Full text of Commercial and Financial Chronicle : November 12, 1942, Vol. 156, No. 4124, Section 2

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NOV 11
igfc
Final

Edition

THURSDAY

In 2 Sections

-

Section 2

Keg. U. 8. Pat. Offlce

Volume

New

Number 4124

156

York, N. Y., Thursday, November 12, 1942
x

Salary Regulations Setting $25,000 Maximum:
Issued By Economic Stabilization Director
The
issued

the regulations

of

text

and salaries, which was

wages

on

F. Byrnes, Economic Stabilization Director, and
approved by President Roosevelt on Oct. 27, is given below. ' ■
v
The regulations deal principally with the Administrative re¬
sponsibilities given the War Labor Board and the Treasury De¬
partment in the regulation of salaries and with* the limitation on
salaries not to exceed $25,000 a@
■■
/,
—;—;■,/
■
by James

.

year, after certain taxes.
The War Labor Board has jur¬

•

isdiction

and

wage :

over

salary

payments not in excess of $5,000,
where

employee is represented

an

duly recognized or certified
labor organization or where the
employee is not employed in a
bona fide executive, administra¬
by

a

tive

or

professional capacity.

All

under

the

salaries

other

come

Treasury Department.
A

appeared in
1543.

our

Following
regulations:

is

regulations

the

of

summary

Chapter XVIII
nomic

text

the

—

of

the

Defense

Office of Eco¬

Stabilization

A

—

Office

virtue

By

in

vested

the

of

the

Constitution

the

Emer¬

4001.1—Definitions—When

Sec.

in

used

these

regulations, unless
otherwise distinctly expressed or
manifestly incompatible with the
intent thereof

(a) The term "Act" means the
of Oct. 2,'1942, (Public No.

729, 77th Congress) entitled "AN

the

Salaries

laws

Editorials
■

'Sf-'

;

;

•

•'/

the

to

Price

Control Act of

Emergency

1942, to aid
preventing inflation, and for
other purposes."
in

The

(b)
the

by the
of the

term

"Board"

War

National

Labor

by Executive

means
Board

Order No.

9017, dated Jan. 12, 1942 (7 F. R.
237).

The

(c)

.

Pagp

•

Way?........
Shall Personal Property Rights Be
Abrogated By Bureaucratic Edict?
*On

the

first

,

Section
v

•

*

1
' /

,

of

'-:

The results of the

voting last week are of as much con¬
as to
the politicians who for a
week have been busily engaged in
telling themselves and
the public why the people of the United States did to the

Washington Ahead of the

News-

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

.1713

...........

Moody's Bond Prices and Yields
1722
Moody's Common Stock Yields..... .1722

NYSE

Member

There

1725

localities here and there very substantially, possi¬
bly controlling^, affected the results in those areas. That
is always true in these in-between-elections where there
are
no
national tickets around which the voters may be
rallied.
Whether these purely local influences this time
worked more in favor of one party than the other, we leave

certain

Borrowings..........1728

State
General Review

of

Trade
./.........1716

.-.i.......

Commodity Prices—Domestic Index. 1724
Weekly
Carloadings.......,.
.1727
Weekly Engineering Construction. .1725
.

„.

October Totals

..

...

1724

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

Fertilizer Price Index

1719)

on page

to others to determine.

.1723

cut

Weekly Coal and Coke Output......1723
Weekly Steel Review................1723
Moody's Daily Commodity Index.... 1722
Weekly Crude Oil Production
..1726
Automobile

and

istics

Diversified Financ¬

ing (September)
Weekly Electric Output.......

Instalm. Loans. .1724

Zinc
*

*
statistics

"Chronicle"

at

omitted

direction

from

the

of

War

Censorship Board.
(See notice on first
page
of Section 2
in Aug.
27, 1942,
"Chronicle:")

FROM WASHINGTON

Miscellaneous

r

Regulations Setting $25,000
Maximum (Text Of Order)........1713
Manpower, Material Shortages
Threaten Ship Production...1717
Says Government Must Supplement
Salary

AHEAD OF THE NEWS

Coast

in Bureaucratic Washington. It was the subject of smear and
abuse, the subject of mocking and degrading articles in the maga¬
zines and the press.
It was treated contemptuously by the very bu¬
reaucrats whom it had hoisted to power. Plans were afoot to further
subordinate it.
Indeed, in the post-war world upon which our ad¬
vanced thinkers are laboriously^
it had been assigned a
lowly place, bereft of even

working

i

its taxing powers.

the
situation
has
The Congress meeting

Overnight

changed.
here

on

done in the past, remains to be
seen.

Jan. 4 will be a revitalized

to all intents and purposes it
will be an aggressive one.
Cer¬

one,

-A--;-* "V.\;

or,

■?' f\-.,

Before outlining the steps Con¬

gress

can

take and will certainly

undertake it should be stated that
there is every

indication that Mr.

Roosevelt, instead of acquiescing
in the new legislative aggressive¬

the attitude that

will take

tainly, its mandate from the peo¬

ness,

ple will be to restore itself in the
councils of Government. And from

the election has further

what this writer knows of several

fidence

those

of

elected,

an

aggressive

'

What

How

then; can it do?

can

it become more assertive?
Here

are

some

and I

go

upon

to the Supreme Court. Whether
latter body, as now consti¬

this

tuted, will follow the election re¬
turns as it is said the Court has

convinced

people's lack of con¬
Congress, and that he
further,

rather

than

to steer us through
the emergency.
Bear in mind, he
dissociated
himself
from
Con¬

attempted, with

probable resultant clash during
the year between the legislative
and executive branches that will

in

have

must

gress

a

the

power,

and Washington as a whole,

of war
before the
elections. He then gave the align¬
ment as the People and the Presi¬
dent versus Congress and Wash¬
return from his tour

plants

a

few

War

;...

.

i ..........1717

Postage on Civil Airmail Received
Through Army-Navy .............1717
Industries

in

Work

War

Show

Farm

Areas

War

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

Program
Submitted to Congress......... ■;. .1718
Treasury Allotments on Oct. 26
Offering
1718
of

weeks

One of the first

things that will

(Continued on page 1717)

Production

Britain's

with the activities of
the many Government agencies whose functions are of in¬
creasing importance to the conduct of business in the present
originating in Washington, together




constituted

wore

punishment for not being

ing the conclusion

that the

reason

faithful to the

more

There is

that the surprising

no escap¬

in last
in part at least

over-turn

week's election represents a turning away
(Continued on page 1715)

More Amazement Ahead!

Production
\

London

"Successful"

.....

.1720

Trip

Senate Bill

Plants
FDR

Seeks Full

Use of

on

1720

Property Acquisi¬

Prime Minister felt

the

tion

pact

1720

should

Says Reserve Banks Should Cut Idle
Reserves
OPA

"high conception of freedom and justice which

inspired" the Atlantic Charter?

Perhaps the President and

Small

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

Reports

What is the

1720

'

Heads. N. Y. Savs. Banks Ass'n...... 1720

was

now

they could not be

specific at the time

more

But it is immensely important that we

made.

precise and clear and specific in what we mean

be

1721

by it.

Simplifies Financial Report

Forms

..1721
Construction Power Projects. 1721

Halts
FDR

Removal

Asks

of

While the

Trade

,.1721

...

U. S. Interested in India Problem.. .1721
Issues

/

Conditions

Wage

for

Individual

Greek

Money"

October

Lauds Inland

S.,

Treasury

1725

Borrowings

Set,Record

1724

Waterways

Canada

Restrict

1716

Paper

Pro¬

of

to

the attitude that this is

v,..

after the

17J6

12 Res. Banks Cut Discount Rates..1728

Montreal

Observes

1728
State

showed

a

growing

Particularly

as

the type

an

to

It

war

even

in

are

war,

and after the

war

us

who

are

to

by

world

shall be

pur¬

seeking in fact

military command, its

common

to be run

to create a

which Anglo-American policies

implies that those of

make its strategy, its

now

Such comment takes

sources.

Anglo-American

purposes

both

all the United Nations must

speak softly for fear that free discussion will distress our

125th

Anniversary
N. Y.

me.

Anglo-American strategy and that we

sued.

Appropriations

Bill

of

report

which I refer has been obviously inspired by

governmental and propaganda

Promoted by Chicago Reserve Bank. 1716

Bank

on my

of the comment has amazed

comment

1716

Supplemental

Named

of comment

1725

Resistance

duction
Siprns

mass

understanding of the aspirations of the people of the-East,
some

Increases

Lauds

Banking Super¬

intendent

1728

British allies and disturb the

—Wendell L. Willkie.

accomplishment of

our war

aims.

,

New Directors of New York Reserve
Bank

Sets

1728

Price

Formula

on

Christmas

Articles

1715

Urge State, Local Tax Study
Consider

Registering Women

War Congress of American

Meeting

1715
.*.1714

Industry
1714

the

Representatives, for example,

titular leader of the Democratic party.

1718

"Unessential"

10% of Normal.
Morgenthau Says

U.

importance to business and industry, we are
obliged, owing to space limitations, to divert to Section 1 a
considerable amount of material which, under ordinary con¬
ditions, is usually contained in this section of the "Chronicle."
In bringing this matter to the attention of our readers, we
are mindful of our pledge to make every effort to increase
the value of the "Chronicle" by reporting, without delay,
all of the information essential to a thorough knowledge of
the manifold changes in tax and other legislative matters

would, however, be naive indeed to

Producers' Council Meets in Pittsb..l718

in

of paramount

It

1718

Foreclosures

Coolidge's Letters Placed Under Seal. 1724

expanding volume of current news

members of Congress who

many

Democratic label..

1718

Plane

Increase

"New

Due to the constantly

impossible to maintain
the contention, as some of the New Deal figures have under¬
taken to do, that broad national factors or influences were
not at work and rather dominant in the voting.
It is, of
course, not easy to single out the "issues" which decided
the election in this way.
It is in this case indeed the more
difficult to do so by reason of the fact that the President
and leader of his party was well known to be at logger-

Unemployment

in Russia
To

In

is

it

Urged
1718
Years' War Training Decreed

Non-Farm

FDR

Notice To Our Readers

in Gubernatorial chairs.

or

these

as

Benefits

Eight

Barriers

ington.

circumstances

.1717

Transportation

Liberalization

to its seats in the House

such

loss of seats in the House of

Re¬

duced Profit Margins........
1721
Urges Single Agency to Direct War
Program
.....
1722
Sept. Munitions Output Up 7%..... 1722
Building Activity in First 9 Months. 1722
New
Dwellings
Increase in
NonPost

on

Zm7.{ heads. with

w...

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

tation Plans

.

pre¬

ways,

dict they will be

of

lesser

body it is going to be.
*

him

Post

Urges Plants to Establish Transpor¬

agency

very

For

Employment ..................... 1717
Approves Pipeline Extension to East

the least influential

~A few weeks ago Congress was just about

;

Business

Private

•

By CARLISLE BARGERON

were revealed in the voting
week, there can be no doubt.
Almost, if not quite
without exception, the Democratic party lost ground to the
Republican party—even in those districts (apart, of course,
from the solid South) in which the former managed to hold

of last

i

Sales

These

,

That broad national trends

*
*
*
*

Copper Institute Summary.........
Pig Iron Production
Finished Steel Shipments..........
Daily and Weekly Copper, Lead and

■"'y;vf■'z''-'::'
Broad Trends

October Department Store Sales... .1723
American.Zinc Institute Summary..

purely colloquial contests and furnish the
strokes which give the picture its notable character¬
that chiefly concern the business community gener¬

ally.

1726
1724

It is in broad national trends which

such

across

bold

Metals Market.........1727

Non-Ferrous

Administration in 1942 something very similar
they did to the Wilson Administration in 1918.
can, of course, be no doubt that issues peculiar to

to what

1725
1726

.

Values.

Share

NYSE

.

man

Roosevelt

Item's About Bank and Trust Cos... 1728

Trading on New York Exchanges..
NYSE Odd-Lot Trading.

the business

to

cern

Situation; A.............. 1713

Financial
From

E

*

Regular Features

;

.

in
;

page

today's "Chronicle."

"Commissioner"

term

(Continued

United States, and particularly by

r'"

'

Get This

How Did We

Commercial Banks

authority

President

and

amend

ACT

Copy

GENERAL CONTENTS

Paperboard Industry Statistics.....1723
Weekly Lumber Movement..........1726

—

a

The New Menace-To Insurance.v... .1714

1942, entitled

Price Control Act of 1942,
preventing inflation, and
for other purposes" (Public No.
729, 77th Congress, 2d Session),
the
following
regulations
are
hereby promulgated.
v

created

4001—Wages and

Part

2,

amend

to

gency

the

of

Director of Economic Stabilization

>

Oct.

Act

32—National

Subchapter

of

to aid in

v

t

Title

Act

"AN'' ACT

issue of Oct. 29,

page

..

the

Price 60 Cents

We suspect

that Mr. Willkie will be "amazed" a good many

times before this

This is, after

war

all,

a

and its aftermath

are

real world in which

things of the past.

we

live.

THE COMMERCIAL &

1714

Editorial—

President Considers

t,

.by the public authorities) -of their policy contracts, and .then
by selling these contracts to the public at uniform prices and
rates..
Of inestimable .value, in this restriction; of competi-.

.

Registering Women The New Menace To Insurance

.

lion, was a decision of the Supreme Court of the United
States, reached in 1868, in Paul v. Virginia, that -'issuing a

President Roosevelt said on Oct.
30 that the Government

is consid¬

compulsory

registra¬

the

ering
of

tion
of

65

and

18

emphasized that the

plan does not envision the draft¬
ing of women.

has

not

ByW.C.BETTS

a

policy of insurance is not

is

a

transaction of commerce" and

that transactions of insurance"do not constitute a

aspect of the insurance business which
received the attention which it merits:. 1 It .con¬

There

ages

possible use in

for

work but

war

between the

women

T

Thursday, November 12, 1942

FINANCIAL CHRONICLE

one

commerce

principally the Fire, and Casualty Insurance! Com¬
panies, and springs primarily from, the rivalry which,; for
many years, has existed between the capital stock organi¬
zations and those formed on the so-called mutual plan.
It

that

T

:

,

part of
;

.

V

too, belongs that concept of underwriters
risks, however undesirable, might be insured if only

To this

;

cerns

between States."
era,

premium charged was supposedly "high" enough. One!
assumption was to make outbreaks of fire far
question
too frequent.
And the corollary was' that, for many an.
is heading for a point wherejit may become a serious men-;
of the general reservoir of avail¬
ace
to the interests of investors in insurance stocks,; to industry, the, average!,cost of fire insurance became pro¬
able labor with particular refer¬
hibitive because, statistically, the good risks in an industry^
ence
to the problem of women.
say nothing of other groups'.
' /
Mr. Roosevelt said that, inasmuch
were
grouped with the bad ones, so that the same basic rate
For many years, this rivalry has varied in - intensity:
as there are about 6,000,000 men
was applied to all risks in that industry, good and bad. ,.;U
For the last 50 years, it has borne the shape of verbal at¬
in
the armed forces
and many
/. A.,. More and more, those who kept their premises in good
tacks by the capital stock companies.
others in war factories, there will
The mutual organi¬
not be enough left to fill the ex¬
zations have parried with retorts mostly innocuous, and repair and condition, and did all possible to avoid lire;
pected demand for 4,000,000 to 5,- with
great inroads;into the income.of the stock companies. grumbled about the high cost of their insurance, the result
000,000 additional workers next
•of bad underwriting principles.
To their clamor that their
These, in turn, have now taken measures leading to a situa¬
press

that he had discussed

conference

leaders

labor

with

his

told

President

The

the

the

effect of this

.

,

The President added that
largest source of untapped
labor supply was among women
and that the planned registration
would be to find out where the
year.

the

available

supply

of

women

tasks

they

could

what

and

are
per¬

form.
'

Secretary of Labor Frances Per¬
on Oct. 31 that 3,000,-

kins stated
000

within

industry

United

year;

a

in

needed

be

would

women

advices reported

Press Washington

said

Perkins

•that

Miss

were

needed not only in war

women

in¬

dustries, but also in other places
where they
coulcl replace men
transferred to war jobs. The speed
which

with

will

women

ab¬

be

added,
will depend on the speed witlf
which the men they are to replace
are drafted into
the armed ser¬
sorbed

she

industry,

into

vices.

Industry Congress On

Making America Strong
President
Association of

William P. Witherow,
of

National

the

Manufacturers, announced Oct. 20
the

that
ican

Congress of Amer¬

War

will meet at the
in
New
York

Industry

""'•^Waldrof-Astoria

Decl"27~3,'~a,id~" 4. '~Cruciffl

City

problems arising from the war
and
affecting the life of every
American businessman, said Mr.

Witherow, dictate that the theme
of
this year's meeting
shall be
''Making
America
Strong—War
Power,

Man

er."

'

Power, Peace Pow¬
■
;/■'; ■■■'■.•' • •

Recalling that the 46th Annual
the

before
bor

attack

hours
Har¬

Pearl

on

responsibilities and

that

and

24

barely

closed

Congress

obligations of every industrialist
had increased many times in the
last year,

good risks were profitable, the answer was: "Your risks:
enough to cause concern.
understanding of what is involved will come may be good, of a kind, but- they belong to a poor
class—we'll show you the figures."
There is evidence,
from a glimpse at the history of fire insurance in this coun¬
hitherto not seriously disputed, that if, statistically, the loss
try.
The pioneers in this business-, provided insurance
record of a particular industrial or commercial class was too
against loss by fire through funds set up by* the policy¬
good to justify the continuance of a high average basic
holders, out of which the luckless ones were indemnified.
The funds were administered by the policyholders, associ¬ premium,-the powers-that-be would worsen the statistical
record of that class by including, with it types of risks
ated'as "contributionships."\ In part, depletion of />these
known to be distinctly inferior.
For instance, the fire
funds was guarded against by the creation, of volunteer fire
hazards of the wholesale stationery business were actually
companies: oil the outbreak of a fire, they hastened helterskelter, with hose, pumps and fire buckets, intent upon ex¬ grouped statistically • with ^ those of the business • called
tinction—-provided,-however, the flames menaced premises euphemistically "ladies' boarding houses," risks notoriously
Out of such questionable practices, and others, there
insured in the particular' societies with which the groups of poor.
developed an ever-growing body of aggrieved and pro¬
volunteer firemen severally were affiliated.
.-v:/■-'
voked buyers of insurance.
: ; ;
T;
In order that these doughty. fire-fighters should not
The provocation was such that it caused sundry indus¬
run the risk of helping a brigade employed by a rival society,
trial groups to embark in underwriting of their own, on the
each contributionship attached metal identification plates
mutual principle.
They went back a century to the basic
to the facades of buildings protected by its policies.
The
result was that each alarm of fire caused a scamper of ideas, whose abuse and debasement had given the impulse
to the start of capital stock insurance.
History was work¬
many fire-brigades to the point menaced, and, as soon as
the name-plate on the-burning building had established ing in reverse: the former chastisers were now to be chas¬
the identity of the insuring company involved, all equip¬ tened; for the same reason, selfishness and short-sightedness.
;
'' A..
ment promptly 'Was withdrawn from the scene of fire, saveThe new movement grew steadily in scope and power,
that belonging to the society whose name-plate was in
particularly in the strongly industrial states of New Eng¬
danger of scorching. .
'
land.
The New England Factory Mutuals, as the group
Despite the fact that these contributionships ran on/a
was soon called, amateurs as they were, turned out to be
mutual principle, of sorts, and practised non-profit benevo¬
excellent underwriters, better in fact than the profession¬
lence, their senseless rivalries waxed ever more unfriendly,
als whose obtuseness had brought them into being.
They
to "The "point of reciprocal gloating over the misfortunes, of
prospered,
probably
beyond
their
own expectations.
It is
rivals.
Oddly enough, these tense animosities, which often
not too much to say that, in the main, they did so, by wed¬
led to fisticuffs, attained their fullest development in the
City of Brotherly Love.
All , this silliness and short¬ ding superior engineering to clever underwriting. They
thereby reduced the incidence of fire, and consequently the
sightedness finally had to be cured, so joint-stock com¬
cost of their own insurance, far below any point that had
panies were; started, benevolently ■ to put out anybody's
ever been experienced in the classes of property comprised
fire; that is, even fires originating on premises not cov¬
in the scope of their operations.
As they thrived, their
ered by any insurance.While the, subscribers-to these
ideas spread to ever new fields, with; fresh successes.
"
capitalistic ventures must have-been incensed by the self¬
ish and shortsighted behavior of the mutual contribution- .•'A. The capital stock companies were slow to change their
For a long time, they
ships, they doubtless also foresaw that money was to be habits, to copy the new methods.
made out of their protective enterprises. ;!,"//a;
v.'. V\\-a looked at the newcomers with disdain, and issued dire
tion serious
'

.

better

A

,

,

Mr. Witherow. told the

of the original contributionships died
derelict in my duty as a citizen off, and the survivors today can be counted on one hand.
The capitalistic
if I asked you to plan attendance
fire-fighters shifted the cost of1 buying
at this meeting unless I felt be¬
pumps, their use, and maintenance, to the taxpayers, and:
yond
a
reasonable doubt, that concentrated their efforts on keeping the fire funds ''in
that

manufacturers

the discharge

The
erow,

of

ycur

responsibil¬

task."

our common

said

program,

With¬

Mr.

who is President of BlawPa., will

Knox Co. of Pittsburgh,

In

be

there would aid in

your presence

ity to

would

"I

include executives of the War and

time,

most

Board

duction

other govern¬

and

above, more loudly,! if not more

effectively,

antagonism directed against the Mutuals.

rose

the vocal
\

V '
It is not opportune, now, to go into the history of this
shape to pay salaries and other expenses, claims', a little
In brief, it may be said that/ it has been
something on the hire of capital, and to provide for a rainy j controversy.
day, or rather an especially hot one.
At the start, the elee¬ neither edifying nor profitable. For long years, its am¬
munition has been distributed to, and fired off by the stock
mosynary intent of the original capital stock companies

These incidental duties have been
have been great, but it dwindled when the field was < companies' field-men.
by rivals aware that benevolence for prof it alone * ill-directed, too often characterized by ineptitude, and have
seemed adequately effective.
v ...
';
■ • accomplished nothing so much as furnishing the attacked
There followed long years of intensive development Mutuals with material on which to base effective counter¬

may

invaded

.

Navy Departments, the War Pro¬

warnings regarding their probable fate.
But louder and
louder, nation-wide, rose the cries of alarm from the agents
and fieldmen of the capital stock companies.
And, as said

.

...

■ " • '■'••
v
■ < ; •?
. A
• ••■ •'
growth by capital stock companies. In the main, they arguments.
prospered to such a degree that, lured by the seemingly ( A A few years ago, this scattered fire against the Mutuals
prosecution of the war.
•
was supplemented by a special pooled effort
of The stock
easy winnings, greater numbers steadily entered the field'me preliminary program, it is
fire insurance; companies. • At a cost of several hundred
Few attained any permanent success.
The
graveyardin
announced, includes William M.
which the failures lie buried, accommodated scores of hap¬ thousand dollars, they set out to convey to the millions who
Jeffers, recently named Rubber
less companies, whose, obituaries confirm the belief that read the entertainment weeklies, that as; if, and when they
Administrator, who is now on a
when the business of fire insurance succeeds, it is good in¬ were in the market for insurance, they should buy it from

and

ment

agencies occupied with the

w

nation-wide tour studying

Ludlum
head

of

Steel
the

and

now

Steel

Div¬

Corp.,

Iron

WPB,

Allegheny,

of

President

former

that in¬

Batcheller,

G.

Hiland

dustry.

and

Leon

Henderson,

ision

of

OPA

Administrator, and Paul V.

McNutt,

Chairman

of

the

War

Manpower Commission, are three
others

who

will

appear

program.




on

the

capital stock companies, rather than elsewhere.
If one
be devastating.
may judge by the statistics of the ever-swelling income of
of this era belongs the internecine
the Mutuals, the hebdomadal purveyors of fiction did not
varfare between capital stock companies, when raids on
carry the message across to their readers.
Perhaps the
premium income, and rate-cutting grew exuberantly. .The
message was too subtle, or too tenuous, for the grasp of the
consequent inability to carry out obligations assumed, by
readers.
Or perhaps the Life Insurance companies, which
large numbers of companies, led to more and more governr
have some 60,000,000 policies in force, mostly headed "Mu¬
ment control and more stringent regulations.
The stal¬
tual Company" and also use the same vehicles of publicity,
wart, well-buttressed. companies survived, and, to pro¬
interfered with that heavy-footed propaganda.
tect themselves against continued inroads, they strengthened
At any rate, recently recourse was had to a new weapon,
their trade position by the standardization. (first approved
deed; but when it goes awry, it can
To

.

the latter part

Volume

THE COMMERCIAL & FINANCIAL

Number 4124

156

1715

CHRONICLE

certainly strike our readers, more convert ticular, fields where their services were needed. Too many
are familiar with this story at least in its broader outlines
fiction, as-being a most dangerous one to
for it not to have cost the [Administration a good many
use.
The capital stock companies, how and by whom need
The appearance of utter administrative con¬
not now be scrutinized, stirred up officialdom in Washington, supporters.
fusion in Washington has, indeed, become almost a byand certain Senators, into making a proposal that the
word throughout the land. , '
Mutual companies, hitherto exempt, henceforth should be

one

Sets Price Formula

which would

sant with fact than

:

Or Christmas Lines
The Office of Price Administra¬

which

sure,

will not be allowed to rest there;

Now, it is but a short time ago

the

held

by them as trustees.
It was clear to anyone who fol¬
proceedings of this Commission closely, that be¬
its mask,:the probing was meant to reveal evidence

ordinary

hind

which would

der Federal

justify the placing of the Life companies un¬
supervision.

The furtherance of this

<

design was masterfully blocked.

instigators made one fatal error: they left out/of ac¬
count the existence and influence of some 30,000,000 satisIts

•

policyholders, solely intent on protecting themselves
dependents against the hardships of their declin¬
ing years, or the tragedy of their last one.
The Commis¬
sion's work ended in an unmitigated fiasco.1
.
;
/

fied

.and their

/,/■.,

V....

(such

trouble.

.

■

and

'

larly sold, by the vendor in sea¬
sons
other
than
the Christmas

The confusion of counsel, the disharmony among

,

—

-

:

1

1 1 ■.—

and that in all war

THE FINANCIAL SITUATION

production 46 hours or more is the aver¬

that in certain operations
that many hours a week,
but what he said is literally contrary to reliable statistics.
from the Administration, and it is important that the busi¬
In very few industries even where war work predominates
ness community determine so far
as is possible the scope
or has replaced all else, is there such a thing as an aver¬
and direction of this change.
'
age work week of 48 hours, and not many where it is 46
hours.
But however all this may be, the President could

'

■-

He

age.

(Continued From First Page)

:/

men

are

season.

within

falls

package

a

it

classification

second

the

;

.

When

may

single commodity
and the maximum price for it de¬

be treated as a

the formula in Sec¬
of the General Maxi¬
Price regulation.

termined by
tion

3

mum

(a)

could not reach the roots of the

.

.

price

combined

a

aging, or those in which the pack¬
age contains an article or articles,
all or any of which are not regu¬

.

.;

type which normally

a

carry

higher than the price charged for
the contents without special pack¬

•

,,

of

is

would

casualty

■

which the packag¬

in

ing consists of material other than
paper
and
ordinary
cardboard

body, it may go hard

-

socks,

special wrappings.

2. Those

larly adopts the attitude that those to whom he speaks lack
with them. Certainly, hard ordinary intelligence.
• /
'
V
enough to make them wish that they had never carried a
/•;/
A Poor' Defense
•/y.%'\'
"relatively unimportant dispute to the fountain-head of
f His most recent defense of the 40-hour week is an ex¬
headaches.
If it be not too late to do so, a serious attempt
cellent case in point.
His facts, in the first place, appear
: should be made by both parties to the dispute to bury their
to be at variance at points with virtually all published fig¬
; hatchets, and to head off the consequences of someone's
consummate blundering.
/ -,, ures. He says that in the production of most important
1
——:
:
war goods men are now working on the average of 48 hours,

Federal

>

are

vendor in
ties,

cigarettes,

as

out the

companies, and their runnings those who undertook to present even facts, and other plain
mates the fire companies, have no such bodyguard as .30,- infirmities of official outgivings from the mouths of many
000,000 satisfied policyholders ready to pounce on evil law- underlings was doing harm, but the President himself ap
makers, in defense of their sacred interests.
And if they peared, and still appears upon occasion, to lack candor in
become the objects of a searching Commission, bent on his dealings with the public—and in addition rather regu¬
stock

The

•

and

articles

handkerchiefs, etc.).
The maxi¬
mum price for the contents and the
packaging in this group is the
maximum price which normally
would apply to the contents with¬

Distrust of our military communiques, based upon dis¬
appointing experience, is known to'be all but universal,
but almost equal skepticism of the competence and candor
or
many other pronouncements from Washington is cer¬
tainly not uncommon.
Some time ago the President, ap¬
parently sensing, some of the unfortunate results of this
latter situation, undertook to correct it by muzzling his
subordinates, some of whom really had been doing too
much pointless talking*
This action, however, did not and
nature of the case

Com¬

other than Christmastime

seasons

;

in the

of

both

or
or

sold by the

regularly

their war-won dictatorial powers
people are learning by experience
be regimented, and they do not look for¬

,,/

cardboard

in which the article

give up a great deal of
when peace comes.
The

r.T'v;L.:'

"Journal

which the packag¬

in

Those

1.

keenly conscious of the domestic political scene,

importance.

York

ing consists primarily of paper or

looking forward to the day when he will be in the posi¬
tion (so he hopes) to make his New Deal, not nation-wide,
but world-wide.
Meanwhile doubt grows daily from well
fertilized soil that he or his supporters will ever willingly

lowed the

New

two main groups:

companies underwent an extended investigation • by a what it means to
fact-finding Commission, charged with the duty of deter- ward to decades of it with relish.
That all this, or much of
mining whether or not the companies were an economic it, tends to hurt the war effort either is not understood by
menace by reason of the power inherent in the vast funds
the Administration or else is regarded as of secondary

;

Supple¬
effective
when the

24,

merce," which further said they
classify the holiday packages into

is

that the Life Insurance

No.

manufacturer
or
producer,
ac¬
cording to Washington advices to

•

feel

Order

2, applying only
special packaging is done by the

,

! The matter, we

of

wholesalers

Nov.

v

he is .still

and

the hundreds of
articles
specially

The rules, contained in
mental

•

this evasion resulted in the loss of several million
•dollars a year to the Government.
The inference behind
this accusation is plain—the, present form of supervision
;
should have been able to discover such goings-on, but didn't!

rules

packaged for Christmas sale.

'

company,

retailers

thousands

the

30

maximum prices

charge for

may

,

,

Oct.

on

for determining

Federal tax on the income derived from their
V
"Social Reforms"
; operations, said to be non-profit making.
"
The impression that the President is running the war
Nothing more need be said, at present,'about this pro- with one
eye upon his so-called "social reforms," and with
posed legislation save that the repercussions have already a constant determination to continue and. develop them
been startling.
Hitting back, the Mutuals have affirmed,-as further the moment hostility ceases can scarcely have
a mere starter, that the capital stock companies are actuated,
failed to register
itself upon the minds of a great many ob¬
by a desire to raise the cost of doing business on the mutual servers not completely enslaved byvNew Deal propaganda.
plan, hoping thereby to stiffen all premium rates- They His insistence in season and out of a continuance of the
point out, .too, that the stock companies, paying only about 40-hour week law, his unvarying devotion to the leaders
j 1 %
Federal income tax, despite grossly expensive manage¬ of
organized labor, his soft dealing with the farmers (not¬
ment, have paidhandsome dividends, stock and cash, out of
withstanding his apparently firmer attitude than that
their earnings. They Have gone further; they have affirmed found in
Congress), his apparent itch for more and more
: that
two named companies, writing casualty lines exten¬ intimate control/over the
everyday life of the individual,
sively, have evaded the payment of Federal taxation, except and much more of the same sort leave the dispassionate
a dribble of the amount rightly payable; and that as to one
observer unable to arrive at any conclusion other than that
made to pay a

issued

tion

may have meant to. say
the average working

on

Mlg. Bankers Seek
National Tax Sfssdy
more than
units ^with

the

that

Asserting

Government

165,000

easily be reduced about 90%, or
20,000 if public opinion
would demand it, Charles A. Multo around

lenix, President of the Mortgage
Bankers Association of America,
announced on Oct. 25 that the
organization will fully support

the

legislation seeking to establish a
Commission

on

Tax Integration to

study local, State and Federal
systems and seeking to
all

The As¬

possible overlapping.
membership

sociation

support 'the

tax

eliminate
voted

to

sponsored

measure,

by Representative Coffee of

Wash¬

ington, at the annual meeting in

,

never have made such statements about all essential pro¬
suggest three basic respects in which
it seems to us the public has developed rather deep doubts, duction, which is really the point.
But equally as unfortunate was his defense of the 40not to say outright dissatisfactions, with the New Deal
hour week by insisting that when men worked more than
Government.
First, we think we discern a quite general
48 hours production was not permanently increased.
The
feeling among the people that the war effort on its highly
President must know as well as the rest of us that men
'important industrial side is not being well managed in
are not working 48 hours a week in this country as a gen¬
Washington.
Second, we think that the belief is wide¬
eral rule, or anywhere near it.
Furthermore, in citing the
spread that the Administration does not have an eye single
to the prosecution of the war on all fronts, including the alleged disappointing experience of other countries with
domestic aspect of the struggle.
Third, we believe That fearfully, long work weeks, he calmly ignores the wellknown fact that men work many more than 48 hours (to
the public is becoming more and more doubtful, to say the
least, whether the
Government, and particularly the say nothing of 40 hours in Great Britain today where
/President himself, is always these days dealing...with the production per capita is said to be the highest in the world.
The President's discussion of this subject is—-with deep
rank and file with perfect candor.
regret be it said—something less than candid to say the
v That there
has been much bungling of the over-all
least, if he has, as we must,/suppose, taken the trouble to
management of the war production would appear obvious inforrm himself.
even to the layman.
Millions of men and women must be
Whether the public will go forward, as in the first
aware of these shortcomings as a result of their day-to-day
World War, to repudiate altogether the Administration
contacts with it in the factories and elsewhere.
Inadequate
management of the flow of materials is, without question, which conducted it, will, we believe, depend a good deal

We

venture

to

Chicago. The greatest benefit now

post-war period would

and in the

inefficiency in State

be in cutting

.and

local

said

and

systems,

Mullenix

Mr.

'

'

.

.

.

the direct cause

of failure to produce many

things which

by now could have been in existence had greater foresight
and more competent, management been exercised.
Behind
this failure lies a long story of hostility in Washington
v

Toward

men

of proved experience




particular
read these election

creation of
make
maze

"All

I

tax

should

believe,

over-all prop¬

limitation so that real

the al¬

property will cease to be
ways

dependable source for levy¬

ing higher taxes.
cedure

must

be

Assessment pro¬
modernized so

value

taxable

that

will

least

at

relation to productiv¬

have

some

ity.

Any fair study will

surely

reveal that real property

is today

tax

burden

carrying
than

upon

whether this Administration can

the

and ability in the par¬ people that it has.

States,

adopt the sensible

the events of the next two years, and in

accurately and act accordingly—and convince the

Mr. Mul-

added:

lenix

erty

the first

lasting tax re¬

this country.

in

form

the

of

study

of taxing bodies is

step looking to any

upon

returns

Federal tax body to

a

complete

a

felt

added that he

he

a

heavier

other forms of wealth,

danger

even

and

is very real that an

greater

placed on it."

burden

may

be

tic

issue, has come to our notice.
Striking events are making manifest the real value of the inland
waterways.
Now, owing to their safety and to the burden on the

the nation's

greatest assets, the Federal water-

for
supplies,
military
and
aid, how futile the situation

equipment,
naval

would

and

for

but

be

Superior to ports on Lake Michi¬

water¬

these

gan

and Erie would not exist, ex¬

a transportation cost of
eight to ten times the water
rates.
Our commanding position

cept

ways.

in

shipyard

Every
located

on

waterway improved

a

at

from

is

America

in the steel world would be lost.

by the Federal Government.

Without these

Without improved harbors,

im¬
proved channels from the sea and
lakes, our Navy and Merchant
Marine could not exist; our rail¬

facilities, the

same

roads would not have the tremen¬

price of coal in the upper lake
regions would be increased tre¬
mendously, for the same ships
that bring ore down, the lakes go

dous tonnage brought to or

back with coal.

from them by

nals

would

made

were

The value of

of

cities

The

of

Lakes

Ohio

and

the

Without

New

Cape

transportation
York

and

Canal,

Cod

be

perilous, take longer and be

rn^e

without

ping

the

face

probable

sub¬

the

Without
made

the

on

improvements
River

Hudson

the New York State Barge

and

the

West

its hinterland
San Joaquin,

and

The

will be
international basis. '
"Many factors beyond the con¬
of

trol

the

paper

industry," the

said,'"inevitably will dimin¬
the production of paper in

WPB

Canada and the United States,

increasingly impor¬

the low

j

"Both countries have more than

transportation

adequate forest reserves. The trees

inter¬
change of freight at water-rail
terminals, a vast tonnage would

there, but every
other factor, from the manpower

What

portation to the paper consumer;
is becoming increasingly scarce as

the seaboard would be a

it would be
for the nation if the interchange
a

by

possible

the

wholesome

railroads.

thing

of water and rail traffic was fully

purpose; they help keep railway
rates where they should be. The

ventories and use of paper

become

reach

another

WPB
distribution, in¬

diminishes,

output

commercial arteries.

never

serve

As-

will

ucts between the Great Lakes and

waterways

capacity and

near

tant

made

These

or

ish

Without

problem.

at

Sacramento and Columbia Rivers

costs

pulpwood and other bulk prod¬

operate

set up on an

of

in

centered

be

with normal efficiency.

Bellingham, Wash., is helping
advancement

curtailments

"nucleus" mills which could thus

said, controls over

Canal

system, the economical movement
of sufficient grain,
oil, lumber,

would

duction

to

region
incalculably.

marine attack.

"further

that

loadings for the

average

Production of electricity in

the

ended Oct. 31st, was

3,774,891,000 kilowatt hours, compared
with output of 3,752,571,000 kilo¬
watt
hours
in
the
preceding

chief. The

War Production Board

"use every bit of criti¬

aim is to

it will do the

cal material where
most

good." The plan, on reach¬
would have to be made in the near
ing full operation next July 1st,
future" to release labor, power,
will
strip
the civilian economy to
week
and
3,380,488,000 in the
the barest possible level at which
transportation and materials for week last
year, according to Ed¬
war purposes.
it can operate.
The order, it stated, ison
For example, only
Electric
Institute
reports.
is only "the first step toward a
With
all
areas
of
the country 1.5% of the nation's annual steel
balanced program of further re¬
showing gains over last year, the output will be available for ci¬
duction and concentration of the
vilian needs next year, while less
total was up 11.7% over the 1941
than 1% of its copper will go into
industry
on
an
international week.
basis."
v.
•.
civilian products.
;
Engineering construction vol¬
Ernest
"Concentration," as the term ume for the short week due to
Kanzler, director gen¬
ordinarily is understood, would the election
eral for operation of the War Pro¬
day holiday totals
mean closing of some of «the in¬
duction Board, disclosed recently
$137,412,000, more than triple the
dustry's 900-odd paper and pulp volume
in an address before the 23rd an¬
for
the
corresponding
mills.
The total permitted pro¬
1941 week and above the $103,- nual convention of the American

'

Coast

canal, all

would

con¬

The WPB declared its expecta¬

period two. years ago.

same

week

Continuing harbor, channel and
the Pa¬
cific Coast from San Diego, Calif.,
the

Right
now,
this ship¬

expensive.

more

Canal,

the

newsprint, however, has been
at only -about 65% ca¬

corresponding week in 1941, but 95,672 cars above

This week's total was 124.56% of
corres-^
increase war output has been an¬
ponding week of the ten preced
nounced
by Donald M. Nelson,
ing years.
the

pacity.
tion

fewer than the

cars

running

river improvements along

between

Boston would

of

'

inestimable.

commerce.

water

completed Bea¬

a

Mahoning

incomparable Great
system with that of the
and Mississippi systems is

necting

today

waterbome

and

ver

possible through the

interchange
rail

non-existent.

be

terminal

coastal

taken

ships; water termi¬

890,469, compared with the preceding week this year, according to the
The latest figures were also 4,276

Association of American Railroads.

capacity, trade
sources
in
Washington said. Canadian output

harbors at Great Lakes
ports, the facilities for moving
90,000,000 tons annually of vitally
needed iron ore from upper Lake

America

upon

the

cal

proved

Now, with the fate of the dem¬
ocratic world depending so much

Of Trade
industries continue to operate at high levels, though
loading of revenue freight for the week fell off 12,777 cars, to
The heavy

whole, the stabilization jells pro¬
duction at about 87% of theoreti¬

Clair and Detroit Rivers, the im¬

system.

way

a

something like 6% in Can¬

cut of

Oct. 22nd

railroads, their worth to the nation is incalculable.
The public knows practically nothing about one of

output,

newsprijit

spokesman estimated,- and a

ada, source of three-fourths of the
newsprint used by United States
newspapers."
For the American industry as a

article^ ''St. Lawrence Project Off For Duration," in your

The

of

rate

WPB

Lauds Inland Waterways

Thursday, November 12, 1942

CHRONICLF-

THE COMMERCIAL & FINANCIAL

1716

developed and properly regulated.
Enormous
potential benefits to,

to make

pulp

are

behind the woodman's ax to trans¬

for America's
all-out war effort develop."
Unrestricted production of six
requirements

the

282,000 reported for the preced¬
ing week by Engineering NewsFederal construction ac¬

Record.
counts

for

week's

total

and

than

year

ago,

a

91%

of

the

is

428%

The increased
public

boosts

volume

Federal

construction

current
higher

292%

above
last
work,
however,
/

year.

Private

is 25%

below the 1941 week.

The week's volume brings

1942

to $8,increase of 60%
over
the $5,294,419,000 . reported
for the 45-week period a year
ago.
Private work, $520,285,000,
engineering

461,997,000,

is

52%

construction

an

lower

than

in

the

1941

period, but public construction,
$7,941,712,000, is 88% higher as
a result of the 138% gain in Fed¬
records

All

the

for total

steel pro¬

civilian

nation's

economy

is

"going down at the rate of $1,000,000,000 a month.> He stated:
"Our civilian economy is going to
be leaner during the balance of
this

than

war

before

ever

we

thought possible." He added, how¬
ever,

that

would

not

civilian

production

"hit-or-miss"

be

but

would be governed by a definite

just

program

that for

is

as

the

armed services.

Kanzler said

Mr.

controlled

that

materials

-

bring

the

new

plan

will

production
into balance and that by the third
gradually

war

quarter of next year the country
"should then have

and

gram

trols in

work.

eral

Trade Association Executives that

balanced pro¬

a

firm system of con¬

a

full operation."
war costs were approx¬
.

October

duction were broken by a good imately $5,500,000,000, about the
paper
products is permitted to
same as September figure, making
margin by the American steel
people lie here. Water-raii continue: Building papers, build¬
an outgo of $20,250,000,000 in the
industry in October, with pro¬
transport is the keystone of our ing boards, vulcanizing fiber stock,
ducers in the aggregate turning first four months of the current
Without the improved Chesa¬ national economy. In wartime it resin impregnating stock (the base
out more steel than their rated fiscal year. This is four times the
peake and Delaware Canal, it is that and more; it is the assur¬ of a plastic product5 hewly coming
capacity indicated, according to expenditure in the corresponding
that
our
democracy
will into use as a substitute for zinc
would not be possible for deep ance
the American
Iron & Steel In¬ four months of 1941. Further evi¬
in photo-engraving), sanitary nap¬
draft
vessels
to "move
between endure.
dence of the increased outgo for
stitute.
Larger scrap supply, it
When initiated, many projects kins and JiqspitaL wadding stock.
Delaware and Chesapeake Bays,
is estimated, enabled the mills to war Is~seen In"Mr. Nelson's report
again safe from submarine"at- so vital to us now were criticized
stating that over-all munitions
set the record.
or
condemned by selfish or sec¬
tack.
Total steel output for October production in the United States in
interests.
"Pork
barrel,"
What a blessing it would be to¬ tional
was
announced at 7,584,864 net September was 7% greater than'
day if the Atlantic and Gulf In- they shouted to an uninformed
in August. President Roosevelt es¬
tops of ingots and castings, about
tracoastal Waterways were deep public. And today, these same in¬
7%
higher than the September timates that the Federal cash out¬
and wide; if the proposed canals terests continue to combat the ex¬
total of 7,067,084 tons and nearly lay for war will reach $74,000,President Roosevelt signed on
across
New Jersey and
Florida pansion of our unparalleled nat¬
349,000 tons larger than produc¬ 000,000 in the fiscal year ending
Oct.
26
the
$15,851,000,000
supple¬
were
complete.
Then, this pro¬ ural waterways;- expansion neces¬
June 30, 1943. This means an ex¬
tion in October of last year.
mental
appropriation
and
contract
defense and for
the
tected
waterway
system would sary for
Department store sales on a penditure of almost $54,000,000,authorization
bill,
of
which
90%
extend from Boston to close to growth of the nation.
country-wide basis were up 14% 000, or an average of $6,750,000,V;;,
>
At
this
solemn moment,
our is for the Navy. •
the Mexican border. Through it,
for the week
ended Oct. 31st, 000 monthly over the next eight
Congressional
action
on
the
outlook
would
be
dark
but
for
tankers
and
barges,
destroyers
months. Achievement of this goal
compared with the like week a
measure
was
completed
on
Oct.
the
existence
of
the
facilities
for
and other light draft naval vessels
will .of necessity mean further
year ago, according to the week¬
22
when
the
Senate
adopted
a
con¬
naval
mobility and waterborne
could navigate safely.
curtailment in civilian-goods pro¬
ly figures made public by the
ference
report
which
the
House
commerce.
A
waterway
connecting
the
Board of Governors of the Federal duction.
had approved on Oct. 21.
Tennessee and Tombigbee Rivers
America has the greatest poten¬
With the adoption of this bill, Reserve System. Store sales were

improved
Port

enables "the

Hudson

of

Albany to handle
shipping.

„

the

ocean

Appropriate Billions, ;
80% Coing To Navy

.

•

.

would be of immense value to the

tial inland and intracoastal water¬

industrial heart of the South: low

way

cost waterborne commerce is vital

ment is making

to the

tional

development of the nation.

Without the

improved Gulf In-

tracoastal Waterway,

much of the

vast movement of bulk commodi¬

the

from

ties

have to
that

move

on

Gulf

system

waterways and, now, on
"

world
Port of Houston, as the great city
of the Southwest, would not exist.
either

handled,
water

shipment,

the tremendous
of this port.

part

develop¬

priceless

na¬

the

asset, assuring the safety of
nation and benefits for all

the

people.—S. W1LLSON RICH¬

ARDS, Editor, the "Marine News."

US, Canada Restrict
Production Of Paper

Without the development of the

after

a

would

Coast

Houston Ship Channel, the

or

it

at costs many times

the dangerous open sea.

Railways

earth;

on

of

before
a

large

tonnage

In
first
the

what

step

was

described

as

the

curtailment of
use of paper
United States and

toward

production and

products,

the

Canadian Governments

on

Oct. 30

jointly froze production of paper
products, including newsprint, at
Without the improvements that
the average production rate of the

have

been

made

on

Missis¬

the

last six months.

Missouri,
Illinois,
Ohio,
In parallel orders, effective at
Kanawha, and other midnight, Oct. 31, the War Pro¬
rivers
forming our vast inland duction Board in Washington and
waterway system, these streams the Wartime Prices and Trade

up

propriation and contract author¬

ended

ity for expenditures for war pur¬

last

poses

in the fiscal years 1941, 1942

1943, to date, of $222,000,000,-

and

from

exclusive of the

000,000

—where

trainload

of

more

bulk

cargo

tows

of

than

such

a

as

Board

in

Ottawa

have forbidden

manufacturers of paper,

including

newsprint, book and magazine pa¬
pers, to produce more than their
average rate of output in the six
months period from April 1 to

cor¬

appropriations
for
$9,510,000,000 in

in

contract

authorizations, for

con¬

500,000 tons of aircraft
carriers, 500,000 tons of cruisers,
900,000 tons of destroyers and de¬
stroyer escort vessels, 200,000 tons
of
auxiliary vessels, and
1,000

struction of

$3,822,000,000
provided in the bill for the Naval
Of the

small craft.

aviation

now are

net outlay

Government

Chicago Reserve Bank

.

H.

Fred

Public

Wilson,

Rela¬

tions Counsel for the Federal Re¬

Oct.

expansion, $2,862,000,000

allocated

to

the

procurement

of

14,611 airplanes.
Other appropriations in the bill
included: Emergency fund of the

19%

Reserve Bank

Federal

reported.

Unfavorable weather tended to
check

the

upward
during

sales

tail

buying

though

sweep

the

in

of re¬
al¬

week,

many

lines

autumn lev¬

continued at record

& Bradstreet, Inc., re¬
ported in its weekly business reDun

els,

view.

;

For

the

country

according to

a

whole,

the Bradstreet sur¬

sales volume was estimated
at 12% to 15% higher than a year
ago.

Best increases were made in
and Pacific Coast

Southern

the

Langum, Assistant Vice-President,
who is in charge of research ac¬
tivities

the

for

$25,000,000;

Seventh

Reserve District.
gan

his bank

Dearborn

cago, in
tor. He
of

the

Mr.

career

National

1917,
was

as

Federal

Wilson be¬

with the Fort
Bank

in

Chi¬

Assistant Audi¬

Advertising Counsel

Continental

tional Bank &
as

vey,

Office of regions.
Information, $25,000,000; Of¬
Wholesale activity

President,
War

31st, were

in the like 1941 week,

maintenance and

is

they

of

funds

Tennessee,

as

year.
■. ■I-s; ••• Department store sales in New
York City in the last week ended

Wilson Promoted By

larger than serve Bank of Chicago, has been
and in the appointed Manager of Research &
Statistics of the Reserve Bank, it
porations,
amounting
to
about four weeks ended Oct. 31st, sales is
announced
by C. S. Young,
of this group of stores increased
$8,000,000,000.
/ y •
y
President of the bank. Mr. Wilson
Of the total funds in the bill 14% over the corresponding period
will be associated with John K.
year
ago,
the
New
York
the Navy receives about $5,600,- a

000,

sippi,

could not be used

18% for the four week period
Oct. 31st, - compared with

Congress has provided a total ap¬

Illinois

Trust

Na¬

Co. of Chi¬

cago, from

1922 to 1934, when he

took

the

over

education
He
an

left

and

there

account

York

direction

training
in

1937

executive

of

their

program.

to

for

become
a

New

advertising agency and has

been at the Federal Reserve Bank

reported since the summer of 1940. Mr.
fice
of
Coordinator
of
Inter- as continuing
received
his
academic
at a brisk rate, Wilson
at
the
University
of
American Affairs, $5,000,000; Of¬ with turnover in many markets training
products; gasoline and fuel oil,
running well above last year's Chicago.
are affecting enormous savings in
fice
of
Defense
Transportation,
Sept. 30.
The appointment of Simeon E.
levels.
Retailers were found to
transportation costs. This inland
The following regarding the or¬
$5,200,000; -War Manpower Com¬ be concentrating on securing ad¬ Leland as Chairman of the Board
transportation is vital to the na¬ ders was reported by the Asso¬
of the Chicago Federal Reserve
mission, $10,303,680; war housing, ditional holiday merchandise. f
tion today.
steel

products, coal, lumber, lime,
cement,
grain 2nd other farm

was

ciated Press:

Without

the great locks

at the

"The freeze meant

Soo, the improved St. Mary's, St. duction under the




a

5.15%

re-

present domes¬

$600,000,000,

and guayule rubber

projects, $19,000,000.

A

of

new

plan to control the flow
materials in order to

critical

Bank

was

noted

issue,

page

1640.

in

our

Nov.

5

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4124

156

ted

Warns Threats Of

tora local War Price and Ra¬
tioning Board; v /
v

Manpower And Material

Shortages Endanger Shipbuilding Objectives

:

Warning that the increasing loss of skilled manpower in ship¬

yards caused by the draft and enlistments, together with material
shortages in American shipyards, were threatening the attainment
of

national

of Federal

H. Korndorff, President
Nov. 5 told members

shipbuilding objectives, Lynn
Shipbuilding & Dry Dock Co.,

on

of the Chamber of Commerce of the State of New York that longer

hours
to

of labor

prevent the shipbuilding

from

gram

suffering serious

WPB

at¬

Extension To East Coast
The War Production Board an¬

Korndorff

said

tons in the first 10 months of 1942

nounced

showed that President Roosevelt's

Illinois

goal

of

could

8,000,000

be

if

met

this

tons

year

and
materials continue to be provided.
manpower

But, he added, the volume of men
and

materials

would

to

have

be

struction

15,000,000-ton quota set by the

President

was

achieved.

to be

now under con¬
will be extended to the

Nelson,
said that

industry could
complacently on the rec¬

ords it had established so far this

Donald M.

Chairman of the WPB,
224,000 tons of steel will

allocated for the extension.

be

This

had

action

mended by

been

recom¬

Petroleum Coordinator

Harold L. Ickes

The shipbuilding
not rest

Oct. 28 that the Texas-

Atlantic seaboard.

enormously increased next year if
the

on

pipeline

as

means

a

of

as¬

suring the delivery of 300,000 bar¬
rels of crude oil daily to the East¬
Associated

seaboard."

ern

Press

he said.
"As winter ap¬ Washington accounts reported:
proaches, submarine sinkings arc
Construction work on the exten¬
likely to increase," he continued.
sion awaits completion of the 530,1*
"■The Axis threat is more sinkings
mile leg now being laid between
because submarines can submerge
Longview, Tex., and Norris City,
deeper, can stay submerged long¬
and the transfer of construction
er,
can
cruise' farther and are
crews
to
work
sites
along the
more
efficient
than
ever. ■: We
year,

supplemental rations on Nov. 12.
means * that
transportation
committees should be organized

This

in the

this

simply

war

building ships to be sunk.
build

must

ships

sink

to

by

We
sub¬

route to the east coast.

said

Korndorff

that

completed in December, but
Secretary Ickes said on Nov. 1
that this may be sooner, in view

to be

two

problems could hamper even if
they did not stop the nation's
shipbuilders. They were the sup¬
plying of materials and the grow¬
ing shortage of manpower. "The
to

answer

lies

both

the

with

From
is

said.

of

the fact that 65%
than

—more

miles—is

345

States

the

to

From Norris

extend

Ohio

out its

ship construction contracts to Phoenixville; Pa., from where
question of materials alloca¬ branch lines will be laid to the
tion which, is in the hands of the Philadelphia and New York areas.
Government
as
represented by Twenty-five pumping stations will
the War Production Board."
He force the oil from Longview to
a

,

added:

<

terminals at the New York-Phila¬

-

industry is delphia refinery district.
doing everything within its pow-i
Expected to ease the overflow
er
to train new ™en,
pressure which has forced shutting
place those wha leave
down of some Southwestern oil
men.
It likewise is taking seri¬
fields for lack of an outlet, the
ously the advice of Government 1.380-mile line will be 24 inches
"authorities to employ - women- in
all the way to Phoenixville, at
shipbuilding.
least, Mr. Ickes said.
It is being
"The
question boils down to
built for the Government by War
this: Can we expect to win the
Emergency Pipeline, Inc., an or¬
war
by working 47.4 * hours a
ganization of the petroleum in¬
week? Shipbuilders in Britain are
dustry....
working 57 hours a week.
The
The Texas-Illinois pipeline was
answer, as in the instance of ma¬
referred to in these columns July
terials, must be given by our
: --7
i ;
;
Government."
;; / '
;.
' 23, page 275,
"The

-

shipbuilding

.

•

.•

Mr. Korndorff is

also indicated

saying that the

unprecedented

as

Urges Plants To Set Up

Transportation Plans

It

is

important

against

the

to

as long as
have this money
they aren't; likely to pay any at¬
tention to any legislation restrict¬
ing them which Congress might
pass.' Congress has got to regain

bureaucrats

control

the

of

strings

purse

exercise its influence.
it

make

can

back

to

funds

every

to

To do this

agency

come

Congress and justify the
has already been given

it

and those which it seeks.

through

this

Congress',

Running

procedure

will

be

determination to cut
down appreciably on the civilian
personnel, even the civilian per¬
sonnel

One

;

the

of

War

Department.
will have in¬

Senator, who

fluence, intends to seek
by

be

both

used

of 50%.

House

as

calling for

a

resolu¬

a

and

Senate,
measuring stick,

a

horizontal reduction

There

are

competent

thorities who believe such

With

view

to

au¬

dras¬

a

be conducive

to the conduct of the
;

a

war.

production there will be

a

definite

40-hour work
week. : Bills to this effect have, in
against

move

the

fact, already been introduced, but
when

it

around

cbmes

to

serious

consideration of them, several fac¬
tors will rniliigte -against any ex¬
cited

rolling back

called social gains.

of Labor's soForemost will

determination

the

be

of

the

re¬

Republican Party not
to become stamped as a deliberate
anti-labor party. Secondly, influ¬
ences
in both parties as well as
juvenated

industrial influences do
to

run

which

not want

the risk of labor disorders

they believe would follow

outright reduction of workers'
What is likely
emerge will be some arrange¬

an

weekly earnings.
to

ment

whereby

the

in big

workers

war

now

plants and

enjoying the 40-hour week with
time and a half for a longer week
under

a

tinue

to

,

..

union

receive

.

.

■

;

meeting, said that "ships are the

life line

very

are

we

of the global war

fighting, where

so

much

depends on the ability of the na¬

industry

shipbuilding

tion's

to

speed up production until it far
outdistances any possible maxi¬
mum

of enemy

destruction."

with

distances

•

The Newark

2 raised its price
The paper said that

November

qf
to

"News effective as

4

cents.

price

the

increased

the

steadily rising costs

lishing
and to

due to

was

of pub¬
a newspaper in wartime
the reduction in advertis¬

ing revenue.

7*';

"The




have

must

employees

eral
up

similar group
or individual., appointed by agree¬
ment between
management and
labor

or

the

new

OPA

'

.

regulations, this committee must
review the application of all em¬
ployees

at

seeking

more

such

sev¬

war

and

what

is

on

der the

period

"The

!

in the bureaucracy

un¬

The most

gain its power.

much

while most

longer have

no

pro¬

think

to

about

pushing their sales,
important
decisions
hands, their or¬
ganizations are still in being and
and

many

have

left

their

most of them will be

We should

wan

use

after the

so

them.;

ploy the profit motive

only accomplish by bringing the
,

Bureaucrats to the bar,

lopping off

establishments

Where the real

fight will

come.

Em¬

widely
as possible.
Encourage business¬
men
to do all they can, and to
take responsibility wherever they
can.
The critical point is to have
in the federal government a con-

ning-tower control charged with
the duty of plugging any gaps in
the front of full employment.
"If private businessmen do not
to'undertake

mass housing
with government financ¬
then arrange the financing.

except

ing,

If doctors
of

unable to take

are

sick

all

Board's

said.
num¬

financed
the

War

order

of

April 9 halting virtually all
building unless essential to

new

conduct of the
of

Labor

the

The Bureau

war.

people

permit

Statistics

estimates

care

valuations

the

dwelling. units
struction

put

aggregate

new

under

in non-farm

237,000,000.

the

of

con¬

dur¬

areas

approximately
The

$1,-

non-farm

area

of the United States, as defined
by the Bureau of the Census, in¬
cludes all urban places and all
rural places except farms."

;

Secretary

Perkins

stated:

further

7.

"Publicly financed projects for
which construction contracts
awarded

during

the

workers

or

were

first nine
months of 1942 will provide ac¬
comodations for 133,949 families.
All of the 131,984 units under the
jurisdiction of the Federal Public
Housing Authority are reserved
for

war

military
first

families

personnel.

During

of

the

nine

months of 1941, 82,882
which 76,415 were reT
served for war workers, were put

units,

of

under

construction

contract

in

the ortho- | publicly financed projects. By the
dox fee basis, then make it pos¬
pnd of September 1942, the Fed¬
sible to help doctors take care of erally financed war housing pro¬
all sick people.
If private busi¬ gram had completed or under
on

all the

cannot absorb

ness

unem¬

ployed—and it probably cannot—
keep the great public works pro¬
grams
going side-by-side
with
private business."
Chase

Mr.

urges

a

construction

contract

of

total

a

dwelling units in conti¬
nental United States, not' includ¬
ing dormitories, trailers, or port¬
252,785

able units.

and

new

"One-family
dwellings
cornconeept - of public works, prised—approximately 82 % of-the
"Broadly
interpreted,
public total units started during the first
works include not only physical
nine
months
of
1942; 2-family
wider

things that are built, but also ser¬
vices rendered in the public in¬
terest
and administered by the

dwellings accounted for 4%; and
apartment houses for 14%.
Dur¬
ing the first nine months of 1941,

government." / Elaborating
latter point, Mr: Chase says:

85% of the

"We

to

come

,

this
; '

decision of crit¬

a

ical importance.

We can put the
unemployed on the dole, or at
raking leaves, which would mean
that

the

we

had

and lost

we

can

challenge

the

greatest,

splendid,;:; most
uplifting
of public works which any

series

civilization

dreamed of.

ever

touched

have

"I

war

with

Or

citizens

most

the

won

peace.

our

on

of the

decreased

36%, but this was aL
entirely offset by several
large public projects including
projects with a total of 11,529
temporary "war apartments." As
a
result,
multi-family
units
of
the
same

the forests of America to
perpetual yield basis,
the grasslands to be restored, the
entire transport system to be in¬

35

the

in

1942

centralized; mighty watersheds to
be tamed, like that of- the Ten¬
nessee;

were

most

started

them—

units

new

1-family type, 5% were of the
2-family type, and 10% were in
multi-family structures. Private¬
ly financed
multi-family units

whole cities to be rebuilt and de¬

first

months

nine

decreased

only 3% from
started during the

number

period in 1941 while 1-fam-

ily and 2-family units decreased
and

40%, respectively."

'

be put on a

Airmail

Postage On Civil

Received Thru Army-Navy
tegrated; civic centers, libraries,
" research laboratories,
universities, public buildings to
reflect an aspiring culture in a
new
architecture, and reflect it
too in sculpture, painting, music,

Postmaster

museums,

be

can

found

in

such

projects for all the man power we
have available.
When technology
again gives

us

will—then

a

surplus: of

day—as

some

power

hours

of

man

it surely
daily labor

down, vacation periods
longer."
•

come

grow

New York

Goldman

Albert

City

announces on

of

Oct.

28 that the air mail rate of 6 cents
per half ounce or fraction thereof
heretofore applicable to air mail
to and from

theatre.

the

the personnel of

the

armed forces of the United States

stationed
United

outside

the

has

States

continental

been

extended

to air mail sent to or by

civilian

and

tors

contrac¬

employees

re¬

ceiving mail through Army or
Navy post offices outside the con¬
tinental

United

The

States.

an¬

nouncement added:

"Air

New Dwellings Decrease
was

started

on

394,000 new dwelling units in nonfarm areas during the first nine
months
of
1942,
principally to

provide homes for war workers,
Secretary of Labor Perkins re¬
ported
an

.

on

Oct. 31.'

"In spite of

increase of more than 60%

number

the
-

J1-

the

privately
units reflects

dwelling

as

re¬
can

she'

in

to

enormous

Construction

And this it

1941,"

decrease

new

ing the first nine months of 1942

ducers

important thing, how¬

will be for Congress to

of

48%
of

Even in the war,

an

guise of war's-necessities.

their personnel and getting a firm
gasoline rations than
hand over the appropriations that
the basic A book provides.
Com¬
mittee approval must be obtained have been/ given them..
This is

application is submit¬

ing

private
machine already func¬
tioning.
It would be the height
of folly to tear it up by the roots.

can

going

ever,

mileage

undoubtedly be

the

to

"Room

to throW the spotlight on the
of

economic system
achieve it.
He says:

reaction, have

investigating committees set

conduct

a

representatives.

"Under

this

order

Mr. Chase warns
ill-advised attempt

the

"We have

strengthened.

There will

charge of each Organized Trans¬
portation Plan, should be a joint
management-labor
group,
OPA
said,

foreseen

been

committee, or official, in

before the
.

overturn, and similarly
the. hands of those leaders who

travel, their need for autos to get
them to and from work, and their
ability to share cars.

officials

Newark News Raises Price

election

oughly familiar with transporta¬
tion-facilities around the plant,

in

production in post¬

business

.

-

helping

any

overturn

want

small
business and encouraging civilian

other

and

the

America,

that it do this because

contract, will con¬
this protection
production methods adapted to
plants with 100 employees or more but relief will be given to the
the making of ships' parts, but
will be required to set up Organ¬ smaller employer who is not now
also to the rapid increase in the
ized Transportation Plans under working his employees more than
number of shipyards.: Mr. Korn¬
nation-wide mileage rationing to 40 hours a week because he can't
dorff urged that America and the
assure workers adequate means of stand the time and a half for overUnited Nations not only must win
getting to their; jobs despite ra¬ dime. ''J.,;.7
the war. as well as the peace, but
Instead of there being any dras¬
tioning restrictions, the Office of
maintain our armament and con¬
Price Administration * announced tic onslaught against labor, such
tinue
shipbuilding;; afterward ; to Oct, 28 acting in accord with the as outright repeal of the Wagner
safeguard' our liberty- and free¬ national rubber conservation pro¬ Act, the strengthened Congress
gram.
The OPA announcement will serve more as: a warning
dom.
.7:* ■ \
• >;•
,■
against the labor excesses which
says:
'"...•.J,-. 7;'
7
In introducing Mr.; Korndorff,
have taken place."
Already, the
"The
Transportation Plan,' in
Frederick E. Hasler, President of each
more
radical labor leaders have
case, will be organized under
the Chamber, who presided at the a committee, of individual, thor¬ been wholesomely affected by the
industrial

Certain

to

war

employed

pick-up in American shipbuild¬
ing since our entry into the war
was
attributed not only to mass

Pointing

$100,000,000,000.

,

..

Resources," were made
the Fund on Oct. 25.

by

Production

tic reduction would

and

do

ment and full

City the line will
Indiana

across

the

can

ber

tion

coast

of

It

universally ac¬
knowledged goal of full employ¬

now

east

reexamination

a

countless agencies.

this, and will attempt to do it, by
rescinding all unexpended appro¬
priations which run up to around

Ralph K. Davies, Deputy Petro¬
leum Coordinator, predicted the
deliveries

Washington

Chase, writer on economic^
—
•
subjects, in a special report on family dwelling units put under
postwar problems which he is construction contracts, the num¬
now
completing for The Twen¬ ber of new dwelling units started
tieth Century Fund. Advance por¬
during the first nine months of
tions of the report, titled "Goals
1942 represents a decrease of 32%
for America: A Budget of
as compared with the
our
correspond¬
public

to

re¬

ceives essential materials to carry

is

Stuart

Needs and

laid.

first

get

main

the

line

of the

to

America must rely

on private enterprise and the profit motive
job of creating and maintaining full employment after
the war is
oyer; but we should be prepared to supplement private
enterprise with a program of public works and Government ex¬
penditures big enough to provide needed facilities and services and
take up the slack in employment.
This conclusion is reached by
_

to do the

appropriations it has provided for

he will be made by June 1.

Government,"
"Whether a
shipyard

United

The Long-

is scheduled

view-Norris City leg

marines."
Mr.

plants before that date."

(Continued from first page)
be attempted by the new Congress

~

win

cannot

Supplement Private Business In
Providing Post War Employment, Says Chase

up.

Approves Pipeline

ship production of 6,000,000

Mr.

cargo

pro¬

that

tacks.

their - Transportation Plans
at once, OPA officials pointed out
that local rationing boards will
begin receiving applications for

jset:

be necessary't>-

may

Govt. Must

"Urging the affected plants to

;

1717

t

.

'.

>7

in

of publicly financed

_■•>'

'

-

7

5

mail

tractors
under

sent

by
civilian

and

this

to con¬
employees

or

regulation must show
card or address, as

in the return
the

case

from

or

may

to

be, that it is sent
Army or Navy

an

post office.
"The foregoing does not affect
the

present air mail rate to and

from Alaska which is 6 cents for
each
■r

V

ounce or
\ "

fraction thereof."
: f /

,

f "

■

'i1

(

57

THE

1718

President Gives Congress

banking system.
It is expected
'the-,Victory Fund Committee-will-

Report

On Plan For Post-War

Transport

to Congress on Nov. 5 a report
of the National Resources Planning Board recommending that all of
the nation's railroad, highway, air and water transportation facilities
President Roosevelt transmitted

placed under a national transportation agency to
modernization of the system.
/
be

report was made over a two-year
committee of the NRPB, headed'^ernments,
by Owen D. Young.
The

to

following

had

the

regarding

the

Press

Associated

The

say

plan post-war
.

,

.

new

offered.

now

will

Stressing the belief that America's labor force is entitled to the

received

be

possible protection against periods of idleness, New York City
Commissioner William Hodson recommended in a report
Branches, and at the Treasury De¬ .submitted to Mayor LaGuardia on Nov. 2 that unemployment insur-'
partment, Washington.
Banking ance. coverage be extended to include more workers, especially those
institutions and securities dealers

but

ment

of

customers,

Federal

the

only

Welfare

employed in small business establishments and that benefits be in¬
creased, particularly for large<£-

Reserve
Depart¬

the Treasury

and

Banks

subscrip¬

submit

account

for

fullest

Banks and

at the Federal Reserve

tions

in building new high¬
terminal facilities and sup¬
plying other transportation needs.

Insurance
7
Coverage And Benefits Is Recommended

authorized to act as of¬

are

Subscriptions from
banks
and
trust companies« for
their own account will be received
ficial agencies.

visualized
a
nation after the

committee
the

of

demand
for

war

series

Subscriptions

period by an advisory generally "may

ways,

Extension Of Unemployment

approach the same types of pur¬
chasers, calling attention to the

report:
The

$2 Billion Treasury

better,

faster,

cheaper,

deposit, but subscriptions

without

Offering Allotted

service.

Thursday, November 12, 1942

COMMERCIAL & FINANCIAL CHRONICLE

must

others

all

from

be

allowing

by

families,

for

differential

having .one or

extra employed formerly

an

having

report

have

joint study made

base

Hodson's

establish¬
than four:
36% did not
in

fewer

Over
earnings

dependents. employees.

more

Commissioner

ments

families

those

sufficient

in

the

the New York

qualify for unem-V
plbyment insurance, though they
had
been
in
covered
employ¬

surance

ment."

based

was

a

on

by the Department of Welfare

accom¬

and

Unemployment In¬
Advisory
Council.
It
the
extent
to
which
a

shows

to

year

It

is

also

in

noted

the

an¬

of let-down from
panied by payment of 2% of the
nouncement regarding the study,
The subscription books for the amount of certificates applied for. group of relief recipients—(12,war
production, the committee
113 persons in 4,416 family units)
that:
cash offering on Oct. 26 of $2,000,Subject to the usual reserva¬
said, will be ideal for both public
"In 1942 the New York State
—accepted over a five-week pe¬
and private expenditure of money 000,000 of %% Treasury Certifi¬ tions and within the amount of the
riod have been affected by Unem¬ Unemployment
Insurance
Law
cates
of Indebtedness
of Series
to create the desired transporta¬
offering, subscriptions for amounts
ployment
Insurance.
Commis¬ was amended: Beginning June 1,
tion
facilities, and at the same D-1943 were closed at the close of not exceeding $25,000 from banks
sioner Hodson said:
1942, the maximum benefit rate is
which
time make jobs for former sol¬ business on Oct. 27.
accept demand
deposits,
"Our-study shows conclusively $18 instead of $15 a week, the
The Treasury Department an¬ and subscriptions in any amount
diers and war workers.
that most of the unemployed but benefits are paid for a period of,
"It
is
abundantly clear," the nounced on Oct. 31 that subscrip¬ from all other subscribers, will be
20 weeks instead of 13, the wait-;
committee said, "that with the re¬ tions totaled $3,105,014,000 and al¬ allotted in full; subscriptions for employable relief recipients were
excluded-from unemployment in¬ ing period is reduced from three
turn of peace, the shackles will lotments were $2,035,131,000.
Of amounts over $25,000 from banks
surance
benefits.1 This was par¬ to two weeks. Beginning Decern-'
be broken and transport-rationed the
total
subscriptions,
about which accept demand deposits will
ber, 1942, unemployment insur-:
people will demand and secure a $667,000,000 were allotted in full be allotted on an equal percentage ticularly true!" of the provision
The

period

.

which excludes persons employed ance will be extended to partially
enlarged system of high¬ to all subscribers other than banks basis, to be publicly announced:
8
in establishments with fewer than unemployed workers."
Payment for any certificates al¬
airways and to a lesser de¬ accepting demand deposits, $64,Jour employees because so many
gree waterways that will over¬ 000,000 were allotted in full to lotted must be completed on- or
shadow all the progress of the banks entering subscriptions for before Nov. 2, 1942, or on later of '. our small business concerns War
Training At 8 Years
As
previously
an¬ here employ less than four per¬
past."
not more than $25,000, and,.the allotment.

vastly
ways,

.

,

,

,

pictured as remainder, representing subscripa special problem, for which some, ^ons
from- banks for more than
—yet undevised—means must be $25,000, were- allotted 55%, but
found
to
provide
government,no^. jegg fjjan $25,000 on any one
money for modernization, consolij sukscripti0nT with adjustments,'
The railroads were

.

dation and

reorganization.

In the motor field,

;

I

the commit-

"War'con^itions'°provide
equipment along
and for the

urban

and

* eaerai neserve uistricts as ioi .
lows.

functional .lines; Federal Reserve

Total Sub¬

Total Sub-

scriptions

SK

D,stnct

system

highway

Al.otted

$111,986,000

1,095,747,001

routes to ac- Philadelphia,

express

commodate the

allotments

^alResfrvTSftr eS Si

planning of a modern

inter-regional

and

Subscnpuons

an ex-

opportunity in the hightransportation industry for
redesign of automotive

the

the $1,000 de-

nomination<

cellent
way

where necessary, to

automobile of the

57.858.000

95,5ii,ooc>

"ZV.l'.V.i

104,399,000
66,746,000

ipsmhtooo

| Atlanta ...........
81,277,000
emphasis
in
future
4gi;{Sl;8oS
highway development must be di-.
.........
4i.366.ooa
rected to the provision of express Dallas
35.409,000
highways and off-street parking san Francisco :..v 210,923,000
in urban areas."
j. Tctai
$3,105,014,000

future

.

48,195,010
256,430,000
54.785.000

"Major

,

26.290.001
51,311.000

nounced, Treasury
mature

which

Certificates of

exchange privileges, but

turing certificates will be

allotted.

significance of
non-farm
mortgage foreclosures
in the national economy is em¬

1941,

Home Loan

the

level of rates and fares

m

row]ngs for October over the $6,-

plaice 000,000,000 mark. On Oct. 8-9 the
the rate structure in a more fa¬ Treasury-offered and sold $4,100,vorable position with respect to 000,000 of 2% bonds of 1950-52
other prices, in order that restric¬ and' 1V2 % notes of 1946.
to

industry

transport

.

tions

on

movement may be mini¬

In

order

to

insure

widespread

Bank Administration

reported on Nov. 7.

tran s p0 r ta 11 on

"national

a

agency,

^on

books

remained

which would have broad: !(jayS and there

were

open

no

two

restric-

both tor direct action and. ti0ns as to the basis for subscrib¬
co-operative
projects with tng to this issue. ~ At their maand local governments.
| turity, the certificates will be re-

powers

er

state

The

agency,

have

it

suggested,

was

power

(1935-1939-100)

Over

past seven years, fore¬
in relation to popu^
have
been- consistently

the

closure rates
lation

lower in the western

of

kinds
wages,
It

is

questions

western

areas

of,

dav.

service, and benefits
further proposed in

.

When the Treasury resumed

the

en

power
1

to buy or acquire

{ties industry .was asked bv the
land Secretary to call attention of non-

investors to the issue,
>phis procedure resulted in coneral, but also State and local gov- siderable distribution outside the
,

to

be

used

i_

not only by




t-i

meeting will devote major
consideration to current problems
The

offering of certificates of indebtthe edness in April, 1942. the securi- confronting

repdrt that the Committee be givi

the Fed-

I banking

^

"Under

the

boys,
singlehanded fighting and platoon ex¬
ercises.:, Girls will be taught to be
war nurses or radio or telephone,
will

needs of

missariat.

The

both

will

courses

the

"During

insurance ben^

be

of

hour

one

first

second

and

of training pupils will have

years

On the

efit, which is a fixed sum.

program

in

under direction of the War Com¬

than the amount

the unemployment

new

trained

be

for large families
provided through

higher

already

required for all able-bodied
adults up to 55 years.

operators.

tially

to

was

consequently varies with the
of the family, was substan¬

manufacturers

of

building materials and equipment
—that is
for

(1) markets or demands

building

products.

(2)

man¬

problems and (3) proposed
concentration of manufacturing.

power

The

true in about half of

families.

son-

From;

insurance study

instruction

a

week,'

"The

of Commis¬
take the fol¬

we

4,565

grenades, firing a rifle, machinegun drill, anti-tank exercises and
tactical studies.
J
"The

12,113

covers

per¬

includ¬

There

persons.

under 16 and

persons

7,548 adults. The average size of
the family unit was 2.74 persons.

% "0f the adults, 2,755,

or

formerly employed.

were

the

of

in .the

employed

formerly
age

were

through 44

group! 25

while 29.6% kwere 45 or over.

marches

12

to

up

school

will

years

two
studying

pass

topography, tactics and construc¬
trenches and dugouts."

tion of

To Speed Plane
resigned

;

Mfr.

Charles E. Wilson, who

were

male, 34.8% female; 70.2% white,
and; 29.8%. non-white. Almost 53%

also

in their eighth and

Boys

weeks in military camps

36.5%,
Of the

65.2%

employed

formerly

miles.

include

hand-to-hand

skiing,

and

combat

ninth

will

courses

chemistry,

1

^

"survey

unattached

were

>«;

•

in, 4,416 family units,

_

is clude instruction in throwing hand

unemployment

lowing: '
-

?/..,

summary

a

same

the'two-per¬

v.■.

sioner .'Hodson's

sons

„

including

size

and middleing
the * United

.■

..

the entire population, as it

family group,

foreclosure index "dividual is involved.

to

.

and

continue

"The decree

,

The non-farm

deemed in cash, and will carry no
States.
?Vr;'vV';:
plan and exchange privileges,
order the consolidation of the naThe
following
regarding
the
tion s
railways into
a
limited new certificates is from the TreasProducers' Council ;
>
number
of
systems
arranged ury'g announcement:
along regional lines, but avoiding'
rpde certificates will be dated
Meeting In Pittsburgh
systems of excessive size.
I Nov. 2, 1942, will be payable on
The semi-annual meeting of the
It would also have power to buy ^ov
4943, and will bear interest Producers' Council. will be held
Or
acquire land to be used not at the rate
7//g of j% per annum, in Pittsburgh on Nov. 17 and 10.
only by the Federal, but also state payadie on a semiannual basis on
The Council looks upon.its annual,
and local governments, in buildMay 1 and Nov. ly 1943. They will and semi-annual meetings: as open:
ing new highways, terminal facil- de jssuecj jn bearer form only,
meetings for the entire building
jties and supplying other trans- with tw(> interest coupons atproducts
producing
industry—
portation needs.
tached, in denominations of $1,000, non-rmembers as well as members
The agency also would be au$5?000i $io,000 and $100,000.
—and a general invitation is ex¬
thorized^ to revise ^and simplify, Pursuant to the provisions of tended. the committee organiza¬
the whole system of determining
pubbc Debt Act of 1941, intion
foi^jthe study of post-war
rates and fares.
terest upon the certificates now
Another
recommendation was, 0££ered sbail not. have any ex- planning, authorized by the an¬
nual .meeting of - the Council last.
that both the employers and the emptjon> as such,' under Federal
June, has been completed, and the
employes of the various branches ,pax ^cj.s now or hereafter eninitial meetings of these commit¬
of
the
transportation
industry j ac^.ed>
£ud provisions relattees will be held at the forthcom¬
should be organized into nation¬ |ng to taxability are set forth in
ing semi-annual meeting in Pitts¬
the official cricular released towide organizations
to settle all
burgh, Nov. 17 and 18.
i

should

the individual

,

military train¬
ing in Russia to include virtually,

unemployment insurance benefor-large families, Commis¬
sioner Hodson pointed out that
the
relief
allowance
which
is
on

;

broadens universal

lits

based

said
Mos¬

Oct. 29, which added:

eight years and
18," the decree said:

of

all members.of the

year,

from

of

supple¬

referring to the inadequacy

In

with

beginning

school
advices

tember, 1941. The August to Sep¬ other hand, he said, the unem¬ and in the third and fourth years
tember rise was largely accounted, ployment" insurance
benefit * is two' hours.; From the fifth to the
for by the figures reported from larger than the relief allowance tenth
year
the periods will be.
one State.'
'<
L
in cases where only'a single in^ .five hours a week and will in¬

stood .at 25.3%
participation not only on the part for September/ The peak since
The committee
suggested that 0£ kankSj kyt
corporations and
1926,
when
such
reports
were first
all Federal agencies dealing with
|0thers who may be interested in compiled was in 1933,. when the
transportation be amalgamated in ,
type of security, the subscrip- foreclosure
index
reached! 161.

mized"

benefits

these

have

to

Federal

,

the

Oct. 29 is¬

on

"Training will begin at the age.

was necessary

by relief money in order
phasized by a drop of 27% in the
of cases during the. first- that: a minimum standard of liv¬
three quarters of 1942, as com¬ ing might be maintained."

.

lower

benefits it

Press

cow on

number

Likewise, the
1941
total was 21%
below ' the
.
same period in 1940.
From Janu¬
$2,035,131,000 ary to September, foreclosures
Partly through government ac- (
-phe proceeds will be used to re- totaled 33,064 in 1942, 45,432 in
lion_and partiy through more ef- tire $i'5Q7.000.QQQ of V2% Certifi- 1941 and 57,534 in 1940,
ficient operation and competition, cates of Indebtedness of Series
A morq than seasonal rise, it is
'the committee foresaw a reduc¬ A-1942, due on. Nov. 1, and to ob¬
stated, brought September figures
tion in the cost of transportation. tain about $500,000,000 of "new
to
3,360,
as
against
3,072
in
"A major objective for the fu- money." * This » new
financing
August,
fiut the total for, the
ture," the group said,
must be a krjngS the total of Treasury bor- month was still 23% below Sep¬
21,709,000
139,664.000

during the time such a family was
in receipt of unemployment in¬
surance

officers,

fourth

their

United

mented

with

Moscow

at

Army

.have. Our study showed that even

declining

pared

Com¬

,

missars

at a sued a decree
introducing military
law
training in Russian elementary
provides no differential at the schools and ordered all
boys and
present time for the number of
girls to start training under Red
dependents the worker covered
by unemployment insurance may

The

Council of People's

large

ner

accepted

Non-Farm Foreclosures

The

\

families are also
disadvantage
because * the

such ma¬

par

which may be

Decreed In Russia

and women work¬

men

ing in small concerns are at a dis¬
tinct disadvantage.
In like man¬

in payment for any cer¬
tificates of the series now offered
at

Thus

sons.

Series A-1942,
Nov. 1, carry no

of

Indebtedness

recently

President of the Gen¬

as

eral Electric Co. to .become,a Vice;
Chairman

the

of

Production

War

Board, will first concentrate. on,
speeding up aircraft production, it

When he was ap¬
"One-third of the formerly em¬ is reported.
ployed persons were accepted for pointed to the WPB post in Sep¬
home -relief -four weeks or less tember, Chairman Donald M. NeK
after loss of last

two-rthirds
the
.

three

first

employment and
accepted

were

within

months.

"On the average,

said

son

be

the

in the

each formerly

the
that

last

all

*

the

ployed

.

2,217

did

em¬

not

qualify for unemployment insur¬
ance
in the benefit year during
which this study was

made. About

42% of these were not eligible be¬
cause

the

they

New

ment

York

Insurance

majority

covered by
State Unemploy¬

were

of

not

Law,

them

the

having

great
been'

1

program

,

and

programs

phases of

met"

formerly

2,755

persons,

■

*

*

.

"Of

<

war

Wilson

Mr.

would,

production authority
and will have

responsibility of seeing to it

employed person had been unem¬
ployed for 20 weeks since loss of
employment.

that

"top

(this

issue,

was

page

Wilson's

formally

our

schedules
war

noted in

1186).

our

Oct.

Although Mr,

authority, has
outlined,

for

effort are

it

not
is

been

under¬

stood he will

shortly be assigned

control

the

Over

production

whole

military

beginning

program,

with plans to stimulate war

production.

'

plane

Volume

Number 4124

156

THE COMMERCIAL & FINANCIAL CHRONICLE

1

Iations

Salary Regulations Setting $25,000 Maximum
Issued By Economic Stabilization Director
Commissioner

In¬

of

ternal Revenue.

.(d)
the

The

"Code"

means

Revenue

Code, as
amended and supplemented.
'»
'(e) The term "salary" or "sal¬
ary payments" means
all forms
,Of direct or indirect compensation
.which is computed on a weekly,
monthly, annual or other compar¬
able basis, except a wage basis,
"for

personal services of an em¬
ployee irrespective of when ren¬
dered, including bonuses, addi¬
tional

compensation,

gifts,

commissions, fees, and
remuneration
medium

in

loans,

other

any

form

any

or

whatsoever

(excluding
pension benefits in

and

insurance

reasonable amount).

a

(f)

..

The

the rate

means

which

the

other basis

or

or

Executive

of

II

at

either under the

any

of

•

—

that

'

.

:

' '

•

In

,,

payment is in contraven¬

a

the

agreement or in conform¬
an established custom or

or

ity with
usage.

(g) The term "wages" or "wage

payments"
rect

all forms of di¬

means

indirect

compensation
which is computed on an hourly
or daily
basis, a piece-work basis,
or
other
comparable basis, for
personal services of an employee
•irrespective of when rendered, in..eluding bonuses, additional com¬
pensation,
gifts,
commissions,
loans, fees, and any other remu¬
neration in any form or medium
whatsoever
(but
excluding in¬
surance
and pension benefits in
or

reasonable

a

The

:

.

amount"

Act, or any rulings,"
orders, or regulations promul¬
gated thereunder, shall be con¬
In the case, however, of. an in¬
clusive upon all Executive De¬
crease, made in accordance with
partments and agencies of the : the terms of a salary agreement
Government in determining the
or salary
rate schedule and as a
costs or expenses of any - em¬
result of'-,,;//
::./''/;////:/;<;
ployer for the purpose of any ;
(a)
individual promotions or
law-or regulation, either here- '
reclassifications,
.
. . .
,
tofore or hereafter enacted or
(b) individual merit increases
promulgated, % including
the
within / established
salary
rate
Emergency Price Control Act
.ranges',;.,'// :///■/•• ;■. ,• ;■'/."/'.•

(1)

which amounts are
deductible by the employer under section 23(a) of the Code,
except that if such amounts are

(e) " operation of

/

established

an

revenue

laws of

:

on

employee under the Code,
in respect of each

;

the

amount

employee may not exceed five
:
"

percent of
nual salary

employee's anwages determined :

the
or

of insur¬

without the inclusion
and

pension benefits. ///'
(i) The terms "approval by the

ance
'

:

Board"

"determination

and

-

Board"

the

shall, except as

by
may

be otherwise

ulations

provided in the reg¬
orders of the Board,

or

approval or determina¬
agent of the Board
duly authorized to perform such
act; and such approval or deter¬
mination, if subsequently modified
or
reversed by the Board, shall
nevertheless for the purpose of
include
tion

an

by

these

an

regulations,

have

deemed to

be

continuously in

been

effect

its

original date until the
first day of the payroll period im¬
mediately following the reversal
from

or

modification

date

or

the Board

as

until such later

direct.

may

(j) The terms "approval by the
Commissioner";; and
tion

by. vor

behalf of the

on

_

i

/(f)/stich other

reasons

and

Orders

4001.3—Rules,

Regulations of Board—The Board

level- of/costs

or

enue

have authority

tion, if subsequently modified or
.reversed ,-by the Commissioner,
shall nevertheless for the purpose

regulations, be

the

from
first

Secretary of the Treasury, wheth¬
any salary payments other than

as

following

reversal

or

such

later

Commissioner

may

until

tional

4001.2—Authority
War

Labor

Board

of

Na¬

—

The

subject to the pro¬
visions of sections 1, 2, 3, 4, 8, and

Board

a

shall,




the

taxable

obligations
obligated
-

war./

.

Commissioner/ made under

such
payment is in

rate

salary

which

years

the taxable

after

Oct.

3,

1942,

tion

of

the

Act

and

the

regula¬
contravention of the Act, or any tions/rulings, or orders, promul¬
such
de¬
rulings or regulations promul-' gated ./thereunder / if
gated thereunder, shall be con¬ crease, is made prior to the ap¬
clusive upon all Executive De¬ proval of the Board or the Com¬

regulations, that

partments

the
the

agencies of
determining

and

Government

a

in

missioner,
Sec.

as the case may be.
4001.8—Decreases in sal¬

of any employ-: aries of over $5,000—In the case
of a salary rate existing as of the
er for the purpose of any law or
regulations, either heretofore or close of Oct. 3, 1942, under/which
hereafter enacted or promulgated, an employee is paid a salary of
including the Emergency Price $5,000 or more per annum, no
costs

or

expenses

Control Act of 1942

or- any

max¬

decrease in such rate made by the

the

under

the

revenue

laws: regulations

Tor the;

under

promulgated /there¬

section'5-(b) of the
purpose of determining costs or Act)'/provided, however, that if
expenses under ariy contract made; by
virtue of such decrease the
by or on behalf of the United new salary paid to the employee
States.
Any determination of the is less than $5,000 per annum,
Commissioner made pursuant to then the validity of such decrease
the- authority conferred on him' below $5,000 shall be determined
shall be final and shall not be
under the. provisions of section
subject to review by The Tax 4001.7 of these regulations.
United

States,

Court of the United

States

or

by

civil proceed¬
in a salary
approved by the Commission¬
shall result in any substantial
court

ings.
er

or

No

increase
shall

of

in

any

increase

the

furnish

of

level

the

basis

cosits

or

either

to

ceilings of the com¬
modity or service involved or to
resist
otherwise - justifiable
re¬
ductions

Sec.

in

such

nrice

4001.5—Rules

ceilings.

and

Regu-

(see

Sec. 4001.9—Limitation

tain

Salaries—(a)

No

salary (exclusive of
allowable

on

Cer¬

amount

any

of

amounts

under

paragraphs , (b)
arid'(c) of this section) shall be
paid or authorized to be paid to

for any

prior

the al¬

on

paragraph

year, an

sufficient

amount

payments

during

additional
meet

to

paid

be

may

(a)
such

or

au

thbrized to be paid to or accrued
the account of any

to

received

or

employee
the

by him during

though

even

it

otherwise

amount

computed under paragraph (a).

In the case of an individ¬
is an employee of more

(d)

who

ual

the aggregate of
the salaries received by such in¬
one

person,

under

shall,
as

such

be

may

set

cir¬
forth

in

regulations promulgated un¬
der the authority of these.regula¬
tions, be treated as if paid by a
single employer.
(e) No amount of salary shall
be paid or authorized to be paid
to

accrued

or

the

to

account

of

employee or received by him

apy

date

after

the

these

regulations
and

dent

before

of

of
Presi¬
1, ;1943, if

approval

the

by
Jan

the/total salary paid/authorized,
the

or-received for

accrued
endar

1942

' year

of

amount

otherwise

cal¬

exceeds
the
which would

salary
allowable

under

be

paragraph (a) of this section and
also exceeds the total salary paid,
authorized,
for
/

the

accrued

received

or

calendar year

1941.

would exceed

$25,000.

includes

hereafter

promulgated.

in

In the
salaries
de¬

or

contravention

of

the

regulations, rulings or or¬
promulgated thereunder, the

ders

amount

be

to

disregarded is the

amount

of

paid

accrued.

or

wages

the

wage

of

salary

or.

In the

salaries

or

contravention

of

case

increased

the Act

or

in

reg¬

ulations, rulings or orders pro¬
mulgated thereunder, the amount
to be

disregarded in the amount of
or salary paid or ac¬
crued and not merely an amount
representing an increase in such
wage or salary.
In the case of a
salary in excess of the amount
the

wage

these

under section

4001.9 of

which is paid
employee during
in contravention

regulations

accrued to

or

an

his taxable year

agraph (e) of this section, the
provisions of this section shall be
applicable to salary paid or ac¬
crued after Dec. 31, 1942, regard¬
of

less

when

authorized

and

re¬

gardless of any contract or agree¬
ment

made

before

or

after

such

Sec.
ful

4001.10—Effect

payments—(a) If

salary

•amount allowable under such

payment is

of

unlaw¬

any wage or

made in con¬

travention of the Act or the reg¬

ulations,

The ecutive Departments and all other

sec¬

tion 4001.9.
'

'(b) Payments made
in

violation

of

or

received

regulations,
rulings or orders promulgated un¬
der the authority of the Act are
subject, to the penal provisions
of

any

the Act.

Sec.

4001.11—Exempt

ers—The

provisions

employ¬

of

sections

4001.6, 4001.7 and 4001.8 of these
.regulations shall- apply only in
the case of an employer who em¬
ploys more than eight individuals.
Sec. 4001.12
Salary Allow¬
—

Internal

under

Revenue

Code—No

provision of these reg¬
ulations shall preclude the Com¬
missioner from disallowing as a
deduction in computing Federal
tax

income

any
compensation
employer (regardless
of the number of employees and

paid

of

by

the

an

amount

ployee)

in

paid to
of a

with

the

any

excess

allowance"

able

in

em¬

"reason¬

accordance

provisions of section 23

(a) of the Code.
Sec.
4001.13—Statutory
Salar¬
ies and Wages—These regulations
shall

be

applicable to any salary
paid by the United
States, any State, Territory or
possession, or political subdivi¬
sion thereof, the District of Co¬
lumbia, or any agency or instru¬
mentality of any one or more of
or

wages

the

foregoing,
of

amount
is

fixed
Sec.

except where the
salary or wages

such

by statute.

4001.14

Territories

—

Possessions—The
Commissioner

Board

shall

and

and

the

the

au¬

have

thority to exempt from the oper¬
ation
of
these
regulations any
wages
or
salaries paid in any
Territory or possession of the
United States where deemed
essary

tration

for the effective
of the Act and

nec¬

adminis¬

these reg¬

ulations.
Sec.

J

4001.15

—

Regulations

of

Economic Stabilization Director—

The

Director

shall

have

author¬

ity to issue such regulations as he
deems
necessary
to
amend or
modify these regulations.
Sec.

tive

4001.16—Effect

Order

of

Execu¬

9250—To

No.

the

exr

the

provisions of Ex¬
ecutive Order No. 9250, dated Oct,
that

tent

date.

or regulations, rulings
promulgated thereun¬

orders

or

A

(f) Except as provided in par¬

rulings or orders pro¬
or accrued to the account of any
mulgated thereunder, as deter¬
mined
employee or received by him dur¬
by the Board or the Com¬
ing the taxable year which,, after missioner, as the case may be, the
reduction by the Federal income entire amount of such payment
taxes on the amount of such sQlshall be disregarded by the Exary,

regula¬

or

ances

under

the

shall be considered in contraven¬

was

not including

Federal income taxes
lowance

year,

Any decrease in such

he

paid

are

year,

taxable

rate

which

for

Oct. 3, 1942,
(3) Federal income taxes of
the .employee for prior taxable

cumstances

highest

United

or

herein

wages

creased

fixed

any

on

on

dividual

Act, or any regulations or
rulings promulgated thereunder.: of the
Any such determination by the salary

the

year

exceeds

particular work; no decrease
shall/be made by the employer

or

of

Act

the

regulation

or

allowable

(2) Required payments (ex¬
cluding accelerated payments)
made by the employee during

of

any

used

as

enacted
case

of

The term "law

law

any

an

Oct. 3, 1942,

on

for

salary

annum

per

in force

were

1, 1942, and Sept. 15, 1942, unless
correct gross inequities or to
in the effective prosecution

increase price

direct.
Sec.

is paid

less Than ; $5,000

revenue*

of any contract made

behalf

on

tions"

ex¬

(ex¬
accelerated payments)
employee
during the
taxable year on any life insur¬
ance policies on his life which

aid

contravention

in

made

of the

any

the

employee

an

the

purpose

or

States.

Required payments

to

specified in paragraph (b)
of section 4001.2 of these regula¬

rate

continuously

or

3, 1942, under which

of calculating

the United

expenses

by

com¬

cluding
by the

than

are

or

of

States, or Tor
of determining costs

the

.

below

tions

laws

under

der, the amount to be disregarded
is the full amount of such salary
and not merely the amount rep¬
resenting
the
excess
over
the

price ceil¬

salary rate existing as of the

pur¬

,

the purpose

deductions

resulting in un¬
hardship, to meet payments
following;

due

for the

paid for such work between Jan.

in ef¬

modification
date

deemed

its

mediately

to determine, un¬

a

the

of the Act

those

original' date until
day of the payroll im¬

have been

fect

close of Oct.

for

or

tial financial loss

er

of

to

of

shall

regulations to be prescribed
by him with the approval of the

ductions

prescribed
by the.Commissioner, include an
approval or determination by an
:agent of the Commissioner duly
authorized to perform • such act;
and such approval or determina¬

these

Rev¬

der

vided

of

Internal

Commissioner

The

—

in

or expenses

he is unable, without
disposing of assets at a substan¬

or

of

Commissioner

employer

of any law

for

or

sources,

or

rulings and is¬ ings of the'commodity or service
regulations as involved or to resist otherwise
it deems necessary to enforce and justifiable
reductions
in
such
otherwise carry
out the provi¬ price ceilings.
Sec. * 4001.7—Decreases in sala¬
sions of these regulations/ - V : -/
Sec. 4001.4
Authority of the ries of less than $5,000—In the case
such orders

Government

regulation, in¬
cluding
the
Emergency
Price
Control Act of 1942, or any max¬
imum
price regulation • thereof

that, after
his income from all

to

the

of

any

pose

establishes

resorting

;;/

imum price regulation thereof, or employer shall be considered in
shall,1, for the purpose of calculating de-; contravention of : the Act and the

regulations

employee

such

make

may

it

puted under paragraph (a).
(c) In any case in which

shall furnish the

basis either To increase

though

even

ceeds the amount otherwise

sys¬

.

Sec.

■except as may be otherwise pro¬

in

of

by him during the tax¬

year

(1)

"determina¬

by the Commissioner"

able

un¬

cir¬
United States.
Any determina¬ cumstances as may be prescribed
tion .of the Board made;pur-/ in
orders, rulings,.or regulations,
suant to the authority conferred"
promulgated under the authority
on
it shall be final and*; shall
of these regulations, / / ^ /
not be subject to review by They no prior approval of the Board or
Tax Court of the United States * the
Commissioner
is
required.
or
by any court in- any civil- No such increase shall result in
proceedings.
any'. substantial increase- of the

sue

received

United

—

of the

agencies

determining the costs

•,

,

(d) increased productivity
States, or for the j der incentive plans,
purpose of determining costs or
(e) operation of a trainee
expenses
under any
contract
tem, or .;
/.:/;• v//■' ■/•;■':/
the

a

an

maximum price/

tions under the

-

employee

'

of 1942 orr any

made

employees' trust
or under an annuity plan which
/ meets the requirements of sec¬
tion 165(a) of the Code, and
(2) amounts paid by an emVployer on account of premiums
/on insurance on the life of the
to

,

.

regulation, thereof, or for the
plan of salary increases based
purpose of calculating deduc- ; length of service, •

-:

means

ployer

*

•

"insurance

term

pension benefits in
/

.

income

rate. of

salary

a

•

and
reasonable
/''/•/•' v'
contributions by an em¬

(h)

•

amount);,

of

case

.

tract

Federal

prior to the approval of the Board, payments may be paid or author¬
or the Commissioner, as the case
ized to be paid to or accrued to
the account of any employee or
may be.
/' /,;./
■/.-

tion of the

con¬

a

such

Chapter 1 of the Code (not in¬
(a) Wage payments, or
$5,000 or less per annum, existing cluding section 468) as if such
(b> Salary payments to an em¬ on the date of the .approval. of, amount of salary were the net in¬
ployee totaling in amount not in these regulations by the President; come
(after
the
allowance
of
excess of $5,000 per annum where' and
in the case of a salary rate credits
applicable .thereto), the
such employee
of more than $5,000 per annum surtax net income,' and the' Vic¬
(1) in his relations with his ; existing on Oct. 3, 1942, no
in-; tory tax net income, respectively,
employer is represented by a
crease shall be made by the em¬ and (2) without allowance of any
duly recognized or certified la¬
ployer except as provided in reg¬ credits against any of such taxes.
bor organization, or
ulations, rulings, or orders pro-i
(b> In any case in which an
(2) is not employed in a bona
mulgated under the authority of employee establishes that his in¬
fide
executive, administrative
these regulations. Except as here¬ come from all sources is insuffi¬
or
professional
capacity
are
in provided, any increase made cient to meet payments custom¬
made in contravention of the
after such respective dates shall arily made to charitable, educa¬
Act, or any rulings, orders or
be considered in contravention of tional or other organizations de¬
regulations promulgated there¬
the Act and, the regulations, rul¬ scribed in section 23 (o) of the
under.
Any such determination
ings, or,orders promulgated there-' Code/without resulting in undue
by the Board, made under, rul¬
under from the date of the pay¬ hardship,
then
an
additional
ings and order issued by it,
ment
if such increase is made amount sufficient to meet such

any

terms

of

may

'

9250, of Oct. 3, 1942, have sions of these regulations*
undiminished; by any deductions,
authority to determine whether;
rates
of
Sec. 4001.6—Salary Increases— "the
taxes
imposed by

partic¬
service is computed

salary for

ular work

rate"

"salary

term

-

Title

of

No.

term

Internal

9

The\ amount

of. Commissioner

prescribe such Taxes/shall be determined (1) by
regulations with the approval of
| 1
"
1
" applying to the total amount of
the- Secretary^ of -the Treasury*,, salary (exclusive of any amounts
and
make
such
rulings as he allowable under paragraphs (b)
'
deems necessary,. to enforce and and (c) of this section) paid or
Order, otherwise, carry out the provi¬ "accrued during the taxable
year,

(Continued from first page)
the

means

-

Commissioner

1719

3, 1942
sistent
such

(7 F. R.,7871)
with

these

are

incon¬

regulations,

provisions are hereby super¬

seded

JAMES

Economic

F.

BYRNES

Stabilization

Approved:
Franklin

D. Roosevelt

House

The

White

Oct.

27, 1942.

Director

THE COMMERCIAL & FINANCIAL CHRONICLE

1720

said at that time that he

Britain Has Gut 'Unessential' Production To As
Little As 10% Of Normal To Achieve War
To

achieve

Great

Britain

its

unequalled

present
reduced

has

capita
production

per

"unessential"

Output
output,
some in¬

war

in

official

any

on

"Treasury.business."

17

the

just'

On Oct.

Secretary conferred

British

not

was

mission" but

on

with

Treasury officials and

the

evening

at

dinner given

stances

Board. "Those industries and
not

convert

directly to

trades," the Board says, "which could visited

pro-^

war

ter

duction have been forced by gov¬

their

ernmental

appear.

policy to free

raw ma¬

terials, labor, machinery, and fac¬
tory space for use in the war pro¬

profits.

Brand

dis¬

names

Dover

Wintson

In behalf of small

Senate

Marshal

Jan

Premier

of

and

Christian

an

also stated that it
the

Others

time

same

learned at

was

that

the

Smaller

Firms

Merger:

,

gram."
Insured workers in 30

consum¬

ers' goods

industries, according to
the Board, declined from about
1,000,000 at the beginning of the
to about

war

of 1941

700,000 in the spring
so-called "con¬

when the

centration of industries" plan was
invoked.

The

procedures
250,000

essential industries has reached a

further

stage called 'Concentration
Products,' to distinguish it from
the second stage, 'Concentration of

released

a

1942.
"The
taken represent a radical

July,

to

up

measures

innovation
ried

concentration plan

with

out

has

which

fair

a

been

car¬

of

measure

success," the Board adds. ,
In
discussing British contract
tion of consumers' goods indus¬
tries, the Board on Nov. 2 said;
"The mobilization of Great Brit¬

ain's

total

for

resources

has

war

drastic changes in
productive structure.
Under
normal conditions these changes
produced

have

im¬

considered

been

The concentration pro¬

possible.

for the consumers' goods in¬

gram

Production.'
which

dustry is

of the most radical

one

British Pro¬

of these innovations.

The

first introduced in the

was

1942, calls for the production of
only standard, fixed-price, 'utility'

goods, in a quantity closely calcu¬
to, satisfy essential civilian

lated

7

needs.

two

Trade, Hugh Dalton, reported re¬
cently that 36 industries were now
concentrated, and that 20 compen¬
schemes, covering whole
industries or large sections of in¬
sation

dustries, had been approved.
In
the majority of cases, a central

duction

Minister, Oliver Lyttelton, fund has been set up by a levy on
recently
announced
that
new the machine capacity or turnover
measures would soon require the
of the nucleus firms.
The first
'reallocation of industry' in gen¬ charge on these funds is for the
eral.'
care and maintenance of the plant
^

have

governments

of

business 'has

to

immediate
which

the

happiest
and
are
a
good
augury for the way in which we
shall
together deal with many
problems which face us now and

with

others

confronted

"7

over."

which

with

the

when

-7'

-

..

v

'

ation of

within

is

war

deserves.'

field consulting service
the Department of Com¬
a

to

enable the

to

home.'

"'Today when
effort

war

Govern¬

bring advice to business

'close

men

■

■

...aid

would

merce

ment

Will

we

it

been given the
and
assistance

restrictions

terial

and

controls

tions

sales

on

by

raw

quota limita¬
retailers

to

ma¬

were

supplemented in March, 1941, by
the

policy

'concentration

of

production,' in which
tories
firms

to

take

over

few fac¬
nucleus

a

designated

were

of

as

the

quotas of

the closed
are

plants

storage

space

into the central fund.
method is generally

paid

The

as

agency

employed in the remaining 16 in¬
dustries."

is

program

under

cials

directly concerned with de¬

closed-out firms and produce the

veloping our "strategy for civilian
The third,
production." In closing down cer¬
present, stage calls for the pro¬ tain
paper
and newsprint mills
duction of only standard, fixed-....
during the pasrmohth, Canada has
total amount allowed.

or

"priceT^utility' goods in

quantity
closely calculated to satisfy essen¬

tial civilian

a

needs.

"This program

has released an
number
of
skilled

important

machines

workers and

factory

At

uses.

for

space

the

outset

well

as

of

the controlled industries

as

essential

more

the

war,

employed

already

adopted

a

specific contraction within
industry

of

program
a

given

in

place of the more
reduction for a
whole industry.
Differences be¬

familiar

general

the

tween

industrial

organization
and the degree of dependency on
imports and vulnerability to air
attack

of

United

the

and

States

1,000,000 insured workers. By Great Britain
will
prevent us
July, 1942, this number had fallen from
following the British experi¬
to approximately 450,000.
Some ence in
detail, but the methods
55,000,000 square feet of factory
employed and results achieved de¬
space has been released."
serve
careful
consideration, the
Concerning methods of "con¬ Board adds.
77
centrating production," the Board
has ,the following to say:
•"Voluntary schemes predomi¬ Morgentfaau Terms Trip
over

..

nate in the larger

industries, such

To London "Successful"

pottery and hosiery, in which

as

80% and 70%, respectively, of the
firms

Secretary of the Treasury Henry

voluntary Morgenthau, Jr., following his re¬
of coop¬ cent trip to England, has returned
erative
designation
of
nucleus to the United States, having ar¬
firms was more difficult to apply rived here on Nov. 1 on a Pan
in industries consisting of a large American airplane.
He was ac¬
number of smaller units, such as companied by Mrs. Morgenthau.
With
his
arrival
at
La Guardia
jewelry, toy and sports goods, or
of a small number of large but Field, Mr. Morgenthau said:
covered

are

schemes.

scattered
"Five

by

The principle

units.
broad

"I

methods

for

ab¬

ful.

sorbing quotas have been used:
"1.

Agency Agreement: The nu¬
agrees to manufacture

cleus firm

at cost for the closed firms, which

then distribute the goods through
their own selling organization, and
under their
"2.

closed

firms

of

sell

firms

Quota:

their

for

The

quotas
a

to

specific

sum.

I

came

of the

pressures

trip

was

en¬

by what I saw, and I
particularly filled with admi¬

couraged
was

I

also

with

had

of

women

some

officials

very

of

England.
talks

good

the

English

According

to

the

New

York

"Times," Mr. Morgenthau said he
also
rell

had conferred with

Harriman,

United

official

W. Ave-

States

stationed

in

Compensation: London.
It
is
understood
that
The nucleus firms pay a levy on
while in London Secretary Mor¬
their additional production into a
genthau held discussions concern¬
compensation fund out of which
ing British-American financial ar¬
closed
firms are paid a certain
rangements. His arrival by plane
Levy

and

sum,

there

"4.

was

disclosed

on

Oct.

16,

Pooling: All firms in an in¬
dustry join in a pool to operate

when he held lengthy conferences
with John G. Winant, American

the

Ambassador.

nucleus

plants and share




in

Mr.

Morgenthau

to

procure¬

officers

ment

instrucing them to
by such a general policy.
This is regarded as all the more
abide

essential

if

the

War

Production

Board should establish

materials

a

distribution

place

in

system which would
the Army, Navy, and

<

Maritime
for

Commission

allocation

<

plants

of

have

which

The

signed

•

to

con¬

them."

with

tracts

authority

-

materials

Senate

Committee's

ing day hearings
concerned

with

(Oct.
the

13)

small

open¬
were

busi-

situation in New York City.

neess

Several

witnesses,
headed
by
Mayor F. H. La'Guardia, testified
that New York City has only re¬
ceived

small fraction of the

a

war

normal produc¬

contracts that its

tive capacity would justify. Mayor
La
Guardia declared
there was

•

.

'

Senator

Myron S. Short Heads

declared.

'Men

in

out

; the field trained in the best busi¬

,

N. Y. Savs. Banks Ass'n
Myron S. Short, Executive Vice
President of the Buffalo Savings,

meeting in New York City on Oct.
As

28.

the

of

head

Association;

Mr. Short succeeds Henry Bruere,

falo,

Mr.

Short, a native of Buf-®

concerns

New

"

going.

'There

to

yield

their

men

in

place

nomic scheme because of

the

eco¬

war

pro¬

and

ernment

themselves.

its

He

1930.

in

Trustees

be-

The

special Senate Small Busi¬

"Committee investigating the
problems of small firms in war

ness

bank

in

office

in the

1934

Secretary

of

through

and

subsequent

time Was told

Oct. 15 by Lt.became
Executive Gen. Brehon Somervell, chief of
Vice President early this Fall. He the War
Department's Services of
on

promotions
has

active

been

the Association
of

in the affairs

over a

of

long period

Supply,
will

that

have

hundreds
close

to

of

them

because

the

serving as Chairman of Army simply cannot fit them into
Group I representing the savings its production program.
banks of the western part of the
While contending that every ef¬
State, for three years, a member fort was being made to utilize
and Chairman of its Legislative small
plant facilities, Gen. Somer¬
Committee, Chairman of its Com¬ vell testified that existing war
mittee on the Cost of Government,
production lines would not be al¬
years,

member

Executive

the

of

Com¬

mittee, and Director of both the
Savings Banks
Trust Company
Securities

Institutional

and

Cor¬

poration,
organizations
wholly
by the savings banks.
In
accepting : the office, Mr. i Short
owned

lowed

to

place

work

"where

down

slow

with

in

order

small

to

plants

such action will interfere

with deliveries to

Senator

Chairman

troops."
Murray (Dem., Mont.),
of

the

Senate

group,
charged Gen. Somervell with fail¬

stated:

ing to utilize small business fully.
"I feel very humble as I accept
In
reporting
this, Associated
this responsibility at yqur hands. Press
Washington accounts fur¬
The task ahead of us is great but
ther said in part:
I feel that with the highest pos¬
Gen. Somervell told the com¬
sible

standards

ment
can

render

ple and to,

of good

active

and

a

manage¬

trusteeship

service

to

our

we

peo¬

eounhy unequalled
by the excellent record made by
our

institutions,

through

panics,

depressions,
pestilence.

that

mittee

and

out

small

fac¬

troops," and that produc¬

Allied
tion

of

couldn't turn
ammunition
for

day's

one

to

such

full

permti

plants.

assured

utilization

7 ..7..;7

,

the

Senator

,

.

that

Sullivan, Assistant Sec¬
"simple items" were being placed
the Treasury, told us
with small concerns, and this pol¬
yesterday that the American "peo¬
icy would be expanded "in order
ple next year would have 36 bil¬
to allow more capacity produc¬
lion dollars more than they had
tion on complicated items" in big¬
three years ago—that 36 billion
ger factories.
dollars must go into savings and
According to th^account in the
it is our job to take the lead in
"Journal of Commerce" quoted in
seeing that this is accomplished.
part above, officials of the Smaller
"In accepting this job, I come War Plants Corporation are rep¬
resented as feeling that the ap¬
to you not with peace but the
prehensions raised by Gen. Somer¬
retary

"Together
ade

sive

I

we

;

can wage

through resolute and
action

confidence

that

the

will

a

crus¬

aggres¬

justify the

people

of

New

York State have shown in us."

vell's statements before the
would

mittee

dispelled

by

to

public

a

ment that where
ment

officers

orders

advices

with

some

will

added:

com¬

extent

Uniform
;

President

Reports On
Impressing Property

In

his first? report to Congress
operation of the Property Re¬
quisitioning Act of 1941, President
on

Roosevelt revealed
the

Oct. 29 that

on

requisitioning

authority-had

enabled the Government to obtain
for war production more than 10,000,000 pounds of aluminum from

idle and
the

also

inventories which

excess

owners

sell at fair
said

"originally refused to
prices." The President

that

the

possibility of
exercising the
requisitioning power "has been an
Government's

the

influential

factor

in

the

case

other critical materials."

of
v:

The actual tabulation of seizures

during the first year of operation
(Oct. 16, 1941, to Oct.
16, 1942) disclosed that 267 requi¬
sitions of property had been made.
However, the President's report
emphasized;
of the law

"The importance or significance
of

the

cannot

requisitioning
be

authority
by any

demonstrated

statistical tabulation of the quan¬

tity of material actually requisi¬
tioned.

The

thority and
number

existence

its

use

of

in

of instances

the

au¬

limited

a

has unques¬

tionably expedited the voluntary
sale of large quantities of critical

materials,

equipment,

and finished

machinery

products."

Regarding the property seized,
the

New

York

Washington

"Times"

advices

of

in

its

Oct.

29,

said:

Requisitioning

was

also

start¬

ed with respect to 215,214
pounds
of copper, 1,000,000 board feet of

lumber, 13,647,595 feet of railroad
relay rail, 351 tons of rubber, 194,695 pounds of solder
mix, 293,440
pounds

of tin, 142 tons of steel,
10,487,279 pounds of zinc con¬

and

centrates.
In

addition, a number of other
were
requisitioned, such as
still, a blast furnace,
boats, two electric power plants,
items
an

alcohol

be

various types of machine tools and

announce¬

machinery, and usable track and
railroad equipment.
The enactment into law of this
bill was reported in these columns

possible

small

of

Manufacturers.

of

sword.

Stanley J. Cum-

Association

National

schedules must not be inter¬

He

"John

the

tories in the country

wars,; rupted

floods

"all

and

mings, Executive Secretary of the

They

should
be willing and able re¬
1909, became. cruits and will be fully
equipped
Assistant
Attorney "of the Buf¬ to give
the managerial
advice
falo Savings Bank in 1921 and pne which is so
badly needed.' "
of

and Industry Association of

York,

duction.

bar in March

to the

merce

have had

1887, was admitted

born in

City's Commerce Department;
Mount, Manager of

Wadsworth W.

the Industrial Bureau of the Com¬

They are anxious to do
Savings something that will aid both
Gov-,

of the .Bowery.

President

the

practices could, I believe, do
much to help keep many small
ness

annual, Many able business

at its

York

of New

State

our

much

supply chief do

directives

issue

causing so many need for "an aggressive mobiliza¬
his flying trip to London,
Morgenthau was accompanied hardships among small business tion of small factories under the
concerns there is not time for each
recently
enacted
Smaller
War
by Dr. Harry D. ■White,' Director
individual to consult with Wash¬ Plants
of the Treasury's Division of Mon-;
Corporation Act." '
ington nor confer with widely
Others who testified included
etary Research.
; :
separated regional
—'
1
offices,'
the George A. Sloan, Commissioner of
On

very success¬

back very

ration for the

Lend-Lease
"3.

the

Treasury."

brands.

Transfer

nucleus

the

own

that

consider

interesting and

very

to

Mr.

Bank.

British

The

close study by United States offi¬

is

are

should, moreover, be no
"British
contraction has pro¬ and machinery of closed firms. Bank, was elected President of the great difficulty in obtaining per¬
gressed through three stages. The Rents received from the use of Savings Banks Association of the sonnel for such an undertaking.
initial

"What these officials would like
to have the Army

never

Noting that
assistance is especially important
at this time, he declared that cre¬

of

been

"Senator Mead in

presenting his
proposal today declared that small

"Wartime relations between the

be

:

"The President of the Board of

-

London Associated Press accounts:

program,

new

clothing industry in the spring of

many

her

would

third

of

Kingsley
the - Ex¬

Wood,
Chancellor
of
chequer, in a formal address
welcome,
saying,
according

introduced in the U. S.

was

dicated in advices to the New York "Journal of Commerce" from its

War
Plants
amalgamate in the
Corporation, which
party included Sir Kingsley
has sought to fit small business
permanently, or the nucleus firm Wood and W. Averell
Harriman,
into the war production
buys out closed firms."
program
American
Lend-Lease
expeditor
The "concentration of products"
through more widespread use of
in London.
procedure is described by the
subcontracting,
is
seeking a clear
On Oct. 24 the Secretary con¬
Board as follows:
statement of policy, if not a di¬
tinued his tour of English cities,;
"With the designation of specific
rective, from Army procurement
visiting Portsmouth.
Mr. Mor¬
articles which can be produced by
officials regarding the placement
genthau was also welcomed in the
the nucleus firms, Britain's pro¬
of contracts with small concerns.
House
of
Commons
during his
From the same advices we quote:
gram for the contraction of non¬ visit
to
London. •
Sir
"5.

bill

a

Washington bureau Oct. 29, which<t>-

Field

Smuts,

South Africa.

business,

Oct. 29 by Senator Mead
annual appropriation of
on

(Dem.), of New York, providing
$10,000,000 to the Department of Com¬
merce for the maintenance of the field
consulting service to assist
small business in solving war and
post-war problems.
This was in¬

for

Prime Minis¬

with

Churchill

Senate Group Seeks Full Use Of Small
Plants In War Effort—Senator Mead's

in

of honor

guest

was

by Sir Kingsley
to as little as 10% of normal, and in no case permits such
Wood,
Chancellor
of
the
Ex¬
production to exceed 35% of normal, according to a study of Brit¬
chequer.
ish war production controls by the National Industrial Conference
Mr.
Morgenthau
on
Oct.
23
a

Thursday, November 12, 1942

procure¬

try-to

concerns.

place
The

of

Oct.

30, 1941,

page

831.

Volume

156

Number 41241

THE COMMERCIAL & FINANCIAL
CHRONICLE

important is this change that in¬
sheets are being printed and

Sproul Urges Reserve Banks To Cut Idle
Excess Reserves & Invest In Govt. Bonds
Allen

York,

on

Sproul, President of the Federal Reserve Bank of New
Oct. 30 sent a circular to directors and executive officers of

all member banks in the Second Reserve
District
"the present war financing situation

advising them that,
suggests that banks should now

abandon

the practice of holding large amounts of excess
reserves,
knowledge that by investing their funds more fully through
purchases of Treasury securities,^
they will be assisting in the war' surplus funds in new issues of
with the

effort

without

(sacrificing their Government securities, their deability to meet any demands for posits have increased and their re¬
cash

which

them."

be

may

In

made

Mr.

part

upon

Sproul

also

says:

have

serves

been

replenished by
Government expenditures in their
communities.

"Vigorous

efforts
are
being
made to sell Government securi¬

"Recognizing that there un¬
doubtedly will be individual banks

ties

which

to

the

'

general public and to

savings
institutions, and ' more
vigorous efforts will be made.
Large
sums
will
be
obtained
in

this

banks
to

particularly

way,

increase

their

if

cludes,

investors

of

commercial

banks

banks

losses

For

rency

of

lished

with

funds,

but

it

is

portant that all banks participate
in
this operation, " in proportion
their

to

available

"In recent years, banks in this
country have become accustomed

;

to

carrying large amounts of idle

funds in
reserves.

bank

of their required
the
period
when

excess

In

.

reserves

rapidly

and
credit

bank

when

demands

for

limited, it was
for the

were

appropriate/in

increasing

were

many cases,

banks to hold idle

excess reserves.

But the greatly changed situation
which has arisen since our entry
into

the

banks

their

is

war

giving

now

opportunity

an

available

funds

the
invest

to

fully,
and; creates, the responsibility so
to do.
The policy of continuing to
hold

substantial

excess

more

of

amounts

is

idle

longer appropriate nor-desirable-when^sueh
reserves

no

huge amounts of funds are re¬
quired to finance this country's
participation in the war.
:

"The

Federal

Reserve

Systeip
stated on December 8, 1941, that it
is perpared to use its powers to
assure
that an ample supply of
funds is available at all times for

financing
banks

the

have

need

effort.

war
no

The

that

fear

if

they invest in Government secur¬
ities, they will run the risk of in¬
ability to meet demands on them
for the maintenance

for cash and

their

of

levels.

reserves

at the

Several

measures

required
have

already been taken by the Federal
Reserve System
^maintain ad¬
equate reserves in me commercial
banks and
to
facilitate .adjust¬
ments in the reserve positions of
individual banks.
include

These

securities

ernment

in

available to

with

beginning of 1941.

additional

bution of the

j

'

1

^

J

^

^

1

in

such

Lr%n

centers

out

the country.

It has

This

rate

rate

for

1%

to

requires,

ing

within

one

supple¬
advances

banks, as
obtain ad¬
against
the

encourage

to

reserves

pledge

of

of

some

their

assets,

avoiding the necessity of sell¬
such assets to meet tempo¬
situations.

rary

"These
stitute

various

measures

that

assurance

con¬

banks

will

be

provided with reserves, by one
means
or
another, as additional
reserves

are

needed,

and

they

adapting

statements
sole

and

against

as

protection

a

the

selective

a

to'

use

in such

corporate-type
for reporting

in

organizations

order

ture

of

to

get

are

pot

basis

to

power on

pic¬

given industry.
In ad¬
dition, the instruction book will
be simplified and clarified in a
a

number

make

of

the

respects

in

order

filing of financial

suspend

the

"Our

Mr.

to

way as to meet new and

of

other

with

these

to

eliminating

trade

United
the

barriers

Sates

and

tariffs

and

between

the

Canada

We

the

on

had

compatible
information.

compliments

simplicity

excellence
are

for

many

need

our

have

of

always

and

the

the

on

methods of further
and

we

technical

forms, but

we

lookout

of

country

the

gestions."

simplification,

■

eventualities.

holdings of idle funds,
under war conditions, also deprive
the
banks
of
needed
earnings.

give

OPA

continuing and basic information
price control problems in in¬

dustries

subject to

OPA regula¬
present reports are be¬
from virtually all
companies with assets of $250,000
tion.

At

obtained

more

engaged

in manufactur¬

companies

in

se¬

wholesale

ably rise in

a

war

period such

funds.

The

increased

earnings

that may be obtained from fuller

utilization

of

available

resources

Dec.

23,

statement

1941, I

of

be¬

fol¬

Coulee Dam.

in

builders

from

struction

or

The order prohibits

continuing

installation

con¬

the

on

projects, except for purposes of
safety or health, or to avoid un¬

"Legislative and administrative

restrictions

acter which

lay

of

that

suitable

are

their

to

prohibit, prevent, de¬

flow

of

war

supplies

munitions
between the

necessary

needs

ther

take

ties

by the Federal

Reclamation

Bu¬

but the two orders affecting
Grand Coulee apply to a private
One order is directed

against the east
the

second

power

covers

house and

three

units

of

control, was presented to
Washington Chapter of the

the

National

Association

countants

head
of

of

by

the

OPA's

Cost

of

Robert

W.

examination

Financial
The

Ac¬

King,
section

Reporting
important

most

says the OPA, eliminates
requirement that a company

individual
and

ple

salaries

for

$20,000

employees

a

year

or

its
re¬

of

these

salaries,

showing the

range and numbers
of persons in this class but omitA

ting reports

"I

on

i

1

„!•

^

salaries of partic-

ular individuals.
Mr.

King

"This change,"
explained, "decreases
inare

general experience of banks out- j asked to suddIv without deoriving
side of the central reserve cities OPA of sufficient detail with rethat, soon after they have invested I gard

to

executive

salaries.

Continental

Divide,

and dams

a

13-

and power

plants at Colorado Big Thompson,
Estes Park and Mary's Lake, Colo.
The

of

the

the

source,

from

>

Keswick

Dam, on the Sacra¬
River, California, including
dam arid three power plant units,
all stopped.
mento

Anderson Ranch project, on the

Payette River, near Boise, Idaho.
The stop order affects the entire

project,
two

including

power

the

dam

and

units.

Shasta

Dam,
on
Sacramento
River, California. Only one unit,
No. 5, scheduled to begin gen¬
erating 75,000 kilowatts in >944,
is affected.

All of the

projects were to have
So been completed in 1944 or 1945.

best

of

all

engaged in remov¬
ing, wherever posible, numerous
administrative requirements and
formalities
affecting the move¬
ment of war goods, information
and persons into and out of the
are

There
remain^
legislative obsta¬

cles to that movement which im¬

pede and.delay
tion

our

produc¬

war

effort.

"These

obstacles

those

movement

customs

States
and

to

territory
of

fall

directly
and

of

into

the

materiel,

two

effort, such as customs duties and
the laws; and the administrative
supervision required by law af¬
fecting movement of persons and
property at our borders and ports,
and

those

tions

tion

on

or

ticles

plies
such

or

in
as

under

which

impose limita¬
the procurement, acquisi¬

use

of non-American

ar¬

the transportation of sup¬

non-American
restrictions

on

bottoms,
the

use,

differential

construction

of

materials

vessels

in

the

under

construction

the

Merchant

Execu¬

ac-

was

on

was

the

watch¬

ing for opportunities that might
develop. Mr. Hull made these re¬
marks

at

his

conference

press

when asked for comment on criti¬
cism by Wendell L. Willkie of the

Government's attitude toward the
problem.

Mr.

Willkie

said

his radio talk of'*■Oct. 26 that
by the Administration's policy of

of

India "we have

good-will

speech

on

in

our

the

already

reservoir

East."

given in
issue, page 1545.
was

His

Oct.

our

29

Asked about the
speech, accord¬
ing to the Associated Press, Mr.
Hull

had

said

the

been

clined

American

made

attitude

known.

He

de¬

detail

Mr.

criticism, 'pointing

out

to

take

Willkie's
that

in

up

American

some

has

some¬

thing to say every day on some
phase of the British-Indian situa¬

tion, and, he added, such Ameri¬
cans

have various views.

The

Associated

Press

further

reported:
"He
to

for

say

(Secretary Hull)

went

some

time, and especially dur¬

sistently
forward

garded

on

that the State Department

ing this administration, had
proclaimed
in

as

a

practice

and

con¬

carried

what

it

re¬

forward-looking pol¬

icy. It will continue to follow that

policy, he said.

It will not expect

commendation, but it is to be

ex¬

pected, he added, that the criti¬
cism

will

subsidy contracts, of non-Ameri¬
can

Chief

problem of India and

information
war

the

Oct. 27 that the United States
in fact deeply interested in

the

United

needed for the

persons

laws,

In Problem Of India

affecting
from

such

any

Secretary of State Hull said

heavily

many

the

Expresses U. S. Inlerest

on

however,

the
with

w?rk °ut in
Parallel
m 0
countries,

drawn

States,

dealt

government agencies

silence

—

direction the govern¬
agencies have already re¬
my

United

or

enable

sources.

moved and

be

way as to meet new and

tive and the

every

those

a

in

"At

the

judgement that

can

will

as

>

eliminate

my

ability to make the fullest and
quickest use of the world's re¬

the

side.

peacetime
is

that

amend any of
restrictive laws.

or

perhaps unforeseen problems as
they may arise, and on such terms

our

of the Divide and the
west

to

of

op¬

or

our

President

of

movement

recommend

India

order affects the tunnel and

the

now

eration

effort1

war

prosecution

free

peacetime restrictions which limit

classes:

on

the

two

history the pri¬
conditions of victory.
V

parts of the project located east

Granby Dam

effective

in such

suspended

procurement

before in

ever

ment

over.

substituted sim-

are

tabulation

for

the

the

and

foreign or do¬
mestic.
Speed and volume of war
output have become more than

in

the west power house.

do

advantage of possibili¬

available

mary

reau,

recommend

by

duration of the war, but no
long¬
er, the power on a selective and
flexible basis to suspend the

char¬

any

pre¬

by giving to the President for

otherwise impede the free

or

due damage to
materials, in which
"To achieve an all-out war pro¬
being offered by the Treasury case the effective date is Nov. 15.,
duction
United Press
afford banks ample opportunity
effort, we must imple¬
Washington ad¬
ment and supplement the steps al¬
to employ their available funds vices reported:
The projects are all sponsored ready taken by the Congress and
more fully, in the kinds of invest¬
ments

war,

program

including tariffs, import
duties, customs and other regula¬

now

individual needs."

the

the

"It

in Canada but in every
country of
the United Nations. We must fur¬

are

therefore

for

I

barriers

or

obstacles

persons, property and information
into and out of the United States.

production not only at home and

thus

the

.

by law which I have el-

early
Congress of
legislation to the extent required

Oct. 28 revoked

on

effort, but it only partially

lowing recommendations:

"The
cur-

war

them

these

tions

emergency
pur¬
of war materials

enter

"I

tailingconstruction;theWaFPrd-

policy of

make

abroad

to

enactment

our

duction Board

its

to

and

States

the

the

ready mentioned.

approved

contained

sup¬

of

agencies the authority
the Secretary of the

Congress repeal

which

Navy

vessels

chases

scribed

priority ratings for seven power
and
irrigation projects in the
West, including part of Grand

with

to

eliminates

have multiplied our demands for
|
a
maximum and integrated "war

line

in

free of duty.
This has measurably assisted our

production

war

of

sea

policy for Canada and the United

Halts Dam Projects
In

both

helpful to the banks,
covering their expenses
and
in
providing
net
income
which may be used to strengthen
their capital positions. The varied
types and maturities of securities

Navy

following is the President's

"On

by

except

granted

message:

a

the

to extend to the
government pro¬

history the primary conditions of
victory."
The

-

possessions;

curement

United

have

amendment

or

have already exercised
by
executive order the power grant¬
ed under the first war
powers act

during

before in

United

"I

otherwise eliminated for the dur¬
ation of the war.

as

this, and at the same time depcreit~-liabilitie?~ten
much more rapidly than capital

output
ever

countries should be

trade and related fields.

and taxes inevit¬

expenses

war

than

on

•

Bank

of

>

It is pointed
out, that the finan¬
cial
reporting forms

lected

"Such

volume

the

United States.

said that "the needs
effort have multiplied
demands for a maximum and

every

repeal

portation

war

come more

for

welcome constructive sug¬

the

plies

integrated war
production
not
only at home and in Canada but
in

any

on the acquisition
public use, public build¬
ings or public works of nonAmerican articles, or the trans¬

but

war

of the

war

movement

—

its

Mr. Roosevelt recalled the
pol¬

icy

the

1

for

work out in detail parallel action
in other countries."

re¬

King said:

experience

forms

any such laws,

will enable the Chief Executive
and the government
agencies to

our

conclusion

or

of

Marine Act of
1936, as amended;
on the
procurement of any article
of food or
clothing not grown or
produced in the United States or

,

complete

a

a

duration

(

recommend

as

necessary

ing, mining, construction, and

through-I the amount of confidential
been the j formation which companies




did

Congress give him "the

proprietorships and partner¬
In some lines of business,

ness

individual

KrtAtn

ex-

President

of any of the laws but asked
that«>—

reports from these forms of busi¬

or

Instead there

f

^

ships.

should make unneoessary the con¬
tinued holding of idle reserves by
banks

for

perhaps unforeseen problems as
they may arise and on such terms

ing

ceiving

the principal centers, has been

rowing

callable

by longer term Govern¬
obligations and for redis¬
of eligible paper, and is

officers

reserves

effected through Government bor-

penditure of the proceeds

or

the

se¬

securities

less.v

occasion

thus

banks,

change,

which, in the first instance, have
released in substantial part
«

member

Government

intended

report

been

in

ments

the

By these

the Federal Reserve Sys¬
tem has contributed substantially
to
the maintenance of member
bank
reserves.
A wide distri¬

MvHtCSi

The

Nov. 2, President Roose¬

on
the

interfering with the "free
information, into and out of

and

with

or

Branch.

persistent loss of reserves since

property

for

of

means,

suspend
laws

restrictive

persons,

operation of all

mile tunnel

the

to

power

struction book which
accompanies
the forms will
carry instructions

price

open

messa§e *° Congress

for

a

and loss
schedule for reporting
separately
charges which are set up to pro¬
vide wartime reserves.
The in¬

In

%% for

of

the1 profit

in

basic financial data for studies of

the

city banks, which have sustained
the

1943, will be

provision

asked

peacetime

the finan¬

repur¬

Gov¬

chase, any time before maturity,
Treasury bills of a like amount
and maturity at the same rate of
discount; and the lowering of re¬
serve
requirements against de¬
mand deposits for central reserve'
a

says:

cial report
forms, which will take
effect on Jan. L

option

of

the sellers to

velt

"Another change in

Programs

i3

u

The OPA also

Simplification in the reporting
These are the other projects af¬
forms by which 25,000 companies fected:
voluntarily file financial reports
Davis Dam, 30 miles west of
quarterly with the Office of Price Kingman, Ariz., entire
project. ; •
Administration was announced on
Colorado Big Thompson project,
Oct. 21. An outline of the changes
including Green Mountain and
in the program, which provides
Granby Dams on the western side

Treasury bills at all Federal Re¬

Banks,

fiscal

a

balance of

1942."

contractor.

market; the announcement of a
fixed
buying rate of %%
for
serve

on

basis during the

of

use

ports easier."

other trans¬

or

Financial Report Forms
Are Simplified By OPA

measures

purchases

large

cur¬

reporting

the

ment

to

by

ditional

resources.

through

to

companies

for

secured

cured

counts

im¬

subject

available

date,
indicates
two
Nations."
He added:
things, first, that the reports are
"We must further take advan¬
extremely valuable to the oper¬
ating divisions of OPA, and, sec¬ tage of possibilities of ^ procure¬
ment from every available
source,
ond, that the burden on respond¬
foreign or domestic.
Speed and
ents is at a minimum

maturing

ury

reserves

advances

year

their share in providing the Treas¬

be

may

discount rate of

a

amounts

securities.
There can be no question of the
willingness of the banks to do

re¬

Reserve

be

year

actions, this bank has just estab¬

the

Treasury

Federal

withdrawals

country, giving vigorous and con¬
tinuing support to the war financ¬
ing program, to purchase large
of

funds

reserve

from

market operations, and that

own

of

in

increase in

such

rest, it will be necessary for

the

in the in¬
deposits resulting from
Government disbursements, or in

open

in¬

course,
their
and
depositors.

customers

the

which

proportion¬

immediately

or

crease

sulting

.sell Government securities to

non-bank

ately

the

the

efforts

own

will not share

President Asks Removal Of Trade Barriers
Which Impede War Production

sert

will

1721

on

and

stood."

diminish

the

as

full facts

time
are

goes

under¬

Thursday, November 12, 1942

CHRONICLE

COMMERCIAL & FINANCIAL

THE
1722

estimated that

during 1942, it is

Yield Averages

Moody's Bond Prices And Bond

U.S.

Avge.

Daily

Govt.

Corpo¬

Averages

Bonds

rate"

Aaa

9

117.36

107.62

117.20

7

117.36

107.62

117.00

117.36

107.62'

117.20

1942—

Nov

6

Indus.

P. U.

A

Baa

R. R.

108.70

92.64

97.31

112.00

114.27

114.27

108.70

92.64

97.31

112.00

114.27

114.27

108.70

92.64

97.47

112.00

114.46

Aa

114.08

114.27

108.70

92.64

97.31

(Dem.,

117.00

114.08

108.70

92.64

97.31

112.00

114.27

107.44

committee.

107.62

117.20

114.27

108.70

97.31

112.00

117.38

92.64

2

107.44

117.00

114,08

108.70

97.31

112.00

114.27
114.27

'117.38

92.50

30

97.31

111.81

114.27

the

headed

who

Cal.),

117.00

114/27

107.62

112.00

117.38

of

production

national

a

pro¬

113.50

108,34

92.06

96.69

113.89

107.09

111.81

117.75

116.80

-

113.31

92.06

96.54

114.08

117.00

111.62

107.09

•

117.80

108.34

gram."';.
/'
Suggestions for immediate en¬
The
realignment
proposed
actment
of
national
service
leg¬
would establish a new Office of
were
described by the
Production and Supply, a reor¬ islation
committee as an attempt by the
ganized Office of Economic Sta¬
War
Manpower
Commission to
bilization, and a new Office of
by statute to "underwrite
Technical Mobilization, all to be seek
the authority it has failed to ex¬
operating agencies subordinate to
the Office of War Mobilization. ercise.".. .v ■
Unless "prevailing administra¬
Among them, they would
take
tive shortcomings" are corrected
over functions now performed by

108.16

96.54

the

116.80

113.31

114.03

106.92

111.62

117.85

92,06

Aug. 28

116.80

113.31

108.16

96.38

114.08

106.92

111.44

117.93

92.06

21

116.80

) 113.31

108.16

111.44

114.03

106.92

96.23

117.92

91.91

14

procurement, divisions
of
the
Army, the Navy, Maritime Com¬
mission and Lend-Lease Admin¬
istration, the Office of Price

—.

Exchange Closed

3

Oct

117.38

107.44

117.00

114.08

108.70

92.50

107.44

117.00

114.08

108.70

92.50

97.31

111.81

114.46

117.37

117.20

114.08

108.70

97.31

114.46

107.44

111.81

117.38

92.50

9

23

'

/

16

'Sep

,,

113.89

108.52

97.16

114.27

107.27

117.00

111.81

117.39

92.35

2

117.00

113.89

92.06

111.62

114.08

107.27

97.00

117.51

108.70

25

117X0

113.70

108.52

96.85

114.08

107.27

111.81

117.62

92.06

18
11
4,+

4

116.61

113.12

108.16

91.91

96.23

111.44

117.97

106.92

96.07

111.44

118.11

108.16

91.77

July 31

116.41

113.50

114.27

•106,92

107.98

91.77

95.92

24

113.31

114.08

106.74

116.61

111.62

118.22

116.41

113.12

107.98

91.62

95.77

114.27

17

106.74

111.44

118.22

113.31

107.80

91.62

95.77

10

116.41

114.08

106.74

111.25

118.26

106.56

116.22

113.12

107.98

91.34

95.77

111.25

113.89

118.09

107.80

91.05

95.47

110.88

June 26

112.93

report,

106.39

116.22

113.89

118.14

112.93

91.77

96.07

110.70

said:

106.39

116.02

113.70

118.35

107.44

May 29

113.12

107.62

92.06

96.69

24

116.22

113.70

106.74

110.70

117.80

91.91

110.34

113.50

27

118.20

97.00

7

3

Apr.
Mar.

~.

107.62

113.50

116,22

106,74

■

.

Board,. the

Production

War

114.27

■

the

War Manpower
and
the
Selective

Administration.

Service

Regarding the House committee

Press

Associated

■/•'■;■'/.

■

■

115.63

113.31

107.62

96.85

110.15

106.92

116.22

113.70

107.80

92.06

97.31

110.52

113.70

117.08

107.62

117.20

,114.27

108.70

92.64

97.47

112.00

114.46

118.41

106.04

115.43

112,75

107.09

90.63

109.60

112.75

115.90

95.32

1942_

108.52

118.60

116.02

109.60

97.78

112.56

116.41

120.05

92.50

1941

105.52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

115.89

120.02

108.34

118.60

115.82

109.60

92.06

97.62

112.37

116.22 down," and blamed top

1942—„

Low

High

1941

Low

1941.

10,

,

Washington agencies."
this confusion in

avoid

To

the

it recommended a decen¬
tralization of war agencies to re¬
flect the views and needs of the

MOODY'S BOND YIELD

(Based
U.S.

1942—

Daily

Govt.

Averages

Bonds

Nov

Avge.

on

numerous

months

10

mented.

war agen¬

Individual Closing Prices)

Aaa

rate

Aa

A

Corporate by Groups

tion.

2.94

3.06

3.30

2.79

2.95

3.24

4.23

3.92

3.30

2.80

2.94

3.24

4.23

3.92

3.06

2.94

3.30

2.94

3.24

4.23

3.91

3.06

2.93

2.05

2.79

2.05

3.30

2.80

2.94

3.24

4.23

3.92

3.06

2.94

2.05

3.31

2.80

2.95

3.24

4.23

3.92

3.06

2.94

2.05

3.30

2.79

2.94

3.24

4.23

3.92

3.06

2.94

industries, but were higher

2.05

3.31

2.80

2.95

3.24

4.24

3.92

3.06

2.94

forest

4.24

3.92

3.07

2.94

4.24

3.92

3.07

2.93

—

'

,—„

Exchange Closed

3
2

-u_

C—j—\

30
■23

—

\'

■

3.31

2.80

2.95

3.24

3.31

2.80

2.95

3.24

-S--—

2.05

2.05

3.31

2.79

2.95

3.24

4.24

3.92

3.07

2.93

non-manufacturing

2:80

2.96

3.25

~4t25~~

3.07

2.94"

it

__c—/

3.32

3.93"

2

2.05

pointed—out

is

The

3.32

2.96

3.24

4.27

3.94

3.08

2.95

figures employed are

2.03

3.32

2.80

2.97

3.25

4.27

3.95

3.07

2.95

——■

3,33

2:61

2.98

3.26

4.27

3.96

3.07

2.96

2.03

3.08

2.95

including Federal income taxes.
its advices the Board says:

3.33

2.80

2.99

3.26

4.27

______

2.03

3.97

3.34

2.81

2.99

3.27

4.27

3.97

2.95

——

2.03

3.08

28

3.3.4

2.81

2.99

3.27

4.27

3.09

2.95

—

2.02

3.98

21

4.28

3.99

3.09

2.95

4.28

3.99

3.09

2.94

4

Aug

14,

2.02

3.34

2.81

2.99

3.27

7

2.02

3.34

2,82

3.00

3.27

3.34

2.83

2.98

3.27

4.29

4.00

3.09

2.94

31

2.01

4.01

3.08

2.95

July

3.35

2.82

2.99

3.28

2.83

3.00

3.28

4,30

3.09

2.94

after

3,35

4.02

17—,— '

1.99

3.35

2.83

2.99

3.29

3.10

2.95

1.98

4.02

10

4.30

from

3.36

2.84

3.00

3.28

4.32

3.10

2.96

1.98

4.02

3

2.84

3.01

3.29

4.34

4.04

3.12

26

3.37

2.96

1.96

4.00

3.13

—

3.01

4.29

29

2.85

3.31

May

3.37

2.97

1.95

3.35

2.84

3.30

3.96

3.13

2.97

——

1.99

4.27

24

3.00

Apr.

3.35

2.84

2.98

3.30

3.94

3.15

2.98

27

1.96

4.28

Mar

2.87

2.99

3.30

4.30

Feb

3.37

3.16

2.99

2.11

3.95

27

2.84

2.97

3.29

3.92

3.14

Jan.

3.34

2.97

2.05

4.27

30

-

June

—

——

High

1942

Low

1942

High

1941

Low

1941

—

;v

X

v;

2.14

3.39

2.88

3.02

3.33

4.37

4.05

3.19

1.93

3.30

2.79

2.94

3.24

4.23

3.91

3.06

2.13

3.42

2.86

1,84

3.25

2.72

:

'

3.02
2.93

3.06

3.39.

4.47

4.03

3.20

3.08

2.85

3.19

4.24

3.39

3.03

2.83

*

Year

1

Nov.

ago

2.86

2.72

3.26

1.85

1941„

10,

3.19

4.27

3.42

4.48

1940

9,

2.77

3.41

1.98

2.97

v

.

3.00

3.16

prices are

complete list of bonds used
of Sept. 17, 1942, page 995.

issue

the

In

During

coupon,

tThe latest

'

f'

•

.,

•

in computing these indexes was
v
«

•

-

11, 1942 issue

June

• .

for 1941 will be found on page 2218 of

the

of the "Chronicle."

MOODY'S WEIGHTED

AVERAGE YIELD ON 200 COMMON STOCKS
.

Average

(125)

Month—
January,

1942

1942

February,

1942

March,

April,

1942

June,

1942

July,

Yield

(?5)

(15)

(10)

(200)

.

7.4%

7.2%

7.6%

5.3%.

4.5%

7.2%

7.2

7.4

7.7

5.6

4.6

7.1

corpora¬

1941, the

years

1936-1939,

corporations

1940, manufacturers

as

a

earned

provement was most pronounced
in the durable goods industries,

"8.2

8.5

6.0

5.0

7.7

particularly

7.7

8.3

8.9

6.1

5.3

7.8

automotive

6.7

7.8

8.2

5.7

4.9

6.9

all

7.8
*7

8.4

4.3

6.6

5.5

4.7

6.4

5.6

6.1

fj

8.2

6.0

7.5

8.0

5.1

4.7

6,3

5.8

7.3

7.9

4.9

4.5

6.1'

5.5

7.0

7.2

5.0

4.4

1942




5.8

net

reported by these
two groups. Margins in chemicals,
paper and pulp, and forest prod¬
ing having been

_

—

1942—

in the metal and
fields, almost half of
income from manufactur¬

7.7

6.4

are

as

the following were

report:'''

in 'peacetime'

/'./•/.

.■

features of the
• *..

Airplanes—Four-engined bomb¬
ers
rolled off the assembly lines
earnings per dollar
nearly on schedule. Measured by
among the factors
value, which takes

total

of

count the difference

contracts."

into ac¬

between large

small craft, plane

September was up

—

—

1942

October,

Insurance

—

August, 1942
September.

(25)

Banks

——

194J

May,

Railroads

Utilities

much

United Press,

According to the

paid
about

and

8.0%, before taxes, per dollar of
sales, and 6.1%, after taxes.
Im¬

.

Industrials

yj

and naval depots, stations,
and the expansion

itary

increased.

Production contin¬
Tank output was up
37c, production of tank guns was
ahead of schedule and output of
Ordnance

—

ued uneven.

anti-aircraft guns was

good. Pro¬

ammunition was spotty.
Navy
and
Army
Vessels—
Twelve major combat vessels were
launched.
Deliveries of major
duction of

numerous

vessels-were more

deliveries

but

forecast

war

trebled

plant
facilities almost
the volume reported for

categories during the first
nine months of 1941."
Miss Perkins further stated:

these

than

of other

types did not measure up

airfields

and

of

is

to ex¬

pectations.

Ninety-two

Merchant Vessels—

merchants vessels were

placed in

actual service—21 more

than were

taxes,

"In

'

i

merchant ship

averaged 4.6% on sales,
commissioned in July. Deadweight
"Sharp curtailment of private
according to
the
tonnage was 1,009,000.
construction
arising
from
mate¬
Board's figures.
Sales margins
Machine Tools—Production to7
ranged from a low of 0.7% in ap¬ rial shortages resulted in a de¬
parel to 8.4% in tobacco and 9.4% crease of 34%;: in the - total vol¬ •taled $120,118,000 in dollar value,
of
private
construction.
in chemicals.
The peak for these ume
a gain of 2.47c.
construction during the
four years was reached in 1936, Private
first
nine
months
of
1942
reached
when manufacturing corporations
averaged 6.6% on sales, before only $2,800,000,000, a decline of
taxes, and 5.6%, after taxes.
The $1,400,000,000 from the amount
reported for the same period of
Board further reports:

after

yields in the years 1929 to 1941 inclusive and

monthly average yields

sales

war

group

Moody's Common Stock Yields
Yearly average

the

manufacturing

published

•

was

considered in the renegotiation

largest gains last year occurring
in mining and construction."

computed from average yields on the basis of one "typical" bond
maturing in 25 years) and do not purport to show either the average
level or the
average movement of actual price
quotations. They merely serve to
illustrate in a more comprehensive way the relative levels and the relative movement
of yield averages the latter being the true picture of the bond market.
♦These

(3%%

Earnings on

in

tions

—

struction, 227c, and
construction, 107c.

volume in
10%, compared
with an increase of 7% in August
Building Activity In Nine
over July.
Plane production in
Months
$10.5
Billion
sales,
the
months ahead may exceed
Total new construction in the
5.4%,
propeller output unless the latter

taxes,

6.1%

non-manufacturing
in both 1940 and

in

2 Years ago

4.08

the September

7%; fighting ship con¬

ordnance,

dropped to
1940 and 5.6% in continental United States amount¬
1936,
Preliminary data suggest ed to $10,500,000,000 during the
that this drop resulted primarily first nine months of 1942, com¬
from sharply lowered margins in
pared to $8,000,000,000 for the
the metal, automotive, and chemi¬ corresponding
period
of
1941,
cal industries, all of which are Secretary of Labor Frances Per¬
kins reports.
now closely related to the produc¬
"War construction
tion of armaments.
In contrast, brought the total for public con¬
margins continued to rise or re¬ struction up to $7,700,000,000 for
mained relatively unaltered in in¬ the first nine months of this year,
dustries
which were previously almost twice the volume for the
below the average rate of return. first three quarters of 1941." she
"Construction work at mil¬
Sales margins continued upward said.

"

Nov.

1940.

in

than

2.00

*.

year

as

"Peacetime

of

United States fac¬
about $30,000,000,000 more in dollar volume and
30%
more
in physical volume
"Last

tories handled

4.29

24

twice

after taxes,
In

2.04

2.80

—

$1,250,000,000

in Federal income taxes, or

corporations

18
11

features of

production picture, Mr. Nelson
said,
were
increases in these
four
categories:
aircraft, 107c;

'

Roughly

that -earnings- _y

25

.

that the rate of

production is now on a scale
"which approaches four times the
rate at the time of Pearl Harbor.'f
He added that the WPB munitions

,:■/

;

in the^-

products, the petroleum and
coal products industries, and the

9

16
f

2.05

produc¬

war

,,

Mr. Nelson said

margins in the metal products,

2.05
—

Board,

automotive and chemical
Mr.
Nelson
disclosed that in
industries, all heavily engaged in the production of armament, were September the Treasury and Gov¬
sharply lower in 1941 than in the previous year, according to ernment corporations paid out $5,data released by the National Industrial Conference Board, New
500,000,000 for war purposes, an
York, on Nov. 4.
Such margins were also markedly lower in the increase of $300,000,000 over Aug¬
paper and allied products, and the" stone, clay and glass products ust.
7.'
Profit

Indus.

P. U.

R. R.

Baa

report on

monthly

Chair¬

in his fourth

revealed on Oct. 31

In Industries Engaged In
Production, Conference Board Finds

2.05

4 '

:

Armament

Corporate by Ratings

7% over

September increased

August, Donald M. Nelson,
man of the War Production

.

Corpo-'

production

munitions

Over-all
in

Profit Margins Down

7

5'

Sep

AVERAGESt

9

6

Oct

113.12

110.15

94.86

89.09

105.52

113.70

117.60

105.69

118.35

1940—

9,

' •

September Monitions
Output Increased 7%

2 Years ago
Nov.

'•'

year."

realign¬
index (covering all fighting items)
after Pearl
: /. ,,.■<' advanced 24 points from 357 in
Harbor,
business-as-usual
con¬ public.
"Many of the shortcomings of August to 381 in September. (The
siderations
still
permeate
the
the war effort to date are. trac- index is based on 100 for Novem¬
Washington wartime agencies."
It said that "our materials dis¬ able to the attempt to run the ber, 1941, the month before Pearl
}
tribution
system
is
breaking war from Washington," it com¬ Harbor.)
"Despite

ments,

1 Year ago
Nov.

perpared the ground for the pro¬
posed advance," but at present
were
confused
by
"conflicting
orders
and demands emanating

bilization," the report said:

106.39

113.31

116.34

91.62

27

test" provided they were
leadership has

any

future,

30

people "are ready

assured that "their

from

Jan.

•.

American

advocating the establishment
of this new "Office of War Mo¬
In

Feb.

High

advices

be

reported

,

quarters of last year.

three

committee said it believed

The

for

volume

warned,

would

effort

war

jeopardized.

Ad¬

ministration, the
Commission

entire

the

committee

the

quickly,

of 11% over the
for the first
High¬
way
construction experienced a
34% decline, while other Federal
construction consisting mainly of
conservation
and' development
work fell off 7% from the total
for the first nine months of 1941.
Meeting the increasing demand
of the war program, public util¬
ity construction rose from $577,000,00 for the first three quar¬
ters
of 1941 to $604,000,000 for
the corresponding period of this

000, an increase

of the
made

117.38

5

4

amounted to $352,000;-

eral funds

prices and machines, was called for in the report
special House Committee on National Defense Migration
public Oct. 20.
A bill designed to carry out the group's recommendation was
introduced in the House on Oct.<s>22
by
Representative
Tolan cies generally for , "the absence

Corporate by Groups*

Corporate by Ratings*

by Fed¬

"Warehousing financed

decisions as to production, man¬

policy-making

service buildings.

arid

Mobilization centralizing re¬

Office of War

an

residential

farm

for

penditures

power,

Yields)

(Based on, Average

for

sponsibility

PRICESt

BOND

MOODY'S

of

creation

The

given in the following tables:

in ex,-

decrease Occurred

11%

an

War Program

For Central Direction Of

yield averages are

bond prices and bond

Moody's .computed

Single Agency

House Committee Urges

,

ucts were also

of

the

four

higher than in any

preceding

years.

Moody's Daily
Commodity Index

1941;.
"Private

struction,
nanced

only
half

non-residential
con¬
including privately fi¬

war

plants,

aggregated

or
less than
much as in the first three

$4,55,000,000
as

quarters' of 1941.
idential

Non-farm res¬

construction

showed

a

of $910,000,when compared with the to¬
of $2,150,000,000 estimated for
first nine months of 1941. In

dollar value decrease
000
tal

the

spite

of expanding farm

income

Monday,

Nov.

Tuesday,

Nov.

Thursday,

Nov.

Friday. Nov.

Saturday,

5

ago,

1941

High

Low,
1942

Nov.

Sept.

Feb.

High,

Low.

Jan.

♦Holiday.

233.7
233.7

—_

232.7

233.1

7—

233.2

26

236.4

2

Oct.

ago,

Year

1
9.:

*—,i

17

Oct.
2

232.3
*
233.3

—

—

6—„

Nov.

Monday, Nov; 9—
Two weeks ago, Oct.
Month

—.—J—

2_—
3-

Nov.. 4

Wednesday,

'

3-.
'

—

:

208.6
219.9
171.6
236.4
220.0

Volume

156

Number 4124

THE COMMERCIAL & FINANCIAL
CHRONICLE

Weekly Statistics Of Paperboard Industry
give herewith

'

We

Weekly Goal and Coke Production Statistics

latest

figures received by us from the National
Paperboard Association, Chicago,
111., in relation to activity in the

production, and also

STATISTICAL REPORTS—ORDERS,

.

the

on

Period

+

Unfilled

Production

Received

Tons

July-

4—L--.———-■
11

July
July

18

;

•

r+.

Tons\ '

8-

Aug.

15—

1

Aug.'

—

A

',

52

90

103,559

114,917
120,982
125,653
121,035

226,341

71

90

114,969

•

120,262

—

;

3_.

89

89

73
74

122,236

124,440

212,953

129,486

124,580

218,539

106,933

101,891

138,477-

132,212

129,503

131,173

144,506

133,513
131,961

236,208

134,197

261,871

-136,249

275,139
272,006

—

147,437

Oct.-

17

152,644

Oct.

.24-

Oct/

31.

■

150,133

;

138,423

87

comparable data on production
of

78

87

81

86

248,026

78

86

80

86

80

:

,

lignite coal—

"Crude

85

V

84

..

,

.

Coal

85

made

for

filled

or

from

stock,

and

other

items-made necessary

"unfilled orders.

Nov. 1,

Oct. 31,

to

Nov.l,

can

480,037

1,937

419,137

371,415

1,902

1,812

1,878

1,645

1,454

264,315

242,347

6,275

6,521

during the week

269,057

\-i,

first

Cold-rolled

Navy

cal

October Department Store Sales
The

.

Board

nounced

tober

the

and

of

Governors

Nov.

on

the

1923-25

5

Board's

average

in August.1
OF

compared

as

Adjusted

for

Without

seasonal

seasonal

Boston
New

vi—

,

in

variation

System

increased

index

to

rose

September

:

Penn. anthracite—

129

ti23

"

138

tl33

corresponding period

United

103
a

year

United

112

York

total™

,

States

1

operations.

fExcludes

revision.

x

.

,

.

"'i;

■

and

Con¬

materials,

the

present priorities
the Production Re¬

and

for

is
attracting
Plenty of time, is

its

application, first

—.

Cleveland

Atlanta

'--—XL/

ChicagoxL'A+X/
St.

+

3

+

9

t + 14
:

+ 19

Louis__

2

—

t + 50

Dallas

+

3

+ 33

>+ 24

—

+ 39

+ 17

+

9

+ 19

+ 21

+

6

+ 11

+

7

+

+14

-

9

+ 30

Francisco

+ 37

13

+

+ 11

9

Minneapolis
Kansas City
San

+ 14

"+ 20

+12

t + 26

.

+ 16

+ 25.

■'<*
'.

,

■

«

+

+ 14

+ 40

+ 37-

19

+ 36

+

+14

+ 37

+18

t +17

+ 34

^

4

;

.-

U.

S.

total,™; ■;!

WEEKLY

INDEX,

'"■+ 14

WITHOUT

5

0
—15

+ 13

+ 26

;+ 26

SEASONAL

•

: 9

to
daily average
weekly sales.

sales

+ 10
+

8

+ 14

—

8

+

2

+

of

or

+19

'■ +

+. 18..

+';'

2

—

1

8.-6

(1935-39

Alabama

+

9

+

15

Arkansas and Okhihoma-.—-

3

+

10

Georgia

AVERAGE= =100)

and North

xx——_.

169

Oct.

25XXXX-XX—XX-X.X—- 130

———.™— -

.

__

1—„X—
States

month;

total.
.

138

—

Michigan
tRevised. y {Monthly

October,

1942

figures

compiled by The
public on Nov. 9, .last week
This index in the week ended Nov. 7,

1942 stood at 130.4%

of the 1935-1939 average as 100; it was 130.0 in
the preceding week. 130.2 in month
ago, and 116.5 a year ago.
This
index is now 9% higher than at the first of the
year and is 12% above
the corresponding week of 1941.
The Associations report went on to

':,;:;xx;

South

textile index continued to

advance, due to a rise in the price of raw
cotton, upon which no specific ceiling has yet been placed.
Food
price changes were few, but upturns in potatoes, chickens, and cot¬
group

a

average

miscellaneous
;

slight advance in the group average. C The only
to change during the week was the index of

commodities,; which

was fractionally "higher.;; + v:* /;
12 commodities advanced and 2 de¬

During the week prices of
clined; in the preceding week there

were

12 advances and 8 declines;

in the second

were

14 advances and 4 declines.

preceding week there
weekly

wholesale

commodity

price

index

92

100
143

1

1

1

tt

1,285

1,325

1,058

913

1,178

525

1,558

492

483

336

351

520

'

'■1■

Each Group
Bears to the

'

'

Group

and

109

172

752

857

296

304

198

142

203

238

34

35

30

32

37

29

8

8

9

8

101

100

83

Farm

•West

Western

Total

and

anthracite—

•Includes operations

on

2,560

2,850

2,547

2,235

150

146

113

109

118

'9

9

20

26

97

66

90

121

Steel

!

-

180.2

.115.8

8.2

;

,

,

Textiles

—

—

7.1

Metals

6.1

Building materials—

1.3

Chemicals and

.3

Fertilizers

.3

Farm

100.0
•Indexes

151.4

drugs—1—_—_

1'20:7

All
on

117.4

groups

base

were:




130.4

—

Nov.

7;

1942,

101.3;

119.4

-

tion

whose
to

112.3

127.2

126.3

126.0

148.0

147.4

138.6

102

ratings

obtain

44

104.4

151.5

131.3

120.7

112.3

possible

114.6

on

117.9

130.0
Nov.

3,

,

115.3

107.5

T04.1

100.2

130.2

1941,

90.8.

'

116.5

steel

to

188

■1

tt

..

294

334

31

46

68

•

231

1,832

1,931

1,488

891:+:'.

577

560

805

153

129

156

184

tt

*•4

V,:

.

:+:

tt

11,400 t
1,140

on

time

ago.

"Hard

tear

11,178

•

''' '

:„'A 1.269

12,540

for

most

went

on

latter

essential

to

are
war

not

driving
is

and

build

is

con¬

up

re¬

of

open-hearth

increasing

repairs

are

wear

and

taking

toll

of production.

V;

"A

8,962

9,680

11,310

1,295

1,184

1,968

ore

12,447

90,000,000

on

10,257

10,864

13,278

gross

total

83,858,620

tons,

season

movement

to

seems

Nov.

1

which

tons,

an

over

the

good

exceeds

The

12,248,328

tons

is

tonpage

month

same

start

is

tonnage,

American

Institute

last

being

7,660,987

was

The

Nov.

1.

11,417,167

was

increase of 1,813,659 tons

November
year

as¬

being

in the past.

greater than last year to
October

more

tons of iron

the Great Lakes

sured, the

full

of

movement

season

than

'

i

they have little tonnage
the magazine "Steel" of Cleve¬

purposes

make

some

steel

markets

Nov.

on

9.

in part:
many<£
say

prod¬

sufficient

delivery.

materials
are

Some

year.

made

which

on

last

tons."

Iron

and

Steel

Nov. 9 announced that

on

steel

to

Orders

inroads

backlogs.

stances

to

to

time

shortage

not

&

occasional

in¬

said to have occurr'ed

telegraphic reports which it had
received

of

indicated that the oper¬

ating rate of steel companies hav¬
ing

91%

the

of

the

industry

steel

will

capacity of

be

99.6%

of

capacity for the week beginning

price shading in the effort to
obtain high-rated
tonnage which

Nov.

would

ceding week, and compares with

command

supply of semi¬

finished material.

This

is not

an

indication of softness in price.
"Mills
carbon

are

and

supplying hot-rolled
alloy bars for essen¬

tial purposes on rated orders at
close to schedule but on new bus¬

iness

"During adjustments of quotas
and restrictions on production of
certain

household

present receipts but
so
fortunate and
allocations made some

rely

3,149

42

2,370

■

875

mill,s for most part are in
excess
of shipments, though oc¬
casionally a producer finds it

120.7

104.1

:

413
.

2,190
.

to steel

151.4

104.0

the

a

'

410

.

operating
under
Produc¬
Requirements
Plan,
but

104.4

115.3
104.1

combined

1926-1928

further

"Among

110.5

;

117.4

L.-

machinery

153.8

:

'

Fertilizer materials

.3

"Steel"

107.7

119.3
127.4

116.4

817

production and distribution are
functioning
smoothly mills have so heavy a load of directives and alloca¬
steel

are

furnaces

8

remaining for other consumers," says
land, in its summary of the iron and

143.3

143.6

'

commodities—

143.6

178.2

542

Mills-New Plan Held Aid To Steel Trade

119.3

112.3

Livestock
17.3

153.9
143.0

••36

Operations Unchanged—Directives Rule

t

ucts,

156.1

142.2

58

85

A

who hold contracts for

158.4

...

37

/'A,,;/

122.7

Miscellaneous

v

r

'•

W.; C. & O.; Virginian; K. & M.; B. C. & G.;
and on the B. & O. in
Kanawha, Mason, and Clay counties. tRest of State,
including
the Panhandle District and
Grant, Mineral, .and Tucker counties.
{Includes Arizona,
California, Idaho, Nevada, and Oregon. SData ior
Pennsylvania anthracite from pub¬
lished
records of the
Bureau
of
Mines.
tiAverage weekly rate for entire month.
••Alaska, Georgia, North Carolina, and South Dakota included with "other
Western
States/'; tfLess than 1,000 tons.
'■
?-,•

141.8

-

-

183

"the N.

146.2
.

are

406

12,603

Oils_———.
—

from

any

coal

113.5

—,

serves

others

673

1,193

132.6

Products

28

82

22

;

"

: „■

the

labor

able

10

'

.

in

this, also.

80

lig-

132.9

Grains

10.8

Nov. 8,

factor in

/

695

11,410

Total ,all

a

64 ;>

702

45

States——.

bituminous

general

bring out
buildings,

require

and

sumers

59

870

to

than

11
jli
will

dismantle

58

2,151

[Other

character

scrap,

29

Virginia—Southern—

The

being followed by

material

161

75

[West Virginia—NorthernWyoming—

is

campaign

764

36

400

.-I_——

Oil————

+ ;

145

Virginia

1941

Cotton——
.

Ago

Oct. 3,

Oct. 31,
•

'

:;

90

2,615

the

workers

ery and equipment.
This tonnage
promises to be large and of bet¬

ter

116

150
980

Washington-^-——

/

Year
(

93

«

171

lig-

1942

Cottonseed
23.0

»

Ago

'• -

58

o

of

of

unused rails and obsolete machin¬

217

950

40

__

1942

Foods-

and

Month

Week

Nov. 7 ,

1942

Fats

Preceding

56

88

-

their op¬

-

"

Week

Total Index

■

50

112
178

935

120

tions for

Latest

.■

•

::r.

52
118 "

furnished

support

furnaces.

dormant

398

,

173

;

steel

further

i

in

melters.

character

shortage

collection

111923

"

more
,

[•1935-1939=100]
-

25.3

'

for

avge.

.

1937

and

(bituminous)
A.

"Although

Compiled by The National Fertilizef Association

'

'

46

•

■

Oct. 23,

1940

for

hamper rapid conversion of yard
tonnage
into
material
suitable

uct,

Oct. 26,

and'

progress

being

to

but

and

scrap

1

8

.

-

cj0

1941

Dakota

__

§ Pennsylvania

''.V.,;;

grains, prices of farm products were generally
higher during the week, with 7 items included in the group advancing
and only one declining.: The farm products
index, how at a new high
level .of 143.5, is 14% above the
highest point reached in 1941.
The

tonseed oil caused

Oct. 25,

3

—__—

and

JCAJtlUCii-

264

■

is

erations

1942

col¬

weeks,

tonnage

steelmakers

states

4

99

™ ™——

Mexico.

Texas,. (bituminous

Led by a 3% rise in

other

to

Tons)]

290

——

(bituminous

lignite)

Pennsylvania

The weekly wholesale commodity
price index
National Fertilizer Association and made

/

by

current

followed

making

are

preparing

167

"

;

of Net

6

—+

—;

Montana

esti¬

Commodity Price Index At New Peak

-

SSubject

143

■'

'

Maryland——.

Tennessee:

say:

yards

authorized

5

,

Kentucky—Eastern—
Kentucky—Western—

New

high level.

from

available.

has

the

recent

Sufficient

Oct. 17,

130
131

_

National Fertilizer Association

new

truck

of

t

364

(lignite

a

{

370
.

-—

Iowa—.

North

advanced to

by

not

lection

5

Carolina

Illinois—.™
Indiana—

4.

United

data

supply

programs.

in

■

r.

1942

to meet approved

scrap

final annual returns from the
operators.)

Alaska

7

153

in

shipped

5,695,200

carloadings and river ship¬
monthly tonnage reports from district

State-

3

11-

calendar

coal

{Comparable

Oct. 24,

1
2

18 X— XXX —X—X
—X——xXX—
X

in

51,527,900

weetv.

+

+
—

Oct.

separately but 'included

refer
from

and State sources

3

Oct.

Nov.

ed

(The current weekly estimates are based on
railroad
ments and are subject, to revision on
receipt of

+

152
157

—_

shown

terials available at the time need¬

"Improvement

t

coal,'and

-

Oct, 31
•Not

Oct.

—159"

17————.—————..
'
Oct. 24..
XX—X—:-X-—

mated

:

ADJUSTMENT

173

i 0;^rr:-rr::rr:;;

Oct.

indexes

8

+

1941—

3X—■.,—X-

©c t;

+

3

1,203,200

colliery fuel.
x ■" ■ x.vX

Colorado_____^'__il__--____-

'

1942—

•

Oct.

+ 19

+" 4
+

3

+ 21

23

5

—

——

'

+ 12

materials to supply and make the
quantity and type of needed ma¬

-

+ 27
+

5

+
—

1929

6,623,100
5,477,800
X- X:'--'''' X/''

XX"":+':

;

[In Thousands

—

——

Nov. 2,

1941

124,900

estimated weekly production
of coal,

...

Richmond

'j!:;:

transition

being set for
quarter, with full use from
July 1.
The plan is expected to
adjust requirements for critical

coke

Nov. 1,
'

in

use

promises better

and

interest.

second

1,063,000 50,555,000 48,157,000 60,935,000
1,010,000 48,073,000 45,749,000 56,548,000

157,700

dredge

—

Philadelphia

:!•'• 1942

1941

1,145,000

1,206,700

washery

Oct. 31,

of

verti¬

allowed

X

.

,

159,100

total—

•Includes

(per cent)

ago

States

;

and

among

the

much

Calendar Year to Date——

Nov. 1,

1,193,000

1,066,000

By-product coke—

105

.

anthracite

divided

quirements Plan,

;

,

are

Materials Plan for
allotment of scarce

distribution

Tons)

1942

1,110,000

Beehive coke—

Oct., 1941

130

Net

0ct- 24

1942

•Total, inc. colliery fuel
tCommercial production

130

(1923-25 AVERAGE—100)

Sept., 1942 Aug., 1942

(In

'i§0ct- 31>

of

J;

v

pennsylvania

Week Ended-—

Oc¬

and

x

-.«•

an¬

in

129%

——-One week ending ——
Four-weeks ending—— Year to
Oct. 31 Oct 24 Oct 17 Oct. 10 Oct. 31
Sept. 26 Aug. 29 Aug. 1 Oct. 31
+ 11
+14
+
9
+ 23
+ 14
9
+ : 8
+.. 4
+ 11
+ 17
+ 11
+ : 7
+ 19
—.
+ 13
2
—10
1
+
6
+
8
t +15
t + 9
+ 36
+ 16
•0
+
9
+
5
+ 13
+ 15
+ 16
+ 16
+ .24
+ 18
—12
+ 8
1
+ 10

r

,

Reserve

sales

123

Oct., 1942

Change from

•

store

with

adjustment

Federal Reserve

District—

Federal

adjusted

seasonally

/,

'

,

the

DEPARTMENT STORE SALES?

"

V

of

department

v;+V-,■

;

INDEX

:

that

i

of

are

producers

being

replacing

converted

,

production

sheets

mills.

,

estimated

delivery

hot-rolled

on

some

al¬

inquiries

better

no

quarter

and

up

semifinished
current

trolled

1937

into equivalent coal
assuming
6,000,000 B.t.u. per barrel of oil and
13,100 B.t.u. per pound of coal. Note that most oi
the supply of petroleum
products is not directly competitive with coal
(Minerals Year¬
book, Review of 1940, page 775). tRevised..

adjustments of

of

and

command

system
6,249
produced

well

are

soliciting business with high rat¬
ings.
Armed services are
takinglarge tonnages, a recent order for

of

barrels

products.

quotas

high-rated orders,

"Announcement

1941

10,871

the year, es¬
rounds and

cold-finished

limit

easier

in

heavier

mill

material.

Oct. 30,

1942

11,410

output-

•Total

the

the

1942

1941

and

locations,

six

11,620

1942

in

filled with

January 1 to Da„te•

until late

"Sheet

than

petroleum—

equivalent

-weekly

Note—Unfilled orders of the prior week plus orders
received, less production, do not
necessarily equal.the unfilled orders at the close.
Compensation for delinquent reports,
orders

flats

of coal, in net
tons
with
crude petroleum (000
omitted)

tOct. 24,

some

pecially

period.

same

made

additional

Emergency
being made available.

are

pected

Pennsyl¬
1,110,000

production

Oct. 31,

Total, incl. mine fuel—
Daily average
•

85

81

states

Bituminous and

86

79

united

Week Ended-

:

138,262

,

77

228,355
+

same period last year.

increased 1,400 tons
during the

ovens

estimated

86

V

hive

88

87

65

being

and

National

relief is felt by
warehouses and their
clients, full
effect of the directive
plan is not
yet apparent and not much is ex¬

88
:

222,636

224,926

-

"

—U—

75

'

213,890

10——

—

74
76

208,206

—

Sept. 26_

219,700

of

"While

The U. S. Bureau of Mines also
reported that the estimated pro¬
duction of byproduct coke in
the United States for the week ended
Oct. 31 showed an increase of
3,500 tons when compared with the
output for the week ended Oct. 24. The
quantity of coke from bee¬

91

•

213,443
208,769

122,735
'119,299

5

Sept. 19——

V

124,763

•

29—————„—„

Oct.

59

236,536

119,023

—

Sept. 12

Oct.

223,809

77,996

112,513
——

Aug. '22
Sept.

100,337

92,481

steels

1941.

Current Cumulati

94,257

•

25—

Aug.
Aug.

Percent of Activr

Remaining

1942—Week Ended—

July

v

Orders

is

progress

substitutions

analyses

tons, a decrease of 83,000 tons (7.0%) from the
preceding week. When
compared with the output in the
corresponding week of 1941, how¬
ever, there was an increase of 47,000
tons, or 4.4%. The calendar year
to date shows a
gain of 5.0% when compared with the same
period
of

PRODUCTION, MILL ACTIVITY

Tons
•

over^the

According to the U. S. Bureau of Mines, production of
vania anthracite for the week ended
Oct. 31 was estimated at

•

■

.

Orders

figure which indi¬
operated.
These

that they represent the total

so

■

'

a

time

in

The Bituminous Coal
Division, U. S. Department of the
Interior,
in its latest
report, states that the total production of soft coal in the
week ended Oct.
31, 1942, is estimated at 11,620,000 net tons, as com¬
pared with 11,410,000 tons in the
preceding week and 10,871,000 tons
in the
corresponding week of 194.1.
The production of soft coal to
date shows an increase of
14.5%
,

The members of this Association
represent 83% of the total in¬
dustry, and its program includes a statement each week from each
member of the orders and

the activity of the mill based
figures are advanced to equal 100%,
industry.

Gradual

■

paperboard industry.

cates

1723

ter
on

are able to promise no bet¬
delivery than second quarter
some

age

flats,

is

finishes.

felt

as

in

well

large

as

Most

short¬

rounds

and

in cold-finished.

9, unchanged from the

100.2%
one

one

pre¬

month ago and 96.6%

The operating rate

year ago.

for the week beginning Nov. 9 is

equivalent
steel
as

for

pares

to

1,703,800

tons

ingots and castings, the
one

with

month ago,
year ago.

week

ago,

1,714,100

and

of

same
com¬

tons

and 1,596,000 tons

one

one

Thursday, November 12, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1724

Private investment accounts for $24,297,- day the Series A sales have
jumped to $54,000,000 in October*
month's new financing, and is 52% lower than a

sponding month last year.

Unchanged

Wholesale Commodity Prices

000, or 96% of the

Week, Labor Bureau Reports

In October 31

898,000, is up 86% and is
nancing total.
>

agricultural commodities, principally livestock, there were

certain

during the last week of Oc¬
for nearly 900 series in pri¬
markets remained unchanged at the level of the preceding

funds, $8,966,responsible for "increased construction fi¬

but the huge volume of Federal

lower than last year,

mary

of the 1926 average. "
:■
The Bureau's announcement further said:
"Farm Products and Foods.
Average prices for farm prod¬
ucts rose 0.4% during the week to the highest point in over 14

week, 99.7%

mixed. Oats and
declined. Higher
slightly in

markets were down

primary

in

foods

for

"Prices

opening

cancellation of October

October with the

the last week of

evaporated and condensed milk, which were dropped
back to the prevailing market level, together with lower quota¬
tions for dressed poultry in the New York market and for potatoes.
Higher prices were reported for mutton; for flour, rice, and cornprices for

meal; for onions and oranges; and
"Cattle feed advanced nearly

than a year. Raw
jute advanced over 5% and fractionally higher prices were reported
for maple flooring, oak and spruce lumber, which have been under
ceiling prices; as well as for turpentine.
Prices for shellac de¬
been

clined."

;•

-

The Bureau makes

the following

notation:- v'

groups
Nov.
ago,

shows

of commodities for the

1, 1941 and the
and a year ago:

index

.

••

10-31

:

Commodity

commodities

All

1942

groups

*99.7

—-

-

products

Farm

products-.*—
products Z
*—
Fuel and lighting materials,*—'.
Metals and metal products-.—
Building materials
—
Chemicals and allied products,"

Hides

and leather

Textile

goods

Housefurnishing

—

10-17

10-24

Week Ended-

3,380,488

19

Sep

3,682,794

10

Oct

17

Oct

24

Oct

31

3,717,360
*

7

Nov

3,702,299

...

Nov

14

NOV

21

Nov

28

3,247,938

—I...

0

.

79.6

79.6
*103.9

*103.9

*103.9

102.2

0

0

1.7

110.2

110.2

110.2

110.5

107.3

0

—0.3

2.7
7.0

96.1

96.1

96.1

96.2

89.8

0

—0.1

104.1

104.1

104.1

104.1

100.0

0

0
+
+

88.4

85.5

+ 0.2

89.1

+ 0.2

89.7

0

articles—_

92.8

-*99.5

-*99.6

-*99.7—*99.6' -93.4

—0.1

'Manufactured - products—,.

*95.7

*95.6

4.1

0.1

+

3.5

0.3

+

15.3

—0.3

+

3.1

=0.1- + "6.5

—0.1

0

92.1

*95.7

*95.6

1,520,730

12.3

+ 11.7

r

1,525,410

0

+0.1

93.1

+

+

of

Board

The

of

Governors

that the

29

Oct.

on

Cleveland
Richmond

the

Loans

(Estimates

of

of

Banks,

September,

Volume of Loans Made

than in September 1942.
is 61 and 22% lower,

Private construction

the corresponding

month last year
the

Construction volumes for
ber 1942 are:

;

Oct., 1941
(five weeks)

r'
Total Construction +--Private Construction

Public Construction —
State and Municipal.
Federal
<

respectively, than in
and in the preceding month.
1941 month, last month, and Octo¬

V;

an

—

—

$406,332,000
94,760,000
311,572,000
111,214,000
200,358,000

Sept., 1942
(four weeks)

$712,709,000

<

38,223,000
674,486,000
28,106,000
646,380,000

The October volume brings 1942 construction to
increase of 59% over the $5,250,210,000 reported

month period in

1941.

Private work, $511,781,000,

Oct., 1942
(five weeks)
$691,979,000
37,041,000
-654,938,000
37,234,000
617,704,000

189

paper

and

direct

modernization-

and

instalment

Personal

—10

14.1

174

—

5

12.8

163

—

9

11.6

189

—1

8.4

—

5

35.0

—

6

81.9

—

7
6

5.0
15.6

284

cash—

999

Total

Boston

for the ten-

is 52% under the

period last year, but public construction, $7,812,804,000, is 87% higher
as'a result of the 136% climb in Federal construction.
October averages in the various classes of construction compared
with those for the month last year show gains in streets and roads

54
215

;

York

New

.

,

—

"

7

3.0

5
—10

—12

5.6
3.9
3.9

—

6

14.5

—

5

2.9

50

—
—

Atlanta

63
47
53

Chicago

136
37

Philadelphia

—

Cleveland

Richmond

St.

:

—

Louis

Minneapolis
Kansas

53
42

_

City

Francisco

San

,

39
210

Dallas

—39.4
—

6.4

+
—

—

8.5
4.7
4.4

—12.0

—

—
—

—

5
9

3.5
2.7

7
3

3.8
17.5

+

7.4

+

3.9

—

4.9

—11.1
—

+
—

—

3.1




Coolidge's Letters
Given To Nation
of the late

A numoer of letters

President JCalvirLx:oolidgeT-2whichhad

Oct. 29, to be sealed for
years.
The letters were from
the files of the late Edward T.
20

private Sec¬

Clark, Mr. Coolidge's

is

the

first

monthly

release

Shop, Washington, D. C. He
acquired them from a person to
whom they had been given by the
widow of Mr. Clark. Mr. Kohen
had sent the large file of corre¬
by

spondence for sale to the ParkeEast 57th St.,
which had issued an auction cata¬

Bernet Galleries, 30

indicating the confidential
material. %
"The letters date from 1923 to
1933, include a number by Presi¬

logue

nature of much of the
,

—11.2
7.5

—36.6

to the

V;
gift of
of the Hob-v

Charles Kohen, owner

6.4

Money' Raised By Treasury In Get.
Than By Any Govt. In Comparable Period

More 'New

announced on Nov. 2
in October than had
raised by any Government in any comparable period of
Morgenthau made known that sales of Tax Savings

the Treasury Morgenthau
Treasury had raised more money

that

the

ever

been

time.

Mr.

Notes

in

of

October

were

$921,352,000,

bringing the total sold since

present fiscal year on July 1 to $2,656,700,000.
Sales of War Savings Bonds in4>
without the volunteer
October amounted to $814,353,000, achieved
bringing the total sold since July help we have had from the Vic¬
1 to $3,287,798,000. j He added that tory Fund -Committees, the War
together with borrowings earlier Savings Staff and their hundreds
in the month of $4,100,000,000 in of thousands of willing helpers in
the

start

of

"Times"

In the New York
of Oct. 30 it was stated:
"The
letters
are
the

3.4

—

of Con¬

given to the Library

and other promi¬
and deal with gov¬
political
affairs..
When the attention of the auction

dent

Coolidge

nent persons,

ernment

and

galleries

and

Kohen

Mr.

called to the possible ill

Secretary

auction,

for

scheduled

been

were

1.0

the

public buildings, 130%; waterworks, 112%;. sewerage, 102%,
and unclassified construction, 155%.
Losses are reported in indus¬
trial buildings, 81%; commercial building and large-scale private
2% bonds and l*/2% notes, $500,- all parts of the country," said Sec¬
housing, 28%; bridges, 59%, and earthwork and drainage, 45%.
in
Treasury
bills and retary Morgenthau, who issued the
Comparison of the current averages with those for September 000,000
month's figures to his press con¬
1942 reveals increases In industrial buildings, 43%; and sewerage, $500,000,000 in Certificates of In¬
ference on Nov, 2.
Mr. Morgen¬
debtedness,
the
October
financing
1%, Decreases are in streets and roads, 31%; public buildings, 29%;
thau went on to say:
commercial building and large-scale private housing, 1%; bridges, operations raised a total of $6,"I am especially glad that the
9%; waterworks, 32%; earthwork and drainage, 13%; and unclassi¬ 836,000,000, which Secretary Mor¬
genthau said constituted a sum sales of Tax Savings Notes are
fied construction, 10%.
unmatched in the financial history going so well. Only a few months
New Capital
of the country. "I feel that this ago we were selling less than $5,New capital for construction purposes for October totals $25,297,result
could
not
have
-been 000,000 of the Series A notes; to¬
000, a decline of 89% from the $228,329,000 reported for the correof 23%;

$921,352,300

0.7

public on consumer instalment
loans of commercial banks.
For a description of the sources and methods underlying
the estimates in this report see the October Federal Reserve "Bulletin," page 992-994.
NOTE—This

"

$8,324,585,000,

125,000

....

retary.

retail

Purchased

Repair

.

r/0 Change from
Aug., 1942

retail

Other

totals $691,979,000 for

Sep., 1942

Aug. 31, '42

October and averages

but is 6% higher

39,911,200

55,000

$54,625,000 $866,727,200

City,
......

Francisco

gress on

■'

Change from

loans

Direct

1942

Dollars)

Amount Outstanding

Purchased

$138,396,000 for each of the five weeks of the
month as reported by "Engineering News-Record" on Nov. 5.
The
October average is 70% higher than that reported for the correspond?
ing five weeks of October 1941, but is 22%? lower than the average
for the four weeks of September 1942.
The report added:
On the weekly average basis, public work more than doubled
its last year's mark, but is 22% below last month.
Federal construc¬
tion tops a year ago by 208%, while declining 24% from a month
ago.
State and municipal volume decreases 67% from October 1941,

5.403,825

18,943,075
231,232,750.
28.577,225
10,577,375
17,137.625
12,931.950
45,315.025
180.000

Reserve System an¬
instalment loans outstand¬

Commercial

Millions

61,008,675
121,453,709
43,605,850

Federal

consumer

in

kga

91,564,375

1,939,725
1,379,375
2,343,625
2,310.050

Atlanta

Chicago
Louis....,

repaid.
Automotive loans have shown the largest relative decline_and personal, instalment cash_loans the smallest
The follow¬
ing statistics are made available by the Reserve Bank: r
Instalment

^ni

-

39,365,000
16,818,000
220,292.400
26,637,500
9,198,000
14,794,000
10.621.900

...

St.

$999,000,000 at the end of the month.
The decline since Decem¬
ber, 1941, was 37%, reflecting the fact that for every dollar of
new
consumer borrowing, more than a dollar and a half is being

Consumer

;

$38,824,675
nc

$35,008,000
280,319,500
58,344,500
115,202.200

—-

.

.

_

6,161,500
4,240,850
2,125,075
10,040,350

...

of

2.8

70%

...

Total

Series C

Series A

$3,816,675
11,244,875
2,644,175
Philadelphia,.
•

Total

6.1

Federal Work Triples

■'+

:

York....

Treasury

Automotive

Engineering Construction Gains
Year Ago

self:
Boston

New

Kansas

Type of Loan—

engineering construction volume

1,533,028

Dallas

Sep. 30, '42

Heavy

1,718,002

2,858,054

+

San

♦Preliminary.

October

1,510,337

1,507,503

1,528,145

3,339,364

+

other
than
products and foods,—

1,475,268

2,931,877

2,817,465
2,837,730
2,866,827
2,882,137

Minneapolis

+ 21.9

♦103.9

commodities

1,531,584

2,839,421

1,506,219

10.3

3,347,893

__

2,889,937

2,792,067

+ 10.6

+ 12.2

i'

3,368,690

______

+ 13.7

+

ing, representing purchased contracts and direct loans at all com¬
mercial banks, decreased by 6% in September to an estimated total

0

*97.8

3

Oct

1,674,588

1,806,259
1,792,131
1,777,854
1,819,276
1,806,403
1,798,633
1,824,160
1,815,749
1,798,164
1,793,584
1,818,169

nounced

+ 0.1

.*97.8

Oct

+ 14.8

0.4

90.3
79.9

*97.7

26

3.756.922
3,720,254

7.0

114.1

96.6

79.7

*97.7

3,583,408
i

3.8

118.4

96.5

102.4

farm

12

Sep

1941
0 + 8.8

79.7

92.5

All

Sep

+

118.4

96.5

than

1,490,863
1,499,459

3,752,571

3,639,961
3.672.921

5

+

118.4

96.6

88.4

other

2,769,346
2,816,358

3,774,891

Aug 29

Sep

0

118.4

102.0

products

1,476,442

+ 12,9

3,673,717

0

88.2

92.5

commodities

2,773,177

3,238,160
3,230,750
3,261,149
3,132,954)
3,222,346] /
3.273.375
3.273.376
3,330,582
3,355,440
3,313,596.
3,340,768

s.

Aug 22

—0.1 V-

103.0

88.3

farm

1,464,700
1,423,977

1,761,594

2.591,957

3,654,795

Aug 15

1,415,122

16.8

108.7

103.1

102.5

All

1,750,056

+ 12.4

2,762,240
2.743,284

1,426,986

+ 12.5

+

107.9

103.1

92.5

Semimanufactured

1,436,440

2,736,224

+ 11.8

3,233,242

0

108.7

.

2,714,193

+ 11.6

3,263,082

3,637,070

—0.1

109.1

103.0

___
.

1,431,910

+ 13.7

3,649,146

8

+ 0.4

88.5

commodities

materials

2,745,697

1,724,728
1,729,667
1,'733,110

1

Aug

+ 0.4

89.5

102.7

Miscellaneous
Raw

1942

1942
1942 1941
1942
'*99.7 • *99.6 *99.7 91.6 - .0

1942

1929

1932

1940

1941

over

stu¬

a

job to find the money
for this costliest of all wars, but
the response of the people them¬
selves is making that job easier
than it otherwise would be."
The following table shows the
sales of Tax Savings Notes in Oc¬
tober in the 12 Federal Reserve
Districts and at the Treasury it¬

11-1

10-3

10-24

1941

1942

have

"We at the Treasury

pendous

1942

Aug

Percentage changes to
Oct. 31, 1942 from—•

11-1

10-3

E

Series

of

(Thousands of Kilowatt-Hours)

RECENT WEEKS

-V

;

^

'

\

couraging

sales is to steady

% Change

past 3 weeks, for Oct.' 3, 1942 and
week ago, a month

.(1926=100)

been

most en¬

To me, the

winning of the war.
DATA FOR

numbers for the principal

"•v"

has

quota

the

that

exceeded.

...

percentage changes from a
■A

was

month

•'

A'\ *•;

/ '-v

complete reports.

table

tober

....

■'?

by price controls,
of Labor Statistics
will
attempt promptly to report changing prices.
The indexes
marked (*), however, must be considered as preliminary and sub¬
ject to such adjustment and revision as required by later and more
following

arrangements to pay
current income.
Savings Bonds, Oc¬
»the second successive

start making

aspect of the' October
growth in sales
bonds to heights we
hardly dared to hope for a year
power industry of the United States for the week ended Oct. 31, 1942,
ago. ■ This, of course, is in large
was
3,774,891,000 kwh., which compares with 3,380,488,000 kwh. in
the corresponding week last year, an increase of 11.7%.
The output part the result of the Payroll Sav¬
for the week ended Oct. 24, 1942, was 12.3% in excess of the similar ings Plan, under which more than,
20,000,000 workers are now setting
period in 1941.
v /'y•%'.+
.
aside more than 8% of their earn¬
PERCENTAGE INCREASE OVER PREVIOUS YEAR
|
ings every pay day.
Week Ended
"The sales of Tax Notes, War
Oct. 10
Oct. 17
Oct.24
Oct. 31
Major Geographical Divisions1,0
*
5.5
4.1
Bonds and other Government se^
0.8
New
England
2.1
6.2
5.6
4.5
Middle Atlantic
curities bought outside the bank¬
6.2
8.2
7.9
6.8
Central Industrial
ing system make me feel that the
10.8
10.9
10.6
8.9
West
Central
15.6
17.6
American people are wide awake
17.6
19.9
Southern
States
8.4
8.9
13.1
8.8
to the needs of their Government,
Rocky Mountain.—
30.8
28.1
30.7
31.2
Pacific Coast
and are ready to dig deep into
10.3
their earnings to help finance the
12.3
11.7
Total United States
■'.VV-K 12.2
Institute, in its current weekly report, esti¬
mated that the production of electricity by the electric light and
The Edison Electric

During the period of rapid changes caused
materials allocation, and rationing, the Bureau

The

a

"

commodities have

comparatively steady.
Most of these
under stationary price ceilings for more

and

.

;

Industrial commodity markets con¬

Commodities.

"Industrial

for cottonseed oil.

3% during the week.

tinued

Electric

Output For Week Ended Oct. 31, I §42
Shows 11.7% Gain Over Same Week Last Year

advanced

1%', \ Price changes in the grain market >were
barley advanced while wheat, corri, and rye
prices were also reported for hay and hops.

tax payments next year,
growing determination to

heavy

"As for War

Steers were up nearly 2%; sheep, about 1%; arid hogs
slightly.
Live poultry -in the Chicago market dropped

years.

grow¬

a

these taxes out of

changes in commodity markets
tober.
The Bureau's index of prices
few

reflects

ing consciousness on the part of
the
American
people of their

is

Private investment is 47%

1941.

57% above the ten-month period in

Statistics, U. S. Department of Labor, an¬
Nov. 5 that except for advances in average prices for

on

financing for" the year to date, $9,555,998,000,

New construction

The Bureau of Labor

nounced

I think that this

year ago.

was

effects of
matev

the sale of this confidential
rial at this

time, the letters were
withdrawn
from
sale
and
the
owner

determined to give them to

'

the nation.
"Until

•

morning

yesterday

the

of
Then
Swann,

letters remained in the keeping
the Parke-Bernet Galleries.
Mr.

and

Kohen

Arthur

head of the rare book and manu¬

auction

script department of the

house, took them in four cartons

of the Day

to

the packing rooms

&

Meyer, Murray & Young Cor¬

Mr.

Second

1166

poration,
There,

under

Kohen

Mr.

and

cartons were sealed
in

a

Avenue.

the supervision of
Swann,

the

and enclosed

strong wooden box. This was

lined with waterproof paper,
Kohen enclosed

an

Mr.

autograph note

confirming the gift, and the case
was

sealed."

-

v

,

<

I

>'

-

3

V

,

r

i

1

-

Volume 156

"Number 4124

THE COMMERCIAL & FINANCIAL CHRONICLE

Trading On New York Exchanges

1

Market Value Of Stocks On New York

'

/t?

.

,

\

The Securities and Exchange Commission made
public on Nov, 6
figures showing the daily volume of total round-lot stock sales on
the New York Stock Exchange and the New York Curb
Exchange
and the volume of round-lot stock transactions for the account of all
members of these exchanges in the week ended Oct.
24, 1942, con¬
tinuing a series of current figures being published by the Commis¬

sion.
Short sales are shown separately from other sales
figures, the Commission explained.

in these

the Exchange of

on

3,555,000 shares.

This

trading during the previous week ended Oct. 17
of 973,145 shares, or 15.94% of total
trading of 3,051,970 shares.
On
New

York

Curb

Exchange, member trading during the week
ended Oct. 24 amounted to 202,250
shares, or 17.46% of the total vol¬
ume of that
Exchange of 579,270 shares; during the preceding week
trading for the account of Curb members of 158,495 shares was 16.36%
of total

trading of 484,275 shares.

Exchange

and

the

New

reports are classified

based upon weekly

are

York

Exchange

by

their

respective

In

y.

—

of

change,

663
90

the

31,

close

of

3.

Reports showing other transactions initiated off

4.

Reports showing

_

business

transactions..—__

Note—On the New York Curb

the

industrial

their

total

market

following table listed

stocks

in

which

As

with

groups

the

Oct.

;.

____

I,.

;

317,184,964
3,082,741,525

25.73

601,827,771

13.80

17.41

290,876,737
2,920,821,327
558,388,966

427,683,292

19,62

408,648,808

18.75

23.57

276,830,323

509

29.69

533

587,149,685

44.81

562,648,593

42.94

14.40

688,058,636

13.55

25.19

2,287,234,584
36,922,782

24.49

than

one

office

.

machinery

Financial

,

__

,

730,832,882
2,352,756,167

...

.____

Garment____!___.___._A_.
realty___.___._

'___

36,369,310

Land &

Leather..

&

(Shares)

OCT.

24,

v'.. yyiv%■ :y'';y.

fPer Cent

Railroad

;

_______

Ship building & operating——....
Shipping services:
Steel, iron & coke

Total

sales__--______-_______-_-.__.__—.—_■
Transactions " for

the

Account

Tobacco

Foreign

All
;

.

2.

—

v

Other transactions initiated
Short

■

Market Value

————-——tOther

sales..—

tOther

5.59

22,57

volved

or

15.73

fiable

reductions

25.03

1,268,601,462
331,910,013
3,849,110,253
2,837,057,396
1,821,447,050

21.47

349,468,297

2.66

97,263

v

Total purchases
Short .sales

tOther

609,610

20.06

360,134,663

21.39

92,545,982
11,994,309

19.42

6.67

1,986,388,036

39.66

37.45

355,621,039

25.27

1,875,568,835
332,504,372
975,195,461

1,014,013,227

37.86

1,639,527,912

17.72

715,011,719

7.46

10.71
15.54

786,137,548

19.42

108,167,136

18.42

37,727,599,526

25.65

34.00

6.48

23.71

6.49

64.47
9.91

480,227,188

14.18

727,645,302

17.97

103,628,742

17:65

35,604,809,453

24.20

31

Feb.

28

l

Mar. 31

Apr.

30

May

31

579,543

Market Value

Price

40j084T419;434
39,057,023,174

28;02

31

_—

28.56

Nov.

29

29.38

Dec.

31

28.72

41,890,646,959

28.80

40,279,504,457
39,398,228,749
39,696,269,155
37,710,958,708
37,815,306,034
39,607,836,569

27.68

...

;

26.66

37,882,316,239
35,785,946,533

24.46

25.87

1942—

Jan.

31

Feb.

28

Mar.

31

Apr. 30

27.24

May' 29___

32.913.725.225

22.40

25.78

June 30—

33,419,047,743

22.73

25.84

July 31

34,443,805,860
34,871,607,323

23.41?

35,604,809,453

24.20

37,727,599,526

25.65

27.07

Aug. 31

_i

31

41,654.256,215

28.46

Sept. 30

—

Aug. 30

41,472,032,904

28.32

Oct.

31—______

in

such

price

23.70

16.72

decreases
order.' "

On

the

occasion

of

the

second

anniversary of Greece's resistance
to

the

Axis, President Roosevelt
Oct.

on

setethe
of

us

ers

24.70

21.41

speedy de¬
propriety of

the

Greek Resistance Lauded

28

that

Greece

has

example that "every

one

must follow until the
of freedom

despoileverywhere have
brought to their just doom."

The President made

24.02
22.36

of

any wage increases or
in accordance with this

been
36,228,397,999
35,234,173,432
32,844,183,750
31,449,206,904

27.08

or service in¬
to resist otherwise
justi¬

termination

said

1941-

Oct.

commodity

the Board power to 'issue
such rules and
regulations as may
be necessary for the

16.25

Average

Sept, 30-

basis

a

ceilings

gives

72,697,448

.

price

Executive Order of Oct.
3, which

36.41

1,503,388,175
622,227,989
2,695,813,940

68.10,

78,526,921

526,403,555

increase

It is also announced:
1
"The Board took this action un¬
der
the
authority vested in it
under Title III, Section 2 of the

24.82

35.69

to

the

ceilings."

24.91

12,351,777

28.00

41,491,698,705
42,673,890,518
41,848,246,961

31

Jan.

July

519,623

Total sales

30

June 30

59,920

sales

21.93
26.34

either

14.94

101,937,172.

1941—

8,750
88.513

Total sales
Total—

31j._t.__

Nov.

ar^d shall not furnish

1,333,882,119

—27.51—

40,706,241,811

—

Oct.
Dec.

92,210
;
—

costs

of

$

39.99L865.99T_

Sept. 30

183,410

sales

22.05

17.87

Price

<j»

31

Aug. 31

Other transactions initiated off the floor—
Total purchases
Short sales

4.

July

175,710

_______—___

Total sales
3.

1940

214,330

—

made under this

not result in
any
substantial increase of the level of

1,224,163,450

Average

the floor-

on

sales.—i——

should

a

8.47

298,870

—.—

Total purchases.—.—
\

__

of wages

order

19.03

—

:

ments

1,302,771,130

—

Listed Stocks—

52.49

two -year compilation of the total market value
and the average price of stocks listed on the
Exchange:

255,400

—_____—

.Total sales

;• v;; ,v

..

companies

to the announcement

general order which is the
fifth issued to
date, states that the
Board "further finds that
adjust¬

3.21

2,847,519,295

_______

We give below

43,470

sales.

un¬

trainee system."

According

21.43

•

303,070

sales..

tOther

upon

this

15,583,870

abroad

Miscellaneous businesses

■

increases
ranges.

established

productivity

180,172,475

Miscellaneous..:

they are registered—
Short

(operating)
& electric (holding)

(J. S. companies oper.

Members, Except for the Odd-Lot Accounts of
Odd-Lot Dealers and Specialists:
1. Transactions of specialists in stocks in which
Total purchases

electric

Communications

3,555,000

of

Increased

3.36

'

Gas &
Gas

21.73

4,209,129,575
3,000,614,313
1,824,225.032
377,515,713

.

merchandising

Utilities:

73,460

_

an

plan of wage increases based
length of service.

21.75

Textiles

•Total for Week

__—.

Operation of

16,305,768

publishing.^..

Petroleum—

...

1942

merit

established rate

182,860,466

;

Machinery & metals.
Mining (excluding iron).
Paper

Individual

"c.

or

16.15

1,192,117,420

the num¬

"b.

24.38

5,000,642,902

Stock Exchange and Round-Lot

Members*

15.05

31.65

Food

classifications.

der piece-work or
incentive plans.
"e. Operation of an

Price

55.20

&

,

New York

Market Value

Price

24.98

Farm

as a result of:
"a. Individual
promotions or re¬

"d.

Sept. 30, 1942
Average

293,457,383

3,481,540

Round-Lot

average

wage

established

apprentice

Amusement...

Retail

Account of

ENDED

and

established
to

and must be made

leading

1,270,912,926

■.

..

the

on

WEEK
y

value

31, 1942

Market Value

....

V

market

by

5,258,305,871

a

Stock Transactions for

Total Round-Lot Sales:

classified

an

or

rate schedules
covering the
work assignments of
employees"

wage

within

are

Electrical equipment

Exchange, odd-lot transactions are handled solely by
they are registered and the round-lot transactions

-

Total Round-Lot Stock Sales

B.

stocks

aggregate

Rubber

Short sales

value."

of

agreement

Ex¬

equipment-.
Chemical___^-__.______j.___.u-__:

The number of reports in the various classifications
may total more than
of reports received because a
single report may carry entries in more
,

Stock

80

^

result; the round-lot transactions of specialists in
stocks in which tjhey are registered are not directly
comparable on the two exchanges.

classification.

York

202

specialists resulting from such odd-lot transactions are not
segregated from the
specialists', other round-lot trades.
On the New York Stock Exchange, on the other
all but a fraction of the odd-lot transactions are effected by dealers engaged

solely in the odd-lot business.

New

Group

Business

hand,

;

31,

price for each:

Aviation

of

A.

Oct.

28
;

—________

no

terms

figure includes all types of member borrowings, these ratios will
ordinarily exceed the precise relationship between borrowings on
shares and

general

Oct. 14.

on

cident

total net borrowings amounted to
$357,343,929.
these member borrowings to the market value of all
stocks on that date
was,
therefore, 0.95%. As the above

listed

a

unanimously adopted by the

These adjustments must be "in¬
to the
application of the

total market value of

a

1941.

Building....
179

Board

of

Automobile..

on

'

_

Exchange

174

order

member

ratio

listed

N. Y. Curb

962

limitations set forth in

issuing the figures for Oct. 31, the Exchange said:

"As
The

Oct.

on

These

members.

Exchange

ber

issues, aggregating 1,465,181,804, with

$39,057,023,174,

Average

Reports showing transactions as specialists
2. Reports showing other transactions initiated

specialists in the

stock

adjustments

wage

be made without
approval of
the National War Labor
Board if
they fall within certain prescribed
can

total

follows:

as

Individual

Exchange announced on Nov. 6 that as
31, there were 1,243 stock issues ag¬
shares listed on the New York Stock Ex¬

reports filed with the New York Stock

1.

the floor

Exchange Higher On Oct. 31

Stock

value of $37,727,599,526.
This com¬
with 1,243 stock issues,
aggregating 1,471,467,074 shares, with
market value of $35,604,809,453 on
Sept. 30 and with 1,236

pares

•

Wage Adjustments Given

business Oct.

*

Curb

Total number of reports received

the floor

York

of

Conditions For Individual

gregating 1,470,960,448
change, with a total market

In

N. Y. Stock

1

New

the close

'■ A-'-

The Commission made available the
following data for the week
ended Oct. 24:
The data published

of.

com¬

pares with member

the

Stock
The

a

\

Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended Oct. 24 (in roundlot transactions) totaled 1,189,153
shares, which amount was 16.72%
of total transactions

1725

ment in

this state¬
letter to Cimon P. Dia-

a

mantopoulos, the Greek Ambassa¬
dor.

.

yy; y;

■ jy.
v y'
V "
message, read by Sumner

The

Welles, Under-Seecretary of State,
who was the chief
speaker at a
dinner in Washington commemo¬

rating the anniversary, follows:
Total

Round-Lot

Stock

Sales

on

the

New

York

Curb

Transactions for Account of Members*

WEEK
A.

ENDED

OCT.

24,

Total Round-Lot Sales:
Short

Stock

y

Engineering construction

Transactions

for

the

Account

of

Members:
1.

purchases

Short

tOther

5,570

sales

for the

The

construction

accounts

higher than

for

a year

91%

of the

58,450

current

week's

total

The increased Federal volume

ago.

boosts public construction 292%
above last year.
ever, is 25% below the 1941 week.

49,650

sales

the

.

,

Private work, how¬

early morning of Oct.
the Fascist aggressors

1942,

handed

and is 428%

they are registered—

28,

Election Day holiday totals

Federal

Transactions of specialists in stocks in which
Total

On

volume for the short week due to the

$137,412,000, more than triple the volume
corresponding 1941 week and above the $103,282,000 reported
for the preceding week
by "Engineering News-Record" on Nov. 5.

579,270

House,

Washington, Oct. 28, 1942.
My Dear Mr. Ambassador:

Triples 1941-Week Total

tPer Cent

571,705

sales—

The White

Engineering Construction Volume

1942

7,565

tOther sales

B. Round-Lot

and

(Shares)

Total for Week

sales

Total

Exchange

an

ultimatum

challenge

without
This

Greece.
back

moment's

hesitation.

what might

have been

a

was

to

hurled

was

expected

from

courageous

a

gallant

people

their homeland.

and

devoted

You

to

commemo¬

rate tonight the second anniver¬
brings 1942 engineering construction to $8,sary of the beginning of the total
over the $5,294,419,000 reported for
resistance of the Greek people to
Private work, $520,285,000, is 52%
lower than in the 1941
totalitarian warfare.
period, but public construction, $7,941,712,000,
is 88% higher as a result of the
More significant, even, than the
138% gain in Federal work.
initial reply to the challenge is
Construction volumes for the 1941
week, last week, and the cur¬

The week's volume

Total sales
2.

64,020

Other transactions initiated

on

Total purchases
Short

15,015

sales

JOther

200

sales

13,185

Total sales
3.

13,385

Other transactions initiated off the floor—

y

_

■.

2.45

rent week

sales—

Total Construction
28,225

5.20

tOther

sales..

98,735

Customers' short sales...

Total

Total

0

—

—

30,825

30,825
—

"members"

17.46

Account of Special-

purchases
sales

•The term

firms and

other sales

18,278

includes all regular and associate Exchange
members, their

their partners, including special partners.

transactions as per cent of twice total round-lot volume.
In
calculating these, percentages, the total members' transactions is compared with twice
the total round-lot volume on the Exchange for the reason that the total of members'
transactions includes both purchases and sales, while the Exchange volume includes
tShares in members'

only sales.

iRound-lot short sales

which are exempted from restriction by
sales."

rules are included with "other

JSales marked

"short exemnt" are included with "other sales."




Municipal--

Federal

105,630

——

C. Odd-Lot Transactions for the

§ Customers'

State and

6,895

Total sales..

Private Construction
Public Construction

96,620

sales—

Oct. 29, 1942

(four days)

27,100

purchases.

Short

the

are:

Nov. 6, 1941

Total—
Total

increase of 60%
the 45-week period a
year ago.
an

1,125

Total sales..
4.

-

:'">;'y.y

461,997,000,

31,955

sales

tOther

V

yy

yy

;

Total purchases

Short

9.81

the floor-

i

&

23,658,000

7,487,000
95,795,000
6,045,000
89,750,000

that

Greece

fight, with

at its command.
mainland

has

con¬

every means

When the Greek

was

overrun,
the re¬
$137,412,000
sistance was carried on from the
8,504,000
islands. When the islands fell, re¬
128,908,000
sistance continued from
Africa,
3,868,000
from the seas, from anywhere the
125,040,000

aggressor could be met.
gains over last week are in
To those who prefer to compro¬
.large-scale private housing, and public
buildings. Gains over the holiday-shortened 1941 week are in water¬ mise, to follow a course of ex¬
works, public buildings, and unclassified construction. Subtotals for pediency, or to appease, or to
count the cost, I say that Greece
the week in each class of
construction are: waterworks,
$1,458,000; has set the example which every
sewerage, $1,042,000; bridges,
$204,000; industrial buildings, $2,290,- one of us must follow until the
000; commercial building and large-scale
private housing, $5,882,000; despoilers of freedom everywhere
public buildings,
$108,935,000; earthwork and drainage, $649,000; have been brought to their just

streets and
roads,

$3,809,000; and

New capital for

262,000.

Commission
,

(five days)
$103,282,000

fact

tinued to

In the classified
construction groups,
commercial building and

This

totals

$1,-

financing, entirely State and municipal bond sales,
$129,704,000 reported for the 1941 week.

New construction
is 54%

unclassified construction, $13,143,000.

construction purposes for the week

new

compares with
the

$44,209,000
11,275,000
32,934,000
9,276,000

Nov. 5,1942
(four days)

financing for the year to date, $9,557,260,000,
higher than the $6,218,910,000 for the 45-week
period in 1941.

doom.

Very sincerely yours,

FRANKLIN D. ROOSEVELT.
His

Excellency,
f P. Diamantopoulos, Am¬

Cimon

bassador of

Greece,
Washington, D. C.

The American

recommended by the Office of Petroleum

Oklahoma

From

Ended

Oct. 31

Previous

Oct. 31

1942

Week

417,000

?368,050

294,000

?297,700

ables

Kansas

294,000

„

Nebraska

West

3,500

————

Central

East

Texas

13,100

88,600
140,000

136,950

+

4,000

209,750

285,600

<—

6,800

92,150
362,000

85,850

369,700

1,407,600 tl,455,261

...

167,700

+

1,300

165,300

220,000

321,000

+

2,000

313,750

291,750

1,393,400

+

13,600

1,371,550

1,469,950

98,150

+

300

97,800

80,750

231,000

+

1,000

229,500

261,400

1,300

327,300

342,150

450

73,450

72,400

Louisiana

Louisiana

—

337,200

349,200

329,150

79,500

73,461

73,350

Mississippi:
Illinois

50,000

t69,200

—

263,600
115,900

—

and Indiana)

107,400
65,700
90,800

97,950
60,200
89,750

24,400
7,000
101,100

101,100

21,850
7,000
99,500

3,284,200
782,000

§782,000

3,1,90,050
711,100

r

-

..

—

—_

Colorado

_

-

..

—

of Calif,

Total East

California

-

of

tember 1942

may

tOklahoma,

—

7,000

+
—

99,100

20,000
5,750
116,450

3,165,150
729,250

3,445,100
626,100

50

—

99,450
57,950
79,700

95,950
62,500
90,450
21,800
6,950

23,200

The data

obtained by calculating

were

production indicate, however,

that

7

Oct.

a.m.

the net basic

is

^Recommendation of Conservation

Committee of California Oil

Producers.

STILLS; PRODUCTION OF GASOLINE; STOCKS
FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL

CRUDE

RUNS

TO

(Figures in Thousands of
""

By all

—therefore on a Bureau

of Mines basis-——

Daily Refining
Capacity

Runs to

Poten¬

tial

Crude

% Re-

Daily

Rate porting Average

District—

Stills

at Re-

Stocks

fineries

Finished
and Un-

Includ.

% Op- Natural finished

erated Blended Gasoline

of Re-

Oil and

sidual

Distillate

Fuel
Oil

Fuels

Gulf, Louisi¬
ana
Gulf,
North
Louisiana - Arkansas
66.8

4,786

37,797

25,953

commercial

159

90.3

510

84.9

764

95.0

2,524 '

Mo._A

416

80.1

347

83,4

48.0

103

70.1

344

1,643

424

570

147

817

89.0

727

89.0

1,852

17,047

12,947

54,468

4,800

85.9

3,731

77.7

11,153

?79,159

48,330

79,560

4,800

85.6

3,776

78.7

Tot.

U.

——

-—'

B.

S.

of

M.

Oct. 31, 1942
Tot. U. S. B. of M.
basis, Oct. 24, 1942
U. S.
Bur. of Mines
basis Nov.
1, 1941
<

basis,

♦At the

bbls.

2,685

777

6,325

2.940

Used

passenger

1,904

1,373

Used

commercial

11,486

79,545

47,567

79,073

13,674

82,303

55,551

95,565

of Petroleum Coordinator.

$At refiners, at bulk

tFinished 70,070,000 bbls.;

wholesale

Total

New

of

4,087

request of the Office

unfinished 9,089,000

1,137

Sep. 30,»
1942?

outstand'g
balances?
~
4 + '

(passenger

"Data

based

their

are

and

retail

4,593

9

—....A

...

automotive.—

Used cars

those

total

cars

(passenger

cars

Number
47,924

Dollar

% of

.

Volume
' $20,329,802?

100

238

1

270,751

86
4

15,436,480
839,933
$8,313,390?

—

—
—

DIVERSIFIED

Furniture

of

Paper




Lumber

15% above production; new

were

orders 3% below

production.;,Com-

Residential

with

pared

;

repair and

building

modernization

—

.

* total

retail—other

Total

wholesale-—other

Industrial, commercial,

—

and farm equipment

'

not

diversified

available.

the
4%

of

weeks

shipments were 2% above
the shipments,
and new orders
7% above the orders of the 1941
1941;

For the 43 weeks of 1942,
was 19% above pro¬

period.
new

business

duction, and shipments were
above production.

13%

Supply and Demand Comparisons

orders to

The ratio of unfilled

stocks was 72% on Oct. 31,

gross

stocks

were

30%

Softwoods

less.

and

the

for

\

Hardwoods

week

current

Oct.

31, 1942, for the cor¬
responding week a year, ago, and
for the previous week, follows in

5

Softwoods and Hardwoods

2
4

1942

3
50

$3,405,950?
481,322

17

344,279

81
11

Mills

—„—

Shipments
Orders

_

_

—

8

$4,231,551
100
♦Data are based on reports from sales finance companies providing a breakdown
of their retail financing of other consumers' gbods.
tThis amount is less than that
renorted in first table due to the exclusion of some data for which breakdowns were
Total

for
was

,

1942

of

corresponding

Production

goods
than automotive

consumers'

Total

production

weeks

43

below

thousand board feet:

*

$205,053
' 65,989.
161,734
131,698.
2,135,702
705,774

retail

first

ended

1942
% of

'
.J
instruments

Year-to-date Comparisons

Reported

Record

FINANCING *

Acquired During September,

goods:

...

pianos & other musical
Refrigerators (gas and electric)
Other household appliances..

de¬

sales."

'

Dollar Volume

Radios,

Miscellaneous

comparisons show that the number of cars

100

not available.

were

panies decreased 20% in

nancing, month ago

1
76
4

financing. tThese amounts are less than
exclusion of some data for which breakdowns

Class of Paper

financed by sales finance com¬

100

automotive

wholesale

reported in above table due to the

Retail—other consumers'

September 1942, compared with August of
this year, according to an announcement released on Oct. 30 by J. C.
Capt, Director of the Census. The dollar volume of paper acquired
in new passenger car financing, however, decreased only 18%.
In
used passenger car financing, the number of cars decreased 22%, the
dollar volume of paper acquired, 21%.
In new commercial car fi¬

long position which Is less than

a

round lot are reported with "other

1942, compared with 33% a year
5,565,494
-67
ago.
Unfilled orders were 56%
2,747,896- —33
greater than a year ago; gross
companies providing a breakdown

—...

—

reports from sales finance

total

19

3,782,638

41,291
1,802

;

and commercial)....
and commercial)....

on

AA

■

Paper acquired
.

...

The number of new passenger cars

re¬

production during the
31, 1942, was 4%
previous week, ship¬
ments were 7% greater, new* busi¬
ness 16% loss,-according to reports^
to the National Lumber Manufac¬

(column 2) by outstanding balances

—.A-"-'.........

cars

cars.

Volume

Diversified
Financing For Month Of September

are

Ended Oct 31, 1942

..,A

—

...

terminals, in transit and in pipe lines.

Automobile Financing And

78,410

exempt"

"short

'

'

;

Shares———.—.

of

marked

liquidate
a

companies able to report both their

Number of cars
" !

———.

—

cars

13,752

6,235

103,500

-

by

..

.Ay
' :

'

.

automotive

retail

New

84.8

804

.—+*AA—u.

103,340

•,

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

AUTOMOTIVE FINANCING*
AyAA:A'. +A
and Volume of Paper Acquired During September, 1942

Ay Aa

470

176

160

A

—

Dealers—'.

♦Sales

of paper

.

A'-A;4 A AAA''.1: "•A AA; A'AvA AA^aI-

V

:■

Financed

Cars

A

a-' a'

passenger

2,440

sales

Number

acquired to

balances

reporting

outstanding
companies
balancest

dividing paper acquired

'A/ /A.-

New

Inland Texas—

.

——a.-;

——

:

.

19,739

Appalachian ——
Ind., Ill,, Ky—i——
Mountain

;;v

Number of
.

Total

1,631

sales

Total

Ratio

.....

Outstanding

l/o of

88.2

sales

Round-lot Purchases

A.

'

By all

A;

Class of Paper—

Texas

Short

tOther

—„

"A, ■■■',;

•Combin'd: East Coast,

Okla., Kansas,

Af.,

.

obtained by

(column 3).

tStocks tStocks
of Gas

.

turers Association from regional
Outstanding
'
' A
A associations covering the opera¬
tions of representative hardwood
A/ A.A;
' -'V' ■ - ?.nd softwood mills.
Shipments

acquired and their outstanding balances.

tRatios

Production

■;

-

,,

tData are based on figures from sales finance
paper

Gasoline
•

9,299,967

.......—...

Shares:

the corresponding
week of 1941, production was 4%
Class of Paper—
less, shipments 0.4% greater, and
Total retail automotive—$21,121,581
$20,591,102
$487,055,343
Total
wholesale automotive
9,368,075
9,288,418
220,340,215
4
new business. 4% less.
The indus¬
Total wholesale—other than autoA
4
'
'
: - . , , ~
try stood^at 130% of the average
motive——.
481,322
444,122
3,677,553
12
Total retail—other consum. goods
6,296,613 / 6,022,721
187,200,239 :
r
3 ; » of production in the corresponding
Industrial, commercial and farm
i <
A
AAA'
A»-Aa+ week of 1935-39 and 154% of
equipment
344,279
315,313
14,890,550
;
2
average 1935-39 shipments in the
same week.
*•
Total sales financings.,
$37,611,870
$36,661,676
$913,163,900 A
4
A;.;,'.

:

•

barrels of 42 Gallons Each)
in this section include reported totals
unreported amounts and are

• ; '

•

A.;,"

companies

A,,

.

plus an estimate of

California

A

■;

Figures

Rocky

:

of

,

j" Dollar volume of paper
acquired during
September, 1942

v

—

OF

OCT. 31, 1942

OIL, WEEK ENDING

and

■vA'/'A- A':

1

1942

A

allowable as of Oct. 1, calculated on a 31-day basis and
includes shutdowns and exemptions for the entire month.
With the exception of
several fields which were exempted entirely and of certain other fields for which
shutdowns were ordered for from 4 to
16 days, the entire state was ordered shut
down for 9 days, namely, Oct. 3, 4, 10, 11, 17, 18, 24, 25 and 31.
tThis

'''■

A'A A,('

/

1942

30,

Value

Dollar

Number

less than the

FINANCING

September,; 1942, and Balances

September

week ended

28.

Paper Acquired During

of

327,592

week ended Oct.

Companies

August 31,
Volume

■

Mississippi, Indiana figures are for

both months from the
and by linking these percentages to

AND DIVERSIFIED

324,856

sales....

total

August to Lumber Movement—Week

the percent changes from

Sales—Finance
AUTOMOTIVE

A 2,736

companies in the

previously derived for August 1942.

16,200

California, 41,000.

Nebraska,

companies,

sales finance

same

Customers' short sales....

"'Customers' other sales....

Round-lot Sales by Dealers—

September, as shown by data on reports for

the indexes
—

companies.
indicate

indexes should be used to

12,468

sales

total

of Shares:

Customers'

published as reported without

are

the allowables granted, or may

be incapable of producing

Kansas,

reports from 264 sales finance

on

adjust¬
ment for seasonal or price fluctuations.
The figures presented in
tables below are not comparable to those published for previous
months since monthly reports have not been received each month
from identical sales finance companies.
All indexes for September

by pipeline proration.
Actual state production would, under
be less than the allowables.
The Bureau of Mines reported

Montana, 200; New Mexico, 5,800;

based

were

United States.

be limited
such conditions, prove to
the daily average produc¬
tion of natural gasoline and allied products in July, 1942, as follows: Oklahoma, 28,300;
Kansas, 4,300; Texas, 98,900; Louisiana, 19,000; Arkansas, 2,900; Illinois, 8,900; East¬
ern
(not including Illinois and Indiana), 7,800; Michigan,
200; Wyoming, 2,200;
wells

.

4% for retail auto¬

12% for wholesale—other than
consumers' goods, and 2% for in¬
dustrial, commercial, and farm equipment.
: : V •
These data on the current trends of sales financing during Sep¬

3,894,400 *4,071,200
♦O.P.C.
recommendations and state allowables represent the production of ail
petroleum liquids, including crude oil, condensate and natural gas derivatives recovered
certain

Customers'
Number

v;

108

12,360

other"sales—A

♦Customers'

consumers' goods, 8%

sales.—.

short

Customers'

automotive, 3% for retail—other

•

2,250
1,900
1,450

+
—

3,901,150

4,066,200

Total United States

(Customers' Sales)
Number of Orders:

motive, 4% for wholesale automotive,

Neither the dollar volumes nor the

Value

Dollar

31, 1942, the volume of

outstanding balances as of Sept. 30, 1942 were

301,275

10,036,530

Dealers—

and 12% for whole¬
A
:!
\
acquired during September 1942 to the

The ratios of the paper

69,900
63,300
"264,950"" 419,800
16,850
18,000

450
2,200
1,100

—

"

Michigan

of Shares.—

Odd-lot Purchases by

the^total amount of financing by all sales finance
—

incl. 111.

(not

Mexico

+

280,000
19,000

—;

—

—.

of

Number

automotive).

diversified financing (other than

10,844

Orders....,

Number

for'industrial, commercial, and farm equipment,

80,100

+

362,000

Arkansas

New

6,450

Total,

for week

Purchases)

(Customers'

held by sales finance companies de¬

for the retail financing of other

creased 7%

1942

Week Ended Oct. 31,
Odd-lot Sales by Dealers;

,

90,200

North Louisiana

Montana

237,350

3,400

_—

Texas

Wyoming

295,200

50

—

Texas

Total

Eastern

6,200

diversified outstanding balances

sale

Texas.

Texas

Indiana

436,400

—

Coastal

Total

365,800

—.—-

East

1941

3,600

A

214,000

Texas

Coastal

—

?3,500

—

30, 1942, compared with Aug.

As of Sept.

Nov. 1

STOCK

YORK

EXCHANGE

of this year.

less in September than in August

15%

AND

NEW

THE

sales finance companies was

nancing the volume of paper acquired by

1942

.

140,000

Texas

Southwest

r

+

98,500

Panhandle Texas
North

417,000

:

Ended

Ended

nations 1 Beginning
Oct. 1
October
—

modernization (2%),
other household appliances (4%), radios and other musical instru¬
ments (10%), and refrigerators (14%).
In wholesale diversified fi¬
for residential building repair and

FOR
THE
OF
ODD-LOT'
SPECIALISTS ON

ACCOUNT

DEALERS

registered in the volume

mately the same level, but decreases were
of financing

given below:

are

TRANSACTIONS

ODD-LOT

respective volumes re¬
showed furniture financing at approxi¬

corded in August of this year,

specialists,

STOCK

companies during September 1942, with their

Week

4 Weeks

Change

Week

Allow-

♦O.P.C.
Recommen-

financing by sales finance

comparison of the retail diversified

A

and

A,.:/,<

Aug. 31, 1942 to Sept. 30, 1942.

from

—Actual Production—

♦State

1942, of complete figures
showing the daily volume of stock
transactions for the odd-lot ac¬
count of all odd-lot dealers and

.

(FIGURES IN BARRELS)

PRODUCTION

AVERAGE CRUDE OIL

DAILY

for the week ended

summary

a

Oct. 31,

sales specialists who handle odd lots on
compared with Aug¬ the New York Stock Exchange,
ust, 1942, showed that the wholesale financing of used passenger and continuing a series of current fig¬
used commercial cars decreased slightly but that the wholesale fi¬ ures being published by the Com¬
The figures, which are
nancing of new passenger and new commercial cars remained at ap¬ mission.
proximately the same level as during August 1942. The volume of based upon reports filed with the
Commission by the odd-lot dealers
outstanding balances for this type of paper, however, decreased 10%

potential refining capacity of the
whole ran to stills, on a
Bureau of Mines' basis, 3,731,000 barrels of crude oil daily during
the week ended Oct. 31, 1942, and that all companies had in storage
at refineries, bulk terminals, in transit and in pipelines as of the
end of that week, 79,159,000 barrels of finished and unfinished gaso¬
line. The total amount of gasoline produced by all companies is esti¬
mated to have been 11,153,000 barrels during the week ended Oct. 31,
i

6

during September 1942, when

finance companies

Coordinator. Daily

A

Exchange

and

Securities

The

Commission made public on Nov.

wholesale

of

volume

The

that the industry as g

'

178, an all-lime high. %
automotive paper acquired by

the index had reached

4,800,000-barrel estimated daily

1942.

NYSE Odd-Lot Trading
.,

standing balances have been reduced to approximately one-third of
the volume held by sales finance companies on Aug. 31, 1941, when

production for the four weeks ended Oct. 31, 1942 averaged 3,894,400
barrels. Further details as reported by the Institute follow:
■,
Reports received from refining companies owning 85.6% of the
United States, indicate

14%, respectively.

and

Sept/30, 1942 the volume of retail automotive outstandings
by sales finance companies was 12% less than as of Aug. 31,
The index has now dropped to 59, showing that these out¬

3942.

3,901,150 barrels, a decrease of 16,200 barrels when compared with
the preceding week, and 170,050 barrels per day less than in the cor¬
responding period a year ago. The current figure also was 165,050
barrels below the daily average figure for the month of October,
1942, as

18%

As of

held

week ended Oct. 31, 1942 was

crude oil production for the

age gross

v

that the daily aver¬

Petroleum Institute estimates

the dollar volume of used

the number and

decreased

acquired, 52%, while
commercial 'car financing

and the dollar volume of paper

creased 46%

Daily Average Crude Oil Production For Week
Ended Oct. 31,1942 Declined 16,200 Barrels

Thursday, November 12, 1942

CHRONICLE

COMMERCIAL & FINANCIAL

THE

1726

1942

1941

Week

Week

Previous

Wk. (rev.)

445

445

247,790

258,972
284,965
248,379

286,162
239,560

461
258,305
266,552
285,829

Softwoods

Hardwoods

1942 Week

1942 Week

financing

Mills

99

360

237,011—100A

10,779—100%

Shipments-

270,624—114

15,538—144

orders

226,298— 95.

Production.

.

13,262—123

Volume

156

Number

THE COMMERCIAL & FINANCIAL CHRONICLE

4124

1727
i

Revenue Freight Gar Loadings During Week
Ended Oct. 31,1 @42 Totaled 399,46$ Gars
Loading of

390,469

revenue freight for the week ended Oct. 31, totaled
the Association of American Railroads announced on

cars,

Nov. 5.

This

was

decrease below the

a

of

4,276 cars or 0.5%, but
of 95,672 cars or 12.0%.

an

corresponding week of 1941,

increase above the

same

/

i

week in 1940,

Loading of revenue freight for the week of Oct. .31
12,777 cars or 1.4% below the preceding week.

decreased

;

1,322

below the preceding week, but

cars

an

increase of 29,928 cars

above the corresponding week in 1941.

.

Loading of merchandise less than carload lot freight totaled 92,222 cars, an increase of 34 cars above the preceding
week, but a de¬
crease of 66,699 cars below the
corresponding week in 1941.
Coal loading amounted to 169,690
cars, an increase of 2,433 cars
above the preceding week, and an increase of
7,379 cars above the
corresponding week in 1941.
'
' '
.

.

.

Grain

and grain products loading 'totaled 47,320 cars, a decrease
of 345 cars below the preceding week, but art increase of
11,468 cars
above

the

but

loading amounted to 24,843 cars, an increase of 482
preceding week, and an increase of 5,022 cars above
the corresponding week in 1941. In the Western Districts
alone, load¬
ing of livestock for the week of Oct. 31, totaled 20,642 cars, an in¬
above the

of 687

above the

preceding week, and an increase of 4,716 cars above the corresponding week in 1941.'
; • : '
'
Forest products, loading totaled 47,513 cars, a decrease of
1,698
cars below the
preceding week but an increase of 3,041 cars above
'the corresponding week in 1941.
Ore loading amounted to 63,267
cars, a decrease of 12,808 cars
below the'preceding week, ,but an increase of
3,889 cars above the
corresponding week in 1941.
• v ;
>'■
,
cars

,

:

1940

1942

1941

412

270

395

211

per

892

865

2,634

2,129

the

Atlantic

Coast

Central of

Line,™

;

Ail districts

Four

weeks

weeks

of

Georgia,,,—

Georgia & Florida
Gulf,

weeks of April—.

Five

weeks

of

May—

Northern,——,;

Richmond, Fred. & Potomac,—,
Seaboard

Air

Tennessee

Line—,

Five

weeks

of

August——!.

Four

weeks

of

September

Northwestern

Week

of

Oct,

Week, of

Oct.

Week

of

Oct.

3--^

Week

of

Oct.

24—

Week

of

Oct.

31——

Total

—L-

r

4,350,948

3,503,658

3,540,210

3,135,122

907,607

917,896

806,004

909,957

903,877

811,906

900.767

922.884

813,909

3,717,933

Eastern

Ann

District—

Arbor

OCT; 31

Boston

&

Maine.—

Chicago, Indianapolis & LouisvilleCentral

Vermont——.——————.

Delaware & Hudson.

Delaware,

—

Laxkawanna

Connections

Trunk Western

—.

Lehigh & Hudson River-—

1941

"

•

273

6,649

9,062

8,044

16,284

13,852

1,541

1,732

2,028

2,421

26

29

1,044

1,618

1,366
17

-

66

.2,241

1,382

.

34

v

2,470

,

6,573

6,135

12,834

11,170

6,573

6,135

12,834

11,170

592

610

1,779

2,511

2,758

1,169

1,315

344

381

473

2,905

4,170

12,093

15,760

14,018

16,826

15,493

4,276.

6,014

5,810

8,100

.9,369

243

168

171

2,969

2,569

1,941

1,975

2.028

1,554

8,522

9,132

12,585

3,097

2,837

3.235

3,103

5,900

6,419

4,043

361

406

Montour—

24

80

55.954

51,775

18,672

16,735

Central.—

N,

Y., N. H. & Hartford

.i.L-

New

York, Ontario & Western.——
York. Chicago & St. Louis.—„

N.

2,316

2,332

1,974

55,268

47,501

9,686

13,220

10,771

—...—

New

i

f

50,244

.

kew: York Central Lines—^.

960

.7,894

.

Y., Susquehanna & Western——

376

.

•

1,137

1,056

,2,424

2,465

; 7,008.

6,399

15,632

13,653

417

2,378

1,670

Pittsburgh & Lake Erie

8,294

9,331

7,866

8,829

9,224

Pcrc

6,292

7,395

6,822

7,021

6,565

736

681

464

423

Marquette—:

■Pittsburg

&

•

————

Shawmut-.^—

Pittsburg, Shawmut & North—;

Pittsburgh & West Virginia
—_—„

529

,

1,064

Rutland————2—
Wabash—...—:

,

Wheeling, & Lake Erie

.

„

;

465

—

u

256

628

1,089

6,277

5,683

13,458

5,379 i

5,609

4,383

187,693

164,766

163,673

-

4,558

•

353

p-

.

2,722

2,489

'626

6,178

.

26

16

471

644

1,187

345

L„_

1,132

.

,

10,653
4,322

%

210,545

229,958

Allegheny District-

Akron,

808

666

536

1,072

1,059

40,782

42,170

36,280

28,822

23,833

5,759

5,016

6,724

2,262

1,990

,

Ohio!—

Bessemer & Lake Erie_i——.

Buffalo

Creek &

Gauley—

Cambria & Indiana—

■

—
—-

Central R. R. of New Jersey-.—.—,.

Cornwall.—

'

.

;tl306

274

■

297

1,996

1,709

7

7,699

8,265

•7,331

20,052

,

232

3

*3

1,855
706

„

Cumberland & Pennsylvania—.

661

112

41

247'

287

20

%
i

21

16,160

,

.

880

798

1,515

85,097

88,743

70,325

68.502

58,519

Reading Co.—
Union (Pittsburgh)—

14,726

16,707

15,463

28,906

24,201

22,132

20,181

19,079

7,404

5,430,

3,896

4,424

3,681

13,102

10,099

187,451

192,271

164,269

176,063

146,168

115

44

132

-

—*

.1,767

;

2,210

Pocahontas District—-

Chesapeake & Ohio

...

Norfolk <& Western—

Virginian

...

Total—




28,545

•

30,057

23,042

22,458

22,465

19,631.

8,490

6,932

4,891

'4,705

3,888

2,322

2,308

55,894

57,227

46,561

24,578

23,289

•

458

1,287

1,658

1943.

409

468

380

10,194

6,233

10,515

10,577

10,240

8,689

7,114

24,185

25,351

23,626

25,441

21,880

574

578

461

1,159

148

134

154

1,001

812

1,027

.

13,766

■

transferred

time

CMP

to

the

before

of

middle

Nothing has been learned
during the last week in reference
the revised conservation order.

to

Demand for lead

125,238
V-

110,263

fairly active

was

and producers could have disposed

119,275

97,618

of

than

more

sold

the

amount

tons

during the last week.
were unchanged.

22,158

20,872

15,893

Quo¬

11,446

come

508

9,867

10,127

9,475

11,471

9,196

industry

Elgin, Joliet & Eastern,—.
Ft.

Dodge, Des Moines & South-

Great Northern

^uke Superior &

Ishpeming

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

Pacifi<Jfc—

Spokane

International

-

—

Spokane, Portland & Seattle
Total

589

548

559

118

170

20,772

18,486

5,810

4,225

539

691

688

752

764

2,757

2,543

3,781

40

62

2,330

1,819

1,981

2,711

2,566

Central

8,038

6,827

3,415

2,880

result

13,752

12,265

5,435

4,482

cedure.

203

205

"254

559

316

3,441

2,314

2,710

2,082

134,212

126,096

69,125

56,285

25,665

23,218

22,776

13,049

9,022

3,280

3,318

3,155

5,195

2,895

Bingham & Garfield

408

1,025

421

111

65

22,669

19,625

17,558

14,431

11,636

2,438

2,800

2,218

909

796

12,953

12,635

13,074

14,188

10,743

2,682

2,937

2,604

4,138

3,147

1,519

1,354

1,988

5,697

4,826

4,632

6,509

882

742

515

12

1,553

1,141

1,214

1,669

1,173

1,925

1,851

1,706

2,019

1,806

——

_

_

—

...

City

_

;

1,829
'

3,943
19

Missouri-Illinois—

1,281

1,189

956

494

473

Nevada

2,150

1,915

1,866

120

135

1,222

1,029

765

682

445

Northern

Western

Pacific

...

Peoria & Pekin Union

Southern

Union

Pacific

29

23

40

0

C

31,440

28,900

11,671

8,245

430

335

346

2,057

1,730

22,461

22,838

20,321

18,602

612

423

446

2

2.284

2,509

2,012

4,862

(Pacific).—

Peoria & Western
Pacific

System...

„

(Jtah____
Western

14,049

the

Pacific..

....

Total:...

144,948

present

in

major

no-

Metals

.137,338

126,879

:

3,558

102,708

74,798

298

284

159

310

Gulf Coast Lines.'

3,773

3,099

2,450

2,175

International-Great Northern.

3,537

1,983

1,709

3,162

2,592

Kansas, Oklahoma & Gulf—

385

224

331

1,273

84.1'■

Uansas City Southern.—

4,632

3,006

2,295

2,706

2,794

Louisiana"^

3,590

2,735

2,035

2,142

2,227

343

377

281

1,138

1,080

727

750

507

350

Missouri & Arkansas———

185

154

221

217

376

Lines.

7,197

4,676

4,424

6,228

3.60C

18,678

17,091

15,598

19,832

12.475

Arkansas.—

Valle>._——

Pacific

—

'

280

244

...

*157

141

235

*290

Francisco..—

10,117

9,220

8,725

9,091

6,195

3,266

2,956

3,153

5,475

3,68c

14,058

7,899

7,587

4,762

4,067

5,767

5,296

5,411

7,852

5,051

Southern.—

144

184

175

39

50

Weatherford M. W. & N. W...

25

17

18

22

38

78,298

60,766

55,963

67,339

47,960

Quanah Acme & Pacific
Louis-San

St.

Louis Southwestern

Texas

& New

Texas

&

Orleans——

Pacific—
Falls &

Wichita

Total.—
*

shipment

week's

Note—Previous

the

nominally

was

182

figure.

.7

;

year's figures

fol¬

as

lows:
Nov.

Dec.

Jan.

Oct.

29—

52.000

52.000

52.000

Oct.

30—52.000

52.000

52.000

Oct.

31—

52.000

52.000

52.000

52.000

—

52.000

—

Nov.

2--

Nov.

3

Nov.

4

52.000

-

Holiday
52.000

Chinese

99%

tin,

52.000

52.000

51,1250

spot,

all week.

Platinum

of

Use

platinum

manufacture has
amendment

an

in

jewelry
by

been stopped

Conservation

to

Supply of platinum

equar fo essential
to WPB.
Any
platinum which was in process for
making jewelry on Oct. 31 may
be processed to completion before
Jan. 1, but processing must stop
on that day.
The leading interest
has quoted $36 a troy ounce on
refined platinum
since Sept. 5,
jusf dbout

according

needs,

1940.

Quicksilver
Demand

for

quicksilver

has

moderated, but the price situation
Production for the

remains firm.

remainder of the year appears to
be well sold up.
at

Previous

ab¬

of

price situation in tin was
without change in the last week.
Straits
quality tin for forward

2

5,192

St,

pro¬

The

is

Island

Missouri-Kansas-Texas

in

been

sorbing larger tonnages
ordinary grades.

13,13f
.

uistrict-

Burlington-Rock

shift
has

Reserve

Order M-162.
Southwestern

regulations.
is under

new

at

Tin
_

—

Toledo,

in

the
moderate

only

control, and the new plan,
as zinc is concerned, should

far

7,273

133,775

showed

metal

strict
so

will

under CMP before long,

interest

The

distribution

zinc

Western District—

AtGh,, Top. & Santa Fe System-

North

Though

14,129

2,737

—

Zinc

3,579

21,477

Green Bay & Western—

$196

(<]}.

Quotations held

$198

per

New

flask,

York.

revised.

Silver

Non-Ferrous Metals—Production Schedules To
Fit Materials

the

direction of the Office of Censorship
production and shipment figures and other data have been

omitted for the duration of the
"E.

& M. J. Metal

and Mineral Markets," in its issue of Nov. 5,
Nelson, Chairman of the War Production Boardy
on Nov. 2 announced a revised plan for the
control of scarce ma¬
terials, to be put into effect gradually to replace PRP/ The purpose

'Controlled Materials Plan'

new

silver, made to OPA and
Mint, has been eliminated by
in

OPA

Amendment

is

to make certain

that pro¬

have

been

The

amendment

when

that

clear

facturer at

be

the

under

will

first

the

be

plan.

to

be

will

allotted

Allotments

plan will be made by

claimant

Committee
agencies

—

to

the

Navy, Office of Civilian
Supply, Aircraft Scheduling Unit,
Maritime
Commission,
LendLease, and Board of Economic
Warfare.
Though the effective
date will be April 1, full opera¬
tion of the plan is not expected
before July 1 next year. The com¬
Army,

modity branches will be retained."
The
to

publication further went

say

in part:

on

Allocations for

may

November

cop¬

through in volume last
week. The price situation was un¬
changed, with domestic consum¬
ers obtaining copper on the basis
of 12b, delivered Connecticut Val¬
ley. Foreign copper held at 11.750,
f.a.s. United States ports.
per

makes

it

sold by a manu¬

prices to reflect use of

be adjusted upward only to

the extent of the amount of newly

came

Copper is

one

start

chinery

the

rolling

allocations plan

fective

at

the

second quarter

in

the

ma¬

of 1943.

After tak¬

of "first things first,"
the tonnages of copper that will be
for

civilian

uses

other

than essential needs will be small.

metal

purchased

and not otherwise disposed
London
tions

for

and

New

silver

York

were

of.
quota¬

unchanged

throughout the week.
Daily Prices
The

daily prices of electrolytic

improved

that becomes ef¬
beginning of the

care

available

domestic

mined

of three critical

materials that will

ing

are

also

semi-fabricated

newly mined domestic silver, they

Copper

copper,

steel

Other materials

later.

Requirements

seven

alloy

items

added

the

supply of criti-<^

Aluminum,

Price

posted with the Mint.

silver articles

and

to

Regulation. Effective Oct. 31, the
seller simply files with OPA a
short form stating that affidavits

duction schedules in manufactured products are adjusted to conform

carbon

48

Maximum

General

under

with the available

and

No.

Supplementary Regulation No. 14,

war.

stated: "Donald M.

Of the

Duplicate
filing
of
"volumi¬
nous" reports of affidavits sup¬
porting sales of newly mined do¬
mestic

Supply Under Revised Plan

Editor's Note.—At the
certain

*

51

2,957

3,616
.

'

Total—.

some

officially

266

a

1,926

———

1,333

675

under

1,333

Maryland

1,453

428

29

1,986

Western

1,297

521

1,216

49

Ligonier Valley—
Long Island—,
—
penn-Reading Seashore Linesx—_..
Pennsylvania System
——;

1,197

355

20,468

"

134

1,315

1,537

cal materials.

Canton & Youngstown—_

Baltimore &

381

3,844

19,545

10,249

9,328

2,466

Monongahela.—————

Maine

541

5,275

1,013

144

165

2,043

—

Lehigh & New England.Lehigh Valley—

168

3,359

21,448

Missouri

1,415

164

703'

454

_

„

1942

1,297

1,101

—

Erie————-—w..

1940

612

6,309

Detroit, Toledo & Ironton—-—V-Detroit & Toledo Shore Line

1941

'

1,502

Detroit & Mackinac.—

Grand

Freight Loaded

.6,369

-

& Western-

682

145

3,874

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

Midland

413

Indiana

Central

Received from

1942

688

184

3,782

Litchfield & Madison—I:—

Total Revenue

1,867

—*

&' Aroostock——„——...— .i

Bangor

140

included

be

Lead

9,112

30,654,313

Total Loads

-

212

to

are

The lead industry will not oper¬
ate under PRP until the metal is

4,399

FI^OM CONNECTIONS

CARS)—WEEK ENDED

(NUMBER OF

9,423

of the freight carloadings for

REVENUE FREIGHT LOADED AND RECEIVED
1

12,215

4,164

794,797

During this period only 60 roads showed increases when compared
with the corresponding week last year.
1

Railroads

21,879

3,658

837,657

the separate railroads and systems for the week ended Oct. 31, 1942,

1

26,443

4,102

,-2,822,450

35,820,756

26,169

3,707

Chicago & Eastern Illinois.

3,413,435
4,463,372

_

3,687

14,674

needs

requests for military sup¬

plies.

856

4,776
17,277

the

3,587

Illinois Terminal

summary

615

4,016
23,327

in

10,626

Fort Worth & Denver

894,745

309

,

civilian

2,720

2,896,953

913,605

469

969

20,764

3,351,840

36,743,225
a

2,478

2,680

2,495,212

890,469

The following table is

cor¬

1940

3,454,409

903.246

2,599

22,985

2,793,630

———_

1,299

2,502

3,510,057

—_

1,676

22,175

4,160,060

1?—

100

1,352

21,029

Chicago Great Western

4,170,713

1

89

Chicago, Milw., St. P. & Pac.„
Chicago, St. Paul,-Minn. & Omaha,

3,351,038

—

10J

453

1,520

33

District—

3,385,769

—

169
736

36

4,118

will

on

'

Denver & Salt Lake......

3,321,568

197
479

43

27,684

quantity received

allocations by the Re«
quirements Committee.
Essential

140

126,430

Denver & Rio Grande Western-

July—.

520

The

depend

962

Winston-Saleni Southbound

Colorado & Southern...

of

512

Central—

2,465,685

weeks

374

•

southern System

2,489,280

Four

360

4

3,215,565

—.

for.

393

4,479

—

Piedmont

2,866,565

June

1,674

2,849

526

—

3,066,011 '

of

1,530

2,666

30,633

Nashville, Chattanooga & St. L'.
Norfolk Southern—„

3,122,773

weeks

443

1,294

4,728

203

3,171,439

Four

4,100

485

Macon, Dublin & Savannah

Mississippi Central—

per¬

1,815

367

Mobile & Ohio

Illinois Central System—,
Louisville & Nashville

The

413

~

:

Chicago, Rock Island & Pacific1941

3,858.273

March

4,880

supply.

1,880

;

Chicago, Burlington & Quincy—
Chicago & Illinois Midland-

Four

4,230

available

centage of copper mentioned rep¬
resents merely the amount asked

——

Florida East Coast,,

western and all districts reported increases
compared with the
responding week of 1940 except the Eastern.

Four

1,256
7,216

Carolina,

Alton..

1942

1,271
10,253

4,190

& Western

reported increases compared with the corresponding
week in 1941, except the
Eastern, Allegheny, Pocahontas, and North¬

January___L—
of February

726

10,024

Georgia,

Charleston

(

ef

769

11,585

Clinchfield

loading amounted to 14,436 cars, an increase of 447 cars
above the preceding week, and an increase of
1,696 cars above the
corresponding week in 1941.

weeks

750

11,741

said his requests for cop¬
will be less than % of 1% of

for 1943,

1941

756

Atlanta, Birmingham & Coast,..

Henderson, commenting on
for civilian supplies

outlook

359

Coke

Five

the

1942

& W. P.—W. R. R. of Ala.——

Chicago & North Western,,—

Livestock

crease

Connections

tations

increase of 7,953 cars above the corresponding week in 1941.

an

Received from

Atl.

corresponding, week in 1941.
In the Western Districts
alone, grain and grain products loading for the week of Oct. 31 to¬
taled 29,804 cars, a decrease of 316 cars below the
preceding week,

cars

District—

Leon

Total Revenue

Freight Loaded
Alabama, Tennessee & Northern

Gainesville Midland!

Miscellaneous freight loading totaled 431,178 cars, a decrease of

i

Total Loads

Railroads
Southern

Columbus & Greenville—
Durham & Southern—,,

^

i

copper

(domestic and export, re¬

finery), lead, zinc and Straits tin

those

ap¬

pearing in the "Commercial

and

were

unchanged

Financial

from

Chronicle" of July

1942, page 380.

31,

left unchanged

also

the 1%

advances to non-member

on

secured

rate

Bank Of Montreal Canada's Oldest Bank,

banks

obligations of

direct

by

Now Observing

Government.

the

Sproul, President of the
local Reserve Bank, makes public
the following Rate
Schedule of
Federal Reserve Ban/c of New
Allan

for the old Metro¬

messenger

a

as

Guaranty Quarter Century

The

of¬ politan Trust Co., with which he
was
associated for 15 years.
He
ficers, and directors of the Guar¬
later was associated with the For¬
anty
Trust
Company of New
York who have served the com¬ eign Exchange Department of the
Guaranty
Trust
Company and
pany for 25 years or more, held
was
employed by
its annual dinner Nov. 5 at the subsequently

Club, composed of employees,

Waldorf-

the

has

membership of
chapter in Lon¬

total

a

317, including a

don, where the company has had
offices for 46 years.
The roster
also includes 47 members who are

He had been
a
Vice-President of the Chase
Bank since June 1, 1930.

specifically secured by direct obli¬
gations of the United States, or
such obligations fully guaranteed
as to principal and interest by the
United States as are eligible for

Bank of New York.

,

last
meeting a year ago.
William C.
Potter, Chairman of the Executive
Committee, paid tribute to the 600

Coshocton,

by
tional Bank of Coshocton,

to

ing

cbllateral under the eighth para¬

that

graph of Section 13, which have
one year or less to run to" call date,
or
to maturity if no call date—

of

System.

eral Reserve

certificates

membership

to

tion

gold service emblems, mem¬
bers other than officers receive

and

&

and

collateral under the eighth para¬

graph of Section 13, which have
than one year to run to call

L.

Strum,

&

Sons,

partner
Manawa,

Wis., have been admitted to mem¬
bership in the Chicago Mercantile

attainment of

service.

Company

Trust

Cut Discount Rates

Granger Costikyan and James H.
M. Ewart' as assistant trust offi¬

have reduced

1%

from

their discount rates
V2%

to

on

advances to

member banks, when
such ad¬
Mr-Costi¬
vances
are
secured by direct or
kyan is a graduate of Yale Uni¬
fully
guaranteed
Government
versity, A. B., 1929.
He has been
obligations having a year or less
of the

cers

company.

the

with

connected

company

for

and is in charge of the
Investment
Service Department.
Mr. Ewart is also a graduate of
13

to

years

Yale, A.B., 1924, and Yale Law
School, 1927. His association with
the company began in 1931 and

specialized in trust admin¬

he has

istration.

a

of Manufacturers

Trust Officer

Company of New York for

Trust

the last ten years,

Vice-President

a

who has been

has been elected
and placed in

by the Reserve Banks

ago

Chicago, Dallas and
Philadelphia and the other banks
followed in due course. The Bos¬

of

Atlanta,

ton, Cleveland, St. Louis and Kan¬
sas City Reserve Banks acted
on
Francisco
New

the

Richmond

the

27,

Banks

on

Bank

York

on

San

and

28, the
Oct. 29 and

Oct.

Minneapolis Bank on Oct. 30.

The major
the rate

purpose

of reducing

notes secured by short-

on

obligations was,

charge

term Government

Trust

explained by the Cleveland
Bank, "to interpose no obstacle to
borrowing by banks which find it
necessary to offer Treasury bills,

of the bank's Personal
Department.
He succeeds
Elliott Debevoise, Vice-President,
who is now statiohed at the bank's
office at Fifth Avenue and 43rd
Street, New York.
Mr. Wottrich
been
with
Manufacturers

has

and its predeces¬
the past 18 years.
director of several cor¬

Trust Company
sor

banks

He

is

a

During 1930 and 1931,

porations.
he

was

for

Chairman

the

of

Bank

Management Conference of New
York.
Mr. Wottrich is a graduate
New

of
the

University

York

and

of

Graduate School of Banking,
Bankers

American

as

curities

indebtedness,

or

Government

se¬

guaranteed issues as
advances to meet

or

collateral

for

It was antici¬
pated that the low rate also might
encourage more substantial pur¬
temporary needs.

chases

of

were

similarly reduced

by

most

The

New York Reserve

action in this respect was

Bank's
as

fol¬

William

F.

H.

Vice-President

Koelsch, retired

of the Chase Na¬

died on
in Dobbs

tional Bank of New York,
Oct.

30

at

his

home

He was 67 years old.
Mr. Koelsch had been in charge
of the Chase Bank's 34th Street

Ferry, N. Y.

to his retirement
He was President of
the
34th Street Midtown Asso¬
ciation and had been a Trustee
of the West Side Savings Bank,
branch

last

prior

year.

The

rate

on

bank's

ination—and
which

advances to

mem¬

The

rate

on

advances

to

in¬

partnerships and cor¬
porations
other
than
banks,
secured by direct U. S. Govern¬
ment
obligations
was
reduced
from 3Vz to 2%%.
The New York Reserve Bank,




as

well

as

most of the other Re¬

of the

ships and Corporations Other
under

the

last para¬

graph of Section 13 of the Federal
Reserve
Act
secured
by direct
obligations of the United States—

2y2% per annum.
Industrial Advances and Commit¬
Under

ments

Federal

the

Reserve Act:

commercial businesses, in¬

or

cluding advances made in partici¬
pation with financing institutions
—2V2 to 5% per annum.

Commitments to make ad¬

(b)

direct to industrial or com¬

vances

a

of

businesses—10 to 25%

mercial

rate to be

charged borrower with

minimum of

Vz%.

(c) Advances taken over from
financing institutions under com¬
mitments—rate charged borrower
on

portion for which Federal Re¬
bank assumes the risk, and

serve

rate

charged

borrower

less

the

commitment charge on portion on
which

financing

sumes
•

(d)

institution

as¬

to

25%

of rate

borrower with a mini¬
of V2 %, provided that no
shall—be

given on
which borrower is charged

commitment
on

more

than 5%.

NYSE Borrowings

Lower

The New York Stock Exchange

total

of

on

Nov.

5

that

the

borrowed as re¬
ported by Stock Exchange mem¬
money

ness

Oct.

decrease

as

31

of the close of busi¬
was

$357,343,929,

a

of

The

total

of

money borrowed
banks, trust companies and
other lenders in the U. S., exclud¬
ing borrowings from other mem¬

from

bers

of

national

securities

ex¬

changes reported by New York
Stock Exchange member firms as
of the close of business Oct. 31,
1942, aggregated $357,343,929.

inter-

as

eign currencies.
"In
the
achievement
the

of

one

tors

Banking Superintendent
appointment of Jackson S.
Superintendent of Banks
New York State was announced

The

of this,
important fac¬
creation
of the

which
part of the bank's policy
system,

banking

a

As the years
spread

from its early days.

went

settlement

and

on

out, the bank opened branches to
facilitate
the
agricultural
de¬

velopment of the
country, its
manufacturing industries and its
general

commerce.

Canada

the
bank has more
branches
throughout
and Newfoundland and

its

offices

"Today

450

than

own

Chicago

York,
cisco.

v

reserves

in

San

Fran¬

resources

excess

of

capital

and

$1,100,000,000

over

and

and

record

Its

-

London, New

in

of

as

Governor Herbert

30 by

Oct.

Mr. Hutto, who has

Deputy Spuerintendent and
named to
William R. White, who

been

Counsel since 1936, was

succeed

resigned to become Vice President
of the
Guaranty Trust Co. of
been

has

Hutto

Mr.

York.

New

associated with the State Banking

most

the

was

branch

of

$76,-

Department since-1934r-when he—
was

appointed principal attorney.
served

also

has

He

six

Hutto's appoint¬

Mr.

years.

Secretary

as

Board for the last

of the Banking

unexpired portion

ment is for the

which ends Dec. 31,

of the term

when Governor Lehman's term

of

office ends.

Morrill-

Mr. Hutto was born in

ton, Ark., and is 37 years old. He
was graduated from Hendrix Col¬

1926 and

lege, Conway, Ark., in

from Harvard Law School in 1930.

He

the

with

associated

became

Miller &

law firm of Hornblower,

in September, 1930, and

Garrison

remained with that firm until his

appointment to the State Banking

1934.

Department in

000,000 today stand in sharp con¬
trast to its figures of a century
and

quarter

a

ago,

when

the

-

velopment of the country is the
fact that it now has more than
a
million., deposit
accounts—
about one in every four in the
Dominion.
"One

Of N. Y. Reserve Bank

Perhaps a more

$350,000.

graphic indication of the bank's
growth
and
the assistance it
has
rendered
toward
the
de¬

New Directors

Name

began business with a cap¬

Commitments to financing
10

well

as

theretofore con¬
ducted solely by barter or in for¬

ital of

—

difficulties of

trading

bank

charged

loan

international
urban

the risk.

institutions

mum

along the early enterprises of the
country
and
did
much
to

was

direct to indus¬

Advances

(a)
trial

of

13b

Section

such as had hitherto
lacking, the bank nursed

straighten out the

Than Banks:

medium

a

business

the

day.

Hutto

providing

first

Hutto Named N. Y. State

Mont¬

Federal

The

Bank

Reserve

of

New York announces that Warren
W.

President of the Glen

Clute,

Bank

National

Watkins Glen,

inated

as

of

Watkins

Class

a

for the

the Bank

Glen,

N.Y., has been nom¬
A

Director

term

of

from Jan.

I, 1943 to Dec. 31, 1945, to succeed

of

the

major

undertak¬

of Montreal dur¬

ings of the Bank

its long career was the fi¬
nancing of Canada's first trans¬
continental
railway—the Cana¬
dian Pacific. The Bank of Mont¬

Neil H. Dorrance,
First

National

President of the
and

Bank

Trust

ing

placed

real

its

extent

marked

resources to a
behind the pro¬

ject.
Subsequent events have
completely justified the bank's
directors in backing this under¬
taking

other,
ment

which, more than any
contributed to the settle¬
and development of Can¬

ada's vast western areas.
"At

100th
ada

the

time

anniversary

was

at war.

the bank's
in 1917, Can¬
Today, as the

of

its 125th milestone,
Canada is again at war.
Under
serve
Banks, left unchanged the
The total of money borrowed, the stress of war conditions, the
Co., and Oppenheim Collins & 1% rate on advances to "member
banks on Government securities compiled on the same basis, as of institution with its resources, its
Co.
close of business
years' experience
and its
A native of New York City, Mr. maturing in more than one year the
Sept. 30, 125
nationwide system of branches,
and on "eligible paper." The bank 1942 was $365,035,047.
Koelsch began his banking career
City, and a Director of
the United States Life Insurance

New York

conducted

and

met

on

The following is the Stock Ex¬
change's announcement:

dividuals,

in

museum

the

where

tree

stock brokers in the United States

H. Lehman.

Partner¬

1%%.

governments and "eligible
paper" was lowered from 2 to

tonwood

preserved

'

•

"Besides

than

against^ other collateral

bank's

the

in

a

coins.

copper

currency—
reality the first

in

assumed

years,

Agency, it is noted, is located on
the site of the famous old but-

this

money—-are

Canada,
it
leading
role

intervening

the

the foreign banking agen¬
cies in the city.
The New York

the

is,

that

later,

of

was

Canadian

—

and

among

bills in small denom¬

own

Specimens

$7,691,118 from the
Sept. 30 total of $365,035,047.

ber banks

currency

paper

in

been

ber firms

lows:

of

and

between

trade

States

of exchange

announced

Reserve Banks.

bank immediately set
giving some

organization to the
financial life of the country, and
its first task was
the issue of

obligations."

such

Some of the other discount rates

Association,

Rutgers University.

of

certificates

other short-term

has

United

the then

facilitate

to

growing

the

1% per annum.

maturity.

This reduction was started two

weeks

Oct.

Wilfred Wottrich,

to call date or

run

1859

in

ed

matter

obligations of the United States—

Advances

Federal Reserve Banks

12

The

York, this year reached the 83rd
milestone of its establishment in
New York.
The office was open¬

23, 1817, and opened for business
on
the following
November 3.
young

Wall Street, New

at 64

real.

Federal Reserve Banks

Nov. 4,

on

John E. Bierwirth, President, an¬
nounced
the
appointments
of

the

for
The

rapidly

semblance

last para¬

the

business.

in

\

of

Bank

the

of

Agency

graph of Section 13 of the Federal
Reserve
Act
secured by direct

Advances to Individuals,

Following the meeting of the
Board of Trustees
of the New
York

under

Advances

open

The

Montreal

about the business of

Inc.;

Strum

to

essential

many

and financial services.
Further, it is aiding the govern¬
ment by promoting victory loan
campaigns, by the sale of war
savings stamps and certificates
and in other war activities."
banking

sketching the bank's career says:
"The bank was organized
by
nine Montreal merchants on June

The

a

Clarence
A.

in

Herz,

Sons,

every

failed

never

announcement

principal and interest by the
United States as are eligible for

vacation
25 years of Exchange. •'

annually an extra week's
upon

Edward

impres¬

an

upon

on

the transaction of

more

Herz

back

record;

have

Director of Max date, or to maturity if no call date
Charles S. —1% per annum.
senior officials attending who are
(c) Other advances and dis¬
members of the club included W. Macferran, Vice-President of the
counts under Sections 13 and 13a
Palen Conway, Chairman of the City National Bank & Trust Co.;
Arthur G. Osgood, of the Harris of the Federal Reserve Act—1%
Board, and Eugene W. Stetson,
&
Savings
Bank,
and per annum.
President.
Lawrence D.
Scheu Trust
William Schneider, a Director of
(d)
Advances * under
Section
was elected President of the club
the Araness Corp., all of Chicago; 10 (b) of the Federal Reserve Act
for the forthcoming year, succeed¬
Ben
Kuyk, Secretary-Treasurer, —ll/2% per annum.
ing Elmer G. Tewes. Membership
Pella Produce Co.,
Pella, Iowa, Advances to Non-Member Banks:
in the club is honorary.
In addi¬
country's

an¬

banking
day for a century and a quarter,
through
good
times
and bad,
through peace and war, its doors

to

as

125th

its

observing

look

can

sive

per annum.

(b) Advances under the eighth
paragraphs of Sec¬

accord¬

in

the

and

credit

niversary, the Bank of Montreal

and thirteenth

announcement by the
Governors of the Fed¬

an

Board

in the
Other

staff who are
armed forces.

Company

Trust

Guaranty

the

of

members

ity
and
elasticity, -particularly
during the trying times of the
last decade.
ItJ is pointed out

Co., specifically secured by direct obli¬
Ohio, has been ab¬ gations of the United States, or
the Commercial Na¬ such obligations fully guaranteed

sorbed

the

—

tion 13 of the Federal Reserve Act

eligible for

was

of

issue

real

tion 13 of the Federal Reserve Act

lh%

It

responsible foi«*
—
*
country's first is playing its part in the nation's
war effort, just as it did 25 years
money,
and it established
Canada's
branch
banking
sys¬ ago.
In hundreds. of commun¬
tem
a
financial system which ities great and small, the bank is
has for many years received in¬ working with Canadian industry
ternational praise for its stabil¬ and
agriculture
by
furnishing
the

Peoples Bank & Trust

The

newly inducted members pres¬

ent who have become

membership since the club's

Eldredge, a

M.

Elliott

the

Mining Co., was among

Coal

finance.

Member Banks:

(a) Advances under the eighth

and thirteenth paragraphs of Sec¬

the

and

Trustee
of
the
Williamsburgh
Savings
retired on pension.
Cornelius F.
Bank of Brooklyn since 1923, has
Kelley, Chairman of the Anaconda
been elected President of the. in¬
Copper Mining Co. and a Director
stitution.
Mr. Eldredge succeeds
of the Guaranty, was the princi¬
the late Henry R. Kinsey, whose
pal speaker at the dinner.
An¬
death was noted in our Oct. 22 is¬
other Director, Charles E. Dunlap,
President of the Berwind-White sue, page 1456.
110

Rediscounts For and Advances to

of United States
Mutual-New Netherland

the former Bank

The

with 250 attending.

Astoria

club

of

Roof

Starlight

Its 125th Anniversary

institution—the iBank of Montreal—ob¬
served on Tuesday of this week the completion of a century and a
quarter of continuous and successful operation.
Founded on No¬
vember 3, 1317, half a century before Canadian Confederation, at a
time when Canada was but a few scattered, sparsely-settled colonies,
the bank gave the Canadian people their first organized system of
Canada's oldest banking

York, in effect Oct. 30, 1942.

>

Thursday, November 12, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1728

bank

passes

Co., Camden, N. Y.
The

C.

for

1942,
a

has

a

been

is

that

Class B Di¬
Dec.

renominated
Mr. Con¬

three-year term.

who

way,

announces

Conway,

whose term expires

rector,

31,

also

Bank

Carle

of

Chairman

the

Board of the Continental Can Co.,
has served

as

a

Class

B

Director

of the Reserve Bank since March

6,

1942.
Only banks in Group 3,

with capital and surplus
000 and less)

for

these

were

entitled to vote

directors.

opened

close at

are

on

noon on

(those

of $300,-

The

polls

Nov. 2 and will
Nov. 17.