Full text of Commercial and Financial Chronicle : November 14, 1946, Vol. 164, No. 4542, Section 1

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NIV 1 11941

m>w.

BRAFinal

ESTABLISHED 1839

Edition;

In 2 Sections-Section

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■##;>'••s

v' v-S1

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Reg. U. S. Pat. Office

.Volume

New

Number 4542

164

The Gold Standard in

t'yS-,

.-v.

' V

•

•''' '•? •. • '.

' 3:-#

•'

.,\y.V:-3.'

unless gold again is traded

since depreciation of these

f leadership in restoring gold *s

standard in

cur-

action:

the

exchange¬

able

for

lars

dol¬

par.

Gold,

Dr. Lutz

picketing nevertheless is

picketing.; Asserts that,

cross

picket line.

are

guilty of'coercion

are

1
giving

;

much thought

off

budget,

violence,-and (3)

at any previous time in our

history to labor organizations. I It is well that such is the case because of the variety of
their objectives, methods and effects. "Picketing" is one of the principal techniques em®ployed| by '/ftpl®3/;® ■.—.■ 3
———
3 ■ Objectives of Picketing
unions in at;

tempts
,

Princeton University

public give

Probably the most

common

achieve

>
#;#■:[#

which, he

attention to

budgetary details.

for¬

for

determined by Supreme

Suggests three approaches to national corrective

objective of labor organiza¬

their objec¬
tives, and—

tions in their

writer's

employment of
picketing technique is to
enhance, thereby, the power
of a strike, which is in pro¬

judgment —

gress.

the

it is

The technique is em¬
ployed, however, for many

one

the

other

prac¬

tices

which

Estimates every billion lopped
should
be
$2 out of $100 of taxable income
considered
James D. Mooney
purposes. But
T. J. Anderson, Jr.
for citizen to spend rather than the government.
it is not a free
The present federal budget situation does not most- care¬
market for gold because gold is
offer a very bright prospect for early tax revision. fully in
any attempt to ap¬
sold by the United States TreasThus far through the current fiscal year the re¬
praise union methods. Such is
:3># (Continued on page 2494)
ceipts and expenditures have been in fairly close
the case
for a number .of
balance, with only negligible variations either
way. The final outcome for the year is, as yet un¬ Reasons: the frequency of its
certain, but Secy. Snyder appears to be of the use,
the : varied, objectives
Dr. Harley L. Lutz
opinion that the anticipated deficit of $1.9 billion
333 INDEX"#®
sought by its employment, the
V
will be realized. Mr. Steelman's veto of the Presi¬
\wide range of practices em¬
dent's curb on public-works spending gives support to this view. .
For detailed index of
# As a vantage point from which to survey the prospects for tax
ployed, the wital ways in
revision, suppose that we consider the yield capacity of the present which
it
affects
economic
contents see page 2459
Federal revenue system. For this purpose the continuance of exist¬
conditions and personal free¬
ing tax rates and the maintenance of the current level of national
dom, and the legal problems
(Continued on page 2506),
•
faced in attempts to restrain
*A paper presented by Dr. Lutz before 26th Annual Meeting of the
its abuses.
ble

eign exchange

/•;

•

coercive and following particular types of abuses have

per se

Undoubtedly people

tions and advocates

converti¬

jr.3:3- -.3:

j. Anderson,

bargaining rights when their members

priation for debt reduction, between $24 and $251/2
billions. Sees difficulty ahead in effecting tax reduc¬

paper

(1) reconsideration of Norris-LaGuardia Act restricting injunctions; (2) suspension or revo¬

analyzes present and prospective Federal budgets,

are

mass

contends, could be substantially reduced and suggests a range of total
expenditures, including a $5 billion annual appro¬

1 lars, and
bank deposits

thomas

wide influence

| ^ amendment of antitrust laws,

Professor of Public Finance,

•'

•

.Associate Professor of Economics, New York University

By DR. HARLEY L. LUTZ*

[;

ment of debts

are

Outlook lor Tax Revision

pay¬

foreigners.
Bank deposits

cation of-union's

The gold standard is the public's safeguard against abuse and
manipulation of the currencies by political authorities. The American
vi -fv;.;v.;,,dollar
is ex-®
changeable

for

3 #

forgo Id at
$35 an ounce

from refusal of union workers to

free market.

•

emerged: (1) intimidation and violence; (2) frightening off customers; (3) restraint of trade arising

| rencies is indicated by their gold values. Says Great Britain became - ##

| commercially and financially powerful because of its free gold
market under a gold standard, and urges U. S. and Britain take
:

3. Contends

free gold market will tend to Si

■

Copy

Court, Constitutional basis for picketing rests on workers' right to communicate facts of controversy.

commodity. Cites black market in

as a

stabilize values of paper monies,
>

" ;

'tfti

;

33 various currencies and contends

■

Professor Anderson delineates

Motors, Incf -33

return of a free gold market, Mr. Mooney predicts.
failure of International Monetary Fund to maintain currency parities

31 Pleading for
•

By
,

V;'-..\r;

By JAMES D. MOONEY

President and Chairman, Willys-Overland

•

Picketing—Its Economic and Legal Status

A Free Gold Market

i'■

Price 60 Cents

York, N. Y., Thursday, November 14, 1946

means

reasons.

random

sampling of

accounts of picket¬

newspaper

ing during the past several
months indicates to
tent

some ex¬

the

varied-objectives in
its use. As reported in this;
limited
sampling, picketing
had been employed to induce
an owner of a residence, who
was
painting it, to join a
painters' union or hire a union
painter; to provide assistance,

(Continued

on page

2481)

Sidle and

Chicago, 111.# Nov. 12, .1946.

American Petroleum Institute,

Vacuum Concrete

/
........

Aerovox Corp.*

#> r ®';® '#'"/•
*

3®®33

Prospectus

COMMON

•/"

v..

3Analysis

Hirsch & Co.
Successors

HIRSCH, LILIENTHAL
Members

York

New

Stock

Exchange

25 Broad St., New York 4, N. Y.
Teletype NT 1-SU

3-0600

INVESTMENT

Londea

Cleveland

the Government in

Kenya Colony and Uganda
Head

Branches

Colony

and

Aden

Subscribed Capital

Paid-Up Capital
Reserve
The
"

•

;

SECONDARY

26, Bishopsgate,
London, E. C.
Burma,

Fund

Ceylon,

and Zanzibar

Trusteeships and Executorships

Acme Aluminum

ST., N. Y.

HAnorer 2-0986

Bell Teletype NY 1-306
Montreal

®33y '

Toronto

*Delroit Harvester Co.

•

;

Members

INCORPORATED

90c

Tel.

REctor

Philadelphia

2-3600

Com.

Teletype- N. Y. 1-676
•

Enterprise

Federal

Service

#'. common

v
•

6015

Prospectus

request

and Dealers

Reynolds & Co.

Members New York Stock Exchange
120

:3;33

Conv. Preferred

*Twin Coach Company

New York 5

Telephone-

CITY OF NEW YORK

Water & Gas

for Banks, Brokers

Dealers Ass'n.

Security

45 Nassau Street

THE

Bond Brokerage

'Solar Aircraft Company

Company

NATIONAL BANK
3

Alloys, Inc..

Conv. Preferred

Gearhart

£2,200,000

NY 1-708

3/3";'

New York

£2,000,000

52 WILLIAM

Bond Dept. Teletype:

THE CHASE

Members

New York Security Dealers Assn.

OF NEW YORK

MARKETS

"-£4,000,000

undertaken

HART SMITH & CO.
# ' ■#■

Kenya

Bank
conducts every description
banking and -exchange business

also

THE NATIONAL CITY BANK

Woonsocket

New Haven

CORPORATE

Office:

In India,

Wilkes-Barre

# FINANCE

of INDIA, LIMITED
to

#/#'

Washington, D. C.

Scranton

Springfield

NATIONAL BANE
Bankers

Dallas

Pittsburgh

Geneva <Representative)

SECURITIES

Bond Department

1927

64 Wall Street, New York S
BOSTON
PHILADELPHIA
Troy
Albany - Buffalo
Syracuse
Baltimore

Chicago

request #/##

Established

and other Exchanges

HAnover

V/.:

v.-

R. H. Johnson & Co.

v15 •

GO.

Bonds

STOCK®

,kS :U7 '

k''y. ■ -3;® A:.'-. .3® 33#'' .#3"'33^3'3'V'i3

& OHIO RR.
:

request

•;3#»fjy-7; 'y, •:fi,/

Municipal

GULF, MOBILE

Havana Litho. Co.* ®

Broadway, New York 5, N. Y.
Telephone:

REctor

Bell Teletype NY

2-8600

1-635,.

■

Hardy & Co.
Members New York Stock Exchange
Members New York Curb Exchange

30 Broad St.

New York 4

Tel. DIgby 4-7800

Tele. NY 1-733

Analysis

upon

request

ira haupt & co.
York Stock Exchange
Principal Exchanges

Members New
and other
111

Broadway

New

York 6

REctor

2-3100

10 Post Office Sq.
Boston 9

Hancock 3750

Tele. NY 1-2708
Direct

Private

Wire to Boston *

FINANCIAL CHRONICLE

THE COMMERCIAL &

2458

zTrading Markete in:"

Thursday, November-14, 1940

Many Trusts Cushioned Stock Break With Cash

Standard G & E Com.

LONG

By HENRY ANSBACHER

Timely Clothes*

;-:a||vRockwelllf||
Manufacturing Co.

•*'

„

Analysis of Investment Companies' third quarter operations shows many funds used portions of accumu¬
lated reserves for purchase of equities, chiefly in oil, building and chemical industries.
Some trusts,

Expreso Aereo
Taca Airways*

?:?

Higgins, Inc*

;

} '

; n

;

j h

xl' ?'

„•'

'''

•

♦' '+

market.DetailedIwjakdowtt given bf third quarter jiort- ]

hand/ hate remained 6tt^/>f

dther

folio changes.

Prospectus

•With

i 'i

'To

;

3 P, ' Y\

--Ttik

»* V

k W'

1''

*4 J|

■ ■
'

SECURITIES CORP.
1920

Established
Members N. Y.

Ass'n

Nat'l

AO axohange

Security Dealers Assn.
Securities Dealers, Inc.

HA 2-3778

PL, N.T. 5

practically no

NT 1-423

BMLL TBLETYP3I

made

either

commitments
sold

pany and the quality of
ment^ performance i and,

their
position

protect
♦Automatic

Fire Alarm
Coal

Elk Horn

Common &

asset

and

Preferred

,ir

Mayflower Hotel

(Wash. D. C.)
-

MitcMUCompanij
Stock Exchange
N. Y. 5

Members Baltimore

120 Broadway,

WOrth
Bell

f
yy

2-4230

1-1227

Teletype

Hathaway Bakeries
v

Common

•

Class

"A"

Vanderhoef & Robinson
New

Members

York Curb Exchange

31 Nassau Street, New
Telephone

plicable to passing judgment on
investment company performance.

York 5

COrtlandt 7-4070
NY *1-1548

for General In¬

respectively, to over 95% for
other trusts. As one pieces to¬ ;

this

picture

portfolio

the verbiage

with

;

ment^performance.In some com¬
to just what

and

;

with

/■

^—"

American Overseas

living

nomic

than

borrowers

serving

•

Members

•!

•

right

made loans and undertaken com¬
mitments

1^1843
120
:

York

Stock

cases,

ma¬

Prof.

Jacob

Viner

ill-sheltered
peoples, and economies struggling

1 |

Department
■.

'• '•

••'

•

•'

v.. •;

maintained for the accumulation

is
or

placement

large

blocks

SreeuecmdGompau^
Members

Dealers Assn.'

Hanover 2-4850
Teletypes—NY 1-1126 & 1127

$7 Wall
Bell

N. Y. Security

Dominioii of Canada Internal Bonds

St, N. Y. 5

great weight to our
moral obligations, but I am always

115 BROADWAY

We have

prepared

Memorandum

Nathan

Which is available
is

Earnestly

Solicited jor the Building

City,

York

New

1946.

;

Nov.

Fund

•

.V. : -i•'

•'

••

•

Bought

—

Sold

MICHAEL

C. £. de Wiilers & Co.
Members New York Security Dealers Attn.

120 Broadway, N. Y. 5, N.

Member New

York Security Dealers Association

74 Trinity Place, New

Joseph McManus & Co.
Members

New

Telephone HAnover 2-2400
Private Wires to

Teletype 1-376-377-378

Buffalo—Cleveland—-Detroit—Pittsburgh—St. Louis

York Curb Exchange "

Chicago Stock Exchange

39 Broadway
Dlgby 4-3122

New York 6
Teletype NY 1-1610

International Ocean

Pacific & Atlantic

Telegraph Cow

Telegraph Co.

Southern & Atlantic Tele. Co.
■■

Quoted

Empire & Eay States Teleg. Co.
-

sold

quoted

J-G-White 6 Company
INCORPORATED

York 6, N. Y<

HEANEY, Mgr.

WALTER KANE, Asst. Mgr.

bought

Troster, Currie & Summers

YORK

Line Stocks

■

—

NEW

Western Union Leased

Common
•

ST.,

Securities

Commdn:

AND WELDER

Banks, Brokers and Dealers

WALL

FEDERAL MACHINE

request to

Member

Curb and Unlisted

MARLIN-ROCKWELL

Exchange

Assoc.

Coffee & Sugar Exchange

ex¬

by Professor Viner
before Academy of Political Sci¬
ence,

Stock

Exch.

Curb

York

much

*An address

Straus-Duparquet, Inc.

CHURCH

pounding narrowly economic and
prudential 5 considerations.
The
potential economic advantages to
the United States of a large-scale

r'oo

OF VICTORY

Contribution

Principal Exchanges
Teletype NY 1-672

Telephone BArclay 7-0100

when

(Continued on page 2495) J

NEW YORK 6, N. Y.

:•

feel

and

confident

York

New

York

TEL. HANOVER 2-0612

foreign lending policy during the
transition period to a stable world
seem
to me great and obvious.
How long this transition period
will be, moreover, I do not ven¬
ture to predict, since I have be-

Canadian Securities Dept.

Members N. Y. Stock Exchange and Other

120

unhappy about finding the appro¬
priate words for expressing moral

Goodbody & Co.

OUR LADY

Your

S. FUNDS for

Over-the-Counter Stocks and Bonds. '

FARR & CO.
New

attach

considerations,

Alegre

Quotations Upon Requeit

should respond.

We Maintain Active Markets in V.

already

New

-Our

"Special Situations"

•,

The Economic Advantages

hungry, ill-clad and

Tel. REctor 2-7815

have

Members

t ools,

BROADWAY, NEW YORK 5

amounting,, since > the
of■ Lend-Lease,
to
billions.
We will be
to do much more, and

$13

called

materials

gifts.

over

2-0470'

termination

transport

rines, exhaust¬
ed inventories

Exchange
New York Curb Exchange

New

WHitehall 3-1223

HAnover

Sugar Corp.

should make out¬

some

facilities, sad¬

■

NEW YORK B.

Punta

generous

else.

merchant-

York 5

WALL ST.

terms and in generous amounts. In

there are dev¬

JlONNELL & To

York Curb Exchange

New

Members
64

and

Elsewhere

Frank C.Mas tenon & Co.

grounds, we should lend to de¬

before

and

operations.
On
eco¬
<on
humanitarian

peacetime

stand¬

where

Common

Teletype NY 1-1140

astated V cities

H. G. BRUNS & CO.
NY

painful slowness to restore

ly depleted

Teletype

Hotel Waldorf-Astoria

and than any¬

Airlines
Bought—Sold—Quoted

Bell

Aspinook Corp.

—~~—

with

Stock

Common

ever

Common Stock

Telephone:

Central States Elec. (Va.)

earned

Standard Gas & Electric

20 Pine Street, New

Southern Colorado Power

alone have emerged from the war
productive power, with a great store of internationally

assets,

liquid

Teletype NY 1-1010

New York 4, N. Y.

higher

Common Stock

Broadway WHitehall 4-8120

Bell System

Of all the great countries, we

with increased

Common Stock' yy.y-;:.,y

ard

A. S. Campbell Company
.y-".
Common & Preferred

Wells

Diplomacy

Members New York Curb Exchange

(3) Cementing out existing alliances with dollar-loans; and (4)
Exercise of our teto right /over International Bank's transactions.

panies, there is apparent sugges¬
tion of confusion

Edward A. Pureed & Co.

United States accruable from a large-scale foreign lending policy.
Reversing his previous opposition to politically motivated lending,
because of Russia's portentous provocative behavior toward West¬
ern democracy; Dr. Viner now urges our "frank and deliberate
resort to dollar diplomacy.''
Toward this end be advocates follow¬
ing steps: (1) Withholding of all additional financial assistance;
of any kind front Soviet Russia and her satellites; (2) Extension
of financial aid to countries threatened by "the Russian glacier";

;

Byrndun Corporation

Struthers

Scranton Elec. Com.

adviser stresses material economic advantages to

Former Treasury

the Wellington

have done admirable jobs in the

and

By JACOB VINER*

light of subsequent market action,

■■■fA'iiSi-..

cash

assets

.(Continued on page 2492)

)

Y Professor of Economics, Princeton University

hand,'

■rVv.y-

its

Birmingham Electric
Northern Indiana! P.S.

Members New York Stock Exchange

procedure to follow. On the other
several managements, in the

Bell System Teletype

10%

Dollar!

accompanying table
giving breakdown of portfolio cash
and investments, shows percentage
of stocks and lower grade prior se¬
curities as of June 30, ranging
Study of the

presidents' statements in
periodic reports issued since the
first of the year, he is impressed
with
the diversity
of manage¬

■

American Gas & Power

We Should Practice

ap¬

company

Savoy Plaza

breakdown

1956

trust and average mar¬

activity,; size should not

postwar rise

year bull

Henry A. Long

it could

gether

Savoy Plaza
3/6s,

rent,
well

nine

smaller

braadh o(fice»

our

Central Pub. Util. SVzs

Fund

& Preferred

Direct wires to

cur¬

vestors Trust and

Rogers Peet :

of last Spring we had experienced

the" period under
What is the maximum de¬

ket

from 50 and 56%

Issued

New, When

have

obtained ' by

tives of

ever

become

In view of the fact that in ad¬
dition to the current uncertainties

on top of a fourmarket, it is interesting
to examine the asset position of
view.
sirable size has been a much de¬ certain
funds, first
in the sobated
question,
but
certainly, termed balanced group. On March
taking into consideration objec¬ 31, General Investors Trust held

the

NY 1-1557

Now Orleans, La.-Birmingham, Ala.

in fact,
of com¬

trusts

generalities"
should

seems

Exchange

St, New York 4, N. Y.

HAnover 2-0700

been

reserve

"lustre less

^Memorandum on Request

percentage

greater

mendable, results

buying power
at anticipated
lower prices,
y If the phrase

May, McEwen & Kaiser
/

the

provide

for

Members New York Stock

25 Broad

Categorical Portfolio Shifts

manage¬

■'

Y' '*>.['/$*■

Y'**''Vv

Steiner, Rouse &Coi

exists between the size of a com¬

balance

Analysis on Request

number of management groups (35 in all),':individual managers in many instances
<^~
supervision of their portfolios. As such-,as to restrict flexibility of
is well recognized, no correlation operation.

lowed by a major

Y';;

'■

Investment companies as a group .indicated a preference--for the purchase of common stockTiirihe
declining markets of the third quarter of the year.
Shares in oiU companies were the outstanding
favorites with building and chemicals also well liked.
Noticeable, in addition, was indication of a re¬
vival of interest in certain steel equities.
While
picture presents the investment procedure fol¬
;

KING & KING

V-

Bought-~-*$old-—Quoted

37 WALL

STREET

ESTABLISHED 1890

TeL HAnover

2-9300

Arnhold and S. Bleichroeder

NEW YORK 5
Tele. NY 1-1815

INC.
W

Broad

WHitehall

St.

3-9200

New York
Teletype NY 1-51

W nrp,w upw

.Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

American Labor
Articles and

Picketing—Its Economic and Legal Status
—Thomas Anderson, Jr,
The Gold Standard in
—James

Cover

Practice

THE NICE MAN

Cover

Mooney

m—Henry A. Long
Should

COMETH

Cover i
•—and

—Eugene Meyer
Congressional Opportunity

Planning
Let's

wants

give

you

good

those obsolete and

little

for

traded

securities

Diplomacy—Jacob

Viner_.

that

nobody

else

wants!

Obsolete Securities Dept.

(Editorial)
09

Foreign Markets and Our Nat'l Economy—Wilbert Ward

WALL

STREET, NEW YORK

Telephone: WHitehall 4-6551

Depression?—Theodore Prince-—

money

ij*L
Dollar

,--m.

American Labor Disputes Threaten World Recovery

Need We Have

AND COMPANY

Free Gold Market

Outlook for Tax Revision—Harley Lutz
Many Trusts Cushioned Stock Break with Cash

Disputes | 1 |
Threaten World Recovery

News-

Quick Visit to Europe?—Herbert M. Bratter

Slash

the

Federal Budget—Lynde

D. Hokerk

Export-Import Bank and Postwar Foreign Trade
—William

McC.

Martin, Jr.

500-5th Ave

Expect Early Pact Between UFE and NYSE
•

•—Edmour Germain

—ww.---.-—~

....

The Madison

Our Opportunities in World Commerce
Harriman

Averell

—W.

-i-.———

Task of UN in Developing Int'l Trade—David

3-6 !4 s/57

K. Owen

Business Responsibility for Better Living Standards
—Charles Luckman
Problems of Direct Investments Abroad—Leo D. Welch

Hasten European Reconstruction and. Trade
—Allen W, Dulles

—

Broadway, New York, N. Y.

HAnover 2-8970

Teletype NY 1-1203

World Trade and America!s Future—Curtis E. Calder

rt:S:

New Functions of British Trade Unions—Charles Dukes

York

New

Factors in Preserving Peace—Herbert Morrison

Member

of ^

Security Dealers Assn.
Security Dealers, Inc.

National Assn. of

Implementing Increased Exports—Henry F. Grady
Foreign Economic Policy of U„
—William L. Clayton
More Competition for Consumers* Dollar
.

—Clarence Francis
U.

S. Foreign Policy

Stands—Secretary Byrnes

AIR CARGO

U. S. and Russian Disarmament Proposals Can Be
Harmonized—V. M. Molotov
Britain's Faith

EXPRESO AEREO

Nations—Ernest Bevin

in United

Real Estate Outlook—Roger W. Babson

TACA, INC
Maloney Act

festering canker

body: of security regulation*, t

National Securities

Association as defined therein is not a
voluntary ;
body. Act is product of New Deal planned economy and contrary1 ito American way of life* Price
fixing decried as violative of con- [
stitutional processes.

Monopolistic provisions portrayed.: Repeal j

<"sed-

The recent election results
•
One of these is the clear

are

said to

mean

many

J. F.

Reilly & Co., inc.

New York

Chicago

things.

public repudiation, of the New

Deal system of

bureaucracy and planned economy.
newly elected Congress, much is expected ih

From the

the form of affirmative

legislation that will

TRADING MARKETS

past in¬
vasions of our freedom, and restore the American
way of
life by reaffirming the legislative process, our adherence to
the constitutional form of
government which is the founda¬
tion stone of

the

our

erase

Thiokol Corp;
National Company

Billings & Spencer

national existence.

securities

National Shirt Shops

field

opportunity knocks upon the
Congressional door and pleads for immediate surgery, the
excision of a cankerous festering sore on the body of
security
regulation, the curing of a disease known as the Maloney
Act which constitutes

amendnlent of the Securities and

Exchange Act of 1934 and is known
Now,
York, N.
1, 1879.

Published Twice Weekly

Y.,

under

Act

the

time to review

some

of the

Subscription Rates

FINANCIAL CHRONICLE

Subscriptions in
United States, ,U«
Territories
and Members

Reg. U. S. Patent Office

WmXIAM R, DANA COMPANY, Publisher*

York 8, N. Y.

23 Park Place, New

REctor 2-9570 to

Pan-American
of

Dominion

Other

DANA

SEIBERT,

Other
and

plete statistical issue —market quotation
xecords, corporation news, bank clearings,
Utate and city news, etc.)
La Salle St.,

1942,
i

'-V

the post

'»/ ■

office

New

••

•v

Note—On
the

rate

account of the

Susquehanna Mills

Members

New

25 Broad

Latrobe Elec. Stl.

^Prospectus

York Stock

Exchange

Street, New York 4
HAnover 2-4300

Members New

135 S
.

York

Curb

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;

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Members New York Security Dealers Assn.

25 Broad St., New York 4, N. Y.

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•

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Issues

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Members

32
.<

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Broadway

NEW YORK 4
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CHICAGO 4

ESTABLISHED

1914

Harrison 2078

Specialists in Soft Drink Stocks

Teletype CG 129

York—Chicago—St. Louis

Kansas

City—Los Angeles

& Trust Co.
-V'-••

Board of Trade Bldg.

■Direct Wire Service
New

Security Dealers Assn

DIgby 4-8640

Class A Common Stock

•

Crowell-Collier

N. Y. Title & Mtge* Co

N.Y. 3

Commodore Hotel

PREFERRED STOCKS

fluctuations in

S. Sugar

^Fidelity Electric Co,

Kearney & Trecker
P. R. Mallory

Lawyers Title & Guar, Ci<

Teletype NY 1-2033

High Grade Public Utility and Industrial

Spencer Trask & Co.

f Lawyers Mortgage Co.

Bell

f|: U.

be made in New York funds.

Sugar Assoc*

Lea Fabrics

interested in offerings of

Records-Monthly,

(Foreign postage extra.)

Punia Alegre Sugar

exchange, remittances for for¬
eign subscriptions and advertisements must

Bond & Mtge. Guar. Co.

15 Broad St,

are

2-0300

Haytian Corporation

page 2518)

year.

WOrth

■

Teletype NY .1-84

{

CERTIFICATES

Prudence Co.

Eastern

Publications

Quotation

a good
provisions of the Maloney Act

Tel.:

TITLE COMPANY

per

(Continued

;

Company.

Reentered as second-class matter Febru¬

25,

year;

Chi-

-ago
3, HI.
(Telephone: State 0613); 1
SDrapers' Gardens, London, E. C., England,

ary

$29.00

$25.00 per year.

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬

re/o Edwards & Smith.

per

Earnings Record —• ;■■■ Monthly,
(Foreign postage extra.)

Monthly

135 S.

Canada,

$25.00 per year.

Thursday, November 14, 1946

Offices:

$26.00

Countries,; $33.00 per year.

Bank

President

WILLIAM D. RIGGS, Business Manager

Other

Union,

Bell System:

;

9576

88ERBERT D. SEIBERT, Editor & Publisher
WILLIAM

Possessions,

Section 15A.

this opportunity comes to the fore, is

March

Members New York Security Dealers Assn.

170 Broadway

74 Trinity Place, New York 6, N. Y.
Telephone:
:
Teletypes:
BOwling Green 9-7400
; NY 1-375 — NY 1-2751

Andy sis

upon

•

••

Request

C. E. Unterberg & Co.
Members

Security Dealers Ass'n

Broadway, New York 6, N, Y.

Telephone BOwling

Green

Teletype NY 1-1666

9-3565

THE COMMERCIAL & FINANCIAL CHRONICLE

2460

Thursday, - November 14,-1946

«——

BUSINESS BUZZ

Foreign Markets and
Our National Ec<ntomif
/'/J V

By WILBERT WARD*

Holding there

are

Vice-President, National City Bank of New York i

misconceptions regarding foreign trade, Mr. Ward j

points out its real purpose is to establish an economic foundation
'

for durable peace

and higher income levels everywhere./ Warns!

against over-emphasis

Amer. Window Glass*
Cora.

Pfd.

Automatic Instrument

Barcalo Mfg. Co.*3|j;

;

•

Old

which
our

Douglas Shoe*; '
Expreso Aereo
General Machinery

you,

place beyond

add,

mistaken

cept—a particularly glaring

our
con¬

one4-

but

only one of a series of mis¬
conceptions about i the purpose of
our foreign trade. / -'
/ t

correct, the

consuming

believe that

can

deal with

public

is jus¬

these misconceptions within a pe¬

tified

riod

de¬

Hartford-Empire Co.*

trepasses

neither

your

nylons
that our ladyWilbert Ward

folk

crave

the

Lanova*.

biles

Majestic Radio & Tel.

Asphalt

Michigan Chemical

which

for

the plants claim

our

priority.

That is,

NYSE Organize to Force

Missouri Pac.
l

Mohawk Rubber*
Moxie

N.Y. New Hav. & Hart.
///• old pfd.:

Mid-Continent

15th

Trust

Conference, Chicago, 111., Nov. 7,

;

1946.

Advocates of Permissive

*lAn address by Mr. Ward be¬

;

fore

automo-

workers

required is to follow the

(Continued oh page 2491)

the

Jack & Heintz

that

whether it be

r/ Higgins Inc.:''/!/;/.

Purolator Prod.*

that

time nor your patience. And
cessation
of I believe that in that period I can
demonstrate that the topic has a
export of any
article not in closer interest for you trust of¬
free supply-4- ficers than its title suggests.
All
the

manding

Gt. Amer. Industries

*/'''

I hasten to

sell

excess

production. If
that
concept

District; Theatrest

•

citizen,

does

Diebold Inc.

Old Pfd.

markets" connotes to

suspect that the phrase "foreign
to the average United States
?/''■/ borders in^

Mastic

counterbalanced by imports of use- <
ful goods and services, is harmful.
Holds foreign loans are merely j
deferred imports and afford no permanent remedy for unbalanced i
foreign trade, but states prudent advances, through World Bank, <
/ may avoid previous errors in foreign lending.
it

Chicago R. I. & Pac.

exports, and asserts exports, at expense

of investors and taxpayers, not

•

Incorporation on
Vote on Question i

/Though obviously in minority, proponents of permissive incorpora-;
tion apparently have sufficient influence to compel Board of Gov-,
ernors of Exchange to defer action for a month.
Nationwide com- j
mittee formed under chairmanship of Amyas Ames of Kidder,;
Peabody & Co. to conduct aggressive last-minute campaign to get
Board to refer question to entire membership of Exchange for vote.;
/Opponents undisturbed by move.

Richardson Co.

The line is becoming very

sharply drawn between those members

"Trundle, It's 'What Size Loan Are You Contemplating,' Not
'How Much Do You Want to Put the Bite on Us For'!!"

/X.

J"** '

Tenn. Products

Upson Corp.*U. S. Air Conditioning |
United Drill & Tool "B"
Vacuum Concrete
Alabama

Mills*,

Aspinook Corp.*

the

deliberations

that

was

Textron Wrnts. & Pfd.

decision could be made.

not

The par¬

Derby Gas & Elec. ;J
New. England P. S. Com.

Grinnell Corp.

*Crowell-Collier Pub.

Southeastern Corp.

...

V-.

Bought - Sold - Quoted

Circular

upon

•

Teletype NY 1-672

' of

^Stratford Pen

^District Theatres

*Metal Forming

*Capiial

Members N. Y. Security Dealert Assrr.

^Princess Vogue
*

Corp*

U. S. Finishing Com. &

first COLONY CORPORATION

Direct Wires To

Members

New

Chicago, Phila. & Los Angeles
ENTERPRISE PHONES
Hartf'd 6111

Buff. 6024

Bob. 2109

Wall Street

Tel. J

York
;

lAt'.over2-8080

Security Dealers Association

New York 5, K. Y.
Teletype

1-2425

and

volume

urgent selling
^;

The

phrase "undigested

secur¬

ities" coined in 1903 has been of.

(Continued

page

2502)

R.M. Smythe & Co., Inc.

INACTIVE SECURITIES /
Offer their services

for//;

establishing tax losses

J.K.Rice,Jr.&Co.
Established 1908
Members

REctor
Bell

Y-

Specialists In

Ffd.

*Prospectus on request

Prospectus Available

necessitous

Records

REctsir 2-8700
N.Y. 1-1286-1287-1288

1. "Undigested Securities"

trends

Aeronca Aircraft

Corp.

Shops *Loew Drug Co., Inc.

have originated?

of pro¬

strikes in necessary

*Hoving

*Hungerford Plastics

^The FR Corporation

inflationary

arising from the scarcity
duction and

*Dumont Electric

less market could such

virtual

sification

Dow

decline and the melting way products, OPA, etc., but money,
prices indicated a necessitous employment, demand and national
and urgent liquidation which, with income improved, if anything, all
the prevailing thin markets and of which will be subsequently
The
question
then
the
paucity of cash purchases discussed.
(through 100% margin require¬ presents itself, where in a margin-

ments), bore all the earmarks

105 West Adams St., Chicago
..."

Aug. 13 to 167.30

115

Broadway, New York

the

-Members TV. Y. Stock Exchange and Other Principal

/^ -V "j

production and revolutionary depression.

decline in the stock market from

Request

request

120 BROADWAY, N. Y. 5

The

panic. i<v; .' 1;
The change in underlying fac¬
tors was confined, since the end
of the Japanese War, to an inten¬

Telephone BArclay 7-0100
or

Theodore Prince

JjJj Goodbody & Co.
,

tProspectus Upon Request
•Bulletin

Prospectus available

}

ing. / Accordingly we have a free choice between

Standard Gas Elec.
—

Southwest Natural Gas
.

-Y:

•'

less than four 'weeks. The speed of

Paper Com.
Staley (A. E.) Mfg. Co
*Stromberg Carlson

Bird & Son

Sept. 10 represented one of the most concentrated and violent de¬
clines on record with a deluge of sales of over 40 million shares in

Oxford

Paget S'nd P. & L Com.
Spec. Part.

(Continued on page 2509)

Art Metals Construction

V1.,,;''/".1

(1) undigested securities problem
removed; (2) inventories are not exces¬
sive; (3) important institutional holdings of equi¬
ties are intact; (4) commodity situation is sound;
(5) corporate working capital is large and debt
small; (6) liquidation was largely; motivated by
technical market factors; (7) monetary inflation is
frozen into the economy; (8) demand for goods is
insatiable; (9) predicted improvement in foreign
situation; (10) ushering in of "reactionary liber¬
alism" at home; (11) productivity is steadily gain¬
prosperous

American Hardware

;

Depression?

/Jones Average of 204.52

Cent States Elec., Com.

■■

-4 t,

structive factors:

going to give up the battle

-American Gas & Pow.

*.'»

has been

easily.

*i- *

Considering all elements relevant to recent stock market break, analyst
concludes that current outlook is favorable, because of following con¬

permissive

would be another month before

r> *

By THEODORE PRINCE

those who< oppose
incorporation of ^
their firms and though the advo¬ ticular issue before the Board was
cates of the proposition are ob¬ whether or not it should refer the
viously in the minority yet their question to the general member¬
influence in the high places ap¬ ship of the Exchange for a vote.
parently is such as to make the There: is no doubt now that the
Board of Governors of the NYSE feeling is very strong in some cir¬
reluctant to act on the matter as cles, small in size perhaps but
close i;to the administrative ma¬
they normally would. ■/
The
Board
met- again, -.last chinery of the Exchange, that the
Thursday to consider the question proposition should be presented to
but the only announcement that the membership for a vote.
The
was
forthcoming on the progress proponents of incorporation are
the

' I

Need We Have

of the New York Stock Exchange who favor and

1/ Taylor-Wharton*

Security Dealers Assn.

2-4500—120 Broadway

System Teletype N. Y. 1-714

79 Wall

Street, New York 5

Telephone HAnover 2-8868

;

•Volume 164

Number 4542

■'

'
wp'y

<V'Vt-3■' ; ?>•'

HHT

THE COMMERCIAL & FINANCIAL CHRONICLE

Riley" in Milwaukee
?

"The Financial Chronicli)

(Special to.

/MILWAUKEE/WIS. —'Ralph
Risctf

sag

By A. WILFRED MAY
Armistice

in. UN!.

,\l Quite ironically, the customary observation of two minutes of
respectful silence on Armistice morn was omitted at the UN sessions
last

Monday;

brought

Armistice

paradoxically,

and

Day

barrage of bitter attack from the Soviet, which in turn elicited a
vitriolic counter offensive from the American,

associated

become

Co., 735 North Water
Street. Mr. Risch for many years
was with Morris F. Fox & Co,
:

" "•
'?;
Martin With Riter & Co.-

William W.
Riter & Co., 134

CHICAGO, ILL.
with

Martin

Chronicle)

Financial

to The

(Special

Success

Lake

diminution whatever in the verbal warfare raging there.
Consideration of the United States' trusteeship plan brought forth a
no

has

with Riley &

—

South La Salle Street.

Dulles, the American delegate on the Trusteeship

Committee, was particularly bitter in denouncing
the. Russians'
allegedly deliberate procrastina¬
tion and

misrepresentation regarding the sched¬

establishment

uled

Much

CANADIAN

Trusteeship. Council.

effort

the

Lake4

SECURITIES

di-

Success' is

B Britsh, andSouth Africandel gations. JohnFoster

rected toward scoring points in the'press rather

than

fellow-delegates.

against

Frequently

Abitibi Pr. & Paper Co., Ltd.

delegate will rusn to reporters with a completely

Giant Yellowknife

prepared and documented statement in rebuttal
to a controversial speech of another nation even

Brown

Company.

while the latter's translated version is still being

This is like the prizefights of yesteryear,

spoken.

when that contender whose second

the

local

telegraph office,

the

won

The

Noranda Mines

race

became "the* fight

"winner."

A. Wilfred May

Sun Life Assurance

Canadian Bank Stocks

dealing

with

non-self-governing territories, it appears that the United States,
whether because of the exigencies of security, or of the possible con¬
gressional temper, has been jockeyed into an unfortunate position in

"*•

r/\• •• • <

■< r1

■

..••,V"'- */..;

Abitibi Pr. & Paper 5s,

• /

1965

Aldred Investment Trust

the eyes of the world. In insisting that the former Japanese Pacific
island mandate, consisting of the Marshall, Caroline, and Marianna

*4^8,; 1967
Brown Company 5s,

Islands, be put under United States trusteeship according to our own
terms with the alternative threat of our annexation de facto, the

Consol. Pap. Co.

United States is playing the game of

which it has been accusing the
That is, it is settling matters by force in
relinquishing its sovereign action to the de jure settlement
by the joint decision of the International Organization. It is. the
same category of action for which we have denounced the Soviet re¬
garding its taking of unilateral action toward Polish Silesia and
Korea without waiting: for joint disposition of the question via peace
treaty decision. Such unilateral behavior, by whomever it is prac¬

1944

6s,

1959 y

5VgS, 1961

Hydro-Electric

International

Russians in other spheres.

Financing Small Business

Ontario Paper Co.

Minnesota &

Losing One Battle

Iri negotiating for the UN's mew trusteeship system for

lieu

of Can.

Consol. Pap* Corp., Lid.

•

//;•;'

InternationalPower Securities
6»/zs, 1055,

Securities

International Power

7s, 1952 & 1957

ticed, does pot further the basic aims "of a functioning World Body.

The

Republican Congress and Our. Foreign Economic Policy

phases of
foreign policy will surely be shed next spring, by reason of the

our

HAnover 2-0980

Y, 5

63 WILLIAM ST., N.
,

Great light on the elections' real effect on the economic

O.-.A

1-395

Teletype NY

Bel]

Toronto

Montreal

New York

State Department's intentions,

announced over last weekend to nego¬
reciprocal trade agreements on a wholesale scale. For
Republican Congress will have to declare itself decisively
either for or against protection. Our policy on tariffs holds the key
not only to the specific economic phases of UN, but in a "hard-boiled"
practical way to the very existence of the International Monetary
Fund, to the International Bank for? Reconstruction, and to the crea¬
tion of the -prospective -International Trade Organization.
For any ;
tiate decisive

Lake

Jefferson

Jonas

MARKET

Naumburg,

Lane Cotton Mills Corp.

Standard fruit & S/S
& Pfd.

Com.

TRADING

Sulphur

Pfd.

Com.

(Continued on page 2507),

Houston

Galveston

then the new

T. J. FEIBLEMAN & CO.
Members New Orleans Stock Exchange
New York

New Orleans 12, La.

4, N. Y.

Richards Bldg. Arcade

41 Broad St.

'
Bell Tel.—NY-1-493
Bo. <*-4482

CommonStock

when distributed"
One-tenth

15th to holders of each

distributed

November

'"Air Products, Inc. Com. & 'A1

share of General Public

one

Stock/

Utilities Corp. Common

^Raytheon Manufacturing Co.

G. A. Saxton &

$2.40 Conv. Preferred

♦Universal Winding Coi Com.

Co., Inc.

70 Pine Street,

New York 5, N. Y.

WHitehall 4-4970

Prospectus pit request

Teletype NY 1-609

/Reynolds & Co./
Members

York

New

120 Broadway,

REctor 2-8600'

Bell Teletype:

FOR BANKS, BROKERS & DEALERS
■' ■v:';
v :-i

Exchange

Stock

New York 5, N. Y.

Telephone:

NY 1-635

i.; -I

AMERICAN TELEPHONE &
Shortage

Atok Gold Mining Co.

TELEGRAPH CO.

indicates

Big Wedge Mining Co.
Mindanao, Mother

Mines,

2%%

Inc.

■

Delivery When Issued

Prospectus

f '*

(freight

Request

car

—

Sold

—

Quoted

1946

;

manufacturers)*

Market about

Bought

high

Circular
Brokers

about

"
•

Broadway, New York

Securities

113

•"

4-2422

New York 5, N. Y

Telephone
WHitehall

Available

Dealers

«fr

Investment

62 William St.

•

165

for

;

Convertible Debentures due 1961

San Mauricio Mining Co.

HODSON& COMPANY,

Cars.

volume

large

business

;

Subscription Rights

Lode

Freight

long-term

Established 1888

Teletype
.

1-26U

MEMBERS

Branch Office

Hudson St., Jersey

City, N. J.

treet, New

SECURITY DEALERS

York 5, N. Y.

LERNER & CO.
Inactive

ASSOCIATION

Bell Teletype NY 1-897

10 Post Office

Securities

Square, Boston 9,Mas$.

Telephone Hubbard

1990.

Teletype Be 60.

2462

THE COMMERCIAL & FINANCIAL CHRONICLE

BALTIMORE

DETROIT

Bay way Terminal

ElectsomasteiV Inc.
Prospectus

Davis Coal & Coke

National

Sash

Automatic Pinsetter

STEIN BROS. & BOYCE

tric Bond and Share

Members

CALVERT ST., BALTIMORE 2

Detroit

Stock

Exchange

2-3327

Nov.

The Parker

Preferred

9,000

leading manufacturer of tube coup¬
fittings
and
valves for
the
of

hydraulics, has

time

operation.

OSCAR F. KRAFT & CO.

substantial

prospec¬

tive earning power.

current quotations,

available

Te*
common

stock

approximately

Trinity

2529

Tele,

In 1940,

ment

basic

50%

and at less

position,

€75

LOUISVILLE

ment of
American Air Filter

American Turf
available

request

upon

PRICED ABOUT 8*4

Consider

II.

BOSTON

N. Y.

Public

MASS.

Telephone CAnal p-8100

'■

eration df Mr. Okin's

Lovett Grocery

With

petition.

Slayton & Co. Inc.

Floor, Kentucky Hoifae Life Bldg.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

ANGELES,

CALIF.—An¬

drew G. Anderson, Evan D. Peery,
and
Russell
C.
Zink are with

BOND ^

Incorporated

The

products

and of differ¬

that

Slayton ,8? Co., Inc., 3277
Boulevard.

Wilshire

has

rv''1.,•»

ments.

makev the

return

the

Prior

transportation

continue

definitely.

Jong
and

Company

yourself,
to

BUCKLEY BROTHERS

Request

Members
■\.

New
York, Philadelphia
Los Angeles Stock Exchanges
'Also

Walter J. Connolly & Co., Inc.
24

Federal

Street, Boston 10

Tel. Hubbard 3790

Tele. BS 128

New

Member

York

1420 Walnut

Curb

509

those

you
turn foi

Herbert

Exchange
Members Bt. Louis Stock

Exchange

•

Coverage

■

Secondary Distributions
Bank
<

and

Insurance

Stocks

Industrials—Utilities
Inactive

Securities

77 Franklin

Liberty

iv&fc/-.'

W'.;;..

American-La France-Foamite

•

Light

Providence

not

BOENNING & CO.

PEnnypacker 5-8200

PH 30

Phone to N. Y. C.
COrtlandt 7-1202

V«

SYSTEM

Exchange

of Spokane
1
Dealers -Underwriters

Peyton Building, Spokane
Branches at

Utah

TELETYPE

Brokers

ESTABLISHED 1899

Salt Lake City

Members Standard Stock

w\.

company

160 S. Main Street

JBELL

CORPORATION

Kellogg, Idaho and Yakima, Wn.

464

DES MOINES

for

Printing Co.

INCORPORATED

(Established
•

-m

Iowa Power &

Light Co.
3.30% Preferred Stock

Bought—Sold—Quoted

Produces
Forms

Phone 4-7159

Bell Tele. DM 184

1901)

' ;

all

Kinds

Sole

Capitalization: V
90,390 shares common

Bulletin

BROKERS and DEALERS

Labor-Saving v'r£
of

•

H. M. Byllesby &

Company
PH 73

the

even

other'

some

remote

airport; "standing by**,

the

somehow

that

they

Priorities are no longer used in
;air travel, at least not formally./
They are still employed in steamer
travel.
To get on a westbound ■
ship in Britain, for example, the
American
arm

traveller

himself with

ification,
United

States

business

will

need

priority class¬
obtainable < from v: the

Embassy,

his

sufficient

impor-.
tance. A word of praise is due the
State Department for the excel-lent job it is doing - in helping
American businessmen in Europe
national

the

interest

find

de¬

cent

Utica & Mohawk

places to stay and means of
getting about.
Some of

Cotton Mills, Inc.

consulates, like the

Glasgow,
are
being
swamped with immigration work.
Large

BOUGHT—SOLD—QUOTED

our

one

want

numbers
to

come

of persons there
America, and

they seek not only the necessary
Circular

request

1898

W. H. CHILD, INC

MOHAWK VALLEY

Members Salt Lake Stock
Exchange

INVESTING COMPANY

BROKERS

INC.

OFFICE

Stock Exchange Bldg. Phila. 2
Telephone
Teletype
RIttenhouse 6-3717

UTAH MINING
STOCKS
Established

Request

PHILADELPHIA

EQUITABLE BUILDING
DFS MOINES 9, IOWA

TRADING MARKETS

the fact

;

General Manifold &

town

hope
will get off.

Floor

other hours.

are

accom¬

of the would-be and
actual air travellers feel pretty
badly abused as they Sit around Up
small peat fire in some third-rate

in
on

that

is that many

from

Quotes call TWX Sp-43

today's is

modate their: customers,

of Orders

STANDARD SECURITIES

Edward l. burton

Private

WHEELOCK & CUMMINS

trying their best

SECURITIES
For Immediate Execution

of Exchange from 10:45 to 11:30
A.M., Pac. Std. Time: Sp-82- at

1606 Walnut St, Philadelphia 3

Springfield

the various American airlines

Irish

Amalgamated Sugar

Bag & Paper
'

Utah Power &

Utah-Idaho Sugar

Southern Advance

Exchange

2340

plane is not

M. Bratter

thing.
including a
large number of American citizens,

MARKETS

Street, Boston 10, Mass,

Tel.

Portland

Stock

it would be erroneous to say

SPOKANE. WASH,

Common Stocks
Boston

airlines

"seller's market." While

hotel in Limerick

F. L. PUTNAM & CO., INC.
Members

America-bound plane. For the

NORTHWEST MINING
yXXXXX'XtXi

does

•

New England Markets
TRADING

crashes

apparent way
the huge backlog of passengers
who would be delighted to pay a
premium to be allowed to board
any

indeed

Thousands of persons,

SALT LAKE CITY

■

reser¬

sure

Philadelphia, New York and Los Angeles

Retail New England

airplane

affect

not

trans-Atlantic

vation

System between

bad

some

aid Over there;
a

Stock

Exchange Building
Salt Lake City, Utah

rp]ptvr>P SU 67

Phone 5-61'

238 Genesee St.

Tel. 4-3195-6-7

Utica 2, N. Y.
Tele. UT 16

•

wait in¬

Even

Street, Philadelphia 2

Wire

STREET

and

New York
Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—-WHitehall 3-7253
Private

whom

SECURITIES

OLIVE

to
but

large' proportion of

rThe fact that there have been

trouble,

only

will
Circular

United

the

States; and
these. must

wait

Long Bell Lumber

Preferred

some
patiently and
impatiently, awaitirig

other sides
you may be in

not

INVESTMENT

(today,

are

others

reser¬

vation

Son, Inc.

Memos on Request

much

Maine RR.

•

If you are planning a trip to
Europe, do hot leave the United :
States before you have 'arranged for a return reservation. If
you *
must
attempt^

V'<

for

Boston

A-/.

By HERBERT M. BRATTER ;

ST, LOUIS

b<m

on,

Correspondent recites conditions of travel to and from Europe/
and gives experiences of long waiting, insufficient accommodations,
customs requirements, and other inconveniences and mistreatments.
Says delights of trans-ocean air travel appear only on advertise¬

PHILADELPHIA
Bird &

notice

Quick
Visit to Europe?

Bell Tele. LS 186

Gruen Watch

Reciprocity

issued

fixing January 13 as the date
(Continued on page 2501)

Planning

Can- 5

Brazil,

Our Committee for

;

Information

are

untif the Jstatus-; of

(Special to Ths Financial Chronicle)

re¬

number both
L.Clay ton

Belgium,

Netherlands, New
Union of Southr
Soviet Socialist.
Kingdom. •, ■ •. ;4
of negotiating
such a large group of agreements
simultaneously, puts them on a:
multilateral, in lieu of the pre¬
vious bilateral, basis.
^
»
*

nation of pref-

William

Zealand, Norway,
Africa, Union of
Republics, United
The technique

rates

erences.

creditors

LOS

l»t

duced

Luxembourg,

and the elimi¬

notes. arising out of the

Murphy Chair Company

'.V

Teletype BS 424

con¬

con*

ent nations

whs determined.
Douglas, former SEC
Chairman, took no part in consid¬

Wiilett

™E BANKERS

STREET,

HANcock 8200

the

undertaken

ada, Chile, China, Cuba^ CzechoSlovakia, France^ - India, Lebanon
(Syro-Lebanese Customs Union)^

ready

cessions,

Justice

Girdler Corporation

are

grant

sisting

-claimed

refinancing
other

Ass'n

Pont, Homsey Co.
31 MILK

Australia,

list of prod¬
ucts on which
we

will

Spring
simultaneously with 18
key trading nations, consisting of

Act,
specifying a

Winn &

Okin

tions

the

Agree-

ments

Electric

mission Jacked; the power to im¬
pose
conditions postponing pay¬

value

Circular

Trade

approxi¬

book

g r eements So¬

under

and

& Share. He contended the Com¬

than net working capital

share.

per

of indicated

involved, is unprecedentSEC; orders authorizing a re¬ edly large. The actual negotiafinancing of a $30,QOO,OOQdebt
owed by Foreign Power to Bond

one-

despite tremendous improve-'

third less than original offering price

mately

Securities

•

Mr. Okin also asked revision of

STREET

6th

in the .United States.

LOS ANGELES, 14, CALIF.

WEST

530

the

Acting Secretary of State Clayton has formally announced the
States
Government's intention ? of negotiating new trade

United

Inc., which never operated di¬
rectly or indirectly any properties

suc¬

Outlook for industries

indicates

served

common:

Mr.

Cinecolor Corp.

cessfully reconverted to normal peace'

Court

invitation.
1

Utility Holding ■ Company Act of
1935 did not empower the SEC to
regulate a Bond & Share subsidi¬
ary, American Foreign Power Co.,

lings,

transmission

Supreme

Entails cooperation with
Organization. Soviet thus far declining
Truman hails plans and urges public support.

Bond & £>hare .Co.

Cons. Rock Products

Appliance Company

refused the request

lateral tariff reductions with 13 nations.

The request Avas made by Sam¬
uel Okin, of New York, owner of

Disney
&

: ;

aims of International Trade

Exchange Commission's authority
to regulate a ^corporation whose
operating subsidiaries are wholly
located abroad.

BOSTON

Walt

challenge

LOS ANGELES 1

Common

State Department, acting under Trade Agreements
Act, will hold
public hearings next January, preparatory to negotiating multi¬

Company's

subsidiary, American Foreign
Power Co., upholds power of
SEC to impose conditions post¬
poning payment of notes. in¬
volved in refinancing operation.
The

Buhl Bldg:., Detroit 26
Cadillac 5752
Tele. DE 507

Bell Teletype BA '393

New York Telephone BEetor

request

& Dolphyn

Members New York & Baltimore Stock

To Negotiate Trade Agreements

Supreme Court, in refusing to re¬
rulings in relation to Elec¬

Mercier, McDowell

Exchanges and other leading exchanges

* Thursday, November 14, 1945

Apply U. S. Gives Formal Notice of Plans
Foreign Subsidiaries

view

—

Report furnished

6 S.

request

Manufacturing Corp.

'■

Shelter

■

Holds SEC Orders

furnished on

Weight

Preferred
-

official

permission known as a
"visa," but also — and it seems
quite unreasonably — the help
of the American consulate in find¬

ing transportation to the United
States. In the. cases of brides of
GIs the demand may not appear
so unreasonable, but the obvious

(Continued

page

2504)

;

.Volume 164

< \4

By LYNDE D.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

President, Kerk Guild, Inc.
Vice Chairman, NAM Government Spending Committee

Attacking wasteful government spending and deficit financing, Mr.

,:p

Hokerk contends 1047 budget is excessive and deprives, industry of

■

its

share of citizen's dollar.

proper

Sets peacetime budget at

$20 billions, but admits defense and veteran benefits require higher
total at present.

Urges immediate and progressive retirement of J

less than $2^ billions annually of Federal debt and asks that

not

pruning knife be applied to Federal payroll.

When
producing

war

ended

little

workers

|iliSpRHHIt'ever
£,,
Mf

h •

IpkWj
-iBBSH'mm
B

industry had plans for

ago

than$>-—

■

•■■

■

"•

;

1—r

—

—j

before,' deficit financing and wasteful exr

Reconversion,: {xenditures-rtwfnevils which gent,
we felt sure, erally accompany one another.
<-

would

takeh

over a year

record volume of goods, and employing millions more

be - We all know/that the govern*
/in ment for years—16 long years, ii)

stride. Every* fact—has been spending billions
knows; of dollars more than: it has takei?

'body,
v^naw

fa 11
r

short

have
far

our

goal./ Rart of

as!

an annual promise, not as an
annual performance,
And,-for

1 I '• the answer is quite .sgyhile^ it ceased to be even
vcontinqation;
of controls

soundm

Lynde d. Hokerk

wage

and fiscal policies.
I

in.
Millions of our citizens can
remember budget balancing only

Alter 16 years, the budget is
still unbalanced, at least on paper.

Deficits Help Inflation
Many

have

gained

en-

going to discuss Federal
(Continued on page 2499) ? ;.
policy from the point of view of
1
businessmen, but this is the same .4>'*A^^4^assv'of'Mr.':?Hokerk".'fcefam

view

all other Americans have,

all in the

fore the Associated

Industries of

To*

boat.

Kentucky, JLouisville, Ky., Nov. 8;
day's discussion is directed against, 1946,
are

same;

W: announce

American

Telephone &
Telegraph Co.

£aaM

2%% Convertible Debentures

Aai terminated Aib

Due December 15, 1961
<otw

Subscription Rights

tAe

\~ftraabb

firm.
berwice

(when issued)

BOUGHT

—

S03LD

120

Telephone: BArclay 7-5660

■

Company

COMMON STOCK

Vov&mba/t

Nationally Known

PROSPECTUS

49M6

United

"WHIPSTER"

brokerage service

tAve

BRITISH SECURITIES

We render

meinAew

Teletypes NY 1-583

SuHtvan-Waldron Products

Members N.Y. Security Dealers Ass'n

Corporation

BROADWAY, NEW YORK 5, N. Y.

Manufacturers of the

£$tamic $nevmi ^vmmibbion.

QUOTJED

New York Hanseatic

ib entering,

cfl tAe fylmted Sftateb

^wern/ment

Prospectus available on request

me>mAevbAi/i tn

Kingdom 4s, 1960-90

REQUEST

in oil Unlisted Securities for

Banks and Dealers
;
Members N. Y. Securitu Dealers Ass'n
60 Wall
;

Street, New York 5

Telephone: WHitehall 3-7830.

111

BROADWAY, NEW YORK 6, N. Y.

Goodbody & Co.

Members N. Y. Stock Exchange
115 BROADWAY
Telephone BArclay 7-0100

BArclay 7-0570

and Other Principal Exchanges
NEW YORK 6, N. Y.
Teletype NY 1-672

2*464

Thursday, November 14, 1946

FINANCIAL CHRONICLE

COMMERCIAL &

THE

■at
mated

$234,000,000

around

has
rate
base), and after allowance for the
current rate cut, the return on the
(the

rate
in

Consumers Power

:'I

Company v ,<

Commonwealth &■ Southern Corp. announced a
plan for the sale of blocks of stock of two important subsidiaries Jn
its northern group, Ohio Edison and Consumers Power, as well as
some stock of a new southern subholding company which it proposed
to organize.
These would be "new money" issues, the proceeds be¬
ing used for plant additions, but the issues would also serve the pur¬
Some time

ago

■

and

June

selling

Stock

the

around 36.

•

,•<

•

Stressing U. S. responsibility

if.,:

net
$20,000,000
which it expected to sell at com¬
to

Baren

William

Wy-

accuses

mond Cabell of inconsistency in

elimination of controls
to

field of

his

Holds

line

with

the

average

Commercial

Editor,

° "

and
JI I

Financial Chronicle:

greatly appreciate having the opportunity to talk with you
members of the National Foreign Trade Council. Your membership
includes on a®
■
national basis world commerce rather than for¬
the
men
and eign trade advisedly., • We are part
t h e?
institu¬ of the world whereas foreign conAlso
tions,
vitally nonates something abroad.
interested
in trade is often used in connection
individual transactions
the develop¬ with

possible that earnings next
petitive bidding j in September.
I Mr. Wymond Cabell in his re¬
DPe -to the stock market slump year might be a little lower, how¬
ever.
Increased wages were al¬ cent Chicago address urged all ele¬
the sale was postponed, but later
ments of the securities industry to
lowed a year ago and again in
it was announced that bids would
annual
estimated unite in aiding investors, and
be received Nov. 13. The company March, ; the •
amount of these increases aggre¬ restoring our industry to health.
hnd originally hoped to net 40 or
But in his San Francisco speech
better for the stock (after allow¬ gating $1,320,000, or $820,000 after
allowance
for
Federal I income four days later, he makes for dis¬
ing ■' for
banking commissions),
taxes at the rate of 38%.
While unity by devoting a large portion
but "it appears doubtful at this
this would amount to some 20c a of his remarks to decrying the
writing whether this is feasible. '
share, some two-thirds or more of discrepancies which exist between
W. Averell
Consumers
Power Co. is the
the
increase
was
probably re¬ the Federal Reserve I regulations
largest subsidiary in the Common¬ flected in the September earnings that now require 100% margin
wealth system, serving 1253 com¬
statement,. so that complete ad¬ requirements on listed securities, nications,
munities in the lower Peninsula
and loans upon unlisted securites
It is

justment might reduce earnings to
(outside the Detroit around
$2.62.
.
f
■ >' ">
area), with a population of more
A more serious factor is the $3,than 2,255,000.
Electric revenues
amount to about 78% of gross; gas 000,000 rate cut which becomes ef¬
fective Nov. 18.
After allowance
20% and miscellaneous 2%. While
for taxes this would amount to
the area is heavily industrialized,
about 45c a share on the common
revenues
from industrial plants
stock. Usually a utility company
amount to only 29% of total elec¬
tric revenues as compared with can count on recovering a sub¬
stantial part of lost revenues when
42% residential and 25% commer¬
residential rates
are
cut, I since
cial.
The
automobile
and
re¬
customers make greater use of ap¬
lated industries contribute some
of

Michigan

electric

machinery,

„

fh>m the Detroit center.
sult

Consumers

a re¬

has

Power

ex¬

still be

can

used for col¬

revenues,
with pliances. But in the present case
the
company's residential rates
chemical
and
food
are
already so low—abouti: 2.60
companies contributing most of
the balance.
:
a
■..
...i cents per kwh compared with the
national average of 3.28—that the
I
The
area
.has enjoyed
rapid
reduction applies to industrial, and
growth as motor, accessory, and commercial business only.
The
machine
activities
spiraled
out
level of industrial sales, being de¬

38%

which

pendent largely on general busi¬
ness conditions, may not be stim¬
ulated to any great extent by the

ment of Amer¬

whereas

tional

course.

com¬

merce

—

■■

Harriman

tion,

In no
rests on you
shaping of the world to come
responsibility.

inspiring

commu¬

small measure there

and insurance, in fi¬
nance, and, of special importance
at this stage in our economic his¬

The Task oi the

the

for peace

and prosperity.
- y'
States is an over¬

;

United

The

powering force in

the economic

Our

industrial Ca¬

today.

world

pacity is over one-half the indus¬
trial capacity of the world.
We
are an important factor in agri¬
cultural production.
We are a

creditor nation with/ the
to affect significantly in¬
ternational financial and economic
(Continued on page 2498)
>

great

power

United Nations in

Developing International Trade
OWEN*
By DAVID

in this Council have

primary responsibility, in co¬
operation with government, to
take full advantage of the oppor¬
ing, produc¬
tunities we have to develop world
tion and dis¬
tribution
for commerce in the interests of our
export, in own people and of the people of
This is a grave but
transporta¬ the world.

gaged

■

men

manufactur¬

banks.
: tory, in imports.
I
wish to
discuss with you
In asking for cooperation to
eliminate
governmental controls America's opportunities in world
Terms are important
that are inimical to our system of commerce.
private enterprise,- and are of in clarifying the meaning of dis¬
Thus I use the term
doubtful
Constitutionality,
Mr. cussions.
Cabell is on sound ground.
But
*An address by Secretary Har¬
why does he make the mistake
that
has plagued
most of the riman before 33rd National For¬
leaders of our industry whenever eign Trade Convention, New York
they have attempted to arouse a City, Nov. 11, 1946.
united industry to action?
Mr;
Cabell is more' concerned about
eliminating controls that are in-r
jurious to his particular field of
activity, namely listed securities,
than he is in getting at the real
roots of all our troubles WHICH
IS UNSOUND REGULATION IT¬
.

I<'

You

en-

III

signifies the
economic inter¬

commerce

field: of

whole

interna¬

ican

lateral purposes at the

SELF.

controls.

need for both import and export

$2.69. On this basis about

utility policy. I

temporary

sees

injurious

activity.

Predicts larger U. S. imports, but-

Brtiain.

ization and lauds loan to

pleading for a united securities
industry, while asking only for

a pro

about ;in

;

kept: out of domestic politics. Sees opportunities for foreign
investment but urges it be done in cooperation with local interests
and with sound medium of finance.
Favors world-wide industrial¬

amount'

and leadership in restoring and expand-

efforts should be directed against
three-•/
Commonwealth next arranged quarters of the earnings would be
all bureaucratic restraints having
for registration of a block of Con¬
paid out in dividends, which t is Ino
authority in laws. - •
\ ' >•;«
sumers' Power common stock, in
-an

Restraints Removed

•

Secretary of Commerce

Wants All Bureaucratic

forma basis (adjusted for
tax savings and for the increased
Exchange
number of shares) are estimated

currently

I'll

AVERELL HARRIMAN*

By HON. W.

Harriman pleads for support on a non-partisan
basis of Administration's efforts to negotiate reciprocal tariff agree¬
ments and remove trade barriers.
Urges foreign economic policies

these

stock

return."

ing world trade, Mr.

for

value

regulatory

average

Letter to the Editor:

established ■$>
™
stocks, good financial record, having paid
dividends
continuously
for .33
204,153
shares- of Ohio Edison
were
offered by Morgan Stanley years. The present indicated rate
is $2 annually.
Current earnings
& Company at $41.25 a share on
of providing

pose

market

with

Ji'

World Commerce

6.1%, which is

base is about

line

policy on "fair

Commission

Michigan

reported its findings on

not

Ill

■

pended some $37,000,000 for plant
Assistant Secretary-General for Economic
Not only should the Federal
additions during the four years
rate
cut,
although commercial Reserve board be limited in its
ended Dec. 31,
UN official states surest affirmative guarantee
1945.
The 1946
functions, to those which are pre¬
sales might improve.
budget calls for the expenditure
found in expanding world trade, rising
scribed by definitive law, but all
Consumers Power has a clean
of. $15,000,000, and some $38,000,balance-sheet picture. Plant ac¬ regulations of loans that pertain J freedom from "catastrophic" cycles.
OflOt additional construction is al¬
to listed securities which are made
of new International Trade Organization as
ready planned for the future.
In count has been written down to by brokers should be regulated by
mote solution of problems in international
the latest interim period reported, original cost with the exception of the Exchanges themselves, which
about $10,000,000 intangibles and
the 12 months ended Dec. 30, 1946,
consultation and collaboration; (2) preventing
are private business organizations
adjustments, and reserves have
gross revenues were 60% higher
amply capable of handling such
ures destructive of world commerce;
(3)
been set up to retire all but about
than in the calendar year 1939,
matters.
The unlisted securities
industrial and economic development;
and: gross income before Federal | $1,000,000 of these.
Allowing a business should cooperate with
income taxes was higher by 53%. moderate amount for working cap- the listed end of the business to
oped countries; and (4).promoting
Consumers
Power has had a ital, the rate base may be esti- make this an accomplished fact.all countries through expanded production

Affairs, UN.

of. peace- is to be

employment standards, and ■ :t

Summarizes general purposes«•
follows: (1) to pro-:
commercial policies by

I Together

they

should

recourse to meat*
encouraging worldwide:
particularly in underdevel- *
high levels of employment in/
and consumption, and
discriminatory policies. . Gives detailed account

march

through eliminating
of the current preliminary work in

and make an effort to¬
elimination
of
all
bu¬
reaucratic restraints upon our en¬

forward

Trading Markets in Common

Stocks J

into the
following categories: : All future
rules and rulings which are de¬
vised
by. any
bureau without
benefit of specific authority in
law.
Any rule or edict that can¬
not be put into definitive law,
and that relies upon the discre¬
industry which fall

tire

Rockwell Manufacturing Co.

♦Bates Manufacturing Co.
Bausch & Lomb Optical Co.

♦Crowell-Collier

,',

♦Thomas Steel

. {..

-a,"';; .* ,*•»?»
*

Transmission ;

U. S. Potash

Liberty Aircraft Products
V:|. '•»!#-*/f * »♦>' -*

Tennessee Gas &

* t

•''

Prospectus on Request

tion

henceforth

Paine, Webber, Jackson & Cimis

1879

asked to talk to you about
in developing international trade. I
do this, for 1$

I have

Nations

have

tory

Until

united

Deep Rock Oil Common

;

Munson Lines "C" Pfd.

Com. & Pfd.
E. Staley Mfg. Common

are

Gilbert J. Postley &
29 BROADWAY,
•

Direct

Co.

NEW YORK 6. N. Y.

WILLIAM S. BAREN.
42

New York

City.

With Prescott Wright
(Special

The

Howard

associated
Wright, Snider Co.,

916 Baltimore Avenue.

V-

—

still

not be able
David Kemp Owen

you

tions is to save

all know, the
of United Na¬

succeeding genera¬

the scourge of war. But
Charter
is not
concerned

tions from

the

merely

give you
the complete

progress

through

international co¬ ■l/I--v;

with the prop¬
of stabil¬
ity and well-being are necessary
for peaceful and friendly relations
"I'll;
among nations, the Charter lays
wl',1
upon
the United Nations very
positive and specific obligations II
to achieve international coopera¬
tion in solving international eco¬
nomic problems. Thus it provides
that United Nations must take ac¬

operation. Starting
osition

that conditions

f. '*•

■

story at this time it
be of some interest

will, I think,

to the mem¬
Convention to hear
about some of the main points un¬
der discussion and various views
that have been expressed.«
I
might begin with the rethis

Chronicle)

MO.

D, Roberts has become
with Prescott,

Wire la Chieego

Financial

KANSAS CITY,

purpose

to establish a negative
peace.
It looks forward to the
establishment of a peace which is
sessions in
London.
And not merely the absence of war,
while I shall but an era of economic and social

bers

Broadway,.

primary

holding

itself

seeking.

which

the

Robbins & Myers
A.

government

tasks within this

Charter.

Employment,

take the larger view

greatest enemy of
our
country as well as a virile indus¬
try, we will never accomplish
these larger benefits which all of

;;

Commit¬

t»3rnational
Conference, of
Trade
and

unsound

mainder that the

of the In-

tee

that

United

particularly glad to

particular field are only a part of
meetings
of the very large economic respon¬
which United Nations
the Prepara¬ sibilities
has •- under
the
San Francisco

opposition of our entire industry
until said ruling is driven out of
existence.

recently

returned from

government, should

meet with the

the task of the

been

judgment of any appointed

official of the

ESTABLISHED

London.

ward

♦An

Mr. Owen be¬
National Foreign Trade

address by

fore 33rd

Convention, New
11, 1946.

York City, Nov.

promote higher standards
full employment and
(Continued on page 2480)

tion to
of

living,

THE COMMERCIAL &-FINANCIAL CHRONICLE

.Volume 164 " Number 4542-

2465

Redeem
J.

Investments Abroad
LUCKMAN *'f

{'.

■■'

(J;President, Lever Brothers Company

higher living
Sees aim as
*100% increase in real wages and living standards, together With
guaranteed annual wage, pensions, and other social security bene¬
fits.
Calls upon industries to cease opposition to social legisla¬
tion and take active part in promoting workers' welfare in order to
expand their markets. Contends active propaganda against Com:
munism and other ideologies has only negative effect, and denies
V his theory is "blindly idealistic."
•'

Industrial executive
standards and

•

business actively to promote
social security for employees.

urges

I would be less than honest with you

what has happened to me could only
-

if I did not say to you that

happen in America, the land of

opportunity.^

•.

—

Belgian Bonds

Morgan

Co.

{

and

Inc.

Guaranty Trust Company of New
York, as Sinking Fund Adminis¬
trators, are notifying holders of
Kingdom
of Belgium * External
Loan
30-year sinking fund 6%
gold bonds due Jan. 1, 1955, issued
under

dated

contract

1924,

Dec.
f6,
principal

$2,346,800

that

amount of these bonds have been

drawn by lot for redemption and

payment at the principal amount
thereof

Jan.

sinking fund

1947, out of
The drawn

moneys.

bonds will be paid at the office of
J. P. Morgan & Co. Inc., or at the

principal office of Guaranty Trust
Company of New York. The no¬
tice further states that

on Nov. 8,
1946, $117,100 principal amount of
these
bonds
previously
drawn

still unredeemed.

were

have gone to
the Capital of

the usual format of my speeches
and discuss with you what I be-

SCHENLEY DISTILLERS CORPORATION

our

lieve to be the crucial
facing business, small,

problem

NOTE—From time to time, in this space,

nation, I

have repeat-

edly been impressed by the

. medium
'&?■
'
'
\
It occurred to me this morning
as I flew into Chicago that fortythree years ago this month, Wilbur
and Orville Wright—by the grace
of God and a;longhaiidled spooni
—managed to get their first flyjng machine into the air.-.•;?*

and large.

BEverytime I today I am going to depart from
Washington

Monument,
built of stone,
as

you

may

know,contrib-

uted by.nations over the
face

the

earth to honor
the founder of

Charles Luckman

this Republic,
know, {from Arlington
across the river, where sleep the
men
who died for freedom,' it
looks like a giant spike which
God Himself might have driven
into < the earth saying, "Here I
And

stake

you

claim

for

the

home

Many

concerns

Americans. This is number 146

The Changing
.J

■■■-./.-.TH'?.

Trend

By MARK MERIT

started during the last ten
If you will look at the airplanes built during the first dec*

It has been sometime, now,

were

years.

ade of flying, and compare them
with the huge four-motor trans-

ports of today, you will see the
potential measure of v your own
growth. Whether or not you are
able to realize this potential deof pends upon a variety of circum-

this towerlet of type
on

(Continued on page 2488)

the subject

since

has touched

of blended

whiskies!1

A number of inquiring letters on
the subject

haps,
in

should tell

blends,

our readers of
think that, per¬

from

late, makes

what

part,

about j

perhaps repeat, at least

of whiskey.,

have already

written about this

.■

Chicago, 111., Nov. 7, 1946.

of a series.

SCHENLEY DISTILLERS CORP.

■

stances, several of the most imI feel so deeply about this that portant of which I should like to
examine with you today. Now this
*An address by Mr. Luckman must be done on a factual basis,
before
Super Market
Institute, because I am only a manufacturer
1

advertisement which

appear an

hope will be of interest to our fellow

of r you here represent
which, for the most part,

liberty."
■■m

there will

particular type
;

1C|

•

.Unquestionably the trend to the

increasing preference for blended
whiskies was thoroughly estab¬
lished before the war; before the
critical shortages

Hasten

European. Reconstruction
And Trade

in the "heavier"

types of whiskies

developed. Now,

find that many people who had

previously very much preferred
straight whiskies and bonded whis¬
kies, and who have recently been
now

admit

been

blended

partaking

whiskies,

that they had really

"bucking the trend ,"/And

considerable number, who had

ex-

preference for the heavier

pressed

types,

now

that they shall

say

probably continue to partake ofj
the lighter forms of whiskies, even
though the heavier types come <
back on the market a few years !

hence.;
Truly,

we are

living in

an age

blending and truly, blending is an
art, Most of us have a decided

for a certain brand
Worcestershire sauce, or apple pie for that matter, and
for cigarettes too, Rarely, do we
find anyone who is greatly con¬

taste preference

ketchup

cerned about the identity of the

"ingredients,"

long

the qual-!

city Of those ingredients is all that
it should be. Our taste-buds are
the monitor—and the

human

race

long before
it knew how to read. It's a good
had these taste-buds

idea to heed the monitor*
that
an

humans

can

read,

Now
have

added advantage. We can know
makes the

who

product

best, and we can remember the
name

that

we can

continue^ to

buy it again and again and enjoy
its uniformly good taste.

?%■
{ 96-Page Book
containing reprints of
earlier articles on various

subjects.

Mail coupon to

MARK MERIT OF

SCHENLEY

DISTILLERS CORP..
18 A.

350

Y. 1.

Street.

Filth

N. Y.

Dept.

Avenue.

THE COMMERCIAL & FINANCIAL CHRONICLE

lator Products;
bama Mills.

CARTER H.C0RBREY&CO.

Dealer-Broker Investment

Member, National[ Association
of Securities Dealers

Mlddl. West

to send interested

For

parties the following literature:

Automatic

MARKET

SECONDARY

135 USaNe St

650 S. Spring St

market—John
14 Wall

Michigan 4181

State 6502

dena

Corp., 234 East .Colorado
including Street, Pasadena, Calif.
the
stock
Lewis
&
Co.,
Abitibi Power and Paper Com¬
and

Street, New York 5, N. Y.

Ltd.

pany,

—

memorandum

—

Do¬

minion

Bausch

Securities Corp., 40 Ex¬
change Place, New York 5, N. Y.

Analysjs of

ait,

-ri

Lomb

statements—bulletin

with

Optical

Acro-Chemical Co.—New

mem¬

available

BeU

are

Lumber

analyses of j
Co.,
and
,

Indiana

■'

—it

Co.

r/'.: 7;- i."" j/'- ;7 7
available is a circular:on *

Also

Queen Anne, Candy Co.
-7

./■; >;7.:7;7

London Terrace

memoran¬

Watch

Products

—

4, Ilk

Bird & Sop, Inc. -r-- memoran¬
dum—Buckley
Brothers,
1420
Walnut
Street, Philadelphia
2,

Gruen

;

interesting sltu- t
Brailsford &
Co., 208
La, Salle StroeV Chicago -»

ation

Steel

Memorandum
Sou th

are

Co.—

American Service Co.

da,

Also

Long

14 Sall^^Btre^f,- Chicago 4. Ill
Also available is a circular on

Also; available^

—

Circular*

—

Seligman, Lubetkin & Co., Inc., 41:

Company

Broad

and

Street, New York 4, N7 Y,
Long Bell Lumber.
orandum—Greenfield, Lax & Co.,
Also available is a circular :on
Inc., 40 Exchange Place, New
Commodore Hotel, Ino,
Boston & Maine Railroad
' v
Bros., 32 Broadway, New York 4,
York 5; N. Y.
'
Circular
N.Y.:7''7:7'777Walter J. Connolly &
Also available is a new memo¬
Co., 24 Federal Street, Boston 10,
Los Angeles—Special study of
randum on; TJnited^ Utilities 'Spe¬
Mass.
Income Tax Problems
Chart
the City- which is entering a new
cialty Corp, ;
•
■ 7
■.. • '
and guide — John J, O'Brien &
growth phase—Maxwell, Marshall
Central
Public
Utility
5H* & Co., 647 South
Co,, 209. South La Salle Street,
Spring Street,'
American Insulator—^Memoran¬ of '52 and Consolidated
Electric Los
Chicago 4, 111.
•
Angeles 14, Calif;
; •
dum—Peter
:| v
Barken, 32 Broad¬ and
list of suggested stocks for income
and capital appreciation—Strauss

Hfc favq

Alarm— memoran-.

Circular—Adams & Co., 231 South

lenge to the barrage of pessimis¬
tic

Manufacturing

Analysis—Comstock

Co., 231 South La Salle Streetj
Chicago 4, 111./ 7,/;7/77,^-

011

Guide to the Perplexed—a chal¬

LA 255

finances

opinion

monthly

LOS ANGELES 14

CHICAGO 3

airline

J DISTRIBUTION

Comments

—

Press

YIMler^Manufacturing Co.

^
;/|J7

UNDERWRITERS
Aviation Bulletin

Hydraulic

Co.-^Detailed

dumr—Mitchell; & Company, 120
Broadway, New. York 5, N. Y.

It is understood th-at the jirms mentioned will he pleased

Pacific Coast

-T-

Upson Corp.;, Ala¬
' •v'7.77 ....;7v'.7

Recommendations and Literature

Wliol«sale Distributors

■/

Thursday, November 14, 1946.

—

Universal Zonolite

—

Insulation ;|§f|

■

Gas ,Pfd. 7-H,

Copy

request,

on,

way,

CASWELL & CO.

Brief Analysis of Dela., Lacka. &
Western — Morris & Essex Col¬
lateral

120 South Let Salle Street

4-6s

issue

CHICAGO 3, ILL.
Phone Central 5690

CG 1122

Tele.

2042—in

"Railroad

the

•;'.':7'a7"

TRADING MARKETS

Quotations"-?-!!, W; Pizzini & Co;,
25 Broad Street, New York 4, N. Y.

Common

Chile Ago North

Shore & MUw.

Ry. Common (New)

sis is

primarily

•

£• •:'--.f;y

Also available are data on: Bar?
calo Manufacturing Co.; The Com¬
mercial Shearing and
Stamping
Co.; General Machinery Corpora¬
tion; Golden Crown Mining Com

— Detailed
study of
industry analyzing from the
viewpoint of those whose empha¬

—

and analysis in. brochure
form—Fred W.: Fairman & Co.

Co., Inc., 40 Exchange Place, New
York 5, N. Y.

Other

the

Northern Indiana Pub. Serv.

-,i

JRiggins, Inc.;

Highlights of Wall

nation se-.
Street;
O'SulIivan
Rubber
Co.;
curity and the viewpoint of those;
Plastics
Materials: Corporation;
who approach a discussion of pe¬
Silver Creek Precision* Corpora^
troleum from the technical and
on our

tion.

economic

prospects

—

WilliamA.Fuller & Co
Members of Chicago Stock Exchange

209 S. La Salle Street

Chicago 4

York
•"

Tele. CG 146

5600

Ask for Our Chart and

■■■".'

•••'.:

;1,1

>■

'/<•

■'■■■V

" '

//.>:l/;

;/7777// :v7'.'7:7'7.;.j. jf/77:■ 7^:777/ v4,.
Railroad

Lewis Machine

Guide

Tax

problems^,

John J. O'Brien & 60.
York

Stock

Exchange

and other principal exchanges

209 S. La Salle Street

Trinity Place, New York 6, N>_ X..

Chicago

Shore

North

Mil¬

7; /:

Ran. 8161

''-ft

waukee. Railway Co.-r-Brief mem¬
orandum

1,1

Northern

-77.,-,

'J'":

Brochure

ing

ratios

Stearns &

York

containing

price-earn¬

yields

and

Aspinook Corporation—Circular

—

—Ward

Bear,

—

5, N. Y.

Also

Co.,

120

available

V'•

* ^

Serv-

Broadway,
memoranda

W. L. Douglas Shoe Co.; Hart¬
ford Empire; Lanova Corp.; Mo¬
—

hawk Rubber; and Taylor Whart¬

Details of the controversy between

Columbia

Study of

Gas

Electrics-

the

situation—Edward
A. Purcell & Co., 50 Broadway,
New YoHc 4,*N. Y. ^
;
7

and. Arizona

Iron & Steel; Barcalo;

Pasa¬ American

—.

Snap-On Tools Corp., Com.

'■

Window

Haloid;

Glass;

Puro-

*Prospectus Available

..,7.7'...

v:.

Columbia Gas & Electric Corp.
Parker Appliance Co.—Descripr*
—Analysis — L. F. Rothschild &
tive analysis—du Pont, Homsey > *
Co., 120 Broadway, New York; 5,
Co., 31 Milk Street, Boston 9;'.i
N,X r
1
'
^
Mass.
7/7;-k" 7"7,-. •'
.

Connecticut Railway & Light¬
ing
Co. — Circular — Adams
&
Peck, 63 Wall Street, New Yorh 5>

PettibPne Mullikcn

letin—Doyle,

Corp.—Bui-

O'Connor

Co^

Inc., 135. Bouth La Salle Street
Chicago 3,111. " ;
7 Si3
Fred 1L Prophet Company—De*
tailed

memorandum—De

Larson

National

Young,
Tornga, Grand Rapids
Building, Grand

Bank

Rapids 2, Mich.

Greyhound Corporation—Circu¬
lar—Hicks & Price, 231 South La
Salle

Street, Chicagor 4, 111,

The

Chicago

Muter-Co.

Public National Bank & Trust 7
Co.—Analysis—C: ~ E? Unterberg
& Co., 6f, Broadway, New York 6, 7
*

77**,;:

■/;../.v.

i-r'■

■

•

r'v

Established

Common
-

,r' :' 'i■'

1916

Rockwell

N. Y.

Manufacturing Co.-~;

(Continued,

vu;"7-

Chgo. No. Sh. & Milw.
Ry. CQ.

page

Exchanges
Chicago Board of Trade 77
"

Common

Stock

ADVERTISING

Stock

•

■

Prospectus

'■■■ ■'

r::

Request

;

Members Chicago Stock

Exchange,

Private

Wire

WfflTE

•-

208

CO., New York

S, La Salle Street

CHdCAGQ 4
Tel.

State

^'7

'?*■v<*, V-

Guenther

Telephone COrtlandt, 7f 5C6CM*

SINCE19081

Fred,W. Fairman Co. |

INTERSTATE BAKERIES CORP. Common & Preferred ?

Utility
■■

■

Recent

DEEP ROCK OIL CORP. Common

Central Public
5^'s of '52

We Maintain Active Markets in

NORTHERN STATES POWER CO. 6% & 7% Preferred*

Analyses

analyzing

SALLE

H. M.
ST.

Telephone
Direct

Private
Bell

Randolph
Wire

System

4068

New

CG.

135 So. La Salle Street, Chicago 3

York

Telephone

for the

Common Stock

Standard Silica

MIDWEST

Corp.

Stock

State

8711

Teletype

FAR0LL& COMPANY
Member

New

York

Stock

Exchange
and other Principal Exchanges /

208

273

So.

Salle

Philadelphia

Pittsburgh

Minneapolis

Phone

Andover

1430

Members
Members

Tele.

New

York

Illinois

Security Dealers
Securities Dealers

Ass'n
Ass'n

Board of Trade Bldg., Chicago 4
Telephone: Harrison 2075

St.

CHICAGO 4
New.York

MARKETS

STRAUSS BROS,

Byllesby and Company
Incorporated

CHICAGO 4, ILLINOIS

NEW YORK

Brochure

these Bonds,

SOUTH LA

Request

Merchants Distilling Corp.

Common

208

Teletype CG 129

'xf, vi
:

Boston Chicago Philadelphia, San Francisco n

77;7. CG

9868

.;•!

Prepared~Conference

;7-/.v ■ • - Incorporated. 7/7//, .>7:'r*>r,4
131 Cedar Street NewYork 6, N, Y« . /

209 SO, LA SALLE ST., CHICAGO 4, ILLT
"A '
7-u'Teletype CG 864

Telephone Dearborn 1421
Direct

All Jts; Branches^

.Albe^ Frank

Braifeford & Co.

INCORPORATED

>); i

Plans

SILLS, MINTON & COMPANY

Tel. Franklin 8622

Teletype CG 405
Indianapolis, Ind.
Rockford, 111.
Cleveland, Ohio

;

2468);

FINANCIAL

Members Principal Stock

So. La Salle St., Chicago 3

-77-?

Analysis—Steiner, Rouse & Co.,
25
Broad Street,; New York; 4,

Street, New York 5, N.Y,

$1.05 Convertible Preferred*

Paul RDavis 6c Co.

•

Ralston Steel Car Co, —, Circu-* 7/
lar —TLerner & Co., 10 Post Office ;

are memoranda Square, Boston 9, Mass,
Corp. and The7;7;:"7.7 /_^v7;::

Gulf, Mobile. & Ohio. RailroadAnalysis—R. H. Johnson. & Co.,
64 Wall

$2.10. Cumulative Prior Preferred*

Request.

'/r

^ 7.

Maryland Casualty Company

Seismograph Service Corp., Com.

our

Primary Markets
v.'7

Cribben & Sexton Inc., Com.

for

;

Pan American Airways Corp.— <
Study—Sills, Minton & Co., Inc^ 7
209 South La Salle
Street, Chicago v
% lii.
'

*Welh-Gardner & Co., Com.

Write

Icq Company—recent. analysis-^Co., 208 South La Salle Street;
Fved W. Fairman & Co., 208 South
Chicago 4, 111.
Ln Sallq Street, Chicago 4, 111.
&

Also .available,

are

CG 22

California

New York 5, N. YV

Co., 1 Wall Street, New

Water of the Colorado River

0.,

Indiana Public

outlook—Brailsford

Topi Co.; Jefferson

Common

Stocks, Present Earning Power

Chicago

■

4, 111.

—

New

Nathap Straus-Duparquet, Ind*
-r-S!tudy of history and outlook-4Troster, Currie Sc Summers, 74

Street, Chi¬

Industry—Present 'condi¬ Electric Co.; Kern County Land
General Manifold &
priijtipg
tions
study — Kalb, Voorhis & Co.; Langendorf United Bakeries!
Co.—Bulletin—H. M. Byllesby &
Co., 15, Broad Street, New York Class "B"; M. Lowenstein & Sons,
Co., Stock.' Exchange Building,
Inc.; National Automotive Fibres,
5, N. Y.
Philadelphia 2, Va.
Inc.; Portsmouth Steel Corp.

Utility Operating Co.

777

Salle

Shoe

W&V —7-IISiSrS

Members

cago

7;Art Metal: Construction pp. I
•
Stocks-^Study of im¬ Special report — Walston, Hoff¬
proved position—|I. Hentz & Co., man & Goodwin^ 265 Montgomery
60 Beaver. Street; New York 4,
Street, §an Francisco 4, Calif.
Federal Water & Gas—Anajysis
rf.
^ Also
available ' are reports on —Ira, Haupt &
Co., Ill Broadwayf
7
Also available is an analysis of California Cotton Mills
Co.; New: York
6, N.> Y,
General American Transportation Chrysler Corp.; Detroit Harvester
7 Also available is a
study of New
Corp.
Co.;, Divco; Corp.;
& England Public Service Co.
Giddings
■

Tel. Dearborn

5, N. Y.

208. South

standpoint—summarizes:
of the industry\
Appleton .Manufacturing Co,
and
contains
individual'"surveys
of 38 of the leading oil companies Detailed memorandum
Bennett,
—Merrill Lynch, Pierce,
Fennerj Spanier & Co., Inc., 105 South La
6 Beane, 70 Pine" Street, Newt Salle;Street,.Chicago 3, 111;
; 7""*
future

Comprehensive

study

American Phenoliq' Corporation
—Memorandum—J. F. Reilly &

current

and

' •'

7 Petroleum
—

New York 4, N. Y.

Situation-

Liberal-Yield Bond

150

Direct -Wire-to

New -York

Office

THE.COMMERCIAL & FINANCIAL CHRONICLE

Western Pa. IBA

Illinois Brevities
•

•'

to shorten the average life of,new term loans to industry and a stiffer
attitude being shown by some Loop banks toward revolving credits.
In general, banks that have been tightening term loan arrangements

less restrained; on standby .credits.

are

■

>■

sylvania

loans

Indiana

o.<$>—^

Oil

Standard

arp

B.org-Warner

Investment Bankers

was

elected:

.......

rf-

Association

Active Trading Markets in

America, the

Bausch

^
:

Common Stock

American Service

Company
Pfd., Class A and

reluctant to freeze the price of for sale 97 pieces of nonoperating
lengthy pe-1 real estate, valued at approxiwhen all their expenses are mately
$1,040,000.
It was :de-

Common Stocks

their .product over a
riod

Lomb

Optical Co.

'•

■

Secretary-Tre^surer-r-Owen Kraft, Blyth & Company,

■

Vice-chairman—L. W. Voigt, Hemphill, Noyes & Co.

' '";:—"

Corp. Group 1 of the Illinois Bankers
Banks.now are edging away from Association.
' ^ ;
.v; i :.
10-year term loans and seeni 'to'
The Chicago Rapid Transit Co.
prefer ,three, five or seven-year
credits. .' One official said banks (elevated) was authorized to offer
and

recent meeting of the Western Penn¬

Chairman—N. K. Parker, Kay; Richards & Co.

./The low point in interest rates seems to haye been reached in

recent

Group,

following slate

;

Group Elects New Officers

PITTSBURGH, PA.—At

Talk in Chicago banking circles recently has concerned, the trend

scribed

increasing.
t

Opinions

national

policy

by ,two weU-known executives
Jhere occasioned comment. Sime¬
Federal

«cagoj

Bank

Reserve

agreed

with

•omists that the

other

econ-

government

was

almost helpless to combat infla¬

tionary

pressures.

oral

attempts to

~and

prices

He said Fedcontrol wages
inadeauate

were

from their beginning in 1942.
'

He said the ineffectiveness of

Federal Reserve Board controls
1-was indicated
ume

by the high vol¬

of credit

■

Senator Taft

Chi-

'vMi'

■

(R., O.) and Sec¬

Agriculture Anderson
addressed Chicago- audiences re¬
cently. The Senator predicted an
economy Federal budget of $25,000,000,000 to $30,000,000,000 ih
the
next two
while Mr.
years,
Anderson
said
farm
prosperity
would
provide business with a
hedge against depression for sev¬

231

Also

w. ypigt

.elected

Owen

Kraft

;

ILLINOIS

PHONE STATE

0101

M. M. Grubbs

to the Board of Governors for three years were;

J; C. Chaplin, Chaplin & Co.;
M- M.

Aeronca Aircraft
Corp.

.Grubbs, Grubbs, Scott & Co.

Baltimore Transit Co. Pfd.

Chgo. Auro. & Elgin Ry. .Units

Cabell,

Wymond

^ice^P^esi&eht

President

York, told the 15th mid-continent

Mississippi Valley Group of

Firms, took issue with Marriner

trust conference of the American

Bankers Association that the gap
Between United
States
exports
^

imports/could be bridged by

foreign investments and loans.
Foreign trade, he said, must be'a
two-way exchange of goods and
-

SALLE STREET

TELETYPE CO 361

£e Association of Stock Exchange

services.

CHICAGO 4,

eral years.

of the National City Bank of New

and

SOUTH

retary

Available/"'

^Vilbfert

Request

ADAMS fi- CO.

the

Circular

estate history.
>

^Chairman

Leland,

the largest number of
pieces to be offered for
sale at one time in Chicago real
as

real estate

Chairman of the
nf ,hp

Eccles,

Reserve Board

Federal
Ff*Hprrl,

address

be¬

ST.

Howard
*

LQUIS, MO.—At the annual election meeting of the Missis-

sippi ValJey Grbup of the Investment

Old

Bankers Association of Anjer-

the Chicago .Association of fca, held Oct. 30, ,1946, the following officers
Stock Exchange Firms.; He criti¬ the Tiscal year 1946-47: "
^
cized a statement by Mr. Eccles to
the effect that the decrease in se¬
curities market values represents
fore

were

elected to

serve

rehabilitation.

for

Corporation

Mastic Asphalt Co.
*

Miller

Manufacturing Co.

Seven-Up Texas Corp.
St. Louis Public Service Co.

Trailmobile Company

Ben Coal

Long-Bell Lumber Company

constructive• factor i in 'national

Industries, Inc.

Hydraulic Press Mfg. Co.

•-'

•:

"•

"l .>•'.

%•';

'• •-.v

This,

year's Christinas buying
season vin ChjtcagoVwill ring up. a

*Detailed

lie said* "Mfr Eccles appar¬
ently belongs {to that scbppl of

tecord dollar sales volume, but

Jy values jyreate ...economic con¬

request.

thought'which feels that securi-

many retailers are worrying that
it may be the last of the "bonanza"

analysis available

seasons

buck

for

& Co.

while.

took

Sears, Roe¬

CONISTOCK & CO.

reflect

than

Chicago 4

them."
231

occasion

the

rather

ditions

So. La Salle St.

Dearborn 1501

mail the largest Christmas catalog
ever issued by the company. This

240-page affair includes a 55-page

its 30th anniversary last week and
Paul H, Bay is, -sepior; partner and

toy section, largest since 1941.
t ' ^; j /
f

| The \yar Assets- Adniinistration

•

Teletype CG 955

Paul H. Davis & Co. celebrated

of Middle Western companies are

at Chicago began work on the last
lialf of its war plant disposal job

t>y .unveiling a large j^a^t of some
2&6Q0,000,000
in
real ■ property
■Which it hopes to sell by the sec¬
ond

this 'area

.centered

was

turning to LaSalle Street for in¬
He said the Chi¬

Stock Exchange has reached
high point in its development.

cago
a

Chapin S.
'

Newhard

Bert

Horning

Commonw. Securities Inc.

S. Newhard, Newhard, (?ook ,& Co.,

VicerChairman—Bert H. Horning,

Stifel, Nicolaus & jCornpany,

Secretary-Treasurer—Walter J, Creely, Goldman, Sachs & Co.

JERSEY

struggle between the Tucker Corp.
and the National Housing Admin¬
istration
for
the
huge
former

CITY, N. J.—Com¬
monwealth
Securities,
is
Inc.,
being formed with offices at 921

JDodge-Chicago plant.
An important transaction was
the
governmentpale of the

Bergen Avenue to engage in the
securities business. ^Officers arP

„

.........

Francis

in
Fast Chicago for $13,250,000 to
Inland Steel Cp.
The price W.as
VP $1,250,000 from the company's Treasurer,

owned

blast furnace property

previous bid, rejected by WAA,

man

4he
.gear

Corp.,

Hupp

^Black Hills Power and

Trading Markets

disclosed

firms

for

Hupp

Minn. & Ontario

T. HI Golightly, President of the
National Bank of Commerce and

the'' Citizens

National

Oroville

Bank

Chicago, was elected President of

Rhodesian

*Sio>ux

.Chicago

with

way

exclusively.

'^1/

Bought—Sold-—Quoted
*

Ft. Wayne

jPpwer Company

Dredging
Chicago..

New York

Boston

;

"Prospectus on Request

135

| :v
Omaha

Incorporated
Salle

Street

CHICAGO 3

jca

Minneapolis'

South La

530

Central: 7540

Rhodesian Selection Trust

FOUNDED 1913

San Francisco Mines

principal financial pentera

■

(Mexico)

Steep Rock Iron Mines

M?KINNON

Vicana Sugar Co. 6/55

DEEP ROCK OIL ". A

HALLIC RAFTERS

THOMSON k

SECURITIES

•

1 Vicana

COMMODITIES

231 So. La Salle St.
Chicago 4

Scophony, Ltd.

Sugar Co., Common

jZ'jJJ?-'* C. G. Conn,
v.

;

Consol. Dearborn Com.
Hearst

■

ZiPPIN & COMPANY
Specialists

iMembers New York Stock Exchange and other

Foreign Securities

DOYLE, O'CONNOR & CO.
'

INCORPORATED

Class A

STRAUS & BLOSSER
:

208 S. La

principal exchanges

JEFFERSON ELECTRIC

-i

NORTHERN INDIANA PUBLIC SERVICE

IGreiss Fleger Com.

Pickering Lumber Com.

Branches in 35 Cities

Salle Street

Chicago 4, Illinois
Randolph 4696

CG 451

;
.

•:

CHICAGO 3, ILLINOIS

Telephone: Dearborn 6161

Members New York Stock Exchange
Members

135 SOUTH LA SALLE STREET

Chicago Stock Exchange

Associate Member New York Curb

; 135 South La Salle St., Chicago 3, 111.

Teletype: CG J20.9

Direct wires to our offices in

Rhodesia Broken Hills

!====£,

;

E. H. Rollins & Sons

:J,

request.

Milwaukee

Common
»

A,CAIJYN«roCOMEANY
Incorporated

Steel

Seismograph Service Corp.

l„" v, J'

Paper,fCom.J

*Jessop

Cpmiipon. & Preferred

City Gas and jElectrie Company
\ ? v, '-xl\h v
f
$0jf
*?r9spectus QVQilabh upon

Corrugated

Paper Com.

Company

United Public Utilities Corporation

Anglo American

them

serve

Company

Gaumont British; Pictures

under¬

120 South La Salle Street

*Ppblic Service Company of Indiana, Inc.

Fresnillo Co.

turing Co. plant and properties.

but

Company

Central Illinois Electric ond Gas
Indiana and Michigan Electric

Northern States

Cinema Teleyisiop

the American Gear & Manufac¬

i FLOYD D. CEIIF CO.

Minnesota Power and Light Company
Northern Indiana Public Seryice

Brown Co. Com. jc Pfd,

all
capital stocks of Amgears, Inc.,
and through Amgears acquired
purchased

company

compete

dealers,

Iowa Electric Light alid Power
Company
^Iowa Public Service Company Z.
2

•-

Abitibi P. & P. Co. Com. & Pfd.

of $1,250,000.

exclusively

Company

with T. I. S.

acquisition of two Chicago

camount in excess
The

are

own,

PU BLIC UTI LITY PREFERRED STOCKS

S. Hnudsen, .Chair¬

William

All

Management Corp.

specialize

writing and distribution of securities,
providing investment dealers >vith at¬
tractive issues for their
.clients. Main¬
taining no retail department of our

Correspondence invited.-

Hay, President and
Treasurer;
Howard
E.
Norris,
Vice-President and Secretary, and
Joseph
M.
O'Brien,- Assistant

Serving Investment Dealers

.Walter Creely

Chairman-^-Chapin

Incorporated.

the

increasing number

vestment capital.

Attention in

quarter of 1947.

took the occasion to

founder,

remark that

'•

-Tpl. uANDover 5700

-Tele. CO €50-651

THE

COMMERCIAL? &:,FINANCIAI. CHRONICLE

Dealer-Broker

Recommendations !
(Continued from page 2466)
Scneniey

Corporation

Distillers

—Brochure of articles they havt

Broadway Motors Building, New York, N. vY.
First Leasehold. Fixed and Cumulative Income 4-6%
Bonds Due Feb.

•

the

and

the

on
a

new

General

the

bonds

assured

lease negotiated with

Motors

Corporation

this
corporation
has
to continue its tenancy
April 30, 1958.
The lease
term is from May 1, 1948, to the

South

The

income.

annual

provides that the tenant
cel

terminate

and

•

lease

SECURITIES

the

terms

1. Payment of
2.

QUOTED

United

Southard
with

States

Caswell

Salle

Street,

The

Financial

has

o&ronicle)

Samuel

—

affiliated

become

Allen, Swift & Co.,120 South

La Salle Street. Mr. Southard

4% fixed interest.
of

Sinking

fund
provisions
$100,000.
3. Payment of 2% additional

SOLD

(Special

ture, net income of the property
is divided as follows:
BOUGHT

Insulation Co. the

CHICAGO, ILL.

the inden¬

Southard With Allen, Swift

feet, by giving notice not
later than April 30, 1951, and pay¬
ment of a penalty of $125,000.
the

circular

Analysis of Uni¬

—

Co., 120 South
Chicago 3, 111.

square

Under

largest producer of vermiculite in

April 30, 1953, with respect to any
portion of the upper 14 floors pro¬
viding the portion cancelled shall
not
exceed
120,000
contiguous

REAL ESTATE

Vermiculite

versal Zonolite

may can¬

the

available

Chicago Hardware Foundry Co.

also

lease

—

Co., 120
Street, Chicago

Salle

Also

$750,000 per year for 270,000
square feet of space.
In effect,
therefore, ' the'; General
Motors
Corporation provides the building
with approximately 60% of its

Caswell

—

3, m.

rental

't'

Mich.

Analysis

until

—

Universal Zonolite Insulation

agreed

report—Mercier, McDowell
Dolphyn, Buhl Building, De¬

troit 26,

date

York

Sheller Manufacturing Corp.

;

aforementioned

New

Recent

years

terest

care oi
Corporation

Avenue,

Fifth

n.y.

York,.at Columbus Circle, and occupying the entire block bounded
by Broadway, Eighth Avenue and 57th and 58th Streets. The ground
lease runs until
1962, and is renewable for two periods of 21

under

Merit, in

Distillers

350

1, 1948

each.
-v';
,;V.
•
Continuing income to the cor-<®>
poration and payment of 6% in- whereby

Mark

Schenley

secured by a first mortgage on the

are

running in the Chronicle-

write

leasehold
25-story office building located in mid-town New

These bonds
estate

been

was

previously with the Financial De¬
velopment

Co.

and

the

past

with A. C. Allyn & Co.
cu¬

mulative interest.
4. Balance to

Mayburn Landgraf V-P
Of Indpls. Bond & Share

sinking fund.

In addition, deferred interest in
the aggregate amount of

gether with

SHASKAN & CO

40 EXCHANGE PL., N .Y.
Bel#

event, at

the

Dlgby 4-4950

Uktypo NY 1-953

payable out of net earnings,

in any

Members New York Stock Exchange >
Members New York Curb Exchange

value

INDIANAPOLIS, IND.
burn F.
a

—

May-

Landgraf has been elected

Vice-President

and

Director

maturity or prior

redemption of

This places

15%, to¬

bonus of 5%, shall

the bonds.

the bonds,

maturity, of 120.

that

Assuming
extended

bonds

the

due

when

are

1948

(al¬

though there is a strong likelihood
that

Firm Trading Markets:

they

be refunded), the

may

building's current rate of income

California & New York

will permit the liquidation of the
entire

bonded

Real Estate Issues

Motors

issue
Retired

J. S. Strauss & Co.

issue

EXbrook 8515

Details of

$6,000,000

;

reorganization

1,235,500 the Indianapolis Bond and Share

time

re-

are

;

$4,764,500
fund

{sirice

•;

2,126,000

;

Outstanding

organization

by sinking
reorganization

Mayburn F. Landgraf

.v,

Retired

prior

prior to

1936

Outstanding

Montgomery St., San Francisco 4

Tele. BP 61 & 62

1958.

lease

fpljdjy:

Original

1S8

indebtedness

to the termination of the General

$2,638,500

Corp.,
Mr.

129

/East

Market

Street.

Landgraf has been active in

financial and industrial circles for
the past thirteen years.

OFFERINGS WANTED

interested

offerings of Blocks of All

Beacon Hotel 2s 1958 W. S.

New York A. C. 2s

1955

Brooklyn Fox 3s 1957 W, S.

Pittsburgh Hotels Common

Grant Bldg. 2%s 1957 W.,S.
Hotel Lexington Units
:

Roosevelt

Hotel St. George 4s 1950

Savoy Plaza 3-6s 1956

Hotel Waldorf Astoria Common

870 7th Ave.

National Hotel Cuba 6s 1959 W. S.

REAL ESTATE

New York Majestic 4s

Eastern Ambassador Hotels Units

870

1964

Savoy Plaza Class "A"

BONDS and STOCKS

Hotel

1956 W. S,

7th

;

4V2s 1957 W. S.

Ave. Corp.

Common

Amott,Baker
89 Broadway, N. Y. 6

Incorporated

Dlgby 4-2870

150 Broadway

Teletype NY 1-1942

Tel.

Real Estate Securities
'52—New

Teletype NY 1-588

London Terrace

Prince & Lafayette Streets
5s

New York 7, N. Y.

BArclay 7-4880

3-4s, 1952 with stock

York

Commodore Hotel, Inc

Lott Hotels, Inc.—Chicago
Wacker Wells

Bldg.

Common

Roosevelt Hotel, Common

Circular

St. Louis

Upon Request :;!

Myles Standish Co. Boston

Valiquet

Lubetkin & Co

135 So. La Salle St.

Incorporated

CHICAGO

Members New York Security Dealers Association

CG-81

Central 4402

Broad

Street, New York 4
■

•>

HAnover 2-2100

Thursday, November 14, 1946

Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number, 4542 " ';

\<X;\

WILMINGTON/ DELAWARE

foifaxdyea/i <mdecl

fobIfie
The financial statements

presented below

V...

v-vV;i/r'

are

3946

subject to footnotes published in the annual report of the Company.

•...

\•"•:

v.'*,

,•

>."" ' -V

•

-^vl'

CONSOLIDATED BALANCE SHEET AS AT JUNE 30, 1946

fa
Cash

hand, in banks and In

CURRENT LIABILITIES:

CURRENT ASSETS:

trans!t^ui...^/iWj1i.iV^iv^..>'.^;vi'

tions

$584,199):
.:>■■}-. •
Canadian Government Bonds,,...
Argentine Government Bonds...,;....
■

/
;

; ;

$330,316.;v»..I

\ J,
-

$79,720

reserves of
i.»*

.'.*.1

the

dates

nearest

financial

thereto—approximately $3,986,000.............

43,930,961

mutual insurance

Share:
Authorized and issued

Less: Reserves for

,>>

OF SUBSIDIARY

per
,

54,000 shares

•

305 shares

53,695 shares

Value $1.00

still to be issued

exchange under plan of capital stock readjustment) and Stated at par value of $1 per
"'share plus $6,451,790 added-to capital by

1,426,s49

4,000,000 shares

1,066,961
4171M

$,369,500

per

'
:

*,•.

1,335,875 shares

resolutions of the Board of Directors.....

land, buildings and water rights
f,.
Machinery, equipment and leasehold improvements.....

•»$$•»»•

Issued (including 296.56 shares

;

..v. ...it.:

profits tax refunds..

FIXED ASSETS:

DEFERRED

•

Outstanding

1,947,074

...

,v!'

Less: In treasury........................

policies and deposits with

companies)

v"J,'y

CAPITAL STOCK AND SURPLUS

Common Stock,'Par
Authorized,

cash surrender value of life insurance

Canadian post-war excess

■

Preferred Stock, Par Value $100

356 Cumulative

Sundry receivables and investments (including $426,553 representing

•

vCAFiTALSTOCKi^.^t^^t;1/
•

$70,161,889

'&£

other assets:

3,500,000

'i'-v

consoli ¬
at June 30,1946 or as at V

statements as

«,

$37,009,244

COMPANIES—CONSOLIDATED

~k\ Vs

ASSOCIATED COMPANIES—not

INVESTMENTS IN SUBSIDIARY AND
as per

'■

MINORITY INTEREST IN

(including $438,256 due from associated companies—
consolidated)....,. ................ .1,335,647

dated—book value

accounts

RESERVE FOR CONTINGENCIES,.

Other receivables
not

'v; 6,363,063

;

VMS,506
9,791,100

14,662,033 "
5,767,952

;;Goods in process, including greigegoods...Vi.....
Finished goods

$10,554,443

,pq

taxes,...,.....;..

Accounts and notes receivable purchased, less reserves of $298,459 • • ■»* •
Merchandise Inventories:
Raw materials and supplies,,..
,V*. $ 3,500,985

■

Reserve for Federal and

555,990
23,730

...»

receivable, Jess

Trade accounts^' notes and acceptances

i...................,.,

payable, sundry liabilities, accrued expenses, etc........
10,644,780
foreign income and excess profits
$12,847,553 f.
Less: United States Treasury Savings Notes, Series
w
v
C and accrued interest
3.400,597
9,446,936

Trade

11,843,740

vnV;••'.*'

v .-*•.>•'

•

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

>'i7.;r,»Crcdit balances of factored clients......

payable—banks

Notes and acceptances

$10,993,20$

redemption value and
accrued interest (Market Quotations $12,232,415)
...........
Foreign Government Bonds—at Cost (Market Quota-

United States Government Securities—at cost or

7/87^63

$10,436,044
17,076,548

47,514,592

depreciation and amortization................

15,039,399

surplus:

12,473,193

CHARGES

• -v

4,174,077

Capital surplus .,.................
Earned surplus, since August 1, 1932.

•66,087

27,703,092
43,034434

patents, goodwill and trademarks

Less: Held in Treasury—54,850 shares

of Common Stock

42407,283

427,051

at cost..»

$86,674,793

Eleven

Year Ended

Yeor Ended
•

i/ifttr Prtftmd Dividend)

lAfttr Reserves

283,438

6.89

3.99

..............,»

stock per share

June 30, 1939

21.52
33,152,645

surplus, preferred stock
w*m0» stock and slirplus.

.capital ahp
■u
'

or! accrued!

paid

M£y$i\.v

Stock tj>)ii2

rectors, the
annual

employees:

resulted in .inventorying

re¬

Corporation, showing

port of the

•

pound. This aver¬

29.59

25.47

15.72

12.52

the

Pursuant to

action

of the

profit was
$9,098,705, equivalent, after pre¬

Board of Directors, and the Stock-

11,475,098

9,435.368

7,514,932

5,771,526

564,146

548,923

1,000,000

400,000

$6.89 per share

of Common
of June 30.

the 1,281,025 shares

Stock outstanding as

(There

Stock

presently outstanding

are

3,892,608 shares.) This is after de¬
ducting all charges and making

was

mon

$2,233,363.

two

LUC
above, the Vwtpwi«»u*v»
Corporation's <«•»«»■* .vs.
share- of

WRPWWa

state¬

in companies
to

redemption

1946."

y^XP}:r- l;;

eluded

families

that have not been con-

can

have

material effect

upon our earnings

v -

tions

the

for

and added to its list of
~

last

fiscal

period

pany

vision

contributions

on a

fiscal

year

basis.

of several

zations

Depreciation and amortization of
fixed assets amounted to
Cost of

tions

new

TWi report

totaled

aceouqt

plant

h not

our

operations.

our

outside technical organi¬

for

number

Our Sales Division,
t

pletely

destroyed

special

plant and materials

unusual circumstances confronting
piany of our customers due to in-

representation, prospectus or circular In respect

was

fire.

were

sured. The income from

will

duction

through the

also

and

use

which

Fort, N. C., where

in the New York City

area on

Sep¬

results.

advised that
a

had

company

was our

intention

women's clothing as soon

conditions will permit,

mill

Maracay, Venezuela,

thej manufacture and

ing of rayon fabrics. Wc

processarc

also

perform

tinue

requirements and since the

plant

employees. Group insurance,
pension fund, welfare fund, child
nurseries and communal interests
some

of the activities. We

new

items still

woven

rayon

Silk is

continue for

increasing

uses

and mar-?:

landed in, this coun¬

since Pearl Harbor. Since then, im¬

mcnt.

ports from Italy and Japan have

their keen

country.

The Associated Textiles of Can¬

ada, Ltd., has erected
tion

its

plant

large addi¬
Louiseville,

instituted

various

happy to welcome
back those of our former employees
who

are

very

honorably

served

their

country. We find the returned vet-,.

also arrived. Departments
since the start of the

war

inactive

have been

reopened and consequently we are
now

handling the five basic raw

of ony stock of tMt corporation and is not presented in connection with any tale or offer to sell or buy

ony

' "

'/J
m.
V'7j:

cooperation has been

/'!

gratitude to the directors for
interest and guidance.

J.W.SCHWAB

+,7 President
•November 4, 1946.

stock or security now or hereafter to b« Issued.:/;

;
r

portant contribution. I also extend

-ti

vj\vV.

V/f,, V

'
alhim-:1^.'.'•;-7,!;.V7s:V77'7.,-'7l

untiring efforts, This fine spirit

training -for their future dovclop-

have

/"
.

employees of the cor¬
ubsidiarfes,
poration and its subsidiaries, both 1
here and abroad, for their loyalty '
for

and rayon

manu¬

and

facture;1 and processing of cotton
cloth for consumption in

risen
power

;lt is my pleasure to express great
fleers

Colonia, Uruguay, for the

has

purchasing

appreciation and thanks to the of-

being utilized for ci¬

represented the first shipment of
raw silk received from the Orient

endeavor to attract young men

Americans

distributes, cater to the

and
types of

mill in

essential needs of the people.

some

vilian textiles. On January 6,1946,
your company

company

steadily being developed.
now

\.;i>/v/Vf':1

is great. Most of the products your

goods. This condition

may

ex-

stockholders and

The standard of living of many

try 500 bales of €hina silk. This

of building

course

principles which
our

employees,

pro¬

from producing nn adequate sup¬

ply of

!-K

and best for

many

4\'

pcricncc has proved to be sound

and

in the

fast to those

exists, although the over-all

of its

comprise

lations, scarcity of

•

function in

tain pricing and distributing regu¬

was

in jail

war's end to the working of cer¬

settled on
amicable basis. The company is
interested

conditions

adjust ourselves
'conditions while holding
us

and their present

Argentina,which

complete inte¬

their/friendly relations.,

millions

as pos¬

^7The irtfcuctiir#

Employee and management rola- 7 duction is large. Insufficient pound¬
were
age of rayon yarn allocated to tex¬
entirely satisfactory
tiles has prevented manufacturers
year with the exception

fully

best interests.

our

a proper

time

mod¬

antici¬

Generally,

comparison with

abnormal

should allow

arc

is to

hard lines. In textiles, due to war¬

six weeks' strike at our

in such

customers' inter¬

protected

during the
a

pos¬

the styling, promotion and distrl*'
bution of textiles, most of our 1
sources of supply will wish to con«

slower of

originally

industry.

creased rapidly in

time

building

production of soft goods hns in¬

kcts

wc are

our

lions

supply and demand Ml! change in.
the future and we feel as long as

transition

greater and

than

pated

Inc., opened five additional stores
,

been

solution

production

that

Present

tion. The problems of reconversion

satisfactory increase during

mentioned

have endeavored to

our

gration

from wartime to peacetime opera¬

will

We do not believe

7 This report reflects,

the past year. Robert llal.l Clothes,
.

IN CONCLUSION

strong

sible.

company.The

Bonrd of Directors held their usual

have
had

handle

and

ests were

quarterly meetings,

in¬

Our retail store operations have

our

monthly

the textile

bution of textiles. This has taken

manner

meet

year

what is known

sible change in methods of distri¬

place and

Our

/>».

report of 1943

Executive

located

have increased facilities,

.;,

towards

vertical integration. In our annual

current nffairs of the

recovered

Langley, is :»lrea<(y,laving rebuilt

at Old

ac¬

underlying

keeps in intimate touch with the

fully in¬

was

our

continues

Both

carried.

knitting plant, which
at

Committee, ap¬
pointed by the Board of Directors,

com¬

occupancy

The

lost pro¬

one

our own company,

plans

that

realizing the

opera¬

Langley

our

During the past

industry has witnessed
trend

policies to fill, wherever possible,
important positions from within

'•

Langley, S. C.,

surance

extend operations into the rayon

for

Di¬

useful

projects.

$872,024.

machinery and addi-

$2,067,546.

make

We have also enlisted the services

profit taxes as your com¬

Mill

'•

July X 1946,

fabric field for consumption'in that if intensely

j*v

continues

—0—

try, namely, cotton, wool, rayon,
silk and linen (flax).

to put

awaiting their return. It has

always been

ex¬

and

ern

«•

were

low-cost distributing units of men's

to effect and

The Research and Technical

$11,453,000.The year's
only 50% of the ef¬
fect of the elimination of domestic

numher of

by July 1, 1947.

into operation many programs that

country. This program was put in¬ .-that improve the health and safety

sub¬

634,000

42,000

materials used in the textile Indus¬

havq not

has enabled

manpower

tember 19, 1946. Wc contemplate a

cessfully. ''

results reflect

responsibilities which

special machinery has

pected this plant will be in
tion

mills hns proven to be

goods and that it

clients.

13,471,241

739,000
-

hesitated to delegate. This added

large expansion program for these

t,n

-0-

;

17,7 5 si596 k ■', 15,28'1:,3 5 4

•

capable of accepting added

cran

near¬

been behind schedule but it is

and

in Venezuela manufacturing cotton

volume

Our Canadian and Argentine

acquired,

S. C., by the

and

ment

devel¬

company

equipment is be
'
r
"
finishing plant at

year's annual statement, is

have complete ownership.

sidiaries continue to operate sue-.:

opera¬

amounted to

excess

75% of this

Last year wc

Corporation,-

rial factoring, increased its

the Common Stock.

Direct taxes charged to

new

rayon

orf that company, aggregat¬

whose activities consist of commer*

consisting of $272,225 on the 5%
Cumulative Preferred Stock and

yrg

made an investment in

The United Factors

paid amounted to $3,072,363

$2,800,138

own

July 1« 1946,

valuable asset to

of the outstanding Common Stock
of the company.

During the past fiscal year, divi¬
dends

acceptance,

new

quisition, only six months' profits
of this company have been included

employees and their
approximately 21%%

322,000

demption. Due to the date of -ae».

The officers,

U. S. Government

1,308,000

ing $1,267,135, was called for re¬

•

3,317,000

ing completion. Delivery of equip¬

year

stock

October 1,

Proceedings with respect to re¬
business

two lead--

operations. As of July 1, 1946, the.
outstanding 7% first preferred

called for

consumer

uct of these
a

20,643,380
3,076,000

Old Fort, N. C., described in last

standing common stock. The prod¬

Sinking Fund, 3,000 shares of 5%
Cumulative Preferred Stock were

$602^24. ...p.

negotiation

our

Our

have

programs

Mills Co., Union,

387,853

-0—

.io—

-0-

5,909,000

ing installed,

quisition of over 99.9% of the out¬

^arc held. Under provision of the

for they ear

amounted

consolidated

on our

Quebec, and

Advertising

relationship.

On December 28, 1945, wc pur¬

July 26, 1946, received
additional shares for each

record

In addition to the earnings stated

not

appearing

;

474,379
"

v -0^.'

2,233,000

3,172,000.

8,606,000

chased control of the Union-Buffalo

Treasury were retired.

•

22.45

■■

promotional

now

Oh
August 14,1946, the Common Stock
was split and each stockholder of

The working capital shows

ended June 30, 1946,

Stock

ment in

increasing this re¬

undistributed earnings

3,833,000
7,396,000

Textile Corporation. We formerly

18,1946, the 54,850 shares of Com¬

increase of

owned

Special Meeting of the Stockhold¬
held on July 16, 1946; On July

$3,500,000, remains ■ un¬
changed as it is felt there is no

«,i44,ooo

the outstanding interest in Seneca

authorized at

ers

serve.

24,536,754

Aa of

increased from 2,000,000

was

present need for

6,000,000

27,995,640

which will enlarge our
fields of operations and provide
new sources of income.. ;; 7 V C
the

4,000,000.' A further increase to

5,054,850 shares

foreign exchange adjustments. The
reserve for contingencies, amount¬
ing

5,669,5 00

31,150,192

Several acquisitions and

February 13, 1946, the authorized
number of shares of the Common

«n

842,018

opments have taken place during

holders at the annual meeting held

ferred dividends, to

.21,869,651 ii

additional

962

26,430,708

age

The consolidated net

—0—

19.43

ing trademarks: "Amcritex" and
"Cohnma", we feci, have attracted

0.25

34.96

723,208

been liberalized and

this item

average

remains approximately con¬
stant from inventory to inventory.

ended June 30, 1946, is here¬

with submitted.

approximate

15.76 cents per

operations for the

the results of

has

method of pricing raw cotton

27.17

1,750,000

tomer

and

•

42.24

adequate supplies of merchandise,
has stressed the importance of cus¬

cstab-

lishcd"Last In-First Out" (LIFO)

•

'$7).:7-0.50:'

v 1.50

599,956

32.46

864,304

Stockholders will be in¬

our

terested in knowing that our

Board of Di¬

2.00

2.44

599,658

43.91

-5,309,000

for 1, Autust 14,1946.

proval of the

stockholders
and

year

I feel

With the ap¬

po our

2.00

3,000,000

«• Stock split 3

fot 1, March 7,1945.

;Y>

! 5,67.4,500

;

excess profits
*

599,903

>^37,783-

......

Normal income and other

590,s28

3,500,000

3,500,000
..,.,.^i'.5,369(500

contingencies.

575,174

u-o—

.3.37

19.78

872,024

fixed assets'....;....:.....

depreciation and amortization of

4.37

632,588

1,466,196

-or-

24.^5

...

•

jreserve for

7.43

6.41

30,919,282

stock per share

Stock at 4W4 ptr Share)

-0-

7.40

1.50

2$.90

{After deducting vutstanding Preferred

~0—;

—0—

$104 per Share),,,.,.,,

quick asset value, common

working capital.

,!v-

Monlht Ended

June 30, 1940

$ 4,256,656

j 285,923

,*1,264.772

2-20
^

$4,984,098

**1,281,025

1
v
f»r Otntingendts and. after deducting outstanding Preferred

book value, common

met

$ 5,334,049

STOCK OUTSTANDING....

common stock

dividend rate per share on

Juna 30, 1941

4 272,225

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

v.»...«....

* v.

NUMBER Of -SHARKS OF COMMON

Year Ended

June 30, 1942

common stock

{earnings per share on outstanding

;

Year Ended

June 30, 1943

$ 9,098,705

CtntingtntUs).......................,...

dividends paid.............

preferred stock

:::

Year Ended

June 30, 1944

net profits (Afttr RtkrttS fer

;

Yaar Ended

Jun« 30, 194S

jwn* 30,1946

■?.:

■:, ■

2470

THE COMMERCIAL & FINANCIAL CHRONICLE

dropping from $278.7
$256.0 billion. v

VAN

tc)

DETJSEN i

the

—

Comm., *In(dustrial A. Agrlcuit._.._.
Loans- to brokers; and dealers^.-u—

Bank Stocks

Other

Bankers

Trust, Company, New today and offer no assurance that
York, recently published a 54- the picture may not chaiigd."
page booklet entitled "Outlook for
; The banks
included in the study
Bank Earnings: 1946-1948."
It is hold 97% of the deposits 'of all
so excellent and concise
a
piece commercial banks.
of

work

that

this

pleased to offer
of its

some

contents

The

reached

interesting prog¬

nostications.
Its

column

brief review of

comprise

"Sum¬

mary," five chapters, and a "List
of Tables."
The chapter headings
are:
(1) Estimated Holdings of
U. S. Government Securities; (2)
Estimated Loans; (3) Estimated
Current Operating Earnings;- (4}%
Estimated Current Operating Ex¬
penses; (5) Estimated Losses and
Recoveries.
In

the

states:

"Summary" the .report

"On

the basis of

certain

assumptions regarding fiscal pol¬
icy, business activity, price move¬

through

group

the

mofe

wilL increase

lion,

However, despite a decline
earning hssets, current

ove?

bil¬

total

operating

figures

operating

Net current

earnings

Commiltee
James

Coggeshall,

today

Jr.,

loss(—)__

29.2

OPERATING
of

From

EARNINGS

Securities

1938

532

522

727

1940

500'

769

1941—^

509

848

1942—

610.
861

706

1943-^._

Loans

1,584

357
,

1944

.727

1,606
1,631
1,730

'>•363
373

364

1,254

2,215

455

2,482

505

1,959

427
-

increase

from

$8.7

billion

1945 to $10.1 billion in 1948.
1945 ratio of deposits to

funds

17.0

and

The

capital
ratio,

the

1948

13.2.

estimated

drop in U. S. Govern¬

ment demand deposits from $23.7
billion in 1945 to $2.5 billion in

1948.

Interbank deposits are also

' 2,462
1,523

1945

858

1946
* 2,739 "

2,967

960

Former Assistant

ment

year

g e

Bryce,
Clark, Dodge
Co.; Chair¬

264

995"

306

509

Sachs

1,964

334

335

Co.;

+62

+ 245

255

—75

+ 28

to $86,5 billion in

Jas.

Coggeshall, Jr.
.

are

im¬
In¬

deed,
of

very

;

Publicity: William H. Long, Jr.,

1946, to $83.0 in

Doremus

Co.;

leadership in

matter,

gene

Shields

Barry,

Co.;

$30:0 billion

in 1945 arid $37.3 billion in 19'4&

Holdings of government securi¬

Kenheth C, Hogafe.

& Co.; and
\,,'t-

,,<■>

«,

Reception:

Rufus

billion in 1945 to $66.5 billion in

Co.; ^Eugene

1948, and the total public debt

Co.

Barry,

New' York;

Smith,

FentOn

Barney

our own

This may seem like

can

followed

case,

but I

think

be demonstrated that had
liberal commercial

policy instead of

high tariff pol¬
icy .after WoTld War I; the history
of the
world
might have been
very different.
We were an im¬
portant factor1 ill World edoriom^

Johnston,

Grant

Stone & Co.; Frank M. Stanton,

after World War I; we are to a
far"greater degree so now.'-We

First

demonstrated

Boston

Emerson

J. S.
/

Rippel & Co.
Established

1891

18 Clinton St., Newark
2, N. J.

1-1248-49

MArket 3-3430
N. Y. Phone—REctor
2-4383

Thors,
H;

Corporation;
Kuhn,

Walker,

Loeb

Jr.,

J.
&

Walker & Co.; Walter W.

and

WHOLESALE MARKETS IN

Stanley

Warreri

Co.;

Wilson, Union Securities

Corp.

BANK and INSURANCE STOCKS

Branches

OFFICE—Edinburgh

throughout Scotland

LONDON OFFICES:

(■EVER & CO.

: ,/

4ii West Sixlb Street

rRANKLlN 7333

MICHIGAN 2837

CG-zoj
CONNECTING:

LA-io3t>

Charing Cross, S.W.I

Burlington Gardens, W. I

BAN FRANCISCO 4

puss

Building

SurTCR 0097

SF-J7J

TOTAL ASSETS

£115,681,681

•

never

Hartford, Enterprise 6011
•

Portland, Enterprise 7008

Detroit, Enterprise 6066

review,

us,

Last War

briefly,

the last

what

At a
time when Europe's
economy was
prostrate and there was no dan¬
war.

ger of any flood of imports into
markets (we had, as a matter"
of fact; an excess of
commodity
exports over imports of about $£
billion dollars in 1919*) $3 billioni
in 1920, and $2 billion in
1921>
Congress passed in 1920 what wds *
called ah emergency tariff because
our

there

way,

such

was

onto

the

hurry to get it
books.

well-called

was

tariff"

gency

statute

the

because

"emer¬

did,

truth, create ah emergency. Then,
18 months'
effort, Congress
brought forth a general tariff re¬
vision, the
Fordney-McCumber
after

Tariff of 1922. Since

we were

the

no reflection upon our gal¬
Allies to say that without

If is
lant

Britain

expanding

neither

production,
nor

survived

boundaries

the

Russia
Nazi

economy

was

could

assault.

within

necessary

our
ac¬

complish this result. An expand¬
ing economy in the postwar world
is just as important, if we are to
accept our opportunities and obli¬
gations for reconstruction and the
maintenance of world peace. And
an expanding economy is not pos¬
sible with a restrictive interna¬
tional* commercial policy. We were
bold

and

pean recovery

by this tariff»r

>. >

■

daring

meeting
only on

the
the

war
challenge, not
military but also on the industrial
and economic fronts, and we must
be that today, and remain that, if
the world is to be really recon¬
structed and our own peace and

During the period between thle
tt^o' wars, we consistently maihtained

large excesses of commod¬
exports over imports, again
contributing to the difficulties of
really sound recovery in Europe?
ity

and hence prosperity and stabil¬
ity in the world. We balanced out
our
international payments with
loans, a large part of which were
ultimately defaulted upon because
our

international balance of pay*made it impossible for us

ments

get adequate

repayment
in

1930,

tariff

greately

rates

service and

full

these loans:

again

and

Then,
upped the
intensified

the problems which the 1922 tar¬
iff had created.
During the '30's
we balanced out our
payments to
the

world
largely by gold im¬
ports, most of which have beef*
reverently interred at Fort Knox.

All this history is familiar to you>
I wish to stress the bearing

but

NEW

YORK. BOSTON, CHICAGO,
CLEVELAND, PHILADELPHIA, LOS ANGELES, SAN
FRANCISCO

Providence, Enterprise 7008

64 New Bond Street, W. f

NY 1-2873

LOS ANGELES 14

Bishops'gate, E. C. 2

8 West Smilhfield, E. C. /
49

Wall Street

WHITEHALL 3-0782

Hv;:

INCORPORATED

have

HEAD

prac¬

industrial capac¬

I optimistic

Great

dreamed.

American

Incorporated by Royal Charter 1727
.

most

Wilson,

Morgan

largest single market for European
ity and financial strength during goods, we effectively restricted
the war to a degree that even the European production and Euro¬

Royal Bank of Scotland

economy

expanding and
abroad is, I am
policy toward

economy

overstating the

If. H.

Co.;

Henry F. Grady

international economic and finan¬

itappCned After

happened after

cial relations.

Blacke, Robert H. Craft, Guaranty

(L. A. Oibbe. Manager
Trading Department!

TO:

Let

key to

convinced,

ties

TELEPHONES

What

expanding and stable

stable

Brent,

essentially

proached from the standpoint of
business statesmanship.

at home aild to an

are
estimated as declining Eastrtian, Dillon & Co., Chairman;
successively each, year from $88.9 Amyas Ames, Kidder, Peabody &

BArclay 7-3500

SYSTEM

The

shown

matte? (involving national
self interest) and should be
ap¬

world.

Lloyd S. Gilmqur, Eastman, Dillon

are;

tical

this post-war

Eu¬

Chairman';

terms of sheer commor*
This is not a theoretical

sense.

and industrial

1945,

Secretary of State

but in

large

-114'

1947 and to $82.2 in 1948; time de-*

Members New York Stock
Exchange
120 BROADWAY, NEW YORK 5, N. Y.

WIRE

The

original is recommended reading:
for all interested in bank
stocks*

prosperity assured. I am not talking in terms of humanitarianisrr*
or of emotional
internationalism^

we must

think in terms

Field Day:
William G.

„

posits

Laird, Bfsself & Meeds

PRIVATE

presented in the study than it

is possible to allude to here.

against reriewal of this policy. Sees need for
encourage¬
of imports and change in attitude of
creating domestic

portant.

Brothers.

man

Co.;

BS-Xft

yfy+)

figures

stressed,

ports

Joseph A.
Thomas, Leh¬

369

260

STOCKS

HUBBARD 00SO

and

When the. subject of imports is*'
discussed, and their importances
one cannot but feel that this is
laboring the obvious. Of
c.ours e im*
•—-—., i
is

and

1,003

SECURITIES

S. CaSalle Street

are

facts

into U. S. and- calls for end • of
international economic warfare.*

F. Ken¬

Goldman,

spn,

French,

CHICAGO 4

Many

scarcity

''2,967

983

362

INSURANCE

231

substantial increase in
earnings

from loans is anticipated.

by restricthig^ flloW of forcignf ^doids.^^ Holds; in
future, our import^
will be measure of our
export' volume^ and that key, to greater worldf
trade and to our foreign investments Will be a liberal
import policy.'.
U'gcA
S. representatives abroad be used to stimulate
import$+

Keehn, Wickliffe Shreve, Hayden,

BOSTON 9

slow retirement of the
On the other hand*

very

executive^ assertiiigf high tariff policy after World War I
cause^ of worldi-widi disturbances' antf economic instability^

was

ments: T. Jer-

1948

1947

2,892
1,897

1,756

266

and

JO Post Ofjict Square

Shipping?

neth Stephen-

NEW JERSEY

NEW YORK 5:

particularly signifi-

great shrinkage in
earnings from securities is antici¬
pated, in recognition, obviously.,

By HENRY F. GRADY*

rold

Estimated--—-

■

1,357

703'"

i 11 e

Arr'a

man;

BANK

Teletype—NY

is
no

President, American President Lines, Ltd.

Egley, Dillon,? Read & Co.; JO M.

Bell

It
that

Implemenlmg haeased Imports

1946-1947:

Trust

Telephone:

cant

)

First

for / the

The dominating factor in the
expected decline of deposits is the

for 1948 indicate 40.6%»
securities and '42.3 %' from

from
loans.

1,791

392

•

'698

1,030
1,300
1948 (Est.)l,208

mates

Total

347

817

1945—

following

comm

BANKS

billion in 1945 to $132.0 billion in
1948; and the latter are estimated /moving from $80.3 billion in
to

1945>
from

(mostly governments),
52.2%; from loans, 29.2%. 'Esti¬

Sources

705

•4

•

from

national debt.

LaemmCl, C h e nii c a i Bank & expansion of
Profits before income taxes..*—
954
920
889
,766.
1,205
1,011
Trust. Co,, Chairman; Ernest import vol¬
Income taxes
128
203
299
189
197
hW
ume if we are
J.
Altgelt, Jr., Harris Trust
Net .profits after taxes_>—
638
to fulfill
793
723
i—a
751
906
700
the
Safviiigs Bknk;Jo Mv Ftehch^
Dividends—-L.————A——
233
253
274
300
325
340
Blyth *
Co., Inc.;/- Robert
L. 'greatly in"With regard to > ^deposits % and estimated! to decline from $13.8
creased reHatcher, Jr., Chase.National, Bank
capital funds, the former are pic¬
.billion tci $10.0 billion, but oilier of New York; and C. Russell Lea, sponsibilities
tured
as
for economic
declining from $147.8
demand deposits are/ pictured us Reynolds & ;Co.t Vice-Chairmen.
or

total

earnings

loans represented 44.5%.
the ratios were as

dollars)

From From Other

1939

ap^
pointmentj ol
the

( + )

■

(Millions

(Thursday)

undoubtedly trend- lower.

1944
2,215

losses and charge-offS-_—_—_-__
291
JProfitson securities and recoveries.—353

Nonoperating profit

35.2

Appoinlm'ls

Ihcohiei taxe^ ard estimated ais de¬
clining from $299,000,000 in 1945
t<? $189,000,000 in 1948.

1,256

operating earhingsii__„_-

32.5

•

Year

nounced

,..1943
1,959'

.I—

expenses

7.2

Bostdh Corporation, President of
the Bond Clqb of New York,* an¬

—Actual

operating

10.5

6.5

33.5% 'of

while*

New York Bond Cl«b

(Amounts in millions of-dollars)

Current

8.8

5.2

t^ken:

are

earnings

EARNINGS, EXPENSES, ANU PROFITS OF INSURED COMMERCIAL

Current

7.0

From 1933 ta

may
enter,
nevertheless,
they
The following table summarizes
""have simply attempted to ap¬
praise the outlook as it appears .the above
figures:;
,

1.2

sented, from which the following

are estimated
by nearly $500,000,000,
of .20%, while current operating
expenses are expected to increase
by $400,000,000, resulting in an
anticipated increase in net oper¬
ating earnings by 1948, before

ties will

rialize and that unforeseen factors

1.2

TOTAL

earnings from securi¬

earnings,

to increase

Dividends
expected to increase from
$274,000,000 in 1945 to $340,000,000 in 1948. \ On the other hand;
recoveries and1 profits on securi¬

1946, 1947 and 1948." v The au¬
thors recognize that some of their
basic assumptions may not mate¬

1.6

rising current

are

years

1.3

3.6

1941, the increase was 9%; from
1941
to' 1945,; the /growth
was'
43.5%."
Illustrating the truth of
the 1. statement,
a
table is pre¬

will increase $1.5 billion and that

loans

15.0

0.9*

25.8

operating earnings;

1948

14.7
1.3

successive years of

1947

14.0

ft'-'-L4rf0

The study poirits out that "Cofhmer'cial
banks have
had seven

than

1946

3.2

4.1

4.5% of 1945 earnings.

ings of insured commercial banks
a

decline

1945

.10.8

3.5.

1938,

represented

follows:

1.0

irLr

In
ties

securities

Dollar's)

lo"ans__^_„

loans_._^-._»^,.^__^.-.

for
1938 to 1947,, irifollowing figures

years

—

the total

classified,

abstracted from that table:

are

(Billions

...

securities

'''Total

$22 billion during the three years,
that holdings of other securities

takes, Of $43,000,000, equivalent to

ments, and interest rates, we have
undertaken to project the earn¬
as

will

for

Estate

AU-,-other

principal conclusions
are that holdings of gov¬

ernments

;

Real

loans

exhibits

figures,

elusive.;.v The

1938

This Week

booklet

year-end'

are

TOTAL LOANS

the

banks

the

esti¬
mated as expanding by $9.4 bil¬
lion from 1945 t6 1948.
Tabl<£ 5

Bank and Insurance Stocks
By

billion

Loans

Thursday, November 14, 1946

of
Associated Banks:

Williams

Deacon's

*An

Bank, Ltd.

Glyn Mills & Co.

address by Mr. Grady be¬
fore 3'3rd National Foreign Trade

Convention, New York City, Nov.
11, 1946.
-

this

policy

our

balance of

payments and consequently on the
commercial policies of other coun-^
tries.
:';.1
.

(Continued

page

2508)

; ,Volume 164

The

Number 4542

THE COMMERCIAL

& FINANCIAL CHRONICLE

Foreign Economic Policy oi the United States
By HON. WILLIAM L. CLAYTON*

tinder Secretary of State for
4

foreign policy. 4
internationally trading out our
deficits and surpluses. Our policy is based on free and
equal access by all nations to world's
aand
irhaterials. Describes U. S. plans f or interhational l trade organization, reduction in.
elimination of discriminations. Discloses State
Department is working toward protecting

*ra
arars
<F

aspects

By CLARENCE FRANCIS*

our

KOur nationals'legitimate rights abroad.

Chairman, General Foods Corporation
*

iho

in the

press and on the radio. The emphasis so far
having been on
politicals
1
:
■.
,,i. v—
.^,1,
aspects of our policy fall into two general cate¬ duction of tariffs
and other bar¬
foreign policy, gories:
riers which restrict world trade

the

wish

rect

■

di-

your

at¬

tention

economic

its
as-;

pects. The two

The first relates to financial
sistance to; countries fated

and limit the

asf

production and con¬
;
4

.witij sumption ;of goods.
r

problems of relief, reconstruction
and development. *

.iThe United States Government

is;>moving

on, a

ffeldifK

broad front in this

'•

;:';Cr

;

closely
$3 Billions Sent Abroad
; In the summer of 1945, the Hull
together.!
SinceWar'sEnd
Reciprocal Trade Agreement Act
4
The objecSince the end of the War the Was renewed by Congress for the
4 t i v e ;of t h e. United States ^Ovfernmenl;
has foticthv time, and with broadened
foreign ec o- made
;
available
as- grants
for powers.
nomic 4 policy
; About. 0 year "ago the
emergency relief and rehabilita¬
Govern¬
are

and

the

change."
for

words

There has

little.

the

never

philosopher,
been ah

been

ever

time

era

—-—1—"

And

when

the

United

States

G o V-

ernment

William L.'

tiayton

tion abroad about

^3tbiilidns^n

addition, it has made available

lay the founvelopment in foreign countries,!
dation f 6r for
the purchase of surplus prop-!
ipeace by an expansion in world
erty, and for the financing of
teconomy, that is, by an increase in
lend-lease pipe lines, inventories,!
^h£ production, 'distribution and
etc., a total of about $17 billions.'
Consumption of goods throughout A
grand total of about $20 billions.!
Uhe world, to the end that people
Nearly half of this sum represents
everywhere may have, more to

eat^ tnorO - to

"fhornes

4 SOunds very simple, doesn't at?,
-tAnd it is simple. It is only in the

*•

formulation

measures

7fa<&ie^e.bdfc objective that
f into
*'

;

better'

' wear and
ih which to live.

opposition

some

tilfficulties.

we run

and

some

•
.

44 ,^3ht tet'us first examine the obJ Octive itself.

•

World

Trade

;

and

such

due

;

year

un¬

precedented

problems as reductions in trade
barriers; elimination of discrim¬
fri
international trade;

prevention of restriction of inter¬

cedent ed

national

e v e

by the action
combines; inter¬

commerce

cartels

and

war

was

ended
n

'n t

was

;

side

unchecked.

not

was

From

business

the

side

Clarence

reassurance.

Francis

which

The

confusion! Here

"'An address

was

the

think

ought to remember
a long way
to re¬
establish
business
leadership in
the
public
mind.
For, despite
strikes, despite shortages, despite
all obstacles, business has forged
that.

Market

went

ahead since then. It has shown, as
it

must; continue

grow.

We have passed through the

wartime

struggle

with

restrictions into

and

shoW/ the

to build, to plan, and to

courage

Chicago, 111., Nov. 6, 1946.

Super

were

leaders. And from them the people
took courage and hope.

by Mr. Francis be¬

fore

steadying voices
heard
during that
those of business

were

period

nation.

ence,

The

controls

period of

comparative freedom. The charge

Confer¬

(Continued

2490)

on page

4 the tights, ahd; interests of others.
Indeed, the two almost invariably
go hand in hand.
<
So, let us ndmit right off that
out * Ob jective has
as its back-

%
-

This is under

jgrOund tha heeds and interests of

vithe people of the United States.
have here a large and grow¬
ling population with the highest
^ standard of living and the great¬
est productive capacity
in the
4 World, IttdeOd* our productive ca¬
pacity of many important com-

It-

to he construed as an
offering of these securities for sale, for as .ton offer to buy, or as d
of an offer to buy, any of such securities. The offer is made only by means of the Prospectus.

NEW ISSUE

November 13,'194*

4 of the world combined. That ~cal&acityi however; is geared to the

ill

/$25,000,000;: 1

I|i

Crucible Steel Company of America

Jfttoduction

of much more of some
than our people require.

things

likewise,

require of many
^ther things much, more than we

4 can

we.

,-•4.

-J'-

'"4.'4;- 4

\ *

First Mortgage

'■>

f C'4

■,

44-4' '

-.4:'.4

\-cu't'Ci

'-'">*■>

'productive machine leaves Us
with great deficits ahd great sur¬
pluses, which
With the rest of the world.
'44.-We need markets—big markets

-tout

Series Due 1966

DatjedFJovombet' 1,1946

V^around Uie

world

lit

which

4 t>uV $ an d ; seU.4 We nask> no

Due November

special

privileges in any of these markets.
We hope that others will neither

Price 100% and accrued interest

ask nor

be granted

special privi-

Atlantic ' Chatter, and
the mutual aid agree¬
ments, we laid down the principle

4*- In

agaih

the
in

free

•

and

Countries

equal
the

access

trade

and

all
raw

!fhaterials of the world. We are
(devoted to that principle. It is
basic. It doesn't

means

mean

free trade.

the

policy.

Now

flow is it to be put into effect?
^

Copies of the Prospectus may be obtainedfrom any of the several underwriters'listed in the
Prospectus, including the undersigned$ionly in States in Which such underwriters- dfe quali¬
fied to act as dealers in securities and in which such Prospectus \nay legally be: distributed*

non-discriminatory trade.

O l -So much for
.

' N'

•

?©f

Sinking Fund Bonds

produce.

f$huis, the efficient operation of

;

-c

tnodities exceeds that of the rest

■

circumstances

Solicitation

Measures for implementing this

4; *An address by Mr. Clayton be¬
fore
the
World
Trade
Dinner,
Thirty-third National Foreign
Trade' Convention,
New
York
City, ;Nov.: 13, 1946.-,
;4...

came

for

regard

came

But

thunderclap over Hiroshima jolted
contributions of the United States governmental
commodity arrange¬ the Japanese into sudden surren¬
Government to international or-' ments foT dealing With the prob¬ der; It aiso
brought us all face
ganizations to which other gov-! lem of surpluses; the adoption of to face with new moral and
poli¬
ernments have
also
contributed; a common code to govern the tical issues too terrible and too
substantially. It Will take some' regulation of international com¬ profund for me to discuss here
time to lend and spend this
money. merce by governments
and the except in the terms I understand
Without this help and the hope creation of an International Trade
—the terms of the businessman.
which it has revived in the hearts Organization under the Economic
of millions of people, chaos would and 'Social Council to administer In these terms what happened?
have followed the end of the war such a code.
Well, V-J Day sent the eco¬

been retarded for many

with

inations

years.
I.'M" As We have said, it is a simple
nounced tits full agreement on all
4 fcbje^ye; Wo do not claim for 4> The seCondineasure designed to
important points in these pro¬
4 tt any altruistic motivfeslThere is, promote thO ^achievement Of our
ihOWeverj nothing inconsistent: in 'Objectives-relates to the^elimina* posals* and its acceptance of the
the protection of enlightened self- tion of discriminations and the re¬
(Continued on page 2508)
interest

Somewhat
over

ago,

ThesO proposals deal with

do¬

get?

Communists,
liberals,
labor economists, and
some government officials joined
in predictions of "six million, nine
million, and even eleven million
unemployed" within six months.
This
new
uncertainty took the
edge off the relief which Ameri¬
cans felt in victory. Unchecked, it
might have spread into panic.
' j

calcu¬

lations.

radical

socialists,

in >some countries and world re¬
Nearly a year ago,, the Govern¬ nomic prophets scurrying baclc to
covery^ Would undoubtedly; have ment of the United
Kingdom ^an¬ their charts and graphs. Atid there

A Simple Objective

best

our

mestic

the

g 10 0 m

com¬

pletely alter

ment issued its Proposals for the

Expansion of
de¬ Employment.

credits for reconstruction and

did

what

From

4 events

could

hoping, and wondering.

groping,

world

"Nothing is constant but
in which precedent counted

•

Nor has there

tied

distributors

(1) keep business efficient and com¬
petitive in consumers' service; (2) build, expand and create;
(3) reject economic isolationism; ahd (4) haVe confidehce in
future.
Holds our free enterprise
system is sdurce of strength, !
and urges aiding in increasing
foreign production as key to world
peace.
4-4-.44■ .4:4
" ■ '4:'
'

h?v*ng. mastered those physical phenomena Which served as the chief bulwark
Si «s'
American people are now settling down to their responsibilities as full partl!!
affairs, and appear to luce it. At least one would judge so from the attention which
su ject
receives, particularly

Leading food manufacturer, though predicting a world food shortagfe for coming pear, points out that in U. S. present trend is for
food to get less of consumers' dollar.
Recommends food manu-

V. facturers

'W(V>ioS^!ieb?n^-Sfiei]?e

-Sir!

Competition for

Consumers'Dollar

Economic'Affairs

out close tieup between economic and political
neGj ^ wor^ markets for buying and selling; for

;-grea

r*j't'taytoO points

2471;

The First Boston Corporation

1,1966

2472

THE COMMERCIAL & FINANCIAL CHRONICLE

may have been claimed by pro¬
ponents of the Wheeler-Reed Bill,

Thursday, November' 14, .1946

U.S.

that

rarely, if ever, in the present
bankruptcy or receiver¬
ship resulted from inability to

Foreign Policy Stands

has

era

ii0n- james f. byrnes*

principal maturities .if the
earnings of the property were sat¬
isfactory. There is a disinclination
to worry about the heavy maturi¬

Percentagewise Illinois Central common has rebounded quite
sharply from the low established at the bottom of the break but it
is still

selling

substantially below the earlier 1946 high. Many
as among the most attractive of the specula¬
tive issues in the group at present prices. Illinois Central is one of
the few of the larger so-called marginal carriers that even at the
rail

ties

very

view the stock

men

of tne war boom in

ritugnt

Cons. "A"

dividends

resume

Illinois

Common & Preferred

ings have been reported in each
of the past ten years) the;man¬

Preferred

agement has utilized all available
funds for building up the
proper¬

ties,
improving
its
equipment
status, and cutting down the debt.

Paget Sound Power

One

the most

unfavorable as¬
pects of the Illinois Central pic¬

Light

ture

has

always been the heavy
schedule of the early

maturity

Ernst&Co.
■

•

U-rVCi'v-*: •'f.
*

This

■

been

means

solved

even

considerable

end

120

non-equipment debt has been re¬
duced by nearly $93 million to an
indicated level of not much above

Broadway, New York 5, N. Y.
.

231

So.

LaSalle

St., Chicago 4, 111.

whole.

million.

1950-1952

TRADING MARKETS—

Armstrong Rubber Co.
Magazine Repeating Razor Co.
4i;: Universal Match Corp. •
.

Dixie Home Stores

Berkshire Fine Spinning
Tennessee Gas & Trans.

■

attempt
to

year

was

solve

NEW YORK 5
Telephone
Teletype
HA ; 2-6,^2 <
NY 1-1499
.

Analyses1 On Rjeguests
D. L. & W.-M. & E. 4-6s 204?

Canada Southern 3 %

Stock

Electric Motors Co.

Harris-Seybold Co.
All

1950-1952
are

able)

followed

which

was

;

call¬

refunding of the 1955 maturity.

The plan was hot well received
by holders of the: 1950-1952 ma¬
and

was

consequently

abandoned.

Situations

maturity
exchange of¬

and 1950.

now

pointed

out,

Moreover,
despite what

the

industry

In respect to the adverse

favorable.

•

; ■

that

better-than-average ability con¬
sistently to carry gross through to
net.

This

should

substantial

augmented

capital

ments of recent years.

and close to $6.00 in 1947
if rate increases are granted in

look

back

with

criticisms

upon

that

in international

somewhat

that the fruits
of

victory

are

reasonably conserva¬
Such earnings
certainly

should support enthusiasm for the
shares.

Munich Forum lo Hear

George Wanamaker
George W. < Wanamaker, City
Comptroller' of Buffalo, N. Y.,
will be the speaker at the lunch¬
eon
meeting of the Municipal

lessened, the responsibilities
who participate in the
discussions

and

;

'«

'•'

*An

d dries s

Unless

Secretary

men

Street

New York 4,

*»

"whole¬

heartedly"'

t he

funda¬

mental

Connecticut I

'?.■ :s'\V

v\ X'j'•:

•:

ST.

Financial

"But

LOUIS, MO.

London is

now

St. Louis Co.,

V I Members New York

Broadway

Telephone—Dlgby
,

•

—

Harold E.

with Metropolitan

718 Locust Street,

often the

one

extreme to

has

happened in labora

reach

maturity only ori the day
When they step" f orward .to sensi««
ble middle ground,";
;
;

"I'm eagerly looking toward the
new era of economic development
when labor and management will

stability
Geo. T.

which labor

Christopher

and

sire

manage¬

sit at the table with fair and

equal
legal responsibility; come to hon¬
est and sincere agreements; and
trust each other in all good faith

mutually and earnestly de¬

ment

untii

all

labor-management
are
based upon a
of

equal

legal

to carry

Stock

''vN«w

Betl

Christopher, starting a coast-to59-year-old executive, who
coast tour of seven key cities to
12 hours a day for
17% cents an hour and who for bring; his dealers up to • date and
years has; bowled regularly with discuss confidential future plana,
his employees,; asserted, "Unions
predicted that * wildcat strikes,
worked

become

tainly .morp
they - accept

stronger,

cer¬

jurisdictional
tract

thereby benefiting

and

after

labor

conditions

Mclaughlin, reuss & co.

DENVER, SALT LAKE

/ S Members New York Stock Exchange

Income 6s-60

BOND BROKERAGE SERVICE

LONG ISLAND AIRLINES

Specializing in Railroad Securities

Adams & Peck
Wall

Street, New York 5

Boston

Tele. NY 1-724

Philadelphia

Hartford

NEW YORK 5

ONE WALL STREET

1. h. rothchild &

co.

Member of National Association

Securities

Dealers, Inc.

wall

HAnover

street .'

2-9072

A-'V

n. y. c.

5.s

Tele. NY 1-1293

•'

..."
v

TELETYPE NY 1-2151

HANOVER 2-1355 \

TEL.
•

♦

•

;

•

j-.

*•

i.'

.y \

"These," he said, "arKjtlie/fac¬
tors principally responsible for
(Continued on page 2507)
;

when workers lacked

ago,

the

reaches

in labor and .manage¬ legal level of management,

Recalling

con¬

violations' wilh largely ■>. dis-

appear

ment."

Teletype—NY 1-310

disputes

with authority,

York 6

and

jd?u)°cratic, when
responsibility along

Trading Markets in-

Active in Unions

The

Exchange

4-4933

them out."

Urges .Workers to Become More

Common Stock

BOwling Green 9-8120

I be¬

lieve labor and management will,

prosperity and

years

;

in democracy

case

jump from

"This

be able

heights

Stronger, More Democratic

Ry. & Ltg. Co.

Circular upon request

<.:

should place high

management relations,

we'll

to achieve the

Chhonicle)

2505)

the other."

unionism.

everyone

'•Vvl.

page

(Special to The

pflugfelder, bampt0n & rust
i".

back to those days. I, for
emphatically do not. But—as

-we

prin-

ciples

will

ac¬

one,

with

accord

Metrppolitan St. Lopis Adds

Telephone BOwling Green 9-6400
;
Teletype NY 1-1063

their

"constructive legislation designed to strengthen all
labor-management relationships by giving legal responsibility to
labor equal h> that which long ago was given to management," Geo.
T. Christopher, President and General
Manager of the Packard
Motor Car Company, told newsmen at the Astor Hotel, New York
City, Thurs-3>
most of the rights and privileges
day, Nov. 7.
Christopher they now have, Christppher de¬
he clared, "Nobody should ever wapt
explained

once

trying to don they Cjan

agendas

post."

Railroad Bonds and Stocks

;

are

Newly-elected Senators and Representatives
their

never

J4. Y.

various

Newly-Elected legislators Should Give Unions
legal Responsibility, Packard President Say$

relationships
solid foundation

peoples

Dinner, New York City, Nov. tions.
11, 1946.
(Continued

Says Unions Will Become

Broad

the

have little influence

responsibility," he declared.

en¬

tion

Sins

Times

CUARANTEED RAILROAD STOCKS-BONDS

spectacle but to

opinions.

Byrnes at Foreign Press Associa¬

Nov. 15 at

"Municipal

'''"'

peoples'of this world: to'

know what are the differences, of

the

and

times

lands do know what their states¬
•

the Lawyers Club, 115 Broadway,
New
York.
Mr.
Wanamaker's

subject will be
and What They

lic witness

able the

those

debates

and

have been open to the public not
for the purpose of letting the pub¬

edly,
open
debate and open discussion have
in many ways increased, rather
of

democracy

affairs should be

crude

The forum's of the, United Nata¬
tions and of the Peace Conference

James F. Byrnss

Undoubt¬

rude.

even

bitter-sweet.

than

first efforts at

our

are

e r

that have been leveled

contribution to open diplomacy.
It is not, however, surprising:

them.

disco v

wholly unmindful
very trenchant

the

some

open diplomacy as it is
practiced.
But, regardless of
the criticism, I am proud of my

states¬

they

men,

re¬

now

they were
struggling
to
>

who

against

the days when

appear

Forum of New York

We cannot be

press

longing

those

port them.

With this

year

tive,

responsibilities

the

many

improve¬

background the company's esti¬
mates of earnings of $4.19 this

full

Illinois Central has always been
an
efficient property with a far

is believed that considerable fur¬
ther debt progress can be made
between

that

In respect
factors, they are
still at work.
Expansion of the
service area has by no means been
completed. Also, considerable ex¬
pansion in trade through Gulf
ports is looked for.
All in all,
then, the future traffic outlook is

On the basis of the company's
still strong financial position and
the favorable earnings outlook it

sure'
per¬

to the favorable

earlier

the

problem through an
fer
to .holders of
the

turities

Selected

made

maturities (none of them

Howell

than

been

peak has been passed.

bonds due in 1955. Well over half
of the present
non-equipment debt
matures within the next ten
years.

72 WALL STREET

the

other

ment maturities due in
1953, and
$35 million of the junior mortgage

this

Van Tuyl & Abbe

Nevertheless,

maturities

equipments still amount to almost
$50 million. In addition, there are
close to $35 million of
non-equip¬

For years the press has been urging open
diplomacy, open cove¬
of peace
openly arirved at. Now that those great objectives
<§>have been at¬
nants

tained,

has

influences it is believed that the

beginning of 1941 the outstanding

$220

Central

the

alleled

has been made towards this
in recent years.
Since the

York Stock Exchange and other
leading Security and Commodity Exchs.

New

nations, and reads letter of Mother of Marine killed in action.

territory served.
On the
obtain
whole, the tr,end of revenues over
Like
a period of years has.
closely par¬

yet.

ress

years

$12,000,000.

prog¬

MEMBERS

third
and are
a

considerable degree this has
been offset by industrial growth

maturity problem has by

Nevertheless,

almost

peting fuels and other coal fields.

1950s.
'

charges

adversely affected by
barge competition and loss of
bituminous coal tonnage to com¬

put has far greater favorable im¬
plications oyer the longer term.
Consistently during these years of
profitable operations (net earn¬

Marion Power Shovel

stemming

manently

not in pros¬

pect, it is the contention of those
constructively disposed towards
the, stock that the use. to which
the company's earnings are being

Arden Farms

Illinois

earnings

fixed

cut by

below

now

do not look for any dividend
action for some time to come.
are

Central's

been

open diplomacy and full publicity of United
Conference, Secretary Byrnes emphasizes recent
elections will not alter U. S. foreign policy, which is conducted on a
non-partisan basis. Reiterates American people want peace for all

Nations and Peace

debt retirement.

during the past ten

stock.

tion

While dividends

have

Moreover, those close to the situa¬

5s, 1927

stock

Asserting his support of

at¬

concentrate

and

the improved

position of the
aggressive

earn-

its

such

from

ings, and despite substantial prof¬
its for a number of years, did not

Cliicago Railways

tention

i|:

Secretary -of State

meet

■/'*•

•

' 1"■

Philadelphia Telephone — Lombard 9008

■

Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number' 4542

NACA

US* and Russian Disarmament

Brooklyn

Chapter

By THE RT. HON. ERNEST BEVIN, M.p.*»

the

National Association of Cost Ac¬

of members of United
calls attention to his
disarmament proposal and its universal approval by Delegates to
the General Assembly*
Says Russian and U. S. views on question
can be harmonized and points out advantages of disarmament not
only as promoting peace, but in relieving peoples of tax burdens
and reducing number serving in armed forces.

British

the

Park-Vanderbilt

Restau¬

rant, Park Place and Vanderbilt

Avenue, Brooklyn, New York.
The
will
ber

speaker

be James

the

law

the

evening

Dohr, a

firm

mem¬

countant and member of the

of the

largest

tries are thinking, arguing and
expressing their views about the
.

papers

bar,

Great Britain,
One can¬ is
professor of accounting at the
the
The
not forget or underrate the right
Soviet
"Daily
School
of
Business,
Columbia
of those who by their daily toils
Delegation
University. Formerly Director of Herald," and I
create the - values
and
realize
used
to
kid
readily ac¬
Research for the American Insti¬
those attainments of civilization,
cepted this in¬
tute of Accountants, he is a past myself that I
the benefits of which we all en¬
vitation. It recontrolled
i t
president1 of the > American Ac¬
joy. We shall be hardly mistaken
gards this
until
I
read
if we say: they will gauge their counting Association and a mem¬ the leaders in
meeting as one
ber of the National Association of
©f
the
facts
leaders, statesmen and public men
the
morning,
Cost Accountants. Mr. Dohr has
by the degree to which they will
testifying to
then
I
gave
written several excellent articles
the respect
really prove capable of securing
on
business and accounting sub¬ up the idea!
to the peoples a peaceful life, of
for the inter-/
When
they
national or¬
raising their material well-being jects and three of his books, "The
Law of Business," "Cost Account¬ .reported t he
and of enabling them to fenjoy the
ganization
Ernest Bevin
speech. of
a
benefits of culture and life in ing'* and "Lecture Notes on the
which
serves
director, he
Law
of
Accounting" are well
the lofty aims
freedom.
did not appear very well next
V. M. Molotov
known. His special articles have
of the United
They will present these de¬
day.
appeared in "The Journal of Ac¬
Nations.
mands also to the new interna-?
.
>
But at this great gathering to¬
countancy" and in "American Ac¬
The war ended in our victory. tional organization which
now
night, I should like, for a few
counting Review."
The strivings of the peoples are unites 54 states.
minutes to tell you quite infor¬
directed at enjoying the benefits
We, the members of this inter¬
mally some of the thoughts that
©f universal peace.
The common national organization,
must be
continually occupy my mind on
people who constitute a vast ma¬ mindful of our responsibility to
the subject of foreign relations.
jority of the population in all the peoples. 'S We should have no
The first thought is of the people's
countries are only anxious that fears about the free
press remind¬
great anxiety as .to whether those
these possibilities to enjoy the
ing us of our duties by a- wide
of us who have the responsibility
An underwriting group, headed
benefits of universal peace should use of method of criticizing faults.
for making peace will so devise
be as stable and lasting as possible.
Of course, the press is not hetero¬ by First California Co., on Nov.
it as to prevent another war. The
They are fully entitled to this, geneous. I make no appeal that the 13 offered to the public 60,000
shares of 5% cumulative converti¬ thing which is constantly before
especially after the great feats of
press should be treated without dis¬
me is the extent to which ordiarms
ble preferred stock (par $25) and
performed
and sacrifices
made during the war.

ganiz ation.:

Portland Transit Co.

Stock Offered to Public

crimination.

dent

♦An address by Mr. Molotov at
Foreign Press Association Dinner,
New York City, Nov. Hi ,1946. :.

Sees

that

confi¬

even

the press, which even

peacetime prefers

(Continued

belligerent

on page

220,000 shares of common stock
(par $1), The preferred stock was
priced at $26.50 per share and the
common

2501)

and
with {

Allowing for UNRRA shipments
and continuing small exports on
lend-lease
account,
commercial
exports are running two to three
times higher than in .the late
1930's while imports are almost
doubled, the bank reported.
After

allowing
for
price
changes, the physical volume of
exports has increased two-fold
©ver "the
late 1930's, while im¬
ports are running about the same
before the

The latter are

war.

expected to exceed prewar totals
when rubber, tin and other items
become available in quantity, the
bank said.

;

"Practically all areas of I the
are
sharing in the great
expansion of our commercial ex¬
ports," the article pointed out,
"Canada is buying almost 200%
more- than before the war, Latin
world

300%

countries

more,

United

Kingdom 50% more
and continental European coun¬
tries 150% more."
Part of the funds necessary to

pay for our goods is
4he expansion in the
©f

our

obtained by
dollar total

imports, the bank said, but

notabiy

in only a

few countries,

Argentina,

Aus¬
India, does the United

tralia and

States
■■

ance

have

Brazil,

of trade.

Loans

mately

channels,
chance

gives

the

have

greatest

had of

ever

present day composition of
foreign trade mirrors the dis¬
ruption of economic life and trade
our

ments before the

war

to the pres¬

The bank pointed out that

endorsement

national law.
So

not

unduly perturbed

that there should be
about

much talk

the

possibilities' of future
trouble. It is right that doubts and
fears should be expressed and dis¬
cussed in the same way as hopes
and promises. Therefore I welcome
the present-day awareness of our

problems and I welcome also the
hard

realism now applied to the
great issues which confront us.
There have been two
the

process

stages in
by which foreign af¬

fairs have ceased to be the
the

come

responsibility of the
many.:
The first stage, namely,
getting the people to take an in¬
terest in and understand question's
of foreign, policy, was not enough;.
vThere,w^s

(Continued

tendency?between

2503)

on page

are

there

unfavorable bal-

approxi¬

commercial ex¬

ports, the bank added, or a total

on
'

each December
.

i, 1947 to

<•

1956, inclusive

v ■;

:/v,~: V-;,j ->V?v^:''SV V
as to

payment ofpar value and dividends

by The Chesapeake and Ohio Railway Company.

MATURITIES AND YIELDS
1947

For example, the article said,

1.00%

1950

1.40%

1954

1948 .1.15

1951

1.50

1955

1.80

export of which has been severely

1949

1952

1.60

1956

jflf

1.75%

exports of sawmill products—the

1.85

1.30

criticized in view of shortagesare

only 50%

volume

1953

1.70

large in physical

before the war and ap¬

Issuance and sale of these Certificates are subject to authorization
by the Interstate Commerce Commission«
-The offering Circular may be obtained in any State in which this announcement is circulated z
z i,
*

pear

to account for

no more

than

/-/

2% of current production.

-Exports

currently

about .8%

trade but the

;

from only suck of the undersigned and other dealers as, may lawfully offer these
securities in such State.

make

may

percentage

the bank warned.

"The

best

way

offset

increase

our

this

reality, it is the net result of trade
total

desired

HALSEY, STUART &, CO. Inc.

and

goods

by' Us is

only when

and

services

increased

foreign trade is beneficial."

PUTNAM &, CO.

THE FIRST CLEVELAND CORPORATION

MASON, MORAN & CO.

MULLANEY, ROSS &, COMPANY

ALFRED O'GARA &, CO.

F. S. YANTIS & CO.
INCORPORATED

im¬

ports," the article concluded. "In

the

commodity

add to inflationary pressure,

pressure

absorption of labor

and materials into that

that counts

finance

may

35%

Chile,

■;

in short supply in this coun¬

try.

issued under an. Agreement to be dated as of December
1,1946, which will provide for the issuance of #1,500,000 par value of Certificates.
to be secured by new
standard-gauge railroad equipment estimated to cost,
approximately #1,896,717.

of articles that

overseas

that

December 1) payable In New York
City. Definitive Certificates in the denomination of $1,000, registerableastopar value. Not redeemable prior to matur¬
ity. These Certificates are offered when, as and if received by us. It is expected that Certificates in temporary or
definitive form will be ready for delivery at the office of Halsey, Stuart & Co. Inc., 35 Wall Street, New York 5, New
York on or about December 2,1946. The information contained herein has been carefully compiled from sources con¬
sidered reliable and, while not guaranteed as to completeness or accuracy, we belieye it to be correct as of this date.
To be dated December 1, 1946. Par value and semi-annual dividends (June 1 and

November 8, 1946

-,.

;

pre¬

rogative of the few and have be¬

These Certificates are to be

to be no great amount of

movement

$150,000

To be unconditionally guaranteed

ent total of 24%.

appears

parts of the world as a re¬
sult of the war, the bank pointed
out, citing the rise in exports of
foodstuffs from 9% of total ship¬

mature

^.•/T:;; v"

in all

de¬

veloping a great moral force sup¬
porting the observance of inter¬

(Philadelphia Plan)

The

and I believe it has reached
the pitch ofpassion among the
people. This very urge, properly
crystalized and diverted into right

1%% Serial Equipment Trust Certificates

to be moved overseas this year.

predicts.

war.

war,

Chesapeake and Ohio Railway
Fourth
Equipment Trust of 1946 -

The dollar volume of US, foreign trade is rapidly approaching
record peacetime levels and may soon exceed previous highs set in
1919 and 1920, the November is-<^
sue
of the The Northern Trust of $2.8 billions out of a possible $8
Company's "Business Comment" billions worth of goods expected

American

another

$1,500,000

the

Address-"by Mr. Bevin before
ForeignPress» Association,
New York "City; Nov. 11, 1946.'

prevent

great human urge
throughout the world to prevent

the

stock at $7,50 per share.

imports running about same as prewar. Warns heavy excess of
exports constitutes an inflationary menace that can be offset only by
increased imports.

way

There

Foreign Trade Reaching New Peak

Northern Trust Company of Chicago reports both physical
dollar volume of exports more than two-fold over late 1930's,

all

war.

am very
happy tonight to be the guest of the Foreign Press
Association because for many years I have been associated with the
press. I was a
®
director of one
nary men and women in all coun¬

<£-

and decries fears of another

Greene

and

Greene, New York City, who
will speak on the subject, "Prob¬
Permit me above all to thank you and the Foreign Press Asso¬ lem of Inventory Valuation."
ciation for the invitation to this banquet in honor of the United
Mr. Dohr, a certified public ac¬

Kations

foreign policy spokesman extolls universal desire of

Says Britain
favors disarmament, but was almost
brought to ruin by adhering
to it alone after last war.
Holds principal need for continued peace
now is
atmosphere of international confidence and faith in United
Nations to replace nationalism as means of
affording security
to peoples.

Wednesday evening, Nov.' 20,

at
.

Secretary of State for Foreign Affairs, Great Britain

nations for peace,

1946-47 series of technical sessions

Russian statesman, in stressing responsibility
Nations to their peoples to promote peace,

The

countants will hold another in its

U.S.SlR.

Minister of Foreign Affairs,

(Bklyn.Chapter) Britain's Faith in United Nations

To Hold Tech. Sessions

Proposals Can Be Harmonized

2473

■

•!.

.•

•

;h-

fr.. v

•

\:-. V ';

'.'V

-.* A «

•

.'■"I

:.1

■- -j

^'V. ;-y; .'X.-,
'> *'V'* -V •: .'-''f'Kj.

.s;.:v
..

-v

■

••

V '■

H-J'^ Mf'

THE COMMERCIAL & FINANCIAL CHRONICLE'

later call Mr. G. bought additional
shares and gave , the dealer the
names

Mutual Funds
V

By BRUCE WILLIAMS

sistant

ari<^
he because

"drafted" as
Stettinius when

few of his friends.

new

accounts

over

and total-

$50,000."

From

the

number of

huge

things they want. These thingsSecretary of State.
'
During the war interval Dela- housing, automobiles, television,
ire Fund was entrusted to other air travel, vacations, leisure, and
lanagement and more or less put many others—are listed in some
>n ice.
Now these gentlemen are detail. Hence, says Mr. Krug, all
rery much back on the job and we have to do is remain smiling
"Reau"
Barringer's weekly re- and confident, and everything will
•
>rts, which were so favorably be O. K.
10wn among dealers before the
"It is quite true that we need a
rar, are again making their regu- multitude of things, and that we
ir
appearance.
We quote - from want even more. The peons of
le Nov. 1 report:
Mexico need even more things,
"X am tempted to take a text and IJ suppose they alsq want
rom an article, reprinted in the then*;, Both we and the peons in¬
teader's Digest' for October, by habit Countries that : are' riclily
ras

Agricultural Industry Series.....
Alcohol and Distillery. Industry;

Total

.18

1.83

2.01

.18

1.75

1.93

Automobile Industry SeriesJ..L..ii..l^
,10
Aviation Industry Series....24

,30

.40

.80

1.04

.10

.02

.12

.07

.10

.17

.13

1.33

1.46

.09

.60

:—i........

Stock :Series—

Building Supply Industry Series-..^-_.__«.._>.
Business Equipment Industry Series_._.L____._. *
Chemical Industry Series:._^..._^u._.^.._.^__>
Electrical Equipment Industry; Series.i._..„^.w
Food Industry
Government Bonds Series.
i
•Insurance Stock Series——-^.———

,08

.73

for fear of a depression,
of

have wanted them this much, and

ings our people need—and even

have worked hard and intelligent¬

>ecause

the

huge number

intelligently.; In the past

;Q5

.50

honIl

tion ] than

SECURITIES

NATIONAL
RESEARCH

seen

NEW YORK 5, N.Y.

—

.04
.10

to" foay

pro¬

any,

stockholder

the stock giv¬

ing rise to the right when such

right accrued, eveji though such
stock was not registered in hi5
name;
and in determining such;:
fact the bank may rely upon a
signed statement of the borrower
which the- bank accepts in good*■

faith."

.24

.74

.78

.52

.59

.18

.30

.27

.38

,10

.08

.18

.19

.22

.41

.09

.70

.79

—

Tobacco

Jndustry Series^—

Diversified Investment Fund.ls.v-----------Diversified Speculative Shares!
—!———

FR8 Eases Margin Role (or
Exercise oi Stock Sights
Will permit after Dec. 1 50% margins by stockholders in exercis¬

tion's securities in the exercise of

the

suing

registered security

or as

makes

some progress toward the
quired by stockholders of' utility visidns of Section 11 of the Public
peak efficiency of the early '40s, holding companies through ac¬ Utility Holding Company Act of

continue to need and vyant tions taken to
simplify their cap¬
all the nice things Mr. Krug men¬ ital structures under the Public
can

Business

yyj' -,,-...

-v..

'>■,

■

Man's

Bookshelf
Executive Ability;

Its Disjcoyefy

and Development—Glen U.
and

ton

CleeW. Mason—The
Yellow Springs,

Charles

Antioch

Press,

Ohio—Cloth—$4.50.

"stock rights" on a 50% margin. a stockholder of a; company dis¬
'"Until the productivity of man¬ The same
ruling was applied; to tributing; the registered security
ufacturing
and
service
labor stocks of, operating utilities s ■ ac¬ in Order "to effectuate the pro-

borrower

.12

——„

•

right shall1 foe
' been issued t to

The

2.04

"What Mr, Krug omitted in ar¬
riving at this conclusion was the
requirement of hard and efficient
goods credit controls expected.
work to achieve the production
that would realize the things that
On Nov. 12, the Board of Governors of the Federal Reserve
we need arid Want; and cause such
Board announced that beginning Dec.
1| stockholders of a corporation
a
level of prosperity
qp-. would may buy new* issues of a corpora-^
tribution.

the

.72

1.89

ing rights to purchase new securities.! Action applies also to in¬
quisitions by utility holding compainy stockholders resulting from
simplifications of capital structure. Early relaxation of consumer

bring ^bout their • equitable dis¬

deemed

.73

,64

CORPORATION

120 BROADWAY,

has probably been

before.

seCuritiesseries
Prospectus* upon request from
your investment dealer, or from

;

value,

regulation.

.55

.71

As recently as the late war,
the people of this country threw
a
greater
amount" of ,, energy,
brains and efficiency into produc¬
ly.

loan

scribed in the supplement to this |

1.97

,02

sion, or

imum

.81

1.87

Machinery Industry Series.
? ;08
Merchandising .Series-^-*———-14—-1-,—
.15
Metals. Series—
r
i
i ;
.08
OilTndustry iSerfes..—
" ".14
Public Utility Industry Seriesw
—4—.
,04
Railroad Series.^...1.-i.;07Railroad .Equipment .Industry,
,Series.rT^^,.<w.«-; ,:U2
Steel Industry Series^.—
.11

—

nfew

and

received shall have only the max* y

.69

Bank

Secretary of the Interior, endowed with natural resources.
[The views expressed in this article do not necessarily coincide
lies in that the
\ J. A: Krug, entitled 'What Are The ^difference
re Afraid Of?'
This boundlessly peons don'jt want these things with £ho?e pi.'tfte • f'Chrehicle^v. iThey inre presented as those of the
author only.]
;
'
iptimistic burst points out that (with the exception Of -leisure);
enoiigh to work for them, hard
lere is no reason for a depres¬

>ur

any reasonable method. After thie
loan has been made, the stock sq

he actually owned

Frpm

B Income Profits

Although investment company personnel generally was well rep¬
resented in the armed forces, no other sponsor can quite match the
record of Barringer, Nelson & Hyde, Philadelphia investment counsel
rm and sponsor of Delaware Fund.
All three principals went off to
rar in positions of high responsibility.
Mr. Barringer came out a
>lonel, Mr. Nelson a Commodore, and Mr. Hyde according to our
was

ling well

Dividends
date, and this 'chain reaction' has
New York
by no means exhausted; itself,
Stocks, |nc. — The
there have been a total of 57 pur- following year-end distributions
cpases of National Trust Funds payaple Nov. 25, 1946, to sharemade by 20 different purchasers\ holders of record Nov, 6r

Back From the Wars

information

I..

Thursday, November 14, 1946

1935^: and (2) the ^creditor shall

Relief

Security.---:

Social

and

Lbwis- '^eriatinMrhe prookihRf
Institution,- Washington, p. C.—
Paper—50c.

Crucial

Twenty

Years

—

The

Story of Incorporated Investors—
Parker

Corporation,

Court

Street, Boston. Mass.—Cloth.
f;

•

'!•

*■
■

■.*

-j'..

•;

Will

■

■■

N-.'r ':.>(*:■ r •>*!'■*■■*> V--:

...

Guaranteed

the

'?►*'•

-•?..•. v?-;:fr«•;•>.

*
•.

Annual

Work?—An evening with
Economists—text of round

Wage
the

table discussion by fifteen leading
economists

—

National'Industrial

Conference Board, 247 Paris
17,

N. Y.—

paper-*50'c (lower price

on ^quan*
**
A

Avenue,

New

York

tity orders),

Ranger Fastener Stock;
Offered by F. R. Lushas

Obtain; a deposit prior to the in¬
An issue of 75,000 shares
of
have shortages, Utilities Holding Company Act. itiation of the transaction in such
high living costs, and questionable The object of these new rulings, it amount that the cash deposited Ranger Fastener common stock,
corporate earnings, ,
r' ^ •'
is stated, is not to relax existing plus; the maximum loan value of par value 10 cents, is offered to¬
day by F. R. Lushas Co., New;
"And Until some "signs of this curbs
on
securities. speculation the securities so acquired or der
York.
The offering price is $2 •
attitude on the part of the major¬ but rather to
prevent hardship to posited equals or exceeds the sub¬
ity of the people appear, I don't shareholders who wish to; take scription price^ giving effect to a per share. The company, incor¬
think that. one can be any more
advantage: of their rights to acr maximum loan value for the se¬ porated under the laws of New ■
than a temporary and opportune
quire additional shares of stocks curity so acquired or for any other York, on Sept. 25 last, has not yet
commenced operations.
istic bull on the stock market" in
^
companies in which they al¬ registered security so deposited
It
proposes
to engage in the
Of 50% of its current market value
ready have an equity interest.
Dealers, Please Note!
business of selling and distribut¬
and

tions,

Manhattan

still

Bond Fund

According, to word from the
The following ^ever-timely com¬
"Chronicle's1? Washington corre¬
is quoted from the current
spondent, some "streamlining" of
issue of National Nates published
Regulation W" is also anticipated
by National Securities
Research
at an early date. The present con¬
Corp.:
sumer credit regulation, of course,

ment

"Some

had

Prospectus from your Jnvestmenjl Dealer or

HUGH W. LONG & CO.
inc0e»08at(d

wau

street. new york 5, n.y.

iOi ANCUiS

CHICAGO

salesmen who

experience

have

not

distributing

trust shares are fearful that they
will 'tie up' customers' funds and
not be able to do the usual amount
of switching.
It is fallacious to

believe that accounts get 'frozen'
in
investment funds any more
than
in
individual f? securities.

Drastic declines such as we1 have
witnessed
in
the past
several
months have hit listed securities,

determined by any reasonable
After such acquisition,

method.'

the

security

securities so

acr

ing
slide
fasteners
(zippers).
Company will sell and distribute

-zipper .constructed with a re¬
movable slider so that it can foe
any,
prescribed; for general ac¬ released easily by the user to open
the closing.plates when the te(eth
stems? from a temporary execu¬ counts in the supplement to this
The .right shall be are jarnmed,-enabling the removal
tive order. The Federal Reserve regulation.
or
clearance of the obstruction
Board's position seems tof; be that deemed to be issued to the cus¬
tomer as a stockholder if he actu- causing thei^ jamming and^ wheny
consumer durable
goods, which
this is dope the slider? can be re*>
•constitute -the major items of con- ftiy^ owned; the stock giving rise
attached easily by the, user or, if
sumer credit, should be subject to'J
tp the right when such right ac
"
' "J
the slider is derailed,;, it can foe ^
permanent Reserve Board credit crued, even though such -stock
removed
and adjusted to run
controls.
Representative
Jesse was not registered in his name;
4
'
Wolcott of Michigan, who is in and in determining such fact the along the teeth properly;' ;'
line for the chairmanship of the creditor may rely upon a signed
House
Banking ^ and
Currency statement of the customer which New York Stock Exchange
Committee next session, has gone the creditor accepts in good faith."

quired ;or deposited . shall have
pnly the maximum loan value, if

•

over-the-counter^ and new under- on record as favoring the freeing
The amendment to Regulation U
writings much harder in some in¬ of
consumer credit from all con¬
read:*
*
stances j. than
good
investment
trol, but Board members fe$l that ! "In connection with the making
funds.
'
•
<
the case for control of credit on of
9
loan the sole -purpose of
"The important fact, however, is durables should at least be heard
Which is to enable the borrower
that satisifed .clients ' in .invest¬ by the Cohgress.
'
to acquire stock in a corporation
'

Weekly Firijt Change^

The New York Stock Exchange

ment funds not only re-purchase

again* apd again; hut arc frequent-'

,ly a rich

source

new accounts.

satisfied purchaser is often
Willing to recommend a group in¬

vestment when he would not think

of
.

Prospectus

from

pour

The

map

be obtained

local Investment dealer or

Keystone Company
of Boston

Congress Street, Boston. 9, Mars.

advising Jxis

some

friends

buy.

individual issue. The follow¬
an

the

National

Income

Series.

bersblP of Philip B, Winston toy

easing by exercising a warrant or certif¬ JEtichard A. Eising will be consid¬
exercising of stock icate evidencing a right to .acquire ered on Nov. 21, Mr. Eising Will
rights constituting an amendment such stock, which right expires continue as a partner of Hirsch y
to Regulation
Within 90 days of issuance and & c
T, is as follows:
'
Transfer of the Exchange mem*
"(1) Subscriptions — Notwith¬ was issued to him as a stockholder
standing any other provision of •of such corporation or as a stock* bership of the late Howard F*ythis regulation, a creditor may ef¬ holder of a company distributing Clapp to Rudolph Reimer will bey
fect and finarice the acquisition of t!he stock in. orde^ to effectuate considered by the Exchange on
a
registered security for a cus¬ the provisions of Section 11 of the Nov. 21. Mr. Reimer will continue
The order pertaining to

of margins on

tomer in a general account through
almost classical example
the exercise of a right to acquire
advantages of radiation such security which is evidence
sales:
by a warrant or certificate expir¬
ing.'.within 90 days of issuance,
"On June 9, 1944, a Mri Gr
pf
provided (1) such right was orig¬
Pittsburgh bought 63 shares of j
inally issued to the customer as a

ing is

has announced the following firm
changes: 0
* ;
*
?
.
"
..Transfer of the Exchange mem<

Public Utility Holding Company
Act of 1935, a bank may treat any

stock

received

connection
such loan

with
as

collateral

the

making. of

as a

partner of Reimer & Co.

Transfer

"of the Exchange'mem¬

bership Of the

late Irving Blu-

menthal to Solomon E. ShahmoonN
will- be

considered

the

Ex¬

a maximum
change on Nov. 21. Mr. Shahmoon
of its. current it is understood will act as an in¬

having

loan value x>f 50%

stockholder of the corporation is- market value as determined by

dividual floor broker.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

Volume 164

toward- the

Reporter

\ k ^

'/"jVi j

„

|/\

/ ' 5 N'1

\ "

(

Governments

on
£ •?'

'/l*1

'■JiC'f, s M lVY''

hand, the opinion is held in some quarters, that
prices are tending to top out near these levels, and it is best to
stay on the sidelines until there is more certainty in the situa¬
tion.

.•

A'v',

*]-

since that date.

*l *Xl

w''<

' '

"i':'

,/ I ' * V"?

•

• 1

'*»

»'/

John B. Burrows Joins

First Colony
John

? holdings from that date amounting to $225,000,000.
to

reports

taken

the

both

Member banks

Richmond
tions.

taxables

and

partially

by these institutions.

area

in the Cleveland district

have. been

purchasers of

v
well

the

have

been

THE

also

ties

longer-term obliga¬

Union' Securities

National Bank

banks

have

Trust Co.

been

the

market

not

Mr.

too

large a
scale with new money, but they continue to shift some of their
eligibles into the restricted issues.
There is no sharp pick-up in de¬
mand yet from these institutions,, despite reports that they are in¬
.

new

•

Life insurance companies

...

of the longer partially exempts.

indicate the effects of the Republican victory
on the money markets;,,Despite the talk of a balanced budget and
lower taxes, it wilt be some time yet, probably well after the turn of
the year, before there is likely to be tangible evidence of what may
take place along these lines.
.
The fiscal policy of government,
which will be principally in the hands of the new Congress,'will be
most important.
It is evident that the country, cannot go on in¬
definitely with unbalanced budgets; . .
It; has . been indicated by
Senator Taft of Ohio, one of the most important and influential Re¬
publican leaders, that expenditures for the Army and Navy should
be cutrailed.
These reductions, it is assumed, would still leave
sufficient provision for national deiense. ..
It is agreed by most fi¬
nancial experts that the important points for curtailment of expenses
should be in these two items, but it is also- admitted that it will take
courage to do this and it is not likely to be very popular; as would
any move to halt the expenditure of funds. ... Certainly expend¬
itures should be reduced if there is to be a lowering of taxes.
If
there is to be a decrease in taxes without a corresponding cut in ex¬
.

...

duties immediately.

With Ernst & Co.
Ernst

Company,

the

mean

foundation

for future

this will result in maladjustments which

along in the cycle.

way, New York
the New York

trouoie

announce

•

them

For the first time in almost a year,

redemptions, there
Reserve

was a

has

RESERVE HOLDINGS DECINE

term

government bond market for some time, which

counts

for

securities.

the
.

their

commission

formerly

was

Sagar & Seeholzer.

minor

changes

their

doubt

positions

This advertisement appears as a matter
as an

—

Julius

;

of record only and is wider ho circumstances to he construed.

offering of these securities for sale,
•

Abernathy is engaging in the

or as a

solicitation of

offer to buy

*such securities. The offering is made only by the Prospectus,

any

will be more evident as we

sound for

Portland Transit

the nation.

beneficial to
Accordingly, it does
be definite on fiscal

Company

Taxes should be handled so that they are not only

the individual but also helpful to business.

not seem as though there will be much that can
affairs, until there is tangible evidence of how the problem
budget and taxes will be dealt with "by the new Congress....

J| ^'

60,000

of the

5% Cumulative Convertible Preferred Shares

Y'Y

/
, :
The trend of business and the level of commodity prices will have

BASIC FACTORS

•

.•

($25 par value)
•

Dividends

the money markets, irrespective of the party
that is in control in Washington. ,
.
An inflationary development
•would be given different treatment, than a recession in business, .

important bearing

san

from date of issuance

accrue

Price $26.50
per

the future trend
conditions will be the attitude and position of labor.. ,.

Undoubtedly one of the most important elements in
mt economic

A reactionary labor

policy would no doubt lead to prolonged labor

220,000 Shares

business/ .

^difficulties, which would have an unfavorable effect on

-v-.'

that will be
followed by the new Congress, in dealing with labor, there will be
an element of uncertainty in the business picture...'. This should
be watched carefully for possible effect on the money marTherefore, until there is some idea of the course

Common Stock

($1 par value)

Price $7.50 per

KO CHANGE IN POLICY

that debt service would amount

The statement of Senator Taft

immediate

$5,000,000,000 in the new budget seems to indicate no

change in interest rates, since this
rate of about 2%,

which is the same

Likewise the,remark, by

figure assumes an average debt
as that presently prevailing. ...

Copies of the Prospectus
as

may

be obtained in

any

State from only such of the undersigned

lawfully offer these securities in such State,

may

the Senator, that "I do not favor paying off

trend in d,ebt
that being fol¬
lowed by the Treasury/ . / / Debt retirement from now on must
come from surpluses resulting from an excess of revenues over ex¬

the national debt too fast" is J^elieyed to

fprecast

ananagement that is not likely to be too disimilar to

penditures.

to ahy part

...

Debt management will no doubt be very important

service.

•

-J

<!•

Company

Weeden&Co.

Rauscher, Pierce & Co., Inc.

he-the

Kaiser & Co.

Allen & Company

and there seems
to take place...

Frank Khowlton & Co*

Wulff, Hansen & Co.

Hannaford & Talbot

Nelson

Douglass & Co.

Foster & Marshall

Blankenship, Gould & Blakely, Inc.

E. M. Adams & Co.

Holt, Robblns & Company

Camp & Co.

to he an attitude of wait and see, what is likely /
•

However, in no case

continued...

Stewart, Scanlon & Co.

policies. ... As for the longer-range program, this will depend
in no small measure upon the legislation that will be enacted,

mot be

Despite the unknowns in the situation, it seems to

Scherck, Richter Co.

opinion of most money market experts that the short-term out¬
look for the money markets is for no change in present monetary

First California

idebt, and the political and economic implications that would result

■

n,-.

in Washington because of the tremendous size of the

Yrom an increase in debt

V",

'j, * ■ *

.r-?

is there a feeling that low interest rates will
^

•

Hemphill, Fenton & Campbell
v

Chas. N.
,

banks
Although the shift in securities by the commercial banks has not

Fordyce & Co.

Atkinson, Jones & Co.
V^

Incorporated

Tripp Company & Daugherty, Cole & Co.

.William J. Collins & Co,

activity by
/

taken place
there have

of the recent uptrend in prices,
changes made, with reports indicating a trend

yet in volume* because

been some

Abernathy Opens

NEWTON,

curities business.

bility for that section of the list.

Julius W.

ac¬

these

...

lines that would not be considered exactly the most

Mr.

a partner

NEW ISSUES

bond

department.

The Treasury seems to have taken on the responsi¬

very

Such a course

prominent in the fiscal policy of the new
Congress, which may he looking toward 1948, then it could mean
a, somewhat different approach to the problem, probably along

with

associated

manager

$1,900,000..., These Banks have not been important in the longer-

is being laid: and

If politics should be

Broad¬

that Walter F. Seeholz¬

become

120

City, members or
Stock Exchange,

Seeholzer

(Dec. 12, 1945) aside from

change in bond holdings of the 12 Federal

Banks, last week, when they reported a decline in holdings

...

penditures, there will still be deficits as in the past...

his

assume

Walter Seeholzer Is

are

continue to be buyers of the 2M&
due 1956/59 and the 214s due Sept. 15, 1967/72, as well as some

will

Burrows

terested in putting funds to work.

Corp.*
the Chase
and the Equitable

It is still too early to

move

with

...

NEW CONGRESS

would

Burrows, formerly a mem¬
Seligman & Co., has
served in executive capaci¬

the Thomas Edison Co.,

SAVINGS BANKS

Savings

City, it
G. Sittig,

ber of J. W.

those in the

York

Mr.

Street, New

announced by John
President.

According

exempts
-

Wall
was

•

...

rection because of the elections..

been

has

Colony Corporation, under-,
writers and security dealers, 52

changed the make-up of the Congress

which

election

Corp.

Burrows

First

■;

other hand, the Chicago banks have been buyers
(except last week) since July 24, with the increase in

il
•

...

following much the same policy as the savings banks, although it is
is
indicated they are somewhat more interested in switching than in
given as the reason for a cautious attitude at this' time toward the
market..
Nevertheless, none of the money market experts believe using new funds.
that there will be decided price changes immediately in either di¬
Smaller commercial banks
The

named First Vice-President of the

the

each week

On the other

£ The government bond market has turned dull and inactive, after
having recovered practically all of the minor losses that were registered following the elections*.;., $. The December financing may also
have something to do with the present tone of-the. market. . .. . Prices
have been quite stable during the last two weeks, with the market,
however, showing a rising trend. .
There are some who believe
that fluctuations will continue to be narrow, and it was pointed out,
that investment markets do not, as a rule, show very wide price
changes.
v These sources are of the opinion that the government
bond market is rapidly becoming the true investment market, that
at should have been all along, because the speculative element has
been largely eliminated, and operations now are principally for in¬
come purposes and more permanent holdings. . , .
"
.

disposed of taxable issues, principally the 2*4s due 1956/58, in order
to take on the longer partially exempts and thus improve tax-free
yield. . .
The New York City member banks since Oct. 2, have been
sellers of bonds with holdings of these obligations down $171,000,000

$t; ' ^ -V

By JOHN T. CHIPPENDALE, JR.

"Our
«

-higher income longer-term obligations.
Among the
larger New York City member banks, the purchases have been large¬
ly in the partially exempts.
Some of these institutions have

November 13,1946

•

*■

W.
se¬

THE COMMERCIAL & FINANCIAL CHRONICLE

2476

Thursday, November 14, 1946

market - continued quiet but there
was

Canadian Securities
By

internals

cant Progressive Conservative gain in Portage la Prairie is causing
growing unease in Liberal circles. This feeling of alarm has given
rise to a recent statement of Prime Minister Mackenzie King to the

in the

party

elec¬

1950

&
Paper

for

encouragement..
To
strengthen the Liberal regime the
cause

introduction of

appear

Company, Ltd.

Premier

a r

new

blood would

highly necessary.
s o n
of Manitoba

outstanding choice
and as a first step he has been
mentioned as a successor to the

5% First Mortgage Bonds

Hon.

ment

$2.50 Prior Pld. Stock

Ilsley in the Depart¬
Finance.

However

;

matters stand there is little incen¬

tive for

$1.50 Pfd. Stock

would

rising politician to asso¬
with a seemingly
waning cause. There is also the
precedent of Progressive Conser¬

were a

shade firmer fol¬

denials of
intention of making a further
change in the Canadian dollar
parity, but little impression was

maintained

all the above securities

Arrangements made for payments between Argentina and sterling
area and
provisions made for purchase by Britain of Argentine
meat, and plan formulated for nationalization of British-owned
railroads in Argentina,

made

free

which

funds

fluc¬

tuated either side of 5% discount.
on

the

other

hand

were

quite buoyant with golds and base
is

that

cordance with Bretton Woods

Dec.

position.

reconsider

The
the

re¬

the

Now that the step has
only too easy to

been taken it is
see

tween

v.::;-; "::

doubt

quirements they have, if necessary,
until

The following is the text of the Agreemeiit reached recentlybethe Argentine Government and the British Mission headed
by Sir Wilfrid Eady:
,

the defects in the situation.1

The ample balance of U, S. dol¬
lars built up under wartime con¬

ditions, and by speculative bond
purchases at 10% discount, is al¬
ready beginning to dwindle. Can¬
ada still has to import from this
country
to maintain her
high
standard of living and her exports

undersigned,

plenipoten¬

tiaries appointed to this effect by
their

respective governments, as
of negotiations carried
this capital between the
Argentine and British missions,
result

out

have reached

cerning

the

agreement con¬

following

questions,

the attached texts of which form
an

integral
instrument:
*■

part
.

of the present
" ' * '
'

B.
■

Sterling balances accumulated
up to

date of this agreement.

(1) As at the date of this agree¬
ment, the spot balances of sterling
accumulated

Argentine special

account to be established.

(2) Argentina to be free to util¬

(1) Payments,
(2) Meat.

subsist, this free availability can
be exercised by transfer to Amer¬
ican account or, at the option of
the Bank of England, into gold.

(3) Railways.
(4) The negotiation of

ize/part of this balance: :
*
(a) To/repatriate outstanding

trade

treaty.
/ The
Argentine Government arid
the ^ Government of the United

Kingdom enter into

engage¬

to take necessary steps to
implement the agreement referred

ment

•:

sterling public debt, national,
provincial and municipal.
<
:
(b) To transfer to Brazil, sub¬
ject to that country's agreement,
an amount up to £10,000,000.
(c) To repatriate British in¬
vestments in Argentina.

(3) The sterling balance which
to.as soon as possible.
Argentina maintains in London
largely to countries which are
deliver U. S. dollars.
(as established in B(l)), as also
I. Payments
the balance -resulting therefrom
vative leader John Bracken who It is also necessary to qualify the A. Current
Payments.
once operations in B(2) have been
glib statement so often previously
abandoned the Liberal ranks to
;■- (1)'; Trade and: financial pay¬
carried out, to continue to enjoy
head a drive for Conservative su¬ repeated that the cost of living ments
between Argentina and
in Canada is so much lower than
the existing gold guarantee.
premacy. The prospects for suc¬
sterling area: to continue to * be
in this country. 'As far as the
cess if Premier Garson followed in
(4) Interest on this balance to
settled in sterling..
necessities are concerned
be Vz% per annum, such interest
the footsteps of his predecessor basic
(2) As from date of this agree¬
to be freely available for current
in office in Manitoba appear even this is broadly correct, but when
ment all sterling received by
semi-luxury and luxury items are
transactions.
brighter.
r
Argentina to be freely available
% Unlike the movement in Europe considered which assume impor¬ for
(5) Of the said balance, Argen¬
payment for current transac¬
tant proportions in the Dominion's
the political swing on the North
tions anywhere.
So long as the tina, in each of the four years be¬
American
continent is
in
the high living-standard, then it can
present technical difficulties tem¬ ginning as from the date of this
direction
of
conservatism. fThe be stated that the reverse is true.
agreement, to be free to dispose of
Thus the outlook for the course porarily preventing transfers of
bye-election at Portage la Prairie
sterling to certain other countries v, (Continued on page 2496)
indicated that popular reaction in of security markets is still con¬
fused and dictates in consequence
Canada, as in this country, favors
the removal of bureaucratic re¬ a period of cautious waiting.
ciate

Common Stock

Active Markets

were

unerring political instinct
authorities,
having
that has kept the Liberal, leader Canadian
at the head of his party for a taken such a decisive and mo¬
mentous step as the restoration of
quarter of a century thus per¬
ceives the danger signals ahead. the Canadian currency to its old
Moreover in looking around for a parity, can not contemplate lightly
any early retreat. However in ac¬
successor within the Liberal administrational ranks there is little

fair volume* and

any

There

The

Argentine Monetary
And Trade Agreement

also

were

metals to the fore.

tions.

Power

1965

semi-official

lowing

Stocks

effect that he

Abitibi

finally offered at 99 V4. Dominion

The popular urge for a change continues to exert its effect on
the Canadian political scene. The precarious Liberal advantage of
four votes in the House of Commons in conjunction with the signifi¬

Liberal

5's

traded

WILLIAM McKAY

might reconsider his
previous decision not to lead the

the

Abitibi

in Albertas
bid at par.

activity
long 3's

same

with

himself

are

hard put to

analysis available to

A brief

Dealers, Banks and

Institutions

JX»u?no7i Securities
c

Grporatioti
v '

,"v.

strictions

J:'

40 Exchange Place, New York5,N.Y,
Bell System

Teletype MY 1-702-3 *

and

the

restoration

private initiative. Tho Progressive
Conservatives therefore now have
the opportunity

capitalize on

the current trend. With

American Labor Disputes

Moise Elected V.-P.
Of

Threaten World

Blylh & Co., he.

Recovery

capable
province,
(Continued from page 2459)
Blyth & Co., Inc., 14
Wall
especially one who has worked
national Monetary; Fund: and the private banking facilities would
Street, New York City, announces
not only in the interests of his
International Bank.
not for some time be in a position
the, election of William L. Moise
own
province but also for the
to achieve,
as a Vice-President. He has; been
Objective of the Fund
country as a whole, the Progres¬
connected with: the firm since
sive; Conservatives would even
The essential objective of the Bank's Credit—Granting Powers
have reasonable prospects of suc¬ 1935, having occupied the' posi¬ Fund is the revival and
The Bank is empowered to ex¬
expan¬
cess
in the conservative-minded tion of Eastern Sales Manager for sion of international trade
in
credit
through tend
three
principal
a number of years, and in the fu¬
Province of'Quebec!,
*
'
the promotion of exchange sta¬ ways.; First, it may lend
directly
ture he will be engaged princi¬
bility and the elimination of the out of its own capital funds. Sec*--:
During the past week the bond
pally ih the origination and nego¬ destructive
exchange
practices ond, it may lend out of funds
tiation of new financing..
which inhibted the flow of world which it borrows
through the is¬
Mr. Moise is a graduate of An¬
OFFERINGS WANTED r
trade before the war.
suance of its own obligations
in
napolis and during £ the recent
the
private capital markets of
The essential objective of the
war was on leave of absence from
Alberta 3s, 3^48,3*4$
Bank is to promote the interna¬ member countries.
Third, it may
Blyth & Co. for a period of 3%
tional flow of long-term capital guarantee, in whole or in part,
British Col. 4s, 4%$, 5s
years, during which he served as
and to assure funds for the recon¬ loans made through the usual in¬
a Commander in the Navy;
He
leader

from

western

CANADIAN BONDS

GOVERNMENT
PROVINCIAL
MUNICIPAL
CORPORATION

Manitoba 4s,
Nova Scotia

CANADIAN STOCKS

4*4$, 5s

4%s, 5s

Ontario 4s, 4*4s, 5s

INCORPORATED

TWO WALL STREET

awarded the Bronze Star for

services

with

connection

the

original landings on Leyte in the
Philippine campaign.
He is a
member of the Lawyers Club, the

struction of devastated areas and

the

development of resources in

member countries. *

vestment channels.
Direct loans

are

to be made by

the Bank only when they cannot
be
floated through the normal
channels at reasonable rates. So,

Together, the$e institutions,
and effectively adminis¬
it is clear, I think, that the Bank
Bond Club of New York and the tered, can help nations and peo¬ will serve not as a
damper upon
ples to raise their standards of
Naval
Saskatchewan 4s, 4%$, 5s
Academy Association of
private investment but as a stimu¬
living through more efficient pro¬
New York.
(
lus to it, expanding the invest¬
duction and 'through freer inter¬
ment sphere by acting as a stabil¬
change of the goods they produce.
izer
and
guarantor of private
R. D. Quisenberry Opens
If they succeed in this, they will
loans and by promoting the con¬
MONTGOMERY, ALA.—Ralph have laid a sound foundation for ditions under which
private in¬
the political measures, requisite to
D. Quisenberry
MEMBERS
vestment can prove fruitful;'
has opened'Of¬
the maintenance of peace.
New York Stock Exchange and other
fices in the First National Bank
Speaking entirely for myself
leading Security and Commodity Exchs.
The International Bank is not and not as an
official exponent of
Building to engage in the securi¬ intended to compete with private
120 Broadway, New York 5,N,Y.
the Bank's views, I should say
ties business under the firm name banks. On the contrary, it is de¬
that the Bank ought to make
231 So. LaSalle St, Chicago 4, HI.
signed to serve as a buttress to every effort, even in the early
of R. D. Quisenberry & Co.
private finance. One of its stated stages of its operation, to help
functions" is "to promote private borrowers
obtain the funds they
foreign investment."
*
need from private sources. It can
Non-Callable
:
:•.< * V
But private investors can hardly do this very effectively indeed
:
$50,000
be expected to make foreign loans either by underwriting the loans
until they have some reasonable when that seems prudent or by
Canadian Pacific Railway Company
assurance that the borrowers are participating in them.
It is my
4% Perpetual Debenture Stock
approaching a balanced economic observation—based, if I may say
Interest payable semi-annually in United States Funds
position. Credit, if obtainable at so, upon a rather considerable ex¬
all, would presumably be at short perience
extending
over
three
Price to yield 3.80%
term and relatively high rates. decades—that the mere
readiness
This would not enable the carry¬
of a public institution like the In¬
ing out of long-range tasks of
reconstruction and development— ternational Banfc to take up any

Quebec 3s, 3^s, 4s, 4%s

A. E. AMES & CO.

was

wisely

NEW YORK S,

RECTOR 2-7231

N. Y.

* NY-1-1045

Taylor, deale
&
company
64 Wall

Street, New York 5

WHitehaU 3-1874

CANADIAN

Wood, Gundy & Co.

SECURITIES
Government

Provincial

Incorporated

14 Wall

Corporate

the very tasks

;

tainment I of

Municipal
Toronto

Montreal

Street, New York 5

Winnipeg

Vancouver

Lond

»,

England

prerequisite to at¬

balanced : economic

unsold

gives

portion
assurance

and

loan

issue

encourage¬

positions. The Bank must serve ment to
private investors." And
during the transitional period fol¬
lowing the" war to * achieve what frequently, under such circum-

Volume 164

Number 4542

THE COMMERCIAL '& FINANCIAL CHRONICLE

Espey Manufacturing Company, Inc
WW--KS

•

■

•

:;'°v

COMMON STOCK
.($1 Par Value)
\

•

J- V''/,''
PRICE:

Broadway

New York 6,

N. Y.

per

161 Devonshire St
Boston

10, Mass

2478

FINANCIAL CHRONICLE

THE COMMERCIAL &

Thursday, November 14, 1946

ate expansion of

imports into this
country; indeed, in the absence of

Export-Import Bank and Postwar Foreign Trade
Since

(Continued from page 2463)
economic

objectives

were

the

the Bank has had to fol¬

resources

the

emergency

$3.75

line of credit to Britain
the

Anglo
Agreement.

American

billion

part of

Financial

"r-J;

it have

been far in excess of its available

fully realized. For this purpose
Congress in July 1946 authorized
extension

demands

low

the

of limiting its
reconstruction loans to

policy

the immediate minimum needs of

the

involved

has

This

borrower.

drawing to foreign lending, this is the only
in
which
the
borrowing
close./At this point,/ therefore, way
I should like to comment briefly countries will be able to meet the
service charges on their obliga¬
on the subject of the future plans
tion^ and continue to buy the
of the Bank.
The fundamental purpose of the products of this country essential
Bank's

activity is

now

Bank

laid down by

Congress is

careful > screening of all to aid in "the financing and facil¬
••/
*.•'
loan'applications from the point of itating of exports and imports and
The Repayment Problem
view of urgency of need of the the
exchange of commodities be¬
The third aspect of the rehabil¬ borrower, the borrower's own re¬ tween the United States
./, and
itation effort, the necessity for re¬ sources, the possibility of obtain¬ any
foreign country or the agen¬
payment of the long-term dollar ing the loan from other sources, cies or nationals thereof."
The
credits, poses one of the most the ability of the borrower to Bank has been given broad pow¬
'

very

challenging problems this country
has been called upon to face.
If
we are ever to be
repaid for these

the

effective

make

use

capacity of

the

funds,

borrower

indefinite continuation of U. S.

to do

ers

general banking busi¬

to their welfare.

the

bodies

and not
competing with private
capital. There is inherent, further¬
more, in such an injunction the
implication
that
the
assistance

which

the Bank gives must have

in it the element of

pioneering, I

convinced there is

real

and

continuing need for the services

In this connection we have wel¬
comed the enlightened discussion
months

to the
policy Congress gave.it of
supplementing and
encouraging

of the

Export-Import Bank

organizer

and

trail-blazer

fi¬

import problem in recent nancing foreign trade. But / our
by such informed private whole purpose will be defeated if
as
the
National
Foreign private capital is not better or¬

1 Council,
the
Twentieth ganized than it is at present to
Century Fund, the Committee for supplement and further. our ac¬

Trade

Economic

Development, the Aid-

tivities.

'•

„

•

The
practically any rich Committee and others. We all
Export-Import / Bank
is
repay, and the impact of the loan type of loan, without limitation as realize that the task of educating
pursuing as diligently, as possible
credits it will be essential for the on our domestic economy. to the amount of loans to any one American public < opinion to the a
policy designed to return trade
American people sooner or later
The assistance rendered by the borrower, in so far as the exercise necessity of art expansion of im¬ to
private channels and to this end
to accept a commodity import sur¬ National
of these powers is necessary to ports, if U. S. foreign trade is to is
Advisory Council to the
avoiding wherever possible the
plus as normal and proper. The Board of Directors of the Export- carry out its fundamental pur¬ be put on a permanently sound
government-to-government credit
discussions here attest to the full
footing, is a formidable one; in my in favor
Import Bank in connection with pose.
of
so-called
exporter
recognition by the National For¬ its emergency reconstruction cred¬
The broad powers and funda¬ opinion it is probably an impos¬ credits in which domestic suppli-.
sible one without the continued ers
eign Trade Council of the crucial it program has been invaluable.
mental purpose of the Bank lend
participate. The Bank created
character of the import problem. Before the Bank
enlightened leadership of such early ' in 1946 a Private
actively consid¬ themselves
we 11 *
to
Capital
assisting
I am sure, however," that no one
ers. any loan application from a American foreign trade in fulfill¬ groups as yours.
Participation Dly i s i o n which
would minimize the practical ob¬
For its part, the Bank has de- maintains
foreign' government the applica¬ ing both its immediate and
close contact with fi¬
longstacles in the way
of bringing tion is referred to, the National
Voted, and will continue to de¬ nancial .markets and" provides in¬
range postwar responsibilities.
about an appropriate increase in
vote, a great deal of attention to formation
Advisory Council for its consid¬

and to make

ness

•Throughout

the

volume of imports into this eration
from
the
standpoint of
country and the development of a policy and coordination. Once a
regular surplus of commodity im¬ given application or class, of ap¬
ports over exports.
plications has been "approved
In carrying out its role under for
consideration," as the action of
the Export-Import Bank Act of
the Council is now worded, the
1945, the Export-Import Bank has Export-Import Bank assumes full

its; existence,

regarding our current
the the import aspects of- all the loan
portfolio in order that its- com-*
applications before it. In the case mercially bankable
paper may be
of all the Bank's general develop¬ made
available to private invest¬

Bank has been prepared to extend
assistance to American, exporters
and

importers under appropriate
conditions. Assistance to export¬
•

ers'

has generally taken the form

of credits for the benefit of in¬
dividual United States exporters
responsibility for the final de¬
to facilitate the; sale abroad of
general reconstruction
purposes cision as to whether or hot the
totalling
$2,065
million. :' These loan should be made and on what specific materials and equipment.
Since the end of the war, Amer¬
credits comprise $655 millions for terms and conditions.
This use of
ican exporters have been apply¬
the purchase of goods which had the
Council
mechanism
attunes
ing/ to the Bank in increasing
originally been included in the Export-Import Bank;
lending to numbers for
credit assistance not
lend-lease program, $1,277 million
U, S. foreign policy while retain¬
obtainable
from- private
extended
for
banks.
emergency
recon¬ ing in the Board of the Bank, as it
The progressive relaxation of ex¬
struction needs, and $133 million
was
obvious Congress intended,
port controls in the United States
made available for the purchase the veto
power over indiscrimin¬
combined with the accumulated
of raw cottom
In the first cate¬ ate
or unsound loans.
In view of
foreign demand for United States
gory France received $550 million, the
extreme complexity of
the
Belgium
$55
million, and "The foreign lending problems, and the products, have opened the way for
a
greatly expanded export busi¬
Netherlands $50 million on the close
inter-relationship petween ness on a
commercial basis,
same
terms as
f As
lend-lease73(c), the foreign loan applications to
before the war, however, exportr
1 e.,'2%% for 30
years;/ In the the; Bank and to other Federal
ers are obliged to sell on terms
second group were loans to Bel¬
agencies, the Export-Import Bank
gium, Denmark, Finland, France, would have been faced with a appropriate to the type of com¬
The
modity involved, the ability of the
Netherlands,
The
Nether¬ well-nigh,
insuperable
task
in
lands East Indies,
Norway, Poland, attempting to carry out its emer¬ foreign buyer to pay, and the
Saudi Arabia,
China, and Ethio¬ gency reconstruction program ex¬ competition offered by other sup¬
pliers.
Since credit terms re¬
pia.
These
credits
range
in peditiously without the assistance
quired are often longer than comamount from $3 million to Ethio¬
of this machinery.
Although' the merical banks are in a position to
pia to $650 million to France,
Bank has been able to meet only accommodate, it is
necessary for
while the maturities range from
the exporter to seek the assistance
a portion of the total reconstruc¬
two years in the case of the sec¬
of the Export-Import Bank.
The
tion
demands
of the
war-dev¬
ond general credit to The Nether¬
Bank has met, and will continue
astated countries,' I am confident
to meet, all legitimate demands of
lands, intended as a tide-over
entered

into

commitments

for

credit, to 25-30

majority of the credits.
term, credits

with

exceptions carry

The

several

cotton credits

are

long-

months, and bear

promptness

'• \

and

Jv ' r

"jf j"

K k"

Export-Import Bank
With

$33

The Bank is prepared to extend
similar assistance to American im¬

porters.
*

The Long-Term Role of the

the

International

reluctance

grant

the part of the Bank

such

credits,

but to the

fact that the American

tions

emergency

•'

phase

reconstruction

the

Export

credit

Import

"""
-j,

,;«/•<

75,000 Shares

•

United States.

Achievements of

Export-Import Bank

Futurfe Reconstruction and Devel¬

opmental Credits
emy

/ The

the

Bank

has

brought the problem of future

re-

address before the Acad¬

of Political Science in

pending early operation of York,
International

Nov.

in addition to

•

;«•

£ 'Uj-ty

describing the func¬

tions of the Bank in! international
recon s tructio n, spoke of its

and

developmental

credits

the

Export-Import achievements as follows:
Looking back over the imple¬
mentation of the U. S. foreign loan

Bank into sharp focus. From the
time of the initial formulation, of
the U. S.
it has

foreign lending

program

been envisaged within

policy during the past year, from
the the special
vantage point of the

U. S. Government that, as soon as
the International Bank could take

Export-Import Bank, it
me

that

two

seems to
major achievements

the. Export-Import Bank of the loan policy stand out so far*
would largely withdraw from the
In the first place, a mechanism
field of long-term reconstruction for
the coordination of all U. S.
over,;

and developmental credits.

It has foreign
lending has been placed
in effective operation.
I think it

always been intended that the In¬

the

principal agency to make for¬ of the National
Advisory Council,
eign loans for reconstruction and not only to the U. S.
foreign lend¬
development which private cap¬ ing
program, but also to the per¬

all

the

attributes

do¬

Vs*-V

Export-Import Bank.

The

Board

Directors

the

this

matter

by reason of the
requirement in our stat¬

specific
ute

that

have

reasonable

as¬

of repayment before mak¬
loan.
It is the opinion of

surance

ing

the Board of the Bank
that, if the
broad effort to revive world trade
and reestablish an effective
mul¬

F. R. LUSH AS CO.

tilateral

Broadway

New York 6, N. Y.

loans

emergency
should

for

view
a

successful
ment

that

revival

the

have

difficulty
our

greatest

world

solution

reconstruction

have

repaying the loans. It is
ther

November 14, 1946

trading system succeeds,

all the countries to whom

made

our;

Govern**

The National Advisory Council
was
established by Congress in

the/ Bretton

Woods

Agreement

Act/ According/ to /this/law the
members of Council

are

the

Sec¬

retary of the Treasury, as Chair¬

International Bank. This does not
mean,

sider

shorter-term

developmental the Chairman of the Board of Di¬

loan ap p 1 ica t i ons from Latin
American and other countries nor

rectors

the/

Export-Import

Bank.
As a result of Congres¬
Export-Import Bank shares the
opinion that an increased volume that any further emergency re¬ sional decision,/ we now have for
of imports is one of the essentials' construction credits by the Ex¬ the "first time in our
history a
of
a
healthy,
thriving United port-Import Bank arc ruled out. Cabinet-level committee charged

States postwar foreign trade. The
has a very special interest

per

v;//'/-/

com¬

Bank

Price $2

New

Martin,

man, the Secretary of State, the
Secretary of Commerce, the Chair¬
however, -that 'the Export- man of the Board of Governors of
need for the intervention of the Import Bank will no longer con¬
\he Federal Reserve System, and

Ranger Fastener Company, Inc.
COMMON STOCK

Mr.

construcion

pete in any sense with, but instead
a rule, commercial banks
to cooperate fully, with the Inter¬
position to obtain a pledge national Bank; it recognizes that
covering the imported products at the long-term reconstruction and
the time of making their ad¬ development loan field from now
vances,, so that the transactions on is the special province of the
in

are

the

of change

tions. As

limitations of

regulations of the Securities Ex¬
Commission; Ultimately*
additional foreign exchange has
perhaps, we may have private
always been studied. The contri¬ Export-Import
Banks, and then
bution of any loan to the solution the
Export-Import Bank of Wash¬
at least of its own foreign ex¬
ington can act as a sort of central
change problem has always been bank for these banks of
foreign
a factor present in its considera¬
trade. There is much pioneering
tion. In its appraisal of loans the
work- to do in this field and I
Bank ; regards financing of the know
we can depend on the Na¬
production of commodities suit¬ tional Foreign Trade Council to
able for exports from the foreign be a leader in"
seeing that a sound
country to the United States as a course is developed
consideration as important as the
promotion of exports from the
posed loan with the creation

Export-Import Bank not to

have

•

within the

ors

ital could not furnish on reason- manent
machinery
able terms. It is the policy of the ment.

importer is
begin its loan opera¬ normally able to obtain adequate
financing for imports from pri¬
the
near
future, the
vate American / banking institu¬

mestic/credit and ; there 4s little

loans

the pro¬

the/Bank has ternational ;Bank; rather than 4he| would be difficult to overestimate
Export-Import Bank should be the importance of the contribution

made few importer credits;
this,
however, has been due, not to any
to

Bank

Hitherto

reconstruction

short- scheduled to

interest rate

' " '•

with

this character.

countries have

and

the direct connection of

are

months

these

efficiency.'

The

include

They

met

largely to Euro¬

credits,/. 15

Of 21/2%.

most

been

effective rate

and

million to China.
term

minor

of interest of 3%
per annum.

pean, countries

that the essential minimum needs

for the great

years

mental

problem lies in

trade
the

fur¬

hope
and

Bank rec¬ with the responsibility of coordi¬
special circum¬ nating all the foreign financial
the case of cer¬ actiyities and interests of
our

The: Export-Import

ognizes

that

stances,

such

tain war-devastated countries

which

not members of the In¬

are

ternational

eligible

for

Bank

loans

and

hence

not

that

some

Before

the

estab¬

lishment of the Council this area

in¬

from

emergency finan¬
cial assistance from the Bank may

stitution,

Government.

work, responsibility for which

was.

scattered throughout the Ex¬

ecutive

Branch; of

Government,

still be necessary.

The limited re¬ was not- coordinated and there was
sources
of
the
Bank, however,
inevitable confusion and overlap¬
preclude the possibility of any¬
ping.
Immediately upon its es¬
thing but limited assistance as
stop-gap
uation

measure

these

to tide the sit¬

tablishment the

countries

over

Council installed

procedure to insure the orderly

until their

basic problems can be
consideration of all requests and
comprehensively through
proposals for foreign loans.
For
other instrumentalities.
tackled

The
Export-Import Bank has example, as in the case of all Fed¬
appropri¬ endeavored to live up studiously eral agencies with respect to their
repay¬

[Volume 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

Ex¬ taining foreign trade, both export
and import, on a high and ex¬
siders any loan application from a panding level."
%:r0'V
r foreign
Two. months ago there was held
Government, the applica¬
tion is first referred to the Na- in Washington the first of a se¬
particular

■

field, before the
port-Import Bank actively

Britain

con-

fiitional Advisory Council for

ries of joint

con¬

sideration of the application from
the standpoint of policy and coor¬
dination

with

the

(Continued from page 2461)
the Government's ex¬
hortations to produce more.
Ab¬
senteeism is very high.
If only it
be reduced to its prewar

could

it would be possible
to meet coal requirements.
As it
is, there is a grave danger that in
proportions

and

The

areas.

the

resources

agencies represented oh the Coun¬

port-Import Bank have

cil.

limited to

The assistance rendered by the
National Advisory Council to the
Board of Directors of the Export-

winter industrial

severe

output will have
for lack of fuel.

curtailed

to be

The Government has adopted a

Ex¬

defeatist

been too

the total

cover

case

coal

post-war

attitude

difficulties.

steamers

reconstruction credit needs, of all

are'

the

face

and

Railways

converted

the

for

use
of oil.
Not only is Britain
however, the complex
not expected to resume the role
and laborious task of loan nego¬
i
of a leading coal exporting com¬
import Bank in connection with tiations with fourteen countries,
pany, but she is not even ex¬
fits *e ni e r g e iic y reconstruction comprising practically every warpected to be able to satisfy her
^credit program has been invalu¬ devastated area, has been com¬

countries;

own
coal requirements.
Hence,
year after V-J
com¬ pleted within' a
the policy of reducing domestic
foreign lending Day, and provision made for| fir coal
requirements with the aid of
^problems, and the close inter- nancing their emergency recon¬ imported oil. The absence of Coal
felationship between the foreign struction needs.
exports and the increase of 1 oil

able. In view Of the extreme

plexity

the

loan applications to the Bank and
other Federal agencies and to

imports

the- International Bank, the Ex¬
port-Import Bank would have been
faced with a well-nigh insuper¬

able

task

out

its

attempting to

emergency

carry

reconstruction

program expeditiously wi thp utr
the assistance of the National Ad¬

First Bost. Corp.

Offers

are

tween them

likely to affect be¬
Britain's, balance of

payments almost to the

same ex¬

$2MOO,066 firucible

foreign

3M Bonds at Par

about c this.. The Government | in¬

investment

banking group
headed by the First Boston Corp.
visory Council machinery.
offered to the public Nov. 13, $25,To achieve this type of coordi000,000
Crucible
Steel
Co.
of
tiation without assuming prerog¬
America first mortgage sinking
atives
specifically
allocated
to fund bonds 3 Vs % series due i960
An

tent as, the loss of dividends from

investments. during [the

And

war,

yet,

little' is said

very

to: reconstruct

tends

the

nation¬

alized coal industry, but evidently
it does not attach much hope to
the

its efficiency drive
direction, j udging by the
way in which it assumes that the
other agencies such as the bankpresent:coal shortage is not tem¬
at 100 and accrued interest.
ing and business judgment which
Of the proceeds from the sale of porary; but germane
the Export-Import Bank Board
.There are many people who are
the bonds the company will apply
must
inclined to think that, with the
exercise, requires skillful
$12,461,340. to the redemption Oh
administration.
Under the able
Socialist Government in power,
or before Dec. 31, 1946, of all of
guidance of
Secretaries
Vinson
Britain is getting the worst< of
the
outstanding
$12,217,000 h of
and Snyder I can testify that this
both worlds.
Fear of nationaliza¬
3
%
sinking
fund
debentures
has been achieved.
tion and various forms of Govern¬
due Dec. 1, 1955, at 102. The bal¬
ment \ intervention
prevents pri¬
ance of proceeds, together With
Has Final Say on Applications
vate enterprise from showing it¬
such amount from general fiinds
Once a given application 6r
self at its best. At the same time;
of the company as will make an
class of applications have been
the country cannot,benefit by the
aggregate of $27,500,000 will be
-approved for consideration," as
advantages of planning, owing to
applied to the company's $30,000,- the lack of
the action of the Council is-now
discipline and devotion
000 program of plant expansion,
to duty on the part of the work¬
worded, the Export-Import Bank
assumes full responsibility for the betterment^ and replacements to ing classes.
The incentive of the
final decision as to whether or not property. Approximately $2,000,- profit motive
is gravely ham¬
the loan should be made and on 000 was expended for ■ this pur¬ pered, while the incentive of pub¬
what terms and, conditions.
lic
interest
is
The pose prior to Aug. 1, 1946. It is
virtually
non¬

;
>

•

come

to the end of

in the securities business

era

well

response to

departments

We have

Export Drive

Government's

;

government

By JOHN DUTTON

drich Committee and the National

Advisory Council which will un¬
doubtedly - prove
invaluable
in
foreign lending program. In this bringing to the attention of the
manner
the application is given Government the viewpoint of in¬
Central consideration by all the dustry and finance on all aspects
Interested
departments.,
This of the foregin lending program.
The second important—and, of
highly technical work is done
through a staff: organization of course, basic—achievement of the
which the Export-Import Bank's U. S. foreign loan policy so far
trained force of economists and is that it has provided the dollar
; examiners forms an essential and credits required to finance the
closely integrated part along with most urgent
reconstruction re¬
the economic staffs of the several quirements of the war devastated
.

Securities Salesman9s Corner

Intensifies

meetings of the Al¬

2475]

results of

as politically.
During the past several years there has been
little incentive for those who have been retailing securities to
look ahead on a "long term" basis.
There has been an over-emphasis
upon promoting the sale of securities that would "go up fast." The
public psychology, and that of the professionals, has been concerned

very

with

making

capital

gains, BATHER

THAN

STRESSING

SOUND!

INVESTMENT PRINCIPLES.
With
with

the

New Dealers

confidence.

The

the

saddle

could look

one

general attitude toward investment

aheadl

was

one

"grab what you can and run." Such procedure is no longer neces¬
sary—it is needless to say that it never was sound practice. It waa
part of the inflationary hysteria that always accompanies unsound
fiscal policies.
There is an obligation upon the part of
every broker and dealer
in securities to eliminate this unsound
policy among investors when¬
ever

encountered.

There is one thing certain—prosperity and
country cannot be erected upon a psychology of get¬
ting something for nothing. We know that wealth has been created

progress in this

the rate of about 4%% per annum on an
average, during years
solid economic progress was achieved in this
country.
To
try and make profits of from 25% to several hundred per cent, as a I

when

general procedure, is not only downright silly, but we all know thisl
leads to an over excess of speculation and trouble.
v';^"
If you have been
selling too many securities of doubtful quality I
cut it out now.
If you have too many customers with cats and
dogs
around, have a talk with them arid try and show them that times]
have changed.
From now on government subsidies, pr political pull
that has provided government loans to weak
companies with strong
Washington; friends, is not going to be the controlling factor in their1

ability to go ahead, as it has undoubtedly been in many instances in
the past.
(This is no fantasy—we know of one company that never
had any assets to speak of before the war and has less
now, yet it
was able to secure several hundred thousand
dollars from a govern¬
ment

agency.)
under

This stock went from 25 cents to

$4.00.

over

dollar.

is|

Those who gambled on it and made
money)
got theirs—but it is no longer necessary to take such gambles or
offer]
them to your customers in order to
now

capital.

preserve

The

this

new

Congress will do

that you can be

sure.

securities

will

vary

taxes and

spending—of]

not

going to end up in this country
That is the implication of this past election

with FUNNY MONEY.

which is important to

job

are

investors!
in

Markets will fluctuate—individual I

their attractiveness

because

underlying |

factors both within such companies themselves and the entire

econ¬

But the UNITED STATES OF AMERICA HAS • REJECTED 1

omy.

UNSOUND FISCAL POLICIES AND A REGIMENTED

ECONOMY.

of the Council mechanism at¬
tunes Export-Import Bank lend¬
use

expected the entire program will

be completed by the end of 1 §48.
ing to U. S. foreign policy while
The major expenditure to be
retaining in the Board of the
Bank, as it was obvious Congress made, reptefientihg approximately
Intended, the veto power over in- 40% of the total, will cover the

;

discriminate or unsound loans. It
is clear that the members of the
Board are expected to resist pres¬
for

unsound
loans
from
source' and to insure
observance of the' Export-

sure
'

whatever
strict

Import Bank Act of
clear-cut

1945.

independence

maintained

the

This

must

the

program

land

cluding

Works, iin¬

installation

the

Mid¬

company's

(Pennsylvania)

new

equipment for the production of
hot and
and

roiled

cold

While

strip.

steel

sheets

designed

pri¬

Export-Import marily to turn out stainless and

Bank is to further its established
record of intelligent and business¬

existent.

;

new

Weeks by the formation of the Al¬
Committee, i President Tru-

drich
: •; man

appointed

private
ciers
Mr.

this committee

the

output is bound to decline.
it is difficult to

spirit

see

how

the fullest cooperation be¬
the Government agencies

Aldrich in

accepting appointment

Chairman

Summarized
lows:

of
its

the

Committee

purposes

fol¬

bring into orderly
common effort public and
private
finance, through businessmen and
bankers, in the foreign field J to
foster the application of the pro¬
ductive
capacity of the United
.

States in the most effective
ner

possible to the

man¬

needs of

do¬

mestic

consumption and foreign
reconstruction; and to promote re¬
lations

income,

vestor

are: (1) preservation of
principal, (2) continuity
marketability in keeping with the needs of the in¬

(3)

YOU learned themtyears ago—NOW YOU CAN PUT THEM)

INTO PRACTICE AGAIN.

lin.

LaSalle Si. Women

While

well

Hear Duncan Miller

there

interviewed

of the leading Germans

many

British

between

American

and

and the company for many years

has

been

leading

commercial

alloy, commercial

bon

and

The

company's net sales in

amounted to

the

first

car¬

specialty carbon steels!-

eight

sales totaled

1945

$141,422,881 and for

months

1946

$56,244,563.

representatives on
the
Control
Council and the heads of depart¬

And

can

A. DePinna

and until the

The

'7'r

\ 1

Company
'

' *

\ '

1 '

* *"

Crucible's

popular than the lack of adequate
supplies of manufactures.:J.',: r .!
"V\

-1

outstanding

capi¬

Circular

request

Herrick,Waddell & Co., Inc.

John K. Walters & Co*
i,WILMINGTON, DEL.—John
Walters^ &

Co.

has

been

55 LIBERTY STREET. NEW YORE 5, N. Y.

'■

formed

Over-the-Counter Quotation

with offices at 910 West Street to

Officers

the securities business.

engage in

are

John

Dunn, Secretary.

Abernethy,

and

Vice-President;

Frances .: A.

Mr. Walter has

talization will consist of the $25,-

recently

000,000 bonds

NATIONAL QUOTATION BUREAU, Inc.

individual dealer.- Prior there¬

316,282

now

being offered;

shares of 5%

preferred

purpose of developing and main¬

444,230 shares of

stock,

par

convertible

$100,

common

and

stock.

Lear

been

was

doing

with

business

Woodcock,

Prince

Co.,

Established 1913

Mc-

Co., Carstairs & Co. and

Theodore

Services

33 Years

Walter,

Class A Stock

why the Govern¬
diverting-so'much badlymanufactures
to
export

needed

$0.60 Convertible Preferred Stock

reason

ment is

President;

After completion of this financ-.

ing

foreign business enterprise .for the

producer' of

high grade steels, specialty alloy,,

American

and

public

dating, operations and reducirig trade is that the alternative would
and .'finan¬
be a reduction of food imports.
:
Chairmanship of manufacturing costs.
.Crucible -was formed in 1900 And that would be even more un¬
Aldrich to bring

and private industry and finance
in the foreign financial field. Mr.
as

improving

capacity,

manufacturing practices,1 consoli¬

These fundamentals

•

Winthrop

tween

finishing

again get back to fundamentals.

once

also be, used -for

may

can

CHICAGO, ILL.—John Duncan
ments dealing with the various as¬
aptly observed during a recent Miller, Director of the British In¬
debate, /'the millions of. people formation Services in; Chicago pects of the occupation. Mr, Mil¬
ler was on the British Army Staff
who voted Labor" at the' general was
the
guest speaker
at the
in Washington, D. C. from Sept.
election did: not do ,: so because' dinner meeting of La Salle Street
1941 to October 1943. He served
they were anxious to give some¬ Women at the Cordon Club, Chi¬
as a Colonel in the British Army
thing to ;the: 'community, hut bet cago, pit Nov; 13. The subject of
in the Allied Headquarters of the
cause
they were anxious to get his address was "Occupation in
South
East
Asia
Command
in
something for themselves out of Germany."
Mr. Miller has just
Burma
and
India
until
March
the community."
If the profit returned from Europe where he
motive is destroyed, or grossly made an extensive tour of the 1945 when he left to go to Ohi—|
reduced, before: a public spirit has British Zone of Germany and Ber¬ cago.
4 f;'; V'
developed to take its place, the

industrialists

under

about

strip, the

alio,y sheets and

mills

investors

that

means

Conservative M. P.

developed; unless
profit motive is cur¬
tailed.
The transition period is
like lending.
producing
carbon
steel
sheets, bound to experience a decline in
The Aldrich Committee
the standard of living,-in spite of
strip and light plates. Other ex¬
v, The mechanism for
coordinating penditures in connection with the the technical progress and the re¬
the U. S. foreign lending
moval < of : financial obstacles i. to
program
program will be for
increasing full employment.
was further rounded out in recent
other

This

46 Front Street, New

Chicago

York 4, N. Y.

San Francisco

THE COMMERCIAL & FINANCIAL CHRONICLE

£480

and

The Task of the UN in
-

•

there

have

development.

and

progress

thing which should
into the hearts and

burnt

one

the

War

tween

World

War II

it is that world wide eco¬

men

years

and

depression, which deprived
more than 30 million men of their
livelihood in the early thirties and

nomic

rash of economic re¬
strictions throughout the world, is
a
disaster second only to war it¬

produced

do not be¬

economic factors are
of war, I think

that

lieve

main

the

causes

that one of the
surest guarantees of peace is to
be
found
in
expanding world
we

all agree

can

in inter¬
national commerce; thus con¬
tributing to the establishment
in all countries of high levels
of employment and.the creation
of

economic climate favor¬

able to world peace.

poses.

that

de¬

are

to implement these pur¬
It was not to be supposed

signed

all

parties

Conference

the

would

the.

with

cerned

strongly

its

ex¬

pressed fear that some countries
whose economics react very sensi¬

London

the

American paper without criticism,
and there are in fact, many im¬

view that if their
damaged in this

the

pressed

economies

ex¬

are

they should have the right
appeal to the
International
Trade Organization for temporary
relief from their own obligations
to

the

so-called

"offending"
countries. The significant fact in
relation

problem

this

difficult
countries inter¬

that

lateral

International emerged.
When I left London the pre¬
International
Monetary Fund were established. liminary work of thd Committee
th e

and

great

the

view

And

importance of interna¬
tional trade and employment the
growing

been

had

completed
and. five
Working Committees had been set
up.
These Working Committees

broken
the
broad
field
taken to hold have
a
great international conference covered by the Charter into five
main divisions, and are examin¬
on these subjects next year under
the auspices of the Economic and ing each iri detail.

first steps have been

Council.

Social

The

action, but rather to bring
the problem to the International
Trade Organization and to modify
the

agreement

protective

after

resort, in turn,
only

restrictions

round table discussion.

Meeting

London
Let.

Thus

that

steps

the

recall

Committees

Current

Preliminaries

the preparatory
meetings on this subject. which
are now being held in London. You
will recall that Article Seven of
the Lend-Lease Agreements and
led

have

Mutual-Aid
Agreements recognized the need
of |1 other

articles

agreement to re¬

for international

to interna¬
promote its
expansion. At Bretton Woods a
decision was made to call a con¬
ference on international trade and
employment. In Dec,) 1945, the
United States transmitted to other

move '

impediments

tional

trade

and

governments for their considera¬
tion

World

Expansion

for

posals

"Pro¬

entitled

document

and
Employment."
This
document proposed the creation of
Trade

rules to govern trade barriers,
intergovernmental commodity ar¬
rangements, restrictive business

practices,, and international as¬
pects
of
domestic employment
policies. In February of this year,
the Economic and Sqpial Council
of United Nations passed a resolu¬
tion calling for an International
Conference

Trade

defined

ployment,

and

its

Em-

terms

reference, and established a Pre¬
paratory Committee of 19 coun¬
tries to organize the Conference
and to prepare annotated agenda,

including

and

convention

draft charter for

International

Trade

Organization.
It is
this
Preparatory Committee which is
pow in session in London.
■/,
*1
Discussions
on

the

basis

are now

progressing

Draft

Charter

put forward by the United States
Government, purely as a basis for
f"iscussion and not as a final ex¬
pression

the

views

the

purposes' of

the

United States.
The

general

International
as

high and stable
levels of employment
and eco¬
nomic
activity. Committee Two
deals with problems of commer¬
cial policy, and in particular the
multiplication of regulations, re¬
strictions

and

discriminations af¬

fecting international trade. Com¬
mittee

Three

restrictive

concerned

business

governmental
is

discussing

the

constitutional
and administrative aspects of the
proposed International Trade Or¬
ganization. You

out-lined

Trade
in

Organization

this

Draft

are

To enable members of avoid
course

of world

measures

re¬

destructive

by provid¬
ing, on mutually advantageous
bases, expanding opportunities
for trade and development.
encourage
industrial and
economic development in mem¬

ber

countries, particularly the
under-developed countries.
To promote national and inter¬

national

action for

the

expan¬

full

employment

and effective demand.

For

exam¬

ple, it has been suggested that the
international

velopment

financing

of
de¬
international co¬

and

ordination of internal credit poli¬
cies could be timed^ with these
ends

view.

International

rangements might

ar¬

be made

even

foreign goods and serv¬
ices.
Furthermore,
international
plans might be worked out where¬
by countries with full employ¬
ment could

continue to buy from
suffering
depressions,
even
if this procedure involved
temporary unbalances in their
payments, A Sub-Committee com¬
countries

posed

of representatives

of Aus¬

tralia, Brazil, Cuba, India, United
Kingdom and the United States
are

is progressing.
>

attempting to harmonize

now

have been hard at work examin¬

ing, criticizing and amending the
Articles

the

American

Charter" which

ployment.
that

deals

Draft

with

em¬

These Articles provide

each

member

posed

new

action

the

achieve

and

maintain

high employment within its

jurisdiction through
propriate to its
economic
vided that

own

measures ap¬

political and

own

institutions.

pro¬

country shall adopt

which would create

measures

pro¬

Organization shall take

un¬

employment in other countries,

which would prove incompatible
with the promotion of expanding
international trade and invest¬
ment. Some of the points of view

expressed have been of great in¬
terest. Thus

delegates of some of
the
under-developed
countries
have pointed out that it is ex¬
tremely difficult in some cases to
carry out policies of industrial de¬
velopment without causing some
degree of temporary unemploy¬
ment in the industries concerned,
in other countries. Therefore,
they

suggest

that

countries

highly

might

industrial

developed

required
adjustments

industries

to
in

permit

development in under¬
countries. It has also

been

pointed out that full em¬
ployment as an end in itself is not
enough. To be of
international
lead to

trade,

importance in
it must also
.

rise in effective demand.

In other words, countries enjoy¬
ing full employment must trans¬

late

this

tional

into

terms

interna¬

reexamination, with
progressive reduction.
Furthermore, the proposal pro¬
view

the International Trade Organiza¬
tion. This Commission, in con¬

junction

With

independent na¬
tional tribunals would provide a

mechanism

for

consultation

reasonable

agreements
and
provide for their revision.

Most-Favored Nation Treatment

Lively discussions are also tak¬
ing place in this Committee on
the

questions,

and

to
re¬

drafting these

provisions

ex¬

favored

nation

treatment

Here

commercial

again,

there

agreement regarding the need for

freeing
all

international

trade

from

sorts of restrictions.

However,
countries, particu¬
larly European Countries, which
have enormous problems of re¬
construction, have emphasized the
need to study exceptions which
may have to be made as a tem¬
porary measure, to a generally ac¬
cepted policy. They feel they may
be obliged to resort, for a time, to
ad-hoc
agreements
and
would
find it difficult at this point to
remove
certain restrictions, some
of which are necessary on foreignexchange grounds, in order to fac¬
ilitate; the reconstruction of their
number

necessarily apply to some re¬
gional agreements, based on geo¬
graphical factors.
The

encouraging point to keep
that the countries, in
putting
forward
these
various
suggestions are not claiming the
right to pursue selfish, purely na¬
in mind is

tional

policies.

They

Again, there is a search for
which

formula

recognizes

the

special needs of under-developed
countries attempting to carry out
programs
of development.
The
Australian
delegation has sub¬
mitted the draft for a< chapter- rer

proposed

agreement
ment.

out policies which will be
constructive from the point of
view of the
carry

This

international

industrial develop¬

draft

maintains

that

members

should

protective

measures may

essary

some

recognize

however,

necessary

would

to enable

industries
member to

out its military and strategic

responsibilities
the

en¬

in certain in¬

Protection

limited,

nec¬

countries to

courage production

dustries.

that

United

which

have

member

Nations,

industries

technological

pects of achieving

pros¬

scale of

pro¬

world,

Perhaps the liveliest discussions
in this Committee have been

con¬

very controversial problem. The
draft Charter contains

which

aim

business
be

provisions
prevent private

agreements

that

would

incompatible

with
govern¬
mental commitments for
freeing
channels of world trade.- There
has

been
as

considerable

disagree¬

to the extent to which

likely to
actually restrictive and repre¬
hensible, and as to how these cir¬
are

; ;In considering commodity pol¬
icy, the attention of Committee
Four,
and
indeed
that
of
the

whole

Conference, is focused on
raising standards and increasing
consumption. Particular care has
been

taken

of consumers,

consider
as

well

interests

of pro¬

ducers, for both of whom violent
fluctuations in the past have been
disastrous. It is obvious that ex¬

panding international trade
only be based on commodity
ditions which provide
both producers and
The Charter takes

this

can

con¬

stability for
consumers.

long step in
by providing that
commodity arrangements
longer be a series of un¬
a

direction

future
will

agreements, but will be
brought within the framework of
a

coordinated international plan.

working Committee,
number Five, is considering the
constitutional provisions of the
Charter, questions of membership,

Committee.

truism that the
spotlight is always

thrown

narrow

areas

and

leaving the

important

dis¬

broader
of

areas

obscurity. I
honestly say, however, that
the spirit of the
Preparatory Com¬
mittee is
distinctly hopeful and
can

that the general
determination to
a basis for
agreement means
that the battle is
more than half
won. We can look
forward to the

find

day when the International Trade
Organization will take its
place
effective institution for eco¬

as an

nomic

development

and

world

peace.

I must, of
course, emphasize that
these discussions are in
no

way

binding on the nations taking
part. -They do,
however, repre¬
sent the first
important step in
international

negotiation

along

depression

would

bring to the

rest

like the Soviet Union which
be¬
cause of its size and
relative self-

sufficiency is less sensitive
nomic

immense

heightens

your

responsibility to

take every possible measure for
the maintenance of
high levels of

employment
States

and

within

the

United

play the leading
expansion of world
trade through international eco¬
nomic co-operation. The combina¬
part

the

tion of these two factors
may lead
to an unprecedented era of
rising
economic
standards ?■ throughout
the world and unexampled pros¬
perity in the United States itself.
Addressing a Convention such as
this, there is no need for me to

labor

the

point that the

promo¬

tion of rising standards through¬
out the rest of the world is not
a

question of charity, even though
may call for temporary sacri¬

fices by some sectional interests.
no
other sphere of life is it
more true that the nations of the
In

world

are

members of

another

one

than in the sphere of international

voting rights and the various or¬
gans of the proposed International
Trade Organization. This task will

strong

economically

probably be the last < to be com¬
pleted, since it is dependent on
the progress of the other working

maintain and develop, the
nomic
strengths of those

committees.

ernment of the United

*;V
also

has

Committee

been

considering the future relation¬
ship between the proposed Inter¬
Trade Organization and

national
other

lems

bodies.
under

Preparatory
the

concern

Some

the prob¬

consideration

Committee

by the

are

also

of the Economic and

whom

country
that it

do all it

it does business.

sa
can

can

eco-

with

The gov¬

States has

been

responsible for a splendid
initiative in providing a carefully
thought out basis for the ordinary
mass-enlightened

discussions

system of international commer¬
cial relations. I cannot for a mom¬
ent

that

doubt

this

splendid

initiative is maintained with the
full backing

and

munity

suffer neglect to

Social Council and the Economic

Employment Commission

eco¬

repercussions

elsewhere.
influence of your
economic conditions and economic
policies
on
other
countries
The

There

This

the

world, except perhaps to countries

trade.

of the business com¬

this

nation

the pre¬

the United Nations. Furthermore,

liminary discussions now in prog¬

the

ress

plans

Trade

for

siderable bearing on
the

International

Organization have a

comparable imported commod¬

Preparatory

responsibility of the United States
in this field. With
your great eco¬
nomic strength and
resources, I
venture to say that the United
States could weather a
major eco¬
nomic depression. But it
would be
hard indeed to
compute the scale
of tragedy that such a

national Monetary

Hopeful Outlook

Committee Three on restrictive
business practices has been grap¬
pling with divergent opinions on

excessive in relation to the costs

not

The

Now you all
realize, I am sure,
that at this time it is
not possible
to make more than
general com¬
ments on the actual
work of the

these lines. I need
hardly mention
the great and
special international

will

already given

constructive attention to the
prob¬

lems under discussion.

"Escape Measures"

which

Commerce, the World Fed¬
eration of Trade Unions
and other
bodies, which have

duction

costs

organizations
International Cham¬

the

well

trade

by an effective de¬
mand for imported goods.

meeting the legitimate needs
their national economies.

carry

making

are

honest attempt to reach agree¬
ment on an international instru¬
ment Which will enable them to
an

Thev last

industries.

lating

should

not

cumstances could be controlled.

problems

governmental

such"

agreement in relative

areas,
countries have a
special geographical relation. Pos¬
sibly, it is argued, the "most-

the

i have

non

ber of

certain

Charter.

Committee Two, as

International Trade Organ¬
ization in relation to these
other
bodies. This problem holds for

agreement,

and

delicate

of the

pros and cons of a general
most-favored nation treatment. In

private' agreements

reach agreements as a basis for

14, 1946

important tasks of the Prepara¬
tory Committee is to define ten¬
tatively the sphere of operations

and

investigation in order to arrive

ments

•.

The members of Committee One

draft also provides that such pro¬
tective measures must be subject
to periodical

the many views on these difficult

policy.
general

something

commerce

work of each of these Committees

hear

reasonable

mercial policies by consultation
and collaboration.

suggestions for financial poli¬

maintenance

plained, has been dealing with the

own

the
solution of
problems in international com¬
promote

number

be interested
of how the

may

their

ar¬

rangements. And Comrftittee Five

make

practices.

commodities

with

Committee Four deals with inter¬

briefly:
1.

con¬

cerned with the achievement and

maintenance

cies which would contribute to the

chase

One

International Trade Organiza¬
tion with a Charter establishing
an

Commitee

There have also been

to enable countries in periods of
depression to continue their pur¬

Scope of the Working

Australian

very

portant
divergencies
in.; view.
Nevertheless, the value of the

for

Bank

the

The

resources.

Development Commission within

for these countries have

Settlements,

bal¬

taining effective demand. Spokes¬
men

American

development

vides for setting up an Industrial

ested in such escape measures are
not claiming the right to take uni¬

draft
as
a
working
trade,
rising standards of em¬
document, is fully recognized. It is
ployment and freedom from catas¬
now the task of the present Pre¬
trophic cycles. It was to contrib¬
ute to these ends that the Economic paratory Committee and also of
the Conference to be held next
and Social Council, its Commis¬
to
resolve
the ' various
sions and Sub-Commissions and year,
various Specialized Agencies, such divergencies of view which have

economic

tively to developments elsewhere
may suffer if other countries fail
to fulfill their obligation in main¬

way,

The articles of the draft

While I, for one,

self.

policies

criminatory

be¬
World

minds

riers, and for eliminating dis¬

111.

•

the

production,
ex¬
change
and
consumption
of
goods, for reducing trade bar-

social

conditions of economic and

«.

sion

(Continued from page 2464)

contribute

anced

Developing Int'l Trade

.Thursday, November

World

con¬

the activities

Bank,

the

Inter¬

Fund, the FAO,

cessful
tional
next

London

Trade
year,

tion of

can

Conference

and

lead to suc¬
on

and to the

new

Interna¬

Employment

inaugura¬

and more hopeful

and various Specialized Agencies era in the economic life of the
v
■"v
of the country of the United Nations. One of the world.

ities, industries which will diver¬

sify the

economy

•

Volume 164

Number 4542

THE COMMERCIAL & FINANCIAL CHRONICLE

coupled with direct effects of goods

Picketing—Its Economic and Legal Status

:V-ll-.

(Continued from first page)

7 of

automobile workers*
union, to a group of store em¬
ployees in their attempt to
an

unionize

mail order
trances

bound

retail outlet of

house; to block

various

hire members of
union

effect

teamsters'

(or join the union) to

situation. Such is the
cause

ing to deal with the
ployer;

em¬

the

be¬

case

great variation
of

amount

economic

and

its

taurant's volume

by 60%.
of "peaceful
picketing," it should be noted,
is essentially a problem in the

Regulation: Basic Constitu¬

7 This " aspect

tional Issues

Blocking of entrances

sons

establishments

and

inter¬

ference with the movement
/

'•

the

one

other, by

hand and, on

picketing
accompanied by violence.
7^7*7^771 ;.v

mass

picketing of such

common—almost

daily-

the

number

avoid

abusive

economic

effects

the effects of other forms of

peaceful persuasion such

presentation of the workers'
a labor
controversy is
honestly made, tactfully pre¬

sented,

and

based

what

people believe to be a justfiable grievance it is likely to

similar effect to that of

well-used advertisement

competent sales talk pre¬

feature of metropolitan news¬

sented to

papers.

When

receptive

group.

guarantees to Americans

rights — including
freedom of speech and the
press. The right of workers
to picket is, in the Supreme
Court's interpretation of the
Constitution,
grounded
in
these ; b a s i c
constitutional
rights. For example, in a ma¬
jor case involving picketing

near

entrances

struck

or
approaches to a
plant tends to magnify

the economic pressure of

picketing. The

reasons are

vious,; Persons
the

ob¬

approaching

establishments fear

cer¬

tain basic

language,

advertising and selling activi¬
potential violence of
ties. When such! a
peaceful
side of

acts of violence,

increase in their number

peaceful picketing by one or a
few pickets are -analogous to

char¬ have

acter-as to constitute "news*'

pickets. Even if the pickets
threats,

Persuasion

The

increase

7 7 '7/.v-77:7. »7/r

7.7

The Method of Peaceful

■■

;

employed by
unions in picketing activities
represent as great a variety
aS the ends sought through
picketing. The variety of
methods
employed in the
picketing instancesreferred to
above, for example, included,
according to newspaper ac¬
counts, peaceful picketing hy
one or two persons carrying

services

•

Picketing

and

contacts with customers.

res¬

ent

packing houses to their stores
of traffic.
instead of using their own
T 7-7 7
!\ :1'7. 7-7 ii'fS'.
^
vehicles; to persuade an ex¬ Economic Effects of Picketing
ecutive, by picketing his resi^
The
economic effects of
dence, to! attend a;negotiation
picketing depend primarily
conference arranged by the
Upon the frequency of its use,
union; arid to induce a pro¬ the
purposes for which it is
prietor of a bar and grill to
employed, and: the methods
require ; that his ; bartenders followed in
specific uses of
join a bartenders* union.
the practice.
No doubt a more adequate
The frequency of picketing
.sampling, would add; signifi¬ is sufficient to cause its use
cantly to - the above list of to be of economic
importance.
specific objectives of unions In
fact, at the present time
in, their use of picketing.
reference to one or more cases
Methods of

the

•;p

delivery of meats from

The methods

strike—reduced

Important constitutional is¬
resulting from differ¬
economics
of
"restraint
of sues have arisen in connec¬
picketing techniques. The
assaults, by pickets,
tion with the numerous at¬
trade or commerce."
7
of those failing to heed the extremes of this range of
tempts of government—most¬
wishes of the union;
power, it appears, are likely Economics of Mass Picketing
ly by the States—to prevent
to be induced
by, peaceful I The : economic power of abuses in
Destruction
of property,
picketing.
picketing of one or two per¬ picketing is enhanced
The Federal
Constitution
by an
and
power

5. Actual

en¬

plants; to induce retail

other types

of harm to those continu¬

strike¬

merchants and meat dealers to

property,

2481

decided in 1940 (Thornhill

the

large Alabama, 310 U. S. 88), the
number of persons more th^n Court stated that in the cir¬
they fear the same type • of cumstances of our times, "the
violence attempted by one or dissemination of information
two individuals. Again, as the
concerning the facts of a labor
number of pickets increases a
dispute must be regarded as
point of concentration may be within that area of free dis¬
a

reached in the

assemblage of cussion that is guaranteed by
pickets which provides effec¬ the Constitutionv.:7
tive physical obstruction to
On the other hand, an em¬
persons and vehicles.
ployer, also has certain basic
.

Mass

picketing, therefore, rights. Thus, the Supreme
by nature. By its Court ruled in 1921 (in Truax
v.
use the o
Corrigan, 257 U. S. 312)
per a t i on s of a
judgment of the issues in¬
Objectives
that a State which prohibited
Economic results of human volved, as would sales talks, picketed firm may be slowed
down to a much greater ex¬ its courts from issuing injunc¬
activity are affected signifi¬ advertisements, and financial
tions ; against
disorderly
prospectuses, containing mis¬ tent than would be the case
cantly by the objectives of the
representation of fact. When by the use pf a few pickets, picketing deprived employers
participants as well as by the
of liberty and
property with¬
peaceful picketing appeals or, possibly, brought to
methods used in a
Economic Significance of

given

signs; forcible prevention of Effort aimed

peaceful picketing dis¬

torts the facts it induces mis-

case.

are

is coercive

standstills when

made to workers who

the

mass-

out due process

of law, since

pre¬
produc¬
fer to work rather than to pickets becomes an effective the employer had a property
tion, exchange, storing, and
tail store by blocking of the
barrier
before
strike and to a general public human
'7
the right in his business. :
servicing of goods is essential
entrance; the surrounding of
which is unsympathetic to the plant.
A n o the r basic govern¬
to economic life. The same
two strike-bound factories by
union's general objectives or
mental principle involved is
amount of effort, on the other
Intimidation and Violence
several thousand workers —its specific demands, picket¬
that
concerning the police
hand, directed to the ends of
Acts of intimida tip n,
including hundreds of union
theft, fraud, or scarcity-crea¬ ing is likely to add little, if threats, and violence enhance powers of the States—that is,
workers from two other
their : powers,
as
td
sovereign
tion tends to impoverish the any, economic pressure
the
economic
pressure
of
that
plants; employment of roving
governments, to adopt regula¬
resulting from other
people.
picketing. Obviously'the pres¬ tions to
bands of pickets to go ifrom
union practices.
protect or promote
The same principle applies
sure
is increased as these
one picketed retail store to
public safety, morals, health,
in the case of picketing. Even Refusal
to Cross a Picket Line coercive
tactics succeed in
another; disorderly picketing when the
and Welfare. The Supreme
methods employed
E v e n
w h en
of the residence of a company
picketing causing more and more em¬ Court in a l945 case (Thomas
are analogous, the effects will
methods are limited entirely ployees, potential customers, v.
executive by some 60 pickets;
Collins, 323 U. S. 516), rec¬
vary according to obj ectives to
and the blocking of entry to
practices of peaceful per¬ and representatives of firms ognized this right of the
sought by the picketing
a manufacturing plant by
suasion,
however, employ¬ supplying essential goods or States and its application to
groups. Picketing, on the one ment
of one widespread union services to a struck firm to
mass picketing, and issuance
regulation of labor unions,
hand, may be employed as an
of union permits to those
practice may increase great¬ remain away from an estab¬ but 7 pointed out that such
aid to workers in their at¬
ly the economic pressure of a lishment.
persons allowed by the union
regulation, whether aimed at
tempts to secure justifiable
at

the

•>

entry of employees into a re¬

strike. This practice is the one

to enter the establishment.

M i 1 d 1 y

coercive

tactics,
improvements in working con¬ of
non-striking workers of such as loud talk by one or a
Supreme ditions, hours of work, wages,
other unions refusing to cross few
Court opinion of .1940, a more or other conditions
pickets, may add little to
vitally af¬ a
picket line established by a the pressure of peacful picket¬
comprehensive 1 i s ting of fecting the welfare of the
union on strike.
ing.
The coerciveness in¬
picketing methpds would in¬ workers. The "same picketing
If union workers
clude the following:,
(other creases, however, as the inmethods, on the other hand,
than those on strike)
1. Mere observation of may be employed to assist a
supply¬ timidatory tactics employed
become more dangerous to
workers and customers by union in
achieving a labor ing some essential material,
such as fuel, or some essential persons approaching the es¬
7 the picket;
monopoly, to assist in the op¬
service, such as transporta¬ tablishment. 7 The climax of
a
2. Communication of infor¬ erations of
monopolistic

fraud

As indicated in a

•

untrue—

offending employer, and
.!,' the use of methods of persuasion ranging from calm
I f talk or truthful slogans on
j
banners to the use of loud
1
7 and abusive language, a
7 threatening attitude, and
>

tion,

who constitute

sub¬

stantial

those

i7« others not to deal with

combination of business and

proportion of a firm's
approaching a labor, and to achieve other
conditions tending to restrict patronage, refuse to cross a
picketing place;
line,, the economic
production and, therefore, to picket
Attempts, 7 by pickets, to
reduce the national income. pressure brought to bear
persuade employees or
upon an

7 to

attempts at bribery;

4. Threats,

by pickets, of phy¬
sical violence, destruction

The essential

problem in

con¬

nection with

picketing objec¬
therefore, is merely the
problem of union objectives
tives

general.
Economic Significance of

The

economic

picketing

are

unbearable

ample, in

influence

powerfully by the particular
methods adopted in a
given

one.

For

ex¬

when

station

mass

The fundamental constitu¬

problem involved in
regulation of picketing, there¬
fore, is the problem of deter¬
mining standards which will
protect the public safety and

before all entrances to
ness

and

welfare,

protect

property

rights

themselves

one

cross a

striking

picket

restaurant

workers in order to make de¬

liveries
and

and

refusal

workers

•

other
of

supplies

other

eat

union

there 7'—

the 7 basic

and liberty

rights of the employer, and

busi¬

adopt the methods avoid

unconstitutional

croachment upon

en-

the freedom

of the workers to disseminate

form of mob action rather

"the facts of

than

picketing in the constitu¬
tional
cided
sense
of a peaceful
in 1942, the refusal of union presentation to others of the

picketing case de¬
by the Supreme Court

line

effects

attained

apart for free speech and
assembly." 7' ■

tional

employer may be of an unruly mob. l (Such
changed from a moderate to picketing is, obviously, only

truck drivers to

Methods

abuses, "must

free

pressure induced in coercion
workers

other

trespass upon the domains

set

•

mation—true

not

workers' side of

labor

dispute."

Regulation Mostly by States
;

Attempts

regulate

con¬

picketing

have been under¬

Picketing, rather,
taken—especially since 1932
or
achieves, in
instances, the status of —to a large extent by the

troversy.

approaches
such

embargo against an enter¬
prise's supplies of essential
an

States. Several conditions

iwiiwi<.wrM«iinnmi»-rrT-r——"—*

THE COMMERCIAL & FINANCIAL

2482

Thursday, November. 14, 1946

CHRONICLE
Fourteenth Amendment." On

Picketing—lis Economic and Legal Status
.(Continued from page 2481)
have contributed to this re¬

1940, handed down decisions

act

The

Threats, intimidation, vio¬
lence,

destruction

prop¬

the use
of public property or high¬
ways,
and the creation : of
erty, obstructions to

public disorders
upon

as* abuses

are > looked
well suited

control of local authorities

other

held

property ,or person. The

tions upon

the

use

of peaceful

Court picketing.
'yy '
•.; •//,•/
that the, right of free
An instance of State restric¬
:

hand,

the

speech cannot be denied "by tion of; peaceful picketing
prohibited (a) hin¬
drawing from a trivial rough which has been approved by
prevention, - "by
involving two general bans on
incident J or A a;• moment of the Supreme Court involved
mass
picketing, threats, in¬
picketing. One of the deci¬
animal, exuberance the con¬ an injunction issued by a
sions (Thornhill v. Alabama, timidation, force .or coercion
clusion That otherwise peace¬ Texas court under terms of
cited
above)
involved the of any kind," ;of pursuit of
ful-picketing bas The Taint of the State's antitrust statute.
validity of a section of the any lawful work or employ¬
force.'; A cafe' proprietor " had en¬
State Code, of 1923, of Ala¬ ment, (b) interference with •'T'i;'— / ":'F*•
/:H-YV;;\gaged a contractor to con¬
entrance to or egress from Restriction of Picketing Right
bama which prohibited pick¬
struct a new building for him
'
to Employees.
any place of employment, and
eting, declaring it to be a mis¬
(not to be used in his restau¬
demeanor for a person or per¬ (c) obstruction: of," or inter¬
; Attempts.to limit the right'
rant business) at a distance
ference with, free and unin¬
sons to picket a place of busi¬
of peaceful picketing to the of one and one-half
miles,!
ness "for the purpose of hin¬
terrupted use of streets y employees:; of '£ an employer
from his cafe. Under terms :
dering, delaying, or interfer¬ roads, railways, or other ways are unconstitutional, accord¬ of the construction
contract, /
ing with or - injuring": the of travel or conveyance.
ing^to rullirigsThomumbe^
the contractor Was permitted
business. The other decision
'.{•{In two decisions during Supreme vCourt .decisions. In to
employ either { union or
(Carlson : v. California, 310 1942, (Allen Bradley Local v. i 1937 decision (in Senn v;
non-Onion
also

drance

sult.

Supreme Court, during

his

the

accordance with
general police powers. This
point of view was expressed,
in fact, in a Senate Report on
the Wagner Act—cited by the
{Supreme Court in a 1942
acting

•

picketing case

"not

—

in which it

stated that the Act was

was

intended

mere

(

nance

106)

involved

of Shasta

ordi¬

Board, 315 U. S.
County, Cali¬ Hotel Employees'

fornia; which declared it to be

police court measure to pre- unlawful for any person —
or violence by em¬ using any highway, sidewalk,
ployees or unions. Rather, it street; nr other public place

'i vent fraud

•

was

contended that remedies

for the purpose

—-

to picket

1 thro ugh the agency of local

any place of business or em¬
police and the Federal and ployment for the purpose of
State courts were adequate to inducing any person to. re¬
frain from entering such an
;cope with the problem.
^
Congress, in 1932, enacted establishment, to refrain from

•

the Norris-LaGuardia Act to
restrain what
-an

excessive

tions

considered

was
use

-of

working therein, or to refrain
from

Feder a 1; courts

lawful relations

other

injunc¬ with the enterprise.
The

Supreme Court held
against activities of labor or¬ bot$$j the above-mentioned
ganizations. Among restric¬ bans on picketing to be viola¬
tions of the Act upon the is¬ tions of the due
process provi¬
suance of labor injunctions is

sions

;

the

Fourteenth

and Tile Layers Union, 301 U. S.
Local v. 468) the Court upheld the
Board, 315 "U. S. 437) involv¬ right of: union workers to
ing the validity of the Wis¬ picket the place of business of
consin picketing regulations, a contractor who-employed
the: Supreme Court hold that only :ndrituftion workers {as a
a State regulation prohibiting
means. of
inducing him * to
violence in picketing, but al- unionize; his business. "There

740)

the

Union pick-

Carpenters

eted the cafe in retaliation for

the Tact that the
•

proprietor's

f
'
:

contract with the * builder al- '

lowed;non-unlon labor. When '/
the carpenters began picket- ;
ing the cafe, unionized xestau-1

rant workers Went on strike
lowing peaceful picketing, is is nothing in the Federal Con¬ and withdrew the union card i
constitutional; also,- that the stitution," said the Court, from the cafe. Union truck
,

inability

employees

"which ^forbids: unions from

drivers, at'the same time, orenon-union fused to cross the
picket line J
of intimidation, threats, vio¬ concerns
for /customers by
to make deliveries to the cafe. *!
means/of ^ickethig as freely The
lence, and mass picketing (be¬
general result, said the ;
one
merchant competes
cause of prohibition of such as
Court, was to "erect a barrier ;
with another by .means of ad¬
practices by State lawKdoes
around plaintiff's cafe, across >
hot subtract .from
any hf the vertisements in the press, by which no member of defend- >
tights guaranteed to workers circulars, or by his window ant-unions or an affiliate '*
by the Wagner Act.
display."
will go" and to decrease the
strike to utilize various forms

competing

with

The CJourt in

Regulation of Picketing
which prohibits the issu¬ Amendment. The Court rec¬
Methods by Injunction.
ance of such an order against
ognized the power of a State
'"giving publicity to the exist¬ to take adequate steps to pre¬
Court injunctions have
ence of, or the facts involved
serve peace and to protect the
been employed widely as a
.in, any labor dispute, whether privacy, property, and lives of means of
regulating; the
one

workers J AjoCal of

(A.

of L.

1941

case

Swing, 312

U.; S. 321)' ruled that an in¬

junction, by a State court;
against picketing of a non¬
union; beauty parlor by a
In union of beauty shop workers

business of the cafe by
The

Texas. Court

peals,
stances

under

;

circum- k

the

outlined, held that the

activities

stituted

60%,

of Ap-v

of the unions

con-

violation of Texas :

by advertising, speaking, its people. On the other hand, methods
of
picketing.
antitrust law and issued an 1
patrolling, or by any-.other it contended that no clear and numerous cases the courts was unconstitutional. "Such a
"method not involving fraud
ban of free communication," injunction against picketing/
.present danger of destruction have § issued
injunctions
of the cafe, although it per5or violence." Broad interpr¬
of life or property, or invasion
against various forms of co¬ said the Court, "is inconsis¬ mitted continuation of
picket- "
etation of the term "labor dis¬ of the
right of privacy can be ercive, abusive, violent, or tent with the guarantee of
ing at the construction proj- "
unite" has had the effect of considered inherent in the ac¬ destructive picketing prac¬ freedom of speech."
The
ect. In a 1942 decision (Car- I
substantially restricting the tivities of-every person who tices. In some cases where Court concluded that a State
periters and Joiners Union v. /
issuance of Federal court in¬
approaches the premises of an the coercive practices are has: no constitutional power
Ritter's Cafe, 315 U. S.-722) §
junctions against 'picketing employer and "publicizes the rather mild in form or com¬ to "exclude workingmen from
the Supreme Court upheld :
not involving fraud or vio¬ facts
of a / labor 1 dispute." mitted at a distance from a peacefully exercising the right
the constitutionality of the v
lence.
^
^ Holding that such dissemina¬ place of employment, peace¬ of { free communication ;; by
Texas injunction. The Court '
.vRestrictiveness of the Nor¬ tion of information concern¬
ful picketing, may be/ per¬ drawing the circle of eco¬
stated
that
ris-LaGuardia Act against the
recognition of /
ing a labor dispute is "within mitted to continue under an nomic competition between
.issuance of Federal court in¬ that area of free discussion
peaceful picketing as an exer- v
injunction against the abuses. employers and workers so cise of free
speech does not
junctions in picketing cases,
guaranteed by the Consti¬ Quit e generally, however, small as to contain only an
the absence of regulation of
tution," the Court held that courts have issued blanket in¬ employer and those directly imply that the Statesv are 5
without power to confine the
union practices in the Wagner the Alabama
Statute and the
junctions against: continued employed by him."
! Act,,and the lack of specific Shasta
sphere of communication to
County
ordinance, picketing of any kind in cases
In a] decision rendered in that
Federal
statutes
directly related to the
regulating therefore, were invalid.
involving picketing excesses 1942 (Tjeamsters y; Wohl, 315
dispute.
picketing shift the bulk of the
such as threats, abusive lan¬ U. S. 769) and another handed
problem of regulating picket¬
Regulation of .Picketing
guage, violence, obstructions down inl943 (Cafeteria Em¬ 4 Summary of Constitutional J
Methods by Statute
ing to the State and local govStatus
to property—as by mass pick¬
ployees Union v. Angelas, 320
ernments.^; '•
*
General prohibitions of eting—or destruction of prop¬ U. S. 293) the Court ruled
The principal aspects of the
7>\SZ*'•
that {injunctions
picketing by statute are un¬ erty.
General Prohibitions by
against constitutional status of pick¬
constitutional. Attempts, by
The Supreme Court, in a
...V.
Statute
peaceful picketing, by union eting—as developed by Su¬
to
prevent
major 1941 case ^(M i Ik W a g o n
preme Court decisions—may ;
:
The most extreme form of statute,
workers, of enterprises em¬
abuses of the right to picket, Drivers
Union v.
Meadowwell be summarized at this':
legal restraint adopted in con¬
ploying no labor (but relying
nection
with picketing has on the other hand, are allow¬ moor Dairies, Inc. 312 U. S.
point. Briefly, they are as
able.
been to prohibit it altogether
287) ruled on the constitu¬ instead, upon the work of the
follows:
*
An outstanding attempt to tionality of the blanket in¬ enterprisers) were unconsti¬
by statute or ordinance. Such
1. 'The right of workers to:
general bans on ' pic^p:
against
prevent major abuses in pick¬ junction
picketing. tutional interferences with
engage in peaceful pickethave
been
adopted, ^appar¬ eting ^^'tiyities was under¬ The Court held that when a the right of free speech.
^ .:
ing is grounded in those
ently, on the ground that atiy taken by: Wisconsin in 1939 labor dispute is attended by
constitutional
guaranties
kind of picketing is inher¬ under
terms' of
the
Em¬ peaceful picketing and acts of Antitrust Law Regulation of
pertaining to freedom of
.5
Picketing
and the violence
ently intimidating or because ployment Peace Act. A sec¬ violence
communicating ideas (free¬
While statutes or court in¬
of the ease with which peace¬ tion, of this law prohibited, as has been such that continua¬
dom
of speech and the
ful picketing can develop into an
unfair labor practice, tion of the picketing will op¬
junctions which restrict pick¬
press).- ;
; ■'
vcoercion or intimidation (by erate coercively by exciting
disorder and violence.
eting to an employer's
2, A general denial, by stat¬
During the late 1930's-a one employee or a group) of fear that violence will be re¬ workers
are considered un¬
ute, of the right to engage
number of State courts ruled an employee in the exercise sumed—an injunction, by a
constitutional, it is not to be
in picketing, therefore/is
that such general bans on of his legal rights, intimida¬ State
court, which forbids
an unconstitutional denial "the picketing as well as the concluded therefrom that a
picketing wer£ unconstitu¬ tion of his family, picketing
of the basic freedom of
tional.
of his domicile, or injury to violence does not infringe the State may not place limita¬
>

••

•••

V-

•"

•*

•

:"y

'''

—

.....

Volume

: !

/Number 4542

164

THE COMMERCIAL &

FINANCIAL; CHRONICLE

J. workers to

communicate, to of a peaceful, non-coerciye State or Federal antitrust
ideas about presentation of a union/J.s statutes.•''//', '; \ -.
In view of the nationwide
the facts of a l^bor coti- viewpoint' to the public. |lf

others

trp^ersy•!£$;*;

picketing

scope

Although

unions

unions, there appears to he

ing
;

statute impos¬

one

" which

coercion,
viq-?
lence, destruction of prop¬
erty,1 or obstructions to
public highways or the
property of an employer is

■''

•

•'!-

admissible

police

exercise

power,

The writer has not found

in which the

case

recent

forms of intimidation and vio¬

directly
qqt, of refusal:
on" the
workers

eqhstitutiphalK status
bf
ma$a, picketing. However,
the Court did not consider

th a>t. th

lence

the

part

Statute* The general

refusal

practices;-including rthe

Tariffs for

that

must

the

;

never

forget

power*.

that
of the

„

are

Press. At the same time Mr. Wyatt
a "premium
payment"
subsidy of $20 a ton for extra
production of nails, which have
ueen
a
prime bottleneck in the
building program which is. ex¬
pected to fall slightly short of ite
1946; goal of 1,200,000 new dwelliugs started.
•

living* full employ¬
.

That is not jush idealism-1—it is
plain business foresight and-sound

!/ The President issued

economics;*

authorizing Secretary 04 the
Treasury Snyder to permit tempo¬
rarily the importation of scarce
timber, lumber and lumber prod¬
ucts duty-free for housing con¬

trade

traders

are

must;* and

and

unless /' all

countries, share a/rising,
ity

mation. declaring

prosper¬

face the danger of 'dump¬
ing,' of importing unemployment,

cus-

witlrits seeds of

lie$ in the existence of faith. and peace. But s p e, e c.h a s are i
p^t
good intention without" its urgent enough. Statement^ that war is
5. Restrictions of the right-tp
marriage to practical system'. We not imminent ; are hot-'enough.
?''f
picket to \ those, persons saw thathappen; before;the war; The risk remains, and the risk is
We had proof in. the League of grave, unless the three' are stand¬
rwhp. are, employees of
Nations Union that indeed the ing together in full understanding
| qqtprj>£ise arp uncon^titu^ mind; of: the. general
public had and active, cooperation ■ to main¬
tipnal
changed. Overwhelmingly., the tain world! peace; If one/ breaks

people wanted

Courttejur^tiohpmi^

:and

War, in the away*

peace.

feeling, of, most mem/ was not only
badr-it Wwas ; sihy.:? It 5 was^they

with

other

procla¬

struction.

A list of specified for¬
products is to be sent by the
National Housing Agency to indi¬
cate, which products will cojne
under the waiver. From the Asso¬
ciated Press we quote:
est

When I taik

unem¬

The

thinking -ofk a)l

affect

duty-free, privilege will
mainly
imports; from

few years ago sought to keep

interests*"

4«

emergency

those selfish and shortsighted de¬
vices by, which 'each country a

(Continued from ,p,age 246.8.)

exporting

importing
ployment, I

Factors in Pieserving Peace

^;ajtrinii^«nt and; aggravated
danger dQ \
cpmmuniiy

war.

type, aipong others,
"which might occasion . . .
a;

and

housing

announced

—

combat lags

Wilson Wyatt
$54,000,000 in Fed¬
eral loans for makers of prefab¬
ricated homes, according to Wash¬
ington advices from the Associated

ment, and conditions .of economic
and ; social progress and develop-

;

emergency

ing Administrator,

workers ; by, the Wagner of; uniop. workers •— not qh, tpm• of : non-striking ;uniqn of
to cross a picket1 line
mistrust, of desperate economic
Act. Al$o.,< i^ Thprnhilly. sfrike
protective measures which even¬
is a problem r suitable fqr workers refusing«tq cross a
Alqbrima the Court: refeh*
tually must'strangle" the life from
treatment undef the terrhs of; ■picket line,/
;x
t; industry and bring back poverty
red tp "picketingeti

Emergency

effort

veterans'

recommended

the

standards: of

inter¬

and

program,.
President Truman on
Oct. 25 authorized importation of
lumber duty-free, and his Hous¬

pledged, as a member of
United Nations Organization,
"tp take joint: and separate ac¬
tion in cooperation with the Or*
ganization to achieve the. econom¬
ic • and social/ purposes of the
United Nations,. including higher
:

being,

Truman Lifts Timber

the

organization; of
world
trade and the sensible control of

military,

rights- guaranteed / |o

peace.

sensible

the

well

national

that

national

including

world peace is a compound

proved administration. of local merit v of; Federal antitrust
which prohibitedi m a$s regulations., fe the . writer's laws- tp, deal \yith.
judgment} \hqwe.ver, W,a sj 5 able restraints of interstate or
picketing and;a dumber, of
international trade or J
cpnjiother picketing practices-r- picketing is, coercive, per sfo
and should* be prohibited by merce induced by.
picketing
impaired in: any, wiy; the

;

reasons, but be¬
by so doing
making a vital contribu¬
know

we.- are

tion to international trade, inter¬

rest of the world.

amend-,

ployn^ept^;
3

not from' selfish
cause

great landmark the fact

maintenance
of full employment is an obliga¬
tion that each country has to the

of their

(3)

must wel¬

recognized

labor laws when such unions

lence could be reduced sub-

that

this

peace

special chap¬
ter in their proposals for consider¬
ation at an International Confer¬
ence
on
Trade and Employment,

bargaining rights

^isCQpsip;ljrp-' stantiaUyJ; m doubf by. im¬ members., | and

because

have by

tq .cross, a picket linq, are-shown to he responsible
Threats, coercion, and vio¬ fpr acts of coercion or vio¬

that the U.S.A., as signatories tp
the Charter of the United Nations,

number of powerful

vocation of

oft.union

years,

lence, (2),onass picketing, and of unions subject to the Wag^
(3) restraint of trade growing ner Act, and other Federal

Supreme

Cpurfr' has ruled;

seeker after

come as a

merely by flout* valid basis for a positive na¬
ing the; rights of- non-union tional policy on picketing
workers, the employer, and; abuses.; Three lines; of ap¬
the general public.
proach to the problem suggest
Three
general / types pf themselves; (1) reconsidera¬
practice deserve special atten¬ tion of the Norris-LaGuardia
tion in any serious attempt to Act, restrictions on Federal
reduce the abuses of picket¬ Court injunctions in picketing
ing. These are: (1) various cases, ,(2) suspension or, re¬

general ban' is uncon-

constitutional,

were so restricted,
would be unable to

misery into tjie corners of the jment a policy of full employment,

earth.
every

win strikes

prohibits■

and

their

2483

//lumber was jeopardized in July
:/ by the. revaluation of the Cana>
dian dollar. This action cut the

own

ing

Canada.

its

workers: in jobs by throw¬
workers in other countries

revenue

out of them.; It

was. all the same
whether goods "which could more

economically have been. imported
were kept out by tariff walls and
quotas, or, whether goods which
ought to have been consumed at
the.; remaining^ tiyo hpme by people who needed them //

smaller, nations

com¬

were,

forced

men

The flow of

Canadian

Dominion

10%

lumber

sales

United ■'!'> States*

and

to.

the

' it

made

likely that much of the 1,000,000,0.00. board feet imported by
this country annually would go

elsewhere.*

y/«;A NHA spokesman said he

to .export markets
,

bine

against* it—-that way lies th$ by, subsidies or other forms of
believed the White House order
anachronism. But ? the- risk of another world war/The
would
di^in% V v ^ ;
: J" cents i apply, not only to the 5a
•/
problem is/ how can. we 'eurh noio
faith: and hope of- the majorityper 1,000 'board feet imanother '; A; Fufl Employment Policy^■-.■j-.s f port duty but to the $1.50 revwas. not enough. It was nut backed the- forces/making;'for
up by a realistic security or gam world-war without allowing them //itee'' aim' neyer again- tb
// enue tax; The; proclamation will
expqrt
^.h^ve^bppn; so, prevalent, as i?atipm.v
\
" ■■
::
unemployment. Our Fuji Employ¬ /. remain in force, until :the Enter—
:
^
v'i'i
^ ''
ment policy means that for a long ;; gency. Housing Act expires. Dec.
There were
tq caipse peaceful picketing
only two big war¬
Peace Is Not Passive.
; *
time we will have a shortage of
31, 1947, or; until the President
UUtimidatpry a court like vnations left in the, world,
labour. That is one of the biggest :; declares, the emergency at an
Peace is' hot- passive. Tt ;is
Nazi Germany and Japan. That
nqt
>
riqay enjoin picketing altqT Italy's
warlike
demeanor
vf-Vw^s, a matter of wishing. The true love contributions a country can make //end..; ■*
after
gether,
all, only a grimace," was of peace is positive. It is lively. to sound and prosperous;- world
trade. And, therefore, to ' world
Peace will -be achieved
by actiop;
7. Court injunctions, under proved;by the fact that she only
came
into
the
war
when
she by, positive policiesV by willingness peace.. '* '■-;//:■•/;/.»;v' /;/■'■ / —/:
terms; of antitrust statutes,.
thought it was comparatively safe. to act/and even to,risk, peace i^-- \ He^e, is wprk^' tojdo*
work;whicji
>■■*.
to
prevent unreasonable Mussolini was quick on the draw

g ? to prevent picketing; exr
;
J ^cl^sesir Jn feci} "when fei
:\V tinudation
| and ; violence

thoyght,

*;•*-?.

»»•

Fend

Raising Drive of

Jewish

s|; restraints of trade growing
out
3re
,

of picketing ' practices
permissible restrictions

picketing.

Abyssinia,' but slow when there

formidable enemy in
the field. There is the fact—two
was

morer

powerful States were, enough to
bring about a world war, and in¬

deed^ only* "one- State at the be-,

Conclusions

ginpipg.

Therefore it is hot enopgh res¬
olutely to wish : for / peace, not
enough to ,hayo a, g^eat* statistical
majority of people agaipst .war.
All that is right and good apd in¬
dispensable; but ' it will be use¬
less at the same time we have ef-:
fective, machinery
to a.qt with
swiftness forcp and co ura,g e
against preparation for war wher¬
■

The

Supreme Court res.ts
constitutional basis- fqr

the

;1;hp/ right / te
Tight /of 5 workers

to icomtnunicate to others the facts

«of;

labor controversy.

numerous

instances, however,

picketing is <a means, (a) of
•coercing workers whq might
otherwise i continue to work,
•(b) of frightening customers
-

from a struck business,
•(c) of touching off a multii

away

ever

tion

may

cap

be. One powerful na¬

destroy^

world

pease np-:

less

;

There

other
■

/;:

to be no
constitutional difficulty in the
way of
restrict

appears

government efforts to
picketing to the status

collective
;

That

power.

■

collective, security, and,

doing. But. as the world
is today, it is true, th,at three
pow¬
wrong

ers

haYn the keeping of

peace

their.* hands

and
can
maintain
world peace if they act together—
the U.S.A.; the

British

U.S.S.R., and the
Commqn\yealth Together,

the three

can

take

care

of future

ful peace—the work, of

Philanthro|iieft

rebuilding
E.: P. Lewis of James
T^lcptt,
world tradp which, if the Inc. and
Sidney A. Stein of Cen¬
feet
concerned
will / eacji
iptetnatip.uaL machinery to countries
tury Factors Corp., have accepted
prevent,the preparatipn fpr war;* strive for balance between their the co-chairmanship of the Factors
we
will, if* we truly hope fen;, imports apd experts, for constancy Executives and Credit Executives
peace, make it our duty to try an$ in their outside economic policies^ Committee
of the Federation of
and for a rising standard of Tivr
eradicate the causes of war,
ope
Jewish
Philanthropies
of. New
of the greatest of which is poverty, ing and full employment for their
York, it has been announced by
own
arid political and economic
people, "will make- trade, a Louis M.
in¬
Loeb,.1 city-wide chair¬
world blessing and an economic!
security,*1
1
man of
the. current Federation
bulwark against want and war.
i .-Economic*insecurity races
campaign.; The campaign,. 29.th
haqd
But not only are we concerned annual fund raising
in hand with social discontent un¬
appeal of the
til the minds of men and nations to, play the.* fullest possible part Federation, has a $12,000,008 ob¬
grow desperate and unbalanced.*: as, ,a;; nation and a great part of a jective,
the largest: maintenance
and* until, only top, often, nations great. Commonwealth* and; Em¬ gpal in the history of philan¬
end with the. illusion; that r war pire.. in* helping. tpf make, world- thropy, The funds will be used to
a*
wifl solve their economic problems trade
wealth-giving.- force,.:, a support the Federation's 116 hos¬
and stave off the day of economic positive.... contribution, tn / peace, pitals, health and welfare agen¬
collapse.. Here, .again,, it is not we are also concerned to play our cies, /which
last /year "served
enough, to talk goodwill and per¬ part tp the. utmPSt of our ability 350)000 persons of .all ages and re¬
suade, ourselves that well wishing in securing cooperation and good ligious beliefs.
At an organiza¬

Nof ouly. should

seek tp. PpiN

new

.the other nations. a^e together
much more powerful than any ope
and are willing to exercise that will, raise world standards.

pie withdrawal of labor serv¬ it calls for goodwill, cooperation,
ices to an enterprise by non- courage and willingness tp, act. on
the part of all countries. It is,
striking union workers .who, after ' all, analogous, to and as
refuse "to cross a picket line,':; simple as a domestic. Police
Force,
(d) of shutting off intercourse which either restrains, or appre¬
hends the wrong-doer, or makes it
between an enterprise and so certain that the wrong-doer,
the outside world—by, mass, will be
apprehended .that he avoids

picketing, barricades,
effective barriers,

tairi peace.,

amongst the, Powers in the tional luncheon meeting, of the
diplomatic field and in the active group, held on Oct, 29y at the
of Hotel McAlpin, plans were made
Trade, between natiops is the protection* and;/:organization
io inaugurate the group's drive in
only possible basis of a prosperous peace..
''Ki\ behalf of the Federation with a
I know that
and
safe. / world—only
possible
as
-Mhfcbeon tentatively set for Tues¬
way but not inevitable. The great my fellow countrymbrr wb.uld wish
' / '
•.
*■ /./
network of world trade, one of the me to, when L#ay that ' Britain day, iNov, 19,;.
/ Mr. Lewis and Mr. Stein stated
incomparable achievements of hu¬ will not be content with paying
man history, can spread
economic lip service to the high ideals and that; the greatly increased main¬
disease as well as economic pros¬ hopes of the United Nations Orr tenance goal is explained by ris¬
perity^-just 'as the arteries of', the ganization. Britain will strive; and ing prices, which have, added to
body keep a man r in good health work,* to make a, full. and practical the;-budgetary needs of * all Fed¬
contribution to world security and eration institutions,- and by Fed¬
or convey disease, to every, limb.
world .economic advancement. We eration's expansion of services in
Responsibility of U. S. :
will strive to build up. our export the fields of medical care, child
At this moment - it is the U.S.A. trade with the single purpose of welfare, and family
counseling.

must be

;

sense

practical and businesslike.

•

L^j.speaking,

tremendous economic paying; for. our necessary; imports. These, they said,* are in
addition
determine whether We, will work to, raise our own
to. the regular budgetary require¬
the arteries of world trade shall domestic' standard ,of living and
With

their

power

carry

thai

can

prosperity.or unemployment* security,, and organize to, implp- ments.

„

;•

/Thursday, November 14; 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

2484

new

Financing Small Business
with

cerns

less than

sales

$50,000.

.Weissman

receipts

"annual

says

•

'
sales

failed.

•

1943

number, of small concerns which

1944

The failures caused deep

concern

Net

Sales per
*' Annum: ■'

Small

Number of

Profits
to

$250,000

Tptal \

$25,000

$250,000

ground.

Medium
above

above

$250,000 to
$5,000,000

$25,000 to

100 to

$500,000

2,500

size

above

Large

$500,000

$5,000,000
4

now

above

liberal

All large

should
izations and other groups are ac¬ adopt and follow sound policies.
Under these circumstances it will
tive in efforts designed to enhance
the present and future welfare of no doubt be easy to demonstrate
businesses, as well as small,

These or¬ that both types should have £
trying, at least permanent place in our economy
some of them, to
determine un¬ Some goods are and can be pro¬
duced most advantageously under
derlying difficulties economically
operations.
Uniform
and to prescribe remedies which large-scale
methods make possible large-scale
will make it possible for small
production at lower costs. In other
business to continue to function
cases the
small business has an
successfully.
■'/"
'•
and should be pro¬
Small business *is regarded by advantage
tected in that field.
some as the backbone of the free
enterprise system of this country.
Why Is the Public Aroused?
It is stated that big business itself
The decline in the number of
is dependent on '.'many thousands
business enterprises and the re¬
of healthy
small businesses to
organization and transference to
support it."2
new owners of a large number of
/Any serious attempt to study
other business units have empha¬
this problem or to ascertain what,
sized anew the important ques¬
if any, fundamental changes have
tion of the future of free enter¬
occurred in the' position of small
business relative to what is rather prise.
;
The position of small business
Vaguely termed "big business,"
was in-part depicted by the De¬
prompts a large number of quespartment of Commerce as follows:3
4 ti ons.4v 4-'- 444^^
U. The Department of Commerce
'::Is small business losing ground?
ihe small businessman.

ganizations

are

Did small business

full

their

than*;

service provided at

public expense
to help keep it informed regard.ing new markets, new methods of
production and distribution? ;
| r Should other special financial
agencies be established to help

firms led

in which the matter
has been urged by certain groups
The

way

and I the

enthusiasm and emotion

which surround the whole discus¬

giving

sion, suggest that many are

lip service to what appears a very

subject.
It is fast. be¬
coming a political problem which
may well serve to create a false
impression or put the emphasis
where it does not properly belong.
The public is being led to believe
popular

that the problem is
different

fundamentally

that

from

has

which

long existed in this country.
.

-j-j

U '

t~r

Public i Policy

would

'&VV

Should Rule

most unfortunate

to create the impression

financial

\/Vv,/x,/.y'//

the

cial banks for
that

simple reason

does not

their credit rating

warrant such help.

;

the United
than
8,350,000

Another important factor which
influenced public opinion was the
paternalistic attitude assumed by
the
government following 1929.

others. Government had for a long

that the number of

time

the business.

changes in the number of
business
enterprises
since the
United States entered the war
were summarized by the Depart¬

mined upon grounds of

public pol¬

particular group. //-; * 1 '/Mi io

must be approach*
the basis that size/does

The problem
ed upon

not in itself constitute

basis for

A corporation or
or bad
small or large.
The

government aid.
business

unit

because it is

business
upon

the

is not good

unit

judged

what

it pro¬

should

basis of

duces and the costs at which

Since

business

large

enterprises, or about

000 business

operation,

firms

During the

doorsJ

period about 572,000 new
business enterprises were organ¬
same

ized,

leaving

following table, shows that
total of

over

2,981,000 es¬

tablishments in the United States
than

These

2,758,000 or 92.5%11 (in
classified as small.
small establishments had

44.8 %

of the total personnel

1939)

were

but

responsible for only 34.1%
of the value of the total output.

decline

net

about 500,000.8

part

while

generally speaking, the greater is

large portion of all estab¬
are small, 7.5%
of all
the establishments provide 55%
of the personnel and 66% of the
value of output.
Small business is

important

part of our economy! Of the 3,316,700 (estimated number) op¬
erating business firms in 1939,12
2,724,300 or approximately 82%
were firms with one to three em¬

individual businesses
with
no
paid employees. Only
122,000 firihs Md 20 or inore em-i
ployees; 26,900 or .8% of the total
firms had; 3,00 employees or more!
ployees

greater than it might be if there
experienced
managers.

which has developed during

had had

[

accp^^

be
iji part by the deItsMiring the period
emphasis

may

following/ th£ depression which
1929?; >
'
» ■

started'In

production fell off,
leaving many firms with too small
a volume of business not only to
earn a fair profit, but to keep the
enterprise going.
While several
Industrial

Economic

Series' No. 27,

Dept. of Commerce, 1943, p. 3.
,
,
4. New
and
Discontinued • Businesses,S.

H. R., Paden, D. W.
Wimsatt, G. B., Survey of Current
Business, U. S. Dept. of Commerce, Jt,l>y
Bowen,

^nd

1944, p. 7.

experience

rence

of bad management.1* A re¬

Poughkeepsie

firms

had been

showed that 38%

em¬

related occupations a
before.15

ployed in
year

Small Business

Relief for

Tax

High taxes press harder on the
small firms than on the large,
though the gross income In

even

relation

capital

small business firms

high

invested by
may be. as

that of the large concerns,

cent of the gross in¬

A larger per

of »the small concern is re¬

come

quired or demanded by manage¬
ment, which leaves less for capital
accumulation and business expan¬

hand it is held

sion. On the other

that higher taxes * on large»>cor-

porations

in ' lower

result

will

dividends for the stockholder and
not

smaller rewards

necessarily

for management.

Since the per¬

centage taken by management in

large concerns is smaller, more is
left to be added to capital in¬
As

vested.

tax

of this

result

situation it is much more difficult
for small business to accumulate

Places of Amusement i

Manufacturing

Million $

lishments

sonnel

3,420

637,585

2,2*1

40,351

1,294,724
145,640

27,987

362,047

25,224

111,183

215,050

1,300,439
7,886,567

66,843

6,210,788

42,042

1,770,355
92,794

—.-i—.XX--

•

J Wholesaling "■;

998

257,200

184,230

—™--———

Retailing:

Million

sonnel

—1—

•

Total

2,981,361

Manufacturing
armuai salesVvolume^.retail stores, service
or
receipts of 4ess :than ,$50,000. \
NOTE---Small

more on

bureaucracy ';,; and

The

im circulation

deposits

A free gold market would quickly

"The official price of gold in
Switzerland is r the price "at,

clearly illegal.

are

rencies

make gold the denominator of
all

-,.y black market in Belgium than
it is officially worth in Switzer-

ch&ck or>

Switzerland,

rnar-

the world.s

over

tionately more gold than ever be¬
fore.' Ip, the meantime, paper cur¬

First

correct these inflated and

work?

proves

Napoleon—the golden
piece—for instance^ is

20-franc

paper

traded all

Market—The

nomic

premium,, ip com¬
parison with the official rate in
V Switzerland,
gold
coins ( are

;

the rest of the world has
propor¬

■"

Yv '

•

no.
The road to pros¬
perity and the full advantage of
trade, both at home and abroad, is
through free; markets.
All eco.-r

tremendous

;

' .<*/.■

'iu ,■#

phatically

62.00

ket/rafes for the latter.- It can
se.en immediately at what a

the

free market for gold to find out

what

tive

63.00

____

——

Y;:?Y 7; i7:YY;VvJ;

and

40,00:

Swiss, francs, for instance can
goods? / tY, C
; • be acquired in,] France, legally,
TheY first
step,
along (with ;1 '•
only for importation of specific
throwing off other restrictions, is j
; goods by special; license.
The
free markets for

65.00

Swiss francs at the black
v

fyonti^s. (
■5^; "In mqst: couufries of Europe,

arrive at accurate values and

50.00
-—I..

tangled values of the currency
free trade to do its produc¬

75.00

"The quotations represent thie
prices that are paid far gold coins
on the. black
markets.- in. the
various countries, calculated in

The

in
acquire the. francs

letter/ between

;

arbitrari¬

Then how

<•
;

;
r

needs. Swiss francs: in Switzer¬

dollars? No

—L-

13.70

■' ;

Gold

control

3d.4o

i.^o

13.70

50.00

expenses

land without a( single

the

for-: living;

F^ncelcan

dollar worth in gold? What;
pound worth in gold? What^

is the

traveller; who

money

from

What: i

of the world worth in gold?
is the
is

;;

the various currencies

are

—1-

Turkey,
Egypt

counterpart
in
the
foreign
country is not as usual a bank,
but a private. individual or a
small firm that pays out the
purchased amount»at the residence of the recipient. (In this

currency would he the tree price
of gold made by supply and de¬
mand.

—: : 57.00

;

gold, the gold price would rise
and the correct gold, value of our

establish

io.50 Y

Portugal

tp foreign

Free

than he had when

■

Step Toward Freeing All Market?

Napoleon' Eagle Bovet'gn

Italy.

Thursday, November 14, 1946

left.4
■

Can

Switzerland
•I(oiiiciay,:

price? In a free market the price
zerland l by ;;smallfirmsi that
of gold would be determined like Y* specialise in
these, matters be¬
the price of any otner, commodity.
cause the banks of standing do,
for

he
'1"

sold in Swit¬

are

■

illegal,

replace the ordinary checks

fixed

government

for

for gold?

rise

controlled

"The so-called black or inter¬
nal payments that: are traded

market

free

Free Gold Market

especially internal black, mar?
ket transactions, ,-t '77,77 YYY?/

pur¬

FINANCIAL CHRONICLE

good of England and, the
Meantime,

world.

while

England, is in the process of re¬
storing • sound
domestic
States

has

•

conditions

economy,

both

her

((' the:. United

the. opportunity

and' the obligation to. .restprer4ree

markets and sound money

condi-

Volume 164

tions

which the world

upon

THE COMMERCIAL & FINANCIAL CHRONICLE

Number-4542

can

over-supply

currencies in most countries, the

the

foreign-ex¬

temptation to hoard gold will un¬ change markets of the world.
A free
The charter of the International
gold market in.iNew doubtedly linger until a Tree ex¬
York would be a -help to England change of currencies for gold and Bank for Reconstruction and De¬
and all other countries as a meas-; gold for currencies is well estab¬ velopment
requires it
to lend
For
this
reason
it
is when suitable borrowers appeal
uring stick for stability in : the lished.
necessary, readjustments
to
be necessary for each country and its for its aid, and there is nothing in
made in monies, money prices, currency authorities to bring the its charter which indicates that it

2495

1930 international mobility of

pri-

when

vate capital will he a long, long
time in coming, and will not be
an

;

value

and

relationships;

At is, therefore, suggested that
legislation be enacted to enable
the establishment of

world free

gold market in New York as early
asrpracticable. In a-free gold mar¬
ket
the
International
Monetary
Fund would find the best guide
the currencies of

to the values of

its members. *
;

•■-

V"':

do not have the

If currencies

values which the respective

in line with gold values.
;
The time lag in bringing cur¬
rency values to a par with gold
values
can
be lessened
by the
United States,- the largest holder
of gold, opening a free gold mar¬
ket. Until such steps are taken to
open
a free
gold market little
progress can be made in freeing
the exchanges, and international
trade from regimentation and na¬

would

tionalistic controls.

its

curency

gov¬

be proper

for it to make

important factor, governmental
abstracted therefrom,

timing with respect to the cycle
an
important
consideration
in

withholding loans.
will, in the course of its
first year or two of operations,
undoubtedly receive .applications
granting

The Bank

amount

uncom¬

mitted funds of the

can

they

think

have,

Export-Import
playing
an important role in the interna¬
tional
financial
policy
of
the

United States

record

unless

years

over

the

Congress

cion,

proud of our
dollar-diplomacy
in
Latin America prior to the GoodNeighbor Policy, and I recall my
own sense of repugnance when
I
ran across the following in a let¬

few

increases

Congress acts at all, it should
change
the
fundamental
rule
which the Export-Import Bank is' ter of Woodrow Wilson to Col.
required to follow.
In the long- House, written in July 21, 1917, or
run
international economic pro¬ during World War I:
:

aggregate

sources.

own

amount
to
press
capital re¬

its

actual

Financing going beyond
subscribed capital through

the flotation of

(Continued from page 2458)
•by

inflation,

for

measures

sition

ibtHAr

build

period.

shattered

are

in
to

countries,
countries

their latent
we

.of

economies

The

backward

-In: helping /to re^
war-

helping
develop

productive capacities,

helping to develop prof¬
Ameri¬

itable future markets for
can

exports and profitable future
for American imports. By
financial aid, we are also

sources
our

the world to free itself
accumulation since 1930
©1 increased tariffs, of quotas and

helping

from the

exchange controls, and of planned
and unplanned instability of ex¬
change rates..
our
financial

We are also using

aid* to facilitate
where it is already desired, and to

persuade

tance

there is reluc¬
hesitation, the adoption
where

of agreed procedures
lateralistic matching

whereby biof

imports

calls not

however,

of capital

cessation

likely to be merely
a ^period
of transition from one
transition period to another tran¬

export,

but for sufficient anti-inflationary

which

counter

the

both

inflatip^

additional

stimulus
from

comes

the

inflation

capital

export. \
•;..•■

securities is sub¬

can,

normal' times, be made an aid to
economic stabilization instead of a
hindrance

it,

it has

often

proved in the past.
But that it
shall operate in this way requires
deliberate planning properly de¬
signed to this end, and so far as I
can determine not even a gesture
in the direction of such planning
has yet been made,
sible exception * of

with the pos¬
the Interna¬
tionalMonetary Fund.-,
v
The International

Monetary

Fund could, and
to

should, be made
operate, within the limits Of its

cycle-dampening
agency.
If it operated, in accord
with what I interpret as the spirit

resources,

proceed rapidly to the granting of
appropriate loans.
The need for
reconstruction fand
development
loans, which it is the function of
the Bank to serve, may never in
the future be again as urgent as
it is at the present moment, and
no part of
the responsibility for
coping with the cycle has been
assigned to the Bank by its
founders.

Advocates
3

International. lending

its

hard

Dollar Diplomacy
tion period is

steps

that any transi¬

materia tend to have
of blackmail, of coer¬
of bribery about them.

aspect

for loans which will be sufficient

We Should Practice

convinced

so-

Few Americans feel

loanable

But

resources.

"International Em-

ployment Stabilization Fund"
There is,

however,

field for a

third international financial agen¬
cy

with special responsibility for

dealing with the problem of fluc¬
tuations in economic activity.
I
have-

elsewhere

establishment of

Stabilization

Employment
with this

the
International

advocated
an

Fund,

its sole function, and

whose avail¬
by the Fund even
at times of i marked
depression
would be at least contractually as¬
sured. Such an agency would op¬
erate counter-cyclically by lend¬
with large resources

ability for

use

ing * only when n depression was
threatening or-.prevailed and by

be taken to restore these cur¬

come

not in .pari

Bank will prevent it from

The first step in this series of
developments, namely the: estab¬ ject to the approval of the gov¬ gram which the United States is
ernments
of
the
countries
in pressing the United Nations to
lishment of a free gold market, is
rencies to the best possible com¬
which
the securities
are
to be adopt, the central principle is the
petitive values by each country necessarily the most important.
floated.
If • a
world-depression proscription of bilateralism, of the
correcting its own currency and Until 5 this is done there is no
should be threatening, increased tying of imports
to exports in
international, economic conditions point of reference around which
operations by'the Bank would be two-country bargains, p The Ex¬
as rapidly
as circumstances per¬ any practical plans can be devel¬
in order, but there would be no
port-Import Bank, however, is in
mit: "This will take time and can oped to relate the. various cur¬
rencies either to gold or to each obligation on member countries to general permitted to make loans
hot be done hastily.
support such increase of activity to foreign governments or individ¬
other.
Inflated currencies and prices
by opening their money markets uals bhly if the proceeds are used
The passing of time merely ag¬
infect the entire economy of a
to the flotation of securities is¬ in the purchase of American com¬
gravates, and does not relieve the sued or guaranteed by the Bank. modities or services.
country and its international trade
Congress,
and financial relations.
Because strains -and stresses now every¬ Despite the fact that this would
moreover, has imposed the addi;
T. mean that the Bank's
of the inflated and over-valued where •^o "manifest.
operations tional requirement that exports
would tend to accentuate rather financed
by the Export-Import
than
to moderate the
cycle, 1 Bank must be shipped in Ameri¬
would recommend that the Bank can Vessefls:
It is being widely,

ernments

form

to the rich country over the poor,
and because, in general, bargains

small

The

the

old-fashioned
liberal,
dollardiplomacy has appeared to be in¬
herently objectionable because it
gives an adventitious advantage

guarantees

in restoring order to, international
economic
relations in
the near
future.

takes

"peaceful penetration" or
"economic penetration."
To the

costs

called

;

the

same

with

force them

can

regard to

have

When the

means.

views

that

peace

"England and France have not

war

any

is over,

to our way

thinking, because by that
time
they will, among other
things, • be financially in our
.hands."
To my way

of thinking,

one

the major virtues of the agencies
set

under the Bretton Woods
Agreements seemed to be that
up

they

established

resources

ing,

from

and

procedures

and

for denationalized lend¬

that

rich

capital could flow
powerful to poor

and

properly, asked abroad why
and needy countries without sub¬
tying imports to exports is eco-S
jecting the latter to any risk of
nomically or morally more objec¬
political or'economic servitude to
tionable than tying loans to ex¬
the former^ I was un'enthusiastic,
ports.
At this moment, there is
to say the least, about our use of
considerable resentment in Nor¬
Lend-Lease
and
of
our
special
way at the requirement attached
loans to England and France to
to our $50,000,000 loan that Nor¬
obtain adherence by other coun¬
way: which lives on its shipping
tries to our principles of com¬
earnings, must carry in American
mercial
policy, even though
I
ships the American goods which
regarded these principles as high¬
it buys with the proceeds of this
ly desirable for all countries.
To
loan.
Such practices were appro¬
charge ordinary interest on a loan
priately characterized by Adam
and to tack on additional require¬
Smith as introducing into states¬
ments in
other unrelated -fields
manship the underling
acts of
smacks of double usury. I have
petty tradesmen.
If followed by
made it clear in my references to
domestic business at home, they
the Export-Import Bank that in
would be frowned on by our laws
general tyipg-in provisions are
as constituting "full-line forcing."
repugnant to me. In brief, I have
We have no
this time, to
:

need, at
stimulate-artificially

of the

which

the

export

In the light.

commodities.

our

general principles of 'trade
our
government is advo-

eating

with much

jot been an advocate> of dollardiplomacy..
;
.
Recent developments in inter-

'national relations, however, have
moral fervor,, led me to -look at the question

up
the [afresh, and I would now take a
Export-Import significantly modified position.
When ^national security is in¬
Bank,' or frankly i avow that we
believe
in
our; principles
only volved, the statesman must can¬
vass every 'possible resource at his
when, they do not prevent us from
command to promote the safety of
doing what we like to do, or at
If, without violation
least ask other governments to his country.
of any contractual obligations of
forgive us our transgressions on
his country, he can make its com¬
the ground that while it vis the
we

should

charter

either-clean
the

imposing flexible repayment
country by country,
schedules which called for heavier
proscribed without
during prosperity
and even the letter of its charter, repayments
serious menace that balance of
than during depression.
;
*,
mand
over
financial
resources
State Department which proposes,
payments disequilibrium will re¬ strictly as an exchange-stabiliza¬
tion fund, such would be the nat¬
If private international lending
effectively serve the national pur¬
sult therefrom. I know of no for¬
it is Congress which disposes.
ural result of its financial opera¬ and private international borrow¬
mer period of history when inter¬
pose, if that national purpose is
There are other phases of our
But if newspaper reports ing are to have much prospect of
both a Just and a major one, he
national
financial
collaboration tions.
have any basis, the managers of reappearing in volume, there is lending policy upon which I would would be
was as urgently
morally delinquent if
needed and had
the Fund are impatient to begin need also for the formulation by have been glad to. comment if he failed to make use of it.
as great potentialities of economic
time permitted, but I must pre¬
credit operations.;? At this time international agreement of a code
benefit to us, and to the world
serve
the remainder of my al¬
price controls, rationing, black of proper behavior for private
Tired With Soviet's Policies V
at large,* as at this time.
,
lotted time to what is at the mo¬
Perhaps I should also mention markets, import and export con¬ creditors and private' debtors. The ment of
I am not an expert on Soviet
greater importance,
and direct
governmental status of private creditors, and
that we expect also to get some trols,
Russia.
But I have reluctantly
trade operations are almost'every- of government creditors as well, namely, the political aspects of
interest payments on the foreign
become
convinced
in
recent
our lending policy.
where either substituting for or has been seriously undermined by
loans we are making and plan to
months that she is as a matter of
make.
But except as the interest distorting the traditional role of the succession of events of the
cold and calculated policy being
The Soviet Charge of Dollar
free market prices as regulators past two = decades—defaults and
rates our foreign debtors pay ex¬
Diplomacy
deliberately provocative to the
of economic values.
At this time repudiations, extinction ,of debts
ceed what the same capital, if in¬
western democracies, and that in
Our
government
is .being
vested at home, * would *earn as every exchange rate in the world by war and by exchange depreci¬
has a questionable and indeter¬ ation, freezing of debts, confisca¬ charged by Soviet statesmen with doing so she is serving consistent
interest, there is no national gain
and
intelligible: objectives:
minable relationship to the lasting tion of property, etc. Until some¬ practicing "d o 11 a r, diplomacy,"
from foreign investment on inter¬
strengthening national unity and
est account.
There is no special values under free-exchange-mar¬ thing is done to. rehabilitate the meaning presumably the use of
morale
at
home; terrifying the
our financial
resources as an in¬
economic virtue in foreign invest¬ ket conditions of the currencies rights of the creditor, it will be a
countries which lie between the
involved.
At such a time there venturesome American investor, strument of our high foreign pol¬
ment as compared to domestic in¬
western democracies and her own
vestment—or vice versa—except is little obvious value in stabiliz¬ indeed, who will placed sizable icy. In this sense, all of the great
mobile western frontiers; dividing
ing the existing more-or-less arbi¬ funds on other than a speculative powers of modern times have at
as the need for capital is greater
At such a basis and at speculative terms in one time or another practiced fi¬ public opinion Within the western
abroad than here, and the differ¬ trary exchange rates.
democracies themselves;
obtain¬
time th^re is no technique except the securities of any of a very nancial
diplomacy; some coun¬
ences' in need are not fully repre¬
ing-as the result of her bluster
Di¬ tries, notably pre-World War I
sented by the differences in inter¬ patience and trial-and-error for long list of foreign countries.

with exports,
can

be safely

■

est

rates

asked or offered.

special economic case

The ascertaining

for Ameri¬

can lending abroad now on an
unprecedented peace-time scale is
that there is unprecedented op¬
portunity for fruitful employment
of capital abroad for reconstruc¬
tion
and development, apd un¬
precedented concentration of the
disposable supply of capital here.
We do not need to stimulate
exports from this country at this
lime, and capital export undoubt¬
edly accentuates rather thanmodefates our present difficulties in
coping with inflation.
The fact
that we are somewhat menaced

what levels of ex¬
change rates would be deserving
of stabilization. : If the Monetary

rect

Fund authorities nevertheless

need

em¬

bark upon active operations with¬
out waiting for less unsettled and

less

transitory
conditions,
Fund will inevitably operate
reconstruction

agency,

the
as a

investment -by

corporations,

also, now faces legal and political
hazards of

kind which did not

seriously

to be

taken

into

account before 1914. On the other

hand, oven countries
made it a practice not

which have
to

pay

their

foreign debts have come to regard
foreign investment in their terri¬

France and

Germany, practiced it
systematically.
The
'i cjbief
forms which such diplomacy xhas
taken in the past havebeen' the
opening or closing of access to the
national
money-market
as
a
means of influencing the policy or
behavior of particular would-be
borrowers, and the promotion of
loans and investments by nation¬

relief agency,
instead of as an
exchange-stabilization - agency.

ical

als

And when the time arrives when

will be reluctant to admit foreign

doubtful

exchange stabilization

capital except on. terms which
protect them against these real or
alleged hazards.
In any case, it
seems to me that anything like a
restoration of thq pre7l914 or pre-

provide, a basis for
political penetration.

proper will
urgent, the Fund
till empty of the cur¬

be feasible and

will have

rencies then
be

in demand and will

choked with the currencies in

tory as opening the way to polit¬
or economic exploitation, and

outside

There

areas

weak

sovereignty in order to

aura

subsequent

the

of disrepute

of piece¬
strengthen
By all past

and threats a succession

meal' cohcessions which

her^andbweaken us.

experience^

country

acts the

way Russia is acting unless she is
ruled by madmen, or is deliber¬

ately courting the risk of war, or
Russia gives no sign "that
she is terrified at the prospect of
atomic bomb warfare,
and ,she
both.

gives every sign that she regards
strategic position, given her

her

strong rather than
ignorant layman, I
enough to justify
assuming that she is seri-

objectives,

weak.

practice of
dollardiplomacy in the past, especially
about

not

know

(Continued on page 2496)

THE COMMERCIAL & FINANCIAL CHRONICLE

2496

Thursday, November 14, 1946
•

last year under which, if the Brit¬
ish Government assigns quantities

We Should Practice
Dollar

Diplomacy

(Continued from page 2495)
uation is not

ously mistaken, and until I am in¬
formed to the contrary I must as¬
sume that our statesmen are in a

patently a mistaken
one,
certain corollaries for our
foreign lending policy in the im¬

similar situation.

mediate

:>•

/• ',

•

These

assumptions may well be
mistaken ones, and I hope they
the basis of avail¬

are.

But if

able

knowledge

plausible, then
face

that

fact

the

are at all
must frankly

they
we

are

most critical stage

relations,

of international
must marshal all

and

our resources

serve

the securi¬

ourselves and of
; in
general.
Ojur financial strength is a re¬
source
which
if
appropriately
used can serve that; purpose, and
if inappropriately used can add to
our
jeopardy.
Under prevailing
circumstances, therefore, I urge
ty

interests of

western

democracy

future follow therefrom:

should withhold all fi¬
nancial assistance of any kind to
which we are not already con¬
tractually bound from Soviet Rus¬
sia, Poland, Yugoslavia, Czecho¬
slovakia, and any other countries
which from common objectives or
from
terror
are
following the
First,

coerce

them,

since they have

doubt

taken

this contingency

into

account

deciding upon
their
procedure,
but to avoid
equipping potential enemies with
the

means

A**"-5

Let

examine carefully, how¬

ever, how financial diplomacy can
be made to contribute to the na¬

tional strength, since some of the
current ideas and stereotypes on

this questions are fallacious or
highly questionable. As between
great powers, it is not the credi¬
tor-status

but rather the possi¬
bility of refusing to be a creditor
which is a potential source of
politicial strength.
A loan once
granted yields no direct fruit be¬
yond those specified in the bond—
and often, as we know, not even
much of that. Loans, once granted,
rarely command gratitude. If the

should

extend financial aid to the coun¬

threatened

of the Russian

hitting

Second,

effectively.
tries

Financial Diplomacy and
National Strength

much

dollar-diplomacy.
1

the frank and deliberate resort to
U(./

This not

Moscow Diktat.

by the advance
glacier, if such aid

has any chance of being effective
in giving them the means and the
will to resist such advance. Third,

look to our alliances,
cement them with dollar-

we.1 should

and
loans

expedient.

sale

other

the

new

the

basis

and

any

meat

payment but will be:subject as to
price to terms of this agreement.
The question of types and quan¬
tities to be shipped against such
allocations to continue, as at pres¬
ent, to be a matter for settlement
the British

between
and

other

such

understood

Government

countries.

Argentine Govern¬
ment is unwilling to provide any

quantity of meat so assigned to
other countries, these quantities
will be included in sale to British

Bank to make their decisions un¬

influenced by political considera-

tions, we should keep national
security considerations in mind in
exercising our veto right over
financial
transactions
by
the
.

Bank within our

thus

money-market.

recommending

resort at this time to

our

dollar-diplo¬

macy.
But I recommend dollardiplomacy only in the service of

the transfer,
operation generally
further connected ques¬
company,

was

water-over-the-dam,

and

the potency of finance as an in¬
strument
of
diplomacy — or' of

strategy—should
terms

be appraised in
command over the

our

granting of

new

loans.

above world-market prices

to force

rather

I suggest, therefore, that if my

upon

them

from

imports

appraisal of the international sit¬

financial

than

carry

their

whose earnings

our

C. The

possible.

Argentine Government

to grant the

new

company exemp¬

tion from all and any national and

own

prices agreed will remain in force
until

the

sum

five

million

pounds

of period

commencing Oct. 1,1949,
government shall ask for
reconsideration
on
substantial
either

ment

the end of this four years period,
further discussions on the balance

dates and in respect of the same

periods.

(vi) Single Payment—In order
to facilitate adj ustment to present
costs of production
the British

sterling"

the

Argentine
Government represented by Ar¬
gentine Institute for Promotion of
to

^ Canned
now

account of British Gov¬

meats produced before the end of

September, 1946,

carry

gold

guarantee.

may

be due

to be sold to British Government

under

longer

—

already bought and

ernment and such further canned

D. Paraguay.

name

the

terms

of arrangement

that regulates the sale of meat up
to Sept. 30, 1946, to be released
for export by

the Argentine Gov¬

ernment aS soon Us

ready for ship¬

and

part of

of the Banco Central

nies which

integral agreement:

(i) Quantity and Period —- To
de la Republica Argentina at fhe.
purchase'/exportable surplus from
Dank of England (509.907.683 fine
Argentina - for; four years from
ounces) to be released.
Oct. 1,VI946, after providing for a
C. Forward Sterling..
reserve for sale by the Argentine
,

The

Argentine net sterling for¬
ward position as at the date of this
agreement to be established and
all forward

Government
not

than

other markets

17%

the

first

and 22% in the second year;
British Government to buy any
balance which is not in fact sold
year

purchases of sterling
being within that
bv the Argentine Government to
position
to
become
free
(grp.
other markets.
'
,
undec.) for the current transac¬
tion as they mature. Pending ma¬
(ii) Allocations to Other Coun¬
turity such net forward position tries— Argentine Government to
to continue to enjoy existing gold agree to honor the arrangements
guarantee. Forward sterling oper- which have been current during
established

deemed. to

All rights and obli¬
gations of the Argentine Govern¬
the British company and

Argentine

new

under

company

these heads of agreement to take

effect

from that date.

it imports

and

working
into Argentina.
.

I. This agreement is conditional

approval

shareholders

British

company being obtained
accordance with English law

approval of Argentine
in accordance with

Argentine law.

But this exemption from Customs
House duties will not apply to ma¬
terials aricl articles normally pro¬

IV. Negotiation of
.

duced

manufactured in Argen¬
tina at the time of import.
The
or

agreed

Trade Treaty

that

Costs Increase

D. The whole of the initial capi¬
tal of the new. company to be in
shares

denominated in Argentine
and

ranking pari passu in
all respects; and to be allotted to
British companies credited as fully
pesos

Statements made

Oct. 27 by

Maj. Gen. Philip B. Fleming, Pub¬
lic Works Administrator, revealed
that the volume of
lic

projected pub¬
probably be ex¬

works would

panded

of the

all

the

new

company in the hands of any
holder. The British railway com¬

the

rather

than

curtailed

tina

are

set

be agreed.

out

situated in Argen¬
in a schedule to

The

new

company

accept responsibility for the rights
and
responsibilities
of
British

companies,
company

except

would

responsibility
bentures

issued

panies.
B.

The

that the

not

assume

new

any

relation to de¬
by British com¬

Government

it is understood
shall

mean

that net
income

net

for distribution after

making pro¬
outgoings, payments
and contingent liabilities of what¬

vision for all

nature and

ever

allowance for

required for renewals at
rates to be agreed,
reserves

F. The

Government
company, in

Argentine
provide for new

such

manner

most

convenient, 500 million

cash

may

consider
pesos

period of the next

over

under
net

Paragraph E, when annual

profits

not amount to 80

million pesos.
"

other

the

duties,

taxes,

charges

fees

payable

company or British rail¬
companies which would or¬
dinarily be due under national,
provincial or municipal jurisdic¬
new

way

tion within the Argentine Repub¬

visory subcommittee to meet

corporation of

of
British
railway
companies before the end of Oc-

•i.e., the contract made at the outbreak
of

war.

•

local

gov¬

works,
present
inflated
costs
would result in. that figure being

considerably short of the desired
result.

The

"Times"

quoted Gen. Fleming
"It

indeed

time

advices

saying:

difficult

this

planning goal iii
terms of dollars, in view of the
rising

fix

trend in

the cost of

ma*

terials and labor."
It

was

added:

"Plan

income

available

lic in respect of formation or in¬

resentatives

and

.General Fleming
say, according to a
special dispatch from Washington
to the New York "Times," that
although a promising start has
been made toward the original
goal of $5,000,000,000 of public

went

to agree to set up a technical ad¬
rep¬

State

figure

preparations completed
without Federal aid through June
redemption
would
provide State and local
of the new company's capital or
works costing an estimated $1,125,for construction or extension to
In New York State is
the railways. If net income avail¬ 789,000.
concentrated 39% of these proj¬
able for distribution on initial
caoital does not amount to 80 ects.
"Additional State and local plan
million pesos in any year, the
amount of such deficiency will be preparations, made without Fed¬
made good to holders of initial eral aid, and now in the desigri
capital by Argentine Government. stage, amount to about $4,000,For the purpose of this paragraph 000,000.
wards amortization

•

Argentine

various

ernment; plans.

Revised Fair Trade

Booklet to Aid Business
John W. Anderson, President of"
the American Fair Trade

has

announced

the

Council's

new company or

respectvof. cessions,, transfers
tations

and

required to
agreement.

official

made under

this

advices,

tinued;

was

stated

which

con¬

Earlier editions of the 12-page*
booklet

having

the

edition is designed to be

new

been

exhausted,,

help especially to manufacturers
are planning to protect theirtrade-marked
products
through

who

Fair

the

Trade

Trade," the booklet
the

ables

Laws.

manufacturer

unrestrained cut prices
resale

ized

contracts

price

arid

thus

to maintain the
on

^'Fair-

explains," "en¬
to

avoid'

quality-reducing pressure off

the

by legal-:

maintenance-

permits him.

quality standards:

which he has built his business-

and

which

protect

the

trade

marks--

identify his products

and'

his advertising."
•

no¬

publications,

in /formulating-

price policies, it

AFTC

booklet*

Fair Trade" to aid-

executives

sales
their

Council,,

edition of"

new

popular

"The ABC's of

(7) The gold at present set aside

in the

the

Government

construction

which

after; the; date of this ment.
five years, to be applied in mod¬
in. Railways
agreement, Paraguayan sterling
ernization of the system. The new
purchased by Banco Central de la
(6) If in any year the balance
A. An Argentine* company to
company to issue new shares at
of payments
with sterling area Republica/Argentina in accord¬ be formed with
participation of par against receipt of such sums.
were
unfavorable to Argentina, ance with the terms of the tripar¬
either Argentine State and/or of Such new
shares to be of the same
Argentina may furthermore dis¬ tite agreement to enjoy facilities
Argentine private individuals, for class as; shares of initial capital
described in A(2).
pose freely, within the said area,
the purpose of acquiring and oper¬
except as regards receipt of any
of its
sterling balances for an
H. Meat
ating assets, direct and indirect, difference for which Argentine
amount equivalent to the deficit.
of British-owned railway compa¬ Government would be
responsible
The British Mission agree, as
to take place*

transfer being duly
transfer to
be
take effect as from

completed,

and also

shall

factors

store to

ations after the date of this agree¬

for payment for current transac¬
tions in accordance with A(2); At

of $6,000,000,000 as .approximating

(vii) Canned Meat

(Continued from page 2476)

.t,-'i

the months ahead and set

meats

Agreement

graph and

for

Sept,; 30, 1948, and shall also
to." subsequent "shipments paid as the purchase price for as¬
before the end of June, sets to be acquired. The IArgen¬
1948, in: respect of period com - tine Government to reserve the
mencing Oct. 1, 1948, and before right on giving reasonable notice
the end of June, 1949, in respect to acquire at any time at
par part

Exchange.

And Trade

unless,

Anglo-Argentine Monetary

,v»'

»r.

.i,

apply

"free

for their daily bread.

municipal taxes, present and fu¬
ture, and likewise will exempt
new company from all
and any
Customs House duties, present and
future, on materials and articles

hel<J between representatives London,':^''

of British

their
ships Government will make a single
cash payment of $5 million in
ships

they depend

tained

Public Works

distress to buy their cotton from

Tenets for Immediate Future

■

countries

friendly

approval
being ob¬
mentioned in next para¬

ment,

or as soon after as

be taken into con* tine Government will
adopt meas¬
sideration, including the need to ures necessary to permit new
ing of repayment can be made to the public support of our foreign
encourage production.
company to earn an annual net
exercise the same manner of in¬
policy in general, it is additionally
It is also agreed that categories at 4% as a minimum.
If in any
fluence
as
the
withholding
of
urgent that the instrument be of meat to be purchased and pro¬ year the net; income exceeds 6%
loans.
From the point-of-view of
Let portions to be reserved for other of the issued capital, the amount
influence on foreign policy, there¬ purged of its past impurities.
of such excess to be applied to¬
fore, past loans should be regard¬ us stop using it, therefore, to force markets may be reviewed at same
ed

Upon

1947,

in hard bargaining, there is likely
to be soreness rather than thank¬

public to make resort to it weaken

July 1, 1946.

hammered out

power shifts from the creditor
to the debtor, since the withhold¬

>\i

tions. It is the intention that trans¬
fer should be completed by Jan.
1,

grounds. '
panies to be entitled to buy and
high national policy whose objec¬
In arriving at revised prices, sell shares in new company on
tives are made as clean and decent which must of course be mutally market in Argentina.
as possible.
Because the instru¬ agreed, it is agreed that full con¬
E. If at. any time, during the
fulness on the part of the debtor ment itself had a bad
record, and sideration will be given to
prices course of two consecutive years,
•once
the loan-funds have
been because there will be a
tendency ruling in other
producing; coun¬ the net income of the new com¬
transferred, or even before. Once for honorable scruples about its
tries, and that, besides the cost of pany shall not reach 4% per an¬
the loan is transferred, moreover,
use on the part of the American
production, any other relevant num of issued capital,-the Argen¬
the
loan-contract

discussions
should be initiated immediately to
prepare modifications to Anglo(iii) Categories—The meat cov¬ payment of dividends by the new
Argentine trade treaty recently
ered by this agreement/to include
company to British railway-' com¬
Pending the conclusion
beef, veal, mutton, lamb; pig meat, panies or to any holding company expired.
of those discussions, the provisions
and offals thereof, frozen and/ or or.
organization formed by them
chilled and canned meats.
for the purpose of receiving and of the said treaty to continue iri
(iv) Prices—Prices as from Oct. distributing to be made with the force until Dec. 31,1946.
j ./';
1, 1946, to exceed prices of first same complete exemption from
bulk contract* by at least 45 %;
reduction for Argentine taxation
definitive prices to be fixed tak¬ as has hitherto
applied to finan¬
ing into consideration results ar¬ cial remittances of profits by Brit¬
rived at in special discussions to ish
companies from Argentina to
Government.

Government and tech¬
while
we
should
not
interfere nical sub-commission designated
with the obligation of the Mone¬ by Argentine commission.
tary Fund and the International
(v) Clause of Revision — The
where

Fourth,

this

countries, they will form the sub¬
ject
of
separate
arrangements
through intermediary of Institute
for Promotion of Exchange be¬
tween the Argentine Government
and other countries in respect of

from

tober to agree to the amount of
initial capital, the constitution of

Copies of the booklet are avail¬

able without cost from Americans
Fair Trade Council, 55

West 42nd'

Street, New York 18, N. Y.

THE COMMERCIAL & FINANCIAL CHRONICLE

[Volume 164 " Number 4542

0" (Continued from

2465) 0

page

which thd system, of* free enter«r
prise iwill persist. ; Here we are
inclined ' to take too much for

granted, to assume that there is
only one possible answer.
This
is hardly a safe course.
The at¬
tack on our system is a vigorous
To read between the lines of

one.

Mr. Molotov's recent speech (Oct.

29, 1946), he would like to argue
us out of supporting in the world
the

the

foreign trade no one has
yet found a magic formqla which
will. avoid the necessity for the
inexorable balance sheet. By and
large, a country's overall imports
must be balanced by its total ex¬
ports, its services, gold, tourist
traffic and the like.

stand.

remarks

friends,

Judging from

Russian

our

system of enterprise

any

that differs from that of the So¬
viet is imperialistic and fascist.
Our loans to help in the work of

reconstruction are a p patently
viewed by Mr. Molotov as "dollar

diplomacy,»
»
for the purpose of
securing; due respect for dollar
democracy."
,
We
are
unusually
sensitive,
probably over-sensitive, to the in¬
.

sinuation that

our

method of pro¬

moting economic reconstruction
may, after all, be a cloak for some
kind of economic imperialism* It
is by

the use of such words and
charges that those who favor a
different system try to put us on
the defensive.
Sometimes they
succeed.

Often, too,

seem

few

and

corners

with

The

part

which I

the

difficult

most

problem,

For
now

working from Switzer¬
land with®Allied headquarters in
Italy to bring, about the uncondi¬
war

was

surrender

tional

variety of

try to prevent the Germans from
doing in Italy as they had done
in every other country, namely,
destroy as they retreated.
The
major part of Italy's industry and
oower plants was located in
the
German-occupied northern prov¬
inces

and

the

Po.

had

rich

information

last

cial phase in our commercial re¬
lations with many parts of the
world.
We have to pass gradu¬

and

posals,

power

industrial

the

Alpine

Germans

with

surrender

told

not

the

pre¬

prelude to mak¬

stand

them

consider

preliminiary,

were

as a

When

that
Ger¬

the

important

and

fortress.
came

that

to : blow

plants
ing

valley of the

authentic

paring

reasons we may

German

the

forces in North Italy. One of our
nrimary objectives then was to

absolute

be entering a new and cru¬

namely,

During the closing days of; the

would
n

the

the ex-enemy countries, Germany
and its former satellites and Italy.

installations

Foreign Trade

assurance

pro¬

that

them

unless,
had their

that they would

countermand their orders for de¬

struction^ and

protect Italy's in¬
dustrial plants against sabotage.
They gave these promises and by
and large they were kept.

there

program

should

time

started.

And, here, let me make
point very clear. We should

one

were

certain

ideal peace settlement.

soft peace with Ger¬
many, but because European re¬
covery
requires that Germany,
though disarmed, be economically
solvent, because, in particular,
Germany's ravaged neighbors, re¬
quire it and because we can never

vocates

de-Nazify,,

re-educate

* re¬

Our

hungry, idle, disillusioned

Government,

continues

its

as long as it
occupation of Ger¬

war

number

follow this policy not because we
propose

: j

people who advocated a breathing
spell after the end of the war dur¬
ing which we might gain ade¬
quate1 wisdom to work out an

worked out and

the

orient

for a closed economy.
As an instrument to

Complete Transition Period In

have

ability to

for its essential imports.
During the course of the

pay

people.

which presents

area

mans had mined

will
now

time the

for which we
stand, in the face of the lively
propaganda of those who stand
advance

economic

constructive

of my recent work is at the same

seemed

conception of a free economic
system,
certainly
our
foreign
trade is one of the most important.

with

world

most familiar because

nomic

our

delay

can

us.

lack vigor in supporting the eco¬

principles

We can cut

the inevitable day of accounting,
but
eventually it catches
up

system of free enterprise for

which

Reconstruction and Trade

field of

develop

can

many

Hasten European

else

rather

are

These ad¬

quiet

possibly they

now

the
conclusion that the breathing spell
to

came

has lasted long enough. However
that may be, we cannot here go
into

all

which

the

political

prevent
with

ment

problems

overall

settle¬

Germany.

Our Gov¬
ernment is working for this but,
at best, it will be slow business
and

hold up a plan for the

economic

reorganization

•

our

many, will hear the primary re- zone of Germany until a final
sponsibility for the formulation peace' treaty is. ratified,:invalu¬
and carrying out of this program. able time, possibly even a unique
But it will also need the help of
private American business and of

Americans

interested

and

Further,

skilled

and

non-recurring

opportunity,

will be lost.

convince

our

businesses but solely that
they should help draw the plans
man

and
suggest what facilities w©
could make available toward real¬

izing
fer

program which would

of¬

some

prospect of rendering
self-supporting that part of Ger¬
for

many

which

sible; in .effect,
tions

are

respon¬

to create

condi¬

which

would put an end,
day, to the need for relief
and Government expenditures.
some

I would stress the

point that

should not take advantage of our

position

military occupants to
property interests.
W©
the reorganizing com¬

acquire
would

mittee rather than the stockhold¬
ers

the

bankrupt.
Today w©
object to the attempts

properly
that

being made by Russia to

are

take

German

over

property

Austria and to acquire permanent
economic interests in the various
countries

where

she

occu¬

pation,| We should not follow suc!t
a
course ourselves.; '" *
'
*v •
•

Russian allies that

foreign trade.
I

realize

create

propose

facto state of peace in
apart from
existing government restrictions, our zone of Germany and restore
the development of trade with there the economics of peace, this
Germany today is not a propo¬ may well help to change their
sition that is likely to be particu¬ views as to the desirability of a
larly appealing tq an American political peace. On the other hand,
business man. Germany has little if they feel that by delaying a
possibility of paying for essential general peace with Germany, the
imports. Today she has only a present unsettled conditions will
trickle of exports. In fact, Ger¬ continue, it will only play into
many today is like a bankrupt their hands. Obviously, failure by
that

even

corporation into which some of its
creditors
are
pouring : millions
without any plan of reorganiza¬
tion. At the same time other
creditors

taking the machinery
plants.
There was an interesting de¬
bate on this subject in the House
are

out of the

of Parliament this

summer

British

true

fashion;

when,
they

the "i's" and crossed the
"t's'VIn this debate it was brought
out that the British were spending
some
£ 130,000,000 per annum in
their German zone of occupation
and got back from Germany in

dotted

the Western powers to make the

free

system work in
Germany is a strong argument for
communism. Politics here depends
largely on the state of the stomach.
People inevitably turn to those
who give them bread and work.
Of
course,
today we cannot
alone assume authority to - formu¬
late an economic .plan for all of
Germany, but we can make a
economy

start

the

Germany

American

zone

and

our sector of
Austria and there is every reason
to believe that in economic mat¬
ters

Let American Business Enter

Germany
As

preliminary, step it would

to me that our government
departments in Washington might
well review and revise some of
seem

the

red

tape which largely • cuts
business men off from Ger¬
Austria. The more or8
less absolute prohibition which
our

many and

existed

for

business
has

now

but

the

over

men

been

against
German®

year

going

somewhat

delays

and

relaxed

uncertainties

in securing permission are still
serious deterrent.
At the sara©
time it would be

timely to mak©
realistic review of the Trading
with the 7 Enemy {regulations, of
the freezing regulations and th©
like, Today every wartime regifr*
a

lation,

such as these, should b©
examined to see whether they

have any real use, whether they
aid or retard recovery. This re¬
view should not be entrusted to

can work in close har¬
those who'have a vested interest
with the British and prob¬ in the jobs created
by the contequivalent of some
50,000,000, ably with *the French; with the tinued, enforcement of Ihese reg¬
door open
as miich economic ulations; *«■
of reconstruction they have cer¬ leaving an annual deficit for the
trade that in time will pay its own
British taxpayer to meet of some cooperation with the Russians as
If is true there is no peace' and
tain psychological advantages over
Way*
To make this transition is the peoples of certain other coun¬ £ 80,000,000. In the course of the they will permit.
there are still a series of legal
At least we should show the
not easy; it is particularly diffi¬
debate it was pointed out that
enemies
tries of Europe who are among
in
various
categories?
cult in the .case of Europe.
Great Britain was
The the victors.
"spending a world what American enterprise, ranging from enemies who ay©
They know that they
little under two pounds per head inventive genius and skill can do
President, when he recently asked were defeated and that
cobelligerents to enemies who ay©
they are
in the'areas for which we are
Mr. Winthrop Aldrich to head up not entitled to share the benefits of the
satellites and to enemies who ar©
population per annum on
a committee of industrialists and
responsible even though we rec¬ still just plain enemies. But with
of victory. Therefore, they expect the
direct support pf the German
bankers to study this problem, less
ognize that the economy of Ger¬ the maintenance of
from the outside world. Thev
all.these way
people who fought against it with many if it is to function properly
stressed the need 'for this ^tran¬
and emergency
know that they will have to work
restrictions w©
will need a larger basis than the
such ferocity and
sition to bring about "the return
such cruelty
reach a strange and illogical cor**
their way back largely by their
American i zone alone. However,
of our foreign commerce and in¬
elusion.
After5 all, the country,
own energies.
With some outside and a little over five shillings per
even
on
this point I think we
vestments to private channels as
Russia, which is most interested
help they may be able to do it. head of the population per annum
often accept too easily general
soon as possible."
in expanding' its own political and
At the outset it may be necessary
on the support of the colonial em¬
pronouncements that geographi¬ economic system in this area to
During the war period our for¬ to give this
help in rather un¬
eign
trade
ddth
pires and the colonial subjects of cally large units are necessary for at the same time the
Europe was orthodox ways.
The
primary
country
largely on the basis of lend-lease, nroblem is to get raw materials the crown who fought for us dur¬ the proper functioning of an eco¬ which seems to be
blocking th©
nomic unit. No country has made
long since terminated.
UNRRA into
the hands of persons willing ing the war."
conclusion of peace.
a quicker recovery after the war
Thereby it
will end in the near future. The
to work.
This need has led to the
A special Committee of Parlia¬
lending authority for the Export- development of the so-called con¬
than Belgium and no countries helps to tie us up in our own red
Import Bank is largely committed version credit to finance the de¬ ment which was sent to Germany
tape and war regulations. This m
are today on a sounder economic
and the sale of surplus army and
livery of the raw materials se¬ to investigate this matter pointed basis than Switzerland and Swe¬ turn operates to prevent American
other stocks which we left abroad
cured by pledge of the finished out in its
business on a free basis from conir-.
report that "it is prob¬
will soon .be at an end.
den, though, of course, as neu¬
It Ms
product.
This and other pumpably without parallel in history trals
been from such sources, in large
they fall into a separate peting with the government conn
r»riming methods may be useful in
trolled economy of Russia.
part, that we have helped to main¬ the Italian situation to get the that twelve months after the end
category,
'
tain European economy.
The In¬ economic machine off dead center. of a war Great Britain should be
Our Problem
It is high time to foyget tech¬
ternational Bank and the Inter¬
Whatever features off
Our problem is a very practi¬ nicalities.
paying £80,000,000 a year toward
national Fund may well make
Problem of Germany
the upkeep of her principal ad¬ cal one. In order to maintain even the war-time regulations, of th©
their weight felt in the not too
But it is chiefly to the even
distant future, but this is certainly
versary."
These figures do not a minimum living standard in the Trading with the Enemy Act,
more perplexing problem in Ger¬
Some little time away.
Also, the many and Austria that I wish to include the cost of the armed areas of
Germany and Austria for the freezing controls, are essential
Bank and the Fund, while organ¬
direct your attentions.
forces/of occupation, which is 'a which we liave assumed the re¬ to our own protection should re*
ized in great part to help in the
European economy can never separate drain upon the taxpayer. sponsibility as the military occu¬ main, not on the theory that they©
work of reconstruction, will have
get on a sound basis if Germany
certain tests of repayment capac¬
Our own situation with respect pying power, a substantial outlay is a technical state, of war or
remains in an industrial and eco¬
to Germany is very similar. We of the taxpayers' money will be emergency, but because such con¬
ity which will have to be met. nomic vacuums We
have, I beToday, there are many parts of Ueve, now left behind us some of too have to pour out between $100 required.
If these expenditures trols are required for other rear

ally from a foreign trade based
by and large on gifts, grant's or
government loans to a foreign

The people of Italy are indus¬
trious and in aoproaching the: task

the form of exports and levies the

mony

Europe, particularly the
countries, which
credit risks
some

and will

time to

Certainly,

come.

not

in¬

by our Government in consulta¬

for

policy for Germany which would,

cluding the costs of military

oc¬

tion

cupation* to support

patch.

what

can

do and the

essential requirements of

gap and yet,

food

the

(

tated Europe, there is

and

yet good

not

between

Bank and "the Fund

the prej udices which inclined our

government at one time toward a

ex-enemy

are not

devas¬

real

very

do not succeed

in filling this gap, we will not

re¬

store the economy of Europe to

basis where trade

commercial basis will be

ordinary
an

attrac¬

tive proposition to men like you,
who cannot

indulge in trade

philanthropic basis.

And in

this

effect

to be
an

turn
any

into

generally agreed that this is

impractical solution.

many

The Ger¬

of today does not produce

enough
million

food

feed

people and

its

cultural country

ated

a
on

60-odd

could not

successfully turn it into

could

potato

event; now it seems

agri¬

would,

peaceful Germany be
a'ny such basis. 0

nor

cre¬

;fi'r

indefinitely,

and

enemy

nancial
ment.

raw

materials,

without
If

our

any

recovery

were

are

going there

now

be¬

reason

the

future.

Certainly it will not end, unless
work out a plan

get Ger¬

whereby Ger¬

handled

sons.

cannot get a legal and

signed

peace,

rapidly

peace

let

movd

which will help the flow ojf

trade, treaty or no treaty.

through

Central

devastated

this

Europe will come away

This may not be very

Anyone who has been

incident to military occupation.
:

possible to a state of

solely by the Government, as an

that this

lieve that the need will end at any

wili

off the dole more quickly

than if these matters are

affairs aire

time in

collaboration with pri¬

this invest¬

sure

plan formulated

many

to make the best of

bad bargain but

and

vate enterprise, we

principal

might be justified in reconciling
ourselves

made under

hope of fi¬

would last only a year or two, we

determinable

Consequently, if Germany is not
to stay on the dole

$200 million per annum for

area

impressed

attractive with the fact that, given a :fair
have chance, the great majority of the

to American business but I
seen

never
men

who

American

refused

business

pull

weight in a situation of this
Of

that

course,U

American

should

not

free trade

kind.

which

suggesting

business

interests

themselves V acquire

people will welcome the type oi

their

Ger¬

and free
stand.

economy

But

for

have to

give them a reasonable chance to
choose." We
field to

cannot

abandons the

dynamic competitor.

THE COMMERCIAL &

249? ''

FINANCIAL CHRONICLE

'''

Thursday, November 14, 1946

vestments from which she used to

Our Oppoi
(Continued from page 2464)
stability.
Dependent upon the
policies we adopt and the actions
take,

exercise great
for harm.

can

influence for good or

Barriers

Must Remove Trade

by foreigners are never popular in
any
country. No
matter how
beneficial the operations may be

policy can only bear fruit
if the tariff bargaining power of
the United States is used as quick¬
This

all "familiar

are

to the condi¬

world, contributing

to the second World
We must not and will not

tions that led
War.

make these

mistakes again.

same

Participation in World
Economic Problems

me
analyze briefly
government. is doing to
participate in , world economic
problems.
We take pride in our

let

Now

what our

rected. /, In

people almost
as

drastically

now

during the war. By restricting
consumption of her manu¬

home

to the

The President has

these institutions.

domestic politics. I am

them

their

of war.
In looking forward to
ond

with demand than a year ago, but
there are still many shortages.
I
am

that

know

nqtions

other

have

Therefore,
proposals are designed to im¬
prove relations, between countries
adopted state trading.
our

with, different concepts,
Discussions are now proceeding

•v

London

representa¬

witlr the

important governments to

tives of

develop

charter for this organ¬

ization;

encouraged
that this will result as

learn

and

from

efficient

that the prepara¬

It is planned

»,

tory commission for the organiza¬
tion will meet in the Spring. The

delegates of eighteen nations then
intend to work out multi-lateral

agreements for the general

trade

reduction of tariffs.

have

You

newspapers

in yesterday's

seen

the official announce¬

ment of the intention of our gov¬

agreements

tariff
The

negotiate reciprocal

ernment

countries

time.

that

involved in these

negotiations represent by far the
largest part of the world
for oty

market

The published list

goods.

well

expanding

nations.

substantial, in*

eluding products in a majority-of
the

paragraphs of the Tariff Act.

But the size of this list should be
no

The

surprise.

war

based

recip¬

Moreover,

throughout the world.

will

ducted with eighteen

be con*

countries at

These

unprecedented

negotia¬

toward giving
vate business.

and commercial

recent

Paraguay,

place

are

under

agreement

with

first

take

the

Trade

Agree¬

directed

industrial,
to further

opportunities

for

private

great, particularly when

ical

conditions
I wish to

become

stable,

Congress in 1945, have been fore¬

consideration when you are

cast in

the,frequently announced

objectives of the administration to
Obtain the

reduction of barriers

study¬

question of investments

ing the
other

tempt

polit¬

suggest for your

ments Law since its extension by

understanding of the prob¬

some

lems that

country faces and her

trade.

vital need for foreign

people

her

feed

properly'

To
over

imported.

Four million of her thirteen

bul¬

essential that each restrict its pur¬
chases

bombardment.

Many

were

de¬

many

housing
imports of lumber and

aggravated her

gravely

building materials are es¬

countries

that you

at¬

interest

nationals

construction.

commodities and

possible and to postpone' new
construction to the fullest dfcgree

possible in Order to assist in leav¬
ing material for home construc¬
tion for our veterans and others
without

housing.' Wo

adequate

should recognize too the. necessity
of maintaining

import controls for

the time at least in order that*with

great ability to buy we do not
prices Unduly- and
prevent other nations from attain¬

our

inflate world

Export con¬

ing their fair share.

trols should be continued in"

order

to protect Our home needs. At the
same time we must recognize that

export certain products
assure the ability of
other countries to meet our- im¬
must

in order to

port requirements and to do our
share in assisting other countries
in their vital reconstructions.
In conclusion I want to empha¬
size the importance of the work
of your

Council and the activities

World com¬
much to assist in
American prosperity.

members.

your

merce can do

expanding

analyze this sub¬

ject in detail, but only to put it
as a thought for guidance

development of our poli¬
;

cies.

importance, world
further the cause
Economic security for

of over-riding

forward

the

those

this morning to

products in short supply as much

Future Imports

can

commerce

peace.

all

peoples

is an essential factor
of conditions?

in the development
that

make peace enduring.
is dedicated to peace

can

America
but

our

tained by

ter

how

objective cannot be at¬
diplomats alone no mat¬
successful they are in

Historically adjusting the political difficulties
between nations.
An expanding
been directed, to developing ex¬ economy and economic security
ports.
In this connection I said the world oVer are essential con¬
in a recent speech: "No one makes ditions to the avoidance of future
Now about imports.

our

national energies have largely

by simply divesting conflicts. •
property.
It is true
You mefi Of this Council have at

himself

rich

responsibility

grave but inspiring
to make a major contribution

and prosperity

the cause of peace

;

in the world.

Exchange Heads to
Attend Dinner in N<YiC.
and dinner
of Stock ' Ex¬

The annual meeting

the Association

be held atr the
Monday, Nov.
18, will be attended by the Presi¬
dents of the San Francisco, Los
Angeles,
Boston
and Chicago
Stock Exchanges, together with
vels, etc.
The Department of Commerce other leaders of the financial in¬
will gladly work with you in this dustry.
James J. Caffrey, chairman of
field.
We should assist other na¬
tions to understand the untapped the Securities and Exchange Com¬
markets that exist in this country mission will be the chief speaker
for products that are peculiar to of the evening, discussing matters
them—products that contribute to of current importance to the; se¬
the welfare and fuller life of our curities business.

air people.

lion homes were damaged by

sential for home

investment abroad, wisely made,
are

Great Britain and therefore have

businesses to do problem,

world commerce.
The

World commerce is essential to
prosperity in other the reconstruction and expansion
nations will lead to of the economy of the world. But

himself

opportunity to pri¬ stroyed. The lack of home build¬
Thus it is the, obli¬ ing during six years: of war has

gation of all financial,

the

that this

Corporation adopting real restraint
in its price policies.
It is also

greater ability on their part, to
buy from us through the opera¬
tion of the principle of multi¬
lateral trade.
Time is too short

dustries.

half of her food must be

country is
private enterprise. Ouf

strength of our

government policies are

tions,1 which, with the exception
of

succeed

support' of the people

what each pfoperly can

once.

government is taking

of the country.

rocal reductions of tariff barriers

negotiations

if it has the

for all

developing of this

But it can only

the lead.

The

the United States to obtain

these

climate our

greatly re¬

the Original program

stricted

In the

agree

businessmen

preventing as far as practicable
inflationary
price' in¬
creases. This can be done by each

Experience has proved that our
that exports give employment but
own trade on a direct or multi¬
unless we get something in return
Domestic Prosperity Linked With lateral basis has greatly increased
we are the losers.
Therefore emWorld Prosperity
as other countries increase their
phdsis should be given to the ex*
industrialization.
As I say, this is not the time
pansion of our imports from all
No one believes in competition countries of those things which
for narrow thinking.
This is a
time for statesmanship in busi¬ more than I do, and in many lines will
improve the well being of our
ness as well as in government* We we will face the competition of
people."
appteciate that individuals and other industrial nations for world
In fact our whole program of
individual
enterprises in
this trade. I feel, however, that we fostering world commerce de¬
should take a broadihinded and
country will prosper only as the
pends upOn the success we have
constructive attitude in our own
in developing imports and our use
country prospers as a whole, and
plans recognizing the need of of the services of other nations.
I am sure you all agree that our
other countries to export.
I hope that this Council will make
prosperity at home can only be
it one of its major projects to
Britain's Position
secured if there is a climate in the
study what we can soundly do to
I have recently returned from foster expansion of imports, tra¬
world that is favorable for the

development of prosperity

for

further

economy.

of commodities on which this gov¬

will

you

time

all,

industrial

dislocations that have oc¬ their industries are determined to
undertake industrial development.
curred the world pver as a result
of the war.
Some of us have seen Again they look to us in no small
In
backward
areas
them at first-hand.
The people measure.
of many countries are struggling where the populations have never
known a decent life, American en¬
to rebuild the very basis of sus¬
taining life.
All countries are terprise can play an important
and useful role, through introduc¬
facing serious difficulties in at¬
tion of modern American equip¬
tempting to regain their pre-war
standards. We, ourselves, are fac¬ ment and production methods in
ing the problem of developing a agriculture and in the similar in¬

ernment would consider negotiat¬

ing concessions is

After

astrous

stable

sure

the

shape their policies to assist in

nations

methods
and
techniques.
The
We have made proposals for an to believe
scientific developments during the
International Trade Organization Republican as well as Democratic
war give flfew impetus , to indus*
with the objective of breaking leaders have endorsed the steps
trial development.
down and keeping down as far as taken so far.
Other countries that had not
This is n6 time for, narrow
practicable, barriers : to
world
thinking. You all know the dis¬ previously been able to develop

O;: Although we Ourselves believe
in the value of private trading we

removed

practically all price controls. As
he has said, production in many
lines is more closely in balance

our

est, and you can have great influ¬
ence in assisting in obtaining the

trade.

now

the sec¬
phase—the period of recon¬
struction to normal life, our gov¬
ernment called the Bretton Woods
Conference in the summer of 1944.
From this Conference the Interna¬
tional Fund and the International
Bank have emerged to assist in
stabilizing currencies and in fi¬
nancing those countries needing
capital for their reconstruction
and development. We have played
a leading role in the creation of
these institutions; we must con¬
tinue
to
support 'an American
policy which will give leadership
in
the
successful operation of

assistance to
to start rehabilitation
of
lives from the devastations

starvation and gave

expanding

private enterprises in
their activities.
:

exports, the need of the other
war. V It seems clear that for Brit¬
at the present time and
ain to continue the volume of
for some time to- come is so great
support of the people of the coun¬
rbm:V;
that we must' use every sound purchases"■'"isliie''-"::"'
try as a whole.
medium of finance in assisting pre-war days—for. Britain to re¬
we have developed a foreign
turn to her*pre-war standard- of
them to buy from us for their
political policy on a bi-partisan
life—world trade as a whole must
reconstruction and development.
basis.
Republican leaders have
increase.
In addition to private financing
been consulted in the develop¬
This is but one example of why
and private investment we have
ment of this policy.
Senator Vanthe International Bank and our our policies should be directed to
denberg has sat at the elbow of
the; expansion of world commence
own Export and Import Bank.' I
Mr. Byrnes and shared the re¬
name
them in order of desira¬ rather than simply attempting to
sponsibility at important interna¬
get a larger share of pre-war
tional conferences.
The country bility but I do feel that, as condi¬
tions arise where useful foreign volume.
has given support to the policies
Of course this points the need
that have developed.
Thus, j we financing cannot be done in other
for a courageous and far sighted
ways, we should not hesitate - to
can truly say they are American
foreign finance policy on our part
use the Export and Import Bank,
policies.
;
in cooperation with to assist in developing production
In the economic field there has preferably
in other countries.
been a large measure of bi-parti¬ private financing.
As I have said, the requirements
Another way is for us to give
san support. But as these policies
for American products are great. emphasis to those products and
are still in the making it is essen¬
All
the industrial
nations are to those lines of export in which
tial that we ever keep before us
we are naturally supreme in price
the vital necessity of keeping our looking to us to obtain the most
efficient equipment in many lines and quality.
foreign economic policies out of

generous participations in UNRRA
which saved so many people from

turn, the Department

be of assistance to American

can

factured products she ;is increase
people of that country there
is always the inclination to con^ ing her exports to obtain the for¬
sider them foreign exploitation eign exchange for'; essential im¬
•
whereas if a true partnership can ports.
Our loan Will be of great aid
be
established
with
the
local
to her in reconstructing her life.
people they become part of the
But recently Sir Stafford Cripps,
community life.
President of the Board of Trade,
We have the knowledge and
1930's.
gave some significant figures. Be¬
I hope and am confident that techniques as well as the equip¬ fore the war Britain's share of
ment for the development of in¬
you men of the National Foreign
world exports wa^ 20% whereas
dustrial production, and agricul¬
Trade Council Vull support our
Britain r now
needs ■"'!exports
tural production as well
which
government in attaining these es¬
amounting in figures to 35% of
are needed in varying degrees by
sential objectives.
You can do
the pre-war world export; trade
all
countries.
in the
Although
much individually and collective¬
to balance her foreign require¬
long run imports and services
ly in backing these policies on
ments.
In other words she must
from other countries must balance
the broad basis of national inter¬
export 75% more than before the

with our
abortive attempts after the last
ly; as possible so as to prevent
world war to expand our foreign
reestablishment of prohibitive and
trade and finance Which ended in
discriminatory
impediments to
the collapse of 1929.
We are all
trade in every country and, in an
familiar with the disaster that fol¬
even more virulent form, the dis¬
lowed for ourselves and for the
astrous restrictions of the early
We

;

substantial/return to pay
for her imports.
She lost a large
those countries in the enterprise percentage of her shipping. Britain
both to United States exports and
is thus faced with the/necessity
and to bring them in as partners.
to United States imports.
„ '' ,
of restricting consumption of her
Enterprises owned and controlled
receive

unifies in World Commerce

change Firms, to

Hotel Commodore,

the more than 1,006
invited are Charles " SGarland; Alert. Brown & Sons,
Baltimore, President * of the . In¬
vestment Bankers- Association of
Among

It is vital to us

that we have as¬

sured and adequate supplies f?orrt
abroad of certain raw materials in

persons

increasing quantities as our econ¬
omy

expands and our natural re¬
diminish.
We can use

sources

products of other countries
that are difficult for us to make
ourselves. Nothing is more broad¬

many

and

America,

Thomas Graham,
Louisville, Ky.,

Bankers Bond Co.,
President of the

National Securi¬

Association.
British industry and mining re¬
Acceptances have been received
ening than foreign travel in the
quire the - importation of new education and in the development from Ronald Kaehler* President
equipment
and
machine
tools of an informed American people of the San Francisco Stock Ex¬
change; W. G. Paul, President of
from us to modernize her produc¬ as citizens of the world.
the Los Angeles Stock Exchange;
The Department of Commerce
tion methods.
The importation of
has begun a program in
these Harry Besse, President of • the
raw

materials

essential

are

for

fields.

industry.
As

has

result of the

largely lost

her

war

Britain

foreign in¬

But

cessful

private
how

can

have

only be suc¬
the help of

enterprises in' advice on
efforts can best be di¬

our

ty Traders

Boston

Ralph
board
of the

Stock

Exchange; •/> and

Chairman of the
and James Day, President
Chicago Stock Exchange.
Davis,

Volume 164

Number 4542

THE

which

Let's Slash the Federal
L

(Continued from page 2463)

cpuragemenf from President Tru¬
man's repeated

promises that

will cut expenditures and;

balance

-the.budget.
:

At any rate the govthe first quarter
with :a surplus and the taxpayers
hope-that it finishes the 1947 f iscal year in the black.
ernment

"■■

ended

People

are

for

fear

and

their

the

deficits

weary

future

value

savings.
Con¬
expansion of the money
supply frightens them still more.
and

money

tinued

As1 businessmen

know that

Budget!

should begin now to shoot for a
$20 billion budget.
We maintain
that such a budget, which is about
two
and
one-half
times
our

yearly

expenditures,

p y e war
be able to

should

take

expenditures

care

for

vet¬

national defense, debt in¬

erans,

and

terest,

all

other

necessary

governmental costs, and leave at
least two and one-half .billion

for" amortization

dollars

national debt.

increased

the

Debt and interest,

defense

The hard thing about the
debt is not paying it off so much

recommended

NAM

diate
the

should

beginning

debt at

$2V2

for

not

less

until

year

to bear against government
extravagance if they ever expect
to

than

President Truman in his review
of the 1947

budget told the people:
"It is good to move toward a bal¬
anced budget and a start on the

principal payments in accord¬
taken
in during a
Before
anyone
suggests
this
ance with the long-term increase
inflation would shrink as
budget is too low, I want to point in
national income.
others. In disposing of out that
$20 billion of Federal
goods
the '* businessman
3.: As the debt is reduced each
would taxation
plus $10 billion of local
have
little
chance
to
replace takes is $30 billion.
The con¬ year the amount saved in interest
them:
No one would want his
sensus
about peacetime national charges should be added to the
money.
The inflation history of income seems to
put it around principal payment.
Europe after World War I shows $150 billion.
Under this formula the debt
At this level, it
it is" a gamble
\yhere you can't, would take 20% of our national would be cut in half in less than
win. • You sell yourself lout of
40 years and retired
completely
income; to produce this tax rev¬
business.
In the first 10
enue.
The $41.5 billion budget within 58 years.
the

dollars

runaway

fast

as any

this year represents more money
than was ever spent by the gov¬

1947 Budget at Peacetime Top

The biggest thing in this

coun-

| try^ today' is
ernment

bigger

Gov¬

government.
isv a
thousand

than

times

combination of
so-called
"big business."
It is
industry's greatest competitor for
the citizen's dollar.
The

any

government's

spend

upwards

decision

ernment in

peacetime year; In
fact, in this first, peacetime year,
we
are spending more than we
spent in
the. period 1916-1920,
which included all of World War !
a

clusive.

It is

than 25%

off

billion

national

our

income

and

sprawling government

structure invites it.

The approxi¬

2,500,000 persons on the
payroll constitute a bu¬
,

Federal

such as this
before has seen.

reaucracy
never

country

that they think such a course is
desirable and wise for the welfare
of the country.. Here Js an Issue

which
after

must

tained.

carried

the

end

year

at¬

year be restricted to $20
billion, although its members are
convinced that a budget of $20
billion is sufficient to provide for

cost

government
duced, continues.

We have
where

life

reached a point
balanced budget.is a

Debt

There

re¬

now

governmental

necessary

costs

peacetime.

The necessity for aroused
opinion, demanding that

public
the

until

year,

current

Obligation

law

one

which

*;>

economic

Americans

all

should

learn

by heart. Public debts are
going to be repaid, one Way or the

national necessity.

other.

can

the board, as debt should be paid,

This objective
l?e attained only by reducing

total. government
spending, since
taxes are already at levels which
stifle individual and business ini¬

tiative.^ It

be done if Congress
and ;,the
President insist upon
large savings now.
The people
can

will support such action.
The e s t i m a t e that

can

try

them

repay

to dodge

across

them—and

approxi¬

Budget In Peace Year Set at
;

$20 Billion

debt, but in the end the French
people lost their possessions and
their liberty.
Germany tried it
unsuccessfully after World War I.
You will
nation

Of Tate there has been a great
of helpful budget planning.

deal
A

niimber of; outstanding, econ¬
omy-minded taxpayer organiza¬

adopted

pay it.
Alex¬
demanded that
paid because it was

debt

billion

financial

matters

tional

Association

fields.

turers,

through

its

The

Na¬

Government

Spending
oped

Committee, has devel¬
budget program which we

recommend to you.

contend

that

Congress

sense

nation

other

vice

which

was

will

wrong in
do wrong

Hamilton's
followed and it

ad¬
soon

demonstrated its soundness.
Shall our government

tighten

its belt and pay its debt the
only
way debt can ever be paid—by

ever

the

and

American

1 They're thinking con¬
servatively, as witnessed by the
sobering slowdown on political
experimenting with our economy,
and they're turning to the right-*-!
Tuesday's election results showed
this decisively.
this.

persons,

the

all

the torch of freedom and free

en¬

Thrbugh their action

workers

the

were

roils

required

convinced that business¬
are as one in the desire to

men

restore financial

nation.

Let

the

world

;

its

recovers

•

senses.

Tuesday

the American people have placed
a
tremendous
responsibility on

industry.

We must provide the
leadership < expected
Forthright action is de¬
/

constructive

us.

manded

and

must

tem¬

not

porize with the mandate of the
people for sound, efficient and
economical administration of, ;our
national affairs.

Benj. Bradley Joins
Benton M. Lee & Co.
-v

PHOENIX,
ARIZ,
Benjamin
Bradley, well-known in Chi¬

bond circles through his as¬
during the past 16 years
with H. C. Speer and Sons, has
joined the staff of Benton M. Lee
and Company, Security Building.
cago

sociation

Also

ton

former

investment

American

Syria,
from

Chicagoan, Ben¬

Lee,, head of the Arizona
firm, taught
University, in

following

the

Beirut,
graduation

his

the University of

Later, he served

Missouri.
assistant di¬
of

rector of the American Bureau

integrity to the Economic Relations in Paris. Re¬

these steps
solvency that made
country strong: -

use of the cash balance which
had been expanded to $26 billion

take

not

was

achieving

through reduced

the

ex¬

With

Government overspending, debt

heavy

taxes

affect

the

judging the

ness

relations with the /Valley Na¬

tional Bank in Phoenix, where his

system

continuing taxes at

time

investment department.

Lee

took

Through

economy,

duction

alert

absence

from the bank in 1942 to

serve as

Commander in the

budget balance,

the

national debt

re¬

and

adjustment of tax rates.
The

Government

Committee

bends

Spending

every

effort to

public
opinion
and
to
strengthen its impact upon Con¬
gressional action.
It cooperates
arouse

closely
groups,

with tax and economy
including
the
U.
S.

Chamber

Citizens

Commerce

National

is constantly

and

Committee.

the
It

studying procedures

levels

cannot

near war¬
be justified

To balance the bud¬
new

debt,

spending must be greatly
Only the people can
achieve economy—by asking less
of
government and
demanding
that
it confine
itself solely to
thrifty administration of the
proper functions of government—
reduced.

nothing
I

more,

with

Continuously engaged in the in¬
securities

vestment

p4st 20

business

National.

Valley

for

Mr. Lee served

years,

Bank

charge

its

until his

Department

brother's release from the Navy.
He

resigned

from

the

Jan. 1 of this year to

lish his

own

Phoenix.
Benton

bank

investment

' !
Lee

again estab¬

firm

and

Company

deals in general market securities,

nothing less.

confident that all of

the
the

get and halt the creation of

as one

Navy, Benton

Lee closed out his Chicago firm,

A policy
•the Arizona bank.

after expenditures have been cut,
the budget balanced and debt re¬

public rela¬

leave

When E.

and took his brother's place

A. Reduce tax rates.

restore our

economy to the solvent
that it should be.

reasonable basis for

future.

by solving them with the public
can we

would encourage business expan¬
sion and investment by affording

are problems
public interest

and it is up to industry to solve
them in the public interest.
Only

first in mind

until

the debt
disappears.
period of prosperity ahead,
planned, orderly amortization

year

which

cnducted his investment company

in Chicago, he enjoyed close busi¬

3.'Start to retire the debt. Re¬
brother, Eugene S. Lee is Vicetirement .should continue at the.
minimum rate of $2 % billion a President in charge of the bank's

bal¬

Putting the NAM Program Across
and

turning to the

to regain the

2. Balance
the
budget.
The
budget for the current fiscal year
should be "balanced at a lower
level.

by borrowing away beyond pros¬
pective needs in the last War Loan
drive to retire debt

Investment

try to

Hamilton

right thing to do-*rbecause

Manufac¬

common

in its credit.

Don't
loyalty

the

Vice-President

mouths

our

changing.

are

To
endure, v government
must
maintain confidence in itself and

it would

the

Times

ing

argued

business

,.'•<*•'

emphasizing the need for continu¬

who

the

billion.

whipped with
,

those

have proposed that
government spending be restricted
between levels ranging from $16
$25

be*

shut.

tirement begun.

ander

National

Constitution,

tions program we are
constantly

mistake

Citizens

the

this

leadership.
There is no longer
safety in business silence.
No
longer should we allow ourselves

took over the war debts of the
Continental Congress and of the
States.
Then, as now, there were

tion

and

that when

tions, including the Tax Founda¬

Committee,

recall

enlist

we must

strength

terprise burning until the test of!

History is full of examples of penditures.

complacently by the taxpayers—

minimum

what

happened to peoples who
attempted to step out from under

Above all,

fullest

United States in
1926, Lee entered the Bond De¬
our
partment of the Harris Trust and
1. Reduce spending and elimi¬ Savings Bank in Chicago. He re¬
nate extravagances found in the signed, after- several years with
Through use of the Treasury's 1947
budget. Let Washington fi¬ the bank, to form his own invest¬
cash balance, the debt total this
nally admit that the war is over. ment firm in Chicago under the
year was, whittled down to $262
Its end should be recognized and name, Benton M. Lee and Com¬
billion from its all-time peak of
war controls, activities and agen¬
pany.
$279 billion.
We feel, however,
cies should be speedily liquidated.
During. the ten years that Lee
that

equivalent

lic

the

but little progress is being made
toward this goal.
There' were

1939, far more than
at that time.

1956 and complete
retirement 50
years from
now.
Still more proposals called* for
ridding us of debt in 75 to 100
years.
The present plan
was
adopted because of its soundness,
simplicity and public appeal.

anced budget

pock-

joined.

943,000

$25 billion by

etbooks.

their national debt.
At the end
of the French Revolution a plan
was undertaken to get rid of
pub¬

this bill.

retirement

economics will collect double out
of our hides and out of our

Federal
soending will exceed $41 billion
this year has been accepted all too
the people who will have to pay

for

de-

people in the world we alone have
to trini the pre-eminent chance to keep

im¬

decided if was Unrealistic to rec¬
ommend that expenditures in the

this

of purpose and ' get oub
plan of battle and our objectives

Remember

ment until June 30,
1947,
its payrolls to 1,611,000

to make its income and its
expen
ditures
balance.
The
citizens
must show in sufficient numbers

stop

touring

Congress has given the govern¬

used to

one

would

state socialism cannot distort their

people.

mately

plan, interest charges

debt

the

can

public opinion to tell the story of
America under free enterprise in
words so simple that advocates of

time when

mately $49,000,000 less at the end
Every year government corpo¬
the people's money this year is a
of the first year than at present.
poses a tax levy of about $1,000
rations drain billions from the
hard blow.
We
At the end of five years the in¬
had fully ex¬ on the average American
family.
Federal
Treasury.
Many, have
terest charges would be reduced
pected spending to return to a In a normal
year we should oper¬
outlived the emergency for which
peacetime level now that war has ate on a $20 billion
budget and by $204,000,000, and at the end of
they were set up and should be
been over for more than a year.
10 years $485,000,000.
cut this tax burden in half,
Here is a prime ex- •
The 1947 budget provides for
We recommend that the Treas¬ liquidated.
ample.
In 1918, the government
more power
institutional
in¬
developments, more Aspects of $20 Billion Budget Goal ury offer to
established the U. S. Spruce Cor¬
subsidies, more public works, and
than commercial
The NAM Board of Directors vestors, other
a foreign
policy built on giving In its Bretton Woods meeting last banks, a
long-term obligation poration to acquire wood for
World War I airplanes.
Active
economic help to
Europe, Asia month unanimously supported the bearing interest at approximately
operations ended with the war's
and way
stations.
There isn't Government
Spending Commit¬ 2%% annually, with purchases end
on Nov. 11, 1918.
Yet for 28
anything you won't find in the ters resolutionballing for a $20 restricted to the amount of new
years this corporation has been
latest state-of-the-union and com¬ billion
budget.
The text of the money available Tor investment
tune of $10,000
bined four-ring revised budget. resolution read: "We recommend at the time of -offering.
Wp be¬ liquidating to
yearly.
It pays' no taxes on' its
There are not only hundreds of
that
reduction
of
the
Federal lieve this recommendation would
stands of timber, its I railroad or
departmental
expenditures
au¬
budget to a level not exceeding help the government to carry out
its sawmill.
It is run by a re¬
thorized by law.
There is to be $20 billion (to include debt retire¬ a refinancing and refunding pro¬
tired Army colonel and other em¬
no retreat from fields invaded
by ment) should immediately become gram that would place a larger
ployees, including a government
the government during the war. the/
goal of Congress and the Ad¬ portion of the debt in the hands of
institutional
Congress is asked for enabling ministration."
and
non-bank
in¬ chauffeur to drive the colonel to
his office in a government car.
legislation which will permit the
In view of the increased spend¬ vestors, where it belongs.
In this case, taxpayers have been
government to extend its activi¬
At various times during the past
ing for national defense, veterans'
paying for a liquidation extending
ties and spend even more.
There
year
the Government Spending
benefits,
international
commit¬
over nearly three decides—a fact
doesn't seem to be any limit to
ments and other legislation, al¬ Committee has weighed numerous
which is absolutely inexcusable.
our
shelling out money.
proposals for reducing the debt.
ready ' passed by
Congress, the
Government must be compelled Government Spending Committee Among them was a plan providing
Pattern for Solvency
$40

who

underestimate

The whole

FHA mortgage.

: Under the

It be¬
mould

These conditions prevail today."
Is there a better time than now?

be progressively larger as interest
payments declined. This plan re¬
pay

private enterprise system.
hooves those of

demand for goods is strong and
business
outlook
is
good.

thereafter Would

sembles the familiar

the

The amounts retired

in each decade

expenditures, also more than was
through 1931, in¬

scent from 1921

retirement of debt at

years, ;$27 billion, or about onetenth of the present debt, would
be retired.

get further reduction in taxes.

Pruning Knife and the Payroll

increase

ex¬

sure

imme¬

discourage

Budget, and methods meaning.
Modernizing accounting, bud¬
Too many businessmen will
go
geting and civil service practices. all out for a common
program any
The
Government
Sp e n d i n g time—so long as it
happens to be
Committee seeks to convince the
going their way.
That is not
people that they must bring pres¬
enough.
We must

of retirement pf

rate

billion

reduction of the Federal debt:
1., There

tend

of the

reau

getting started.
After long
study and consultation with many
experts, the following: formula
was

2499

strengthen
the
administrative
management functions of the Bu¬

critical

point.

costs and vet¬ wiped out.
the major new
2.; There should be

erans' benefits are

postwar items.

Our national debt is at

„

cessive ; appropriations
and
the
wasteful
expenditure of public
funds.
It is studying means to

spending less than it receives?

necessary

V«.

COMMERCIALJt.FINANCIAL CHRONICLE

us are

in the desire to uphold the

specializing

Arizona

utility and municipal issues.

bank,

THE COMMERCIAL &

2500

Problems of Direct
cast
„

/(Continued from

S, and

World

page

Trade

2465)

Investments Abroad

chill over our spirit

American

of en¬

Should

Business

Contribute

All these forces appear
Revival dwarfed in the shadow of the
terprise.

Leadership

And if this is the
role our
of revival great struggle between the Soviet country is to £lay in world af¬
in world trade since the war's end and the Western Powers whose fairs, where then is the role of
has been largely dependent upon reverberations reach every corner American business which is the
'

The form and degree

the source of the globe. The isms of which I
of the world. speak are not imaginary forces,
Revival has taken place in other they are right out in the clear
countries
upon
the
advent of with forceful and able leadership.
American resources. It has even Not only is the philosophy of our

the

States

United

of capital for the rest

spurted upon the mere hope of
obtaining American aid. Many of
these early ventures have been
brought about by dire need and
have been applied to dispel emer¬

economy

and • our way of life
by the Soviets, but, if
believe
some
of their

threatened
we

can

spokesmen,

their

avowed objec¬

standard bearer of private enter¬

prise.

The

American

intelligent

and

able

postsTNot *at •all,. The government if it were undertaken, for it
needs able, qualified men from
would/pntail using American
every
walk of life. I do mean money to block our. companies
that businessmen must bear their from
doing
business
in
other
proportionate share. During the countries. Plain, honest business
years of the war emergency, they policies
are
as well understood
showed what they could contrib¬ abroad as here at home, and they
ute in the way of experience and do not countenance a failure to
ability, but once the war was respect the sovereignty of other
ended
they
immediately
went nations. This delicate phase is ton
back to their private responsibili¬ often unobserved and can causa

businessman

has

gi¬

gantic task for, like his country,
he, too, has got to make his con¬
tribution to this leadership. He
for

has

abdicated

long

his

ties. It is quite apparent that the
national

emergency

and such

men

take

ahead.

government

policies

part
'

not

over

is' con¬

tive is its destruction wherever cerned. His former leadership has
gencies and to get the first flicker they can accomplish it. Private been snatched by more aggressive
of activity restarted. Others have capital in our country, therefore hands which* have temporarily in¬
been
undertaken to
strengthen can be pardoned for looking at fluenced the trend of our coun¬
countries whose economies were the world with misgivings.
try's social and economic evolu¬
still in motion but had sunk to a
tion. The labor leader', the lib¬
A Flagging Domestic Spirit
low ebb. Our resources have not
eral politician, the leftist propa¬
been slow to go to the world's aid.
Where then does our approach gandist have replaced the busi¬
The United States, through the
to these problems and this state nessman and his influence bn the
Export-Import Bank, has author¬ of affairs
begin. It can very well trend of things here at home, as
ized loans to other nations of three
begin right here at home. Even well as abroad. The. businessman
and a half billion dollars.
The
here, private- capital in the face has refrained from positive speak¬
World Bank to which we are the
of these aggressive forces might ing up, except in defense, and he
major subscriber, is being geared
has even come to be pictured by
be personified
as a tired and
up to help foreign countries de¬
somewhat apologetic figure pre¬ many as responsible in more or
velop their domestic resources
ferring
to
appease
the forces less degree for. the ills of the
and strengthen their economies.
which beset him and hoping that world. Possibly he has hoped to
The Monetary Fund, to which we
and
he Can be rid of them before they guard better his holdings
are
the largest subscriber, plans
have stripped him of his earnings. conduct his business by tending
wto stabilize the exchanges of the
His
once
great
fighting spirit to his own. knitting and allowing
world in order to lighten the peri¬
guiding of the overall trend
seems to haye flagged. Surely, if the
odic Stress of fluctuating balances
our
country is to take over the to those who actively strive for
in trade. We have " made direct
leadership of this changing world, the driver's seat. In seeking rem¬
loans to other countries since V-E
edies for American capital abroad,
private capital has much to do.
pay in the amount of eight and
It must shake off this lethargy and let us begin at home and choose
a half billion dollars. I should not
rise to the opportunity and obliga¬ as the first step the reorientation
overlook UNRRA which has cartion confronting us. The dangers of the mentality and the aims Of
lied great quantities
which beset capital have grown the American businessman toward
ties and reconstruction elements
reassuming his rightful place in
to countries; affected by the war. up over a period of years, but so¬
lutions. to them must be found the social and political, as well as
To these efforts we again were
and some of the lost ground must the economic life of our country.
the largest
contributor by far.
be regained now. We are in the Let him act and speak, not just
Much more is expected of us and
midst of a; transition period. More as business / to business, but to
undoubtedly we shall continue to
government, and to labor, and to
extend our resources in many di¬ than the fate of material capital
is involved.. There i^ p way of everyone, and to bring conviction

in. the
v

Government

urgeiit

now

in business and threaten

enlargh their position therein,

it is necessary

that

our

executives

rections. Ours is not

selfish

mo¬

tive, unless it be that in helping
others to improve thejr status .we
ahare in the general good to be
derived. If we accept the fact that

has made this that the private

enterprise; sys¬

higher degree of
capital possible, consisting of such
elements as liberty, free competi¬ welfare for the people, and all
tion and thrift. During this period the people, than any of the isms
while treaties are still being ne¬ which challenge it.
tem

assures

help the world improve
This involves not only going to
its lot, these efforts will be in¬ gotiated, the lines must be laid
effective in the end, as they were down for the vigorous and con¬ the polls to vote, it involves run¬
structive effort of the years ahead
pnce before after the first world
ning for office, it involves the ac¬
before the pattern which is now
war, unless we carry through to
ceptance of appointments in gov¬
fulfillment the responsibility being shaped has solidified. If we ernment posts where
soundness
which has fallen to us.
That re¬ let this opportunity pass and the and experience are required, and
needed directives are not forth¬ a
corresponding degree of sacri¬
sponsibility is positive and vigor¬
coming to improve the status Of fice that goes with them. It in¬
ous leadership in the affairs, of the
American private investment, the volves a willingness of employers
world~r-political, social and * eco¬
already in effect to make this possible for their
nomic—and it must be fulfilled in encroachment
the broadest sense of the term. may become set in a permanent outstanding men by placing them
we are

;;

life at stake which

pattern. American private enter¬
prise, therefore, is confronted with
gest > contributor
to
the
global this choice; it may strike out and
mechanism, we must set the pace save its position all over the
*and assume the responsibility of world, or sit by and witness its
the majority stockholder in this own funeral.
As the largest producer, the larg¬
est source of capital, and the big¬

corporation known

the World.

;

Leadership brings with it great

responsibility,

but

the

nation

which possesses the greatest share
of the world's wealth and which
can

do the most to meet the needs

of other nations to take the road
back

health

and
prosperity,
the generalship that
accompany
the use of its

position,

either t h ro u g h

groups or singly, where they
weather the strain financially

adopt a policy now, of active and
forward

this

Collaboration

As governments over the world
to

mis¬

point is as bad or worse than
tasks outright unfair dealing and is
: rarely
forgiven.

Needed, in Foreign Investment

are

great misunderstanding. The
take of the tactless man at

must be available to

re¬

sponsibility, insofar as the shaping
of

Thursday, November 14,-194$

FINANCIAL CHRONICLE

lot to live in
for a quarter
I have seen
much of what happens to Ameri- can capital abroad when decision^
involving its activities are. left tp>
men pf purely; domesticsexperi*
enee.
Such decisions, made hof :
has

foreign
of

been

countries

century

and

o o k i n g collaboration
only in government but
government on the sub¬ home offices, are often

in thct
unbe*
ject of foreign investments, pres¬ lievably bad.
Policies involving
ent and future. If American capi¬ capital investments abroad must
tal is to deal effectively with for¬ be closely checked with men wh<|#
with

our

eign governments, it must attune know the conditions of the coun¬
its planning and its policy making tries Where the capital is to go-*.
to those of our government which Our government also must have
in turn must reciprocate in the the
collaboration of such men
same
spirit. Let us turn to the who know conditions- and the

emigration of our capital. While
it is ready to take a normal de¬
gree of risk, naturally it must
have a reasonable assurance of the

people in the countries wher^
they work. They must be so well
posted that the people in thos$
countries know that we know ex*

without actly what conditions exist there.
When both sides realize. that all
expect to export that capital, how¬ factors are known, a great many
ever, cannot hope to have a set troubles that would otherwise be¬
obstacles are just nevet
of satisfactory conditions served come
up to them without going after born. American owners of capital
them, and in turn offering a fair abroad can no longer afford t<>
basis to the foreign countries. The remain in ignorance of the large
"fair basis" comprises a type of trends as well as specific Condi*
operation that will help a coun- tions. Further, they must take s>
try progress and a willingness to positive attitude on the
larger
reinvest a reasonable proportion trends for the general good, ast
of
earnings
there,
besides, of well as their own, not only ii»
course, taking. out a. fair return. their trade associations but with
But
business
judgment and a the government and with the pub¬
readiness to cooperate must exist lic. A short time ago I saw an ex*
in our government as well, if the ample of such a lack of informa*
collaboration of other countries tion and understanding. A group
is to be obtained. With men of of prominent business leaders had
proven experience in our gov¬ met to discuss one of the greatest
ernment, that should be entirely international financial develop-*
feasible. Our enterprise, and our ments of our time. The ignorance
government must start to work displayed of the subject matter
together from the moment of ne¬ was appalling, and it was not sur*
prising that the stand adopted by
gotiation.
these men was but a pitiful and
Upon the term "fair basis" much
depends. So much is expected of futile expression that they could
the'
Ameriean
investment
that take no stand. This is a luxury
that can no longer be enjoyed if.
goes abroad. Often too much—fre¬
American capital is going, to surf
quently more than of investments
vice in other countries. An aware*
by nationals of other countries.
Our foreign policy will be more ness of what goes on and its longconcerned with the safety and range effect cannot be overlooked
stability of our foreign invest¬ or wrongly appraised.

opportunity to

produce

fear Tor its safety. The many who

can
and ments in the future than ever be¬
No Fixed Solutions
obligation or allegiance fore. The proper respect for our
whatever to the employer. Busi¬ capital abroad is just as impor¬
In the exercise of foreign policy
ness has fared well in our coun¬ tant
as respect for our political of the United States, and in par* v
A first step has been taken in try and, if it is not disposed to principles', and as much care and ticular as it concerns American
that the overall foreign policy of make this type of sacrifice, then skill must be demonstrated in ob¬ capital abroad, there is no set of
Our
country has of late grown our government policies will be taining the one as the other. If ready made solutions or remedies
dictated
by men who do not reasonable and fair support is not for the problems and emergencies
more firm and vigorous. The mak¬
the language of business. given American capital, our coun¬ .that arise. Within a broad, fair,
ers of that policy, tried all the dif¬ speak
ferent approaches, including ap¬ We have seen the effects of plac¬ try loses prestige in foreign lands firm foreign policy that asks only
peasement, to obtain peace and ing responsibility in the hands of just as quickly as when its politi¬ fairness and liberty, the greatest
the inexperienced. We can com¬ cal moves are ill advised. A source
harmony and fair dealing" among
safeguard that we can have is the
without

based on pare the results with those ema¬ of high authority in our country experience, ability and sound*
broadcast the view that ness of our representatives. ; >
the objectives of nating from men in government once
ventures
resources, its; knowledge and its the United States in its .relations who have a record of ability, ex¬ American • capital that
If * would lie presumptuous for
abroad should not receive any
guidance, if these are to be di¬ with the rest of the world are perience and soundness. To ob¬
any man to profess to have the
rected to the proper ends for the ethical and fair, evolved because tain the latter, in the ordinary support from home—that it must
solutions to the multiple complica*
good of all. Nor is this for a given it was found indispensable. Al¬ course, government salaries will run the risk of the places where tions that will arise to plague our
to be
increased, but ; that it goes. This Was a needless and
term of office. This is a permanent ready that firmness has been vin¬ have
foreign investments. ; We
have
dicated amply. Our statesmen had process may be slow and the sit¬ shortsighted step and it caused
■obligation.
'
seen, and not long ago, how it be¬
"4\\
*/" --V*'
Ci*.
will not permit of long unnecessary
embarrassment! t o came necessary for our govern*
to learn what approach was need¬ uation
Capital Is Cautious
ed in the postwar world, by close delay in fulfilling the need for American investors and, in turn, ment to alter its decision on grant¬
Naturally, American capital, as contact with reality, however, for men. If the United States is to to our government. If we are to ing financial aid abroad.
We
it looks
abroad
at
the. nresent when they went into the battle assume the leading role in the be called upon for help by other were reproached for resorting to
time, sees many opportunities to for "peace, once the war was over, world, its top flight businessmen nations, we have the right to ex¬ what was; termed dollar diplo*
take.care of the needs of other few of them had had any experi¬ cannot evade their share in the pect cooperation, especially where
macy.
There will be many times
lands and, in so doing, bring great ence in foreign affairs as they effort. That is the responsibility private capital can render help when the use of this resource may
of business, unless it is going in and employment and both they
benefits to them and to itself, but take shape today. They are, there¬
be advisable to avoid threatening
•while this great reserve of pri¬ fore, in the process of evolving for isolation, which could soon be and ourselves benefit.
injustices. We may also want to
new
swing that
vate capital is available, it is loath American foreign policy to face followed by a
use many other peaceful forms of
Favors Private Foreign Loans
would take up .where the New
to venture forth in the face of so the
present and the future. In
bargaining. The Monetary Fund
Deal left off. In other words, as
A psychology has taken form in
many threats that lurk on every making the effort bi-partisan they
provides checks and balances but
"side. Looking out from our shores have already come a long way. our country has begun to evolve some places that the function of
they may be long in becoming ef¬
into the' political sphere, commu¬ The policy they develop will have its overall postwar foreign policy, United States capital should be fective. Men and countries alike
nism; socialism and nationalism to be more than what that term private enterprise must begin to only to make .government loans are fallible and do not all use the
vie with each other to impose "foreign policy" has meant in the evolve its foreign policy, starting to other governments—they to do
same
yardsticks of ethics.
We
their pattern on society. In the ordinary sense.. It will have to with the' most important contribu¬ all things within, their borders.
cannot escape

nations.

must

the

This

belief

firmness,

that

...

tion it can make—-"men in gov¬ The American taxpayer who de¬
sphere trade restriction, maintain the leadersihip" of the
ernment." This applies to its do¬
and labor trouble world,
pends for his livelihood on the
by
the
United
States.;
mestic policies also. •
v / . v
,
growth and expansion of Ameri¬
spread like contagious disease. In American business should be be¬
enterprise would not long
I do not infer that only busi¬ can
the financial area, exchange un¬ hind the policy makers to
the
suffer such a situation to continue
nessmen can best fill government
certainties and excessive taxation' xaneSt.

•►'economic

discrimination

may
our

find
veto

it necessary to invoke
in

the World

dollar loans, or
matoricilc

Bank on

restrict the sale of

r>rnmtri<ac

wVin

mifdlt

Volume 164

Number 4542

THE COMMERCIAL & FINANCIAL CHRONICLE

them

use

against us, or, on the step of the way and cannot be al¬
hand, when a country is the lowed to die./, J'
JX,,>

other

unavoidable

Free

setbacks

the beneffts wotrld

that

sure

not otopr trrere as we would read¬

2501

intention'Of
enter into

this

ily find that the repercussions at ment negotiahome woukh be equally substan¬ tidns with 18
tial. Our
wa^of life is very pre¬ other princi¬
cious and if as worth exerting pal and repregreat efforts to fetain, but the day sentative
out of this, business is past when we can lean back in trading na¬

country
our
we may feel it best to temporize( where
capital goes is indis¬
on the fulfillment of - its commit¬
pensable, not only for government
ments to us:" Again our country people
but for businessmen as
well.
With the close cooperation
mav want to extend aid simply to
victim

nation afloat,
it may never

keep
a
friendly
though we know

access

that

can come

and

government

_pvory

alike

avoid

can

chair in the presence of new

our

government to

concerted trade-agree¬
,

back to us.

come

the International Bank for
Reconstruction and Development

for tne kind
envisaged in*

the Suggested Charter for an In¬
ternational Trade Organization.

The substance of the Suggested

Charter is

now- being discussed in
London by a committee of nations

tions for the

And I have not many pitfalls; Our hope is to live
private enterprise with ^reciprocal rereparations which in and work in peace with our neigh¬ the shrug "the government ought duction of
a high degree of busi¬ bors.
Certainly friendly and fair to do something."
The future trade barriers
of
American
busines and substan¬
ness as well as political judgment. treatment of capital is one of the course
surest means to help bring this
tial elimina¬
abroad, and indeed of our whole
Responsibility of Our Policy
tion of trade
about.
foreign policy and of the very d i scriminaMakers
This is the approach which our
welfare of mankind, is squarely tions
All these things, and in addi¬ country can make for the insur¬
among
inroads

and

and to pave the
way
of economic world

•

designated by the Economic and

mentioned

Social

itself needs

International Conference

tion

confiscation,
talk right
clearly m the

with

dealing

of its foreign

ance

investments.

and act

wrong," are
realm of our policy makers—and
we want them to be of the typ®
who meah what they say,
They
must have not only confidence
that their views are correct, they
must have the courage to see their

U. S. Gives Formal Notice oi Plans
To

Negotiate Trade Agreements

people of the United States rea¬
lize the true significance of these

nation uses its resources

sition

its

trade

and po¬
best ad¬

Our people cannot fail
to utilize ours when the nee^ oc¬
curs.
Naturally, we must be as
vantage.

make reasonable con¬
cessions as to ask for them.
We
to

ready

P°btics

in a world of power

are

and, as businessmen, we must be
aware
of that fact. Many weHwishers would have us
such

thmk that

reference is scandalous, and

hearings, which it is
thought will last from ten days
to three weeks, are purely to get
advice and information, the pub¬
lic testimony; not being in any
way binding on our negotiators.
No products^ excepting those on
the announced list, may be the
subject of negotiation.
The actual bargaining with the
other countries will probably take

resort to

do not approve or
domination of other
we

courj^iesand
^

force, threats, secret police
enslavement. Yet we must

li^ Jin
who+do—

with powers

world

we've got to get

and what's more,

the greater the
lieed, therefore, to utihze

England

after which

the U. K„ for the
abandonment of imperial prefer¬
well

;!y our bargaining Pomts,
ready to

use

all of them.

phases to

"make better

of what we have

use

than before.

list of

There is a long
in

™us
the current views on interna

tSe,

tkmal
such
f
our imports and Placmg a ratio ox
some kind between our foreign
loans and imports. tanfl reduc

increasmg

tions, making away with bilatera
treaties, state trading, rartels ex^
controls, etc. As a siaxe

SicanWhinvestemenr Sad
Eliminating discriminatory practicS the a!ms of the Internationa
Organization set a nig
But all these things will

Trade

Standard
rernahi

conversational

me r e

unless they
mented by good men and a" alert,

tor¬

phrases

banking must
available from
and
™n

make such
their top

Wtective
evolving
are

EoUcy

As our

rank^
Itates-

industrial ior-

"ige ?h°e CLwmrye of ^uftoefgn
*U

twnta In
inn well take a

the

our

negotiate,
clined.

invited

nations

only

Russia

has

How serious her

de¬

efforts we

lesson from that

would

perma¬

would

actually be is questionable,
particularly when it is realized
that she accounts for only 5% of
the world's international trade. In
any event Secretary Clayton has
stated that he is still "hoping" for

cooperation.

cific action to reduce, modify, or

and

quantitative

discriminations.

agreements negotiations which the

Department-has today announced
are

one

the

principal means

of British foreign
P°hey
•which for centuries hasseentte

by which the nations

abroad'work ifdose harmony

nations included in the proposed

for

methods, our

combine our

(which

than co¬ negotiations) will
need is to spring to achieve

private

govern¬

ment efforts to convince the gov¬
ernments and national capitalists
in

in London

general good. Rather

ercive

countries abroad

that Ameri¬

supplement
their economy, not impinge upon
it
This is a problem in human
enginering and does not stop with
the original investment; it has to
fce Uved and exemplified every
can

investment will

which

the

source

but

now

meeting

the same

are

endeavor next

this end.

Accounted For

J;In|the past
States

and

years

the

other

United

countries

participating in these negotiations
have
thirds

other

accounted
of

the

for,

world's

about
trade.

twOThe

principal

the

under post-war conditions.

Included:

portion of United

same

States

pro¬

exports

are

and

nels of trade, replacing trade war¬
fare by trade cooperation to the

the

benefit

common

Their

of all

countries.

failure will large¬

success or

ly determine whether the world
will

towards

move

liberal

system

international

trade, free
from arbitrary barriers, excessive
tariffs, and discriminations, or will
pay the heavy
costs of narroweconomic nationalism.

.1
of

confident that the people

the

necessary

support

United

States

will

give

these negotiations their full sup¬

port and encouragement.

U.S.and Russian Disarmament

trade agreement with
Mexico, un¬
der which a concession

which,

result

unforeseen

circum¬

stances,

causes seriouis inj ury to
domestic producers, can be modi¬
fied or withdrawn.

The

process.

United

two-

States

will make requests for tariff and
ether concessions by the other
countries in favor of a wide
range
of products
covering a large pro¬
portion of our total export trade.

Although
items

list

which

the

export

concessions

will

requested is to be published,
the interd e p a r t m e n t a 1 tradeagreements

paring

very

be granted

ily mean that a reduction or bind¬
ing of duty will be granted. No
offer

tariff

conces¬

sion will be made until after the

public hearings, and the final de¬
cision

to what concessions will

be granted will, of
course, depend

the outcome of

the

negotia¬

Concessions may take: the
form of reductions in duty (cus¬

taxes)

duties

and

or may

import

excise

simply bind exist¬

ing duties; or duty-free treatment
processing taxes.

cance

of the Negotiations.

The Acting Secretary of State

has today

its zeal

run

the risk

shouting itself hoarse, at highpitched notes, cannot enjoy ;a
really firm sympathy of the broad

formally announced the

page

will

•wrj

2473)

able

direction.

do much

this

The press will make no

mistake

if it lays to heart this
important and urgent problem. It
people.
At the is beyond dispute that general
same time there need not be ;any
reduction of armaments including
doubt, that the potentialities of the prohibition of development
the press are well nigh inexhaus¬ and use of atomic
energy for mili¬
tible when the
press is
really tary purposes serves the interests
filled with the sincere concern to of
peace-loving people. Since the
promote
peace
among
nations, reduction of armaments and pro¬
their well-being, national inde¬ hibition of the atomic bombs will
pendence! and freedom.
have a general character, not a
\
sections

the

I shall not conceal that

single

couhtry will be able to
taking of such measures.
special considerations, in mind. I Neither will any country have a
should like to draw attention of privileged position.
After routing of our common
the press to a problem, the urgen¬
cy pf which it is difficult to ques-; enemies who have been disarmed
tion.
What is more there is rea¬ for many years to come we can
now
son, to believe that the solution of
proceed to reduce arrriathis important problem of inter¬ merits in our countries as well.
national
cooperation
can
ade¬ This will put an end to the race
that h has * now
quately be advanced by joint ef¬ of u, armaments
started.
We must carry out gen¬
forts of the United Nations.

speaking

of the press I have certain

now

As you know the Soviet Dele¬
gation has put forward a proposal

for

general

reduction

arma¬

It is also well known that

ments..

evade the

eral

gation

the

United

States

America has given its support to
this proposal arid at the same
time

presented its own further
re gar din g this
problem. We have yet to discuss
these questions in the United Na¬
tions Organization and we should
not now anticipate this discussion.
However, the American Delega¬
tion has already met the proposal
considerations

of the Soviet Union. I want to de¬

clare* that for its part the Soviet
the .Delegation, of. the. United,
States.
We can already recognize
,

that

the

proposals of the Soviet
and American Delegations can be

harmonized.

We all should in all

earnestness work for the

accom¬

plishment of this great task.
Not

single Delegation to- the
General Assembly has raised ob¬
jections to the discussion of the
question of general reduction of
armaments.
On the other hand,
as
you know,
that while some
delegations received this proposal
with
complete
approval
other
delegations expressed their readi¬
ness
to discuss this problem.
I
a

shall be able to
grips with this problem

hope that
to

come

now we

start towards the

solution

problem of gen¬
of armaments in

eral
the

the

reduction
course

...

of armaments

ac¬

United" Nations.
Reduction

will

armaments

the number
the armies,
navies and air forces. These steps'
will result in. a considerable re¬
considerably reduce
men
serving in

military budgets and
the burden of. taxa¬
tion for the population and this
will make living conditions easier
duction

in lightening

for laboring people.
General re¬
duction of armaments will con¬
tribute

the

small

and

longing.

consolidation

international peace and
for which the peoples

security,
of

large countries

both
so

are

.Ely giving the necessary

support to the accomplishment of
this objective the press
out

one

success

of its

will carry

great tasks.

achieved by the

The,..

press* jn
of

this noble undertaking will be
historic significance and

will re¬

spond to the profoundest and
nermost

sentiments

tions of peoples for

and

ip?

aspira-r

stable peace

and progress.

Miller Trading Manager
For Theron Conrad
v

SUNBURY,.

Conrad

PA.—Theron

Company,

416 Market

Street, announces that Joseph R.
session
Miller has become associated with
Assembly in New

of the present

of the General

York.

reduction

cording to a single plan and Un¬
der the direct guidance of the

in the General Assembly the Dele¬

and to make a

Statement by the President of the
United States on the Signifi.

(Continued from
tone and

by the United States Delegation is also willing to meet

decision to

Proposals Can Be Harmonized

It is intended to include in the
proposed trade agreement an ade¬
quate escape clause, along the
lines
of that
appearing in our

negotiating countries have

accounted for about the

agreements.
to strengthen
foundations of
the International Monetary Fund

They

subse¬

negotia¬

objectives by Concrete and
specific action to clear the chan¬

mutual-aid

our

The

Important Escape Clause to Be

toms

the

trade-agreement

countries

tions.

Two-Thirds of World's Trade

Organization.

lantic Charter and of Article VII
of

es¬

International

negotiating

likely

are

.sources

imports,

ariy.'.product not covered by the
present or a supplementary public
restrictions, list. Inclusion of
any product in
The trade- the public list does not necessar¬

eliminate barriers to trade such 9s

side

the

principal

States

organization is pre¬
extensive list of
such requests, and export
interests
The British and French Gov¬
are urged to let the
trade-agree¬
ernments have announced their
ments organization know at the
full agreement with all important
public hearings what concessions
bolnts of the Proposals^ The Eco¬
they feel should be requested of
nomic and Social Council of the
the other countries involved in
United Nations has voted to call
the negotiations.
an
international
conference on
Information
is
also
solicited
trade land employment, andl has
about other trade
barriers, such as
appointed a Preparatory Commit¬
quantitative restrictions or ad¬
tee to prepare the agenda for that
ministrative
regulations
which
Conference.
have stood in the way of United
This Preparatory Committee is
States- export trade with these
how holding its first meeting in
countries, and as to any discrimi¬
London. • It
has - accepted
the nations
by these countries which
United States Suggested Charter have
proved detrimental to United
as a basis for study.
States exports.
To be fully effective, general
The procedures hitherto' fol¬
rules for international Commercial
lowed under the Trade Agree¬
and trade relations such as those
ments Act will continue to
apply
laid down in the Suggested Char¬
in the preparation for these,
nego¬
ter must be supplemented by spe¬ tiations. No tariff concession
will
Russian

overall foreign tariffs,

must our

United

The negotiations will be

not

t^s approadi^
shall have to

formerly

way

USSR Has Declined

nent abstention

W it does mean we

United

trade,
including
among them some products of
which Germany and Japan were

ence.

There aie

and experience.

new

of totelli-

quires a high degree
cence

and be

This r

import

Spring,

there will be further

qua non of; all these negotiations
will be pressure on the Dominions,

along with them;

dili^n-

States

products

•

place

simply looking m the °pnegotiations in Geneva.
posite direction we can dispel all
threats to the safety of our coun¬
The Elimination of Imperial
try and our patrimony abroad.
Preference
Ours are the weapons of peace
It is understood that a basic sine
that by

important

and
President Truman

tant that the

These

Trade

tions announced today will carry
forward these general principles

iContinued from page 2462)
through. Their vision must
which public hearings will begin and imports. The list-of products to the structure1 of international
be. broad and this means they
on objections by
our citizens to cn which public hearings are to cooperation under the United Na¬
must know when to extend a
the proposed concessions, and al¬ be held is. therefore extensive and tions.
They are necessary to
helping hand as well as when to
so for concessions that we should includes a large proportion of the achieve the
objectives of the At¬
stend on a right.
Every other
ask.

quent

negotiations, for us and for the
world. They are not solely trade
bargains. They are that but they
are much more. They are
central

course

for

prepare

Trade

participating.
It is impor¬

quotas, countries who

Employment and for the

tablishment

the nations

to the businessman himself.

and

Council

Given these

them in charge of their trading
\ ^

promises the press department,

THE COMMERCIAL & FINANCIAL CHRONICLE

2502

1942 had

Need We Have a
on

(Continued from page 2460)
fered

largely con¬

cause

Depression?

this decline.

tributing cause, to the decline.
Willys-Overland $4.50 convertible

:;vy

The decline in

commodity price
preferred ; syndicate • broke40 is a
step towards normality and
points to a price of 60; the signifi¬ also a
step in reducing the cost
cance of the approximate 30-point
of living and the cost of produc¬
decline in Montgomery Ward and
tion.
Certainly $0.40 for cotton
Electric Auto-Lite indicated that
with rayon selling at $0.26 is not
money was not forthcoming for
an economic necessity or blessing.
these and other new issues.

end

reach

est financial

position in their his¬
nati Gas & Electric offering from
tory and have reduced their farm
26 to 22 and the discount in Allismortgages by almost $2 billion
Chalmers convertible preferred of since the war
began, no classes
8% from 100 to 92 accentuated will be ruined by decline, unless
this stringency of investment cap- they be too rapid and too steep.

peak of $165 billion.

the

even

Gerihan

after the

Wax* "and

the

Japanese War; also, in the face of
Government

predictions that we
would have eight million unem¬
ployed in they Spring of 1946.

1939, a pre-war year,
it ■ was
$70.8 billion, and in 1929 it was
These may have become panic
billion. Our available cash
stricken, over the fear that their
resources with $176 billion (peak
profits would disappear and took
of Jan., 1946) of deposits and cur¬
immediate profits.
rency outside of banks which is
$83.3

three times what it

over

As the farmers are in the strong¬

in Cincin¬

decline of 15%

The

fairly sized decline

National income may, this year,
K

large profits in
generally,,, which re¬
fairly immune from any

unprecedentedly low yield.

Commodities

secured

market

mained

tractive against bonds carrying an

large scale had no. part in

the

Thursday, November 14, 1946

1929

was

hardly shows anything but

plethora of money.
(See No. 1
Undigested Securities). In addi¬

people of this country
deposits,
savings
bonds, savings bank deposits viz
$225 billion of liquid assets as
against $65 billion in 1940.
tion,

the

held

time

As the situation with regard to
new issues grew more and more

acute and

prices, receded, the

collateral

securing

loans

became

66% of National Income, in 1929
rising higher during the depres¬
sion

ever-widening

and

enor¬

scale. This resulted in

neces¬

sitous

esti¬

r^ther complicated coriipuH

March,

1946. The Federal Re-' i
Board indicates
(expressedf "

serve

percentages with 1935-39 asM
100) that physical volume of in—
dustrial production is 60 %
higher 1
than in the last
peace year,

1939,*

while

factory

creased

the

mous

and

unit of production rose 37%* j
over 100%
from 1940 to ApriL !
1945 arid from there to 164% in
|

ever,

endangered,
thus
financial embarrassment

1945

tation indicates that the
wage cost

increasingly
an

per

causing
on

70%

mated will be 72% in 1946.

this must be adjusted with1

rise

and

payrolls have in-'
140%. (How-^

than

prices, cost of living

relation

these

to the

two

laborer's wage.)

selling from all over the
The
This governmental support,
solution
can
come; only
country/that must have originated from a
,,
Notwithstanding this, apparent promised for several years (pro¬
realization by the' party
Net working capital of the In¬ from
speculators who had pledged
over-supply of new issues, The vided war .is not declared offi¬
coming
into
control
of ' -both
dustrial
Corporations
in
the their
Pacific Telephone &
Telegraph, cially over in 1946) is fixed at a
stockjpvith banks which be¬ Houses that labor policies must be
United States as of December 31
ital.

Com¬

H: J. Heinz and Scovill Mfg.

pany
underwritings, since
tember financing, has been

suc¬

Cincinnati Gas &

cessful and the
;

selling over the
offering price. The success of the
American Telegraph & Telephone
financing of $350,000,000 convert¬
ible debentures at a rate of 2%%
Electric is

level

90%

parity* (cost of

Sep¬ living) except for cotton which is

now

(one of the largest pieces of under¬
writing) is assured.
As for call
loans to brokers, between Dec. 3,
1945 and Sept. 30, 1946 they de¬
clined from $1,074 million to $408

92.5%.
Advance of commodities
does not match the percentage
which occurred during

increase

further,

after World War I;

and
we

now

have

politically
Therefore,

should

deflation

any

less

severe

bloc.

farm

strong

much

60 % dollar and

than

1919-21.

conclu¬

the

The facts warrant

tight

(aggravated by 100% margin) in
a sense, different than heretofore,
where high interest rates, scarcity
of funds and large security loans
affected the absorption of securi¬
ties. Nevertheless the quick re¬
covery

and

the

of sound underwritings
liquidation of substanti¬

ally all securities not properly
margined, it would appear* has
removed the ? question of: "undi¬
gested securities" as a factor in
the present appraisal and gives
proof of the ample availability of
investment funds.
\

• *

■)

/iY

Inventories^and Industrial
,

Products

Inventories

even

today

$18

billion for manufacturing and $12
billion for
of

view

trade

the

are

not high in

advancing

price

goods and the amount of unfin¬
ished goods awaiting the comple¬
tion of other products and the ris¬

ing dollar amount of sales in pro¬
portion to inventory. There is
nothing alarming in that situation,
at least the Cleveland Trust Com¬

"Bulletin"

$24.6 billion in 1939 and rose

$52.1 billion in 1945.
The 82
Class-I Railroad System as of De¬

had

■

1946

from

1939

the

average,

ture; in 1929 it entailed the razing

whereas the rise from 1914 to the

Margins, Overspeculation
and Thin Markets

1920

high was 146%.
The vul¬
nerability to decline is today very
different.
From 1919-21 copper
declined from about 220 to under

'.r;

...

The
and

•/;;/

;

avalanche

)$.&.■ /'"A

;;;y.

necessitous

selling gave all the
a panic limited to a
comparatively short period. The,
urgent

evidences of

120 and stayed down. Despite the
present much higher general price
stock market as now constituted
level, copper has .been 14%0,
is a "New Deal" market in that
which is actually below the world
a number of "hand-made"
rules
with a tariff to pre¬
price of 17
and
regimentations
covering
vent the impact of any later de¬
cline in the world price.
Besse¬ traders, specialists, short-sellers
arid the abolition of all margins Or
mer pig iron dropped from $43 in
credits has brought about a sharp
1920 to $20 in 1921. Lead dropped
contraction
in
the
number
of
57% in 11 months in this earlier
possible purchasers, particularly
period, but today constitutes one
in a declining market. This cre¬
of our greatest shortages.
Crude
ates a situation without parallel';
oil declined nearly 6Q%, but to¬
The discrimination against ex*
day it trends upwards.
In the
earlier
period many businesses tending credit to purchasers of
were

hard hit when raw materials

stocks is

vicious and short-sided

restriction against industrial ex¬
deflated, as so many were
by the much
desired
loaded up with high cost inven¬ pansion
tories often bought for specula¬ medium of risk capital, which en¬
tails no burden in depressions and
tion.. The only costs seriously in¬
give corresponding re¬
flated today, other than for farm should
wards in prosperity.
Companies
products, are wage costs and these
with no debt can never go bank¬
are
not readily reducible.
The
rupt. This is of primary conse¬
flood of
over-priced redundant
commodities
and
manufactured quence to labor.
were

War

■

ance

promising

Fire

companies

$1,000,000,000

Casualty
to

invest

common

cause

Insur¬
over

stocks

% of 1%

grade

yield

over

Today, high

rails.

industrial

an average

yield 5% to 6%

stocks

common

of 4V2% and rails
as

against bonds

fair to

2%% yield. Common stocks

assume

that, in the main,

liquidation of investment holdings

must

that

also

enormous

started on
threshold of expansion such as is
now
under-way in the durable
goods industry. Certainly at pres¬

reversed.

Class

privileges of the'

wage earner and unions shall be
removed and the

rights of the em- '
restored. The right and
liberty to bargain shall be given

ployers

back and the right to create havoc'
in a free 'nation shall be
abridged J

The

responsibility of the "union ♦

and the wage earner shall be fixed
and maintained as is that of the

investment

quality
as

in¬

vestment oportunities are thus at¬

and

wealthy refugees from

war-

stricken

Europe had, since

piled

extensive profits in rail¬

road

bonds,

utilities,

and

1939,

since

the

Republican

Party

evidences*

over-due reaction to the right
and a protest against the " futile'
an

and confused policies andr man¬
agement of the New Deal,/ This

does not
of

to be the verdict

seem

privileged class, but rather a
sweeping conviction from af large
majority of all levels that social¬
a

istic

and

communistic

theories

shall no longer be the order of
there appears mo abatement the
day. Candidates representing
in the demand for all forms of
such theories have been uniform¬
finished goods—ofu the contrary,
ly defeated. The country has given
in certain fields the durable goods
a mandate that should be tinter-*
ent

unsatisfied demand is piling up.
The claim is made by the fore¬

preted against policies that-foster.
privilege in any form, beauracracy and regimentation. It is pos¬
that certain imblances exist be¬
sible that we shall see a veritable
tween important economic factors.
'revolution in our governmental
It is the writer's conclusion that
policies—a reversal of leftisft-cpncasters

coming

depression

these imbalances do not flow from

the forces already discussed.

What
they, has their influence al¬
ready been spent, or are they still
before us beyond correction and
are:

thus

New

Deal

upon

onerous?

economy

This

visitation

their

make

our

eepts after fourteen years of ex¬
perimentation to achieve an even:
economy which* became prosper-?
ous only in,:M great war, ' It .is
logical/that we, should have such,;
a
reversal—England had it (to¬
wards the left, we to the right. It
has

Labor

direct product of the
which makes labor a

privileged class, and gives it the
profitable function of a free econ¬
omy, while it seeks to make, the
underprivileged class, viz. — pro¬
ducers—a profitless function of a
regimented economy, for political
purposes founded on the favor of
60,000,000
votes,
a
controlling
power in the United States.
The rise in the standard of liv¬

ing -was possible only by the suc¬
cess of the capitalistic class who

been

line

precedent that

with

historical

should be con¬
servative when England is radical
and vice versa. That a great con¬
structive political event offering
extensive oportunities lot eco¬
nomic betterment is at hapd. can
hardly be questioned.
,

10.

1 f*1' >•' «-r./ 'e,'.

*»/

•

' V.

Choice Between Full Produc¬
tion and Depression,

Accordingly,
between

have the choice

abundant

prosperous

production and—a depression that
may test, eventually, the capital¬
istic

form

Government.

our

provided work by
production, The consequences of a great war
with profit.
The machinery per have generated inflationaryand
employee. from these operations basic forces too huge and power¬
gave the laborer the ability to ful to be abated—they are still
produce more per man-hour. The with us and must stay with us
hordes of China and India starve

through hand-labor and will con¬
tinue to starve until capital will

provide them with machm^
to
"capitalize" their labor.
Labor took over 79% of the 1945
national income, while corporate
net

4.6% and stock¬
2.88%.
The follow¬

income

holders

was

ing indicates the break up of the
income as set forth in
billions.
"Compensation to em¬
national

comprises

ployees"

wages

and

salaries and substantially is made
up

awaiting ample production* This
spells/ prosperity not depression^
for only the former can support
our

tremendous commitments un-*

less

drastically

reduce

our,

debt—and from where will we get
such billions? Our present

budget

(of which almost half are mili¬

tary/commitments)- is just /about
what

our

whole national

in 1932.

was

/ v

income^
V
^

Four hundred billion dollars ex¬
tracted

from

our

necessarily be

economy

now

absorbed

must
on a

of labor's share of the national higher priced scale of production

income:

•'

•.

and

Total

Compen-

Divs. to Net Inc.

sation to

speculators

major, or
the very

has

minor,

remembered

adventuresome

debt structure of

$8 billion; in 1937 it called
for reduction of swollen invent
tories.
Nothing as flagrant as
these three factors is now in sight

Stock-

of Corpo- National

holders

rations ; Income
$8.1
$83.3
3.9
71.5
4.0' }
70.8,;

Employees
1929

$55.1

1937

during the first half of 1946^ It is

high

sessions.

some

sufficiently

cor¬

leading

mately from $11 billion to $8 bil¬ : Much, has been said about bear
lion and fixed annual ,C charges markets but it should at the out¬ employer. The union and' wage
earners- shall have to becomfe/eon-?
from $700 million to $475 million.
set be stated that bear markets scious
of the fundamental' part-*
These figures do not indicate in¬ mean
"liquidating" markets.
In
creasing debts burdehs or dearth 1919 the liquidation at a time of nership between capital andlabor*
of ample working capital, as bear¬ high
money /sates involved. the
9. Politics and Government
,?*
ing fundamentally on this decline. inflated commodity price, struc¬
The overwhelming victory oL

states. The in¬ products

physical value-of industrial
production according to that "Bul¬

dex of

Therefore, while

rection was"m order, nevertheless,
the severity and depth of the de¬

$571 million net cline could;:have been caused
by
working capital in 1939 and $2,- these factoj^asxuriierated, and not
126 million in 1945. Reduction in !
by underlying-factors that have
fixed long term indebtedness of still to
becorqe disclosed.
all class I railroads over thO last
7. Bear Markets and "Imbalances"
seven
years
has been approxi¬
31

cember

In November, 1937, margin re¬
• of
the postwar World
period does not seem to quirements were reduced to 40%,
presage a depression or be the hut on Feb; 5,1945 they were back
letin" states that preliminary esti¬ cause of the
present phase of to 50 %; on July 6,1945 they were
mates indicate that the index of equity devaluation.
raised to. 75%, and on Jan. 21,
industrial production has been ad¬
1946 they were abolished.
This
5. Money, Interest Bates and
vancing every month since May to
rise from 50% to 75% "margin"
Working Capital
20% over the figure of that date.
was
an
unnecessary and unrea¬
It should be noted that 1.80 is the
Twenty-eight non-cdllable high sonable abrise of discretion ; cer¬
latest count of manufacturers in¬ grade preferred stocks with no tainly the astute statistician
of
ventory to shipment vs. 2.31 be¬ prior debt, the average yield has the Federal Reserve Board could
fore the war. Retail sales now run risen from 3.57% at the year's not have figured that a rise from
at
0.97
vs.
1.52
in
1939.: The high to 3.93% orv recent quotations 50 % to 75% was a 50% increase
shadow of 1919-20 depression does —only a 10% rise and still about in 'margins,
when
it
actually
not here threaten, for the tardi¬ 33% over the yield of high grade raised margins at one
step from
ness generally
of filling demand bonds, while a list of 67 excellent 100% to 300%!
by production is real, at least in utility and industrial
dividend
General
Electric
declined
the more important lines of in¬ paying
stocks have risen from 15.9% with a
depreciation of 209
dustry, and inventories are not ex¬ 3.76%, at their high of this year
million in market appfaisal' of;th6
cessive in view of this situation. from dividends declared or paid
entire issue in 0.8% of that en¬
during the past 12 months, to tire issue which
changed owner¬
3. Important Liquidation
5.29%, at recent prices—a rise of
ship. Similarly U. S. Steel de¬
This decline was unexpected by 40%. On a higher grade of stocks
clined 21% with a depreciation of
the people who held large amounts the present yields average 4.6%,
162 million in market appraisal of
of securities, which is indicated by a 25-331/3% rise.
the entire issue in 3.2% of the
the reports of the closed end in¬
The gaps between bonds and entire issue which changed own¬
vestment
trusts
which indicate
equities in former periods of high ership.-Geneml Motors declined
that most of them had less than
prices were as follows:
y
>
18.6% with a depreciation in mar¬
10% cash in the second and third
In
1929
industrial ; common ket appraisal of the entire issue
quarter of this year. As a matter stocks
of 529 million in 0.8% of the en¬
yielded less than 3%% and
of fact, large interests do not and
bonds of investment quality 4%%. tire issue which changed owner¬
could not liquidate large amounts
In 1937 the spread of bonds of in¬ ship,, These are outstanding evi¬
of securities in such a market. The vestment
quality over industrial dences confirming the existence of.
American business outlook was common stocks was 44 of 1% and the exceedingly thin markets,' in

pany

lateral.

Except for farm products, the
price picture today shows little
comparison with. 1919-21.
Nonmillion, against the $8 billion to agricultural
commodities
had
1929 and $3 billion in 1937.
risen only about 45% by August,
sion that money did become

disturbed and sold the col¬

came

was

48.3

1939

1945—

48.1

114.5

$5.9

•

4.8
3.8

/;5/. 4.6

The percentage

7.4

16.0

living. How can we support
$40 billion budget on an $80

billion pre-war national income?
Labor alone takes 70%. Inflation¬
ary processes are

great

a war

of labor will be

operate and
and

mainfain production,

prosperity
level and high
•

normal after so

and if they could not
on

high

prico-

national income,

; Volume

THE COMMERCIAL & FINANCIAL .CHRONICLE

Number 4542

164

2503

the country could

bonds and

Nations does, after all,

vent. In fact,

than

everybody: it is not something
separate and aloof from either
human
beings
or,
governments

common stocks is larger preserving
pf peace act by the
justified in favor of the adoption of wise policies, so as to
latter, and thus offers attractive turn the energies and ingenuities
cess
has
3. The
demand
and * need for present yields for the long term of scientists and engineers from
power,'reduced our debt by 40%,
in high grade common stocks. weapons pf war to the products
i
The1 magnitude of these forces, goods and products of all kinds is
8. The genius of American in¬ of peace? ; In other words, they
and insatiable ^here and
may be confirmed by the Federal huge
dustrial productivity is high and must develop a policy that will
abroad.;
1 -;v ■: ».
\;
- - (Reserve
Board's latest postwar
; ■
makje the need for weapons of war
:economic study iwhichScpmputes : 4. The ability to pay for them unassailable.
flows
from
a
National Income vk 9. Any depression can be caused unnecessary. The magnet of degross i national production ;at &h
annual rate of $185 billion during double the peace time high for all only by the boom of the privileged structiveness must cease to pull
the secopd quarter of 1 §4:6 and time: in 1929, deposits, sayings ancj Classes/ ("made in U.JS.A") the and constructive effort must be
that it would rise by June,.1948 monpy tripling all gehpe time pe¬ laborer and the farmer. The lat- the
universal attraction.
Only
to $2^5 billion.
The Federal Re¬ riods, and employment which is ter's products are too. high be¬ good foreign relations cap make
cause
the
close to the highest": at the highest
Government
is too this
serve, Index of industrial produc¬
our
history. Production generous to them at the expense
tion would rise by mid-1948 to rate in
We are all friends and we must
of those not so favored. Nature's
208 as against 174 for July of this and employment^ the best as¬
arrange our collective defense to
bounty may moderate both. The
year, , which is much higher than surance of continuing demand and
prevent any resurgence of the
laborer is not getting too much if
any prewar index, including 1929, pay ment and in "'its turn again of
spirit of. aggression so that the
he would but give enough and not
which was 110. In 1937 it was 113 production and ^employment.
peoples of the earth can go about
5. Our foreigfTsituation is and ask for more.
and in 1939 it was 100; the aver¬
their daily tasks and sleep in their
10. That
and
is
the score r which beds in
age p| 1935 to 1939 was taken at will ( improve-economically
peace and security.
politically. War is impossible be¬ counts heavily against depressions
100.;. Net profits before income
The British Government strove
taxes' of all corporations in the cause the winner loses. ? Russia unless common sense goes put of
for disarmament before this last
United
States are
estimated at knows that its" bellicosity is only the window and selfishness jand
great war, led by that great labor,
$13.6 "billion for 1946, $14.9 bil¬ home decoration.
political quackery comes in.
leader, Arthur Henderson, and
lion for 1947 and $7.7 billion for
6. America for the first time is
11. The basic fundamentals thus
unilateral
action
nearly
first half of 1948.
Jn 1929, net ushering in It period of "Reac¬ consist of powerful forces all on their
But if it now
profits before taxes was $9.25 bil¬ tionary Liberalism." The country- the constructive side, subject to brought disaster.
can be seemed universally, then
lion; Jn 1937 it was $5.14 billion; cannot survive another sanguinary impairment by human weaknesses
my government will not fall be¬
in 1939 it was $5.27 billion, and
political, economic mess. It has of judgment and mismanagement.
hind in the work of disarmament.
in 1945 it was $20.8 billion, of suffered too much and will riot: We won the war. Can't
we win
Nobody can accuse the present
which $13.38 billion was taxes. stand for political demagoguery
the peace or do we want Mr. De¬
British Government of wishing to
The working capital of all cor-' which seems to get better but al¬
pression? We can have him if we consume the energies of the peo¬
porations more than doubled to ways turns for the worse.
over
$52 billions between 1939
'§! ple in making destructive weapons
7. The gap between yields oh do. j®
when they might be devoting their
and 1945 (see supfa No, 5), •
time and attention to peaceful
PrfCes are figured in terms of
production and raising the standard
dollars,
of life.
If, therefore, I have not
changed in value by our creation
up till now been eloquent on the
of huge amounts of money through
>m page 2473)
j
- /- (Continued fr
subject
of
disarmament,
my
the creation of Government bonds;
arid resisting
aggression silence must not be misconstrued.
In 1940, currency was $7.8 billion, the two great wars for the people, peace
wherever it shows its ugly head.
It is because I wish this time to
or $-30
per person.
Today, cur¬ politicians and statesmen to think

not remain sol¬ dented low rate of ..interest)is
this inflationary pro¬ still larger, than many annual pre¬
already,* in purchasing war budgets.'

belong to

whom responsibility can be

upon

devolved.
The

Britain's Faith ii i United Nations

rency

has increased to $28.4 bil¬

deposits, saving deposits and Gov¬
ernment Saving Bonds.
Money

their
part.
The second stage,
actually depreciated in its which I think we are only just
own right by the reduced cost of
breaking into now,, is the universal
creating it and by the lack of comprehension that'words are not
value received
in exchange, ; as enough, and that personal efforts
well as by reason of the scarcity and vigil by the citizens are as
of goods,
i . 1
' ! * W c, i if % necessary in foreign affairs as is
To ♦ what extent and at what home questions.
I am encouraged
has

this new awak¬
ments may interfere, it is difficult ening is taking-place, as well as
to predict.
the acceptartcgb^
The violent and sud¬
den readjustment of almost 50 of personaLrespoTrsibility and 'efpoints may have gone far in dis¬ fort on his part to ensure thrit
counting such variables.
Today,- international obligations are ful¬
at least, it may be said there is filled. '
up overweaning optimism in the
It I is impossible to exaggerate
minor

point/

corrective

investor or speculator.

by the belief that

move¬

Discussion

of the

economic imbalances.
'

Outside of the exports

and bal¬

herein mentioned

the Ex-

ances

port-fmport Bank: ghd ther World
Bank
and
the Monetary Fund
were
created.
The former took
over in part the Lehd^Lease ar¬

rangements "when they were dis¬
All

continued.

make

it should

all,

ithe financing of extensive

tradingv between xts .rnuph, easier.
Further, ■ the influence of the
^ilive
world abroad on our present econ¬
omy

for nqany
year,
than

less

universal. Economic malad¬

and

defective
social
conditions have often Jed to mis¬
understandings /and war, and I
therefore view this development

A $10; billiop rate of

always

of purpose

running at a rate of better

gpld and some ;$12 billion in
balances held abroad to say noth¬
ing of $10 billion of unused Amer¬
of

fact be effective
trouble.

the event of

create

hope in the
peoples' hearts and then fail them
at

critical

moment

creates

state of despair.

In considering the development
the United Nations organiza¬

tion,

we of course have to take
into account the things that influ¬
ence countries:
religion, language,

climate, political ideology, and, by
least important, the cur¬
riculum taught to every scholar.
All these separate factors mould
no means

arid a good deal pf mis¬
In matters affecting directly the
perity -as iirthus-^alhtaihs-f-^ady;' understanding among the peace- daily life of the individual, such
market for surplus1 products1 and loving nations.
as food,
health, education, labop the minds of the particular na¬
The secorid world war yrould, I conditions, the spread pf informa-, tions, and I mention them to make
prevents pver-produttion.;
*
believe, have been averted had tion by the' press and radio, the it clear that if we should imagine
;
Conclusions

export has

meant pros¬

;

■

; -v.

not this second factor pf

1: The huge plethora of .money
(three times over any previous
period) is frozen in our economy
for many years, only a stringent
deflationary policy of debt pay¬
ment' can reverse it; certainly the
maintenance

our

low

ers

Nations is

The; object. of this attack was to
make

interest'

Therefore

that
the
be

the

causes

the failure

that

each

must not

the

United

the patient effort of experts from
lands combining their ideals
with their experience will be re¬

many

flected in time in countless homes.
It

nationalism plays such a tremen¬
dous part.

Every government and

state feels bound to take adequate

precautions
threat from

prevail again and
us

must

take

our

preserving

goods.

the United Nations.

tity such as

achievement

One

that is

success

another

after

builds up

a new

faith.
I sometimes

ponder and let my
man's
great

consider

rriind

achievements

over

the

forces

Think what he has done.

nature.
He

has lassoed the stars, bridged
mighty ocean, plumbed the
depths, annihilated space, discov¬
the

ered almost all the secrets of

na¬

ture, turning them to account for

good or ill. This mind of man,
possessing
such
a
conquering
power over the forces of nature—
that same mind ought to be able
to organize, distribute and con¬
trol the forces that have bound us
so

they

turned to the tasks of

are

and
construction
rather
than to the inhuman brutality of
peace

war.

Oxford Radio Stock

Offering Next Week

against the possible
neighbor state.

some

The question of armaments really
amounts
to this: can
statesmen

loud

speakers

acoustical
Oxford

the charged

with

the

making

and

associated

and

equipment since

has

established

1933.
envi¬

able reputation

as scientific man¬
products 4 of out¬
standing quality; The Co-party's

ufacturers

present backlog is over $2,500,000
and -the management has practi¬
cally completed its- program, of
additional tooling and the instal¬
lation-of

additional

and equipment

machinery
which will be ade¬

quate to iricrease prodrictionlqv^
els fo $300,000 per month.
Additional plans for expansion

beyond this volume of production
are

being formulated by the

man¬

take care of the con¬
stantly increasing demands being
made upon the company for their
agement to

products.
1
The company has over 80 cus¬
tomers in the radio, intercom*
munication,. sound recording and
.

reproducing
the

industries.

Sales

largest customers

for the

five-month period ending Aug. 31,

1946, constituted 61% of the

pany's total sales.
Among
company's nationally-known
tomers

are

com¬

the
cus¬

Radio Corp. of Amer¬

federation
the work

federation

moment.

was

not

The

ex¬

ample of what the United States
of

and in

patience and

particular, I believe,
us the qualities of

right approach and

quire tools, dies and fixtures to¬

gether

perseverance.

We must try to create a state of

affairs,

begun to merchandise a complete
line of replacement loud speakers
to
the jobbing trade for radio
service shops.
The
company
expects to ac¬

un¬

for

the

Iasts

instant

will * be
respected and
venerated like the constitution of
an

individual country. The United

inventories
engaging

(under patent' license)

derstanding,
Nations

certain

purpose

the manufacture and sales of bal-

the

so that in a few years
constitution
of
the United

with

lighting

for

fluorescent

lamps for which there is an eiior-?
unfilled and rapidly in¬

mous

proper

the

deliver

can

it should teach

League of Nations
allowed

matters

producing results, and

of the most wel¬

one

ica (RCA), Stewart-Warner.Corp.,
build in a moment Zenith Radio Corp., Sylvania Elec-»
this organization we
will only trie Products, Inc., Sonora Radio
spread impatience and disappoint¬ & Television Corp., and Dicta¬
ment.
The progress of the orig¬ phone Corp. v v ': v
;
inal 13 American states from con¬
The
corporation has recently
that

has -accomplished is a lesson to all

signs is the human con¬
sciousness throughout the world

nent

destruction—

culties arise and perplex mankind.
It is in this field that dominant

come

suoply of money.'
<2. A forty cent dollar is a perma¬

and

these

war

the

all

is, however, in the realm of
security that doubts and diffi¬

to show that this

intention,

demand

ready ..further conquests at
stage.
All "the evidence

later

goes

rate'is/or should he the
stick- determining

.part j of our present eco¬
nomic structure and is necessary
to i lessen
the burden of what
©thewise
would have been
an
overwhelming debt burden which
in service charges (at an unpre-

could attack Poland and
without a major war.

her

defeat

measurement

the relationship between

the peace-lpvirig powencouraged the Nazis to think

that they

confirms the present policy.

Such L

restoration

ness among

rate

feeble--

My experience is
public demands

This applies particularly to an en¬

justments

The causes of war are

Our exports this

$10 billion and imports at
than $5 billion, leaving' an

predit.

great instruments.

from

the

■

various,
and I will not go into them all now.
but I think there will be agree¬
the United Nations
of
the
ment among all of us that this in
last great war arose from an ag¬ League's
social
and
economic
gressive intent to'. expand and functions and the continued work
finally dominate tho worjd on the of the International Labor Qffice
part of the Nazis/superior as one of the most encouraging
race, and this wass coupled; tm- things that have emerged from
fortunately, With
lack pf uhity the war.

years.

export surplus of $5.5 billion. TJie
outer world ha$ $17 to $18 billion

ican

the possibility of good

people.

what

in these

is different than it has been

the

that

——

The great thing, however, is to ples
and governments for this
importance and responsibility
press and radip in giving be clear as to the objective. Ope security.
the people the truth, the whole cannot forget that on the social
The United Nations, if it is to
truth and nothing but the truth and j economic levels* great prog¬ accomplish its purpose, must in
on these issues of war and peace. ress; was made by the League of
fact be able to protect from ag¬
Attempts at sensationalism; and Nations. Fruitful activities, such gression and war every person in
tendenciousness in connection with as the world health service, sys¬ every state more effectively than
of
drug
controls,
careful he can be protected by the gov¬
foreign affairs do untold harm. tem
Statesmen bear a heavy load of study of the causes of economic ernment of the country to which
responsibility, but they would be depression and a far-reaching he belongs. If the. United Na¬
the last to underestimate all that systpm to improve! cpnditions of tions is eventually to supersede
the press and radio can do to labor were created by the League
the separate states in giving se¬
make or mar their actions.
On
These have been taken oyer by curity, it must establish confi¬
the other hand, they are fully the United Nations
and made dence—a confidence that will in

the approaching de¬
pression which will correct our

must

see a

the

is ripe over

Nations

doth the faith and the instrument

Floyd D. Cerf Co., Inc., Chicago,
practical arid useful scheme expepts to publicly offer on Noy.
worked out.
Disarmament, like 20 an issue of 60,000 shares, of
democracy; is a word that fires Oxford Radio Corp. common stock
the imagination and provokes enr
(par $1). The price to the public
thusiasm.
But we must, be sure, will be
$5 per share.
2. The principle of trusteeship for
in using it, that we are doing
Oxford Radio Corp. is one of
certain nonself-goveraing ter¬
more
than merely using words
the largest manufacturers of loud
ritories;
and that in proposing disarma¬
speakers in this country.
This
3. Specialized
agencies to deal ment we are also putting forward
company is engaged in the manu¬
with the vast social, economic, something constructive to main¬
facture of many types and sizes
humanitarian and cultural tain order and security among
the of quality loud speakers for ra¬
problems which are the con¬ nations.
dios, intercommunicating and pub¬
cern of all countries and affect
In this case"we pre, of course, lic
address systems, and sound
every human being.
immediately up against the ques¬ reproducing equipment. The com¬
But it will need time to create tion of sovereignty. Governments
pany does riot manufacture ra¬
the right atmosphere of confi¬ feel that they can/take no risks
dios.
dence so thaf the different politi¬ with the
security of their citizens?
On April % 1946, Oxford Radio
cal Conceptions which exist in the The key is whether a great or¬
Corp. purchased the Oxford-Tarwor)d today can work together ganization such as the, United
tak Radio business; manufacturers
in hprmony.
Nations can be relied on by peo¬

The United Nations is being de¬
they had only to say they did not
want war and they wanted peaces veloped in three spheres:
for peaceTtO prevail without any
1. Combination for political and
effort or assertive watchfulness on
security purposes;

lion, or $200 per person. This runs
through in startling amounts iri

United

creasing demand.

THE COMMERCIAL & FINANCIAL CHRONICLE

2504

Thursday, November 14, 1946

international

World Trade and America's Future
(Continued from page 2465)
machinery
of
production,
which mean work for the idle,
and

food

and

desti¬

the

clothing for

tute, and hope for the despairing.
It is true that we have deficien¬
cies here at home, and some

know that

for Amer-^
fail to meet this challenge.

there is no valid reason

ica to

Production!

Production, and More

and

production,

Production,

production is the imperative
present, and who is better
equipped to produce than we? If
it is a matter of productive ca¬
more

of the

pacity,

have it—as much as

rest

the

combined;

the world

the requirement is capital—we
have that too—the accumulated
if

product of generations of hard¬
working, thrifty inventors, build¬
ers and traders;
if it's industrial
"know-how"—the world concedes
our

preeminence; if it's a question
material resources—no na¬

raw

richly endowed.

tion has been so

question of able and
willing hands? The skill and pro¬
ductivity of the American work¬
man cannot be equaled. AH these
elements of production: resources,
Can it be a

productive capacity, capital, labor
supply and industrial "know-how"
combined to achieve, in war time,
a
productive record never ap¬
proached in the history of man;
and there is nothing now to hold

back but

our own

well

which

produce

goods

consumed by others, we

are

should make every effort to cor¬

increasing our imports
useful goods and services.

rect it by
of

would

deny aid to others until our own
needs are fully supplied; but as
we meet here today as Americans
and foreign traders, we

must pay

ation will mean that we

for,

stubbornness

ers

industrialists

and

who

have

in line with the world's need

and

-capacity to fill it. ,Our gov¬
ernment, : under the Reciprocal
Trade Agreements Act, has helped
to
stimulate
imports
through
our

tariff reductions, and it has pro¬
posed an International Trade Or¬
ganization whose members would
join in a united effort to eliminate
the 1 handicaps
to world trade
which have caused so much eco¬

nomic and

political; unrest..

Our

Department has recently
made public the draft of a sug¬
gested charter for this Interna¬
State

Organization, which

tional Trade

has been submitted to the. 18 na¬
tions

represented at

Trade

Surplus

tion

our

progressive reduction of
barriers, however desirable,
slow process and will not cure
export surplus. The elimina¬
of

all

tariffs

our

tomorrow

and, for too long, have refused to

would not

into balance. The devising

By coordinated effort and
sacrifice, labor, manage¬

ment and

government, under the
compulsion of war, pulled our
productive machine to the top of
the hill. Now, with a broad, level
plateau of prosperity before us,
we no
longer work together but
tug and haul away at cross pur¬
machine slides
into reverse.
This unhappy state
of affairs, gentlemen, is the antith¬
poses,

esis

while

our

American

our

tradition.

bring

project worthy of the best efforts
of our statesmen, our business¬
men and, most of all, our foreign
traders. There; is no merit or com¬
sense

should

chases,

the old idea

restrict

aggressively

and

our

American

i.<

So great is the

vitality of

our

private enterprise economy that,
in spite of bickerings, slow-downs,
stoppages, controls and restric¬

tions, our exports this year, in¬
cluding UNRRA and Lend-Lease,
may total $10 billions. This would
break all. peacetime records and,
if our production snarls are un¬
raveled, we should do better in
1947 and 1948. f Exports of this

magnitude, with imports only half
as

large, obviously

pose a

serious

payment problem. Including what
we
are
giving away, we appear
to

headed

for

excess

ogize to
While

highly patriotic

need to apol¬

no one.

The

cynical

American

through

our

imports

are

limited by

founded

ists have

values

and

requiring the utmost discre¬
tion in its application. Since con¬
tinuance. of this unbalanced situ¬
gap

the

principles of
The proposed

charter for

International Trade

Organization is

idealistic doc¬

ument and, tp that extent,
the ,; American
tradition.

is in
This

charter,: the official plan of

our

government for the achievement
of international
cooperation in
the

economic

field,

embodies

code of international trade prin¬

ciples

which

merit

careful

our

study.; Many of these principles,
long recognized by American for¬
eign traders, were set forth in
fashion

cogent

the

idealistic,

but

entirely practical, final decla¬
ration: Of" last year's convention.
The

movement

Yet,

lends

the

interna¬

investment

loans

bolster

systems

their

closed

to futher

economic

narrow

policies which would
destroy the value of our foreign
investments and contract

zation would make recommenda¬

eign trade.

tions for international agreements

Fellow

the

tionals

treatment

foreign

na¬

and enterprises.

however,

There is,
need for an

urgent

international

code

ethics

and

fair

na¬

tionalistic

capital, apart from the statement
that the proposed Trade Organi¬

nations

deliberately misunderstand
motives, or would employ them

Americans

traders:

have

33rd National

vention

our

for¬
1

from

great land of

and

foreign
to

come ;

this

Foreign Trade Con¬
all

sections

of this

because

ours

practice, clearly defining the
rights and obligations of investors

believe in its future.

and recipients and

we are

that

tection

both.

nessmen

affording

American

pro¬

busi¬

are

interested

foreign

trade
We

and

believe

a free and unobstructed flow
of goods and capital
among na¬
tions is necessary to the realiza¬

tion

of the

American

ideal of

expanding world economy lead¬
ing to a peaceful and prosperous

World. This is America's vision,
gentlemen, and only America can
supply the physical and moral
leadership to make it a reality;
but there must be a new
unity ol
purpose inspiring labor, manage¬
ment

and

hesive
the

government

effort

toward

internal

co¬

removal

impediments

our

own

recovery.
This domestic problem concerns
each of us, as Aunerican citizens;

in¬

but

not

foreign trade we have a respon¬
sibility which is peculiarly our

are

lacking in enterprise and, in times
past, have invested billions of
American dollars abroad, in some
cases to their subsequent regret.
The controls, restrictions and dis¬

;in the specialized field of
For

own.

vention

many years

has

served

foreign traders
discussion
a

this

con¬

American

forum for the

as a

their

problems, as
crucible of foreign trade opinion

and

sounding board for the

investments have not

entirely de¬
stroyed their enterprise and ideal¬

enunciation of the principles and
policies in- which, we believe*.

ism; but their idealism now is of
the practical, down-to-earth va¬
riety. The businessman can stay
in business only by making prof¬
its; and he feels that the govern¬
ment, no less than himself, can

Never

ill afford to liivest billions abroad
without

ing

some assurance

of obtain¬

ultimate return in a form
which is recognizable to the aver¬
an

American citizen—the man
who pays the bills. America has
a big hearts—much bigger than its
pocketbook. We Americans are
willing to shoulder our share, and
more,
of the gigantic task in¬
age

volved

the

world's

reconstruction.

are

economic

proud of

Iree, private enterprise

our

sys¬

tem that has made so great a con¬

was
there a greater need
for national unity in support of

intelligent, purposive and co¬
foreign trade policy/ I
that out of our meetings,

herent

hope

discussion

and

working
evolve a
unified foreign trade policy which
can
be crystalized in the final
groups

committees

there

will

resolutions of this convention to
meet this real need.

ment

Such

state¬

foreign trade policy by
the voice of American
foreign
trade
will
be
a
major
con¬
tribution to that informed public
opinion which is jthe. fountainhead

of all liberty and freedom
the

and

lifestream

ishes this great

which

nour¬

Democracy.

charter calls for the multi¬

trols

and

surplus of the type

the

international

Quick
pfisit to Europe?

Planning

cartels;

establishment of

In¬

and

all

need,

we are

commerce, in the form of
machines,
American
techniques and American dollars.

American

This unprecedented outpouring of
our
our

wealth is tangible evidence of
faith in the integrity of our

friends and of
for

our

prosperous

heartbeat of the

and

enrich
a

from

the

recipients, mak¬

our

sustained

lives.

The

period of

V» >

effectiveness

own

maintaining a high
standard of living for all our peo¬
ple, if we are to make effective
use
of the surplus materials and
products of other lands, the only
coin in which they can settle their
accounts with us.
■*

Never in modern times has the
ol

f- J.-"1■

lem facing American
ers

major prob¬
foreign trad¬

in this transition period is the

and

way

.to furnish these dollars is

said

that

peopx.

supply
markets

our

dollars

the

best

the

world's

will be equal to the de¬
Our
professional
econ¬

politicians,

foreign

concerned
and

as well as
have been
this
problem,

traders,

about

have suggested

increase in
investments

our

substantial

foreign loans and
reruetuy

tiiis

uuxia.

deficiency and help restore
duction and trade

world.

Tens

pro¬

throughout the
billions

taxpayers' dollars have

(Continued from page 2462)
fact

that the

volume of

such

immigrant transportation demand
definitely makes more difficult
travel abroad by American busi¬
nessmen.

shipping strikes
and the TWA pilots' strike have
caused hardship to thousands of
The American

would-be
fact

that,,

the

gone into

foreign loans and credits, and into

When

air

pass en g ers

are

stranded in Ireland, there is no
place to sleep at Rineanna, not
a cot to lie on. Some of the
airlines allow their stranded and
even

standby passengers to sit in the
waiting room day and
night. So one sees, and hears,
weary'travellers sleeping in the
Rineanna

actual travellers. The

armchairs

TWA / planes

quate settees, while all the lights

were

burden

overworked

and
are

sometimes
on

the

and

the

while

four

radio
the

inade¬

well

oi
.departing
through passengers troop by for
been gradually transporting the. their routine feedings,
stranded
TWA
passengers.
An
It may be that in theory air
illustration of the extremes to travel is for the impatient, but ac¬
which the exigencies of air travel tually it would be more accurate
in this disturbed postwar period
to say that today it is for the
can
reduce the traveller is
the patient. The four TWA passengers
case of four TWA travellers whom
mentioned
had
been
in
above
the writer met in Ireland at the Ireland three
weeks, thanks to
Rineanna Airport on the Shannon
the pilots' strike.
Some of their
an

matter of supplying dollars to a
world eager for American goods;

have

grounded by the strike has thrown

Foreign Investments
I have said that the

it may be years before the normal

economic house in

desimy

pros¬

and

economic

the

:4-. 'Y'/

by increasing our imports of use¬
ful goods and services.
However,

reemphasize
primary importance of put¬
our

S.jj/'-.i.* »" V-jYVY-;t- V'*1/ li

fact

the

are

document.

peaceful

trade and
commerce, of goods and
services to benefit our
economy

that

significant
omissions of a practical nature
which, to businessmen and experi¬
enced
foreign
traders,
detract

enduring hope

ing possible a new and richer flow
to us through the arteries of world

and

there, but there

1':.,-t '

world; but it will be justified
only as it is effective in- reviving
and
quickening
the
industrial

order

and

ideas

pumping
great quantities of capital into
the streams of foreign industry

of goods we

their limited

emergency stop¬

fear

Organization in
which all nations may join to dis¬
cuss and negotiate their foreign
trade problems.
The idealism is

ting

tional

ternational Trade

maining gap will be filled either
by denuding our customers of

obvious limitations

honored

so long as they are
with a practical sense

omists and

first has

not

elementary justice.

be remiss if I did not

the second is

was

ideals,

combined

ist

foreign exchange or by providing
them, through loans or gifts, with
additional purchasing power. The

most

our

We need

mand.

of gold and

our

America

is.

been

expanding world economy
has become a truism, but I would

resources

drafted

visionary idealists criminations which have ham¬
and, through all our history, ideal¬ pered and destroyed many of their

to produce a

re¬

charter

and

perity in this country is essential

The

regard

plan for world peace
world cooperation and
as an idealistic vision

or $5
billions per
offset to only a minor extent
by expenditures abroad for tour¬

services.

the

encouragement

not; approve

right confiscation. American

world trade
—and

our

dustrialists and investors

Vlsioh

may

the inability of foreign suppliers

exports of $4

other

our

we can¬

which

greater part of this burden.

An Idealistic

preserva¬

must

'Therefore,

being urged, on all
sides, to increase their foreign in¬
vestments, and to assist backward
our
farmers, industrial" leaders, nations to achieve higher stand¬
factory workers and traders work¬ ards of living through industrial¬
ing under a free,
competitive ization ; but they would be untrue
economy.
I know that I speak to their trust if they were to in¬
not only for foreign traders, but vest
blindly in
nonproductive
for all Americans, when I say that projects, or in areas where the
we seek only the opportunity to
international movement of capital
continue to work, to produce, to and earnings is unduly restricted.
share our knowledge and our pro¬
Countries most in need of for¬
duction with others, in exchange eign capital sometimes. afford it
for the ' good things they have to the least assurance of fair treat¬
offer us, that we may all be the ment and production against the
richer for it.
*
hazards of discrimination and out¬
product of the hopeless
subject peoples, but is the

toil of

tions, preferences and discrimina¬
tions, wherever possible, of export
and
import quotas,
embargoes,
export subsidies, exchange con¬

for which

year,

and

The

lateral reduction of trade restric¬

port volume is

instincts

wealth

markets.

one,

our

Our

This task of building up our im¬

heritage—and it is not good for
us.
We must get back on the
right track.
:

that

foreign pur¬
our surpluses

push
in world

but

To think, to

speak, to act—first,
representative of labor, of man¬
agement, of this or that ideology,
and, second, as members of a
great democracy, where each can
achieve in proportion to his abil¬
ity and enterprise, is foreign to

foreign trade
of ways

our

to increase our imports of the raw
materials, foodstuffs and finished
goods which we can obtain to ad¬
vantage from other lands is a

mon

order.

the

tribution possible.

have voiced the opinion that pri¬
vate 'enterprise
should bear
a

fruit of the unremitting labors of

The

admit the evidence of their blun¬

dering.

world

ous

not

and
Trade Barriers and Our Export

tions

mutual

Conference.

trade

commerce

has
leadership
never has a
never

world

strong a moral basis
for the assumption of world lead¬
ership as has our own at this
moment. Though half the world's

leaders.

passed

industry and

heavy; and

nation had

the London

Although, in
my opinion, the proposed charter
has; some weak points, which I
shall refer to later, it is gratify¬
ing to know that our country has
assumed the obligations and re¬
sponsibilities of world leadership
in this
tremendously important

politicians,
ill-considered
legislation, and will not reverse
their
positions; of bureaucrats,
who have imposed stifling restric¬
on

been

nation;

one

burden

the

concede their errors; of

who'have

hands

Imports
wealth
and productive
capacity
happy to note that our
are
ours, we need apologize to
imports this year are currently
no one for the manner of its at¬
running only-slightly below the
tainment.
We come to the post¬
figures for the highest previous
war conference tables with clean
peacetime year, a result which is
hands. We have no spoils of con¬
partly due to the rise in the gen¬
eral price level; but we can—rand quest, and we desire nothing from
"others but their cooperation in
we must—raise our imports much
building a peaceful and prosper¬
higher if our exports are to be
The Question of

—the stubbornness of labor lead¬
made bad decisions, and will not

of the world so rested within the

agencies to provide

additional loans and credits; ."Gov*- tion.
jpf this system
ernment
officials,
many
times, main concern.

extra

competing airlines, among which
the
American
companies
have

other

arriving

and

groups

River,

vxv'•••

airport — now a cross¬
roads of the world, with batches
of travellers from all continents
.That

dropping in out of the sky every
few
minutes ; and
marching in
familiar routine to the alwaysopen

dining

where steak
served around the
room,-

dinnersi are
—
is 16 miles by road from

clock

Limerick. The
of Limerick
are
not ' only
limited but,
by
American standards, fourth rate.
the

nearest

town,

hotel accommodations

fellows

ran

out

money.

This

particular group had been billeted

by the TWA
At 1

a.m.

some

33 miles away.

Nov. 7

they had been

advised by phone that transporta¬
tion had been obtained for them
on

the Air

come

out

France, if they would
the airport at once..

This they did, getting out of bed
and arriving about an hour later,

only to be told that the captain of

th£ French plane in question had
become

impatient and flown off

to America

with four other, pas-

olume 164

Number 4542

; sengers-who
vA

had

been

■

THE COMMERCIAL & FINANCIAL CHRONICLE

they

morning, after

again at the Rineanna air¬
port,
having
been
meanwhile
transferred to a hotel in Limerick.

made 1 out

They

were

■

told

were

this

time

turned

over

the

a very good
chance ,to' get off oa one of four
"planes ■ leaving that ' \ night for
America. While I was at' Rine¬
anna I saw this foursome
disap¬
pointed in three of the four cases.

and

It
Shannon time, and
purser.

did not arrive in Gander until

three hours later.

[ there seemed to be

sunrise,

declaration

the

9:48 a.m.,

was

that

.."

•

How

tain.

But

needless

Trans-Atlantic

.''plated,

travel

air

experience. The air¬
lines do a marvelous job with in¬
sufficient
equipment.
Doubtless

with the strato-liners of the
marvels will

future the
more

near

much

thrilling than even now. But
present conditions, travel

by air
exactly

contemA

the Atlantic is not
the illustrated calen¬

across
as

dars and travel folders describe it.

American Overseas?
Airline plane. •
^ v ,**

•;
"

Airlines

seas

did

all

possible

Espey Mfg. Slock

the

hibit. One

patience

air

B. G, Cantor & Co. are

59,500 shares ($1

Limerick

which

most

travellers

par

offering
value) com¬

The company was

incorporated in
July 9, 1928. The
company- owns all the issued and
New

ex¬

I met in the hotel

man

had

from

"Which he had
that he

come

the

airline

to Rineanna

once

issued

and standby for early departure.
.The

had

man

his

left

.; place
and come to
£ tiotel in Limerick

stopping

stock

there, composing limericks

The

New

York

engaged

for the Espey
Co., Inc.

Cabinet

the
ex¬

Manu¬

£he airport at 7 p.m. and decided
to wait for the plane, the
Flagship

Prankfurt,

then

the

takeoff

the lights were dimmed; so, since
"3 had been up more than 20 hours,
I decided to try at once to sleep
in the reclining seat which has
replaced the Pullman-type berths

of last year.
But

sooner

the air than all the lights in the
cabin were turned on full-and the

informed

passengers

stewardess

and

purser

the
that

American customs forms must be

filled out at
counter at

once.

Ireland

over

were

the

and

LaGuardia

still

customs

Field

was

urgency,, the

that he had to turn in the forms
at Gander next morning.,; To my

suggestion: that I turn in the de¬
claration

Gander, for the

morning,

before.

that I

reason

was

now

extremely tired and would
not; sign any declaration that I
would draw up under those con¬
ditions, his reply was: "You will
fill it out

now.

short while

this

out

was

that

I would

insisted

but

fill

not

im¬

purser

wholly

that

would

not

he said: "If

don't

say,

Co.,

Staff
CALIF.

—

,407 ^Montgomery

who sent it to

Cardinal

torn

because I

Archbishop Spellman:

torn

of the 'Good

out

wrinkled.

it and hang

was

want fto

up.
Would
of that poem,
with your signature on it.
"It goes deep with me.
You

send

you

"Olivia, Minnesota.' :

"Dear

and

frame

mentioned in the letter.

"With their permission, I read it:

Housekeeping Magazine.'

Spell-

me a

copy

there.
You gave com¬
But you didn't forget those

went over

fort.

vt who had given their all. '
"You
cared,
you
wrote

beautiful

poem

Thanks

us.

for

th«t

them—and do

that

and
me is your beauti¬
here is one that ; shall never let
'Our Sleeping Soldiers.'
people, are effective, they will not You might have been standing them down. I shall see that boy,
be indifferent to such appeals.
close to my boy's grave.
He lies yes, all those boys, plunging fpri
in mud up to their hips.
Bqys
We are witnessing here only the there, that boy of mine.
He was
with their eyes on the battle, but
in
opening
performances
of
the young — eighteen — a senior
back
home.
United Nations.
But in December with;? their hearts
Its; future per¬ High School.
formances, its future work, will 1942 he said to me, 'Mom, this is Boys that Mothers' hearts cry out
for long after the battles are over.
depend upon the response of the my fight.
I got to go.
I'm no
that
sleep
under i white
peoples of the world, and not better than the boy from England Boys
crosses.
God love them.*
merely upon the response of their Or China.';
"And God bless you. "You, who
governments.
"His father and I let him enlist.
have done so much for humanity.
The response of the peoples of He wanted to
be a Marine.
He
If I could have that poem I'll he
the world will be influenced not had a crooked
finger caused by an
very grateful.
But if it is impos¬
merely by what is said in the accident.
Time
after
time
he
sible, I thank you again and again
meetings, but much more by how hitch-hiked to Minneapolis trying
for writing it—and for caring.
it is reported and interpreted by to enlist.
;
No, that crooked finger
"Yours truly,
' 1
the press and radio throughout
kept him out.
But they couldn't
the world.
$ "MRS. STANLEY SCHNELLE.
•
keep him out.
He, got into the
"My boy's address was:
: T
That is your responsibility. You Marine Corps.
He later by the
"PfC; Gordon Schnelle,
<■
<
cannot shirk it any more than I same persistent method got to be
"Co. 1, 3rd Bn., 4th Marines,
can shirk my responsibility.
The a Marine Raider.
and

good faith, which unite

"Here before

poem,

ful poem.

people's peace must be guided by
a

Press that is free and alert, but

also responsible.

course,

United

the

Nations

work of
: affected

the
not

changes, have "added Herbert M.
Hauser to their staff.

Butler. With Buckley Bros.
(Special to The Financial, ; Chronicle) :w6';:

LONG BEACH, CALIF,—Virgil
Butler has

been

added to

the

staff of Buckley Brothers, Farm¬

Merchants

ings, but by what happens outside
of

the

meetings.

have

heard

speculation as to the effect of our

natural

that

this

question

But

ported that the recent election in
United States indicated any

the

desire

the part of the

American
people for a change in the foreign
policy of the United States.
The American people voted for
a change in the control of the Con¬
on

They did not vote for

change in foreign, policy.
Our
foreign policy is not a Democratic
or- Republican
It is an
policy.
American policy.
:
,

v;No responsib 1 e<Republican

Bank

Building.

and

have

been

following
with
the
active
cooperation of
Republican as well as Democratic
Congressional leaders.
man

You must recall that the Char¬

ter

the

United" Nations

Was

supported in the Senate by both
political parties and was adopted
with only two dissenting votes.
Regardless of which political party
is in power, the Charter will live
on

Revel Miller Adds to Staff
The

I have read this letter because

said^'Funny, I'm
going off to war and I don't know
of an enemy.'
A buddy who got

don

one

he held

was

his ,enemy.

think
it
appropriate
that ja
mother's plea should be heard $>y
the
Foreign i Ministers'
Council

to see us said
thing about Gor¬

and

He said, "They think

they're fighting for their country

Laughter came easy to him.
fought hard—Bougainville, the
Bikinis, Guam and lastly. Oki¬
nawa on Sugar. Loaf Hjll.
Hp was

Delegation

of this nation lies not in the
scrapers

the kind of boy he

was

the

To the representatives of other
countries I say that the greatness

like I'm fighting for mine.""

"That

United Nations.

bitterness to

or'

Other

sky¬

evidences *>f

wealth visible in

this wonderful
city of New York. The greatness
Of America lies in the bumble

was.

in the minds and in the hearts

of the American
(Special to

"When he left, and that was our

back >and
^ came

"Care the 6th Marine Division'*'

last gopdbye, he

only by what is said in the meet¬ 'You know,

Street, members of the New York leader attacked the American for¬
San
Francisco
Stock
Ex¬ eign ^policy which President Tru¬

and

Financial

Chronicle)

LOS ANGELES, CALIF.—Jacob
D. Patterson has become connected

you'll not get off this plane at La¬

with Revel Miller &

Guardia, but will be brought back

Spring Street.

man,

now,

hQmgis. qf America and particu¬
larly with the mothers who

one' who knew America part of the 4th Marine Regiment,
side over these homes.
:
jafter the last war and who knows 6th Marine Division.
Yes, that
It r,ests with such mothers .;$s:
America now, I tell you- that this was one of the boys in your poem. the writer
of this letter.
She In¬
tipje there will be no weakening Th^t jgallant lad.
dicates she does not possess matein America's .active participation
"It was a staggering blow to tp.e, rial wealth. But
you and I know?

form, and when

at once,

you

woke

I had known that in Shannon, you
would
never
have
got on this

plane. If

sold

are

SAN .FRANCISCO,

Sutro

ers

the

sets

Sutro Adds to

times

make it out

Schnelle

sent

written by a

was

"New York City,

gress.

My rejoinder
that I would *not fill

to demand the

still

back

for it."

then,

Three
I

before VGander,

mediately.
me

I'll

radio-

proximate earnings for 12 months
ending Dec. 31, 1946 of 94c per
share of outstanding common
stock, it is the intention of the
directors
to
shortly
place
the
common stock on a 10c per share
quarterly dividend paying basis.

replied

purser

few thousand

Mrs.

and

Representatives of other gov¬
Predicated upon current six
months earnings and
upon
the ernments and representatives of
outlook for the remainder of the the press of other countries would
year,
which would indicate ap¬ make a grave mistake if they re¬

16 hours and three minutes away.
When I inquired the reason for

the

town in Minne¬

which divide people,
"August 8, 1946.
world public opinion against "Archbishop Francis J.
;
them, they will quickly stop, such
Spellman, > *"
h v'-

were

inhabitants.

prejudice,

The major portion of the)com¬
pany's subsidiaries, sales areimade
to leading department stores and
to
leadingr radio ^retail • outlets.
Sets are sold primarily under pri¬ in the United Nations and no
vate brand names, with approxi¬ weakening of
America's deter¬
mately 20%
of the company's mination to assist in the mainte¬
total sales
being made for sets nance of peace throughout the
^
,1
selling under the "Espey" name. world.

due

cabin

passion

from

having only

•

Archbishop Spellman, I'm asking a favor of yqtr.
That beautiful poem of yours was

turn

;

Rineanna

Inside

console

distributors.

to
depart
about 4 a,m.
Abe
next
day,
Nov.
9.
The
plane actually topk off at 3:10 a,in.
from

appeals

dema¬

owned ■ subsidiaries at the same should be raised by the represen¬
prices as charged to non-affiliated tatives of other governments. ;

baggage .out to

that

find

statesmen

gogic

comes

was

countries.
If

It
sota

Marine

company

manufacture

All

that I would get pn the

.plane, I took

open

combinations Which recent
elections upon the
wprk of
will retail at approximately $200
the United Nations.
In view of
per set.
what happened after the last war,

the airline clerk had stated

assurance

■

phonograph

the phone that my reservation,
made four months before, was no

the

clusively
facturing

•

stock

manufactures
in his spare time.
radio-sets,?phonog r aphs, and
The patience of air travellers
radio - phonograph
combinations
Verges on docility, sometimes. comprising
approximately seven
People get to viewing their being models
ranging from table model
knocked around as a matter of
radios to radio-phonograph com¬
•course, I noted. Because it takes binations.
Thet company has al¬
longer to put in a phone call from ready completed production plans

cause

manufacture of radio cabinets

Limerick to the airport than to go
there the 16 miles, and be-

Corp.' which

out
;

pro¬

now

glad enough

get any room there — eleven
«days before I; saw; him. He is no
doubt still in his unheated, chilly
room

outstanding

50% of the issued and outstanding

and

the Philharmonic Radio Corp., and

miserable

—

Sales

ticket, suggesting

York

outstanding stock of the Espey
Corp., which sells a portion
of the company's products as a
distributing company; all of. the

'eleven days before. He showed me

Nations

"And

of freedom.

cause

boy, who Is
taking his basic
at
Ban

our

eighteen, is
training
as
Diego.
;;.v;

there

come.

;

United

forum for statesmen
to speak not only to their own
people but to the peoples of all
an

ance

J the technical reasons, call for monstock- of the Espey Manufacr
grbat .patience.; The remarkable turing Co., Inc. at $5 per share.;
is

the

died in the

On the other hand, if statesmen
find that appeals to reason; toler¬

trans-Atlantic

in
The

war.

conflicting na¬
and
aspirations
past have led to

"Lloyd,

night as we
tribute to the dead of two
wars, I want to read to you a let¬
ter from a mother of a boy who

pay

■

yet such experiences,
ifor which the traveller is not
always equipped to understand

tact

claims

which
vides

the

none.

this Armistice

appeals.

fi.fi. Cantor Offers

accommodate these stranded TWA

;

pasengers;

tional

for

peace

•

Doubtless the American Over¬

long ignore inf ormed world

opinion.

under

•

plane

cannot

conscious

wonderful

p ; arranged their baggage with this
In view, they * were told that un¬
fortunately they could not go
the

hu¬

tions.

do know that they
they could go on the
-plane on which I went, provided
they went without more baggage
p j than a single light handbag apiece;
pp After these passengers had re-

The peoples of this world want
peace, but they are not always

ascer¬

all

mistreatment

Foreign Policy Stands
C

this world free from fear and to even make
(Continued from page 2472)
baking powder bis¬
The open forums of the United needless want.
cuits, so short were we.
But we
The
American
Nations are not only a test of
people
want were a happy family and laughter
They know that in this came easy to us all—laughter and
statesmanship; they are also a test peace.
of the press and of public opinion interdependent world there must
sympathy, for we knew what
generally.
World statesmanship be peace for all or there will be was to go without.

plane cargo it may be that
bureaucratic stupidities are not
limited to government organiza¬

told

after

moral to this tale

man

they made out eventually, I

"were

If there is

p pdid not remain behind to

U. S.

in the' cabin

The night I met these four

Europe."'At 4:50 a.m. the lights
finally were put out.

standing

by.';A;v \'V\i p-t • .'

Co., 650 South
'

Our

people.
policy of active participa¬

Seemed like time and time again
that I must get him back, that he
must be there yet.
when
the
troop

Especially so
trains started
bringing them back. You see, the
division

main

the

Milwaukee

Railroad goes by our yard. Espe¬
cially so, when the 6th Division
came home.
In my mind I knew
he was dead.
But it was the heart
that was calling him back, reach¬
ing out across the water.
"i often wondered what Heaven
looked

those

with

it's

to us-r-their

•

"I pray, how I pray, for

God to
Byrnes in his
work.
I pray for the little people.
They have taken too much—won¬
dered tod long.
Soon their hearts
will be crushed with burdens they

guide

Secretary

can't bear.

Treaty to
all

that,
might be fed and clothed. I

operate and do their part to keep

•

Clyde H. Keith With
Carter H. Corbrey Co.
«

■

(Soeclarto* The

CHICAGO,

Financial

ILL.

Chronicl*)

Clyde $L

—

Keith has become associated with
H.

Corbrey
Salle

Co.,

Street.

Mr.

135

Keith

iormerly :with< Shillinglawi;)
Bolger & Co. and its predecessor
,

firms for many years.

Leo J. Brucker Now With
Loewi & Co. in Fond du Lac

I pray for a just Peace
come soon.

to grant

was ?:

(Special toTTHR Fwancial 'Chronicle)

pray

FOND du LAC, WIS.

—

Leo

has " become'associated
hungry people even if with Loewi & Co., 225 East Mason
they
were
enemies.
Hunger Street, Milwaukee. Mr. Brucker
doesn't - make
good, people—rit was formerly with Carl M. Henbreeds hate.- I've been repairing
nig and C. M. Murray Co. for
clothes.; Now, I'm making quilts
many years.
: .
" . v
*
can't

that I can' send
ever

Brucker-

see

may

over

there wher¬

be needed.

There's
already

sent much.

are

May God guide
prayers..

South La

over!

world affairs is not the policy of a

people

peace.
>
. >
;
•
In doing so, she voices the view®
of all mothers.

done.

Gordon's

policy of the
The American
determined
to
co¬

She prays not only ior her owii
but for all boys that • Gael *
may like them.
She prays, $or

boy,

Carter

Now

the nobility of bar

: She prays for our enenues
and is anxious to help them*.

But I think of what thev died for.
I think of the work left to be
work is

soul.

tired,

boys coming in, I figured
they would look at each otheats
some friend, and say, 'Yo u here.'
weary

tion in the United Nations and in

party-—it
is
the
American people.

she is rich in

"We
I can't

bedding.

have

I've

Kidd With A. H. Bennett
KANSAS CITY, MO.

children—yet

seven

give him up—he is one of

us.

We have been

I've

seen

poor

family.

times when it was hard

Kidd

with

has

become

H. Bennett

Baltimore Avenue.

—

Clifford

'associated

Co., 10Q4>

less

Outlook fox Tux Revision

are assumed. On the basis
of the latest estimates of tax yield

shall

presently see an end to this

for the fiscal year 1947, and under
the assumptions just mentioned,

policy.
The chief controversy is
likely to involve proposals to re¬

the

duce

outlook for the fiscal

revenue

follows:,

.•

national

for

J**1;'

•'

National Defense

Table I omits all of the social-

The average cost per man in the
regular army for the years 19301939 was $1,959, and for the naval
cific
purposes.
The
deductions
personnel in the same period the
for non-recurring receipts, such as
average was $3,468 per man. The
surplus-property sales and the
expenditures
contemplated
ior
termination of excess-profits-tax
1947 are at the rate of $6,500 per
collections, are approximate only.
man in the army and more
than
Assuming their reasonable accu¬
$10,000
per
man in
the navy.
racy,
the regular r and ordinary
Granted that present day defense
-Federal revenue system may be
costs more than Was spent in the
expected to produce $34 billion,
elaborate equipment; better living
possibly somewhat more, at pres¬
quarters, etc., the burden of proof
ent rates and national income.
is on the defense departments to
The total expenditures as now
show thaf we must now spend
estimated for the

security taxes, -which

ferred

trans¬

are

accounts for

trust

spe¬

fiscal year 1947

to be $41.5 billion.

are

includes

some

This total

per

items that will not

ishing items

are:

Terminal-leave pay to
veterans

■V?

Gross total 'ima.umLM.K.m-***

volved

for

the

With

before

spent

the average

pre¬

cost per man

billion.

$3.5

in-

The

present

army

calls for 'a total perof 1,070,000 by June 30,

the

the present tax¬
ing machinery can scarcely pro¬
duce enough to keep the govern¬
of the

red.

could

persuade the Congress and the
country to accept my minimum
budget figures, we could have a tax
cut of $10 billion and still be mak¬
ing a substantial payment on our
huge public debt. Or, if we must
settle for my higher range of ex¬
penditures, we could have some¬
thing like a $6 billion tax reduc¬
tion and maintain an impressive
payment on the debt.- Therefore,
whether we get no tax reduction
at all or a small one, or a large
one, is obviously to be determined

by the level of the spending,

Ohly

e x tre m e
optimist
that a budget below
$25 billions is within the realm
of early, practical possibility. In
proposing such a figure, my pur¬
pose is to show that all essential

would

say

Federal commitments and obliga¬
tions
could be met within it.

There is
that

the

intention to offer

prediction.

has

effort

been rumored

be made, in

may

Congress, to hold the
$30 billion. Actually, it will
be necessary to do better than
this, if the pre-election prom¬
ises of some foremost members
of

across

Congress for
the

board

20%

5.8

yCoxapr.ation .income

material

and

voters

have

believe,

which
could

drawn

the

and

opinion

burdens. For

vs.

kind

taxpayers

understand

formulating

to_henefits

here

exam¬

ple, the withholding tax is COn*Sub-total ______^__$15.9
ltmt^:;>-;aLt vi
Lnrt^bracHet'-""^:
balance from individual "
which; is the normal tax and The
income tax
14.1
surtax combined. With a budget
.of $35
billion, the withholding
Total
"$30 must continue at the present rate
of 20%, or $20 out of each
$100
Sdd TABLE C 1
Of taxable income. If the
budget
'(£),%ExpenditureS
.$25 were $30
billion, the withholding
Revenues:
COuld^ bedt^the rate of $J7ibutbC
Miscellaneous u2.-iv..w
each $100 r and, under a bddget bf
^Customs
^.5
$25 billion, only $14 Would need
Estate- and gift iaxes-*.-ZM
to be withheld from each
$100 bf
Excises
_

(

■

.-5.0

taxable income.

Corporation income:
•

tax

The fundamental question

6.5

tube
want
much as $20

put to the people is: Do
Sub-total ___w________$13.6
Balance from individual

■

income tax

11.4

keep

out

paying

each

like to

$100,

have this

you

would yom

"tax

take"

re¬

duced to $14 per $100.

The people
knowledge of

of $28.4
sible to

likely, however, that the principal

generally 1 ac k
budgetary details, and they are
consequence for the not likely to appreciate, without
year's yield. To be sure, even at help, the extent to which
th£
the $30 billion level, there would
scope and cost of the public serv**
be a choice between reducing the ices can be reduced without
inrr

naval personnel by June -30, 1947.

cOncernin suchtax reduction

excises

X have suggested

fact, at my higher total
billion, it would be pos¬

apply such

cut clear

the board, to income and
excise taxes
alike.
It is more
across

time year
total was

except 1940, when the

chopping. The ultimate wielder
the

cational

axe

here

as we

have

readily

the

Congress;

often seen, its

blunted

the

said

In the August
the- President

expenses.

budget

statement

that tighter standards in the

resistance of pressure
groups and
the vested interests in

Administration of these payments

However,

plied.

spending.

as a

basis for discussion
of

means

that

focusing the

expenditure

re¬

ductions Can and should be
made,
I am
willing to set up some fig¬
be shot

at.

This is

irr Table 2.

done

tions

and

these

were

event,

any

to be

ap¬

the obliga¬

sorts should

pres¬

ently expire. My minimum figure
for the veterans would cover pen¬
sions and

hospital

and my

care,

war

billion

hot

excise-tax rates could be al¬

their dependents. The

And

to the

foreign

loans, it is to be hoped that

payments

care of the

spend

area.

and

taxes.

the

latter would be the first choice.

freely

the able veterans, the

eral
taxes

.
,

(Millions)
18,367

Direct taxes

individuals (income, estate/and gift)',.

corporations (assuming no excess-profits

.tax)
Excise taxes (after termination Of
Customs 1

—

Total taxes

i__

Miscellaneous

excise-tax rates)

(excluding

property)

sales

dld-d

...

-■

Total receipts

8,262 :v
5,812

$32,904

surplus

1,000

„

•

463

d—Z—iZd

receipts

war

must

Postwar Tax

government
relinquish
its
on gasoline and lubricating

dd,

—

etary details and the transmission

of the results to the people lit
terms that they can understand.
As an illustration, it could
wardfthe^eliminatiOiTbf Overlap¬
ping taxation which the Federal pomtecF out that a Federal •stib-i'
government could take, and it sidy for agriculture, or
highways^
should have a high place when or any other purpose, amounting
the budget is reduced'to a level to $1.2 billion would mean an ad¬
oils.* This would be

that

warrants

tion.

;

one

step to-

exei^p&xx reduc¬

J&gj-

The members of thj& audience
need

persuasion

vantages

which

stich

to the ad¬
a

ditional $2.00 of withholding ta^t
each $100 of taxable incoittei

budget,

believe that we could get a
reasonably prompt and correct
decision from/ the people if1 the

and the tax.reductions that would

choice between benefit

possible Under it, would af¬
ford fOTToUrecon<^ic: vigor and

den were

$33,904

and buir-4

brought home to thehi

in some such way as this. In any
event, suitable, simple ways of tend
to carry to the people generally abling those who must foot the
bill to appraise the situation iii
a clearer perception of how they
Would be affected, as taxpayers terms that are real to them must
and as workers, and thus to make be devised and used. Unless this?
them 'Want badly enough the gains is done, the translation Jof popular
that could be realised:; from
a desire for tax relief is likely to
well being.

The great problem is

moderate budget to cause

ing to create those conditions un¬

local subdivisions, which probably

earnings and income
will be greater, and under which;

are certain

ievy

rate of

it Would be possible to

corporation,

income-tax

der

30%, to reduce excises fry

which

V-

present rates to the Federal
government must be added the1
state and local bill of another $9^

billion, more or less. Even if the*
Federal

{Billions)
/Class of Expenditure

National defense

Army
Navy

Urn

mrn'im

'
mrn'mmim mSVm'Um'tmOm

mm*m mm mm

** mm mt mm mm mm

____$ 3.5 to $ 4.5
4.b to
5.9
-

Sub-totaL national defense
yeterans' pensions and benefits
Social-security payments (grants to states, etc.)
Public works (including grants to states)

$ 7$?. td $ 9.5
to ■
4.0
' .6 to
-.7
.8 to
1.0

Soil conservation

Interest

General government {Civil -departments)
International finance

5.0

lu to

—

5.0 to
10 to

the public debt

1.5

1.2

Total to be financed
revenue

receipts

—__$19.2 to $23.4
5,0 to

by taxation and other current;-

5.0

to
■

keep the total tax

or near

re¬

are

burden

the $35-billion mark.

sometimes

inclined

/ »

to-

neglect #br ignore These 10CAV
taxes, inasmuch as they do bulk;
so much less by comparison wTthr
the Federal burden. I
am
sure'
that

the

Federal

authorities fre-*

quently ignore the needs and the
legitimate claims of the states.'
The trend of Federal encroach- :
upon

turned into

the Federal

state
revenues
is "•
vicious circle when

government proceeds

to make large
,

were

billion, the state Ah<L

local exactions would still suffice:

ment

Total expenditures for current purposes
\
Annual appropriation for debt reduction

"take"

duced to $25

-^Bahge of E^enditUTbs
'
;
"d'Z -{

to rise rather than de¬

under

Suggested Postwar Federal Budget Range

at some $9 billion, Ahd]

now

cline hereafter; Hence, to the $34.
billion that we would be paying'

Tax Program for a Solve

'table 2

stand

Amount

pairment of essential functions. A
large part of the educational task

consist, therefore, of con^tinuous,
temperate,
convincing
Policy recommended ThAt the Fed¬ Challenge And criticishi of budg¬
The Committee

Projected Revenue Prospects for the jFlscal Year 1948
'

in¬

Here,

able-

TABLE 1

Revenue Source-^

individual

gues^is that the

issue the necessary

sick, the disabled, and

come

allow $1.0,
another $800 million* and to lower
America, pps. 153, 154*
for the remnant

argument.

the

$25

of little

lustration.

bodied. bur first Job here Is the

Total revenue

them to be slow, uncertain, And ineffective!
instructions to
tTnforturiately,
the AmAfiOaih?
Suppose, however that we were their representatives in Congress.
taxpayers aro not through With
required to provide only $25 bil¬ We- have a tremendous, but not taxes when
they have satisfied the?
lion of revenue. Again, there are impossible task of popular educa¬ demands* of the Federal
govern-;
tion before us. It is the kind of ment, although our discussion 1:6
many ways of allocating the fur¬
fight that we can throw ourselves this point rather implied that such
ther tax reduction of $5 billion, bf
into with the greater vigor be* is the case. We must not overlook
which I select Only one as an il¬
cause we know that we are striv¬
the needs of the states and their
lowed in this

higher figure Would

does

needed

were

permit me to
afgue at length in justification of
the foregoing
figures.
As to the
interest cost, there can be no

rth

is,

filled. In

which

there

use

'tax

•

hibits

in the navy, we
could support A naval personnel
of almost 600,000 for my minimum
cost figure, as against the 437,800
that is contemplated as the total

the

—

194T." Ahd if We doubled the pre¬

$8.8 billion. We are
presently committed to pay cer¬
tain adjustment benefits and edu¬

Time

Excises

war Cost per man

than

must be prepared to be
somewhat
: Specific as to where he would
do

Estate and gift taxes__

1948, but

ern woodsman in the fiscal forest

ures

$1.0

Customs

ful¬

other oc¬ may be made in execution of the
casions that there 'could be, with campaign pledges, assuming that
deficit in 1948 of $2.0 billion or
profit, a larger expenditure on the givers of these pledges are to
more, assumingTnat the spending
defense research and
develop¬ be in position to deliver on them,
in 1948 equals that now antici¬
ment than the $700 million that Is will be with the individual in¬
pated for 1947 in all Categories
proposed for 1947. As the pattern come tax. It may be of interest,
other than those just mentioned.
of the most effective future' de¬ therefore,, to have a look at what
-There is. no present ;
prospect fense is made clear by this re¬ may be possible iii this direction;
that the spending in 1948 will hot
search, We can then, and only For this purpose, suppose we take,
equal that contemplated in 1947 then,plan wisely the direction and as examples, expenditure totals of
if we simply let nature takes
its the amount of necessary future
$25 billioli and $30 billion.
v
v
course
as
charted by the 1947 defense Spending. In the mean¬
There are many variations, in
budget
estimates. Z Fortunately, time we shall not be sabotaging the manner of
distributing the tax
however, we do not have to leave our defense, but rather conserving reduction that could be made if
the matter
entirely to nature or our resources, by spending less on the budget were lowered to either
to fate.
In this
instance, we can methods and procedures that may Of these levels. I shall give you
still'contribute to the shaping of be obsolete in another
yean
only a few examples:
our
destiny. The figure of speech
It Would require a first-bracket
is apropos, for one tool
Veterans* Pensions and Benefits
employed
rate of 17% to obtain $14.1 billion
in shaping
The total that we are committed
thingsjs the axe. > An
from the individual, income tax. It
axe could have been
used to ad¬ to spend for the veterans in 1947,
seems clear that in order to pro¬
vantage on the 1947 budget, and Ihc.lu.ding the terminals-leave
vide even as much as three per¬
it must be used on the 1948
budget pay, is. $8.6 billion. This total for centage points relief for individ¬
if We are to have
any tax reduc¬ veterans equals the highest ag¬
uals, no reduction can be made in
tion at $llj
gregate of Federal spending for the
corporation tax rate, and Only
Anyone who would be a mod¬ all purposes in any prewar peace¬ the automatic cutbacks from the

Miscellaneous

manner, this balancing process oc¬
curs, although there can never be
a
precise adjustment. In the ex¬

less

leaving total ex¬
penditures of $36.7 billion, or a

$30

Revenues:

required to pay for them/ Per¬
haps, in some vague and indefinite

assume

the available net reduction below
the 1947 expenditure total would
be $4.8 billion,

and

Billion

billion, and the seCond $1 billion,

contention

(1) Expenditures

tax out

are

TABLE

;

should

will be
automatically sus¬ weighing
the
advantages
and
pended by July 1, 1947, or so benefits of the public services
early in the fiscal year 1948 as to Against the burden of the taxes

sonnell

that the
first may require as much as
$1.5

and,
Odge

cise

total to

program

finance

the

fiscal situa¬

reduction

time, the share of in¬

which really counts for the

only when individual, viz., the 'Take-home
budget declines to the level pay," will be increased.
;
A principle that has had general
$25 billion or thereabouts does
the prospect for a reduction of the acceptance in the
theory of popu¬
excise taxes
become
materially lar^ democratic control of the
brighter. I have assumed, as noted public finances is that the people \
already; that the war rates of ex¬ are able to exert control by

public support.

in the

Federal spending,

out

come

that

note

refunds

amounts

1947.

$7.3

expense

international

and for tax

some

much

in the army, we
could support an army of 900,000odd for my minimum figure of

war

There will be

times

was

to double

were

3.0

Tax refunds

>•

man

three

equipment for the present estab¬
lishment WAS bought land paid, for
dimlh*; j during the war itself-—including
a
'
'
Vessels, b artAc k s for soldiers,;
Billion;
trucks, tanks, guns, and supplies
of every description. Even if we
$2.4

international finance

if-V

than

World War II. Much of the capital

in 1948, and others that will
be less in that year than in 1947.
recur

VThese\ftoh*reeurMn&;

tion.

at the same

Yob. will

rate, here we have the

any

elements

ment
'IM.'Vvj'

the first-bracket rate of the indi¬
'

•

expenditures

defense and for veterans.

1948 would be somewhat as

year

two

Thursday, November 14, 1946

vidual income tax to 14%.

likely to provide for
first, and the

are

best claim, for

1930's because oi higher pay, more

income

those who have the

page)

(Continued from first

;

FINANCIAL CHRONICLE

THE COMMERCIAL

2506

grants to the states,

$24^2^ to $28.4

the ground

that the latter do

'Volume 164

not

have

Number 4542

sufficient

sources'of

provide adequately for
-their own services. The highest
cost money that the states and
;'cities got is that part of their own
money which comes back to them
revenue

^viat, Washington,. in

a neat wrap^
fping and' labeled "with the com¬
pliments of your Uncle Satri."

My
have

estimates; and
also

omitted

tabulations

the

social-sd-

"curity taxes, for the reason that
•these receipts are transferred into

trust accounts.

This

ceives

-that is

the

one;

de¬

the

burden

involved.

threshold

transfer

are

THE COMMERCIAL & FINANCIAL
CHRONICLE
sult of the debt

floor."

balances in

One

member-bank

reserve

the Federal Reserve banks. As

4bis ohe. This
ture

of, .forces

/should

praisal of the

they are to
is; afatal conjunc¬
and events.; There!
dispassionate ap¬
proper and legit¬
as

imate claims upon government for
welfare' purposes; To the' extent

that such
should

fcpfcrid

reasonable approach;
ah obligation
to
than is now being

reveah
more

spent, then there must follow a
Sre-appraisal of some of the other
things that are asked of governihfent. High priority for welfare
should mean1 af lower ranking of
some other services, and the
pos¬
sible elimination of some, in order
to meet this claim without impos; ing an inordinate hurdeii of taxes
iipon the citizens;
J The large Federal tax collec¬
tions of the present time

are fre¬

quently defended as the only
; proper and sound policy under the
.

| conditions that

now

exist.

The

argument is that the high taxes
operate as a curb on inflationary
tendencies. Presumably, the

however,

"sixth

chief

with

com¬

over¬

ment. In this

won

any

loans.

From

here

the

wants

"adequate" union security
"proper" grievance machin¬
ery..;;/';:.'
/ >r'V^v?;V;
The dispute over the no-strike
and

clause which gave such trouble in
the early stages of the
negotia¬
tions has
tled

been

the

less set¬

^provision*

prominently in the, negotiations
even; in- the particularly delicate
stage in which it now finds itself.
The union is\alsq' going ahead
with its plans to affiliate with

recommended

will cost tear's

party the right of
contract cancellation oil a
30-day;
notice and so does not figure

total from

giving either

some

now

basis

going
progressively tougher.
Every billion that is lopped off the

Will' get

large

executive

national

committee
to

body1.
this

The
week

its

membership
blood; but it affiliation with the A. F. of L. The
will mean almost $2.00 more out question will be
decided'at si con¬
of every $100 of taxable income vention the union will
^conduct at
for the citizen to spend rather Schwartz's for an indefinite
pe¬
than the government.
riod, probably three days, after
Here, I believe, is the Very es¬ working
hours,
next
starting
sence of economic freeddm^that
Thursday. Many of the union's
we be free to use our own
members at the Exchange, it is
judg-,
ment as to how the fruit of our
known, would like to see the
labor shall be used.v The higher union affiliate with the
United
the taxes are, the, less of one's Mine Workers. The union
leaders
and

sweat,

if not

income is disposable according to
the wish and preference of him

who

earns

it,

themselves likewise recognize that
affiUatidn with the CIO would
and the greater is tend; to removejurisdictional: dis¬

the proportion that is disposed of

putes-front the Wall Street scend.
some official agency. We all
The strike which wax called' by
accept the obligation to support the United Office and Professional
government within certain limits, Workers,
CIO, against the Mer¬
but we resent giving too much of chants
Bank
of New York on
the fruits of our effort: over; to
Wednesday of lastweek was"^ an¬
others to be spent according; to nounced
as settled on Friday. Em¬

their ideas.

Why not put it td the ployees

at the bank

were

Ill Observations

/';•

(Continued from

page 2461)

free-working

international financial organization, under whatever
particular technique of operation, is, as in the past, sure to break
down in the absence of debtor nations' chronic inability to secure the
dollars for repaying us for our exported goods. If foreigners should
again find themselves unable to export to us, within a few years the
United States, as was the recurrent case since World War I, will again
have to devise a new way of giving away our goods, to enable for¬
eigners, to. make "payments" by giving them the required dollar
"chips" through international "loans," gold transactions, etc.

SUMMARY,"';1-

indifferent

the

union's

•

battle, we have not
of. the, skirmishes that
normally precede.a major conflict.
:
Reduction of the spending from
^spending and lifting; the rates. $100 billion in 1945 to $41.5 bil-;
!Ther6 is no- subject' of public lion in 1947 looks
impressive, and
^'spending, not even excepting the by iriafty standards it is impres¬
/national defense, that is as wide;
sive^ But this Was only the easy
iftperi as welfafe/SO fair as my ob- part of the way, about sis easy as
rservation goes, there is no sUb- debt
repayment when we use
'ject about which the taxpayers: money obtained from previous
seem as

the

reserves

In summary, I would emphasize
burdens,,
thanks to the repeated action of
again that the battle of the budget
Congress in freezing the OAS! is our most serious fiscal engage¬

to
of the schemes proposed
J<by Messrs. Wagner and Murray of
"thfe Senate for broadening the

appeared, the banks time pay and it is said that the
v/ould face the problem of ex- union would overlook a lot
if
panding or standing pat on the somehow it could get a satisfac¬
volume
of
private loans. Evi-? tory concession from the Exchange
dently, if they chose to replace! covering this one point. The union
government loans with private claims its members take a licking
loans, there would be an expan¬ financially—on the average hour¬
sion of bank credit Which would ly
pay' rate^verytime they^^^h
be: quite 6s inflationary in its ef¬ to work overtime* /
according to
fects as if the borrowing were the
present method of computing
done by the government.
overtime
pay.
The
union
also
cess

only at

enact any

employees

plaints,

ex¬

these

-rate and' in refusing, thus far,

tive

payment. The re¬
improvement of

sult would be

2507

State Department proponents and others express confidence that
will be no legislative trouble because the new agreements

there

neither

individually

collectively require direct .Congressional ap¬
of the Reciprocal Trade Agreements Acts,
power to reduce
tariffs by 50% of the 1944 rates, or 75% of those that existed in 1930.
The

proval.

nor

provisions

expiring in 1948, delegated to the President the

While
the Trade
Agreements statute in its entirety is. on
the books until 1948, a dissenting
Congress can cause plenty of trou¬
ble. For it must be realized that the Congress can introduce and

decisively crippling amendments to the existing statutes. Or it
completely repeal the law, although it is doubtful whether a
veto of this action could be overridden.
Or, acting circuitously, the
Congress can reduce or altogether refuse needed appropriations to
the negotiating committee./ Surely the new "vicious watchdog of
the. Federal' purse," New York's' veteran Congressman Taber, will
pull none of his punches in this vulnerable sphere. And our future
agreement to join the International Trade Organization, relevant and
vital though technically apart from these
prior agreements, is subject
to Congressional ratification.
.
i
pass

could

The Congress can cause* further vital obstruction by failing to
provide further badly-needed funds for the Export-Import Bank, and
also by holding up direct implementing- credits to foreign countries.

Although Under-Secretary Clayton and others profess complete
absence of worry over domestic
opposition, on the grounds that recip¬
rocal trade concessions" are
merely further* manifestations of non¬

partisan

"American policy," approved in the past by Republicans
Dewey and WiUkie, in: the same way as' Secretary Byrnes' political
sphere principles are, there is surely considerable doubt about such

unanimity in this economic sphere.

'
It also must be remembered* that in the
,

case

of the Bretton Woods

agreements, ratification was voted for by 8 Republican Senators and
opposed by 28. For the loan to England, the 61 assenting Republican
Congressmen were outnumbered by 122 of their party in opposition.
And of the greatest relevant importance now, extension of the
recip¬
rocal trade

agreements was opposed by 25 Republican Senators
against only' 9 assenting. And already Senator Wherry; scheduled to
be the majority
whip^ holds*that the State Department's reciprocal
tariff program "ought to have a lot of research before
any further
reductions are made.
.OI come from the cattle country, and I am
.

pretty

granted

string fot the- protection of; American labor and American

markets,' * And union- labor 'through its' own spokesmen may • have
people this way: Do you enjoy salary increases
ranging from $36 "plenty to say" that is vital to American
policy.
•'
letting the government spentt the to $80 a month and minimum
pay
thought is that, as more of each money you work for, or Would was raised from
Then, too; as a' threat to Expanded ihuitilateral trade, there ha$
$23 to $32 a week
person's income is taken in taxes, yotf like to spend more of it
your¬ The CIO union has applied to the been a very Wide swing over to advocacy of Dollar Diplomacy, even
*
there will be less left in his hands self? If you Want to do more of
State Labor Board for an elec¬ by economists.. This latter1 shift is: reflected in the instance of Pro¬
a to be used
in'bidding prices up of the spending, then insist that gov¬ tion at People's Industrial' Bank fessor Jacob Vinet, former* Treasury Adviser^
who; at; last' week's
iirpayihg/faticyprices for goodsi ernment spend less.
which will probably be held oft session of the Academy of Political Science stdted that Russia's recent
The logic of this line
provocations agaiiist the Western democracies have made him change
of-thought
Monday.
is in large, degree unsound. The
his long-continued" position over1 to decisively favoring the granting
'as Well as withholding of our
purchasing power taken from the
foreign loans, on political rather than
economic criteria.
taxpayers is promptly spent by
'
>

Early Pact Befween

the government;

Hence, there is
; IiO
diminution of the overall
amount of available purchasing
1 power as a result, of the taxing
arftT spending. In fact, thO operalion Of steeply progressive in/comei-tax ratesi coupledwithor¬
dinary government spending, re¬
moves ; purchasing
power
from
those who are not planning to
spend any large' part of it on con¬
*

UFE & NYSE Expected

(Continued from page 2463)
fof the union1 not to exhaust every
avenue

which

LegalRelpioiisiliility

Urged for Unions

1 (Continued from page 2472)
satisfactory the current scarcity of new cars

agreement may be reached.

After

of all makes'."

all, the discussions: on wages' dan
He
emphasized
all
workers
be said barely to have started;
should become more active in
The

union

probably a little
precipitate in breaking off nego¬
tiations to call for a1 vote. - 1
was

union affairs.

Despite this v/eek's eloquent plea of Fiorello LaGuardia, Director
General of UNRRA; to the UN's General
Asserhbly, that there be no
"Food Diplomacy" practiced like, Dollar
Diplomacy, it is quite ap¬
parent that it is unthinkable that even in the distribution of relief,
power politics will be eliminated. With UNRRA help of $429 million,
already given to Yugoslavia, $189 million to Ukraine and $61 million
to

Bbyelorussia/and with the Russian

satellites thanking us by calling
charity "a capitalistic plot," it is surely unthinkable that the
American Congress will hand put more blank checks for feeding the
would on a philanthropic
basis, without taking into strong account the
political1 considerations.
' :
our

"Too many union decisions," he
pointed out, "have been; made by
This vote among the Exchange
sumption goods and pays it out to
aggressive minorities.. If the- ma-5members' of the union Was origi¬
s", / And it must bei remembered that at' home the
persons who will. On the contrary,
sympathetic ear
jority • plays; an active part in
scheduled; to have taken
the larger incomes, if taxed less nally
for imports i^ going ta be lessened when we return" to times of
determining the future course of
heavily, would flow in greater place on Tuesday but inability to any union, I'm convinced their full production and a normal buyers', rather than a sellers' market;
ge t a polling place. forced the de¬
proportion
into
investment,
a
decisions will be to the best : in¬ and also that abroad; Britain's;' present great degree of domestic
form of spending; which would lay until tomorrow. The report terests
"austerity," resulting in hfer presently large aiid growing export bal-i
of all—for that's the way
of the vote which was to have
add to
the
nation's productive
ances, is not1 going to be maintained forever.
been given to the Exchange this democracy always has worked."
equipment afld promote the in¬
He said a Packard Local 190
*
*
*
*
a fternoon will now not be
; u
!.c
given
crease of supplies of goods.
until Monday afternoon when the UAW-CIO work stoppage, unau¬
New Trade Policy' Domestically Deflationary
«. A large budget makes possible
thorized
by
the
international
negotiations^ will
be ; resumed.
tne retention of a large
The new i>lans of the American State
number
Department and of the IriierThus, by a sort of Understanding union; had resulted in a loss of six
*df
persons' in government service, (the Exchange has
days of car production since Oct. national Trade Organization in envisaging lowered tariffs, will,
agreed to a
f. Because thesepersons are not,
1945,: but that 98 ^
additional if: successful, pave the way for the real payment for America's ex¬
resumption
of
negotiations
on
through their work, adding'to the
work; days had been lost as U re¬
ports, and the reimbursement of her future loans abroad/But, in cur¬
Monday), the contractual rela¬
general
supply
of
consumable
sult of strikes and other diffi¬
tailing or wholly eliminating the subsidy elements of such lending,tionship between the union and
goods, their diversion from
in
scattered
plants J of which have been controlling in the past, will largely eliminate the
the Exchange has already been culties
:f private employment tends to in¬
Packard's 600 suppliers.
inflationary effect derived from the former process of giving the na¬
extended three
pays beyond the
tensify
the
shortages and the
tional product away, as wdll as from the
holding of competing im¬
legal limit.
"People are prorie to blame
V
| pressure on the price system. The
ports off the domestic market/ Thus the multilateral concessions
The contract actiially expired Detroit for their inability \ to get
£ame can be said for the retention
should have a
on October 15 but was automati¬ a new car," he pointed out, "but
deflationary effect.^
of more men in the defense estabcally extended a month to give they overlook the fact that the
% lishment than' the prudent re¬ both
parties the chance to come automobile industry is dependent
trade-marked products. Spread of
quirements of the national de- to some
American Fair Trade
kind of an agreement, r-;. upon suppliers in 1,375 cities in 44
Fair Trade especially in the hard¬
fense would justify, v The Exchange thinks that its States for parts and materials, and Council Annual
ware, automotive, houseware and
! The foregoing observations as¬ offer of
increases ranging from $3 everyone is dependent upon some¬
electrical
equipment fields; was
sume that government
On November 26
spends on to $5 a week would lift
Exchange one ; else clear back to the raw
said by Mr. Anderson to be addi¬
current operations as much as it
salaries to a point which would material stage."
Announcing the American Fair tionally indicative. Chief purpose
collects from the people. If, how¬ not
compare
unfavorably with ;' "It all boils down to this: Auto¬ Trade
Council's
annual
"Fair of the meeting- is to give both
ever, much less than the total wages
paid in the industry gen¬ mobile production will increase Trade Forum" for Tuesday, Nov. present
and \ prospective
Fair
collected were devoted to current
erally or for similar work in other only in
proportion to the improve¬ 26, in the Wedgwood Room of the Traders an opportunity to ex¬
operations
and
the - remainder fields.
The union feels that the ment
of
conditions
Waldorf-Astoria
Hotel
at
New change views on the adaptability
generally
Were used to retire debt held in
$43 a week average pay of its
throughout the United States."
York, Council President, John W. of Fair Trade to specific mer¬
the banking system,, there would
members is inadequate to meet
He said Packard had originally Anderson, characterized a marked chandising programs
and prod¬
be a reduction of the amount of
rising living costs and is likewise scheduled 20,311 Clippers for de¬ increase in inquiries by sales ex¬ ucts. This clinical treatment, it is
bank
credit
outstanding. Both disproportionately lower than the
livery in New York by Nov. 1, ecutives as evidence of the broad¬ believed, will prove popular be¬
bank
assets
and
bank-deposit $73 average pay the union claims but had been able to
each
situation
will
be
ship only ening interest in Fair Trade by cause
liabilities would decline as a re¬ the
Exchange pays its administra¬
manufacturers
of
all
4,390.
types" of analvzed bv an exnert.
_

■

Meeting

THE COMMERCIAL & FINANCIAL CHRONICLE

3$3

Thursday^ November 14, 1943

Tariff Commission

Implementing Increased Imports
'»

*>( Continued'from page 2470)'

bnciuie to get sufficient dollars
thfougn exports and having ex¬

hausted

their " credit

and

their

available gold supply, many coun¬
tries were forced in the '30's to

take extreme measures to control
their own imports in the interests

countries in payment. We have

stressed in

our

development of in¬

dustry the importance of markets,

their 1 exchange position | and
fast' diminishing gold * bank re¬
.

economists

omies."

call

"consumer

econ¬

Our imports are

iand

inability to appraise our pari passu with the expansion of
position, rather than on the our exports without disturbances
necessity which impelled So "many to our economy, because the im¬
countries ; drastically to
control port' item is- the purchasing price
world

necessity which our policy did
4huch to bring about. The Trade

Agreements Act of 1934 reversed
this policy, but has not gone far
enough to repair the damage. It
must be-vigorously pursued. The
•economic warfare which
iff
*

^policy

counter

represented

measures

our

tar¬

and

the

induced

re¬

tarded the recovery of the world

hence her war resources. We are

only

the

country

world at this vital

the

time of world

ment

should be worked

has

capital
in volume to export. The burden
and responsibility of world banker

imports when

sale

The International Conference oh
Trade and Employment, called by
the United Nations Economic and

Social

Council,

held

summer, will be an acid -test of
world intentions. The Conference

will write the

new

international

idea

commerce.

trade rules for
A

Pre*

are

summer
will*blaze- a new
trail in international commercial
collaboration.
<

/
has, set up an Import Ad¬ would be hastened,
While it probably would be in
visory Committee; which is be¬
ginning to function. It is doubtful our national, interest to institute

inerce

if the staff in

the

Department of

Commerce

sales work

the

competing foreign goods.:

is threatened will be

imports

with

restrict

for
an
19th Century is ours for the 20th continue to have trade killed by Charter
International
Century, International capital flow a multitude of indirect measures. Trade Organization. Its second
But finally and most
will
take
is as vital to world, stability and
place
next
important, meeting
we
must
systematically reduce spring, to continue its work on the
peace as international commodity
agenda for the Conference/
flow. We met our capital export our tariffs.
responsibilities during the war,
/In b period of re-stocking^ com¬ ; About the time of this second
we must'again meet them during modity scarcity and
high prices,— meeting of the Preparatory Com¬
a period which will
the peace.
.
,
continue for mittee, the United States will call a
Our Government is committed several
years —tariff
reductions meeting for the negotiation of retto the policy of taking every step can have no serious adverse ef¬ ciprocal trade agreementsi It! is
within its power to implement in¬ fect on our economy. In fact, the expected that 18 countries will be
involved
in
these
reverse would be the case. Recon¬
negotiations.
creased
imports; There
are
a
The success of the negotiations
number of things "which it is do¬ version to a peace economy and
and the adoption of the Charter
ing. The Department of Com- price equilibrium here and abroad

is anything like ade¬
quate to the work of this im¬
of the export item. Depression of portant activity. Historically * the
Department v of
Commerce has
business and prices will not result
made great efforts to find markets
from expanding the exchange of
for the exporters. If it would give
commodities domestically or: in¬
equal, or more- attention to the
ternationally^ In fact; we have al¬
stimulation of imports, the ex¬
ways had the largest volume of
ports; would, to a large degree,
imports at the time of our greatest
take care of themselves.
prosperity. Our all-time high of
The
demand
for
American
imports was $4,500,000,000 in the
boom year of 1929. The continu¬ products of all kinds is such that

behalf of American

ance

that

imbued

are

prevent

If your Government
agencies, na¬
tional and local, and your Con¬
gress

over markets ;;and;governselling s monopolies o which

iniquitous, and paratory Committee is now having
any means
by which they are its first meeting in London dis¬
stopped or impeded is a move in cussing the principles- and rules
which Great Britain carried in the the right direction, then we will to be embodied in the, Suggested
which

reconstruction

depression
stabilizing production abroad is secondary to
the availability of dollars to pay
by insuring the continued
tributing factor to World War II. outflow of exports and conse¬ for the American production for
The step from economic warfare quently the continued production which the world hungers. This is
■to .the warfare of explosives is a of the
export industries; and let particularly true since the close
of World War II. Lend-Lease did
short one, and unless we learn me remind
you that today the ex¬
that economic peace and economic port
industries
of
the
United much to popularize and advertise
cooperation in the world are es¬ States are the great ' bulk of American-made products, which
were sent to the far corners of the
sential, World War III will be American industries.
around the corner*
*
:
%':
world, to many remote places
where
they were .-hitherto un¬
Our Import Policy Key to Greater
JFuttore, Attitude - Toward Imports
known. Everywhere these United
World Trade
Are we* then, after a second
States manufactures were found
It is particularly important at good and desires created for more.
disastrous war, to follow the path
we
pursued after World War I, this time that total world trade The American motion picture is
despite the evidences of its folly; be expanded, and, I repeat, our also proving a powerful salesman
to,are we to appraise our position import policy. is the key to that of our goods abroad. Hence, some
carefully and with courage and problem, not only because of the of our genius for salesmanship
determination win the .peace, as necessity, for world industrial and should be put. into reverse and
we have won the war?
Again, I agricultural recovery through in¬ applied toward finding new uses

-after " World War T and fostered
the conditions which were a con¬

control

bill of Par¬
■ which

regard

energetically
change over current requirements by that organization and changes
of that amount. It is notable, also, in administrative provisions
to
Congress. We
that Great Britain's investments recommended

really

•

;

their international balance sheets,

this

that we have let the sales man¬ abroad have been, in both wars;
called sanitary provisions are not
important
reserve
which
ager-point of- view dominate bur an
thinking. We need to stress what strengthened her financial -and instruments of commercial policy.

should be very sure, also, that so-

the readily ex¬
pandable item in our balance of
serves.
They turned to the use of payments. In other words, they
various devices, such as quotas, are in a true sense the measure of
our export volume. Tourist travel
exchange allocations, etc., because
and immigrant remittances which;
tariffs were.not a sufficiently ef¬
fective control to bring into equi¬ on occasion, have run almost as
as ? $700,000,000
each, - al¬
librium their international balance high
cll^pfc '.f I:..;.i.'.v,:,.,\iYSY though not in the same year, can¬
not be counted on. to provide the
Our Tariff Policy
expansion in the supply of dollar
C-Wey iii this eountry, have critic
exchange necessary to give our
cizfed quota systems and exchange
export trade the volume our warallocations as being destructive of
expanded industrial equipment re¬
trade, and of course they are. But
quires,! and which the t pressing
our own high tariff policy in the
circumstances
of
reconstruction
y2Q?s and early '30's, which was
abroad demands; nor can gold im¬
exactly the reverse of what the
nor
the
rion-repayable
eircumstancesof ourpost-warpo- ports,
credit extensions In which we in¬
Sition in the world called for, was
dulged during, the '20s,
even more to be condemned! 5 It
wU:, based on. national stupidity
Commodity imports can expand
of

ticulars

factor

unilateral lowering of
as I
have urged with

You

tariffs

our

regard

Department pamphlet which out¬
suggestions for the Charter

lines

administrative

protectionism, our
established policy is to bargain
our
own
tariff lowering for the
general; > reduction' of : barriers

for

Preparatory Committee, envisions
the establishment

ments

regulations, restrictions

discriminations affecting in¬
ternational trade: on restrictive
and

must be as

business

emphatic as in the mil¬
itary. We shifted the form of war¬

ernmental

fare

ments:

not

War

stop it. We must

now

did

include

both

strictions

and

export

Australia

import re¬
subsidies;
export prohibitions such as the re¬
cent action of Argentina on hides,

$tud -(pure i bred)
Merino sheep; international car¬
tels which maintain monopolistic

practices:

inter-gov¬

commodity

and

arrange¬
achievement and

maintenance

stop in¬

ternational conflict of every kind
or the outlook for the world: is
dark.
Points * of conflict to be
avoided

Interna¬

tainment:

The order to
firing in the economic field

World

the responsibility for their at¬
international
agree¬

stopped.

after

tional Trade Organization having
the following objectives as well

Economic warfare *in all forms
cease

International Trade Organ¬
This pamphlet, which is

the basis for the discussions of the

End of Economic Warfare

ization.

everywhere. This policy we have
followed in the Trade Agreements
Program.
v.; /:yv

must

familiar with the State

are

of high and > stablq
employment . and eco«

levels to
■

homic activity M+M
■■
Our contribution to the success
of this program

will be to stimu¬
public, business and Congress¬
ional attitudes sympathetic to its

late

attainment This will not be easy*
It is

challenge to our patriotism
far-sighted appreciation of
pur national interest. /; *:u
^
a

and

- ,

repeat* our attitude

toward

im¬

ports will be fundamental in 'the
determination of our whole post¬

the

measure

our

Of the United States

and markets for

order into the world currency

(Cpntinued frbm page 2471)
basis for interna¬ tices; a code of foreign trade pol¬
tional discussion.
icy dealing with governmental
The
instruction
of
American
Subsequently, the French Gov¬ trade barriers, restrictive prac¬
representatives abroad in con¬ ernment made asimilar 'announce-.' tices by private business and inter¬
crete ways of stimulating imports
governmental commodity agree¬
men

sit¬

international economic pol¬ uation, Currencies wobble and in¬
vite controls and ultimately de¬
icy. yyf yImports are certainly desirable preciate; when international trade
in themselves, unless they come volume is light or maladjusted.
in the form of the dumping of Other factors in the internal econjparticular articles and the break¬ omy of the country can and do
ing of particular markets, but we affect currencies; but if trade vol¬
bave anti-dumping legislation to ume is on, the increase, the diffi¬
jprevent that. If production is good culties within the country which
in Itself and the volume of pro¬ lead to bad fiscal policy tend to

prosperity, then imports are good
as "a method
by which we aug¬
ment our production. If X quan¬
tity of production represents a
satisfactory standard of living,
theii4 X1 plug; imports' 'miist represeiijt a higher and better standard
-of living..
I assume we have rejected the
doctrine of scarcity. If we really
b4ve; We can have no objection,
fcOnceivably, to the enjoyment of

Economic Policy

ternational trade, but also because
of the necessity for getting some

war

duction

The Foreign

the surpluses of

cqtjtntrifts^^holto^ ^
.

Foreign Representatives to

proposals

Stimulate Imports

as a

into the United States is essential

ments; and

and should be developed and pur¬
sued vigorously. Large American

Plans for International Trade

firms with integrated research or¬

Organization

Our objective is always an ex¬

■

covery. The International Mone¬
tary Fund will be able to accom¬

national

industrial

machine

and

new

uses

for

of the United Nations Conference
on

Trade and

cuss

plans

Employment to dis¬

for

interna¬
the conditions

broad

tional agreement on

and a suggested charter
International Trade Organi¬
zation.
This confe r e h c e was
of < trad^
of

called by the Economic and Social
Council of the United Nations;

made

"available

countries

abroad pounds to the extent of' a
billion dollars a year if there was
not a surplus of pound sterling ex?-

imports'

are

full of "tariff protec¬

tion " The National Council of Im¬

porters:' has

submitted

J'®'

the

agreement. , '
v
Formerly, nations acted uni-;
laterally in matters affecting their
international trade;. in doing so,,

they usually hurt their neighbors,
neighbors retaliated., and^ Jn

the

everybody was hurt and
everybody was mad; " Hereafter;
we- expect that actions: affecting;

the end,

meet

other countries will only be taken

again with the same countries to
negotiate specific • reductions in
tariffs, the elimination of dis¬
criminations in international trade
and to reach more definite agree¬
ment on the charter.

after
consultation,;; through the
machinery of the proposed Intern

.Next

spring,

shall

Then, next summer of autumn,
we
expect that there win be. a
world conference under United
Nations

auspices to which most of

re¬

tot what they could bring to those

Oct, 15, representatives of pansion in world economy through
ganizations should give time and our government have been meet¬ an increase in the production, dis¬
be alleviated. An
increasing vol¬ energy, as some are doing, to find
and
consumption
of
ing: in London ' with spokesmen tribution
ume of world trade is a solvent
new
raw
materials from abroad from 17 other countries as mem¬ goods.
<
.
*
•
*
for many evils and a condition for
Our method — international
that can be utilized in bur great bers of a preparatory committee
sound international financial

their countries and sought to find

constitution for

Since

products already
coming in which would increase
plish little in the way of currency their inflow. A;
study recently
stabilization if thefe'is not stead¬
made • by - the Tariff
.Commission
ily increasing trade, throughout reflects the
possibilities in this
the world.
regard for it shows the changes
Our import policy is also a
key in the volume and character of
to our foreign
investments..; The imports;; during
recent I years.
world is in dire need of our
capi¬ Steamship companies in foreign
th'd fr^ater abundance which the tal.
Recovery largely depends on Service havejong pioneered in the
production
of
other
countries us. Unless : we continue to
give development of imports. Their in¬
makes available to us. I am speak¬
money away in the peace period
centive has stemmed from busi¬
ing now not Only of the raw ma¬ as we have been doing during the ness necessity, to keep their ships
terials necessary to industry which war period, foreign investments
profitably engaged homebound as
we
do not produce in adequate can
only be made in appreciable well as outbound, but their influx
amounts, but I am speaking also volume on the basis of prospective ence has nevertheless been con¬
bf 'competitive raw material im¬ dollar
exchange available to for¬ siderable in helping to balance
ports and manufactured goods. eign countries in excess of that re¬ our
foreign commerce. Encourage¬
They pre all consumables and en¬ quired for current international ment of sales
promotion cam¬
ter into the vast pool of goods transactions.
paigns of foreign interests, either
which is the basis of our standard
Before
World War I,
Great government or private, should be
of living. I Historically speaking,
Britainwas
investingV abroad given by national trade organiza¬
it is relatively a new idea that
about a billion dollars a year. Up tions and local chambers of com¬
exports are the only desirable to the beginning of World War I merce.,
It is well known that our ad¬
thing in connection with trade. she was the great world banker.
Originally, traders went out to get Obviously, she could not have ministrative provisions affecting

tongs wanted by the peoples of

international trade organization.•.;?

the countries °f the world
invited

the

for

purpose

will be
of dis¬

cussing, and we hope accepting,
the draft charter of an interna¬
tional trade organization worked
out

mittee.

the

Preparatory

agreement

should come
reduc¬

reciprocal

discriminatory

tween
our

nations.

attack

v'. "'

The

purpose

excessive

of r

barriers

exchange is to bring about
rising standard of living for our.
people and for all peoples. r
Although this a Ion e cannot
guarantee peace, the realization
of higher living standards every¬
to such

where will create ja
to

climate cont
; of

the .,preservation

peace in the world, •«-: i'. *.' ?j r
: We know fropi. experience, that

kind of ecpriomip, ..warfare
by most nations jn the

waged

mT.
,

to argue before

ures designed to increase the ex-f
change of goods and services ben

elimi¬ .the
prac¬

not need

this audience the merits of meas¬

ducive

tions of trade barriers and

nation

Com¬

;
Out of this process

national Trade Organization,

attWMMitostn

THE COMMERCIAL & FINANCIAL CHRONICLE

'^Volume '164 ^Nunkber' 4542-*
■\

inter-war

period

sows

the

seeds

crease

g of discord and renders improbable

our

any effective intenational agree¬
ment on the essential elements of

ties

in the past decade; hence,

need to import

larger quanti¬

demands* of

and

prosperous

growing population.
It will require less than a bil-!
V Now, the principal criticism we
lion dollars a year for 25 years
hear of our program is this: that
to completely amortize all the for¬
we are'following the course pur¬
sued after the first World War in eign
credits - made available by
the stimulation of exports through our government since the end of
the war, incuding our contribu¬
foreign lending, and in - the end
that the results will be the same: tions to; ^the; International ;Bank
the International Monetary
an unhealthy expansion in pro^ and
duction followed by ! a collapse Fund. .After a few years, this
when the lending stops; inability sum should be provided by the
to collect the sums loaned abroad, annual expenditures of American
-

getting ourselves called "Uncle
Shylock," and, in the end, making
and not friends.

enemies

tourists alone.

World

}

War

.Experience

was

•.;:*•,

Many people still look upon the
United States as nearly self-suffi¬
As

cient.

Our; First

parties, supported by. labor/ agri¬

matter

true

never

fact,

any

this

the preservation of a high protec¬
tionist policy.'- The National For¬

roads;

eign

backward

Council

Trade

standard and it is much less true

has

been in the forefront

always

of the sup¬

achieved

only

through the

con¬

away

This

at our common enemies.
time we knew better.
We

have not asked our allies to re¬
turn in kind or in money things
^

the

war

even

sometimes

ex¬

ported, such as copper, lead and
zinc.
Today, we must annually
import $150,000,000 to $200,000,000
worth of copper alone, whereas

all of

the

American

donment

thinkable

people.

the

program

because

aban¬
is un¬

would

the

peace

conse¬

the

are; only two economic
to us.
One
leads

ward to

the

tragic mistakes

made following the first
The other leads for¬

prosperity and peace.Ji

Which road shall

•

take?"

;

•

The
me

answer

and

depends

on you

.and

140,000,000 othet Amer¬

icans.

(Continued from page 2460)

tone

the arguments, that are being ad¬
vanced in favor of permissive in¬

than

they have been, corporation.
There is, in fact,
however. They would be willing, something of the PAC in the pam¬
for instance*\ to; £ee5;.the; 'amend¬ phlets the' Ames'1 group has put
ments as now formulated them¬
selves amended to include some

out

the

rather generous use
that is made of cartoons and sim¬

with¬

request.

Excerpts

From

iy,
Committee's

The

•>,' Literature

Li "Despite

the fact that on Mar,
16, 1942 Stock Exchange commis¬
were increased
by approxi¬
mately 25%, seats are bringing
only 36% of their market value

sions

of ten years ago. Volume of transactions is practically the same as
in

1936 and the Dow-Jones

^aver¬

higher today. The Ex¬
change needs more active mem¬
ber firms, more listings, more vol¬
are

ume

and

increased

opportunities

the public.

serve

...

—

"By the
means

the

i men

substantial

afford to enter the

can

curities

.' V

nature of the busi¬

very

only

ness,

■

their

comments "will

held

ages

Advocates of Permissive Incorporation on
NYSE Organize to Force Vote on Question
The advocates of incorporation
are a little more conciliatory. in

mitting

open

World War.

stant watchfulness and support of

Welk I

There

porters of this program. - } £ / ?*
Our objective can
be finally

modern

afraid this does de¬ today than ever before.
scribe r-what happened after the.
We Require
first World W^r, but it tells only
Copper, Lead and Zinc
$jart of -'the story.
In that war,
Due to the serious depletion of
we ran debts against our allies for
the billions of dollars of muni¬ our natural resources during the
tions and supplies which 'we fur¬ war', we must now import many
nished'them and which they shot metals and minerals which before
*.

step backward with serious

culture

^nd.ipdusttyv. and opposed quences" for
of,suph goods; to; satisfy : the! only by special interests seeking world.

peaces

2.509

business

Exchange.

members
persons

se¬

r.of

wealth,

their; individual income
are high.
Partnership taxa¬
tion—being the tax on the part¬

taxes

at the individual income tax

ners

changes at least in the general plified text, opponents contend. rates—presents a serious obstacle
plan which the opposition might The opposition thinks no reply is to many men of integrity and high
character who would otherwise
wish to see there. If there is one necessary,
for instance, to the
thing the advocates want more claims made in one of them that welcome the opportunity to ■?. be¬
come
members.
Thus ■ as ;old
even than incorporation itself at
permissive
incorporation would
this moment it is; the chance to increase the value of a Stock Ex¬ members retire, they are not being

in our
discuss
points of disagreement change seat. The price of seats replaced by new blood. K;./
common defense.
We knew they before the war we sometimes ex¬ with
"There is, today, a ready-made
anyone who will argue the has been higher without the aid of
could never be returned.
ported .copper. .•..' :
question with them. There is so incorporation, they point out. Agi¬ market for ■ seats which is not
V- ,i Following the first World War,
Indeed, we are today net im¬ much
that is necessarily intangi¬ tation for permissive incorpora¬ being utilized. Among the more
it is true that much American porters, of practically all the im¬
ble in what the opposition sees as tion; goes back 35 years and a than 1,000 incorporated security
capital was loaned and invested portant metals and minerals ex¬ undesirable in
firms reporting to the SEC, many
consumed

destroyed

permissive incor¬ flurry of activity on the part of
coal and oil. Who
poration that it is d o u b t f u 1 those promoting the idea during
this was going on Congress piled knows how long we can go with¬
whether much headway is possi¬ the coming month isn't going to
out importing oil?
one high tariff on top of another*
ble in this direction.
change the hard and stubborn fact
In the past, the emphasis in our
making it extremely difficult for
Discussion can be a wholesome the industry doesn't want permis¬
foreign trade has been on ex¬
foreigners to repay.
sive incorporation, the opposition
;
In spite of this, while there have ports; within the near future it influence, however, and talking
the
question over in the open thinks.
been some - extremely bad spots, will probably be on imports. This
The proponents are insistent in
our
investors abroad have not is true because ;of our shift from might have certain salutary re¬
sults. In any event, the proponents claiming that the tax laws dis¬
debtor to creditor; because of the
fared badly on the whole.
It is also true that while

abroad1.

A study by

the Department of

Commerce shows that on an ag¬

gregate
investment abroad
of
approximately $13 billion, U. S.
investors received during the-21-

period,* 1920-1940,. approxi¬
mately $12 billion in interest and
dividends. * At- the end of 1940
their' foreign investments were
still estimated to be worth * nearly
$10 billion.. Put another way,
American investors got practically
per unhum cntheicmbney in¬
vested uhroad for 21 years plus
year

capital,
70% estimated
worth 100 cents on the dol¬

the return of 30% of their

with the remaining
to be

lar.
I

•

Investors in American railway

(bdnds|hn(^ American ^eal, estate
exaimple» did hot far^

.^ 4bonds,
'so well.

This time we know better than

to raise tariffs.

On the contrary*

propose to make reciprocal,
selective reductions in tariffs and
we

to clear away

.other impediments
exchange of

international

the

goods 4n order that our debtors
may have an opportunity to repay
us, may continue to buy our surpluses,' and in order that our
standard of living and theirs may
be raised, not lowered.
,

But, the critics are saying "That
well. Your policy will

Is all very

be very popular while the?pro¬
ceeds of your loans are being

spent with resultant increase in
exports, in production and em¬

cept

two

courage new capital from entering
sure that such results as
conceivably may be obtained this the business as now constituted
and that permissive incorporation
growing and * prosperous popula¬ way will be entirely in their favor. would
change all that. Through
They think, however, that discus¬
tion.
s.}'
sion willclear up points of doubt the legal and tax counsel of Sul¬
No nation in modern times can
or
of misunderstanding and so- livan & Cromwell, the proponents
long expect to enjoy a rising
are .trying: hard
to/ build up a
remove; obstacles
standard of living ; without- in¬ consequently,
standing in their way. No one strong case.- The opposition, how¬
creased foreign; trade.
?
'
will argue over the necessity of ever, doesn't see how the propo¬
Because of our dependence-upon
nents can be so confident that any
imports of strategic metals and having as much light on the ques¬ tax
advantage at all exists in in¬
tion
as
possible. It has been
minerals, what happens to Amer¬
the opposition, iri fact, which has corporation..
ican owned reserves of such ma¬
Besides Mr. Ames, members of
been
the
most vocal in
recent
terials-; abroad is a matter of
so
has tended to the committee favoring passage
national concern. We ask no spe¬ months and
throw the most light-on the mat¬ of permissive incorporation are
cial privileges.
American enter¬
Harold L. Bache/ of Bache & Co.,
ter; r
prises in the foreign field require
New York; Lyon Carter of EstaAn aggressive last-minute cam¬
only equitable treatment and-the
brook
&
Co., B o s t o n; Paul
right of the free, flow of their paign to get the Board of Gover¬
H. Davis of Paul H. Davis & Co.,
nors to- refer the question of inproducts to market,
Chicago; 'Gayer G. D o mi nick
IThe ^rights of all legitimate en¬
of ID o nvin i c fc; & D omi n i c k,
the ' Rkch'&hge for a vote has been
terprises established by U. S. na¬
New
York;
Herbert
I.
Dunn
tionals;Ufaoad 5areof; concern; to launched with much publicity by of Schwabacher & Co., San Fran¬
a
committee headed by Amyas
the government.
They are dealt
cisco; Edmund du Pont of Francis
with
in treaties
of friendship, Ames of Kidder, Peabody & Co.
I. du Pont & Co., New York; J.
who in his own person has been
commerce and navigation similar
Clifford Folger of Folger, Nolan
sort of spearheading the move¬
to the treaty which we signed with
& Co., Washington, D. C.; Robert
China last week.
We are actively ment in favor of permissive in¬ J.
Hamershlag
of
Hamershlag,
at work on a major - prpgram for corporation. There are some outBorg & Co., New York; Charles B.
negotiating treaties of this char¬ of-city members on the Commit¬ Harding of
Smith, Barney & Co.,
acter
with
many : governments. tee—as, for instance, a few in Bos¬ New
York; Edward H. Hilliard of
The program is designed to mod¬ ton, Chicago and elsewhere in the J.
J. B. Hilliard & Son, Louisville;
ernize and extend the coverage country—but the New York mem¬ Warner W.
Kent, Ingalls & Sny¬
bers
gather for
weekly noon
of existing treaties, some of which
luncheon
sessions,
constituting der, New York; Mead A. Lewis,
are
more
than a century old.
Dick & Merle-Smith, New York;
themselves into something of the
These instruments determine the
A. Hawley Peterson of Roberts &
basic treaty rights of American nature of "minute men" to rush
iiito whatever quarter may be dis¬ Co., New York; Edgar Scott of
nationals, corporations, goods and
vessels ;in "foreign countries.1 In closed as weak for their cause Montgomery, Scott & Co., Phila¬
most respects they are completely and; otherwise, to promote their delphia , Winthrop - H. Smith of
mutual, assuring the other- coun¬ general plans.1 The Committee is Merrill

depletion in

and

the

start

shipment -of

paying

back

goods, into - the

United States in competition with

production, then you will
What will happen; production
drop,
unemployment

our own
see

here ' will

will set

in, and the depression will

be on."

;

•

This view fails to take account

With
ri

We Need Imports
a

the wants

;

be eligible for Stock Ex¬
change
membership
under
the
strict regulations provided for in
the permissive incorporation
amendments if they are adopted.
.

that as a result of its
general atmosphere
surrounding the question of in¬
corporation will be considerably
Trade Organization with respect altered by the time the Board
meets again to consider the sub¬
to trade barriers,
ject.
Now, these plans and programs
The opposition* is not afraid to
which we have been discussing
same

rights- as are ob¬

tained by the United States. They
complement the provisions of the
draft charter of the International

very

sure

activities the

Lynch, Pierce, Fenner &

evening would have little
meaning in these times if they did
not tie right into the problem of
world peace.
Not all wars have
had
their, origins
in
economic

zation

where

the

Council is

% the

of them have.
in the organi¬

United

Economic

Nations

and

Social

principal organ along
with the Security Council.
Our program for expansion of
world economy and the promotion
of economic peace among nations
which'will always be associated
a

with'the beloved
Hull has become
gram endorsed

name
a

such

firms

would

Y.OJ'W.

Beane, New York; Thomas F. Sta-

Watts,'. Jr.,

Henry

of - Mitchel,

"YVhitner & Watts, New York, and

of Cordell

national pro¬

by leaders of both

very
real capital
involved in the securities

"There
risks
and

are

brokerage business.

four

straight: good

Despite

years,

m ariy

firms have found it

impossible to
capital or reserveReserves are extremely

their

bolster

positions.

important, for instance, to special¬
ist

firms

others

maintain

orderly

which

markets

must

under

all conditions.

Many firms sotiner,
capital
replace that now in the busi¬

later may have to raise

To such firms the

ness.

optiph of

incorporation may be extremely
important, In the long run, it is.
no less important to the member¬
ship
whole.
'/

"Partnership taxation has takers
earnings, of the past four years
which, under corporate tax laws,
might properly have been left in
the business, if needed.
It is un¬
realistic to expect, a sufficient re¬
duction in personal income tax
rates for the higher
bracket^ to;.
enable

partnership F^bstartiqllv
working capital or build
up reserves out of earnings.
Con¬
gress has recognized the impor-;
tance of permitting corporations
a

to add to

to maintain a strong fmanciaLpOr?
sition.
Under corporate tax laws/
no penalty if corporations;
etarne4 ^urpslus tand accu¬

there is
add

mulated
of

reserves

;

"Individually

for the

nurnose

meeting reasonably needs of the

businss..

ley of Reynolds & Co., New York;

and

■

collectively,

believe that the amendments,

if passed,

will: 1. Enable the Ex¬
serve the public better.
2. Increase the volume of btisir'

Henry G. Riter 3rd of Riter & Co., change to

•

causes, but most
This is recognized

number

join if they could do so without
having to forego the advantages
of the corporate form.
^

population,
accompanied • by
a
50% expansion in domestic econ¬
omy, we need more
of foreign
goods1 of all ■ kinds.
Much larger
imports of raw material are re¬
quired to feed our greatly ex¬
panded facilities for the manu¬
facture of producer and * caoital
goods. '" Our - productive facilities
in the consumer goods field have
shown comparatively little in¬

can't be

would

substantial increase in

natural resources

this

of important changes in our do¬
mestic economy in the past decade.

our

because

ployment,- but just wait 'until the try the
borrowers

—

New

York.

Efforts

are

being

3. Augment the number, of
listings.
4. Make for financially
it,is convinced. it has the ma¬
Excerpts from the current liter¬ stronger firms. 5. Permit contin-.
jority on its side/ But it thinks a ature, being distributed by the uity of capital and management.
vote .would 'succeed ; in stopping
6. Increase the value of seats."
committee are given below.- The
ii—a—"—the agitation for only a short time.
"Chronicle'* welcomes the com¬
The proponents of incorporation
have

made to

vote taken on the matter

ness.

enlarge the committee.

;

would

only

rise

again

another mittee and

to demand another vote and
thus it would be year after year

year

without end.

Taking

vote now,

consequently, would be a rather
futile gesture, the

opposition feels.

the

New

and the
are

;

Stock

Exchange

partners with whom they

Atomic Energy Comm.
Lewis L. Strauss has terminated

affiliated, to make: use of its

columns for

general discussion

opposition plans no coun¬ of the question. Communications
ter-campaign, either. The pam¬ should be sent to the.Editor, The
phleteering activities of the pro¬ Commercial and Financial Chron¬
ponents, says the opposition, are
icle, 25 Park Place, New York 8,
"New Deal-ish" in character and
reveal the essential weakness of N. Y. The names of those sub¬
The

Lewis Strauss With

all other members of

York

his

membership

Kuhn,

Loeb

Street, New

Co.,

the

firm

"William

York City, to ent||r

the service of the U. S. Govern•>

ment

v'-';'

••• :

)

member of the Atomic

Energy Commission.

THE

2510

lent

Tomorrow's

red-hot
No

munition.

Thursday, November 14,

1946

grist, it is Gulf, Mobile and Ohio bought
market, am-- at 12, stop at 10.
Current

newspaper

hardly

COMMERCJA^ & FINANCIAL CHRONICLE

the Re-

sooner

price about 13*4. Internation-

publicans took over, it was a al Paper bought at 43, keep
foregone conclusion that con¬ stpp at 3?, current price about;
(Special to The Financial Chronicle
trols would go out of the win- 46.
Boeing is the only stpck
Dean Witter & dp., .632. South
in the list to turn spur. It was
CHICAGO, ILL.
Albert JF. Spring Street.
4pw. But already statisticians
Henderson is with Paul H. Davis
::vi
are.using up slide rules to es¬ bought at 23 with a stop at & Co., 10 South
La Salie Street.
(Special to The'Financial Chronicle)
;
It broke that a number
timate
what various
com¬ 21.
LOUISVILLE, KY.
Joseph Jfc. !
of times in the
.(Special .to The Financial Chronicle)
panies .will make the next
past 4yeek.
Fife ;has been jadded to the staff pf
.CHICAGO, ILL. — Harry R. Berwyh: T. Moore & ,Cp„ IVtarioa %
quarter now .that .the "cops" -Trjue; the break was ,only ^

Markets
Walter

—

Says—
==By WALTER WHYTE=

•

filling have been fired.
fraction,, hut 1 prefer not to
meaningless. Market seems to
So you should be
It is interesting to note that split hairs.
be marking time until some¬
If there is any fur¬
General Motors has raised the out of it.
thing happens.
Suggest you
ther change, additions or sub¬
price of cars and trucks a
do the same.
;*/•; hundred dollars.
Products of tractions, I'll give them to

Current

backing and

The election is

and the

over

companies will alsp .go ypu next week.
More next Thursday;
up in price which
should
—Walter Whyte
make for higher grosses, as¬
fThe views expressed in this
suming of course that the ul¬
article ,do not necessarily at any
timate buyer has the dough time
coincide ./with those of the
with which -to /buy all these Chronicle. They are presented as
other

•New Deal is out. This didn't
as

,come

surprise \to any¬

body. And if I went out on a
jimb in predicting it, I wasn't
taking too much of a chance.'
Where I fell down was to

At this point is

gadgets.

new

those of

mthor.oriiy^

decline; came first and result¬ theory

Announces New Officers

rude halt.

There comes

Group

time

I have studied the action of

KANSAS

CITY, MO.—-At the
meeting of the Southwest¬
-Group of the Investment

ern

when

tails

con¬

know

don't

the obvious conclu¬

course

academic.

Naturally it hearing the same kind of
Somebody things hefpre' J ak° remem¬
else may see something that I ber what happened.
§6 far as the market is con¬
(ion't see. But being what the
people in show business call cerned it is marking time try¬
ham, I refuse to 'recognize ing to make something out of

such

somebody hits

over

head with it.
The

until

possibility

; a

the

removal

;

news

all

But if it

was

action/ it thas riot decided

its

price
excel-

That being the
take

likely to be.
I suggest

case

staud-pat position until

clarification-appears.
This doesn't

tion
V

Established 1858

H. Hentz & Co.
York

New
'

•

York

New

York

New

Commodity

New

Exchange

Orleans
And

Exchange
Inc.

Exchange,
of

Cotton

Trade

fV,

Exchange

other Exchanges

NEW YORK 4,
CHICAGO

DETROIT,

GENEVA,

.either show

ac¬

nice profit,

they violate previ¬

ously determined levels—the
■stops. Here is the situation
to date: Dresser Industries

bought at 17 is

about

now

remairis at

Stop

15.

Bldg. -7

N. Y.
PITTSBURGH

''f

'• 7

I-

k*"

Bankers
held apt

,-V//

Members

New

fit1

Exports—Imports—Futures

Private
San

Curb

>
f

Teletype NY 1-928

—

Santa

Oakland
Fresno

Sacramento

—
.

•

Chronicle)

Goldy

with Rey^

are

.jCp.

■

(Special to, The Financial Chronicle)

MIAMI BEACH; FLA. -L
Alex
Jr.
and
Robert
Ci
Rogers
have
become
affiliated

Campbell,

with

Atwill

Co.,

1 ;'

605

Lincoln
': >7;.*

Brown is

Amos How**

—

associated

now

(Special to The Financim. Chronicle)

;

MINNEAPOLIS, MINN.—Henry
J.

Forst

Keenan

associated

now

with

Clarey, Incv National

Shillinglaw, -Bolger ;& ,Co.. Building;'
120 South La Salle Street.
(Special to The Financial Chronicle)

XSjpeclal to The Financial Chronicle)

CHICAGO, ILL. — Robert B.
Badger has joined the staff of Tax
Bond Co., 141 West J a c k son

NEW ULM, MINN. — Peter At
Lokken and Percy C. Strom are
with State Bond & Mortgage Co.,
26V2 North Minnesota Street.

Financial Chron^clv)

Co.,

Roth

Bryan is now with
Knowiton &
Co./ Bank of

Terminal ica Building.

sas

Chronicle)

•.»

OMAHA, NEB.

Chronicle)

—Fred;s/^arrf'

Clarance kin, Jr. is with Smith, Landeryour

—

(8pecial

to The Financial

C.
Evans,
Company, Kan¬

Harold

.City, Mo.;

Vice-Chairman:

The

National

Bank

--.77?.

Financial

Chronicle)

PORTLAND^ PPK

Chronicle)

Michigan

Bee-,

Harry

M. McKirn, City National

;

—

(Special to The Financial

" 1■

'1 ' ••'7 .'"

v": J

and C,

B. Page, R. J. Edwards,
Inc., Oklahoma City, Okla.

(Special to.The Financtal

ST. PAUL,
Russell

(Special to The Finan.cxal Chronicle)

DETROIT, MICH.

/ *
yincent G.

Chronicle)

Burns is

wi^h Andreyir Cv Rejd

with

Feromack

;

financial Chronicle)

KANSAS CITY, MO.

— Matt W.
Francis A. Mc¬
Laughlin are now with Prugh,
Combest j& Land, Inc., 1016 Balti¬

and

Anderson

Avenue.

(Special tO .the flnancial chroniclf)

CITY, MO.

—

Alvin

John Ju,

Building.

•.

(Special to The Financial ..Ohronicls)

SAN

FRANCISCO,
L,

CALIF.

Larsen and

'■
—

Cecil A.

fiave been added to the/

staff

merly yvith B. C. Christopher
CO,.::';;;./'

Bank

Morgna

The Chesapeake .& Ohio Ry. on
Nov. 7 awarded, subject to Inter¬

KANSAS

—

Clancy is connected with Herman,
Hampton & Co., Salinas National

Norman

(Special to The Financial Chronicle)

Siebert

Securi¬

SALINAS, CALIF.
(Special to The

CHRoiiKw/'v""' ''

MINN.-HFraneis

Pean Jos¬ ties

—

associated with
Prescott, Wright, Snider Co., 916
Baltimore Building. He was for¬

Commission

—

Shears is with C. G. McDonald &

Halsey, Stuart A Go.
Offers G. & 0. Eq. Trusts
Commerce

LOUIS/ivfp.

ST.

Co./ Guardian Building,

the

Mo. ;< Wayne J. Estes, Estes, Sny¬
der & Co., Inc., Topeka, Kans.;

Schwabacher & 'Co., 606

Market Street.

now

ap¬

proval, an issue pf $1,500,000 of
(Special to The Financial Chronicle)
serial equipment trust certificates
Lbs ANGELES, CALIF. —
of 1946 to Halsey, Stuart ;& Co.
John Fisher has been added to the
Inc., and others pn their bid of
staS of Bogardus, Frost & Ban¬
100.071 for 1 % % obligations. The
ning, 618 South Spring Street.
bid represents a net interest cost

(Special to

SOUTH BEND, IND.—Daniel FJ
Kalczynski JsMc-V

J31
/

Gann Securities ; Co.,
Washington Avenue,

West
,

Webber is mo\y with J. W. Brady;
George H. 6c Co., 411 North Seventh Street.;

—

&"Co^ Guardian Building,; /

three-year term: Russell Siefert,
Stem Bros. & „Co., Kansas City,

The

LOS

sociated
&

dated

to be issued to finance in part

steel caboose cars,

Tifff Prothers,; 1387

with

—

with

Edgerton,

Co., 618 South

(Special to The Financial

WINSTON-SALEM,

Wykoff James

Spring Street.

staff

P.
of

Willis
Alex.

has

Chronicle)

N. ,€./ —
joined the

Brown

O'Hanlon Duilding; V:;-:
ANGELES, CALIF. —
James E. Breaux is connected with
Wm.
R.
Staats Co., 640 South

Sons,:

V? <■'

type 2-8-4

with 21,000-

to cost

approx¬

//'./"•/•

Sidney S. Wormier Dead
Sidney' Stickney

Spring Street.

LOS

ANGELES, CALIF.

of New

Kenneth

affiliated

Thayer

with

Meyer, 325 West

has become
Frank &

Stern,

Eighth Street.

(Special to The Financial

LOS

Gilbert

—

Chronicle)

ailment

Yprk City, died of a heart
at the age pf >58. Mr.

Wormser
of the

was

of Frazier

'Co./ hut withdrew
He had

1941.

formerly a member

brokerage firm

Jelke
7

"Wormser,

McGeoch & /SVormser

partner in

(SpCclal to The Financial Chronicle)

starting in 1947.- They

imately $1,896,717. c ? '

ciated

LOS

instalments of

seven

MASS/—Ar-!

SPRINGFIELD,

thur M. P. Clark has become asso¬

(Special to The .Financial' Chronicle)

$150,000 each, payable Dec. 1 of

the purchase of

ANGELES, CALIF.

Bernard L. Rogers has become as¬

Corp., at

1946, and will mature: in
annual

(Special to The Financial Chronicle)

certificates

certificates will be

equal

Main Street.

of approxi-

reoffered Nov. 8 byHalsey,

Dec. 1,

Corp.,

(Special to Thk Financial Chronicli)

Bank & eph

Trust Co., Kansas City, Mo.
Executive
Committee for

DETROIT, MICH.

peka, JCans.
Secretary and treasurer: James

state

Frank

Amer¬

•

COLO.

;

George

—

Robert W.

—

Dixie
;

to The Financial Chronicle):

OAKLAND/CALIF.

with Garrett-Bromfield

(Special

corning year:

Chairman:

gallon tenders, and 50 30-ton all-

Barbara

with

;

freight locomotives,

Wires to Principal Offices

Francisco

Monterey

Salle Street.

CHICAGO, ILL.

JL M.McKim

Commerce Trust

are

New York 5, N. Y.

7-4150

Clarence Wolf

each year

Exchange

14 Wall Street

COrtlandt

DIgby 4-272T

York Stock Exchange

(Associate)
Chicago Board of Trade
*

York

■

\ ;>

— Douglass C.
i^now; Ponnpcted/: with

■

bV-

the

The

New

'i-

ficers and jmemhers of the execu-!
Buhl Building.
tive committee .were elected for

99 WALL STREET

SUGAR

Financial

Stanley
A. Staiger has jpiped .the staff ,o£
Field
DETROIT, MICK/— Thomas E.
Go* /infe. D; S./;Bank
Association of Am^iSa
Kane has been added to the staff
Building/
•/// //
Oct; 31 the following ^of¬
of the First of

Beecroft

Harry

according to maturity.

Schwabacher & Co.

and

Alfred O'Gara &. Co*, ,134 South Road.-7

prices to yield from 1% to 1.85%,

Pacific Coast Exchanges

CHICAGO/ILL.

Navy.

A'*;

Orders Executed on

The

Co., Omaha
& Co., Security Building. He has Building.
recently been serving in the U. S.

and the First Cleveland
"

LAMBORN & CO,

5, N. Y.

•

prd

Securities

.(Special .'^to The Financial Chronicle:)

Daane

Stuart & Co» Inc., Putnam & Co.

V</.*

;

Jess W. Tal-

—

(Special to The Financial

were

MIAMI, FLA.—Charles

Company of
Chicago,U34 South La Salle Street.

Filkins

ha§ been added to the staff nolds

First

DENVER,

mately v-1.736 %,

Securities

Chronicle)

(Special to The financial

basis Jo the company

Pacific Coast

SWITZERLAND

NEW YORK

18V&.
N. Y. Cotton Exchange

that

postponed indef¬
initely. It means that stocks
are
to be held until they

Exchange

Curb

Board

.Chicago
iV

Stock

Cotton

mean

can

be sold if

Members

also

stocks

holders

that

cott

From croft, Beecroft, Cole & Go., Tp~

all the cross-currents.

what the result is

■

biggest piece of

controls.

the

v CHICAGO, ILL.

.Iryiiiff
Building;

take."

vidual to

/Special

.(Special to The Financial

CINCINNATI, OHIO

The result is
fell that

has its drawbacks.

;

sion is that, because

•

Salle

C. Moster is with the Weil,

hear

I can't there is enough pent-up de¬
see anything, there is nothing I mand to prevent that .sort pf
to see.
This is always a satis¬ thing, to last us well into 1950
factory attitude forvthe indi¬ or ^is it I960? I remember

Taylor Building,

(Special

production and closes
So buying power is

cut still more.

South; La

((Special to

plants.

any

than I did the last week.

business, I'll

that

fess

Chap-

Boulevard.

at the whole

Co., 208

Street.

annual

there aren't
the market for the past few enough people with money
days until my eyes- almost around to buy- So then the
popped out. I looked at the price comes down.
Meanwhile the company
volume, the ranges, / the
which discovers that demand
groups and finally the indi¬
vidual issues; | ?After looking has, faUen off,: stops or cur¬
r

Farwell,

..(Special vto The Financial Chronictx)

ed in all sorts of second guess¬

with

So'wesfern I8A

eearcely illuminating.

man; &

expect an immediate upsurge Where 4h.e old law of supply
to last a couple of days fol¬ and demand homes in, at least
lowed by a decline.'^ But the; that is what I've read.
But

and practise have
nothing but a nodding ac¬
ing and hindsight remarks quaintance.
Unfortunately
which were interesting but this practise usually comes to

Warner

been

member of

the

New

ANGELES, CALIF. —
V. D. Jones is now with since

York

1923.

Stock

(Exchange
•

•Volume-164

-THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542*

Securities

Now

S§iltl^^

2511

Registration

■

ADDITIONS SINCE PREVIOUS ISSUE

—

Acme

be added to general:funds,

ElectricCorp*, Cuba,N. Y.
,
filed ;I32i7kkf sharespar); common sto^
Underwriters~Herrickj: Waddell & Conine,* and, First '

june

end expansion

progj^ljta plfei"ing date indefinite.

offered, publicly at, • $$

Colony Corp. i Offerlng--Tq; be
the

sale

mainder for
n

JV.*'

£*,- '

stock

stock.

Price

other

net

Offering date indefinite.

Corp., New York.
proceeds, with

Proceeds—Net

funds; will be used to redeem $20,000,000 of 7%
/ f

Indefinitely postponed.

Refining Co., Philadelphia

Oct. 29 filed 293,000 shares ($100 par) cumulative pref¬
stock.
Underwriter—Smith, Barney 8c Co., New

erence

York.

Offering—Stock will be offered for subscription
stockholders, on the basis of one share of

common

stock for each nine shares held.
Unsub¬
scribed shares will be sold to the underwriters who will
reoffer it to the public.. Price by amendment.
Proceeds
—A maximum of $15,540,000 of the net proceeds will be

Dillon, Read & Co. Inc., White Weld & Co., and Shields
Co. (jointly), and W. C. Langley & Co. and The
First Boston. Corp. (Jointly). Offering—Price to public
by*amendment.
' '
\''

applied to redemption of the company's cumulative pre¬
ferred stock, convertible 4% Series A, at $105 a share.
The balance will be added to general funds for corporate
purposes including repayment of obligations, acquisition
of additional production,; and expansion of refining,
transportation and marketing facilities.

Sept.; 27 filed 180,000 shares ($2,50 pa?) common, Under1'
writer
White, Weld & Co., New York. Price —« By

additional number

determinable

only after the

re¬

Beaupit Mills, Inc., New York

preference

sults of competitive bidding are known. Underwriters—
To be filed by amendment.
Probable bidders include

being sold for the. account of certain stocky

Prices—$20 a share for the preferred, and
share for the common; Proceeds—Company wUl
proceeds to fully discharge secured demand
notes, mortgage notes and partial discharge of de¬
benture indebtedness. Offering temporarily postponed.

Corp., Bedford, Mass.

amendment.

American, Water Works Co.* Inc., N. Y.
March 30 filed 2,343,105 shares of common (par $5) plus

Aero vox-

dividends.

holders.

$11.50
apply

Co., New York

cumulative preferred stock at, $115 a share plus, accrued

Livingstone & Co.
Offering—Company is offering the
50,000 shares of preferred,, while the 82,000 shaj*eq;0f;:
are

American Locomotive

stock. Underwriting—Union Securities

u't.

Corp., Trenton, N. I.

29; filed 5(^000 shares, 5% cumulative preferred
($20 par) and 82,000 shares ($1 par) common
Underwrlters-~G,' Ll- Ohrstrom & Co. and S. H.

tommon

the company to pay off bank notes of about $1,100,000
and to. purchase additional machinery and equipment
in the amount of $1,200,000.

July 18 filed 100,000 shares each of $100 par prior pre¬
ferred stock and $100 par convertible second preferred

re?

being sold by three stockholders.
proceeds of $2,300,000 will be used by

Estimated

Atlantic

working capital.
'"

Acme-Hamilton Mfg.

Aug.

jmd the

from the sale of all of the preferred
shares of common. The remaining 50,000

100,00

shares of common are

Sept. 25 filed 75,000 shares of common stock (par $1).
Underwriter^-Riter & Co. Proceeds—Stock being sold,
for account of Harry Bloomberg, President. Price—By
amendment. Offering date indefinite.

of 68,880

will be used for- machinery and equipment,

and

share and $12 a common share. Proceeds—Company will
receive proceeds

^^A^erican, Limoges China Corp., New York

share.

Proceeds—Company will receive proceeds from
shares and four selling stockholders J
the? proceeds from the sale of 63,860 shares. Company. •
ftlso will receive proceeds from the sale of 20,000 war-t
rants; for common stock to underwriters at an aggregate
price of $200.
Of the net proceeds ($292,940) $50,000
Will be used to pay current bank loans; about $20,000

however,;thecompany antici-

"26;

Aug.. 22 filed $1,500,000 of 5% sinking fund deb^tures,;;

American

due

amendment. Proceeds—Of the

Zinc^Lead: % Smelting Co.,, St. Louis

1961, and 50,000 shares ($1 par) common stock.
Sept. 6 filed 336,550 shares common stock (par $1). Un¬
Underwriter—Ames, Emerich & Co., Inc., and Dempsey
derwriting—No underwriting.
Offering—s,toc^ VfU be
& Co., Chicago.
Offering—The debentures will be of¬
offered for subscription^ t0? common, stockholders, in
fered publicly. The common shares will be issuable upon;
the ratio of one additional; share for each two shares
to exercise of stock purchase warrants for purchase of:
held. Unsubscribed shares will: be offered for subscrip¬
Common stock at $2 a share above the bid price of such
tion^ to officers and director? of the company Price^-By
common on the effective date of the registration.
Com¬ .^amendment.
Proceeds—Working capital. Offering inpany will sell warrants for 25,000 common shares to the - ?
v"nn^fnnn^T
underwriters at 10 cents a warrant. The remaining war-' ~
- ■
rants, will be, sold, to officers and employees of the com*
: ?if ;Ansley Radio Corp., Trenton, N. J.
pany. price—Debentures at 98, Proceeds—Company \yill
Aug. 29 filed 70,000 shares of Class A cumulative con¬
Use $f,025,000 of proceeds of debs, for payment of an
vertible preferred stock ($5 par) and 70,000 shares of
Indebtedness to Bankers Trust Co., New York. Balance,
common (50c par)' and
warrants for 5.9,pQ(^;shares of
will be added to working capital. Offering postponed.
common stock to be sold to underwriter at 5c per share
"Warrant and exercisable through, Oct. l,,195V for pur¬
All; Lanes, inc., Portland, Me. ;
•
chase of common at $1 per share. Underwriter — Amos
Oct.. 9 (letter of notification) 15,009 shares eaph' of pre*:
Treat & Co. Offering—To the public in units of one;:
ferred/endCommon..;. 'Offeringprice, $10 a preferred;
share of preferred and one share of common.
Prices^—r
tore. and i cent, a common, share. If offerings, are made
Unit ob one share of- preferred and one share of
in. the.state of ;h4ainei
be made by Prederic^
"common.. Proceedsrr-To retire bank, loans of approx¬
C* Adams 8cCq„ Boston, -To complete plant and, equip¬
imately $100,000, to purcbasd; wopd-wdrking machinery
ment and to provide working capital. ^
\
4 - >
•
mid for- working capitalv
Tena^oraj^ postponed.

total, 140,000, shares are
being sold by St. Regis Paper Co., New York, and the
remaining 40,000 shares are being sold by I. Rogosin/
President pf Beaun.it; lyiills, Inc.

B^rbiglia, Inc., Kansas City, tylo.
Sept,; 13; (letter of notification)

41,000 shares of 5%
$6 par preferred. Offering price,
share. Underwriter—Estes, Snyder & Co., Topeka,
Kans. To pay outstanding indebtedness and expenses and
to open five additional stores in Kansas
City, Mo. Offer¬
cumulative convertible

ings postponed indefinitely.

Berg Plastics & Die Casting Co., Inc.
(11/25-29)
Oct. 31.

American

Broadcastlijg Co.,:

^ Y»
>
shares. ($1 par) common stock.
Underwrite!-—Dillon, Read 8c Co. Inc., New: York. Offering—A maximum of 100,000 shares may be sold, by com¬
pany to persons, firms, or corporations with whom, the
corporation had network affiliation agreements on March
3b The remainder will be offered publicly. Price by
amendment. Proceeds—To; prepay notes, payable to ac¬
quire radio station WXYZ, to construct broadcast transmitter for station KGO at San Franciscp and for* working

June

filed

Capital.
%

Arkansas

950,000

' 1

American

Building; Cojrp.,

Dover* Pel-

Nov. 5

(letter of notification), 20,000 shares each ($10
par) 5% cumulative preferred and no par common. Price,

$10

a unit consisting of one share of preferred and one;
share of common. Underwriter-^E. M. Fitch & Co., Phila¬

delphia.. Proceeds—For additional mto^e^r working
capital and other corporate purposes.

Western Cjas

pie 8c Co., Inc,
tools and

(par $5).
Underwriters—Rauscher, Pierce 8c Co. Inc., and fl. fL
Rollins & Sons Inc. Offering—Stock will be offered tp
the. public. Price by amendment. Shares are being $old
by six stockholders.

raw

Proceeds—For acquisition of machinery,

materials^ and for working capital.

Bethlehem Steel Corp., New York

•

(ll/22>

Nov.; 1 filed $50,000,000 of consolidated mortgage 30-yeay
sinking fund 2 %% bonds, Series J, due 1976. Under*
writers—Kuhn, Loeb & Co., and Smith,; Barney & Co.
Price by amendment.
Proceeds—To provide additional
funds for

Co.

June 5 filed: 33,639 shares bt common stock;

Armour and

(letter of notification) 75,000/shares (10c par)
Price—$4 a, share. <v Undierwriter-r-E. F. Grilles^

CQinmon,.

cos^ of additlonii, and^ "i^nproyements tq steel

plants; of subsidiaries,

Birmingham Electric Co.,

Birmingham, Ala*

NoVi 1 filed 64,000, shares ($100 par) 4.20% preferred
Underwriting—To. be determined by competitive bid-,
ding. Probable bidders include The First Boston Corp.;

Dillon, Read & Co., Inc.; Blyth. & Co., Inc.; Lehman
Brothers; Kidder, Peabody & Co. Offering—The com-

Co., Chicago

July 12 filed 350,000 shares (no par) cumulative first
preference stock, Series A; 300,000 shares of convertible
second preference stock, Series A, and 1,355,240 shares
common stock
(par $5).
Underwriter—Kuhn, Loeb &
Co., New York.
Offering—The 350,000 shares of first
preference stock will be offered In exchange tp holders
of its 532,996 shares of $6 cumulative convertible prior
preferred stock at the rate of 1.4 shares- of first prefer¬
ence stock for each share of $6 prior preferred.
Shares
of first preference not issued in exchange will be sold

pany.

Will offer the stock

on a

share for share exchange

basis to; holders of its $7 preferred stock and $6; pre¬
ferred stock, plus a cash adjustment.
Shares not re¬

quired for the exchange will be sold at competitive
bidding at a price not less than $100 per share net to
the
company.
Proceeds—Proceeds, together with av
$2,500,000 bank loan, will be used to redeem the old
preferred stocks and to finance additions to its electric
distribution and transportation system, Business—Public
utility.

to underwriters. The 300,000 shares of second preference
'

Cladmetals Co.,

American

July 8. filed 196,500 units comprising 196,500 shares of
voting
voting
1

common

stock ($1 par) and 589,500 shares of non¬
stock ($1 par), each unit consisting of
and 3 shares of non-voting

share of voting common

Common.

Underwriters—None—the

distribute its

common

ing—Price $6

per

company

intends to

stock directly to the public. Offer¬

unit.

Proceeds—Net; proceeds -esti¬

mated at $1,179,000 will be used to pay a mortgage on

plant,

pay

accounts payable, purchase

equipment,

publicly.' The 1,355,240 shares of
will, be offered for subscription to common
stockholders of the company in the ratio of one-third
of a new shiaro^ tor each common sbare held.
Unsub¬
scribed shares of common will be purchased: by the
underwriters.
Price—Public offering prices by amend¬
ment.
Proceeds—Net proceeds will be used to retire all
unexchanged shares, of; $6 prioc stock and to redeern its
outstanding 7%. preferred stock.. Temporarily postponed,
common

for

Artcraft

building alterations and working capital.
American

Blumenthal

stock will be offered

of Pittsburgh

Colo^ype Co„; Clifton, N. 4k

Apg. 12: filed 30.000, shares ($100 l?ar); cumulative^ Pre.*
ferred Stock
Underwriter-^Whitej Weld & Co, Price
by, amendment. : ^ropeedSr-Net proceeds initially wiU

mon.

It also

covers

shares of

reserved for issu¬

common

conversion of preferred, Underwriter-kNeyfc*
a preferred

ance upon

company's treasury; for funds expended in re¬
of 3,907 shares
of 7%i cumulative pre¬
ferred on April 1, and for funds deposited in trust for
redemption on Oct. 1 of remaining preferred shares. Al¬
though it was proposed to offer the stock for subscrip¬
tion to stockholders at $10; per share, company on Sept.
demption

decided to withhold action
:

Oct.

■

(Continued^

Corporate and Public Financing

T/IT

•>

The
CORPORATION
Boston

•

New York

v"'

■ J—I.I

JMI

•

Pittsburgh

tA] and other cities" "
..

•

| £ vv
48 WAIL

Chicago

•

: ;

Chicago

•

INC. ;

ST., NEW YORK 5r N. Y,

Boston

•

Cincinnati

Philadelphia
•

St. Louis

•

CO.

Securities-

Kidder, Peabody ^ Co.
•

HAnover 2-2727

Pittsburgh

•

San Francisco

Cleveland

of '

Qorprate, mi Mwkipal

Municipal Bonds

C. J. DEVINE

2512)^

U.n,<krw.ritev$ andlDistributors

X'">;

State and

FIRST BOSTON

page;

—SPECIALISTS IN —

United States, Government Secgrities
,

on.

-rrrr- r:-:—-

rrc-

at this time.

Book-of-the-mQntb piub, lnc,, New York
28 filed 300,000 shares ($1.25 par), capital stock.
Dfllon.
Qo„ New York>. Qff«C-

burger & Hano, Philadelphia Price-rr$25.5Q

&.Co» Inc., New York

Hosiery Co., Philadelphia

Sepjk, 27 filed 53,64$ shares ($25. par) 4^2 % cumulative
convertible preferred and
shares ($1 par), com¬

(Sidney)

Aug. 30 filed 119,706 shares (no. par) common and sub¬
scription warrants relating to, 30,000 shares thereof.
Underwriting — None. Proceeds^-For reimbursement

Members of the
New York

Founded 1865

New, York and Boston Stock Exchanges
Boston

Philadelphia

Chicago

i v

2512

THE COMMERCIAL
(Continued from page 2511);,::

Chicago, Inc.

Thursday,-November

14, 1946

Cameron Aero Engine Corp., New York ^
;
4 officers, directors, and, employees will
be sold to the
(letter of notfication) 60,000 shares of common.
underwriters. Proceeds—Net proceeds, estimated at
$5,Offering—Price $2 a share. Underwriter—R. A.
856,125, will be used to pay the balance of the purchase ;
Keppler
& Co., Inc., New York.
;
Proceeds—To demonstrate the
price, amounting to $5,150,000, for acquisition of the
Cameron Engine by flight tests in
company-owned plane. c candy manufacturing business operated by Clinton In-;
;

Oct. 2

wing—Of the total, the company is selling 100,000 shares
and Six stockholders, including Harry Scherman, Presi¬
dent, and Meredith Wood, Vice-President, are selling
the remaining 200,000 shares.
Price by amendment.
Proceeds—Company will use its net proceeds for work¬
ing capital to be used for expansion of inventories of
paper and other raw materials and book inventories.;
Boston Store of

&
FINANCIAL CHRONICLE

'f dustries, Inc.,

Camfield Mfg.
Co., Grand Haven, Mich.
July 29 filed 220,000 shares ($1 par) common stock. Un¬
derwriters—Gearhart & Co., Inc. Offering—Of the shares
registered, 100,000 are issued and outstanding and will
•

Sept. 10 filed 30,000 shares

($50 par) 5% cumulative
preferred and 500,000 shares ($1 par) common. Under¬
writers—Paul H. Davis & Co. and Stroud & Co., Inc.
Offering—Preferred will
have non-detachable ' stock

sold

$4.50

the

underwriters
for

by three

in St.

stockholders

gotiation

refund

amount

serial debentures and

for

additional

1 .*

China Motor Corp,, New York

their

its

working capital.*"

own
account. The remaining
120,000 shares are being offered by the
company. Price
$4.50 a share. Proceeds—Company's share to
pay rene¬

purchase warrants for purchase of 30,000 shares of com¬
mon stock of the total common, 375,000 shares will be
offered for sale for cash. 30,000 shares are reserved for
issuance upon exercise of warrants attached to preferred

as its national candy division with plants
Louis, Mo., and Chicago. The balance will be used

redeem

•

Oct. 24 filed 7,500 shares
($100 par)
titled to 6% preferential

Class A stock, en- ' ,
dividends, cumulative from •!
July 1, 1947, and to participating dividends. Underwriter
!

„

$180,000 to the U. S.
•••; —None. • Offering—Company expects to sell the stock
Government, and for additional working capital. Offer¬
largely to members of .Chinese communities in the
ing date indefinite.,
United States and elsewhere.
Price—$101 a share. Pro¬
ceeds—Net proceeds, estimated at about
Canadian Admiral
$748,500, are
Corf). Ltd., Toronto
expected to be applied as additional
working capital,
July 8 filed 150,000 shares ($1 par) common stock.
„

and 95,000 shares are reserved
of outstanding warrants.

for issuance upon exer¬
Price—By amendment.
Proceeds—Net proceeds, together with other funds, will
be used to pay the company's 2% subordinated note in,;
the principal amount of $5,268,750 and accrued interest.
Offering date indefinite.
\ 4
cise

will be offered to
at $3 a share. •

Proceeds—$75,000 is earmarked for

•

' Bowman Gum, Inc., Philadelphia

Braunstein

(Harry), Inc., Wilmington, Del.

Sept. 25 filed 12,500 shares ($25 par) 4y2% cumulative
Convertible preferred stock and 50,000 shares (200 par)
common stock. Underwriter
C. K. Pistell & Co., Inc;,
New York. Price

for

—

$25

capital.

Proceeds—7,000 preferred shares
? are being sold by company, the remaining 5,500
pre-;;
ferred shares and all of the common are Keing sold by v
common.

Central Illinois Electric & Gas Co.,

Rockford,

III.
Oct 24 filed

present stockholders. Net proceeds to the company, es¬
timated at $147,500, will be used to prepay to the ex¬
tent possible outstanding $149,300 mortgage liabilities.

for each five shares held.

$1,200,000, will be held by the

4.30%

dividend.

Harriman

bid of 100.06 for

is to be changed by post effective
amendment to Central
6 South West Corp; (Del.)

Prospectus will be issued

in connection With the public invitation for

sealed bids

for the purchase of a sufficient number of such
shares
as
same will be
constituted upon consummation of a

& Co. and Mellon
4.40% dividend, gin-

contemplated

Central & South West Utilities Co.
Aug. 30 filed its ($5 par) capital stock. Company's name

Ripley

Securities Corp. bid 100.779 for

definitely postponed.

cojnpany as a construc¬

construction program.

May 3 filed 70,000 shares of cumulative preferred stock<$100 par). Underwriters—To be filed by amendment.

ley & Co. and associates submitted

determine after the

tion fund to be used for its
present arid

Union Gas; Co.

Rejected—Company July 23 rejected two bids re-^
Blyth & Co., Inc., and F. S. Mose-

It will

expiration of the stock purchase warrants whether there
will be any public
offering of the unsubscribed shares.
Price—$15 a share.
Proceeds—Proceeds, estimated at

Brlggs & Stratton Corp., Milwaukee

Bids

Under¬

common.

Offering—Shares will be offered for
subscription to common stockholders at rate of one share

Aug. 9 filed 76,000 shares (no par) capital stock. Under¬
writers—A. G. Becker & Co., Inc., Chicago.
Price by
amendment.
Proceeds—Shares are being sold. by stock¬
holders. Temporarily postponed.

ceived for the stock.

80,060 shares ($15 par)

writer—None..

Offering date indefinite,

(N. Y.)

(H. H.)

Sons, Inc., Augusta, Ga,

proposed .merger into ,the issuer of American iPublic
Co., to provide funds for retiring the preference

Service

Climax Industries, Inc.,:
Chicago ;
$
Aug. 28 filed 150,000 shares 5% convertible
cumulative'

Corp., issuer's sole stockholder, is offering
I;the common for its own
account. Price of preferred
$10 "t
per share; price of common
$4 per share. Proceeds of
preferred to pay company's indebtedness
toGeneral
;
Finance Corp., purchase equipment
and real estate and
for working capital.
Indefinitely postponed.
•

Coca-Cola Bottling Co. of St. Louis

Nov.

6 (letter of
notification) a maximum of $100,000
($1 par) common to be offered for
subscription to employees at $32.50 a share.
No underwriting.
To be
deposited in company's bank accounts.

Colonial Airlines, Inc., New York
'Oct. 25 filed 150,00Ci shares ($1 par)
capital stock. Under*
writer—Auchincloss, Parker & Redpath, Washington,
D. C.
Price by amendment.
Proceeds—Net proceeds

•

will be used to
pay off a $550,000 loan to the Continental
Bank & Trust Co. of New
York; purchase equipment
and development expenses of
Bermuda route.1 The baic
ance will be used to increase

working capital.
and American Public Service
Co.,
exchanged for shares of the merged corporation.
Colonial Sand & Stone
Co., lite., N. Y*
|
Underwriters by amendment. Possible bidders:
Glore,
August 15 filed 300,000 shares ($1 par) common
stock.
preferred and 120,000 shares ($2.50 par) common. UnderForgan & Co.; Lehman Brothers-Lazard Freres & Co.
Underwriters—Emanuel, Deetjen & Co., New York. Price
4 writer—H. M. Byllesby and Co.
(jointly); Smith, Barney & Co.-Harriman, Ripley & Co.
(Inc.), Chicago. Offerby amendment.
Proceeds—Company will receive pro¬
ing—Of the common, 110,000 shares are being sold by« (jointly); Blyth &
Co., Inc., Stone &" Webster Securities
ceeds from the sale of
150,000 shares and Generoso
stockholders. The remaining 10,000 shares are reserved
Pope*,
Corp. and First Boston Corp. (jointly). Price by amend¬ | President of
company, who is selling the remaining
for issuance upon the exercise" of warrants attached' tb
150,ment.
shares of the issuer

Burgess-Norton Mfg. Co., Geneva, III.
Sept. 23 filed 10,000 shares ($50 par) 5% cumulative

preferred ($10 par) and 250,000 shares
($1 par) out¬
standing common stock. Underwriter—Brailsford & Co.
Offering— company is offering the preferred and Gen¬

eral Finance

Brooklyn

Claussen's

aid

a
variety of purposes in connection with explora¬
tion, sinking of shafts, diamond drilling and
working

share for preferred and $11

payment of indebtedness and to provide
capital to
in establishing a branch
plant in Canton, China.
•

pur¬

—For

—

;

and tools, jigs, dies
;,^ov- ^ frted 7,500 shares ($100 par) 5% cumulative preavailable for ycorporate >' ferred and
35,000 shares ($1 par) participating convert- ;
purposes.. Indefinitely delayed.
:
ible preferred.
Underwriter—Johnson, Lane, Space &
Co., Inc., Augusta. Price—By amendment. Proceeds—•
Carscor Porcupine Gold
Mines, Ltd., of Toronto,
"The securities are issued aiid
outstanding and are beihg ; >
vOntario^:
sold by the executors of the estate
of George F. Claussen i
June 24 filed 400,000 shares of common
stock.
Under¬
and by Euclid Claussen, President of
the company, who
^
writer—Registrant: will supply name of an American
are sole' stockholders.
Business—Manufacture of bakery
underwriter by post-effective amendment.
Offering—
products.
To the public at $1 a share in Canadian
funds.
Proceeds

Sept. 27 filed 268,875 shares ($1 par) common. Under-<
writer—Van Alstyne, Noel & Co., New York. Price—By
amendment. Proceeds—Stock is being sold by sharefielders- who will receive proceeds,

Offering—Stock initially
stockholders of Admiral Corp.

common

chase of machinery and
equipment,
and fixtures; balance ?will be

Underwriter—Dempsey & Co.

not

■

•

the preferred. Price
by amendment. Proceeds—To
imburse treasury for purchaser of machinery and

000 shares Will receive
proceeds from these shares. Th#

re¬

equips
a cost of
$98,386 and payment for new building
being constructed at estimated cost of $223,700; balance
for purchase of additional machine tool
equipment. Of¬
fering indefinitely postponed.
ment at

Central Soya Co., Inc., Fort
be offered to stockholders at

writers—Names

by amendment.

Probable

bidders

Wayne; IhcK-

share. Ptirsuarii? to the

Aug. 21 filed 90,000 shares (no par) common. Under¬
Glore Forgan & Co., Chicago.
Offering —
Common shares initially will be offered for
subscription
writers

> California Oregon Power Co.
May 24 filed 312,000 shares of common stock (no
par).
Stock will be sold
through competitive bidding. Under¬

$10

common

stockholders

rate of

one

shares held. Unsubscribed shares
underwriters. Price by amendment.

share for each

will

sold

Proceeds—Working
capital, etc. Offering indefinitely postponed.

in¬

additional equipment.

working

capital.

'•

/r t ~

mortgage
purchase* 6$

Any

balance will

Indefinitely postponed.

—

7 Vz

company will use its proceeds for
payment of
notes* open* account indebtedness and for

added
*

Colorado Milling & Elevator
Co., Denver, Colo*
Aug. 20 filed 70,000 shares ($50 par) cumulative con-*
vertible preferred stock.
Underwriter—Union Securi¬

ties

Corp., New Ybrk.

Price by amendment. Proceeds
proposed issue of preferred
stock, the
company plans to call its $3 cumulative
convertible pre¬
—Prior

the

•

clude Blyth & Co., Inc.; The First Boston
Chase Candy Co., St. Joseph, Mo.
ferred stock for
Corp.; Harri¬
redemption at $55 a share plus accruedl
man Ripley & Co.
£
Offering—Stock is being sold by
dividends.
Sept.. 12 filed $2,500,000 of 4% sinking fund debenture^,,
Funds for the
redemption will be supplied
Standard Gas and Electric
>
Co., parent, of California.
due 1961; 100,000 shares ($20
par) 5% convertible cumu¬ { by a short term bank loan.
Proceeds from the sale of 7 :
Bids Rejected—Standard Gas & Electric
Co. rejected li lative
preferred, together with other funds, will be used to
preferred, and 170,000 shares ($1 par) common.
June 25 two bids for the
v
purchase of the stock as un¬
Underwriters
F. S. Yantis & Co., Inc. and H. M.
repay the bank loan. Indefinitely
postponed;
satisfactory. Blyth & Co., Inc., and First Boston
Corp.
Byllesby and Co. (Inc.), Chicago, and Herrick Waddell
bid of $28.33 a
share, and Harriman Ripley & Co. bid
& Co., Inc., New York. Offering—Common will be of¬
Columbia Aircraft Products Inc.
of $24,031 a share.
Stock will again be put
fered for subscription at
up for sale5
June 26 filed 150,000 shares
$10 a share to common stock¬
When market conditions
($4 par) 30c cumulative
improve.
' holders at-rate of one share for each two shares held
convertible preferred
stock, convertible into commoii
of record on Oct. 19. Shares of common not
stock in the ratio
subscribed
;
California Water Service Co.
initially of XVi shares of common for t
for will be offered for sale to
each share of preferred.
Oct 28 filed 50,000 shares common stock
officers, directors and
(par $25), Un¬
Underwriter—Floyd D. Cerf ; ^
employees. Price—The debentures will be offered at
Co., Inc., Chicago.
derwriters—By amendment. Probable bidders include
Offering—Company offered 59,585y3 >
$100 and the preferred at $20 a share. The common will 5 shares for
Blyth & Co.; Inc.; The First Boston
subscription to present common stockholder^
V
Corp.;.'Harris, Hall
be offered to stockholders at
of record Aug. 6 at
& Co. (Inc.).
$10 a share. Pursuant to the
Proceeds—To repay bank loans used in
$4.50 a share in the ratio of one share- ^
common stock
of preferred for each share of
subscription- rights, F. S. Yantis & Co.
part for 1946 construction work, to restore
common held.
working capi¬
Rights V;
will purchase
tal used for additions and
100,000 shares of the 170,000 shares of
expired Aug. 20. Stockholders subscribed for 735
improvements and to defray
shares.
common for investment.
The offering to common
Any of the remaining 70,000
part of cost of future additions, etc.
stockholders excluded the two
shares which are not subscribed for by stockholders and
principal stockholders who waived their
rights to sub- /•;
—

UNDERWRITERS—DISTRIBUTORS—DEALERS
,

:•

!*■

*...

•

■;

V■'

'ei,''*:

' XV-

and

Municipal Securities

411
'•

The Marine Midland Trust Company

v'''---;'••'-.""-'•.'J

Industrial, Public Utility, Railroad

Underwriters

OF NEW YORK

|
;

Transfer Agent

;

♦

Registrar

•

Trustee

;

Members New York Stock
NEW YORK

PHILADELPHIA

ALBANY
PITTSBURGH

CHICAGO

•

TRENTON

;

RECTOR 2-2200

•

♦

y
'

E. H. Rollins & Sons
'

•

•"

40 Wall
•

Public Utility—Industrial Securities

WASHINGTON

•

Distributors S

;

BROADWAY

NEW YORK 15, N. Y.

INDIANAPOLIS

■

Direct contact with Markets in
principal financial centers.

ONE HUNDRED TWENTY

Exchange

•
of

Municipal—Railroad

•

Hemphill, Noyes C&, Co.

•

New York

•

Boston

Incorporated

;

:<S;:^'r.

Street, New York 5, N. Y.
>

Philadelphia

•

Chicago

•

San Francisco

.Volume 164

THE COMMERCIAL & FINANCIAL" CHRONICLE

Number 4542

Continental

•

YYY

NEW ISSUE CALENDAR

§jg

(Showing probable date of offering)

November 15,

Debentures

National Alfalfa

/;'

Dehydrating &

Milling Co

Continental-United

Northern Pacific Ry.__
.Equip, Trust Ctfs.
Pari-Mutuel Totalizer- Corp.——_s
Common

Industries

Offering—Price $5

•

—

Co., Inc.

Cooper Tire & Rubber Co., Findlay, Ohio
Y July 17 filed 60,000 shares ($25 par) 4%% cumulative
i
convertible preferred.
Underwriters—Otis & Co. and
Prescott & Co., Inc.
Offering—To the public. Price—
; $25 a share.; Proceeds—Estimated net proceeds of $1,-

Felt &.Tarrant Mfg. Co.—».Common
Oxford Radio Corp.-.—
—Common.
—

Weatherhead

Co.

Debentures

——

November 21,
Lee ( James) & Sons Co

machinery, plant renovation and
Offering date indefinite.

-Preferred and Common

,,,

-'VYi JLI

') Y-

Y'-,*

"'**

<•

'*s

•

*i'r"

offered

shares (no par>
for outstanding

57,462

exchange

prior preference stock (no par) on basis of 6 shares at
common for each share
of ^ prior preference. Concur"rently; holders of prior preference are given option to
surrender their stock and receive $25 in cash and on#
share of common in exchange. Mullaney, Ross & Co.*
Chicago, are offering to purchase the shares of common
to be recived by stockholders accepting this option at
$5 a share,
:
»

v
•

$ 356,200 will be used to redeem its outstanding 4% deben¬
tures, due 1967, to pay certain debts and for additional
^/•cfuipment. manufacturing space and working capital.
Offering date indefinite.
-

1946

November 22, 1946

Empire Millwork Corp., New York

Aug, 28 filed 50,000 shares of $1,25 cumulative converti¬
Copco Steel & Engineering Co.;!/Detroit
ble preferred stock, (par $25) and
150,000 shares of
Aug. 19 filed 115,000 shares ($1 par) cpijimon. Under¬
common
stock
writer—E. H. Rollins & Son, Inc., New York.
(par $1). Underwriters—Van Alstyn#,
Price
by amendment. Proceeds—Of the shares being offered i Noel & Co. Proceeds—Corporation will receive the pro¬
ceeds from the issuance of 50,000 shares of the common
company is selling 100,000 shares and 15,000 shares are
stock which will be used to increase productive capacity*
being sold by a stockholder. The company will use its
add new lines of products and expand the business. The
proceeds to provide: additional factory space and pur¬
chase machinery and equipment and to construct a new : remaining 100,000 shares of common stock and the
PJ2T.
office building. The balance will be added to working
| ferred shares will be sold by present stockholders. Off*
capital. Offering date indefinite.
fering temporarily postponed.
.

Bethlehem Steel Corp..-—____.._,Bonds
November 25, 1946
"

Continental

working capital.

For

common.

Common!

L£

—

(letter of notification) 99,000 shares of common
and purchase warrants covering 50,000 shares of com¬
mon. Offering—Price $3 a common share and five cents*
a warrant.
Underwriter—Amos Treat & Co., New York*

—Bonds

November 20, 1946

;

working
- f

Oct. 11

No underwriting.

Y//// Durasite Corp., Clearwater, Fla.

) Proceeds—To repay demand loans and for general funds.
Elgin (III.) Sweeper Co.
Y (Originally company filed for 80,000 preferred shares
i Oct. 16 (letter of notification)
par $25 and 350,000 common shares.)

Safe Harbor Water Power

Corp, 12 noon (EST)
Yolande Corp* Y■— —*

unit.

purchase of additional flight and servicing equip¬

capital and other expenses.

Aug. 2 filed 150,000 shares ($1 par) common. Under¬
writers—Aronson, Hall & Co. Price
$8.25 per share.

—^---Preferred and Common

common

common.

For

requirements. Offering indefinitely postponed.

1946

Hiram Walker & Sons Inc._—

Sv
of notification) 12,000 shares^ ($5 pari
and 8,000 shares ($5 par)
Class B

(letter

ment, payment of deferred salary balances, for

facilities, and for additional working capital

tools and

Class

acquisition of additional

pany's manufacturing plants,

Common

November 19;

Oct.
Z

July 8 filed 250,000 shares 4y4% cumulative convertible
preferred stock, Series A ($50 par). Underwriters—Van
Alstyne, Noel & Co.: Offering—Price by amendment..
Proceeds—For rearrangement and expansion of the com-

1946

Inc.—

one cent a warrant.
Underwriter—L. D.
Co., New York. For working capital.

Continental Motors Corp., Muskegon, Mich.

Capital Stock

November 18,

Fashion Frocks,

share,

Sherman &

Common

Tennessee Odin Insurance Co,

$10.25

mon

1946

Maxwell, Marshall & Co., Los Angeles. Price—To public
a share.
Proceeds—Net proceeds, estimated at£

Ind.

Brazil,
/

Preferred and Common

Consumers Power Co

Corp.,

2513

••

Z; Nov. 4 (letter of notification) 132,500 shares ($1 par) / $694,761, will • be :used Kto pay off loans and accounts payable.
"
y
'£• common and 35,000 warrants for purchase of common
$ one year after present public offering. Price—$2 a com¬
:
Duluth (Minn.) Airlines, Inc.

November 14, 1946
New Plastics Corp.-.—

Car-na-var

(11/25-29) v./

i 'a

Car-Na-Var Corp

Common

•

November 27, 1946
,

General Motors Corp.-.-

——Preferred

November 28, 1946

Germantown Cooperative Ass'n. .Bonds and Stocks

Crawford

December

3, 1946

Equitable Life

Clothes, Inc., L. I. City, N. Y.

Lake

fiied

300,000 shares ($5 par) common stock.
Underwriters—First Boston Corp., New York. Price by
amendment.
Proceeds—Go to «Joseph Levy, President,
selling stockholders. Offering date indefinite.

Aug. 9

Philadelphia Electric Co
Preferred
Southern By., 12 noon (EST)—.Equip. Trust Ctfs.
December 10, 1946

A Casualty Insurance Co., Salt

City

Oct. 16 (letter of notification) 90,000 shares ,of commons
To be offered to policyholders at the rate of 11 sharef
per

$1,000 of insurance at $2 a share. No underwriting.
capital and surplus required by law to qualify
old line legal reserve capital stock life insurance com—

To raise

Philadelphia Electric Co

Bonds

December 12, 1946

Drayer-Hanson, Inc..,.———.Class

A Stock

an
Cyprus Mines, Ltd., Montreal, Canada
pany;.
' \
May 31 filed 500,000 shares of common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto.
OfferEro Manufacturing Co.y Chicago
* ing—Shares will be offered to the public at 75 cents a
Sept. 5 filed 105,000 shares common stock (par $1>share.
Proceeds—Net proceeds, estimated at $300,000, h
Underwriter—Straus & Blosser, Chicago.
Price—$11.50
will be used for mining operations.
a share.
Proceeds — Shares are being sold by stock¬
-

scribe.

The

remaining

$90,414%

and

58,850%

not subscribed to by common stockholders will
be offered to the public through underwriters.
Price—$5
a share.
Proceeds—Approximately $50,000 for

payment

of Federal taxes; $250,000 for payment of Lincoln-RFC
loan; $50,000 as a loan to Palmer Brothers Engines, Inc.,
a
subsidiary; balance for purchase of machinery and
equipment and working capital.

Columbia Axle Co., Cleveland, Ohio
Oct. 28 filed

89,580. shares ($5 par)

writing—None.

Offering—Of. the total 56,420 shares

to be issued to persons under
faction

funds

For purchase of

•

loaned

are

preferred,

Delta Chenille

•

Consolidated

City, Utah

Eureka

Mining

Co.,

;

51.1

Detroit

(■

•

,''il

common.

C. G. McDonald & Co.,-: Detroit. Price — $5.50
—
Stock is being sold by six' share-

—

share. Proceeds

'vi

^Consolidated Hotels, Inc.* Los Angeles

•

Aug. 9 filed 97,363 shares ($25 par) 4y2% convertible
preferred stock and 150,000 shares (50c par) common.
Underwriter—Lester & Co., Los Angeles.
Price—$25 a
—Of the

total, the

company will receive

•Nov.. 7

preferred and all of the

Ben

Weingart, President

common

and

are

Proceeds

director.

Company

add the proceeds to working capital.
)

"jr

1 V VY

:' ;/«. •'

Consumers Power

Aug.

Issue

Awarded—Issue

filed

500,000

(no

awarded

par)

(11/15)!

common

Nov.' 13

stock.

syndicate

headed by Morgan Stanley & Co. on bid of $33.5399
per

Share.

Bankers plan to offer the stock at $36 per share.

(letter of notification)

Dobbs

Co., Jackson, Mich.

Inc.,

i."

* Vl",

Boston,

10,000

* \

Mass.

($1 par)

■

Houses, Inc., Memphis, Tenn.

Under¬
writer—Emanuel, Deetjen & Co., New York. Price—By
amendment. Proceeds—Net proceeds will be used for
expansion of business consisting of airline catering and
restaurant and coffee shop operations. Date of offering
indefinite.

Drayer-Hanson,

outstanding bank loana.

(11/18-22)

par) common stock.
Co. Offering—Offer¬

financing but is a sale of
owned by members of the

Meyers family, owner of all outstanding
^$9 per share.
>
t

off
and

stock.

Price—

Felt &^Tarirant Manufacturing Co. {(11/20) v }
Sept. 25/filed 251,340 shares of common stock (par $5).
Underwriters
Lee Higginson Corp. and Kidder, Peabody & Co. Offering — Shares are being sold by shareholders after consummation of proposed changes in com¬
pany's capitalization and the merging into the company
of Comptometer Co. Price by amendment.
—

rTt'

/ Sept. 27 filed 75,000 shares ($1, par)

will

'i'.i'i %'•

'A;P'A'p.

: .\

Chemicals

selling agent. For working capital.

proceeds from

being sold by

^u-',

Inc.

July 24 filed 120,000 shares ($1
Underwriter—Van Alstyne, Noel &

class A and 20,000 shares (10c par) common. Price, $10
a unit consisting of one
share of class A stock, and 2
shares of common. General Stock & Bond Corp. Boston,

the sale of 851 shares of preferred. The remaining shares
of

Devonshire

bonds, due Aug. 1, 1957, to pay
and chattel mortgages of $72,000

Fashion Frocks,

working capital.

mortgage

$800,000 to reduce principal on

;

writing. For purchase of mining machinery and for mine
( holders who- will, receive proceeds.
development.
Boston,
For

share of preferred and $9 a share of common.

fund

ing does not constitute new
currently outstanding shares

Under-

;

(A. B.) Co., York, Pa.

certain contracts

! 1

Typesetting Co., Detroit,: Mich.

Sept. 25 filed 70,920 shares ($1 par)
.

.:>•

Ltd., Boise, Ida.

Inc., Philadelphia. Price—By amendment. Proceeds --Proceeds will be used to redeem $355,350 4%% sinking

■

of starting operations of four plants, two of which al¬
ready have been contracted for. The balance will be

;

Everyman*#
$50,000 b®

21 (letter of

Farquhar

net proceeds to company of $1,007,913 will/be added
to general funds to be applied for corporate purpose.

/ writer

doing business as

Sept. 26 filed 30,000 shares ($25 par) cumulative con¬
vertible preferred; 45,000 shares ($5 par) common; and
an unspecified number of common shares to permit con¬
version of the preferred. Underwriter—Stroud & Co.,

"added to working capital.

6^ (letter ~of notification) 50,000 shares to Carl
Stehle, Jr., a director, for services; 469,089 shares to
creditors of issuer and 1,000,000 shares to present stock¬
holders and general public ,at 10 cents each. No under-3

purposes.

Co., Inc., Jacksoii, Miss.

remaining 150,000 shares are being sold by Apponaug
Manufacturing Co., Inc. Principal stockholder estimated

Nov;

Ehrlich,

notification) 3,000 shares of 4%% pre¬
ferred ($100 par).
Price—$100 a share. UnderwriterRichard Meade Dunlevy Childs, Boise, Idaho, proceed#
to retire debentures and for expansion purposes.'

Company anticipates expenditures of $300,000 in 1946
$300,000 in 1947 for equipping and absorbing costs

Lake

Salt

v6ct.

and

share, plus divs* all unexchanged old shares.

Stutzpunkt.

Oct. 2 filed 300,000 shares (200 par) common. Under¬
writers—Names by amendment. Price, $8 a share. ProZceeds—Of total, company is selling 150,000; shares and

share for share basis, plus cash adjust¬
ment. Shares not exchanged will be sold to underwriters.
Price by amendment. Proceeds—To redeem at $110 a
on

13,700 shares of 7% pre-

ing capital and other corporate

Sept. 23 filed 16,071 shares ($100 par) $4 cumulative
preferred. Underwriters — Paine, Webber, Jackson &

Ida

participating certificates; To be issued in any amount
with a minimum price of $10. No underwriting. To produce play written by Ida Lublenski Ehrlich and entitled

Corp., Dansvi!ler N. Y.

Nov. 6 (letter of notification)

Curtis and Stone & Webster Securities
Corp. OfferingShares will be offered for exchange for $5 cumulative

Theatre filed letter of notification covering

/ferred and 6,300 shares of common. Price, $10-a. unit.
To be sold through employees of the company. For work¬

Madison, Wis.

Everyman's Theatre, New York

Falk Mercantile Co.,

Dansaire

machinery and inventory,

Commonwealth Telephone Co.,

Nov.

are

trust agreement in satis¬

by the trust to the company;
to be issued to satisfy options, 2,300
shares will be sold to employees and it is expected that
the remaining 20,360 shares will be sold to persons under
the trust agreement;
Price—$7.25 a share. Proceeds—

10,500 shares

•

indefinite.

Under¬

common.

holders.

Danly Machine Specialties, Inc., Cicero, III.
/July 26 filed 62,000 shares ($25 par) 5% cumulative
convertible preferred;stock and 71,950 shares, (par $2)
common stock 40,000 by company .and 31,950 by certain
stockholders. Underwriters—Paul H. Davis & Co., and
Shillinglaw, Bolger & v Co., Chicago.1 Price, by amend¬
ment. Proceeds—Company will use proceeds, together
with a $1,000,000. bank, loan, to purchase machinery*
buildings and to retire bank indebtedness. Offering date

common.

Fiduciary Management, Inc.;

Jersey City, N. J*

Sept. 27 filed 867,420 shares ($25 par) common. Under¬
writer—No underwriting. $ Offering—Stock will be of¬
basis of four

to common stockholders on the
additional shares for each one share held.

Price—$3

share.

fered for subscription

ment

Films Inc.,

capital sq
field of develop¬
Y-'/Z..'

Proceeds—To increase

expand operations in the
and reorganization financing.

company may

New York

filed 100,000 shares ($5 par) class A stock and
300,000 shares (10 cent par) common stock, of vmicfi
'200,000 shares reserved for conversion of class A. Each
June 25,

Inc.,

Los Angeles

(12/12-13)

Aug. 12 filed 80,529 shares ($1 par) class A stock, con¬
vertible into common stock (par $1). - Underwriters—

,'ltJ

«•.

'
—

2514

(Continued from page 2513)
/
A stock is initially convertible into 2
shares of common stock. Underwriters—Herrick, Waddell & Co., Inc., New York. Offering—To be offered
publicly at $8.10 & unit consisting of one share of class A
stock and one share of common stock.
Proceeds—$201,share

class

000 for retirement of 2,010

shares ($100 par) preferred
$100 a share; remaining proceeds, together with
funds, will be used for production of educational

stock at

other

films.

—

■■

■

••"

•

___

—

•

«.

«-

Nov.

Corp., Leesburg, Fla.

(letter of notification) 27,000 shares of $10 par
Price —$11 a share.
Underwriter
Florida
Securities Co., St. Petersburg, Fla,
Proceeds—For ex¬
pansion and modernization program.

Proceeds—To be used to redeem 15-year
3%% sinking fund debentures, due 1959; and $2.50 cum¬
ulative preferred at $53 a share.
Balance will be added

Temporarily postponed. /

Fabrics

Corp., New York

compensation, and the remaining 3,534.75 shares will be
offered to stockholders at $12 a share.
No underwriting.
To assist in retiring $118,000 bonded indebtedness.

•

•'*

•-'t 'y

Foster & Kleiser Co.,

»•

12,000 shares

(letter of notification)

Sept. 3

V-

'/•'*>> '■ V"

"WT

1 A J/

Price, $3 per share. Proceeds—For acquisition
additional helicopters and related equipment and;
working capital.
v

Helicopter Digest Publishing Co.,

Inc.

Oct. 15

(letter of notification) 10,000 shares of preferred
stock
(par $5) and 10,000 shares of common stock
(par $1), Underwriter—Frank P. Bunt, 42 East Ave.,
Rochester, N. Y. Price—$6 per unit of one share of eaqh.
Proceeds—Purchase of machinery, paper and working
capital. Business—Publishing.
t
,

•

Heriff Joness Co.,

Nov.

Indianapolis, Ind.

,-j.j'

(letter. !o£ notification) 27,331 shares ($1: par)

class A preference stock. Price, $10 a share.

No under¬

writing. For additional working capital.
Walker-Gooderham

& Worts Ltd., On¬
and Hiram Walker & Sons, Inc.,
Detroit, Mich. (11/19)

Hiram

& Co., Inc., St. Paul.
Proceeds — For improvement and
modernization program. Offering indefinitely postponed.

•

tario,

($1 par)

share.

account.

Underwriters—Kalman

common.

Price—$25

Can.,

1 filed $30,000,000 20-year debentures due 1966.
Underwriters—Smith, Barney & Co. and Kidder, Pea-

Nov.

Price by amendment. Proceeds—Net' pro¬
used by the American company to pay

body & Co.
Grolier Society, Inc.,

New York

will

ceeds

bank loans and to increase cash1 funds.
Bqsiness^-DisJuly 29 filed 18,500 shares at $4.25 cumulative preferred
tilling business.
*
\
($100 par), with non-detachable common stock
purchase warrants entitling registered holders of shares
/
Hollywood Colorfilm Corp., Burbank, Calif.
;
of the $4.25 preferred to purchase at any time 64,750
shares of common stock at $16 a share at the ratio of 3Vz i Oct. 16 (letter of notification) 119,500 shares of ($1 par)
common shares for each preferred share held; and 120,x / capital. Price, $3 a share. No underwriting contract, how000 shares of $1 par common stock. ^Underwriters^H.
- ever, 55,000 shares to be issued to or through H. R. O'Neil
of Buckley Bros., Los Angeles, will be sold by one or
M, Byllesby and Co./ Inc.
Offering-^Underwriters to
more of the following firms: Buckley Bros.; Durand &
purchase from the company 18,500 shares of preferred
Co.; Tucson, Ariz.; J. Earle May & Co., Palo Alto, Calif.
and 20,000 shares of common; and from Fred P. Murphy

stock

July 29 filed 110,000 shares ($1 par) common stock, all
outstanding,
Underwriters—Cohu & Torrey.
Price by
Offering date indefinite.
••

Realty Co.

(letter of notification) 4,034.75 shares ($10 par)
common.
Of the total the company will issue a maxi¬
mum of
500 shares to James Leenhouts, President, as

;

amendment.
•'

and construction program.

(Mich.)

^ '

Thursday, November 14,-1946

Griggs, Cooper & Co., St. Paul, Minn.

amendment.

Foreman

Grand Rapids

Inc., Philadelphia

Aug. 5 filed 60,000 shares ($15 par) cumulative preferred
stock.
Underwriters—Eastman, Dillon & Co. Price by

working capital.

Canyon-Boulder Dam Tours, Inc., Boulder
.'
£
■
;'t
4
Sept. 3 filed 500,000 shares ($5 par) capital stock. Under¬
writing—There will be no underwriting but Everett N.
Crosby, President and James Manoil, Treasurer, will act
as selling agents*
Price—$5 a share. Proceeds—For re¬
financing of company and for working capital and funds
for development

*L, i

City, Nev.1

Nov. 4

common.

Food Fair Stores,

#%vrT-%^«vr/<«Y

CHRONICLE

Grand

•

;V;

;

Florida Telephone

THE COMMERCIAL & FINANCIAL

.>'.7''

San Francisco

July 29«filed 100,000 shares of $1.25 cumulative con¬
vertible preferred stock (par $25). Underwriter—Blyth
& Co., Inc. Offering—Underwriters are
making exchange
offer to holders of Class A preferred on share for share
basis plus a cash adjustment. Proceeds—Approximately

$1,060,950 for redemption of class A preferred; balance
for expansion, working capital, etc. Dividend rate and
price by amendment. Offering temporarily postponed.

and.J. C. Graham, Jr., 100,000 shares of issued and out¬

standing
$14

common.

mon

share.

Holt (Henry)

Prices, preferred $100 a share; com¬
Proceeds—To retire $6 cumulative

preferred,/pay notes, discharge
porarily postponed.

loan. Offering tem¬

Fresh Dry Foods, Inc.,
Columbia, S. C.
Aug. 30 filed 450,000 shares (100 par) common. Under¬
writer—Newkirk & Banks, Inc. Offering—Of the total
company is selling 350,000 shares and two stockholders,
Roland E. Fulmer and Louis H. Newkirk,
Jr., are selling
the remaining 100,000 shares. Price—$6 a share. Proceeds

Gulf Atlantic Transports Co., Jacksonville, Fla.
Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co.
Offering—Stock is being of¬
fered to present shareholders at $3 per share.
Holders
of approximately 200,000 shares have agreed to waive
their preemptive rights. Offering date indefinite.

Household Finance Corp., Chicago

Jli§$g

—For

purchase of sweet potatoes, plant expansion, addi¬
tional storage facilities, research and
development work
and working capital.
Offering date indefinite.

& Co.,lnc., New York

28,1946 filed 20,000 shares of 4%% ($25 par) cumu¬
lative convertible preferred stock and 33,884 shares
($1 par) common stock. Underwriters—Otis & Co.,-Cleve¬
land, Ohio. Offering—Company is selling the preferred
shares and stockholders are selling the common shares.
Price—$25 a share of preferred. Price for the common
by amendment. Proceeds—Net proceeds will be added
to general funds. Offering date indefinite,
> u
i \

June

Gulf Oil Corp.,

Oct^29 filed^60,000 shares (no par) common.
Uaderwriting—None.
Offering—Stock will be offered for

Pittsburgh, Pa.

($25 *par) y capital^ stock* : subscription to certain employees and officers,, of the
Corpii/NeW York;; ;Priee
cottipaiiy and its subsidiaries.
Price—$20.50 a share,
by amendment.
Proceeds—Shares are issued and out- £ Proceeds—Estimated proceeds of $1,210,000, after ex¬
standing and are being sold by members of the Pitts¬
penses; will be added to working capitaLi
burgh banking family of Mellon or trusts created by
members of the family.
Illinois Boll Telephone Co., Chicago
.
■
;
Oct.

filed

399,860 "Shares

Underwriter—The First Boston

Frontier Power Co., Trinidad, Colo.
Oct. 25 filed

119,431

shares ($5 par) common.
Under¬
Price by amendment. ProceedsShares are being sold by three stockholders, including
J. G. White & Co., Inc., New York, which is
selling all
of its holdings of such stock. /
Following the sale of its
holdings J. G. White will no longer be parent of Frontier, j

writer by amendment.

Nov. 4 filed

Halliday Stores Corp., New York

offered

for

324,998 shares ($100 par) common. To be
pro rata, to stockholders at

subscription,

none

of the proceeds.

Generar Engineering and Manufacturing
Co.,
St. Louis, Mo.

Oct. 23 filed 100,000 shares (50c par) common. Under-,
writers—E, F. Gillespie & Co., Inc., and Childs Jeffries

$100 a share. No underwriting. Proceeds-yTo reimburse
Treasury for funds expended for extensions, additions

Company will receive

and improvements

Thorndike, Inc., New York. Price, $4.50 a share. Pro¬
of all the outstanding stock of the

Oct. 21 filed 50,000 shares ($10 par) 5% cumulative con¬
vertible preferred and 100,000 shares ($2 par) common.

Proceeds—Net

Hammond Instrument Co.,

proceeds,

estimated

$893,000, will be added to working capital and will be
company's new product, the "Gemco" space cooler (an air
conditioning unit) and other
used to finance the

corporate purposes.
1

'C 'A*

•

v.
£.'■ £•&;>

General Motors Corp.,

>i>f

*\! \v

Detroit, Mich.

><t,

\ i-l

;
•.<"

(11/27)

Nov.

8 filed 1,000,000 shares (no
par) preferred stock.
Underwriter—Morgan Stanley & Co., New York. PriceBy amendment. Proceeds—Company expects to use the

proceeds, together with other funds, to help finance its
expansion and modernization program estimated to cost

$590,000,000 of which $290,000,000 had been expended
through Sept. 30. Business — Manufacture of various
products, the principal field consisting of passenger cars,
commercial

outstanding 6% cumulative preferred stock at an
cost of $213,258, exclusive of accrued divi¬
It also will use approximately $402,000 toward

estimated
dends.

the purchase of a manufacturing plant in Chicago;
ance for working capital. Offering date indefinite.
•

(William H.)

Harman

filed

280,000

•

Germantown

Cooperative Association

(11/28)

(letter of notification) $40,000 4% series first
mortgage bonds, 5,700 share of permanent stock (par $5)
and 4,000 shares of ordinary stock (par $25). All three
issues to be sold at par. Proceeds will be used to acquire
a piece pf real estate and for working capital.

Glen

Inc.,

Milwaukee,

Wis.

Glencair Mining Co.

Ltd., Toronto, Can.

Oct. 2 filed 300,000 shares

Mark Daniels

(Canadian

($1 par) stock. Underwriter—
Co., Toronto. Price—40 cents a share

Funds).

Proceeds—For

mine

development.

Aug. 28 filed 355,000 shares ($1 par) common, of which
55,000 shares are reserved for issuance upon the exer¬
cise of stock purchase warrants.
Underwriter — Van

Alstyne, Noel & Co.

Offering—The 300,000 shares

issued and outstanding

are

and being sold for the account

River.

Industrial Bancshares Corp., St.

credit agree¬

Business—Company

new

type

subscription period, shares not sold may be purchased byother common stockholders or will be sold in such man¬
ner as the board of directors shall determine. Price—$2®

of low cost

filed

Stores,

share.

the sum of $760,000 for payment of a loan and
$703,930 for. retirement of Industrial's first and second
preferred stocks in order to prepare for the latter's ulti¬
mate dissolution. Remaining funds will be used as work¬
pany,

Inc., Los Angeles

100,000

ing capital.

Feb. 27 filed

185,000 shares of common stock ($2

par).

Stock
acquired by selling stockholders in exchange for 432,000
are

shares of

being sold

common

by certain stockholders.

stock (par

$3) of American Engineer¬

ing Co. Underwriter—By amendment. Offering—Price by
amendment.

Oct

(letter of notification)

Inc.,

Camden,

50,000 shares of capital

stock (par 10c). Underwriter—Putnam & Co. as

shares;

N, J.

to 5,500

issuer plans sale of 44,500 shares for its own

York

Aug. 28 filed 140,000 shares of common stock (par $1).
Underwriter—Otis & Co. Offering—Price $10 per share.

Proceeds—Selling

stockholders

•

receive

will

Offering date indefinite.

•

Kable Brothers Co., Mount

proceeds.

V.' itk

Morris, IIL

(letter of notification) 20,907 shares ($10 par)
To be offered to stockholders in ratio of one
share for each five held. Price—$10 a share.
No under¬
6

common.

writing.

For expansion purposes.

Kane County

Title Co., Geneva, III.

> <

;

notification) 4,000 shares of common.
of record Oct. 4
subscription at $30 a share at the rate of one share
each two shares held. Subscription rights terminate

Sept. 25 (letter of

Offering—To be offered to stockholders
for

Helicopter Air Transport,

International Dress Co., Inc., New

Nov.

Hayes Manufacturing Corp., Gr. Rapids, Mich.

Proceeds—Of the proceeds, the company will
Corp., its sub-holding com-

advance to Industrial Credit

shares ($1 par) common stock.
Underwriters—Van Alstyne, Noel & Co., New York, and
Johnston, Lemon & Co., Washington, D. C.
Offering—
To be offered to the public at $8 a share.
ProceedsCompany is selling 60.000 shares and stockholders are
selling 40,000 shares.
The company will use its proceeds
to pay the costs of opening additional stores and to ex¬
pand merchandise in its existing stores. Offering tem¬
porarily postponed.
June

Louis, Mo. ^/

of ($4 par) common. Under¬
writing—None.
Offering—Shares will be offered for
subscription to common stockholders in the ratio of one
share for each five shares held.
At the expiration of the

purchase at from $5,900 to

added

Oct. 29 filed 100,000 shares

-vvfyri-4-^

of certain stockholders.

Company has also issued 55,000
stock purchase warrants to the selling stockholders at
10 cents a share entitling them to purchase up to Aug. 1,
1949, common stock of the company at $11 a share. Price
by amendment. Offering temporarily postponed.

nancing program

$7,200. Company's plant, located in Wilmington, Del., is
expected soon to begin producing in quantity for initial
distribution to dealers in the area east of the Mississippi

Glensder Textile Corp., New York

developed

home to be made available to

Hartfield

Industries

July 31 filed 50,000 shares of $1.25 cumulative converti¬
ble preferred stock series A ($20 par) and 150,000 shares
<10c par) common, all issued and outstanding and being
sold by eight selling stockholders.
Underwriters—Van
Alstyne Noel & Co.
Price by amendment. Proceeds—
To selling stockholders. Offering temporarily postponed.

and

capital

machinery and equipment and to the carrying of in¬
ventories and receivables. Additional working capital

designed

will

Company has asked the SEC to

has

to treasury funds.
defer action on its fi¬
because of present market conditions.

balance

The

date.

Corp., Philadelphia

ment with the Chase National Bank.

Nov.

demption of 5% cumulative convertible preferred stock
not converted into common prior to the redemption

bal¬

stock. Under¬
writer—Smith, Barney & Co. Price by amendment. Pro¬
ceeds—Will be applied to the purchase and installation
13

Nov.

include

ders

80,000 shares ($1 par) common.
Under¬
writer: Paul H. Davies & Co., Chicago. Price by amend¬
ment.
Proceeds—Net proceeds will be used to redeem

is expected to be made available under a

vehicles, parts and accessories.

competitive bidding. Probable bid¬
Blyth & Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and !W. E.
Hutton & Co. (jointly). Proceeds—Net proceeds from the
sale of preferred will be used to reimburse the com¬
pany's treasury for construction expenditures. Net pro¬
ceeds from the sale of common will be applied for re¬
Underwriters—By

Chlcagoi

Aug. 8 filed

its

.Illinois Power Co., Decatur, III.

June 17, filed 200,000 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares (no par) common stock.

tract entered into last August 15.

Underwriters—Dempsey, Tegeler & Co., and J. W. Brady
Co., St. Louis.
Price—$10 a preferred share and $5 a
share.

and Maurice Hoppin pursuant to terms of a con¬

man

common

to its telephone plant.

ceeds—For purchase

Benton Stores, Inc. and its affiliates from William Book¬

for

Nov.

3. Any

unsubscribed shares will be purchased by

Chicago Title

& Trust Co., a stockholder. No

writing. For expansion of

under¬

building and plant facilities.

.-V;-'-..\;:'YYv'YY^ Y'■•

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■■■•-v«

Iy:YYY-YYYY Y;Y'^^
:• • '. • ? : .Volume 164
Number 4542
»
"
£
THE COMMERCIAL & FINANCIAL CHRONICLE
•

Kansas

City Power & Light Co.,

;

Kansas City,

Merchants Factors

•

Corp., New York

.National Aluminate Corp., Chicago

;

Sept. 27 filed

Oct. 21

(letter of notification) 2,877^2 shares 7% cumu¬
Nov. 1 filed $36,000,000 of first mortgage bonds, due Y lative and participating preferred stock (par $100). Un¬
derwriter—None at present but company may employ
1976; and 100,000 shares ($100 par) cumulative pre¬
some individuals to promote the sale of the stock. Price,
ferred.
Underwriting—To be determined by competitive
100 per share. Purpose, working capital.- :,;.
v
bidding. Probable bidders include Halsey, Stuart &
Inc. (bonds only); The First Boston Corp. and Dillon,
Michigan Gas & Elec. Co., Ashland, Wis.
Read & Co. Inc. (jointly); Central Republic Co. (stock)
une 24 filed $3,500,000 of series A first mortgage bonds,
and Smith, Barney & Co.
(stock); Glore, Forgan & Co.
due 1976; 14,000 shares ($100 par) cumulative preferred
and W. C. Langley & Co. (stock). Offering—To the pub^
stock and 120,000 shares ($10 par) common stock.
Un¬
liq.
Price—To be determined by competitive bidding.
derwriters—To be determined by competitive bidding.
Proceeds—Proceeds will be used to redeem $38,000,000
Probable bidders include Blyth & Co., Inc.; Kidder, Peaof 3%% bonds, due 1966 and 40,000 shares of first pre¬
body & Co.; The First Boston Corp.; Harris, Hall & Co.
ferred stock, Series B.
Business—Public utility.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
•
Kensington Mines Inc., Seattle, Wash.
Haupt & Co.
Offering—New preferred will be offered
on a share for share exchange basis to
holders of its
Nov. 5 (letter of notification) 104,375 shares (20c par)
outstanding 7% prior lien, $6 no-par prior lien, 6%
common. Price, 20 cents a share; No underwriting. For
preferred and $6 (no par) preferred.
Of the common
development of mining property.
l', Y\
f
V,
VY. Y ' V
's.'
.Y;Y:V:- \,V- stock being registered, company is selling 40,000 shares,
i ; Kimberly-Clark Corp.* Neenah, Wis. .
Middle West is selling 57,226 shares and Halsey, Stuart
Proceeds
Nov. 6 filed 70,000 shares ($100 par) 4% convertible ;/ & Co. Inc., New York, is selling 22,774 shares.
—Michigan will use net proceeds from bonds to redeem
cumulative < second preferred. Underwriters —■ Lehman
Brothers, Hallgarten & Co., New York, and the Wis- Y $3,500,000 3%% series A first mortgage bonds, due 1972,
at 106.75 and interest.
Net proceeds from sale of com¬
consin Co. (Milwaukee). Price by amendment. Proceeds
mon and from shares of new preferred not issued in ex¬
—To be added to general funds for use in financing
change will be used to redeem $375,000 3Y2% serial de¬
acquisition of additional plants and facilities. The com¬
bentures, due 1951, at 101.2 and interest; It also will
pany contemplates a $21,500,000 expansion program ex¬
;

M°-

Y; Y- Y vY

.': Y Y.

YYYY;YYYY'

redeem

be completed in 1949. Additional funds for
will be provided from a $8,000,000 loan.
Business—Paper manufacturers.

York,
Higginson Corp., Chicago. Price—By amend¬
ment. Proceeds—The stock is issued and outstanding and
is being sold by shareholders. Names of the selling
stockholders and the number of shares to be sold by each
will be supplied by amendment.
Y' Y Y Y
National Manufacture and Stores Corp.,
June 12

stock.

Lake State Products, Inc., Jackson,

Aug. 27 (letter of

notification)

for benefit of

common

Evans & Co., Inc. Proceeds—For redemp¬
outstanding $2.50 class A non-cumulative stock.
Postponed indefinitely.
' •
tion of

National Tile & Mfg. Co., Anderson, Ind.
Oct.

(letter of notification) 50,000 shares ($1 par)
Offering to stockholders for subscription at the

stock.

Underwriter—Keane

all of the

shares which latter

common

being sold by stockholders.; Price by amendment,
Proceeds—Company will use proceeds from the sale of

;

preferred shares to redeem all unexchanged shares
preferred and partially- to reimburse - working
capital for funds expended in the erection of a new mill
sat Glasgow, Va.
the

Macco

Underwriter

—

amendment. Proceeds —;

($1

capital

par)

stock.

To pay off outstanding

bank loans.

<|ct 21 (letter of notification) 150,000 shares
sjtock (par $1)
each

on behalf of company and 25,000 shares
behalf of A. R. Griffith, C. W. Mills, A. J. Chis-

holm, Jr. and C. M. Spicer, all officers and directors of
the

company.

Mills, Denver.
Y

Price—$1

share.

Underwriter—C.

W.Y

June

filed

150,000

Underwriters—To

bidding.

Probable

($10

determined

bidders

par) capital stock.
through competitive

include

The

First

Boston

Mississippi Fire, Casualty A Surety Corp.

Hollywood, Calif.

Of the total,

owned

stitute

by Standard Gas & Electric Co. and con¬
of the company's outstanding common.

56.39%

Sale Postponed—Standard Gas & Electric Co.

asked for

bids for the purchase

of the stock on Sept. 4, but the
sale has been temporarily postponed.

Murphy (G. C.)

Co., McKeesport, Pa.

June 13 filed 250,000 shares of common stock

(par $1).
Underwriter-^-Smith, Barney & Co.
Price by amend¬
ment.
Proceeds—Redemption of outstanding 4%% pre¬
ferred stock at $109 a share plus dividends. Indefinitely
postponed.
< Y" ,J
;'
,

Mutual

common

Telephone Co., Honolulu, Hawaii

150,000 shares ($10. par) common stock.
Offering — For subscription to
stockholders at $10 a share in the ratio of one

for

each

four

will

held

record

Nov.

sold[ at public auction to

Price—$10

share.

Proceeds—Pro¬

Aug. 22 filed 175,418 shares ($1 par)
Underwriters—Goldman, Sachs & Co.,

stock.
and Hemphill,
Noyes & Co. Price—By amendment. Proceeds—Net pro¬
ceeds go "to 11 shareholders who are selling the stock
being registered. Offering temporarily postponed.

common

National Alfalfa

Lamar, Colo.

Y. Y

May McEwen Kaiser Co., Burlington, N. C.

withdrawn Aug.

12.

Sale postponed indefinitely.

Dehydrating & Milling Co.,
(11/19)>

June 28 filed 58,860 shares of 5% cumulative
stock ($100 par) with common stock purchase
and

505,220 shares of

writers—Stone

common

Webster

preferred
warrants
stock ($1 par).
Under¬

Securities

Corp.,

and

Bos-

worth, Sullivan & Co. Price by amendment. Proceeds—;
Shares are outstanding and are being sold by stock¬
holders.

Y New Plastic Corp., Los Angeles (11/14-15)

■

notification) £0,000 shares of $2.25 (par
60c) preferred, cumulative and convertible, and 34,000
warrants for common ($1 par) not exercisable until one
year from date of issuance. Prices—$9.75 a preferred
a common

Co., New York.

Underwriter—Grimm

warrant.

Proceeds—For expansion and work-

Electric &

Gas

Corp.,

Ithaca

bonds, due 1976,

150,000 shares of ($100 par) cumulative preferred.
Underwriters—To be determined by competitive bidding.
Probable bidders include Blyth & Co.

and Smith, Barney

(jointly); First Boston Corp. and Glore, Forgan &
(jointly) and Halsey, Stuart & Co. Inc. (bonds only).
Proceeds—Estimated proceeds of $28,000,000, together
& Co.
Co.

a $6,000,000 contribution from NY PA NJ Utilities
Co., parent, will be used for redemption of $13,000,000 ;
of 33/4% bonds, due 1964, and 120,000 shares ($100 par)
5-10% cumulative serial preferred and to finance new

constructions.

Mfg. Co., La Crosse, Wis^
Aug. 29 filed 70,000 shares ($2 par) common stock.
Underwriter—Cruttenden & Co.
Offering—All "hares
are issued and outstanding and being sold for the account
of present holders.
Price—$16 a share. Proceeds To
selling stockholders. Indefinitely postponed!
Northern Engraving &

Northern

Indiana

Public Service Co.

shares of common
as shares will be
offered under competitive bidding. Probable bidders in¬
clude Blyth & Co., Inc.; The First Boston Corp.; Stone
& Webster Securities Corp., and Harriman Ripley &
Co., Inc. (jointly). Of the shares registered, 182,667 are
being sold by Midland Realization Co.; 54,426 by Mid¬
land Utilities Co., and 146,923 by Middle West Corp.

Aug. 28 filed maximum of 384,016
stock. Underwriters by amendment

filed

Unsubscribed

550,000 will be sold to the public and 50,000 will be sold
to employees (latter shares not underwritten). Price by
amendment.

the bonds and the common
the company Aug. 13

with

service.

by stockholders.

to be received by

Oct 30 filed $13,000,000 first mortgage

being .sold

purchase

were

SEC has extended to Nov.

refinancing may be carried out.

and

($1 par) common.
Under¬
writer—Goldman, Sachs & Co., New York.
Offering—
are

the

New York State

ceeds, estimated at $1,485,610, will be used to repay
short-term bank loans and to finance plant replacements
and
improvements.
Business — Furnishing
telephone

Oct. .25 filed 600,000 shares

shares. The
which

lilYN.^

1 filed 29,126 shares ($50 par) 4% % cumulative
preferred and 55,000 shares ($10 par) common. Under-'
writer—Hallgarten & Co., New York. Price by amend-*
ment.
Proceeds—Shares are issued and outstanding and

f the highest bidder.
Factor & Co.,

par).

ling capital.

Nov.

Oct. 28

Max

within

share and 10c

Underwriting—None.

•'

($5

Oct. 31 (letter of

Company is to be organized in Mississippi.

Merrill Lynch, Pierce, Fenner & Beane.

Co., parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
Holding Company Act.
:

common

for

were

August 19 (letter of notification) 14,000 shares ($10 par)
common stock, offering price $20 a share. Underwriter—
Clany M. Seay, Jackson, Miss, will undertake to obtain
signatures authorizing subscriptions for the stock to
create capital and surplus for operation of business.

Proceeds—The
being sold by Consolidated Electric and Gas*

new

Bids

(letter of notification) $95,000 4% first closed
mortgage sinking fund bo ids, due 1960.
Price—Not
more than 98*2 per unit.
Underwriter—Boettcher and
Co., Denver, and Hutchinson & Co., Pueblo, Colo. For
retirement of debt and for working capital.

Corp."; Kidder, Peabody & Co., and Blyth & Co., Inc.(jointly); Harriman Ripley & Co; Coffin & Burr and
are

30 time

Middlekamp Building Corp., Pueblo, Colo.

For equipment and working capital.

JMaine Public Service Co., Preque Isle, Me.

and

Samuel

Oct. 23

are

common

and

Underwriters—By amendment.
Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody & Co. (jointly).
Offering—Bonds and common stock are being offered in
connection
with a
compromise recapitalization plan
approved by the SEC, on June 24, 1946, which among
other things provides for the elimination of all out¬
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000

Co. and Smith Barney & Co. (jointly); Harriman,
Ripley & Co.; The First Boston Corp. Offering—Shares,

■

outstanding

Bidders may include

being sold a group of stockholders who will receive
proceeds from the sale.

Madison Petroleum Co., Basin, Wyo.

and

are
being sold by
Friedman,
President
and Secretary-Treasurer, respectively, each selling 15,000
shares of preferred and 15,000 shares of common. Price
—$10 a share for the preferred and $6 a share for the
common. '
Y
^

mon
:

&
•'

■

Price—By

July 11 filed $22,500,000 20-year collateral trust sinking

Mountain States Power Co.
Offering—Stock will be offered publicly in the U. S. at*; June 6. .filed
140,614 shares of common stock (no par);
40c a share (Canadian money).
Proceeds—Proceeds,
Underwriters—To be determined by competitive bidding.
estimated at $75,000, will be used in operati'on Of the
Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb
•

held.

For additional working

fund Series A bonds, and a maximum of 1,568,980 com¬

Toronto,

June 7 filed 250,000 shares of capital stock (par 40c),
Underwriters — Names to be supplied by amendment.

company.

Y.YYY Y Y: YY'YY'' Y

are

Mada Yellowknife Gold Mines, Ltd., Toronto

2l/z

New England Gas and Electric Association

Morris Paper Mills, Chicago

Dean Witter & Co., Los Angeles. Price-

each

underwriting.

Cohen

stock which
t

Corp., Clearwater, Calif.

iSeptj 25 filed 100,000

company is selling $1,000,000 shares and the re¬
maining 250,000 shares are being sold for the account of
the principal underwriter, brokers and dealers, which
shares they will receive as additional compensation on
the basis of 250 shares for every 1,000 shares sold for
the company/Price—60 cents a share. The underwriters
will receive a discount on the 1,000,000 shares of 15 cents
each; Proceeds—For exploration and mine development

-Y

are

work.

(11/21)

($100 par) cumulative pre- "
ferred and 203,833 shares ($3 par) common. Underwriter
—Morgan Stanley & Co., New York. Offering—Company
Will offer 14,399 shares of the new preferred in exchange,
oh a. share for share basis, for its 7% cumulative pre¬
ferred,
The exchange offer will expire Nov. 25.
Any;
shares not issued in exchange will be sold to under¬
as

Y 1 f"' ■

filed 100,000 shares ($1 par) common stock.
Underwriters—Cray, McFawn & Co., Detroit. Offering—
To be offered publicly at $8.25 a share. Proceeds—Pur¬
chase additional facilities, expansion, etc. Offering in¬

Oct Y 31 filed 30,000 shares

well

total

capital.

issued

are

Oct 21 filed 1,250,000 shares ($1 par) common. Under¬
writer—R. J. Hale, East Aurora, N. Y. Offering—Of the

150,000 shares of (100
par) common and 57,000 shares ($5 par) 6% cumulative
convertible preferred, Series A. Price—10 cents a com¬
mon
share and $5 a preferred share. Underwriter—
Gearhart & Co., Inc., New York. Proceeds—To replace
working capital used to promote new publication called
Fashion? Trades and
to provide additional working

writers

Y:YY: Canada

(letter of notification)

(James) & Sons Co.

'vY";/-?'

for

Aug. 2 filed 30,000 shares of 6% cumulative convertible
preferred (par $10), and 30,000 common shares ($1 par).
Underwriters—Names by amendment. Offering—Shares
Maurice

Midas Yellowknife Gold Mines Ltd.,

^Leader Enterprises, Inc., New York

Lee

Newburgh Steel Co., Inc., Detroit

all unexchanged

dividends

accrued

capital.$;&^Y^

definitely postponed.

uct, an automatic dishwashing machine in commercial
quantities. Offering delayed due to mafket conditions.

•

and

amendment.

June 27
-

Co., Petroit.
Offering—Price $2.50 a share. Proceeds
for working capital to enable issuer to produce Its prod¬

£>ept. 26

105

rate

Michigan Steel Casting Co., Detroit

Mich.

100,000 shares ($1 par)

issuer.

Atlanta

(letter of notification) 8,500 shares of common
Offering price, $35. a share.
Underwriters—

Clement A.

shares of prior lien and preferred stocks.

the program

com¬

Lee

pected to

($2.50 par)

shares. Underwriters—First Boston Corp., New

and

unspecified number

mon

Nugenfs National:Stores, Inc., New

York

par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearhart
& Co., Inc.
Price, $6.75 a share. Proceeds—Net pro¬
ceeds to the company from 62,000 shares, estimated at
$350,200, will be applied as follows: About $111,300 for
retirement of outstanding preferred stock; $41,649 to
purchase 100% of the stock of two affiliates, &|id bal¬
ance $197,000 for other
corporate purposes. The pro-;
ceeds from the other 3,000 shares will go to selling
stockholders. Offering temporarily postponed.
June

Ohio

filed

85,000

($1

Associated Telephone Co.

Sept. 11 filed 35,000

shares (no par) $2 cumulative pre¬

Underwriters—Paine, Webber, Jackson & Curtis
and Stone & Webster Securities, New York.
Offering—
Of the shares registered, 21,000 are being sold by the
ferred

(Continued on page 2516)

S'MMC'O

*Jr:.
!7

4;
-

THE COMMERCIAL& FINANCIAL CHRONICLE|i 1

2516

1946

Thursday^ November-14,

■

(Continued from
and

company

2515)

page

be sold.

•

;;

Old Republic Credit Life Insurance Co.,

Nov, 7

•

V. ! 7

share.

No underwriting.

■

Peninsular Qi|

For

7 * 7;

■

(par $1).

common

Under¬

writer—Sabiston

60,000 shares of capital
stock. To be offered for subscription at $3 a share to
stockholders. Unsubscribed shares will be sold to officers,

Hughes, Ltd., Toronto, Canada. Price—

60 cents

Chicago

Kidder, Peabody & Co.
Price—By amendment. Pro¬
ceeds—Proceeds, together with bank loans, will be used
to increase working capital.
Such funds are deemed ;
necessary in view of the additional facilities that com¬
pany intends to acquire and its large backlog of peace*;

pay¬

Corp., Ltd., Montreal, Canada

Sept. 3 filed 600,000 shares of

(letter of notification)

directors and employees. Proceeds
tional capital.
*

ment of debt and working capital.

remaining 14,000 are being sold by
General Telephone Corp,
Price—By amendment.
Of¬
fering indefinitely ppstponedr
1
1
.

Price—$2

the

Proceeds—Net proceeds will be used to

share.

purchase

drilling^ machinery; and

7,77'i:7'7/77 77_777 ).7 7 ^7■ \:v 17-'7

'!•

•

other

*
7.r-1v7^:"7'■ ^ 77777

time business.
•

equipment.
J-7'7;!; 7'77/'i: 1"7'7-;'

Oct.

;

(

par) prio*.

of notification)' 60,000 shares ($5

preferred stock!; PriceL-$5 a share, No; underwriting,';
A portion of the stock will be issued as part payment
to employees under the company's profit sharing plan
and to suppliers in part payment of their invoices.
For

(letter of notification) 50,000 shares ($10 par)
Price, $10 a share. No underwriting. ' Man

common!

Inc.; Brooklyn

Republic Drill & Tool Co., Chicago

Nov. 4 (letter

People's Service Corp., Philadelphia

will be used as addi¬

Old Town Ribbon & Carbon Co.

'■■*

facture retail wearing apparel.

new machinery and equipment and for, working capital.
140,900 shares ($5 par) common. The.
C\\. «(f
7" J ; ' 'l
1
/U'.v.!»
7/ '! tf
Pharis Tire & Rubber Co., Newark, O.
being sold by three stockholders. Underwriter vRepublic Pictures Corp., New York
Sept. 27 filed 100,000 Shares ($20 par) cumulative con- 7
—The First Boston Corp., New York. Price—By amend¬
ment.
/, •'
/-/.v vertible preferred. Underwriter—Van Alstyne, Noel & 7 Registration originally filed July 31 covered _184,821
Co. and G. L. Ohrstrom & Co., New York. Price—$20 a
shares of $1 cumulative convertible preferred ($10 par)
share. Proceeds—For payment of loans and to replace
Orange-Crush de Cuba, S. A., Havana, Cuba
and 277,231 shares (50c par) common stock, with Sterling,
working capital expended in purchase of building from ' Grace & Co. as underwriters. ' Company has decided to
July 22 filed 125,000 shares ($1 par) common and 40,000
RFC and to complete construction of a building, : .;
warrants.
; issue
Underwriter—Floyd D. Cerf Co., Inc., Chicago.
454,465 shares pf common stock only, which will be

Sept.

filed

shares are

Offering—price $4.75

share.
Proceeds—Of the total
company is selling 37,500 shares and stockholders are
selling 87,500 shares.: The company will use its proceeds
for equipment and working capitals
* / /'
>
a

offered for

Philadelphia Electric Co.," Philadelphia, Pa. 7

not. be underwritten.

Nov. 4 filed $30,000,000 of first and refunding mortgage
bonds, .due 1981, and 300,000 shares ($100 par) preferred
Oxford Radio Corp., Chicago
stock.
Underwriters—To be determined by competitive
Probable, bidders include The, First Boston!
Oct. 11 (letter of notification) 60,000 shares ($1 par) I bidding.
common.
Offering—Price $5 a share,: Underwriter/-- ?; Corp.; Halsey, Stuart & Co. (bonds only); Morgan Stan- !
ley & Co.; W. C. Langley & Co., and Glore, Forgan &
Moyd D. Cerf Co., Inc., Chicago. Proceeds—For payment
Co. (jointly); and White,Weld & Co. (bonds only).Offer¬
of note purchase of machine tools and testing equipmenting—To the public. Pric^ .to be determined by competi¬
and for general corporate purposes. Business—Engaged
tive bidding.; Proceeds—Proceeds of, about $60,000,000
lh
manufacture
of
many
types and sizes of - radio
speakers, communication loud speakers and sound re-, before deducting expenses will be used to. pay off; $18,000,000 of 1 Va % promissory notes and to finance part of:
producing equipment to sell to radio manufacturers and
the company's construction program which will require
'
approximately $42,000,000. Bids Invited—Bids on the
j>
v
7
!rv *■"- <y*
bonds will be opened Dec. 10 and bids on the preferred
Pacific Power & Light Co., Portland, Ore.
s

•

July 10 filed 100,000 shares ($100 par) preferred stock.
Underwriters—By amendment. Probable bidders include!
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney &
Co.

Newark, N. J»
($2 par) com¬
entitled to rer
ceive fractional shares of common as result of stock;;
split-up. Price, at market. Proceeds will go to the holders
of outstanding scrip in exchange for such scrip.
e

Pal

Underwriters

—

225,000 shares

Sept. 23 (letter of notification) 14,164 shares of $5 par
Offering—To be offered for; subscription to
present stockholders on the basis of one share for each
share held. Price not disclosed although, it is stated that

are

Co.,

outstanding and

Inc.

are

Offering

being sold by 10

Co.,

Oct. 25 filed

equipment,

pay

$14,000,000 1st mortgage

•

(11/19)

bonds,'due498il

lon, Read & Co. Inc.; Harriman Ripley & Co.; Blyth &
Co., Inc.; Lee Higginson Corp.; Alex. Brown & Sons and
White, Weld & Co. (jointly). Proceeds—Offering is part;
of the company's refinancing program which includes
the issue and sale of $5,000,000 10-year serial notes, bear¬
ing interest at 1.75%.' Proceeds, together with treasury
funds, will be used to redeem $19,131,000 1st mtge. sink-;
ing fund gold bonds, 4V2% series due 1979, at 102%.
Bids Invited—Bids for the purchase of the bonds will

Inc.,; New York.

be received at company's office. Lexington Building,
Baltimore, up to 12 noon, (EST), Nov. 19, /

bank loans, and other corporate purposes.

Portis Style

Underwriting—To be determined by competitive bidding.
Probable bidders include Halsey, Stuart & Co. Inc.; Dil¬

is being sold by certain stockholders.
Prices—
Preferred, $10 a share; common, $4 a share. Proceeds—
Proceeds from sale of preferred will be used to purchase

Palmetto Fibre Corp., Washington, D. C.
August 16 filed 4,000,000 shares (100 par) preference

Safe Harbor Water Power Corp.

common

Underwriting—Tellier &

New York

date indefinite

and

—

stockholders, and 2,500 shares are being sold by A. L.
Marlman Jo all salaried employees. Indefinitely post-

stock.

Inc.,

Works,

July 29 filed 100,000 shares common stock. Underwriters
—Hayden, Stone & Co. Offering—The selling stockhold¬
ers, who include Robert Z. Greene, President, are offer*;
ing the shares to the public through the underwriters,
for their own account. Price, by amendment. Offering

Aug. 27 "filed 60,000 shares of preferred stock ($10 par)
75,000 shares of common (par 50c).' Underwriter—
Herrick, Waddell & Co., Inc.
Offering—Company is
offering the preferred stock to the public, while the

Metal

Y f.

common.

Inc.,'New .York"; 7
■
- t'i( 4 ■■
227,&00 shares? ($1 par) capital stock.
Eberstadt

Art

•yv

Plastic Molded Arts,

Blade Co.,

June 28, 1946Jiled

Ronson

Rowe Corp.,

pose of refinancing at a lower dividend rate the 67,009!
company wishes to have available 6,000 /shares to take:
outstanding preferred shares of Pacific and the 47,806;
care of options which it proposes to give to manage*!
preferred shares of Northern Electric Co., in connection
ment for past services, the options to run over a period
with the proposed merger of Northwestern into Pacific.
of two years and six months and provide that the stock
In connection with the merger, the outstanding preferred -j;
may be purchased at $10 a share within 18 months and
-stocks of Pacific and Northwestern will be exchanged*
thereafter and: before the expiration of the option, at
share for share; with cash adjustments, for the new pre¬
$15. a share. No underwriting. For exploitation of its
ferred stock of Pacific, the surviving corporation. Offer¬
ing price—To be supplied by amendment,7 -7-! 77^7 .'.business;77'47777-'>>!7^
«

!j'

•

Nov. 7 (letter of notification) 99 shares of
mon on behalf of scrip holders who were

Phillips & Benjamin Co., Waterbury, Conn,

(jointly); The First Boston Corp., W. C. Langley & Co.;,

Harriman Ripley & Co. Offering—Company proposes to
issue the 100,000 shares, of new preferred for the put-

(

record'Sept.

five held. Issue will;

Reynolds Pen Co., Chicago

stock will be opened Dec, 3.

May 4 filed 400,000 shares of common stock (no par),
of which 100,000 shares are being sold by company and
300,000 by
stockholders.
Underwriters—Names; by ;
amendment. Offering—Terms by amendment, proceeds
—Net proceeds to the company will be added to working
capital. : ^.7 ■ ■ ;;;;!'•;;!v 777^V;7

subscription to stockholders of

5 to the extent of one share for each

(12/3-10)

Industries, Inc., Chicago

St.

New York. Price

Regis Paper Co., New York

Sept. 27 filed 110,000 shares ($1. par) common. Under¬
Sept. 27 filed 150,000 shares ($10Q par) first preferred.
will use esti-v writers—Brailsford & Co., and Shillinglaw, Bolger &
mated net proceeds of $1,473,000 for
Underwriter—To be supplied by amendment. Probable
purchase of a new
Co., Chicago. Offering—Of the total 100,000 shares will
.factory- near Punta Gorda, Florida, at a cost-of about
underwriter, White, Weld & Co. Offering—Terms ol
be offered to the public and 10,000 to employees of the /
$951,928. It:will set* aside $150,000 for research and, de¬
offering and price by amendment. Proceeds—Net pro¬
company. Price—Price to public $6.50 a share. Price to ;
velopment purposes and the balance will be used as
ceeds will be used to redeem company's 5% cumulative
employees $5,525 ^ a share. Proceeds—Shares are being
iDperating •; capitaL7777.
•
prior preferred stocks and an unspecified amount will b®
sold byifour stockholders of the: company who *will re*!
advanced to Taggart Corp., a subsidiary, for redemption
Pantasote Plastics Inc.,
ceive; proceeds/The registration! showed that the com-T
Passaic, N. J.
of its $2.50 cumulative preferred. Both securities are
pany changed its authorized capital from 4,000 shares;
Sept. 27 filed 60,000 shares ($25 par) 4%% cumulative
redeemable at $52.50 a share plus accrued dividends
($100 par) common to 400,000 shares ($1 par). Each
preferred and 1,352,677 shares ($1 par) common. Under¬
In addition, the company will apply $2,675,000 of the
writer—Underwriting arrangements will be supplied by .shares of $100 par common was changed into 106 shares
proceeds as advances to Alabama Pulp and Paper Co., 01
of $1 par common, /which exchange was consummated;
amendment, but it is contemplated that Van Alstyne,
whose common stock the company owns 25,000 shares.
Sept, 23.
The balance of proceeds will be used to restore working
/ {Noel & Co., New York, may be one of the underwriters.
Offering—Company is making an exchange offer to
capital.
7 Precision Parts^-'Co* of Anil Arbor, Mich.
stockholders of Textileather Corp.,
Toledo, O.; The
July 5 filed 75,000 shares 5% cumulative convertible
Bantasote Co., Passaic, N. J.; and Astra
Scripto. Inc., Atlanta, Ga.
Realty Co., New
preferred stock ($10 par). / Underwriter—Van Alstyne,!:
York, for the purpose of acquiring the controlling inNoel & Co. and associates.
Price by amendment. Pro-;
Aug. 7 filed 25,000 shares ($10 par) 5% cumul. converti¬
terests of the companies. Pantasote Plastics will offer
ceeds—Of the net proceeds, $250,000 will be used to pay
ble preferred stock and 244,000 shares ($1 par) common
three shares of its common, plus % of a share of
pre¬
3% notes held by National Bank of Detroit, $75,000 to / stock. Underwriters—Glement A. Evans & Co., Inc., At¬
ferred, for each share of Textileather common. It will
reimburse treasury for sums spent in acquisition of the
lanta. Price of preferred $10.75 per share; price of com¬
offer two shares of its
common ; for tone
share of
electrical division plant of the company, $30,000 for con¬
mon, $5,625 per share.
Proceeds—Company is selling
^Pantasote, common, and. 12 shares of its common for
struction, of space for executive offices in the economy
the 25,000 shares of preferred to the underwriters at
-■each shares of Astra common. It is
proposed that under¬
baler plant, and the balance will be deposited with gen¬
$10 a share and stockholders are selling 244,000 shares
writers will offer publicly a maximum of
60,000 shares
eral funds. Offering temporarily postponed.
to the underwriters at $5 a share.
The registration
,
.,of preferred and 250,000 shares of
common, of which
stated that 24,000 of the 244,000 shares of common afe
£12,853 shares of preferred and 50,000 shares of common
Randall Graphite Products Corp., Chicago
| being reserved for a period of four days following the
l&re to be purchased by the underwriters from the comOct. 15 filed 100,000 shares ($1 par) common. Under- ; effective "date of the registration for sale to employees^
panyrand the balance (which are part of the shares to be
officers and directors at $5 a share.! The company also
:
writer—White^ Noble & Co. and Smithr Hague. & -Co.,
^received under the exchange
offer) are to be purchased
is selling 200,000 stock purchase warrants to executives
Detroit. Price—$3.50 a share. Proceeds—Net proceeds
t from selling stockholders. Proceeds
Proceeds to the
of the company at 50 cents a warrant; - Company will
/ go to selling stockholders. / Business—Graphite bronze
i: company will be applied to make loans to Textileather
use its proceeds for general corporate purposes.
Offering
bushings and other products.
/
^
;
^and Pantasote for various corporate purposes.
^*50 cents

share. Proceeds—The
company

—

date indefinite.

Parcel Air

Read

Express, Long Beach, Calif.

(letter of notification) 180,000 shares ($1 par)I
Price; $1 a share. No underwriting. For work¬
ing capital. .;•{■•!!
7!
(11/19)

ufacture

pari-mutuel

other corporate purposes.

totalizing
.v.7 .«•

■

machines

and

Reed-Prentice Corp., Worcester, Mass.

Pedlow Machine Co., Chester, Pa.

Underwriter—Tucker, Anthony & Co., New York. PriceProceeds—The. shares are ,being sold .
by sto9kholders who will receive proceeds. -' ■ 7
y

Oct 30 (letter of notification) '150,000 shares ($1 par)i
10c

Class A common.

Company will exchange 14,500

shares for outstanding preferred and $135,000 shares will

Republic Aviation Corp., Farmingdale, N. Y.
Oct.

filed

ferred stock.

100,000 shares. ($50 par)

ing 140,000 issued and outstanding shares. Company is
offering 100,000 shares; Price by amendment. Proceeds

rf-From; company's 100,000 shares proceeds will be used
loans and commercial paper

4-By amendment.
-

to reduce outstanding bank

Oct. 11 filed 120,300 shares of common stock- (par $2.50).

for

D« C.

;

Aug. 29 filed 240,000 shares of common stock (par $1).
Underwriters—Van Alstyne, Noel & Co., and Johnston,
Lemon & Co.
Offering—Certain stdckholders are sell¬

Get. 17 (letter of notification)

75,000 shares of common
(10 par). Offering price—$2.75 a share.
Underwriting
—Howell, Porter & McGiffin, Inc.; New York. For man¬

Seaboard Finance Co., Washington,

writer—Van Alstyne, Noel

common.

Pari-Mutuel Totalizer Corp., N. Y.

Co., Bridgeport, Conn.

Sept. 21 filed 100,000 shares (250 par) common. Under¬
& Co., New York. Price—
By amendment. Proceeds—Estimated net proceeds of
$476,362 will be used to pay off a loan from the Marine
Midland Trust Co., New York.
;
•
:
;
;

Nov. 7

(D. M.)

convertible; pre-;
Underwriters^-Hayden, Stone & Co., and j

and
•

for

other

postponed./

corporate reasons, Offering temporarily;'

:7;;!•> !!!,:

''i/;!'-.:/

7-Up Texas Corp., Houston, Texas

/•••

,-v

pet. 28 filed 71,141 shares (45c par), Class A common c
and 35.441 shares (45c par) Class B common. " Under7
writing—The underwriters who are also the sellings

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

yolume 164
.

(stockholders

Dempsey-Tegeler Co., St. Louis,

are

Stifel; Nicolaus &
Co., Inc., St. Louis, Mo.; and Rauscher, Pierce & Co.,
Inc., Dallas, Tex. Price by amendment,

y' Shatterproof

Glass Corp., Detroit, Mich.
par)'

Oct. 28 filed 280,000 shares ($1

shares, for their own account. Offering—Price $6.75 a!
Options—Selling stockholders are also selling to*
the underwriters at 7 cents per option warrant options to r,
purchase 18,000 shares of the issued and outstanding
common owned by them.
They are also selling to Hallgarten ,& Co., for $1,500, plus $360 as a contribution toward the expenses of issuance, options to purchase an
additional 18,000 shares of the issued and outstanding-

Mo.;

Co., San Antonio, Tex.;

Dittmar

writing—None.
To be sold through brokers on overmarket.
Offering—The shares are issued

;

$1.12% cumulative convertible preferred stock, series A (par $20).. Underwriters—Van Alstyne, Noel & Co.
Price by amendment.
Proceeds—Net proceeds will be applied for the redemp¬
tion of outstanding series A convertible preferred stock
ceeds

also

converted into

will

used

common

■

Knoxville,

Tenn.

'7~>'' ^

' \

v *

Soss Manufacturing Co.,

?■

I»'

4 ' ' '}

•

'*■

•'

<•*'

Texas Vitrified

Nov.

-V

*' 4

Detroit, Mich.

Pipe Co., Mineral Wells, Texas

•

unsubscribed shares will be sold to underwriters at same

}

».,i'

* '•

•

(par 50c). Underwriter—Ayres

Stern & Stern Textiles, Inc.,

—

deducting

i$995,00Q

St. Louis

Aug; 28 filed 102,759\ shares common stock (par $5).
Underwriter—Goldman, Sachs & Co.
Offering—Eight
celling stockholders are disposing of 62,000 shares, and l
the company will offer 40,759 shares initially to its pre¬
ferred and common^ stockholders.
Price by amendment
Proceeds—Net proceeds from the sale of the company's
shares will1 be added to its "buildings construction and
improvement fund." Offering date indefinite.

Corp., Chicago

None. Price

surplus,

Oct. 24 filed 300,000 shares of ($1 par) common. Under¬
writer — Hornblower & Weeks, Chicago. Offering —Of

(no par)

amendmerit.

•

July 18 (letter of notification) 5,500 shares of 4%% first
preferred stock series B ($50 par). Offering price, $50
a share.
Underwriter—First of Michigan Corp., Detroit.

Valsetz Lumber

•,.

A
4

preferred and 2,000 shares ($100 par) 2% cumulative

stock (par $1).

whom

the registrant

has

exclusive

sales

*■

17 filed 50,000

purchase

contract

:s\try,

•

($1

par)

be sold to Templeton.

Price—$100

',i

-v

common

stock.

are to

will .be offered to

certain

ferred

Offering—

•
i

Victor

Nov. 8

Valley

stock
a

;

'1/

sister

Miskend,. President, and Treasurer

The balance

par

share the

6% cumulative pre¬

will be used to

reimburse

treasury for previous expenditure and for

additional working capital.
Zatso Food
Oct.

•"*

Corp., Philadelphia

(letter of notification) $100,000 5%

cumulative

preferred stock (par $100) with common stock as bonus.

Hospital, Victorville, I Calif.

(letter of notification) $150,000 of certificates of-

Island

•

employees at $7.50 a share,
.>

total of 11,000

Of the remaining proceeds, $68,750,-plus

stock.

the company's

New York

capital

The shares will be purchased for

company^ 625 shares of $100

Uriderwriters-i-

share, and 3,500 shares

Offering postponed indefinitely.

be sold

total, 200,000 shares will be sold through the :;

underwriting group at $8.50

general corporate purposes. Offering
/
1
1
I
'

dividends, will be used to redeem at. $110

for: the account of certain stockholders.

the

Herbert

Sherck, Richter & Co., and Straus & Blosser,
Of

total price of $220,522 from Mrs. Gertrude s. Korsh,

Yolande Corp,

July 24 filed 203,500 shares of stock which

Co.Proceeds—For payment of notes,

10,995

outstanding shares.

share for each class

of stock.

preferred and 75 cents a share for common. Underwriter

Needlework, Inc., of Puerto Rico, out of

whereby all the lumber produced by the registrant will

July 12 (letter" of notification) 44,300 shares of ($5 par)
cumulative convertible preferred stock and 44,300 shares
common stock (par 50c).
Offering—Price $6 a share for

shares of common stock (par 50
cents).
Underwriters—Hirsch & Co. : Offering—Company is offering 75,000 o* the shares registered.
Eleven
stockholders are selling 135,000 issued and outstanding

$400,000, together with $87,125 from the sale of 10,250
common shares to J. William Anchell, VibePresident, at $8.50 a share, will be used partly for the

Velvet Freeze, Inc.

Teie-Tone Radio Corp.,

additional

customers of the Herbert A. Templeton Lumber Co. with

Offering—Com¬

Taylor-Graves, Inc., Saybrook, Conn.

Aug. 1 filed 210,000

Lynch.

Courts & Co., Atlanta; Irving Rice & Co., SL Paul, and
Maxwell, Marshall & Co., Los Angeles and New York.
Price—$10 a share.
Proceeds—Estimated net proceeds

cumulative Class

Merrill

jprfce—$10.50 a share.
Proceeds—From 45,000 shares
sold by company will, be applied to working capital
Initially. Offering date indefinite.
„
.
.

Underwriters^—By

include

Underwriters—Headed by E. F. Gillespie & Co., and in¬
cludes Childs, Jeffries & Thorndike, Inc., New York;

Stocks will be offered for sale to customers and former

Trenton, N. J."

temporarily postponed.

bidding.

bidders

filed

Sept.

is selling 45,000 shares, and eight selling stock¬
are disposing of the remaining 150,000 shares,

mortgages and for

Probable

Yolande Corp., New York (11/19)

Co., Portland, Ore.

Oct. 4 filed 14,000 shares ($100 par 2%

holders

—Amos Treat &

competitive

Wyatt Fruit Stores, Dallas, Texas

Proceeds—For enlargements and improvements of power

•

5,000 shares (par $100) preferred stock.
Underwriter—Rauscher, Pierce & Co. Proceeds—Will be
used in part to equip three new cafeterias, to remodel its
super markets and to increase working capitaL ^
" •"

plant facilities. Offering date indeterminable at present.

pany

sold

Nov.

Street & Smith Publications, Inc.

Aug. 28 filed 195,000 shares common
Underwriter—C. K. Pistell & Co., Inc.

Pierce,-: Fenner & Beane; White, Weld & Co.; Glore,
Forgan & Co., and Harriman Ripley & Co. (jointly);
The Wisconsin Co., aud^illon. Read & C6<; Proceeds^*
JPart of the shares are to be solli riy Middle West Corp.,
top holding company of the System, and part by pref¬
erence stockholders of North West Utilities
Co.; parent
of Wisconsin, who elect to sell such shares of Wisconsin

Mich.

by amendment. Proceeds—Of net

Swern & Co.,

Price—

are

amendment.

Upper Michigan Power & Light Co.r Escanaba,

working capital.

CoJ-

convertible prePrice by / common which will
be distributed to them upon the
amendment.
Proceeds—For working capital and ex¬
dissolution of North West Utilities Co.
'
r
:
pansion of business.
M
~
xyyy ■
v.:'•:.1i.
vV;

total, company is selling 200,000 shares and stock¬
are selling the remaining 100,000 shares.
Price

July 17 filed 197,500 shares of common stock. Under¬
writers—Glore, FOrgan & Co.
Offering—The offering
represents a part of the holdings of the present stock¬
holders. Indefinitely postponed.
.«*
"A. J •.

common

Manufacturing Corp., New York
shares

ferred. Underwriters—Names by

holders

proceeds, company will
use $1,225,000, plus a premium of $12,250, together with
.accrued interest, for payment of a bank loan, and $493,500, together with accrued interest, for discharge of its
10-year 6 % debentures. Any balance will be added to

Wisconsin Power & Light
Co., Madisofl, Wlsi
May 21 filed 550,000' shares ($10 par) common stock to

per

it will .classify

expenses,

-V

filed 300,000

Minton

sidiary, retire loans from banks and from White's Em¬
ployees Profit Sharing Trust, and for additional working
capital. Offering date indefinite.
\
~
"1"V.

(letter of notification) 3,000 shares ($100 par)
6%: cumulative preferred.Price—$I00> ai share
No |
underwriting.
Fori working, capital andj payment of
organization disbursements.;
/ .
!
v
H \ ■1-

outstanding and being sold by four in¬
own account.
Price by amendment.
Proceeds—Proceeds from the sale of the preferred stock
will be used to provide funds for a wholly-owned sub¬

U. S. Television

Under¬

common.

dividuals for their

—

$5,000> estimated

White's Auto Stores, Inc.
Atig^ 29 filedj 75,000 shares $1 cumulative convertible
preferred stocky ($20 par) and 50,000 shares common
stock (par $1).
Underwriters—First Colony Corp. and
Childs, Jeffries & Thorndike, Inc.
Offering—Company
is offering 75,000 shares of
preferred; the 50,000 shares

of notification) 23,375 common shares
share. No underwriting; For general work¬
•
1

United States Aluminum Corp*-

Nov.

the

($10 par), common. Under¬
$30 a share. Proceeds — The
company stated that $500,000 of the $1,495,000 proceeds
will constitute the capital of the company, and after
writing

;jamehdment^^:;J^

Stone Container

" 1 •'

Oct. 7 filed 50,000.. shares

New York

($1 par)

•

;

share; common, $8 per shark Pro¬
ceeds—>Will be used to redeem $625,000 4% bonds and
$638,600 first and second debentures; balance for:working
capital.
;

(letter
a

245,000 shares

Underwriter—Sills

common.

Toro Manufacturing Corp. of Minnesota, Minn.
8

—

Preferred, $10

United Benefit Fire Insurance Co., Omahar Neb.

29 filed 16,666 shares of common stock ($1 par).
Underwriter—Carl M. Loeb, Rhoades & Co. Price by

Stix, Baer & Fuller Co.,

'''C

: •

!Aug.

•

V'-'; vvt'r?" '•'' VT

Price, $12.50
ing funds.

Barley & Associates, Inc., (165 Broadway, Suite 1717)
'New York. Price — $100 per unit. Proceeds—for working

^capital, machinery, equipment, etc," -

•

Nov.

»v c;-' V

Inc., Seattle, Wash.

Wheeler, Osgood Co., Tacoma, Wash.

interest and
:' ^:r r''• •^'

■

•• ■;

filed

;v.:r

dividends.

(leter of notification) 2,985 units of stock, each
arnit consisting of one share of $6 cumulative (no par)
*ion-voting, non-convertible, preferred stock and one

will

Oct. 7 filed 80,000 shares ($5 par) 50c cumulative convertible preferred stock and 100,000 shares
($1 par)

only); Blyth & Co., iInc.; and
Smith,- Barney & Co. Price to be determined by competi¬

Oct. 14

;

West Virginia Water Service Co.

Edison Co.

ing a - payment; of $53

■

•'V

•

Aug.. 6 filed 46,400 shares (no par) common. Under¬
writer—Shea & Co., Boston.
Price, by amendment.
Proceeds—Shea & Co. is selling 26,400 shares for its own
account and the remaining 20,000 shares are
being sold
by Allen & Co., New York, with Shea as underwriter*

500,000 bank loan and if necessary, the $5,000,000 to be

Stereo Pictures Corp., New York

tshare of common stock

(O.)

balance

of various expenses, repayment of bank
loans,
purchase of equipment and for working capitaL
;

contributed by its parent. Cities Service Co., will be used ;
to redeem outstanding debt arid preferred stock, involv-,

..
'

> i

ment

Providence, R. I,

tive bidding. Proceeds—Net. proceeds together with $4,-

general
'

Price,

about $210,-

Auchincloss, Parker & Redpath, Washington,
D. C. Price—-$7 a share. Proceeds—Will be used for
pay¬

Stuart & Co. Inc; (bonds

Offering—Price to public by
Proceeds—Net proceeds will be added to

use

accrued
dividends.
The
to general corporate funds.

Sept. 2

Underwriters^—To be determined by competitive bidding.
Probable bidders include The First Boston Corp.; Halsey,

Underwriters—Otis & Co.

ft,," "

Textron Inc.,

Toledo

Steep Rock Iron Mines Ltd., Ontario

respective

'f\*la' .A?/7'

writer

Oct. 25 filed $32,000,000 first mortgage bonds, due 1976,
and 1,60,000 shares of ($100 par) cumulative preferred.

postponed.

general funds and will be available for
corporate purposes.* Offering date indefinite,1 .

by shareholders.
The
supplied by amendment.

Proceeds—Company will

West Coast Airlines,

(letter of natification) 12,000 shares of 5% con- \
vertible preferred, to be offered in exchange for shares
of class A common of Textron Southern Inc. for the
purpose of increasing the issuer's equity in Textron ;
Southern. There will be no public offering of the shares.

Public offering price of unsubscribed

shares by amendment. Proceeds-r-^Fof expansion of "plant
facilities and for additional working capital.; Offering ;

the

and
be

and

N6v. 8

/amendment.

added

(letter of notification) 3,000 shares (no par)
common. Price, $100 a share. No
underwriting. For con¬
struction and equipping a plant.
J.
i
t

March 27 filed 500,000 shares of capital stock (par $1).

Citv

000 of its

preferred share for each five shares of common held
—

National

Inc., Chicago. Offering—To be offered to common stock¬
at $25 a share in the ratio of

Price

The

net proceeds to redeem 645 shares of its
prior
preference stock at $110 a share and accrued dividends,
and 1,386 shares of second
preference stock at $100 3

•

holders for subscription

price.

business.

Such pro- ;
manufacturing ;

Sept 3 filed 40,000 shares ($25 par) 5% cumulative con¬
vertible preferred. Underwriter—Ames, Emerich & Co.,

one

amount

The balance will be added to gen¬

6
(letter of notification) 26,000 shares (no par) i
capital stock. Price — $9 a share. Underwriter — Elder, ;
Co., Chattanooga, Tenn. For expansion of

;

amendment.

Wheeler. &

additional working
capital. Offering temporarily postponed.
,

that

Sept. 3 filed

Nov.

•.

facilities in the amount of $600,000; for additional inven¬

note

eral funds.

( 11/IS )

tory amounting to $400,000, and for
t

of its

the
company
amounts will

Odin Ins. Co*,

Tennessee

stock.

additional

for

ment

Bank of Cleveland.

Webster Electric Co., Racine, Wis.
c • •/'■::•
an unspecified number of shares of com¬
mon stock (par $1).
Underwriting—Loewi &, Co,r Mil¬
waukee. V Offering—The shares are being sold both
by

June 14 filed 80,000 shares of

not

Underwriter—Halsey, Stuart & Co.
Price by. amendment.
Proceeds—Of the
proceeds, the company will use $900,000 for pay¬

Inc., Chicago.
net

•

by Chase or his wife-. Price—At market.

are

(11/20)

capital; with a view to entering the Frequency Modula¬
tion and Television fields at* an advantageous time. Of¬
fering; date postponed.
'
1

William B. Chase,
President; and members of his family or: trusts created

which

Cleveland, Ohio

Oct. 29 filed $3,000,000 of serial
debentures, due serially
from 1952 to 1966.

common.
Proceeds—Net proceeds for the sale of com¬
pany's 75,000 shares will be used for increasing working

and outstanding and are being -sold by

-'Soiairr Manufacturing,Corp*

Weatherhead Co.,

share.

»•

"Under-"

common,

the-counter

■

J2SI7

Price, $100
•for

per

unit. For purchase of

general conduct. of

raw

materials and

business. Underwritern-Ludolf

contingent indebtedness. To be sold in varying amounts.
To erect and

equip 20-bed hospital.

Schroeder, 1614 Cambridge St.,-Philadelphia.

(Continued on page 2518) %

•

;

THE COMMERCIAL & FINANCIAL CHRONICLE

2518

Thursday, November 14* 1946

Prospective Security Offerings
1

■/"■■■■

(NOT YET IN REGISTRATION)
•

INDICATES ADDITIONS SINCE PREVIOUS ISSUE
v..

(Only "prospectives" reported during the past week are
given herewith. Items previously noted are not repeated)
& Electric; Co., parent) seemsVprobable, .in compliahee
with the Utility Holding Company Act.
Probable bidders

(Continued from page 2517)
Atlantic City Electric Co.

•

Nov. 6 reported that

early registration of about 1,150,000
(now owned by American Gas

shares of common stock

The

include

First

Boston

Corp.,

and

Drexel

Probable bidders:

Eros. & Hutzler. ■ :

•

Halsey, Stuart & CO* Inc;;. Salomon
vJ*-#• • v, ,.
\
;A r.

Co.

(jointly);; Shields - & Co//Aancl//White;//Weld■//'&K'»CQ:K
(jointly); Dillon, Read & Co., Inc., and Smith, Barney
& Co. (jointly); Blyth & Co., Inc./Union Securities Corp.

Northern Pacific Ry.
Nov. 4 company

(11/19)

has issued invitation for bids to be

con¬

sidered Nov.
i

United States Government,

Nov. 19 SEC will hold

hearing

proposal to
additional shares of common stock (par $2) to
stockholders in ratio of V^th share for each share held.
Proceeds for plant expansion.'
on company;

sell 45,509

State, Municipal and

$8,880,000 of equipment trust

cer¬

tificates. The

'■-V

Birmingham Gas Co.

19 for

certificates, dated Dec. 10, 1946, will

ma¬

ture in

1947-56. Probable bidders include

Inc.; Salomon Bros. & Hutzler; Harris Hall & Co. (Inc.)
and

•

common

issue

new

stockholders will vote

50,000 shares

of 4%%

creating

cumulative

preference stock (par $100).

new york

mjdwestern banks.

prior
•

•

Southern Ry.

the sale of

CLEVELAND

CHICAGO

ST. LOUIS

PITTSBURGH

•

New York Central RR.

Nov.

reported

December

company

of $20,000,000

(12/3)

Company will receive bids

Dec.
BUFFALO

Certain-teed Products Corp.

Nov.

Blair

PHILADELPHIA

Halsey, Stuart & Co.

Corporate Securities

BOSTON

equal annual instalments of $688,000 each Dec. 10,

to 12

noon

EST Dec. 3 for

$7,600,000 equipment trust certificates dated

1, 1946 and due semi-annually June 15, 1947-Dec.

15, 1956. Probable bidders include Halsey, Stuart & Co.

planning the sale early in

equipment

trust certificates.

Inc.; Salomon Bros 6c Hutzler; Harriman Ripley & Co.;

Harris, Hall & Co. (Inc.).

mechanism of

a free and
open market; and are. not Cotton Report As of Nov. 1
designed to permit unfair discrimination between cus¬
An 8,487,000 bale cotton crop
tomers or* issuers,; orbrokers.or; dealers, to
fix^minimum for the United States is forecast
profits, to impose any schedule of prices, or to im|>os6 this year by the Crop Reporting
Board of the Bureau of Agricul¬
any schedule or fix minimum rates of commissions,
tural Economics, based on infor¬
allowances, discounts, or other charges;"
mation

Congressional Opportunity
(Continued from page 2459)
and so, in

reappraisement, recognize the causes for the wide¬

spread discontent that it has engendered.

reported

As you

know, this law provides for the creation of na¬
aegis of the
Securities and Exchange Commission.

This

by farmers and

provision, which on first and careless reading, may ginners as of Nov. 1. This is a
seem, innocent enough, on careful analysis and" in view of reduction of 2.7% or 237,000 bales
from the Oct. 1 forecast. The in¬
its interpretation bas/prQved to be a damnable infringement
dicated 1946 crop is approximately
v
Only one such association has been formed, the National on the freedom of doing business and p. derogation* of our
525,000 bales less than the 9,015,Association of Securities Dealers, commonly referred to by constitutional liberties.
000 bales produced!
'
1945 and
those charitably inclined as the NASD—by others as NASTY.
Note first that a national securities association may not nearly 4,100,000 bales5 less than
the 10-year average. It is only
The Association has frequently been referred to—espe¬ be
registered until the rules referred to are in actual exist¬ 542,000 hales larger than the 1921
cially by the SEC—as a voluntary association.
ence in accordance with the. foregoing provision. T
crop of 7,945,000 bales which is

tional securities; dealers- associations under the

We have

nothing but praise for voluntary associations

in the securities field which aim at

self-regulation.; *

vfj;

The stark, fact is
were

that,

relates to profits, such rules

not in existence when the NASD

was

approved, and

the smallest crop; since 1895,

The lint

puted

yield per acre,
229:2

/•

com¬

pounds,

21.8

However,, we; are convinced that a reading of Section it was not till long after such approval and when the "5% pounds below that harvested- last
15A; and reflecting oi| its net effect, can leave no reasonable spread philosophy" was promulgated by the Board of Gov¬ year and 14.0 pounds below the
person in doubt that in so far as membership in the National ernors of the NASD and reviewed by the SEC, that an 10-year average, and compares
Association of Securities Dealers is concerned, the element attempt was made to give effect to this phase of Section with the 1944a record Kofi 293.5
pounds.
of truevolition is

(^mpletely: absent;

Section 15A(i)(l)

provides as follows:

15A(b)(7).

Leaving aside for the moment what we regard to be
the unconstitutional aspects, of this section, in our opinion
"the 5% yardstick" was wholly abortive.

"The rules of a

registered securities association may
provide that no member thereof shall deal with any
non-member broker or dealer * * * except at the same
The target was "unreasonable profit"; but the 5% in¬
prices, for the same commissions or fees, and on the terpretation did not concern itself with profits ab all and
same
terms and conditions as are by such member dealt only with the subject of spreads.
accorded to the general public."
This questionable quirk took no heed of the increased
Although the words "may provide" are used, the self- costs of doing business, increased rents, increased cbst of
seeking bureaucratic promoters of the NASD, who with the clerical and other help, to mention but a few of the many
present attorneys for the NASD probably had much to do things that go into the day-by-day activities of those in the
with the drafting of the Maloney Act, recognized the coercive securities field.
.'v;r
and revenuerproducing character of this provision and
Generally, as far as other commodities are concerned,
promptly capitalized on it. Consequently the NASD has such price restrictions have been lifted, and those restrictions
■'A'/vv-'v:

>:•*

rVf'-'

-v.*:,-:-.-i"v

.v.**

•••,T1 >*>'/• "*••

• •

•

rule.

any

only the product of the war emergency.
different in the securities field?

any

Why should regulatory bodies either directly
satellite attempt to dictate prices?

were

What does this

mean

in the over-all picture?

Its

listic

significance is that pursuant to this special monopo¬
privilege a vast number of dealers, in order to further

their livelihood, must become, and have become/ members
of the NASD.
This is true, because when initially a few of

What becomes of freedom of
lations

are

the

larger underwriting firms in New York City were per¬
members, a couple, of thousand dealers
and other underwriters had to go along, too, in order to
get discounts (trade prices) from these underwriters.
suaded to become;

The element of volition is further canceled out because
many of the subjects on which rules must be passed and
the effects of such rules are made mandatory by the Malo¬

controls is established whereby
capacity may direct the adoption
of rules, failing which it may order such adoption.

The
is for

that

our

"An

Section 15A(b)(7): '

applicant association shall not be registered

national securities association unless it appears to
Commission that—
-

the

transformation

the

Congressional lineup
of life and an erasing

dicated

increase

Congress

we say,

Oct.

Groeip of 1BA

the

Maloney

repeal the Maloney Act.

Elects New Officers
SAN

FRANCISCO,

CALIF.—

Russell A. Kent, Bank of Ameri¬
ca
San
Francisco, was elected
chairman of the California Group

San Francisco.

However,
in

South

States, where weather has been
through; the
season,
near record yields are
being har¬

vested, and production indications
are
slightly higher
than last
month. In Virginia, Alabama, and
Arkansas the crop outlook re¬
mained the same

as a

month ago.

With favorable harvest weather
and

labor available than in

picking and ginning
rapid progress during Oc¬
tober in all States, except, Texas.
In that State, frequent rains and
wet fields seriously
interfered
with
harvesting the crop and
made

some

loss

cotton.

The

the United

States is estimated at

69%.

compares

This

the

record

late

with''58.5%
of 1945

crop

and the 10-year .average

bf 78.2%.

No. estimate of cottonseed proV

same

the

percentage ginned to Nov. 1 for

cember.

Schlemmer, Schwabacher & Co.,
Members

is. indicated

favorable;

lint

California

pros¬

Carolina. In the western irrigated

for

abolition

not

well

pective production is less than in¬

duction will be

To the

"(7) the rules of the association are designed to
of the Investment Bankers Asso^
prevent fraudulent and manipulative acts and practices/
ciation on Nov. 1. Other officers
to promote just and equitable principles of trade, to
of the group elected were: A
provide safeguards against unreasonable profits or
Vice-Chairr?ian: F. 0. Maxwell,
unreasonable rates of commissions or other charges, Maxwell, Marshall &
Co., Los
Angeles. /
and, in general, to protect investors and the public
Secretary - Treasurer:
H.
P.
interest, and to remove impediments to and perfect the

new

was

until

picking was
underway# In most, States,

Act is vital.

...

through

economy.

ney Act, and a system of
the SEC in its supervisory

We quote

trading when such regu¬

American way

planned

evident

caused

popular appeal to the

reversion to

festation of boll weevils

recent years,

put into effect ?

of the New Deal
In

Why is it

The full damage from unfavor¬
weather and the heavy in¬

able

made- until De¬

However, if the ratio of
cottonseed

should

the

the average for the past

years/ production would - be 3,-

Executive

455,000 tons.
Such a production
Crowell, would be
5;7% below the 1945
Crowell, Weedon & Co., Los An¬
revised
production of - - 3,664,009
geles/John B. Dunbar, Cruttenden & Co., Los Angeles; and J. tons and 34.1% below the 10-year
Lyle
Osborne,
Merrill Lynch, average of 5,240,000 tons.
%■
15
Pierce, Fenner & Beane, San
Committee:

Warren

The Bureau of the Census re¬

Francisco.

ports

HARTFORD,
David Rowe is

CONN.
now

—

Ben

with Denton

Co., Inc., 805 Main Street.

bales

5,724,926

cotton

ginned from the crop of 1946 prior

V^th Denton & Co.

to Nov. 1,

compared with 5,151,873

bales for 1945 and
for 1944#

8,282,768 bales
■■■A;'

yatttrmnmvr*-'•»*+.{ "a,"*;..

■

the

Considering

■

slump

•

prices through September and
well into last month, it is a safe

assumption that the placement
of such securities, in addition to
being

tough assignment, was

costly forHhose^

I likewise^ quite

involved.

v '

But the task has . been com^
pleted and the cost pretty well
written off where the securities

sold.

were

•

does

Street

Wall

like to

not

than

it is "ho different

any

sues

has

the situation is now
.generally as having
reached a stage where some of
the
choicer
equity ; financings
which had been

conditions

1 That is about what has hap¬

sidered

of the rather
unwieldy accumulation of unsold equities with Which dis¬
tributors found themselves bur-

pened in the case

»*v

be con¬

£;vw

..,

Analyze individual securities.

Statis¬

Manager, Dealer

was

held back,

evidently for the best possible
setting.

perking

shows signs

issues

the

stock

reported

was

fraction

un¬

market,
to have

prevailing

the

George Coggeshall, of Schoell-

has

stantial and is viewed as offering

which

year.

of future

number

good

Southern
a

!;
is¬

directed

heavy bids when books
were
opened after the '.close of
regular business, and quick sale
assured.

Alleghany owned
606,304 shares of C. & O. at the
end pf 1945.

Company.

equal
from

the

cost of some $9,500,000 of

of the

addition

the

yield

for 20 years and is due in

runs

1966.

Considering the fact that

(Special to

proposes

to sell in competitive

fred

bidding,

after the turn of the

William

Secretary

hoWfjayailable/ Bok JJ1113^
Commercial
&
Financial

speedily. * Box
R1114, Commercial & Financial
Chronicle,-25 Park Place, New
York 8, N. Y.

Place,

decisions

Merritt &

Co., Inc.* Chamber of

forming to go after

Commerce

Building.-

•

ready

are

Centfal's

undertaking

ly 75% of the purchase price of

HILTON HOTELS
'

Corporation :
Dividend

period.

year

Notice is hereby given that a
of 25 cents per

by the

ing November 30,' 1946, payable December 2, 1946, to holders of such
stock of record at the close of business

AMERICAN GAS

—,.

■

■ n—:—

flVeteroed StoekTMvideiad
0. THE regular quarterly dividend of One
I Dollar

holders of such stocli of
close Of business

•

per

■

•

f-i C. N. HILTON, President

November 8

Magma Copper Company

DIVIDEND

Dividend No. 9T

THE regular quarterly dividend of

♦<:K

Financial writer whose work has been

enced

I r. tw''.V'i,

*•■

the

Inc., have been declared poyable'
November 20, 1946 to shareholders pf>
record November 4,1946. •
For Fourth

Class

.06

..«>

.06

.01

.46
.07

Aviation•

.14

.05

Building

.05

—

.04

—

.04

.10

.08

.18

Food.

.05

.07

.12

Fully Admin

.06

.01

General Bond...

.09

,27f

.07
.36

Indust'l Mach...

.08

Institute Bond..

.08

Investing Co.....

.08

.07

.15

low Priced,

.03

.07

.10

of Thirty-Five Cents

the Company, payable December 16,1946,
holders of such stock of record on the

Salary

books of the Company at the close of busi¬

November 20,1946.

H.D. ANDERSON, Secretary.

November 13,1946,

Place, New York 8.

October 29, 1940.
of this Company hns

•

The Board of
.

High-Class Confidential Executive Secretary

Cents

stock,

payable

day

holders
—

* *■ j

November

AVAILABLE*—

Ready and able to take over
of large affairs.

Directors

declared a dividend of Twenty (20)
per
share
on
the outstanding capital

this

December

record

15,

14,

tile

1946

share¬

BELL,

.07

.50f

.04

.02
.01^

.07

Railroad Bond...

.04

.60f

.03

r—

.05

—-

.06

.02

.08

Tobacco........

.06

—-

.06

Utilities....

.015-. .035

business

Secretary.

v*v»'

tion
,

;

paid at said office on said date at

of stockholder.

interest accrued and unpaid thereon to

about

through

your

1
rn

available

;•>

Investment dealer.

thereto
should be presented for payment and re¬
demption at said office of State Street Trust
Company.
Said Bonds will cease to bear
interest on and after such redemption date
and the coupons for interest appurtehant
thereto maturing subsequently to such re¬

•'

demption date will be void.
'

EL PASO

reason

Has been Executive

head of important financial enterprises.

Alert blind, abstainer,
Has
and

CARBON COMPANY

and trust-worthy in every respect.

valuable experience as an administrator and coordinator
advanced in modern business methods and details pertaining

Agreeable personality, with training and ability to handle difficult
problems, and placate diversified minds and individual desires; , _ - r
Leads a clean and Orderly life and can be depended upon under
circumstances.

•

••• -/v"

interested in a personal interview, please write
mercial & Financial Chronicle, 25 Park Place New
If

One-Hundredth Consecutive

„

Box S 1016 Com¬
York 8. iT,;.'

Quarterly Dividend

A quarterly dividend of 40 cents and a

LION OIL
J

NOTICE IS ALSO

Stock

the Cap¬

this

Com¬

pany,

will be paid

December 10,1946 tostock-

stockholders of record November 29, 1946.

holders of record November 22, 1946.

The stock transfer books will remain open.

GEORGE L. BUBB
■'.

Treasurer

payable

December

16,

E; W. ATKINSON,

November 6,

1946

HEREBY GIVEN, that

after November 14, 1946,
price set forth in the above
Interest accrued to Decem¬
ber 12, 1946 will be paid to the holders of
the above-mentioned First Mortgage Bonds,
Series A 314%, due November 1, 1970, upon
surrender of such Bonds with all unmatured
coupons appurtenant thereto, at the afore¬
said office of State Street Trust Company,
Boston, Massachusetts.
the redemption

A regular quarterly divi¬

ital

PROMPT PAYMENT

notice including

dend of 500 per share has
been declared

RIGHT TO

at any time on or

COMPANY

year-end dividend of 10 cents per share

■

Bated November 12, 1946.

had

thereto.

any

COLUMBIAN

ELECTRIC COMPANY
President

By E. H. WILL,

of long years of experience in the 'Securities business,is fully capable of successfully making satisfactory adjustments of
Stocks, Bonds and Real Estate investments.
By

said

Said Bonds together with

redemption date.

all unmatured coupons appurtenant

Pull details

this -dividend

•

103% of

amount thereof together with

the principal

cash at elec¬

Company,

chusetts, all of the above-mentioned Bonds,
and that such Bonds will be redeemed and

...05:

fPayable in stock

important

.57

^Regular dividends are from net
investment Income end extra divt-.,
dends are from net reali ied profits.

Capableof making prompt and 'aatisfactoryi iidecisions on
'matters and is an excellent correspondent.
.

that El Paso

pursuant to the provi¬
of Mortgage dated as
of November 1, 1940 to State Street Trust
Company and Dana M. Dutch, as Trustees,
hereby calls for redemption and payment
on December 12, 1946,'at the principal office
of State Street Trust Company, Corner of
State and Congress Streets, Boston, Massa¬

.64
.03
.05

Steel...........

NOTICE IS HEREBY GIVEN,
Electric

sions of Its Indenture

•

.06

and lighten the business burdens o,f any

man

ELECTRIC COMPANY
First Mortgage Bonds, Series
Due November 1,1970

.08

Mining
Petroleum.

'.Ci

1946.

EL PASO

.08

—

Railroad Stock,,

Street

Broad

New York, N. Y.,

NOTICE Of REDEMPTION
To the Holderl

Equip

Railroad Equip..*

COMPANY

•

REDEMPTION NOTICE

.0$

Chemical.......
Elec.

AN ex*ra

THE BUCKEYE PIPE LINE

H. E. DODGE, Treasurer.

.10

Merchandising..

business November 29, 1946.

Total

.40f

ing in the hands, of the public has been
declared out of the surplus net earnings of

and

COMPANY,, payable December 16,
1946, to stockholders of record at the close of

PER

Quarter

Regular* Extra*

Agricultural....,

On November 12, 1946, a dividend of Twelve
and One-half Cents (12%c) per share was de¬
clared on the capital stock of MAGMA COP¬

/\(35c)pershareontheCommoncapital

ness

Financial Chronicle, 25 Park

dividends on the various

clashes of shares of Group Securities,

stock of the Company issued and outstand¬

Commercial &

Box J 11?,

The following

AtitoAobile,

Extra

syndicated

Traders—Listed and Unlisted Securities.

required $10,000.

Common Stock Dividend

Effective speaker-—expert-

Customers,: Salesmen

servicing

public hqs been declared out of the surplus
net earnings of the Company for the quarter
ending December 31, 1946, payable De¬
cember 16, 1946, to holders of such stock
of record on the books of the Company at
the close of business November 20,1946.

from coast to coast.

per

42nd CONSECUTIVE

the books of the

the close of business December

I Fifty Cents (50c)

Stock cf

Preference

1946, payable December 2, 1946, to
record at the
November 20,.1946.

If*.
wmmwrnm

and Three-quarter
share on the 4%%
cumulative Preferred capital stock of the
Company issued and outstanding in the
hands of the public has been declared out
of the surplus net earnings of the Company,
for the quarter ending December 31,1946,
payable January 2, 1947, to holders of

dividend

the 4% Con¬
Hilton
Hotels Corporation has been declared
:f:C; for the quarter ending November 30,

GROUP SECURITIES, INC.

Eighteen

Cents ($1.18%)

■

Stack

of 50 cents per share on
vertible

ANALYST

Preference

Notice is hereby given that a
:

Common capital stock of the Company is¬
sued and outstanding in the hands of the

20,1946.'■

on' 4%

and electric company

SECURITY
,,.v-

dividend .£
Common

Hilton

Dividend No. 2

EXECUTIVE

share on the

Hotels Corporation
has been declared for the quarter end¬
of

Stock

DIVIDEND NOTICES

November

Stock;

Common

Common Stock Dividend

•

NOTICES

DIVIDEND

would

NOTICES

DIVIDEND

such stock of record

yield funds to cdver approximate¬

company to finance improvements

King

this business.

and betterments under its postwar

Company
>4,1946.

I; f

Earl D.

and

certificated Banking groups al¬

would mature serially ever a 10-

See samples of my

sound

New

Platner

Vari: Keuren are now with

contemplated new equipment and

Manage Statistical and Under¬
writing Departments.

CALIF.-A1-

Baghott, Frederick F. March,

month* an issue of $20,000,000 of

ing 30 to 40 years, with some
even longer, this one should fit
nicely into many portfolios.
used

Merritt
Chronicle)

The Financial

LOS ; ANGELES,

averag-

;

Four With King

equipment.

Steel Issue

attractions here,>

fund..'-j.-*

They; would finance $0 %

1956.

Meanwhile New York Central

Among

Perry E. Hall, of Mor¬

Stanley & Co., is treasurer of

gan

1947 through Dec. 15,

June 15,

Bierwirth,

John

president of the New York Trust

instalments

semi^-annual

The campaign is being

serially

mature

hospitals

city's

the

$1,897,547.

15, next, and

dated Dec.

to be

behalf

Railway Co. has just

call for bids for

Fund.

Hospital

current campaign in

of the

Goal

contributions

soliciting

theUnited

for

•

$7,600,000 of certificates

sue

pros¬

pects.

committee

bankers

Investment

Inc.,

chairman of an

named

been

Pomeroy,

Hutton

Business of
this character has been quite sub¬

the

weeks

en¬

countered

was

Goggeshall Heads
Group of Un. Hosp. Fund

•

remaining kopf,

in * the

issued

if Priced at 53, just

stockholders.

work. Engi
neering,,studies and C.P.A. .back¬
ground have-helped balance my
judgment and train me to make
■

Junior

Chronicle, 25 Park
York 8, N. Y.

weeks but

•.;

5. Write reports to

WilLre^

tical and Underwriting De¬

eral

Proceeds will

convincingly.

Appraise situations based on
quick field visits.

ILLNESS

trust

ment

had been in the making for sev¬

most issues have been

Qualified to:

Security Analyst

account

the

of the Alleghany Corp. This sale

Crucible

Financial Writer

has been

and

for

3.12%, was the relatively
short maturity of the loan which

3. Talk

Man,

around

SITUATIONS WANTED

Contact

proven

stock

common

{

1. Forecast market trends.

partments.

was

V;'/ '

Equipment Issues

The market for railway equip¬

Tuesday
when bankers brought oat the
secondary distribution 'involv¬
ing 100,000 shares of the road's

way,*of assistance by its behavior.
But, according to people Who are
in a position to know pretty much

suit in elimination of

That

'• / ;!. •. '

•;

Railway

new

SITUATIONS WANTED.

ing at times, what with thef sea¬
soned market offering little in the

principal partner

Chesa¬

Quick absorption appeared as¬
found still«a sured for Crucible Steel Co.'s of¬
bit "gun shy">^ii SO far as hew
fering of $25,000,000 of new money
ventures,
such as flooded the first mortgage; bonds, carrying a
market in iilate spring 'Uftd^ •
3%% coupon and priced at 100
summer, are concerned.
But they for public offering,

''The task of finally distributing
such unsold issues i has been try?

enterprise

peake & Ohio Railway.

Investors may be

sharply after Labor pay*

quite thoroughly completed*

seasoned

program and for the retirement
of its outstanding 3V4S due in 1955.

Chesapeake & Ohio Secondary

dended when the market broke

what goes on* the job;

can once more

securities

involves the
well-known and

possibilities.

V*..-Vi.-

contemplated but
of market

because

withdrawn

in,-hand

deal

der

However,

the

pay

penalty for miscalculation, or bad

■

sufficiently.

viewed

when

3 udgment, the financial commun¬
ity would fust as leave pick up the
bill and get through with it.

;

put

been

have

investments for dis¬

tions improve

But

of is¬

tribution when as and if condi¬

segment of the population that
goes to make up the nation's econ¬
omy.

' involved

into firms'

other

instances,

some

is likely that portions

; it

take a licking, and in that respect

still reveal marked interest when
the

2519

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4542

Volume' 164

1946,

Treasurer

PASO

ELECTRIC COMPANY

By E. H.

Dated November 12,1946.

WILL, President

Expansion in Florida

Mr. Babson recommends
deferment of purchases by those who can wait, notwithstanding
present price ceilings. Opposes rent ceilings on new houses, and
advocates purchases of moderate sized farms as investment.
;/
The stock market is not the

ing

the

two

past
:

months.

with as¬
$65,000,000.
Na¬
turally, we
of

take

large

number

in the

ere

iDoildiiiona In-the Middle West
;

visited told about the same story.
Brief ly,,

this is that the demand

continues for small houses selling
from

$8,000

even new

for

ones,

siderably^

$12,000; but that

demand

the

larger

houses,

older

houses

and

also

new

time

houses.

Veterans

give

houses

are

being

Philadelphia
brokerage firm of Parrish & Co.

Old Reorganization

With King Merritt & Co.

HI" Rails :|ig

Mrs.* Celia

Lambert is' with

erty Street, New York City,

FOREIGN SECURITIES

Corp.

M.S.Wien&Co.

Appliances, Inc.

ESTABLISHED 1919

Exchanfw PL, N.X 5: HA. 2-8780
V

•

;

T«k»typ« N. Y. 1-1397

INCORPOItATEO

148 State St., Boston

Dealers Association

45 NASSAU STREET, NEW YORK 5

Enterprise 601S

;

Tel. CAP. 0435

new york

...

9, Mass.

Teletype BS 289

■N. y. Telephone HAnover 2-7914 '

BELL TELETYPE

PHILADELPHIA TELEPHONE

TELEPHONE

REctor 2-3600

1-576

A Market Place for

Quincy Market Cold Storage

Ley (Fred T.) & Co.

Red Bank Oil

f Monolith- Port. Midwest pfd.

Linn Coach & Truck

selling

are

•

Low Priced Unlisted Securities

Reiter-Foster Oil

Luscombe

Airplane

& Warehouse Co.

■

Thompson's Spa Inc.

Rapd's

Southeastern

Matagorda Oil Roy.
National Skyway
Palmetex

Corp.

Worcester Trans. Assoc.

Boston Ground Rent Trust

Southwest Gas Prod.

Freight

Standard Silver & Lead

Taylorcraft Aviation

Corp.

Petroleum Conversion

Pressurelube, Inc.

U. S. Television

Rademaker Chem.

U. S. Airlines

Recordgraph Corp.

Ralph F. Can* & Co.,Inc.

Union Brewing

Viewtone Television

Milk Street,

B»«t«a 1

Hubbard 6442

Teletype—#. KlWi

I,/

-r''

SO BROAD ST., N.Y. 4
,

;

TELETYPE—N.V. 1-2866

Firm Trading Markets.

Indnstrial

* ■ ■

Public Utility Stocks and
TEXTILE SECURITIES; n
Secorities with a New Eng. Market

•
/

Specialists in

New England

Unlisted Securities

24 FEDERAL STREET, BOSTON 10

marks & ho. Inc.
FOREIGN SECURlTIES^

...

'■

IPFPTSITW

ToL HANcock 8715

■

Fleetwood

Gerotor-May

...

Sunshine Consolidated
:

Mastic

Asphalt

Delhi Oil

Public

Airflow, Inc.

COMMON

Utility

•

Industrial

Real Estate

1st quarter.

„

|| |

,;;

2nd quarter

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-886

Tele. BOston 2»

Wall St.

9-4613

"General Products Corp.

"Susquehanna Mills '
ij'r

BOUGHT—SOLD —QUOTED

•Prospectus

request

237,299
;

397,510

Amos Treat & Co.
40

"'Seaboard Fruit Co., Inc.

Empire Steel Corp. •i

$147,321

Month of Oct. 186,000

W. T. BONN & CO.

Bonds, Preferred and Common Stocks

SALES

PERIOD

3rd quarter

120 Broadway

Dank—Insurance

Lumber & Timber
:;

Established in 1922

f v

——AFFILIATE: CARL MARKS & CO. Inc.CHICAGO——

Grinnell

New York 4. N. Y.

50 Broad Street

New York 5,

N. Y.

Tele. NY 1-1448

Frederick C. Adams & Co.
■

All Issues

BS 328

Investment Trust

HANOVER 2-4341

*\<s'

Ni SECURITIES

Teletype

Insurance and Bank

Etlablinhti 1924

Boston 9, Mast.

New York
Hanover 2-7913

IFt specialize in all

Morris Stein & Co.

climate in* the world!

HAnover 2-0050

Schoellkopf, Hutton & Pomeroy

Sonth Shore Oil

Mnsicraft Recording

Airplane & Marine

Mar-Tex Realization

States

Central

these

new-house, should surely

Commons & Pfds.

King Merritt & Co., Inc., 55 Lib¬

Members New York Security

again decline.. If labor and buying farms in Oklahoma,
plays fairly, it will be willing to Texas and perhaps Kentucky.
take a cut in wages, as living costs
Although the general movement
decline, to offset the increased during the past fifty years has
been westward, I tfaink; it is now
wages which it has been given,
directed southward, although, of
as living costs have increased. But
whether or not this happens, la¬
course, Cahforiuaias the lookedbor, before long, will do better for heaven of most farm house¬
wives. For retired farmers, Florv
work and give much more for an
hour's wage.
This will apply to ida should not be forgotten; but
an
agricultural 'point
of
all wage workers; beginning with from
view it is very hard to induce
those who cut the trees in the
a Midwest farmer to swap six feet
; woods
for the lumber.
Hence, of black loam foi? Florida sand
those Who can wait before buyr even though Florida has the finest

senior partner in the

Gearhart & Company

ing will

until

to pay taxes

4 % - on, my invests

buying farms in Kansas, Iowa
Missouri; while farmers in

and

Sooner or later the cost of liv¬

•

Norris,

six years ago, was

trip, I purchased

Farming

and

his retirement

Telecom Corporation

During this trip T found an in¬
stinctive desire of farmers to want
to move in a southerly direction.
Farmers in Minnesota are selling

built of green

What About Ceilings?

2459

line.

new

wood, with few nails and poor
fixtures, which cause the pur¬
chasers to be wary of them. „•

Ing

page

Consolidated Industries, Inc.

of 5,000 population.
this a safe investment
considering
the
excellent soil,
drainage and location on a bus

are

that

abundant

are

see

Alfred E. Norris died at Doc¬
York City, at

^Trading Markets in

tance of a city

gradually getting located. Ru¬
mors

contents

-Clyde Porcelain Steel Corp.

I consider

sections

some

country.

the

Bendix Home

good farm offers. In one instance,
the farm was within walking dis¬

Large houses, are actually a
drug
on
the market at the

present

tor's Hospital, New
the age of 84. Mr.

Baltimore Porcelain Steel

inent.; This is g;ood enough these
days with the security which a

modern

fairly

For detailed index of

of five or ten acres.

rent at a figure

can

and

property that has been selling for
$15,000
or
over
is now being
marked down at least 20%. This
applies

Miami,

|l|p

two 160-acre farms. Both of these

that

offices

''' ^

•

is holding firm in price. This is
especially true iri the case of
property within a mile or two of
a
church,
stores,
post office,
schools, etc. Real estate people are
looking up such property with the
idea of cutting it up into a sub¬
While

has fallen off con¬

agents tell

•

INDEX

;

:v;

subsistence:

division

;

Heal estate

246
will

£• v;

NEW ISSUES

farjm* which
produces only enough to feed the
family, pay taxes and hire a man,
but Where the owner has a' posi¬
tion '£ or business' on the: outside,
The

East.

Hence, on. niy-i Western -trip
constantly inquired regarding real
estate and found that all: cities

The
office

Miami Beach and Ft. Lauderdale.

Farm Investment

estate

market h

Roger W. Babson

permanent

the

edge is off the
real

ceilings

rent

built for renting.

will:- suffer.'**'•"

;:
S

Otherwise, very few houses will
be^ built ;tO;
r^t -and; thfe h^tion

trip,

looked

should

Robert

Alfred E. Norris Dead

Joseph J, Rice,

„

hew houses

on my

Western

Beach this year,.

Palm

not

there

tga g es.
Just before
mor

leaving

offices

The present $1_,
open Nov. 15, the Biltmore Hotel
helping.
<
'
office
about
Dec.
12
and
the
Now, a word regarding rent
Breakers Hotel office about Dec..
ceilings. It may be wise to con¬
16. All will be under the super¬
tinue
rent
ceilings
on
prewar
vision
of Paul A. Just, of the
houses although they should be
firm's Chicago office.
Daniel F.
adjusted to provide for. the in¬
Rice and Company also maintain
creased cost of upkeep, etc.
But

pany

sets

seasonal

three

partner,
announced.
South County Road

so.

Com¬

Trust

vice-president of

I happen to be

•

—

commodity exchanges, will open

only thing that has had a bump dur¬

Newton -Wal-^
do
tham Bank &

KANSAS CITY, MO.

Ryan has : become associated
:! CHICAGO, : ILL.—Daniel -v F. with Prugh,: Combest & Land,
Rice and Company, members of Inc., 1016 Baltimore Avenue. In
the New York Stock Exchange the past he was with Kerwin,
and
other
principal stock and Fptheringham & Co.

Holding edge is off of real estate market,

(Speoial to The Financial Chronicle)

BABSON

By ROGER W.

Ryan With Prugh, Combest

Daniel Rice & Go. Plan

Real Estate Outlook

REMER, MITCHELL 3; REITTZEL, INC,
208 SOUTH LA

SALLE

ST., CHICAGO 4 •

WESTERN UNION TELEPRINTER "WUX"

•

PHONE RANDOLPH 3736

BElt SYSTEM TELETYPE CG-989

Hill, Thompson & Co., Inc.
Markets and Situations

120

for Dealers

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : November 14, 1946, Vol. 164, No. 4542, Section 1

FRASER