The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
>1
1343
MOV 1 2
Final
Edition
ESTABLISHED OVER 100 YEARS
Reg.
Volume
158
Number 4228
New York, N. Y.,
Individual Fieedom
DR.
WILLIAM F.
S.
Pat.
Planning
Thursday, November 11, 1943
The trend from
I. B. A. Stream-Lined War-Time Session
The
thirty-second Annual Meeting of the Investment Bankers Association, abbre¬
viated this year because of war-time
restrictions, was held in New York City at the
Waldorf-Astoria Hotel Nov. 3, 4 and 5, and was devoted to a
study of the problems
of
and post-war
war
finance.
Officers inducted at the
longer
no
<£-
the
gag
fgffplf IS*.
of
needs
All
the
people
keep them
all
employed.
An
entirely
and
new
In
take
the
to
re-
stunning blow.
innocently enough by giving the title
the legislative act under which the Association" was
of
a
economic
uals and put it
into the hands
"To
its
provide for the establish¬
ment of
mechanism of regu¬
lation among over-the-counter
ment. There
is
usually
a
tacit
assumption brokers and dealers operating
that this change will, beyond a in interstate and
foreign com¬
doubt, eliminate most of our eco¬ merce or
Dr. Wm. F»
of the Govern-
Hauhart
Our government dur-
(Continued
on
page
Interest
material
with
and
and
items
reference to
the
Wisconsin
in
this
For Illinois see page 1874; Wis¬
*
1914.
-
General
index
That bit of
history seemed
necessary because the Board
of Governors was about to
pontificate on the subject of
"just and equitable principles
of trade" from
■
,
-
on
page
1916.
;
We read
"The
believes
United Lt. &
years,
record before
the past
the
over
and
with
it of the prac¬
tices of the
time has arrived when it
can
its
a
profit motif.
the Board refers to Section 1
of Article III of the AssociaNote—Messrs.
of
the
New
successfully
involving
of
M.
Stewart, Kuhn,
d
e
Governors
E.
R.
n,
San
H.
Francisco;
&
The
bert
H.
York
"mark
that, in the light of
A.
M.
are
Bar
defended
"market
members
and
have
litigation
price"
and
up" practices.
(Continued
on
Gor¬
John
C.
Folger
Among the principal speakers
meeting were Fred M. Vin¬
son, Director of Economic Stabil¬
ization; George W. Spinney, Pres¬
of
the Bank of Montreal;
Fennelly, Executive Di¬
F.
rector of
nomic
the
Committee for Eco¬
Development; John C. Fol¬
the
President, and Jay H.
Whipple, the retiring President.
new
special feature
was
forum
a
devoted to the problems of financ¬
ing
the
war
and
Government
during
authorized
annual
meeting in October,
1942.
rP Of particular interest in the
of
port
was
a
the
Finance
table
re¬
Committee
giving the condition
of the Association's finances
dur¬
ing each of the past 20>years, the
increase
value
decrease
or
of
the
in
the
invested
par
surplus
representing quite accurately the
net results of each
operations
of
keeping all
funds
year's financial
because
of the
available
policy
surplus
invested.
financing enterprise after
war.
Speakers at that session
#ere Edward B. Hall, former IBA
now
Secretary of the Treas-
serving
as
Assist¬
a
Bond
WAR BOND
by
amendment to the by-laws at the
TH E
CHASE
NATIONAL
Light & Pwr.
mem¬
"Inactive"
the
Rwy.
Buy
re¬
now
the
Common, W. I.
United
new
was
at the
ident
Association
This latter class of
membership
ant to the
1898)
members, 578 active
the
classification.
President,
page
that
bers and 20 in the
don, - Kidder,
Peabody &
Co.,New York,
John
Co.,
membership committee
has 598
Co.,
Al¬
Chicago;
&
ported
Harris,
s,
Loeb
New York City.
Julien H. Coln
Boatmen's National Bank of
John S. Loomis, The
Illinois Co. of Chicago, and Percy
Bree-
Moulton& Co.,
A
Metz and E. A. Kole
on:
Board
Louis;
ger,
*Editor's
Massa¬
the
St.
industry as shown and Edward
study of question¬ Hopkinson, Jr., Drexel & Co.,
so far
examined, the Philadelphia, Vice-Presidents.
naires
the
Treasury Department; Al¬
Armitage, Coffin & Burr,
Boston; H. Fred Hagemann, Jr.,
by--the
prevent acts and practices express
dealer
issue.
consin, page
through the mails,
to
of
States of Illinois
appear
a
experience
four
philosophy on
inconsistent
with
just and what constitutes a fair spread
equitable principles of trade, of profit."
and for other purposes."
To arrive at its
philosophy
1880)
In This Issue
activities in
of
Finance Committee
bert T.
Boston;
Hall
$>-
"AN ACT
■from individ¬
Special
War
The
1 i
Here it is:
created.
production
nomic ills.
of
PresiAlbert
Armitage,
Vic
25, 1943,
The letter started
sponsfbility
for
C.,
Chairman
is
chusetts
Inc.,
letter addressed to its members dated Oct.
a
the NASD dealt them
sys¬
aims
who
Coffin & Burr,
ardently
tem
Albert P. /Everts, partner in
Paine, Webber, Jackson & Curtis,
ury;
hington,
dent;
T.
By A. M. Metz and E. A. Kole*
advocated.
This
Security Transactions
Condemned
order is there¬
fore
Was
D.
Maximum Profit Decree Affecting
were:
John C. Fol¬
ger, Folger,
Nolan & Co.,
Blunder
economic
new
meeting
■<»
1
adequ ately
Copy
a
Bankers Association Of America
;
an
doomed, because, in their opinion, it is
60 Cents
John C. Folger is Elected President for 1943-1944 At
University
individualistic economy to increasing govern¬
mental control has been so
strong in the United States in recent
years that some persons have
seriously asked whether we have
absorbed an alien economic
philosophy between the two wars. Cer¬
tain public men and economists take the
position that our present
economic system is
able to meet
Price
Holds 32nd Annual Meeting In Mew York City
IIAUIIART
Dean, Sehool of Business Administration, Southern Methodist
f4
1
Office
:illlllliSi|l Investment
And Economic
By
U.
In 2 Sections-Section
Preferred
BANK
OF THE CITY OF NEW YORK
Brokerage
in
the
on
York
New
Curb
Hirsch, Lilienthal & Co.
Members New York Stock
and
other
Exchange
Exchanges "
Geneva
-
NEW YORK 4, N.Y.
25 Broad St.
HAnover
Rep.
CHICAGO 3, ILL.
135 So.
2-0600
LaSalle St.
State 8770
Teletype NY 1-210
RR OSPECTUS
R. II. Johnson & Co.
OBTAINED
MAY
and Dealers
BE
correspondent
FROM
Established 1927
INVESTMENT
London
service with Chase
Pay Day
every
Exchange
Broaden your customer
for Banks, Brokers
Dealt
Service
64 Wall
AUTHORIZED
SECURITIES
or
Street, New York 5
BOSTON
PHILADELPHIA
Albany
Buffalo
Syracuse
Pittsburgh
Williamsport
Dallas
Troy
DEALERS
Hardy & Co.
from
Members New
HUGH W. LONG and COMPANY
Actual
Members New
York Curb
IN CORP OftATI 0
IS EXCHANGE PUCE
LOS ANGELES
30 Broad St.
634 SO. SPRING ST.
JERSEY CITY
.
Teletype CG 1219
BROKERS and DEALERS
York Stock
Tel. DIgby 4-8400
facilities
Exchange
Exchange
New York 4
Member
Federal
Deposit Insuranc•
Corporation
Tele. NY 1-733
~
Trading Markets, always
in
a
wide range
Federal Machine and
of
Public Utility
in
Welder Co.
Over-The-Counter
BONDS
Preferreds
Securities
Bought—Sold—Quoted
•
BULL, HOLDEN & CQ
TELEPHONE-RECTOR 2-6300
REYNOLDS & CO.
INCORPORATED
Members
14 WALL ST.. NEW YORK 5.N.Y.
HART SMITH A CO.
Kobbe, Gearhart & Co,
MEMBERS NEW YORK STOCK
EXCHANGE
N.
Y.
Security Dealers
45 Nassau Street
Tel. REctor 2-3600
Ass'n
New York 5
Teletype N. Y. 1-576
Philadelphia Telephone:
Enterprise
6015
Members New
120
York
Stock
Exchange
Broadway, New York 5, N. Y.
Telephone:
Bell
REctor
2-7400
Teletype NY 1-635
ira haupt&co.
Members
New
York
Security Dealers Assn.
52 WILLIAM ST., N. Y. 5
Bell
New York
HAnover 2-0980
Teletype NY 1-395
Montreal
Toronto
Members
of
Principal
111 Broadway
Exchanges
REctor 2-3100
Teletype NY 1-1920
THE COMMERCIAL &
1870
Thursday, November 11, 1943
FINANCIAL CHRONICLE
Trading Markete insZZZ
Emerson Radio
W e Maintain Active
United Gas Improv.
Nu-Enainel Corp.
II
Established 1929
Mem hem
40
BELL TELETYPE NY
BROADWAY
115
2-2772
BArclay
Telephone
ffiPONNELL&ft).
;
*
:
Oilier Principal Exchanges
7-0100
120
Higher Production Level
Solution To Unemployment, Inflation And National
Debt Problems—Thinks New Capital Requirements i
John
& Pfd,
Kearney & Trecker
Interest
Pfd.
New York & Richmond Gas,
Fennelly Regards
F.
Will Be Enormous In Post-War Period And That
Mayflower Hotel, 5's & Com.
I
Rates
Will
Gradually Work Higher
j
I
Members
War Contracts, Disposal
.Baltimore Stock Exchange
Of Government Owned Plants
And Taxation
WOrth 2-4230
a great, opportunity and a
world and new capital require¬
will be enormous, said John F. Fennelly, Executive Director
Committee for Economic Development, in a speech delivered
"Investment
Y. 1-1227
N.
banking
is faced
with
great responsibility" in the post-war
ments
of the
'Interstate Power
be
essary
Preferred
i
Preferred
Members
ment
chief
Telephone COrtJandt 7-40*70
System Teletype NT i-lt43
Bell
the
as
source
of
vestment
must
measure
W. L.
Douglas Shoe
Prior
the
out-
said,
mean
so
employment we
guaranteeing work to every
woman and
child in the
full
"by
man,
(Continued from page 1884)-
Drive
Com.
Of
Sugar
the
the
such rules
Members NY Y. Security Dealers Assn.
Bell
Teletypes—NY
would
2-4850 '
1-1126
&
Arnold, Inc., in¬
Raleigh and
&
Kirchofer
Carolina, and
York, announce that, in as¬
North
Charlotte,
Inc., it is opening a branch office
at 729 loth St., N. W., Washing¬
ton, D. C.
"
'
BONDS
STOCKS
INVESTMENT
Experience
•
.
vestment bankers of
Regimentation And Bureaucracy
small dealer,
imposed may be definitely forecast.
are
P. W, Yowler Partner
In G. H, Reiier Go.
CINCINNATI, O.—C. H. Reiter
&
Union
Co.,
1127
in
other words
the
profit he expects to make on a trans-
PARK, Inc.
Deb. 5s, 1963
C. H. Reiter & Co. for some
its facilities in ser¬
investors
vicing
throughout
FASHION PARK, Inc.
ment.
'
<
'
.
the
Southeast.
A Message to
Of
;
Engineering Attractive
Holders
Aircraft
Interstate
Municipal Bonds
Lebenthal & Co., 135 Broadway,
New York
bond
City, odd lot municipal
specialists,
have
issued a
of Im-
folder entitled,, "A Message
oortance
to
Holders
of Municipal
which is included a
chapter on the value of tax ex¬
emption and the record of pay¬
ment of municipal
bonds versus
other securities. Copies of this in¬
in
request.
possibilities,
esting
W.
Fred
Salle
La
of
bers
Fair man
according' t<.
& Co., 208 So
Chicago, III, mem
Stock Ex
St.,
Chicago
the
35-page brochure describing- I.
E. C. will
be
sent by Fred
Fairman
& Co. upon request.
American Fuel & Power 7s 1934
-
Galveston-Houston Co.
Hofer In
Washington
Hofer, member of the New
Stock Exchange,
from
offices
York
Interstate Aircraft & Eng.
Jefferson Lake
*
is doing business
at
815
Fifteenth
*
*
Sulphur, Pfd. & Com.
Nu-Enamel
Ft. Pitt Traction 5s,
Panama
Coca-Cola Bottling
t
i
.
Electric &
FASHION PARK, Inc.
i.
"•
Bought—Sold—Quoted
i
Preferred
$4 Preferred and Common
I
Simons, Unburn & Co.
Members New York Stock Exchange
25 Broad
HAnover
St., New York 4, N. Y.
2-0600
Tele.
*
NY 1-210
;
Wires to
Detroit
-
Buffalo
Pittsburgh
♦Analyses upon request
Dealers Ass'n
Y. Security
74 Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private
Finishing 1% Pld.
Washington & Canonshurg 5s, 1932
York Corrugating
j Troster,Currie & Summers
! Members A\
I
Southern Traction 5s, 1950
Inc.
Bought—Sold—Quoted
G. A. Saxtofl & Co., Inc.
IIODSON & COMPANY,
1944
Second Ave. Trac. 5s, 1834
U. S.
.
1935
Pgh„ Canon. & Washington 5s, 1937
*
i
Engi
Copies of an attractive
change.
teresting folder may be had from
Lebenthal & Co. upon
and
neering Corporation offers inter
Street, N. W.
Common
WHitehaB 4-49T0
1-600
timt
Manager of the Bond Depart
as
*
N. Y. 5
Teletype NY
Stock
Exchange,
Queen Dying 5s,
FASHION
Trading. Markets k
"9 PINE ST.,
Building
Trust
members of the Cincinnati
C'V
have admitted Pert*
W. Yowler to partnership in thei
firm.
Mr. Yowler has been wit I
WASHINGTON, D. C.—Myron A.
proposed rules of the SEC on disclosures, which
in effect make a dealer reveal the wholesale price, or
(Continued on page 1888)
Water
Fiicilities
•
jor Investors
.
Kirchofer, President of
Kirchofer & Arnold, said that the
C.
R.
Bonds,"
The
Street, New York 5, N, Y.
HAnover
|
profit disclosure rules and make a living? That thousands
of small dealers will be compelled to close their doors if
& reeneaJCo rapcmu
Tel.
Into Hands Of Large Firms,
exclusively or largely engaged in
over-the-counter business, could take time and provide
costs and services to comply with the proposed price or
What
Vertientes-Camaguey Sugar
.
Business
Strangle Venture Capital, Restrain Production And
Strike Another Blow At Democracy In Favor
ling, Pfd.
Peoples Light & Power, Pfd.
Wall
MUNICIPAL,
INDUSTRIAL
Sc
Arnold ~
New
Impair Nation's Whole Economy
Amer, Utilities Service, Pfd.
37
-
"
RAILROAD, PUBLIC UTILITY
Interstate Aircraft
Would
Punta A l egre
744 Broad St.
Duval
sociation with J. G. White & Co.,
phrase than the
employment, which is
widely used."
"If," he
Would Snuff Out Small Dealers and
Teletype 57. 2-1343
Ry.,
B.
NEWARK:
201 Devonshire St.
Gordon
buying.
of extending
N ew York 5
South.
bond ;
Street, New York
BOSTON:
municipal,
dangerous
Telephone: WHitehall 3-1223
&
S2
dent in charge
full
<& Preferred
ft. G. 3RUNS & CO.
Norfolk
-
68 William
Open Hew D. C. Branch
to avoid the twin
American Distil
i
Knowledge
SEC lid and Asked Disclosure Plan
Sell
Members Mae York'Stock Exchange'
the
Presi¬
to
Kirchofer 8
Struthers Weils
>:
R. W. PRESSPRICH & CO.
assist¬
as
GOVERNMENT,
'now
John F. Fennelly
problem for all will be j
dangers of mass ;
standing
1952
20 Pine Street,
Stuart &
opening of the Washington branch
office is a move in the direction
Indiana Limestone
Common
Hal-
with
more
Pointing out
that
Teletype NY 1-1919
associat¬
sey,
of
WHitehall 4-8120
Broadway
Bell System
term
to
that
lies ahead."
Preferred
6s,
up
task
the
65
has
Duval
been
ed
Exchange
Members New York Curb Exchange
can
points with respgct to the CED
objective, Mr. Fennelly stated,that
"we are convinced that there is no
capital, inbankers
Members New York Stock
charge of the
bank's munic¬
governmental debt can be solved.".
Directing attention to important
Govern-
to
New York 5
Edward A. Purcell & Co.
Weein
President
duced, and the problem of bal¬
ancing our Federal budget and
carrying the tremendous load of
tice of looking
\
land Duval as
"the
the
Lab.
Dumont
be rapidly attained, He was born
employment problem will, in Houma, La., on May 19, 1907,
largely take care of itself, the and was graduated from Prince¬
great threat of post-war inflation ton University in 1929.
will be eliminated or greatly re¬
production
wartime prac¬
Nmei/Ycrty Curb Exchange
Nassau Street
capital
forthcom¬
s
continue
N. Y. Curb Esefean&e
Vanderhoef & Robinson
31
unemployment and mass Govern¬
ment employment, Mr. Fennelly
asserted that, if higher levels ol'
1
nec¬
Peoples Light & Pwr. Pfd.
of Gordon Bis-
Vice
not
Pfd.
Serv.
New England P. S. 7% PI. Pfd.
York; has an¬
nounced the
ant
i ned
a
Eugene W. Stetson, President of
Guaranty Trust Co. of New
Co.
ing, and un¬
less, God for¬
bid, we are to
United Cigar Whelan
on
11
a
unless the
Taggart Corporation
•Traded
will
tion
1952
Util.
the
City, who added that "new high levels of produc-
in New York
tion
American
Guaranty Trust Dept.
Associa¬
Nov. 4 before the convention of the Investment .Bankers
on
6s
branch offices
our
New England P. S. 6% PI. Pfd.
ipal bond de-,
partment. jVIr.
And Surpluses
120 Broadway, N. Y. 5
Teletype
.
NY 1-1557
La.-Birmingham, Ala.
Direct wires to
0.0. Duval Heads
Second
1940 And Federal Budget Of $20
Billion For First Post-War Decade—Discusses Termination Of
Visualizes Price Level 50% Above
Milclidh.foiipiaj
Bell
New Orleans,
REctor 2-7815
appointment
Over Period Of Years
V
Tel.
Exchange
St., New York 4, N. Y.
HAnover 2-0700
BROADWAY, NEW YORK
r
,
Looking Into The Post-War World
Axton-Fisher Tob, A & B
j r
Members New York Stock
25 Broad
New York Curb Exchange
NEW YORK 6, N. Y.
Teletype NY 1-672
W
Steiner, Rouse & Co.
Members ■' 1
•:''v
New York Stock Exchange
>f.L.\
1-423
Du Mont Labor., Common
Howe Scale, Com.
Goodbody &. Co.
Members IS. Y. Slock Exchange and
Ass'n
Security Dealer?
York
Ne «r
Exchange PL, N.Y. 5 HA
Lincoln Fire Ins. Co.
Walworth Pfd.
CANADIAN MINING STOCKS
KING & KING
Birmingham Gas.
Warren Bros. Class "B" & "C"
CANADIAN BANK STOCKS
Preferred
Alabama Mills
Remington Arms
CANADIAN DISTILLING STOCKS
Tennessee Products
Cyanamid Pfd.
Botany Pfd. & Common
CANADIAN OIL STOCKS
Residuals
Common &
American
Markets in U. S, FUNDS for
-
-
Cleveland
St. Louii
T. J. FEIBLEMAN & CO.
165 Broadway,
New lork
Members
New
Orleans Stock Exchange
41 Broad Street
BOwling Green 9-4433
New York 4
Tele. NY 1-493
*>iAtt3£2
Volume
COMMERCIAL
FINANCIAL
•Reg.
•'
v:,
.
.r>
William
B.
*•%"?.*:
'
•;
We
Punta
■■•;.
.
«,
Dana
Editor crnd Publisher-
William.
William
Dana
D.
Seibert,
:
1871
Vertientes
;'
v
.
offerings of
A.vd cowmr
Public Utility and Industrial
THE UP AND UP
PREFERRED STOCKS
Camag'y
ON THE LOW DOWN
President
Riggs, Business
Vicana
Manager
stocks
Spencer Trask & Co.
Sugar
Thursday, November 11, 1943
and
news
records,
corporation,
clearings', slate and city
STRAUSSBROS.
quo¬
Members
32
t
H.
Gray, Western Representative,
Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.
1943
Reentered
by
William
15.
Dana
Asa'n
99 Wall
Harrison 2075
Teletype CG 129
DIgby 4-8640
of ALL COMPANIES and
Company
REAL ESTATE
PRUDENCE
-
BONDS
Canada.
$27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50
per year;
Great Britain,
Assuring Holders Of Government Bonds That They
Will Be Repaid In Coin With Same Purchasing
PRUDENCE COMPANY
Power As When They
Other
ALL ISSUES
Bank and Quotation Record—Mth. $20 yr.
■
of
{
Members
40 Wall
foreign subscriptions and advertisements
in New
made
York
Can
Savings
Will
Be
To
Be
Respected
Respected—Sees
People
And
This
Know
39
Broadway, N«w York 6„ N. Y.
HAnover 2-8970
New
Exchanqr
Achieved By Continuous Government Spending
;
; - In response to a suggestion that he say a few words about the
economic aspects of Canada's part in the war, George W.
Spinney,
WHitehall 4-6330
St., N. Y. 5
Bell
funds.
Stock
York
Moxie Co
President of the Bank of
1-2033
NY
Teletype
Dealers
Virtually Unanimous in
I f Condemning NASD Profit
Montreal, speaking before the annual con¬
America, in New
York on Nov. 4, made the observation that
"undoubtedly you have
a very
practical interest in. Canada, not only as an ally in a great
endeavor
but<^>
r——|
•
1
was
also
;
his
nor
identity:be
received is included.
will
ones
in
appear
Additional
week's
next
unless the decree is rescind¬
paper
ed
re- *>
in
interim.
the
This
seems
^
,
.v
.-
like
on
in
of
is
obvious
dispatch in the New York "Tri-1 that the fight against both will not
bune" on Sunday indicating that stop short of Congressional action.
the action of the NASD may not The subject of the bid and asked
receive the full backing of the Se¬
curities and Exchange Commis¬
sion.
It
intimated
was
"Tribune"
account
that
in
some
the
of
"'-those in the SEC thought that this
would
be
good opportunity to
press their bid and asked disclos¬
ure
a
proposal which is opposed by
disclosure
rule
in
discussed
is
a
editorial appearing on
page 1870. "An NASD Blunder" is
the "caption of an article on the
decree which
those interested in the subject will
wish to read, too.
It starts on the
limitation
profit
oujside front
W.
George
security in¬
dealing in oil royalties to
DEALER NO. Z
Spinney
;
see
of the
minimum capital requirement, now a maxi¬
stay in business, but on the contrary seeks to
out.
'
•
,
On the sale of 100 shares of stock at
price of $3 a share they
would limit- me to a mark up of $15, less $3.05 transfer taxes, or a
net of $11.95.
For this I have to call on the customer, get his order
and check, transfer the stock and make delivery, all time and expense
consuming and all for the munificent sum of $11.95.
Of course the
NASD probably considers that pure profit and conveniently disre¬
gards all overhead expense, including the annual dues Which they
111
me
as
a
will
know
a
ukases, but rather by
practice.
I
Security
Dealers
Assn,
Broadway, New York, N. Y.
BePl
System Teletype,
N.
Y. i-£4!6t
something
of
the tremendous industrial expan-
"When I tell you that a
I
(Continued oh
page
YEAR END SALES
Firm Bids On
'%
Cana-
1882)
Active
or
Inactive
Over-the-Caunter
Securities
:
on
HiBimileL.m
170 Broadway
Bell System
is
time
no
for
relaxation
for
or
of
the
be ' foolish
war
in
"if
we
allowed
our
plans and actions to be based upon
the
'<
my
;
own
sense
prospect of an early collapse
Germany."
his
In
Central Slates Elee. (ft.1
Common
speech
the
at
Lord
& Preferrecfs
iana Liiestirae
Mayor's luncheon in London, Mr.
Churchill
also
6s, 1952
reviewed the
past
year of "almost unbroken victory
in every theatre
and on every
front," mentioning Africa, Sicily,
Italy and the war on the U-boats,
but proclaimed the "glorious ad¬
vance"
of the Russian Army as
outstanding event of" this fa¬
mous
year."
He also rated the
Anglo-American
air
attack
on
(Continued on page 1911)
■
"the
Securities
Frank C.Masferscm &Ce.
Members
New
York
Curb
Exchange
NEW YORK 5
64 WALL 8T.
Teletype NY 1-1140
HAnover 2-9470
Public National
of fair
Tom Moore
,
Bank & Trust Co.
Distillery Co.
Pacific Goalt
■
living for the day when .we can throw off the yoke that
regulation and regimentation has fastened about our necks. I regret
that I must ask you not to use my name in any public reprint for it
is foolish to invite the American Gestapo to one's door.
However, I
will gladly contribute to a fund to fight this rotten proposal.
.
"the climax of the European war" but warned that it "will
Europe prove
fight" but he said that it would
in
COrtlandt 7-6190
Teletype NY 1-84
Nov. 9 that the year 1944
Frankly speaking the NASD is as much help and
sixth toe and I will not in the future be governed
by their inequitable
York
REctor 2-52AS
have "hiked" 50%.
need to
Ne&
war.
"You
greatest sacrifice of life by the British and American armies,
and battles far larger and more costly than Waterloo or Gettysburg
will' be fought."
In stating that "we must all brace ourselves for
that task and. strain every nerve for its successful accomplishment,"
end
me
war
Members
■*$
the
endeavor to
help
for
European
War—Warns Victory Will Be Costly In Lives
profit. It is damnable that I have been driven at the point of a
gun into an association which, by virtue of the dues I pay, should
mum
me
directly
J.F.Reilly&Co.
Churchill Sees 1544 As Climax Of
thoughts on the joys of peace and
victory.". The Prime Minister ex¬
pressed the hope that those peo¬
ple who "may speak of an early
-
goes
ex¬
Mr. Churchill cautioned that "this®1
Thank you for the stand that you are taking against this further
encroachment by the NASD in its 5% profit limitation proposal. First
drive
evei[y dollar of this
"Moreover," son that is one of the material re¬
he said, "judg¬ sults of this war expenditure.
"You may have observed also
ing by records
of day-to-day that in the present fiscal year we
security trans-; expect to cover about half of our
actions across! $5,500,000,000 of expenditures by
o u r
border, taxation,
ing even during the war years."
see
-
a
Government
purposes and part of the remain¬
der represents
the indirect cost
Prime Minister Churchill declared
1
with the fact that it permits its members
they tried to establish
of
penditure
coun¬
this investment has been increas-
cover.
the NASD reconcile its 5% profit ceiling on securities
take 50%?
cents
plant
ownership."
will
can
Preferred
separate
DEALER NO.
How
■
$4,000,stake
our
Dominion
our
today
spending at about 11
times the peacetime rate, over 88
branch
•
now
is
vestments and
rule is not re¬
the SEC insists
promulgating a bid and asked
it
while
try in the form
limitation
rule
a
000,000
scinded shortly or
disclosure
inves¬
acquired
something
"
quite likely judging from a press
&
As bearing on the Canadian sit¬
uation, Mr. Spinney has the fol¬
lowing to say:
"You may have observed that
tors
just about everybody in the in¬
dustry. In any event, if the NASD
profit
United
States
literally swamped with letters, telephone calls
The only favorable one
days of
peace
personal /visits from dealers from all parts of the country who
were bent on condemning the action of the NASD in arbitrarily issu¬
ing a.decree limiting the profit of its members.
As many comments
as can be accommodated
in this issue are given below.
(As in the
past, we are fully observing the dealer's request that neither the
vpaled.)
because
in the
and
firm's
Common
•
iliSl Limitation Decree :IfilS
Editor
Teletype NY 1-1203
Meaning
As
vention of the Investment Bankers' Association of
Our
Information
INC.,
Members New York Security Dealer3 Assn.
Relinquished It
Projected Into Post-War Years If
Be
QUOTED
-
Abandonment Of Philosophy That Private Enterprise Is
Newburger, Loeb & Co
*NOTE—On account of the fluctuations
in the rate of exchange, remittances for
be
Save
Continues
SOLO
-
Statisticcl
Played Out And That Full Employment Can Only Be
•'.
must
Saving
That
Bought—$old-—Quoted
I
Monthly Earnings Record—Mth.. .$20 yr.
State & Municipal Compendium—
Semi-Annual
.,.$35yr.
Relieves Desire To
Act
j
Publications
Complete
L f. COLDWATER £ CO.
Continental
Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
BOUGHT
President Of The Bank Of Montreal Stresses Need For
CORPORATION
Subscriptions in United States and
Possessions, $26.00.per year; in-Dominion
,
Street,' New York
Currency Dilution And Increas¬
TITLE Co.
ing Productivity Key to Post¬ CERTIFICATES
war Debt Problem: Spinney
SECURITIES
second-class matter Feb¬
as
our
fJo
CHICAGO 4
Teletype NY 1-832, 834
ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
'3, 1879.
of
Dealers
York Security
Board of Trade BIdg.
Field
Copyright
New
Broadway
NEW YORK 4 A
Other, Offices: Chicago—In charge of
Fred
your
quickly;
Telephonet WHitehall 4-6551
banking,
etc.)
news,
in
be
Obsolete Seeur;Ties Dept.
Exchange
issue)
bonds
will
/supplied by
Teletype NY 1-5
Members New York Stock
advertising
arid: every Monday
(complete statistical issue—market
tation
.Telephone HAnover 2-4300
Thursday
every
(general
Cuba Railroad
week
a
and
strongbox
25 Broad Street. New York
Published twice
tansifir
B. S.
High Grade
Sugar Est.
3-3341
Herbert D. Seibert,
'
interested in
ave
Alegre Sugar
Antilla
25 Spruce Street, New York 3
BEekinan
ftwWiaiHaiw'iivAw
L
and
Company
Publishers
.
■'•'■l'--J-fft-^iT-|tr,?W-~.fillil'ir<)l>niiaiittrfiiirTim:'-»ii-'ilT-|!:"fXI»ln'filMln»Tilii[
THE COMMERCIAL & FINANCIAL CHRONICLE
CHRONICLE
S*. Patent Office..
U.
''v a*'-" '•
'
ii^u..i^u»-.Mm.^u„.-
Number 4228
158
The
—iniajj
National Radiator
am
'V
I
.
DEALER NO. 3
■
:
you might have lost sight of something.
You are the
Champion the Securities Dealers of America have.
The- big
boys/in the NASD timed that 5% missile very nicely to suit them¬
selves.
Do you know that dues were payable by almost all members
Thought
best
(Continued oh
page
1873)
•
BecWutici
'
Wyeth
&
Co.
'Since 1893'
Analysis
HOIX RgSE S TRgSTER
Established
NEW YORK
LOS ANGELES
Members N.
74
Members Los Juries Stock Exchange
Company
Y. Security
1914
Dealers Assn
Trinity Place, New York 6, N, Y.
Telephone:
Teletype:
BOwIing Green 9-7400
NY 1-375
ypon
request
0. E. Untcrberg Sc. Co.
Members New York Security Dealers Assn.
61
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-166'S
j
THE COMMERCIAL & FINANCIAL
1872
CHRONICLE
Thursday, November 11, 1943
ADVERTISEMENT
NOTE
From time to time, in
-
there will appear un
CROWELL-COLLIER PUB. CO.
will be
of interest to
This is number
this
article which
hope
fellow Americans.
our
five of
series.
a
SCIIENLEY DISTILLERS
Markets In
i
'J
•
1
;
Bought
\
'
is,
V(
t
Sold
-
-
.
-
Quoted
x
c'i
f
The Past Ten Years
Goodbody & Co.
Over- the - Counter Securities
Just ten years ago an amendment
Members N. Y. Stock Exchange and Other Principal Exchanges
NEW YORK
TELETYPE NY
7-0100
the Constitution of the
States
CHICAGO
TELEPHONE BARCLAY
Since 1914
to
105 WEST ADAMS ST.
115 BROADWAY
piece. And
Business and Finance leaders
of
Members
74
York
New
Telephone:
'
Teletype:
.
,
.
Promote
BOwling Green 9-7400
A. F.
NY 1-375
Peace-Reemployment
Whitney, Labor Union Leader, Criticizes Program
toward
maintaining production ? and
permanently high levels following the war emergency was emphasized
by Dr. Benjamin Anderson in his article captioned "What Can The
Government Do To Promote Post-War Re-Employment?", which
appeared in the "Chronicle" of Oct. 21. The author, who was formerly
Bondholders of—
Denver & Rio Grande Western R. R. Co.
Rio Grande Western
economist
Bank
Railway Co.
Reorganization
plan
proposed
and
must
be
now
submitted
by
bondholders
to
and issues held
amounts
to
for
Commerce
can
Urgent
addresses,
vote.
and
names
New
of
Chase
York
National^"
City, and
should adopt in order to
and
permit
business
and
—■■
industry
to
—'1
.
President, City
and
Our
j
ing the past ten
Swan,
Trustees,
production
STOUT STREET
DENVER
—
Quoted
In
Interesting
a
Growth
Pepper
1
Situation
Dallas Ry. & Terminal 6%
All Texas
Check
us
Analysis
1951
on
on
RAUSCHER, PIERCE Cr CO.
Landreth
period. Not
a
pleasant picture,
1
Now
we
of
again at WAR. Now
are
really
some
fighting with
are
and
■
every
our
way
our resources
our man¬
of life—our right to think
of the
at
to
individuals
suggested
and
in
Of
Dr.
outside
finance
have
favored
the
are
re¬
suggested.
of
A
these
will be
sound and
Hogan, Sr.
n
d
e
theory
"There
on
Dr.
rson's
that
is
master mind able to solve the
(Continued
page
right
can't
ten
no
eco-
1894)
as
worship
visit,
us
prohibition period.
Let
us
that period with "the last
years."
And, let
us
who
are
forced by vari¬
circumstances to stay at home
ous
while
our
sons
us
against all
manner
could
wreck
passing,
absent
are
for us—let
in
please
as we
individuals. So that it
happen again, let
compare
•
should
behind
A
W.
Dan
—our
United
States
ap¬
published in
•-
squarely get
given below and ad¬
are
ones
think
The press of
the
Nov.
on
by
feasible.
considerable
comments
it
and talk and
Anderson,
which I
industry
icy
overhaul
number; of
fighting
guard the home front
of schemes that
from within. And,
us
may we
remind those who
just can't think of all things these
days: ten
years
the Alcpholic
ago
Beverage Industry began provid¬
Bldg.
ing much needed
M Security Dealers
ST. LOUIS 2, MO.
Teletype—SL 486
that
in retrospect.
can
subsequent issues.
803
who
us
develop
Peitason, Tenenbaum, Inc.
San Antonio
•
still vivid
are
mentally, the chamber of horrors
large
ditional
DALLAS, TEXAS
Houston
they
of those of
Congress
'
4; others
Southwestern Securities
of time. But
in the memory
maintain
peared in these columns
Utility Preferred Stocks
now
ounce
employment
number
request
still livid;
were
hood and womanhood—to continue
the program of governmental
pol¬
COMMON
So'western Pub. Serv. Com. & Pfd.
they
paled by the healing influ¬
our
f
York Corporation
Southern Union Gas Common
are
whether
"Chronicle" with .their views
.
Republic Insurance
•
ago
question
garding Dr. Anderson's thesis and
Dr.
long
they
lived, perhaps precariously, through
years
be
prohibition period. See the
"scars" that illustrate its
pages. Not
along the lines
both
Industry
with the
'tHe
to
history that deals'
our
Since publication of the article,
1, COLORADO
ST. LOUIS
An
Sold
—
chapter ■ in
high
and
Sought
&
...
consequently,
and,
wages.
a
DALLAS
has striven for since
man
individual; respect for constitutional
that it is leaking badly and there
maye
did lose
we
the
courage and
the patriotism
provide
The Denver & Rio Grande Western Railroad Co.
1531
Bank
twelve
or
loss." For
respect for the sacred rights of the
ence
ship of State has had to
such tremenodus loads dur¬
do the job which is essentially the
undersigned.
Henry
; V
Trust Co., Oklahoma City
carry
accountant would
as an
a
long before-the Magna Charta
we
not that of government:
McCarthy
■
National
function of private enterprise and
Wilson
'
DAN W. IIOGAN
is
University
of
California,
Los
Angeles, set forth a program of
policies which the government
United States District Court
that all holders of above securities send
with
Interstate
the
of
Professor of Economics at the
now
Denver & Rio Grande R. R. Co.
Commission has been approved by
off,
"with
authority. Just turn back
single
employment at
v
democratic people was
that most precious of all things that
That the government itself can make probably the greatest
contribution
that "ignoble" experiJ
so
a
civilized
Trinity Place, New York 6, N. Y.
an
something. We lost, temporarily,
Laud Bi M. Anderson Plan To
Association
Security Dealers
written
say,
Established 1914
United
repealed. A free and
was
articulate people had spoken its
1-672
ment
HoixRsseSDrsster
CORP.,
NEW YORK
-
.
H
\
space,
we
L. D. 240
government
where its total
for
revenue
Which reached
a*
our
point
second only to
was
•
the National Income Tax! Ten years
NEW
PHILADELPHIA
annual
ORLEANS, LA. —At the
meeting of the New Orleans
Security Traders Association, the
TRADING
following
MARKETS
vSr/x
YORK CORP. COMMON
and
elected for the
were
Co.
4
officers
directors
ensuing
year:
-
■
,
System
Teletype—SL
active
membership from Kemper
F. Peabody to Harry
MacCallum,
Bell
St.;
approved.
and Co.
approved.
PH 265
—
N. Y. DI
a
continuing
"
ij
interest
in
Southern Advance
Copies of this
randum may be
from
>
had
upon
request
Attractive Situations
fer
St., Philadelphia 3
Phone
COrtlandt
PH 30
to
N.
Y.
C.
7-1202
President, Jos. H. Weil," Weil &
attractive
situations,
accord¬
memoranda prepared by
Herzog
&
Co.,
170 Broadway.
New York City.
Copies of these
ing
to
memoranda may be
obtained upon request from Her¬
zog & Co.
interesting
Building, to conduct
business
a
specializing in
(Jac.
Breckenridge, Assistant Vice-
President
Bank.
of
j officers
-
in
are:
Kingsbury
&
Wool f oik,
& Shober.
Bioren
Whitney;, National
.
Directors
M.
-
securities
Texas Municipal bonds. Mr. Mc¬
P,; lntyre was formerly a
principal of
Treasurer,' Mclntyre-McRoberts & Co. ±'
Vice-President
Ducournau; Secretary
F. P.
Machine
Co., Stromberg-Carlson, and Haloid Co. of¬
BOENNING & CO.
Joseph H. Weil
,
Peitason, Tenenbaum, Inc.
Gisholt
the Milam
"
Arnold;
Common Stock
ANTONIO, TEX.—Robert
Mclntyre has formed Robert Mc¬
lntyre Company with offices in
memo¬
Bag & Paper Co.
Private
when
crops
! plowed under, and
bushels
were
a
of
was no
being
were
when
farmers
paid for not raising instead of
And, ten
the
-
;
years ago,
addition
J.
W.
Alvis,
.■••••'
to
■:
the
Kingsbury;
and
Wool folk,
Robert
Huggins
&~Co.
To Admit
Co., 1503 Walnut St.,. members
.
of the New York and
Stock
Philadelphia
Exchanges, will admit Wal¬
ter D. Larzelere to
their firm
on
the rehabilitation
which
were
of
new
plants'
of old
ones :
literally converted "over- '
night" to" the making of precious;
alcohol for wartime purposes
the emergency arose.
Not
a
when
drop of
whiskey ..is being made today by any
legal American distillery. The whis¬
key which is
now
being voluntarily
rationed to the trade... and in many-
PHILADELPHIA, PA. —Bioren
&
construction
and
SAN
'
Pennypacker 8200
market;
the
an interesting situ¬
according to a memoran¬
dum issued by Peitason, Tenen¬
baum, Inc., Landreth Building, St.
Louis, Mo.
1606 Walnut
of
Alcoholic Beverage Industry began
Corp. Attractive
ation,
■
millions
for
-
Alcoholic Bev¬
Industry began providing
erage
market
foodstuffs.
York
poration offers
have
Ten years ago the
-
4-1527
Common stock of the York Cor¬
We
twelve
raising normally revenue-producing
Philadelphia 2, Pa.
Teletype
were
surplus grain for which there
1
transfer of active
membership
from Frank Yale Cannon to Leslie
F. Tarbell was also
Members Philadelphia Stock Exchange
Members New York Stock Exchange
Phila. RIT 4488
was
j The application of Syle
for
Members St. Louis Stock Exchange
industry and in related
own
America, willing and anxious to work.
,
The
application
of
Peabody,
Tyner & Co. Inc. for transfer of
80
in its
million to fifteen million jobless in
request
BUCKLEY BROTHERS
1529 Walnut
&
Co., were
membership in the New
Security Dealers Associa¬
York
Jr.,
on
Feibleman
the Alcoholic Beverage Industry
industries—when there
;
COMMON
*Memo
J.
ago
began providing work for thousands
elected to
;
J
509 OLIVE ST.
Bell
LONG BELL LUMBER
T.
tion.
V^VV;-v.^
SAINT LOUIS
H. H. ROBERTSON
At a meeting of the Board of
Governors, Irvin Hood, Cohu &
Torrey, and Sidney L. Feibleman,
partnership in
December 1st.
places by the trade to the consumer
...was
made
in
peacetime. THE
PAST TEN YEARS! Think of the
preceding ten years...years of pro-'
hibition which did not
prohibit.'s
.
MARK MERIT
of Schenley Distillers Corp.
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
158
1
1
1873
-
1
-
-
■
Future of St. Paul Bond! Issues
CANADIAN
under various Plans
Railroad
Reorganization Securities
SECURITIES^
A New Letter
Copies Available
to
Brokers and Dealers
Canadian Bank Stocks
.
Vilas & Hicicey llli
Members New
York
Stock
49 Wall Street
International Utilities "A"
Exchange
pflugfelder, bampton & rust
New York 5, N. Y.
Telephone: HAnover 2-7900
Members
61
•
<
,
New
York
Broadway
New York 6
Telephone—Dlgby* 4-4933
Teletype: NY 1-911
Sun Life Assurance
Stock Exchange
>
Bell
HART SMITH & CO
Teletype—NY 1-310
52
WILLIAM
St., N. Y. 5
Bell
Dealers
Virtually Unanimous In Condemning
NASD Profit Limitation Decree
Oct. 1st AND
on
their decision
they showed real "smartness'' in waiting to make
until after Oct. 1st as they did.
That is sup¬
so
known
posed to be FAIR DEAL by their body.
they
don't sit up nights to wonder how they can do such things.
How can
anybody resign without having his name blazed before SEC by
NASD under suspicion.
If the NASD had rendered that decision be¬
fore Oct. 1st members just would have omitted paying their next
year's dues and lost membership automatically while if they resign
after dues payment they must subject themselves
to. a checkup by
NASD
before
No
one
can
tell
me
being permitted to become effective.
Smart boys in
there are smart boys all around the world. My
NASD and SEC just as
.suggestion is that
an
•and called Unlisted
organization be formed to combat SEC-NASD
Security Dealers of the U. S. A. and be for
pro¬
tection of dealers.
DEALER NO. 4
We
profoundly impressed by the article in the Oct. 28
issue on the subject "Securities Business Could Not Survive Under
.NASD Rule Limiting Profits."
This article certainly covers in a thorough going manner a trend
in the policy of the governors of NASD
that, for the sake of the
were
securities
industry,
should
be
scotched
before
it
goes
further.
any
That tendency is to increasingly stifle the earnings of the profession.
This is in direct conflict with the increasingly higher ethics that are
demanded of the profession.
will be
one
-Many rail
•
(Continued from page .1871)
If this unrealistic trend continues there
result for certain—the small dealers will have to go out
of business.
They cannot possibly survive.
The article in question brought out a very important point.
That
the wholly fallacious argument that a°5% profit limitation should
be applied to the whole profession.
Such a ruling would be undemo¬
cratic, unAmerican, and would smack of a bureaucratic dictum be¬
New York
Railroad Securities
have recently been inclined to adopt
men
railroad
of
particularly
traffic
and earnings
marketwise to
vulnerable
psychology.
Too
idea, fallacious
it
as
railroad securities
New
the
end
of
Chicago, Milwaukee
adequately
investment
by
there is still
lative
for
a
if
rails
further
Bought—Sold—Quoted
for specu¬
LEROY A. STRASBURGER & CO.
some room
action
the
speculative favor
should
extended
continue
1
for
WALL
WHitehail
possibilities.
October it
was
Late
Teletype BS 259
:
Minneapolis, St. Paul &
STREET, NEW YORK 5
3-3450
Teletype: NY 1-2050
Saull Ste. Maria
When,
City,
sell¬
as
Railway Co.
and if issued
ALL
to offer in¬
appear
teresting
:
S 0 0
period.
In this category the Kansas
Fort Scott 4s, 1936, recently
ing around 70,
0425
Gold 5s, 1975
supported
but where
values
148 State St., Boston, Mass.
Tel. CAP.
I
& St. Paul
for those situations where present
are
request
on
4s/88 C'p'n and Reg.
I
the
will
prices
sent
& Pacific
Gen.
European
bring a sharp paring of
prices.
With this in view there
is a constantly expanding search
even
discussion
Chicago, Rock Island
selling on
actual signs of the approach
war
4s, 2003
undesirable
felt that indiscriminate
to
Lehigh Valley
be this group will be
recurring waves of peace
may
be, that<«>
may
are
holdings for the post-war.
In groups not supported by bet¬
ter informed investment buying in
periods of general weakness it is
any
Toronto
V
speculators have had drilled into them the
many
1-395
Montreal
a more con¬
servative attitude toward the highly speculative sections of the rail¬
road market, on the theory that regardless of how high the post-war
level
HAnover 2-0980
Teletype NY
ISSUES
MINNEAPOLIS &
in
bought
ST. LOUIS RAILROAD
announced that the
sold
-
quoted
—
.
was
cause
it would not be based
on
any vote or
expression of opinion by
the membership which constitutes the NASD.
•
Perhaps the member¬
ship has nothing to say about it.
Such may be the case.
The point you brought out that in any survey to determine the
mark-up practice of every dealer firm, the large houses doing a vol¬
ume
The
of business should be excluded from
large houses
excellent
in the minority.
They are located in the finan¬
a large volume of business and consequently
make profits with a much smaller margin.
But what about the vastly greatek number of smaller dealers in
cial centers.
can
the survey, was
are
They enjoy
all the lesser communities in
our nation which are doing an outstand¬
ing job in servicing their clients?
What is their composite opinion
about the average mark-up which they must have in order to stay in
business.
That question, we think, should be answered.
Another fallacy in the whole line of reasoning of the NASD
governors is the theory that because a small dealer has no commit¬
ment in
issue, and he buys it in the market as he makes the sales,
"riskless."
This theory could not be possibly
farther away from the truth.
The small dealer has a very personal list of clients.
He has
an
various bondholders groups
reached
by'care-;
years
to
the
court
the
on
Minneapolis & St. Louis 4s
new secur¬
erential
the
of
of
cleared
the
Des
63
holds
nally
toward the probable
by
promise proposal has
chance
of
Under
Fort
success,
the
Scott
origi¬
Commis¬
the
is felt that the
new
an
At the
ent
com¬
excellent
bonds
Serial
price is adequately supported
by real investment value there is
obvious element of speculative
proposal
promise in the Income bonds to be
received.
They will be worth at
the
allocated
par
least
value of
Mortgage bonds, and $267
in new income 4%s.
Deducting
the cash from the recent selling
price of the old bonds gives an
appraisal
of
$638.66
and
Special
Obligations
Broad
no
bonds.
On this
to
basis
issue
Even in
of
a
severe war
psy¬
1st Mortgage bonds would be
selling at a better level than 87
trinsic
NEW
Private Wires—Rector 2-6528
investment in
xwxw
&
YORK
2-6529
.
5
than
investment worth
sufficient
toL
adopt,
an
makes
Mclaughlin, baird & reuss
old
this
Scott
Fort
may
not ap¬
a
be
on
contingent
securities
the
it
basis
around
of
both
interest
would
be
on
over
American Metal Co. Has
Interesting Situation
Arnhold and
S.
Bleichroeder,
Inc., 30 Broad St., New York City,
have prepared a detailed study of
American Metal Company, Ltd.,
which the firm believes offers
interesting situation.
setup of the
company
an
The present
is somewhat
outmoded and if the possibility of
reshaping this should materialize
there could be
a
considerable ap¬
preciation in the price, the study
declares.
Copies of the study dis¬
cussing the, situation in detail
be
had
from
Arnhold
Bleichroeder, Inc.,
on
may
and
request.
weighed against the lack of irir
newly
NEW
TELETYPE
is
price levels.
more
support
consideration
final
The
the
attractive
bonds
are
yield
is
viewed
as
an
New York,
the
if
afforded
the
invest-
On the basis of only the
Certificates
Lackawanna &
of the
extremely pertinent
YORK
NY
plan,
copies
of
our
which
study of the Special
are
still
available
upon request.
1. h. rothchild &
Members New York Stock Exchange
HANOVER 2-1355
would
and
and
STOCK
Master's
TEL.
distribution,
4.6%
fixed
SEABOARD AIR LINE
request
'
bonds,
deducting the proposed cash
The order authorizing the call for redemption of the
Receivers'
STREET
the
reorganization field, it is a
adequate potentiality when
optimistic view ment..
Profit Potentialities
WALL
return
of the
Western Ry.
"Rock Island" Reorganization
ONE
most
present price of the old Fort Scott,
an
ideal situation for .those in¬
clined to
on
a
^
of
While
has become accustomed to in
the
sound
income
reorganized* compaiTy" " Thus" "in- vestment risk inherent in present
9
120 Broadway
>
Circular
favorable
large potentiality per¬
centagewise in relation to what
one
a
'
as
pear
Income
new
value
bonds.-
consideration at all to the
new
Street
Teletype
N, Y.-Phila.
a
the
as
PHILADELPHIA
297
In the event of
speculative market the new In¬
comes
might even command
a
Mortgage bonds at 87 and giv¬
prospective
INCORPORATED
and
pessimistically the
view the railroad pic¬
public may
ture.
no
how
price as high as 60 which would
add approximately 16 points to
securities.
new
ing
Stocks
STROUD & CO.
296
something in the market
matter
1st
chology market it is felt that the
PH
time that the pres¬
an
are
$61.34 in cash, $733
new
same
y
new
after
the
"net" price
further dura¬
tion of the war.
capitalization
suggested
it
sion
and
interest
the
6%.
fairly well within the bond¬
debt
fixed
new
1st
Guaranteed
South
Street
the market is evaluating the new
Mortgage Bonds
123
Incorporated
New York 5, N. Y.
Bell Teletype NY 1-897
Wall
ment of the claims of these agen¬
cies in cash.
As the new proposal
ed
Dodfe 4s 1935
v-'.
•"•.v
was
New York
Teletype NY 1-51E
1951
Fort
&
Moines
Frederic tl. Hatch & Co.
This
controversy
St.
WHitehail 3-9200
on
by compromise settle¬
up
Central 4s
Iowa
Broad
1938
pref¬
bondholders.
other
phase
Central 5s
Iowa
the expense
treatment at
INC.
30
1949
Minneapolis & St. Louis 5s 1962
ground that the
RFC and RCC had received
Arnhold and S. Bleichroeder
Minneapolis & St. Louis 6s 1932
Minneapolis & St. Louis 5s 1934
a pro¬
reorganization. The origi¬
nal plan had been turned down by
the
Equipment Trust Certificates
■
as
ities in
indicated
Railroad Securities
had
Francisco
agreement
an
posed allocation of the
that it thus becomes
painstakingly built them up during the course of the
(Continued on page 1910)
Louis-San
St.
(in reorganization)
of the
5
1-1310
co.
120 broadway
COrtlandt 7-0136
n. y. c.
Adams & Feck
63
specialists in'rails
5
Tele. NY 1-1293
Wall Street, New
BOwling Green 9-8120
Boston
Philadelphia
York 5
Tele. NY 1-724
Hartford
S.
THE COMMERCIAL & FINANCIAL CHRONICLE
1874
Recent
Analysis
"SUGGESTED EXCHANGES
Inquiries Invited
Request
on
Merchants Distilling
Due
Common
Income Debentures
CORPORATION
Due 1978
A timely study of particular interest '
request
on
v
investors
to
.
Special analysis
|i|F0REIGN;-il:
POSITION"
1953
Associated Gas & Elee.
Corp'n
TO IMPROVE TAX
STRUTHERS WELLS
American Gas & Power
Debentures
Thursday, November 11, 1943
this
at
SECURITIES
time.
-:
Copy
Stock
on request
Bought
Ryan-Nichols
FAROLL BROTHERS
Member
William A, Fuller & Co.
York and principal
"New
Stock Exchanges
105
Salle St.
So. La
208
209 S. La Salle Street
CHICAGO 4
i Phone
Andover
Me.
1480
CG
Tel. Dearborn 9200
15(5
Adams
Industrial Brownhoist
Salle
Preferred
&
South
alysis
of
Doyle, O'Connor & Co.
compiled
an an¬
Surface
Chicago
dated
Securities,
Junior
current
27.
&
Co.,
120
South
La
Street, have recent figures
Reliance
Steel
Common
and
*
*
Street, have compiled recent
Salle
data
Chicago, North
on
Railroad
Milwaukee
public
Drill
on
Shore
and
Tool
&
will be sent
Re¬
on
Co.,
&
which
request.
Enyart, Van
Their1
is
week,
with
"Bond
Review,"
Co.,
100
confined
articles
Stocks.
Fred
Phone State 0101
W.
South La
Fairman
Salle
the
on
this
St.
pared late data
craft
&
&
208
Co.,
pre¬
Interstate Air¬
on
Engineering
Corporation
mentioned
their
Bequest
Faroll
Salle
Brothers,
was
ILLINOIS
copies
also
entitled
issued
a
month they
special letter
"Suggested
Changes
to
Improve Tax Position" embodying
provisions of the statute, invest¬
policy, market action, longgains and short-term losses.
While
not
recent
as
the
as
other
mentioned
this
above,
timely.
Thomson
McKinnon's
&
tical Library, 231
to
South La Salle
Bros.,
Board
a
Trade
of
late bulle¬
"World Sugar
Bowl,"
significant review of Cuba's
strategic place in the world sugar
picture.
Cdpies of Bulletin, to¬
gether with reports containing in¬
teresting conclusions on securities
are
of
-
«;
Cuban
two
sent
sugar
companies,
request.
on
r
.
have
western
prepared
covering
Elevated
North¬
Railroad
4068
First
Kerlyn Oil Co.
Class A Stock
1.95
South
I.a
Salle
Association
the
Unification
the
and
E. II. Rollins & Sons,
Inc., 135
South La Salle Street, show latest
data on Wisconsin Hydro Electric
Company
St., Chicago, III.
Co.
new
Tele. CGO 650-651
6%
preferred
stock
in
four-page analysis
available
Cutler
&
on
No.
District
8
of
the
National
of Securities
their
which
is
request.
zoo.
Nominations
fill
terms
will
be .made
to
expiring Jan. 15, 1944.
Regular candidates will be named
successors to the following of¬
for
ficers:
F.
Selected
135
Investment
South
prepared
La
an
Selected
on
Inc.,
entitled
Salle
Company,
Street,
interesting
have
W.
S.
Gilbreath, First of
booklet
American
Shares,
"Outstanding Facts
SECURITIES
Liberty Baking: Corp'n
Selected American Shares,
Inc."
Copies of this folder may
be obtained upon request.
Central Republic Com¬
Allen,
Chicago;
Paul S. Grant,
Company, Mil¬
waukee; Walter E. Kistneiy A. C.
Allyn
and
Company,
.Chicago*
John J. Quail, Quail & Co., Dav¬
pany,
The
About
bond
Steel Com.
Hammond Instrument Com.
CASWELL
co.
120 South La Salle Street
CHICAGO 3
j Teletype CG
1122
Phone Central 5690
ac¬
that
or
of
firm of
any
attorneys acceptable to the
Ilalsey,
Stuart
condi¬
tioned its bid
proving
receipt of
on
opinion
by
ap¬
an
Chapman
Cutler.
„
&
hours
opened,
after
and
bids
the
were
preceded
was
by
one-hour public session by the
committee
nance
of
the
a
fi¬
board
of
bidders
appeared
at
the
for acceptance
of their offers.
P.
P.
Princell,
Vice-President and Secretary of
meeting
to
press
to
ments and
part
be
able
obtain
to
proving legal opinion
was
this
that
of
the" weekend
there
issue
the
it
bidder.
Un¬
understood
was
question of the validity
unpaid bills
$4,726,000 of
to
was
submitted
be
Court.
Both
the
to
Su¬
of the
parts
to be delivered accom¬
were
panied
Chapman
by
Cutler
&
opinions..
The question of which bid to
posed
lor
complex
a
county
fiscal
ques¬
officials.
The firm of Seipp, Princell had
named
ap¬
were
reports in
and
bid,
the
the
preme
the
if the cost
actual
tation within a short period of
time, .and. he obtained the award.
At
could be agreed upon by
as
county
der
was
by Dec. 1 and the
such time in the
at
part
future
the flo¬
on
of judg¬
be delivered
that
an
$3,620,000
unpaid bills. The first part
the
of
interest, and the second
to cover the $4,726,000
to
reasonably certain that he
was
by sep¬
The first part .was
of
tion
he
the
cover
formed
would
securi¬
to be covered
was
accept
commissioners
214%
resolutions of the board
commissioners.
Seipp, Princell and Company, in¬
the
all
a
split into two parts, each of
which
arate
second
,
% Action by the county in award¬
ing the bond issue was delayed for
lowest
were
interest cost,
computed to the
maturity
date
of
the
bonds. Figured to the call dates
of the bonds, the Ilalsey, Stuart
un¬
bid had named the lowest inter¬
La Salle
est cost.
had obtained
approving opinion.
■
Figured
maturity
Term of Flotation
v
Milwaukee
enport.
/
F.
Howard
Allen
is
Oct.
1
r&.
■
.*
■
Straus Securities Co., 135 South
Salle Street, have
prepared
La
up-to-date
reports
on
Central
Paper Co. Common stock, LeeceNeville
Co.
Common
Kerlyri
Oil
Co.
Class
stock
A
and
stock.
These recent analyses will be sent
on
request.
and
to
■"
;;.;^v'
the
full
20-year
the issue is to fund
ing
of
judgments
the
Dec.
fiscal
of
Illinois
The
last
the
has
been
Illinois
firm
of
pressed
a
the
by
the
ex¬
willingness to
a
The
to
law
approve
firm, however, declined
approve
the
of
bond
a
issue
to
unpaid bills, until the
them
also
was
fund
validity
established
by
winning bid of Seipp, Prin-
174
of
%
Company
$3,633,000
of
securities
$4,713,000
be callable in
as
was par
the
and
2Us.
for
the
Seipp,
for the
issue
as
balance
The $3,633,-
000 of Is4S are to be delivered
call
of
$3,635,676
dates
interest
of
is
SU¬
a
SI,730,106
Ilalsey, Stuart bid.
of
Princell
tolcl
commissioners
that
cost
tne
under
compared with
cost
Argument
Mr.
bid
Fig¬
of
cost
Princell
as
interest
net
Bidders
the board
the
of
interest
the
bonds should be fig¬
maturity, because the
only legal obligation had was to
on
ured to full
retire the bonds in 20 years.
A
representative of the Ilalsey, Stu¬
art
syndicate pointed out that the
county's annual tax levy provided
for the redemption of the bonds
serially through the exercise of
call
be
to
Supreme Court action.
The
the
MS,472.50,
in¬
and
total
a
under the
bond issue to fund those items.
Executive
an¬
the
an
Cutler
&
to
bonds,
composed
Court,
Chapman
offer,
ured
the
claims
is
determined
Supreme
Dec.
is
by
of
would
$120,024 named in the bid.
of
outstanding judgments and in¬
terest
of $3,620,000
and unpaid
bills amounting to $4,726,000. The
validity of the judgments already
CHICAGO, ILL. W. Edwin Stan¬
ley, partner of Mitchell, Hutchins
& Co., 231 South La Salle Street,
was elected to membership in the
Chicago Stock Exchange by the
it
bills
as
of
first
Committee,
of
total
a
would he paid, taking into con¬
sideration
the
premium
of
.
issue
interest
paid under the Seipp, Prin¬
art
funding
Legislature.
in
and
,
The
session
$3,346,000
cluded
■
nounced.
unit
authorized
was
the
bonds,
in
cell bid. Under the Ilalsey, Stu¬
outstand¬
unpaid
year.
the
83,628,050
be
dated
years.
1,11942, the beginning of its
operation
act
and
governmental
current
of the District No. 8 Committee.
Stanley Cgo. Exch. Member
is
all
of
of
20
in
matures
*
Chairman
issue
bonds, however, are optional
serially 1945-61. The purpose of
;
.
bond
new
The
$4.00 Cumulative Pt'd.
Reliance
asso¬
bidder.
The
Michigan Corp., Detroit: Howard
KEAL ESTATE
is
legal opinion of Chapman
cept the
Nominating Oommittee
Dealers,
proposed
Municipal
Ownership Inc., including the States of Illi¬
Plans,
Copies with dealer's im¬ nois, Indiana, Iowa. Michigan, Ne¬
print will be supplied at a nom¬ braska and Wisconsin, has ap¬
inal charge on request.
pointed the following committee:
William A. Fuller, William A.
The firm has also
prepared a
study showing the practicability j Fuller & Co., Chicago, Chairman;
I
of public
ownership of the Chi¬ William H. Brand, The Wisconsin
cago Surface and Elevated Lines. j Co., Milwaukee; Boy W. Lericlie,
Wheclock & Cummins,; Inc., Des
Ask for "Chicago Tractions Under
Moines;
Elwood
H.
Schneider,
Municipal Ownership."
E. H. Schneider & Co., Kalama¬
Leece-Neviile'Co.
Tel. ANDover 57C0
Co.
&
ciated, specified that it would
an
Mortgage 5%
Bonds
due
Sept. 1, 1941.
This outlines the
proposed treatment of these bonds
Paper Co.
Straus Securities
O'Connor
Stuart account bid
as
.
Bell Sys. Tele. CG 537
Central
by Ilalscy, Stuart &
associates.
Seipp,
and
issue
premium of $120,024, the equivalent of 101.4381.
Under this bid, the issue was to
Princell, with whom the firm of I be
Doyle,
Co.
under
Tel. RANdolph
The Ilalsey,
ties, naming
Street that the firm
NASD District No. 8
Ilalscy, Stuart Bid
by
of
substantiated
a
1960, and $346,000 in 1961.
for the
both
Strauss
taken
were
commissioners. Representatives of
Street, Chicago 4.
1952, in equal annual amounts
$500,000 from
1953 through
,
submitted, one by the firm
Seipp, Princell and Company
re¬
Statis¬
in
of
were
24
Any of the above is free on
quest.
Address
inquiries
a
This stock
#
memorandum
Exchange
Chicago Board of Trade
and
request.
Street,
j
bids
the
Inc.,
have
were
county last week, two offers
another
tin entitled
recently qualified for sales in
Salle
When
the
test suit.
Co.,
past
funded
by the Illinois Supreme
and
some
guiding princi¬
interesting to holders of
rails, whether stocks or bonds. •
very
the
certain
until
be
a
is¬
Leason & Co., Inc., 39 South La
SOUTH 1A SALLE STREET
Stock
on
Missouri.
"'yV ] :' V
FRED W. FAIRMAN & CO.
Chicago
La
Corporation
available
Members
South
Street, have prepared re¬
analysis of Merchants Distil.-
ling
BOUGHT—SOLD—QUOTED
CHICAGO 4,
208
cent
Engineering Corporation
opinion,
Court in
also
recently
Bldg., have prepared
Interstate Aircraft and
legal
the. claims to
of
enumerates
During
week, aside from the break in the stock mar¬
some time had been the subject of consid¬
certified
might
sued, separate release "Railroad
Reorganizations — Progress and
Capital
Write-downs"
which
and this descriptive brochure will
be sent on request.
Brochure Available
County, 111., embracing the City'of Chicago,
This bond issue for
ing
Fran¬
Louis-San
connection
nent and
Street, have
RANDOLPH 4696
interest, because the law:firm of Chapman & Cutler, which
normally passes on new flotations^
of
Chicago governmental units, or before Dec. 15 and will be ophad declined to submit an approv¬ tional in the amount of $367,000
Rails,
article is nevertheless very perti¬
Surburban Bank
Street
4
new
Salle Street circles last
Pacific
releases
Chicago and
Chicago U, Illinois
208
the
to
Western
on
request quotations
on
CHICAGO
$8,346,000 funding bond issue to the firm of Seipp, Princell
Company provided about the liveliest topic of conversation in La
a
ket.
this
West Monroe Street, will send on
Salle Street
of
leading companies.
ment
Camp '&
So. La Salle
208
erable
term
CO.
The award by Cook
accord
v
CQRP'N
on
Review"
"Weekly
ZIPPIN & COMPANY
'
'
Tordnto
Indianapolis
ples
by the firm
request.
upon
recent
NATIONAL TERMINALS
Descriptive
Exchange
exchanges
Chicago Brevities
their
in
tics and estimated earnings of the
Cruttenden & Co., 209 South La
Teletype CG 361
McKinnon
&
place to the Rubber Stocks,
reviewing the prospects for the in¬
dustry and giving market statis¬
be
1200
analysis of
6-
Stock
principal
all
York
and
In
*
La
New
cisco Reorganization Plan.
these data will be sent
South
139.9
first
Railroad.
on
231
CG
and
Salle
ADAMS
1510
Thomson
Lines
Oct.
request are Sep¬
on
earnings record of Chi¬
North Shore & Milwaukee
Caswell
a
and
231 South LaSallc Street
3
cago,
Incorporated
CG
York
New
,
St.
tember
S. Lat Salle Street
prepared
send
208 South La
Co..
&
Also available
have
La
a
Brailsford
208 So. La Salle St.
We
will
Chicago,
Street,
Salle Street, have
9600
Andovcr
recent analysis of
National Terminals Corporation.
Federal Water & Gas
Dearborn
Salle
CHICAGO
Tele. CG 116
231
Co.,
request
on
Deep Rock Oil
135
Chicago 4
*
Members
t
'
Chicago Recommendations
National Terminals
1st
South La
Quoted
—
THOMSON & McKINNON
& Cp.
Members of Chicago Stock Exchange
Sold
—
provisions, and that it would
logical for the government unit
figure the interest cost on the
flotation
to
the optional
redemp?
tion dates.
_
Commissioners. and fiscal offi¬
cials
of
the
county
expressed
a
preference for the Seipp, Princell
offer, because it provided the
by
They will be optional in prospect of completion of the fi¬
the amount of $500,000 in each nancing operation within a rela¬
year 1945-51, and $133,000 would tively short period of time. It also
1.
000 of 2J/2S
are
.1952.
The
$4,713,-
to be delivered
on-
offered
the
prospect
(Continued
of avoiding
on page
1875)
Volume .158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
1875
TRADING
Northwestern Elevated Railroad Company
First Mortgage
We
have
prepared
outlining
5% Bonds Due Sept. 1, 1341. '
..
*
BANK STOCKS
.
memorandum covering the above issue;
proposed treatment of these bonds under the
the
Ask for
our
Markets
all
on
Le
Chicago Traction
J
La Salle Street,
ILLINOIS
Bought
Acceptance
Corp.
Sold
•
Quoted
-
United
before-
the
the
anxious
Supreme
is
county
3
CHICAGO
CG
2424
the
approve
965
Tel.
$8,346,-
entire
of
sale
this
time
lay
bills.
$3,620,000 issue at
the judgments
a
the
fund
to
unpaid
'
.1
The
fact that
the
county
tually
awarded
the
issue
splitting the issue into
two parts. For that reason, it re¬
jected an alternate proposal of
as
circles.
They
Chapman & Cutler, providing for
refusal
of
ac¬
came
surprise to some financial
a
that
figured
Chapman
the
Cutler
&
Crawford Warns Against Economic
'
Nationalism And Economic Imperialism
"International
Business-Economic
world roads of trade for the future"
Conference
the
chart
to
proposed by Frederick
was
C. Crawford. President of the National Association of Manufacturers,
the
to
1,500 delegates attending the 30th annual convention of the
National Foreign Trade Council at the Pennsylvania Hotel on Oct. 26.
"We should be joining with the business and economic groups
other
of
tions
-.-—2^--
Bernlhal Heads
these
out
problems
o
1 d
w o r
f
f
of
e
And Research
confer¬
peace
ences,"
is
be
cated
with
that
will
war
be
to
cated
predi¬
F.
C.
Crawford
eco¬
justice.
"If we are to implement a last¬
ing peace, we shall have to avoid
both
economic
economic
realism
derlie
nationalism
imperialism.
based
fair
and
on
Economic
mutual
honesty
University, of Michi¬
for—it is past time that
policy based primarily
were
we
a
on
fight
foreign
Amer¬
formulated.
will be consistent with the welfare
No other peace can
business
thai
has
had
perience
has
He
Statistical
with
Keitfeoi?, ilsOormick Oo.
and
and
1938
Mr.
of
McCormick
Salle
St.,
&
—
trust
special
and
Manufacturers
and
articles.
vestment
Mr.
tional
the
La
New
York
and
Chicago Stock
Ex¬
changes, announces that Wesley
B.lom has become associated with
their sales organization.
was
formerly
office
with
Mr. Blom
the
Chicago
of
Paine, Webber, Jackson
& Curtis, having joined Jackson
& Curtis in
for
estates
Trust
in
the
Company,
Committee.
Securities
y,
and
Corporation, also
Helen
organization
Hill
A.
Manager;
been
"Wall
in
with
Research
her
principal
connection
joined
Sales
Miss
that
Pro¬
Hill
since
has
1929.
ending in 1942 she
connected
and
has
as
Street"
For nine years
Research
announces
Miss
in
South
Since
been
Simonson, President of Na¬
where
Kebbon,
has
of their Trust In¬
member
a
of
of
fore¬
market
Bernthal
funds
The Invest¬
Co., 231
members
as
Analyst
charge of utility investments for
tive
firm
Corporation
Research
writer
a
as
invest¬
Coming Events, Inc.,
Economic
was
ILL.
and
ex¬
avid
an
formerly with the
was
motion
banking
practical
been
economics
Franklin
and
broad
and
student of
ment.
in 1925 Mr. Bern-
career
their
last."
CHICAGO,
with
Administra¬
Corporation
duties were
statistics
charting. Latterly Miss Hill
and
occu¬
pied the offices of Vice-President,
Treasurer and Director. Miss Hill
was
honor
an
graduate
of
Opens
graduate work in Advanced
and
MASS. —J.
engaging in
Ridgeway Road.
was
formerly
quisition by the city of the local
transportation
be
it
companies, would
certain conditions,
subject to
indicated.
was
One
these
of
a
Dallas
general
Mr.
Corbier
with, Trust -Funds,
Inc. of Boston.
New
operating
accounts
and
the
these
of
of the
records
York
issued
an
cussing
City, members of the
Stock
Exchange, have
interesting circular dis¬
the
Comment
I.
C.
C.'s
be
administered
by
non-
Board
of
Vilas & Hickey upon request.
SAN
3. All cash and assets in the re¬
newal
cash
and
the
of
assets
Chicago
Elecftrjc and Gas
Revenue Bonds
funds of the Chicago
Transit Company and the
Rapid
fund; and
Bought
ing funds of the three properties.
As a condition of any such pur¬
Kelly
has
these
safeguards
vided.
already
i
insisted
must
that
chase
derstood
the
Chicago
Mayor
acquiring,
lines,
that
proposes
all
constructing
operating this unified transit
utility
financed
be
of
certificates
of
put
transportation
Kelly
of
revenues.
through
payable
It
is
the
only
proposed
that attempt immediately be made
Lines;
the
Chicago
cash
Sold
Quoted
—
to
to the
be
DANIEL F. RICE & CO.
Mem-bets Nero York Stock Exchange
end
Chicago Board of Trade
un¬
of
aggregate
reserves
over
141 W, Jackson
Teletype
turned
Blvd., Chicago
CG 12,76
$27,500,000.
Thus
tem
City will be not less
unified
a
municipal
sys¬
comprising all the properties
Investment Securities
of the Surface and Elevated Lines
and
the
and
Motor
Chicago
Company,
with
would
in
cash
start
of
bank
Coach
business
$27,500,000
minimum amount of capital
a
securities outstanding.
Public
Utility
Industrial
Railroad
-
Municipal Issues
•
We Maintain Active
in the
Trading Markets
Leading Over-Counter Securities
'
IBA
Rapid
Chicago
Transit Company and the Chicago
at
Motor
Coach
the
that
than
by the City of Chicago to acquire
the .properties of the Chicago Sur¬
face
cash in the work¬
any
agreement, it should be
these
Emphasizing
the ;v urgency
of
proceeding with the unification of
—
escrowed
pro¬
be
;
-
.
Motor Coach Company;
City Compensation
Chicago
ANTONIO, TEX.
undivided
the
and
funds
the
Mayor
9-1432
Supervising Engineers.
Surface Lines; any cash in the de¬
Delegation
,
E. H. Rollins & Sons
■
well represented
annual meeting of the
the
was
by nego¬
of America, held in New York.
the Ufirst * two
of
Incorporated
South La
135
Salle
Street,
Investment Bankers Association
tentatively
agreed on; would be subject to ap¬
proval by the Federal Court in
tiation.
Company
Any
price
instances,
the
by
Federal Works Agency and by
people
stances.
In
the
referendum, in all in¬
on
1
recommending
this
action,
were
Harris,
who
but .he is
now
and
operation
convinced that such
ownership and
operation will be
economical and efficient and that
while
private ownership and op¬
eration
of
one
had
unified
been
receive approval.
Mayor
Kelly
Among
expressed
op¬
ability to finance the proposed
undertaking through issuance of
certificates, citing their
Wires
Principal
the
Our
To
Offices
In
Throughout
Country
Cities
the
D.
Vice-Presi¬
a
other
Dean
Specialists in
delegates
McCormick,
of
CHICAGO
Kebbon, McCormick & Co., and
Newton P. Frye, of the
Republic
Company,
to
named
the
Central
who
Board
of
Traction Securities
were
Gov¬
&
Chicago Mo. Shore
ernors.
Milw. R.R.
Comprehensive analyses
available
on
request.
Ohnemus Stationed at Cgo.
CHICAGO,
ILL.
—
Lt. Paul M.
Ohnemus of the U. S.
timism with respect to the city's
revenue
Co.,
Central 7540
Direct
transit
the
preferred
plan back in 1941, the companies'
plan of reorganization failed to
company
&
CG 530
3
Julien H. Collins,
Hall &
Company,
elected
was
were
public' ownership
Whipple
and
ciation,
inally. he
advocate
in
attendance
Whipple, partner
CHICAGO
retiring President of the Asso¬
dent.
to
N.
Jay
Bacon,
Mayor Kelly points out that orig¬
hesitated
those
Among
of
.
nal Corps
is
now
Brailsford & Co.
Army Sig¬
S.
208
stationed at the
Chicago Signal Depot. Lt. Ohnem¬
us was formerly a partner in En¬
La
Salle
Street
CHICAGO
Tel.
CG 95
State 9868
yart, Van Camp & Co.
SERVING INVESTMENT DEALERS
NEW YORK
Situation Wanted:
We
MARKETS
TRADER WANTS
15
years
deferred.
now
experience.
ties.,
Salary and
bonus arrangement.
MIDWEST
Chicago 3
-attractive
clients.
in
STRAUSS BROS.
Members
New
York
Security
Dealers
Ass'n
Telephone: Harrison 2075
Teletype CG 129
Direct
Wire
to
New
York Office
no
them-
issues
Maintaining
partment
Board of Trade BIdg., Chicago 4
Address, Box CI, Financial Chronicle
Suite 2319,135 So. La Salle St.,
providing investment dealers
with
Draft
Available between
and Jan. 1st,
specialize exclusively in under-
writing and distribution of securi¬
for the
"Monthly
Transportation sta¬
tistics" for September. Copies of
this circular may be obtained from
on
BOwting Green
preciation
sys¬
CG 972
«
mortgages
companies
agreements,
and
Security
Hiekey, 49 Wall Street,
New York
Randolph 56s6
WALL STREET, NEW YORK
i
rights,
patent
licenses,
conditions would be that the pro¬
Analysis
at Columbia University and New
York University.
Vilas &
securities business from offices at
37
ac¬
CHICAGO CONNECTION
•'Special to The Financial Chronicle)
is
which
231 S. La Salle St.
—
All
Katharine Gibbs School and took
post
Statistics
September Rail Results
Corbier
Corbier
securities,
liiiecf and Unlisted
Com¬
Coach
Motor
WESTERN
the
1932.
BOSTON,
the
would be issued to finance the
sale
casts
But in the kind of pe&ce we hope
for, the welfare of each nation
ment
plan, the
C
physical assets of the
Surface Lines, the Chi¬
Chicago
2.
The syndicate's proposal re¬
MIDDLE
SECURITIES
pany.
and
re¬
protect¬
were
ing the future of the land
of all nations.
a
their
warrants
Rapid Transit Company, and
cently announced plan for public
costs
and
:
.
"It's high time we
welfare
as
Utility De¬
un¬
future international
lations.
ica's
and
dealing will have to
our
enjoy
securities
which
Chicago
ownership of transportation facil¬
ities.
^
Members
1. All the
the
garding
4
Exchange
Chicrgo Stock Exchange
New Yorlc Curb
Exchange (Assoc.)
Chicago Board of Trade
such
that
Under the proposed
City would acquire:
of Chicago
University. There he obtained his
Degree as Master of Business Ad¬
ministration.
Since starting his
going
on
Public
their
-
nomic fairness and
•
fact
the
to
municipal
cago
under the Mayor's re¬
CHICAGO
New York Stock
Seattle, and the Mayor calls
rating
chase'"; of
revenue
certificates
which may be issued by the City
where he received his B. A."
in 1924 : and won a Re¬
search Fellowship to New York
world
are
formed to consider the pur¬
been
BLVD.,
640, 641 & 64 J
HICKS 6-PRICE
Cleveland
in
employed
insurance companies.
composed !of more than 100 other
firms throughout the country, has
gan
an¬
other
This type of financing has
and to provide funds for modern¬
Corp.
JACKSON
Tele. CG
purchase by national banks and
Degree
not
foment
of
cated at the
and
factors
trade
4%.
been
ration arid
Blyth & Co., Inc., and
c'
•
•
This
prevalent.
bankers, headed by Harris, Ilall &
Co., Inc., The First Boston Corpo¬
ization and improvements.
partment. Mr. Bernlhal Was edu¬
trade
on
rate
protect investors in the securities,
of Walter Bernlhal
them
head
going
predi¬
factors,
interest
rate, he said, would not exceed
attention
large syndicate of investment
>
tax exempt feature and the low
political management and that all
safeguards be taken to
Corporation, 120 Broadway, New
York, announce the association
"Peace, if it
lasts,
to
A
-
Tel. WAR. 8686 and Postal Telephone
necessary
Securities & Research
National
Mr..
Crawford said.
{
Dept.
o re
b
the
on
Chicago Revenue Notes
tem
Of Nat'l Securities
rela¬
days
tions
pass
W,
CG 878
Tele.
posed unified transportation
na¬
work
to
opportunity to
de¬
a
Court
Supreme
INCORPORATED
.
BOARD OP TRADE BUILDING
141
3
Randolph 6960
and
fund
to
date
.
the
the validity of the unpaid bills.
future
adverse to
new
an
and the sale of another issue at a
the $8,346,000 in
that its judgments
unpaid bills can, be liquidated
together. • The county has been
An
until
had
sell
and
result in
issue would
000
1874)
Kneeiland & Co.
120 South La Salle Street
CHICAGO
AN Dover
so.
to
parcel,
one
the
Stockyards
Established 1922
Chicago .3, Illinois
Chicago Brevities
Moreover,
Globe American Corp'n
C. L. Schmidt & Co.
"
Court.
Interstate Co.
Pfd.
&
100 West Monroe Street
,,
to
litigation
Kansas City Public Service Co.
Securities
•
Enyart, Van Camp & Co., Inc.
,
page
North Centra! Utilities, Pfd.
;
Preferred
Teletype CG 993
(Continued from
Common
;t:
Issues
Telephone State 6001
Pfd.
&
Com.
& Go.
a s on
V
Howard Aircraft Co.
'
Incorporated
.'19 South
Com.
I CHICAGO—SUBURBAN
study, "Chicago Tractions Under Municipal Owners
1
J
IN
Globe Steel Tubes
a
I ndication and the proposed
Municipal Ownership Plans.
Copies with dealer's imprint will be supplied at a nominal
charge on request.
■
INTEREST
Central Elec. & Tel.
of
way
w
no
compete
ith dealers, but serve
exclusively.
Correspondence
'
UUIMMiltF
Exclusively
120
their
retail de¬
our own, we
invited.
l
for
Wholesalers
South
La
and
CO,
Underwriters
Salle Street
Chicago
THE COMMERCIAL & FINANCIAL CHRONICLE
1876
TO
OUR
Thursday, November 11, 1943
'
STOCKHOLDERS
EMPLOYEES:
AND
WILMINGTON, DELAWARE
the
With
Board
of
approval
Directors,
of the
the an¬
the Corpora¬
tion, showing the results of
operations for the year ended
June
30,
1943
is herewith
nual
report of
profit
The consolidated net
$7.40
$4,256,656 equivalent to
per share on the 575,174
outstanding com¬
This is after de¬
of
shares
stock.
mon
making
foreign exchange adjustments,
and setting up a reserve for
contingencies of $750,000, on
all
ducting
which
charges,
been paid.
have
taxes
previous year's result was
The
subsidiaries
its
was
ac¬
quired.
We now have an
ownership of 75% of the com¬
mon stock and the figures of
these
been
have
companies
consolidated into our balance
previously, they were
sheet;
submitted.
was
and
included
"Investments
in
in
Companies."
Associated
important addition to the
financial
strength
of
your
Company was effected through
the sale of $6,000,000 of 5%
the
to
Preferred
ceeds
received
the
by
pro¬
$3,787,902, equivalent to $6.41
per share, after setting up a
reserve
for contingencies of
$6,045,000. The Company
felt it prudent to provide ad¬
ditional liquid assets for post¬
war development to modern¬
The working capi¬
an
increase
of
ize plant and equipment, and
to round out certain activities
$750,000.
shows
tal
The combined
of
net earnings
subsidiary
Canadian
our
and
Argentine subsidiary
companies
were
$2,180,743,
There
currency.
U.
into
conversion
after
no
are
S.
re¬
strictions in either country on
the
transfer of current earn¬
ings to the United States. The
and further
development of these foreign
companies looks promising.
natural
In
growth
addition to
stated
was
the Company
$10,394,553.
the earnings
Company at all times.
Business
the
out
activity
year
erated
by the war, found an
important outlet in the tex¬
suitable
were
for
machinery and replace¬
ments
to
amounted
Research
Laboratory
continues to be of inestimable
value; not only in the current
running of
our
for post-war
planning and de¬
Looking forward,
velopment.
the
technical
business, but
and
research
staff of your
Company is ac¬
tively engaged in the devel¬
opment of new fabrics, in¬
cluding the use of new fibres,
and in
new
finishes and
man¬
plant account
to $402,431.
Dividends
paid cXiring the are conducting nation wide
amounted to studies into
potential
con¬
$1,160,227 equal to $2.00 per sumer habits and needs, and
common
share
outstanding. into possible post-war changes
This year common stock divi¬ in
merchandising and dis¬
dends will be paid on a quar¬ tribution.
terly basis, compared with a
Conversion from war time
previous policy of semi-an¬
activities, to the peace time
nual payments.
demands
of
our
customers,
Direct taxes charged to op¬
will be rapid, orderly,
and
erations of last fiscal period
without interruption, as most
amounted to $8,142,000, equiv¬
of our directing personnel is
alent to $14.16 per share, in
intact, and our mills and fin¬
comparison with
$6,393,000, ishing plants are in a high
equivalent to $10.83 per share state of
efficiency.
for the previous fiscal period.
In our manufacturing plants
The United Factors Corpo¬
the man power situation : at
ration, whose activities con¬
times
has
become
strained,
sist of commercial
factoring, but
due to the adaptability of
continued to enlarge its list of
women to the requirements of
clients, and had a substantial
the textile industry, we have
increase in volume.
Opera¬
are
confined to the pur¬
chasing, discounting and guar¬
anteeing of the accounts re¬
ceivable of its customers.
No
been able to continue at peak
Prices
throughout the
remained
production.
taken
renegotiation
J\
required.
As
of
tional
Seneca
longer
no
June
25%
30th
an
interest
Textile
port.
The
addi¬
in
are
Executive
by
the
of
management
$4,155,772.16
.
6,045,000.00
$10,200,772.16
and acceptances receivable, less reserves of $314,530.00
Accounts and notes receivable
purchased, less reserves of $209,920.56....,....
United States and Foreign Government bonds
(redemption or market quota¬
your
9,801,462.95
notes
$352,632.88).:,
Finished
of all of its
irrespective
tomers,
352,168.71
Hence, often
cation
to
assure
a
a
of
goods.
Our selling
policy has been to promptly
dispose of all merchandise as
in
it
as
soon
is
made
as
'
Company
has
Our
plant
been
made
along
resources
structure
by
varied
been
It
futile
is
to
'
Land and buildings...................,..... /,i.....
Machinery, equipment and leasehold improvements..
,-j
4,926,317.48
■
7,710,506.93
depreciation and amortization.
our
3.00
",■LIABILITIES
CURRENT LIABILITIES:
Notes
payable—banks..
organization can
situation that
3,169,299.79
payable, sundry liabilities, accrued expenses,
for Federal and foreign income and excess profits
accounts
Reserve
taxes.
Less: United States
etc
Treasury Tax Anticipation Notes
behalf
On
men
and their
of the
we
COMPANIES—CONSOLIDATED.
706,765-87
...
CAPITAL STOCK:
5% Cumulative Preferred Stock, Par Value $100.00 per Share,
Authorized..
.
60,000 shares
...
60,000 shares
Issued—July 2, 1943.
Common
6,000,000.00
Stock, Par Value $1.00 per Share:
750,000 shares
,....
(including 161.3 shares still to be issued in exchange under plan of capital stock readjustment)
and stated at par value of $1.00 per share plus
$5,911,790.00 added to capital by resolutions of
'/'.y
the Board of Directors.
6,511,790.00
600,000 shares
may
Board
.438,319.87
Capital surplus.,,
Earned surplus, since August 1> 1932.
of
tribute to
pay
Held in treasury—24,826.2
Less:
18,006,408.54
shares of Common Stock
30,956,518.41
419,764.77
at cost.
$51,991,032.47
serving all
the world. We are proud
of these
men
and women, and
FOR
FACTS
STOCKHOLDERS
OUR
hopefully
look forward to
their speedy and safe return.
Eleven
Months
Year Ended
wish
to
express
of the Corporation
subsidiaries, both.here
abroad, for the excep¬
to
extend
officers
ciate
to
and
asso¬
directors
deep appreciation of their un¬
failing
tion
in
and
the
Net Profits
helpful
coopera¬
interest
of
J.
W.
the
SCHWAB,
President.
the
.
$ 3,787,902
$ 2,623,132
Ended
June 30, 1940 June 30,1939
Common
Outstanding...
.
7.40
$ 2,021,620
$ 1,466,196
3-37
2.44
599,653
599,956
0.25
•—O—i
•25.47
22.45
4.37'
6.41
.
599,903
590,528
575,174
.
per Share on
Stock...
Book Value,
per
$
2.00
$
$
1-50
0.50
$
Common Stock
Share (After Reserves for Contin¬
gencies ana after deducting Preferred
Stock
at $104
per Share
Quick Asset Value
42 24
,
34.96
29-59
Share (After de¬
per
ducting Preferred Stock at $104 per
27.17
1572
12.52
9.62
11,475,098
9,435,368
7,514,932
5,771,526
1,750,000
.v.
19.43
21,869,651
Share,
Cc
J27, 1943.
$ 4,256,656
Dividends Paid
apt
October
June 30, 1941
Number of Shares of
Net
of
June 30, 1942
Year Ended
V
•
(After Reserve for Contingencies)..
Earnings per Share on
Outstanding Common Stock........
Common Stock
my
Year Ended
em¬
tional service rendered. I also
wish
Year Ended
June 30,1943
sincere
and its
and
30,536,753-64
Forces of
Armed
the United States,
I
$18,997,532.96
1,750,000.00
........
MINORITY INTEREST IN CAPITAL STOCK AND SURPLUS OF SUBSIDIARY
and
women,
and
families, who have
joined the
over
6,036,665.86
2,215,000.00
;.:....
SURPLUS:
Directors,
the
5.727,567.31
...........
....,....$8,251,665-86
..i...
RESERVE FOR CONTINGENCIES
cope
arise.
$ 4,064.000.00
.......
Credit balances of factored clients.
Trade
feeling
any
8,727,278.49
938,402.56
Authorized,.
with
16,437,785.42
11,511.467.94
.
Issued
that
687,553.75
$51,991,052.47
try and
the
231,538.08
PATENTS, GOODWILL AND TRADEMARKS
ing the year ahead. We face
the
possibility of changing
with
456.015-67
■{[,
■-
:
predict what will happen dur-.
conditions
$40,867,184.37
720,630.30
DEFERRED CHARGES..,....,....;
and fi¬
have
,.,.
balance sheets of said associated companies $1,618,999.42.
per
LcsS: Reserves for
strengthened, and every pre¬
cautionary adjustment to
present conditions has been
made.
373,063.08
..,.
.
that
lines.
13,060,979.74
FIXED ASSETS:
schedules.
nancial
3,327,034.90
Sundry receivables and investments (including $223,876.31 representing cash
surrender value of life insurance
policies and deposits with mutual insurance
companies).,;
Federal and Canadian post-war excess
profits tax refunds......
,
with
accordance
.:
available
7,468,450.75
OTHER ASSETS:
distribu¬
tion
grcige goods.
goods.
INVESTMENTS IN ASSOCIATED COMPANIES-not consolidated-book value
system of allo¬
proper
2,265,494.09
(including $216,767.44 due from associated companies—
consolidated)
not
cus¬
instituted in order
was
■
.
Other receivables
size.
of
7,078,737.73
..,
...
Raw materials and supplies
Goods in process, including
..
Company, keenly aware of
importance of customer
relations, endeavored to meet
the demand
JUNE 30, 1943
July 2,1943 of 60,000 shares of 5% Cumulative Preferred Stock
par value $100.00 per share
on
Merchandise Inventories:
The
Committee,
Directors, continues to meet
Corporation monthly, and is in intimate
the sale and issuance
,,
Common Stock
Board
footnotes published in the. annual report of the Company
on
tions
Company.
appointed
to
Trade accounts,
effect.
ployees
Proceedings with respect to
to
hand, in banks and in transit.............
Cash received July 2, 1943 from the sale of "60,000 shares
of 5% Cumulative Preferred Stock..............
fairly
measures
subject
ASSETS
Cash
stable, and
by the
government to prevent sharp
increases
in
the
prices of
commodities had a salutary
the
arc
CURRENT ASSETS:
year
thanks to the officers and
pending.
advances
are
made
against While the effect, if any, which
merchandise inventories.
such renegotiation may have
The ten year Voting Trust on our earnings, cannot be
definitely appraised at this
Agreement
terminated
on
June 1st, and was allowed'to time, we feel the result can¬
not materially affect this re¬
expire. The Board of Direc¬
tors felt that it was
giving effect
handling in our Mills
Finishing Plants.
and
the
The merchandising and sales
divisions of
your
Company
presented below
ture and
ress
public.
past fiscal year
tions
After
the
Our
statements
CONSOLIDATEDoBALANCE SHEET AS AT
manufac¬
techniques
for
We now have 1,062 of our
tion's share of undistributed post-war
presentation. ^ Our
employees
in
the,; Armed
earnings in companies
not laboratory is manned by ex¬
Services. When peace returns,
consolidated
for
the
year perts in their special fields of
every
consideration will be
ended June 30,1943 amounted research, and we feel this ac¬
extended
to
those
in
the
to $109,750. This does not in¬
tivity will not end with the
Armed Forces for their re¬
clude
of
the
War.
A
$201,144
representing conclusion
and
advance¬
the
undistributed equity in peace time world should con¬ employment
ment.
earnings of the Seneca Textile tinue to benefit by the solv¬
Corporation.
ing of problems through re¬ In Conclusion:
Depreciation of fixed assets search, and the practical ap¬
Some of the year's activ¬
of
the
findings
plication
was $723,208 as compared with
ities I hope indicate the prog¬
$564,146 for the previous year. passed on to a consuming
New
The financial
Armed Forces with whatever
textiles
they required
that
Corpora¬ ufacturing
the
abtyve,
flat f/ic facal i/ca-i ended$wie 30, 4943
We have, how¬
continued to supply the
ever,
has in mind for
the future.
through¬
a
high
at
was
level. The increased purchas¬
ing power of the people, gen¬
Com¬
the Underwriters
from
pany
Stock
The net
public.
of the
tile industry.
An
Cumulative
touch with the current affairs
1,000,000
-0-
400,000
Capital and Surplus:
Prcfei red Stock
This report is not a
representation, prospectus or circular in respect of any stock of this
corporation and is not presented in connection with any sale or offer to sell or buy any
stock or security now or hereafter to be issued.
(60,000 Shares Outstanding)......
Surplus
Common Stock and
Taxes Paid
or
6,000,000
•—0—
0—
—-0—
—0—
24,536,75 4
20,643,380
17,755,596
15,281,354
13,471,241
2,233,000
3,076,000
1,308,000
322,000
739,000
634,000
Accrued:
Normal Income and Other...........
Excess Profits
..
3,317,000
-
42,000
Volume
158
Number 4228
THE COMMERCIAL & FINANCIAL CHRONICLE
OFFICERS
Vice-President
Albert
T.
1943-1944
PRESIDENT
John
Armitage
Vice-President
1877
Clifford
Vice-President
Folger
Vice-President
Vic
E. Breedcn
Vice-President
Exec. Sec. & Treas.
ALBERT
GORDON
Julien
H. Collins
Edw.
Hopkinson, Jr.
Alden
H.
Little
GOVERNORS
•Mis®
William
Bayne
F.
J.
Blanchett
John
E.
Blunt, 3rd
William
H.
Brand
Errol
E.
Buckner
Hagood
Clarke
H.
H.
Dewar
aMSSBMiww
Fairman
R.
Dick
Roy A. Dickie
Rush
S.
Dickson
Henry
H.
Egly
F.
D.
Farrell
Newton P.
Frye
THE COMMERCIAL & FINANCIAL CHRONICLE
1878
Thursday, November 11; 1943
GOVERNORS (Continued)
MiM
•
'0''
£$ lH
^s'4«®2
L.
R.
S. Gilmour
H.
Arnold
Macdonald
Grunigen,
Dean
Hubert
Jr.
McCormick
Stanley
G.
Walter
McKie
W.
J.
Lofft
John
Pat G.
Monro
Morris
S.
Hugh D. MacBain
Loomis
Maynard H. Murch
Gerald
P.
Peters
SMgM
hp mm
s4mm
8?&
isntts
Augustus
W.
Phelps
Joseph T. Walker, Jr
A.
E.
William
Ponting
Philip
K.
Watson
J. Price, 3rd
Elmer
Robt.
L.
Williams
G.
Rowe
Frank
H.
B.
Wyeth
Jr,
M.
Stanton
R.
T.
Johnson
McLean
Ward
Stewart
Volume
158
Number 4228
THE COMMERCIAL & FINANCIAL
CHRONICLE
for the
J. C. Folger, New IB
,tnSeesPkGreatest
ediser
Investment Era in Decade Following War
Holds Capital Will Venture Abroad Because of High Interest Rates.
Streamlining of Securities Acts But Not Abolition of SEC.
Compulsory Competitive Bidding
Asserting that "there is
1879
moment.
For
in the armed
ones
the
forces
absent
we
save
and
prepared
tain
tion that
a
in
government
trained in
men
Advocates
note the
we
high places
filled
now
field.
our
with
A cata¬
to make
some
real
I have asked
cer¬
contribution,
special place in our minds and
hearts. It is with much satisfac¬
a
^
To that end,
of
members
our
Conference
to
serve
or\
Committee
dealing
primarily with post-war finance.
This
committee
will
with
treat
logue of such positions would be some of the most important sub¬
most impressive.
Impressive also jects to come before us during the
Condemns
is the force and effect of
unteer
contribution
Bond effort.
liquid capital pressing for investment than ever before," John Clif¬
address on Nov. 5 as President of the Investment Bankers' Association of
more
vol¬
our
in
the
ensuing months.
I
War
think
been
have
we
inclined
to sit back and be
unhappy about
Investment banking, as a busi¬ plans made by others. Frankly, X
America, expressed it as his tfiew that "the decade following the war should be the greatest invest¬ ness, suffers in war times, but let's believe we should systematically*
ment era we have known."
put our worries aside for the mo¬ seek
out
opportunities
to
sit
Mr. Folger, President of
Folger, Nolan & Co., Inc., of Washington, D. C., ventured the opinion ment and take a quick look at our¬ around the .conference table and
that "with high rates abroad and: low rates
here, it seems highly probable that much of our capital selves and at our standing in the present our views. Make no mis¬
will venture
..v.-;...',-;
^
take—other
community.
people
are
having
abroad." In his
We represent no pressure group. their say. Bankers in other coun¬
event," he averred, "here's where minded them of a certain citizen
ford Folger, in his inaugural
.
address
made
he
known
that
he
asked
o
"to
f
ernment
serve
seeking,
ball
fi¬
that
more
me
of
We
politics.
be
Supreme Court Jus¬
tice, and he replied: "It makes me
moulders
vestments
on
to
say
trade."
that "some
He
prac¬
tical people urge that we let for¬
the
fact
that
great change in
eign economic conditions jell
before
and
we
a
bit
talk about stabilization
foreign investments." "In
any
Whipple. In full the
Mr. Folger follows:
After
address
of
nomination, friends
began congratulating me. To them
I
said:
my
"Hold
on
.merely running
I'm
.
for office!" I
From FARMS
usually
happens
that
the
fellow
who
speaks the final and explosivo
ness as
con¬
bed
erroneusly
thinking
he
had
been
elected
President of the United States. A
An
important government body
recently set up as a chief recom¬
reporter came to the door of his
house and asked for an interview.
mendation:
A
a
member
him
aside
of
the
with
family
the
turned
words: "The
•
•
just
re¬
a
funds
tion
What should be
most of
our
Re¬
sponsibility for investing people's
is serious business and I
money
think
should be conservatives.
we
But it
happens there
so
shades
opinion
different
will be put
in
the
financial
decisions
rather dull business in these stir¬
are
Many of our members
have foresaken private enterprise
time
pledge and
"God
being made,
permitted
conference
ring times.
As
a
to
table
arrives
we
sit
shall
we
around
the
when
that
and
shall
be
asked
con¬
a
sit
to
who
everyone
a
in
his
disagrees
conferee is limited. Let's
be the Yankee Trader who doesn't
get mad.
The
subject of foreign finance
tongue.
s
We are a volatile peole. One day
is
on
we
every
vow
we'll
never
invest another
abroad; indeed make laws
stop it. The next day we say-
penny
isolation is behind
grown
.
.
up
.
.
us..
.
We have
.
have long trousers
.
and must take
.
tude
a
mature atti¬
toward
foreign investments.
Are we going to reach into the bag
and pull out
the "International
banker
who
If so, will it be a
private
government
banker
or
a
that
wears
discarded
once
mantle?
Proponents of clearing unions
that if we dpn't import for- -
there al¬
What J. hope is that when
is
be
plans
into the hopper.
matter of fact, many are
jects informally.
Some may think
world.
beginning of
seldom
If he indicates that in
banks?"
of
Many
are many
is
opinion
to
policy? Now
conservatives.
are
us
business.
the
at
ference
of
investment
our
word
made
in
stimulate
to
ready.
work
be
productive en¬
terprise." Think of that! Legisla¬
and speak my mind on a few sub¬
our
there
stimulate
to
private
bit
a
"That
thorough study of. incentive tax¬
ation
President sleeps."
Until this hour, I have not felt
my arms
balance
peering into the future.
are
One practical thought. It
further impaired.
think,"
are
distinguished
a
to
us
to
of
tries
with him is unhinged—his useful¬
when
went
g
went
not
saying the machinery for dis¬
tributing securities must not be
occasion
citizen
the whole system of distributing
humble, nor have I slept until I
John C. Folger
securities," Mr. Folger pointed out got myself elected. But I now con¬
i that while in 1929 the bulk of the fess a
Spanish
great wave of humility,
and Portuguese after the war," he
j securities
sold
throughout ' the especially with respect to the ser¬
added
that "the mechanism for j
country was handled by branches vices of my predecessor, Mr. Jay
foreign investment is something | of out-of-town houses," the lion's
Whipple, who has made such an
which our new Conference Com- ' share of the business
is
to-day,
outstanding and unselfish contri¬
mittee might properly explore." It done
by strictly local houses."
bution.
was
noted
by Mr. Folger that
Elected as President
A written
pf the As¬
manuscript will be
proponents of clearing unions say sociation at the concluding session filed in the Archives. I
hope no
thai if we won't import foreign of its annual convention in New one will
deprive me of the opgoods, we must make foreign in¬ York, Mr. Folger succeeds Jay N. purtunity to wave
n
are
again.
will be study-
i
We
expert in the fields of
Few would say we are
or
house. Other people than ourselves
on
a
trained
how
You will also remember another
do
"there has been
We have few votes.
Supreme
him
wish to abolish
Folger
are
Mr. Folger, "the securities
Commenting
asked
feel very humble."
Unfortunately,
his nomination was not confirmed.
"we
need some practical stream¬
lining. The little fellow with the
big ideas needs easier access to the
capital markets."
and
more
we
to
the
to
not
Mr.
that
Gov¬
acts
o m e-
thing tells
do
felt
Someone
public opinion. But
one thing stands out.
Investment
banking is coming out of the dog
agencies,"
nor
nominated
once
Court.
it
plain
game.
tinued
nance,"
and
in
stating
"s
'
wants
dealing
primarily with
that
become in¬
degree hardly dreamed
the SEC. Nobody," he said, "really
the umpire removed at a
commit¬
tee
post-war'
it
made
confer¬
a
ence
a
We may
As to "our relations with
Associa¬
tion
on
of now."
certain
members
the
in.
come
volved to
had
'■
.
we
.
say
eign goods,
we
investments
Some
must make foreign
to
balance
trade.
practical
people urge that
let foreign economic conditions
(Continued on page 1901)
we
ready
promise
a
grants liberty only to those who love itj
Who
are
always ready to guard and defend it.
©NE hundred sixty-seven yearssixty-seventwinkle isto a star butinto theman it's nearly seven
is but a
a reckoning of hilt
generations. One hundred
long
years
but
to a man
when
it's
long enough; long enough
fight for it. The
to
men
not
a
learn what freedom
means,
who left their bloody footprints in the
Forge—they knew what freedom
meant.
Wood—they knew when and how
Now
to
to
The
men
who fought
at
how
snows
Gettysburg,
to use
at
Belleau
fight for it.
generations from the battle of Concord and Lexington, Americans
seven
ir>
of Valley
are
again fighting for their lives and their liberty. But far from the wide-flung battle lines E
another
are
struggle—a struggle
the farmers
ceive their
From
tenancy
nestled
beneath the
For 25 years
45,000 farmers have found that
protection while in debt and
Full information is contained in
May
we
send
giving
none,
to
win
a war
and write
a peace.
rocking
spars
you a
free copy?
a
a
systematic
debt. During this
Land Bank loan pro¬
way to get out
folder entitled "Farm
of fishing boats in Gloucester, from the
snugly in valleys, from farms throughout this broad land that is
a
vast-
ours comes a
promise—a promise that liberty, conceived in suffering, born in blood, shall
perish. For here
are
the
men
of faith,
men
of courage,
men
who will
not
betray this,
They will keep America free.
FEDERAL
of debt.
Mortgage Loans."
re¬
,
from
a
Here
determined that their children shall
the Federal Land Bank has helped the farmers of the North¬
toward .another kind of freedom—freedom
quarter century
vides
produce the food
of busy cities, from farms spread thinly through the mountains, from farms
their finest hour.
east
to
no quarter,
heritage of freedom untarnished and unbroken.
men
pledge and
not
asking
LAND
BANK
OF
SPRINGFIELD
Springfield, Massachusetts
Fiscal
Agent: CHARLES R. DUNN, 31 Nassau St., New York City
Serving New York, New Jersey, New England
THE COMMERCIAL & FINANCIAL CHRONICLE
1880
human
beings for food, shelter and
raiment, and whether it can pro¬
Individual Freedom
vide in addition
Planning
(Continued from first page)
ing the past decade has contrib¬
uted greatly to this trend by its
the people
system
called, a
Stamp,
avowed desire to give
at
what has been
large
"more
abundant
this is
a
is
not
the
are
as
life."
In
itself,
laudable purpose, but it
a rule appreciated that
employed for this end
leading to a breakdown of our
means
system
enterprise.
individual
of
In time of war it is necessary
the interests of
in
efficiency to have
governmentally regulated econ¬
omy.
But there are those of us
a
have
who
for
some
time
been
apprehensive lest the controlled
economy, which is an absolute es¬
sential in time of war, will be car¬
ried
over
into
the
post-war
era.
Historically, most economic sys¬
tems have been operated by gov¬
ernments.
Some
people are in¬
clined to forget'that not until eco¬
nomic production in modern times
had
emerged from the shackles of
excessive
our
government control did
present standard of living be¬
possible. If they could get
an
adequate picture of how the
workman
of
the
18th
century
come
lived
and
what sort of
ment
and
shelter
food, rai¬
he
enjoyed, or
had, they might not be so willing
economic
with its admitted imper¬
The
fections.
Sir
late
Josiah
one of the first steps
planning.
iV
people have in mind
individual
But
what
econ¬
that account deny
All institutions
are
to
human, and they bear witness
their imperfections. In
thinking, therefore, we should
this by
instances
today
when
It involves central
social
coordination
posed
to
embrace
is
and
the
or
sup¬
economic
entire
an
their
ested in trying to determine what
effect
collectivism
a
economy,
which is bound to result from
ex¬
cessive government control, would
in reality have upon the political
and
economic
well-being of our
If some of us argue that
the adoption of such an economy
people.
would
lose
the
cause
his
individual
the
freedom,
reply
sometimes made that such
rifice
would
worth
be
to
a
is
sac¬
while
if
of
zens
would
be
attained.
it
is
clear
and
does
that
planning
the
pervade
activity
of
Hardly any
every
should
economic
individual.
is in
position
to satisfy all of his wants.
He,
therefore, must place these wants
and
desires
person
in
the
a
order
of
his
preference.
must
In other words, he
grade them according to his
taste
and the
total must not
sum
the value of his oWn pro¬
cess
be
have to
(income)
use
to
an
in
degree of its suc¬
meeting the wants of
tivity
of
the
alternative
asked,
"Could
these
not
troubles be averted by resort to
extensive economic planning?"
There is in this question the im¬
plication
that
ajpility of the government to plan
and
carry
economic
the mechanism
on
production,
parts
implies
of
his
the
task
mis¬
a
which
is
to
planners,
for
plan,
them
only confu¬
usually their own
This is to fill the void of
what they consider to be planiess-
ness.
Broadly speaking, present
day economic production depends
upon spontaneous agreements and
arrangements among private citi¬
within
zens
the
general
work of law and order.
frame¬
The gov¬
ernment
as
an
is, indeed, needed
umpire to uphold the
here
sanc¬
of
maintain
contracts, to keep order,
competition. In a
sense,1 this procedure is largely
automatic, but, nevertheless, the
in which American
engineers have
system may be dignified by being
referred to as one plan for the
and
distribution, therefore, some
believe, could be handled in the
way in which an engineer
plans and works out his projects.
They think of overall govern¬
same
mental
economic
planning
as
his estimates and calculations the
prices
as
market.
he
In
finds
in "the
them
centralized
govern¬
ment
control, once it has become
all-pervasive, there is no system
prices available. While the en¬
gineer in his calculation uses the
of
current costs of
ery,
material, machin¬
labor as he finds them, gov(Continued on page 1905)
Salomon Bros.& Hutzler
New York Stock Exchange
Sixty Wall Street
New York
Private wires
Boston
Cleveland
Chicago
i
A'
Laurence M; Marks & Co.
to
Philadelphia ;;:.j
Members of the New York Stock Exchange
i
INVESTMENT SECURITIES
NEW YORK
A
ALBANY
Complete Service
Paine, Webber, Jackson & Curtis
ESTABLISHED
1879
States &
U. S. Governments
Municipals
Railroads
Public Utilities
Industrials
:
KIDDER, PEABODY & CO.
Founded
Members
1865
of the New York and Boston Stock Exchanges
17 Wall Street
a
technological problem, whereas,
reality, it is a value problem.
The engineer uses as a basis for
in
of
of thip
in¬
volved. Most often economic plan¬
ning is thought of as an engineer¬
ing problem. All of us have a
high respect for the masterful way
turbances in economic production
Economic
reason.
therefore, wish to substitute
and
Discount House
of
or
a
makes
the people at large
among
carried out gigantic
undertakings
and
are
contributing greatly to
the well-being of humanity. Dis¬
tity
Members
of
find
we
present day eco¬
nomic activity is
proceeding in a
haphazard fashion without rime
plan.
individual
of
is
sion,
individual
uses
tion
for the goods
he
and services which he himself de¬
When
spectre of want and suf¬
fering stalks the land, the ques¬
will
which
pay
an
seems
economic system
the
planning, at
partial scale. Then, dur¬
economic depression, when
what
governmental eco¬ the choice between the satisfac¬
control points to lack of tion of one want over
against an¬
political freedom and a low stand¬ other, he is thereby making a
ard of living.
judgment of value. Since this ac¬
should
for haying the state
economic
a
plans.
raise the question of the
we
understanding of the fundamental
nomic
an
in
on
If
nature
Historically,
The test of
least
at least two
unemployment becomes extensive
sires.
result
engage
one plan
against
in the choice between
or
and the
such
a
state.
Coming now to the concept of
planning in the economic sphere,
duction
away
of
a
plan
all, but the
the acceptability
at
ing
wjth.
It
cannot be proven either from his¬
tory or by economic analysis that
done
of
rate,
their personal freedom.
exceed
be
supply the citi¬
commonwealth with
and
maintain
any
sustenance
poverty and unemployment could
thereby
best
can
plan
another,
of
during the 19th century.
should be inter¬
any
issue
an
no
confines
reason
we
At
issue turns upon
or effectiveness of
ficient
our
us
against
activity of the people within the
order
As citizens
distribution
before
individualistic
on
most
system
of
and
services.
been
individuals.
our
do not
its imperfections.
in
try to determine which economic
the
that
standards
has
tention of
pres¬
well-being in Eng¬
land had been multiplied fourfold
said
economist,
purely
material
it
successful in raising
greatly the standard of living dur¬
ing the past century. We may say,
therefore, that we do not have
our
country or
The defects of the present
are
seized
upon
as
suf¬
English
noted
production
goods and
they use the term economic plan¬
ning, does not have reference to
omy,
to cast aside our present
in
ent-day standard of living. Those
of us who strongly favor the re¬
luxurious refinements of
And Economic
income, it is
modicum of the
a
Thursday, November 11, 1943
NEW YORK
10 East 45th St.
BOSTON
PHILADELPHIA
CHICAGO
115 Devonshire St.
123 South Broad St.
135 So. La Salle St.
liiiillhii t>1iliiii«i
Volume
Number 4228
158
THE COMMERCIAL & FINANCIAL CHRONICLE
merce
I. E Whipple, Retiring President of I.B.A., Urges
Sale of Government Bonds to Individuals
1881.
Commission. Another is the
consideration by the
pensation
on
a
ences
of
employees
commission
this
Revenue
of
Internal
A reminder that the first objective of the Investment Bankers Association of America "is to
tees handling both these matters
develop means of increasing our contribution to the job of financing the war," was given by J. N.
will be made this
morning.
Whipple, of Bacon, Whipple & Co., Chicago, in his address as President of the Association at its annual
Despite the necessity of avoid¬
convention in New York on Nov. 3.
He cited as the second objective in importance, "the consideration
ing any slackening of effort, we
of this industry's part in the restoration of the economy to a peace-time basis after the war."
can have confidence that the war
Observing that "the great diffusion which is taking place in the ownership of capital will pre¬ is
being won, but when we will
sent
an e w
have finally won it and at what
problem." Mr.
larger amounts to be paid out in ] having favorable relations with cost is still
uncertain.
The most
the intervals between drives. * * * those administering the laws under
Whipple
de¬
recent figures available indicate
clared
that
which we
Reserve
operate. Within the last
of greater
authority and responsibility in the
bond selling program.
5.
Outline
the
objectives
of
improved
Securities and Exchange Commis¬
sion and the State Securities Com¬
methodsof
b
a s s e m
ling
this
Federal
the
Place
4.
in
banks
missioners
plans for them
specifically
as
available
possible at least four months
in
to
Whipple's suggestions, given
in brief outline above, appear in
full in his address which we quote
Mr.
markets,"
"Unless
in
its
indicated
firms
ing
position
a
fill
to
its
role
in
the
Commissioner
entirety herewith:
of
Kentucky
way
and
has not included the pleasure
of the usual group visits and the
sioners, at that organization's
nual meeting this Fall, said:
the
iness
Jay
N. Whipple
"The
they afford of re¬
newing old friendships and form¬
ney it requires
and obtain it through taxes," and, ing new ones.
It is therefore all
he
added, "the transition from the more a pleasure to welcome
Government loans to Government you
here today to the thirtysecond annual meeting of the In¬
ownership is apt to be short."
mo¬
opportunity
Association
Bankers
further made
vestment
by Mr. Whipple that "it is funda¬
mental of our economy that cap¬
ital from private
forthcoming only
be
conditions than have
an
recent
banker
the
incentive
and
was
if
will
there is
sources
if
environment
an
favorable to economic progress is
provided." As "one obstacle to the
ready flow of private capital," Mr.
Whipple
burden
"the
mentioned
of
which
taxes
heavy
is
inevit¬
able," but which, he said "must be
in
distributed
?to
leave
such
the
manner
as
incentive
to
a
profit
We
of
years,
be
more
honest
interest
favorable
in which
can
enterprise."
of
professional
our
war
war
dealer
with
the
In
net
is
war
over,
armistice,
confront
the
nation
if
be derelict
the
on
a new
crisis
and
we
failed
we
of the economy
basis
peace-time
a
war.
of
ex¬
com¬
after
the
•
us
first
consider
in the
war
financing
what
we
can
do
part
our
program
to
and
make
the
"know-how" of this
effective
industry more
contributing to its
in
success.
It
is
obvious
compensate for
that
our
bers, those engaged
must do
in
order
lack of
in
our
to
num¬
busi¬
quality job. That
is precisely what members of this
ness
a
Association
have
the
I
any
reports
been
have
criterion.
(Continued
doing,
received
However,
on page
as
if
are
pro-
1903)
unneces¬
public
highly efficient and
functioning machinery
investment bankers must
•of
to
war
State and
Municipal Bonds
the
freer
economy
of
individual enterprise."
-
A
similar
pressed
by
Chairman
thought
Ganso
of
the
was
Local
ex¬
Purcell,
n
Securities
Housing Authority
and
Securities
gain in menf-
.
.
8
.
*
by
establishing
quotas
state
sales
for
to
and > local
individuals
available
Make
bond
^marketable
tions
as
instances
of
only. * 111 *
2.
been true for several years, many
low
-
in
a
coupon,
of
business
members
or
going out
consolidating with
other members.
denomina-
I
in order to ship because the stability of our
organization in the face of un¬
precedented conditions is a dem¬
securities will onstration of strength which is
$100
as
provide an issue which small in¬
vestors who may be prejudiced
against registered
buy. * * *
?
of
the
leaders
of
our
investment
and
banking fraternities
."
One matter of vital importance
:
to
,
.
Piielps, Fenn & Co.
business is the question of
our
-
digress to speak of member¬
compulsory
competitive bidding
for railroad securities, which the
Association has opposed in briefs
filed
with
the
Interstate
Com¬
significant in considering at this
partial-payment meeting the responsibilities which
plan under which individuals can we are called upon to face.
Our
be signed up during
industry is fortunate in
drives for
;
3.
Establish
a
1
STATE
IN-
■SPECIALISTS
and
.
United States Government
Established 1812
MUNICIPAL
'
/.:S',
,
::
Securities
;
..
'4
,
0\-
.
'.
''
'
>•,
MEMBER
FEDERAL
Federal Land Bank and Other Agency Issues
INSURANCE
&
*
,
'
.
3'v
-v /
BONDS
Guaranteed Issues
Territorial Bonds
DEPOSIT
CORPORATION
1111
Municipal Bonds
§1
*1
Municipal Bond Department
C. J. DEVINE &rCO.
48 Wall
Chicago
^.
•
Boston
Street, New York 5, N.'Y.
•
Cincinnati
Philadelphia
•
St. Louis
•
•
Pittsburgh
San Francisco
Head
•
Cleveland
55
Office:
☆-
The National City Bank
Wall Street
New York City
Direct Wires to all Offices
to
the
ica may pass from the government
and financed economy
specifically of trends in the
Association itself, I can tell you
that for the first time since 1937
a
the
to
loan drives
finance
of
War
in the restoration
have been voluntarily suspended.
Out of 150 senior executives in 53
tate and district
Third
plans for dealing with it.
Therefore, our first objective at
this meeting is to develop means
of increasing our contribution to
the job of financing the war, and
second in importance is the con¬
sideration of this industry's part
virtually all offerings of new se¬
curities other than governments
following
opinion, be
time in the
the
make
vol¬
sale
with
controlled
more
there has been
will
would
This is the
Exchange Commission, recently in
Chicago when he said:
! ; Five specific suggestions "as a
"Certainly
a
well-organized,
bership since our annual meet¬
means of stimulating and broaden¬
ing of a year ago. In that period smoothly operating financial mech¬
anism is an essential requisite of
ing the market .for Government we have admitted 39 new mem¬
a healthy economic
-securities" were offered by Mr.
system
We
bers, and a few additional appli¬
shall need badly the mechanical
Whipple as follows:.
cations will be presented to the
I 1.
tomorrow.
Concentrate the Fourth War board
Membership skills, the experienced judgment,
and the highest ethical standards
Loan drive on sales to individuals losses were 31 and include, as has
,
When
hour of the
participate
fort, and during
an¬
be maintained in order that Amer¬
business.
one
the
to
energy
in
activities
Let
years,
in¬
meeting certain Treas¬
officials including those re¬
our
industry
our
have
to
Loan.
civilians.
as
honored
are
the
smoothly
prevailed in
from the standpoint
step further and
speaking momentarily and a little
go
beyond
Loan,
or
unwise to burden the efficient
and
of
progress
own
To
will, in my
than at any
us
are
mak¬
War
history of the world, and it would
of the war, the
prospects for economic conditions
after the war, and the outlook for
our
war
of
active
are
Third
this
at
ury
most ef¬
fectively in the nation's total ef¬
the investment
sary; restrictions.
meet under
the
for
immediately
greater
America.
The statement
need
and
perience
Association of Securities Commis¬
Government
will lend bus¬
reach
which
government securities.
retiring President of the National
year
sacrifices
time
privilege of being President
of the Association during the past
in
are
the
either commercial
sponsible for the coordination
untarily contributed much of their
Joseph W. Schneider, Securities
The
IBA
Many of them
have, for the past two
critical times ahead.
do,"
he
warned,
"the
partners, ex¬
employees of member
the
Other members of
the
we
than 2,500
or
of
service.
in¬
an
paralleling our own by em¬
phasizing in public utterances the
importance of having the invest¬
ment machinery of the country in
advance.
industry
through
the
private
capi¬
tal
as
have
more
ecutives
terest
each War Loan drive and develop
capital
and making it
that
few weeks spokesmen for both the
position
a
We
us
and
obtained.
"we must find
•
been
temporary relief
Reports of the commit¬
in
were
vestment bankers.
Confer¬
have
held with the Bureau
Outlines Plan To Make This Accomplished Fact
80
com¬
working
basis.
regarding
mittees
Treasury De¬
partment of stabilization of
of New York
-r
THE COMMERCIAL &
1882
FINANCIAL CHRONICLE
of
lo Currency
war bonds or stamps must be
continuing thing; that he who
buys a bond in the heat of the
campaign and then subsequently
Thursday, November 11,
Dilution And Increas
GROUP CHAIRMEN
a
succumbs
intf Productivity Key To Post-
the
to
to toss it back
first
NEW ENGLAND
NEW YORK
SOUTHEASTERN
temptation
the market with¬
on
out rhyme or reason is a deserted
'
War Debt Problem:
on
Spinney
the home front.
Turning to
ter of
time
dian, married, with two depend¬
ents, and with an
income of
job under conditions peculiar
to itself and there is no earthly
S5,000, now pays a Dominion in¬
come tax of $1,662, including $600
reason
should expect a
piecemeal comparison of specific
we
:.:h
"another
much broader
(Continued from page 1871)
why
and
as
have to expect that
war
goes
and
on,
accumulate
in
"No doubt you
have looked into
all these matters and, judging by
current
quotations on Canada's
high-grade securities in your mar¬
ket, Canadian credit seems to be
pretty
well
regarded
in
these
United States, and requires no at¬
tempt at support from me.
"Statistical comparison of any
particular phase of our respective
war
programs, besides being ra¬
ther boring on. an occasion such
as
this, is never, in my opinion,
particularly helpful or enlight¬
ening.
"Each country is doing its war¬
is
"It
pol¬
that
true
our
finance
production,
experience
and price
'How
can
vast
increase
the
m
carry this
Government
in
unsatisfactory.
academic question.
For to the in¬
dividual
these
pieces of paper
possibly
cesses,
such
the
fact
to
as
some
of
our suc¬
they are, are due
that
still
are
we
a
small country
in point of popula¬
tion, and problems of organization
and
control
therefore
are
them
it
as
this
were,
the future which he
through
work,
is
not
"It is not
his claim
has
effort
on
acquired
and
will¬
enough that he be
swered that his Government
war
effort
through
ciate
in
face
the
'A
U A 4Y1SV
.<£■h'
of
an
Wm,
in
H.
i
v
Potter, Jr.
F.
K.
StepKenson
prices
and living costs.
He
assured, not only of re¬
payment, but repayment in hon¬
Robert C. Kirchofer
coin
est
that
will
return
to
good will and good understanding,
then to buy more bonds to
and
the limit of his
him,
in the future, the same power to
purchase that he has relinquished
today.
"Well, there is much that could
be said about this, but time presses
upsurge
submit to increased taxation with
be
must
and
or
I
must
two
means
limit
myself
observations.
think
in
our
plain that
we
In
power
to
one
the first
try
can
to
by all
make
it
long as the war lasts
the best and surest way for any¬
to
buys
so
ensure
that
the
bonds
he
going to be repaid in
'honest coin' is to throw his
weight
into the fight against
inflation, to
are
ability, and having
done all this to go and influence
his neighbor to do likewise.
•
place, I
one
"But looking ahead to the post¬
war
years,
good deal
the picture becomes
more
"The patriotic urge to save
have
disappeared; and
some
,j
*'
bonds
to
satisfy
long-deferred
wants.
"Indeed, fears
pressed
cash
that
these
are
the
already
claims
and
to
them
■
,
\
t),
•
s
f
',
l
1»
l'
U. S. Territorial and Insular Bonds
Industrial, Public Utility, Railroad
NEW YORK
and
CHICAGO
Municipal Securities
Eastman, Dillon
&
Co.
MEMBERS NEW YORK STOCK EXCHANGE
15 BroaJ
Francis I.
Pont
du
Co.
&
Chicago
Street, ISTew York 5,1ST. Y.
Philadelphia
Reading
Paterson
Easton
Hartford
Underwriters, Distributors, Dealers in
! Corporate
and
Municipal Securities
■'
MUNICIPAL
members
New York Stock
Exchange
New York Produce
New York
ONE
Tel.:
Exchange
•
New York Cocoa Exchange
Coffee & Sugar Exchange
WALL
Wilmington, Del.
White Plains, N. Y.
Chicago Board of Trade
•
NEW
Cable:
New York Cotton Exchtnge
New Orleans Cotton Exchange
•
STREET
BOwling Green 9-6000
BONDS
New York Curb Exchange
YORK
Greenwich, Conn.
N.
Y.
Teletype: NY 1-1181
Rhetpont
Newark, N. J.
5,
i
Philadelphia, Pa.
-
B.
Charleston, S. C,
J.
Van
Ingen
new
-
CHICAGO
ex¬
to
spend
on goods that will for some
(Continued on page 1908)
BONDS
j
•
rush
sudden
Exchange
MUNICIPAL
AND
will
peo¬
ple will be anxious to cash their
Underwriters and Distributors
STATE
a
complicated.
BBeais, i§
Mem bers New York Slock
■
,
'
an¬
had
the purchase
hffelS
Wiif
rnimmmm
can
for his always find the money to meet
subject "The Challenge of War this claim when it is presented
Finance," stated that "once again for payment. The answer is the
less satisfying in that he has al¬
we see the need for the power of
a
compelling idea—the thought ready had some inkling of how
that support of one's country's the value of money may depre¬
Spinney, who
■
f;
-J
til
<//
an
power.
corre¬
spondingly less difficult tosolve."
Mr.
represent,
tl*
M-
nation
Debt?'
"But
;
du
'm
and
more
control has been, by and large, not
For
1
111illSl
f:m.
in¬
as
portion which is sub¬ methods and results to show uni¬ more of these engraved pieces of
ject to certain offsets for insur¬ formity at all points.
paper bearing the Government's
"I sometimes think though that
ance
premiums,
mortgages,
et
promise to pay, that more and
cetera—when I point out that this among our good friends here, we more their thoughts are going: to
Canadians get better marks than turn to the intrinsic value of
compares with a total Dominion
what
income tax of $80 before the war we really deserve as far as the they hold.
financial and economic aspects of
—you will have some idea of the
"People are going to ask, and
are
personal readjustments which our our war effort are concerned.
beginning to ask: already,
austere but realistic financial
-
phase of this mat¬
we
dividuals
:
finance," Mr. Spinney
war
the
'
YiV:
very
said:
"I think
\
-
refundable
icies have made necessary.
1943
8c
Co.
inc.
york
MIAMI
Volume
THE COMMERCIAL
Number 4228
158:
& FINANCIAL CHRONICLE
five
Our [Greatest Job On The Home Front
the
t
Making known that the War Finance Division is engaged in preparations for the Fourth War
,
and
men
volunteer
as
Third
War
women
workers
Loan
drive.
in
Ob¬
viously no single segment of the
population should ask credit for
than
more
a
small
accomplishment,
On Individual Sales
j~'
million
served
Fourth War Loan Of About $40,000,000,000 Planned Early In Year, IBA Is Informed By E. R. Hall, Treasury Assistant—Greater Emphasis To Be Placed
1883
of
part
which
the
just
was
short of $19,000,000,000. But bank¬
ers
and investment dealers play
the
restriction
banks,
of
offerings to
only to the smallest
possible, but to securities
not
amount
with
a
That
meant
term of
terest rate
on
ten
years
less.
or
maximum" 2%
a
in¬
bank securities and
the
issuance of longer bonds at
higher rates only in forms ineli¬
gible for commercial bank invest¬
ment. He explained that limiting
bank purchases to ten-year bonds
a part that is out of all
proportion
to their numbers—an
indispensa¬
Association of America at its annual meeting on Nov. 4 the loan "is planned for early 1944, probably
ble part that deserves and receives and shorter maturities seemed de¬
in January,"
It was brought out by Mr, Hall that "budget estimates indicate that the amount of new
the deep appreciation of the Sec¬ sirable in the interest of
bank,
borrowing, required during the remainder of this fiscal year namely until the end of June, will be
retary of the Treasury and of all liquidity and that with the cur¬
about $40,000,000,000."
In accordance with policy, said Mr. Hall, "it will be sought to obtain as much
concerned with the financing of rent and
as possible
prospective increases in
Loan, Edward B. Hall, Assistant to the Secretary of the Treasury, advised the Investment Bankers
from
securities
-sources
outside
to
non-banking
insti¬
tutions."
the
his
In
banking sys¬
tem," and in
cated
conseq uence,
stated,
address,
that
Mr.
Hall indi¬
1942, to
Oct. 15,
from
15, 1943, the Government's
interest-bearing
debt
increased
a
new
speaking
time
"with greater
emphasis than
bonds, he said, "amount to about
15% of the interest bearing debt."
V
ever
Mr.
t
p e c
indi-[
on
vidua!
and
e
that the
1 es,
s a
of
less
no
Hall
occasion
took
to
state
Treasury's huge program
financing "has been car¬
forward
not
only without
war
when
bonds
and
x
selling
bond
d
e
be
may
this
to
audience
member of the national
$74,000,000,000, from $93,000,000,000 to
$167,000,000,000.
Savings
drive
experience to be here as a
I am honored to be
and
guest
Oct.
he
a
is
was
This
a
distribution
of
larger, more urgent
important task than it
a
more
ever
at
in the nation's history.
audience
is
made
of
up
bond men—underwriters and dis¬
tributors,
banks
firms.
bond
and
from
Such
has
specialists
stock
been
from
disturbance in the money market,
fessional interest
sales to insur¬
but
patriotic interest in the Treasury's
ance
open
compa¬
nies,
and
In
mentioning
that
and
are
B.
for
that
"a
that
we
viduals
and
and
banks."
some
of the prob¬
considered
incident
the
loan,
the
to
he
stated
compromise suggestion is
have
only
conclusion
drive
a
for three
then
And in conclu¬
sion, he declared that "from the
standpoint of the general interest,
Hall
being
discussed
plans
securities."
it is well that investment
commercial
lems
so,
Edward
in¬
other
vestors
than
interfering with an
and fairly active market in
other
all
kinds of insti¬
tutional
without
for
indi¬
weeks
or
being maintained in healthy con¬
dition, because they will be need¬
ed in the post-war period."
Mr. Hall is serving as Assistant
to the Secretary of the Treasury
on
leave
Hall
ment
immediately
announce
on
its
supplemen¬
tary quotas for sales of the
same
banking
organizations are
brokerage
&
of absence from
Co.,
his
house.
Harris,
Chicago invest¬
His address follows:
your
as
that
apparent
while
of
the
success
our
Ted
.
You
part.
volunteer
Our
best
army
that
Treasury Daniel W. Bell made
address at your annual meet¬
ing.
the
Under Secretary of
Much water has
dam
since
outlined
and
in
gone
over
October, 1942.
well
his
considered
rationing, would necessarily be in
estimate
takes
is that
in
the
has
been
deficit
made
from
to
other
finance
the
them
In
success
in
sight.
intervening
year,
has increased $74,000,000,000, from
$93,000,000,000 to $167,000,000,000*
Of this increase in the public debt
about
$70,000,000,000
is
repre¬
sented by a net increase in se¬
curities outstanding in the hands
of the banks and the public. Per¬
haps the best
way
to bring home
to this audience what it means to
do
$70,000,000,000 of
in
twelve
financing
point out
that it is the equivalent of offer¬
ing
a
$230,000,000 dollar
deal
every business day, including Sat¬
urdays.
months
Of
this
new
is to
$70,000,000,000
increase, the growth of bank hold-
(Continued
on page
1885)
Municipal Bonds
Federal Intermediate Credit Bank
SALMON' J'.
Consolidated Debentures
CHASj:
tSiOl-iSdyf
Offer...
THE
CHASE
NATIONAL
OF THE CITY OF NEW
Safe Employment
BOND
BANK
YORK
DEPARTMENT
Pine Street Corner of Nassau
Tel.
HAnover 2.-6000
Bell System Teletype
NY
1-1010
for Reserve Funds
EETING the short term
M
investment
needs of commercial and
savings
banks, insurance companies, industrial,
UNION SECURITIES
CORPORATION
railroad, utility corporations, monthly
offerings of the Debentures are readily
received/ Purchasers of these
several
thus
earn a
otherwise idle cash
ance
joint and
obligations of the twelve issuing
banks may
of
fair income
balances, with
principal available
on
on
Investment Securities
assur¬
matu¬
rity dates selected. The Debentures also
enjoy, broad secondary. marketability.
.
THE
FEDERAL INTERMEDIATE CREDIT
Further-in jovulation may
be obtained from
CHARLES R; DUNN,
31 Nassau Street
Fiscal Agent
New York
65
BANKS
5, N. Y,
BROADWAY, NEW YORK
HARTFORD
SYRACUSE
BUFFALO
BOSTON
'»*
PHILADELPHIA
♦
from
1942^ to Oct. 15, 1943, the
meetings
of this Association and in quite a
few different capacities, but it is
Secretary of the Treasury
of
change-
I have attended many
State arid
all
interest-bearing public debt in¬
cluding
guaranteed
obligations
Then
sources.
is
the
ago
I think
can
Oct. 15,
nonbanking in¬
His
Treasury Department, not merely unprecedented magnitudes.
statement included these policies:
as volunteer
workers, but as pro¬
fessional leaders who help give'
First, to borrow from commer¬
direction
and
guidance to the cial banks only after every effort
great
year
we
be borrowed from
an
all in this job with the
are
that
agree
a
out and
these policies. No reason to
pro¬
Gamble, who is here today
will
you
borne
program, it is the War
Loan
drives
that
provide
the
bulk of the
money necessary to
your
loan campaigns that I said to
down
find satisfaction
vital to
He
speech "a clear
pattern" for
and who is National Director of
the War Finance Division, that borrowing by the Treasury. This
talking to you is just like address¬ borrowing, he pointed out, while
ing a gathering of War Finance only part of the economic pro¬
gram that includes taxation and
Committees.
war
laid
program
otherwise
are
rate should
profitable.
The predictions involved in this
have been
the
ried
well
more
be reasonably
day-to-day
purchases
of
war
bonds through payroll savings and
A year ago,
exchange
emphasis than
as
bank deposits the 2%
importance of your skilled
help increases as it becomes more
vestors.
■before
on
war.
The
and
Treasury's
organization
the
a
as
the
BALTIMORE
,
i^UwWito'iii'iiiiMtlwW
a
bearing on post-war fir
nancing. Nevertheless, it is impos¬
(Continued from page 1870)
shall be under¬ lieves that a substantial reduction
taking an objective which is not can be achieved, as well as a bal¬
only impossible to accomplish, but ancing of the budget, if a satisfac¬
one
which in my honest opinion tory post-war level of production
Regarding the pros¬
is incompatible with the free en¬ is attained.
terprise system," which latter he pects for maintaining a free so¬
stated, "carries with it the right ciety and a system of private en¬
terprise! in the United States, he
to shift from one occupation to
United States, we
the
in
crease
stated that
national
an
output
these
"can be solved if
in¬
we
problems
have the
na¬
tional will to do so."
of
Mr.
goods and services by 45% or even
30% will make the demand for
Fennelly's address follows
in full:
I
"tremendous,"
adding that the "huge reservoir of
savings, induced by the great dis¬
crepancy
between wartime
in¬
additional
confident
feels
.
Mr. Fennelly
capital
"
can
1
with
say
cerity that it is
an
complete: sin¬
unusual pleas¬
to be here with you
and the lack of goods avail¬
In
like
coming home than anything I have
purchase, should provide
magnificent market for securi¬
ties for many years after the war."
Discussing some of the post-war
experienced since I left the in¬
banking business to be¬
come a Washington bureaucrat al¬
most two years ago. In the second
problems,
Mr.
Fennelly said
prompt settlement of terminated
contracts is necessary to avoid a
work with the Commit¬
tee for Economic Development has
led me to the study of post-war
are
On
this
problems which I am sure are of
the
conviction that
ure
the first place,
able for
today.
more
under
place,
delay in reconversion
In
to
the
our
words, the post-war
investment banking
practically identical with those
of
invest¬
industry as a whole.
assumption, I start with
the
ing problem for all of
outstand¬
in
the
of industry.
As to the disposal of
surpluses,
he expressed, the belief that the
Government's policy will be to
turn over to private industry all
as
Government plants and
ment
plants not required for purely
military considerations. Mr. Fen¬
today to^ tell you this basic premise, and its single
of the Committee for objective may be stated as follows:
Economic Development. I assume to stimulate and assist American
that most of you by now are rea¬ business to make the maximum
profession as any
other group in the country, and I
am eager to discuss some of these
problems with
I
the
nelly warned, however, that busi¬
must be
prepared to
its fair share of the
assume
liquidation, particularly if it
wishes to ask for a similar liquida¬
tion of wartime wages.
As to
am
the
twin
dangers of
avoid
to
mass
unem¬
ployment and mass Government
employment. The CED starts with
you.
not here
story
contribution
that is possible
on
a
sound business basis to
high levels
of
production
employment
after the
plenty of literature on the subject.
My purpose is to discuss, as best I
taxation, Mr. Fennelly be¬
us
post-war world will be
sonably familiar with that story.
If any of you are not, I shall be
delighted
to
furnish you with
cost of post¬
war
•
concern
In
and
war.
this
ment
idea
of
from
of American
banking
two
I
am
par¬
enterprise system
the right to shift
occupation to another;
it
with
one
with the result that
certain to have
those who
fer from
we are
always
normal float of
a
in process of trans¬
are
job to another.
one
high level of employment I
therefore
level
a
which
By
a
mean
is
suf¬
such
policies as the plowing un¬
pigs by Government.
Gentlemen, I have no more pro¬
der of little
found
would involve
will
also
that
note
our
objective deliberately
couples a high level of employ¬
ment with a high level of produc¬
tion.
We
creased
convinced
are
employment
at least
panied by
in
services is
an
in¬
accom¬
with
a
tion
on
ployment
be
is the
core
in
talk
surest
war
certain
30-hour
If
road
ends
week
labor
with
30-hour
the
to
na¬
are
we
cer¬
circles
40-hour
week
of
a
pay.
does
not
work, why then of
Members New York Curb
Exchange
course we
shall
be asked
a
20-hour
or a
10-hour
to
adopt
week.
The
reduction
the hours of work which
a
of
it
will
course
NEW YORK 5
be
nothing
short
that
of
to
lick
post-war problems by
our
of the CED
in
brief
philosophy.
solved
assume
versing the
process
and
we
by
rapid
the
have
ever
known.
If
we
can
achieve such levels of production
the
employment
problem
will
largely take care of itself, th£
great threat of post-war inflation
will be eliminated or greatly re¬
duced, and the problem of balanc¬
ing our Federal budget and carry¬
ing the tremendous load of gov¬
ernmental debt
can
be solved.
Now I must give you a few fig¬
ures
the
which bring out dramatically
size
the
of
employment and
dis¬ production problems that lie ahead
can
of
us.
1
;
of
Department
re¬
(Continued
creating
Commerce
on page
ex-
1886)
MUNICIPAL
LEBEINTHAL8 CO.
135
attainment
of higher levels of production than
as
productivity
highly desirable but
astrous
14 WALL STREET
in
comes
result of increased
is
This
removed.
Practically everyone of the spe¬
of goods and
cific post-war problems which I
self-defeating objec¬ shall
discuss today can only be
problem by spreading
Thus, there is already
the work.
small unit profit, a convic¬
the part of labor that
must
we
Exchange
the
on
equivalent
to be faced with a
strong
political demand to solve the em¬
Stock
conviction
output
a
the
and
that
not
tain
York
a
monopolistic and restrictive labor
policies must be abolished, in the
belief on the part of Government
that all unnecessary restrictions
to an expansion of the economy
You
When the
Members New
urgent
enterprise.
statement of
tive
Kean, Taylor & Co.
than the
part of businessmen that the only
sound policy is volume production
tional disaster.
STATE and MUNICIPAL BONDS
conviction
necessity of reversing this psy¬
chology and accepting the faith
that we can, if we choose, create
an economy of
plenty. This faith
ficiently high to eliminate the
nightmare of mass unemployment
and yet not too high to be com¬
patible with the system of free
increase
connection,
free
a
carries
other
problems
my
much
along with the rest of
free enterprise system.
vestment
a
disasterous
it feels
which
have
Looking Into The Post-War World
another."
the economic factors
Thursday, November 11, 1943
ticularly anxious that you observe employment
by
spreading
the
important points in the state¬ work.
This was the course fol¬
of the CED objective.
In lowed by the Republic of France
sible for me to discuss the post¬ the first place, you will note that in the
years immediately prior to
war
problems in which you are I am speaking of high levels of 1939 and I believe more than
any
interested without touching briefly employment rather than full em¬ other
single fact was responsible
the high spots of the philosophy ployment. After considerable study for
making
her< an
over-ripe
and objectives of the CED.
of this subject, we are convinced melon to be
plucked by the hard¬
The problems we are struggling that there is no more dangerous working Nazis.
"'-v
with are exactly those which you phrase than the term full employ¬
For the past ten years we in this
are most anxious to see solved.
If ment which is now so widely used country
have
already
suffered
they are solved satisfactorily, not by politicians, labor leaders and, greatly from
this
same
faulty
I must confess, by a great many
by CED alone but by all of us
psychology.
Business
policies,
If by full em¬ labor
collectively who are interested in business leaders.
policies and governmental
the preservation of a system of ployment we mean guaranteeing policies all have arisen out of a
private enterprise, I am confident work to every man, woman, and fear psychosis based on the as¬
the investment banking business child in the United States we shall sumption that ours was an econ¬
will be restored to a position of be undertaking an objective which omy of scarcity and that salva¬
is not only impossible to accom¬ tion was
to be found in restricting
great importance and prosperity
in the national economy.
of
goods
If the plish, but one which in my honest output
by
business,
opinion is incompatible with the feather-bedding and other restric¬
attempt fails, I am sure that in¬
free enterprise system.
The very tive regulations
vestment banking business will go
by labor,
and
can,
ness
.h.-iii
~
THE COMMERCIAL & FINANCIAL CHRONICLE
1884
comes
i&iiBiiuw&iwblum atittimm**
^^j.^..^^.t,.....H.;yl|.ilyiilt,lm,M1j||l^|11fi'iiifif-'iliViiir-'i1'li*1-"'
BROADWAY, NEWYORK TEL.REctor 2-1737
Oldest House in America Specializing in
BONDS
ODD LOT MUNICIPAL BONDS
INOPDLOTS
'
Cable Address "LEBENBOND"
Underwriters
and
Distributors
REYNOLDS & CO.
Dealers in Listed and Unlisted Securities
Members
New York Stock
Exchange
Public
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Utility—Railroad—Industrial
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120
Broadway
Empire State Building
Bonds and
v
Stocks
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NEW YORK CITY
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192C
over
$1,600,000
Telephone:
Teletype:
■
1
l(*IHTH«L*CO
BArclay 7-5660
NY 1-584
*T
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
1885
of the lessons
Our Greatest
War Loan experience.
(Continued from page 1883)
numbers
I
ings accounts for about $31,00U,000,000, including an increase of
about $5,000,000,000 in holdings of
And I
the Federal Reserve banks.
widely among small investors.
Savings bonds amount to about
15 % of the interest-bearing debt,
Since your last meeting
of
the
War
have
war
ducted,
Loan
been
other
an
drives
than
to
commercial
aggregate amount of
$40,000,000,000.
sales
had
We
been
a
in
in
that
in
bonds
distribute
to
con¬
future,
to
have
that
terms
guarantee
owners
is an influence for
financial calmness, confidence and
peace of mind—an influence sim¬
larger share of
ilar
borrowings.. This type of
borrowing will have to be stepped
up.
And we can take encourage¬
steady progress
the
believed
is
against
than
these
total
ment from the
in
so
of the debt which is
widely held by the people written
more
wish
it
doubt it will
no
do
that portion
of
buyers
banks
have
to
efforts
and
con¬
sales
securities
its
this
of
successfully
accomplishing
Government
tinue
all three
loss
in
that
its
of
purpose
the
I Also the
the
corded.
effect to
Deposit In¬
and
Federal
bond
redeemable
virtue
has
of
Omitting the very shorttime
issues and including
only
Treasury bonds and savings bonds;
individuals, mutual savings banks,
savings and loan associations, in¬
permitting greater
flexibility in interest rate policy
surance
ernment
in the post-war
ing
companies, and other nonbanking investors bought bonds in
three campaigns as follows!
First
War
Loan, $4,600,000,000;
Second War Loan,
$8,300,000,000;
and Third War Loan,
$11,600,000,000. <
/
• ■
1 ■
giving
bonds
order
First
the
tors
Series
As
E
bond
know,
you
small
assure
But
investors
if small
invest
have' been
interest
on
ities
long time now the finan¬
cial community has discussed the
advisability of the Government's
issuing securities redeemable on
a
particular.
to
securities, the decisions with re4
spect to the appropriate rate of
public distribution of
demand—the
investor^
separately pro¬
vided for by means of redeemable
Government bonds.
For
greater
negotiable
If
sold.to small
were
against loss.
,
in
thereby
Government
action.
large amounts, the Government
might be under pressure to main-j
tain the entire market for highgrade securities (including those
issued by private borrowers) ir|
amounts, individuals
Treasury and savings
War Loan, $1,300,000,000; Second War Loan, $2,900,000,000, ~ and
Third
War
Loan
$4,800,000,000:
!
These figures show rapid prog¬
ress
the
and
in
took
alone
on
securities
freedom of
these
bonds:
pressure
period, by reduc¬
the Government
to "stabilize" the market for Gov-;
the
Of
,
goods
thus
invite
be produced, and
inflation.
can
post-war
a
But it should be
this
kept in mind that
would
be
equally
danger
great; in the case of negotiable
securities,which are, from the
point of view of the holder, as
liquid as those which may be re¬
deemed at the
Treasury. The only
difference "is the uncertainty with
respect to price in the case of a
First, it demonstrated that large
of persons can be
Government securities if the
tact is
sold,
were
has
these
two
bonds
to
ond drive.
Second,
that
sales
new
introduced
were
were
successful.
the
ideas
during the
plant
money
There
Among
quota
and
GROUP
E. PENNSYLVANIA
tributed
much
hard
work
in
made
general market
secur¬
were
a
(Continued
number of
on
rowed for short periods only;
secondly,' providesan
CHAIRMEN
W.PENNSYLVANIA
CENTRAL
the
reature
'
that
has
;
.of
caused
Slltllllllli
>■
i
holding of bonds in
the form of a high interest rate
for the remaining period. A Series
E bond of:$100 maturity value
costs $75. In five years it can be
jjgL
i
fi«:M
redeemed at $82. Only $7 has been
added.
But in the: second fiveyear
^period
crease
in
■
it
will
further
value
by $18.
of these bonds
in¬
holding one
a few
the Owner has title to an
unusually profitable
investment
years:
for the
remaining period, and this
feature
cannot
widely;
understood
fail
to
become
and
appre¬
ciated.
Now
I
want
to
mention
some
Edw.
M.
Hopkinson, Jr.
M.
John
Grubbs
E.
_
___
is
cash them and endeavor to spend
Net markets to institutions and dealers
BONDS
rapid rate
SECURITIES
BRITISH and OTHER EOREIGNS
Quotations Furnished
—
Dick & M<srle-Smith
Investment Securities
on
UTILITY BONDS
•
REORGANIZATION
30 Pine Street
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Boston 9, Mass.
Inquiries Invited
Hirsch, Lilienthal & Co.
Members New York Stock Exchange
and Other Exchanges
LONDON
GENEVA REPRESENTATIVE
4,
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•
Bonds
30 Pine
Commodities
•
SV£/3
65
38roaJway,
Street, New York 5
Investment Securities
JYM
Wed 6,
Commercial Paper
^ACm fy/or/v 20, _A( tf/.
30
Commercial & Travelers Letters of Credit
300A
Qsuane f/twef,
'
fflvr/,-
33,
*A( A/.
Foreign Exchange
Chicago, Illinois
Connecticut:
London, England
New Haven
Blunt, 3rd
the possibility that holders might
the proceeds at a more
Waterbury
»
Torrington
ji
After
savings
concern
Underwriters-Distributors-Dealers
YORK
STATES
and,
incentive
for continued
post-war period may
irrespective of the spe¬
Another
bonds
than to that of any other security.
NEW
things
page 1898)
cial problem of small investors.
in
tabu¬
lating local subscriptions in order
to keep solicitors informed of the
progress from day to day.
have been bor¬
to
proves
some
were
to
the employees of banks and other
business organizations who con¬
were
interest
on
handle the less glorious
of the operation—the em¬
ployees of issuing agents who had
to get
the bonds inscribed and
compared to 33,000,-
advantages:
reduces
cost to the Government
which
as
the marvelous
was
parts
$2,500,000,000 of
sold, as compared
$ 1,500,000,000 during the Sec¬
E
these
it greatly
had
person-to-person basis.
000 in the Second War Loan drive.
In dollars, nearly
Finally, the graduated scale of
redemption values on Series E
bonds
a
there
cooperation of the huge volunteer
of the people who
sales army and
Over 52,500,000 pieces of E bonds
drive
market issue.'
on
Then
sold
con¬
the
be
Treasury has given more encour¬
agement to the sale of this issue
RAILROAD
than
First,
Corporation.
surance
re¬
the campaign to sell an extra $100
in War bonds.
taught by the Third
Job On The Home Froni
208 So. La Salle St.,
1416 Chestnut St.,
Chicago 4
Philadelphia 2
75 Federal
314 North
Street, Boston 10
Broadway, St. Louis 2
THE COMMERCIAL & FINANCIAL CHRONICLE
1886
Thursday, November 11, 1943
Vinson Calls for
Looking Into The
Courageous Tax
Post-War World
Program to Prevent Inflation
In Excess Purchasing Power, 40 Billions In Individual
Declares That 20 Billions
Deposits and I6V2 Billions In Currency Held By People Constitutes Dangerous
Inflationary Threat. Says Experience Demonstrates Inability to Rely Upon
Further Increases In Voluntary Savings to Absorb Excess Purchasing
Power. Solution Lies In Courageous Tax Program With Special |
(Continued from page 1884)
perts estimate that
level
industry to peacetime production.
satisfactory
employment
will
be
of
a
That would
achieved only
the
in
the
somewhere
.
in
the
neighborhood
total
is
9,000,000,
some
2,
greater than the aggregate of those
we
•
"a
courageous
"keep faith
tax program" in order to
with
fighting men" and "with America's
Bankers Association in New York City,
national income is in-the hands of individuals earning ,$5,000
our
In addressing the annual meeting of the Investment
Mr. Vinson
stated that "four-fifths of our
"
a
less;*
year or
if,"
said, i
he
"we
to
are
be accomplished by lowering
j the present personal and depend-
exemptions, by raising the
purchasing! normal and surtax rates, and by
power
from | placing sharply increased excises
siphon
the
offiency
levels
of
income where
inflation-
j
j
pressures ;
are
the
these
income
and
groups
preferable to
above
Warning
the
"too
their
M.
Vinson
still
viduals
and
of
pense
peace."
bear
a
stantial
Mr.
sub¬
por¬
tion of the increased burden. This
ury's
in
indi¬
as
mobilization
•
Vinson
in
:
A/,
the
Treas¬
for $10,500,000,000
program
taxes
"a
heeds -j and
from
the
•
.
As
conserva¬
result
a
of
to
taxes, he cited
Americans
more
show
that
"are this year
spending astronom¬
ical sums for jewelry, furs, fine
clothes and other luxuries."%"/
advances;
esti¬
mate that, with 55,000,000 civilian
workers employed in the imme¬
We give as follows Judge
address:
A
ViiVj
son's
'
,
Tonight I intend to talk about
taxes.
Fiscal
policy /is" .the heart
This is par^
ticularly true in time of war when
of economic
policy.
the
government
quantities of the implements
which
are
destruction
freedom.
now
for
purchases
spelling' ' certain
the
Taxation
(Continued
such
on
enemies
is
a
page
of
compli1887)
period,
new
dis¬
a
In
other words,
in
increase
an
ing?
of
production
greater than
should
be
-
that of 1940,
They
tional '
working capital will be
in large amounts to han¬
needed
dle the increased
no
unem¬
ments
Additional fixed capital will be
to
8,000,000 in 1940,
From these
clusions
but
figures, certain
much
to
higher
oroduction than
ever
raise its
levels
The prob-
also
believe
of
attained be-!
fore in times of peace.
only
for
for "replace¬
during
actual
an
capacities.
I
the
war,
expansion
am
not
wor¬
ried about the possibility of great
surplus capacities in many of our
basic raw material industries, such
as steel, copper and aluminum.
I
emerge;
to
not
deferred
of plant
con¬
1. If American business is to do
its share in reaching the desired
sights
volume of busi¬
ness.
000,
6,000,000
are,
a 45%
increase, or even
increase, in our national
30%
required,
with
interna¬
and
ployment may reach the stagger¬
ing totals of 15,000,000 to 19,000,compared
and
output of goods and. services, the
'demand for additional capital will
certainly be tremendous.
Addi¬
from
another angle, these same
experts
state that, if our national
post¬
war
domestic
;
achieve
a
in" total production.
problem
inflation,
first, that the de¬
supply
factors
are
amazingly favorable. If we are to
employment would
be accompanied by a gain of 45%
the
mass
mand
total
Looking at
of
/ What are the implications of all
of these facts for investment bank¬
output of goods and services could
22%
effects
tional.
national
our
objective, it will have
Municipals
I
lem is not just one of
reconverting
that
the
war
caused
ex-
Pension in these industries and is
one of the important reasons why
(Continued on page 1894)
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SECURITIES
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NEWARK
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Bank and Insurance Stocks
Municipal
ililillSllilll
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CERTIFICATES AND MORTGAGES OF
"Direct
Private
Wires
to
Toronto
and o&ontreal
Wood, Gundy & Co.
Title and
Mortgage Companies, Trust Companies and
Banks, Prudence Bonds and other real estate securities.
HART SMITH a COMPANY
Members New York Security Dealers Association
Incorporated
14 Wall
TORONTO
•
MONTREAL
•
52
Street, New York 5, N. Y.
WINNIPEG
William Street,
Telephone HAnover 2-0980
Private
•
VANCOUVER
•
a
paralyzing influence
unemployment upon all
policies,
experts
-
tive request" from the standpoint
New Jersey
of
these
Government
be about 45% greater than of 1940.
pay
If
savings, with the
war
destructive
leaders, that the American people
cannot
to
and with the
technology which have
taking place during the war.
diate post-war
figures
essence.
shall be threatened with
sipation of
dustrial:
With respect to the conten¬
tion of some business and political
tion.
vast
and
war
.
called
for
fiscal
/standpoint of economic stabiliza¬
improve
at the ex¬
groups
stability
additional
to
position
as
total
economic
must
seek
economic
war-time subFred
a
that
many
level of decent
sistence
decidedly
believe
I
in! vented, Mr, Vinson declared that
whose incomes
are
"are
added,
most
fall
who
them," he
others similar to
or
general sales tax."
inflation is "a
those | monstrous evil"- that must be ^re¬
ary
severe,
"Such proposals
luxuries."
upon
of
Time is of the
been
these
can
easy
high levels of production and em¬
ployment are not Rapidly attained,
Asserting that "higher taxes, in combination with increased personal war bond purchases, afford similarly employed in 1940.
The problem is further compli¬
the one safe fiscal road which we can travel in these perilous times," Fred M. Vinson', Director of the
Office of Economic Stabilization, called on Congress and the American people on Nov. 4 to adopt cated by. the great strides in in¬
future."
relatively
What is called for is
difficult task of
more
accompanied by
rapid and substantial expansion.
22%
or
much
reconversion
of 55,000,000 civilian workers. This
Consideration to Substandard Groups
be
accomplish.
jobs
if we can provide
post-war period for
New York 5, N. Y.
Bell System Teletype NY 1-395
Wires
Conneet
LONDON, ENGLAND
NEW
YORK
—
MONTREAL
—
TORONTO
Volume
158
Number
THE COMMERCIAL &
4228
FINANCIAL CHRONICLE
.to search out new sources of
Vinson Calls for Tax Bill
who
women
formerly
get work only two
To Prevent Inflation
"understandable.
the
desire
of
self-interest
Naturally,
for
some
it
to
ping
economic
or
demain; Perhaps,
in this field as
others through which the
winds of doctrine have blown
hard,
so
need what the late Jus¬
we
tice Holmes
called
"education
in
the
fiscal
.
financial
contro¬
\
'
.
Sometimes
and
year
believe
I
it
that
f
is
knowledge
time
fully emploj'ed, but are di¬
boy,
who
the debt."
'
war
is
objective.
our
Certain facts about
certain
sions.
almost
employment
and material
'
wartime
our
inevitable
Once these facts
tinfe
peace
for
to
wants
conclu¬
produce
more
drawn, many
of the controversies which attend
more
are
and the conclusions
construction
revenue
fore
I
of
a
mist be¬
first
to
state
some
of
est levels in
our
building and loan funds and
tual savings accounts.
War
on
mated
year
.will
sume
.full
wage
at the
are
not
and
year
high¬
in the pro
profits,
are
before' in
an
all-time
and
high.
purchases must also
account.
It
is
the purchase
esti¬
war
that
bonds. We may as¬
other
these" purchases
decrease
of
third, and
more
will
during the calendar
for
the
consumer
available.
1944.
would
limited
goods
Such
a
and
work,
so
shoes,
food,
that
ever
history.'
Consequently, the total income
received by all the individuals, in
it
is
that
which
our
BOND
radios,
goods and
more
more
we
and
STOCK
opposite. We not only witness full
for every man and
go
who wants
•
(Continued
on page
BROKERS
Specializing in
job,-but we
into the highways and byways
woman
a
Railroad Securities and Reorganization Securities
Province of
Publishers of
>
.
•
"Guide to Railroad Reorganization Securities"
ALBERTA
All Issues
Special Analytical Service for Out-of-Town
4
Bought, Sold, Quoted
Dealers in Railroad Securities
Ernst & Company
PFLUGFELDER, bampton & RUST
MEMBERS
NEW
YORK STOCK
EXCHANGE
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Exchange
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INVITE
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of
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WE
define
'
000,000,000 in individual demand
employment
these facts, along with the conclu¬
sions which, to my mind, follow.
spree
a
as
No one of these methods of at¬
more
more
houses and
of
services
inflation.
may
clothes,
automobiles,
supply
spending
com¬
we
bonds;
find its manifestation in
and
more
war
most
disastrously,
the people, individually and com¬
petitively, could set off a spend¬
ing orgy in trying to outbid each
or,
jobs available
woman who
see
the
tack need be exclusive. In fact,
000,000,000 in individual purchas¬ •we have, during the past two
ing power. And this is not the .years, tried a combination of all
whole measure of excess spending three. Our tax burden has
inpower. We cannot ignore the $40,- creased substantially since Pearl
business
also higher than
and
currency
power, Second, the people could,
acting individually and. coopera¬
tively, try to add to the volume
of their individual savings through
mu¬
chasing power—taxes, war bond
purchases, and all other forms of
individual savings, there will still
be left a current surplus of S20,-
brought agricul¬
volume
in
If, however, we add up all these 'continuous rise in the level of re¬
offsets against the national pur¬ tail prices and
living costs—and
history. Increased
income to
Business
deposits
500.000,000
that, during the calendar
1943, individual (investors
buy
about
$17,000,000,000
worth of
man
a
bond
be taken into
Unprecedented
working
overtime basis,
time
and
services of all types. In wartime,
our national objective is the very
sun.
want
to
refrigerators,
more
wartime
as
system melt
the
human
our
all share the
man
every
stated
the
for
resources
we
desire
mon
indisputably
From these facts there flow
true.
at
salary payments
tural
In
;
economic picture are
income
levels. With every available
level.
payment of personal indebtedness,
payment of insurance permiums,
of
of the farm has
for total
a
-
of
na¬
record
our income will or can
excess spending power.
As I see
Twenty billions will be it, there are three alternatives:
collected in State, local and Fed¬
First, people could, through the
eral taxes, at existing rates.
The processes of democratic govern¬
Treasury estimates that approxi¬ ment, decide to levy taxes suffi¬
mately $9,000,000,000 will go into cient to absorb a substantial por¬
ordinary long-term savings—re¬ tion of the
excess
purchasing
food and fiber production and the
increased demand for the products
mobilization
black i duction of useful goods and servrepudiated ices for civilian consumption. In
afterwards
of.j unprecedented sums
money,,for war has created a
a
be spent.
con¬
tory. Total
est
to
level
maintenance
a single objectivemilitary might and military vic¬
for five cents, traded it for a tencent
watermelon
and
sold
the
credit
the
at
that all of
com¬
ture
or
the first
peacetime, it is the. aim of
economic policy to secure the full¬
on
with
time
not only for
are
has not materially increased since
the day we bought a ginger cake
watermelon
sistent
woman
rected toward
financial
modities to the lowest
and
cannot be educated political econ¬
our
consumption of civilian
fort. In economic terms, it means
that the unequalled resources of
omists
of
the
tional
America
sum
long
But, contrary
peacetime policy, we have
the production and reduced
impossible
to
comprehend
the
magnitude of this productive ef¬
versies'of his day. "Marse Henry,"
he said rather sharply, "all of us
capable of nice, hairsplit¬
ting distinctions. For our part, the
three days
and
ery.
the obvious."
Back in 1876 that distinguished
Kentucky pundit, the late Henry
Watterson, was discussing some of
a
training, equip¬
are
or
working
overtime.
vast army, a
becloud these
in. many
We
war.
is
now
is
$16,held by
During this individuals.
period of time, we shall produce
In the realm of fiscal policy, the
only $90,000,000,000 worth of con¬ principal problem confronting the
sumer goods and services.
American
people
therefore
is
Of course, this does not mean what to do with these billions of
able to
sending "into battle a maximum
productivity for our
vast fleet, and a vast labor force. All the rest of our
air armada.
Soldiers, sailors and creative energies we are
devoting,
airmen must.be fed and clothed or at
least we should be devoting,
and
supplied with the tools of to the production of
goods and
war,
This necessary equipment services for use on
foreign battle¬
must be produced, assembled and
fields, rather than in American
transported to the battle grounds. homes..
To do>this requires money, man¬
Financially, however,, the story
power, raw materials and machin¬
is quite different. The expendi¬
is
political advance¬
simple is¬
sues by complicated smoke screens
of argument and statistical leger¬
ment
$100,000,000,000
spending
for
Government
are
of
were
nation
For the calendar year 1944 it will
reach $157,000,000,000.
our
cut
Federal-
Our
business, but the underlying
principles of a wartime fiscal
policy are in essence simple and
week
-hours
to
(Continued from page 1886)
catecl
■a
the
man¬
and womanpower. Men and
power
1887
of
1890)
>.1
(tukoiiy
WhiiMirfmii'l
:
1888
Y'
f
Would Snuff Out Small Dealers and
Impair Nation's Whole Economy
>v
(Continued from
page
1870)
action, before accepting an order for execution from a cus¬
tomer'
with
institutions,
a
volume
business
The public
over-
what the effect would be
on
on
our
economy
line of business were obliged to reveal cost
prices to their customers before selling merchandise to them.
This aside from the fact that a reading of the proposed rule
(given in full below) itself will reveal that the dealer would
be called upon to do the impossible in
many instances.
; •
;;;;; ■ •;.
Some Effects of the Rule
If this rule should become
J1
J'
1
-
-1
the-counter' securities
forced
not
ness
would be
to take
over
their
that
of
out
ities in which there is
a
of over-the-counter
busi¬ curities
fine his transactions with
body of
a
position because of
ready market. The great
mass
obliged to
tomers to that
—
| dealers feel reasonably safe
—
effective the dealer in
was
<.«,
would
con¬ because
cus¬
a
ruled
out
could
dealer
not
take the risks of these trans¬
secur¬ actions.
ready
be
se¬
The market for
ven¬
ture
capital would be almost
market and bid and asked closed.
Admitting the high
prices are readily available. moral purpose of the SEC no
This group of securities would one could doubt the
calamity
include large and widely dis¬ to business
enterprise of this
tributed
issues
of
counter bonds and
over-the-
a
known stocks
result.
Few dealers would be
very few able to stay in business
in which those
few
would
and
probably
posed rule?
destructive processes are not
new
in
business>and gov¬
,
prise.
Of
course
a
"Black
will Market" would
develop. Men
deprive investors of the honest and efficient service being would again
gather on the
furnished now by thousands of small dealers throughout the
street corner as in
primitive
country. -To realize how monstrous the proposal is, one only days and
swop securities and
has to reflect
the ment, not only is not political
freedom, but often creates a
Certainly such spirit precisely the reverse,
pro¬
carrying down to the lowest
grade : in society the desire
the-counter market, and the ernment.
Down through the and ambition of
political dom¬
present limited information agessociety> has struggled ination,
•
:
and service would be closed for
freedom; freedom from
to venture
capital and enter¬ government restriction and
"In proportion as all real
would be shut out of the
will not remedy the defects of the business but
if those in every
Thursday, November 11, 1943
consist of those
do
I^avi ita
•
who are large SEC has not
analyzed
enough to specialize in bonds economic effects of this
and
well
''';!.n!'^.V'1!-vA,;'••.'%'£' 'S'-ft*)'-/t'V^r
THE COMMERCIAL & FINANCIAL CHRONICLE
SEC lid and Ashed Disclosure Plan
"
y/ir*
J;vj»A .? f"iVi ,-i * tn>unibW»ii^ifrf*
destruction
For
more
much
as
from
dom
as
dishonest
free¬
initiative resides
men.
ernment,
than two thousand
in the gov-
and
individuals
habitually feel and act
as un¬
society has had to fight der its perpetual tutelage,
the battle against government popular institutions
develop
barter.
Perhaps this would be destruction of legitimate pri¬ in them not the desire of free¬
outlawed but it would
go on vate business. J. S. Mill, one dom, but an unmeasured
ap¬
anyhow "because even the of the world's most renowned
petite for place and power;
SEC cannot kill the
in
spirit of scholars
economics, ' fi¬ diverting the intelligence and
freedom and
enterprise; but nance, political science, gov¬ activity of the
country from
they may greatly cripple, the ernment and philosophy, and its
principal business to a
country's progress by driving who made his living as a wretched
competition for the
a
legitimate business to the practical business man, wrote selfish
prizes and the petty
underworld. V
;
,;.' • '■ in part almost a century ago, vanities of office.
What is the purpose of this after a
'A
:js
#
>];
long life of experi¬
proposed rule?
We suppose ence:
J' "Few will dispute the more
the purpose is to
"protect" the
"Experience
proves that than sufficiency of these rea¬
investor, f. whatever that the depositaries of power
sons, to throw, in every in¬
means.
But shall we
destroy who are mere delegates of the stance, the burden of
making
a
necessary business just be¬ people, that is of a
majority, out a strong case, not on those
cause
mistakes are made— are
quite as ready (when they who resist, but on those who
and
we,
for our .part, are think they can count on
popu¬ recommend, government in¬
willing to believe that most lar support) as any organs of terference. Laissez
faire, in
of these mistakes are hon¬
oligarchy, to assume arbi¬ short, should be the general
est mistakes.
There is plenty
trary power, and encroach practice: every departure
of chance for dishonest mis¬
unduly on the liberty of pri¬ from it, unless required
by
takes
and
no
doubt
there vate life."
some
v\Y':
great good, is a certain
*
are
*
enough of them. - But
evil."
years
:
.
*
'■
,
•
•
...
•fi
would
not
the
"A democratic
proposed
This
famous philosopher,
constitution,
supported by democratic, experienced with long years
matter be too
institutions in detail, but con-, in business and
costly?
government,
Can it be possible that the fined to the central
govern¬ including international rela¬
tions, further points out that
method
of
remedying
this
not
the basic
cause
Revolution
of the French
the
was
depressed
business conditions and
pov¬
Meod,Youhg,Weir & Company
LIMITED
erty
resulting from governbureaucracy, restrict
ment
Bonds-Stock
tions
ACTIVE DEALERS
f|f
the
in
crease
times
in all
resultant
as
STREET-TORONTO
Private Wire Connections to New York and
Montreal
years ago, or
with the effect of
government
NEW. YORK'
LONDON, ENG.
and hard
poverty
result.
a
"Decay and Fall of Civiliza¬
tions," written more than 50
UMITED
MONTREAL
de¬
Any one familiar with
Brooks Adams' account of the
CANADIAN SECURITIES
320 BAY
in
production and em¬
ployment with the natural in¬
s
...
and
cline
CANADIAN
WINNIPEG
VANCOUVER
.
and
VICTORIA
Metropolitan Building
War I in
European countries,
being disturbed
by the parallel developments
in the so-called
democracies,
and especially in these United
- -
cannot
'Elgin. 0161
TORONTO
MONTREAL
OTTAWA
i'vV'o
■
HAMILTON
LONDON
v.'--.;-
regimentation
bureaucracy since World
NEW YORK
•
V-.-r:"'
avoid
States.
cular
In
this
the
—-
one
parti¬
capital market,
the touchstone of free enter¬
prise,
Members New York Stock
Exchange
and
the
upon
Mclaughlin, baird & reuss
which
all
doms rest
tailed
one,
records
are
business
for
BOND BROKERAGE SERVICE
Government, Municipal and
Securities
Corporation Bonds
WALL
STREET
NEW
Telephone HAnover 2-1355
YORK
5
F. B. Ashplant & Co.
Two Wall Street
Rector 2-1545
help
as
well
as
needs.
war
business
is
NEW YORK 5, N. Y.
Bell System
Teletype—NY 1-69
no
private
production
Legitimate
restrained
and
of the most capable in¬
dividuals are
being driven out
of business
by these unnecest
many
sary costs.
Industry and pro¬
duction, so vital to the coun¬
try's prosperity, are being
»'
What
for
all
is
this
-
the
REASON
BUREAU¬
CRACY and REGIMENTA¬
TION in the midst of
Teletype—NY 1-1310
I
that
retarding
strangled.
ONE
free¬
the
unnecessary
regimentation and costly de¬
CANADIAN
Specializing in Railroad
—
foundation
other
where
the
nation's
a
war
very
democratic life is at stake
in
a
The
fight for FREEDOM?
laws
which
the
SEC
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
158
enacted" before*'the
were
But do these
administra¬
began.
war
laws grant this
tive
such power
to force upon this useful
and necessary business
these
impossible and de¬
body
any
structive
when
rules
skilled
and
business
are
do
permission
from
1 out
they return and
mote
:
*
*
abroad
home? Can
administrative
CHRONICLE
and
cussed
in
the
above
comments received
the
names
omitted
are
should
be
Editor, Commercial
A
—
than
that
which
is
60
sale
transaction
If
the
suant
to
disclosure
B
C
or
of
is
made
was
of
reasonable
a
ex¬
how¬
GROUP
any
municipal
of
such
were
MICHIGAN
Every
preserve
bid
more
States shall be exempt from
B
or
be
con¬
—
course of a public
offering of such
security by the issuer thereof.
CHAIRMEN
NORTHERN
OHIO
OHIO
dealer from
as
a
time
(3)
the
information
dis¬
(4) the date and time
was
obtained.
:1|4£ ■>
mm: m
WmM
ing the date on which the secur¬
ity is first publicly offered, pro¬
that
vided
ment
is
curity
registration
a
in
effect
under
the
as
to
siiai
state¬
such
Securities
se¬
Act
Reginald
Claude F. Turben
MacArthur
Stanley
pur¬
1
ex¬
COFFIN & BURR
current
preventing
INCORPORATED
Purchasing and Distributing
State, Municipal, Corporation and
any
stating in the written
Public
Service
Company
Securities
BOSTON
U. S. Government
NEW YORK
HARTFORD
Member of Boston Stock
Municipal
PORTLAND
Exchange
Public Utility
Railroad
Industrial
Securities
,
f<\
'
•,
i"
r
,?
»
\ ''\
•
>
'
[
■
*
"*
y
•
.
(
tliifR. L. DAY:i&:CO.§iiis
-
Direct Private Wire New York to Nashville -)v
Members New
EQUITABLE
digby
322
4-3934
'
new orleans
hartford
greensboro
memphis
Government
6-7171
atlanta
birmingham
111
,
knoxville
Municipal ;&•
Public Utility
Devonshire
Street
Public Utility Stocks and Bonds
SECURITIES
a
New England Market
■
Railroad
14 Wall Street
Industrial Issues
:
Securities with
YJ.rr/c.-
•
NEW YORK, N. Y.
specialize in all
TEXTILE
<)
•
chattanooga
Investment Trust Issues
u ,'
Exchanges
BOSTON, MASS.
Insurance and Bank Stocks
e.i
Stock
UNION ST.
tel.
We
i
& Boston
NASHVILLE
40 WALL ST.
tel.
York
High Grade Bonds
Securities Corporation
NEW YORK
Frederick C. Adams & Co.
Specialists in New England Unlisted Securities
24 FEDERAL
STREET, BOSTON 10
ESTABLISHED IN 1922
Telephone HANcock 8715
VALLEY
so
Nothing in this rule shall
understood
or
the provisions of this rule unless
such
transaction
occurs
in
the
Disclosure in Notice
or
one
asked
and
current,
.
of. the
independent bid or asked price,
or both, as the case
may be.
The
corpo¬
instrumentality
disclosure
a
(2), the date and
diligence he
unable to ascertain
an
or
rate
1.. Any transaction in a security
he
Paragraph
hereof, the fact that after the
ercise
in
provided,
during the 30-day period follow¬
by Paragraph 2 hereof; and-'sec?;
ondly
be
transaction
security,
thereof
D—Exemptions. This rule shall
hot apply to the following:
or
such
no
distribution
Exemptions Specified
re¬
such
kept.
and
such information
closest
more
Any
this rule,
wish to
(1) the information
closed and
at
ac¬
bona
days prior to
makes
which
of
prices
shall make the disclosure required
Rule
device
in
to
of
sources
rea¬
price
able
4.
empted
agency or instrumentality of a
State or any political subdivision
a
Asked
General Provisions.
fraudulent
security
transaction
has -had
Finan¬
"manipulative, deceptive
other
the
was
as
nor
be ob¬
can
.
may
be
to
make
shall
disclosed,
1 •'
.
bid
purchase, pro¬
vided, however, that if the dealer
Chronicle, 25 Spruce Street,
New York 8, N. Y.
term
«
*
a
the'exercise of
diligence,
proposed
cial
Disclosure
asked- price
after
the
mote
addressed
Text of Proposed Bid and
trans¬
secondary
an
.
who
record
asked
an
tomer, but which is not
Com¬
&
a
a
in
pursuant to Paragraph 1-A of this
point of time to the proposed
sale, to or purchase from the cus¬
the
will
requested.
bid and
a
dealer
C—Records
dealer
of
purposes
the
disclose,
in
published,
of the authors
where
munications
to
fide
and
Where
both
an
quire
com¬
article
below.
the
rule
upon
which the dealer
on
given in fuli
with
the dealer is able to
which
sonable
the SEC's proposed Bid
Asked Disclosure Rule dis¬
ments
he is not able to state that
action could be effected at the dis¬
writing:
(1-A) The best independent bid closed price or could not be ef¬
and asked prices for the security' fected at a better price; and (3)
at the time of the sale or pur¬ any
other fact, not inconsistent
tained
pol-
invites
be
to
of
transaction
litical
exchange and which is effected
during the course of such distri¬
bution; and
believed
sources
national securities exchange;3.
Any transaction which is
no
interest by a State or any po¬
subdivision thereof or any
or
approved by a national securities
such.
icies, and rules and regulations that will provide a
premium on honest and
legitimate business, instead
of destroying it?
The
connection with such
transaction,
a
that
exempted security which is a di¬
rect obligation of or an
obliga¬
tion
guaranteed as to -principal
gives to the customer the prospec¬
tus required by that Act.
2.
Any transaction effected on
re¬
price; or
Y(l-C). If neither such
not pro-
ever,
in
liable, if such be the fact, but that
certain
destroyed
we
pro¬
dealer
from
sonable diligence, is unable to as¬
their
their jobs regimented
of existence, and the
fighting
and
the
part
a
a
the exercise of
reasonable diligence; or
(1-B) The best independent bid
or asked price at such time, if the
dealer; after the /exercise of rea-^
freedom for which they are
; at
customer, if such be the fact; (2)
that
to the customer has been obtained
effect
to
purchase from
a
or
ascertain
*
find
or
amended,
as
further
cus¬
designed
chase which
not
duties to defend their business? Will
apply to an
security less than
purchased from the
the
<
that sold to
tomer in
have either the time, money
or
of
amount
1933,
vided
unless such dealer, at or
completion of each such
transaction, discloses to such cus¬
person¬
and
disclosed
so
before the
fully engaged
work
war
prices
of
curity,
nel in the over-the-counter :;
in
Paragraph A
tomer, by such dealer, of any se¬
dealer
a
sale to
time
a
required by
hereof (1) that the bid and asked
that the information pertaining to
the bid and asked prices disclosed
of
large part of the
a
active
at
notice
trivance,"-and the term "fraudu¬
lent, deceptive or: manipulative
act or practice" as used in Sec¬
tions 15-C-l and 15-C-2, respec¬
tively,' of the [Securities] Act are
hereby defined to include any act
purport to be administering
1889
Teletype BGston 22
G.
McKie
,
1890
■
;
...
\ .-v.'.//.,;
'
.
THE COMMERCIAL & FINANCIAL
CHRONICLE
Thursday, November 11, 1943
with the
same difficulty we had —a minimum
and modest' amount.
;
beginning—an excess of
By what method, then, :shall
purchasing power over the goods this money be raised?
/
Vinson Calls for Tax Bill
and services available to meet the
effective demand in the hands of
To Prevent Inflation
consumers.
Harbor;
individual
our
savings
have also increased
markedly; and
the cost of living has
undergone
a sharp rise.
The question which confronts
us today is whether we
shall con¬
tinue to try all three
methods, or
whether
phasis
shall increase the
we
same.
ence
of
any one
Certainly, the experi¬
the
to
billions
absorb
of.
the
purchasing
would
cy
require
people at
individual
least
the
to
bond
war
believe that
inherent
in
we
such
up
would
not
to
the
give
<
the
the
say,
v»/T»i
is
a
the
ilnl!
An
and
A £4.
circulation. After
«n
J. 1^
live
life
and
need
mum
*—
road
simply
chasing
sons
of
individual
if
Even
work
power from all those per¬
who
-
incomes
possess
in
combination
with increased personal
of
soaring prices,
them.
Rising
mean
spe-
will
wages
rising
should
soon
of
wages,
incomes,
find
get. The
their
if prices
follow
course,
and
ourselves
we
faced
we
Certainly,
in
soon
which
we
we
we
we
bond
war
safe fis¬
one
travel
can
must have
enue, but how
and how much
is
not
more
rev¬
shall raise
need.
need
in
all
,•
it,
••
we
can
Secretary of the Treas¬
ury, with the President's approval,
has asked the Congress for
$10,-
suffer.
soon
It is plain as day that
up,
their
pay
road
whether
willing
of
above
500,000,000
From the stand¬
more.
point of fiscal needs and from the
standpoint of economic stabiliza¬
tion, this is, in my considered
judgment, a conservative request
In
like
our
the
the
luxuries.
Everyone ad¬
year.
was
ent personal
parents
for tonic in
us
ficial elixir—for
a
else
someone
to
other tools of economic stabiliza¬
Just
as
want
some
to
and
come
disregardnig the mini¬
needs
subsistence
mum
wages
of
marginal income recipients.
rise, and vice versa, so do many
Any proposal which reduces
join enthusiastically in the job of ruthlessly the already imperiled
raising taxes—for the other fel- living
standards
of
the
sub¬
low.W;;//^
standard groups— especially the
As for myself, I am
thoroughly 4,000,000 wage earners still earn¬
of the opinion
that, when every ing less than 40 cents per hour
alternative is canvassed and
every
exhausted, we had best
stick to the tried and true
prin¬
employees whose modest incomes
ciple of taxation based
the face of rising
argument
on
ability
to pay.
the
millions
remained
inconsistent
This
does
we
entire
and
have
not,
burden
upon a small
however,
afford
can
of
to
mean
place the
new
revenues
minority of the
pop¬
mentary
fair
fer
at fixed levels
the
New York
Curb
Washington
Chicago
Exchange
Stock
material
a
their
impairment
productivity, the enact¬
ulation, while ability to pay is
still, in my judgment, the, sound¬
est yardstick by which to measure
compel widespread readjustments
tax
in
proposals.
member
We
that
the
must
also
great
re¬
of
mass
citizenry possesses today a
greater ability to pay taxes than
our
before in
ever
our
Four-fifths of
earning $5,000
in¬
where
a
year
less.
or
If
of
the necessities of life would
on
the
revenue
severe, those who fall
in these income
groups and whose
earning
of
ac¬
forge
will
from
of
a
those
substandard
be
year
Commodity
New
York
who
suffer
New York
Philadelphia
Baltimore
contrary to the
widely prevalent, it
noted
that
more
half of the total tax increases
by
the Treasury,
*
CALL
"A
A-
••
A
V'
vV>'
-
•
-'
'*
1943
V 'A,
NEW
YORK
York, Pa.
1853
'
.
ESTABI.ISRED
'•
^ '
I!)I3
BUREAU
Incorporated
Specialists in quotation services for Security Dealers
NEW
YORK
SAN
FRANCISCO
Street/Baltimore 2, Md.
PHILADELPHIA
Hagerstown, Md.
MEMBERS, NEW
TRIAL
'
CHICAGO
"
i:s
TREE
~
;
Established
WRITE
WEEKS
NATIONAL QUOTATION
•
Stein Bros.SlBoyce
OK
TWO
.
1853
6 S. Calvert
of
Stock and Bond (Quotation Services
Wilkes-Barre
Cumberland, Md.
YORK
and other
LOUISVILLE
Washington, D. C.
STOCK; EXCHANGE
Underwriters and Distributors
leading exchanges.
of
Dealers in
Capital Issues
Municipal, Public Utility,
Railroad and Industrial Bonds
Mackusin, Legg
& Company
and Stocks
ESTABLISHED 1899
"Van alstyne, Noel & Co,
INSURANCE
STOCKS
Members
New York Stock Exchange
New York Curb Exchange
52 Wall Street
MEMBERS
NEW YORK STOCK
EXCHANGE
NEW
BALTIMORE STOCK EXCHANGE
YORK CURS EXCHANGE
(ASSOC.)
New York (5)
-
1500
1
BOwling Green 9-3010
this
and
Exchange
Street, N. W., Washington 5, D. C —National 4322
from,
In
National Monthly
Exchange, Inc.
Cotton
those
and
conditions.
connection,
impression
Publishers
Trade
a
draw
less
cutting the living stand¬
ommended
be
the effect of
amounts
$5,000
should
can
inflationary, would
policy which
substantial
sales
paid to these em¬
increases,
them¬
the revenue program.
We
must, therefore,
ards
most
Such
far to neutralize
without
are
wages
selves in part
go
to siphon off
purchasing
from the levels of income
pressures
indiscriminate
an
ployees.
inflationary
are
power
the
national
is in the hands of individuals
come
we
history.
our
ment
tax
Chicago Mercantile Exchange
Exchange
New York Produce
Exchange
729 Fifteenth
Board
ele¬
most
Members
Exchange
in
prices—is wholly
with
Auchincloss, Parker & Redpath
Stock
collar
standards of justice and
we were to suf¬
from
of
white
of
play. Unless
increased burden. This
York
the
allowed to
are
incomes are above the level of
decent war-time subsistence must
bear a substantial portion of the
New
:/
proposals, or others simi¬
them, are, I believe, de¬
cidedly preferable to a general
sales tax, levied upon the neces¬
sities of life, irrespective of in¬
lar
respect taxation is
different from all the
frozen while prices
/
Such
highly bene¬
this
not. very
that
taxes,
purchases, afford the
millions
were
fixed rates
at
face
these
women
pur¬
sistance,
on
and
the
taxation
the level of decent war-time sub-
earners
and
we
therefore,
additional
amount
Highei*
themselves
dis¬
.
highway to
That
remains,
alternative
prices of
wage
broad
designed to siphon off the maxi¬
workers, particularly
for
men
V
.
some
bitterness
the
disaster.
There
soar.
sub-standard
is
must not travel.
things which they must buy
allowed to
It
cal
go
encour¬
—
cord.
for fixed
work
inordinate
these perilous times.
The
critical
question
the
tones up the
all, these
at
while the
pay
productivity would
stimulant
body economic. It
of
we
the
somewhat
mitted that it
tion.
national
prem¬
have. Men
we
remain
not
to
ages production
{
do
of
Why not let prices rise? In¬
creasingly there are voices clam¬
oring for this solution. Moderate
inflation, they
than
more
a
in
is
used to give
spring of the
take.
slowdowns,
freeze wages and
we
production, is at
time of war, since
families.
hope.
to
ium in
of
time
to
assumes,
-
allow prices
employees
relatively fixed in¬
comes, rising prices mean an in¬
ability to buy the bare necessities
of pur¬
present
we can
results
and the white-collared
optimistic
substance
argument
inflationary spiral.
who
I do not
hope. Certainly the record
chases
tors of
the
take the risks
can
any
which
an assumption, once
stated, almost refutes itself.
is
For
their
purchases
year.
an
know,
Taxation
sulphur and molasses
dilution of the people's
savings,
instability in the financial struc¬
ture, in social conflicts of every
pernicious variety
strikes ,• and
services
supplies
rising
we
of the public debt, the
destruction of all fixed values, the
Manpower, like all the other fac¬
American
double
during the coming
it
are
poli¬
a
and
It
salaries. Such
rates
necessary
excess
power. The success of such
limited
to rise while
of
see-saw
growth
available.
are
Such
past two years does
not indicate that we can
rely upon
further
increases, in
voluntary
caving
the
goods
however, that
policy or
any given combination of
policies
might work, though the conse¬
quences would by no means be
the
with
em¬
upon any one of them.
Theoretically,
higher prices are
themselves
deflationary,
since
they
absorb
excess
purchasing
power
and thereby balance the
for
the
as
cious critics cry,
demand
This
prices and wages is what
(Continued from page 1887)
complished by lowering the pres¬
and dependency ex¬
emptions, by raising the normal
and surtax rates, and by placing
sharply increased excises upon
the
at
Walnut Street
Philadelphia (2)
Pennypacker0420
than
rec¬
in-
■
Volume 158
Number'4228
eluding both
levies, would
income
and
THE COMMERCIAL 8c FINANCIAL CHRONICLE
American people cannot pay more
taxes. 1 do not "believe that the
excise
from those in
come
brackets below $5,000.
Some of our business and politi¬
cal leaders have argued that the
American
This
contention
strably false. The
which confronts
purchasing
services
The
is
for
to
demon¬
excess
of
goods and
consumers.
question is not whether
whether
we
higher
but
taxes
afford to try and
can
have
4
for
ture.
and
for
more
for
"
-
•
when called before: the
taxes. I have passed onto
shoulders the financial bur¬
your
dens of this
fought and
war
won.
no
easy
Our/-capacity
must
road,
other
places
30%
rose
for
be- equal
be
and
on
lux¬
some
among
moment in
relax
our
the eaith. /
the
history,
'
■
pressure
lid.
exert¬
are
and influence to
But
I
assert
to
period. On flowers, the peo¬
it is estimated, 30%
more in August 1943 than in Aug¬
ust
1942.
Similar incct-ases are
you
ple
the vision and the courage to ac¬
estimated
will pay for our folly with a bitter
and hideous coin.
wines
vented from
the
we
as
people have
cept without complaint the
straints necessary for stability,
and
liquor, for cosmetics and toilet
preparations, and substantial in¬
creases
for cigars, cigarettes and
We speak of sacrifices.
at home have
us
word
.
As
compared with the average
for the typical pre-war years, ex¬
penditures in clothing stores had
the
no
102%] at eating and
drinking places 143% and in jew¬
Most of
basis to
use
the
has laid his-life upon
of freedom. I do
not
altar
say
to
too
elry stores 218%.
we
one
pretend to preach
increased
re¬
seriously unless/perchance,
loved
a
many
you
or
scold, but I
with earnestness that
still
v.
short
/s': ■ A;.■
I J'.
if
Robert H. Parsons
we cannot
Lyle F. Wilson
Hubert W. Lofft
seek
to
improve
abstrac¬
an
who
at
are
lives
And
,
MUNICIPALS
intangi¬
an
a
mon¬
just must be
New York
at
home
of
Mississippi
the
General Market
whole for
us.
fighting men
This moment offering
these
of
CORPORATES
boys, the best
our
youth,
do
and
not
Railroad Bonds
Short Term High Grade Bonds
Foreign Bonds Utility Preferred & Common Stocks
lightly regard
that which we at
home too often ignore.
They are
thinking
Louisiana
Arkansas
Jersey
our
for
have
Alabama
New
pre¬
perhaps
than
more
we
Reorganization
of the America to which
they long
soon
to return.
Recently I was
given a letter received by a friend
from
an
Africa.
enlisted
These
lads
in
man
have
West
time
think:soberly and, perhaps,
clearly and fundamentally
ever
before.
rected
Their minds
toward
American
simple,
values.
Members New York Stock
than
New York Curb
di¬
if
a
Exchange
Exchange
Exchange (Assoc.)
Co.
Exchange
New Orleans Cotton Exchange
New York Cotton
Commodity Exchange. Inc.
Chicago Board of Trade
New York Produce
eternal,
And
think inflation is to them
Ira Haupt &
to
more
are
Securities
you
111 BROADWAY
mean¬
ingless abstraction, I beg you to
(Continued on page 1897)
NEW YORK 6, N. Y.
TELETYPE: NY 1-1920
TELEPHONE: RECTOR 2-3100
their economic position as individ¬
Who, in the face of these start¬
ling figures, will contend that the
uals and
as
groups at the expense
Primary Markets in Bank & Insurance
Stocks
Connecticut Industrials
:
Arnhold
AND
S. Bleichroeder:
;
Hartford Insurance Companies
American Hardware
Automobile
Aetna Fire
Aetna Life
Phoenix Fire
Conn. Gen'l
Travelers Ins.
Bankers
National Fire
Landers Frary & Clark
New Britain Machine
Investment
Hartford Fire
Bristol Brass
Bought
—
Sold
—
EUROPEAN AFFILIATIONS:
Anglo-Continental
Quoted
Adler
&
Co.,
A.-G.,
Exchange
Bankers,
Limited,
Zurich
London
(Switzerland)
30 BROAD ST.
NEW YORK 4
Members Principal United States
and Canadian
1 Wall
BURLINGTON
Private
Exchanges
Street, New York 5, N. Y.
telephone
Conning
to:
Telephone Dlgby 4-2525
DETROIT
RUTLAND
&
MONTREAL
Company
Offer
and
Ballard,
BRIDGEPORT
Hartford,
Conn.
We
a
COMPREHENSIVE INVESTMENT
;
OF
CLASSES
During the first 7 months of 1943
SERVICE
ill
ALL
Securities in Block Form
AND
DEALER
form,
;%V
BONDS
AND
STOCKS
we purchased, in block
than 1,500,000 shares of stock, both listed
for
our own
The services of
UTILITY-RAILROAD—INDUSTRIAL
FOREIGN—MUNICIPAL
We Are
more
and unlisted,
including
PUBLIC
firm bids
or
on
to
our
investment
staff
at
are
all blocks of stocks
or
for distribution.
disposal to make
bonds for investment
your
or
for distribution.
Brokers
Particularly Adapted
Service Firms
or
authorized agents
will be protected.
With Retail Distribution
%
%
'■ .%
/
.}
Your
-
Inquiries Solicited
qAllen
P. F. FOX & CO.
BROADWAY, NEW YORK 5, N. Y.
Telephone
REctor 2-7760
Teletypes
NY 1-944 & NY 1-945
&
Co.
Established 1922
30 Broad
120
■*
llllii
mUr
destroying the Amer¬
we
return
bravest
and
same
beer,
-
military
;will-o'the-wisp. It is
their
that unless
T"
,
,
_
touch of inflation
spent,
A
,
vigilance'until the evil
our
dream up ways to make our lives
complex. There are others, known
to
me,
who would welcome a
the
-*■*"
,*rr
irritations
responsibility to keep
off
:'■%:« mTT
lomatic
strous evil, that
us
theory concocted
by the impractical visionaries who
take
,,A
-
be encouraging and our dip¬
achievements
a
proud
news
ica which
ing their
; '
and restraints made
necessary by
abstraction;—a
of
.*»
(V'-V-vV 'h'f
self-discipline
to The
who regard inflation as a kind of
the
over
no
...1
to
ble
may
CANADA
5»
solve the prob¬
confront us at home.
lems'. that
No,/inflation is not
tion.;. Itushbt a theory,
There
CHAIRMEN
PACIFIC N'WEST
have hordes': of tyranny and brutality
I took the bread, arev eradicated from the face of
uries and entertainment/' ^
places were 27% higher than in
August of the previous year. Ex¬
penditures in theaters, cabarets,
tobacco.
There is
cut'Cby which
children while you fought fob me/
while the American people were
cor¬
August, 1943—in the middle of this
second year of allegedly total war,
receipts of eating and drinking
for
my
'
CALIFORNIA
which you
from the mouths of your .wife
.
and
through
parade
files
office—and I welcome
ofj udgm ent; by tlie return! rig; war./. And,"; though
more
spending an increased amount
eat, drink and make merry. In
concerts
;
-
Likewise,, the American people
amusement
CROUP
and peace.
war
incessant
:
heroes, "I thought the American
people could not afford to pay
are
to
'An
spending. their substance
negligees, 24%
gloves..\
stability, in
their
the fiduciaries of their
are
must say,
bar
sets and brassieres; and 41% more
.
and luxury
ease
while
I pity the political truckler
the
sunshine., patriot
who
and
slips
underwear,
great
freedom, the trustees of thbir; fu¬
furs, fine clothes and other lux¬
uries. In department stores, for
instance, women spent 104% more
for furs in July, 1943, than they
spent in July,
1942. Likewise,
they spent, in the same month,
65% more for coats and suits, 37%
more
for dresses, 30% more for
blouses, skirts and
sportswear,
more
this
betrayed them.
.We
get by without them.
■
'
.
Americans are this year spend¬
ing astronomical sums for jewelry,
{
31%
themselves
of
boys them'and appreciate their con¬
are dying on the
battle fields of cern—eac h seeking in his turn to
this titanic global war. ^
claim exemption for the rules that
: V]
Some day our boys will return. have been laid down to
keep our
Many will come back wounded, economy whole.
War can afford no occasion for
crippled and maimed. I pray God
they may not come back to find privilege or immunity. Nor can
that, through love of ease and all the old inequities in our eco¬
pleasure, through political cow¬ nomic structure be remedied in
ardice and personal ambition; we the midst of total war.
perplexity
an
power over
afford
can
is
very
us
available
real
we
citizenship
democracy desire
people do not possess
capacity to pay more
additional
taxes.
sober
1891
of total mobilization for economic
Street, New York
HAnover 2-2600
THE COMMERCIAL & FINANCIAL CHRONICLE
1892
vast
Thursday, November 11, 1943
military personnel will re¬
quire that new homes as well as
By II. R. AMOTT
should be offset by the growth of
new
towns,
and '< cities.
Thus,
jobs
leal Estate in Post-War Period
proper
be
made
available
turning
welfare
Harry R. Amott Sees Building Boom After War Termi¬
nates and Expresses Belief That Even Though Build¬
ing Costs Are Now 27% Higher Than 1935-39
Average They Will, If Anything, Rise But
May Be Offset By Improved Pro¬
soldiers
of
our
if
for
the
people
re¬
general
and
our
national economy are to be main¬
tained on a wholesome plane.
While
the
new
post-war
curately
building
needs
in
cannot
be
ac¬
because
of
the
era
charted
impossibility of estimating in any
true sense the replacement fac¬
second
ceive of
labor
costs
need for
a
minimum of
of
factor
deals
..
now
objec¬
appear
■/ '».
.
the
to
come
interest
mortgage
the
with
For
rates.
of interest
decline
■
question
past decade we have seen
constant
building material prices and re¬
placement costs. It is important
because only if such prices are
right can a wide-scale building
program prosper.
I do not per¬
will be
a
We
-
The
tor, some observers believe there
duction Methods
however, does not
tionable.
selection of property to be
improved will, as in the past, be
a prime consideration.
a
rates
from foreclosures, lack
new building, refinancing
and
increase in savings deposits.;
resulting
of
an
Furthermore,
government
cur¬
tailment of spending during the.
decline in
the costs of war period is increasing our cash,
Today, these deposits.» Thus, I foresee ample
available
for
investment,
approximately
27% funds
a
materials.
or
are
The. investment
dealer, banker, broker, builder and business man 1,000,000 homes a year for at least higher than the 1935-1939 aver¬
the post-war period should start ten years.
Other estimates run age. If anything, such costs may
now, if he has not already done so, to give thoughtful consideration
higher. In any event,, nearly all continue to rise. As an offset,
to
the
problems of reconstruction which confront the building forecasters appear to visualize the however,
we
have
improved
industry.
V
V
> largest building boom in our his¬ methods of production which, I
So long as the war exists the industry must remain in a relatively
tory.
% AP
feel, may insure the construction
static condiIf private capital is to play an of new and better
buildings for
tion. At pres¬
be no wholesale release of capital
important role in the financing of less money.
ent
the
con¬
new housing, etc.
for new home building.
The third factor, taxes, has an¬
it is important
to consider whether real estate in other
struction of
It is this static condition of the
very
direct bearing upon
private dwell¬
building industry that leaves no the post-war era will sell for more our problem. In New York, for
less
than
room
for doubt, in my opinion, or
its
ings is limited
present level. example, we have seen very little
to war hous¬
Some of the factors which deter¬ reduction
as to the huge needs for new con¬
of
real
estate
taxes
struction after the war. Actually, mine realty values are. (1)
ing. Further¬
the although realty values up to a
there
was
a
building
shortage relationship between supply and year ago had depreciated sub¬
more^
the
demand for each particular type stantially.
before the war; the result of the
program
of
Taxes, therefore, play
war
plant
depression of the decade from of property in its particular com¬ an important part. Unfortunately,
construction
1930-1940.
Thus, we find our¬ munity,
(2)
building
material the costs of government are more
selves today with several million prices, or replacement costs, (3)
Has largely
likely to increase rather than de¬
been c o m
dwellings unfit for proper living. taxes, (4) mortgage interest rates. crease.
Consequently, I foresee no
As to the first factor I believe
Those dwellings must be replaced.
pleted. Conse¬
reduction in tax rates. In com¬
there will be a good balance be¬
Add to this the shifting of com¬
quently, build¬
mercial
and
industrial
centers; tween supply and demand but as munities where oYer-development
ing
contract
when hostilities
at
With huge
cease.
cash
who is interested in real estate in
resources
hand
seeking
employment, interest rates can
perhaps be counted upon more
surely than any other factor as the
one thing least likely to increase.
Capital should, as a consequence,
be available at
reasonable rate.
a
This latter factor brings us di¬
rectly to the part investors- will
play in; the financing schedule.
Insofar as private homes and resi¬
dential
apartment buildings are
k
concerned, it appears that govern¬
ment aid
FHA
through
insurance
continuation of
a
will
provide the
backbone for stimulation of lend¬
ing by savings institutions, insur¬
-
awards
year
sharp
a
c
1 in e.
curve
of
a
have wit¬
nessed
and
still
are
witnessing
a
re-location of our population.
We must expect that a part of this
re-location of our people will be
permanent.
And,
last
but
not
least, the demobilization of our
to decentralization of
Coupled with this
deH.
The
R.
Amott
may
flatten
out
in
1944
see
end
to
the
an
result
brought about by the war effort.
this
will show
but
war
until
there
we
can
we
commerce
population shifts due
industry and
and improved means of
transportation, further expansion
of
some
pre-war
of
the
more
communities
economically
unsound;
populated
may
but
took
tors. Since most
Federal
place prior to the depression
construction
devaluating
because
effect
structures.
of
interest
its
rates
would be in
upon
existing
to
over-all
The
savings banks and
savings and loan associa¬
tions need pay but relatively low
this factor .may be a deterrent to
new
companies and private inves¬
ance
picture,
erate rates
to
depositors
position
a
they
lenders
as
provide needed capital at mod¬
particularly if the ele-
be
this
We have substantial retail outlets for the following
types of securities
PUBLIC UTILITY
RAILROAD
iC; '
}
;(.,u
•
INDUSTRIAL
',
'
V "r
'
.
OUR
TRADING
Real
Estate
Bonds
Title Company
ipation
Dealers
invited
are
timely statistical
,
>
y
*
,
"
•
.V1' *'*
-\
*
u,,\
'
and
Stocks,
and Bank ParticCertificates
to
request
copies of
our
Real Estate Issues
reports on
'X'-yKCayypy--'--
f
'1
'
ESTATE
MTGE. CTFS.
•
DEPARTMENT
Specializes in
-
•
REAL
•
BANK & INSURANCE
'
yyy'
••
Amott, Barer & Go.
Incorporated
150
New-York 7
Telephone: BArclay 7-2360
30
:
v-
Broadway
State
Street,
Bell System Teletype ISY 1-588
Boston 9,
Mass.
Telephone
Capital
1790
INCORPORATED
A
Underwriters and Distributors
Railroad, Public Utility and Municipal
IN
Turning Point.
WORLD
HISTORY
Security Issues
We
Maintaining Active Trading Positions in
Americans
leader
a
in
a
undeveloped
Guaranteed & Leased Line Stocks
to
Public Utility Stocks
Underlying Railroad Bonds
Public Utility
Bonds
Pennsylvania and General Market Municipal Bonds
123
S.
BROAD
Pennypacker
NEW YORK
STREET
REctor
System Teletypes- -PH
296
N. Y.-,PhiIa. Private Wires- -REctor
'Semi-Annual Valuation of Railroad &
and "The Bond of
the
&
PH
post-war
will find
years
The task
torn areas,
war
us
of building the
sending
teach
men
to
Will
yesterday's
time
to
higher
securities,
your
opportunities.
It is
look
to
is
the
task
before
favorites be tomorrow's leaders?
reappraise
error,
standards,
a
to
time, after
the
a
many
future
It
time to look for
with
long
years
faith,
us.
is
a
new
of trial
daring
and
optimism.
BROADWAY
120
7330
Bell
5, N. Y.
the
rebuilding the
areas,
and
PHILADELPHIA 9, PA.
that
busy world.
planes and engineers and technicians around the globe
our
Equipment Trust Obligations
know
very
2-6528
297
NEWBURGER 6- HANO
MEMBERS
OF
NEW
NEW
2-6528 &
YORK
YORK
AM)
CURB
PHILADELPHIA
EXCHANGE
2-6529
1419
Industrial Equipment Certificates'
on
railroad bonds.
WALNUT
39
Week"—a series of articles
BALTIMORE
STREET,
STOCK
PHILADELPHIA
BROADWAY, NEW YORK 6
ATLANTIC CITY
EXCHANGES
(Associate)
SCRANTON
LEBANON
2
\
IIARRISBURG
«'
Volume 158
Number 4228
of risk
ment
THE COMMERCIAL & FINANCIAL
CHRONICLE
be
can
largely dis¬
through FHA protection.
counted
Slum
clearance
primarily
problem
a
to
appears
which
be
can
best be handled
directly by gov¬
ernmental financing. The FPHA
has completed some of this work
to
date with
during
this
struction
cilities
in
be
cial
particular emphasis
period on con¬
suitable
defense
extended
centers
living
REPORTER'S
REPORT
Next
We
areas.
to
where
conditions
all
can
commer¬
over-crowded
exist
after
And to make
the
teresting,
organization's prin¬
responsibility should 'deal
cipal
promises
revival
three
it
rather
a
through
ble tenements and the erection of
competitive
suitable low-cost housing projects
for the so-called
under-privileged
utilities
the
under
will
the
naturally by
of
of
Rule U-50 embodied in the
Public Utility Holding Company
ficult to induce
private capital to
Act, and the railroad financing
undertake
assume
So
'
the
a
far
and
estate
the
field
and
the
of
real
financing
new
uation
office
as
no
pend
to
decade. Most
A
sure
must,
increase
in
rates without
on
reasonably
costs
of
of
a
as
securities
investments
the
used
a
business
definite
very
upward
beginning of this
continued
by
road
new
month
to
turn
date.
estate may not be
tant and when that
cur¬
indications
Sought
to
baiK
on
new
TEXAS
and
and
ening.
CHAIRMEN
ROCKY MT.
MINNESOTA
are
the
series B
j.
Blackstone Valley Gas & Electric
bring
out
several
fit
competing
bids is that of the Blackstone Val¬
ley Gas & Electric Co.
on
which
bids will be opened in Boston next
Bankers
will
this case, for
000
of
first
lateral 3%
The
the
a
be
mortgage
in
and
3
col¬
■
bonds, due in 1973.
company
net
bidding,
total of $11,300,-
proposes,
proceeds from
with
the
John
Rauscher
i
I
Aaron W. Pleasants
Charles H. Loomis
sale
of the foregoing issue, and such
treasury cash
an
as may
to redeem
sary,
equivalent
on
be
neces¬
Dec. 1, next,
of
amount
out¬
standing obligations.
UNLISTED
Southern Colorado Power Co.
Smallest of the three issues
now
definitely in sight for next week
is that
of
Power
Railroad, Public Utility and Industrial
Co.
the
Southern
Colorado
SECURITIES
believe
are
interested
in
block
securities either for
■/'.
our
through
,
offerings
own
our
of
account
listed
and
unlisted
for distribution
or
organization.
Chas. M. Henderson
month
in
AND COMPANY
ESTABLISHED
may
Boenning & Co.
Washington Stock Exchange
MEMBERS
again
public
underwritings and in the refin¬
ancing of existing mortgages.
1914
Members
real
remotely dis¬
point has been
we
We
v
PHILADELPHIA
STOCK
1606
Union Trust Building
EXCHANGE
MEMBERS NEW YORK CURB EXCHANGE (ASSOCIATE)
.
Walnut Street
PHILADELPHIA 3,
PENnypacker 8200
WASHINGTON 5, D. C.
Race
Bell
System
3266
PH
PA.
Teletype
30
New York Telephone
COrtlandt 7-1202
Specializing in
Philadelphia Transportation Co.
All Issues
BUTCHER & SHERRERD
Philadelphia Real Estate Issues
f\
ESTABLISHED 1904
Samuel k. Phillips
PHILADELPHIA
&
Co.
Members
Members Philadelphia Stock
Exchange
Packard Bldg.
ftfew York Stock Exchange
Philadelphia 2, Pa.
New York Telephone-REctor 2-0040
—.
Philadelphia Stock Exchange
New York Curb
Bell Teletype-PH 375
Exchange (Assoc.)
1©
„4-r
Pennsylvania Municipals
We endeaver
at
all times to maintain
Pennsylvania & Reading R,R* Leased Lines—Guaranteed Issues
active and close markets in various
City of Philadelphia Bonds
VIRGINIA
and
WEST VIRGINIA
NORTH and SOUTH CAROLINA
Commonwealth of Pennsylvania
municipal bonds
Turnpike Revenue 3%% Bonds
F.
W.
CRAIGIE & CO.
DEALERS
YarnAll & To.
152ft Walnut Street
offer¬
have been showing signs of weak¬
bonds, due
July carrying coupons of 4!/2
5 %, respectively.
The
of the public's confidence
un¬
earnings of
continued
mort¬
anticipate a
revival
of
buying interest in new mortgage
But
ac¬
CROUP
Co.,
at
and has
ahead
move
to
year
building in the light of the
buildings.
Eagerly
pro¬
under
second
The bonds to be retired
series A
next
present
trend suggests that full restoration
corresponding rise
labor, materials and
average level of
past.
Even some of the
insurance
companies who have
to¬
took
attained
office
a
many-
months
houses
Except in isolated instances, the
estate.
thinkable to pay the price of new
rent
Equipments
of
involving the sale of
$5,500,000 of new bonds.
And, from a
T;
Bids for the new first mort¬
view, I would
real
real estate securities market
however, await
existing rental
it would be
been
for
ings yielding less than 3% return
point of
say, that investor interest in the
a
taxes. At present,
in
the
construction
properties
of
dealer's
such risks.
New
in
feel
est
it will continue its desire to
assume
an
fair return
a
thought:
handling all
including
rails, public utilities, industrials
and municipals, I have been in a
particularly
good
position
to
judge the relative investor inter¬
capital
has
generally been willing to assume
I
final
types
Private
investment.
war
dealer who has been
continue to foster
normal risks for
upswing will de¬
the length or duration
and upon the possibil¬
foolhardy to make predictions
at this stage but the time should
not be long at hand when the gen¬
eral
picture may become more
clearly defined.
plans as
building but, if con¬
ditions are right, government fi¬
nancing in any form should not be
its
that
be
new
necessary.
of
ities of further inflation. It would
new
recapitalization
as
has
gations.
upward swing in the
an
upon
of the
capital, when needed, provided by
lending institutions or the RFC.
aid
market
paradise
Tuesday.
refinancing has taken the form of
reorganization
plans
with
new
well
issue
of rental rates. The contin¬
curve
hotels, factories, etc.
refinancing of existing
may
an
"seller's"
Tuesday
on
Midwestern
expected to
issue
new
be
Another issue which is expected
Monday for
on
point to
financing of office buildings and
RFC
Co.
way
sale
the
to
participate
tively in the bidding here.
bidding.
the
operates
due
bonds, for the redemption of
$20,000,000 of outstanding obli¬
to
best
structures. There has been
The
the
prevail
fits
a
on
York office of the Southern Rail¬
banker
the like for almost
choice
investment
business structures such
buildings,
of
which
issuer.
Bids will be opened at the New
I believe that
war
of
matter
a
indicated
If underwriting
mortgages is to
investment
into
not
the
of
again after the
the
as
risks
part of the
have
we
position
banker.
the
program.
the
from
be
a
are
pre¬
gether with $5,000,000 to be
vided by Southern
Railway
two
reason
reported
are
matur¬
carry
years,
in Chicago
morning.
indications,
will
bonds, to
of 25
opened
enter
refunders
new
gage
ity
gage
carried
auspices
bidding,
to
Proceeds
lease, ;against
classes. I believe it would be dif¬
of such
pared
groups
all
that
be
the
current
in¬
more
develops
projects
wth the demolition of uninhabita¬
From
Railway.
competition will be fairly keen
for this piece of business with
of
it the
Airline
several
activity in
the underwriting field what with
one
sizable railroad undertaking
and two public utility underwritings up for consideration.
But this
war.
week
full-blown
housing fa¬
expect that the facilities of FPHA
will
Charlotte
war
of
of
$15,000,000 of 20-year first
mortgage bonds of the Atlanta &
OUR
1893
Philadelphia 2, Pa.
STATE
S16
Telephone 3-9137
and
East Main Street
IN
MUNICIPAL
-
BONDS
RICHMOND
15, VIRGINIA
Bell Teletype RH 83 & 84
,
1894
THE COMMERCIAL & FINANCIAL CHRONICLE
looking Into The Post-War World
(Continued from
may be able to achieve our
goal of increased national output,
1886)
page
we
improved balance sheet positions.
and that these
ties have been able to
be
portant reductions in outstanding
debts during the war and, there¬
little.
fore, will be in
haps
apparent surpluses
are likely to be
absorbed within
a relatively brief period of time.
I
have
volume
no
of
capital require¬
be but I am sure it will
new
ments may
be
idea what the actual
enormous,
the
achieve
particularly if
objective
desired
we
of
Most of the States and municipali¬
effect im¬
to borrow when peace returns.
It
clear
seems
terest
rates
30'to 40%.
levels
for
circum¬
stances, I believe the reports
you
have been discussing today under¬
estimate, rather than overestimate,
the possibilities in this connection.
The
to
that
me
the
supply of capital will be suffi¬
ciently large to hold long-term in¬
increasing the national output by
Under such
better position
a
down
several
to
low
very
least
at
years
after
the
ties.
I believe, however, that we
should
termination
anticipate
in interest rates
a
a
hostili¬
of
basic change
few years hence.
supply factor in the capital
equation appears at least equally
Except for
favorable.
term interest rates have
dicate
Present estimates
that
vidual
States
the
savings
volume
in
of
the
in¬
indi¬
United
$100,000,000,000 by the end of 1944.
This
huge reservoir of savings, induced
by the great discrepancy between
may
wartime
goods
aggregate
incomes and the lack of
available
for
purchase,
should provide a magnificent mar¬
ket for securities for many years
after
the
war^
In
addition,
cor¬
porate
savings in many areas,
notably the railroads and utilities,
have been substantial and will
able
en¬
of these companies to
emerge from the war with greatly
many
one
notable interrup¬
tion between 1925 and
a
secular
downward
1929, longdisplayed
trend
ever
since the sprirtg of 1920.
If, as I
anticipate, the liquidation of the
present war will be followed by
one of the great periods of indus¬
trial expansion in modern history,
we
can
look forward to a long,
gradual rise in interest rates com¬
parable to that which took place
1903
you will say that
supply statistics may
things to contemplate,
but,
lovely
' by
themselves,;
is likely to be so gradual
mean
any
Promote
very
banking,
Peace-Reemploymeni
per¬
(Continued from page 1872)
other busi¬
nomic
mental policies in which to oper¬
ate.
ment" and
a
We,
in
the
CED
are
con¬
vinced that
prise be given
out
its
own
Should
a
free rein to work
taxes
go
much
be
■
It
is
for
this
reason
have
we
under way a broad research
pro¬
gram devoted to an examination
of all
important national policies,
primarily those of Government,
but also those of
ness,
which have
attainment
and
labor and busi¬
bearing
a
high levels of production and
ployment.
tends
us
.
to
every
obstruct
take
a
look
of
em¬
Our objective is to
critically
panding and dynamic
Let
the
on
maintenance
ex¬
policy
an
ex¬
economy.
now
at some
effort and risk.
The business
advantage of this
opportunity, using our mass pro¬
duction
and> thenation's*,,
gold
reserve, we might be able to pay
off
A
a
our
10%
long
national debt in 25 years.
Federal sales tax will go
way
it is under way.
time
,
'
after
.■
■
Your reports indicate
the
subjects uppermost in
minds are the settlement of
you.
that
your
terminated
contracts, disposal
of Government plants and equip¬
ment,
and
war
taxation
policies.
I
should like to comment
briefly on
each of these and add to this
list
for brief discussion a few
words
on
the labor
problem, and
on
the
great threat of post-war inflation.
The only problem on which
we
have formulated and announced a
definite committee
policy is that
INVESTMENT
of the settlement of
On all the other
war
contracts.
problems which I
Southern
SECURITIES
have
menioned
only give
you
I
therefore
ideas of my
can
some
because the CED has not
yet
crystallized its own official posi¬
tion.
With
regard
of terminated
to
the
settlement
V
my
impressions
%
by asking Dr.
mm
Anderson
what
it
wants
is
in
imk
he
the
postwar world
that
not
did
we
have dur¬
ing
the
false
prosperity
riod
of
We
all
administrations
Coolidge
know
conclusion
that the
of
of
Anderson's
and
the
that
of-
Hoover.
disastrous
period.
whole
Dr.
philosophy
is-
primary
purpose of eco¬
production is profits, and
nomic
that if
that
A.F.Whitney
pe¬
the
Harding,
we
understand and follow
philosophy,
created
jobs
will
be
as
an
incident thereto.
Human considerations seem to be
of
incidental, if
not of small
portance to Dr. Anderson.
(Continued
own
Textile Securities
v-;',,/'
sum¬
marize
to preserve free enter¬
prise. It would stop a lot of waste¬
ful spending by the
Government.
m
f
terest, -and
might
take
we
CT:
Re-
with great in¬
since the founding of this
Repub¬
If
Rail¬
employment?" "
of the United States will have
the greatest opportunity after this
war to
participate in world trade
lic.
Do
Promote
Post-war
men
of the problems which are worry¬
ing
his
of
Gov¬
tio
-
that it will be difficult to observe
considerable
Can the
ernment
and employ¬ higher than they are, it would
A man
attained■<;unless smother free enterprise.
governmental policies are favor¬ who risks his capital in a business
venture should be allowed to
able to the fostering of individual
keep
initiative;.
;?
'
' '•
: enough of his earnings to justify
cannot
Brotherhood
the article, en¬
titled
"What
problems.
income
A. F. WHITNEY
road Trainmen, Cleveland, Ohio
I have read
goals of production
ment
for
some
i
President,
insist that free enter¬
or
no matter how
boldly
intelligently businessmen may
plan for the future, the desired
1943
Business and Finance Leaders
Laud B. E Anderson Plan To
problems
of - 130,000,000
people; that (it) is a piecemeal
job for each industrial establish¬
which
event,
as
in the world, must also have
favorable
climate
of
govern¬
change will probably not
start for several years, and, in any
secular
much
ness
amine
and
Investment
as
This
between
1920.
Now, I know
demand and
Thursday, November 11,
on
page
In
im¬
his
1900)
subject.
You will find in this re¬
port a series of recommendations
for Congressional action
all
de¬
contracts, I think it,
signed to expedite the release of
save
would be better to
Battles
&
Company
INC.
1528 Walnut St.
90 Broad St.
PHILADELPHIA 2, PA.
NEW YORK 4, N. Y.
A. M. LAW & COMPANY
(Established
1892)
your time !
here and ask those of you who are business funds now tied up in
interested to read the brief
report production. We are convinced
which we have available on this
less drastic action is taken
Established
1872
hopper, solid ay 8c co.
Members Philadelphia Stock
Exchange
I rives t men t Securi ties
1420
WALNUT
STREET,
PHILADELPHIA
2,
PA.
STATE & MUNICIPAL
BONDS
ALFRED
W.
TRYDER—Manager
H. T. Greenwood
Members
123
PHILADELPHIA, PENNSYLVANIA
un¬
by the
SPARTANBURG, S. C.
The United Gas Improvement Company
war
SO.
BROAD
Telephone
Philadelphia
STREET,
Rittenhouse
Stock
8c
Exchange
..
PHILADELPHIA
9555
Bell
Teletype
Co.
PII
.
2, PA.
188
THOMAS & COMPANY
Union
Trust
PITTSBURGH
Building
19,
PA.
Distributors of
MUNICIPAL and CORPORATION
BONDS
Volume
158
Congress
in
Number 4228
THE COMMERCIAL & FINANCIAL
this
connection that
the reconversion of
industry after
the war may be
disastrously de¬
possible date, and not permit
layed.
methods.
.
.
With regard
the
to
I agree with
you that the Govern¬
ment should
speedily announce its
intention of turning over to
pri¬
industry all of those plants
which it does not feel
required to
retain from
purely
military con¬
bblieve, however,
siderations.
I
that there is very little
in
concern
this
long
cause
connection.
many discussions of this
controversies
In
subject in
of
inventories at the end
in mind.
ford
yet
above,
official
problem.
assure you
icy will be based
that
I
can,
pol¬
our
tion
to
Businessmen cannot af¬
insist
to
prices
however,
of
I
as
no
ef¬
the last war, and very few of us,
the
this
disastrous
business of the dumping
on
war
I
on
sur¬
liquidation
on
of
and other factors of produc¬
and
the
at
accept
of
time refuse
same
liquidation in the
any
their
particular
products.
Again
the
objective
must be to reach, high levels of
production as rapidly as* possible
the assump¬
and this
will
only proper objec¬
tive will be to get these
plants into
operation under private manage¬
nessmen
own
insist
tion
ment
that
rapidly
as
on
the
possible.
In
this connection I can also
point out
to you that the problem of
dispos¬
ing of these plants quickly by sale
may
be exceedingly difficult to
as
work out because if
they
sold
are
be
business
are,
than
therefore,
tending toward the conclusion that
bonds
some
the
at
which
original
cannot
offering
price is to mark them down to
move
be
them out.
moved
rapidly
as
can
a
be sold and
These goods must
into
circulation
as
be achieved with¬
can
adopting
a chaotic policy of
dumping.
In
other
words, business must be prepared
wholesale
mediate policy for the disposition
of plants and equipment may be
of
basis
of
assume
its fair share of the cost
post-war liquidation, particu¬
larly if it wishes to ask for a sim¬
simple leasing
arrangement
with possibly
the
right to apply the rental paid
ilar
against
of inflation.
a
eventual
purchase
liquidation of wartime wages.
Any other policy will slow down
production and increase the threat
price.
Above all, we must not forget that
our basic objective must be to
get
am
these plants into operation
is
under
private management at the earliest
constructive.
I cannot
Now
with regard to
sure
a
taxation, I
we'll all agree that there
crying need for
which will
a
im-
in
detail
they
are
still
in
the
I
must
point out to
post-war
1940 prices.
Post-war prices, substantial cutting of tax rates and
however, are certain to be a good still permit a
balancing of the
higher than those of 1940. budget. The higher we can raise
My own best guess is that we must our national
production the less
of
deal
figure on an average post-war
level at least 50% higher
than that of 1940. This means that
a
gross national
000,000,000 in
actually
be
$210,000,000,000
I
is
ures
■■■*,>»
■
convinced
to
-
for
tion
t:
may
'0:t:;
make
of
and
I
My
£\
must
fig¬
possible
a
balance the budget, while achiev-
(Continued
very
on
page
1896)
of
Chicago
expenditures
first
will
post-war
decade
Chicago Bank Stocks
around
$20,the most hopeful
assumption that the war in Europe
average
000,000,000.
will
be
On
before
over
the
end
State and
of
Canadian Bonds
1944, and that with Japan before
the end of 1945, we shall be faced
with a total Federal debt of at
least
$250,000,000,000 when the
is
war
finished
and
Member
liquidated.
This debt will require annual
Municipal Bonds
Chicago Stock Exchange
in¬
terest
charges of at least $6,000,000,000 and perhaps $7,000,000,000
annually for the first post-war
decade.
Time
does
not
231 South LaSalle Street
permit detailed
Chicago 4, Illinois
discussion of the other items but I
assure
reach
you
it is very difficult
conclusion
a
that
our
Federal
budget
will
less than $20,000,000,000.
a
few words
as
to the
re¬
lationship between the Federal
budget and the national output of
and
services.
The
latest
State and
revenue
further
any
increase
Municipal Bonds
in
we
achieve the post-war em¬
The purchase and sale of this
ployment goal of 55,000,000 civil¬
workers, the national output
of goods and services may be as
high as $140,000,000,000 in terms
type of security has been an
important part of our business
since the bank
as
over
MUNICIPAL
Connely
Itlfl
was
N. W. Harris &
mmi
E. F.
lot of money at any
Corporation Bonds and Stocks
look forward
Federal
j
Jay N. Whipple
a
level of production and prices, and
taxes will be plenty high. Never¬
The Illinois Company
1
,
Twenty billion dollars
in
national
our
ian
we~.*
Ipf
hell of
level of the
budget
taxes.
■"
war.
a
pos¬
recently studied
thoughtful estimates
we
the
which
If
j.
the
is
in
factory post-war level of produc¬
have
annual
without
1
ing to reach the millennium after
is that
for the fiscal year ending June 30,
1944 will be over
$40,000,000,000,
..
■
W
you
related
is
believed that Federal tax
im*
give
that have been put together on the
post-war Federal budget and I am
goods
-
don't want to
the existing tax struc¬
theless, there are definitely en¬
ture, if maintained after the war, couraging aspects to the outlook
might yield over $40,(100,000,000, which I should list as follows:
as
compared with an estimated
1. With a high level of produc¬
budget requirement of $20,000,- tion we can
carry the tremendous
000,000. This means that a satis¬ load of governmental debt and
estimates place the gross national
%#**:
I
the impression I think we are go¬
product of $140,prices would
terms of post-war prices.
The conclusions from these
burden of taxes.
our
Now
1940
product for 1943 at about $188,000,000,000. At this level, it is now
fe&vVK*'o#
mtM S
will be
price
how¬
you,
reform
Federal
very
Now
esaanim
formative
that
one
the level
to
average
1939-40-41
tax
no
both to the expected
to
1941-42
com¬
because
1895
stage.
post-war
1BA PAST PRESIDENTS
recom¬
yet
these
tax reform
the present
remove
as
on
can
1942-43
series of tax
a
ment
some
to
the
future
near
icy for
perhaps the most satisfactory im¬
on
am
mendations which will appeal to
you all as eminently sound and
income.
out
to
We
we
will agree that the
sold
con¬
very hopeful that
shall be able to publish in the
turn
do
harm
I
tories and machinery which, might
otherwise be used.
I think you
has
would
have built up over the past
one we
decade.
except
be
which
free enterprise system to
a
system nearer to their own
hearts' desire, they could not
pos¬
sibly have achieved a better sys¬
tem for their
purposes than the
that
it
group of com¬
our
sible
price where they
more
the
structure
ever,
an
has
to this country
intention of creating a
impeded if busi¬
only sound pol¬
investment firm when
a
Harvard
come
on a policy of hold¬
ing off the market wartime inven¬
at a price low enough to
justify
their purchase on a business basis
the political outcry is
likely to be
terrific and in the long run
might
otherwise.
tax
of
that if
munists had
vert
fects
Slichter
well said
disposal of
the
remember
As
policy
:>
Sumner
all
Government.
stated
detailed
possible burden which is placed on
business
enterprises.
Professor
with
wages
has
over
in
plus machinery and materials also
presents serious difficulties.
We
find that practically
taking for granted
that this will be the
policy of the
is
CED
our¬
involved
believe, wish to repeat that ex¬
perience. Nevertheless, I think it
for is very important to bear one fact
Washington I
everyone
become
to
The problem of
disposal of
Government plants and surpluses
vate
selves
CHRONICLE
organized
Company
60 years ago.
INVESTMENT DEPARTMENT
BONDS
Harris Trust and Savings
Organized
as
N. W. Harris & Co., 1882
Harris Trust
ballman & maim
*
Building, Chicago
Telephone State 8200
105 West Adams Street
Member
CHICAGO
Teletype CG 108
U. S.
Federal
3, ILL.
Deposit
Insurance
Corporation
Telephone State 7907
Qovernment
and
State
Central Republic Company
Member
Chicago Stock Exchange
Municipal and Corporation
Municipal Bonds
Bonds
THE NORTHERN,
I
209 SOUTH LA SALLE STREET
CHICAGO 90
TRUST COMPANY
CHICAGO
New York
Milwaukee
Des Moines
(Incorporated)
Minneapolis
St. Louis
Bank
Incorporated 1907
■
?yy.
■ar^-
W&'PF.
.'<,
iiiifiiiiiit'iliiii*V:<m^'«»'^'
THE COMMERCIAL & FINANCIAL CHRONICLE
1896
patriotic
for compliance
OPA controls, I
am afraid the pressure to rush into
**
OfkKN
'.■>'■'.'
the market and buy everything in
(Continued from page 1895)
;V
U.iM/4a^
ing a substantial measure of tax iax burden from corporations to sight, regardless of regulations,
may be overwhelming.
individuals.
reduction.
Looking Into the Post-War World
;.
■
.
•
..
X
\
,
We
shall
emerge
i.
from
±
JLvvv
I
the
objective of more and
production. This will enable
Frankly, I
am
history.
This means as much concerned about this dan¬
that practically every wage earner ger as any other single thing in
in the country will for the first the post-war picture.
At the end
time have a direct and personal of the war the unused purchasing
interest in governmental economy. power in the hands of our citizens
3. There are good
be
reasons to will
fantastically great.
As
liope that tax reforms will be di¬ stated above, present estimates in¬
rected primarily to the removal dicate that individual savings by
of the present intolerable burdens the end of 1944 may approximate
on
business enterprise.
For the $100,000,000,000. These funds pro¬
past generation tax economists as vide our greatest assurance that
a market will be ready to absorb
a class have directed their atten¬
tion
almost
exclusively
to
an a
greatly increased output of
equitable distribution of income goods and services. They also con¬
and wealth. Now most of these stitute a very serious inflationary
gentlemen—and I can assure you danger unless the goods and serv¬
their influence is very great—have ices are speedly forthcoming.
Because of
this
suddenly discovered
that what
danger most
really matters is the creation of thoughtful students now recog¬
wealth and the provision of em¬ nize the necessity of maintaining
ployment.
As a result, they are many of our present wartime con¬
being driven to conclusions on tax trols on prices, wages, rents, etc.,
policies which they would have for some time after the close of
regarded as highly reactionary a hostilities. What worries me, how¬
few years ago. From this changed ever, is not what the Government
psychology will come strong pres¬ may decide to do in this connec¬
sure for reduction,
and possibly tion but what the American peo¬
eventual elimination of corporate ple will stand for.
When the end
income
a shift
the war removes the strong
1^0^
will be the attainment of
new
high
possible date.
In the meanwhile,
there will be the need for a degree
of self-discipline and self-restraint
on the part of the American
peo¬
ple which may be very difficult
'
I have said
nothing as
problem.
I
that I may be accused of
willing to face the main
the
labor
yet about
share
recognize
being un¬
issue if I
lightly over this problem. I
am, however, totally out'of sym¬
pathy with those few businessmen
no
easy
sure
the
I
to the importance of our internapolitical and economic re¬
lationships. We are not so naive
as to
fancy that we can lift our¬
| tional
selves up just by
tugging
on
our
own
our
character
peace
In
world.
at
nent peace, and for
any
time in
and
stability
concentrating
of
at¬
of
largely upon the do¬
and
mass
mass
tech¬
niques has at the same time made
anachronistic
and
obsolete
the
compartments
nationalistic
of
the
economics
of
Unless
these economic
be broken down after
the war, I am afraid
we shall have
barriers
O Uo.
can
nothing but
Europe, and
continued
fertile
a
chaos lin
seedground
for future wars.
During the past 200 years we
have had four
clearly marked pe¬
riods of broad industrial
exnan-
Sou///3a (ba//e <3/roe/
/N.
sion
Jf
of
I
in
the western world.
Each
these periods has lasted
about
25 years, and has been
I by
Members
New York Stock Exchange
mar¬
production
some
new
motivated
economic
develop-
'
Chicago Stock Exchange
ment.
The
first
about 1750 and
so-called
of
was
these started
caused
agricultural
by the
revolution
in
•
mo-
The development
transportation which
internal
kets
(3/iicaao 3
Bonds
pros¬
few
a
has made
possible our
aspects of post-war prob-
</3czcon, Vf/iippSe
18»:i
this
North America.
the
our
Europe.
INCORPORATED
be
the
In
our own
I should like to take
to explain to
many
(Do curi/ios
ESTABLISHED
will
by
connection, I believe that the
greatest single factor for perma¬
watertight
A. Cr. Meeker &
prosperity
conditioned
of the peace.
have said
tention very
mestic
one
fH C /1
convinced that
am
post-war
materially
stoutly
bootstraps.
Personally, I
small,
J35
putting
ments
far I
the
labor, but
solution of this
am
are
you why I
nothing re¬ think this development is so im¬
garding
international
post-war portant for us, and the rest of the ;
problems. The philosophy .of the world. It seems clear to me that
CED, in this connection, is very the 20th Century is the
century
simple: we believe that a strong, of great continental
empires such
free America is the best hope for as the one we
have created in
So
such general attitude on the part
of business could only result in
There is
we
of
than
labor
who take the position that the
only important post-war problem
the
necessity of liquidating
labor.
I can assure you that any
problem, but I
issues
years.
is
of
the
believe
responsibility there perity, would be the economic
should be greater hope of reaching unification of
Continental Europe
satisfactory
relationships with after the war.
pass
the liquidation, not
of business itself.
on
lacy of attempting to solve post¬
war unemployment by spreading
the work. By preaching the gospel
of production we may also be able
to restore a satisfactory system of
incentive wages, and other de¬
sirable improvements in our labor
relations. Finally, if business man¬
agement can go into the post-war
period with clean hands and with
a
willingness to assume its full
levels of production at the earliest
to achieve.
concentrate
wev
first-things first.'" ;
"•
Nevertheless, we are fully alive
that really matter, such as the fal¬
The only cure for this situation
I mentioned earlier the post-war
our
taxe" ^nd
to
us
lems
us
basic
more
t
threat of inflation.
Thursday, November 11, 1943
hope is to keep always before
/
..
the
with the broadest income tax
base in
motive
unpopular
1
AU
—
n
2.
with
'•
,
war
•,;,t;J, JX' ,;f- iVp'1 "> ;'t';-k^*'
England.
The second,
begin¬
ning about 1800, was the period of
the
Industrial Revolution.
The
third, which began around
the
Notes
middle of the
19th
Century,
was
clearly caused by the advent of
the railroad, which
opened up our
own
West, and also transformed
Commercial Paper
Germany from
val
a
group of medie¬
principalities into
a
great mod¬
State.
v
The fourth period of
expansion
which lasted from 1896
ern
NEW YORK
CHICAGO
HI C KEY
135
SOUTH
&
LASALLE
CO.
||
STREET
Our Fiftieth Year
to
I
was,
growth of corporate
enterprise and
the
development
tion
•;
,|||
CHICAGO
Teletypes—CG 1234*1235
of mass produc¬
techniques,
chiefly
United States, <:
Since
Telephone—Randolph 8800
1920
believe, motivated by the
1920, I
in
the
-
am
convinced
we
have been living
through a world¬
wide period of
liquidation despite
the abortive stock
market boom
of the Twenties.
This period has
been comparable to
that which
occurred between 1873
and 1896
and has had
many similar
political
well as economic
phenomena.
If historical
parallels mean any¬
thing, we should now be almost at
the end of this period of
as
BO N D S
liquida¬
tion, and
period
Public
the verge of another
on
of
broad
searching for
Utility
a
expansion.
In
possible cause of
this
next
expansion, it seems to
the most
likely would be the
economic development of
other
areas, such as Western
Europe and
Eastern Asia, to a
me
Industrial
Brokers and Dealers in
Railroad
Over the Counter Securities
Municipal
Since 1924
point
parable with
our
more com¬
own.
In
other
words, I am afraid our
economic
development has reached a
stage
where
further progress will
be
difficult unless it is
accompanied
by comparable
developments in
other important areas.
So much for
some of the
prob¬
What about'the
prospects
maintaining a free society and
a
system of, private
enterprise in
the United States?
I have no de¬
sire to. underestimate
the serious¬
lems.
for
B
& Tracv
Rogers
inc,
A.C.ALLYN«®COMPANY
Incorporated
120 South La Salle
Street, Chicago
Telephone State 4151
ness
and
complexity of the prob¬
lems which lie ahead.
Neverthe¬
less,
I
lems
can
am
national
more,
if
until all
Direct
EASTMAN, DILLON &
Chicago
New York
Boston
wires
to
CO.
Members New York Stock Exchange
Milwaukee
our
Correspondents
BAKER, SIMONDS & CO.
Members Detroit Stock Exchange
none
confident
be solved if
will
to
do
fail to
we
our
of them
these
we
so.
Further¬
move
problems
prob¬
have the
forward
are
solved,
will be solved.
I realize that at
times in the re¬
cent
past
guilty of
I
ever
myself
have
been
a certain lack of
faith.
I have worried
over the
prospect
that all, or most of
Europe would
Volume
Number 4228
158
foe communistic after the
THE COMMERCIAL &
American
and
war
I have wondered how it would be
possible to maintain
here.
this
a
free society
The only proper answer
fear
is
the
return
to
they
what?"
dough-boy
of
number
making
"so
expression:
the
"at
to
who
are
for their
civilian
life.
Publicly
not say much about it,
already
plans
may
continues,
men
but I have talked to innumerable
Under
such
who
FINANCIAL CHRONICLE
ing thud when we find
buy only half, or a third,
smaller fraction
ties
had
we
can
we
of the commodi¬
planned. That is when
protesting
million
murmurs
hearts
will
of
shall
have
circumstances,
men
oppor¬
excellent
an
we
1938-39
1937-38
1936-37
•
ten
swell
to
a
are saving all the money
possibly can for the time crashing crescendo of condemna¬
tunity to test our system against they get back. Some are married tion against our Government. The
theirs.
If free enterprise is as or plan to be married and they
results may well be catastrophic."
good as we think it is, and we can are putting their money into a
Those
are
the
words
of
an
really make it work sufficiently house, a farm, or furniture. But
American
soldier
on
a
foreign
this is rare.
to solve our production and em¬
The majority
are
ployment problems, we shall have saving money—counting it care¬ fighting front. He is calling to
nothing to fear. If we cannot make fully—and dreaming of the com¬ you and to me. He is beseeching
it work, however, we shall deserve forts it is going to buy.
us for
himself and on behalf of
"But the point is that they are
no better fate than to follow the
his
comrades
to
maintain
the
rest of the world down the road dreaming of these things in terms
of pre-war prices. We in the army value of the dollars he is saving
to communism.
Investment
banking
is faced are not vitally affected by prices. in the service of his country. He
with a great opportunity and a Those of us in foreign services
is praying that those of us at
great responsibility.
I have al¬ chalk up differences against the
home will not fail him and that
ready spoken about the oppor¬ country in which we happen to
tunity.
Now a few words about do our small amount of buying. his dreams—dreams he conjures
the responsibility.
The CED is But we read about the price of in the stillness of the desert night
preaching throughout the length furniture at home going up 100% —will not be dashed to earth
by
and breadth of the country that
or some other price index up to
timorous political time servers.
every businessman must get ready
50%. But it does not strike home
Marriage, a house, new clothes
for the post-war world by bold
and intelligent planning now.
I the way it would if we looked at and an America of opportunity. I
see no reason why the same logic
a radio that we almost
bought be¬ can only pledge that insofar as I
should not apply in the case of in¬
fore the war for $25 and now find have power to
stop it, no orgy of
vestment
bankers.
New,
high
we have to pay $50 for it.
inflation will prevent this Amer¬
levels of production will not be
"After the war that is the ex¬
attained unless the necessary capi¬
ican
hero's simple
dream from
tal is forthcoming, and unless, God perience that each and
everyone
becoming a living reality.
forbid, we are to continue the of us in the
I call solemnly and
army is going to have.
reverently
wartime practice of looking
to
,
IBA PAST PRESIDENTS
or some
•r
the
1897
they
■
.
•
Government
of
chief
the
as
source
investment bankers
the task that
capital,
must measure up to
lies ahead.
this that you
once
to expand
We
have
nied
and
saved
ourselves
we
are
payment
on
at
start
your offices and working forces.
I merely mean that it is time to
money—de¬
pleasures
many
dreaming of
a
I do not mean by
should
our
house,
marriage, etc.
But
will fall with
a
new
down
a
clothes,
air castles
our
discomfort¬
very
Jean
C.
Witter
F.
E.
Frothingham
Edward
B.
Hall
JOHN J. O'BRIEN & CO.
231
South La Salle
Street, Chicago 4
the American Congress and
upon
the great American people to
with
in
us
Let
gram.
fighting
a
join
courageous tax pro¬
us.
keep faith with
Let
men.
us
keep
Telephone
Central
5775
Teletype
our
CG
1660
faith
with America's future.
lay constructive plans to be ready
to handle the volume of business
should
that
be
end
the
after
available shortly
the war.
The
of
nightmare of the Thirties has left
a heritage of extreme caution, al¬
most defeatism, in the minds of
•investment bankers.
You must
off and
shake this
.
Farwell, Chapman
Investment Securities
in¬
NEW
.the post-war problems:
which bear directly on the invest¬
ment banking business.
One such
tensively
of prime
problem
that
importance
underwriting
of
foreign
YORK
STOCK
CHICAGO
CHICAGO
EXCHANGE
STOCK
BOARD
is
se¬
I earnestly hope you will
curities.
Members
,
begin to study
should
You
Municipal
begin to look
forward with confidence.
-..
& Co.
Telephone
TRADE
STate
208 South La Salle
Bonds
EXCHANGE
OF
■
9600
Street, Chicago 4
approach this problem in a more
constructive spirit than has been
done
in
relation to similar prob¬
lems
in
the
The
past.
sure
one
kill the private handling
of foreign financing will be to in¬
way
sist
to
return to the chaotic con¬
on a
Only the
ditions of the Twenties.
Welsh, Davis
Ryan-Nichols
sympathetic
consideration of all the implica¬
tions involved in this problem will
and
broadest
provide
most
solution
a
satisfactory to
and, in the
investment bankers
American people,
the
long
to
run,
105 South La Salle
that
I am proud to have been an in¬
vestment
banker and
optimistic
enough to be anxious to return to
the business as soon as the war is
over.
I think there will be a lot
of
satisfaction
during
the
us
and
of
courage
worthy of our fight¬
forward
victory in all parts of the globe.
Only thus can we do our share in
winning the peace and preserving
the kind of America to which they
INVESTMENT SECURITIES DISTRIBUTION
Straus Securities
We Would Like
Whether it's
Urges Anti-
.
.
know," he writes his
teacher, "the re¬
sults of inflation.
But this time
there will be even greater cause
for discontent and unrest.
This
odd lot
or
or
a
.'.
.
Company
block
135 South La Salle
over-the-counter
DETROIT
.
for
municipals,
industrials,
many
rails,
real estates and
MILWAUKEE
INDIANAPOLIS
dealer outlets
utilities,
bank
Street, Chicago
and
foreigns,
insurance
stocks.
Our retail distribution is
Middle
Our
for
of war:
an
Hear It
Trading Department has
looking
(Continued from page 1891)
consider carefully5'the 5 words of
this American bby who is fighting
for you and for me' in the Euro¬
to
Whether it's listed
Because
v
Inflation Tax Bill
pean theater
"You well
STREET
and
Our
Vinson
LA SALLE
in it
us
will wish to return.
SOUTH
FACILITIES
to JL5 years.
forward with faith
ing men who are moving
to
135
Company
and
CHICAGO 3
next 10
look
Let
for all
Company
Street, Chicago 3
COMPLETE TRADING
themselves.
In conclusion, I want to say
&
Western
an
important factor in the
Investment Securities
market.
Underwriting Department is always looking
interesting situations.
.
friend
and
old
will have some ten mil¬
time
we
lion
men
and
women
from
the
military service who will form a
•formidable group if their plans
are shattered by inflation.
"You might be surprised," this
Orders
executed
on
the
Stock
New
York
and
Chicago
Exchanges
Direct
Cruttenden & Co.
Members
and
209 South La Salle
DALLAS
New
York
Stock
Exchange
Chicago Stock Exchange
St., Chicago 4, Illinois Dearborn 0500
private wires to
DETROIT
LOS ANGELES
■
ST. LOUIS
*
CG35
NEW YORK CITY
1898
THE COMMERCIAL & FINANCIAL
for while
Ait WASJJ Blunder
what
able
(Continued from first page)
tion's Rules of Fair
Practice,
similar
business, shall
observe
high standards of
commercial honor and just
and equitable principles of
language frequently.
Based upon the above in¬
terpretation, the letter then
goes on with the coup de
grace and in effect advises
the membership that the Dis¬
trade,"
trict Business Conduct Com¬
"A
wit:
to
member,
in
the
conduct of his
follows
Then
so-called
the
Board's
"interpretation"
that rule.
"It
duct
shall
be
deemed
inconsistent
of
Association
the
of will regard 5% as the maxi¬
mum
profit that should be
construed
con¬
with
mittees
the
cases
as
where
a
being
fair
dealer acts
in
as
is
CHRONICLE
Laws
they have decided
in
or
is
not
fused
to
define
or
the
and
the
terms
conditions
on
a
matter
of
trade
for
a
>
member
market price of the
security."
That is familiar doctrine
nurtured in the
curities
and
tion
tantamount
to
de¬
fining what shall be deemed
lap of the Se¬
a
maximum,
fair and
rea¬
Exchange Com¬
sonable profit in all secur¬
as
anyone can readily
who has examined the re¬
ity transactions within its
range,
a
bit of temerity
which goes
further than
what our courts have done,
mission
see
is
leases
of
wherein
the
he
Commission
will
meet
with
be
have done
than
for it
completely
disregards the cost of doing
nonsense
upon
the specific facts under in¬
business.
quiry,
We
That cost cannot be
the
purchase
from
the death knell of
many of the
dealers. Under the
that
only the
reprisals
prevents
members of the NASD
raising
a powerful storm
(Continued
on
1899)
page
and
the
and un-American doctrine.
smaller
of
many
Drawing from the spread
between
believe
fear
and never lias been uniform.
The Board of Governors of
the NASD must have
appre¬
ciated or should have
appre¬
In
the absence of
Our Greatest Job
On The Heme Front
(Continued from page 1885)
that
occurred
enthusiasm
and
result
a
as
of
local
their anxiety to
<■
the
of
committees
meet quotas
that must be placed on the nega*
tive side.
Noted especially was
fraud, misrep¬
circumstances; a spirit of fair resentation, or concealment, a considerable volume of "bad
dealing required that the trading should be kept liquid, selling." This included a lot of
sales
that
Board at least submit the
were
the
result
of
pro¬ and securities treated like
posed rule for the members1 other
commodity,
approval as provided in the
The SEC has
Association's
By-Laws and
adequate
the
Maloney Act.
Masking the rule
Bakcus, Kindred & Co.
Had
so more
effectively
by the evasive method
basically unsound. .Speaking employed in the adoption of
of a spread as a
profit is pure this rule.
made of these terms in
par¬
ticular cases based
but had no com¬
ciated
the security
curity
sold prior to the
public in this in¬
sorry sight.
the
NASD
wilfully
a
started out to stir up rebellion
in its own ranks, it could not
may affect the very commer¬
cial survival of
many of them.
We submit that the rule is
for general
construction, in
order that proper
applica¬
tion and definition
in
mitment
to
stance is
which
sales price alone, any infer¬
importance to se¬ ence of unfairness, dishon¬
dealers of the pro¬ esty; 6r improper
enter
into
any
transaction bought or
practice, is
posed maximum profit rule. buncombe, and
with a customer in
any secur¬ time the customer's order had
contrary to
They should have known that our institutions as we have
ity at any price not reason¬ been received.
if
enforced, it would sound seen them operate. It's bad
The whole communica¬
ably related to the current
just and equitable principles principle,
to the
nurse
Maloney Act,
deprived the members of
voice
a
unreasonable
may
of
set forth in the
reason¬
particular cases,
they have consistently re¬
reasonable
and
Thursday, November 11, 1943
as an
any
from
issues; also
other Government
lot of sales financed
a
than by direct borrowing from banks..
more
regulatory
These
bank-credit-financed
powers chases
which at times in their
"in¬
switches
cannot all be
pur¬
placed in the
category of bad selling, but most
exer¬
of
terpretation" was a breach of cise, become oppressive. The
faith, a violation of the By- NASD's attempt to
play wet
them
So
can.
much
Third
point
of
for the lessons of
the
Loan
War
the
view
drive
of
from
financial
per¬
formance.
say
MUNICIPAL BONDS
Now, I would like to
few words of the lessons to
a
be learned from the drive from
the point of promotional
perform¬
ance.
It
is only
by thoughtful
MUNICIPAL and CORPORATE
evaluation of
our promotional ef¬
fort—its high spots and low
spots,
its successes and its weaknesses—
SECURITIES
231 So. La Salle St.
that
CHICAGO 4
RAN.
we
how
Telephone
Fourth
Teletype
1400
CG 240
Branch
j
Office:
idea
some
proceed
Loan
briefly
The
Let-
from
to
the
Fortu¬
eval¬
an
tell
me
results
Loan
as
in
drive.
hand.
the
War
motional
Iowa
at
are
Third
DAVENPORT, IOWA
Waterloo,
War
uation
you
Davenport Bank Bldg.
should
nately the data for such
QUAIL & CO.
902
form
can
we
of
the
the
pro¬
point of view.
most
important
lesson
of
the
drive, as I have indicated, is
the importance of personal solici¬
tation, the importance of personto-person canvassing. Of the in¬
(Eljamtrr ^mtrtfivs (Emttpmtij
dividuals in cities and towns who
Municipal, County and School Bonds
Demp sey-Detiiier & Co.
were
personally
extra
Members: Chicago Stock
Exchange
bonds
in
asked
proximately 52% did
so.
the individuals in farm
Randolph 3900
CHICAGO 3
/
Teletype CO 540
135
South La
Salle
Street, Chicago
;
#
IOWA
CEDAR
personal
where individuals
OFF CE
NATIONAL
of
ness
Telephone Randolph 2100
MERCHANTS
RAP IDS
and
doing
BUILDING
so
12%.
as
Kebbon, McCormick
&
got
in farm
in
confirms
April.
around .to
areas
we
In both drives
tinies
those solicited bought
many of
as
only
what
those
who
were
not
tion campaign reached
many more
people
than
before — approxi¬
telephone franklin
231
for
not asked
solicited. Even though the solicita¬
Investment Securities
b«44
south la salle street
chicago stock exchange
were
than two and one-half
bonds
Co.
solicitation,
towns
and
This
more
stock exchange
of
who
buy extra bonds, only 20% in
cities
IBANK
learned
members
areas
personally asked to buy
bonds, 61% did so. This is
starting tribute to the effective¬
a
to
new york
ap¬
And
extra
39 South La Salle Street
Phone
b,uy
were
SECURITIES
INVESTMENT
to
September,
mately twice the number of peo¬
ple in September as compared
with April—the effectiveness of
Sillsy Mm tow & Company
solicitation
remained
ished.
INCORPORATED
Chicago
have
We
reached
209 SOUTH LA
SALLE STREET
returns
1
the
as
by
undimin¬
no
means
point of diminishing
far
as
it
is concerned.
This, I repeat, is the single most
important promotional lesson of
CHICAGO 4
the drive.
•
*
Another important lesson of
the
drive
the impact of the drive
The Third War Loan drive
bonds to many more
was
itself.
H. M. Byllesby and
Company
sold
people
than did the Second.
non-farm population,
Founded in 1902
Underwriters and Distributors
of
Underwriters and Distributors of
MUNICIPAL, COUNTY AlfJD SCHOOL BONDS
FOR 58 YIjARS
Investment Securities
I
Established
;'^7
1885
i
Among the
35% of the
gainfully employed increased their
bond
purchases
in
September,
compared to 20% in April; and in
rural areas, 40% of the farm
fam¬
ilies
increased
their
bond
pur¬
chases, compared to 18% in April.
Roughly speaking/ however, ap¬
proximately 60%—three-fifths of
income
H. C. Speer & Sons Company
135 South La Salle
New York
Philadelphia
Street, Chicago 3
Pittsburgh
Minneapolis
THE FIELD BUILDING
135 South La Salle
Street, Chicago 3
Telephone Randolph 0820
farm
receivers, farm and nontogether, bought no extra
bonds in
September. This means
that the September
drive, tremen¬
dous as it
was, had
effect
on
the bond
absolutely no
buying of the
majority of the American people.
am not
saying, mind you, that
I
Volume
Number
158
THE COMMERCIAL & FINANCIAL CHRONICLE
4228
majority of the American peo¬
bo bonds in September.
a
ple bought
"I
saying that
to
-individual.
of
.
Incidentally, it appears that about 15% of the adult
\
.population did not know there
War
a
was
Loan
campaign going
there is the lesson
on.
Finally,
as
.to where to place the emphasis
Vin
promotion—on
the
national,
during the
-
what
confirm
was
War
Second
Loan. The evidence is convincing
!that people's strongest <ties,, emo-
1
tional and otherwise, are with the
'community of which
they
are -a
^part, not with the nation or even
large geographic vregions.
They
pressure
to
obtain good results in the sale of
quotas,
are
necessary
bonds to nonbanking companies,
associations, and funds of various
kinds. Therefore, it is argued, the
drive ought to be a consolidated
one.
A compromise suggestion is
and
^learned
;
campaign, plus the
local
that
have
we
indivi¬
drive for
a
only for three weeks or so
then immediately on its con¬
clusion
supplementary
announce
of the same se¬
curities to nonbanking institutions.
Another
criticism
commonly
is that in
of former drives
made
some
of
cases
make
it seemed
with
quotas
too easy to
sales to
large
public protest against the
5%
rule.
from
Mere
withdrawal
membership is not the
answer,
to
encourage
dressed
own
as against
exhortations from afar, respond to
/local quotas rather than national
corporations, with resulting relax¬
of the effort required to do
ation
public
and
in
interest.
&
solicited
are
from
re¬
un¬
to
so
Editor,
Financial
requested.
should
be
ad¬
Commercial
Chronicle,
25
Spruce St., New York (8), N. Y.
IBA PAST PRESIDENTS
1935-36
1934
1932-33
rigid "supervision" of with¬
drawing members.
It
seems
dealers
to
us
that
m
many
%
have
long felt the
of the Maloney Act
passage
created for them
a
....x;
halter, the
of which is being tight¬
by the Association.
The attempt by the Asso¬
a job with individuals.
Also it is
quotas,
prefer
locally
inspired mainly in connection with such ciation to set a ceiling on soradio programs, speeches, and ensales that certain national corpo¬
j called profits, by an undemo¬
tertainment
by
neighbors ; and rations; for obvious reasons, have
cratic method, contrary to its
friends rather than "canned" and wanted to
allocate credit
to
a
J.other material emanating from great many different counties and By-Laws, the Maloney Act
distant places.
•'
Such
allocations and under the
/ communities.
guise of an in¬
With these, lessons in
mind, the have taken time and attention terpretation, is a
pill difficult
War Finance
like personal solicitation
the
Comments
most
a
the
will be withheld if
terest
liaison arrangements between
the NASD and the SEC are
as
lished
Communications
for there is still the their
5%
If letter is pub¬
name
of the writer
repeal of that act in the in¬
of
NASD's
der discussion.
and who would welcome the
SEC to be reckoned with, and
there exists the belief that the
such
the
on
profit limitation decree or
lated phases of the subject
(Continued from page 1898)
for sales
quotas
readers
iln Mils© Blunder
third
or
that the publicity and excitement
duals
merely
second
a
The other side of this problem is
Loan
local
or
make
call in the hope of a small order.
level.
And here
again the results of the Third War
.State,
subscrip¬
They wonder if it is worth¬
while
of the
a
individual
for
vassers
tions.
majority of the
-American people bought no extra
bonds in September. • And that,
after all, was the purpose of the
1 drive as it applied to the average
am
1899
noose
l!
fe
ened
gl
1
■
■
;
■
.
'
'
Division is engaged
preparation for the Fourth War
in
Loan.
It is planned for early 1944,
probably in January.
Budget esti¬
mates indicate that the amount of
borrowing
new
required
the remainder of this
during
fiscal year,
namely until the end of June, will
"
be
about
$40,000,000,000.
In
policy, it will
cordance
with
sought to obtain
sible
from
much
as
So
be
as
pos¬
outside
sources
banking system.
ac¬
the
you
may
ex¬
pect a drive with greater emphasis
than ever on individual sales, and
no
less
sales
to
emphasis than before on
insurance companies and
all kinds of institutional
The State Chairman of War Fi¬
Committees
are
meeting at
Washington next week to
compare
notes and discuss plans.
;
I want to mention
problems that
ed
and
with
plans
Loan
in
for
in
the
of
connection
Fourth
scriptions would be highly desir¬
able, because it is believed from
in
previous
drives
that reports of huge subscriptions
from
insurance
companies and
make
that
This
buyers tend to
the
his
ordinary citizen doubt
$18.75 is really needed.
same
debtedness could be made
success¬
fully without quotas and that
to swallow.
cer¬
In
the
other
dealers who
time.
Obviously
adopted
influence is felt by can¬
on
we can
these problems and
shall
ginning of
back
the be¬
talk and the review
of financial events since your last
meeting,
my
no
Bovenizer
Frank
It is significant evidence
nation's financial
strength
s.@sw&@@
225 E. Mason Street
IS!
SSIf!
MILWAUKEE 2
point of the general interest, it is
Bell
that investment banking and
brokerage organizations
Teletype
Milwaukee
being
maintained
in healthy condition
because they will be needed in
are
Telephone
55
Daly 5392
Chicago Phone State
0933
L.
such review would be the post-war period.
complete without reference to the
fact that the Treasury's huge pro¬
financing, at the rate
$230,000,000 offering every
day, has been carried forward, not
only without disturbance in the
money market, but without inter¬
fering with an open and fairly
gram of war
of
a
active
market
in
including quite
other
a
MUNICIPAL BONDS
.
BANK STOCKS
CHICAGO TRACTION SECURITIES
.
LISTED AND UNLISTED STOCKS AND BONDS
securities,
bit of
fi-
new
Paul H.Davis &60.
The Milwaukee Company
Established
Members Principal
Investment Securities
Michigan Street
10
MILWAUKEE
Merchants
i/
Bank
South
La
1916
Stock Exchanges
Salle Street,
Chicago 3
230
Building
So.
Church
Street
Rockford
Indianapolis
ST. PAUL
CHICAGO
.\x
''
''
/ ' i\- • Xj
n\-
f'K'f'Vf'.'I
'■
THE
WATLING, LERCHEN & CO.
Ssip!
Wise ON SI N
IIO
EAST/
WISCONSIN
CO 31 P A
N 1
ill!
MILWAUKEE
AVENUE
/
DALY
OS2S
-
TELETYPE
Ml
ffiiitom
SECURITIES
rmmtui
,
-!
'
/
U
Members:
/
'I
New
York Stock Exchange
Detroit
New
York Curb
Associate
Chicago Stock Exchange
Stock Exchange
W A U S A U
DSN*8$8
MJ.Sfl:
f
III
I
MADISON
■•<
291
r
INVESTMENT
Investment Securities
feffit
..?■
TELEPHONE
Gordon
J
Underwriters and Distributors
207 E.
M.
Stocks and Bonds
ties markets have been open every
business day. And from the stand¬
well
to
W.
WISCONSIN
global war now four years old, our
stock exchanges and other securi¬
welcome suggestions.
Finally, going
our
approach
sensible
require
G.
Wood
con¬
that through all the upheavals of a
We want the best advice
get
tired of
are
same
at /.the
any new
would
G.
.
of
banks
Orrin
and
nancing mostly for refunding pur¬
poses, by municipalities and pri¬
vate
enterprises.
You
are
all
pleasantly familiar with the par¬
ticulars.
commercial
this
tinuing to support by compul¬
sion
an
additional Gestapo
to mis¬
to
of
the
Maloney
Act may find itself
subject
to future attack
by a strong
movement
amongst security
and
corporations
light
abuses,
tificates might be offered
War
hope of obtaining
some
good suggestions from this
•group. Workers tell us that a se¬
parate drive for individual sub¬
other institutional
21/2S, made ineligible for commer¬
cial banks for a period of years.
Proponents of this idea believe
that offerings of certificates of in¬
the
the
experience
cordingly, it has been suggested
that offerings in the next drive
might well be restricted to sav¬
ings bonds and Treasury bonds
and that the Treasury bonds might
consist of a long-term 24 V2% issue
and a medium-term bond, 12 to 15
years, bearing interest at a rate
between 2 and 2
and, like the
consideration in fixing quotas.
some
being consider¬
are
discussed
might better be devoted to
Ac¬
selling bonds to individuals.
cellaneous
investors
other than commercial banks.
nance
which
sskkoso
t?
UHPMNt
308 8
DETROIT
Ann Arbor
Jackson
1900
THE COMMERCIAL & FINANCIAL CHRONICLE
**':
,
■
'
"
by
putting
Laud i. 1. Anderson Plan To
thousand
Peace-Reemployment
(Continued from page 1894)
for flexibility of wages, he
the commodity theory of
plea
labor, which is of course consist¬
ent with the philosophy that the
end of all production is profits,
rather
than
satisfaction
the
of
laissez faire and let the devil take
the hindmost.
I
would
morals
when
losophy is a throw-back to Adam
Smith, but is not as sound even
as Adam Smith, as applied to our
modern
economic
system,
for
"to
Smith opposed the
monopoly
and
idea of
'conspiracy
to
maintain prices and limit produc¬
tion, and there is not one word
of protest against this in Dr. An¬
-
opposing
change
he
the
and
Securities
a
system
to
and
Ex¬
shows
Commission,
wants
even
that
of
complete
the
refers
the
to
"canning"
records of the musical
this
country.
views
business
the
ac¬
on
wax
culture of
Dr.
Anderson, like
propagandizing newspapers,
the
radios
and
magazines
of
this
country, seems to be wholly un¬
aware
controls
Anderson's
exhorts
the
tivities of the Musicians Union in
cal
ernmental
challenge
plan for full employment."
derson's article. In
abolish
Dr.
Dr. Anderson
to
fact, his desire
limit, if not eliminate, all gov¬
even
"to plan how to make money
the post-war period," and not
in
of the fact that human
chords will not function
vo¬
over
an empty stomach. In a desire for
profits
these
interests
are
so
shortsighted
bring about
>
•
"
,
''
.
'
.
hence
years
content
■'
that
they
would
complete destruc¬
a
1943
system.
term
...
nothing from the depression and
the war, and that if they continue
in their purblind
course, they will
surely
9 reservoir
of ill
will that may sweep us all to dis¬
in the post-war world.
hearing
Bing
a
phonograph
record. Why not carry this
posi¬
tion to its logical conclusion and
install recording machines in the
classrooms of
tion of America's musical culture
said
this
year?
could
men
money
then
make
business
lot
a
of
manufacturing and selling
the records and
teachers
our
few
A
could dismiss
we
and
save
lot
a
of
money and eliminate the need for
taxes
the
for
our
way,
are
schools,
almost
which, by
universally
opposed by selfish interests.
Dr.
sume
Anderson
is
I
as¬
wholly
unselfish in his philosophy, so the
money-making and money-saving
aspects of such a proposal should
appeal
to
might be
fessors
him,
one
I
though he
of the college pro¬
whose
embalmed
on
-
even
talents
a
wax
would
be
record.
the industrial and finan¬
warn
cial selfish interests of this
try that they
seem to
coun¬
have learned
democracy in
permits
their
and
Associate Professor of Economics,
Indiana University, Bloomington,
what
to
Can
the
Promote
Government
Postwar
Do
certain
He-employ¬
specific
an
didates
trol of
the
suggestions
governmental
prices,
wages
tion which the
war
an
as
of
any
probably right
most
best
and
to
business
about
go
pro¬
and
of
"full
"postwar
em¬
plan¬
ning." There is some danger that
"postwar planning" may become
a
fetish like the
a
decade ago. There
be
some
passing
"technocracy" of
bound to
are
transitional
from
pains
production
war
peace-time operations. To
in
to
assume
otherwise, no matter what plans
are
adopted, is to be unrealistic.
Once the
fighting has stopped,
contracts
as
done
Higbie Corporation
it
should
be
termin¬
will
be
particularly hard
the smaller enterprises which
in normal times
play such a
on
Investment Bankers
large
part in
DETROIT 26
balanced civilian
a
All
omy.
measures
econ¬
undertaken
should be directed toward the end
Penobscot Building
of
creating an economic climate
favorable to individual
enterprise
DETROIT 26, MICH.
and
Telephone Randolph 3262
under
promptly as is consistent
with the public
interest, and busi¬
ness
should be spared intermin¬
able negotiation.
If this is not
Miller, Kenower & Company
BUHL BUILDING
serv¬
candi¬
all the can¬
democracy yet
theories
ated
1912
quanti¬
and
possible without too much dis¬
war
Carlton M.
in
efficiently and cheaply
ployment"
based
policy to get back to that
as
cussion
the
mental
be
to
sell
worthy
are
with
men
can
office
will
services
has seemed to
economy
for
it
vote
everyday business of
ducing
and
selling
goods
and produc¬
inter-play of market
forces. Granting the necessity of
retaining certain necessary forms
of regulation, it should be the ma¬
jor objective of postwar govern¬
very
their
con¬
adopt the essential features of a
"planned economy" which is the
of
are
saying that for
men
make necessary has already led us
antithesis
a
they want
the goods
Dr. Anderson is
in
to
upon
all
devised.
generally realized to what
extent
at
closely
profitable
offered
system of political
with which I find myself in sub¬
stantial agreement. It is doubtful
if it is
has
business
they
dates but neither
ment?" raises fundamental ques¬
tions of public policy and also of¬
fers
Not
ices
on
to
what
encourages
ties.
"What
for
commercially
Dr. B. M. Anderson's article
the
system which
a
consumers
dollars
produce
Indiana
schools and col¬
our
past
high degree
of
MARK C. MILLS
on
the
democracy"
times been used in a sense
akin to socialism but in
real sense there is a
create
with
Crosby's voice
In
"economic
aster
leges and make records of what is
man
human wants and needs. His phi¬
Adam
of
he
■
the
themselves
restates
i i
existing musical
talent on wax records, thereby
destroying
the
opportunity
to
make a living for all of our musi¬
cians and letting the
people of a
Business and Finance Leaders
Promote
Thursday, November 11,
'
Bell
Teletype DE 47S
the
employment of venture
Doubtless some forms of
capital.
rationing and of price control will
during the transi¬
be
necessary
tional period.
W.
CHARLES A. PARCELLS & CO.
Members of Detroit Stock
State and Municipal Bonds
Exchange
P.
BARNES
President,
Louisiana
National
Bank, Baton Rouge, La.
I
am
so
favorably impressed
by Dr. Benjamin
with the article
M.
Michigan Markets
Anderson
headed
"What
Can
Municipal and Corporation Bonds
the Government Do to Promote
Postwar Re-employment?" that I
would like for you to send me
Listed and Unlisted Stocks
five additional copies to distribute
to some of my friends.
BRAUN, BOSWORTH & CO.
M. J.
INCORPORATED
639
TELEPHONE
PENOBSCOT BLDG.
DETROIT
RAndolph 5625
26,
MICH.
TOLEDO
—
NEW
YORK
—
DETROIT
—
CHICAGO
President,
CINCINNATI
—
Mutual
PRIVATE WIRES
TO
CLEARY
The
Life
Northwestern
Insurance Co.,
Milwaukee, Wise.
AIX MARKETS
I
didn't
have
time to
read
Dr.
Anderson's article until last night.
I found it most
myself
Underwriters and Distributors of
RYAN, SUTHERLAND
with
& CO.
in
his
II.
VAN
President
Municipal Bonds
"The
I
Corporate Securities
economist
BELL
TOLEDO 4, OHIO
TELETYPE
TO
180
L.
D.
and
Iron
years
of
the
when he
Chase
29
1500
NEW
Buhl Bldg.
65
YORK
Broadway
HAYDEN,
MILLER
ESTABLISHED
&
COMPANY
1903
Campbell, McCarty & Company
INCORPORATED
INVESTMENT
Underwriters and Distributors of
Municipal, Corporate & Public Utility
UNION
SECURITIES
COMMERCE
BUILDING
I
CLEVELAND, OHIO
Securities
MEMBERS
BUHL BUILDING
DETROIT 26, MICH.
was an
National
ing and common sense that have
characterized most of his writings.
Members Detroit Stock
Exchange
DETROIT
Editor,
Age."
Bank and find in this, his latest
study, that was reprinted in your
publication the same sound think¬
PHONES MAIN 5268
$irst ofMichigan CJobpokation
DEVENTER
have followed Dr. Anderson's
writing for
OHIO BUILDING
agreement
sions.
J.
Municipal Bonds
interesting. I find
complete
suggestions and conclu¬
CLEVELAND
STOCK
EXCHANGE
.Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
f.C. Folger Sees Greatest
Investment Era After War
(Continued from page 1879)
jell
bit before we talk about
stabilization and foreign invest¬
ments. In any event, here's where
a
we
come
volved to
of
now.
private business falls
field.
our
peculiarly in
of this
Some
business
;
Speaking of our relations with
agencies, what are
we
going to do with the SEC—
rather, what are they going to do
with us? Also, what are they go¬
ing to do for themselves? On the
latter score, they haven't done so
badly. High honors have come to
their
alumni.
There
were
1930-31
spec¬
v-0
and spectacular
This period would
will fade. The advancements.
in. We may become in¬ appraisement of investment values seem to be about over, however.
a degree hardly dreamed
flowing out of this situation is Membership on the SEC is begin¬
We
reminded
are
that
English capital helped build
railroads and that this is the way
creditor nations such
as
ours
keep
technical job.
our
is a patriotic
We have helped to make
dollar.
it
dollar
War
The
our
patriotic dollar.
a
PJfl
ning to stabilize. Possibly removal
to
Philadelphia,
that
City
of
Brotherly Love, has provided a
'Akf- A
Our business soothing background.
the pot of international trade boil¬
has not faltered in support
It might be pointed out that
English Government never be¬
partner in the Union Paci¬
fic Railroad, however, and I doubt
of the
'mS
War
ing.
the
came a
if
we
have welcomed
would
this
relationship.
With high fates abroad and low
rates here, it seems highly prob¬
able that much of our capital will
venture
me
be
that
abroad.
more
studying
guese
nism
Something
and
more
of
us
the however, would wish to turn back
peace dollar—the same old cart¬ the clock. On balance, the results
tells wheel—hard to acquire, still hard¬ have been good.
By and large,
will
that
ment has advanced
to
business
for
our
finance,
bor¬
fear of
regulation is usually
than regulation itself.
business men are say¬
anyway." That attitude will never
save us.
If we don't get back to
production, we are licked.
days and times, more
of our problems relate
Government. By thought¬
low cost
mm mmmmmm
llgjlggljg
m
Allan
M.
Pope
Henry
f
T. Ferriss
Trowbridge
Callaway
We
worse
are
not
do we wish to abolish
the SEC. Nobody really wants the
seeking,
nor
some
little
practical streamlining. The My head is bloody, but unbowed.
fellow with the big ideas My views are unchanged. The auc¬
needs easier
tions
access
There
markets.
are
to
the capital
some
restric¬
bottlenecks
and
which
should be removed.
tion's
method
is
not
good
and
to
of
ful
stimulating war production.
Re¬
conversion of the war plant to
It may bring the top
dollar in a rising market. Indeed,
it may bring more than the top
dollar.
Most people
believe in
at a ball game,
I had my say
on compulsory
feel like throw¬
home securities for home people
that
ing a pop bottle now and then. We competitive bidding when
(Continued on page 1902)
do think the Securities Act needs subject came up before the SEC.
umpire removed
although
you may
more
the
contribution,
ize but
we
we may
channel¬
cannot stop that trend.
EXCLUSIVELY MUNICIPALS
BROKERS
DEALERS
•
fttranahan.Hagris & Company
Curtiss, House & Company
;
INCORPORATED
MEMBERS
Exchange
(Associate)
Cleveland Stock Exchange
New York Stock
New York Curb
Union
Commerce Building
Main
NEW
CINCINNATI
TOLEDO
CLEVELAND
YORK
CHICAGO
Cleveland 14
7071
BALL, COONS & COMPANY
INVESTMENT SECURITIES
Union Commerce
Building
•
Cleveland 14, Ohio
Underwriters and Distributors
of
State, Municipal
and Corporate
Securities
McDonald-Coolidge & Co.
UNDERWRITERS AND DEALERS IN
CORPORATION AND MUNICIPAL SECURITIES
OTlS
;
1001
CO.
&.
(Incorporated)
<
ESTABLISHED
UNION COMMERCE BUILDING
1899
CLEVELAND 14, OHIO
CLEVELAND
TELEPHONE MAIN 6400
mer¬
chandising.
In these
Govern¬
purpose
easily
"Why worry about this or
expense? It will go for taxes
ing:
that
Wife
of
terms
onto—not
hold
Too many
$15,000,000,000
the
in
rowed—hard to repay.
Spanish and Portu¬
aware
to
er
explore.
are
thinking
own
after the war. The mecha¬
for foreign investments is
In the field of domestic
have
pointed out that
Loans, nor will we cease in Americans are always a bit stiffour
efforts to aid the Treasury legged about making their adjust¬
in every way possible.
This war ments to authority. The old rail¬
dollar is an emotional dollar.
It road operators locked horns with
is a dangerous dollar.
Not the the ICC.
Commercial
bankers
least of the re-conversion prob¬ chafed under some of the regula¬
lems is the re-conversion of our tions of the Banking Act.
Few,
something which our New Confer¬
ence
Committee might properly
we
Some
,1901
1929-30
publicity
will fold up—some
.
IBA PAST PRESIDENTS
Government
tacular
a
DENVER
CHICAGO
NEW YORK
CINCINNATI
TOLEDO
THE COMMERCIAL & FINANCIAL CHRONICLE
1902
things stand
Folger Sees^ Great Investment Era
a
for
and more
more
There is
to think
in terms of price,
buyers
sharpen their pencils and hope
Heaveti
the indenture is all
to
to
the market and not
half above
the
quick turn.
tendency
a
brought a point and
ton, the bonds
l'or the
one
with the home
merchant. I certainly do.Tbe last
auction sale we held in Washing¬
favor trading
All the jewelry you buy at
the auction sale isn't 18 carat gold.
I referred earlier to the high
right.
single Washington dealer figur¬
ed
in the winning' bid.
It that
a
good merchandising?
The theory of the Securities Act
offices
is
SEC Commissioners had been ap¬
protect the unsophisticated
buyer.
Heaven knows, the bor¬
rower
enjoys a seller's market
these days. It is the investor who
to
needs
when
representative should be a
trained man
of experience and
character and not just a nimble
fellow with large capital willing
auction
of private
mindful of
more
fact you can injure the best
of children by nagging them too
That
to take a chance at 10
the
tolerant
less
block,
with
love
in
the
trades are made.
bond
the
less
present placement and
representative
a
If their successors would
pointed.
be
former
certain
which
1o
much, I would say there was no
office too high for them to aspire.
Looking backward, and drawing
the
from
lessons
deals to get
Fourteen
out.
and
come
the 1929 disaster.
(Continued from page 1901)
and
have
years
certain
past,
14
A
new
the
long
era
is in
time
to
shirt
1929
the
at
share of the
not
14 years ago.
of
the
even
in the business
firms
have
organized since 1929.
eration is
growing
ideas and
new
a
'twenties
same
The
was
A
gen¬
in most lines.
in
and
lines of business.
dramatize
But
their
form
If
the
—a
drawn between
regulation and harassment.
yet
regard the
business
I
poor investment bank¬
down to his last yacht. The fact
in
is that taking the country by and
hope and believe that line will
the
I have always felt our
the most interesting
was
world.
dull moment.
is
There
never
large, not many in the investment
offer
possible play for personal
or
sailed
on
with
aspirations
some
Merrill, Turben & Co.
other business.
had
c'd
'
'
'
Investment Securities
'
V/.,'
*
-
,
'
.•,,,»
.
there has been
' '
better
The
is
pick
invest¬
a
or
individual
more
the
greatest
enter¬
liquid capital pressing for
investment than
decade
ever
following
before.
the
war
The
should
be the
greatest investment era we
have known. Investment banking
,
fuss
the
prise, energy and courage. There
certainly lost his
glamour and it is equally true he
Without much
'
Those
one.
ment banker has
has lost his horns.
i
yacht, much
a
Potentially, it may
field have
less owned
to per¬
competition abroad
line must be
be drawn.
ever seen a
other
to
we are
important function both
our
at home and in
writers and speakers occasionally
regard it as especially pathetic to
er
lost
blood
new
the
even
by
Ours is the
coming out
But fourteen
and with it
pattern
of
pretty much
done
of the' dog house.
lean, depressing years have taken
their toll iiv personnel, in capital,
been
new
is
we were
approach.
up
new
People like to
thinking.
I have said
Approximately 50%
present
business
strictly local houses.
greatest example of decentraliza¬
tion of any line.
banking business of today. There
many engaged in this activity
were
of distributing
the bulk of
1929,
is the other way around. The lion's
investment
are
who
In
throughout the
country was handled by branches
of out-of-town houses.
Today it
Call this period of
what you will—the fact
that it
really is about
stop waving the bloody
of
system
1943
"Real Second Front"
the securities sold
making.
years
remains
whole
securities.
since
gone
Thursday, November 11,
feathers
is
pretty
a
good
peace
stock
hold.
great change in
to
No! Far Off: Stalin
•
Premier Marshal Josef V.
in
speech at Moscow
a
Stalin,
the
on
eve
of the 26th
anniversary of the Bobshevik revolution, said on Nov; 6
that
the
opening
ond front"
of
"real
a
sec¬
in
off" and that
Europe "is not far
Germany now stands
face to
with
In
face
United
advices
from
London,
where
heard by
radio, the following
the
reported:
Premier
Stalin
operations
of
southern
'
catastrophe.
Press
speech
said
was
was
that
Allied
the
armies
Europe could
in
not yet be
regarded as a second front, but
that, "nevertheless, this is some¬
thing like it."
He added:
"It is
clear
that
opening of a real sec¬
Europe, which is not
will considerably speed
ond front in
far
off,
victory
up
still
it
further
Allies with
The
in
Italy
of
of
the
the
German
and
the Anglothe Nazis in
at
"shattered
the
is
alliance
blows
have
of
now
the
Ger¬
consolidate
the U. S. S. R."
Russia
American
ture
will
defeat
armies
Hitlerite
over
And
many.
Fascist
the
struc¬
myth, which
crumbling
before
our
eyes," Premier Stalin said.
He
declared: "Fascist
Germany is suf¬
fering an acute crisis and stands
face to face with
>
catastrophe."
Union Commerce
The United Press further stated
Building
that in the speech, broadcast from
Walter, Woody & Heimerdinger
OHIO
CLEVELAND 14
"Finland,
MUNICIPAL BONDS
'.Y
.'
*'*
'
'
'•
.
'
'
Oj
DIXIE
403
,
'
«
'
.
-
1
Moscow, Premier Stalin declared
also:
and
*
ler's
TERMINAL
vassal
find
to
Hungary,
Rumania
other of Fuehrer
a
states
are
now
trying
the
war—
of
out
way
Adolf Hit¬
taking to the bushes and trying to
find a favorable moment to
slip
CINCINNATI 2
unnoticed from
away
the
robber
giant.
"The
\
INCORPORATED
*■
!r
s
'/
*•/
r
•
Germans
lost
than
more
4,000,000 officers and;men in Rus¬
BANKERS BOND
™
sia
during the last year—1,800,000
of them killed.
,
1'
J"
1
t%
r.!
"The Allies
mined
18th FLOOR, KENTUCKY HOME LIFE BLDG.
to
are
wage
fully deter¬
fight
now
a
common
arid smash
LOUISVILLE 2, KENTUCKY
Joseph & Co.,
Inc.
the enemy, and Allied
supplies are facilitating consider¬
ably Russia's fight against Ger¬
many.
"Premier
Investment Securities
INVESTMENT
INVESTMENT
DEPARTMENT
following
Stalin
down the
laid
program:
Liberation
the occupied countries'of
DEPARTMENT
insuring that the liberated
THOMAS
GRAHAM,
WOOD IIANNAII,
Manager
Asst.
tries
CLEVELAND
DAYTON
are
form
Manager
of
for
all
ment of
coun¬
able to choose their
government;
a
Germany
world order
can
make
own
punishment
criminals;
war
of
Europe;
establish¬
so
firm that
future at¬
no
tempt at world domination, and
establishment of full collaboration
among
a
basis
the nations of Europe
of full, mutual trust.
"The recent Moscow
he
Columbia Gas
conference,
'shining
gave
proof'
of
firm relations between Russia and
the great Allied powers, 'and now
Electric
CORPORATION
said,
on
Qillis, Russell & Co.
the United Nations have fully de¬
cided to deal concerted blows to
the
enemy.'
CLEVELAND, OHIO
He warned, however,
that 'great exertions'
necessary
nal
still will
victory is achieved.
"Proclaiming that Russia
WrS
be
by the Allies before fi¬
fortress
'which
cannot
be
was
a
smash¬
ed,' and that Russia would finish
the
war
'even
more
powerful than
before,' Stalin said that, contrary
to Germany's expectations, friend¬
ship between Russia and the other
Allies had grown as a result of the
Moscow conference."
Principal Operating Companies
President Still Desirous
Of
Bingiiamtox Gas Works
The Cincinnati Gas & Electric Company
The Dayton Power
The
and
Manufacturers Light
Natural Gas Company
Light Company
and
of
Union Light, IIeat
and
United Fuel Gas Company
Meeting With Stalin
President Roosevelt' is reported
still desirous of conferring with
Josef
Stalin
of
Russia
despite the successful outcome of
the
recently-concluded
meeting
Foreign Ministers of
States, Great Britain
in Moscow of
the
West Virginia
Power Company
as
Premier
Underwriters
Heat Company
The Ohio Fuel Gas Company
The
Investment Dealers and
Indianapolis Bond
Share
and
Corporation
129 EAST MARKET ST.
INDIANAPOLIS 6, IND.
United
and Russia.
In response to
questions at his
Nov. 5 press conference, the Presi¬
dent said that further
meetings
growing out of the tri-partite con¬
ference will
undoubtedly be held.
The results of the Moscow
ference
were
reported
in
columns of Nov. 4,
page 1799.
con¬
these
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
:
J. N. Whipple Urges Sale of
Government Bonds to Individuals
(Continued from page 1881)
fessionals in the distribution of problem and a matter of. selling—
securities, • let each one of us not only the actual war bonds
regard this problem as if it were themselves, but also selling the
his own individual responsibility." concept of saving and investing—
; Those of
you who attended our for self-interest motives as well
annual meeting a year ago will as for patriotic reasons, so, that
recall the speech of Undersecre¬ the majority of war bonds will,: if
tary of the Treasury Bell, from possible, he held to maturity,1 and
which I quote the following para¬ the reserves that have been ac¬
cumulated by the people will be
graph;
"I think you will have seen by retained, providing their holders
that
now
has
financing
our
taken
on
program
considered pattern. Naturally this
constitutes only a work¬
ing framework of principles. We
program
,
endeavor to im¬
and in doing so may
make further changes in the types
shall, of
prove
it
course,
of securities
offered, especially to
nonbanking investors, and in the
methods of
offering them."
While the sale of
been described as
the
war
bonds has
crusade of all
a
people, and I do not quarrel
this conception, we in the
industry have a back¬
own social security.
of the Government,
with their
official
An
well
and
clear
a
who
is
in
not
the
Treasury De¬
partment, said to me a few weeks
ago: "The trouble with most busi¬
ness
men
is that
they
down
lot of half-
come
to
Washington with a
ideas that they have not
thought through and then resent
the fact that their suggestions are
not adopted immediately." Obvi¬
ously, we and others not daily
engaged in solving the problems
confronting the various branches
baked
with
of
securities
position
the
Government
to
not
are
in
basing them
am
and economic impor¬
transferring the Govern¬
ment debt to the people has not
been sufficiently impressed upon
those
who
selves
should
with
the
concern
S, ''"Jr'&fh-
..
:i'.\J
A':?***'-'
v
vv-
'■■■
■
them¬
problem.
The demands of production for
.
resulted
war
nation
from
contribute.
far
in
overwhelming
of the
by those best qualified to
response
an
every corner
Their
problems
lating to financing the
time
are
solution than those
nearer
to
now
enlist
war.
all
re¬
It is
the
best
financial, merchandising and pub¬
licity minds in the country in or¬
ganizing the most effective sell¬
ing force the world has ever
known to plan and direct a cru¬
sade
for
spreading the gospel of
thrift and
and
saving to all the people,
the purchase of
securities
with
Government
33,360,000
taken.
are
country.
those
The
is
salesmen, each
Henry R. Hayes
Pliny Jewell
families buy and retain war bonds
to the limit of their ability.
One first essential to
success
onstration
its
by the Government of
unwavering intention to mainpurchasing power of the
tain the
in
this program is the constant dem-
Ray Morris
i
(Continued
on page
1904)
savings.
families
in
Government
needs another army of over 8,000,-
be
not
1925-26
social
tance of
of securities offered
and effective methods of offering
of types
ter
should
or
1926-27
(although I have
these
questions
with
of you), let me say that I
impressed with the fact that
the
000
should
1927-23
many,
tions
sound sugges¬
make
to
IBA PAST PRESIDENTS
discussed
tions to the Treasury in the mat¬
us
and
on my own
Association
the
the
enable
ideas
having
observa¬
tions and experiences rather than
presuming to reflect the view of
conflicting
factors bearing on every decision
and the reasons why certain ac¬
ground of experience which should
my
"half-baked"
as
There
a
the
know
At the risk of
described
1903
of whom
one
!
REINHOLDT & GARDNER
j
400 Locust Street
responsible for seeing that four
Bell
St. Louis 2, Mo.
Teletype—St. Louis 174
Telephone CEntral 6640
them.
Recognizing
this,
Secretary
Morgenthau at our Board of Gov¬
ernors
meeting last June, asked
that
be nominated to rep¬
man
a
the
resent
INVESTMENT SECURITIES
Newhard, Cook & Co.
industry
securities
•
.
'V'..;.-'■■■.
'
■
v
...
MEMBERS
Members New York Stock Exchange
in
J
With the enthusiastic en¬
of
the
NASD, New
York Stock
Exchange, Associa¬
tion of Stock Exchange Firms and
New
York
Curb
ington.
St.
Association,
former President of this Asso¬
a
ciation, Edward B. Hall, on leave
"from Harris, Hall & Company, has
the
undertaken
assistant
an
the
job
the
to
Municipal Bonds
Investment Securities
400 OLIVE STREET
ST. LOUIS 2, MO*
St/x
appointment because of a patriotic
and earnest desire to help, and
I
cooperation with him
urge your
to the end that all
the talent and
evident
is
It
the
despite
thus
tained
methods of
disposal
the
of
I. M. SIMON & €0.
the
of
us
all
Co.
509 OLIVE ST.
that
to
^
SAINT LOUIS
resourcefulness of our industry be
placed at
Treasury,
Louis Stock Exchange
the
accepted
He
Treasury.
and become
Secretary of
Chicago Stock Exchange
Listed and Unlisted Securities
Dealers
Government
iAssociate)
Underwriters and Distributors
dorsement
Chicago Board of Trade
New York Stock Exchange
i
Department in Wash¬
the Treasury
'
Business
Established
1874
Members
St. Louis Stock Exchange
excellent results at¬
far, more effective
Mid-Western and Southern Securities
selling government se¬
people can be de¬
MEMBERS
curities to the
veloped.
The great hoard of un¬
invested
funds
New
millions
of
in
the
how
indicates
hands
far
St.
of
short
315
York
Stock
Louis Stock
North
Exchange
New York
Exchange'
Fourth
complete job has been done
date.
Recent figures of the
Curb
(Associate)
Chicago Board of Trade
Street
ST.
LOUIS
2
a
to
Telephone
ST.
Central 3350
Federal Reserve Board show that
business
deposits
in
individual
and
have
LOUIS
SECURITIES
demand
doubled
banks
since 1939 and now stand at $56,-
000,000,000.
has
tion
Currency in circula¬
from
increased
Underwriters
$7,000-
000,000 to over $19,000,000,000 in
the same period. Time deposits in
commercial and savings banks and
in the Postal
Distributors
CORPORATEi
G. H. WALKER 6- CO.
and MUNICIPAL
Members
SECURITIES
Savings System now
total
$31,000,000,000, as against
$25,000,000,000 in 1939. In these
vast sums there is a challenge to
business;
our
an
New York, N.
Its
Sterri birofes
after the war.
utilization is
an
Stock
Exchange
MO.
Providence, R. 1,
Y.
b
Co.
investment
1009-15
{Baltimore Ave.
KANSAS
CITY
om|\ha,
6, MO.
State and
;
neb.
#:
Municipal
Bonds
ioNDS
0. H. WIBBING & CO.
MUNICIPAL
Members
St. Louis
York
opportunity for
greater service in financing the
war and. contributing to
a sound
economy
New
ST. LOUIS,
CORPORATION
Stock Exchange
PREFERRED STOCKS
BOND DEPARTMENT
319 North Fourth Street
Trading Depa rtment specializing in
Unlisved Securities
SAINT LOUIS 2
Mercanti!e*Commerce
PrEiBcattWiiuht.SnidBrCo.
INVE5TME NT
916
BELL
Baltimore
TELE.—KC
262
Avenue
BANKERS
Kansas
Locust--Eighth-St. Charles
St. Louis
NEW
City 6, Mo.
VICTOR
Bank and Trust Company
YORK CORRESPONDENT
14
3143
WALL STREET
THE COMMERCIAL & FINANCIAL CHRONICLE
1904
J. N. Whipple Urges Sale Of Government Bonds
To Individual
funds
needed,
over
(Continued from page 1903)
omy
the intervals between drives. This
on
should
is smarter than
fiscal
of
by the
of
curtailment
Government
all
expenditures not absolutely es¬
sential to victory.
As a means of stimulating and
bond
tions
as
provide
vestors
and
$100 in order to
for
rate
to
as
and
as
in
advance.
for
zation
planning
proper
in
the
.
is needed
and organi¬
field.
tance
of
partial payment
plan under which individuals can
tion and
be
bonds
a
during drives for
larger amounts, to be paid out in
up
impor¬
improving the organiza¬
technique for selling war
be exaggerated. Besides
can
providing
the
Government
lower scale with the Smiths
the
trying to keep
up
2.
of
Employing the surplus funds
individuals
represent
an
which
ever
otherwise
present threat
have dan¬
requirements
included
are
should
with the Joneses.
in
of
the
business
fire
Industrial,
array of pails, pans and
property usually cherished
the careful country people,
strewn about just as
they were
by
afternoon.
engineer who has
plants throughout the
country
recently
described
a
childhood experience to illustrate
his conception of the situation of
industrial
our
the
and
other
An industrial
war
morning,
motley
ports which will be made tomor¬
been in
next
vivid picture in his memory is the
Railroad, Public Service and Mu¬
nicipal Securities Committees re¬
row
the
11, 1943
abandoned
after
having
served
their purpose in the
emergency of
the night before.
Much of our equipment and fa¬
cilities have been turned over for
use
in our
emergency, and this
man
visualizes the country, the
plants the morning
Armistice Day.
about ten, there morning
after
the
armistice,
3. Encouraging the careful in¬ was a
big fire in his community, strewn with war plants as the
vestment of savings and the de¬ which had no fire
fighting equip¬ scene of that fire was littered with
velopment of a broad riew market ment of any kind and no water
buckets, pans, washtubs and every
for
the
securities
of
industry system except wells and cisterns kind of fire-fighting
equipment.
which will need capital in the for
every house.
We will have a part in retriev¬
post-war period.
It was late, about midnight, he
ing those plants. Some of them,
Another immediate benefit will said, when
people shouting "Fire" in the
light of new technologies
result through effective inculca¬ in the street woke
up the town.
just waiting an opportunity for
tion of the desire to
buy and own The three-story frame hotel in the
application in peace-time opera¬
bonds.
This should provide an middle of the business block was
tions, will be as archaic as a
incentive to war workers, which on fire and
everyone came run¬
bucket brigade.
Modernizing them
will
help to cure absenteeism. ning with ladders, buckets, pails,
to
price
Even
the
control
inflation
though
and
manpower
is
now
narily have something he urgently
wanted to buy or had to
pay for,
now
frequently finds he has noth¬
ing to buy and takes a day off
at
will.
to
We used
old
to
laugh about
darkey who didn't
mow
the
lawn
for
quarter
a
quarter.
laugh at it
these days.
Some estimates of the
post-war
new
he
was
washtubs and
hold water.
four
over
the
anything thaLWould
The entire population
old
years
lines
formed
nearest
to
to
The
hotel
burned
on
When
out,
a
pails
few
fire
ran
back
needs
ones.
were
was
villagers
ladders,
but
saved.
found
but
of
daylight. As
might be expected, the boys
first back
their
most
were
to. the scene of the
to
vate
the
finally put
today. The part
of that installation
able
down,
The Govern¬
$15,000,000,000 of the
nation's factories
from
them had to wait for
the
out,
will call for capital.
ment owns
distant
more
either side
the
and
water
well,J and
forth
stores
turned
pass
and
want
a
because he already had
Production men don't
the
When
bottleneck of produc¬
worker who would ordi¬
a
after
potentialities.
critical
tion,
the
I do not believe that the
ment in limited amounts.
signed
fiscal
"
This amount of time
re¬
eligible only for individual invest¬
Establish
As
attaining them as specifically
possible at least four months
demption which require that it be
3.
program.
,
issue which small in¬
who may be prejudiced
an
features
selling
munity and, although state lines
could
still
be
preserved,
their
geographical locations provide: a
logical basis for organizational de¬
centralization from Washington.
5.
Outline the objectives of each
War Loan drive and develop plans
coupon,
denomina¬
in
bond
as
a
against registered securities will
buy. This issue, like the series
"E" bond, might well have cer¬
tain
Reserve
of
tige should be fully utilized in
enlisting the support of the most
effective manpower in every com¬
available
low
Federal
position
local
state
No credit toward these
marketable
a
agents of the Treasury, their pres¬
quotas should be allowed for sales
tax notes and certificates.
Make
in
a
gerous
greater
authority and responsibility in the
of
2.
the
Place
4.
quotas based on sales to individ¬
uals only.
of
sales to individuals
establishing
by
size
average
banks
Concentrate the Fourth War
on
the
with the present issuing agents
"E" bonds.
tions:
1.
increase
to
series
broadening the market for Gov¬
ernment securities, I urge consid¬
eration of five specific sugges¬
Loan drive
tend
purchase and reduce
the number of pieces issued.
Arrangements to handle partial
payment contracts could be made
drastic
.
capital
a
objectives:
Popularizing personal econ¬
and the feeling that living
dollar, not only through price con¬
trols and rationing and a sound
but
war,
have these additional
1.
policy,
and above its
to finance the
well-conceivedi program
revenues,
Thursday, November
for
civilian
be transferred to
ownership.
One
that is adapt¬
production
must
'
'
pri¬
•
of the
country's industrial
against strato¬
spheric planning and urged sealevel planning instead. The
prop¬
leaders
warned
osition that the nation's industries
will need billions of new
capital
and
that
diately
individuals
available
have
the
imme¬
billions
of
savings to supply the capital need
be reduced to the proportions
can
of
single corporation, and
a
down
Piper, Jaffray & Hopwood
I
to
know
§calman & Company, Inc.
STOCKS—BONDS—GRAIN
,COMMERCIAL PAPER
.
York
Stock
Members
Exchange
and
other
principal
one
Exchanges
Minneapolis
St. Paul
Endicott
Building
manufacturing
more plants
throughout the country have made
nothing but war goods since a few
McKnight Building
PAUL
MINNEAPOLIS
It
was
using 100,000 machine tools in its
operations. Half, or 50,000, of them could be used on its
pre-war
war
products.
were
SAINT
get
or
months after Pearl Harbor.
Investment Securities
New
of
whose 100
concern
so
level.
sea
turned
Another
over
war
production
scrapped/ /
Today
(
.*
25.000
to other
facturers who could
and
manu¬
them in
use
25,000
were
.
the
company
is again
100,000 machine tools
50,000 added for war
work, 40,000 are owned by the
Government, which has invested
operating
but
FIRST NATIONAL BANK
a
Stanley Gates & Co.
of Minneapolis
State and
UNITED STATES GOVERNMENT
STATE AND MUNICIPAL BONDS
115
SOUTH
FIFTH
STREET
MINNEAPOLIS
2,
Municipal Bonds
Bank Building
Saint Paul 1, Minn.
the
total
in
of
a
half
billion- dollars
plants and equipment for this
one
It
First National
of
to
concern
is
operate.
impossible to put a figure
on the
amount of capital
today
this company may need to restore
its
own
property, acquire the
con¬
vertible part of the Government's
facilities,
not
replace
machine
tools
adaptable, and replace its mil-
MINNESOTA
Vii:
I
Municipal
Bonds
Woodard Elwood & Co.
Members
s'<'j-
.'j ''
-
Minheapolis-St:'Paul
Stock
'-V.f
.
INVESTMENT
''
Exchange
.
•
*
•'
Investment Department
A\
.v-V-
The First National Bank
ALLISON-WILLIAMS
of Saint Paul
Northwestern Bank Building
SECURITIES
COMPANY
MINNEAPOLIS
RAND
TOWER
MINNEAPOLIS
.
2,
U. S. Government and
2.
Municipal Bonds
MINN.
Bigelow Webb, Inc.
C. S. Ashmun Company
Investment Securities
Investment
:
«J. M. Dain 8c Company
Securities
INVESTMENT SECURITIES
■
RAND TOWER
1ST
Minneapolis
NATIONAL-SOO
;
1212
FIRST
NATIONAL-SOO
LINE
BUILDING
MINNEAPOLIS 2, MINN.
LINE
MINNEAPOLIS
MINNESOTA
BLDG.
2
tVolume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
itary goods inventory with civilian
Individual Freedom And Economic
goods inventory.
This company
has approximately
400,000
stockholders and about
the same number of employees,
many of whom are also stock¬
holders.
it
Does
visionary
seem
to consider the
possibility of these
workers, whose savings are cur¬
rently at the highest rate in his¬
tory, buying securities of their
company to finance in part; its
post-war rehabilitation?
The
diffusion which is
taking place in the ownership of
capital will present a new prob¬
great
lem.
We
find
must
improved
methods of
assembling this capital
and making it available to indus¬
try through the private capital
markets.
Unless
lend
will
ernment
do, the Gov¬
we
the
business
it requires and obtain it
through taxes. The transition from
government loans to government
ownership is apt to be short.
money
It is
a
fundamental of
that
omy
capital
our econ¬
from
private
will
be forthcoming only
if there is an incentive and if an
sources
environment
nomic
favorable
to
eco¬
is provided.
One
obstacle to the ready flow of pri¬
vate capital will
be the heavy
progress
of taxes
burden
able
but
such
which
be
must
distributed
in
the
leave
to
as
manner
a
is inevit¬
profit incentive to enterprise.
Taxes
will
probably prevent
corporations
from
obtaining
a
t
•
normal amount of their
ital
own
cap¬
needs
through plowed-back
earnings, which in the past have
provided the major part of new
capital for all industrial enterprises. From 1930 to 1939, busi¬
ness consumed capital instead of
accumulating it. Since 1939, there
has been some capital accumu¬
lated on balance, but in 1942 Fed¬
■
eral
net
absorbed
taxes
of all
income
enterprises
as
68%
the
of
manufacturing
against 18% in 1939.
Individuals with large incomes
have a similar or even heavier
tax
burden,
the
and
new
'
(Continued from page 1880)
1924-25
be
1922-23
limited.
The
contrast
1920-21
ernment
planners, if planning fori system of free enterprise. Capithe nation as a whole, have merely talism, it was claimed, was disin¬
the primary factors of labor, land, tegrating. Finally it would fall of
capital, which they must put to its own weight and then humanity
their most effective uses in satis¬ would move to higher levels of
fying the needs of the citizenry.
They are usually guided only by
vague
guesses
or
by statistics
which are no longer current, since
they can not be kept up to date
in
an
overall fashion for the en¬
tire country.
In
any
economic
should be
order
there
ascer¬
taining the wants of the citizens;
and, second, a mechanism to or¬
ganize production according to
these
Under
wants.
economic system the wants of
people
determined
are
bids in the market.
demand
of
the
of any
lem
the
their
by
The collective
citizens
at large
importance
particular want. The prob¬
the
constitutes
then
is
production
available
social
how
the
so
combine
to
several
that
amount of wants
in
resources
maximum
the
be satisfied.
can
Business ; managers
under
our
present system take the costs into
account which are provided by
the
market.
ernment
ing
in
overall
gov¬
planning the cost of
us¬
for the satisfac¬
any resource
tion of
the
But
given want would mean
advantages which might be
a
derived from the
ticular
resource
of this par¬
another way.
use
in
tioned
plan.
to
not
alysis
:.y-
were cau¬
into
discussion
or
In
enter
if
any
of
the
SSii :yyy4foi:.
an¬
new
they to at¬
to explain the probable
working of Socialism. It was suf¬
no case were
ficient to know that it would
ceed
This may be referred to as oppor¬
our
when
ivgv.
suc¬
disintegration
Several
ISC®# y.vi
'
:
decades
ago, however,
well-known
economists,
few
a
them
among
Von
Hayek
(the last two
of the London School of Econom¬
ics) have shown that the govern¬
ment operation of any economic
fulfill
system. cannot
the
hopes
that have been staked upon it by
These
supporters.
authorities
have been consulted in the prep¬
aration of this paper.
Generally,
it
is
hard to real¬
ize how difficult the problem of
a
centrally controlled economy
really is. Under our system of in¬
Hi!«»»
.iJ
Thomas
must
N.
of
uses
resources
whole nation
control
have
been treated
tary way.
the attempt
wants
of
a
through centralized
until
in
recently
even
Socialism
an
or
not
elemen¬
Collectiv¬
ism has been looked upon by many
as the inevitable successor of our
John
Dysart
A.
Prescott
Roy
C. Osgood
count of their mistakes will have
ing that the people should judge
wants they desire to have
satisfied. This may be a violent
assumption in view of the well
known disposition of some human
beings to tell their fellows what
to
their wants
rely
upon vague notions of
public requires, cannot
quickly adjust themselves to the
changing patterns of public de¬
mand, and losses sustained on ac¬
what the
be
borne
by
in
the
lower standard of
public
living.
In this discussion
their decisions
are
consumers are
satisfied they stand
to
correct and the
a
what
ought to be. Govern¬
planners could hardly forego
(Continued on page 1906)
ment
we are assum¬
Bos wortii, clianute, lougiiiudge
gain.
But if they make wrong
decisions, they bear the loss as
&
the whole economy, and gives
alternative
fiag«Bls
dividual enterprise, the various
producers make their forecasts. If
the
primary factors of production.
BSSI
V.vtX
Mises,
and Lionel Robbins
its
individuals.
This
well
as
distributes
the
as
losses
the
Established
over
it
elasticity which cannot be at¬
tained in
any
other way.
The
individual producers usually adapt
themselves quickly to public de¬
mand. They can allow for the in¬
of
discoveries
new
which
DENVER 2, COLORADO
Underwriters and Distributors of Western
Municipal and Corporation Bonds, and
inventions and
active in all local securities.
facilitate
will
1916
Ground Floor, Security Building
an
troduction
Company
production. Government planners,
on
the
other
hand,
since
they
Telephone: Keystone 6241
Private
Teletype:
and
wire
connections
with
all
principal
DN 284
&
markets through offices
correspondents Of White, Weld
Co.,
and
Harris,
Upham
&
Co.
is
sharp between this group and the
:
large
means
of
individuals
of
number
modest
who
have
savings
which in the aggregate are fully
adequate to meet the nation's cap¬
ital
own
a
Investment Securities
Of American business
and encouraging
to
Harold E. Wood & Company
requirements. 'Broadening the
ownership
i
5IDL0, SIMONS, ROBERTS A Cft
FIRST NATIONAL BANK BUILDING
those who work
stake in
industry com¬
—
SAINT PAUL, MINNESOTA
—
INVESTMENT BANKERS
mensurate with their jobs are de¬
sirable
by-products that can
First National Bank
re¬
sult, if we meet the challenge pre¬
of
?
great need for capital on the
one
:
Denver
this post-war situation
sented in
Building
ti
63
Teletype
hand and great abundance but
'great diffusion of capital
the
on
other.
ii
In addition to the demands for
;
capital by our domestic economy,
;
the amount required to stabilize
<
;
currencies
and1
provide
restoration
and
expansion of in¬
all
tradd
and
dustry
exceed
will
world
the
over
anything
have known in the past.
MAIN
Park-Shaughnessy & Co.
the
for
BELL,
6281
Ground Floor-First National Bank
we
DENVER, COLO.
Building
Colorado
1
SAINT PAUL, MINNESOTA
is
ment
the
Dealers in
Corporation Securities
invest¬
and
Municipal Bonds
that demands
subject
a
immediate
attention
of
our
ARIZONA
v
The
Association.
years ago
mistakes of
23
will not be repeated.
We must assume much respon¬
sibility
the
for determining
field
of
and
home
investment
abroad
is
NEW
both
at
gence,
I have full con¬
Bought
——
Sold —-Quoted
Sullivan & Company
Private Wire to New York
involved. such. intelli¬
solution
will
be
of
private enterprise and the way of
life after the war which those now
in battle are fighting to preserve.
Fourth
York
Curb
Avenue Bldg.
Telephone
Seneca
New York Stock Exchange
New
.
„
1411
0680
Security Building
DENVER, COLORADO
Members
which insures the preservation
investment Bankers
FOSTER & MARSHALL
one
,
.
NEVADA
WYOMING
Investment Stocks
resourcefulness and vision
their
UTAH
Municipal & Corporation Bonds
developed
industry will bring to bear on the
that
MEXICO
Pacific Northwest Securities
fidence that the members of our
problems
MONTANA
COLORADO
whether
largely by private capital or gov¬
ernment funds.
Springs and Loveland, Colo.
The for¬
lending and
foreign
DN 290
PETERS, WRITER & CHRISTENSEN, INC.
Investment Securities
mulation of sound policies govern¬
ing
":>li
mm
was
gains
The complexity of
to take care of the
-X*
Mm
present economic system
its final
tunity cost. Decisions would con¬
stantly have to be made involving
or
M'i
■
complete..
present
our
stifii
well-beng under the new social¬
istic economy. Adherents of this
newly proposed system
•
tempt
#
mechanism for
a
y •/ v'
capital available from them
will
■
SBA PAST PRESS DENTS
Planning
"
of
amount
1905
(Associate)'.
Seattle 1, Wash.
Bell
System
SE
Teletype
145
1906
THE COMMERCIAL
-
decisions
Individual Freedom And Economic Planning
(Continued fr om page 1905)
their desire to select "for the peo¬
ple
those
their
that
wants
estimation,
be
should,
satisfied.
It
At
rate, there will always be a
disposition on their part to iden¬
tify the interests of individuals
This
tends
one
those
of
attitude,
to
the
as
become
seems
most
a
reasonable
that
the
handling of
intelligent
resources
our
will be
system of
achieved under
individual
initiative.
Experience teaches that the aver¬
age man is much better informed
and less corruptible in the de¬
government.
history
the
'fey-/
them, and soon their liberties
will have disappeared.
in
shows,
prevailing
with the result that in the end
cisions which he
citizens will be told what is good
makes
which
he
makes
Naturally, the
as
CHRONICLE
as
a
con-
sumer and a producer than in the
An American
sociologist in
a
book
written about a decade ago re¬
ferred to the experiment
going on
in Russia, saying that we should
not be
disappointed in the results
which
were
cause
being
attained,
be¬
politics had crept into that
state economy.
Presumably, he
thought that other countries such
as
our
operate
own
would
state
a
be
able
economic
to
system
Thursday, November
without politics.
If so,
naivete extraordinary.
a
managers of
governmental economy wish to
perpetuate themselves in office.
a
for
any
with
voter.
& FINANCIAL
But
if
even
we
that
was
that
assume
government
planners are men of
unimpeachable integrity who de¬
sire to
labor
the resources of
land,
use
and
capital in such
a
way
that the wants of the citizens
may
be provided for
consumers' free
culties
that lie
planners
In
according to the
Choice; the diffi¬
ahead
of
these
insurmountable.
are
passing
11.
1943
But
government planners for a
nation have the task of
interpret¬
ing the wants of millions
zens, and this is
of
citi¬
impossibility
an
because in centralized
mechanism
these
of
planning no
provided to make
is
wants
known
planners
authority.
who
The
to
the group
in
are
overall
decisions
would
have to be made, by and
large, in
hit or miss
fashion, and
many
would
be the substitutes the Citi¬
draw into zens would have to accept or go
this discussion the
problems which with their wants entirely unful¬
at present beset the OPA in
One economist refers to
its filled.
we
may
attempt to control prices. What' our system of free initiative
confusion arid working at cross offering what
might be called
purposes do we have, even though a la carte service. Under
as
an
govern¬
the me'n in authority are in most
instances sincerely desirous of do¬
Bankamerica Company
ment
ing
question and only a limited table
d'hote service of standardized ar¬
ticles could be expected.
good job for their
a
country
in this emergency! In time of war
this attempt is no doubt
necessary
in order to
avoid, if
evils
of
possible, the
inflation. By
run-away
and
large it drives home the im¬
possibility of having any group of
planners interfere in a satisfac¬
INVESTMENT SECURITIES
tory and successful
manner
in
our
system of economic production and
distribution.
In
SAN
further
ture
FRANCISCO
LOS ANGELES
of
elucidating the na¬
economic planning it is
this
operation
would
soon
Let
the
the
economy
out of the
be
contrast with the govern¬
in this instance
us
ment's
of
problem
fairly simple situation of
isolated producer
Crusoe.
son
He
such
as
would
an
Robin¬
have
no
difficulty in making the most ef¬
fective
use
before him
the
of
his time
and other
because he would
resources
an
relative
have
accurate
picture of
importance of his
SAN JOSE
SACRAMENTO
LONG
RIVERSIDE
SANTA ANA
STOCKTON
FRESNO
SAN
DIEGO
GLENDALE
RENO
BELL SYSTEM TELETYPE
again to emphasize that
it constantly involves the com¬
parative valuation of the needs of
wants and would also be aware of
the
human
BEACH
necessary
beings
of
sources
OAKLAND
available to
In
small
a
as
way
well
as
the
re¬
supply them.
the problem is
presented in the administration of
a
family.
of
wants
Parents
the
household in
and
an
distribute
hand in
an
interpret
members
of
resources
or
labor
necessary
Possibly
the
bring the produc¬
tive forces of the group into har¬
mony
goods
at
them.
rect evaluation
the
understanding fashion.
and
to
head
a small patriarchal association
group could by method of di¬
the
appreciative way,
the
time
satisfy
with their preferences for
and
country
the
of
problem
services.
millions
But
of
would be
for
consumers
insoluble.
through
a
INVESTMENT
SECURITIES
Montgomery Street
SAN
FRANCISCO
650 South Spring Street
4
LOS ANGELES
14
111 Schwabacher $&! Co. illili
INVESTMENT SECURITIES
600
MARKET STREET
AT
MONTGOMERY
Telephone SUtter 5600
..
SAN FRANCISCO 4
MEMBERS
NEW YORK
STOCK EXCHANGE
CHICAGO BOARD
NEW
V:!'V'-::-"-v■
NEW YORK
(ASSOCIATE)
v;'J■"\^;vv.-'/■'NNN-Vvj-.YVY'^^YvY'■
OAKLAND
-
OF TRADE
YORK CURB EXCHANGE
FRESNO
SANTA
BARBARA
MONTEREY
SACRAMENTO
J
late and NiunkfJial Ilndy
•
STATE
and
MUNICIPAL
BONDS
UNITED STATES GOVERNMENT OBLIGATIONS
Kaiser
&
Co.
SAN FRANCISCO
NEW YORK
RUSS BUILDING
25
BROAD
Teletype
IBmtfe of Ammo*
NATIONAL
STREET
Teletype SF 29
NY 1-2678
a
Those people who wish to provide
Mitcliimi, Tully & Co.
405
for
citizens,
San Francisco
™7nc°ASSOCIATION
govern-
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
158
to the
mental agency are
possibly- thinks
ing of the satisfaction of only the
elemental wants of human beings.
But when we think of satisfying
human wants in
somewhat
a
61£bofate' fashion,
fronted
tastes
by
have
,
single
no
agency
could begin to keep up with them.1
Only by having the responsibility
for
production scattered widely
among the individuals of the econ6my can there .be an adequate
adaptation of the forces' of pro¬
duction
to
the
needs
Of the
com¬
munity at large.
•
It
is
curious
a
however,
fact,
that white most of us are opposed
to extensive government interfer¬
because
the
problem is so
Complex" and difficult, there are
those who- give the complexity of
any economic system as the main
ence
is
an
by
myriads
ducers—all
What
in
be
cannot
perfect
a
with
their
ears
to
economic
production
and
thereby enhanced the well-being
of the people. This was a case of
relative evaluation
of
of two factors
sia during recent (pre-war)
and
may be
nection.
this con¬
interest in
of
years
It is conceded that in her
of
IBA PAST PRESIDENTS
1915-17
production—labor and capital.
It shows that government,
that
sort
is
a
logical problem.
costs ,,of
labor
alternative
of
planning
value
incidentally
only
made
by too much construction of ma¬
chinery, buildings, dams, etc., in¬
stead of using labor directly for
the production of goods for imme¬
diate
consumption,
which
the
people so greatly needed; For ex¬
ample, tractors were used on too
large a scale in farming.
Even
though we assume that grain pro-k
duction was increased by the use
problem
techno¬
a
The comparative
and
of
capital
as
ades
mistakes
experiment
the
tractors,
them to such
ac¬
manner
individual
of
authority
the
.
willing to extend and expand such
a program until it ends in all out
complished
get
total
try their nostrums.
Some of the experiences of Rus¬
for
collectivism.
a
could
government interfer¬
and planning.
With them it
article of faith and they are
reason
ence
no
they
and,such variations in hu¬
demand that
man
we
centralized economy
fear of tackling if only
planners of
more
diversity in.' human
a
ground to divine the needs
public—these
and demands of the
1907
pro¬
close
a
uneconomic
have
were
decision to use.
great extent was
anyway.
better
been
tinued
to'
which
would
to
It
would
have con¬
largely farm labor
have been cheaper
use
(in terms of bushels of grain pro¬
tal
capi¬
consumed by the excessive use
of
tractors
duced)
used
in
another
have
been
That
is, it
then
could
would have
The
tractors.
than
way.
helped to increase the
were
here
could
factors
not
production
involved.
be
The
exactly
under
because
in
costs
calculated
government
man¬
agement the cost of labor in any
individual
this
is the
case
labor
same
to which
use
could
be
put in
producing other commodities and
services.
In other ways,
in Russia
too, the economy j
during the past few dec- 1
promoted an enormous ex¬
pansion of its capital goods indus¬
tries.
For the
meant
people at large this
what may be called forced
saving.
These
vestments
W.
were
capital in¬
naturally made at
the sacrifice of the
consumers
and
particularly of those in the agri¬
cultural areas. Many large build¬
ings were constructed on a grand
scale.
They seem to have been
regarded as ends in themselves,
being built, it is
were
building
who
to
of
covering
the
on
whether
its
the
Dnieper
the admiration of
foreign
many
SO UTH ERN CALIFORNIA MARKET
won
travellers.
construction
justified from
an
can
But
be
economic point
available
Franklin
B.
such
for
have
Brutzkus,
construc¬
make
of complex
extra
the
if
economist,
problem
COS
cellent
is
That
In concluding this reference to
Russia, I should add that this qentralization of economic power in
the
the hands of the
showing that problems of govern-
of advantage to
reasons
such
been
a
war.
Other instances may
government was
(Continued
Russia in fighting
on
be brought
page
1908)
TRINITY 5761
CLAREMONT
R* K Moulton &
Company
MUNICIPAL BONDS
SAN
LOS ANGELES
Wyeth
,'
✓
MEMBER
64
*; •
.
LOS
ANGELES
't-;
v
•»..
»
/ \v?j
STOCK EXCHANGE
STREET
7 SOUTII SPRING
Pasadena
Beverly Hills
THR OUGH OUT
OFFICE S
Los Angeles
New York
FRANCISCO
Co.
&
',
CALIFORNIA
Long Beach
San Diego
HILL RICHARDS & CO.
621
"
san francisco
•
Street,
Spring
South
Members of Los
oakland • san
Los
Angeles
14
Angeles Stock Exchange
jose • long beach • pasadena • san diego
N T
N V E S T M E
private
wire
to
san
francisco
SECURITI ES
TO
MEET
THE
INVESTORS'
A/l;
NEE D s
Bateman, Eichler & Co.
Investment Securities
45 3
LESTER &CO.
Member Los Angeles block
Exchange
-7/r..:/
A Madison 2121/>•./HC
HOLLYWOOD
LONG
BEACH
PASADENA
POMONA
/,
SOUTH
LOS
-
14
621 S. Spring St., Los Angeles
SPRING
STREET
ANGELES
Holly wood
Pasadena
.
42
SANTA
ANA
RIVERSIDE
NORTH
of
the main
Members Los Angeles Stock Exchange
>*
one
why Russia has
formidable force in
at large.
ANGELES 14
REDLANDS
to
provides an ex¬
economy
solution;
Teletype: LA 68
PASADENA
is
economic system serve
economic
ends,
th^n
a
(yMelvenv-Wa&enseller £ Durst, Inc.
626 SO. SPRING ST.
con¬
price.
the
pay
any
planned
standpoint of the people
individual
to
Russian
a
that
states
of doubtful utility
was
the
cases
sumers
very
The
it is clear that in
the war, though
was
workers
ad¬
the
under
deal
great
a
from the
station
While it
for
live
conditions.
verse
tion
houses
had
all, the requirements of the peo¬
ple. The construction of the great
River has
Lewis
Jr.
said, that there
facilities
no
machinery
power
Baker,
of view is doubtful.
while they ought to serve, first of
DISTRIBUTION FACILITIES
G.
large
215 EQUITABLE
GARFIELD
MEMBERS
LOS
ANGELES
STOCK
EXCHANGE
BLDG.
ft
ft
ftft
.
—
ft'
—ft. ftft ftft'
ft/,
'ftV;'
/ ft ft
1908
ft'
ft'-.'ft
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ft'
•
.—
ft/ ft/:
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ft
THE COMMERCIAL & FINANCIAL CHRONICLE
lio
Currency Dilution And Increased Productivity
Key To War Debt Problem ftftft/|l|/
(Continued from page 1882)
time
be
cates
a
limited
supply, indi¬
danger of inflation in the
immediate
greater
in
post-war
than
now,
years
that'which
"During the war saving has
again become respectable and in¬
exists
f
"
deed has been elevated to the po¬
sition of a patriotic duty.
'
"The concept of a mad rush to
cash bonds at the end of the war
"Many people have had their
appetite for saving whetted and
is
something that I myself am not
inclined to accept without consid¬
erable reservation.
ft;.. ft
"The desire to save/to provide
for the future is, I
think, a pretty
basic human instinct and a habit
which very quickly takes root.
"It is true that in the pre-war
years
many
people
either
were
the opportunity of saving
lost the desire to save.
or
are
cept
the conditions of
on
to
its
carry
is
a
nation'^ ability
public
continued
debt
in
confidence
in
to
provide
the
war
ensure
will
years
we
lie to
must
we
and
to
part
of the individual in
processes
it
seems
to
that
me
a
reserve
suggest
of savings can bring.
that
the
desire
can,
in large measure,
jected into the post-war
quarters today.
I
to
save
be
pro¬
IF
we see to it that the act of saving
continues to be respectable and
years
"The assumptions
the
new
point.
employment and social wel¬
ered
only be achieved at the
of
continuing
increases
in
the
indefinitely into
ability to
that the
carry
debt
apart from the whole range
Stock
Exchange
Chicago
Board
deeply-rooted traditions of thrift
of Trade
sary to the attainment of all these
objectives is a high and increasing
national
if
we
assume
the
indefinite
pansion of government debt to be
Telephone-—Michigan
Hollywood
6611
Long Beach
Fontana
Pasadena
Glendale
Santa
(Continued
on page
Pomona
We have
a
first
a
The
second
equally suitable
was
airplanes
regards terrain,
contour, approaches and so forth,
but the soil
in
as
was
fertility
decidedly inferior
when
with
compared
the other acreage.
I do not know
made
was
what
decision
the government.
sacrifice should have
by
no
spared, we would say, in ac¬
quiring the very best aviation field
possible. At present only one con¬
sideration could be paramount. On
the
.other
hand,
circumstances
particular
use
to be made of these
pieces of land, either
case
Georgia Railway Securities
only
as
avia¬
of
impress
our
econ¬
this
incident
it
seriously,
me
did
but
not
since
problem is becoming
there is no longer such a
acute,
Southern Textile Securities
of
food
our
and
one sector
involved and when I first
omy was
heard
Savannah Electric & Power Issues
INVESTMENT SECURITIES
for
aviation
governments have before them all
the time if they attempt to oper¬
ate the economic system.
In this
continuing interest in
Central of
attributes
field.
necessary
class
tion fields, or for the production
of food. In this way a value
prob¬
lem would be posited, such as
1909)
Riverside
Monica
and general
and at the same time it
possessed in other respects all the
crops,
two
Teletype—LA 17
.
pro¬
duction of foodstuffs
might arise under which the gov¬
ernment would have to decide the
to
sort of inexorable and inevitable
'wave of the future' which it is
Hope Street, Los Angeles
prob¬
of land
fertility for the
PRODUCTIVITY. That is the key
the problem of post-war"
debt,
ex¬
a
623 South
in
as
One piece
income, NOT in terms of
high and increasing prices, but in
terms
of
high
and
increasing
sturdy independence.
"But the point is, I think, that
investment securities
rich
was
to acquire
Two opportuni¬
been
neces¬
and
Angeles
recently
themselves
ably suitable.
Certainly
"Basically, the condition
a
philosophy that is almost
grotesquely at variance with our
Membersft
Los
offered
of economic and social
objectives
which will challenge us after the
public
the future.
"It is
aviation field.
an
war.
cost
debt
CALIFORNIA
I suggest to you
without inflation cannot be consid¬
one
locality where it wished
ties
piece of land
matter of the
frontiers remain; and that
can
Some
my attention to a question
which faced our government in a
for
"And this brings me to another
expansion have been reached and
no
in which
problems.
called
the value of savings can be main¬
event the limits of economic
any
private
or
or
1943
(Continued from page 1907)
mental economic control are value
tained.
philosophy are that private enter¬
prise is about played out; that in
fare
Pacific Company
which private saving
underlying this initiative can flourish
•
.
Individual Freedom
ac¬
concept of ever-increasing debt in
peacetime years inevitably implies
ever-increasing taxation, or a con¬
tinuous process of creeping depre¬
that the post¬
give the
then
foresee
progressive lack of interest
"For
foundation for this confidence
shall have to
a
to
that this would involve.
enduring
an
oppose,
of saving and in¬
vestment, with all the economic
and
psychological
consequences
debt itself and in the currency in
"But
to
the
the
the
which it will be repaid.
full
OF
useless
be content
ftftft '.-ft'".'ft-
-
Thursday, November 11,
philosophy of economic defeatism ciation of the currency, or both.
tasting for the first time the which we see
"This is not an atmosphere in
lurking in certain
luxury of independence that only
a
savings will be respected.
"Now that, of course, is just an¬
other way of saying that ONE of
post-war years, without inflation,
denied
even
that
ft'—'ft -ft,—
'
far cry between the need of land
for aviation fields and its com¬
parable utility for the production
of foodstuffs.
ft Savannah Bank
Members Los Angeles Stock Exchange
634
South
Spring
&
the
the
more
government gets in control of the
economic system—and this is true
all
governments
no
matter
how high-minded the administra¬
Trust Bldg.
of
SAVANNAH, GEORGIA
Street, Los Angeles 14
Telephone Michigan 6421
Summarizing,
Varnedoe, Chisholm Cr Co., Inc.
Co.
Morgan
Teletype SVAN 19
Teletype LA 14S
Telephones
tion may be—the more the free¬
of individuals will be cur¬
6174-5-6
dom
tailed.
This is not the result of
the sinister plans of
any particular
group, but it flows from the na¬
ture of the problem which is in¬
volved.
The attempt to supply the
of a state with eco¬
individuals
nomic goods and services is bound
FLORIDA BONDS
Revel Miller & Go.
to end in failure
so far as
satisfy¬
ing the individuals is concerned.
Each
Investment Securities
MUNICIPAL
COUNTY
650 SOUTH SPRING STREET
LOS ANGELES
indication
lead to
ALL ISSUES
sacrificed
Firm Bids—— Firm Offerings—
of
home
after
South
Long Distance 47; 5-3680
-ft
our
The
Dr.
:ft
GROSS
ALBERT
President
E.
VAN
CHRONICLE invites
ST. PETERSBURG
be
addressed
JOHNSON, LANE, SPACE AND CO. INC.
'
ft.
^
-
:
'.'ft
ft
.
.ft
Investment Securities
Nelson Douglass&Co.
510 South
Spring Street
:
Los Angeles
ATLANTA
13
i
,
SAVANNAH
to
Editor,
"Commercial and Financial Chron¬
icle," 25 Spruce Street, New York
COURT
U
com¬
the views expressed
by
Hauhart in this
article, or on
Vice-President & Secretary
Complete Investment Facilities
is
post-war pressure,
have fought for its re-
8, N. Y.
NELS
per¬
There
on
should
Branch Office:
can
any related phases of the sub¬
ject under discussion. Comments
SECURITIES
Members Los Angeles Stock
Exchange
enterprise
democracy.
under
we
ments
Bell Teletype JK 181
JACKSONVILLE
INVESTMENT
Hence, the
establishment abroad.
Clyde C. Pierce Corporation
Spring St.
ANGELES
will
danger lest the democracy which
we prize so
highly will be lost at
Inquiries Invited On Local Securities
LOS
altogether.
free
petuate
639
failure
general conclusion that only a sys¬
Quotations
tem
Gross, Van Court & Co.
of
more
regimentation in the
vain hope that
greater control will
bring about the desired result.
And, finally, the freedom and lib¬
erty of the citizens will have been
DISTRICTS
AUGUSTA
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
in
No
Currency Dilution And Increased Productivity
Key to V/ar Debt Problem
(Continued from page 1908)
productivity
hancement
and
of
which I do not think
been
able
in
the
material
to
we
en¬
welfare
have yet
duplicate
in
the
20th century.
"And if my reading of history
misleading, yet it is, I think, at
least worthy of note that at the
war
is correct, the one thing that dis¬
"I do not think I am numbering end of the great French Wars in
tinguished the period between
myself among the starry-eyed and 1817 England was left with a debt
impractical optimists when I say burden of abbut £850,000,000 as 1817 and 1913 from the years
to you that these objectives are compared with a debt of about which have followed, is that our
not beyond our grasp.
£238,000,000 25 years earlier when forefathers of a century
ago did
"It is idle to ignore the magni¬ the wars began.
For those days
seem
to be able to evolve and
tude and complexity of the prob¬ both the increase in the debt and
lems which the post-war world its absolute amount at the end of maintain something in the nature
employment
prosperity.
and
post-war
post¬
will have to
face, but it is equally
shut our eyes to the tre¬
idle to
the
"Yet in the era of vast commer¬
mendous opportunities for enter¬
cial and economic
expansion that
prise and initiative which the
very
characterized
balance
pre¬
19th century,
of
task
reconstruction
will
sent, to say nothing of the horizons
into
of
the
of
the
that debt was to sink
place of relative insignifi¬
cance.
material
that
progress
still
stretch ahead.
"To look only at
—despite
living
war
this continent
much-vaunted pre¬
our
standard,
is
all
our
housing adequate and up-to-date?
"Are
the desires of the
people
for the material comforts and
con¬
veniences of life satiated?
"Have
we
ventive
that
assume
the
has
which
en¬
achieved
much in the vast effort of
which
in¬
genius of individual
terprise
so
arms
in
engaged will have
nothing to offer for human wellbeing in the days of peace?
"Recently there came into my
we
hands
are
old
an
leather-bound
printed
in
had been then attained, but
also
amount
to about
offered
invention
in
to
1817
which
the
and
1820
meet
commodity prices
was
"As I have said, the
analogy is
by no means exact, but there is
one
lesson in the experience of
the 19th century that we must
take to heart today.
"For within that period there
took place a RELATIVE increase
of
needs
candles
Problems which attorneys, ac¬
countants and corporation execu¬
tives will face in
preparing 1943
concluded
Federal
tax
waste from
'to
re¬
and
discussions
of
heating
hitherto known
or
in use.'
prize of 50 guineas
for a method of 'permanently ven¬
tilating the apartments of hospi¬
tals, workhouses and other
crowded places.'
workable system of economic
internationalism which
ordinary day-to-day
commerce
forever
and
in this
we
processes
of
enterprise will be
pushing beyond
Banks
the
by
000
tures, dated Nov. 1, 1943 and due
Nov.
1, 1944. Both issues were
placed at par. Of the proceeds
$46,060,000 was used to retire a
Division.
J.
undertakings
nations,
small
may
and
great
initiated in confi¬
be
dence and in which
be
of different
men
fulfilled
promises
honor
in
tax
Consolidated
0,95%
deben¬
New
bar
sey
books
may
and
on
a
come
and
author
of
ing.
several
tax
on
problems, will pre¬
a
series of weekly lectures ants and
corporate executives have
functional approach to in¬ attended these lectures in
the past,
taxes.
This
which
according
will
be
New
the
third year in
University has
York
rent
Professor McGhee,
they are intended
to
who states that
for
offered special courses on the cur¬
those
whose
them to have
work
more
than
requires
a
super¬
problems.
Over
450 practicing attorneys, account- ficial knowledge of tax problems.
year's
tax
in
safety.
"The
of
rewards
dazzling.
The
failure
too bleak
are
are
success
consequences
even
to
of
con¬
template."
Dempsey-Tegeler
Co.
&
INVESTMENT SECURITIES
Members
CONNECTICUT
New York Curb
St.
.
\ N
■'
York Stock Exchange
New
407 NORTH EIGHTH STREET
Exchange ( Associate)
ST. LOUIS, M0.
Louis Stock Exchange
Municipal and Corporation Bonds
putnam & co.
Member
;
"
New
York Stock Exchange
Bell
New
HARTFORD 4, CONN.
ST.
Telephone 5-0151
•
System
Teletype—HF 564
York Telephone—CAnal
k
toUIS
MARKETS
.
6-1255
Our
Trading Department Is Active In All
Local Listed And Unlisted Securities
CONNECTICUT SECURITIES
Primary Markets
"If there is
We
Statistical Information
Chas.W. Scranton & Co.
was a
have
achieved
been
these
fields
ciety
Market
we
find it"
can
Edward D. Jones &. Co.
MEMBERS
Members
N. Y. Stock
New
In Connecticut
Exchange
St.
the
Louis
York Stock Exchange
Stock Exchange
Chicago Stock Exchange
Chicago Board ol Trade
for 52 Years
New
300 North
-
advances
a
Specialize In Orders For Banks And Dealers
New Haven
control —what
temperature
Chicago Mercantile Exchange, Associate
York
Curb
Exchange, Associate
4th St.
Saint Louis 2, Mo*
Central 7600
Bell
Teletype SL 593
Direct Private Wire Connections with James E. Bennett & Co. and Josephthal & Co.
in
concerned
alone
since
So¬
itself with im¬
provements
in
tallow
candles, I
stage coaches, and primitive meth¬
ods
of
heating
There is
a
WEBBER - SIMPSON & CO.
ventilation.
and
lesson
in this
for
the
gloomy philosopher of economic
stagnation that is too obvious to
require any attempt on my part
to develop it further. But I would
say this—that private enterprise
has had its play and its perform¬
has been good.
"Looking out into the world be¬
yond us—there are vast areas
scarcely yet touched by the prod¬
ance
Investment Securities
IHAMLIN & LUNT
South La Salle Street
Telephone Andover 1811
MEMBERS NEW YORK STOCK EXCHANGE
ASSOCIATE MEMBERS NEW YORK CURB EXCHANGE
CHICAGO 4
Teletype CG 1268
Brokers and Dealers
in
ucts of modern invention.
"Indeed
there
of the world
are
many
where the
manifestations
of
"Until
industrialism
the
Securities
North Carolina Municipals
Complete Trading Facilities
teeming millions of
yet undeveloped
as
Listed and Unlisted
parts
material
have thus far been only the gun,
the tank and the bombing plane.
the
areas
of
Retail Distribution
the world have satisfied their last
material
desire, I do not think
we
need to worry about lack of mar¬
kets
•
I¥3cDaniel Lewis & Co.
lack of opportunities. Nor
do I think that as nations we need
to
a
Marine
Trust
Co.
Bldg.,
Buffalo
or
start
easily
as
was
during
October
by
Charles R, Dunn, New York fis¬
cal agents for the banks. The fi¬
nancing consisted of two issues
viz: $28,345,000 %% Consolidated
debentures, dated Nov. 1, 1943
and due Aug. 1, 1944 and $28,575,-
McGhee, Acting Director of the
sent
interna-|
tional boundary lines—a world in
"Lighting,
speedy
and
safe
transportation, a i r - conditioning
and
given
Federal
rooms
superior to and cheaper than any
"There
be
Credit
of two
the
And Invites Your Inquiries.
method
a
to
for
com¬
"Thirty guineas were offered 'to
the person who shall invent and
discover to the Society a method
for preventing accidents arising
from stage coaches,' while a sim¬
ilar sum was dangled before the
eyes of 'the person who shall in¬
vent
be
offering
issues
Dec. 27, according to Prof. Paul A.
use.'
mon
will
successful
Intermediate
the New York University Division
of General Education
beginning
the sparkling or
guttering of the candles in
returns
A
subject of two series of lectures
Insurance, Utility and Manufacturing Stocks
of
prize of 10 guineas
of improving the
tallow
debenture
HARTFORD
stimulate
to
the
in
one
trend of
downward.
Are Offered By NYU
the unpleasant consequences
move
and
was a
method
a
was
a
which, between
6 CENTRAL ROW
''There
wicks
1913
long-term
1821,
the day.
for
£706,000,000.
"Moreover, the whole period be¬
"The
book
contained, among
other things, a list of prizes, 213
of them, which the learned Society
had
it had
absolute
in
reduced
been
FIG Banks Place Delis.
vol¬
entitled
'Transactions of the Society, In¬
stituted in London, for the En¬
couragement of Arts, Manufac¬
tures, and Commerce.'
ume,
"By 1913 not only was its1 car¬
rying charge negligible in rela¬
tion to the national income which
tween
production methods
reached the stage of perfection
wherein no further improvement
is possible?
our
"Must
a
Federal Tax Courses
K. Lasser, nationally known
authority and Chairman of
York University's Institute like amount of debentures becom¬
century have not yet been able to on Federal Taxation, will conduct ing due Nov. 1, 1943 and $10,860,000 was for new money purposes.
a series of 10
weekly meetings on
achieve.
the general topic of excess profits At the close of business Nov. 1,
"It will be our task to endeavor
taxes on corporations, while David 1943, the banks had a total of
to rebuild a world in which the B.
Chase, member of the New Jer¬ $285,355,000 debentures outstand¬
of
period appeared staggering.
1909
Telephone: Washington 4035
Greensboro, N. C.
Bell Teletype
eyeing
each other un¬
post-war competitors in
restricted world.
"Historical
parallels
are
often
McDaniel Lewis
S. A. McFalls
Private wire
BU 145
to
^
f
Branchesi
Rochester, N. Y.
Norwich, N. Y.
Kidder, Peabody & Co., New
York
*
1910
THE COMMERCIAL & FINANCIAL CHRONICLE
Dealers
Virtually Unanimous In Condemning
PRIMARY MARKETS IN
Incorporated by Royal Charter
(Continued from page 1873)
Huff, Geyer & Hecht
New
York
Wall
67
10
Street
WHitehall
NY
Boston
5
Post
Office
HUBbard
3-0782
S.
135
Square
Salle
La
FRanklin
0650
with these clients is based
success
his knowledge,
Street
7535
His
clients
LOUIS,
ANGELES,
LOS
NEW
TELEPHONES
PROVIDENCE,
time
SEATTLE
AND
of
7008
Enterprise
Doesn't the dealer incur
recommendation?
a
3
Doesn't
that
a
risk every
involve
risk
8 West
64 New Bond
TOTAL
By E. A. VAN DEUSEN
long-term investment characteristics and advantages, rather than in
dividends, would do well to keep an eye on "earning yield"
rather than "dividend yield."
Furthermore, he should pay some at¬
current
consolidated basis as compared with earnings
on a parent company basis, and also give some thought to the rela¬
tive desirability of the stocks ofA>
;
"
:
companies which own subsidiaries sentative fire insurance stocks, on
tention to earnings on a
and of those which do not.
tabulation shows
annual
net
operating
The following
averaee
g^i^ted basis, together with com-
'.j
,
.
,
pansons of dividend coverage
earning yields:
Earnings per share over the eight
1935 to 1942, for 19 repre-
years
parent company basis vs. con-
a
Parent Basis———•
Consolidated Basis——
Earn¬
Asked
Net. Op. Div. Cov-
Price
10-30-43
'•
Aetna
$57 '/a
-
Agricultural
1.95
7.6
5.81
1.81
7.1
2.27
8.1
1.23
2.15
7.6
34.45
6.9
2.04
41.80
1.68
5.9
1.97
7.5
2.87
3.98
2.12
7.9
2.94
1.56
5.8
4.86
1.94
6:8
4.58
1.83
6.4
45
Falls
3.64
50 Vi
3.17
1.98
6.9
2.04
7.4
2.01
1.26
1.38
3034
'% 2.28
101 >4
8.28
3.60
8.2
33 V'a
2.14
.7 1.31
6.4
1.95
Insurance Co. of N. A.
86
5.90
2.22
6.9
4.24
Fire—-
62 V2
4.90
2.45
7.8
Hampshire——
4034
2.83
1.62
5.7
9034
5.56
2.02
6.1
r
1
J.
Hartford
National
New
-—
Phoenix
Washington—
& M.—in¬
Prov.
Paul F.
St.
2.12
2.63
2.22
10.09
Springfield F. & M._
131
-
2.12
1.20
1.94
.
___
'i'
Liability
on
4.5
services, he must do a great deal of study and analytical work in order
to improve his technical
knowledge, yet, he actually gets no pay until
than 5%
is 2.15 and earning yield
7.2%, compared with
5.7%, respectively, on
6.6
1.87
15.14
4.9
1.84
2.41
1.72
9.08
6.2
7
1.91
>
6.9
5.7 %
$1.68
solidated"
1.31
dividend
The
3.60.
earning
is
of
5.7%
Circular
on
Request
On
Laird, Bissell & Meeds
"parent" basis Home again
a
Members
has the lowest dividend coverage
of 1.20 and American the highest
130
Glens
for
Falls
and
Stock
Exchange
Telephone: BArclay 7-3500
2.15, with Hartford a close sec¬
ond of 2.04. Lowest earning yield
4.4%
York
Bell
L.
Teletype—NY
1-1248-49
A. Gibbs, Manager Trading Department)
the
to
now
have
no
operating earnings again
the
average for the eight-year
annual
are
period 1935 to 1942.
ind
Kindly do not
want
to
commend
you
article pertaining
your
Thursday, Oct. 28th.
*
•
rule to be adopted as serious
.
to
the
members who
the
-'
*
&
''J:
that the Na¬
news
Co., * * * & Co.
such idea. We
FULLY
a great many other concerns who took from 12 to 15%
bonds plus bonuses of
stock, etc., in the 1920's and made large for¬
sit
can
back
307b 1
1.85
1.37
6.0
good but
1.60
1.14
5.3
customers
1.39
1.64
Brunswick
New
Northern
North
U.
S.
2.52
—
.A '
—
95
8
Fire
1.46
:
3.81
1.90
Average 7—P.
It
will
$1.54
that
be noted
the
aver¬
dividend coverage for this
group is 1.54, compared with 1.68
for the larger group on the "par¬
age
ent"
basis
and
2.15
on
the
"con¬
solidated" basis;
Average earn¬
ing yield is 7.2%, the same as the
"consolidated" average, but higher
than
the
"parent"
'average
of
5.7%.
The
tistics
significance
lies
in
the
7:
of
fact
these
that,
sta¬
over
plotted
on
a
well known and it takes considerable effort to sell
are not
small
graph
whole
movement
It seems to the writer a very
short-sighted policy in as much as
interest rates may again be very different from what
they are now
and the necessity for capital
may be such that corporations may be
stock
the
as
of
the start of the
few
mit
perfectly willing to
prise.
period, a high de¬
found, with
exceptions, such as to per¬
a
definite upward
trend-line
to be drawn
through the scattered
groups of 29 points. For example,
Continental and Fidelity-Phenix
had the two highest "consolidated"
earning yields at the 1938 low, of
16.5%
and
pay
5%
or
even
(Continued
on
8.0%, and its market appreciation
was
also the lowest,
being only
17.1%.
Between
these
two
ex¬
tremes the relative market appre¬
ciation of the other 16 stocks have
been
approximately proportional
earning yield with remarkable
consistency.
Another point of interest is that
respectively;
reasonable investment periods, the their market appreciations to
Sept.
relative appreciation of individual 30, 1938 have also been the
high¬
the market appears to favor the
stocks during a sustained market est, viz: 124.4% and
112.8%, re¬
stocks of companies which have
advance is approximately propor¬ spectively,
compared
with
an
tional to relative earnings.
over
those
which,
Thus, average of 55.7% for the 19 stocks subsidiaries
,when the percent market appre¬ which have "consolidated" earn¬ have none. Again, there are some¬
times
exceptions.
The
average
ciation of each of the above 29 ings.
The stock with the lowest
market
appreciation of the 19
stocks, from the 1938 low to the "consolidated" earning yield at
"consolidated"
stocks
from
the
recent
high of Sept. 30,
1943, is the
1938
low
was
Boston
with
CAPITAL
King
1
Cairo
£3,000,000
£3,000,000
AGENCY
William Street,
in
Towns
and
all
the
£.
C.
the
in
SUDAN
NATIONAL BANK
of INDIA. LIMITED
Bankers
Branches
the
to
Kenya
Head
Government
Colony
and
In
Uganda
Office:
26, Bishopsgate,
London, E. C.
in
India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Subscribed
Capital-£4,000,000
Capital
.—£2,000,000
Paid-Up
Reserve
The
Fund
Bank
-£2,200,000
conducts
description
every
and exchange
Trusteeships
and
of
business
Executorships
also undertaken
10% to obtain money for enter¬
4"
page 1914)
•
Pittsburgh Rys. Look Good
The
current
situation
in
Pitts¬
burgh Railways System, particu¬
larly certain of the underlying
bonds, offers attractive possibiliburg first 5s of 1932; Second Aveties for
to
16.9%,
No.
\
V
gree of correlation is
a
A.
Cairo
principal
looks
the country,
against
7
banking
5.7
7.2 %
"earning yield" of each
and
amounts.
7.3
:
Office
Register
FUND
EGYPT
like Fascism, to enable the large
houses to monopolize the business and eliminate the small
houses in
8.8
1.46
C.
Bank*
mendous volume of business which
This
7.2
1.77
p
&hei«
E.
with
Branches
their
8.4
1.52
8.40
255a
—
River
'
Street,
the U. 8.
LONDON
(names of firms deleted, by
Franklin
■
PAID
RESERVE
how
can see
7.9
ri6%
Commercial
Editor) and
tunes
in
OFFICES:
6
the item of
7.8
Earning
investor!,
to
interested
of EGYPT
Dealers, Inc., with the SEC would
*
service
arrangements
Head
It might be a good
1.44
——7.p
in
complete
NATIONAL BANK
are
DEALER NO
like
most
Berkeley Square, W. 1
/.* throughout
1.81
Homestead
over
as
1.81
7.5%
———
With
Australia,
ones
The financial papers are
carrying
tional Association of Securities
houses
banking
Threadneedle
Agency
this, the Associa¬
supporting the NASD should be per¬
mitted to vote on such a drastic regulation.
Unquestionably, the majority of NASD members do not have to
be told what to do, or how to do it, they know what is fair and what
is unfair.
Naturaily, the NASD was formed and has the support of
are
the
travellers
and
29
NO. 5
on
offers
it
LONDON
1.61
Yield
$1.34
Hanover
of
countries.
if you publish our comments.
use our name
23V8
Coverage
SI.58
...
States
efficient
2038
Div.
Earnings
$21
_.——J——;
all
traders
City of New York—:..
Camden
in
and
we sincerely hope that you can finish it. We have written a
lengthy letter but we wanted to cover our thoughts on the sub¬
today and make splendid profits due to the tre¬
they are able to handle through
large capital.
Smaller houses, however, who make sales to
small buyers would be just out of luck because certain stocks
may be
Net Op.
10-30-43
Equitable
largest bank in Australasia.
branches
fight and
on
Asked Price
Am.
George Street, SYDNEY
Che Bank of New South Wales Is the eldest
London,
opposes any
companies
subsidiaries, the
following table is of interest. Net
Turning
Office:
ind
limit the mark-up on securities to 5%.
Our organization
strongly
highest is 7.6% for American.
which
£150,939,35*
DAVIDSON, K.B.E.,
Manager
Zealand, Fiji, Papua and New Guinea,
BROADWAY, NEW YORK 5, N. Y.
of
is
New
Head
idea, and within the realm of possibilities that lobbying be done in
Washington to throw out this NASD business.
Legitimate dealers
have no fear of the SEC.
Therefore, why should we be policed by
the NASD and have to pay for it in the
bargain?
Hampshire and the highest is 8.2%
for Hartford.
ALFRED
30th
New
pay dues for and then get this kind of treatment.
New
for
6,150,000
8,780,000
£23,716^000
"
General
170
help.
Unquestionably, 90% of the security dealers of Chicago feel like
the writer does and they are up in arms and want to know what we
Company
highest of
SIR
attitude of police officers and
being a hindrance instead of a
"consolidated"
lowest
yield
coverage
the
Hartford
and
£8,780,000
Aggregate
Assets
Sept., 1941
more
just and fair in all their dealings.
Therelore, let the NASD go after any members who might be on the
"shady" side instead of trying to push through a rule affecting the
majority of the members, who in reality need no policing.
I think it is high time the Association devote its
time, money
and energy to helping, the security dealers instead of
adopting the
Securities
Home has the lowest "con¬
basis.
Is he not therefore entitled to make
'
1817)
of Prop.
'
-
the only source of income which he has?
The whole situation boils down to the simple statement which
was made in the article that the vast
majority of small dealers cannot
survive with a 5% limitation of profit.
You have started a good
on
Certainly, in a
tion members who
Christiana
1.68 and
"parent"
a
(ESTABLISHED
.
the financial
corporation officers to keep
abreast of developments.: All of this consumes valuable time, adds
to the effectiveness of his service, but for which he receives no direct
compensation.
Furthermore, he must subscribe to the best statistical
he SELLS A SECURITY.
BAiiToF
NEW SOUTH WALES
on
NASD in your issue of
solidated" basis average dividend
coverage
underwriters in
and
He calls
on every
47
"con¬
a
brokers
centers to check securities.
those
It will be noted that
to
DEALER
5.3
1.49
7.2 'Jo
$2.15
Reserve
personal visits
We
'
Average
Fund
ject.
6.2
1.50
9
2.59
7.7
makes
Reserve
year,
Ltd.
New Zealand
Paid-Up Capital
a
advising the client
Australia and
aspect and problem
of his investments, for which he receives no compensation.
He may
collect coupons, he may ship bonds for payments, he must keep accu¬
rate record of what transpires in the affairs of each and every corpor¬
ation in which the client holds securities, he must keep the client
informed continuously of how his securities are progressing.
He
4.9
4.09
!.
He may have scores of interviews with a client during
of
course
Bank,
dealer
fact that the
5.8
1.59
2.63
8.0
purchase..
the
Deacon's
Glyn Mills & Co.
going to be compensated for this work?
income from the client unless he actually makes a sale or
4.6
2.04
3.88
7.0
3.10
385s
£
4.71
7.5
2.93
21.70
393'8
311
-
*
security
a
no
Associated Banks:
Williams
5.0
Home
Great American—P
7p
4.4
1.54
•\
receives
ASSETS
rather
5.7
1.53
71
P
____
Association
Glens
4.9%
48 Ti
Continental
Fidelity-Phenix
Fire
$1.65
$2.80
6.7'/*
$2.25
Yield
1.30
605
Boston
erage
6.24
\'b
16
-
Earning
Net Op. Div. Cov-
Yield Earnings
erage
$3.83
82
_
American
Earnings
ing
dealer
a
The seriousness of the situation lies in the
insurance stocks who is interested in their
The investor in fire
How is
Street, W. I
£108,171,956
security at any
price not reasonably related to the current m&rket price of the secur¬
ity."
Does this interpretation adequately consider the tremendous
amount of research work which may have been done before a certain
security was recommended to a client as the best for their require¬
ments?
Smithfield, E. C. !
Burlington Gardens, W. /
his
to enter into any transaction with a customer in any
This Week — Insurance Stocks
OFFICES:
Charing Cross, S. W. I
inconsistent with just and equitable principles of trade for a member
Bank and Insurance Slocks
throughout Scotland
Bishopsgale, E. C. 2
49
Might there not be a fundamental weakness in the interpretation
by the Board of Governors which says: "It shall be deemed conduct
7008
Enterprise
he makes
OFFICE—-Edinburgh
LONDON
rather
a
reputation and his future business with that client?
TO
PORTLAND,
fiOU
Enterprise
HARTFORD,
CHICAGO,
BOSTON,
YORK,
FRANCISCO
SAN
liis experi¬
upon
1727
his perspicacity
become
securities become "riskless"?
ST.
CONNECTING:
SYSTEM
WIRE
PRIVATE
entirely
in choosing the right secur¬
personal property nature be¬
cause they depend
entirely upon the dealer for their financial advice.
By the nature of such a relationship does the recommending of any
CG-105
1-2875
Branches
ence,
ities.
3
Chicago
9
HEAD
fully and intelligently recommending to them the securities which, in
the judgment of the dealer, were best suited for their purposes.
The
dealers'
1943
Royal Bank of Scotland
NASD Profit Limitation Decree
STOCKS
INSURANCE
Thursday, November 11.
1938
low
to
Sept.
30,
1943
was
55.7%, whereas for the 10 stocks
with
appreciation, according to
a-study prepared by T. J. Feible-
subsidiaries, the average
appreciation was 26.2%.:
An ex¬
York City.
ception in this group
ing
no
was
Frank¬
&
man
Co., 41 Broad Street, New
Copies of this interest¬
which is available to
study,
lin which appreciated -35.8%.
The
in
investor
fire
stocks,
dealers
only,
may
be
request
from
T.
Feibleman
should
Co.
prospects, of leading companies in
the field, and put his
money, other
on
.
study carefully the earn¬
ing history, as well as the earning
Also
available
J.
are
had
upon
&
memoranda
Oklahoma-Texas Trust: Pitts¬
factors being equal, where he can
buy the most earnings, rather than
burgh, Canonsburg & Washington
dividends.
burg
ord
he
run,
sults.
According to the
should
then,
in
the
rec¬
long
obtain better investment
re¬
5s of
nue
1937; Washington & Canons¬
5s
of
1932;
Traction 5s of
Second
Ave¬
1937; Southern
Traction 5s of 1950; Ft. Pitt Trac¬
tions.
Volume
Number
158
THE COMMERCIAL & FINANCIAL CHRONICLE
4228
Churchill Sees
OFFERINGS WANTED
We
of
interested in
are
large
:
or
Europe
We offer,
1911
subject:
offerings
small blocks
(Continued from page 1871)
as "one
of the prime
Dominion of Canada
Germany
of
of
causes
the
With
4% Bonds due October 1, 1960/50
extending ruin of
Hitler regime."
the
Real Estate Securities
respect
:
to
France,
Price
H0V4 and interest
yielding 2.37%
the
Prime Minister said in part:
"There
>,
are
thoughts
Seligman, Lubetkin & Co.
•v;'
York Security Dealers Association
French
which
teres!
in
investing capital has taken J
real
estate:
of
|
of Sales
''January
!
Dollar
Number
-
.
Month-—
April S
will
France
June
of
•'
been
2o!ooo'ooo.
show
years
TRADING MARKETS IN
years,
volume
a
with
certain
peaks for
shown
as:
States, Mr. Churchill concluded:
"A strange coincidence, but I
am
sure I speak for all those on
peak
of
the
SHASKAN & CO.
Members New York Stock
are
another
months.
40 EXCHANGE PL., N .Y.
Bell
heat
give
ket
and
said in one coun¬
which are provo¬
clumsy,
indis¬
and
un¬
We have
full to the
in
that is
the
thought
all
dominate
our
also the happi¬
generations de¬
but
war
future
upon
of
the fraternal associa¬
Britain
Great
and
enough to advise purchase of
prejudice
to,
the
larger
stocks.
structure
that
will
be
the
secure
ments
the
hold.
now
Now
everybody
theorized about why the
has
mar¬
ket broke down, I think I may
be permitted to add a few
the
and
Lord
its
recall
pile.
You recall
Halifax
statement
implications that the
war was
about
my
was
the action of
a
handful of
| specialties in the face of what
that
ideas to the
kind of sell-
over.
You also
comments
on
his
prognosticating abilities. But
hardly were the words out of
his mouth than Herbert Hoo¬
peace
came
ment
out
along the
with
a
state¬
with
more
than
Nu
Enamel
-
possibilities
cular
sued
41
offers
did
not
think
it
definite
had
the
firm
upon
controls
most
this
column
against—the specialties
—melted like
snow
in the hot
-
,'v..
:
■-A
month. And the stocks
tively.
cannot
be
relaxed
after the final
even
Germany and Ja¬
of
79
managed interest rates.
we
have
come
revert
can
to
How
what
to
consider
as
a
we
nor¬
mal
peacetime economy does not
appear to be an immediate prob¬
lem.
In the general scene of weak¬
and uncertainty it was en¬
couraging to investors in Cana¬
dian
securities
of
the
to
weather
this
see
market
once
its
ability
successfully
critical
period.
sec¬
more
It
to
ing
exception
subsequent
will
be
in
was a
the
decline
re¬
strik¬
general
in
other
markets.
There
interest
ity
is
will
and
be
that
from
commun¬
discriminating
more
will examine
carefully
of securities in the light
likely
behavior under
the status
of
little doubt
their
peacetime
issues
With
re¬
gard to Canadian external bonds,
in addition to the growing scarc¬
ity of supply, a large proportion
unusually
quiet and the Canadian dollar in
of
10
at
is
of
optional
pay¬
Canadian dollars
Sterling.
The
nearer
the
between
limits
narrow
10%%
discount, thus
end.
whole,
that
now
the
as
Fifth
Victory Loan is terminated, and
preliminary results indicate
outstanding
success,
shortly begin to
see
an
would
we
greatly in- "y
creased activity with an upward
trend of prices.
I!. B. Gersfen Joins
Hetflemaa Go. Staff
Hcttleman
& Co., 52 Wall St.,
City, announce that
Henry B. Gersten has joined their
York
organization
the
is
and
in charge
of
trading department.
N. W. EL
of the
end
war
Interesting
Leason &
Co., Inc., 39 South La
Street, Chicago, have pre¬
Salle
pared
memorandum
a
mortgage 5%
vated
in
moved
With regard to the market
garded
or
and
an
1941
or
market
confirming the view that the ex¬
change weakness caused by the
recent bond redemption is almost
of issues have the hitherto disre¬
feature
were
were
more
conditions.
ment in U. S.
and
102Mi.
Internal
New
the investment
on
respec¬
highly
a
called that following Pearl Har¬
bor also the market
80
Calgary Power 5's of 1960
attracted
a
ness
quoted
were
and
comparatively
soon
less active
were
free
request.
warned
sym¬
side
the
now
which
certain
a
Albertas
and the 4M>'s and 5's
the
Street, New York City.
of this circular may be
from
develop¬
at 90 Me.
either
Until the government debt
a
ing
of
the
the first
Sept.
Northwestern
Railroad
the
on
bonds due
1,
Ele¬
Company, outlin¬
proposed
treatment
of
these bonds under the Unification
urgent
of currency
stabilization.
This unique multi¬
ple pay feature of the large pro¬
and the proposed Municipal Own¬
portion of Canadian securities
son
approached,
the
more
becomes the problem
likely
therefore
tremely
future.
to
become
important
It is all the
in
the
more
is
ex¬
near
ership Plans.
Copies with dealer's
imprint will be supplied by Lea&
charge
cago
Co.,
on
Inc.,
at
a
nominal
request—ask for "Chi¬
Tractions
under
Municipal
interest¬
Well, if past ing because this advantage can be Ownership."
performance can be a yard¬ obtained without payment of pre¬
stick, the market should ex¬ mium, and, at the same time, the
from here on?
tend its
so,
rally to about 134 or
then either go into a de¬
cline
or
turn dull.
But, there
is still another factor the
mar¬
held at the old 136 figure. The
many a
current
of
bond
basically
materially reduced, it will be
imperative to continue the policy
Broad
Copies
be
is
cir¬
discussing this situation is¬
by T. J. Feibleman & Co.,
to
ket has to cope with—infla¬
signal for the decline, how¬ tion. That
Congress is infla¬
Two weeks ago I wrote here
ever, had already been given
tionary-minded is no secret.
that the market looked all
by the rails.
The farm bloc is in the saddle
#
-i*
right but the action of the
and, oddly enough, the inter¬
steels would have to confirm
Monday saw the first two ests who should fear inflation
it.
But while I
thought the million-share day, late tape
most, are helping them along
underlying trend pointed up and breaking markets, in under the
guise of heading off
I
not
by the
outside
pan.
interesting
according
clearly becoming a poor sun.
The
old
135
figure,
technical general market per¬
everybody expected would
formance,
I called attention
stop the decline, didn't even
to
the dangers inherent in
get a nod. At the end of that
such stocks by calling them
day the first margin calls in
| ''one-way affairs." I warned a long time went out.
that any accident can break
Yesterday's
market
con¬
them down and keep them
tinued its improvement, but
down long enough to create
the fright caused by Monday's
a virtual lock-in of accounts.
break was too real for any fol¬
Hardly were these words in
low-up by the mass and file.
print than the dangers warned •t'v;
;:v;.
sj:
y;-:- ®
H'
against here materialized.
Now what about the trend
.
casual yawn.
Government
defeat of both
Nu-Enamel Interesting
'
a
the
tion
was
^
'•
lines. If
you remember 1930-33 then
Last Friday the rails which
you also remember Hoover's three weeks
ago I pointed out
batting record. His prosper- as
having a top-heavy public
ity-is-j ust - around - the - corner
following, broke through their
blurbs are too fresh in
my
September-October lows. The
mind to accept his
opinions industrials also declined but
same
Government
immediately
and freedom of
•
ver
continued to be ab¬
sorbed without
time
to
;
I
By WALTER WHYTE
a
ing I didn't care for at all.
j What was equally significant
and Quebecs
bid at
world
erected
to
demonstrate
j were meeting
sub¬
still
ation
1S1I111I!
mar¬
recent
pathetic temporary reaction. War¬
mankind."
points. Monday's lows should
extent;
should
affected
Last week the market situ¬
changed radically. The
g r a dual
improvement, I
thought I saw, seemed to hit
Market
break
no
surprise. a stone wall. The steels, for
Steels signalled it last week. which I had hopes as the log¬
ical leaders in any advance,
Look for rally to carry few
permeatea<*>-
even
shown immediate
market
United States within, and without
•Says
some
especially
of
only the fortunes of this
of
ness
tion
Walter Whyte
to
scriptions
mind
our
must
pends
Tomorrow's Markets
weakness
had
bitterness.
or
task
! fearful
'
This
in the post-war period, and the desire to
speculative holdings.
more
the U. S. Government bond
who
malicious
even
or
"Not
Dlgby 4-4950
liquidate the
they
speech and action.
Teletype NY 1-953
which business will take
Atlantic
are
which
Exchange
Exchange
markets generally has been
on
thrust pertinently before us during the past week.
Investors now
must do some fundamental thinking.
Naturally, the Stock Exchange
weakened on the general uncertainty as to the particular course
thing—and
the
same
things
or
vast
1938 through 1942
'
sides
mean
to
-k
By BRUCE WILLIAMS
The issue of the effect of peace
affecting the price
issues level.
Activity in British Columinteresting bias subsided but the market was
are
numbered in scores of mil¬ profits and Stock Exchange houses slightly firmer; the 4l/2's of 1956
lions—when I say that our su¬ had been encouraged to increase were quoted on 3.25% basis.
their subscriptions in the Third
Nova Scotias, New Brunswicks
preme duty, all of us, British and
Americans alike, is to preserve Victory Loan drive.
Consequent¬ and Manitobas were still in de¬
the
good will that now exists ly, Government issues in some mand and the longer term issues
throughout the English-speaking volume were included in the gen¬ now yield 3%%, 3.65% and 3%%,
world and thus aid our armies in eral Stock Exchange liquidation. respectively. Saskatchewan were
their grim and heavy task.
Otherwise the high-grade and quiet with the 4V2's of 1960 offered
both
out
have
erratic
very
+
hateful
most
bondage."
there should be no angry
rejonder.
If facts have to be
stated, let them be stated with¬
SECURITIES
jc
Canadian Securities
their
true,
REAL ESTATE
Members New York Curb
trend
The
and
the
human
creet
2 1 000 000
fairly consistent while for¬
mer
are
sales
from
cative, which
these figures show a very healthy
as
take
election
"If
23,000,000
comparison to former
presently
Teletype NY 1-920
at
noting that the year 1944 is
year in the United
also
try
250
trend
16,000,000
19,000,000
325
July
'August
17,000,000
225
—
14,000.000
275
——
'
325
_
;
"2,000,000
275
In
19,000,000
250
$10,000,000
275
—
14,000,000
_
In
210
1939—
1941.1
15,.000,000
325
:
May
Volume
1938
$7,500,000 ! 1942-
250
:
Dollar
of Sales
j 1940
Volume
200
March
Number
Year—!'
150
February
—
—
Peak Month of
Committee
share in the liberation of the soil
from
indication of the increased in- ^—-—;
National
Street, New York 5
Bell System
and re-armed in North Africa and
forms
an
I rejoice
power
of the French
armies wihch are being re-created
figures released by the Real
Estate Board of New York, Inc. is extremely interesting in that it
shows how sales activity in Manhattan Real Estate nr 1943 has far
exceeded figures for previous years as far back as 1938.
Unfortunately space does not permit the reproduction of this
chart, but the following figures of various months of 1943 will give
compiled
Incorporated
14 Wall
growing
And Number Of Sales
recently
Wood, Gundy & Co.
Algiers, and I also rejoice at the
Figures Compiled By Real Estate Board Of New York,
Inc., Show Large Increase In Dollar Volume
chart
that
in every increase of unity and
consolidation that I notice in the
Real Estate Securities
A
our
true
:We
Europe and the world.
HAnover 2-2100
Street, New York 4
in
hope
again to
many
rise
will
greatness and will play a worthy
part in shaping the progress of
Incorporated
Members New
41 Broad
France
today.
.4!
$250,000
War Climax In 1544
(Continued
on page
1914)
securities
themselves,
which in¬
guaranteed,
provincial and municipal issues,
offer attractive yields and would
provide welcome diversification
clude
for
a
the
We
specialize in
Dominion
considerably wider invest¬
CANADIAN
Government
-
Municipal
ment field.
Corporation Securities
Turning to the market for the
past week,
although therp
was in¬
creased activity, it was still dom¬
inated by Fifth Victory Loan ac¬
tivities.
a
Direct Dominions were
shade easier with the 3's of 1958
offered
at
103%.
Nationals
were
quiet and steady with little change
in
price.
Offerings
of
Ontarios
H. E. SCOTT CO.
49
Wall
St., New York 5, N. Y.
WHitehall 3-4784
Tele. NY 1-2675
msmm
«
,y
THE COMMERCIAL & FINANCIAL CHRONICLE
1912
Municipal News
UNION BOND FUND "A"
,
UNION BOND FUND "B"
In
UNION BOND FUND "C"
last installment of the $81,000,000
relief
indebtedness
accumulated
STOCK FUND "A"'
UNION-COMMON STOCK FUND "B"
prior to adoption of
UNION FUND SPECIAL
relief
you-go
Prospectus covering all classes
of stock on request
Guardia
the
policy
pay-as-
the
of
administration
La-
late
in
1934, City Comptroller Joseph D.
McGoldrick stated that "no better
Lord, Abbett & Co.
demonstration
INCORPORATED
63 Wall Street, New York
CHICAGO
Mr.
LOS ANGELES
JERSEY CITY
of
the
of
wisdom
this policy could be found than in
the story of this indebtedness."
McGoldrick
charted
the
tory of such borrowing, in
ment
his¬
state¬
reproduced
which, is
a
here¬
with:
Investment Trusts
From Investment Company
Sept. 30, 1943,
*
$11,534,-
were
<$>——_____
.
Inc.—
Sept. 30, 1943. Net asset value
per share on that date was $20.91
compared with
31,
1942.
Net
ended
showed
a
$16.12
in
30%
decrease
Ask your
date.
for
General
Investors
value
a
major
elements
relief
frequently halted
city's inability to
the
unable
was
Investors—As
of
increased, in this period,
$19.82 per share.
from $13.39 to
DISTRIBUTORS
GROUP#
eased in 1933 by the negotiation
Incorporated
$70,000,000 loan in the form
a
of 10-jear serial bonds. But this
in itself
WALL street-new york
63
was
no
million
the
plicable-to
Common
Stock.
figure was equivalent to a
price of $3.47 per share of
the
in
1933.
Stock
compared
with
$2.19 at the beginning of the bull
simply oould
of Series "Kl" Fund at the fiscal
market, April 28, 1942./
debtedness
would
ultimately
destroy
Custodian
Funds,
■■
ended Aug. 31, 1943 totaled
$6,757,216 compared with $3,367,-
i-
year
earlier. Net asset value
share advanced from $11.53 to
$15.22 during this period.
per
"B4"
had
net
assets
of
compared with $9,542,041 on Feb.
28, 1943, the date of the last prev¬
report.
During this
seven-
month period net asset value per
share
increased
from
$8.21 v to
v
;V Cv
Net
amounted
of
Series
riod net asset value per share de¬
clined
slightly from
$23.78
$23.64.
to
V
Combined assets of the ten Key¬
Funds stood at a new
stone
of
high
$64,500,000 on
approximately
Nov.
2, 1943, compared with ap¬
proximately $41,000,000
a
year
ago.
*
Massachusetts Investors TrustNet assets
on
Sept. 30, 1943 totaled
$140,622,549, equivalent to $20.64
per
share
compared
per
share
on
the
with
$15.62
corresponding
date last year. In the three-month
period ended Sept. 30, 1.943, shares
outstanding
reach
shares.
Fund
increased 52,648 to
high total of 6,813,108
a new
Net
asset
value
of
the
during this period declined
less than
$27.48
per
*
#
Capital
*
•
/•; / : ■ ///
Administration
of
Preferred
share of Class A Stock.
Stock
and
$14.20
7
sets
4s
;s/
General
Net
Capital
assets
■
amounted
$31.54
ing.
per
{
amounted
V'
••<
?
•
to
share
30,
1943
$5,947,293, equal to
share of stock outstand¬
with
compares
asset
value
of
a
tax¬
for relief
ness
the
But
$81,000,000 total accumulated
.*•/
The
interest.
I
*
if
America—Net
$3,737,367,
of this administration. I know of
other
assets
as
of
stood
$22.66
at
per
Sept. 30, 1943.
This
compares with a net asset
value of $17.84 per share on Dec.
31,
1942
and
$16.48
share
per
a
v
*
sjs
ration—Net
asset
in
this
Share
value
Corpo¬
on
Sept.
30,1943 totaled $8,488,800, equiva¬
lent to $23.58 per share of
capital
outstanding. This compares
stock
with net asset value of
$23.81
per
basis.
tax-supported
sound
This
has
been almost the keystone of the
reestablishment
of
this
unemployed
long
dufing
par
value
equally
nomic
activity
downward
Collateral
Se¬
important
Stocks, amounted
to
$916,537
ap-
a
larger total taxable pay¬
paid out in benefits during
$487,000.
months of
During
months
aggregating
1943
the
Tennessee
and
quarterly dividend of $1.00 per share,
six
payable December 10, 1943, to stock¬
holders of record November 19, 1943,
benefits
spiral
of real
the
(when
reserve,
,paying* unemploy¬
compensation benefits to in¬
employees of covered Ten¬
over
The
June
$5,500,000
Taxpayers
the
report
Association
covering
it?
12th
in
nual
survey
an¬
of the State govern-
30,
hand
on
on
063,000.
-
•
Existing Debt Burden
Obstacle to
I DIVIDEND
Highway Programs
Advocates
of
COMMON
large-scale high¬
for the
way construction programs
post-war period
American
are
reminded
Petroleum
that
five cents
Indus¬
official
organ
no
that
there
of
magic in build¬
is
dividend of seventyper
share
on
stock,
common
the out¬
payable
December 14, 1943, to stockholders
record
the
at
close
November 19, 1943.
ing roads with borrowed money"
and
Chrysler Corporation
a
($.75)
standing
Committee
"there is
The directors of
have declared
by
ON
STOCK
of
business
;A:://
out¬
B. E. HUTCHINSON
standing close to $3,000,000,000 of
Chairman, Finance Committee
the
by
presently
$4,000,000,000
States
and
debt
incurred
counties
for
road
The New York Central Railroad Co.
in the two dec¬
purposes
New
A
York,
November
on
1942
June
on
Sept.
30,
Interest
payments
011
the
have
indebtedness
ready amounted
000,
it
is
to
al¬
the
close
of
business
November
noted,
and
this fact,
coupled with "exceedingly slow
retirement
of
tle / encouragement
A quarterly dividend of $0.50
per share has
declared on the stock, payable December
10,
1943. to Stockholders of Tccord as of the
close of business November 20, 1943.
been
for
the
JAMES
building programs in the post¬
"During
the
L.
WICKSTEAD,
observes,
colossal
"there
increase
in
automotive-tax
was
The 4% non-cumulative income
bonds
a
road
little
progress
Majestic
de¬
by
Seligman, Lubetkin & Co., Inc., 41
Broad
Street,
New York
City.
Copies of this circular may be had
made
was
York
an attractive situation
according to an interesting
scriptive
circular
prepared
yet
revenues,
of the New
Corp. offer
States'
the
debt."
from the firm upon request.
DIVIDEND NOTICE
T
American
Cyanamid Company
Board
of
Directors
of
Common Stock
on
Cyanamid
American
of seventy-five cents
Class
"B"
(75e>
Common
Company,
1943, declared
adopted at its meeting on November 4,
and
a
share upon the Class "A"
per
Stock,
payable on
December 2,
holders of record at the close of business on November 12,
dend
is
payable
in. shares of
the Company's
5%*
by
resolution
special dividend
Common Stock
1943, to stock¬
1943. The divi¬
Cumulative
Preference
Stock at the par value, thereof, to wit: ten dollars ($10) per share, in the
ratio of one share of such Preference Stock to each thirteen and one third,
shares of the Class "A" Common Slock and/or Class "B" Common Stock,
with the proviso that no scrip or fractional shares representing the 5%
Cumulative
Preference Stock
will be
issued
and to the extent thereof the said dividend
Cash Dividend
on
by the Company, but in lieu
will be paid in cash.
5% Cumulative Preference Stock
The
Board of Directors of American Cyanamid Company, by resolution
adopted at its meeting on November 4, 1943, as thereafter amended, de¬
clared a quarterly dividend of 1 Vi% ($.125) per share on the
outstanding
shares of the 5%
Cumulative Preference Stock of the Company, payable
stock of record at the close of
Cash Dividend
The
*
of
*
Dividends
may be obtained
authorized
dealers,
or
The PARKER CORPORATION
ONE COURT ST.,
BOSTON
Board
fifteen
"A"
Prospectus
from
1944,
and
to
December
Keystone Custodian
Fund "S2"
—A dividend of 50 cents per
payable
Nov.
15,
1943
holders of record Oct.
to
30.
share
stock¬
Treasurer
Attractive Situation
two
decades, from 1921 to 1940," the
API
20, 1943.
HOWE, Treasurer..
Spencer Ecllogg & g>on£, inc.
?
debt," offers lit¬
States to undertake "grandiose"
era.
H.
$2,000,000,-
of
Directors
on
of American
Common Stock
Cyanamid
Company,
by resolution
adopted at its meeting on November 4, 1943, declared a quarterly dividend
*
1943.
the
on
declared
30, $20.19 on Dec.
and $19.08
10,
Dividend
of One Dollar
($1.00) per share
capital stock of this Company ha? been
payable January 15, 1944, at the Office
of the Treasurer, 466 Lexington Avenue,
NewYork
17, N. Y., to stockholders of record at
ending with 1940.
3, 1944, to the holders of such
business December 1, 1943,
31,
■*.
1943, amounted to $38,-
January
share
\'
a year.
fund
reserve
employers, announces Ten¬
nessee
Treasurer''
.«•
aggregate $28,558,000, an average
01
Special Dividend
ment
nessee
//
.//
payable)
The
$38,090,00Q
Unemployment Ins. Reserve
for
v
GEORGE L. BUBB
Benefits paid since 1938
the first benefits became
estate
Tennessee Has
$38,000,000
P.M.
at 3
$1,289,728.)
eco¬
halting
■
Company have declared a regular
only
same
paid
The Directors of Columbian Carbon
in
sured
cured
4J/2% convertible bonds and
$158,810 par value of Preferred
Eighty-Eighth Consecutive
Quarterly Dividend -
1943, aggre¬
(North Carolina,
values during this period.
Tennessee
#
of
CARBON COMPANY
un¬
the
on
Republic Investors Fund, Inc.—
Net assets, after
deducting $332,-
COLUMBIAN
of the depression and
years
was
HAWKTNSON,
E.
w.
.
•
30,
But it also gave security
to
it
of
city's
credit.
our
to
close
year
very
a
fund has
been accumulated, by the State of
-
mailed.
in leveling off the mountain of
on
maintaining the volume of
if
National Bond &
city
1940,
November 8,19'iSS Secretary-Treasurer.
insurance
put its relief needs
.
year ago.
/■"_ '/
major
at
for'
country that had the courage to
of
Company
to
pay-as-you-go
relief program as one of the out¬
on
$26.01
H
equal
the
1942.
000
with
roll,
the first six
war
regard
110
Investment
of this city $17,585,477 in
payers
the
GUSTAVE
a pay-
incurred.
was
job
June
on
original
per
•'
Sept. 30, 1943, equivalent to $13.26
per share.
On June 30, 1943 net
assets totaled
roundly $7,678,000,
or $13.32
per share.
*
estate
standing financial achievements
31, 1942.
as¬
$7,889,993/
real
Pending the adoption of
to
This
Dec.
Corporation—
Sept.
on
./
Fund—Net
city's
prior to that time has cost the tax¬
Sept. 30 stood at $3,048,818,
equivalent to $12.14 per share for
the 251,040 shares
outstanding.
;
the
Ltd.—Net assets, after de¬ as-you-go program in 1934 an ad¬
ducting bank loans, amounted to ditional $4,000,000 was added to
$4,206,563 on Sept. 30, 1943.
This this indebtedness but after May of
1934 not a cent of new indebted¬
was equivalent to $96.92
per share
on
Putnam
un¬
payers.
A
'";V''v
and
city's
the
pany,
1%.:<//"/
-v.
and
Com¬
New England Fund—Net
assets
George
an
liquidating
value
of
share. V/'/s-A,,-:
'
,
impair
keep relief
22,
record
<29, 1940. Transfer
books will not be closed. Checks will be
Tennes¬
ended
ades
indicated
of
gated $3,300,000.
interest alike of city employees
and of the business community
share of stock
Jj:
It would
since
during the fiscal
Sept. 30, 1943, equivalent to
on
.
❖
credit.
$66,000,000
or
years
system
building
to
$506,147 on Sept. 30,
1943, compared with $454,672 six
earlier.
During this pe¬
The
December
of
Social
and
on.
per
cov¬
Benefits paid to the covered
tries
continued piling up of relief in¬
i
78
November
business
public
Federal
NO.
($0.50)
cents
stock, without par
Company has been de¬
of this
clared,'payable
stockholders
do¬
not
are
DIVIDEND
fifty
common
value,
per¬
employed
of
go
in
of
the
on
enacted late in 1936.
was
certain and it would imperil the
"SI"
months
not
year,
eight
see's
tion—Net assets totaled $6,500,521
per
::;.v •:
assets
V'
Broad Street Investing Corpora-*
$11,962,632 at the close of its fiscal
year, Sept. 30, 1943.
This amount
$8.66.
fiscal
months
LaGuardia
the
by
share
governmental
teachers
dividend
Security
Plan)
which
aggre¬
gated $16,700,000 for the one
the
him in 1934 clearly saw that this
COMMON
A
em¬
more
agriculture,
service,
ered
to
who took office with
us
covered
or
schools, etc., which
added
was
closing
Mayor
those of
solution. Seven
"Kl," "B4" and "SI"—Net assets
Keystone
Common
dollars
this
This
temporarily
was
eight
employees,
Seen
The situation
bid
ious
redeem
to
them.
Sept. 30, 1943, net assets amounted
$47,214,451 compared with $31,115,710 a year earlier.
Net asset
Series
mestic
The food and rent
frequently refused by gro¬
and landlords because the city
treasury
write to
or
to
year
of
were
cers
of this booklet—
of
a
one
of
(except
sons
on
Incorporated
735
was
contributing
Tennessee's
ployers
relief.
crisis of the year
was
of
borrow funds.
Investment Dealer
copy
Trust—Net
Sept. 30, 1943 to¬
taled $2,005,792, or $5.11 per share.
value
for
tickets which the city then issued
for the
that
on
indebtedness
short-term obligations
because
GROUPS"
nine
1943 and
of 3%
of
The pyramiding of these and other
and
per
the
Sept. 30,
three months ended
asset
cates
by the issuance of certifi¬
Moreover, the relief re¬
cipients during those years were
kept in a constant state of anxiety
"UNDERVALUED
Dec.
on
value
asset
increased
months
mouth
1933.
on
share
The
to the financial
Net assets amounted to $9,523,196
as
to 1933
be both large in
prolonged in duration.
problem was met hand to
the
Investors,
from
for relief would
ing the three-month period shares outstanding increased 14,719, to a
*
1930
—mfg. co.-—
June 30, the State
on
NOTICES
MLIS-CiimJEBS
on.
had collected U/C payroll taxes
fused to face the fact that the need
Reports
total of 1,173,181.
*
from
the city officials then in office re¬
331 compared with $11,644,323 on June 30, 1943.
Net asset value per
share was $9.83 on Sept. 30 as compared with $10.05 on June 30. Dur¬
Fundamental
the years
amount and
Chemical Fund, Inc.—Net assets on
cal year,
the
In
ended
year
end of the latest fis¬
the
By
DIVIDEND
Notes
announcing on Nov. 1 that ment for the fiscal
York City would retire the June
30, 1943.
New
UNION PREFERRED STOCK FUND
UNION COMMON
Thursday, November 11, 1943
cents
Class
the
(15c)
"B"
per
share on
Common
holders of
such
Stock
stock
the
of
outstanding
the
of
shares of the Class
Company, payable January 3,
record
at
the
close
of
business
11, 1943,
W. P. STURTEVANT,
Secretary,
Volume
158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4228
-
Calendar Of flew
Railway Equipment Stock
Security Flotations
Address
OFFERINGS
Municipal
—
Outlook Called Favorable
Memphis,
Airport,
The
Tenn.
CHICAGO
&
Chicago
has
SOUTHERN AIR LINES, INC.
&
Southern
a
registration
filed
107,989
shares
value.
Of
of
the
shares,
be
to
certificates
stock,
evidenced
registered
by
statement—see
be
offered
company.
trust
the effective
be¬
statement
ment,
not
000;
and
47,989
price
shares
pursuant
being
of
are
at
$8
public
also
:,Tenn.
Airport,
trust
per
shown
Memphis,
mail
passengers,
as
air
an
and
carrier
voting
trust
shares
registered
dated
will
Oct.
be
under
1,
underwriters.'
,
be
to
tion
of
capital
one
or
used
new
'
of
on
bank
other
be
the
loans;
corporate
for
or
Carleton.
filed
a
Putnam,
registration
voting
trustee,
statement
trust certificates under voting
ment dated
Oct.
of common
stock,
and
Southern
1,
Air
for
par
Lines,
the
its
to
has
Inc.,
registration
and
Ex¬
with
Co.,
will
proposed
loans
be
equipment
new
each;
Milwaukee
and
for
60,000 shares of
9
at
$12.50
mick
&
blower
&
per
Co.,
be
the
used
Com¬
purchase
present
on
reduction
trust
bank
of
share by
I.
M.
Weeks,
certificates
Kebbon,
Simon
Courts
on
for
stock offered Nov,
common
(Continued
"
believes have appeal at
&
&
page
McCor¬
Co.,
Co.,
Horn-
The
be
may
stocks
had
COMMON
which the
Bought'—Sold—Quoted
this
request
from Hirsch, Lilienthal & Co.
upon
Paine, Webber, Jackson & Curtis
Situation Attractive
Mil-
1915)
ESTABLISHED 1879
The current situation in StruthWells
ers
Corporations offers at¬
possibilities according to
tractive
special memorandum issued by
Ryan-Nichols & Co., 105 South La
Salle Street, Chicago, 111.
Copies
a
of
this
interesting
!!!| Public Utility Securities §§fg
General Gas & Electric "A"
memorandum
be had from the firm
may
Among the low-priced utility holding
upon
Gas & Electric "A" has proven somewhat
request.
on
Situation of Interest
Common
Bell
stock
Lumber
ing
to
of
the
Long
Company
attractive
an
for
situation
The stock rose from % last year to 2% earlier this
year
hopes that the important South Carolina properties could be sold
$40,000,000 to a Power Authority in that State. When this deal
was
offers
"stymied" by local
the
accord¬
stock
waned
er
Christiana Securities
Bissell
Public
GenGas
to
common
stockholders.
Service
and
of the
bers
York
Stock Ex¬
request.
upon
*
Profit Potentialities
The
reorganiza¬
tion offers attractive profit po¬
tentialities according to a detailed
circular
the situation issued by
on
McLaughlin,
Baird
&
Wall Street, New York
bers of the New York
circuit
is
will say:
a
Long Distance
crowded the operator
"Please limit
your
call
change.
Reuss, 1
City, mem¬
Stock
Ex¬
Copies of this interesting
circular may be had upon request
from McLaughlin, Baird & Reuss
Empire Sheet & Tin Plate
Situation Attractive
calls, and avoiding all
unnecessary
whole
on
war
Sheet
Tin
&
—
proposed
be
Gas may consent
to
"subordinate" its holdings of Gen¬
Gas
debt, preferred stocks and
<
amount
might
under
the
in
that date would
This
based
on
York
receive
particular
Stock
half
a
date
was
the
of
order
an
Plate
Co.,
offers
attractive possibilities ac¬
cording to a memorandum preoared by Hill, Thompson & Co.,
of
New
Exchange
(under
SEC
ended June 30 as a base, and de¬
duct the estimated preferred divi¬
dend requirements
neighborhood of $300,000 for
publicly-held issues, allowing for
the increased amount to be issued
damaged by the 1929 trans¬
high
have
to
stock
sold
as
112 in that year, following
was split 5 for 1).,
as
tinction
out this dis¬
carry
the
between
two
classes
of stockholders would raise many
problems
whether
dubious
little
of t he
holders
with
the
Whether
seems
a
important
who
stock
chased since Oct.,
satisfied
it
and
pur¬
1932, would be
this
offer
treatment.
of
one
and.
a
in
lieu
of
effort.
dividend
dated
"B"
income leaves $876,000,
net
to
ings
from
While
a
bond
be
not
the'
Manufacturing
Co.
offers interesting
possibilities ac¬
cording to a circular prepared by
M. S. Wien & Co., 25 Broad Street,
New York City.
Copies of this
circular
may
discussing the situation
be had from the firm upon
request.
V;-;
as
last
the
year's proposal of sale of
Carolina
companies
consummation, stock¬
South
new
ginia
Public
buted
Milwaukee, Wis., in
an
Service)
are
around
by
5
and
an
this
analysis
Thus while
fiim
by dealers
on
holders
chance
still
may
of
have
eventually
prices
.
a> fair
realizing
the
than
present
The intrinsic value
the
of
volved,
but
range
—f? the
vicissitudes
rulings and the market,
°f
many
factors
estimates
seem
in¬
to
between IV2 and 6. The prin¬
cipal reason for the wide range in
estimates is the extent to which
Arden Farms Attractive
Common stock of Arden Farms
offers
attractive
possibilities
Inc., 120 Broadway, New York
City.; Copies of this interesting
memorandum may be had upon
request.;;;;
.rv'C-
Public Service Co. of Indiana,
Inc.
Common Stock
re¬
Bought—Sold—Quoted
Col. V. Merle-Smith Dies
Smith
his
Van
of
died
home
Island, after
heart
a
Cove
at
an
was
forces
our
BELL
TELEPHONE
SYSTEM
armed
Col.
Merle-Smith
in
Dick
York,
&
attack
Neck,
at
Long
illness which com¬
menced while he
i
Merle-
Santvoord
in' Australia.
was
a
partner
Merle-Smith,
investment
Bear, Stearns
house.
New
&
Co.
Members New York Stock Exchange
serving with
CNE WALL
ac¬
cording to a memorandum pre¬
pared by Hill, Thompson & Co.,
quest.
Colonel
the
complete
'ional
the
seems
of
holdings and cash assets
with
from
this
basis, with complete subordination,
of
Associated
holdings, GenGas
"A"
might have
a
theoretical
interesting study of the industry
particular reference to NaTool Company.
Copies of
the brochure prepared by Loewi
& Co. on the situation may be had
distri¬
On
stockholders.
to
of
failed
because
cording to Loewi & Co., 225 East
Mason St.,
the
once
(with I
of the stock is difficult to estimate
The cutting tool industry offers
attractive post-war prospects ac¬
a
companies (principally
Florida
Power, South
of GenGas.
if the current plan
market level.
Outlook Attractive
on
it might
subordination seems unlikely, the
the
anticipated
modification)! Potential result seems favorable
should prove disappointing, just I for long-pull GenGas stockholders
Even
better
Cutting Tool Industry
etc.
mul¬
Carolina Electric & Gas, and Vir¬
individual
Merrimack
basis,
unreasonable
operating
offer will
Merrimack Mfg. Attractive
To this could
reTtmdings,
company
value
pect that the proposed
be "sweetened."
and
tiplier would be over-liberal
holding
supported
pro¬
per
"A"
"ten times" earnings
cast, but it appears logical to ex¬
alternative
shares.
common
posal worked out, cannot be fore¬
some
cents
be added further^anticipated sav¬
half shares will' be extended to all
or
40
some
publicly held'
on
Inc., 120 Broadway, New York
City.
Copies of this interesting
memorandum may be had upon
holders
De¬
arrears.
ducting this amount from consoli¬
request.
calls, will help the
a re¬
the
been
said
following
capitalization. Such dividend re¬
quirements would seem to be in
equivalent
"A"
be
the potential value of the GenGas
share
(the
and
pressure)
several ways in which
are
date
actions"
SEC
unfair.
was
There
that
be
considerable
a
persuaded
to
go
even
further,
though it is always possible that
the Trustees might decide on a
court appeal if they felt that the
directing
the company to mail to stockhold¬
ers a detailed report, so that any¬
one
purchasing the stock after
"can
Associated, has
subordination
holdings may be estimated but the
simplest is to take the current
com-'
earnings for the twelve months
exchange for
bought prior
to Oct. 31, 1932, while holders who
purchased their stock subsequent
share.
stocks.
common
already agreed to
One
new
issued,
plan,
in
:
within the
each share of GenGas
legal
The first mortgage 6s of 1948 of
essential
would
mon
and
wb'ch it
upon request.
Empire
SEC
half shares of the
a
However, to
to
five minutes."
Observing this time limit
and
to
Island"
"Rock
smaller
future, it is expected.
near
change, have prepared an inter¬
esting circular on Christiana Se¬
curities Company.
Copies of this
circular may be had from the firm
market interest
Associated
companies into Florida Power has
&
New
common
two
opposed to it,
not'*
A merger of Florida
Meeds, I-120 been approved by the
Broadway, New York City, mem¬ should be consummated
/vfTien
did
memorandum
being
by Buckley Brothers,
1529 Walnut Street, Philadelphia,
terest
due to
expectations that
Pa., members of the New York there may be some modification of
and
Philadelphia
Stock
Ex¬ the GenGas
recapitalization plan
changes. Copies of this interest¬ submitted last
May to the SEC.
ing memorandum may be had
This plan provided for an ex¬
from Buckley Brothers on request.
change offer of new Florida Pow¬
a
distributed
Laird,
TO FIVE MINUTES
interests
it
and
participate in the broad advance
in utility equities.
Recently, how¬
ever, there has been renewed in¬
Situation Attractive
PLEASE LIMIT YOUR CALL
company stocks, General
disappointing marketwise
this year.
&
St.
working capital.
Offering—Voting
has,
voting
for
used
to
routes,
new
INC.
on
time
under¬
amounts
certain
data
firm
public at $12.50 per share.
5,000 shares; Equitable
Corp., Nashville, and Reynolds
New York, 2,500 shares each.
Proceeds
of
trust agree¬
-
unless
Milwaukee,
&
value, of Chicago
Inc.
to
underwriters,
7,500 shares
i:
1943, for 500,000 shares
no
agree¬
Securities
the
lanta,
or
SOUTHERN AIR LINES,
the
Securities
(9-27-43). ;
&
with
pany,
on
Registration Statement No. 2-5220.-form
'■ CHICAGO
1,
17,500 shares each: Hornblower &
Weeks, New York, and Courts & Co., At¬
5
8-2.
common
1944,
under
Oct.
City. Copies
study, which also contains
as
Louis,
working
purposes,
stock
of
written,
follow;
Kebbon,
McCormick
Co., Chicago, and 1. M. Simon & Co.,
reduc¬
or
sold
The
;
routes
payment
holders
to
amendment
an
Broad St., New York
ex¬
change Commission in which it gives the
offering price on the voting trust certifi¬
cates for 60,000 shares of common stock to
be
additional; equip-
present
persons
PUBLIC SERVICE
of the situation prepared
Hirsch, Lilienthal & Co., 25
of this
purchase options and acquir¬
common
stock
pursuant
offer
terminate
statement
proceeds may be ap¬
more of the following
routes;
present
or
stock to
common
to
Chicago & Southern Air Lines,
common
1
net
aggre¬
stock
(9-27-43),
filed
new
will
offered
SOUTHWESTERN
manufacturers
study
and voting trust
by the voting trustee.
Registration Statement No. 2-5221. Form
F-l.
old voting trust
prior to or, concurrently
Purchase
purposes:
proposed
the
offered
•
Proceeds—The
-ment
be
A
an
common
extended
1943,. -The
^with the delivery, ol"
any
which
will
terminated
plied to
amendment.
of
deposit
to
will
ment
.
by
stock
shares
be
stock
'
supplied
will
The
■
be
representing
60,000 shares of
thereto.
between
express
.voting
the
the public voting
in statement above
ercising
of
(Chicago, 111., and New Orleans, La., and
;between / Memphis/rVXenn-<< and Houston,
Texas',
;V:"■
Underwriting — Principal
underwriters
named
are
-Kebbon/ McCormick & Co.,
Chic,ago1(and I.'M."Simort: & Co.. St. Louis.'
Offering—Offering price to '> the public
will
certificates
of
gate
offering
*.'•<.V-;''1,.;; ing
Business—Operates
of
terjns
proposed to offer to
certificates
Municipal
~
the
agreement there may be deposited
thereunder any authorized shares of the
stock of the ( corporation.
It is
$383,912.
Address
date of the registration state¬
Under
lor
railway equipment appears to
be very favorable
according to a
by
trust
$960,registered for
options,
to
an-aggregate
of
practicable' after
as
soon
vot¬
director
a
-
capital
exceeding in the aggregate
issuance,
share,
or
and
'
.
state¬
sole
Putnam,
is president
Offering—As
separate
a
Carleton
trustee,
the
through un¬
derwriters at a proposed maximum public
offering price not exceeding $16 per share
and
by
above.
ment
ing
voting
under
registration
for
par
60,000
no
registered,
outlook
of
Business—Voting trust;
Underwriting — See registration
Inc.,
statement
common
shares
low—are
to
Lines,
Air
1913
STREET, NEW YORK
CHICAGO: 135 SOUTH LA SALLE
Dlsby 4-8500
STREET—State 0933
; ?
1914
THE COMMERCIAL & FINANCIAL CHRONICLE
Dealers
Virtually Unanimous In Condemning
NATIONAL TOOL CO.
Common
NASD Profit Limitation Decree
Slock,
We
descriptive Booklet available
new
to Brokers and Dealers
better
nature of the
investment
business
Whyte
[
(Continued from page 1911)
hope this whole situation will be aired
the
Walter
Savs
that
so
as
true
a
whole
a
pic¬
be
may
understood.
With selling commissions in syndicates at the
M of 1% to % of 1%, as against 2 to 4% 15 years ago,
V\ of 1% against 1 and 2% 15 years
ago, the only way a small house has of taking care of expenses and
overhead is by dealing in securities that are not so well known but
any l'ourth-term bid. The sit¬
uation is tense and about as
mud.
The stocks that
low figure of
clear
and municipal bonds trade on a
request!
on
.
..
of
Tomorrow's Markets
-
(Continued from page 1910)
ture
A
Thursday, November 11, 1943
should act best
offer such
a future to the investor that time and effort can be
spent
only selecting suitable securities of this type but a compensa¬
tion for the effort in selling them.
We greatly appreciate your article in
your number of Nov. 4,
calling the attention of investment bankers generally to this situa¬
tion which has been kept pretty well under cover.
as
during any inflationary period are acting
(
the worst.
in not
225 EAST MASON
PHONES—-Duly
ST.
Chicago:
5392.
MILWAUKEE 2
State 0933
Teletype MI 488
tili Wisconsin Brevities zlgfg
Record
footings
were
Bank
reported total
resources
a share in contrast to $18.37
Control of this bank is owned by Wisconsin Bankshares
June 30.
Corporation.
The
,
Ilsley Bank'sftV
$112,530,000,
$103,490,000 on June 30. The
book value was $41.61 a share in
contrast to $40.10 on June 30.
total
MarshajU
assets
&
to
rose
from
Railroad Bonds
,
The Marine
Bank's
National
total
$99,461,000
Exchange
assets
jumped
$86,751,000
from
untrue in this light.
,Y Can you "pressure" them into revealing the figures?
Wisconsin
to
on
in
are
thorough accord with this ruling, which
made after
was
a
Koehring Company
dividend
and
extra
an
share,
both
holders
of
declared
of 500
bership-at-large.
1
dividend
payable
record
of
500
Nov.
Nov.
GIVAN COMPANY
30
a
UNDERLYING
to
First
The
15.
In
1942
total
a
of $3
Tel.
Belt
usual
Nov.
on
to
stock
of
*
pay a
Nov.
MILWAUKEE,
dividend of 750 a share on
15, bringing total payments
Mr. Sullivan's
vestment field
sion
calendar
year—$1,531,000 for
the first nine
months, equal to
$2.32 a share; against $1,021,000 in
the corresponding nine months of
1942, equal to $1.55 a share. A
Rule
would
Most damnable.
v
The
can
do
128th
the
of Nov.
in the in¬
career
Co.
In
of
rank
trust
Infantry.
4.
9
dealers
becomes
1916
will
the
taxes any more
but
period,
of
captain in
He rejoined
in 1919 and
and
Trust
became
associated
special
Lasting 12 to 18 Monlhs
service
department,
resigned
on
attractive;
tion
and
and
the
letter
money!
our
of
mind, but that
business
decree—and
if
such
will
we
large number
a
a
working basis
probably be among
to be
and
Aug. 1.
the
Tsiang
Ting-Fu,
China's
chief delegate to the
forthcoming
Talks On Mexcan
United Nations Relief and Rehab¬
ilitation Conference in Atlantic
Railway Debt Held
a
over
half',
"in
a
year
or
according
a
to
law firm of
doing business,
Moodys,
and
National
Quotation
Sheets,
services applicable to particular industries
make trips to New York- and Chicago,
we
centers
operate
a
current
in
stock
the
but
until
information
to
the
plies. When the
will also need
war
aid to
is
over,
resume
sup¬
she
her
cultural life in the postwar
period.
between
the
Mexican
clients—and
this
all
costs
The
*
Mexican Railway
arrangements
tion is
Y
Wisconsin Gas & Electric Co.
■
For
have
[The
the
was
Wisconsin Bankshares
Company
MILWAUKEE
Bell
1. WISC.
Teletype MI 291"
do
not
coincide
Chronicle.
Thursday.
Whyte
expressed
in
necessarily at
with
They
those
are
this
any
of the
presented
as
those of the author only.]
LAMBORN & CO.
WALL
99
busi¬
STREET
NEW YORK 5, N. Y.
SUGAR
Exports—Imports—Futures
DIgby 4-2727
.
;
reasons
100%.
peculiar locally, please do not publicise the above
name.
Power to you in your fight and we are
/ ,/ ■.
NO.
11
regarding the NASD profit limitation, I
complete accord of all members.
consulted and
none
Established
lAs far
as
I
know,
no
Members
York
New
York
New
York
Commodity
Chicago
New
member
public to the members.
revolutionary that it should not be imposed on the members with¬
having the benefits of the greatest study, publicity and under¬
standing of its purposes and implications by each and every member.
As to the limitation of profits in
jitself—we have probably half
of our organization located in rural areas where
expensive opera¬
great and travel to
see
the customer
(Continued
n
New
Stock
Curb
Cotton
Exchange
Exchange,
Board
Orleans Cotton
And
Exchange
Exchange
other
of
Inc.
Trade
Exchange
Exchange*
.
leading up to this decision were
The mjatter of profit limitation is so
made
tion is
1856
H. Hentz & Co.
of the details
out
Telephone Daly 0525
views
article
time
presented, but the fundamental
idea of limitation in itself.
i
)
A matter so far reaching and so vitally
affecting our business as
a profit limitation should have the
mosj; detailed and [public discussion
among the members of the NASD, and a decision arrived at only with
Koehring Co.
TIIE WISCONSIN COMPANY
i'f
—Walter
want to go on record as being extremely opposed to this not
only be¬
cause of the manner in which it was
Chain Belt Co.
Le Roi
/.:
#
More next
comments over, our
with you
Kearney & Trecker Corp,
Wisconsin Michigan Power Co.
discre¬
.
,
*
a
up.
debt.
Common Stocks
Wisconsin Power & Light Co.
,,,■
-
therq are sufficient policing powers to maintain
continuing condition.
The other 5% should not penalize the
total industry and present policing bodies should and can clean them
such
Active Trading Markets in. Wisconsin Securities!
Wisconsin Electric Power Co.
.
the market and
to
DEALER
Lake Superior District Power Co.
our
It is our opinion that at least 95% of the
industry is sin¬
cerely trying to operate fairly and take profits directly in relation
as
yet been agreed upon. The
Minister has returned to Mexico."
.
.
certainly the policy to
follow."
on 2% to 5% >and practically all listed stocks at no profit,
need the 6%, 7% and 8% deals to make the lower ones
In response to your letter
Preferred Stocks
I
''
can't do it.
Fi¬
Minister, Eduardo Suarez,
International Committee of
Bankers on Mexico in connection
the
confirmation
a
and
Firms operating strictly as brokers—no service or solicitation—
large organizations with institutional accounts may be able to
operate on a 5% or less limit, but service organizations such as ours
nance
with
see
or
and
No* definitive
I
on page
consumes-a
1915)
great deal
,
But
move.
possible.
"Conferences have been held in
this
city for the past several
weeks
we
current
cur¬
maintaining valuable sources of' informa¬
watching service, passing on by bulletin
detriment of the client.
but
Mexican Govern¬
/
7, which added:
facilities, and then medical
yet
repeat the last phrase in last
a
large per cent of
ment, on Nov. 9, made the follow¬
ing announcement;
New
transportation
has
answer
131, should be the low point
on
nesses done
Hardin, Hess & Eder,
counsel for the
York "Journal American" of Nov.
Dr. Tsiang, interviewed at the
Chinese News Service, 30 Rocke¬
feller Plaza, declared that China's
first need today is
The
given.
Technically,
the
break¬
Monday, down to about
We operate on a limit of four
points on bonds and $% on stocks,
but our average is much lower because these are maximum mark
ups
and not standard to each transaction.
A
Jerome S. Hess of the New York
ex¬
will
year and
the
some-»
down
Dr.
be
above is
week's column:
costs of
large organizations 'or Exchange members with a
large volume of business may be able to do it on 5% or less profits,
but the smaller organizations such as ours—nine
producing men
including the officers—can't make. it. * The logical result will be
organizations such as ours, earnestly trying to fully serve the
clients,
wil have to drop all their; services and use the
"guess"- method,- to
officer and director of the
bank when he
Standard-Poors,
rently
1921,
with
forced' out
also certain special
Co.
resigned in January,
doubt in
proposal limiting profits to
other financial
Wisconsin
are
prohibitive basis should appear.
In
the interest of trying to give our
clients a complete investment
service, we subscribe to not only the basic statistical services such
opened.
He was head of the
bond department and later of the
war
of the
*
It is ironic that in the face of increased
a
City Bank & Trust Co. when it
Nov. 6 that
I
zance
10
them.
First
He
be
no
operative
as
was an
on
failure
Congress refused to sta¬
bilize food prices. The onlyj
thing that can stop inflation'
is a sensible tax
program and >
rigidly controlled price pro¬
grams.
I don't like to pay
answer.
nothing but kill the little fel¬
appearing in the "Commercial & Financial Chronicle"
There is
company
was with it when it
merged with
the First Trust Co. to become the
China Sees War
City, revealed
doomed to
was
when
than you do,,
prefer them to wildeyed runaway prices. When
out,
the market will take
cogni¬
be traced
in relation to the recent 5% profit
We thoroughly agree with the
opinion expressed
limitation decree.
was
perts in China think the
It
be
funds in the securi¬
own
•
following comments
in your article
began in 1910 with
with the
the
of $1,000,000 was
set
up
for the current
against $450,000 in 1942.
reversal in the market.
a
might
thing the market itself will
DEALER NO.
duty with the 32nd divi¬
overseas
Inc., for the first nine months of
reserve
low
he left the trust company to serve
in the Army.
He returned from
large increase in earnings has
by Cutler-Hammer,
post-war
cases
merchandising or retailing and there is an
larger than a 5% profit.
activity in behalf of the
WIS. —William
the Wisconsin Trust
been reported
the
a
Profit Limitation
H. Sullivan, has opened offices at
135 West Wells St., to act as an
investment counsel.
*
for 1943 to $3 a share.
A
selling charges
should by all logic benefit by
inflation.
Yet we know the;'
steels were the first to signal
r
record
Kearirey & Trecker Corp. will
v
justifiable, of
able to place their
DEALER NO.
Opens As
Investment Counsel
pay
Nov. 10.
❖
nor
great number of
a
Securities Dealers.
250 quarterly dividend
24
where
was
will
Company
willing
ties in which they are
WISCONSIN
Tele. MI 592
W. Sullivan
Chain
to those not
We commend you for your interest and
paid.
the
2,
Daly 3237
section of the activities and
cross
transaction and the abuse in
SECURITIES
Nat'I Bank Building
MILWAUKEE
dividend will bring total
disbursements for 1943 to $2.50 a
current
share.
Wisconsin
a
practices of
the representative houses in our
business, that the Directors of the
NASD should be able to rule upon a fair
profit on a non-commitment
a
share
a
we understand
of questionnaires submitted by the mem-
resume
It seems that with
regular
to
costs
final
their
mula
Carry on!
DEALER NO. 8
We
Industrial Securities
June 30, with book value of $42.13
a share in contrast to
$39.92.
in
control
material
raw
argued that the
steels are not a good examplebecause they can't control la¬
bor costs.
But that argument
The Association should, be honest
enough (somehow) to give us
doesn't impress me.
some figures which
Labor/
really set forth the true picture, even though it
hurts!
I believe it can easily be demonstrated that
costs have not kept pace with
any conclusions
drawn from their "over-alt" data would be
utterly unfair and even prices.
The Little Steel for¬
of
$518,623,000, with book value of $19.17
on
manner
!
We, here, question the applicability of the alleged figures com¬
piled.
To be of any value, the "profits taken" should be brpken
down between the major classifications of business done.
Surely, the
mark-ups on municipal bonds and high-grade corporate issues has no
bearing at all on what is fair on local utility or industrial stocks.
•
National
Wisconsin
First
position and the forthright
upon your
which you state it.
shown by leading Milwaukee banks in their
recent statements:
The
DEALER NO. 7
Congratulations
which
steels
The
their
N.
Y. Cotton
NEW
CHICAGO
'
Exchange Bldg.
YORK 4,
N. Y.
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
.
*
Volume
THE COMMERCIAL &
Number 4228
158
1915
FINANCIAL CHRONICLE
requiring $7,738,000, and $4,000,000 of out¬
Calendar Of flew
Virtually Unanimous In Condemning
Dealers
(Continued from page 1913)
Wukee Co., Equitable Securities Corp. and
Reynolds A Co.
NASD Profit Limitation Decree
(Continued from page 1914)
of
and
time
make
maximum
5%
a
does not permit
sufficient profit to
point of interest would seem to be the
>the Board of Governors of the NASD and also the
its
composition of
composition of
of business?
amendment.
business, so called highdoing another type of business, and the run-of-thethe counter; houses doing still a third type of business?
mine over
question arises whether or not the same
ideas of profit should apply to all three types of business alike.
In closing, we would ask particularly that our name not be
used publicly in the publication of this letter.
This, incidentally,
provides another interesting commentary on our present situation
this
If
7
that
lin
the
is
are
we
from
profit limitation might invite retaliation of some
body or some governmental agency.
this
some
DEALER
Blodget,
I have noticed for several weeks articles
concerning the
It
dealers.
seems
kind
to me
limitations
your
Thursday issue
5% gross profit is a very fair margin.
I believe that a great many
of the older and more conservative dealers in this business would
! Naturally,
a
there
dealer would like to make as much proiit as
some
are
smaller
a
of
are
.
collateral
would result in
quoted, there is quite a protest.
One of my customers, in the
custom tailoring business, admits a $100 profit on a suit
did not cost $125, yet the roof is raised if I disclose $25 on
carefully selected listed bond around 66.
1 am much inclined to the belief that the larger houses want
small
the
dealer
existing
In
or
connection
eliminated and his unlisted offerings dealt
in
on
possible future Exchange.
with Exchange business, I think the NASD should
interest itself in the matter
dealers who voluntarily
of obtaining compensation for the small
give business to the Stock Exchange houses.
and for the life of me I cannot see
should not be recompensed in some way for the preliminary
and final work which we do.
To talk this over without elected rep¬
resentatives!?) on the NASD committees I find gets us nowhere.
At
present nothing is received,
why
111.-%"
$300,000;
Philadelphia,
Yarnall &
$150,000.
Offering
—
bonds
fund
1958,
offered
the
com¬
A
$4,500,000
414%
Nov.
Webster
and
W.
H.
1st
int.
Newbold's
Securities
by Stout
a
bonds
ant
profit: There should, in all
work done by the unlisted dealer
as
against the comparatively easy movement of the bigger houses,
who can and frequently do sell 50 bonds or more with far less effort
than the small fellow exepends on a $500 order.
And there is another
point, e.g.: The price of a Holding Company bond drops sharply
Again reverting to the percentage of
with the SEC's "death
sentence."
Commission's
the
Son
GAS
VALLEY
&
ELECTRIC
proceeds
bank
to
and
$11,300,000
trust bonds
first
3%
mortgage
series clue
and
1973.
Pawtucket, R. I.
public utility com¬
Business—Operating
pany
engaged in the electric and gas busi¬
Commission's
the
the
post-effective
price
to
In
interest,
by
the fellows paying his salary.
Secondly, we feel it was the duty of the
addition,
pose
U-50.
Offering
supplied
by
of
Board of Governors
from a member whose primary pur¬
is to protect his interest as a
member of the New York or other
national exchange.
We have
times drive
a
as
number of men who work in
much
as
With the interests of his customer
foremost, the small dealer, unable to buy a good unlisted bond at
the then price of the Holding Company issue, takes time to look
over the whole listed market and decides on a "legal" railroad bond
at 65.
1 cannot see why he isn't entitled, in such a circumstance,
is
has
$73,196,022.
will
or
redeem
amount of its
$15,827,400
face
including
Series
to
in
The
1943,
$500,000
A
Elec¬
its entire
Light Co.
of
Iowa
be
proceeds
Electric
Light Co. for $15,220,-
Iowa Power A
000.
from
1943
Moines
Des
issue—to
entire
1,
Continental Gas
Illinois
by
Corp.
and
B—the
Dec.
on
sale
redeemed
company
first
on
1,
mort¬
Oct.
refunding
and
bonds, Series A, and will pay
at
maturity on Dec. 1, 1943, $994,500 face
amount of underlying mortgage bonds.
gage
Registration Statement No. 2-j3237. Form
(10-23-43).
list
is
incomplete
this
week)
post-
sell the
pursuant to
to
a
get proper representation
company
debt
recent
tric
Exchange members. A lot of the dealers who have called the writer
are
members of smaller houses, and they do not seem to feel they
can
issues
two
off $17,321,900 face
pay
interest
are
put
the
of
redeemed
of
serious matter like this to an entire membership vote.
Third, we feel that the Association primarily should have for its
Governors members of Over-the-Counter houses who are not Stock
to
and accrued interest.
redemption cost exclusive of accrued
bonds
will be applied
$7,300,000 of out¬
and
collateral
trust
4%, due 1965, at 106%
C,
and on
amount
face
amount of its first and refunding mortgage
mortgage
Series
Redeem on
face
amount.
1953, at 104%%
June 1, 1944, $39,Series C,
5%, due
1956, at 105%
1,
funded
proceeds
redemption
the
with
Seaboard Air Line Plan
bidding
public will be
amendment.
Proceeds—Net
to
standing
bonds,
ness.
supplied
proposes
Rule
follows:
as
$30,681,500
1944,
interest
which the registra¬
become effective, that
competitive
bonds
1,
Total
on
at
a
redeem
mortgage
the
use
of bonds,
be borrowed on
portion of its treasury
its first
and
refunding
$5,000,000 to
and
notes
funds
to
proposes
the sale
from
April
These issues
Offering—Company
pursu¬
Price to
U-50.
public will bo supplied by amendment.
175,100
Underwriting—To be
amendment.
Rule
Proceeds—Company
net
effective
bonds
■
the
sell
to
bidding
competitive
through
to
Series A, 6;% due April 1,
list of issues whose registration state'
course
.
amendment.
Offering—Company proposes
effective
post
Peabody &
& Co.,
an'd
Corp.
filed less than twenty days ago.
in
Illinois.
in
Blyth & Co.
Inc.;
Kidder,
Co.;
1958
1,
Oct.
and
Blodget,
A
sinking
mtge.
due
102%
•
public
utility
the electric and gas
'
Underwriting—Names will be supplied by
$4,000,000 to
series
10 at
Drexel
Inc.;
and
Decatur,
Street,
operating
engaged
company
Main
East
■'
•
business
Securities
Union
1,
Business—An
the country, and many
of a speculative
30 to 40 miles to make a sale
L.
H.
Roth child
&
Co.,
120
Broadway, N. Y. City, have pre¬
pared
an
interesting study
of
Special Master Taylor's plan of
Reorganization for the Seaboard
Air Lines, which the firm feels is
especially pertinent because of the
order authorizing the call for re¬
demption of the Receivers' Cer¬
tificates
of
the
Seaboard
Air
Lines.
Copies
of the L.
H. Rothchild
study of the Plan may be obtained
from the firm upon
Sees Cuba Sole
request.
Supplier Of
Sugar Production Deficit
The current
bulletin of Strauss
Bros., 32 Broadway, New York
It is the writer's honest opinion
City, which analyzes the sugar
bond) is certainly a conscionable
situation, states that "world con¬
profit, particularly in cases where the salesman may sell only two or ditions are
leading to the point
three bonds.
Even after the recent ruling it will be our thought j
where Cuba will be placed in the
to continue this practice.
Of course, if the man sold 15 bonds on
position of being the sole supplier
such a trip the margin per bond should be reduced.
of the deficit in kugar production
It is the writer's opinion that members owe it to themselves to
caused by the war." Copies of this
become more active in the election of a Board of Governors and
interesting bulletin may be had,
the' engaging of the executive personnel, so that each member will
from Strauss Bros, upon request.
get proper representation and that his voice shall be heard before
a
rule is
laid down
that might eliminate him from a business
which he has spent a lifetime building.
To Improve lax Position
P. S.—This letter is not to be used over our signature, and if pub¬
Thomson & McKinnon, 231 So.
lished should be done so anonymously, as we have found from ex¬
La
Salle
Street,
Chicago,
111.,
perience—as distasteful as it seems—the fellow who tries to do a members of the New York Stock
conscientious job
publicly subjects himself to having his head Exchange and other principal ex¬
chopped off.
'
%:%, ■ V. changes, have prepared a timely
bond, let us say, that costs us 20.
that a price of 21V2 (or $15 per
DEALER NO.
15
study
we
fairness, be'an appreciation of the
■
$300,000; W.
Philadelphia,.
Co.,
$400,000.
the bonds due
Address—55 High Street,
carpet
plenty all,
ladies'
some
York,
&
York,
grouped according to the dates
registered
which
a
Co.,
of $378,550
to
York,
New
Son
Kidder,
$400,000; Lee
$400,000; Paine, Webber, Jackson A Curtis,
Blackstone Valley Gas A Electric Co. has
quite a howl; and so, to protect himself against a squabble, the dealer
acts as principal.
Nevertheless, if the customer happens to see the
:
1,
THURSDAY, NOV. 11
"Disclosure of Profits" rule was talked of
the summer of 1942—I wrote Mr. Fulton rather
commission, in which, of course, we do not share,
bond
Oct.
due
New
Co.,
Corp.,
Newbold's
H.
notes.
CO.
frequently been necessary to educate the small buyer, and then, as
has been my experience, a whole day has been taken to buy a $500
bond with a profit of from $10 to $15.
,
.
To disclose the profit on a listed bond in addition to the Exchange
:
bonds
available
made
BLACKSTONE
of which he very likely knows nothing; and much effort is
frequently necessary than not. Weeks of personal contact has
more
.
A
Higginson
trust bonds series due
Address—-134
days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in seven days.
These dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day follow•
Briefed, I said that the, larger Stock Exchange houses usually
catered to the experienced buyer and that their executions could
be likened to a man walking into a store and buying what he wanted;
in other words, no sales effort.
On the other hand, the unlisted
dealer contacts and educates the small investor into buying some¬
thing
of $3-
Philadelphia, $300,000;
Co.,
1943, to Illinois Power
$65,000,000 first mort¬
Nov.
1973.
is twenty
fully.
•
&
sons
tion statements will in normal
proposed
last summer—I mean
~
Co., Philadelphia, $150,000; Drexel A
Philadelphia, $400,000; Graham, Par¬
be
to
Co.—name
Power
Iowa
and collateral
gage
or
publication has long been called "The Bible of
get together and put their so-called representatives on the
for an outright statement of their real aims and why, with
of ammunition, a quisling attitude is assumed.
the
settlement for
ments were
paid
When
Alex. Brown
E. W. Clark
$150,000;
sales
registered
on
(This
Certainly the NASD, whose life depends upon the assessby its members, does nothing to clear the path but.
instead, bites the hand that feeds it by failing to look after the
rights and liberties of its parents.
It seems to me that it is high time for the NASD members to
ments
Co.,
13
ership.
i
Illinois
changed
Co.—--has
New
A
bond
from
excess
(10-23-43).
S-l.
Street"; and that term should now apply anew, in my opinion,
because of your voluntary leadership in trying to bring the small
dealer out of a wilderness in which the NASD should assume lead-
•
101%
1944, at
gold
Following is
entitled
Wall
1
Whclen
proceeds
of the $12,018,000 needed for
such
ILLINOIS IOH'A POWER CO.
Dec.
.
excellent
Your
Inc.,
Blodget,
Blddlc,
Baltimore,
Sons,
A
Union
mark-up than 10%.
<" 1
published, it must be anonymous.
DEALER NO.
'
A
Co.;
P. S.—If this letter is
!
follow:
amounts
ridge A Co., Denver, $150,000;
to
possible,
that the customers are
who believe
us
and
$850,000;
amount of b ink
"
to
S-l.
1,
have a 5% gross mark-up.
gross
there
fund
be
and
if
excess
will be added to
the company's general funds.
Registration Statement No. 2-523G. Form
Philadelphia, $150,000; Blyth A Co., New
York, $400,000; Bosworth, Chanute, Lough-
provide for additional working
capital the proceeds of $1,000,000 principal
certainly does not set well with the customer, at least
of thinking. I do not believe those dealers who cannot
i satisfy their customers have a right to stay in business.
The above comments are naturally on the other side of the
fence from those that you have been publishing, and I am not sure
: that
I want to go into a publication in order to draw arguments
! from a Jot of dealers, but I thought you might like to know that
i
1,
redemption
the payment at 100%
will
pany
to may way
»
Webster
&
York,
Peabody
the
to
principal amount of notes, and for other
purposes.
In addition, at the
dealers
| 5%
be
corporate
but in dealing with the public, as all of us do, either through other
or the individual clients, the tendency, it seems to me today,
is for the customer to know what the trade cost him.
A profit of
;
Stone
New
of
Oct.
make up
to
while
in
redemption,
■
underwriters
York,
time
from
i
New
to
interest
used
sary,
are
registration statement
issue and sale of $4,-
accrued
Corp.,
sinking
1947,
in
of
6'f
on
consider that they would be very lucky to
before April
or
Exchange
Offering price to the public will bo 102%
913,000 principal amount of first mortgage
a
'
on
applied
be
will
will
public
proceeds from sale of the
Proceeds—Net
bonds
its
to
and
Co.,
Offering—Price to the
supplied by amendment.
the sale. of securities by
that from the trend of the security business,
profit
5%
amendment.
by
12
NO.
Stone
&
Webster
and
Inc.,
heads the group of under¬
Names of others will be supplied
—l-
Securities
proposed
exclusive
The
principally devoted
and sale of refrigera¬
conditioning equipment.
air
writers.
'
tion to
and
be
the
trust
107%-,
Treasury funds wiftJ
any balance, if neces¬
$4,280,000.
requiring
Form
500,000 first mortgage sinking fund bonds
which fixes the interest rate at 4.>4%.
>
Pa.
manufacture
the
Underwriting
opposi-
the open as any
reluctant to come out into
York,
Avenue,
Business—Activities
to
tion
the
case,
with
8
1943.
Address--Roosevelt
Or, are member houses doing one type of
grade houses
$4,500,000
2-5235,
No,
(10-20-43).
covering
for
S tat men t
standing
mortgage
and collateral
bonds, Series D, 3%%, due 1968 at
York Corporation filed an amendment on
Nov.
Commission
has filed a registration
first mortgage
sinking fund bonds series due Oct. 1, 1958.
The
interest
rate
will
be
supplied
by
Are all houses doing the same type
membership.
8-1.
York Corporation
statement
Another
Registration
CORPORATION
YORK
living.
a
Security Flotations
entitled
"Suggested
Ex¬
limitation of profits inas¬ changes to Improve Tax Posi¬
much as
to destroy free enterprise tion," which is of particular inter¬
Copies of this
as
you point out in the
last paragraph of the above mentioned est to investors.
article.
No doubt as you say the restrictions on profits proposed
study may be had from the firm
by the NASD would force a great many small dealers out of busi¬ upon request.
ness.
We are against any philosophy of government which would
advocate interference with trading for profit when the transactions
Flood With Estabrook
are conducted in a proper manner both from the legal and ethical
(Special to The Financial Chronicle)
viewpoints.
Unquestionably such a ruling would be a step in the
SPRINGFIELD, MASS. —Don¬
direction, of National Socialism which our armed forces are fighting
against in Europe and Asia.
It is certainly anomalous to encour¬ ald B. Flood has become associat¬
ed with
Estabrook & Company,
age practices and legislation which would produce the same gov¬
We
definitely opposed to any
such a restriction would tend
are
ernmental
conditions
that
exist in Germany.
•
1387 Main Street.
Mr. Flood was
previously
local
manager { for
YTou may put this corporation down as in agreement with your
service charge—approxi¬
mately- 4%.
He could very easily, without effort, buy a doubtful argument on the subject, backed incidentally by 25 years experi- Paine, Webber, Jackson & Curtis,
with which he; was associated for
utility at that price, with that or more profit.
[ ence in the securities business.
■ \\
many years.
I hope that what you have started so splendidly will awaken the ;
DEALER NO. 16
small dealer to a demand that the NASD represent him fairly and
I have instructed my lawyer to' write to, Henry G. Riter, 3rd,. 40
properly instead of seemingly agreeing, without a whimper, to what Wall Street, New York City, who is Chairman of the Board of Gov¬ Nat'l Terminals Corp.
to add
to all
$25 net profit as principal or as as a
of
us appears
to be manifestly unfair.
DEALER NO.
With
reference
to
limitation of profits, we
in the matter
the
recent
ruling
would like to
ernors of
14
to
of
the NASD
as
tathe
that our particular "gripe"
If, as you say, the executive
say
is the way it was handled.
personnel of the NASD neglected to present for the consideration
of the Board of Governors at their recent meeting at Cape Cod
their proposed ruling, then I think Wallace Fulton should be re¬
moved from this responsible position and replaced by someone who
is
goinj* to better serve the members of the
Association who, after
meet
the NASD to determine whether or not
and rescind
the Governors mean
their maximum profit decree in
view of the
Situation Interesting
National Terminals Corporation
"Chronicle" makes that it is obligatory under the by¬ offers interesting possibilities; ac¬
laws of the Association and the Maloney Act to follow democratic
cording to an anlysis of the situa¬
procedure in matters of this character.
I do not want to come out tion prepared by Adams & Co.,
in the open in the matter at this time and have, therefore, asked
231 South La Salle Street, Chi v
my lawyers not to reveal the name of their client in writing to
cago, 111.
Copies of this memo¬
Mr. Riter.
I think that every dealer should do the same and find
randum may be had from the firm
out how we all stand.
If the decree is not rescinded I will, and
upon request.
hope all other dealers will, come out and fight openly. .
point the
THE COMMERCIAL & FINANCIAL CHRONICLE
1916
1943
Trading: Markets
Firm
5
stocks
Home
BRAZILIAN SECURITIES
with
post-war
All American
Bendix Home
rARL MARKS & pq INC.
the
Non-Stop Air Pick Up,
Aviation, Inc.
Appliances, Inc.
Allen B. DuMont Laboratories, Inc.
FOREIGN SECURITIES
SPECIALISTS
Harvill
Corporation
New York 4, N. Y.
50 Broad Street
in
prospects
Laundry, Electronics, Die Casting and Television fields.
all issues
=====
11,
For Dealers
Teletype—N. Y. 1-971
IIA mover 2-0050
Thursday, November
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
Majestic Radio & Television Corp.
=====
Trading markets and Information
U0ur Reporter On
Governments"
request
on
Kobbe, Gearhart & Company
By S. F. PORTER
INCORPORATED
^
The "weak sisters"
still
getting out
Especially out of
the 2s of 1953/51
Some getting out of the 2y2s, too
This
week selling from Stock Exchange firms reached a climax .
.
Simultaneously, the stock lists were 'way off, on the recurrence of
peace reports and fears of conversion difficulties, so the coincidence
of the liquidation is not hard to justify
There's no point in hid¬
ing our heads beneath a bushel of market propaganda
The fact
is, this new loan has not acted well, the market hasn't acted well
and the number of disappointed free riders is legion and spreads
from coast to coast
Which brings us directly into the reasons
for the situation and the possibilities frond this point on.
are
.
.
.
Members, .New
.
....
...
45
.
.
York
NASSAU
Security
Dealers
STREET,
Association
NEW
YORK
5
.
telephone
REctor
philadelphia
2-3G00
Bell
telephone
Enterprise 6915
new
Teletype
1-576
york
....
....
and
get the added
necessary."
To
honest
be
about
it,
thing to get out of the
every
way
of these sales is
one
a
good
dumping their 2s and 21/4s
on
the
better
and
the
the
factor
has
is
and
recovery
delusion,
a
down much
permitted
to
go
over
as
you're reading this,
even
words
are
more
.
.
as
this
.
The reasons?
market
♦
.
ment
.
.
degree where only the worst of possible
And
.
short
a
war
the market, ad infinitum
of and puzzles they've been
.
news
.
.
.
without
bids
to the
for
.
.
.
.
....
unloading and banks were
Result, the 2s hit 2/32
Tax-exempts were virtually
rescue
1/32
bid
at
time.
a
were
....
....
.
.
.
....
...
rations.
is not only of major significance to all holders
of low-premium
securities, and especially the new 2s, but it also
has an almost magical
psychology importance
Par cannot be
.
.
.,
If par
is broken, then the decline must be
stopped
there and switched around on an instant's
notice
The authori¬
ties must step in and act
quickly and without quibbling over the
extent of direct and indirect
support
These are the
opinions
....
convictions
And
been
that
fact
alone
....
is
In
enough
fact, they
to
are
make
witnessing
of
an
interesting
illustration
of
the
holding low-premium securities
recently
The
down to the close-to-100 level are
critical in any
reaction
They're the ones which are
given official support
first
And as for high-premium
bonds, not only are they
not important for support
purposes but they also
get none of
the outside speculative buying on
any drop.
It's a good lesson
Whenever you can, shift to a
low-premium
bond, take whatever profit you have in the
high-premium issue
....
.
virtually
new
life into
security that has
a
...
to
the
Treasury,
insists
2*4%
a
v
interest-
Bond Club Of Denver
.
.
.
.
a
Elects Hew Officers
negotiable bond in the hands of millions
DENVER,
...
a
nual
COLO.—At
election
Bond
Club
of
the
officers
an¬
of
the
of
Denver, Elmer G.
Longwell of Boettcher & Co. was
....
holders of the Series G bonds that the
redemption prices are below
and the general feeling among those investors that redemption
means sacrifice of
principal.
par
.
A
third
believes
and that
overcome
.
will
to the
Liberty loans in 1920
occurs,
as
....
When those bonds sank to the low
unhappy citizens sold at the low
be
may
seen
again
in
last
(Which
....
week's
free
riding
...
Authoritative report is that with two
exceptions of men on the
Treasury's staff, every key person in the Treasury is in favor of
issuing a low-denomination, coupon bond in the Fourth War Loan
Possibly the denomination would be $100.
....
.
Second, there's tremendous
sale of bonds
on
power
behind
a
.
.
movement to permit
the installment plan in the
January loan
to the total of bonds desired
during
....
dividual
could
subscribe
drive, could pay
Trouble
his order between drives.
up
here
is
president of the Club, suc¬
ceeding Malcolm F. Roberts of
Sidlo, Simons, Roberts & Co.
Ernest
negotiable bond
a
a
....
80s and millions of
named
.
Morgenthau's objections to
low-denomination, interest-bearing bond
be sold
That's rather a question, for it's fairly well known
Morgenthau shudders every time he thinks of what happened
that
that there's
not
much
plan unless a negotiable bond is sold.
.
.
In¬
the
...
was
Miss
an
installment
Stone,
Moore
elected
vice-president;
Swearingen, Earl M.
Co., was chosen sec¬
Phillip J. Clark of
Amos Sudler & Co., was re-elected
Scanlan
retary,
&
and
treasurer.
Four
new
directors elected
were:
J. H.
Myers, Harris, Upham & Co.;
Orville
Neeley, Merrill Lynch,
Pierce, Fenner & Beane; L. W.
Linville,
John
G.
Perry
&
Co.;
and Malcolm F. Roberts.
Miss
man
Swearingen is the first
to be elected
the Denver Bond
National
to
an
wo¬
office in
Club, an affiliate
Security Traders
Association.
«
.
conference
is
that
the
Fourth
$12,000,000,000 at the outside
range up to $20,000,000,000.
Loan
....
should
not
total
than
more
Despite the reports that it
may
...
From
ket
....
now
the
on
Fourth
War
Loan
is
the
news of
We've only two more months before it arrives
the
mar¬
And,
....
incidentally, the market will have to be in shape to absorb it
You know what that
means.
.
.
...
.
Lehigh Valley Interesting
Raymond & Co., 148 State St.,
Boston, Mass., have prepared an
interesting new discussion of the
Lehigh Valley 4s of 2003. Copies
of this memorandum may be had
upon
.
request.
INSIDE THE MARKET
INDEX
EAGLE
If
Page
Bank and Insurance Stocks
Calendar of New
LOCK
Canadian
Securities
Investment
Bought
——
Sold
—
Quoted
..1910
Security Flotations.
.1911
and
71
Exchange
Broadway N. Y. BOwlin? Green
Boll
9-7027
STY 1-31
1893
1916
1913
Utility Securities
......
Securities
1873
Real Estate
Securities,........,,
Tomorrow's
Markets—Walter
Says
reserve
doesn't
pick up steam soon, the chances of a
requirements will be better than at any time
The Federal Reserve authorities will not permit a
sloppy
market to interfere with financing plans or with confidence in the
so
far
....
Government
market,
it
is
believed
by
every
man
close
to
........'V.....;......
of
U.
1911
Whyte
.....1911
S.
borrowing" is
now
Empire Sheet &
Tin Plate
the
First
«■
...
"Peak
Our Reporter on Governments
HAY, FALES & CO.
market
1912
Public
Members New York Stock
in
.1912
Notes..."..
Our Reporter's Report.
Railroad
this
decrease
market.
Trusts
Municipal News
1913
&
Helen
of the
point to
Stone,
Co.,
Third, the feeling among the bankers and officials at the IBA
....
.
some
were
Series H bond, bearing interest on an ascend¬
ing scale and always redeemable at par, is under serious considera¬
tion at Treasury headquarters
Bond would meet objections of
the
bonds selling
.
bring
has been
than
:
close
man,
Another says
...
You've
virtues
throughout the nation
....
to
.
oppostion to placing
....
the
type of security
arrived
....
of little people.
The level of par
story true.
has
....
results).
of dealers and traders
.
.
One
always
SUPPORT
....
time
a
will be
....
broken!
The
.
recognized by official and private sources
News is
change will be made, and only argument now is exactly what
type of bond to offer individuals and perhaps non-banking corpo¬
.
No, it hasn't been a pretty market
But, again, this observer
goes over the line with the forecast that higher
prices will be seen,
and soon
And as of this
moment, buying is a lot smarter than
selling.
TIIE PAR
.
different
That is,
that
Problems the experts are well aware
.
practical
hours
.
in
»
.
bearing, non-negotiable bond will be tendered in the next loan
.
exactly at the time when free riders
2X/2S hit
.
and
war
experts
to believe the "basket" in the Fourth
reason
a
The Second and Third War Loans
....
on
Non-negotiability does away with threat of competition
with the outstanding 2s, also meets Secretary Morgenthau's
strong
.
Well, the market since the middle
discounting an early peace in Europe—much
earlier than had generally been anticipated—and was
discounting it
The
contain
will
originality and attractiveness.
.
of last week has been
come
.
.
the loan, to give buyers a shot in the arm with
change
.
....
.
.
problems of reconversion and cash
What does all this mean?
unable to
Loan
identical
.
bothering about for months.
(3) The report is out around Wall Street that Lloyds of London
is taking bets that the war in Europe will be over
by January 1.
bid
Bankers
some
First, there's definite
.
would
items of importance, gathered at the Invest¬
Association's 32nd annual convention held in New
are
borrowings and corporate competition in
means
Government
war
.
.
offered to date
....
.
.
.
War
....
.
...
And to the tax-
,
.
.
through 5
The conference
financing was attended by top-notch money
private life and by the Treasury's war finance men.
.
.
it
.
,
post-war
presumably
you
.
be
may
money
demands and
.
York from November 3
(2) The short war psychology now is at a new high point
The Moscow parleys plus the optimistic statements coming from
many and varied expert sources have encouraged that psychology to a
i
.
...
They're not hard to find
To be specific:
situation today is definitely aggravated
Money is tight in the big city areas, commercial banks are in no
position to enter the lists and pick up 2s and other bonds on a large
scale for the simple reason that they haven't the cash.
(1) The
so.
be
cannot
decline
now
Now here
know-
every
market
The
.
the
'matter of fact, for these
a
Thursday.
on
even more
JANUARY LOAN
pace
Because, unless
being written early in the week and
reading this analysis
are
will be
....
insane and unless
utterly
gone
snare
a
attractive
more
and if
as
on the Fourth War Loan are going along at
a high
Latest authoritative stories place it around Janu¬
ary 10, indicate it will concentrate on individual sales, point to com¬
plete exclusion of commercial banks.
lazy and disinterested market
....
the
rapid will be the
Treasury
able
And
....
more
support when,
Preparations
....
don't miss this major point
exempts
THE
picture in the first place
And
The sooner they're out entirely,
a
protection of "official
.
The people who have been
....
shouldn't have
been in the
.
That applies to the taxables, of course
....
...
.
admitted to
have
been
passed by no less an authority than the Federal Reserve Bank
of New York
....
war
upon
the Third War Loan and stabilization of
expenditures have combined to indicate the
end of the huge war loans.
Dealers
available
request
In its last bulletin the bank observed that
increased tax receipts,
month-to-month
Mortgage 6s, 1948
Memorandum
took this week's decline in stride
Hill, Thompson & Co., Inc.
Markets
...
120
....
There
was
prisingly little bearishness considering the extent of the fall.
.
.
sur¬
.
and Situations for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER