y.
YvYY,.Y
Guaranty Trust
584,000, which was an increase of Pearl Harbor
And while basically the condi¬
Investigation Company, Secretary-Treasurer, ;
$112,113,000 over the correspond¬
market for
A really receptive
he Socony-Vacuum Issue
ue
Peabody & Co..
Reported by Comptroller of Currency
company
run
White; Weld,
proceeds from' the new issue, the
tion
on
pre-war
messages
ex¬
company will pay off a total of
Comptroller of the Currency Preston Delano announced on May
changed by the late President
$43,530,000
of outstanding
5 % 18 that the National
banks in the United States and possessions re¬
Roosevelt
and
Prime
Minister
gold debentures", due 1955.
ported net profits after income taxes- of $490,133,000 for the year
Churchill. Voting down Senator
Y Through; this refinancing .; and.
ehkMTDec. 31, 1945, an increase of
$78,289,000 over the year 1944. It Brewster's proposals- the com¬
debt retirement there is an indi¬
is further stated that net operating, earnings, before income
taxes, mittee brought its 27-week •* in¬
cated saving. to the company of
were $532,534,000.
Adding to the net operating earnings, profits on
vestigation to an end. Senator
$>outY$l,276,500" anndalfe? in in¬ securities sold of
$141,803,000 and^-*
terest charges -which should be
Barkley (D.-JCy.), Chairman, said
recoveries on loans and invest-' totaling-$170;566,000 exceeded thfe
he hoped that the report of the
carried through to net income.
ments, etc., previously charged off amount of suck taxes paid in the
cdmmittee's
8;640,000^word
reof
$118,329,000,
and
Seasoned Market Strong
deducting preceding year by $49,730,000; >
cdrding would be ready for Con1 "Cash
The more cheerful tenor of the therefrom losses and' charge-offs
dividends declared on
gress by July 1.
r 1
hews with the railroad and coal of $131,967,000 and taxes on net common and preferred stock in
strikes ended, reflected in the income of $170,566,000, the net 1945 totaled $155,656,000 in com¬
mark|0ft>r < seasoned* investment profits before dividends for the parison With $144>308,00 ill 1944; Ehrhardt Heads NYC Bank
year
ended December 31, 1945 The annual rate of cash dividends
issues.
v,,- ■
• . Y1 4.-/
Strength was manifest through¬ amounted to the $490,133,000 men-' was 3.34% of capital funds.. The CJomptrolIcrsv vGonference :
tioned above, which at an annual cash dividends to stockholders in
out the list carrying along
The New York City Bank Comthe
lesser grades such as the cheaper rate amounts to 10.53% of capital 1945 were 31.76% of- net profits
t4ollers and Auditors Conference
available.. The remaining* 68.24%
rails which naturally had been funds.
at its annual meeting- May " 22
of net profits^ or $334,477,000, was
The
adversely influenced.bythe wideComptroller's
announce¬
retained* by the banks? in their elected George Ehrhardt of Cenment added—
sperad
has a revolving stage for investment yields, there and discount on loans of $374,117,is no gainsaying the fact that in¬
edit with a group of large com000, an increase of $14,234,000.
ercial banks, in the amount of terest, like dividends, is paid out The principal operating expenses
of
earnings, not deficits which were
5,000,000 running for two years
$371,995,000 for salaries and
^m July 1 next.
Under this- ar- prolonged strikes entail.
wages of officers and employees
ngement, the company stated, it
and fees paid to directors, an in¬
s
Co.. and
Co.? Merrill, Lynch, Pierce, Fenner & Beane and Kidder,
,
romise is that the
The
include Halsey,
Profits of National Banks in 1945
Using treasury cash,, along with
|)itr|||2
t
of
York, Inc. applied to New York P. S. Commission
for authority to issue $9,000,000 30-year debs., int. rate
not to exceed 2%%, to be guaranteed by parent.
Issue
Wisconsin Public Service Co., Milwaukee, Wis.
pril 11 ICC conditionally authorized company to-issue
May 20 it was reported that Standard Gas & .Electric
0,000,000 first mortgage bonds, series' B, due Jan. 1,
\Co>,expected to sell at competitive bidding some; time
>81^ proi^eda to^ be vused to^ refundv a like amount
in June its holdings of 1,099,970 shares of- common stock.
rst mortgage 4% bonds due- Jan. 1, 1974, and held by
FC.
Interest rate, to be specified- in bids.. The direc-; Probable bidders include The Wisconsin Co.; The First
rs have. rejected the conditions attached! by the ICC. ; Boston
Corp.; Harriman Kipley & Co*
Yi -
v.
Electric Light & Power Co.
(N. Y.)
Jan. 21 company and-parent Consolidated Edison Co.
Blyth & Co., Inc.; Bear, Stearns & Co.; Halseyj Stuart
& Co., Inc.;; Merrill Lynch) Pierce, Fennel & Beane;
Shields & Co., and Glore, Forgan & Co.
[4,901,000 first mortgage 4s.. Probable bidders include
uhri,; Loeb & Co*, and Halsey> Stuart & Co. Inc.
Western Pacific
Yonkers
but the company on May 27 filed a petition for recon¬
sideration and oral; argument
Probables bidders include
Maryland Ry.
22 reported company working on plans to refinance
ay
2971
CHRONICLE
Number 4494
olume 163
AVAILABLE
common
Experienced
travel, available July L. Box
New
25
Park,
Place, New York 8, N. Y.
Y|
"
•
May 23,
f
N. Y.
1946.v
-
Board
regular-
G.
ANACONDA
Chronicle,
"
mailed.
ministration, married; free toi
nancial
KING, Secretary
accounting-ad¬
No^ C 24,. Commercial &. Fi¬
'
of Directors has this day declared
quarterly, dividend of $1,375 per
share on the 5l/2% Series Cumulative Preferred
Stock
of
the
Company, Payable on
July 1,
1946 to stockholders- of record at the close of
business
on
June
18,
1946,
Checks will be
The
the
stockholders of record at the
W. C.
STREET, NEW YORK 4,
1
\
close of business June 7, 1946.
Assistant Treasurer
30 BROAD
'
•
York
4,
MINING CO.
Broadway
N. Y., May 23, 1946
DIVIDEND
The
Board
of
NO.
Directors
P.M.,
;
at
on
the
June
close
4,
C.
Secretary.
LIQUIDATION NOTICE
152
of
the
Anaconda
Copper Mining Company has declared a dividend
of Fifty Cents (50c) per share upon its
Capital
Stock of the par value of $50 per share, pay¬
able June 26. 1946, to holders of such shares of
record
GUNTHER,
P.
COPPER
25
of
business
at
a
The
-Meriden
notified
to
present
o'clock
Dated
1946.
EARLE MORAN, Secretary.
-
National
Bank-,
located
at
Meriden, Connecticut is closing its affairs.
All
creditors of the association are therefore hereby
May
13,
claims
for
payment.
■
1946. ;V
Y<-FRANK- O'BRION; Cashier.
■
THE
COMMEI^CJAL & FINANCIAL CHRONICLE
(Special
"•
LOS ;
to
The
Financial
(Special to The Financial
Chronicle)
523 .West Sixth Street.
•
.
rejoined The Mil¬
waukee Co., 207 - East Michigan
Street. Mn Heckman has been
i
„
INDEX
M. Heckman has
ated with Quincy Cass Associates,
1946
Chronicle)
,1 MILWAUKEE, WIS.—Raymond
ANGELES,/CALIF.—Ha¬
rold C. Wilson has become affilir
Broker-Dealer Personnel Items
Thursday, April 25,
,
serving in the U. S. Army with
lllii
"
/'"//
Bank
Page I
"■/•/,:'
and
Stock.,...,/,^926
Insurance
Broker-Dealer
Personnel Items. AI *29721
Man's Bookshelf
/2955
Calendar of New
Security Flotations
♦
Canadian
Business
.
(Special to The Financial
&■:
(Special
to The
Chronicle) >
Financial
OHIO —William
AKRON,
i
/'/; (Special to The Financial
A.
L.
Cartwright
Central Tower Building.
Bank Building,
He has
LOS
Chronicle)
OHIO —Livings¬
is with Sweney,
COLUMBUS,
ton
Humphreys, Jr. has become asso¬
ciated with McDonald & Co., First
Taylor
"
•
.
(Special
to The
William
Chronicle)
Financial
MASS. —Robert
BOSTON,
C.
with Adams & Peck,
now
35 Congress Street,
EACH,
is
FLA.
L.
Co., 618 South Spring Street.
244 South Beach Street.
*
,
The
Chronicle)
Financial
c
•
BOSTON, MASS. —George G.
RUrageas has been added ■; to the
staff of J. H. Goddard &
Co.,
85 Devonshire Street.
(Special
>
FT.
to The
Chronicle)./-.:
Financial
LOS
LAUDERDALE, : FLA.—
"
Rice
&
Co., Broward Hotel.
formerly
was
with
Clark
BOSTON,
is
Hastings
MASS; —Stuart
W.
with
connected
now
SL Peter Klapper &
to The
(Special
Co.,,31 Milk
Street.
Financial
Chronicle)
KANSAS
CITY, MO.—Donald
Belcher has rejoined Martin-Holloway-Purcell, Fidelity Building,
after serving with the U. S.
(Special' to The Financial Chronicle)
F. Wadsworth has
of Perrin,
:
West &
joined the staff
Winslow, Inc.,
24Federal Street.
Samuel
B.
Financial
of
Street/
ST,
LOUIS,
Hill
•/„/•'.;
J
"
MO.—Darrell
LOUIS,
has
K.
•
(Special to The Financial/ Chronicle)
SAN
LOS ANGELES, CALIF.—Frank
(Special to The Financial Chronicle)
Jjr. is with F,
Putnam & Co.,
Inc.. 77 Franklin Street.
.
L.
Lowry
has
M.
associated
become
with
New
(Special
in th£ U^
past he
&
Co.,
507
Street,/af/er serving
SvNavy;/;V//^;!:/-
*
(xdlnohho tvionvnij shx 6)
;
BOSTON, MASS.—John R. Pick¬
and
Shwiller
David
affiliated
Sessler
&
Co;,
with
10
Post
G.
Office
Square.
LOS
CALIF.—Ed¬
Bingham,
Hurry, 621 South Spring
Walter &
'1
Al¬
is with IL C. Wainwright &
to
The
Financial
BOSTON, / MASS.
Warren, Jr. is
J. Arthur
vonshire
now
Rbodesian Selection
Russell
is
with
SAN
District Theatre
Scophony, Ltd.
Chronicle;
CALIF.—David
IL S. Finishing
R. Townson is with Merrill Lynch,
Merrill
Fenner &
DIEGO,
American Molasses
Pierce,
Beane,
Fenner
Beane,
&
Avon Allied
San
Diego Trust & Savings Building.
523 West Sixth Street.
Cinema "B"
'
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
/
LOS ANGELES, CALIF.—Gra¬
ham Stevens is with G. Brashears
&
(Special to The Financial
l«i09(ip)
ANGELES, CALIF.—Ken¬
D.
Lynch, Pierce,
,
Co., 60 State Street.
(Special
ANGELES,
Street.
f BOSTON, MASS.—Harry S.
corn
neth
mund J. Sampter is with
"(Special to Th« Financial Chronicle) '
,
LOS
(Special to The Financial Chronicle)
have
John
England Public Service
ill North Fourth Street.
Street,
In the
wivh Fairman & Co.
Was
ering
Chronicle)
Seventh
1
become
to The Financial
ST.
West-Sixth
A/ II ogle
r LOS-ANGELES,
is
Brown
Pacific
Company
623 South
(Special to The Financial
SAN
CALIF.—Max
connected
now
of
Chronicle)
FRANCISCO,
CALIF.—
Paul M, Tinsley is now affiliated
with
with
California,
220
Hope Street.
Stewart,
Scanlon
&
Co.,
M.S.W1EN&C0.
.:.//
Montgomery Street.
ESTABLISHED
Members N.
Co., 510 South Spring Street.
40
Robert
(Special to The Financial: Chronicli) p;
LOS
Warner & Co., 89 De¬
/S
ANGELES, CALIF.—Jack
Albert is with Buckley Brothers,
West Sixth Street.
Street.
530
Amalgamated Sugar
Int'I Resist.
American Time
Teletype—N. Y. 1-971
Mfg. Com. & Pfd.
Bendix Home
*
FRESNILLO CO.
Lear Inc.
Consolidated Industries
Majestic: Radio & Television
Designs and manufactures
Z precision prolucts oiinv the
tl^hteran J tioweroxitfixins
O'Suilivan Rubber
Telecoin
Du Mont Laboratories
metals*
Corporation
•'
50 Broad Sireet
•
Net
'
ita!
//v:/;/:;/.;;/.;;//-/^///'"//:/•'/
Members
Security
raxes)
Sheraton Corp.
//'■
specialize in all
bell teletype
Enterprise 6015
Industrial Issues
-V-/■:/../';
Investment Trust Issues
.
1.69
'
1.49
0.35
3-70
1.61
0.50
,
1414
(bid)
(1)17V^
10
(l)12'/2
-
(♦) pw share
»
.
Public Utility Stocks and Bonds
.
......
-
Units
-
(ei eotimated
.
TEXTILE SECURITIES
Securities with
a
RALPH F. CARR & C0,
31 Milk
Boston
;
Street, Boston 9, Mass.
>v
New York
Teletype
Hanover 2-7913
BS 328
s-
Hubbard 6442
Recent,
New Eng. Market
'r
..
Write
,/./.! J0■-
'i*■
\
i
*;
vv
Specialists in
New England Unlisted Securities
i
'
;
■
■
kff '
//
^
/.
^
^
Tel. HANcock 8715
Tele. BOston 22
Puklic
Pressurelube, Inc.
(A
low
I
priced
dividend
U. S.
Radiator, Pfd.
common
1.
stock)
2.
3.
«* ",,R
r '
per
y
i
v
f
Teletype NY
7-0744
1-886
W're.ytM.'
•'
\
,f
"
/
/
148
i
/'
,*
"
•
i
'
-'
'///»*•.'
years
Current position 4.4 to 1 i
St.
BO 9-4613
N.
St., Boston 9, Mass
0424
i
;
Teletype BS.259
Y. Telephone HAnover 2-7914
</
-
J
'
' '
^
v
i
••
./i"'
/
A
I
5
w
a
u
r
v
,A'
^Susquehanna Mills-
bought-sold—quoted
Empire Steel Corp.
♦Prospectus on request
:
Available under $6 per share
Wall
State
CAP.
share
Amos Treat
40
,
|
Bonds, Preferred and Common Stocks
['I
/
.
REMER, MITCHELL 8e
WESTERN UNION TELEPRINTER "WUX". •
Bell
,1j_
^
l
Real Estate
1
W. T. BONN & CO.
Telephone COrtlandt
-i
/.-f
'
120
New York 5
j
j
Utility """"Industrial-
208 SOUTH LA
Broadway
"
,
Average earnings for 5
$1.04
JFarrell-Birmingham
•
^General Products Corp.
paying
^
•
for descriptive
Lumker _8c Timker
Engineering Works
;
'-T
<>
Tel.
Northern
^
f
Established in 1922
;
i
V> u'"
e
y
^
Bank •—Insurance
;
24 FEDERAL STREET, BOSTON 10
Sunshine Consolidated
'
call
ttb
I Frederick C. Adams & Co.
J
Z
Grinnell
or
price
analysis P-K-M
Specializing in l^lnlistect Securities
"
1
.»».
(bid)
(1) 1940
Thompson's Spa
191.50
.......
High price
Lew price
new york 1-R7fl
2-3600/?
REctor
5
philadelphia telephone
telephone
Insurance and Bank Stocks
YORK
NEW
^16.03
e
taxes)
Association
Dealere
STREET,
.^1.07
./:-/ Earned///":^ (after
incorporated
York
liew
NASSAU
1945
-
(Before
Dividend
45
Z*. <if/ vtk
■■
22.00
.........
Sale#
Kobbe, Gearhart & Company
AFFILIATE: CARL MARKS & CO. Inc< CHICAGO-—_
Cap--
Wldng
Earned
New York 4, N. Y.
We
^
/a
,
T939
Virginia Dare Stores
Wilcox-Gay Corporation
Higgins, Inc.
SPFPTJIT T<5TQ
v
(m>pu!si<m field
Z
v
FOREIGN SECURITIES
t
^
Entered tbe electronic and jet
Corporation
Ventnor Boat Works
Greater N. Y* Industries
■
'
Trans-Caribbeait Air Cargo
/General
Globe Aircraft
♦
♦
•
Sheraton
D. B. Fuller
P.O. &
INC.
6% Pfd. & Com/
Kut-Kwick Tool
Buckeye Incubator,
Clyde Porcelain Steel
HARL MARKS
/
Kropp Forge
Appliances
Firm Trading Markets
andi other Silver Shares
1-1397
Ironrite Ironer Com. & Pfd.
/
Baltimore Porcelain Steel
HAnover 2-0050
.
Trading Markets in
Artkraft
THE
*.
TdHna N.
A,
associated with
1919
F. Securtty Dealers ArTn
Exchange PI, N» V. 5 / HA. 2-8780
Chronicle)
—
&
connected
become
with Adams^Fastnow Co.»215 West
of J.
CALIF.Johnson
Gaumont-British "A"
ANGELES, CALIF.—Thos.
Hammond has
rejoined - the
staff
Wilson,
Higgins, 300 Montgomery Street.
LOUIS,
MO.—Ralph G.
perry is with Slayton & Co., Ine/
.
(Special to The Financial ChroniclS)
FRANCISCO,
Ervin Ilarkness has become asso¬
LOS
BOSTON, MASS.—Fred.O. Bliss,
I
;
2934, 2935, 2936 and
Olive S.reet.
•
/
2937.
with John R. Kauffmann Co., 506
Chronicle)
/
.,
Bond Club of New York I
Annual Field Day. Pictures on
Security
(Special to The Financial Chronicle)
ST.
Seltsam
(Special to The Financial
MO.—Henry /II.
Brothers,
Says......,,.... .292c
under "Securities Now in Regis¬
ciated
\-K
-A
Roscoe
affiliated with Holt,
now
Building/'
Chronicle)
'
Walter. Whyte
Whittemore has become associated
Spring Street.
'y.;* -'r;ilV
/}
pages
I
Hill, Richards & Co., 621 South
Inc.
Chronicle)
—
added
Frank¬
with
(Special to The
With Slayton &
now
ANGELES, CALIF.—Rich¬
staff of
ORE.
Corner...... .29471
Registration.....29631
in
tration"- on page 2963.
Robbins & Co., Porter Building.
:/ los Angeles, calif.—Ed¬
win V, Nelson has joined the staff
MICH,—Warren
£o.,
LANSING,
Rich is
fe/;
293C|
Securities..,.,,,292c"
Tomorrow's Markets—
/>See
Krier is
lin & Co., 215 West Seventh
Army.
(Special to The Financial (Dhronjcle)
MASS.—Alexander
BOSTON,
Street;/:/-1//
Chronicle)
W. Fleischer has been
to the
Franklin
1404
Co., 453
.
ard
(special to "The financial Chronicle)
Securities,;,..,.......
Estate
Now
Co.,
&
(Special to The Financial
Financial
Real
Securities
now
PORTLAND,
to The
2919
Governments,... .2923
Our Reporter's* Report../ .2971
Public Utility Securities
2922
with Stephenson,
South Spring Street.
He
Funds........29?4
Our Reporter on
Salesman's
Leydecker
:|
Recom-
Literature;.,... .2918
Securities
Chronicle)
with Fewel &
chronkxb)
and
NSTA Notes
Railroad'
Davis
(Special
Co.
Financial
•-•••-—-
(Special to Thb Financial
ANGELES, CALIF.—Max
Marcus is
Frank C. Byrne is with Daniel F.
The
the
Mutual
% OAKLAND, CALIF.—George C.
Morgan is
LOS
v
armed forces.
-
to
in
as¬
sociated wi;h Edgerton, Wykoff &
MacKin¬
serving
afteri.
Avenue,
Wisconsin
East
110
Investment
mendatlons
MILWAUKEE, WIS. —Carlton
P. Wilson has rejoined The Wis¬
Chronicle)
financial
Loughborough has become
(Special
(Special to
Dealer-Broker
(Speclal/to The Financial Chronioji)
.
West
530
£ LOS ANGELES, CALIF.—John
—
con¬
now
nected with Thomson &
non,
I
B
Hulett
B.
Co.,
consin: Co.,
(Special to The
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(Special to The Financial Chronicle)
ANGELES, CALIF.—John
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Sixth Street.
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the rank of Colonel.
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5, N.
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Tele. NY 1-1448
REITZEL, INC.
SALLE ST./CHICAGO 4 • PHONE
RANDOLPH 3736
BELL SYSTEM TELETYPE CG-989
Hill, Thompson & Co., Inc.
Markets and
120
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Tele. NY 1-2660
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