Full text of Commercial and Financial Chronicle : November 15, 1945, Vol. 162, No. 4438, Section 1

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* *'*

Final"Edition

Volume

>''

:•

■

"■■ '•' t

ESTABLISHED:OVER 100

•

Number 4438

162

.New-

Sees Failure of

A Policy of

World Trade Expansion
"-v;••

-v-

Secretary of Commerce

■

General

Copy

•'/

■'.

■••••

Says It Will Not
Points to the Anglo-American Trade Parley as a Step Toward Eliminat¬
Competitive Econ¬
ing Trade "Blocs" and Outlawing International Cartels and Exchange
omy. Holds It Would Hamper Pro¬
Restrictions.
Advocates a World Conference to Encourage Selective
duction Expansion, rWould Put a
Reduction of Tariffs, Eliminate Preferences ..and Other Trade Barriers,
Stop to New Venture Capital and
and Establish a Permanent International Trade Organization.
Favors
Would Stifle Competition and Pro¬
Granting Financial Aid to Other Nations as Well as Great Britain.
mote Stagnation.
V
Free

MELCHIOR PALYI

DR.

"!'

Asserting That There Is Little Prospect; for Immediate Relaxation of
World Trade Controls, Secretary Wallace Urges Use cif Our Great Eco¬
nomic Power to Aid Other Nations !to Abandon Restrictive Measures.

Ay res

Work in

Peering Into the Crystal Ball
I}

Dr.

Price 60 Cents

York, N./ Y.,; Thursday, November 15, 1945

A'-';

;!;*

In 2 Sections-Section

YEARS

By HON. HENRY A. WALLACE*
*f'-iLp-■

6 1345

Palyi Points to the Enormous Accumulated Purchasing Power and

the Immense'

Monetary Circulation

Prospective Boom.

Basis for Price Inflation and

Added to This, He Sees

Heavy Foreign Demand

for American Products Which Will Raise Prices and

Against Exporting Scarce Goods.
Controls and
ing on a

Boom

Political Outcry

Predicts Continued Foreign Exchange

Says We Are Embark¬

Impediments to Selling Abroad.

Full Employment Policy at1 Artificially Raised Wages; and a

May Last Several Years With Eventual Collapse.

the

issue of

November

the

Cleveland

Trust

Company's Busi¬
Bulletin
Brigadier-Gen.

ness

well

Not only is it tied up with regulations and controls all

today.

ness

Vice-

Ayres,

President

r u s

t 'Com¬

severely

pany,
,

Cleveland

the
T

the

criticizes

world,

policy
putting
costs
up
and
keeping prices
of

"Our.

n e w

economic

icy,"

co m

mentsthe Bul¬

"is

letin,
and
V

Leonard P,

The

hold

down.

nrices

Ayres

costs

put

purpose

is to enable industrial workers

(Continued on page 2355)

Pictures of New York Se¬

curity Dealers Associa¬
tion Dinner

pages

2344, 2345 and 2347;
of

Index
page

is faced with the prospect of the largest peace¬
history.
The question is not whether we will
<e have an infla- -f '
V

country

boom

world

Lowlnterest Rates flip

tries it has be¬
come

state

monopoly and

lillAnd Public Welfare

in others par¬

tially so.
The

getting out.
of the
public
import
busi-

Securities

moved
our

of Future Interest Rates

Holds Low Interest Rates Discourage Sav¬

that

proper propor¬

production

our

ing

:;:An address by
lace before the

tional

its

finds

Secretary Wal¬

thirty-second Na¬

Foreign

Trade

on page

don't

know,

address

*An

of modern business.
sometimes, how I could endure

fields

the difficult

Conven¬

;

purchashing power.
been issued in the

Hirsch & Co.
?

Members New York Stock
and
•

••.

other

(Continued

T. I. Parkinson

///-

London-Geneva

Chicago/

;

>;• ;r /•

Cleveland

&>.•*!■

(

?...»*-»

1927

;

Club

/State and;

;

Baltimore

Springfield

from

NEW YORK s

Common

Aireon

FINANCE

SECONDARY

MARKETS

63* SO. SPRING ST.

;

Kobbe, Gearhart & Co.
Members

14 WALL ST..

NEW YORK 5.N.Y.

TELEPHONE-RECTOR 2-6300

INCORPORATED

Tel.

REctor 2-3600

New York 5

120

Conv.

$2.40 Conv.

•-

Enterprise 6015

;

THE CITY OF NEW YORK

Tele. NY 1-733

Scranton

Spring

Brook Water Co.
$6 Preferred

Dealt In

preferred

Preferred
on

N. Y. Curb Exchanga

HART SMITH & CO.

request /./

NT 1-K35

York

New
52

WILLIAM
.

Security

Dealers

ST., N. Y. 5

Bell Teletype NY

Assn.

Members

HAnover 2-0980
1-395

111

Principal Exchangee

Broadway

New

York

REctor

2-3100

10 Post Office

New York

Montreal

Toronto

Direct

Private

Sq.

Boston 9

Hancock 3750

Tele. NY 1-1920

REctor 2-8600

Teletvn*

IRA HAUPT & CO.

Members

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

Teletype N. Y. 1-576

Philadelphia Telephone:

Preferred

Members New York Stock Exchange

Security Dealers Ass'n

45 Nassau Street

New York 4

Tel. DIgby 4-7800

Reynolds & Co.

NATIONAL BANK

Curb Exchange

Alloys, Inc.

Con v.

Prospectus

YORK STOCK EXCHANGE

Raytheon Manufacturing Co.
"'~:s

C°

LOS ANGELES I*

•

BULL, HOLDEN &

York Stock Exchange

New York

Manufacturing Corp.

90c

CHASE

THE

Solar Aircraft Company

' "

Bond Department

60c Cony, Preferred

BROKERS

Members

30 Broad St.

WALL STREET

Hardy& Co.
Members New

Acme Aluminum

BOND

;

iNcearetAf*•

Bonds

■

and Dealers

HUGH W. LONG and COMPANY

Woonsocket

for Banks, Brokers

from

-Vor

■

4-y

dealers

authorized

Street, New York 5

BOSTON V: .; ••/ V
PHILADELPHIA
Troy
Albany
Buffalo
Syracuse
Pittsburgh
Dallas
.
Wilkes Barre

may

obtained

CORPORATE

MEMBERS NEW

2348)

Service

■imtiilikfllM
prospectus

INVESTMENT SECURITIES

64 Wall

Rep.

Teletype NY 1-210
.

Established

Exchange

25 Broad St., New York 4, N. Y.
HAnorer x-0600

on page

the atmosphere

Bond Brokerage

wmmmmammmmm

CO.

Exchanges

iyl FUNDAMENTAL

tefo finish Our*

R. H. Johnson & Co.

Successors to

obligations or

banks, including the Federal Re¬
serve System.
aThe banking sys-

•;

Buy Victory Bonds/

LIL1ENTHAL

is coined out over¬

debt

Municipal

|ifl;BOND5%'4;/;
HIBSCH,

over

obligations convertible into cash
on
short notice, or sold to the

Parkinson at a meeting of the Bond
House, Chicago, 111., Nov. 1, 1945,
^
(Continued on page 2364)
:: ;

They Finished Their Job

and

VICTORY

Dr. Melcblor Paly!

billions

$260

form of short-term

by Mr.

of Chicago, Palmer

2352)

national
presently

Most of it has

strayed into

lawyer from Philadelphia who

some.

national

Bond

Chicago

whelmingly

Club, and your Guests: That introduction prompts
me to say there
is a difference between a lawyer
from Philadelphia and a Philadelphia lawyer.
I

tion, Waldorf-Astoria Hotel, New
York City, Nov. 12, 1945.

(Continued

the

Chairman, 'Members

The

$300 billions before long; the fun¬
damental fact is that this huge

direct Method of Creating

Mr.

today,
begin
funda¬

debt

Policy as Planned by Experts and Not Representa¬
tive^-bf the; People. Asserts Low InterestVBoes
there will be a minimum of "red
tape"; but I should like to see Not Advance Public Welfare.
sure

q ues-

management of export control be
in
such
a
way
that

these

tary ' fact
is
not just hav¬

conducted

tion

all

answer

Greenbacks Ever Thought
light of our relations with other
nations.
I have asked that the 0f Has Been Devised and Attacks Treasury's Fiscal

make

last, and what
after? - Not
pretending to

mentals.

ings, Promote Inflation, Threaten Purchasing Power
of Life Insurance.
Says the Most Beautiful In¬

sufficient control retained to

the

start, how far
will it go, how
long
will
it

with

Prevailing Low S Rates to Ja Deliberate
Policy : of Treasury Experts and Not Jie

People.

Henry A. Wallace

type

boom;

question,; is:.'
When will it

let

Lays

Fiscal

have
too rapidly for the good
foreign trade and in the

may

and

tions

Refinancing" Through Investment Bank¬

Points Out the Uncertainty

some

instances

Is Due to Erroneous Fiscal Policy,

ing, and Excessive Competitive Institutional Buying.

as pos¬

sible.

Deprecates Trend Toward Low Interest

Which, He Contends;

"Ferocious

its

export
con¬
trols
just
as
rapidly

President, The Equitable Life Assurance Society

Prominent insurance Executive

and

removing

By THOMAS I. PARKINSON*

Government
is

Regular Features on

2368.

time

tionary

coun¬

n e s s

T'y'

dOWn.
v: -

This

but'in,

Admini stration's

the

over

some

Leonard

of the fact that foreign trade is not an easy busi¬

aware

Wire to

Boston

THE COMMERCIAL & FINANCIAL

2322

Trading Markets in:
9L

CLEMENT

Harvill Corp.

Prime

Air

'*«••••

Members ,s■; J1$

York Security Dealers Ass'n
of Securities Driers. t-.c.

New

Vat'l Ass'n

HA 2-2772

Exchange PL, 1T.Y. 5

B£LL TELETYPE NY 1-423

Speaker, Mr. President, Members of the Senate and of the^
House of Representatives of the United States, I should wish, first and Empire in paying tribute to
his great services not only to his
of all, to thank
tance of furthering in every way own Country but to humanity. It
you
Sirs,, on
was a
sorrow to us
that he was
our friendly connections with your
the great hon¬
or
great country, he wished me, on not able to visit Britain where we
you
have
should have given him a welcome
behalf of the whole House, the ut¬
done me iln
most success in this Visit. Sirs, in that would have expressed all that
inviting me

& Preferred

Seven-Up of Texas
,

! '• *

1.''-* 4

your House in
joint session.
During the

two

WOrth 2-4230

N. Y. 1-1227

ill,

should

our

hearts.

Bought —- Sold —- Quoted
Analysis

Members New York Stock

25 Broad

New York &

HAnover 2-0700

Direct wires to

7% Preferred

For five years

the names of these
Churchill and Roosevelt,
together with that of Generalis¬

simo

Stalin

will

ever

in achievement.

(Continued

Indiana Gas & Chemical

linked
-

on page

Last

Telephone COrtlandt 7-4070
Bell System

Teletype

E. Hoe Common c:

Textron Warrants

2366)

Edward A. Pureed & Co.
'Members New York Stock Exchange
Members New York Curb Exchange

*An address by

before

Congress,

Common

Indicate.

Common

Prime Minister
session of

sub-divisions,

Preferred

princi¬
chart
analysis and
i n t erpretation; second, a
short running

Colortype
'

account

Bought—Sold—Quoted

their

Teletype NY 1-1843

forecasti ng
trends and ob¬

TNfc TIonnEll & Co.
Members
-

New York Stock

Boston Terminal, 314.S, '47

120

Marion Steam Shovel, Ptd.

jectives both

"
' ^
Exchange \

New York Curb Exchange

as
v

Arthur

BROADWAY, N£W YORK
Tel.

RECtor 2-7815

to the mar¬

ket

Messing

eral

;

amazing

accuracy

Telephone: WHitehall 3-1223

vidual

groups

and

gen¬

and

indi¬

securities

England Public Service
'"

United Artists Theaters

We Maintain Active Markets in V. S. FUNDS
for

United Piece Dye Works
Common

ABITIBI PR. & PAPER, Common & Preferred

Preferreds

BROWN CO. Common & Preferred

CONSOLIDATED PAPER Ltd.

BreeueondGompouu
Members N.
37 Wall
Bell

MINNESOTA & ONTARIO PAPER

Security Dealers Assn.

St., N. Y. 5

Canadian

Hanover 2-4850

Teletypes—NY

1-1126

Securities

Pep't

There
which

for

Common

Telephone BArclay 7-0100

Service

Common

volved.

Lighting

-V.:'

Pfd.

YORK

Great American Industries

Indiana Limestone, 6s, '52
San Carlos
*

Milling Co.*

Analysis

request

F. H. Holier & Co., inc.

Members N. Y, Security Dealers Ass'n

111

Broadway, New York 6, N. Y. ;

BArclay 7-0570

NY 1-1026

Kingan & Company
Dixie Home Stores

Colonial Stores

Macfadden Pub. Inc.
Ffd.

Com.

barometer of the market.

properly

Cross Company*
Liquidometer Corp.*
Delaware Rayon "A"*
Neto Bedford Rayon "A"*

address

used

and

Mr.

inter-

Messing

C.E. lie Witters & Go.

before the Association of Custom¬

Members New York Security Dealers Assn.

ers'

120 Broadway, N. Y. 5, N. Y.

Brokers, New York City, Nov.
13, 1945.
on

page

REctor 2-7634

Teletype NY 1-2361

2363)

Ohio Water

ALL AMERICAN

Bought

—

Sold

Common Stock

*Circular

Upon

BOUGHT—SOLD—QUOTED

Request

BOUGHT,

SOLD

QUOTED

request

6. a. Saxion & Co., Inc.
Teletyoe
170 PINE ST., N. T. 0

Exchange

NEW

HAnover 2-9470

AVIATION
*

Bought—Sold—Quoted
*Prospectus

York Curb

ST.

Kingan & Company, Com.

& Light
Pfds.

adding
factors

spell supply- and demand.
When
the demand for a particular secur¬
ity outweighs the supply, an ad¬
vance in price becomes an auto¬
matic result. The reverse is equal¬
ly true. When the supply out¬
weighs the demand, a decline in
price necessarily results. Charts,
when properly
used and inter¬
preted,
are
the
yardsticks
by
which supply and demand at any
particular
price
level
can
be
measured and weighed with re¬
markable accuracy. They consti¬

Haile Mines

Engineering 'Co.*
Common

Common

Power

Teletype NY 1-672

Preferred

Wellman

Southern Colorado Power

opinion,
all together, these

them

Segal Lock & Hardware

Queens Borough Gas & Electric

Utah

WALL

6% & 70/o Pfds.

New

(Continued

Pfd.

Members New

•-

Northern States Power
•

decline in the

or a

vidual'security in particular. News
events, general business outlook,
past
and
prospective
earnings,
current and prospective dividends
yields, and growth possibilities
are just a few of the factors in¬

Nassau & Suffolk
7%

115

great many factors
the background

advance

Exchange and Other Principal Exchanges
BROADWAY
'
NEW YORK 6, N. Y.

market in general or in an indi¬

When

Members N. Y, Stock

are

constitute

tute the

1127

*CentraI Arizona Light & Power

Frank C. Masterson & Co.
Teletype NY 1-1140

The Purpose and Use of Charts

Goodbody & Co.
Mobile Gas

Hotel Waldorf Astoria

the long-term

now

and short-term market outlook.

ples

20 Pine Street, New York 5

Preferreds

Standard Aircraft Prod.

cussion of the

H. G. BRUNS & CO.

Plain

indicate

basic

41/2% Conv. Pfd.

New

first,
general dis¬

namely,

Struthers-Wells

Bell

(Va.)

Stock

Common

have doubtless observed on. your admission cards, it is
my intention to devote today's talk to the subject of Charts; and to
: J,i'
divide this<t>addressinto particular, during the past several
three main years; .and, third, what the charts

Preferred

Common

you

American
Common

Central States Elec.

Recent Market Action Might

Says Market Has Experienced Longest Sustained Uptrend
and Looks for a "Corrective." Contends Present Upward
"Lopsided," Since It Is Limited Largely to Specialties and Not

A. S. Campbell

All Good Stocks.
As

joint

1945. \

System Teletype NY 1-1919

Since 1896,

Washington", D. C. No¬

vember 13,

Speculator

Near Term Holds Outlook Not So Bullish

sition, in emphasizing the impor-

Attlee

./..v-

House

Broadway WHitehall 4-8120

Bell

the Compass to the Mariner," Mr.
He
Very Much Higher Prices for the Longer Term, but for the

Envisions

Trend is
the

week

Messing Traces Movement of Stock Prices During Past Few Years.

Commons, as Leader of the Oppo¬

1-1548

Byrndun Corporation
-

the Investor and

I had the privi¬

freedom.

Exchange

Nassau Street, New York 5

Seneca-Falls Machine

Stock Exchange

Stern, Members New York

branch officei

Asserting That Charts Are Market Barometers and Are "As Valuable to

lege of serving under him as a
colleague.
No one knows better
than I do the resplendent services
which he rendered to the cause of

Vanderhoef & Robinson

Herzfeld

that

long drawn out contest brought
courage and hope to millions all
over the world.

Pennsylvania Co.

Members New York Curb

Attlee

Clement

our

Sheraton Corp.

tyranny,

two men,

By ARTHUR J. MESSING*

the

NY 1-1557

South Shore Oil

the forces

What Do the Chails Forecast?

critical

most

times

Exchange

St, New York 4, N. Y.

New Orleans, ^.-Birmingham, Ala.

words and ac-

tions

Request

Britain but of the Commonwealth

leader,

;

Steiner, Rouse & Co.

In the struggle against

not

great war
whose

was

expressing, I know, the feelings
only of the people of Great

o n

occasions

by my prede¬
cessor,
Win¬
ston
Church¬

Stock Exchange

Broadway, N. Y. 5

120

Ben Teletype

were

you

addressed

Mitchell & Conipciiuj
Members Baltimore

President Roosevelt.

to address

' '*• " i .* -Vl " "

Democracies "great men * are* the
possession of the whole people.
Speaking here today, I cannot but
remember
that great
statesman,

war

'.V.'V

S CO., INC.

Mr.

Elk Horn Coal
Common

Britain

Tells Congress That His Party Is in the Tradition of Free¬
dom Loving Movements That Have Always Existed in His Country. Denies It Is a
"Class Party," but Proclaims Purpose of Establishing a "Planned Economy" and a
Program of Nationalization. Looks Forward to an Era of an Increasing Cooperation
With the United States and Expresses His Support and Confidence in the United Na¬
tions Organization.
Says British Believe in an Expansive Economy and Points to
Self-Governing British Commonwealths as Evidence of Belief in Democracy.

king & king
,

Great

British Labor Party Leader

Cargo Transport

Established 1920

Minister

P. R. MALLORY

ATTLEE* f

Seneca Falls Mach.

;

Thursday November 15, 1945

British Labor Party's Policy

General Box

CHRONICLE

WHitehaU 4-4970 I

NY 1-609

Simons, Linbuin & Co.
Members New York Stock Exchange

25 Broad

St., New York 4, N. Y.

HAnover 2-0600 \

Tele. NY 1-210

Trosler,Currie & Summers

J-G-White & Company

Members N. Y. Security Dealers Ass'n
74

INCORPORATED

Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377

Private

Wires

Detroit

Buffalo

Pittsburgh

MEMBERS NEW

ESTABLISHED 1890

Cleveland

St.

ofiii

NEW YORK 5

37 WALL STREET

Tel. HAnover 2-9300

Louis

One

»«*

4-,

V* b'-t

fr*

Street,

New

York 5, N. Y.

Telephone BOwling Green 9-4800

Tele. NY 1-1815

Wall

cWiey
YORK STOCK EXCHANGE

-S

r
'( :

»r.

.(?

•

■

•

.<*

•

Volume 162

;_-t

•

Number 4438

THE COMMERCIAL & FINANCIAL
CHRONICLE

2323

Should We Subsidize Britain?—Two Different Views

;

Advocates of
ances

By HERBERT M. BRATTER

Gift-Loan See Need of Disposing of Blocked Sterling Bal¬
Essential to Restoration of Free World Trade; and Giving

licrasTfiiT

\\\

AND COMPANY

Former RFC Head Says
Proposed Aid Cannot Be Called

Loan and

Must Be Met

by U. S. Taxpayers. Holds British Could Use Assets io
Obtain Relief and That British
Empire Could Furnish Us Needed Sup¬

Strength to Sterling. Loan to Cover Britain's Purposes Placed as High
las $5 Billions, With Interest Under 2%. A Washington Expert Outlines
ia Liberal Wan pn Terms Within Britain's Capacity to Pay and Which
Will Assure Convertibility, of Sterling.

plies for ^Stock-Piling" and Thus Escape Paying in Dollars. Contends
Loan Plan Conceals Gift of $1
Billion, and That Britain Wants Aid First
and Talk? About Commercial
Policy Commitments Later/
;

YOLANDA AND
THE BEEF
Maybe
Yoianda,
beef

wife's
maybe

your

and

name

she

isn't
doesn't
in

junk

obsolete

that

about

strongbox.
But don't press
luck too far—let us take it
your hands right
now!

your

WASHINGTON, Nov. 8.—In an interview published iri these
.pages on Nov. 1, Representative Fred L. Crawford of Michigan gave

On the

subject of

interest

our.

that

loan to Britain, and

make

outright

his | reasons *
for a policy of
caution

whether

•

e n

her

carry

a large
long-term loan

concealing

gift.
The Re¬
publican Con-,
gressman,who
lis
a
senior
member of the
Bank¬

•House

ing

and Cur; C o m-

rency

mittee.

•the

Herbert M. Bratter

sees

powers of

the world" to come to

'Washington "demanding""similar
treatment; a sort of Trojan horse.
Rather than have Congress grant

such gift-loan to Britain, Mr.
our Treas¬

any

'Crawford would have

a special Brit¬
prospectus telling
the people "in plain language the

ish bond with

nature and character of the obli¬

gation Britain is assuming there¬
under."

J Quite

■

course, as

the

liberal

...,

different viewpoint also

is encountered

•

Washington, of

is quite to be expected

city

credited

proposals

with

such

Lend-Lease,

Bretton Woods, and the expanded

fxport-Import Bank. This city is
(Continued

on page

2360)

Commerce, recently wrote

country

ration,

Secretary of the Department

interesting book

for

"Without

without

stated that this

■that

jobs

will

full

that the

but

tical

needs,

must

and

able

ployment

to*

Paul

Nystrom

free

our

two,

timely
Jesse

;

members

that all

the

care¬

statist

the

can

labor

will be avail¬

for- employment.

sure

Wallace /would be

enterprise

system

Out

round

rather than

this

number

exact

number

would

goal

figure!v,

br.

Lubin Traces the

tions

Commission

:?■

Associate United States Representative
Allied

the

•

for

certain

reasons

certain

that

there

who

work.

now,,

Finally,

there

considerable

Steps Already Taken Toward Fixing the Repara¬

Bill, and Outlines the Problems and Alternatives Still Facing the

will

to
of

number

employable

bodied,

not

bound

able-

who

persons

not at any given date be at

may

address by Dr. Nystrom
before the Sales Executives Club

May Cause Vociferous Controversy. He Urges That We Assume the
Cost of Food and Goods to Be Imminently Furnished to Germany, in
Lieu .of Permitting Retention of Their Industrial Machine With
Danger of Armament-Revival. Asserts ; Thatlthe^^Reparatidns
Problem May Be Solved by the Future Undesirability of German Labor

of New .York, Oct. 30,1945.

to the Claimant
i

Nations.

*An

(Continued

had put

'M,

the

United

States,

AugUSt.
The

the

Chairman,

ministrator

and

ex-Secretary

National

Prospectus

V'VVV

HAnover

Private Wires to

elder statesmen that they headed
for disaster. I came here today to

views

the matter

giving Britain financiaL help, be¬
know

that

the

RFC

had actual experience in that

Public Utility and

•

Kingan Co.

Haloid Corp.

Sargent & Co.

Bausch & Lomb

Billings & Spencer
U. S. Sugar Com.

If liAS' Est. 1926

& Pfd.

York

Members New

;

La.m

Security Dealer* Ass'n.

Broadway ;/V / Z
WOrth 2-0300
Bell System Teletype NY 1-84

170

you

Alegre Sugar
Sugar Assoc.

Lea Fabrics

„

Industrial

\..,

.-v

Bond & Mtge. Guar. Co.

Susquehanna Mills

page

nationwide

2356)

Spencer Trask & Co..

■

•

Members New York Security Dealers Assn.

25 Broad Street, New York

Telephone HAhover 2-4300

for

DUNNE SCO.

Broad

St., New York 4, N. Y.

WHitehall 3-0272—Teletype NY 1-956

Teletype NY 1-5

Private Wire to Boston

Blocks of

SECURITIES

estates, corporations, banks, in¬
stitutions and individual holders

Common and Preferred
?

r" 1

Lawyers Mortgage Co.

STRAUSS
Members

New

York

NEW YORK 4

BROS.;

Security

Broadway.

-Dlgby 4-8640

Prudence Co.

V J:

Teletype NY 1-832. 834

Newburger, Loeb & Co

Dealers

IV.' Members New York Stock Exchange

WHitehall 4-6330

Bell Teletype NY

1-2033

Co.

National Radiator Co.

Booght-*-Sold—Quoted•
Analyses available

„Circular!

Ass'o

CHICAGO 4 i
Harrison 2075

;

^Request

Hon RSSE ^ Trsster

Teletype CO 129

Direct Wire Service
New

N. Y. 5

"«

'• & Trust

;

to dealers only

Board of Trade Bldg.

York—Chicago—St. Louis
Angeles

Kansas City—Los

74 Trinity Place, New York 6, N. Y.

Telephone: BOwling Green 9-7400

C. E. Unterberg & Co.
Members N. Y. Security Dealers Ass'n

Established 1914

40 Wall St.,

'*4^*

N. Y. Title k Mtge. Co.

Public National Bank

American Bantam Car

Inquiries tyvited from dealers

Lawyers Title & Guar. Co.

PREFERRED STOCKS

UNLISTED
CERTIFICATES

•

National Gas & Electric

Members New York Stock Exchange

TITLE COMPANY

niRioGJ*

Eastern

||lljl|ll

Teletype: NY 1-375

]

Chicago & Los Angeles;

TRADING MARKETS

offerings of

High Grade

2-4786

elder statesman."

think I get your meaning,"
I replied, "but it was only when
the Japs stopped consulting their

you

Bell System Teletype, NY 1-2480

Members

ExchlPL, New York 5,N. Y.

he often has put to good use.

cause

Request

New York Security Dealers Assn.

that showed he still possesses
keen sense of humor which

your

J.F.Reilly&Co.

care
for that term,;
especially the 'elder'," Mr. Jones
commented, with a twinkle in his

get

Vulcanized Fibre

don't

regard and I suspect that
(Continued qp page 2360)

2350)

MARKETING FACILITIES
.

page

Ad¬

Loan

;

Units

question of reparations de-

{%•A paper presented .at the An¬
imal Meeting of the Academy of
Political -Science, Nov. 8, 1945.

ex-Federal

Artkraft Mfg.

;

(Continued

Great

it, Washington seemed

But it was
November. And this was
the
75-year-old
ex-RFC

called

com¬

to have gone Florida.

really
really

Teletype MY 1-1203

leaving the Gov¬
said Mr. Jesse Jones.

He seemed exactly the same
I first interviewed him
his
RFC
office
some' eight

6, N. Y.

in¬

any

plan had its origin* in Yalta in February, 1945,
when we were still shelling Cologne and the Rhine was still a hurdle
that our military technicians fig-^
—
—r—
and

interested in

are

The reparations

Britain

New York

HAnover 2-S970

Punta

."■'■■■*r-=V-""V

u^ed might take months to over¬
come.
Negotiations were started
by
the Allied
Commission on
Reparations in Moscow in June,
some six
weeks after the fall of
Berlin. It was formally agreed to

IV" 39 Broadway
'

sub-

when

■

Statistical Information

since

ernment,"

there

3/ictors. Says German Economy toof the ProductiveVital Question, and
Enable the That Determination Function Is the Capacity Required

the

fortably in his' armchair, drew
his right foot up to the leather
seat, and looked out of the win¬

eye

are

Reparations

■

QUOTED

Members New York Security Dealer* Assn.

debate

The big Texan leaned back

the

work/

j ject. •
"Really, I haven't given

would be still others, then as

Jones

LJ.G0LDWATER&C0.

'
the; first
agree to this; Commerce.
qualification. His use of' the ex¬
"Mr. Jones," I said, "in prewar
pression, "60 millioh jobs," must Japan
you
would
have
been

percentage

illness/or; incapacitybe^ unable to

By ISADOR LUBIN*

together,

.constitute

SOLD

«.'//•>

Complete

accom¬

panying; arti-;
.cle, and the

classification

be taken

can

be achieved within the framework

ii'Vt/:/

among

that

end

BOUGHT

those

with

.outlined

before

even

that' Secertary

this extent. He

this

most

our

{of the country; This does not

mean

em¬

indicated

force

expand

civilian,

therefore,

our

not

can '

|| CERTIFICATES

are

contrast

1950 there' eventful years ago.
should be at least 60 million perOutside today the weather was
sons
within
working ages and, abnormally mild. As the cab driv¬

econ¬

country

only

budget

will

showed

omy

economy,
inflation and

unbalanced

ful consideration.

In this book

His views

terviews

planned

disastrous

prosperity deserves

employ¬

ment.

TITLE COMPANY

endanger our national
credit." This possibility of attain¬
ing full employment and national;
dow.

for

necessary

the need in this

without

number

in¬

was

terviewed V by
the V write r. j

"V-

"60 Million

Jobs."

Fi-

^ Corpo¬

; nance

the

YORK

NEW

Telephone WHitehaH 4-6SS1

Recon¬

the

struction

STREET,

head

The Honorable Henry A. Wallace,

offer investors

ury

NYSTROM*

Marketing Expert, Maintaining that. <Th^
Elementsfor Re¬
covery ;^f C Peacetime Prosperity{If the Nation's Economy Were En¬
couraged and Allowed to; Expand, ContendsThat the Real Key io Full
Employment Is in a Growing, Thriving Number of Enterprisers. Says
Government Controls and Taxes Are Retarding New Enterprises and
That the Continuation of OPA7 Restrictions Is; Hampering Reconversion
Without i Preventing Inflation laud |Without /Preventing Black Markets.
Urges Business Men to Stand for principles "-of Sound Economic Life
-and to Oppose Controls That-Undermine the Free Enterprise System.

granting

-of
a
credit
with escape clauses to the United
Kingdom an open invitation to a
"procession
of all the major
if

PAUL II.

^Professor jof Marketing/Columbia University
•President, ; Limited Price' Variety ^-Stores Association

the

stick,"

;

Securities Dept.

Obsolete

WALL

Secretary and
former

ain, who "can¬
not

off

well, Jesse
Jones, former
Commerce

Brit-;

not it is to

■

making avail¬
able

grant of aid

your

Broadway, New York 6, N. Y.

Telephone BOwling Green 9-3565
Teletype NY 1-1666

& FINANCIAL

THE COMMERCIAL

Thursday, November 15, 1945

CHRONICLE

ACTUAL MARKETS
IN 250

ACTIVE ISSUES

INDUSTRIALS

American Bantam Car

Com. &

Pfd.

Amer* Window Glass*
Com. tk.

Ptd.

Blair & Co. Q

Attacks! Full Employment Bill

S. F. Bowser
Dayton Malleable Iron*

I
i

Du Mont Lab. "A"

Douglas Shoe* /

Gt. Amer. Industries*

Hearst Pub., Pfd.

I
!

Hoover Co.

Howell Electric

Kaiser-FrazerT

Keritef

Lamson & Sessions* J

Mohawk Rubber

■

Moore-McCormack
Mo. State Life Ins.

Moxie Co.
Oxford

P. R.

Paper*

Mallory

Com. & ,Pfdf
Polaroid Com.

;

Trenton Val.

U. S. Air Conditioning

Warren Bros. "C"

Warren Bros. B. & C.

Magazine Repeating Razor

Winters & Crampton

Sunray Pfd.

Crowell-CollierPub.

\
Distillers ||

Taca Airways*,

Bowser Inc.

H. H. Robertson

Oxford Paper Pfd. & Com.

Art Metals Construction

Purolator*
Richardson Co.

I
I

Bought

Sold - Quoted

Goodbody & Co.

Members /V. Y. Stock Exchange
115

and Other Principal Exchanger

i 105 West Adam* St., Chicago
.1
Teletype NY 1-672

Broadway, New York

Telephone BArclay 7*0100

TEXTILES

Alabama Mills*

I
|
I

Colorado Fuel & Iron

Aspinook Corp.

Consolidated Textile

Preferred

t Pittsburgh Railways

*Moore

+York Corrugating

New Jersey Worsted J |
Textron Warrants | i

Prospectus and

tStatistical Study

Loft Candy Corp.

Special Letter Available

Special Letter

Drop Forging

Kingan & Company

Request

Prospectus bn request 'v

UTILITIES

FIRST COLONY CORPORATION ?

|
■

American Gas & Pow.

Conn. Lt. & Pr.

;

Members

New

70 Pine Street

York

Association

1
'

Hanover 2-7793

Dealers

Security

New Yorh 5

...

-Teletype NY 1-2425

Derby Gas & Elec.
I

Iowa Southern Util.

| Mass. Pr. & Lt. $2 Pfd. i (
fProspecfus Upon Request

* Bulletin

SHATTERPROOF GLASS.

Circular upon request ' |

General Tin

•

WELLMAN ENGINEERING CO.

THE FOUNDATION

FASHION

Great American

Industries

COMPANY

Hartman.Tobacco

PARK, INC., Common

Common

ARIZONA EDISON CO.,

Missouri State Life

Descriptive Circulars on request

Seligman, Lubetkin & Co
Incorporated
Members

Broad

New

York

Security

Street, New York 4

S. Weinberg & Co,
Members N. Y. Security
60 Wall Street

Dealers Association

HAnover 2-2100

New York 5"
t

Belt

Teletype

Dealers Ass'n
Telephone

Whitehall 3-1830
NY

1-2763

THE COMMERCIAL & FINANCIAL CHRONICLE

(Preview (of
By

Writer Contends
1937

That

Debacle; Holds Britain Has An-VVV-V;''

AUGUSTUS

I;':

SLATER

;

Alternative to D. S. Aid

Experience With Artificial Wage Increases in

Indicates That Increased Production Costs Reduced Consumers'

Buying Power and That

Says
Translatable Into Immediate
Purchasing Power and That the Worker's Pay Is;; Directly Dependent
Upon the Sale of His Product. " Holds Demand for a 30% Hourly Wage
Boost Is Equivalent to 75% Wage Advance Over 1941 and Would Lead
to a Large Discrepancy in the Concurrent Gain in Non-Factory Con¬
sumer
Income.
Estimates Demanded Wag® Rise Would Wipe Out
Profits and Cause Depression*
,
a

In all the welter of debate marking the current wage brawl one
suspect that the country had been through the wage; k:y '' 7S cost ypric
A1'- - ; / .' ' v . - •" ;
be
wringer
jwho were- more firmly entrericheci'

It's

fore.

ex-

traor dinary
that there has

been

seri-

\ bus

mention

yybf •; 1937

38.

;Perhaps we
forget, or pre-i

| i&l theorizing
scratch

I from ;

y 'all

again,

over

maybe

some

.'•people.; just
learn.

never

•

•V

will.be

re¬

pealled that in
•-;ia~.4 whirlwind
knock;' e m
A.

Slater

;

- -

■

•

President

promised-

•

down political-

manna

late

1936

the working

Excoriation and

man.

ign,

campa

Roosevelt

vilification

politically than ever before. De¬
spite some vigorous prbtest that
wage rates, costs, and sales were
irrevocably linked, employers
were1 forced to give inj all/along;
the line.
Hourly wages for''all
manufacturing industry, increased,
an
average of 12.3% durihg. |;he
first 10 months of, 1937,'- but. more
significantly the wage rate; rise i**
durable goods industries amounted
.

There

show.

grand
nearly

was a

still

were

eight million people looking lor
jobs.
*
; r,
.

;

Emboldened

howling

the

ballot-box success of their cham¬

pion and his return to office with
another mandate, labor; leaders

total

national

income

rose

only 2.4%. Since the latter figure
short-lived

the

labor

gains, it is probable that mass
purchasing power of non-manu¬

consti¬

facturing consumers who
tute 70-80 %

durable

goods

know—increase

thrown

out

(Continued

had

over

•^Strikes
to record

Call

the

new

SECURITIES

her industries to create

a
surplus
goods for export and thereby
furnish a means of both paying

-imports and meeting her

pi the report follows:

eign investments;1 I / i

' The

business of

lender- is- ah.

global money¬

■

•.

f % ThdV4Englishv
oUt that the United States: found

exacting profession.

lend-lease

•

; Brown Company 5, 1959

our

—

could

Gt. Brit & Can. Inv.4V2, 1959

Intl. Hydro Elec. 6, 1944 ;
London & Cdn. Inv., 4^, 1949
Mont. Lt, Ht & Pr. 3%,

Montreal

continue

production.and in-*

exports

regardless

offsetting imports,

But

no vmatter what its wealth
productive capacity, there is no
which can give away its
surplus; indefinitely.
Even if it
were; possible
economically,
it
would
be impossible
politically.
Yet, how can a loan be repaid to;
the-United States?
We can take

Foreign Powi Securities 6, 1949

magnificent solu-

whereby
expand

nation

England a great power, and
with which she could purchase a
of imports over exports.
was willing, in fact,

Great Britain

to take unlimited imports in pay¬
ment of debts owed to her.

nomic

concessions

(Continued

return

on page

'56, '73

Tramway 5, '51, '55

Power Corp. of Cda.

4%, 1959

Steep Rock Iron Mines 5V4, '57

HART SMITH & CO.
52

WILLIAM

-V

ST., N. Y. 5

HAnover

Bell Teletype NY

New York

payment in goods and services,
that is, in greater imports".
Or,
we
can
try to compensate our¬
selves by extending our power—i;
by getting political, social or eco^

made

surplus

for¬

pyj tef
f requently?; point

United ;State£;

our

4%, 1967

j Assoc. Tel. & Tel. 5%, 1955

practically sterile;; Our in¬
tariffs, Our refusal to fake
imports, meant that we shut Off
the principal means whereby we

could derive income from

Aldred Inv.

creased

indebtedness abroad. The full text

Canada, Internal Bonds

Abitibi P. & P. 5, 1953

were

for her

Dom. of

1-395

Montreal

2-WN

Toronto

Purolator

for

2346)

Direct Private Wire Service

adjustment

C OAST-TO

v an

CO AST

10 % with respect

on page

New York

2357)

Chicago

•

St. Louis

<•

Kansas City

Los Angeles

STRAUSS BROS*

for Markets in

Members New York Security Dealers Ass'n

UP-STATE

Broadway

NEW VYORK

NEW YORK
Securities c

ST.

George R.Gooley &Co.

qAllen & Company

Baum, Bernheimer Co.

Pledger A Company, Inc.

}

3 0

V*'-

LOS ANGELES

Established 1922

BROAD
NEW

Direct

Y.K:.1;

•'

HAnover 2-2600

Teletypes: NY
I

Teletype NY 1-2419

STREET

YORK 4, N.

Telephone:

New York 5, N. Y.

WHitehall 4-3990

5 "

KANSAS C,TY

AfA,

52 William St„

awe

CHICAGO 4
Harrison 2075 «
iTeletype. CG U29

LOUIS
/

Established 1924 •'

" r

Board of Trade Bldg*

DIgby 4-8640
Teletype NY 1-832-834
White & Company

during early 1937 rose
breaking levels, and the

business world stood
of

CANADIAN

United

oencer

the

the land. What happened?

the

been

theoretical

all

this critical

prices

average of about

ployment question could be liqui¬
only by still higher wage
You

Between

„•

dated

purchasing power- of
the factory wage earner, it would
become a reality and spread itself

Relations

Britain," prepared by Hans Heinemann of Kidder,
Feabody & Co., New York, anc«^
presented .by Investment Bankers
The United States, on the other
Association of America at the Na¬ hand, with a
constantly expanding
tional
Post^War
Conference
in productivity, has not wished her
Atlantic City brr Nov; 1, ar strortg debtors to feed
her, and has not
suggestion -is " made that as -"an wanted unlimited
imports.
V v :
alternative to our dollars," Great
; Under these circumstances, dur¬
Britain
increase the output per
ing the interwar period, for ex¬
worker
and ; the ; productivity of
ample,; our-: foreign investments

In short, wage costs and

period.

Leon-

of the total market

not at all during

rose

staged- the greatest field day in
the / country's industrial history.
Efespite the fact that actual hourly
and real weekly (adjusted to the
cost of living) wages in 1936 ex¬
ceeded
previous
peak
levels
reached in the '20's, the theory
was-—that troublesome old unem¬

rates.

"Economic

Experience of Wage Rise of 1937

entitled

paper

reflected

extremely popular. It

dustry,
"big"
business,
Wall
Street, all received their share of
the blows which turned out to be

while

A.-

States and Great

is^4oday^ con¬
fronted with the necessity to adapt
to
13.8%.
Contrast>this^jttjrlike herself to many problems Which
performance with ther averag^ahr; arise ;qut ot her| position as; the
nual gain of some 2%yrn^produc*. greatest
creditor riationr in the
tiv ity of the American '' economy
World.
■,;|.v:
as
a
whole during this. century,
The British embarked on this
reflecting a combination of ma? profession in the 19th century and
terial resources, management skill, gradually
emerged as owners or
and technological advances .which
mortgage holders of railroads, fac¬
have been the envy of the world.
tories, mines, plantations all over
Due
to
rising costs, wholesale the world.
The revenues from
prices of durable goods during these enterprises poured in, pro¬
1937
were
upped
nearly
9%, viding much of the wealth which

had their day; the automobile in¬

ILL.—Louis

Report Points to Greater Productivity of British Workers as a
Source for Creating Exports to
Pay Debts. Also Urges That We Study
,l^0®e .-Question ^of Enlarging Our Imports to Bring International
Payments in Balance and Afford Foreign Debtors Ability to
Repay.

Similar Effect May Again Be Expected.

would hardly

ELGIN,

berger is with Heath & Company,
Building.
;
.?•

Tower

IBA

War Time "Take Home"- Pay Was Not

! With Heath &
Company

1-1017-18

Wire

to-Los

1-573

Angeles

demanding labor leaders
Community Water Service 5 % s 1946
Crescent

Public

Service 6s 1954 j

RED ROCK BOTTLERS, INC.

SEVEN-UP OF TEXAS

Amer. Locomotive

East. Coast Public Service 4s l948
Minneapolis & SL Louis Ry* Issues

Eastern

Minnesota

Pr.

5 %

Securities Co. bf N. Y. 4%

MISSION DRY
.

Bought

Sold

—

American
Eastern

H0HRQSE§lkQSTER
^

Trinity Place, New York 6, N. Y*

Telephone: BOwlirigGreen 9-7400 "

V:-;■>..; +r-yv v.:vr.-

•.

•

Cyanamid Preferred

Sugar Associates,

Common

?•

-V I

Incorporated

Common

all

i, WlNMILL & CO.
Members New York Stock

Wall Street,

New York 5, N. Y.

Bell Teletype NY 1-897

DIgby 4-7060

Common

weekly

service

Haytian Corp.

predicting

Quotations Upon Request

';;g future trends in the stock market
T'

expert on Dow's theory.

FARR & CO.

Members

W. J. Banigan & Co.
i

nv::

J••

;

Established

Send $1 for Four Weeks' Trial

PETER BARKEN

1!MH

HAnorer 2-8380

32 Broadway, New York 4, N. Y.
Tel. WHitehall 4-6430

Tele. NY 1-2500

;

New

York

Stock

•

Exchange

New York Coffee & Sugar Exchsngs

•

chas. b. jones

Broadway, N. Y. 4

Teletype NY 1-955

Alegre
Sugar Corp.

"THE DOW THEORY BAROMETER"

Gilbert & Bennett

Punta

REQUEST

Successors

Exchange

1 Wall St;; New York 5, N.Y.

American Insulator
&

issues

;'?t

MEMBERS N. Y. SECURITY DEALERS ASSOCIATION

Eliminator

Preferred

Teletype: NY 1-375

;

5s, 1946

Minneapolis & St. Louis

Carbon Monoxide

Company
ON

yt ' '

Y. Lack. & Western!

Western Pacific

VtV/V

Farrell-Birmingham

ANALYSIS

FREDERIC H. HATCH & CO.

ESTABLISHED

1914
<y< r 'V •'$
Specialists in Soft Drink Stocks

Cayuga & Susquehanna;

Consols

United Artists Theatre Circuit,

7% Old Pfd.

■p Brill Corp. 7% Old Pfd.

1951,

-V'*■:'?: -'A'-h

Quoted

«—

CAYLORD

204-C INLAND BUILDING

WOOD
INDIANAPOLIS

;i20 WALL ST., NEW YORK
f.

TEL. HANOVER

2.9SiZfM,

Thursday, November 15, 1945

THE COMMERCIAL' & FINANCIAL CHRONICLE

2326

Luckhurst & Co. Opens

Hartford, Conn., Branch

r.;>

Economic Relationships Between

•

CONN. —Luck¬
hurst & Co. announces the open¬
HARTFORD,

ing of

European Countries

branch office at 720 Main
the management of

By EDWARD S. MASON*

under

Street

"William

Utility T&x Savings

Professor of Economics, Harvard University

Lally.

Consultant/ Department of State

BALTIMORE

Recent activity in utility stocks,

Explains That World Peace and Prosperity Depend

Professor Mason

Intra-European Unity and Trade. Contends That the Soviet's Cap¬
of the Business of the Former German Satellites and of Eastern

ture

Bayway Terminal

Germany Is

Davis Coal & Coke

Doubts Whether

Thoroughly Uneconomic Development.

American Loans to

Assert!

USSR Wilt Increase International Trade.

profits tax was not an equitable tax so far as utilities were concerned
were
much harder hit than others, for purely technical

—some

reasons.

Hence

study of poten-<^
share reveals ing,'

Must Be Administered As An Economic and Political some rather startling results, as¬
Unit, and That Proposals for Her Agrarianization Make No Sense. Holds suming that the savings could be
added to recent published earn¬
That Britain Must Cement Her Relations With Western Europe With¬

Drug

Common

.•.

out

STEIN BROS. &BOYCE
New

Members

York

Stock

Baltimore

Exchanges: and other leading exchanges
6 S. CALVERT
Bell

ST., BALTIMORE 2

Antagonizing the U. S.

impossible these days to talk about economic relationships
one's shoulder at the cloud formations which
portend the state of the political^
It is

without looking over
In

weather.

economic

situation where tne

up their own
maneuvering to get under the
umbrellas of someone else, trade

tion to the security considerations
which are affecting a realignment

BOSTON

BUILDING
Owns

of
York City,

Political Science, New

;

DES MOINES

of fabricated

Iowa Power &

group of European states ~ main¬
taining a position of relative neu¬
trality and independence as be¬
tween Russia on the east-and the

Light Co.

Preferred*
Memorandum
;

Request

United Light

y-F'

»' *r.\!.y *?,.

& Rys.

..the

Anglo-American

Rath Packing Co.
Common

powers

west.* There

Preferred*

Priced about 4^4 '

those who;; hold

are

that the concept of relatively neu*
.

tral

bears

close affinity- to the

BUILDING

EQUITABLE

DES

Pont, Homsey Co.

-\'i

MOINES

IOWA ^

Bell Tele. DM 184

Phone 4-7159

BOSTON. 9,

MASS.

National Bank of Germantown & 'Tr. Co.

Penna. Co. for In*,

Majestic Radio

Boston & Maine Prior Pfd.

•*-;

New England Lime Common

*Memo8

—

Pfd. & Com.

Members New
Los

•;

Request

Dayton Haigney 4 Company

Stock

Private New York Telephone
REctor 2-5035

stocks which appear, to be
selling around 6-8 times estimated
1946^^things* j(om;thC basisof .tax
s9yihgs)^arb Central JlHhdiS^ Elec¬

New England

are

Black

Hills

munity ^ Public

are

1510 CHESTNUT ST., PHILADELPHIA

Los Angeles
Hagerstown, Md.
Telephone—WHitehall 3-7253

Phil*,.Phone

N. Y. Phone

Boston Phone

Rittenhouse 8500

Whitehall 4-1234

Enterprise 2050

;

Bell

Private Wire System between

L., Com¬

Idaho

-Service,

System

Teletype

279

ware

son,

arid

In the 13-14 .class

G. & E.

Commonwealth Edison, Dela-

Power & Light, Detroit Edi¬

Duke

Power/ Houston Light¬

-■

S.-W'ui

i
77 Franklin

Street, Boston 10, Mass.

Tel. LIBerty 2340
Portland

Providence

Pennypacker 8200
■

Private

Phone

COrtlandt

A. M. LAW & COMPANY

!
•

Common Class "A" i

Capacity—900,000 barrels annually.

•

PH 30
to

Good

earnings

all

through

•

Philadelphia Co.

L. D. SI

Market

about

LERNER
10

POST

BOSTON 9,
Tel. HUB 1990

Pittsburgh Railways Co.
John Irving

MASS.

Kat-

| The- transit grotip' appears t6
Oohfairi Y somebargaihsi-assumin^'
that

automobile
competitiori
come
back; too rapidly;

doesn,'t

Syracuse

Thus *

Transit,

Capital

Shoe

at.

Louis? Public

Service^^A are:

selling: at only about 3-4 timesearnings- plus tax savings^ Eastr
em. Mass. St. Railway could also
but very heavy arthe preferred -stocks make»:

be included,
rears on

ican Tel/ &;TeL has^ estimated tax"

savings of $5.70 a share, but tKp

have to make

company- may

ther rate cuts

tolls,-

especially

Union's

new

fur^

its lon^ distance

when

Western

cheap radio-facsimile

communications

system

in-

stalled.

Common

Yr Coihmon..
I.

'•* iui

Common

•
•"

>* '?'}*«

-A

ESTABLISHED

1879

Hydraulic Press Manufacturing
Midland Utilities common YY

H. M.

Polaroid Corporation common;

"Makers of Utica &

Securities

Byllesby & Company

MOHAWK

Bldg. Phiia. 2

INC.
238

Genesee St.,

Portland Electric prior

Phone Rittenhouse 3717

Tele. PH 73

Tel. 4-3195-6

preferred

VALLEY'

INVESTING COMPANY

PHILADELPHIA OFFICE

Stock Exchange

New

common

INQUIRIES INVITED

Transit, National City Lines ahdi.

England Public Service pfds.
Northern New England common

■

Gas.;''

Rune, Webber, Jackson & Curtis

Gilbert J. Postley & Co,
29

BROADWAY, NEW YORK 6, N. Y.

Utica 2, N. Y.
.

Teletype BS 69

ural Gas. Northern Natural

Mohawk Percale Sheets''

Warner Co. common

Wawaset

SQUARE

Mobile;

Gas, Peoples Gas*YSoutherh;

" Cotton Mills 1

;

com.

8c CO.

OFFICE

Savannah-

Gas,

Teletype SPBG U

Utica & Mohawk

common

Botany Worsted Mills pfd. & A

Circular available

are

Jacksonville Gas; ;

Natural

Dealer Inquiries Invited

Empire Steel Corp,

Company would benefit substantial¬
ly from tax reduction.
Oregon's
huge
highway
program
ready to start.
t,

SPARTANBURG, S. C.

N. Y. C.

war

period.
•

basis

new

Augustine*

7-1202

Book value—around $18.

•

the

"S'C'.yj?" (Established 1892)

UTICA. N.Y.

Oregon Portland Cement Co.

St.

Oklahoma

Properties

We Suggest

♦

Stock.•

1606 Walnut St., Philadelphia 3

outstanding stocks with low ratios

BOOdHf ^ SbLO^ Qt/OT£Df

BOENNING & CO.

( Springfield

below
10 are, American!
& Light preferred, Cities
Service, Columbia Gas & Electric,
Commonwealth & Southern pre¬
Power

AND
•

r'v •

F. L. PUTNAM & CO.. INC.

company issues which appear;
have adjusted price-earnings;

Public Service of Indiana

Inactive Securities ''

Federal Water & Gas

Bag & Paper Co*
Common

ing

fatios

Textile Securities

Company

Southern' Advance

Industrials—Utilities

recap formula has.
been worked out. "{ However, hold¬

Southern

Common Stock

Bank and Insurance Stocks

preferred arrears to be taken

Delaware Power & Light

;

are

jnto account,.or

Power

holding

Los Angeles

Southern Colorado

Coverage

Secondary Distributions

the

«•

Retail

Ftyvverv |mthe;% Iftrange.bre

SPARTANBURG

New England Markets

estimated
v
<
company
list

their

pany

F. J. MORRISSEY & CO. Pacific

Exchanges

Street, Philadelphia 2

Philadelphia, New York and

Electric and gas operating com¬

power,Newport,; Electric*

New York

*75 Federal Street, Boston 10

large

fornia Edison. In the 11 -12 bracket

& Tr. Co.

Land Title Bk.

^Pittsburgh, Pa.
N. Y.

part

savings.

public Service of Colorado) San the; situation difficult-.to analyze'. '
In the telephohe group, AmerDiego G. & E., and Southern Cali¬

Lives,* etc.

International ResistanceCom. & Pfd.

York, Philadelphia and

Angeles

1529 Walnut

•

P. T. C. Com. & Pfd. 3s-6s

BUCKLEY BROTHERS

Submarine Signal

public.'Service,' Lake. Superior
lMissouri. Utilitiesjf

Philadelphia National Bank >

■

such list there- is necessarily
element of uncertainty,
including current price changes
in the present active market.
any

District Power,

Girard T/ust Company

^Midland Utilities Company
Boston Edison

Fidelity-Philadelphia Tru8t Co^. V

*Reda Pump

TRADING MARKETS

it is fre¬

In estimating savings

quently necessary to use 1944 fig-;
iires because the interim earnings

Jndianav-: and.. .Wisconsin; Electric

PHILADELPHIA

Teletype BS 424

by loss of war-

be affected

may

Shawinut Bank Building

Capitol 4330

stantial
tax

Also, of course, some companies

concept
of
relatively
pregnant. * On the contrary, neut tric & Gas. Illinois; Power. In¬
trality permits of a wide range of dianapolis Power & Light, Moun-r
possibilities. ■' The United;; States tain ; States ; Power, New Orleans
Public Service. Public Service of
(Continued on page 2358)

difficult

the

electric utility sells curr'
rently around 17 times earnings,
the stocks here listed appear to
have appreciation possibilities if
they are able to retain any sub¬
average

INCORPORATED

construction
Protected by patents

and

Since

ferred, Consolidated Electric &
of a high, level
European
trade. Currently the reports don't contain the neces- Gas preferred/Electric Power &
prospects of the second contribu¬ sary details of tax payments. The Light, Engineers Public Service*
Federal Light & Traction, National
tion appear dim mainly because of stocks listed below were selected
Power & Light and Standard Gas.
the impending failure of the first. on the basis of appreciation pos¬
4
* ^ ;
It was impossible—at least until sibilities if tax savings could be $7 preferred.
Y Among the gas companies some
recently —to conceive of a large largely retained, but in compiling

ment

§:j

70% of

Manufacturers

attain¬
of intra-

east and west and (2) the

LAT1STEEL, Inc.

jbegin to show up; and some-com¬

the avoidance of a split between

Nov. 8, 1945.

STOCK

cuts

demanding rate

the abnormal figures

*An address before Academy

Priced

A Low

jtime industrial business, though
these countries.
It has long been my belief that,- preliminary September results for
in the European sphere, two of all electric utilities indicate that
the most important contributions there has been no appreciable loss
to the maintenance of peace and fb net income resulting from the
prosperity In the world, are ' (1) cutbacks in munitions activities.

policies are bound to be affected.
Although my subject is limited to

AUTOMATICS INC.

watch,
soon

among

economic

foreign

and

channels

JOHNSON

between

the
as

Electric

Power.

Pacific

price-eaimihgs tirtios are; loweif;
either European countries I must, there¬ panies, in anticipation of such ac¬
tion, may cut rates voluntarily. but it is difficult to use the' ratios!
umbrellas fore, of necessity pay some atten¬
on
common
stocks where there5

putting

New York Telephone Sector 2-3337

relationships

ings. Unfortunately this will-probr
ably not be- the case, for local
commissions will doubtless be on

Sierra

great and small are

powers

Teletype BA 393

Philadelphia

tial tax satvings per

That Germany

Emerson

reminiscent of the hectic 1920's

due in part to belated recognition of potential savings result-;
ing from repeal of the excess profits tax, and the 5% reduction in the
■income tax *(the rate being reduced from 40 to 38%).
The excess
appear

Tele. UT

Direct

Wire to Chicago

ft"I?',, ^

Volume

162

Number 4438

THE COMMERCIAL

&
FINANCIAL CHRONICLE

syndicate

Alfred West Sales Mgr.
♦

A "

public

offering

$2.25

of ..The

67,374.

cumulative

vertible preferred stock
Aviation

Corp.

(no par)

at;$56

by a banking

headed by Lehman Broth¬

group

$nd

ers

Nov.

Emanuel

Co.

The

offering represents the balance of

289,675
first

preferred

new

offered, to the corporation's

stockholders, plus

common

ditional

ad¬

Co.

Glore, Forgan & Co., 40 Wall
Street, New York City, members
of the New York Stock

the

and

New

York

Exchange,

■

•

that
Alfred
C.
West,
who has recently been
serving in
the purchases division

In Wall Street

ters

Securities

Henry G. Isaacs of the Virginia

headquar¬

the

Co., Royster Building,
Norfolk, Va. (formerly Aycock 8&
Co.) is a visitor in Wall Street.

Army Service Forces

with the rank of

named-sales

Major, has been
E.

manager.

Cum-

Mr.

mings Parker, who has been in
the, firm's sales departments for
several years, has been
appointed

Isaacs

may

reached

Norton

Co., 30 Pine Street.

seof\uo the
cto
if o-r
V

;

/,:>

•r"'

Bank, Floor
:V7

BORLANDi BUILDING

105 South La Salle Street

Telephone State 5300

Ames, Emerich &. Co
Established 1911

Investment Securities
:,-v.

BROS.. & CO

•

-,vt

Members Chicago Stock Exchange

f Members Ne^VoHt Sfpcfc Exchange
'

■■

New, York

•

7e/«phon» R£dorr^-7340

PANAMA COCA-COLA

Luckhurst & Co

Quarterly dividend pai4 October 15,1945— $.50,
DIVDO^NDSJ

1945 (to date) $2.25

1944 $2.75

—

Angerman Co.

•

New Analysis on request

BRANCH OFFICE

,«'.1

V/-- ESTABLISHED 1914

Pfd.

Kold-Hold Mfg.

720 MAIN STREET

Specialists in Soil Drink Stocks

trinity Place, New York

Telephone: BOwling Green 9-7404L

•

the opening of a

Hon Rose STrsster

Cross Compaiiy :
Com.

announce

1943 $4.5Q

Approximate selling price—295/2

■

•

HARTFORD, CONN

N. ¥;

Teletype: NT 1-375
for the accommodation of

Thrifty Drug

Seatrain Lines, Inc.

A Unique Shipping Security

Request

Available Around $10

J.F.Reilly&Co.
Members

40 Exch. PL,
v- '.Bell i

Private

■

NY>

Chicago

120

i-*4Sgi; 7

Los

WE ARE PLEASED TO ANNOUNCE

Angeles

Broadway^ New York 5;N.Y.

Telephone: COrtlandt 7-4550

THE FORMATION OP

VIRGINIA SECURITIES COMPANY

7,;

Oregon Portland Cement 7;'f
v7;
Circedar ] on request

Telephone

HAnover

2-9335

Teletype NY 1-2630

••>.

-■»

..Circulars

Inactive

Kklf.

POST

BOSTON
Tel. HUB

1990

SALES

Securities

US IN THE

DEPARTMENT

Theodore M. Rust

WALTER

•

William D. Sullivan

VIRGINIA SECURITIES COMPANY

KANE, Asst. Mgr.

■

.V-.

Joseph McManus & Co
Members New

;

SQUARE

9, MASS.

Charles L. Ivey
WITH

MICHAEL HEANEY, Mgr.

Available

OFFICE

ASSOCIATION

Securities

nientv 77 7

Riverside Cement

LERNER 8c CO.

Street, New York

Spokane Portland Cement

-t

Wall

Consolidated

COMPANY

Isaacs-.;

AND THE

Curb and/Unlisted

we suggest

SUCCEEDING

7"- Teletype: NY 1-2312
Henry G.

i-:;

AYCOCK

We believe cement, companies .will
|
".operate at capacity foe several years, J

appointed Manager.

per

J. W. GOULD & CO

j,:;

Nei^ York 5, N. X

Syiteiw

Wires

WILLIAM F. LALLY has been

Descriptive Memorandum On Request

—

York Security Dealers Assn.

and

A Dividend Payer

—•

With Possibilities

;

"Y; New

vicinity.

Hartford

Class "A" Stock

Bought—Sold—Quoted
Prospectus

Security

Dealers

Liberty Fabrics

y:;'

Teletype BS 69

York Curb Exchange

Chicago Stock Exchange

39 Broadway
;; Difby 4-3122

■

New York 6

Teletype NY 1-1610

BUILDING

NORFOLK 10, VIRGINIA
TELEPHONES

ROYSTER

26301-26302

New York at the offices of Collin,

the removal

120 Broa d way,

3
?

announce
We

SUTRO

Henry G. Isaacs Visiting

announce

office

Glore, Forgan & Co.

10,325'shares* not offered

•tQi shareholders.

with the Berkshire Life Insurance

Other Appointments

con¬

share, plus accrued dividends, was
announced

James

has been appointed maiW
of the firm's trading depart¬
ment.
Mr. Ahern was formerly
ager

Offered to Public
shares', of

manager.

Ahern

;

available
rent

Real Estate

increased

the percentage

under

clause
of

store lease

Wanamaker

the

through real estate tax
and ' through

savings

ground floor.

•

(Westinghouse Building)
New Securities Appear to
Underpriced4 in Relation to Present Day Appraised
Broadway Corporation

ganization in 1934 an amount of
$958,583.34 had
been retired at

Reorganization Completed.
be

the

course

being allocated as land value and
$1,000,000 as building value. The

receive

security

for

par

including April 1, 1944; to re¬

deem

new

par basis in the
$2,668,383.50, said
bonds being junior in lien
$600,000 first mortgage, the
on

amount

creased the

and

for the
bond

exchange

bondholders
old

contract// to- <8>
gether with concessions in others

value;

total

$nce Dec. 1, 1941, /in¬
operating expenses of

effected

the

purchase in
$261,166.72

open

principal

35.8%

employing printers by
far

members of the "Big 6" are

„

comments

following

The

'-"St'i-

■

$54.50 for a 40-hour

was

present

$6n,343.68 in bonds at face concerned..

market

new

The

week.

1, 1941,

The scale of this Union on Dec.

property were sufficient to pay
the reduced. 4% each year up to

proceedings the appraisal
$2,320,000, the sum of $1,320,000

reorganization

the

by the court was

Pay and Shorter Work Week

six months hence.

to 36% hours

.par;

Typographical Union No. 6 and the Printers League Section
of the New York Employing Printers Association reached an agree¬
ment on Nov. 11 providing for an increase in take-home pay and a
reduction in the work week as of Nov. 15 from 40 to 37% hours and
The

Following the voluntary reor¬
ganization, it appears that from
April 1, 1934, the earnings of the

tVaIue of Property*
deemed to be sound

Members of New York City Typographical Union No. 6 Get Increased
,

original mortgage on the
property, placed in 1923 was $4,500,000.
Prior to the first reor¬
The

150

Printing Empis. Get 36% Hour Week-Pay Boost

Thursday, November 15, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

re¬

garding the instant agreement are
taken from the press of Nov. 13:

—

V. N.

Agather Rejoins!

Staff of Shields & Co.
-

Shields

Company, 44 Wall
Street, New York City, members
of the New York Stock Exchange,

announced that Major Victor N.
Agather, re- >4
;
v
>■ *, t
agreement, which was an¬
cently re- ; w;, 668,383.50.
ceeds of which' was
nounced by Charles E. Schatveti
leased
from
purchase of the corner parcel of
President of the employers' group,
V/right Field,
land in which previously there
and Laurence H. Victory, Presi-|
where he was
was only a leasehold interest held
dent of No. 6, provides for the
project officer
as
part security for the bonds.
institution of a 37% hour week
re sponsible
Bondholders will also receive cer¬
Nov. 15 with base pay of $66:40,
for produc¬
tificate of beneficial interest which
and for a reduction of the work
CLEVELAND, OHIO —Chester
tion
of
the
shall be physically attached to the S. Iverson has become associated week to 36 y4 hours six months
B-29, has re¬
new
certificates of participation
later. The employers also granted
with Otis & Co., Terminal
joined their
Towerj
transferable only as a unit except
an
additional week of vacation,
as securities
firm after
analyst, according -to
that certificates of beneficial in¬
an announcement made
today; I j giving the/printers two weeks, three years of
terest remaining outstanding after
Mr. Iverson, a Captain in the arid three holidays, July 4, Labor service.
/ ,
retirement or redemption of the
Ordnance
Before go¬
Department
of
the Day and Christmas, with pay. i ,|
certificates of participation will be United States
'. The settlement followed the lo¬
Army, has been re-i
ing to' Wright
freely transferable. Holders of the leased from service. after
membership's / rejection
in Field, Major
th*ee cal
latter who tender to the sinking
October of an agreement that had
and one-half years of duty.
Agather
was
fund shall' retain beneficial inters
been
reached between its loca) aeronautical
Before entering the service he
est certificates.
/
negotiating
committee and the consultant to
was associated with Goodbody; &
Printers
The* present market' around - 40
League Section, which the War Pro¬
Major V, N. Agathpr
Co., Chicago, and before that for
would give a value of about $1,represents all book, magazine and duction JBoard.
several years with Lamborn, Hat¬
068.000 to the new security. Add¬
job printers in the city.
^
' i and assistant administrator of the
chings & Co., Chicago as an an¬
Mr. Schatvet explained that in
ing the prior lien of $600,000 re¬
Aircraft Scheduling
Unit which
alyst specializing in railroad se¬
view of a 21-day strike called by
sults in a total of $1,668,000, or
curities.
~ "
" *
prepared the original aircraft pro¬
;
about $652,000 less .than present
the union in Chicago to achieve
duction
schedules, consolidating
He
has
contributed
financial
the
conditions Included: in
thq
day appraised value of the prop¬
Army,j Navy* and British' aircraft
erty. The plan provides that earn¬ articles to "Barron's Weekly," the new contract here that "the Print4

amount of bonds, leaving the pres¬
ent outstanding
balance - of $2,-

pro¬
used for the

The

Chester Iverson Added

real estate

to Otis & Co. Staff

securities
Primary Markets in:
Hotel St George,

4's

16£ Broadway, 4H's
870-7th Ave. 4 /s
(Park Central Hotel)

Savoy Plaza 3-6's, '58

Beacon

Hotel, 4's
★

★

SHASKAN & CO.
Mombori Now York Slock Exchange

ings of the property will be ap¬
plied first to the payment of in¬
terest at the rate of 3% per an-i

Membert Now York Curb Exchange
40 EXCHANGE PL., N .Y.
1

Boll

Dlgby 4-4950

V "

Teletype NY 1-953

TITLE CO.

and y.

Journal"

publications
4

any
balance will; be
into two equal parts, one

and

divided

Certificate*

Street

and other.

(•

ers

League reluctantly acceded to

the ultimatum of the

International

Typographical Union in order to
maintain production in its mem¬
bers' plants." '-I *
: "
' •
"The Printers League, regrets,"
part added to the interest distribu-j Railroad Uohipany,-a railroad iri~;
tion and the other, used for
'fiei Vesting company, and a .Director he added, "that peaceful collective
tirement of certificates.
Indica¬
bargaining, which has character¬
ized the industry's labor relations
tions; are |that 3 % can be earned
and that additional sums may be Navigation, fcompany^
/. i!../ f U in New York since 1903, has been

num

We buy and Sells

"Wall

Mr. IversOn is Chairman of

Board

Culver &-Port

thje[

Clintop

Mortgagee

■

disrupted."

procurement.^/. vg
! As

'member of

a group

con¬

sultants sent to the China-Burma-

theatre

India

Marianna

the

and

Islands to establish

combat main-

teriance organization for the B-29s,
Major Agather received citations
from the commanding generals of
the 20th Air Force, the

Continental

Air Technical Service
Command and the Air Transport
Air Forces,

outstanding

his

for

Command

Work on the B-29.

PRUDENCE AND

specialists
REAL ESTATE BONDS
.1 in

■XM

Real Estate Securities

Broadway, N. Y. G

Exchange
services

Dlgby 4-2370

[

Teletype NY 1-1942

Seligman, Lubetkin & Co.
Incorporated

—

OFFERINGS WANTED

Members New

—

Bread

York Security Dealers

Association

Street, New. York 4

ence.

State

All replies

rep¬

experi-

Trailer Available

confidential.

Experienced trader and
analyst in unlisted securitiesg r e c e n 11 y re¬
leased from Army, de¬

Box SE 1115, The Commer¬

Park PI

New York 8, N. Y.

4-6/48

Midtown Enterprises
5/64

23
'

s."

Wei
Coast

r/vrr.;r

J. S. Strauss & Co.
Montgomery St., San Francisco
Bell

Teletype SF 61 & 62

;

fr,

gi; New

150 Broadway

securities

//Tel. BArclay 7-2360

8, N. Y.

capital* available.

Amplri
Box "C-

Banking

Commercial

The

Financial r -Chronicle/ /

Go.

Park Place, New

Incorporated

—

real estate

House.

Place,: New: York

Park

Partnership in Investment

111,

•

'•

SPECIALISTS

___f

instance, if you are' interested in any Real Estate.
securities, get copies of ;our 1 statistical Reports: /and try !
us on bids and offerings.
Maybe we can help you too/

AMOTT, BAKER;
—

For

Chronicle,

Financial

WANTED

proud of the i large, number of dealers from
to ~ Coast ~ we /count: among- our
friends and

are

customers.

i th

progressive firm.
Box
IJ-15, C ommerci a 1 &

HELPING OTHER DEALERS

-2-4/50

Wall & Beaver Street ^

155

connection

sires

Lexington Avenue

>•:

Kaiser & Co.,

Buss Building.

cial & Financial Chronicle, 25

HAnover2-2100

—

has f been

Fazackerley

added to the staff of

the

desires

registered

resentatives.

////'

Broadway Motors Building

firm

CALIF.

FRANCISCO.

Kenneth

SIEGEL & CO.
39

With Kaiser & Co.
SAN

Established New York Stock

'•*

Since 1929

Registered
Representatives

;/25

York 8,

Salesman Available I

.\t."-Vl ■>-1 ■:*.}' J•
.y

.••••
*»•',

•'

T* k;

/;>•
4.

Experienced Seciirity /

York 7, ,N. Y.

Sales|

position

With

man/r desires

Teletype .Ny. .1-588 <

house! handling

diversified/

classes of ^securities. Box:SE

Bismark

Hotel

Chicago

Co.

■'.X

" " T

■

Income

Alms

5/60

Hotel

Salle

"B"

Madison
Chicago

Land

Corp.

w. s.

Trust

request for

Tele. CG 660

49 WALL STREET, NEW YORK 5

2-6470

Co.

So. La Salle St., Chicago 3, III.

Tel. Central 4424

in:

Address

Walter Murphy, Jr.

Teletype

» '•

A.4

-i

.i I

"SsyH I

Park

Place,

New York 8,

<
v

N. Y.

full/ details.

our

Cedar

Russian

confidentially.;

advertising agency.
40

C;w7-T'''T^Vr-

ALBERT FRANK-GUENTHER LAW, INC.

131

...

over-the-counter

Give

Box

' V"'
1-1440

•

standing has open-:
Junior

Replies treated

Units)

for. experienced

ing

securities.

brokers and dealers only.

house

investment

Large

Trader

't-'fCirculars

Chronicle,

/, V ■/-

first la salle co.
11

/Income 3-6s 1955

•

many years

4/47

118, Commercial & Financial

ASSISTANT TRADER

r ■>.'

Hotel

Transportation Bldg., Chgo.
(V. T. C. and

Allerton Nev York

Chicago Stadium
1

i V

Advertising

;

Street* New York 5

Interpreter

woman, Vassar
knowledge Russian and
Government credentials),
desires * connection v/ith
interested New
York concern. Box-Ll 18, Commercial
Sc.
Financial Chronicle, 25 Park Place, New

American

Russian

born

alumna,

perfect

French/(U. S.

York

8, N. Y.

■'

Volume 162-

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438

2329

Six and One-Half Billion of New The Obvious Results

| iiK^g'^Ot'Rent Ceilings

I Construction During 1946
Administrator

Production

Civilian

Director of New Organization, Taking

Securities

/X^-^.E

SMALL*

By JOHN D.

E '

Over Work of War Production

Board, Predicts That New Construction Will Expand, Despite Man¬
Shortage and Materials Scarcities, and Says New Construction
Is Expected to Be at Least $61/2 Billions in 1946/, and Provide Directly
a Million
New Jobs.„ Pointing Out That Inactivity in Construction Is

power

/E'i-

Synonymous With Depression, States That Manpower Shortage, Due
to Low

of Build¬
and io Pre¬
Holds Price Controls

Wages in Materials Industries, Is Causing Retardation

ing and Outlines Policy to Expand Production of Materials

Speculation, Hoarding and Price Inflation.

vent
EEs

gen-

you

——

relaxed through suc¬

and further

amendments

cessive

part

are

discussing with you the
They are important

facing the construction industry.
;
- .
,,[

tlemen who
this

industry

and

also

for

But

materials

became available.
its complete re¬
Oct. 15, all is not smooth

manpower
even

with

the country at

moval

large. Jor

sailing yet in the construction in¬

construction

dustry.

feed¬

its

and

are

founda¬

tion

stones

If the peace-

objec¬

time

tives

p r o

full

speedily otherwise these
shortages may well hamper the

full

1946

em¬

because

Small

:ee^eXe' Er;vi
of unhampered expansion

construction field must be

the

removed.

construction

situation

ployment are
to be attained,
obstacles in
the way

tile,

creased

d u ction

and

iron

cast

structural

brick,

/'EE

economy.

lumber,

are

healthy

said,

has been

and

The
is
particularly serious
housing is the type of

construction

scarcity
rials.

program;

affected

most

building mate¬

these

And

from

all

accounts,

housing is urgently needed.

Practically every City in the
country is suffering from a hous¬
ing
shortage.
The
number
of
depression."
^
Jy':'.
dwelling units needed during the
fCpnstruction and, Its pipe-line
next 10 years is estimated to be as
industries
provide
millions
of
■•ehigh as 12,500,000. That is an aver¬
;'v
jobs. In 1942 the volume of conage of 1,250,000 a year.
This num¬
structiori reached a peak of nearly
ber
would Jpe required to take
13 billion dollars and gave em¬
care of returned veterans, newly
ployment to about 2,200,000 work¬ established
families,
those how
iiM
ers.
An additional 2 V2
million
doubling up with others, and to
workers were needed to provide
replace one-half of our present
materials used for this gigantic
substandard dwellings.
The 1946
construction program—in mines,
minimum program will attempt to
forests and sawmills, and in fac¬
assure at least $1,675,000,000 worth
tories making construction ma¬
of housing.
It is estimated that
terials and components.
this would provide for the con¬
struction of somewhat more than
E With *major facilities for war
production
built,
and
canton¬ 400,000 family dwelling units in
ments, war housing and other war 1946, approximately
double the
construction needs met, construc- number to be completed this year.
E tion had to be held in check dur¬ Of $1,675,000,000 worth of housing,
ing the. remaining years of the $1,526,000,000 is expected to be
V war.
This was ; essential to con¬ provided by private activity.
;'i

rightly I think, that "inactivity in
is synonymous with

■

•Vy-..

practically

construction

every

important city in

the United States rents
1943, levels. More¬

have been ceilinged by the OPA at their March 1,

while the future is somewhat unpredictable, we think it is
a
fair assumption that rent con¬

over,

trols
a

are

come.

V1;

;;;■••

control, of course, is one
important functions of the

; Rent

of the
OPA

"—

going to; obtain'' for. quite

while to

and

by any, chance

the

go out Of

inconceivable

total;-will

less

run

the

that;

half

than

But

this is pretty, academic for we be¬
lieve that in. one manner or an¬
other

controls

rent

be here for
this

And

going to

are

considerable period.

will

probably be so
of multiple
been
extremely

construction

because

dwellings

has

for

the last

and
single, family dwellings, with the
years

exception
of
emergency
war
housing, have not been built to
any extent in the last five to six
years.
As a result the housing
demand is far greater, than the
supply so that in the Govern¬
ment's opinion extreme confusion
would result, to put it mildly, if
ceilings were lifted.
HoWever, 'the country is waking
up to the fact that rent control
does not build buildings and does
not supply living quarters — on
the contrary the ceiling of rents
works to accomplish j ust the op¬

For with costs at
current levels, multiple dwellings,
or
single family dwellings built
for rental, cannot on any large
posite

scale

advantageously
(OPA will "allow

20%

con¬

increases

pew

rent

15%

from

run

that

will

total

that

clear

with

and

materials

serve

manpower.

first peacetime
year,
construction- will expand.
| New construction, both public and
I private, is expected to amount to
f at lelst 6 V2 billion dollars; This is
I expected to provide about one
But

1946,

| million jobs, not counting those in
I the pipe-line industries.
In

the

interests

of,speedy re-

| conversion, and to ^et

a start on
pent-up demand for
housing,
highways,
commercial
buildings and other construction,
meeting the

phis 1946 program must he carried
I put.
| The construction order, L-41,
$ was relaxed soon af tefEV-E Day,
•

--S.

i *An address by Mr. SmaHrbeI

Now you
The

war

mands

cipal

the

ask, why are we
material
shortages?

may

with

faced

and

over

have

reason,

military de¬

dropped.
The prin¬
almost without ex¬

referring to the fact that
single family dwellings can be
built without any limitation as to

Generally it may be said that a
single family dwelling that after
completion was sold for $6,000 in
prewar "• years now • has to fetch
about $9,000. But they are being
built as fast as materials and
labor

are

available "iand; if

rent

ceilings are to be maintained we
believe that the United States is

terial fields

workers

now

The issues
low
to

wages

are a

particularly

] Arid if this is

a fair and
ac¬
preview of what is going
to
occur,
and we think
it is
completely accurate, investor-in¬

curate

terest
will

building

many

heightened

and

stocks
in¬

this

terest will spread over

into other
groups.
For the construction of
an
amazingly large total of sin¬
gle family dwellings will produce
added and profitable business for
the electrical

utility industry, gas

heating, gas appliances, electrical
furniture, and many
other items that go into the com¬
appliances,
fortable
standard

single

the United

States.

conclusion

perhaps can
reasonable assurance

with

say

living- of the
family dwelling

way

one

that while' the automobile

(Continued

on page

indus¬

OUR

DIRECT

Kaiser
E

NEW
NEW

PINE
NEW

STREET

may

a highly important factor
industrial pattern in the

our

following World War II.
(Acknowledgments to M. S. and
H. S.)—RALPH E. SAMUEL

years

& CO.

YORK

YORK
YORK

CURB

By MARK MERIT
E

When

that,

building service

ployees strike in New York,

em¬

one

telephone operators walked

our

35 floors to

the

telephone

our

room

Empire State Building, where

Schenley executive offices

lo¬

are

interest was renewed in
something we have been intend¬
ing to talk about for sometime,

cated,

our

So.,. we made

;

most

inventions

one

business

intricate

man—which

important

routine

visit to

marvelously

plays

in "

part

our

lives—the tele*
phone switchboard. We talked to '
Pauline

Mrs,

;;

Hall,

Chief Operator and
15

the

who

also

our

big sister

girls who operate the

eyes

off with sticks"—they

popped—when we learned that

our

handle about 50,000 out¬
going local calls per month and
about 55,000 incoming calls. And
girls

Firm in Dallas
TEX.—Frank

DALLAS,
has formed

Miller

& Co.,

Frank

with offices in the

Republic Bank

Building, to engage in the invest¬
ment

business.; Mr. Miller is rer

suming business

after three and

one-half

service

Navy.
of

years

the

Brown, Inc.

the

formerly President
Miller, Moore &

was

firm

then there

the thousands

are

inter-company calls, between of¬

fices* spread through 20 floors of
this world's tallest building—just
to round out the

So much for

business.

let's

Now

moment and

figures.
individual

our own

imagination to

permit

loose for-

run

■

oui;
a

expand this picture

the nation. When

across

have

done that, we

believe that

will

just about ready to conclude
that no commercial history of the
period in which
be

we are

complete without

living would
encomiums

grateful acknowledgement—
nation's commercial

the

(who

companies

phone

tele¬

handled

than 30 billion telephone calls

during the last

war

year—both dial

and operator

calls) and their mulof loyal and courteous em¬

titude

where

ployees, for their magnificent per¬
formance.
And

/INVESTMENT BANKERS/ /

speaking

courtesy,

the

Members New York Stock Exchange
Other Leading

and

Exchanges

UNDERWRITERS AND

DISTRIBUTORS OF

INVESTMENT SECURITIES
E.r

BROKERS OF BONDS, STOCKS,

COMMODITIES

/.E.E'E
E'-.

BUILDING!

FRANCISCO

girls on the switchboard. In
of priorities their slogan was

to the

Private Wires

•

Home Office

Atlanta

•

Phone ID-159

Z2ZSS5ZZZS5SS22ZagY

,-V:

"there

are no

priorities

words."

you" and "please,"
sometimes feared were

becoming obsolete in our language,
are still with us—thanks mainly

an era

EE"

g
u

1500 RUSS
SAN

heard

recently

the

during

our

//V

\E'

EXCHANGE :

advertisement which

Co.

STOCK EXCHANGE

appear an

board. You could have "knocked

2338)

PROMPTLY

MEMBERS

BAN FRANCISCO STOCK EXCHANGE

words "thank

PRIVATE WIRE

■

re¬

"Number, Please I"

such

IN SERVICE TO

EXECUTIONS

AND

OVER

been

' SCHENLEY DISTILLERS CORP.

later, multiple family dwellings)

industries

COAST SECURITIES

QUOTATIONS
HANDLED

soon

had

EE.

will

the

scarce

BROKERS AND DEALERS ON
Er:':fvE'vEE-EEwE:E:.EE'E?Y?y^£::v ;
E-EV.>.;

PACIFIC

re¬

we hope
be of interest to our fellow
Americans. This is number 107 of a series.

which

EiEE" v.

EE-/.E'

was

contract came

was

^SPECIALIZING

request
new

NOTE—From time to time, in this space,

the backbone
of our
prosperity in the five to 10 years
following World War I, single
family dwellings (and somewhat

try

those wage advances are necessary
to insure full production of those

D. C., Nov. 2, 1945.

Schram,; their

moved.

ap¬

salary increase for Mr.

fused, but the

and

construction

Treasury Department

proval of

there will

materials, a rise in the wage scale
should be given serious consider¬
ation;

war

SCHENLEY DISTILLERS CORPORATION

complex. Where
definite obstacle

increasing production of

the

purposes.

to retain persons

are

sought

during

huge demand for housing can be
mainly ; met
by
single
family
dwellings
constructed
for
sale

in those industries.

win

Governors

have

occasions

consideration

too low to attract

are

new

reported

several

restrictions

sale

for rental purposes.

Exchange

under

are

price. As a result, builders
can
and probably will construct
a
huge total of single family
dwellings for sale purposes where¬
as there may be little construction

Although

EE,-''

salary

ception, is shortage of manpower.
We are told that existing wage
rates in some of the building ma¬

essential

Building Products Ex¬
ecutives' Conference, Washington,

fbre

Manpower Shortage

our

However, there is another Side
to this picture that we think in-f
vestors should think about.
We

the

V/;

For

;

buildings .as a rule, <but building
costs are" running
00% to 50%
above prewar levels.) "

instead

rent

to two million.

one

seems

the

ceilings preventing extensive new
building for rental purposes, the

result.

structed.

well

may

President, under
Schram's salary until

Mr.

year

with

contract

new

the end of 1948 will be $100,000 a

years.E
It

that it had

Nov.

Schram,

which

are

be turned back to the; States.

year,

Emil

into

entered

going to witness the construction
of an outstandingly large num¬
ber
of
single family dwellings
during: the next two or three

million: of such dwellings, and it

The New York Stock Exchange
announced

$48,000.V

—

business in
it is, barely
possible that. rent controls would
of

limited

soil- pipe,
clay sewer
pipe, gypsum lath, and plumbing
and heating equipment.
Produc¬
tion of these items must be in¬

;

a;-*

As you gentlemen know, cer¬
tain key building materials are in
short supplyi
Chief among these

industries

er*

June

glad to have this - opportunity of
novv

for

,! !V

OPA is to

Must Be Retained During Reconversion.

problems

Brokerage Firm Sees Rent Controls Stimulating Construction
of Private Dwellings and Having Opposite Effect on Building for Rental
Purposes. '
j 'fE v;-E',:,.1;e;,','';,:;ev1-'■/' ■■■ EE E"'
•""'i■■■'"E1" "E"'"

$100,000 Annually

friendly

E E;

Salute!

FREE —Send
mark

colp.,

postcard

merit of schenley

or letter in
distillers

N. Y.,
booklet contain-

350 Fifth Ave., N. Y. 1,

and you

will receive

ing reprints of earlier articles on
subjects in this series,

various

;

Thursday, November 15, 1945

2330
Central Iron & Steel, Oregon Port¬

Trading Markets in

•

Dealer-Broker Investment |

Bunte Bros.

Nu Enamel

to send interested parties the

1
v

Ray-O-Vac

•'/'

Transportation

reporting

C. L. Schmidt &
Salle Street
Tele. CG 271

CARTER H.C0RBREY& CO.
Association
o/ Securities Dealers

Member, National

•vV

Pacific Coast

—

MARKET

jr>V"

■&?

Michigan 4181
LA 255

Car Co.

Bantam

>*';

Arizona Edison

Co.—Descriptive
circular—Seligman, Lubetkip &
Co., 41 Broad Street, New York 4.
New York.
/,- ■
•,,

Foun¬

dation Co.; Fashion Park, Shatter¬

trial, $1—Gaylord Wood,
Inland Building, Indianapolis Ind.

weeks'

Utilities Corp.

HICKS 6- PRICE
Members Principal Stock Exchanges

Randolph 5686—CG 972
New York Office

Fire

Insur¬

•Burton-Dixie

Central

Steel

Globe Steel
*Oak

Corp., Com.

Wire, Com.

Tubes Co., Com.

Mfg. Co., Com.

•Wells-Gardner &
'•

■

Co., Com.

•Prospectus Available

corporations with refer¬
political, financial and

30Q

Co.,

Principal Stock Exchanges
Chicago Board of Trade Z'Z'Z

Ohio

list

T.—A

benefit

the

New York

•

■

of companies which
the elimination

profits tax—Brand,
Ross, 120 Broadway,

Also
& Coke

bulletin—Laird,
120

Broadway,

5,,N. Y.
new

bulletin

Third

Quarter Statistical Comparison of
19 New York City

Estate

securities,

Security

Index-

the current
& Co.,

discussing

situation—Amott,

Corporation

Inc.,

Comstock & Co.

Central Paper Company, Inc—
New analysis-~Loewi & Co./ 225
Mason

Street, Milwaukee 2,
\

and

Dearborn 1501

Teletype CG 257

Chicago Railway Equipment Co.

—Analysis of high leverage com¬
mon
stock—Sills, Minton & Co.,
Inc., 209 South La Salle St., Chi¬
cago 4, 111.
r
*
»"

Tax

;

Wall

York 7,

dum

Viewpoint—Questions
Hickey,- 49

answers—Vilas &

Street, New York 5, N. Y.

Also

available
on

counts.

Railroad
«

memoran¬

Income

•

Ac¬
r

Pump

—

Memorandum/—/

circulars

are

Products,. Clyde

—Brochure

Schenley

Birmingham

of articles

they have

Co.—

Fifth

York

New

Avenue,

ZZZZZW-

N. YMZ

Analysis—W. J. Banigan & Co., 50
Broadway, New York 4, N. Y.

Seatrain

Stock

Exchange

Chicago

Board

Trade

Greiss

Tanning

eger

Inc.—Descrip-1

Lines,

on possibilities
shipping security—J. W. *
Goujd & Co.. 120 Broadway, New
York, 5, N. Y. '

Co.—

descriptive circular—Amos Treat
& Co., 40 Wall Street, New York
5, N. Y.

this

Stores

Tybor
Gro-Cord

b b

analysis—Caswell

e r

—

Co.,

Analysis

—

;

: .i/;

•

TS.

Corp.—Circular on in¬
teresting possibilities—Hoit, Rose
& Troster, 74 Trinity Place, New
Hajoca

Vinco

Corp.—Circular

Toolan & Co., 67
New York 5, N. Y.
Walt

Also available is
Thermatomic

Carbon Co.; Red

and

new

Disney

Co.,

Union

James

Productions

Los

analysis

Engineering Co.—cir-

Wellman

Automatics

Boston

Broad Street,
i

Whiting Corp.—Late

way,

common

Company
stock

—

available

Pattern

are

Railways,

New York 4, N. Y.

Chicago Clocks Back Hour'

sound specu¬

studies

For the first time since

Feb.

Co.,

set

Oct.

Central

Standard

Time

27.

Chicago

Co., Inc., and Winters &

Metals Disintegrating

Co., Inc.
1

Common Stock

South

Cement

A—Bulletin

velopments—Lerner £ &
Co.,
Post
Office
Square,
Boston

Mass.£>///,

7/77/::;■■

available

Also

TthmLrt

If!"

Request

I
,,,,

209 South La Salle Street

de¬

634 South

10
9

Spting Street

LOS ANGELES

TEL

Chicago 4, Illinois

II. CAL.

TRINITY 634S

■/

Fi«t

•

••MCt

> t IV ATK

Willi

'.TO j /

I AST

B<mk z\*j.

'/t'LlHCOUl I."1R*./

TCL DEARBORN 0S0Q

?/X:-■ /1
circulars

are

Prospectus on

IJorl SlocL £,ckany cuij Ckicajo Slocl Zickanyt

Corp,

recent

/on

/•

Cfiiiiitnofii & Co.

•

Consolidated.
Class

INI

,TEL Z-3M9

W I S t

C OAS t S

—We Maintain Active Markets In—

Midland
Write
A

208

study of

SOUTH

CHICAGO
Telephone
Direct Private
Bell

Realization
For

M-3—

Midland

CHICAGO RAILWAY EQUIPMENT COMPANY

Utilities

SALLE

ST.

INCORPORATED

Randolph 4068

System

New York

537

Members

Chicago Stock Exchange

1421

CORP, Com.

DEEP ROCK OIL CORP.

Con/

Byllesby and Company /
Incoroorated

135

•?

209 SO. LA SALLE ST., CHICAGO 4, ILL.
Telephone Dearborn

GALVIN MANUFACTURING

H. M.

SILLS, MINTON & COMPANY

ILLINOIS

Wire

CHICAGO SO. SHORE & SO. BEND RR. Com.

stock is well situated to assure
participation ii^ the' rail' equipment 'boom*.
Company is
dominant -manufacturer
of
Railway
Car Brake ./Beams.
/-Earned $8.49 per share in 1937, the last good rail car year.
Yields in excess of 6% on basis of 1944 dividend.
■'?/:////:

Teletype CG 864

y
.

was

verted to this prewar system.

Crampton.

Street, Chicago 3, 111.
>;■ •,/,'.

to this action,
the only major city/
in the country that had not

memoran¬

135

1042: the, cldeks/iii/ Chicaga ^were?i/i

Simplicity

Commerce

—

Broad- /

Study

lative
purchase — First
Colony
Corporation. 70 Pine Street, New
York 5, N. Y.
Pittsburgh

memoran-

dum—Strauss Brothers, 32

9, Mass.

Roi

cular—Simons, Linburn & Co., 25
New York 4, N. Y.

Descrip¬
tive memorandum on low-priced
building stock—Du Pont, Homsey
Co.,
Shawmut
Bank
Building,
—

Corporation

—

Angeles 14, Calif.

Building, Cleveland X4, Ohio.
Cliffs

Special report—Maxwell, Marshall
& Co., 647 South Spring Street,

memorandum

—

Wall Street, ?/

of Panama Coca-Cola.

containing a study of
values for 1936-1945—Gillis, Rus¬
sell

;/•-

--..•7

•.

York 6, N. Y.

This high leverage common

Midland Utilities

—

■

Analysis Available:
,

1,'

Members

Chicago

Corporation,

Distillers

SINCE 1908

Fred. W. Fairman Co.

been running in the Chronicle—
write to Mark Merit, in care of
350

Midland

Schenley Distillers Corporation
on

Por¬

jestic Radio & Television.
a r r e

Utilities Co.

celain, International Detrola, Ma¬

1529 Walnut
2, Pa.

memoranda

Cliffs Corporation—New memo¬

Security Transactions From In¬

come

:/<"/ CHICAGO 4
•

available

Also

Also
!

La Salje
?

Reds

Buckley Brothers,
Street, Philadelpha

Reilly Ik, Co., 40 Exchange Place,
New York 5, N. Y.;
y
Dri-Steam

Co.—Brief

possibilities—
Dayton Haigney & Co., 75 Federal ;;
Street, Boston 10, Mass.

Steel—circular—J.

Empire

Lime

leverage

•

report

Baker

150 Broadway, New

Co.—Anal¬

* r

England

Also

dum—Kitchen

...

available

Also

Johnson

cisco, Calif.

Study of 50 active New York City

/ Howard Aircraft

231 So. La Salle St.

26, Mich.

study

Sheller Manufacturing Corp.

randum,

Real

6, N. Y.

TRADING MARKET

Bank Stocks.

Drive

Company

Recent

—

report— Mercier,
McDowell &
Dolphyn, Buhl Building, Detroit

Rock Bottlers,

Stock Extras Seem

Meeds,

Inc.

Electromaster

j Central Electric & Gas Co.—De¬
study—Brush, Slocumb &
Co., 1 Montgomery St., San Fran¬

East

5, N. Y.

More Bank

/'-/r-'ivH•/"/

Corporation

Wall

Peck," 63

Street, New York 5, N. Y.

Wisconsin..

Bissell

Four Wheel

from

Imminent—New

Auto

;

excess

Grumet

New York
Central Coal

cular—Adams

San

St.,

Low Priced Issues with High E.

Rockford, 111.

Cleveland,

Street, Chicago 4, 111.

Teletype CG 405

Indianapolis, Ind.

•

Montgomery
Calif.

Francisco 20,

York

Prod¬

—Adams &Co., 231 South La Salle

industrial trends—First California

will

Members

Tel. Franklin 8622

analyses

are

tailed

1916

10 So. La Salle St., Chicago

available

Also

E. G. Brooke Iron Co.—Circular

Request.

Paul H.Davis &Go.
Established

ence

———

Radiator

ysis, for dealers only—6. E. Un- Z
terberg & Co., 61 Broadway, New

;

description of U. S. Victory Loan
issues and current information on
twelve

National

111.

Boston & Maine Railroad—cir¬

securities—includes

for

•

RayiftOnd & Co.,-148 State Street/;

Rayon and New Bedford Rayon.

outlook

Borg Corp.

popular-priced women's and chil- - f
dren's apparel—Hardy & Co., 30
Broad Street, New York 4, N. Y. f;

Company—An¬

Liquidomcter Corp., Delaware

corporate
earnings,
taxes and labor as related to the

George

Boston 9, Mass.1 Ask for. analysis-»

—Discusses

vThe

Company/

this operator of
retail stores selling

120
South La Salle Street, Chicago 3

Investment Guide for November

■

Wohl

Recent

;

Company of Hartford.

ance

...

N. Y.

memo¬

Mid¬

prospects—F. H. Roller & Co.
Inc., 1X1 Broadway, New York 6

study

and

National

Baker-Raulon»

Wall St.

America

randum

SO. LA SALLE ST., CHICAGO 4

231

available

Also
Bank

Chicago Board -of:Trade

v, >;;

& Co.

Calif.

St., Los Angeles 14,

chain

New

Seventh alysis of condition and post-wai

West

210

California,

American

Miller

The

American
Window
Glass;
Michigan
Chemical;
Lawrence Port. Cement;
Ox¬

—

companies

insurance

ysis

and 39 banks—Butler-Huff

and

tive memorandum

Corporation

Special
report—L. H. Wright, 135 Broad¬
way, New York 6, N. Y.

Stock
anal¬

Bank
comparative

and

Insurance

Evaluator—A

Request

New York City.

I Aviation

The Chicago Corp.
Circular

proof Glass, and Wellman Engi¬
neering Co.; and reports on prac¬
tically all Real Estate issues in

weekly service predicting future
trends in the stock market—Four

Consolidated Gas

'—.A

Barometer

Theory

Dow

Industries;

Inc.;

Inc.—circular

Airways;

Build¬

ucts.

American Forging and SocketCircular—De
Young, Larson
&

Also detailed circulars

.,/

Common—Revised /

Chicago.JU.

New report and comment—Knee-

land & Co., Board of Trade

nightly Market and Business Sur¬
rey—E.
F. Hutton
St Co., 61
Broadway, New York 6, N. Y,

Mills,

ford Paper; and Purolator

American

Fort¬

tailed tudy contained in the

■// 650 S. Spring St

CG 99

State 6502

Allerton New York Corp^--Cir-

cular—Walter Murphy, Jr. & Co.,
49 Wall Street, New York 5. N. Y.

Copper Industry's Outlook—De¬

LOS ANGELES 14

135 La Salle St

Alabama

—White Tornga, Grand Rapids National
&
Co., Mississippi Valley Trust Bank Building, Grand Rapids 2
Mich., ;
Building, St, Louis 1, Mo.

DISTRIBUTION

American

Great

on:

Stocks-

Insurance

and

Indus-

(

long-term point of view

UNDERWRITERS

CHICAGO 3

memorandum

bulletin—Doyle, O'Connor & Co.,
Inc., 135 South La Salle Street,

late memoranda

are

Realization

Utilities

land

Salle

Hardware; Douglas Shoe; TACA
v

Comparative figures, and a memo¬
randum on the market from the

For

SECONDARY

ing, Chicago 4, 111.
'

Bank

Middle West

Also

Corporation; Expreso Aereo InterAmericano,
S.
A.;
Inland Air
Lines,
Inc.;
Mid-Continent Air
Lines, Inc.; and Taca Airways, S.
A.—Troster, Gurrie & Summers,
74 Trinity Place,
New York 4,
"N. Y.

Wholesale Distributors

available

Midland

Corp.—Circulars—

Chicago

; Dayton/ Malleable
Iron Co.—
Study of outlook and speculative
possibilities for appreciation for
this company—Ward & Co., 120
Broadway, New York 5, N. Y. Also

St., New York 4, N. Y.
try Trends.

Company—Report—
Co., 209 South La /

and

Industry—Study of pros¬
pects—H. Hentz & Co., 60 Beaver

Aviation, Inc.; American Ex¬
port
Airlines, Inc.;
Chicago &
Southern Air Lines, Inc.; Contin¬
ental Air Lines, Inc.; Delta Air

Utilities

Street, Chicago 4. 111.

pleased
following literature: '

Craft

Inc.; All Amer¬

Gas

Hicks & Price, 231 South La

Transition Prospects, of the Air-

— Pamphlet
outlook for

ican

CHICAGO
Tel. Randolph 6960

the

Alaska Air Lines,

/Established 1922

120 South La

The

'
Air

Consolidated

It is understood that the firms mentioned will be

Magnavox
Cruttenden

Salle Street, Chicago 4, 111.

Recommendations and Literature

Central Electric & Gas

'/■ '•

land Cement.

So. La

Salle

Telephone State 8711

New York

Philadelphia

Street, Chicago 3

Teletype CG 273

Pittsburgh

Minneapolis

Public Interest Transcendent Factor in

Settlement of

i Ames, Emerich & Go.

Labor-Management Disputes

'CHICAGO, ILL.
•erich &

By HON* THOMAS E. DEWEY*

i yyt '"iUy:•

Governor of New

y:y

York1""'-;:.^
Leaders in

Wednesday, Nov. 14.
in

Will
That a

at Ithaca

Develop Leaders That Will Aid in Solving Future Ecohdrttic ^
^
flira 4'Ilrt
f^IaHoxisKi|»'HlVltist^: Tklkb I
Place of Force and That Zeblots or Dogma Must Give Way to Sound Public
Opinion
•

are

Better Infotthation

here to launch the New York

The

best

School of

Industrial jand^

jiew

school

day$ as a nation was a walkout
house; carpenters who quit
work in -1791 to fighf for a 10hour day.
We are all familiar

that

none

with

of;

thing of all

!;■■■

this

about

lis
as

cure-all

for every one
of

.bles.

are

pioneering
.a

tions.;;
lems

Thomas

yesterday;

Dewey

•

they will be even more important
tomorrow. Ten years

founded,

was

for

after this na¬
in 1786, the

its

wel¬

in' Philadelphia

struck

The biggest strike

the

played

St.

stoves made

early

our

market.

same

Stoves made in Albany were dis¬

our

localities

Today the newspapers are full of
.reports
of
strikes
to
increase
-wages.

years

transportation system
grew, it brought competition be¬
tween the products of different

minimum wage of $6 a week.

labor

but

that

later, in 1881
therew&s founded the modern,
indigenously ^American i; form of
unionism we know as the^ Amer¬
ican Federation oi Labor.

were

printers

failed

them

gaining. Four

import ant

tion

strikes

from

fare could > only be protected by
organization and collective bar¬

labor

.relations

between

Louis

right beside

indifferent to

The

Detroit.

bany stove molder could

\*An address by Governor Dewey
.at Convocation of the New York

the

cities.

labor

scale

wage

costs

Al¬

longer

fellow* craftsmen in

his

and

the

clashes

management

company

Borland

and,

Memorandum

the

moving to the second
the company will continue

long

established

business

its traditional address

fV
Officers

KITCHEN & CO,

La Salle

135 South La Salle Street

;

Chicago 3, III.

Ames, Emerich &
Co.,
Inc.,
are:
Huntington; B.
Henry, President;.: James J. ;McNully, Donald E. Nichols and Ores
E. Zehr, Vice-Presidents, and Al¬
bert Cahri,' Secretary and Treas;

urer;'A;;-;?-

Tel. STAte 4950

v| WE ARE ACTIVE IN
#. Galvm Mfg. Co^».

Morris Nelson With

vSC"f" Central Soya
Des Moines

Detroit

would

Albany scales,
be. no market for

„

Security Dealers Discuss Problems

in-|

ierruptiori of work.
tion -focuses

collective
strikes

Public

those

atten-;
where

cases

bargaining

.result.

fails

Peaceful

and

settle-;

American Util. Service

Arkansas Western Gas

tions

are

foMdla

that labor

sociated with them in their Cor-,
Securities
Department.

(Special to The Financial

wholly

wipe

does anyone

out disputes. Nor
who values our w&y

continuing'

effort by both labor and manage¬
ment to advance their own inter¬
BUt the old rule of the tooth

ests.

and clgw |s put of date und should

end*

come to

Our

labor

)

was

with

bare

that

fists,

stones.

racketeers

into

had to

clubs,
inevit¬

was

become

Air

(Special to The Financial

CHICAGO,
has

Torrey

Kebbon,

Active

Chronicle)

McCormick

•corporations, the officers and heads' of trading department^ aggre¬
gated 170.
•
1
.
"• '
\
,
■
I
.

*fc.

of F. H. Roller &

important problems were dis¬
cussed.
Various court decisions
ous

assisted by

.affecting methods of trading overthe-counter Were explained. Some

'veryiiiie dinner^ was; servbd iii
the
Astor
Gallery of the same
was

ous

Interstate Aircraft

con¬

that

conceded

that

consensus

was

>•,.

%■■'$

:■

:'■

Teletype CG

•

V.-

;v&j.

i£

...

-V--.

A.CALIXN»®COMEANY

.-'v-''

Copies available

upon

gill CHICAGO||i|}|||i|||l|;
NEW

YORK*

•' MILWAUKEE

BOSTON

•

MINNEAPOLIS'

Guenther Law

131 Cedar Street

New York 6, N.Y*

Telephone COrtlandt 7-5060

Boston

Chicago Philadelphia San Francisco

•

Macfadden Publications

CONTINUOUS INTEREST IN;
Koehring Co.

SECURITIES

:y'-i

National

Tool

Central Paper Co., Com.

Northern

Paper Mills Co.

Compo Shoe Machinery Corp.;

Hamilton

Paper Co.

i\ i

Co.

All Wisconsin Issues

Mfg. Co. J,

rlOLLEY, DAYTON & GERNON
Member—Chicago

&®iwa
r;

225 EAST

MASON ST.

105

MILWAUKEE

PHONES—Daly

5392

Chicago:

State 0933

Teletype MI

488

Stock

Exchange /

So. La Salle St., Chicago 3, III.
Central

262
Offices in

(2), WIS.
Eau

Teletype: CG 1200

Froedtert Grain & Malt. Co.

INCORPORATED

STREET

-■••••

Gisholt Machine

Wisconsin Electric Power Co.

CHICAGO 3, ILLINOIS

:"v

Standard Silica Co.

■

Nekoosa-Edwards

DOYLE, O'CONNOR & CO.

Prepared—Conference Invited

OMAJeU

James Manufacturing Co.

Telephone: Dearborn 6161

Branches

Tv,

request

135 SOUTH LA SALLE

Its

Incorporated

^.^-..Incorporated

MIDLAND UTILITIES COMMON

Plans

Albert frank

'hV:

MIDLAND REALIZATION
and

All

vcv-:-

v
-

C Phone State 0101

'361

•FINANCIAL

THE

South La Salle Street

revised bulletin

j-\}.• !r*■

; v';-'

request

ADVERTISING

accomplished

.Mr'.'

prepared

Street.

-^xyxy-: y
.

Salle

BUY VICTORY BONDS

'Of-its kind.

'-y':':

John NuveOn & Co., 135 South La

circular

Let^s Finish Ours

Dinner-Meeting of the As¬

"v
-y

Common

^Recent

Th^y Finished Their Job

opinion

f-■*'•••• *v'y'. *•

"referring .in a humor¬
various individuals

tferbert Singer of Luckhurst & sociation for the membership and
ttie industry, as a whole 'than at
•7Company
John J. O'Kane, Jr., of John J. any other previously held affair

Walter

Chicago 4, Illinois

We have

—

231

entitled to much

are

good

at this

&C6.

ILL.

Engineering Corp.

Sundling is again associated with

way

ft is the

ADAMS & CO.

present.

J. Babe &

Babe of
Co., Chairman -

Fred J.

generally

was

'manner of

sisted of the following:

•

Common

Co., Inc.

as most noteworthy, and that was
this,
that there
would
be
nc
speeches incorporating "shop talk"
from the Dais.
Instead, the Com¬
mittee "engaged
the services of
"Doc"
William Stanley Sims, i
humorist, well-known for his out¬
standing
wit, especially in
his

| " After this business meeting a

2361),

on page

v.,

Mich. Steel Casting Co.

past was with Lawrence

CHICAGO,

and

nobody else created it. We were
entirely lacking in the kind of

Common

.V"1'-1''-""

^Afrny,

(Special-to The Financtal Chronicle)

purposes

needed

One thing they did which
though an innovation, was hailed

-the Board.

'Committee

own

was

praise.

-reports submitted by members of

Dinner

their

union

R. Hoe & Co., Inc.

Alfred E. Loyd, Exec¬

which they

providing for. the election of the

which

foi*
a

this Committee did a real job for

'dominating committee by the (full
^membership, were adopted. And
-the members were apprised of the
Association's
activities
through

the menu of
*^ivefsally praised.

where

create

& G. Brooke Iron Co.

utive Secretary of the Association.

Important changes in the consti¬
tution, -including an amendment

yhoteL

unions

able

were

•

;Con»^on^'

R.
of

unions in days gone

many

They

^Continued

FrankH.

Association vari¬

Ibership of the

...

closed meeting of the mem-<$>

by.-

York

•

& Co., 231
Mr. Torrey,

who has been in the U. S.

the

New

Trading Markets

Force

ILL. —George
joined, the staff

South La Salle Street.

Stern & Co.

way

CG 1234-5

„•

wire

associated

Canadian

Bldg., Chicago 3

Direct

Chronicle)

since 1941.:v"i" :;!i

characters

found

Randolph 8800

Securities Company

their

undesirable

and

;

matter which

settled

the ..Royal

HICKEY& CO.

Chicago,
134
South
La
Salle
Street. Mr; Paulson has been with

stilll

movement'

young. It is only a very few years
since the right to organize a labor

union

has

with First

ILL.'—Alden ;• J.

CHICAGO,
Paulson

;

:—

Illinois Personnels

democratic, framework which will

of life Wish tb tend" the

.'rnmm ★

Field

noi

be devised within* the:

can

V.'

;

own

rela¬

static and that

never

as¬

boration

derline the fact

Army Air Corps, has become

He was formerly head of his
big news* Re¬
investment firm in Chicago.
current ^outbreaks of strikes un-}

able

1945, in the Perroquet Suite of the Waldorf-Astoria Hotel. The at¬
tendance, confined to partners of member firms, or in the case of

I The

for the past several years in the

ments do not make

sticks and

One of the most important gatherings ever held by the New
^fork Security Dealers Association took place on Wednesday, Nov. 7,

Rys. 5s

Long Bell Lumber

Michigan Chemical

.1,

Benjamin Lewis A Co*

Tele. CG 573

issues.

same

Request

^Building since 1915

floor,
its

Established

has tenanted

greater and greater mag¬
Year in and year out, the,
on the labor front - were'

fought V ovfer

other

too far below

^School of Industrial and Labor Re-i were
Jations, Ithaca, N. Y. Nov. 12,1945. there

N. Y.

and

grew

labor

were of

battles

These

industry grew, the union

nitude.

learned

rela¬

°U These prob¬
•

So,

1911, this

the

vital field of

Jhuman

movement

•

trail-blazing
•effort. We

jobs

Albany stove molders.

for

current

CORP.

Wages, hours, conditions of em¬
led to our greatest strike up to ployment—-these were the issues'
that time. There -were pitched bat¬ In" colonial
CHICAGO,
ILL. — Benjamin
"times; they^ remain the:
tles bettvCCn workers and militia, issues, today.*
Lewis & Co., investment dealers,
Field
railroad yards set-afire, and scores
Building,
announce
that
In most cases these issues*
arej
killed in riots.
Morris J. Nelson, who has been
settled peacefully without -an

trou-

our

called

strikes

Albany-made stoves and

shorten the workday.
In 1877, a 10% pay reduction on
the three railroads running west

regards, it

Regarding Problems of Both Labor and Management,

Uabor Relations during the most Serious period of labor difficulty in
OUr history.
?! <?;
»

of the older

floor in the Borland Building, 105
South
La
Salle
St.,
beginning

Past

Relations, States That

the Newly Established Statier School bf Industrial arid Liibbr Relations

CLIFFS

Ames, Em-

—

one

banking firms of the
city, will occupy the entire bank

Governor Dewey* Pointing Out That Both Labor and? industrial
Were Deficient in Training for ]Establish:ng Sound Industrial

Based

Co., Inc.,

.investment

Claire

Madison

0780

Wisconsin

Fond du Lac
-

La Crosse

Wausau

■

MacFarlane

MichiganBievities

paid in January, 1946, to stock¬
holders of the First National Bank of Detroit, who paid an assessment
on their stock when the bank closed in 1933, it is announced by W. T.
Zurschmiede, President of the First Liquidating Corp., Detroit.
The payment will approximate $4,750,000, and will go to about
8,000 persons. - Zurschmiede indicated that a further substantial pay¬
ment may be expected within 18 ^
1945, high in October with 649,months as a result of the liquida¬
refund of 25% will be

An initial

proposed

both

mitted at

prioritty, the corpora¬

sharehold¬
companies on Feb. 20,

meetings of

of both

ers

I amount of $8,514,750.
i Having discharged all obliga¬

the

of Detroit,
agreed upon by directors of
corporations and will be sub¬

was

both

Corp.,

XJdylite

of
$17,886,663; notes totalling $3,572,378;
and
participating
claimholders certificates in the

tions having

A,.-;

the

merger
of
Parker-Wolverine Co. with
A

Corp. loan

struction Finance

and 343,516

...A-.:-;;AAAAAA;,

paid off a Recon¬

has

then

compared to

385,054 for Sept. 1945
for Oct. 1944.

liquidating
corporation was formed in Dec.
1942, it took over the remaining assets of the bank.
Since
first

the

When

shares traded as

931

not yet sold.

tion of assets

1946, according to announcement
by L. K. Lindahl, President of the
Udylite Corp.
"The activities of these com¬

position to make
{•refunds to stockholders who paid panies, while not competitive, are
Atheir assessment.
compatible and closely related in
*
**
is now in

tion

metal

the
i

Stock
according to John O.
the Detroit

Trading on

f Exchange,

appointed Ex-;

-MacFarlane, newly

lecutive Vice-President,

hit a new

finishing field," stated
"Udylite operates

Lindahl.

Mr.

plants and Parker-Wolver¬
ine operates five plants, all in
Detroit. Integration of these plants
will mean better service to indus¬
three

Appointed

Connecticut Brevities

by Detroit Exchange

For the first nine months ended

ford Carpet Co.,

MICH. — Appoint¬
ment of John O. MacFarlane as
Executive Vice-President of the
Detroit Stock
Exchange is an¬
DETROIT,

'
Udylite Corp. are producers
of all types of metal finishing
equipment and supplies. ParkerWolverine Co. is equipped to pro¬
duce finished fabricated parts and
render metal finishing service.

try."

The

MICHIGAN
UNLISTEDS

The proposed merger provides
for issuance
of 21/4 shares of
Udylite

Wm.C.Roney&Co.
Members New York

;

BUILDING

812 BUHL

DETROIT 26,
Teletype

DE 167

135,931 shares of outstanding
Parker-Wolverine stock.

Stock Exchange

Charles H. Awkerman,

MICH.

Phone

;
r

ident,

Cherry 6700

President and Treasurer

and Hor¬

Secretary, along
with Willard M. Cornelius and
Luis E. Eckelmann are the di¬
rectors of the XJdylite Corp., and
will continue as officers and di¬
rectors of the continuing corpo¬
ace

Charles A. Parcells & Co.
Established 1919
Member* Detroit Stock

Clyde

Chairman

Lindahl, Pres¬
Reeme, Vice-

of the board, L. K.

Exchange

S. Maynard,

This is equivalent to earnings of $22.63 on the 6% pre¬

$597,567.

v
For the corresponding period of 1944, net income was $713,118.
Earnings on the preferred stock were $27.01 per share while $1.90
Charles A. Parcells,
was earned on tile
snarei.^
President, on behalf of the Board
ing Company showed
sales of
of common then outstanding.
of Governors.
A native of Mich¬
Net sales of war. products for $10,991,758 for the quarter ended
igan and a graduate from Olivet
the first nine months of 1943 ag¬ Sept. 30, 1945. As of that date,
College, Mr. MacFarlane comes to
unfilled
war
orders aggregated
the Exchange with a broad back¬ gregated $20,613,623 which com¬
$17,365,899.
pares with $20,564,459 for the cor¬
ground in the field, of finance,
v"'VA'*responding period of 1944.
Sales
sales and public contact.
An Electric Boat Company Of
of civilian goods for these same

nounced

graduating from college
periods were $7,138,577 and $8,Mr. MacFarlane joined
578,493 respectively;
department of the Union
As of Sept. 29, the balance sheet
Trust "Company, Detroit, In 1933,
showed net current assets of $18,he became associated
with the
525,599 against $17,989,122 a year
newly formed Andrew L. Malott
ago. The ratio of current assets to
Company, and assisted in an execr
current liabilities was 9.6 to 1.
utive capacity with the liquidation
Frank H. Deknatel, Treasurer
of the Metropolitan Life Insurance
and
Vice-President,
who
has
Company properties in the De¬
been
associated with the com¬
After

troit area,

serving

sales man¬

its predecessors for more
years, will retire as of
Dec. 31, but will continue on the
Board.. Mark Dunnel 1, the present
Purchase Section,
Controller, will succeed him as
pany or
than 52

1938 to 1942. Since that
time he has been connected with
the War Department, where he
ager from

Chief

was

supervising the procurement of all
Treasurer.
tanks and combat vehicles in the

639 Penobscot Building

DETROIT 26, MICH.
Telephone

Teletype

Randolph 562S

DE 206

]

101,000 square feet.
warehouses

Three branch
and

key

located

are

industrial centers.

Electromaster, Inc.

Both

and
listed on the

Parker-Wolverine

Udylite stocks are

Shelter

occupy

maintained

are

offices

sales

now

Detroit Stock Exchange and

Udylite stock

Manufacturing Corp.

the

desiring to list their
will
act as contact officer between the
Detroit Exchange, the SEC and
the Michigan Corporation and Se¬
to industries

savings per

the

1944,

paid

;the

would

the New York;

Net income for the third quar¬

in the Buhl Building.

Trailing Mgr. A
For Carr, Gbapln & Co.

Fisher

DETROIT, MICH.—Carr, Chapin & Co., members of the Detroit
Stock
Exchange, announce that
Don Fisher has become associated

their

department, in their of¬
Penobscot
Building^

& Dolphyn
Members Detroit Stock Exchange

prior to the war,

TRADING MARKETS

■'

Request'1

Mr.

and '

L. A. Darling

DeYoung, Larson & Tornga
GRAND RAPIDS, MICH.

Phone 98261

GR 84

Superior Tool 7-

Fisher

Shatterproof A
•

,
.

man

the

■

Common

Inquiries Invited

Detroit

Stock

DETROIT 26, MICH.
b

Teletype DE 75
Bay City

New York

months

service

the

North

European theatre of

African and

assume

command of

the

Michigan Army Recruiting
District, with offices in Detroit.
Cole
was
with
Merrill
Lynch,
Pierce, Fenner & Beane
entering the service.

:>-i.

\VSi•

/'•

Senior

Williams,
of

Curtiss-Wright

Corporation, has returned to the
presidency of the Russell Manu¬
facturing
Company of Middletown,

'r V*

International Silver Company
showed net profit of
three

the

$284,664 for
Sept.

ended

months

30, 1945, compared with $474,860
for
the
corresponding period
last year.

Earnings for the nine months*

ended
Sept. 30, 1945;
$780,869 against $1,126,999
for the similar period last year.
On a per share basis, earnings

period
were

$5.68

were

$9.48 respect¬

and

ively#

Address onLatin-Amer.
Oil Situation
mer

adviser

Today

Haussmann, for¬

Frederick

Dr.

oil to the Vene¬

zuelan Government, will speak on

Oil

American

"Latin

and

weekly

Round

America

Tables
New

the

Latin

School

Lansing
Muskegon

white, noble & co.
Members

Detroit

GRAND

MICH.
Phone 94336

Stock

;

from

oil companies

several

•

\M?.-

before

ViVVS

M. W. Sullivan Joins

C'ii'Vr::

Florida Securities Co.
ST.

Michael

PETERSBURG,
FLA. —
W. Sullivan has joined

the retail sales department of the
Florida Securities Co., Florida Na¬
tional
van

Bank Building.

Mr. Sulli¬

has been serving as a captain

in the U. S. Army

Air Corps for

the past several years.

A'.-'.'.;:.

va-.

A change of telephone number

on our direct new york-new haven wire

.TO GAnal 6-3662

w:
,

Securities j f

7-3191

EFFECTIVE NOVEMBER 13,

1945//^ '?

BOwling Green 9-2211

; ;

Members New York Stock Exchange

209 Church Street,

BLDG.

Teletype GR 184

CHAS. W. SCR ANTON & GO.

New York:

Exchange

RAPIDS

TRUST

Hartford

Bell

System Teletype; HF 365

for

Research; 66 West 12th
Street, on Thursday evening, Nov.
15, at 8:30.
Following the talk the meeting
will be thrown open for general
discussion, in which representa¬

Social

* Connecticut

the

Revolution in Venezuela," at the

^Announcing
-

Hartford and •>-• a;
;

bonds carrying

and other Latin American author¬

well-known in Detroit
banking circles,: has
to
Detroit
after
3(1

Curb!

Primary Markets in

Cole,

and Boston Stock j;
v*A•AAV Exchanges
?
Members

$70,000 Public

sold

Britain

Exchange

1051 Penobscot Building

Battle Creek

Com¬

•

Moreland & Co.

Na¬

Exchange

-y..v

Hill Diesel

Member

very

AAoS.<■

Associate
—

returned

and Chair-;

Entertainment

;•;

24, 1945, the City Of

ities will take part.

Members New York

Tyler Fixture Corp.

•

been

Oct.

;1'V.

DETROIT, MICH.—Col. Walter

Tifft Brothers a

Preferred

Palace Corp.

formerly

;

b v;'; r/j

♦

tives

ed. W. C. Cole Returns

investment

materials,

tional Committeeman

mittee;

Lansing Stamping a;77

Trenton Valley

war

having

♦

SEC report indicates
that Yale & Towne Manufactur¬
recent

Michigan; Security; Traders operations to

Association

Nat'I Elec. Weld.

A|;

engaged in the

active in the affairs of the Detroit

/j?

Industrial Brownhoist

Circular

contracts ag-f

war

gregated $19,426,333#

VA"

employed To Detroit

was

production of
•

Co. of, Detroit;

rious organizations

♦rV4''AV;'V;'V: -V

by the War Department and va¬

Tele. DE 507

•'jjl

with

associated
;

During the war he was

& Socket Co.

Buhl Bldg., Detroit 26

Cadillac 5752

Simonds

Baker,

American Forging

•

Net profit for Underwood Cor¬
poration for, the first nine months
of this year was $1,526,535 against
$1,531,352 for the similar period
last year. On a per share basis,
results were $2.08 and $2.09 re¬
spectively.
The company has a
substantial backlog of orders.

Mr.. Fisher, was

Mercier, McDowell

•'

2117

Detroit, Mich.
For nine years,

$9,090,247

with

has recently been

Reports furnished on request

while unfilled

ended

quarter
were

Vice-President

$12,573,763 or $4.37 a share
for the corresponding period last
DETROIT, MICH.—N. Bradley
Earnings on the $5 pre¬
Higbie, Jr., has resumed his in¬ year.
ferred
stock
were
$37.23
per
vestment business under the firm
share and $48.57 respectively.
name of Alison & Co. with offices

trading

the

1945

George;

Corporation for the nine months
ended Sept. 30, 1945 was $9,636,330 or $3.26 a share compared

Business in Detroit

fices

30,

Sept.

stock

common

Net income for United Aircraft

manager

for

Sales

approximate 271.
*

Alison & Go. Resumes

price of 101.258
a coupon rate
of 1%.
The; issue was not reoffered to the public.

Power

Commission.

them

Inv;• the/ re-;
employment
and
addition
of
employees, bringing the total to
a figure in
excess of 4,000. a ^

for

stocks on the Exchange, and

with

undertak-

new

of New York at a

Among the large utility com¬
will benefit from the

laboratory,

This

resulted

Company. Based on
Excess Profits Tax of $524,000

the

Mr. Higbie
ter of 1945 was $2,678,380 which
associated* with
the McAleer Manufacturing Co. compares with $4,123,650 for the
similar quarter last year.
]■
Prior thereto he was head of Ali¬
ration.
All figures for 1945 are subject
son & Co., of which he had been
Parker-Wolverine Co., organ¬
to renegotiation.
a member since 193L
ized in 1934, now operates five
Shipments for the September
Officers of Alison & Co. are N.
Detroit plants occupying a total
Bradley Higbie, Jr.,
President; quarter this year were $80,369,of 235,000 square feet of produc¬
593 against $161,084,331 for the
H. C. Higbie, Vice-President and
tion space;
^
third quarter of 1944.
The esti¬
Treasurer, and M. H. Paul, Sec¬
mated value of the unfilled por¬
The Udylite Corp. originated in
retary.
1919 as the Udylite Process Co.. of
tion of ;War contracts held by the
Kokomo, Indiana. The three De¬
company and its subsidiaries as of
troit plants, including offices and;
Sept. 30;? 1945 was $125,403,601. y
research

building.

Ing» has

its Tax is the Connecticut Light

panies that

Exchange,
Mr. MacFarlane will be available

curities

reconversion proj¬

as a

addition to its submarine

ect in

elimination of the Excess Prof¬

A^mong his duties as Executive
of

steel

Improvement Bonds, Second Is¬
sue, dated Nov. 1, 1945 due $14,000 annually Nov. 1, 1947 to 1951
inclusive, to Barr Bros. & Co., Inc.

Vice-President

business

that

announced

has

has entered the structural

New
*

■

Detroit district.

Michigan Markets

Groton

1924,

the trust

of the

each

for

stock

Sept. 30, 1945, the Bigelow-SanInc., showed net profit, after depreciation and taxes,

ferred stock and $1.55 on the 308,609 shares of common,

;

Call Us On Any

Thursday, November 15, 1945

CHRONICLE

& FINANCIAL

THE COMMERCIAL

2332

/;-::S\7;V V.

;W A.

■i:' "

New Haven 7, Conn, v

Volume 162

Number 4438

•

THE COMMERCIAL

FINANCIAL CHRONICLE

Missouri Brevities

V 4

..gv;

By JAMES A. FARLEY*'

-y.;.

-g

with

Chairman of the Board, Coca-Cola Export Corp.

Farley Expresses Confidence that Our Government Is Relinquishing
Its Controls Over Foreign Commerce to Private Business.
Asserts That
We Must Give Emergency Reconstruction Help to Foreign Countries for

^
of

tional

Calls for Immediate Foundation

postwar
We

re¬

begin¬
to
lay

are

ning
the

founda¬

and

en¬

peace

advanc¬

ing prosperity.
In

connection

with

this

tran sition

from

war

peace,

there is

im¬

portant
of
James

icy

A. Farley

topic

public pol¬
confrontthan

the

rebuilding

trade.

of :

And there is

foreign

our
no

ap¬

MO.—The

LOUIS,

September

Victory

reserve

tortions

has

merce,

which

sons

forget.

than

international

taught

les¬

many

Rand

governments
the

basis

the decisions

and

businessmen

which

of
as

will

trade

fed conducted in the future.

! American

businessmen

know

they want given to
that question, and I think it is
perfectly clear thaU the United
States Government agrees with
answer

them.

not

speeches when I

many

and

many

other

tices.

The

Financial

Fourth

Louis,

Street, St.
/

unusual" prac¬

ing those
have

been

Deposit

Borders

for

Insurance

has

Corp.,
in

served

fast

allow

its

it.

the

Bank

Ray Wibbing Is With

our

Goldman, Sachs & Go.

Oct.

count

its

doing everything it
rapidly to

ST.

Trade

Foreign

the

LOUIS, MO.—Ray H. Wib¬

office.
half

feeport

For the

on page

Stocks

*Mid-Continent Airlines
*Trenton

past three and

War

Price

*"■

Distillers

:]:Ampco Metal, Inc.

^Pickering Lumber Corp.

Rationing

and

Valley

Mr. Wibbing has been

years

the

Net income

was

of the

Board

30,Missdita
of $1,660,494 coni£>hred

nues

activity he

with
$170,-

securities

OPA.

was

Prior

to, this

Majestic Radio & ^Television
Corp.

charge of the

division of the General

Luscombe Airplane Corp.

American Life Insurance Co.

Information

*Statistical

& Co., Inc., 418

ATTRACTIVE
Berkshire Fine

Waeckerle, Worong Rejoin
City Nat'l Bank & Trust

„

Request

'i'* V;•'

CITY, Mo.—Lt. Har¬
Waeckerle
and
Lt.
Merrill

old

MERCHANDISE

both

National Oats
Old Ben

Trust
18th and Grand Ave-

nbe.

St. Louis Stock Exchange

Members

Mississippi Valley Trust Bldg.

Preferred and Common
Moore-McCormack Lines, Preferred and Common

of the City National Bank &

Company,

WHITE & COMPANY

Chicago &. Southern Air Lines
Collins Radio, Preferred and Common

"'> Kansas City Public Service,

the

recently

Spinning, $5.00 Preferred and Common

' Chicago, Wilmington & Franklin Coal

KANSAS

ST. LOUIS

Teletype—SL 477

Bell System

„

1, MO.-:

Coal, Common

Punta Alegre Sugar

Match

Universal

'Descriptions

Request

arc

interested in

Mississippi Valley

SCHEFCK. FICHTEH COMPANY
if,

Stix&Go.
*

t,'£ \

V*'r'

J 4:

"g'.

••

Bell Teletype

St.

St. Louis,

SL 456

Mo.

Garfield 0225

Mo.

Louis

Trust Co.

•

Landreth Building

INVESTMENT SECURITIES

g ' L. D. 123

soo ouve^sTRceT

i
..v,

,*>..

•:

,tv

,->J

V■

jvf' i*

•

,.\

A itiv

v';v

"g-

},v

Metropolitan St. Louis

•

'Ai\

COMPANY

St. Louis 1,Mo#
'»%ki'm'"

York City Nov. 12,19451'
*
this National Foreign Trade Con¬
vention.

^^'^(Confihued

•

Street.

Locust

National

Convention, New

;j *Stromberg-Carlson Co. J i

Sachs & Co. in their St. Louis

man,

hionths ended Sept.

For the nine

$1,594,228.

MO.—John

LOUIS,

Ilerrick, Waddell

•

* address

Barrett has been added to staff of

;*An

•'*'

"•

■

447, equal to 94 cents a share

can

turn trade back

Markets

Insurance

bing has joined the staff of Gold¬

sales amounted to $42,928,639
as compared with $35,773,924 for
the same period last year.
This is
an increase of $7,154,715, or 20%.

own

&
1

■

ST.

includ¬

commitments

far

Tel. Central 0838

the

exports and imports,
taken off,
lend-lease

Government Is concerned

can

examiner

(Special to Tug Financial ' Chronicle)

getting out of the importing busi¬
will

Broadway & Locust, St. Louis 1, Mo.

Primary

31,

has ended, and the Government is

ness

Stock Exchange and
Principal Exchanges

Teletype SL 84

Since V-J Day, many war¬

time controls of all sorts,

York

armed forces since 1940.

This

ten months ended

Office$

Members
New

liam A. Borders, a Vice-President.

23.13%.

For the

Wire

Providence

G. H. Walker & Co.

St. Louis has appointed Col. Wil¬

with $3,594,233 for Oc¬
tober, 1944, an increase of $831,-

351,

and

York

Other

Col.

October.

Direct Private

New

Appointment

Bank'& Trust Co.

Industrial

Formerly

Missouri Utilities

CITY, MO.—Clifford
M. Kidd is with Slay ton & Co., Ill
North

^ SECURITIES

has

bringing total cash

Industrial Bank

compares

Chronicle)

KANSAS

Morong,

neces¬
controls

Government

Dec.

com¬

Brothers

Army Signal Corps, have rejoined
the staff of the bond department

conditions made

;; Wartime

(Special

record

equipment.

$450,000.

month

ST. LOUIS

A cash

St. Louis Metropolitan. advisor of

that, but

what the Government has done.

sary

the

SINCE 1900

a
on

Frederick

relying

say

form

Mo.

The first great question about
foreign trade is whether it is go¬
ing to be managed by business¬
men
on
business principles,
or
conducted
or
closely controlled
by governments on government
principles.
what

will

and

Missouri Personnels

before both the value

abound

for

Broadway, New York City,
of Nov, 21st.

we are not likely soon
It has made clearer to

ever

Jfj

L. D. 240

dividends for the year to $1.75;

Stores,
Inc.,
operating a nation-wide system of
women's shoe stores, reports con¬
solidated net sales of $4,425,584

Pflugfelder will
acquire the New York Stock Ex¬
change membership of William

foreign, trade and the pitfalls

which

com¬

Edison

Pflugfelder

stock

Federal

To Form Own Firm
Frederick

been declared,

•

Pflugfelder & Co., with offices at

Trust

: '

Edison Brothers Sales

Frederick

Lindell

dividend of 50 cents payable Dec.

exceeded

propriate forum for: a thorough¬
going discussion of that topic than
private hands.
Things are not going so fast in
Trade is the lifeblood of business,
and, in the interdependent world
of toda.y, foreign trade is an in¬
dispensable part of the whole
stream of trade.
The war, with
its inescapable stoppages and dis¬

the

25% stock dividend to be voted

favorably, net income
in the 1945 period amounting to
$817,708 compared with $834,403,
both figures being before special

compared

sales

replacement

Teletype—SL 486

Stock Dividend

Co,. St. Louis, have authorized

$50,000 reserve for post-war con¬
tingencies including rehabilitation

assigned quota of $11,356,250. Ten days after the open¬

Drive,
40% of the quota.

Directors

accen¬

.Results for the nine months

BUILDING

ST. LOUIS 2, MO.

'■)

Lindell Trust

pared

LANDRETH

excess

pared with $165,489 in September,
1944, both figures ^being before

and

Peltasonjenenbaum Co.

profits
tax provision (exclusive of post¬
war credit)
amounted to $161,248
in the last period compared with
$133,908.
yV'-v. > :.••• '

statement

was

Federal

by stockholders Jan. 21.

with their

the

last year.

tuated by an increase of
$60,105
in operating expenses. Net income
for the month was $57,484 com¬

Louis dealers have "underwritten"

ing of

fect of this reduction

after allowing
for
dividends,
compared

common

preferred

Total operat¬

area.

ST. LOUIS

with $172,067, or 96 cents a share
in
the
corresponding period of

ing revenues for the month were
$2,032,004 compared with $2,097879, a decline of $65,875. The ef¬

Horning
of
Stifel,
Nicola us
&
Company, Inc., is Chairman of the
Investment Banking Division. St.
bonds,

earnings

tivities in this

devoting themselves to
insuring its success at the earliest
possible moment. Walter J. Creeley of Goldman, Sachs & Co. is
serving as Vice-Chairman of the
Metropolitan St. Louis War Fi¬
nance
Committee
and
Bert H.

the

New York

Exchanges.

of the St. Louis Public Service Co.
the cessation of war ac¬

men

$11,650,000

the period.

the

reflects

Loan Drive finds St. Louis invest¬
ment

tions^: of
during

ST.

during

listed

Qree|gy an(J HOmlllg
Head V-Loan Drive 11
'

branch

ended

St. Louis Public Service Report

•

construction.

months

n*ne

and St. Louis Stock

I am very happy to have this opportunity to speak on the subject
foreign trade. With the ending of the war, we are moving into the
ditficult, com-<£———
—
——■—
plex and baffling
era
of
>

offices

Stock

International Organization in the Field of Commerce.

of Illinois, small loan company

and

offices in 14 states, had
Sept. 30, 1945 amounting to
$725,116 or 47 cents per common share compared with
$710,734 or
45 cents per share in the
corresponding period of 1944.
Notes receiv¬
able as of Sept. 30 amounted to
$17,568,645 compared with $16,135,943.
The
company
opened six addi-<S>

Mr.

headquarters in St. Louis
^or

Former Postmaster General of the United States

Their Elimination of Trade Barriers.

American Investment Company

■

2333

"" /N?

Saint

Active Markets in

\ 718 Locust Street
t,

Members St. Louis Stock Exchange

ggggj ST.

||||

LOUIS

AND

2353)

Louis

Mo.

Central 8250

St. L. 499

D. 208

t *•

MIDDLE WESTERN SECURITIES
TRADING MARKETS:

Municipal jBondi

Commerce Trust Co.

Pickering Lumber Corp.

'■

Long-Bell Lumber Co.
t

Newhard, Cook & Co.
New

Bell Teletype

"! *

Strauss
New

.-•*** i

York

—

KC 472-3 /

Bros.

and

St.

Chicaaro'i

White

Company

i J

ri.

V '

Pledger

». **■*

ESTABLISHED

Louis

:'V'

■■■■■■

Member
St.

DISTRIBUTORS

and

Members

Teletype—SL
New

& Company

York

■*

Olive Street /

1, MISSOURI

SAINT LOUIS

;
;

■

Louis Stock Exchange

506

Exchange
New York Curb Exchange (Associate)
Exchange
Chicago Stock Exchange

152

1924

■

*'■

Stock

FOURTH & OLIVE STREETS

Bell

Los

St. Louis

ST. LOUIS

Phone—Harrison 6432

*v>'■'a"

York Stock

Avenue, Kansas City 6, Mo.

Private Wire Connections To:

■/■

v;-:'v

UNDERWRITERS

;

-'."as'-v

1016 Baltimore

lui

Corporate Securities — Bank Stocks
Exchange Issues

Western Lt. & Tel. Co.

Central Coal & Coke Corp.

-7-

St. Louis Stock

d. St.

Correspondent, Clark, Dodge & Co., 61

Louis 340,

341,

342

Teletype

—

SL 62

Wall Street

Angeles

..-v..-*

«-r'

)

ir...

rl».

Ol-tlli

* t

»'»

•

*' «

Thursday, November 15, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

BOSTON
The

SECURITIES TRADERS ASSOCIATION
Boston

Securities

Traders

Association

will

hold

their

Thanksgiving Party at the Boston Yacht CJu'p/Uowes Wharf, on. Nov.,
20, at.5:00 p. m. Admission is,$2 (payable at the door).. About 30 of
the Association's members have returned from the Service and will
be welcomed at

the party.

•

Committee; in. Charge of the Party are Jack Shea, Shea & Co.,

Chairman; Al. Moore, J. Arthur Warner & Co.; Sumner Wolley, Cof¬
fin &JE5urr, Inc.; Jim Galvin, F, L. Putnam & Co.; and Ed. Williams,
Hooper-iCimbaJl, Inc.. '
5

TWIN CITY BOND TRADERS CLUB
At the

meeting bf the Twin City Bond Traders Club in

October, the following were elected for the ensuing year;
President—William J. l-.au, Frank & Belden, Inc.
:
:

Yic^rPreaidentir^KeirmitB, Sorum, Allison-Williams Co.

(ftp

VICTORY
now

you

can

invest In

Specialists in

RAILROAD
SECURITIES
Selected

Situations

all

Times

Chicago, Milwaukee, St. Paul &

CUARAWTEEP RAILROAD STOCKS-BONDS

INCORPORATED
25 Broad Street

New York 4, N.

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

Pacific Railroad Co.

We will discount
inthe

profits and assume losses

"when

above

issued";

contracts.

SUTRO BROS. & CO
Members New York Stock Exchange

Portland & I

Telephone REctor 2-7340

Ogdensburg Ry
1st

KEYES FIBRE

Mtge. 4%s, 1953

Class

and

EXPRESO

f-::v

EAGLE

Common

AEREO

FIRE^flll

AIR CARGO TRANSPORT

Adams & Peck
63

Wall Street, New York 5

BOwling Green 9-8120
Boston

Tele. NY 1-724

Philadelphia

1. h. rothchild &

co,

Member of National Association
■

Hartford

120 BROADWAY, NEW YORK 5, N. Y.

of Securities Dealers, Inc.

wall

street

HAnover 2-9072

Volume

162

Number 4438/

the commercial & financial
chronicle

Waterproof clothing- thanks

to chemicals—will

mean, new

Molded furniture-^through chemicals. Jobs for workers!

jobs.

Unsellable ShOBS-rmade possible with chemicals. More Jobs!

Goodbye tO mos(|UitOe$-with chemicals. Still morejobs!

Making Postwar lobs - Out of Chemicals
that Victory has
W"Hat will the employment situa- stay will let you. stroll in the rain and opportunities all' of for the jobs and
that perfectly dry. Chemically treated operation their plans want,
tion

—

now

been won? Will there be

enough jobs for

returning soldiers, sailors,
No
do

one can

scores

new
,

exactly. But this
management,

new

products,

Think of scuffproof

>•<

'^ "V

r'j r,< 5

-i

| thousands by creating

won't rot

new ventures;

Take the chemical
will it continue

1 !

new

11111111 "JIIJ '""'"i" 1 f1

have
will

mean

little

Imagine

■:t,y

makes

new

products that

than dreams before the war.

shoes. Of shrink-

All these things—and

A Report on
I'?

•

■...

the Prospects
^

•

7.r•'

■

-v':'

| for Postwar Employment 4
in: the Industries Servedby

and demand for goods

V*"

jobs.

industry is only one of

a^ong the Chesapeake and Ohio,
*he Nickel, Plate, and the Pere Mar1': ^uette that have Planned for P°stwar
;

:s P ?• Cleveland

employment*...
,

And,

now

that the

CHESAPEAKE AND OHIO RAILWAY

|
war

over,

'}NICKEL
PLATE
the

home rid of moths and :f chemical industry and other industries

mosquitoes. Specially treated clothing

rust.

The chemical,

of America's basic

thousands of new.jobs in the

your

forichemicals

■

f.M

demands, igj

future—products^many of which were
~

which

industry. Not only

as one

come scores

i many others—will increase the demand

job-makers, but from chemical research *
"•

ebony,

proof woolens. Of window screens that

services, that will make jobs by the

scratches arid blemishes will not show.

workers?

of industries, has long since laid

plans for

<** r

say,

business

know:

war

pine furniture, hard

throughout the country will put into

PERE

ROAD

MARQUETTE RAILWAY

Thursday, November 15, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2336

price

value

ill In Public Utilities

E. A. VAN DEUSEN

Chase

National

and

Bank Stocks

—

staging an interesting race

City have been

this point. On Dec. 30, 1944 Chase
was
being bid 45 against City's 44. On
Nov. 8, 1945, however, Chase was four points behind City, with a
bid of 46 compared with City's 50.
this year, with City ahead at
ahead of City by one point,

race

Since the first of the year the
as follows:—

has been

monthly record of the two stocks
v

(Bid>
Dec.

•

1944

30,

January,

1945

April,

1945

May,
June,

1945
1945

July,

1945

August,

43%

—

— —

1945

Nov.

41%

________

1945

Chase

42%

X.X- ..,'•44

/■■■■'•

44%
'

41%

46%

_____

44%

.,47%

40%

41%

44%
50

month'City

ahead of City until April 1945, in which

was

look the lead and has held it since,

42%

■

49%

1945___

40%

48%

40%

X:.

:X >44%

43%

;X;>: ;XX:

—_

38%

39%,

•

39%

42%

45%

....

September, !1945
October,

»:X:- X-'v.-X

43 V2

—

39%

v'X'

■'

43%
41%

X 39%

41%

___

44
■

41%

42%

...

41%

xXsXX;:.

44'/s

1945

Low

High

—

1945

February,
March,

;-;Low;:>X

High

increasing it from

fraction of a

point to four points."

Current market rations of the two stocks compare as follows:—
National City

..yy-jy'-y;,,; Chase
Market price Nov. 8, 1945—
46 Bid-48 Asked
Book-value Sept. 30, 1945
——X—
$40.69
i'';/

Book
s

value

Annual

Net

yield

earnings,

operating

Earning yield
Earning assets per

—.0:.':'.
share_;_—__;L_.—'

It is

$11.95

1942, which

Dividend

of the two

BANK

Sept. 30,

share
—*

rate

share.,:
Earning assets per share...
Book

value

Government

$1.81

per

1.40

$1.40
40.69

4,835,219,000
284,800,000

:'7

4,620,618,000

*';

Book
y

22.6

301,128,000

value

Earning
U.

<♦>

Deposits

Nominating Committee
SHURON

For NASD Dial. No. 13:

OPTICAL

The following nominating com¬
mittee

has

announced

Bought—Sold—Quoted

been

appointed, it is
by George N. Lindsay,

Chairman of District 13 Commit¬
tee of the National Association of

Securities Dealers, Inc.:

Walter

Sachs
Members New
and

other

WALL ST.

Goldman,

Blaine,

Dunne,

' i,

Co., Chairman; Richard
F. Abbe, Van Tuyl &
Abbe; Frank

York Stork Exchange

leading exchanges

Dunne

Egly,

Co.;
Reed &

Henry

shows

latter

the same period in
banks compare as

versus

1944, the two
follows:—

Chase
9

months

Cltv

$1.85

2.09

1945—

;

1939

$1.93

1.77

1944

; v -

.3%

decrease.

T'r

v;
y-iy'A'AJjf.r;

months

63%

34%

—

democracy, his investments

would prove the correctness

Telephone: BArclay

running

y *

Established

• •

1891

—

,2.82;y.

;2,90 "...

have

the

'•£

r.;

*$4

and

ness

welfare," which

has been used to

impose upon this

country dictatorship in the name
-

35%

45%

Bankers

19.0%,

appreciate

Head

;

Bought
-

—

Sold

Office:

Bought

Colony and Aden and Zanzibar

Subscribed

to 5 p. m.

Brokers

•

Sold

CALIFORNIA

West 7th

Orders solicited.

-y

■

/•.'

Chicago

TELETYPE

and Executorships
*•

undertaken

south i wales x

' '

\ v"( K

;

„

; Paid-Up

Capital ________.£8,780,000
|

6,150,000

Reserve

SECURITIES

Fund

Liability of Prop.- 8,780,000 ;
tv-

INCORPORATED

.V" INVESTMENT

;;

Montgomery Street

;

SAN FRANCISCO 20
Teletype SF 431-432

650 South Spring Street
LOS ANGELES 14
"

I
.

>
.

;

Teletype LA 533

geattle
:<c "_y

; OFFICE SIN

*yy.',:'-.,

CALI FOR NI A. C I TI E

8 y; ^

General

Head

Office:

X;-:

£23,710,000

^£208,627,093

Manager

George Street,

Berkeley

Square,

AgenCy arrangements
.

iv V'

Threadneedle Street, E. C. 2
47

^ ,

SYDNEY

LONDON OFFICES.Y

,X.' +.
, • V
Angeles, New York and Chicago

PRINCIPAL

-'-I-1

30th

; THOMAS BAKER HEFFER,

iv;

Assets

Sept., >1944

;

Private Wires

Between San Francisco, Los

Aggregate
?

-\r.-y'.',

"y;
.

280

300

yyy'XJ

San Francisco

279

(ESTABLISHED 1S17)

V';!'.-:"-i;y.4

.'••••

■

f- S

St., Los Angeles

pbivate WIRES

York

bank"of

Quoted

•

First Galifornia Company

„

description

every

Australia and New Zealand

(P. C. T.) '

BUTLER-HUFF & CO.
.

£2,200,000

conducts

Bank

£4,000,000
£2,000,000

Fund

banking and exchange business.

(

Inquiries invited.

210

Capital
Capital

Paid-Up

also

Prospectus available upon requeit
yy. y;y.

COMPARED

Special Bulletin and Booklet Service to Dealers
a.

26,^ Bishopsgate,

Branches In India; Burma, Ceylon, Kenya

Reserve

;;7yv'^:.:yrk.y

Quoted

—

REVIEWED

Trading daily 7

the Covernment la, .-X,-..;

London, E. C.

but

Common Stock

•

Kenya Colony and Uganda

N. T. Phone—REctor 2-4383

Insurance & Bank Stocks
ANALYZED

of INDIA, LIMITED

new

A WIDOW,

•

NATIONAL BANK

28%

38%

Trusteeships

MArket 3-3430

de¬

cloak of "public

—6.6%

decrease. + 34.8%

•

contract; been

crooked¬
graft hiding behind the

Kaiser-Frazer Corporation

H.>:

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

Gibbs, Manager Trading Department'

laws and courts of

right

would have to appreciate

Chase

the men whose duty it

are:

stroyed, or is all of this

/>"

JB, in order, to reach the highs
"registered in 1937, - City would

$3.02

;•

this country?

justice, honesty and integrity? Has

I. S. Rippel & Co.
-

u -V

7-3500'

Bell Teletype—NY 1-1248-49

■

'.y#'

■

set

of his

his confidence in

and

Where

From current prices, as of Nov.

;

destroyed if we

and not

the law

Reserve

Exchange-;

free

market,

28%

just twice as much, or 38%,

Laird, Bissell & Meeds

L. A

them. In a free
America where
should be protected by

which he paid for

Stock

one-tenth of the price

less than

The

New York

have been reduced to

on,

33%

1944.—

8.3%

STOCKS

Members

all that, five of us have

are

live

'+"37%

1942

National^

$2.15

investments,

My. jhusb a n d's
which

59%

—

con¬

of "democracy?"

:0\

1941—-i.

Phacip : X, !i'Pitv

1944______

B;mdnth4 1945;+——
Increase

189 BROADWAY, NEW lGRK 5. N. f

organization

stitutional?

Who

National City

1940

Net, Including Security^ Profits
—

BANK STOCKS

Are the activities of this

administrative

1938

"National'

BANK

INSURANCE

torship?

America.

City's

—

1937

Operating Profits Only

Net

Increase

NEW JERSEY

Is this democracy?
American?
Do we. h^ve

29.7

-X-

w—

plan of. reorganiza¬
Is this
a dicta¬

the proposed

tion.

j udgment

Chase

1936

dictator ever per¬

any

ports in the papers, the company
has been forbidden to allow the
common
stockholders to vote on

over

Year

■

Moreover, according td the re¬

Chase is • usually
City in most years,
as
the following record of high
annual bids indicates:—:
; I;
favored

1943

and

handed
formed.

21.8

National

company.

of the constitutional rights of con¬

Marketwise,

provement in net operating prof¬
its, exclusive of security profits.
For the first nine months of this
year

while

the

tracts, this is dictatorship as high-^

experience is exactly opposite.

im¬

greater

included,

Chase, yet

that of

than

greater
the

value of

addition to this complete violation

Here
again, the results are
mixed, Chase showing a drop in
net operating profits/ but an ihX
crease when security profits are

comparison indicates that

This

now

asset

19.2

265,335,000

254,943,000

204.624,000

—

are

have

29.1

City's;increase in earning assets
since 1942, including those of City
Bank Farmers Trust,
has been

Dillon,
Co., Inc.;
David S. Rutty, Sage, Rutty & Co.,
Inc., Rochester.

NEW YORK 5

Telephone DIgby 4-2525

growth

willing to take
confi¬

who had

and

this ; country and its
told that they can
only about' 15% of the

dence ..in

30.4

2,598,168,000 2,519,678,000
3,671,306,000 4,365,045,000 4,472,550,000

________

Capital funds

42.80

622.72

Common¬

met,

were

risk

the

all

41.12
603.90

2,114,344,000

securities

Government

holders who

had

30.0

$1.30

33.14

being

:beirig re¬
organized and the common stock¬

22.0%

477.23

re-:
un¬

selling at
for it many

thie investors

contracts

their

utility com¬

____

and

than he paid

contracts

1.00

pep share.
—:—
per share..

assets

would

but

from 1942

$2.66

1.00

]dr—-t——•

rate

Dividend

18.8

7.7

Earnings per share

Net operating

18.6

2,765,350,000

$2.18

)

change

and

companies do,

wealth and Southern is

% Increase

1944

per¬

interest

indebtedness of the

Instead

1945

1942

low

permitted to hold on to their con¬
tracts with the company and have

(Incl. C.B.F.T.)

CITY BANK

present

years ago.

Sept. 30

22.6 :.'7

548.58

■■■.■
462.48.
f . 572.65
2.327,748,00(1 2,899,834,000

i NATIONAL

40.3 %

38.49

33.19

4,291,467,000
245,589,000

Deposits y
Capital funds

from 1942

1944 /
y $2.54

;

1.40

per

securities...

was

earnings

off its preferred stock and

far

% Increase

1945

1942
earnings

'' V: V

Net operating

to move up to City's,
"

„

NATIONAL

CHASE
V

were

many

because

derlying companies, this common
stock would not be selling for $2

growth. The. plan of utility fi¬
nancing served , three - different
groups of investors.
Those who
wished income with safety bought happened to his investments as a
the bonds. Those who wanted in¬ result of the administration of the
Securities and Exchange Commis¬
come; and; were i willing 'toy take
For example, he bought 3more
risk bought the- preferred sion.
000 shares of Commonwealth and
stock.; My husband, like millions
Southern common stock.
He paid
of people, had confidence in the
growth of America and the ability I about $60,000 for this stock.
The
of these companies to meet their ' stock is now selling at the highest
of

it will be recollected, saw most bank stocks

year,

to assume the risk

willing

were

other

duce the

panies.
Not one of the utility
companies in which he invested
has failed.
Moreover, there is no
indication that every one of them
will fail to meet their obligations.
But let me illustrate to you what

for the people who

of course, was

-•

•

(Incl. C.B.F.T.)

$622,72

stock

mon

willing to take a small risk for a
larger income. The common stock,

pay

savings in

■

measured by. some of the more significant figures,

5.1%

5.3%

slightly favor the latter.

selling below the 1932 lows/

(Incl. C.B.F.T.)

of interest to compare the relative growth

now

institutions,

2.5%.

$2.66

$548.58
$11.45

however, if Chase's price

the ratios would

$1.30
-

| the basis .of these . figures there is little to choose between

the two; stocks;

since

(Incl. C.B.F.T.)

$0.83

2.9%
1944—$2.54

Earnings assets per $ of market—.

Asked

$42.80
*

$1.40;

dividend

Dividend

50 Bid-52

$0.85

of market————

per S

its

use

rates

was

his

invest

borrow

natural^
obligations, and finally to reduce
or pay off the bonds and the pre¬
utility securities.
He invested in
ferred stock. By paying the bonds
many companies.
Most of his sav¬
and calling the preferred stock
ings were invested in the common
stocks of utility companies.
His with earnings or refinancing the
company
at lower interest and
plan for building an estate- was
dividend
charges, the investors
very simple.
Because of the nat¬
who wished safety were served,
ural growth of this country, it was
and the people who were willing
his opinion that the demand for
to take a risk and who believed
the services of the utilities would
in the country would reap their
increase, as would the value of
advantage in the speculative com¬
utility properties.
He recognized the fact that the mon stock when charges for the
bonds and the
preferred stock
bonds were for investors seeking
were reduced
or paid off.
With
safety and income. The preferred
this planning in mind, which was
stock filled a useful purpose for
followed by millions of investors,
providing capital for the expan¬
sion of the utilities, and in turn and which is the only way that
furnish a semi-speculative invest¬ capital can serve all groups of in¬
ment for business people who are vestors, he invested in the com¬
It

service,

him

reduced

At the present time if the Com¬

Chronicle
My husband worked for a public utility all of his life. He had
confidence in the utilities because, as he said: "They furnished a necfor

been
or

were all good common stocks
utility holding companies.

mitted

Editor,"Commercial and Financial

essary

National City-

-Chase-

have
much

monwealth and Southern

If Constitutional Right of Con¬
Not Substituted for Democracy.

iends, Would Have Higher Market Value
tract Were Not Violated and Dictatorship

and it is
at the present
Most of his in¬

years

they
in

in Utilities and Complains of
Treatment of Shareholders in Reorganization Under SEC.
Mentions
Case of Cominonwealth and Southern Common Stock' Which, She ConWidow Recounts Husband's Investments

Week

several

market quotation.
vestments

Bank and Insurance Stocks
By

worth about $6,000

A Widow's Estate

W. 1

with Banks

throughout the U. S. A.

;

■X:'v".:»

THF

162"' Number 4438

*&}? Volume

id
?it. **r*

•>

* y

♦

*' ■*'' ,»•*' *

■

clearing

left

■ • *

'.jMrillil
orter s:

last

ruling'; approximately:
their selling!prices,
; v
,

jr1

Looking

list

of about

twenty-five bond issues brought
all

but

four

these

the offering prices.
of

one

the

are

premiums

ranging from 2 Vi
points to 5 points. As one observ-:
er put it, no further
explanation

Only

needed

than

funds around.

Reading

laggards,

...

case. pf Jialf a * dozen pre¬
stocks brought out in re¬
months these all are
ruling

cent

| selling at substantial premiums

jover

ferred

{ out in recent months, it is found
that

at
.<

InJhe

over

seeping
jams. ^

offering price,'while the others
are

Co.'s 3^s, is actually below the

emissions;,. Dealers have little or
nothing left available. on their
shelves.

rOMMFPriAL ^ FINANCIAL CHRONICLE

of bits and pieces
month's heavy

away

from

over

:'..T

the

plethora

2337

from .cracks

door

and

rect deal through sale to insur¬

r'<1

process
new

of formation

securities

slated

companies,

ance

'I \'*rf?•*;'Looking Ahead -••• • - w
I Groups1 already, are reported in
to

the

sale

of. Telephone & Telegraph Co.
!
Originally intended as a

Money, he said, is

So bids will be opened
10

ordered

competitive

next..

:.....

Sioux

City Gas & Electric Co.
the same day will open bids for
$8,000,000 of new first mortgage
bonds, 38,000 shares of new pre¬
on

;

di-

sold, at

'December

competition
early ' next
month.
Largest of prospective issues in
sight right now is the $75,000,000
financing : planned ;*:by ; Pacific

California

the

Commission

issue

after ^bidding.

for

Railroad
•

ferred and

large block of

stock.

mon

;

com¬

;

the

\With

Victory Loan Drive
to a good start, "the
Exchange
Com¬
mission appears, for the moment
at least,:a bit more liberal: in its
consideration of corporate under¬
takings. :
getting

away

Securities i and

Naturally it is not of a mind
allow any undertakings of

j substantialv Size Vfor * corporate
J

with

contrast

but

accounts,

■

virtual

100% blockade of
such ' financing during the in¬
terval of past Treasury opera¬
tions, this time it is permitting
some
smaller offerings to go
its

through.

Hearts sang

Several already have been mar¬

keted, and it was expected in un¬
derwriting circles that the Com¬
mission would give release to the

and

would

reach

and roundhouses

market

yesterday or today.

sang on

land.

dled the recent offering of 849,shares

000

Light

That

Power Co. common
elated with the out¬

stock,

were

come

of that undertaking.

'American
at

full

this

competitor,

group

ex¬

war

peace.

issue|®':-;;.'

reach

served

•

(

Normal

near-record

total

issues

new

undertaking.

ury

and

business

keep

♦

;

>•

•

■

'."...-••a it'-:

singing

;

na¬

:
\

turning out the things

equipment,

drives

pay

members of the

gether with all citizens,
the fruits

of their

may

will get a bit back to
normal in the wake of the cur¬

than

mighty total.

have been

one way,

of jobs.
ment

mass

sure

enjoy

production could

bitterly-fought,

without

this

twin

never

mass

investment.

the

issuer

and

the

•

listed
its

use

culmination

the

operation early next month.1

Fine with Bankers and Dealers

Underwriters

Jobs don't

deals and the
for their distributing

goes

affiliates.

fore

underwriter nor

group

it, the in¬

may

that

mass

yield its utmost

destination

beyondvictory. i

find

that

group
a

^ne-

issue, 'only

also in

mass

in-

change performs

essential func¬

tion. It maintains, sound and effi¬

just happen." Today,

can

machinery for

vestment, the New York Stock Ex¬

cient,
'

securities

of American

industry.
Ask for information about securities.

be worked at.
-

Without this Exchange, and
the other organized financial
markets of

lions would not have dared

investment of

thousands of dollars in

another'

plant,

exchange

ever-present market at

major, industry, there! first

NE*VORk
mstock

openly disclosed prices for the

had to be

which is successful in\

bidding in

they

In this vast
r

/";

For • every existing job in

the dealer likes to find himself
in

always, they have to be planned
for, tooled-up for.. .paid for.. . be¬

The reason is not dif¬

the

jobs?

ficult; to find when one considers
the position of such firms.
Neither

drive ahead toward this desti¬

what makes

naturally are all

for spacing out of
same -

nation; beyoud viptory^ what better
time than now for a straight look at

our

country, mil¬

become security owners.

For,

The facts

can

be found where you see

this sign,

"Member, New York Stock
Exchange." Be informed... rely on
facts, not hearsay... responsible
ownership will make a vital contribu¬
tion to America's progress.

which has been awarded '

second loan in which he has a

-participation.

: Under

such
circumstances
a
position is likely to
be
taxed
momentarily, whereas
given a bit more time such con¬
tingencies may be averted;
firm's capital

Seeping Out of Cracks
-

New York Stock Exchange

;

Shutting off of the main flow of

new

securities has resulted in rap¬

:>•

"'-i

ii- '■

benefits .in the mass production of
goods, of jobs. Thus will we achieve/
our

Treasury

facilities—all

very

the

J
.H:-

;•

one

high duty in this vital hour

banker

likely will be disposed to
space out such financing as may
develop in the months following

risk-^

national life. That duty is to

investment

of i

performances

our

are

who

perform responsibly,

There is no
December will

new

selling.

vestors

mass

Loan.

that

securities

have been,

miracle

prohibitive

ready market. No

This Exchange, the companies whose

of the

people. America's miracle of

would buy what he could not be

And that is through invest¬

by the great

| On the contrary, it is argued,
the

lack of

under free¬

July and October.

both

present in any form of owner¬
ship for profit,* there would • then

tiny fraction

ban be provided to make the millions

to¬

hard-won victory."

things

duplicate

armed forces,

is ever

dom, by which the billions of dollars

destina¬

beyond victory, to the kind of

in banking quarters that

Indication

for

of this

America in which the victorious

loans.

war

added to the normal risk of loss that

materials. All the

There is only

tion

Now, however, it is the con¬

rent Victory

raw

millionaires in America could not

"We must look ahead to

(best to get through
i|n the time allotted

between

sensus

earlier

Industry and bankers

war.

did their
them

concern. >v
"v:-

the

are

during

following

loan

Treasury
the

much the same in ad¬

was

vance

will attain the goal that was
set before us, shortly before the
war's end, by the Director of War

of the current Treas¬

advance

Mobilization and Reconversion:

piled

October

and

goods-hungry people want. There¬

culmination of the June War Loan

Drive,

•,

on, ;

for the tools of*

now

-•

real wages,

brought tremendous vol¬
new offerings,
following

July
ume

;

singing at productive jobs for

...

followed,

peace

Jobs, not Japs,

Hearts must

Back

war

;

tion's No. 1

adjacent to the territory
by the company. :.

swing.

fact, upward of half the total
marketed' through
dealers

In
was

Victory.

was

Hands that made and used the tools

perienced no difficulty at all in
placing the

of all the

'■

the shift from

competitive sale, and paying
a share more than the near-

est

'"f-

In these weeks that have

the
stock
in from
Power & Light Co.*

Buying

•

Arizona

Central

the farms, in the villages 2

and cities, in the homes

Meanwhile bankers who han¬

rooms,,

in the factories, stores, of¬

sang

...

either

torpedo

fices; in the mines and shipyards

400,000 shares of com¬

stock,

mon

;

•

the far-off prison camps-

15-year 4*4% sinking fund deben¬
tures

•

foxholes, the cockpits,

the gun turrets, the

National Vulcanized Fibers Co.'s
projected underwritings.
In fact
it was expected that this busi¬
ness,
consisting of $3,500,000 of

•'

sang in the

•..

.'s

'-ri

Thursday, November 15, 1945

FINANCIAL CHRONICLE

THE COMMERCIAL &

2338

promptly, the total output of both

Securities Salesman's Corner
By

JOHN

DUTTON;

I j;| (Continued from page
become | duction

items that

for This One!

What

bottlenecks.

something to brag about. Others
quite naturally feel good about the fact that they have been making
some profits after so many years when profits were scarce; and they
sincerely would like to have some of their friends share their new¬

during bull markets—profits are

It is the people who tell their friends about you that can be very
helpful in securing a large volume of new business.
But once you
jet into a nest of-friends and you start doing business with several
of these people, you've got to watch your step when it comes to the
{ind of talking you do, AND THE KIND YOU DON'T DO. For in¬
stance, watch out if you sell one person a certain security AND
DON'T MENTION IT TO THE OTHERS IN THE GROUP.
If the
word gets around that one of them bought and has made a profit,
while one, or several for that matter, didn't receive your original

showing favor¬
markets

suggestion to buy, you are liable to be criticized for
itism.
This is the sort of thing that can happen quickly in
like we have today. LOOK OUT FOR NEW ISSUES ON THIS ONE—
THE KIND THAT GO TO A PREMIUM THROUGH OVER-SUB¬
SCRIPTION.

;

sell all members of
the same
is usually one
her do the
here is
others.
1
Then we come to the most important rule of all when dealing
With
group of friends.
DON'T TELL ONE WHAT THE OTHER IS
DOING.
Watch out for questions like this, "Did my friend Jim do it?"
j

are

something like this, "You know
rule I always follow in

tell that customer

Jim's, but there's one

both friends of

business/and that's keeping everybody's business transactions
absolutely confidential.
I can tell you this much though, I certainly
wouldn't hesitate to make the same suggestion to him that I have to
Rhis

YOU GET THIS POINT

and you can be sure about that." ONCE
TO THE MEMBERS OF SUCH A GROUP
YOURSELF A LOT OF POSSIBLE GRIEF-AND

you,

OVER

YOUR

you

gentlemen that

BECAUSE
THEIR RESPECT. * '

BUSINESS TOO,

infla¬

ticularly in housing, will give us
"boom and bust" pattern.
For

to meet

construction

pansion

needs.

principal

Wages and pricing, the
of

YOU'LL SAVE
IT WILL HELP
YOU'LL HAVE THEIR CONFI¬

CPA.
We are,
with
other
agencies on these matters. Mean¬
while, we are taking steps to in¬
crease
production through prior¬
ities and other assistance in ob¬
successor,

Disposal of Surplus Property
One

potential

of build¬

source

surplus property, is outside of the
jurisdiction of CPA. However, we
kteep an eagle eye on what is of¬
fered for sale, .to see if the lists in¬
clude bottleneck items that the
construction industry needs.
We
advocate tapping ; this, source of
supply before we give

other ex¬

pediting assistance.
control

Over-all

surplus

property is in the hands*of the
Surplus Property Administration,
the policy-making agency. Actual
sale i is handled
by RFC, NHA,

55 LIBERTY

STREET, NEW YORK 5, N.

interested

are

Lists

sold

through

our

regional

are

will

Russ Building, San
.....

CO.

Fruit Growers Inc., Com,

FuIIerton

Oil

Pfd. & Com.
N5*

Co., Com.

,Inc.

Wagenseller £

Members Los Angeles Stock Exchange
626

SO. SPRING ST.

TRINITY 5761

Market Quotations and

Information

will carry out the

are

all California Securities

Clay
Face

Products — Common and
Structural Tile, and

Brick,

number
shut down for

Clay Sewer Pipe: A large
of plants are now
lack of manpower.
at

not

are

Plants in operworking at full

capacity for the same reason.

July, 51% of the country's brick
plants and 16% of the clay sewer
pipe plants were shut down.
On
the plus side
ol the picture, a
WPB
survey
of 106 shut-down

indicated that

plants in September
89

would

Twenty-seven

reopen.

of these

planned to reopen
the next six months.
*
'"

within

Production of clay products

increased

recent

months.

has
In¬

ventories,- however,
are
falling
and unfilled orders are mounting
as

(6)
Allocate
scarce
and facilities necessary

materials
for pro-

amounting

East of the
Rockies was granted in Septem¬
ber/ Reports from our field of¬
fices indicate that this has already
resulted

some

increases.

wage

in addition to the modest

ready recorded.

■

gains al¬

/ Plumbing and Heating Equip¬
ment:
Most
serious
bottleneck
items in this group
and cast iron

are

radiation.

bath tubs
The bath

and .will

not. retard

lath and

Production probably

ought to be about 50-50.

principal limiting factor in|
production of both lath and
board
is the supply of gypsum:?
The

the

liner. This paper is in short
supply and is also needed by the
box industry.
Here asfain,.
pricing enters the picture.
Gyp-;;
sum lath producers, with the ex-*
ception of one large firm, respcns-f
ible for production of about 53 %|
of all lath, report that they could |
not
use
additional
supplies
of.

paper

liner for lath, unless some
price increases were granted.

gypsum

of gypsum lath in
1,842,583,000 square feet./

Production
1941

was

annual

the

now

rate

of|

only 525,000,000 square feet. OPA
has been asked to grant relief to:
the inland

done,/
necessary!

If this is

plants.

the

divert

will

CPA

quantities of gypsum paper liner
to gypsum board and lath manu¬
the container in¬

facturers, from

dustry.
It

clear,

think from this
that shortages of

materials can

the problem is at-i
tacked with courage in the near
future.
The
various steps that
must
be
taken
require inter-/
be overcome, if

action. They are complex,;
opposing viewpoints:
reconciled. They require,r

agency

and

many

must be

also;

the cooperation of - industry/

and of labor.

closing I wish to thank in-?

dustry for the support it gave to
WPB in the job of providing what
was

needed to carry the war'to

successful close.

I believe that

its!
if.

arid

industry i cans
maintain the same mutually help--*:
ful relationship during the recon-*
version period, we can chart our
course and come into safe harbor
without mishap.
:V
/, '
§

Government

Another N. Y. C. Branch

For Francis L du Pont
Francis I. duPont & Co.,

mem-!

Providing de¬ bers of the New York Stock : Ex-/
sheet steel are made ;change, have opened a branch of¬

recent coal strike.
liveries

IN JEST—IS

ANOTHER

times a day we all run into things
getting along with people.
And as we have
always said—SECURITIES DON'T SELL THEMSELVES—EVEN IN
TIMES LIKE THESE.
And this sort of thing is what we get
strange thing how many
It's part of

paid for, boys—knowing when to

about 25%

Today, it is
75% board.

key building

increase,

are

principally to manpower;
problems. Gypsum lath is a small|
profit item
and its production!;
SHitomat:c»lly cuts down the pro-/
duction of gyosum board, a large-:
profit item.
In pre-war years the
proportion
of - production
was*?
about 70%
lath and 30% board.
due

fice

described,

have

materials
not

these

10% rise, in all regions

gyp-|
|

lath, unlike those of the other

sum

make increased de¬
products. An OPA

mands for these

price

scaffold:

and

summary

NO PERSONAL REMARKS—EVEN
RULE THAT HOLDS HERE.
like this.

shingles

brief

der way and

shop §
hardwood •

dimension,

millwork,

construction activities get un¬

tub supply

inadequate.

(3) Control inventories to a.void

It's

have

back into product'on and
that production is already increas¬
ing.

utmost to hasten

you.

LOS ANGELES 14

Teletype: LA 68

exist/

five foundries

increase

gone

will improve, we think,
housing con¬
struction.
Production of cast iron
speculative hoarding and unbal¬
tubs
is - low, v but
is increasing
anced distribution.
Production
of formed
(4) Grant priorities assistance •slowly.
sheet steel tubs will supplement
to
break
bottlenecks
retarding
that of cast iron tubs but this is
product on."i ^
:
(5) Facilitate relief and other dependent on the supply of sheet
steel, which was affected by the
essential export programs.
-

Farms Co.,

building ma¬

;bow out of the picture.

ities

Arden

It should be

(1) Expand production, of ma¬
terials in short supply.-' >
Sx'jj
(2) Limit manufacture of prod¬
ucts for which materials or facil¬

Telephone EXbrook 7484

American

following six-point program:

Francisco 4

the effect

ThiSytogetherwitH manpower and
priorities assistance, should stepcoming of the* day when CPA
up production in the near future
our

Until then, we

too

yet

early to estimate fully

policy of lifting controls as rapid¬
as possible, and we will liqui¬
date CPA when the need for re¬

can

of this increase on production, we
do know that as a direct result of

the

have

in early Sep¬

Jon was made
While it

diffi-1
Lumber |
in demand for con- ;
is

Gypsum Lath: Shortages of

granted in the industry. The
most recent price increase of $3

the

troubles,

lumber.

been

continue WPB's*-general

We will do

im-1

informed.

are

for

lumber

approximately double this

Price, and wage increases

per

most

main

workers

are

items

additional 1,500 workers.

issued and items

conversion controls ceases to

cult,

the

are

Recruitment

employs from
4,500 to 5,000 workers. ' Some 2,500 more workers are needed. The
Tennessee-Alabama
area
alone,
where two-thirds of present pro¬
duction is concentrated, can use

either at fixed prices or

negotiated prices.

production

The industry now

value at this point
to
clarify
the
transition from
WPB to CPA, which took effect
Nov. 3.
The CPA, of which I am
Administrator, is taking over the
functions - and
powers
of WPB.

organization.

DENAULT

offices

materials. Unless the situation

flooring,

It may be of

unlisted, securities for distribution

decline

But

the

••••

throughout the country, has again
placed lumber among the critical

1945 rate is needed.

terials field.

offerings ,of

the

property sales in the

;

struction

pitals, veterans, and so oh.
The
quantities thus far declared sur¬
plus are extremely small.
It may
well be worth your while, how¬
ever, to get on the RFC mailing
lists and to keep track of surplus

Herrick,Waddell & Co., Inc.

mills.

tons, with only 28 plants at work
To take care of anticipated 1946

pointed out, however, that certain
types of buyers have i'irst chance
at the surpluses *— ther Federal
Government, State and local gov¬
ernments, public institutions, hos¬

Prospectus upon request *

both at the yards and

stocks

oroblems

tember.

an oppor¬

tunity to build up badly depleted

plants to 32, with an output of
165,000 tons'.
Production during
the first six months of 1945 was at
the annual rate of only 156,000

tion of

ing materials is the surplus prop¬
erty now being disposed of by the
Government.
The actual sale of

RFC.

Stock

and that there would be

requirements, a minimum produc¬

taining materials and equipment.

are

Common

for

proves promptly, it will not be J
possible to build up stocks, or per¬
Cast Iron Soil Pipe: In 1941, 52 haps to meet all essential needs }
Here as j
foundries produced 565,000 tons of during the months ahead.
with other materials, manpower :|
cast iron soil pipe. By 1944, shut¬
and wage and price f
downs had reduced the number of shortages

working

however,

through

Resistoflex Corporation

semed that lumber
plentiful supply
construction and other needs,

specific problems.

:
1
:
i" Another thing—if you have a group of women who are investing
with you, be careful in everything you say that is of a personal nature,
Agriculture
agencies,
as well
as that which pertains to securities.
The jokes they have depending onand' other items are.
what the
made about the sewing circle are not fiction—you'll find it out if you
Lumber,
hardware,
and
other
happen to say something in an unguarded moment to one of your
building materials are handled
women clients about another person, who is a friend to the both of
DENCE AND

Day

would soon be in

building materials which I
have
already
enumerated
will
show clearly the immediate and

building materials, are
within the jurisdiction of WPB
its

V-J

sharply at the
Immediately after

war.

scarce

not

end of the

of the critically

A brief review

re¬

for lumber declined

Materials

Scarce

production

obstacles to increasing

the

that

emphasize

lems.

and the

country as a whole, we must avoid
the "bust."
We want k steady ex¬
the country's

want

personnel of WPB has not been
A
central
core
of
trained
workers will carry on.
Those who have returned to pri
vate industry stand ready to come
back if their experience and skills
are needed to solve specific prob

„

f i Another point to look out for is to try and
the clique at around or about the same price, and as near
time as possible. If you have a group of women, there
Ringleader who talks to all the rest.
Sell her first and let
talking.
The same is true on "take outs." Rule to follow
don't suggest anything to one that you don't suggest to all the

That's the time to

low-priced

disbanded.

tion in the construction 1 eld, par¬

the good of the industry

prosperity.

found road to

out

;

Some people

friends—others DO NOT.

construction

quirements by spring.
As for cast iron radiation, there
is at this moment very little pro¬
duction but it may be possible to
meet
essential requirements by
early spring.
f
Lumber: Military requirements

of essential

actual

meet

items.

This does not mean that prices
like to talk about their financial affairs to their
In the sort of seller's market we have been of all materials need' be or should
Price control must be
having in the securities business for the past few months, it is once be raised.
again becoming apparent that customers are talking to their friends retained if we are to avoid an in¬
about the securities they have bought.
They always like to do this flationary spiral. I need r.ot point

2329)/

are now or may

should be adequate

kinds of tubs

New
Construction During 1946

Six and One-Half Billion of

talk and when to "shut

up"!

144 East 86th Street, New

Harry G. Wil-Z
With this new:
branch, the firm will have nine
offices in New York City, bring¬

York

City,

with

liams as manager.

ing the total number of offices
operated by -the company to • fif-t
\V
M

'teem:

„

^Volume 162

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 4438 i\

2339j

TO OUR STOCKHOLDERS AND EMPLOYEES:
With

the

approval of the Board of Direc¬
report of the Corporation,
showing the results of operations for the year
7 ended June 30, 1945, is herewith submitted.
The consolidated net profit was $5,334,049
equivalent,
after
preferred
dividends,
to
$3.99 per share on the 1,264"772 shares of out-'
>
standing common stock. This is after deduct¬
ing all charges, making foreign exchange ad¬
tors,

the

striction

annual

midst

building. We are .also in the
building an addition to our Cana¬

dian mill.

Both of these

well

should

and

investment

companies have done
continue to progress. An

made

was

company(which

has

been in operation in Venezuela. Its ac¬
tivities have previously been confined to the
manufacture
i

justments and setting up a reserve for con¬
tingencies of $500,000, bringing the total of
this reserve to $3,500,000. The working capi¬
tal shows an increase of $4,488,574.
;
In addition to the earnings stated above,
the Corporation's share of undistributed earn¬
ings for the year ended June 30, 1945 in com¬
panies not consolidated amounted to $300,922.
?
Proceedings with respect to renegotiation
have been concluded for all of our companies
for the period ended June 30, 1943 and the
results included in current operations.
The
effect of further renegotiation on earnings

intention

extend

cotton

its

goods and it is
operations into

our

the

fabric field -for consumption in that
country*; .7
rayon

For many years,^ your

Company has owned
subsidiary which has a small chain of
retail stores that have catered to the require¬
ments of our mill employees and" adjacent

WILMINGTON,

DELAWARE

localities.

The parent company has also for
a number of years had a
minority-interest ina chain of retail men's clothing stores.' This
was formerly included on our balance sheet
in "Other Assets", as ah investment. During
the past year
creased

for either of the years ended June 30, 1944
or
June
30, 1945 is not expected to be
material.
-7

stock

the investment has been in¬

that

now

own

enough Of the

consolidate

this company on our
We have expanded the num¬

balance sheet.

ber of locations in connection with the mill
chain and formed another company selling
men's and women's clothing.
-v

:> During the past fiscal year, dividends paid
amounted to $2,053,668, consisting of $283,438 on the 5% Cumulative Preferred
Stock,

the authorized number of shares pf Common
Stock was increased from 750,000 to 2,000,000.
On

March

1945

split-up

was

made

ceived
held.

additional'share

Under

3,000

were

each

Cumulative

called for

redemption

Preferred
on

October

1,1945.
Direct taxes charged to operations for the
last fiscal period amounted to $11,229,000.

receivable
with

its

customers.

pleased to announce the election of
S. Rosenthal as a Director. Mr.
Rosenthal has been our associate for many

and is President of SudamteXj
gentine subsidiary.
'
-

tribution,

handle

the

textiles

same

rate

for

of growth

The

the

nation problems.

Civilian production, while

regulation, is being resumed
as quickly as adequate raw material supplies
and personnel can be obtained.
]
During the War it was not possible to re¬
place machinery to any extent so that repairs
and reconditioning were resorted to. We now
expect to be able to put into effect, during
the next five years, a well laid out program
of modernization and replacement of equip¬
ment. This will insure proper costs and keep
us
abreast of the many changes in textile
manufacturing.
;
still under

some

Our

Sales

attention. Additional

7 nationally advertised, and a radio program is
being broadcast on the air in approximately
190 cities under the caption of
.

"Cohama pre-

^777pv77/7r7-''-7'":7

'^777
"Several new developments have taken
place during the past year. The picture on
the

inside of the front cover of our

This

report is not a
not

;

7".

C):

•

Less:' Reserves,for

DEFERRED CHARGES.

(

depreciation jnd

based

77#7777^'S

Notes

Trade

;

»^-;V»-

743,706

.77. ;

$'5,612,303'

11*718*933

amortization:v

17,331,236

;

9.182.786

687,900

.7.77 77 .7

8,148,450

7:7 '>:/ liabilities

■

payable—banks

.....

7- 7

$ 2,525,000'

'hty... .:
7..
payable, sundry liabilities, accrued expenses, etc
Federal and foreign income and excess profits taxes
United States Treasury Savings Notes, Scries C and
accrued interest.
,7
,

Reserve for
Less:

RESERVE

./•■

$18,964,800

4,038,527

3.500,000

1,113,097

(Note D):
5% Cumulative Preferred Stock, Par Value $100
Authorized and issued

per

Share:
57,000 shares

.,.1..,

Less: In treasury.;.: i:..

Outstanding.

1.....

.....

7..

305 shares

56,695 shares

5,669,500

Common Stock, Par Value $1.00 per

Share: :
!
Authorized........,.........
Issued (including 309.76 shares still

.2,000,000 shares

be issued in

ex¬

under plan of capital stock readjustment)
and stated at par value of $1 per share plus $6,451,790
added to capital by resolutions of the Board of
?? ./I.

Directors

-'-77
.

1,578,283
22.231,010

37,250.583
Held in treasury—55,228 shares of

Less:

Common Stock

facts

for

our

stockholders

Year Ended

June 30,

1945

1944

1943

Year Ended Year Ended

Year Ended

June 30,

1942

1941

1940 *

Net Profits

(After Rcstrt rs for Continfjtntiti)

...

$ 5.334.049 $ 4.984,098 $ 4,256.656 $ 3,787,902 $ 2,623.132 $ 2,021,620

Preferred Stock Dividends Paid

283,438

Earnings per Share on
Outstanding Common Stock (After
Prcfcrrul Divuftntf) .. ..
Common Stock

Dividend Rate

Outstanding
per Share on

Value, Common Stock

per

Share).

7.40

632,388'

6.41

4.37

3 37

590,528

599,903

599,658

2.00 S

1.50 S

I.503 ;

2.00$

0.50 $

0.25

per

*7?'

!,7,;v

:'v;7

if.
'

24.45:7

■

43.91'

...

.>7.

'•7

19.78

42.24

32.46

27.17

21,869.651

29.59

34.96

-vV7>jf,''7.''V'7 -7

26,430,708

30,919,282.

Working Capital..

'7
*

Share (After

deducting outstanding Preferred Stock
$104 per

Share
(Ajttr Rtstrvts for Contingencies anil
after deducting outstanding Preferred
Stock at S104 per Share)....
Net Quick Asset Value
Stock

-0—

575,174

7.43

3.99;;
•1,264,772

J.,.".

Common Stock
Book

—v-Q—

285,923

Number of Shares of

-1

25.47

;.'7 'V

19.43

15.72

12.52

11,475',098

9,435,368

7.514,932

54S,923

474,379

400,000

—0-~

Depreciation and amortization of Fixed
Assets.

Reserve for

Contingencies

842,018

.V.;\;

864,304

723.208

564,146

3,000,000 i

.3,500,000

1,750,000

1,000,000

5,674,500

6,000,000

—0—

Capital and Surplus.
Preferred Stock
t

Common Stock and
Taxes Raid or

:-fV

Year Ended

? June 30,

Surplus

5.669,500

31,150,192

27,995,640

24,536,754

20,643,380

17,755,596

15,281.354

3,833,000

3,172,000

2,233,000

3,076,000

1,308,000

739,000

7,396,000

8,606,000

5,909,000

3,317,000

322,000

42,000

Accrued:

Normal Income and Other.

Bxccst Profits,1
♦Increase in Number of Shares Due

Stock

Split-up March 7, 1945.

•

'f.r

36,819,692

430,891

at cost

$60,397,589

;

7,771,790

Capital surplus
Earned surplus, since August 1, 1932.

President.
r

1,320,000 shares

■

E):

SURPLUS (Notes D and

''-777

5,891,500

CAPITAL STOCK
'

strong

1945.,

7,336,027

$9,930',077

CONTINGENCIES

FOR

policy has

'
1
I
7.?/ ^-> J. W. SCHWAB,

C7771:'

.. ,

COMPANIES-CONSOLIDATED.... .V.

sincere thanks to the of¬

•-,7

MINORITY INTEREST IN CAPITAL STOCK AND SURPLUS OF SUBSIDIARY

continued efforts in the interest of the Cor¬
•

5,065,246

accounts

;

Credit balances of factored clients.

splendid cooperation during the mo¬
mentous year just passed, and also to extend
deep appreciation to the Directors for their

307,093

7v /.V

7 \:77 '

.'•'

their

436,613;

CURRENT LIABILITIES:

Common

change

I wish to express

•;

PATENTS/GOODWILL AND, TRADEMARKS

Directors and ^ Officers wish to pay
to all of the men and women who

issued.

$49,884,082

933.448

profits'tax refunds'

jLafld.and buildings^.
'Machinery* equipment and leasehold improvements^ ^

ficers and employees of the Corporation and
its subsidiaries, both .here and abroad, for

hereafter to be

566.06S

per

companies)

ance

Canadian post-war excess

representation, prospectus or circular in ie3oect of any atock of this corporation and is
with any sale or offer to sell or buy any stock or security now

presented in connection
* ,"
V
'

nearest

FIXED ASSETS (Note

must

November 5,

341,113

Sundry receivables and investments (including $314,797 representing cash
surrender value of life insurance policies and deposits wirn mutual insur*

served

poration.

14,201,097

AND.'ASSOCIATED COMPANlES-nof
financial statements as at June 30, 1945 or
dates
thereto—approximately $2,368,000 (Note B) ...
as

Company is in sound financial con-

return.

Annual

Report illustrates our proposed new rayon
finishing plant, Which will be built at Old
Fort, North Carolina. • The erection of this
plant was delayed several years due to war¬
time restrictions.
Preparations have already
started for building, and the work will be

pushed to completion at the earliest possible
moment. Ample land was purchased and an
adequate supply of excellent water is assured.
Improvements and additions to our Argentine
plant were completed as there was no re-

the

OTHER ASSETS:

in the Armed Forces of our
Country and Canada and sincerely hope that
before many months have elapsed, a large
majority will have been released from their
duties.
The deep sympathy of their friends
in the Company goes out in full measure to
the families of those patriots who shall never

sents-^-'Love Notes'sponsored by leading

•/retail stores.

The

tribute

have

SUBSIDIARY

consolidated—book value

dition and able to take advantage of opportunities for further development,

7,852,381

3,961,938 -'

acceptance of our products has
,been furthered by liberal promotional and
advertising programs. Two of our important
trade-marks, "Ameritex" and "Cohama", are
consumer

$ 2,386,778

INVESTMENTS

•

financial security and ability
produce profits.
One of the goals of ex¬
ecutive
management must be to disburse
ultimately to stockholders a larger portion
of current earnings and, looking ahead, we
feel we are moving a; and
building in that
direction.
7
L
7 :
Your

5,317,506

501,573

8,755,764

••7:'-

■

profits tax refundable under Tax Adjustment Act of 1945
i
(including $382,023 due from > associated" eompanies-^not:
consplidated>.,». k. .* ». .1
../

foundation of

Division, realizing the impor¬
relations, continually gives

;

Orh« receivables
•

The Cor¬
poration recognizes that the confidence of its

tance of customer

this subject its constant

Through the years,4 our dividend
been progressive but conservative.

. •,,;,:•.>,„■...
grcigc goods , ,-. > ..4

$60,397,589

Conclusion:

stockholders

10,392,852:

Federal fxcess
'

v-.

Board

manufacture.
.

$ 9,SOS,109

supplies^

eign markets are. unprecedented. Savings in
the hands of the people are large and the
pent-up demand for commodities is great.
Home building is expected to be one of the
Nation's leading industries fo£ a prolonged
period.. We manufacture extensive lines of
merchandise used in decorating and furnish¬
ing homes and a broad market will develop
for our products.
The increase in the. stand¬
ard of living of many people should sustain
the buying power for necessities such as we

•/'•

Securities—at

Goodsin process,
including
Finished goods,
'

productivity and thought to manufac¬
turing for civilian and industrial needs. The
accumulated demands of domestic and for¬

Government

$225,673.

of its

curring in manufacturing methods and in the
7 accelerated development of synthetic fibres.
Now, with freedom of movement once more
'possible, our own Research and Technical
Divisions are expanding their efforts to make
further contributions to the improvement of
our products and processes.
As stated in previous reports, your Com¬
pany has no reconversion or contract termi¬

of the Company•

transit.

Merchandise Inventories (Note A.): '
Raw materials and

With the supreme task of winning the War
behind us, the Textile Industry is putting all

corporation.,
-,
>
*
The importance of continued progress and
investigation in technical and research work
becomes more evident with the changes oc¬

sheet; as at june 30, 1945

...

monthly,

production.
With the. resumption of more
normal operations to civilian trade, we feel
we can look for a continued growth for this

States

as at

Executive

>;■.7^:

report

7c«-•%

Trade accounts, notes and
acceptances receivable, less reserves of $318,046.'.,.
Accounts and notes receivable
purchased, less reserves of

Ar¬

Committee, appointed by
of Directors, continues to meet
and keeps in intimate touch with,
the current affairs of the Company.

was

experienced in previous years was not pos¬
sible due to diversion of machinery for war

footnote^ published in the annual

cost
or
redemption value and
Quotations $10,614,624)... .1.:...
Foreign^ Government Bonds—at Cost (Market Quotations
$502,678): ■
:, i *■■"... ••
|
Canadian Government
Bonds........,v;.,,....
$
477,477
Argentine Government Bonds.
3, AZf&T,
24,096

which is available to all employees.
Our Pension Plan is in operation, and phys¬
ical examinations of company executives are
arranged annually,
,
*

dis¬

accrued interest (Market

The Company has continued its Group In¬

accordance

civilian

our-

hand, in banks and in

United

surance,

our

clients

Cash

are

years

policy, no advances ;f are made
against merchandise inventories. As most of
our

CURRENT ASSETS:

Mr. David
•

;• /;;:

.'•.77

subject

are

assets

are

ended Jfune 30, 4945

'•'

•

consolidated balance

Approximately 9,200 people are employed
at the present time and existing relations be¬
tween,. employees and management are; en¬
tirely satisfactory.
a \
,%
—
" •

Depreciation and amortization of fixed assets
amounted to $842,018. Cost of new machinery
and - additions
to
plant
account
totaled
$565,585.
.
The United Factors Corporation, whose ac¬
tivities consist of commercial factoring, in¬
creased its volume slightly over the previous
year and
also enlarged its list I of clients.
Operations are confined to the purchasing,
discounting and guaranteeing of the accounts

■'

■<-

777.7

One of

us.

7" 7 "••••

already happily re-employed with
our greatest concerns is to offer
proper opportunities to returning .veterans.
The management of your Company had made
careful plans in advance in this regard, and
these are now in operation.
Many

'"A-

Tfat financial s-atemcnts presented below

their experiences arid capacity for leadership.

provision of the Sinking Fund,

Stock

for

will return to us:greatly improved

men

on
re¬

wie f&ca/ tfeak

":'r

Fortunately, many of our fine young men
who have served, br, are still serving, in the
Armed Forces, of qur Country have signified
their desire to return to the Company. These

and $1,770,230 on the Common Stock.
Pur¬
suant to the action of the Board of Directors,

the Common Stock and each stockholder

fob

•

THE COMMERCIAL & FINANCIAL

2340
*'v'v

Offers New Mfg.

; ABA

,\.'V

■

busithe American Bankers As¬

ness,
sociation announced on

'• *1','

■;

Reporter

*. •. ■

. ■

... j

No Mass

(Continued from page 2324)
out and hustled

Carrying forward its program
of assistance to members in. the

J conduct of their mortgage

•

"Our

Merchandising Plan
:

Thursday, November 15, 1945

CHRONICLE

K-»» \r.T

large and sustained demand, coupled with reduced offerings,
has carried the Government bond market to new alltime highs.
.
.
A

conversion with

mans

iBy JOHN T. CHIPPENDALE. JR.

around 300 billion

to beat the Ger¬
and the Japanese.

hold

First, let's clear the ground

points which might trip us up
later. "+
1. Full employment is not pos¬
two

not be too

dollars.;/ If

national

net

our

150 billion

national debt of

income

better the debt wiU

burdensome, but if the

Nov, 13 a The sharp uptrend was led by the bank eligible taxables, as the
national income falls much below
mortgage
merchandising deposit institutions scrambled to put funds to work. * . . This buy¬ sible during the. reconversion pe¬ that figure we will be in deep
plan.
This plan is designed to ing pushed the Intermediate and long-term issues in this group into riod. Many heavy industries have trouble. With mass unemployment
The longer partially exempts also to be retooled, changing over from obviously we cannot swing the
f help banks attract mortgage busi- new alltime high ground.
The restricted bonds continued to im¬ tanks to tractors. \ Only a few debt.
j ness by establishing themselves as moved up to alltime tops.
home information centers in their prove although these obligations, aside from the 2J/4S due 1956/59,
skilled machinists are needed dur¬
Change No. 5. The whole world
Nevertheless, it is
f communities and to provide them were still under their best levels of the year.
ing the retooling period;, the rest has* gone collectivist with a rushi.«

; new

;

the means for making ano
t maintaining contacts with people

i with

in planning
homes and for being helpful to
them in making their plans. The
program was evolved by the Ad¬
vertising Department of the ABA
in cooperation with the Associa¬
tion's Department of Real Estate
and Mortgage Finance. The plan
itself
consists
of
a
series of
monthly folders which banks will
mail to their mortgage prospects,
f
In its prospectus the ABA AdIvertising Department points out
] the timeliness of the plan. "There
are
still many obstacles to the
start of construction on a vigorous
scale," it says; "it would require
;some
time to solve the major
problems. This period affords an
unparalleled o p p o rt u n i t y for
banks to inaugurate a plan for
locating and developing the home
prospects in their communities."

| who

■

interested

are

Two

Grass & Co. Admit
Oscar Grass and

Arthur Behal

admitted to partnership
& Co., *115 Broadway,
New York City, members of the
have been
in

Grass

In the

New York Curb Exchange.

past Mr. Gruss was a

partner in

expected that the non-eligible issues will' eventually make new
highs because of changing money market conditions which will prob¬
ably be more evident in the not too distant future.
.

market

bond

ment.

to be a leading question today. . . . Many and
have been put forward to explain this new develop¬

seems

reasons

;
It may be due to a combination of factors, but the real
motivating force at present is the fear of higher prices and lower
yields.
This condition is not dissimilar to that which prevailed
at the end of the Sixth War Loan, when the fear of higher prices
resulted in a rise in Government bond prices that carried them to
new high
levels.
; :•
.

...

One

■

of the most

higher prices

important reasons for the belief

in the making, as in

are

now

the past, is due

that

to the

that there will be another change in the Treasury's
method of financing.... The indicated revision' in the pattern of
finacing will no doubt tend to further relieve the debt burden,

opinion

since the Government is definitely not in favor of higher interest
rates.

PATTERN

The Treasury,

through the Sixth War Loan, had a set pattern of
financing the war deficit with the securities offered, in addition to
savings bonds and tax notes, consisting of %% bills, % % certificates,
eight to 10 year 2s and the longer term 2Vzs... . The,_%% bills were
intended for the banks, primarily the Reserve Banks, the %% cer¬
tificates for the large commercial banks and corporations.
The 2%
bonds, sold originally to everyone except the commercial banks,
ultimately found their way into these institutions.
The long 2V2S
were
for the large institutional investors, notably the insurance
companies and savings banks, and were restricted as to market¬
ability.
"
'
r
- f:
]
1..
.

nancing

principal criticism
was

savings
profit.

equipment

time

that

of this

system

fi¬

that the 2% bonds eventually found their way into
banks, and the life insurance companies and

banks

traders

heavy

were

...

place when the

new

ment bond market was

these

obligations

were

offered.
.

The Govern¬

practically all issues.

were

not

allowed

This created

upon

banks.

§ especially the bonds,..,:

Complete dollar appraisal
each June 30 and

December 31.

;

The

refunding of the partially exempt 2%% on Sept. 15 with %%
certificates, and the Victory Loan terms and issues, gave furtner
proof of the Treasury's intention to cut the debt burden, through
the sale of low coupon short-term obligations to the commercial
banks...
There are no issues in the present loan that can be
bought
by the commercial banks in the open market after the drive is over,
.

Special

^ v

means

that

deposit institutions, in order to get a larger income than is available
in the short-term low coupon
securities, such "as certificates" and
potes, have to purchase the Outstanding bonds.
Such buying has
been reflected in the sizeable rise that has taken
place in the price
.

Appraisal

of the intermediate; and long-term issues.

Our

experience and facil¬

ities at your

The lowering of the yield of the bank
eligible bonds is ber
ginning to affect the longer term restricted issues, and the dif¬
between

these

will

groups

doubt

continue

decrease as non-bank investors take
advantage of
return.that is available in the ineligible obligations.

the

INCORPORATED'

responsible for the opinion that there will be another
change in the

PHILADELPHIA

NEW YORK CITY

' •'

financing policy of the Government.

Pennypacker 7330

Two

The political importance of

interest rates and the apparent desire of the
Treasury to alleviate the
debt burden, raise the question as to whether the
lowering of the cost
of carrying the debt will be
entirely at the expense of the banks. >
In certain quarters, the
opinion is held that the post-war pattern of

financing

'";■

may

be somewhat

follows:

private wiresNew

in the history of our coun¬
With their families, veterans

group

try.

destined

are

York

Teletype—PHLA 296 & 297

Treasury bill will be available

i*rL'

in the past.

probably

from

yH % to either %%

/v/

•

J«

%%.

reduced

be
-

the
*

Problems Solved by

Full

Employment

addition

basic

six

these

changes, which are going to make
mass
unemployment more diffi¬
cult, we should remember the

Early this year in 1945 we had
super-full employment with 65 many problems which full em¬
million Americans at work or inl ployment goes a long way towards
solving, such as:
f
the Armed Services.

employment automati¬
cally brings high levels of exports
and imports and is probably the
best
single move America can

Employment

Having cleared the ground, let's
go back to one of the main ques¬
tions: Is mass unemployment pos¬
sible?
We had it from 1929 to
1941
with anywhere from sevm
15

million

make

unemployed—why
least

are

3.
duce

trade.

farm¬

Full

employment tends to re¬
strikes, lockouts and labor

unrest—at
1922 to

least

We have proved

can,

•

are

Pressure

what is physically possible
financially possible.
Our only
limitation on building tanks, for
instance, was not money but men

Sixty

are

,■sy*

million

best

nation generally.
7. The threat of

for¬

bad.
groups

battalions. 'J

that

mass

the

likely to turn the heat off with
full employment.;
Depression is
a
great breeder of the me-first

We have proved

The

,.7

restrict

from

tends

when times

satisfaction
that
be abolished
organize to do it as in the

everyone's

materials.

did

1929,

mation of monopolies and cartels,
which
always are more active

not be tolerable now.

Change No. 1.

world

their jobs they will buy the

six

good reasons why not again. The
world
has
changed more than
most of us realize since the day
the Panzers marched into Poland.
What was tolerable in the 1930's
may

stabilize

er's crops.

there

think

It's the best program for agri¬
culture. If city folks are secure in
2.

again?

Full

jobs

known solvent for

race

ithe

are

fric¬

tion, anti-Semitism and discrimi¬

the

oeople will not, I think, soon for¬
get this.

7V
a

dictator and

into

the

realm of the impossible-with

full

Fascist

State

fades

No. 3.
The war has employment. Hitler, never forged
that we are a 200 billion took over when one matt out of
dollar a year country, not 100 bil¬ three
in
Germany was unemf
lion which everyone' thought the ployed/1-/;' ^ c
1^777/' -rJ :f
limit before the war. In 1944, we ;.
The Present Outlook
produced as much in the way of
jNow, lot's turn to the present
civilian goods as 'in 1940, plus as
outlook. Are we ih for a boom or
much more in the way of war a bust?
Our present situation is
"roods.
This/means we can dou¬ precarious, as'the strikes show: If
ble the prewar standard of living
the timing is wrong, if Congress
any time we care to put our minds
fumbles the ball, we could drop

Change

taught

it.

•

;

into

(.
1

Change No. 4. We will finish

re¬

fear

headlong depression.
The
depression can bring de-

would be used in place of an intermediate term obligation. . . .ui
If:there should be need for long-term financing either a 2% or :-i...

As to whether the Treasury

issues long-term securities to finance
the deficit, which would be sold to the insurance companies anpl savf
ings banks non-deposit creating institutions, would probably depend
upon the need for inflation controls. ...
'
'
,

TREASURY HOLDS THE

REINS

The issuance, of short-term low coupon obligations,

principally

certificates, to the commercial banks for refundings and
money
will in itself cut the cost of the debt. . . . On the other hand, a re¬
duction in the certificate rate from Vs% to %%, as is being presently
talked of in the financial district* would .result in. additional large
-

The one-year certificate of indebtedness would be the
principal
means
of financing, but the rate would

half

control

nation's vote.

annual savings to the Government.

Philadelphia,

suspects, the most terrific pressure

2U% issue would seem to be indicated in this plan.

This decrease in the yield of th6 bank eligible bonds, .which is
bringing down the whole level of interest rates, along with the lessen¬
ing needs of the Treasury for new money in the future, is largely

STROUD & COMPANY

REctor 2-6528-29

the. children decently in
place. You can't do it on
We have here, one

week.

higher

AT WHOSE EXPENSE?

decent

$25

to it.

disposal.

ferential

bring
a

war.

FURTHER PROOF

have

Number One objective of a good
job on which to start a family and

definition of full
employment is what we had in
1929 before the crash.
Just point

Change No. 2.

other than the % % certificates of indebtedness. /.-. This

Finally,

and

Appraisal

into" thfc

goes

to 15 million strenuous, com¬
bat-trained 'young
men
coming
back into our economy with the

Another good

-V

This new method of financing was the first indication that the
Treasury intended to alleviate the debt burden at the expense of the
commercial banks.
The savings banks and insurance companies
were still offered the
longer-term high coupon issues.
.

still

enterprise

If the U. S.

Change No. 6.

Semi-Annual

Monthly

free

for
starting in 1950 or
so, divide roughly into 42 million
at work for a boss; 14 million (in¬
cluding the farmers) working for
themselves; two and a half npllion
in the Armed Services; a million
and a half in the ranks of the
"frictionally" unemployed.

unemployment

...

issued

Further¬

given Monday morn¬
ing there will be at least a million
and a half workers moving from
job to job, the so-called "frictional"
unemployed group, and
not on anybody's payroll.

more, on any

of the intermediate and long-term
securities that could be bought by the deposit institutions and
caused a sharp increase in the price of Government
securities,
shortage

Valuation <and

keep everybody busy who wants
to work, including farmers and

changed

drive by the commercial

Gladly furnished
request.
r •

was

buy the 1 V2% bonds, while commercial
banks with time deposits. could purchase only,-limited quantities of
this obligation.
Although there were no restrictions on individual
purchases, nevertheless it resulted in a much smaller amount of
the 1V2 % issue being
outstanding, that could be bought after the

Weekly List

Monday morn¬

self-employed workers.

earth with the ide¬

old prewar cycle of boom and de¬
pression, it will be sufficient proof
that the free enterprise idea has
failed.
Intelligent U. S. business
men are well aware of this, shall
we
say, competitive urge to full
employment.
•
*
f

ing. It means enough work which
somebody is willing to pay for, to

firm bids on

ing a time clock on

not

by the Treasury, when the 5^-year 1%% bond was offered in place
of the eight to 10 year 2% issue.
Insurance companies and savings
banks

be careful

also

Factors for Full

knew that substantial sales would

banks

securities

orderly and stable.

With the Seventh War Loan the pattern of financing

;

Immediate

strong.

THEN THE CHANGE

Offerings Wanted

of
the definition.
Full employment
does not mean everybody punch¬
must

Nevertheless, it prevented the outstanding issues from going too

.Jiigfi in price because the
take

nation left

ology

commercial

the

French, show the U. S. is the only

60 million jobs

ORIGINAL

THE

The British elections, arid noWthe

their heels. / While

them, they should have un¬

The estimates we hear about

...

The

certificates

cool

willy-nilly, have
they

the workers,

cool
2.

What has caused the recent marked advance in the Government

:Gruss Bros.

III trust!

employment insurance.

WHAT'S THE ANSWER?

varied

■

There Is

doubt It could be done if the Treasury so desires,

since the level of interest rates

will be wherever the Government

five-year 114% note

wants them to he.

;

■vy.

■"■-?■■•>.

'',...

v- e

THE COMMERCIAL" &

W<v„v

FINANCIAL" tttRbNICLTE
.

pression. These great: savings they
talk

about

will

be spent ex¬

not

for the barest necessities if

cept
ies

savings

well

pretty

are

trated

the

concen¬

brackets

upper

where people are looking for in¬
vestments more than for new re¬

frigerators and dining room sets.
We might have a boom, but it
Would be short. Personally, I am
•

lar

afraid of deflation than

of inflation.

Uncle Sam is

pulling

75 billion dollars out of the

feet
to

orders

as. war

mar-

Nobody,

cease.

knowledge, has made any
adequate plans to replace that 75
my

billion

a year.

Meanwhile,

will be lucky if
we hold 10% employment in aircrafty shipbuilding, machine tools,
light metals and munitions...
we

The' official

public
health, i social
conservation, and now,
most important of all, scientific
research, which businessmen are
not
interested
in
providing as
there is
>

immediate profit.

Americans

are

not

;

allowed

develop reasonable plans in ad¬
vance, such as Sr-380, after a bout
of WPA improvising, we can ex¬
pect-; some
very
unreasonable
plans indeed.
They will, I fear,
take us far along the totalitarian
road," under heaven; knows; what
leadership.'- k
^

men

Albert Frank Agency

to die

in, why can't
it keep prosperous making homes
;'1 Gilbert E. Busch, former staff
for people to live
;
No amount of verbal argument correspondent and financial writer
for United Press Association, who
along the line that "Peace is dif¬
was
recently released from the
ferent" is going to keep thai ques¬
U. S. Marine Corps, has joined the
tion down.
What are we going to answer advertising firm of Albert FrankGuenther Law, Inc., 131 Cedar
the young
Street, New York City, as an as¬
sociate on the publicity staff, EmWalter Felter Rejoins
mett
Corrigan,
Chairman,
anus

Staff of Taussig, Day

'nounced.

ST,

1—

•

■

*7'

successful

will

reconversion

the total.

But if

the

company.

r.•,■>'

check

think

for
as

The

FRANCISCO, Calif.—Auengaging in
the investment business from of¬
fices at l30 Sutter Street. He was».
relius F. deFelice is

Mr. Busch

was

associated with

LOUIS, * Mo.—Walter
E.
the United Press organization for
Felter is again associated with
more than nine years before en¬
Not long ago X went out to an
Taussig,' Day «&' Co., members of tering the service in
February,
Army camp to lead what they call
the
St.
Louis
Stock Exchange,
11943. In the Marines,: he served
GI bull - session on post-war
after Vhaving served three years ias an aerial navigator in; the cenproblems, ; Again and again, the
question came
back t from
ser- in the armed service,
«
tral and western Pacific areas in
,

formerly with the U. SI Maritime
Commission.

addition to handling
lic relations;

re¬

eight

method

chiefly advocated for the United
in

years

known

Sweden

and

compensatory econ¬
omy.
Many experts have defined
it, but Governor Dewey's defini¬
tion is

good

time there

any

the next: "If at
not sufficient

are

jobs In private employment to go
around then Government
must create additional

tunities."

and

can

job

oppor¬

; •<

It is

something like the thermo¬
stat control on your oil burner.
When the economic house begins
to grow cold, let the Government
spray additional purchasing power
into the system.
When the house
gets too hot, turn off the purchas¬
ing power, via taxation, and pay
-

off

some

m^wzfrn

•:,- /

of the debt.

A bill has

passed the Senate by

large majority embodying these

principles, S-380,
the so-called
Murray Full Employment Bill. It
is endorsed by President Truman,
Secretary Byrnes, Secretary Vin¬
cent, Beardsley Ruml, Mark Sulli¬
van, William Hard, and X would
guess by the majority of all Amer¬
ican economists. Only very preju¬
diced and very ignorant people
can credit Moscow with its origin.
The bill does not provide for
any specific measures for keeping
employment high; rather it states
•

then makes both
Congress respon¬
carrying out that pur¬
The idea is that the Federal
and

purpose

President
sible

and

for

pose.

Government is to make

that

sure

enough orders to main¬
tain substantially full employment,
while businessmen, as heretofore,
take full charge of production.
Whatever the cost to the taxpay¬
there

will

very

small

OtHNESS

com¬

:ne

The crash of 1929 cost
much as the
100 million men

substantially

war

can

pared with the cost of a real de¬

pression.
us

match tts

are

ers,

cost

—-

of work lost through unem¬
ployment to a value in goods and
services of nearly 300 billion dol¬
years

lars.

can

excel ttSj

KMOCKhESS
cyUMPerS

r,v ..1;,.'.^/'

Favors Senate Full Employment
Bill

Nobody;

can H

know

for ;sure
powerful
enough engine to produce full em¬
ployment, but it seems the best
plan to try first.' It is a demo¬
cratic
solution -r- nobody
gets
pushed around, and it keeps Gov¬
S-380

Whether

activities

ernment out of most

rfVr^fiM^fiW

ex¬

cept a program of fiscal insurance.
,

For

Some people feel that the Gov¬
should do no planning

ernment

all,

leaving

Alvin Johnson

the
once

and^the National

economy,

Manufacturers. But modern

of.

best gasoline you ever

omies, if they are to. remain de¬
.

sons:
'

1. To

afloat.

keep

the market system

In 1932

our

business sys¬

nearly empty—then fill up.

Compare its action against the-

.econ¬

mocracies, must be planned at
certain key points for two rea¬

Dynefuei with others

gasoline. Wait until your tank

said, to God

Association

results, don't dilute

best

Sunoco

•'-:

*I ■!?.-"

•'■'.:

;

de Felice - Opens

States has been well tried out for
many

SAN

the spiral and
permanent- full
defined earlier?

can.

.y;

Checking Booms and Depressions'
Can

Co., 1 Wall Street,:
York City, announce that
Capt. Edward Williams, U. S. A^and Thomas Watson, U. S. C. G.,
have returned to their respective
positions in the trading' depart¬
ment and contact division1 of the
J.-B, Roll &

New

million frighten the rest of us into
reducing our spending, the ter¬
rible downward spiral can begin; •;

really, plan
employment

"•

J. B. R61I Co, Staff

ington is for eight million unem¬
ployed early next year.
Then a
duce

•

Williams &. Watson7 Rejoin

Wash*

outlook

Gilbert Busch With

down-swing starts.; AIL stud-, defense,
show, furthermore, that the security,

the

tem-was-six billion dollars in the geants, corporals, enlisted men, to
red.
" vd;... rt i. •; y* .v'
;:. :this effect: "If the country can
i 2. To provide certain services—-: •keep prosperous making tanks for

'•*'

■:

used.

-•.

''-'4

Marine pub¬

y y-'

-■L v.\'

the

excess profits tax alone elim¬
inated,
these
same
companies
could show, on the basis of last
year's pre-tax earnings, a net of

$7.62

per

for

the

common

stockholders, or 63% higher than
reported earnings;
r
Writes Keynotes:
"There is a
four-year, deferred demand for
,

Investors
*

Syndicate Changes Hands

;

Minneapolis In¬

Control of Investors Syndicate, long established

of Investors Mutual, Investors Stock
Selective Fund, has been acquired by Bert C.

vestment Company and sponsor
Fund

Investors

and

acquisition of a

•Gamble, President of Gamble Stores, Inc., through

majority of the common stock.
I
>
r
.Mr. Gamble commented.on the acquisition as.follows;.,
"For sometime I have been per-<$> ■ ;
: - ->■ -■■■
aonally interested
in Investors'
Syndicate
from
an
investment
standpoint.
For the last seven

"In

entirely personal affairs' -and

are

whatsoever

manner

re¬

association'.with
Gamble Stores,
Inc.;, nor with any
of my other interests." ' .*
* ." **
by several different groups.
I
" The present management of In-,
have purchased the majority of
vestors Syndicate will remain un¬
common-stock as a long range in¬
changed.
lated

'to come.'

are

controlling stock interest of
Investors Syndicate has been held

peacetime goods, and an unprece¬
dented yoturned of national savings
to
satisfy these demands—facts
i which point to a high ^level of

j business .activity for several years

dicate-and purchase of its stock

years

view i, of

these

prdspects

many corporations should be.able
to
approximate .their
wartime

earnings "before', taxes.... Even" if
earnings are: lower, the

gross

duction of taxes could
a

re¬

still leave-

.larger, net for shareholders." "

vestment.

My interest in the synUnion Common Stock Fund
"The

story

Union

Fund"

Stock

the

the sponsor.
"The

Common
of

title

story of Union Common

story

bright
It is a

than

of good earnings and a
outlook for dividends.
story of basically improv¬

ing investment quality."
The Fund is likened to

manu¬

facturing company and the basic
improvement in investment qual¬
ity is compared with the retire¬
ment of some of the bonds and
preferred stock, leaving the com¬
mon
stock with a much larger
proportionate claim on earnings.

*'400000*00000000000000000*,,0000000000000,,000000,0,/,

A PROSPECTUS ON REQUEST FROM

YOUR INVESTMENT DEALER OR

Distributors Group, Incorporated
<53 Wall Street

New York 5.N. Y.

•

and preferred

stock of the
25, companies now held in UCS
was
reduced 13%, resulting in a
•16% drop in fixed charges arid
an equivalent gain in investment
position of the common stock. •

which

ice

begun

was*

1937

> \

methods

investing.
forecasting

Various
dis¬

are

weekly Investment Timing serv¬
ice are explained.;
Additional copies of this inter-esting booklet are available upon
written request to National Secur¬

ities & Research Corp., 120 Broad¬

New York City.

way,

;

York Letter

New

Hugh W.

Long

Co.

devotes;

the current issue of the New York
"Letter"

to>

'analysis

discussed.

are

establishes

of them

Each

level

market.

fhis;jques|

Several; approaches to
tion

of, the;

of -the

position

present

.''around;

the Dow-Jones Industrial

rational goal for" the

as a

r-^WVfY*

current bull market.

separate tabulation the per-"
formance of the various industry

stone S-l—a list of 30

NATIONAL

stocks

$13.07

per

and

high-grade

Securities Series

the

of New

series

average

share before taxes. In¬
excess

Dow-Jones

LOW-PRICED

Distributors

NATIONAL

live.

Development
The "devel¬

Prospectus
$

*»

may

be obtained

(

from authorized dealers, or

>■

addition

substantial savings in taxes.
to

this

railroads

the

have

these facilities
'4i'

•

Distributors

will.be
t,

one

stocks
Stock
for

owned

are
-

refunds

$11.23

"T.-*

General Distributors

Exchange Place
York

City 5

Teletype ny-l-2439
MANAGEMENT OF

KARL D. PETTIT & CO.

will

Railroad

as-

claims

have

much

$10

per

their

(averaging

share) last

year.

Company Reports ^

Keystone Custodian Funds, Se-:

Request

Knickerbocker Shares, Inc.

New

jpfir share of; outstandpg capital
Y-V,

stock.i

d'Y.'-. '

..V.

„VV

Prospectus

from

your
v

Tke

si,..

be obtained
-

•

1942,

has

Squier, Manager sincebeen named assistant

director.
_____

Col. Kissam

Rejoins
Garey, Desvernine

Pacific, has re-,
of law at 63
Street, New York City, as a*

cluded duty in the

'sumed

the practice

Garey, Des¬
Col. Kissarr^
Special was formerly engaged in private,
month-end prided com p a r i s o n practice in New. York City; - he:
showing performance of all classes acted as counsel to the group; of
of Group Securitiesv Inc.; General
motorists and successfully pre^Bond-' "Shares ;
portfolio , folder. Vented a toll for the use of the
Brooklyn Bridge; he also acted lis
.counsel to the Judiciary CommitYYNa^i^lY-S^uritkes":&;
search Corp..— Current Informa¬ ;tee of|the House, of Representa-.
tion ; folder for November on all lives in the investigation of the
Naiidnal^spqifsqf ed^^ Yf imds; £ port^ lE^ehalv arid YJe^uity, C receivefshi]^
folio ^memorandum-- showing Situation
in
the -U.
S. District
changes
in
National-sponsored Court for the Eastern District of
funds during October; current is¬
New York.
general $ partner of
& Kissam.

sue

Bill."

Timing

dis¬

Reconversion

Tax

Investment

"The

cussing
>

Keystone Co.—Current

Cus¬

Data folder on all Keystone

Lord,

vernine

Group ]—;

Distributors

November.

Donald Royce

off Abstracts; Invest¬

ment Bulletin

Stock Fund

November;

for

funds

sponsfored

cur rent, issue

Union Common

listing issues held. . . .
gales Corp.—Cur-

Street

Broad

Heads

California IBA Group

Abbett—Composite Sumvfolder on all Lcjjd, Abbett i

jriary

r'.-:

LOS

the

annual

;

CALlf.—At

ANGELES,

of the

meeting

Cali-<

Group of the Investment]
Bankers Association of America,.

ifornia

Donald Royce of Blyth & Co., Inc4
was
elected Chairman.
Clay H~

time

°f boston

Congress Street, Boston 9, jMass.

;-iYYY:YY:vYj};YY;:

Hare's Ltd.—Leaflet en¬

"Leading
to

New IYork City
.-Fully! in Peace-

Prosperity."

Dividends

Y Wellington Funddividend

Dec.

net

♦

readized

esti¬

f.
K

ended

-Y?

^hiimatt;: Agnew.&Co.-

'
assets

Sept.

the

30,-1945

$2,605,229 as com¬
pared with $1,202,349 at the be¬
ginning of the period. The mar¬

Stanl^y-McKie Acquires

recently declared by the directors
retary
of the; Weil,
Roth;;
Group Securities, Iric., payable
frying Co., , D i jcie ; . Terminal;
Nov. 26 to shareholders of record
Building, has Y been ' elected
Nov. 10, will total a record figure

$2^228,000.-Of this amount $1,689y0OO will represent, extra divi¬

vember.

by $4,781,022.

Russell

cost

year

are

& Co.; L„
M. Kaiser, Kaiser & Co.; John F,Kelsey, William R. Staats Co.;
A. C. Purkiss, Walston, Hoffman
8c; Gpodwin^.and J-vR-( Shumsui^

75c

90c

Committee

Group pecunties
CintiExch.Membership Y:
Dividends
Y{^:r
YYCINCINNATIY Y OHIQ-^Stanley;
f Thefourth ^quartqrp^ dividends |McKi^ YicCrPresident Yand % Secj--}

months

amounted

the-

Evans, Nelson Douglass

15c
~

J..

;\yell,

securities

profits

;

•

;

membership

Committee were B.

Executive

the

net income

ordinary

From

fester, Lester & Co.; F.

Per Share
From

of securities owned exceeded their

fiscal

Elected

follows:

ries B-4—Net assets at the fiscal
dends payable out of net realized
:year ended Sept. 30, 1945 .AVTere-> -"securities: profits. The • balance; of
$19,818,875 compared .-with $15,- $539,000 will be made up of reg184,207 a year earlier. At the end ular dividends -.from net invest¬
of the fiscal year the market value
ment ; income v covering
the two

'Series* S-l—Net

Treasurer.

O. MaxMaxwell, Marshall & Co.J
,#ruce McKennan, First California
|Co., and J. C. Youngberg, Stone
year-end ;& Youngberg. Other members of

V Y"

■

paid

record

stock

mated

Impor¬

Seemed

Things
.

Keystojie .Company

Vi*'. -OYY50

may

local investment dealer

Edith

Wall

Mtitiml^ndf Literature

necessary.

earnings
per

Investment

Mr.:

during

Finance

computes

averaging

share—nearly
annual

unds

director of the New Yorkr;

•

Group

i that* 14 leading railroads whose

.In the
Trustees

-—

$2,929,242, equivalent to $15.77

Banks

•

However,, the only real change
in railroad earnings this year as,a
result: of this development kwill

Transport Service. ■ ; :
)
' Mr. Robert Cluett, 3rd, who has:

of
New
England Fund, cover¬ j
Lieut. Col. Leo T. Kissam, after
inghirie^ mphthg ended Sept. three and one-half years in - the
30, 1945, net assets were shown U. S. Army Air Corps, which in¬

titled

any

years.

large claims for tax
refunds imiprior years and will
have
their
new
facilities
fully
paid for so that no further deduc¬
tions against future earnings for

Knickerbocker

of his investment.

and progress

sim-

will

CHICAGO 3, ILLINOIS

Supervision and Safe-keeping

Union Trus¬
is beauti¬

fully illustrated with photographs
and
charts designed
to help a
shareholder understand the nature

tant."

135 South U Sails Street

Diversification,

this

Incidentally,

"These*

will-be

stantially lower than for

SELECTED INVESTMENTS COMPANY

Prospectus

3,065,242
820,439

UCS

.sqb-^

year

ilar_period in recent

of Investments

cVf." UPS

run

Squier's absence, will assume thei
position of Chairman of the Board!
of Advisors of the Institute. Miss;

2,291,383

ported earnings, for the last -four

120 BROADWAY

for the

UBC

Institute

1,267,591
^

and for the past
navigator on the trans¬
of the Naval ' Air

Training,

atlantic

served
$768,598

—

months of this

RESEARCH CORPORATION

The

UBA

follows:

five funds as

Air

year as

Sorrick of Dean Witter & Co.^(
emergency." As a* Yesult l)f this*, rent issue of Items showing the
proclamation, the railroads - will performance
—
~
records f of Broad San FYahciscd; was; ji$med Vice^f.
take "advantage
Street Investing Corp. and Na¬ Chairman, and H. P. Schwemmer,
of speeded
up
amortization
of 'wartime
emer¬
tional Investors Corp.
Selected of Schwabacher & Co., San Fran-;
was " chosen
SecretaryInvestments Cci.—Current issue of Cisco,
gency expenditures and their re¬

american

SECURITIES^

New York 5. N. Y.

reports growth in net .assets from
$6,315,554 to $8,213,253.
These
assets were divided up among the

todian Funds for
t

in a" new
Railroad Stock Shares,
Group,

is President Truman's
proclamation of-the "end of the

dealer fit K

your, investment

Vthe

over

opment"

Selected

Prospectus upon request from
v

Averages
*, ' t--7

that Looks Bearish."

Priced at Market

over

Bullish for Rails-

With

stockholders.

period.

same

discusses "A Bullish

Stocks

pared with the movements' in the

mailing

STOCK

York

earned

common

•<•*

the past year are shown and com¬

profits taxes ac¬
counted for $8.39 per share leav¬
ing a net of $4.68 per share for
come

Last year these

stocks.

common

period from Jan. 1, to Sept. 30;
1945, Union Trusteed Funds," Inc.

analyzes the effect of the new tax
law on the stocks held in Key¬

of the

N. Y. Finance Inst.

.the conclusions which J New 7 England Fund
in
National
Securities' i56th
'Report M of
the

% The current issue of Keynotes
One

cussed and
resulted

Squier Returns to

exceeded their cost by

teed Funds, Inc. report

Throughout the booklet "tim¬
ing" is stressed as the important
factor

of securities owned

1945

$394,638 as of the fiscal year-end.
Y Net assets of all 10 Keystone
Funds are reported to total more
Lieut. Albert P. Squier has been
than $145,000,000 at the present
returned to inactive duty by the
time. ,'%
-vf / ..
j.UY'.S; 1 NavyYand willYresume His
Wellington Fund—In its quar¬
duties as director of the New York:'
terly .report for^ Sept. 30, 1945, Institute of Finance. Lieut. Squier
Wellington Fund shows total reentered the naval service in De¬
sources. amounting to $22,990,734,
cember; 1942-. After nine months.*
an increase of $1,904,841 over the
training in various. Navy naviga-*
figure at June 30, 1945. The report tion schools, he served as instruc¬
also shows that the equity por¬
tor in' aeriel navigation at Perisa-'
tion of
cola,-as a member of a committee
period to 63.49%, or an increase which -revised the navigation cur¬
of about .,7%%,.,....
riculum for the advanced stages of
Union Trusteed Funds, Inc.—In
Navy pilot training, as a member
the Annual Report covering the
of the staff of. the Chief of Naval-

two-year research survey under
the direction fo Dr. Frederick R.

Average

this Fund

250"

Keystone S-l

1 '

giving the.history of that
sponsor's Investment Timing serv¬

Between 1939 and 1945 the total

debt

National Securities & Research
Corp, has issued a well-illustrated

Macaulay.

Fund

Stock

STOCK

Investment Timing

value

ket

booklet

interesting four-page memoran¬
dum just released by Lord, Abbett,

Thursday, November 15,

THE COMMERCIAL & FINANCIAL CHRONICLE

2342

ities ?
Nov.

^membership in the / Cihcinriati;
jStock Exchange.* Bernard J. Baff
lage, Jr., was named as an alterL

jnate. to: trade on the Exchange,
under

a new

ruling.

W. Lepper of

Y L Y Y-^
A. Lepper

Co. was appointed to the BoardDavis
period October and Nor lof'Trustees; td^succeed T;
who ''resigned. Y'
-Y. V
-

change in the Group Secur¬

ysar-ehd ^ frdnijf Dec; ^31 to
30, accounts for the short

investing
in size

company

were

each

automobile

quarter

cents

single

and food shares.

this time.
The largest
dividend was $1 extra on

shares.

Next,

total dividends of 50

tVolume 162

THE COMMERCIAL

Number 4438

& FINANCIAL CHRONICLE

2343,
wood

our

country until more recent
Present forestry methods
extremely wasteful. In many

are

(Continued from page 2327)
the

saw

organisation

the

ful of

In-

major benefits in the fu¬
cooperative efforts

ture from the

ternational Paper

Company, Great of the war period and the con¬
r
Northern Paper Company, Oxford tacts and friendships established.
f Paper Company, St. Regis Paper
Integrated mills owning timber*•"
Company and the West Virginia lands and pulp mills were obliged
j Pulp
and Paper Company, and to help keep non-integrated mills
j

7 when

the

total

year's production

of all grades of paper amounted to

only z,167,000 tons
to

and

consisted

large extent of newsprint and
Practically no wood
pulp or paper was imported into
the country. The average per
cap-,
ita consumption at that period was
only 58 pounds, per annum.
a

book papers.

By 1916, the year I first became
connected

with the paper indus¬
substantial development of
the industry in the Middle West
and Lakes States had occurred
and the United States production

try,
:

had risen to 5,500,000
imports into the country
amounting to 600,000 tons per an¬
num. Per capita
consumption had
jumped to 115 pounds per annum.
paper
tons with

By 1929 the industry had pushed
into the Pacific Northwest and to
a
lesser degree into the South
and the newsprint production had

largely migrated to Canada.
production of paper

nual

reached

11,140,000

An¬

tons.

consumption had come
'.pounds per annum.
-

1941
reach

up
~

the

feaw

capita
to 220

per

paper* industry
annual all time high pro-

duction

at 17,762,000 tons, with
imports also at a record high of
3,120,000 tons and per capita consumption up to 309 pounds per

;

annum.
The expansion of the in¬
dustry into all sections of the Na¬

tion

had ; occurred,

climaxed

./the phenomenal growth and

by
de¬

velopment in the South. The use
pf the southern forests for pulping
purposes

had

been

delayed

be-

) cause of lack of technical knowl¬
edge; for utilizing the wood species, but technological develop,;f ments in
the 30's had
brought
about a swift change and today
Southern
paper
mills
produce

•

27.7%

of the total

United

„

Since the establishment of
1941

high

production

■World War

has

the

records,

reached

the

United States, with shortages of
labor and raw materials and con¬

sequent curtailed production and

consumption, coupled with Government controls of the manufac¬
ture and use of paper products.

In spite of the many difficulties
of the war years, it has been pos¬

reforestation

employment in the
pulp and paper industry stood at
125.8 against all industry in the

have been lost in one day if the
supply of pulp and paper in this
country had been cut off.

Those of

2,700,000 tons have resulted.
capita consumption has lev¬
eled off around 285 pounds per
Per

annum.

The War Record

received

from

the

'buy

debt

them

for

civilian requirements of

satisfactory, basis. This
accomplished in spite
material shortages
and a complete cessation of wood
pulp imports from Scandinavia,
which in the prewar period had
paper on a

was

and

fthe industry.

|The

War Production Board,; in

establishing

over

complete

controls

the industry, also drew heav¬

the officials of the vari,;ous paper companies for the adf; ministrative posts in the different
Government agencies, but the reily

upon

7 suits of this action were most ben¬

eficial
;, The
■

to the war

War

Production

contribution.
Board

pro-

{gram

and
policies
developed
splendid cooperation and a better

understanding among the various
segments

and

individual

panies of the industry, I

mediate
be

husbandry;

of: cut-over
and

the

95%

encour¬

lands;

disease

methods

com¬

hope¬

mot

with

use

required

any

internal

for

purposes.

Exports

are

which

Exports of

paper

products from

the United States have

become

when
ita

the

United

States

amounts:
United

Kingdom

152 pound#

Sweden

Germany
France

149

23
12

_______

China

—

Mexico

prosecution of the

___.

Government

controls

The Aviation

almost

are

cation

fields, expanded use of
products in packaging aqd
industrial uses, together with tljtfe
growth of the non-paper wood
pulp uses such as rayon, plastics,
etc., it would seem reasonable to
expect further substantial growth
in the consumption of paper prod¬
ucts. worldwide.

Such

condition

would

require a higher annual
production in the United States,
which might reach 20,000,000 tons
in the next five years. It would
appear
as
though
the
serious
question for the industry during;
the
next
several
years
will bo
one of capacity production.
With
the
expected rate of operation
at maximum efficiency and with
the elimination of excess profits
taxes

corporations,

that the pulp
companies are facing
ous
period.
appear

' *

lJnJ '

it would
and pap^r

prosper¬

sumption

control

order

which

Corporation

$2.25 Cumulative Convertible Preferred Stock

reserving
a
reasonable
covering Govern¬
a newsprint con¬

(Without Par Value)

< /

not

expected to continue beyond
December 31,1945. The latter.or¬
der was kept as part of the Gov¬

cooperation

with

control

program in effect
Dominion of Canada.

The Post-war

the

Price

the

$56

per

(plus accrued dividends from November 1,1945 to date

of delivery )

Outlook

This brings us in our considera¬
tion to the post-war period. What
does the future hold for the
pulp
and paper

industry in ,the United
Department of Com¬
merce
published a; world pulp
and paper forecast, which contains
the following statement:
r
States?

offered for subscription at $50 per
subscribed for by stockholders
7/or their assigns and 2,000 shares have been reserved by the Company for possible issuance
to stockholders whose subscriptions were received in irregular form. The 57,049
remaining shares plus the 10,325 shares not so offered for subscription comprise the
shares being purchased for public offering by the Underwriters.

Of the above mentioned shares, 289,675

The

tight market in j paper and
pulp could easily continue
for
three years following the close of
the European War both in the
"A

of such shares

were

by stockholders of the Company. 230,626 shares were

United States and the world.'!
The paper

;

industry is fortunate
having practically no recon¬
version problems. It also appears

;

Copies of the Prospectus may be obtained in any State from such of the several Under*
writers, including the undersigned, as may lawfully offer the securities in such State,

better situated

than many indus¬
tries with respect to a labor sup¬
ply.
Perhaps an important con¬
tributing factor in this regard is
the location of the industry in
the

smaller

States

labor

communities.
statistics

LEHMAN BROTHERS

United

show

em¬

ployment in the pulp and paper
industry to be steadier than in
many
other
industries.
Based

;

November 13| 1945.

•

paper

war.

With the end of the war in
Europe and Japan accomplished,

300,000

success¬

;

generally assumed by the
trade that improved paper con¬
sumption in the Orient is most
likely/
/V;V;/'r
Based upon greater demands for
paper in the printing and publi¬

of such securities. The offering is made only by the Prospectus.
'f

of record only and is tinder no circumstances to he
offer to
'

;

India

_____

Soviet Russia

__________

Japan

102

—

Argentina/—

economic, social and
political problems, especially as
export. While some Russian pulp¬

cap¬

per

was
only 248
the following presented
the per capita consumption in the
countries listed, together with the

consumption

pounds,

many

been,

never

large scale, but exports may
more
important in the
future. As was previously stated,
the United States per capita con¬
sumption has been up
to 309
pounds per annum, but in 1937,
a

offering of these securities for sale, or as a solicitation of an
"

will

forests

these

largely

is
untiring

raw material

Supply to the converting mills of

gratitude

their

major contribution in the
ful

as an

A>''!

and unselfish efforts and for their

of the armed forces
c/and lend-lease, but it was able to

|been an, important

lumber

of insects

few

65%

whereas

Taxes

departments of the Gov¬

ernment.

owed

have

forestry methods

construed
/

quirements

labor

This advertisement appears as a matter

offi¬

cials of the War Production Board
and other

ernment's

The

pulp and paper industry
.may be justly proud of its war
./record, for it not only met all re-

;

States

United

these improved

spent much time in Washington
during the war period appreciate
the splendid cooperation and as¬
sistance

the

compelled serious consideration of

amount of paper
ment needs and

control

but

used.

private

age

than

utilized,

shipped to North

in the industry who

order

record

Furthermore, annual importations

at 60.4. In 1941

tree

are

of paper products of approximate¬

maintain

could

completely eliminated. There re¬
mains only an inventory control

not

cases

representing
100%,
the
paper
industry; in
1932 showed employment at 83.5
against all United States industry

demadned.
by shipment of pulp- United States at 119.8. The in¬
wood and wood pulp.; Many of dustry has. also had a history of
;
Wood Pulp Requirements
the non-integrated mills had de¬ long, harmonious relationship be¬
tween the various companies and ;;;^The present production of pa¬
pended/upon
imports of wood
labor
organizations. per requires the use of more than
pulp from Scandinavia for their the/ union
complete requirements.! War Pro¬ Weekly wage rates in the pulp 12,000,000 tons of wood pulp an¬
and paper industry averaged 92.7c
nually. While the greater part of
duction Board policy finally de¬
this is produced within the inte¬
termined to keep all mills in op¬ per hour against tne United States
sub¬
eration if possible, subject only average for non-durable goods of grated// mills;' nevertheless
stantial quantities
are
to the degrees of essentiality of 87.8c. S
normally
imported from Canada and Scan¬
the products manufactured from a
At this point I should like to
dinavia. Sweden has recently re¬
wartime basis.
This policy aided comment, on
a
radical
change
sumed exports of wood pulp to
which
has
taken
many, communities, tor 75 % of the
place in the
the United \ States and has; plans
paper industry is located in towns South with, respect to wage rates.
for bringing in 550,000 tons be¬
of less than
10,000 inhabitants, The
companies located in. the
fore Dec, 31, 1945. It is possible
and many of these smaller com-? South formerly enjoyed a sub¬
munities would have been in dis¬ stantial wage,, benefit, which in that this goal may .not be reached
if the shortage of ships and man¬
tress without the employment of some cases amounted to as much
power should continue.
The cut
the pulp and paper mills in their as
20%.
This, differential has
of timber in Sweden and Nor¬
localities.
completely disappeared, for at the
way is rigidly controlled by these
Perhaps you may be interested, present time Southern labor rates
governments for the purpose of
are higher than similar labor costs
possibly surprised, to know the
maintaining
a
perpetual
yield
value of pulpwood in the war ef¬ •in Northern mills.
basis.
* Recently
restrictions- in
What of the future wood supply
fort. For instance, one cord of
those/Zeotynfrtes have prevented
pulpwood converted into the bas¬ for the industry? It is estimated the
heavy ; cutting of wood - for
ic part of smokeless powder per¬ that in the United States our pulp¬
pulping purposes because of add¬
mitted 9,000 bullets to be fired wood resources are in excess of
ed requirements of wood •: for fuel
from a Garand rifle; or 42 shells 500,000,000,000 cubic feet, which
due to a heavy shortage of coal,
from a 105 mm. gun; or 24 shells
have an annual growth of 11,000,which
formerly was shipped to
from a 16 mm. gun, A cord of 000,000 cubic feet. The annual re¬
those countries in large quantities
pulpwood produced -4,200 weath¬ quirements of the pulp and paper from
Germany and Central Eu¬
erproof packages for blood plas¬ industry at present levels of pro¬
rope.
are
ma; 3,336 containers for first aid duction
13,500,000,000 cubic
Finland remains an uncertain
kits; 16,444 hospital waddings; feet. Consequently if we are to factor as
yet in the export market
1,500 fiber parachutes; 1,440 anti¬ live entirely on increment growth for wood
pulp. It is expected that
tank mine
covers;
2,148 water¬ in our forests it will require bet¬ most of Finland's normal
exports
tight jackets for 37 mm. shells; ter industry practices to meet the of wood
pulp will be required for
It is believed by
800 warm vests for aviators; 1,560 demand.
im¬ the
present for internal use in the
containers for K rations; 900 tough proved forestry methods the an¬
Soviet Utnion.
multiwall
paper bags for
ship¬ nual growth could he practically
One of the big future uncertain¬
ment of food products,; chemicals doubled. Such results are accom¬
ties is the part which the Soviet
and construction materials; 1,200 plished by selective cutting meth¬
Union may play in pulp and pa¬
yards of ordnance wraps to pro¬ ods in the forests or by tree farms
per markets of the world, for it
tect airplane engines/and 6,120 and by fire prevention methods.
is generally known that in the
European countries have pursued Soviet Union are vast coniferous
military caps.
these practices for many years,
forest areas suited to pulping pur¬
High ranking Army officials re¬
but the abundant forest resources
peatedly stated that the war could
poses, but utilization is entangled

sible to maintain annual produc¬
tion in; excess of 17,000,000 tons.

;

1923

year

operating

States

production and 48% of the
United States wood pulp produc¬
paper

tion.

the

been

ports, the quantity hgs
been interesting rather than sig-*(
nificant and it is generally < be¬
lieved in Washington that the im¬

had
Imports

into the United States amounted to

2,533,000 tons and the

upon

has

Atlantic

years.

EMANUEL 6? CO.

vi V^V'

Bill Kumm, Dunne & Co.: Elmer
& Co.;

Myers, B. W. Pizzini
John Butler, Huff, Geyer & Hecht.

Meyer Willett, C.E. Unterberg & Co.;

George^Frings,

Fitzgerald & Co.; Vincent Fitzgerald, Fitzgerald & Co.

Wilbur Krisam,Huff, Geyer & Hecht; Willard Bastian,
Huff Geyer & Hecht; Samuel King, King & King. -:. ,0

IVolume 162

i-■

B. w;

2345

Number.4438

Pizzini/B. W. Pizzini,&Co.; Ralph Baker,

§ '

Jkins, Amott/Baker & Co.

,"f

O^arie, John J.
V>Johh fe Reilly, J;; F, Reiliy & Co.,1 John J. O* J. Banigan &
.

Amott\ Baker. & Co.; John

O'Kane, Jr. & Co.;-

iC'^.

I C/M. Myers, Bond & Goodwin; King Waldron/'W:
ft '

;

tW
; ^

Willard

Bastian, Wilbuir Krisam, George

Geyer, George Collins, all of Huff,

Geyer & Hecht.

}■-

James Vanderbeck,

Grimm &

Baker & Co.; Xrvin Hood,
Jack Miller, Amott, Baker & Co.
^ ^74

Grimm & Co.; Jack Cusack, Amott,

Co.; Rad Stoll, Grimm & Co.;

J. Arthur Warner, J. Arthur Warner &
Co.; Richard Barnes, A. M. Kidder & Co.; T.

Coj Harry R.^Amott, Amotf, Baker <§r
J. Feibleman, T. J. Feibleman & Co.

\i
Peter W. Brochu, Allen & Co.; C. Merritt Coleman,
31: Allen & Co•
"* '
• ,
' ;

Allen & Co.; Irving Koerner,
^

•>

--•*

Thursday, November 15, 1945

FINANCIAL CHRONICLE

iTHE COMMERCIAL' &
gs—

it is only imports into the United

U. S. Aid

Holds Britain Has An Alternative to
(Continued from page 2325)
our

The first choice

money.

—

the increase in imports — requires
a
flexible
economy
capable of
considerable
adjustment, which

would, however, in the end, con¬
tribute to greater trade and higher
standards of living all over the
As for the second choice—

world.

the attempt to buy power—history
has proved how dangerous and

futile it is for* a country to try to

j impose its ideas and way of life

its debtors

J control.

one

those under its

thing is certain, it

] is that England will not take our
dollars at the price of independ¬

The Alternative to Our Dollars

from

investments.

overseas

today, with her overseas in¬
sharply reduced, Eng¬

But

vestments
land

must

with,

for her imports
To succeed in a

pay

exports.

1 land has
lars.

alternative to

our

dol-

Although

during the last
she has used up most of her

7 years

7 overseas

investments, the income
7 from- those
remaining
is
still
greater than the interest

7 blocked debt.

her

tem

turers of

hundred

coal, textiles, etc., must

their industries and must
acquire modern machinery and
the latest
industrial know-how.
On the other hand, in a closed
economy,
England's
customers
would be forced to buy from her
revamp

could

she

sell her

and

therefore

less

efficiently produced textiles,

then, has an alterna¬
assistance. Quite ob¬

In addition, she has

tive

our

viously she need not give up her
independence for the sake of our
dollars.
One might ask why she
wishes our help.
To begin with,
even
if she did perpetuate the
sterling area, none of the nations
in that

area

could rule out trade

some dollar and other freely convertible currency balances abroad

:
*'

with the United States unless they

tions

use as

working capital.
7; Furthermore, although the Doi minions, India, Egypt, Argentina,
<

and

other

countries

the

so¬

-called
7
*

■

;

sterling bloc have given
England credits of £3 to £4 billion
during the war, there is no reason why such
credits cannot be
expanded to £6 billion, £9 billion,
to

higher figure. 7
7
These countries sent goods to
7 England during the war in pay:■ ment
for which they were given
sterling credits in London. Lack¬
ing the exchange to pay for the
■

even

•

; goods, and unable to pay in goods
| of her own manufacture, v she
■

willing to face the depriva¬
of a
complete system of
autarchy—a system of complete
self-sufficiency such as Germany
were

attempted

i for payment, saying that her cred-

| itors would have to wait for pay¬
ment until she was in a position
i to pay with goods or services. As
a result, her creditors did not re; ceive exchange with which to buy
goods
elsewhere.
Today these
creditor countries have practically

under

with the United

Hitler.

Trade

States and other

countries the sterling block would
be cut to a minimum, however.
The

standard

living in the
sterling block would be limited by
the goods- which could be pro¬
duced within that

block, and for
being the sterling block
would probably retard the solu¬
tion of the problem of efficient
production. With markets in the
sterling block not freely open to
the time

the

"blocked" the sterling credits used

are not only Englishmen
recognize these problems,
but today there is a whole new
group of potential industrial, com¬
mercial and political leaders to
implement their solution.
Eng¬
land's compulsory education sys¬

There

who

world of freer trade her manufac¬

England,

Let it not be assumed that Eng:

come

has,

etc., without competition from the
United States.

ence.
'

many

in the past, bought so
of her imports with her in¬

she

United

States, employment
might be reduced, and, in
turn, any United States markets
for the products of the sterling
here

block would contract.
A dollar

block would

develop,

and

probably

with

increasing
American 7 productivity it would
y

be faced with the
cult task of

diffi¬

ever more

disposing of its prod¬

almost

effect

into

went

later than that of
the United States, so that until
recently her leaders were drawn
almost exclusively from her clas¬
sically educated upper classes. It
is only today that the products of
her more broadened educational
years

system are maturing and that she
will for the first time be drawing
upon the talent of all elements in
her population.
And it is also in¬
teresting to note that there is a
great development of technical
schools in England today which
are open to everybody.

England has the talent to see
and solve her problems in a way
that is of greatest benefit to her¬
self, the United States, and the
rest of the world, but she needs
assistance.

our

shelves

Her

are

consumers'

goods, her
country needs rebuilding, and her
Until she

modernized.

should be

industries

produce enough ex-,
ports to pay for imports, she
needs help to meet the deficit be¬
tween the two.
If the United
can

sume

credit in order to

in three

dispose of their
products, than to burn up their
products or throw them into the
se?..
Blocked sterling is better
than nothing.
•
7
n

England, therefore, has it in her
power

carry

sterling

area.",

the

Her

existing
economy

would obviously' be restricted if
She traded within such a limited
L sphere.. ..Obviously
the 7 United

States would not be in the "sterl¬

ing

area,"

and

Australia,

India,
Argentina, etc., could buy less and

i, less, from

usx^ux-'

years

all it

interests are not
necessarily iden¬
tical with ours and that

Russian

area

difficulty to

can

con¬

produce.

But here,

mutually exclusive areas,

would

have

all

and rivalries which

the pressures
make for bi¬

lateral

treaties, trade wars
eventually military wars.

and

modern

machinery can be purchased, and
England does her share in re¬
organizing her textile industry,
England 7can
produce
cotton
cloth more quickly and efficiently
for India and will have exports
with which to buy imports from
India.
If the textile worker, pro¬
if

ducing more efficiently, gets a
larger wage, he provides a greater
market not only for English but
American and other goods.
And
so a cycle of trade is started which

a/lows for expansion £pd is not
rfatrire limited in

by its

full of the seeds of

scope

and

war.

that

the

trade

total

For it is

war.

all

fact

multilateral

always greater than the

of all bilateral trade.

sum

to- maintain

and
on

stable 'economy

that should England
depend
exports to the United States

Revamped

England
that

she

must

general

aware

for her des¬
perately needed imports with ex¬
ports produced only through hard

been

possible for her to ignore
long time the pressure to
produce exports on a competitive

for

basis with other increasingly effi¬
cient industrial countries because

would

and

rest

have

we
as

the

world

provide the

Unless and until

well.

repaid,

are

effect, given
us

dollars to buy jour,

away

our

have,
goods.

repeat that while this may

wise temporary measure, it
cannot go on forever.
We should
a

insist

that

any

help

from

should be used by England to

im¬
prove her efficiency and thereby
raise her standard of living.
This
will make her
the

rest

the

for ourselves.

give

done

•,

„

the sick in their homes through¬
out

Manhattan, the Bronx and
Queens.
Besides making nearly

500,000 home nursing visits a year
to the sick at home, the profes¬
sional public health nurses of the
organization teach families the

principles

mothers, and
New

York

ment in the detection and preven¬
tion of communicable disease, j.

but

Part

efficiently what they

tivities

the

organization's Ac¬
self-supporting, but

are

54% of its services

ards.

.
,

The

must be

too

that

the

benefits

greater production per man hour
and
lower unit costs must be

world

well

iffs

United

Glas & Crane

Group
Speedily Distribute

;

States

those

which

unable

are

efficient

compete with
producers.

A group composed of Glas; &
Crane, Nusloch, Baudean & Smith,
Lamar, Kingston & Labouisse, and

foreign

Woolfolk, Huggins & Shobetf
fered; in

in
conjunction
with our financial assistance, that
productivity and standards be
raised, in the long run the Amer¬
ican standards of living would
standard

living would

of 3

ance

billion

dollars

would

abroad

completed within three

Company is

New

stores

imports

)

Must Increase Imports;

There still remains for the

countries which wish to buy our

panding market

that

over

for the world's
Some also recognize that

principle
into

the

must

the rest of the world
the United

colonies

Kingdom,

carried

and

well

into
as

one

Orleans

the

and

ready reception accorded its shares
testifies to its prominent

position

ip the retail business there. Estab¬
lished in 1842, the company's his¬

the United

and

price of 35%.. Distribu¬

was

The Holmes

last only until the dollars
had been used up.

^England

New

capital

the leading and oldest department

bal¬

and exports. Three billion dollars
annual exports, and no imports,

value

par

hours.

an annual balance of
10 billion dollars imports and ex¬
a

$20

stock at

Ltd.,

Company,

Orleans,

tion

of¬

secondary distribution,
6,000 shares D. H.

Holmes

higher with

ports than it would be with

block

also be raised. The overall Ameri¬
can

Holmes Co. Shares

insisting,

States do not together choose the

tory is closely identified with the

difficult

far-sighted policy
looking towards a genuine balance
and
higher level of trade the
world over, both countries face
trade wars, closed economies and

progress

totalitarianism.

years.

but

and 7 tfevelopmerit

have

dends

been

paid

witji
the

shares for the past 40 consecutive
'

■

•

Recovery in Number of Retail Trade Firms*of.'j
No!
% Incr. in No.

than the $5

goods the problem of how to get
dollars with which to buy.
The
United States must face the fact

this

oper¬

shared with labor, and that, bet¬
ter paid, labor will provide an ex¬
goods.

unable to

are

The Service has been

pay.

should, at
the same time, study the whole
question of expansion of imports,
and be ready to adapt our indus¬
try, building up those enterprises
at which we are most efficient,
and refusing to subsidize with tar¬

Retailtrade, total.
Home

from Low Point

even though large exports to¬
day may contribute to a high level
of employment, we are really giv¬
ing away our exports and sub¬
sidizing employment with an in¬
ternational WPA. In the long run

Diff. bet.

of Retail Stores

Firms at End

y.theWar.J
206,9007 }
T,200 < {
>7 J900{'v J-

30.

furnishings and requipment-------

Liquor stores
66
Eating and drinking places—-j—--y/58
Apparel and «^cessories---—---- x>75& ;
7. Appliances and radio
44
Hardware, and•; farm implement.;::----.-i- v
41 . \
,
Lumber and building material..'--,——r. 39'
;

u23,900v:- f
3,200
|
2,600,
|
^
3,200
1
/
3,800, J

7-?>■'

™

stores.^4.-7----7.--i.------;

^Filling stations

—-

General merchandise
Meat

and

seafood-

20
20

Grocery, with and without meat..

: 77 5

General stores with food

Shoe- stores

——--—

6,400

18,400

•

|
}

--7

44,700
3,400

9.600

■7777

——

Drug stores

27
22
20

—

19,0007

7 36

Automotive dealers
Other food

Other retail

700

of 1944 & bef. 1

to Dec. 31,1944

Other-automotive

•

before.

recognized

carried

are

who

among persons

ating with a depleted staff during
exploit labor, but it
the war and $400,000 is needed to
can and should work through va¬
enable it to restore its staff to full
rious international organizations
strength and to carry on its free
and through private channels for
work during 1945.
the
acceptance of progressively
higher international labor stand¬

realize

cur¬

Health

continue

revamped and put on an
efficient basis. Many Englishmen

also

with the
Depart¬

cooperate

City

pro¬

This country cannot be expect¬

enough exports to pay for imports.
Suppose that at that time stand¬
ards, of living have risen in Eng¬
land arid the ^colonies and we have
greater export markets than ever

hygiene,

general

nutrition and child care; conduct
instruction classes for expectant

Com¬

better market for

not dorie At all.
.

Electric

Visiting Nurse Service pro¬
vides part-time nursing care for

ed to admit imports of technically
efficient foreign
producers who

Assuming the money

General

The

has learned

them

is general Chairman of the
campaign.
■
7 :

120

refrigerators,

will

men

pany,

can

be ^helping

They

from

Philip D. Reed, Chairman of the
board

best develop
mass
by reducing unit costs
and raising wages.
By helping to
increase production and raise liv¬
ing standards we would not be
making other .countries self-suffi¬
cient but greater consumers.
We
..would not necessarily be helping
all other countries to produce au¬
would

of Kidder, Pea-

Company.

and

their respective fields.7.

markets

tomobiles

the

Bank, Duncan R.

contributions

seek

un¬

than all of the countries

Linen

Green

Albert H. Gordon

millions.

that

National

body

higher its standard of liv¬
ing, the more it participates in
world trade.
Canada, with a pop¬
ulation of 12 million, imports more

States

John

;

Vice-President of First
Corporation; Delmoht K.
Pfeffer of National City Bank, and

United

Boston

and the

The

York

Linsley,

include

Sheldon

Chase

is indisputable evidence
efficient a nation is

There
that the

•But suppose that the time comes
when' England7 can " generate

work and continued wartime

that, whatever readjustments may
be
necessary,
English industry

It has been proven that in
many
old-line industries England is 1 Vz
to 2V2 times less
productive per
man hour than we are.
It has

Division
and

ously affected by the contraction
of our
purchasing power during
depressions,
r

exports

pay

tailments.

Man-hour

the

well afford
billion
dollars help spoken of today. In¬
deed the job had better be well

her economy would be too seri¬

England's Production per

since

But

has hot enough

English Industry Must Be

ab¬

avoidable.

is well spent, we can

England

would do well to turn from Amer¬
ica towards Europe and the
sterl¬
ing area.
Some argue that the
United States cannot be counted

ports to the rest of the world,
hoping that thereby we will find
one of the channels through which
to provide maximum employment.

Let

from

control

state

New

Heads of the com¬
comprising the Financial

mittees

sorption of goods produced more
economically abroad, we might as
well shut our doors today, make
no loans or gifts
abroad and try
to work out an isolated, self-suf¬
ficient economy.
To do so, how¬
ever,
and at the same time to
avoid a severe depression, exten¬
sive

contrib¬

field

raise $400,000.

flexible

in it for the

room

Service

Nurse

not will¬

best fitted to produce.'

row, restricted economies who ask
the United States to

higher standards everywhere and

make

we are

dollars

help get the

and

our economy

duce

those dollars

British economy going again on a
more
efficient basis.
They are
anxious to participate in a freer
world trade which should lead to

ing to keep

financial

The

uting strong support to the cur¬
rent
campaign .< of the Visiting

one

hardest lessons for Ameri¬

to learn.

were

which

It is those elements in
England
who see the seeds of war in nar¬

away

Many Englishmen claim that
England's political and economic

this

come

should have

of the
cans

Nurse Service Drive

out¬

buy our exports.
Although elementary, this is

textile

with

lars

produce goods acceptable to her
creditors, the latter -would probably prefer to give England more

which

States, for example, provides dol¬

exchange with which to buy ucts. It would be a difficult prob¬
Nobody knows how long and
goods outside of the sterling block, lem to determine how to achieve
how much it will take to rehabili¬
but still have goods to
sell—pri¬ and maintain a high level of em¬ tate Great Britain and reconvert
marily agricultural products and ployment in the United States in her industries to the
point where
f raw materials.
England has al- the face of contracting instead of she will be
self-supporting. At the
ways been their principal cus¬ expanding world markets.
On the
present time England, the Conti¬
tomer and if she could not take third side, there is an area under
nent, and much of the rest of the
: their goods
now, they would be Russian domination, which with a world
are in no position to export
hard pressed to find new markets.
completely planned economy, has to the United
States, even if we
.[. Consequently, even though Eng- no problem of distribution, but would absorb the imports. At the
;■ land cannot for some time to come only -of production.
For .many same time we want to provide ex¬
:

with

dollars

can

south of the Rio Grande with

the

ate

siders

from

England Needs Our Assistance

bare

Wall Streelers Aid

States, that is, our willingness to
goods and services from
other countries, which can gener¬
accept

7 50,700
3,600
8,200
3,400

^Preliminary estimates of the Department of Commerce. ''

j
f

' '

Volume 162

Number 4438

nwfUAiuM-wc

THE COMMERCIAL & FINANCIAL CHRONICLE

Sidney Fischer, Abe Strauss and John Stein, all of Strauss Bros.

23471

Ed. Ruskin, Ward & Co.; Tom

Doyle, Ward & Co.; Bert Seligman, Ward & Co.;
Mitchell, Ward & Co.; Milton Klein, Ward & Co.; Vincent Fitzgerald, Fitz~
gov aid & Co.; H. E. Kuehner, Joyce, Kuehner & Co.; George Frings, Fitzgerald & Col

Irwin

Thomas Worthington, Winckler, Onderdonk & Co.; John-'Ohlandt, J. Arthur
^Warner & Co.; Lawrence A. Wren, Allen & Co.

Otto Steindecker, New York Hanseatic Corp.; Chester E.
Willers & Co.; Duke Hunter, Hunter & Co.

de Willers,

C. E. de

■

;v5 it

Lou Walker, Nat'l Quotation Bureau; Carleton Shively, New York Sun; Shelly
Pierce, New York Journal of Commerce; Jack Germaine, J. Arthur Warner & Co.

Douglas J. Luckhurst, Luckhursl & Co.; Louis S. Lebenthal, Lebenthal & Co.;
Ralph Tyner, Peabody, Tyner & Co.; Harry MacCallum, Peabody, Tyner & Co.

George Searight, First Colony Corp.; Martin King, King & King; William Judge,
Lewis, John H. Valentine & Co.

John H. Valentine & Co.; Fred

•

Robert

Ceble, Irving Feltman, Alfred I. Abelow, Cornelius B.

Mitchell & Co.

kheridan,

all of

■i

■

Remote

Peering Into the Crystal Ball
i '

America's

(Continued from first page)

tern of the United States holds to¬

which

that $100 billions or
purchasing power have

means

been added to the nation's store of

Nothing like that ever ex¬
isted in the United States. Nothing

money.

like that

existed anywhere.

ever

A volume of actual and poten¬

of $220 billions,

money

ap¬

the

proximately —almost

vast

being

pacity

productive

able

ca¬

offset

the

billions inflation of monetary units. One
bonds, ought to be careful before swal¬

day something like $100
worth
of
government

tial

Thursday,- November 1!5,~ 194$

THE COMMERCIAL & FINANCIAL CHRONICLE

*2348

same
sum
as
the national debt—what
does that mean? It is to be com¬

promises will create new infla¬
tionary pressures and new need
for compromises after renewed
strife.
At any rate, reconversion
will lag and it may take a year
or longer before the consumer be¬
gins to get capital goods (after

lowing
the
popular
belief
in
the
mysterious
anti-inflationary
power of production.
In the com¬
minimum
ing period, the markets will not a
of
inventories
has
contain goods, practically speak¬ been replaced).
It will then take
ing, more than what the current years before full production has
production will amount to (plus been
reached, to say nothing
imported, minus exported goods). about full satisfaction of the ur¬
Especially so, in view of the com¬ gent demand.
And years are a
pletely depleted inventories which long time to wait, especially when
have to be replenished first. We demands
get more and more ur¬

sounds

that

today

it would be,
let's be clear about it: when prices
start soaring in this country there
will be a great outcry and a great
undesirable

and

political pressure exerted not to
things go abroad
which are scarce here, even if
other countries offer higher prices

let the very same

them.

for

another thing to
be considered.
Foreign demand
for American manufactured prod¬
ucts is unlimited for all practical
there is

Then

purposes, provided that the res¬
pective governments do not inter¬
with
their
own
peoples'
wants. However, in a world in

fere

We could institute

coming.

from

big deflation and then there will
not be any inflation, no disbursing

capital

for

savings

pent-up

goods, no rapid expansion.
Well, .who thinks in terms of
making a deflation? The spirit of
the country is best gauged by the
incessant talk about full employ¬
ment.
Full employment mean^
not to interfere^with the comihg
boom save by fostering it by lower

taxes, to make it come faster,

and better.

ger

big¬
?

If tbe-boom does not come to-*
morrow,

benefit

in the meantime high
payments to1 the unem*

ployed should help to maintain
economies prevail, the volume of purchasing power*
pared with about $60 billions, the
after having made up your mind so that there should be no lulls on
rently, while we can
largest amount of liquid purchas¬
markets.
The
government
what the natural trends of things the
with
the
national
income
we
icits and to additional boosting
ing power this country possessed
are, you must always ask:
what should give a lot of money to the
create currently, but also with the of
the monetary
circulation by
previous to the present era. That
veterans,. which they well de¬
are governments going to do about
purchasing power we have accu¬ commercial credits.
was in 1929, at the time of, the
it?
And governments do not fol¬ serve; the government should go
mulated in the course of the war
biggest peacetime boom in Amer¬
low necessarily the logic of things. into public works; the govern¬
Foreign Demand For American
years.
ican history.
(In both cases, in
ment should not sell its excess
Goods
Putting it in another way, if
1929 and in 1945, I leave out the
Foreign Governmental Policies
property, but should do this and
only sell what

can

life in¬

surrender value of

cash

surance-policies. )

have

times

four

almost

•mow

,times, but that does not. tell the
full story. ; It must be further
that

realized
years

twenty

people

the

last

the

United States have

the

had less

never

other

debts than they have now; in

words, they not only have more
purchasing power—approximating
$2,000 per capita, including every¬
body, as against some $600, $700
at best, before—but they also have
less debts to worry about or to
offset their liquidity.

One more point to complete the
picture: namely, the foreign de¬

lions worth of national income

mand.

get paid

cash

reserves, then $100 billions
goods have been produced and
$150 billions worth of goods are
being asked for.
That causes a
very
unbalanced situation, and
prices are bound to rise—OPA or

OPA.

short,

conditions,

how

will

that

enor¬

have accomplished

miracle of war-time production,

were

farms. Under such

producing, and

for

In cities and

are

the price structure is in balance.
But if in addition, say, $50 bil¬
lions are disbursed out of hoarded

been

having produced hundreds of bil¬
lions worth of munitions.

People
paid for the munitions out¬
but did not spend all they

put,

has to replenish sadly emptied in¬

ventories, reconstruct what has
devastated, and improve liv¬
ing standards in the countries un¬
der acute hardships.
The rest of

been

the

world

which

devastated

has

been

not

suffering too from
the
pains of pent-up
demand,
partly because it has not been
satisfied for years, and partly be¬
cause
of
incisive
new
policies
such

industrialization

new

countries, expansion of railroads,
opening up of mines, intensifica¬
tion of agricultural and plantation
production, etc.
And this latent
demand of the outside world co¬

of the incides with a vast accumulation
"earned" has of purchasing power abroad.
away
for post-war
We are accustomed to think of
nomic system?
If that stored-away, the whole world as poor compared
That is a question to be an¬ spending.
pent-up demand bursts into the to the United States.
That is a
swered only by the future, de¬
pending on how much of it will be markets, then people who have fallacious generalization. Switzer¬
spent. It is perhaps the most im¬ produced torpedoes or battleships land and the Argentine are per
will be asking for houses or auto¬
capita probably richer today than
portant single problem of our eco¬
They could get slices of we are, if we look at it in terms
nomic future, .whether or not a mobiles.
battleships, but they do not want of real wealth. Many other coun¬
substantial fraction of this pur¬
chasing power accumulation will them. They want something they tries are in a very good financial
be set into motion soon, such as did not produce, and there will condition, too—able not only to
$50 or $60 or $100 billions, and be two people, or one and a half buy but also to pay in "cash."
increase in

mous

purchasing

power

spent within

the

affect

received.

If the

American

people become liqui¬
dity-minded and prefer to count
the money in the drawer rather
than to buy the good things money
can
buy, then that purchasing
power

will

and

the

stored

duce

and

use

that money,

niture

and

what

It is safe to

%
a

good

lated
to

ture,
out

assume

fraction

over

derstand
ize

the

effects

disbursement,

that

the

power

fu¬

once

great
time

unless

flammable

element

mind

one

deal.

until

would

take

reconversion

of
a

some

adjustment

and

parcel

process

even

foreign

meaning

unemploy¬

level to induce

Presumably,

they

will

promises
rise

into

and

overcome

com¬

permitting
wages
to
ceilings to be liberalized

wherever the cost increase cannot

as
■

about'and

absorbed
direct

tax

subsidies.

reductions

But

com-

the deficit will de¬
hope we will not see
again a 50-billion-dollar hole in
the annual budget, but we might
very well see in *47 a 25-billionf
dollar deficit or something like

that, which will add accordingly
the
volume
of
purchasing

to.

In other words, we are

amount.

again to an age of
barter trade in the Nazi fashion.
The world will be perhaps a lit¬
tle more sophisticated, and a little
less obvious about it.
When we
do the same things the Nazis did
in economic methods we do not

ment at

coming back

call them by the same

names,

course.

But it holds for

Britain, France,

with

and the rest, and you can go
a

exception

that

will be satisfied.
to us,

some

who

We will

to every friend who
and perhaps also to

are

not friends.

which
own

year

the bottleneck in

are

our

post-war economy (after a
or so of adjustment in raw

materials and foodstuffs).

fore,

some

practice

There¬

reluctance

ica does not

there

our

live on exports as a

nation except to a very

tent,

and

much

can

of it

the imports.

export
try.

small ex¬
have any time as
needed

embargoes

may

balance

even

this

have
coun-

phony about
employment discussion
never
mentions at what

full

which
of

rate

people should

wages

engaged. Employment is not what
we ask for;
we are asking for it
at

and the

pay,

have

pay

makes all
We

in the world.

the difference

full

employment at
nominal wages and there would
not be any need for government
subsidies at all.
But to havs fulj.

such as employment at high wage ratea
will find will necessitate very substantial
that
the
governmental
policy government aid and/or a very
n >!?:}■
everywhere is: "Buy abroad only substantial rise of prices.
the absolute
essentials or else
Our question, therefore, boils
make the seller buy my products down to this: Are we going to em*
in exchange because I do not have bark on a full
employment policy
the gold or foreign exchange, or at artificially raised wages; or
if I have it, I will not give it any¬ will we let the markets take their
way because I am afraid I will
course and establish wages at the
not have enough for the future." rates
which are in accordance,
Be that

that

the trend
a

it may, there can be
all indications of

doubt

you

are

business

of
unheard-of

in the direction

boom

flammatory

be generous

high and higher wages.

There is something

could

celerate the process in

comes

power,

is asked from* us, and if
mand

To be

the

I can read
signs, much of that credit de¬

course,

add fuel to the fire.
sure, no obstacles will be
ly, my government will not permit
me to buy because it figures that
put in the way of the so-called
it needs the foreign exchange to recovery or reconversion, which
buy
something else,
something might be better called an infla¬
1
" I more
important, or not to buy tionary boom.
But the full employment policy
anything abroad.
Unless you have to sell some¬ on which we have embarked unan¬
thing absolutely essential to the imously means much more thaii
foreign country, you can figure to let things go upward and he)p.
that they will make it as hard for them do so by government sub¬
you to sell as possible, or they will sidies, public and private credit
let you sell only if you buy at the expansion, and what have you.
same
time
and
in
the same Full employment means employ¬
the goods bad¬

and even if I need

number of billions to China. From
all over the allied world capital

Will be
part to
sell abroad.
I cannot imagine an
American policy which would fa¬
fied with cash and backed
by a
vor the export of American vital
political-set-up catering to them
materials or durable goods while
—a protracted
period of incessant
at home prices are soaring. Amer¬
fights is unavoidable.

bulging

ex¬

change restrictions is this: even if
I have the money to purchase with

cline.

with the

self-in¬

fashion.
It may be
held up or even reversed for a
while—for a shojrt while—by jthe
rigidities in the way of reconver¬
sion,
by. falling world market

prices for foodstuffs and over¬
produced minerals, by the slow¬
ness of
the consumer in getting
started in spending on durables.
But such retardation of the trend
can

be temporary

only, and very

prices should not rise?

The next question then is: Are
no checks on this broad pro¬

there

obviously ahead of us? If we
to stop it, all we would
have to do is to tighten the tax

cess

wanted

screws

freeze

the

capital levy
people's money, or

impose

and take away

the bonds

in the hands of

holders, and-forbid

their

use

purchasing goods. —Tricks like
help; they stop the buying
and they stop prices from rising.
In other words, public policy is a
for

that

decisive element

picture. Surely

in the post-war

Wr::
could stop the boom
,'v

Compromise

^ ^

Policy

that

The answer, I am afraid, is

usual

will make

compro¬

We will not. go the whole

mise.

reckless way, as some people want
to do,

but we-will not go. the
We will

free market way either.

at compromise - by aiding
to rise and keeping prices

make
wages

possible*

under ceilings so long as

letting
them go piecemeal. Iii
other words, the price boom, and
business boom we are facing will
be

based

continu-f

high if not

ously rising wages, and therefore

moderate at that.
:

efficiency and productive

ity of labor, and which therefore
many
cases
have to fall if

magnitude, carrying with it, and
carried by, rising prices which
when once started will tend to ac¬

un¬

unemployment, the workers' pock¬

time in¬

hears

discussing

are

the

with war-time sav¬
ings, the unions plentifully forti¬

injected

is, however, a question
complicating
matters

ment benefits

keep

top of it all

seeking;;} ay rest, .with

ets

the economic process.
Obvious
it may seem, it is essential to

that

scramble

some

part

the

Every year, every month, every
week we add more millions and
billions to the circulation. It
piles
up.
It is in effect like an inde¬
same

period!

war

der normal conditions. With labor

Bi|lions in Circulation

structible and at the

prevalent in this com¬
ing period can scarcely be satis¬
fied
anywhere
except
in
the

Theoretically, our export vol¬
ume might score as high .as war¬
is
completed, even if no distur¬
time peak levels, especially so
bances occur.
But labor strife is
with prices rising.
But it wi 11 be
a natural
concomitant of the tran¬
largely exports of capital goods
sition.
It is

deflation "burns" it
up.
Puts More

United

technical and psychological sense

from

economic system,

timing

nomically for the purpose of add¬
ing it to the marketable supply.
The money paid out to war
work¬
ers
may change hands, but
stays
the

will

there

the
point of view of the market;
very
little of it can be recovered eco¬

the

price structure.

buildings is

over

for goods and some tension in the

tender, check
savings deposits or short-term
governments—stays with us. The
any

the

in the hands of the
people whose demand

There

and

lumber

power

whetted

the word
abbreviated term

lumber that went into

appetites for "durables" have been

for the creation of
money that is
ri6t
self-liquidating, whether in
the form of
legal

not

directed

$3 to $5 billion
credits or grants-in-aid to Britain,
very same
an equal or larger amount to Rus¬
has been accumulating and whose
sia, $1 or $2 billion to France, a

un¬

such

And

chasing

you must real¬

purchasing
using

P.r*nted''
printed"

near

The

Switzerland—and

debts coincide with increased pur¬

likely

and* above money saved

earnings.

trade manipulations.

and

that will be

cof¬

money

will. be

to make things worse
better, whichever way
you
look at it—not only have United States, speaking by and
people "plenty" of money, but large.
they also need things badly, ac¬
But in addition, we intend to
cording to their standards of liv¬ give credits.
$l1/fe billions in the
ing, the things they did not buy UNRRA, $3 Vz billions into the Ex¬
during the war. They have
a port-Import Bank, $6 billions into
pent-up demand as never before. the Bretton Woods i nstitutions,
Reduced
private and corporate are just the beginning.
Now we

accumu¬

States because the kind of demand

filled-up

vs.

fers.

that at least

the

unlimited credit, which is
the question, Europe will
labor under foreign exchange re¬
strictions and similar
monetary
them

out

lamp and look for an
—you
might find one

—worse

well

you,

$25

leading

tories

story.

power

disbursed

of current

mass

purchasing

have

different

time.

The gold and dollar resources of
the outside world amount to about

What is

the

problem of economic
disequilibrium — depleted inven¬

part of it, to buy houses and fur¬
then

buy at

be callea the

enough cash accumulated,
enough notes, bank deposits, sav¬
ings accounts and savings bonds,
to

one man can pro¬

billions, which gives quite a
That is the essence of the prob¬ little money to buy with in this
lem of price inflation.
It might country, and most of that buying

never

want

half, asking for the

goods that

have

and

30 to 40%

nation

same

further

two and

affect prices. But
Americans feel that they

will

Some

money the
been
stored

our eco¬

short time.

volume

which managed

governmental policy in shoulctdo that, pay subsidies, and
countries which buy help in every way to bridge oveif.
American
goods,
especially
in any difficulty that; may stand ir|
aid out. The goods produced and
Our postponed demand is vast
Europe, in this respect?
For the the way of an early boom. More
;he income paid out are roughly but it is moderate compared to
coming period, whether we give expenditures and :less taxes add
qual, have to be equal since peo- that of the outside world which
them credits or not, unless we give up to more"' peace-time deficits/
:
le

liquidated all
along the line, corporate and con¬
sumer debts and mortgage debts,

Debts have

produce cur¬ gent, cash reserves continue to rise,
buy not only thanks to continued national def¬

$100 billions worth of goods are
produced in a year, then $100 bil¬

purchasing power available
than we ever had in good

'more

;

prices.> We

rising

have

inflate^

the currency to a fantastic extent
and

yet we could still get away
a
price inflation, and it

without
is

hard

diet

that

have

what

the economist to pre-*

will

because

policy

all indications

have

depends

not

upon

will follow; but
that, given the

are

policy we are most likely to fol4
we shall have price inflation!

low,

The

American:

most dramatic

scene

is set in

fashion, if you will

permit me to dramatize a.little*
People- wait " with their pockets
bulging with money, though they

£QMMERCIAL & FINANCIAL CHRONICLE

^Volume -162 „• Number- 4438

;
.; -

do not like to admit it—I mean
-comparatively speaking
with
prices not having risen very substantially : and * therefore
easily
purchas-

Within the range of that

demand
with new de-

ing power, with pent-up
the

©f

war

years,

mands added to it, with a

You

before your eyes the

of demand that cannot be

upsurge

for.the aftermath. But let

world has not tripled at all and
production of ships is proceeding
good things of life, at an unheard-of pace.
A lot of

the
see

can

markets are downward bound.
So are freight rates for ship bottoms, with the tonnage of the
world having tripled against the
pre-war, while the turnover of the

counterbalanced by production, to

repeat; as a matter of fact, a high
level production is in peace time
a 'stimulus for higher prices.
That

after,' and how

with

one

side

prepare
me

remark

with this general pic¬
ture, which I present as the best
that I can offer with no guarantee
attached.

we are

other materials will go down, the

the other later. Sugar

that

Certificates

of.

Example No. 2

;

Same Stock in

A customer is iong loo shares of
question arises where a .General Motors
Corp. common
client has two certificates represt0ck in a "restricted" general acsenting an identical number of jcount
Hp wishes to deposit 100
—~*4count.
He

and do not discuss any more.

stuffs and may start downward
in two years. Timber is perhaps

mean

peace.

Recent developments

reassure

that

General Account

"The

already take for granted

is shorter than most other food-

should

Substitution

heading for, is,based
international outlook

Margined Accounts

Federal Reserve System in regard to
Regulation T, as transmitted
to the Exchange
by the Federal Reserve Bank of New York in a
letter dated October 31*1945:/-.;

This process of boom or infla¬
also

Explains New Rule

The Department of Member Firms of the New York
Stock Ex¬
change addressed the following communication to members on No¬
vember 2 concerning a ruling of the Board of Governors of the

connection

tion

one sooner,

NYSE

be only how long it lasts and what
comes

higher living stand-

for

and

ards

The question in his mind then will

desires

with

and

population,
aroused

growing

Most farm products have a boom
ahead for the next year, but after that farm prices in the world

will

the

One

stock.

same

...

certificate

—

shares of General Motors Corp. $5

held by his broker
material today, have peace. I do not think any¬ as collateral. The other is in the preferred stock and withdraw the
common stock.
The broker may
body is willing to start a war with
is also important to remember. It rarer than diamonds, in proporclient's safety deposit box.
The not
the
United
States.
With
the
permit the withdrawal.
»
is a stimulus for. two or three or tion to the demand, and it may
client desires to sell the shares
four reasons.
stay up for three years. ijThis', unique situation existing, where
represented by the certificate held
Example No. 3
one
country is able today to de¬
One reason is that people start sind of prices may not lag beby the broker," The question is
A customer is long 100 shares of
spending when the level of pro- hind those of industrial commodi- stroy the rest of the world, nobody whether he can replace the cer¬
General
Motors
Corp.
common
duction is high.
You may not go ties, especially of capital goods. would take a chance to attack us, tificate- held by the broker with

the

rarest

raw

|pto the market for an

automobile But, generally speaking, while this

falling raw material
prices is threatening, a restraint
neighbor has one, is put on internal prices, to some

long as there are no autorriO*
biles available, but when they do
as

and your
that is the time you

appear

start thinking

process of

extent at least.

that you need one, too.
Another reason is that

level

this

portant

Even more imrespect is the

market.

a high
production means that
people feel secure. They can spend
their accumulated savings, or part
of them, because they do not need
to worry at least about the immediate future. They have jobs, jobs
at good pay, and expect to keep

them.

short-run

of the labdr

prospect

to attack

our

anybody else without
permission to do so, or against
definite

our

prohibition.

the certificate from his safety de¬

posit

some

but not forever, depending
drawal' of listed securities shall
technological
developments be permissible if the
account, af¬
here and abroad.
years,
on

ter

But for

After three months or so, after
labor has overcome its tiredness
and is ready to work again, and

after it has exhausted its surplus
cash reserves on strikes, or much
of it, and when unemployment
benefits are nearing their end, it

violating

the
second paragraph of Section 3(b)
which
provides that no 'with¬

That

condition is likely to last for

without

box

the moment peace can
be taken for granted, which does

lems

unsolved

withdrawal of

curities which
lateral.

reason

is that full em-

"naturally"
rising
wages
even
without government interference,

The

were

held

se¬

col¬

substitution of

mere

certificates

representing an
tical number of shares of the

produc-

Lastly, a high level of

tion

lot

peace-time also means a
cost because peacebe met in the

extra

time demand cannot
same

a
iii-j

and

standardized fashion, except
industries, as war can,
therefore costs per unit of
few

©utput have to rise.
Uoiav

Cull

Prnrtnoiinn

? Even so,
materialize for a while.

It may

nine

months,

six

take

perhaps twelve months. My
is that six to twelve months

hunch
might

before we enter into that era
substantially rising prices, full

pass

©f

and the
of an infla¬

peace-time employment,
strains

and

tionary

stresses

upsurge.
reasons

are

ally on labor's side.
Labor is
tired, naturally so; so is manage¬
ment.
There is a period of rest

life as in eco¬
nomic life, and I do not blame
anyone who wants to take a vaca¬
tion after years of overtime work.
That will delay production and
the demand for durable goods, as
well as the beginning of the infla¬
needed in private

tionary process
'

Another

factor

fharket price level.

raw

material
—'-1 prices going down¬
—4— —-

ward, adding up to at least re¬
straining the infationary trend, if
not cutting it down.,
^
That is the typical post-war re¬
cession.
It happens after every
war.
It is ,a short recession, usu¬
.

been

released

from

the

iden¬
same

world

How can
inflation

Our situation
can

is not unique;

world market prices

much.
than

lull

than

is more a recession
depression; it is mild and
but then comes the out¬

decline;
a

short,

The

burst.

outburst

different
same

de¬
and

company

another

class

stock

com¬

duty

stock in
count.

Corp.

common

"restricted" general ac¬

deposits

Motors

Avenue.

another

cer¬

nally in the account.

tificate for 100 shares of General

Corp.

withdraws

common

the

stock

certificates

and

origi¬

buy,

gradually and almost invisibly if
play,
it may come with an explosion
if it is manipulated from above or

(S)

or as a

EDWARD C. GRAY
j

but

below;

Short

it r will

come.

devastating and most
severe deflation,
which nobody I
know even contemplates, that out¬
burst has to come either slowly or
rapidly, and then the famous vi¬
cious circle of prices rising, wages
a

more,

solicitation of

Kean, Taylor & Co., 14 Wall
Street, New York City, members
of the New York Stock Exchange,
announce

that Commander Charles

E. Ames, United States Naval
serve,

May,
firm

leave

1942,
as

States Fleet, and the

Tenth

Fleet

Georgia Under Clarke J1
&

Company,

vestment

house,

opening of

than-

one

sure

year

clined to bet

any

service; for

J-.,- v-P '--1,

'i v"

seven years

Copies of the Prospectus may be obtained from the undersigned.

two to four

or as an

ANDRE de SAINT-PHALLE & CO.
25 Broad Street

N. Y.

offer

of such Securities.

(Par Value 10#

NEW YORK 4,

AW'S'V

ir-*rvM- >-<y -A *r

and 2 shares of Class B Stock

November 13, 1945,

prior t<> ~

V V-: -H OJ&f5

Offered in Units of 10 shares of Class A Stock

S-

that time was connected with the

offering of these Securities for sale,

offer to buy,

the

office in the Murrah

Clarke, recently released from the

it will last longer
and I would be in¬

announces

in¬

Building, Columbus, under the di->

50,000 Shares Class B Capital Stock

.will not last five years; but I am

Atlanta

rection of Hagood Clarke, Jr.

(Par Value $1.00) >;,%

Commander,

(Anti-Submarine

New Evans Branch in

wages

rising further will get under way.
Short of the atomic bomb being

active

Warfare), in Washington.

250,000 Shares Class A Capital Stock
\

the

duty, Commander Ames was at-^
tached to the headquarters of the
Commander-in-Chief, > United!

Anchorage Homes, Inc
|

returned

'": '•

NEW ISSUE

Re7

of absence since

has

general partner,
Recently released from

as an

Again Aciive as '
Kean, Taylor Partner

The offer is made only by means of the Prospectus.

:->•

:•

J,,

Director,

Ames

the market is left to its own

from

firm.

•

circumstances to be construed
to

common

The broker may not permit,

withdrawal.

Evans

long 100 shares of

Motors

A.
Chapin has admitted
Mark T.
Seacrest to partnership in Don A.
Chapin Co., 155 North College

100

com¬

S COLUMBUS, GA.—Clement

A customer is

General

Seacrest to partnership in Don

the

Example No. I

Chapm Admits Seacrest

This is under

stock.

the

acr

deposit

an<j withdraw the 100

how equally

fall?

one

company.

come

may

years
they will fall; raw
as
the period of upturn we are
material prices are bound to de¬
cline after a while. Some are fall¬ facing and during which prices
will
go
to substantially higher
ing already, such as aluminum
and
copper,
because there was levels, with "full employment"
and high and rising wages pre¬
just too much produced, too many
inventories left over, too much vailing.
From the businessman's point
productive capacity opened up.
of view, this will be a most prof¬
The same may hold soon for cat¬
itable period; it should be one.
tle and wool and cotton.

In gold terms,

customer may

stock

pany, or deposit one class of stock
of a company and
withdraw a

and has rejoined the firm.

Our situation used to produce energy for no cost
is
duplicated practically every¬ or some such invention, the infla¬
where to a greater or lesser ex¬ tionary process will be under way.
tent, not to speak of the countries
The
Post-War Boom
with run-away paper money in¬
Presumably, we may have then
flations, like Greece and China
and Germany and Italy and Rus¬ a boom period of years—presum¬
sia, and of countries on the verge ably; estimates vary from one and
of run-away inflation, like France, two years to five and eight years.
I am quite
nor of gold inflation, like South
sure
it cannot last
America, the Arab countries and eight years; I am pretty sure it

then

withdraw

country?

in India.

that

mean

posit stock of

It does

ally very short; this time it may
be shorter, and may not amount to

World market rising, prices rising

prices are bound to fall.
they fall when tlfere is
in every

active

not

several.
One
reason is that there is no desire
as yet to produce "fully," especi¬
■••The

not yet coming fully to the fore, I
mean demand for durable goods

Full Production
in particular; of the labor market
the picture need not filling up, and a major sector of

Belay In

;

stock.

same

what they please; but the
unions' cash reserves will be deLt.-Col. Frank Coffman
pleted, too, and they will be less
inclined to strike and fight. By Rejoins R. W. Pressprich
that time wages may decline
R. W. Pressprich & Co., 68 Wil¬
piecemeal, here and there, not liam Street, New York City, mem¬
openly perhaps but effectively, bers of the New York Stock Ex¬
We may see within a few months change, announce that Lt. Col.
+V>«.
~J
-e
*
the combined effect of demand Frank W. Coffman, A. U. S., has
may do

Steel Corp.

shares of General Motors

will start looking for jobs. Three
stock is not a transaction of a kind
ployment
means
rising wages, to six months hence there may be
contemplated by the Regulation.
High level of production strains a substantial surplus of manpower
In the circumstances, the Board
the labor market; and you can on the labor market
That is a do not mean that anyone can has advised us that it is of the
rely on our labor, it will not miss fair bet.
In addition, millions of fight anyone else, and so let's opinion that the substitution of
the opportunity, and rightly so, to men will have returned from the not
worry
about the unsolved one certificate for another in the
make the most of it.
What I am fronts and will look for jobs. We problems
until
they
become circumstances described need not
enough to
ask
for
solu¬ be regarded as subject in any way
against it that the government may have temporarily a surplus hot
should help that artifically; but of employment - seekers,
before tion. That at least is the attitude to the provisions of Regulation T."
labor has a good right to bargain they can be re-absorbed in pro- of the American and the British
The attention of members is in¬
for what it has to sell, and it will duction.
people, and they will proceed in vited to the fact that
this ruling
their own business without regard
bargain for higher wages. We will
Of course the government may
permits the substitution of certifi¬
have
a
shortage of labor
and do-what it pleases, and the unions to international complications.
cates of the
A third

stock

mon

securities, the Regulation has

reference to

they have
ever been, or worse, but we feel
now
as
the
contemporaries
of
Woodrow Wilson felt, that, un¬
solved as the problems are, they
as

wishes

of U.

"In speaking of a 'withdrawal'
of

and

are

would

mean

rium

withdrawal,

"restricted",general

count*

undermargiried.

that political equilib¬
happiness will prevail
in the world, especially in Europe:
European and Far-Eastern prob¬
not

such

stock in £

* "

•'

-;,T

FINANCIAL CHRONICLE

THE COMMERCIAL &

2350

;

.//,

made in

that have been

rection in Congress. ;ru

tfyat di¬

,j>

„

On the matter of freedom from

(Continued from page 2323)
Full employment is, there¬

work.

realizes, more
speech, a term
to be modified by a number of
practical considerations, such as
have just
been mentioned.
The

fore, as everyone
or less a figure of

and

employment"

"full

expression
must

be interpreted practically
with the understanding that

be accom¬

such employment may

unavoidable unemploy¬

panied by

amounting to from 5 to 10%
total statistical labor force
of the country.
Mr. Wallace also uses the word,
ment

of the

"job," with a very broad meaning.
It includes all possible kinds of

including

employment,

gainful

millions of job givers, as
job takers or seekers. We
need to be clear in our minds on
what is meant by jobs. It includes

employment under the free
enterprise system is an adequate
number of enterprisers,
people
who are on their own, people who
are
desirous
of matching their
to full

who work for
others, but also those who work
for themselves. This term, as used
here, includes owners, officials
and
executives of all kinds of
business concerns, such as banks,
brokerage
houses,
newspapers,
wholesale establishments, retail
stores, warehouses, repair shops,
laundries and other service es¬
tablishments, as well as factories,
not

those

only

utilities and trans¬
portation companies. It includes
farmers, lumbermen and fisher¬
men.
It includes all professional
people who operate on their own
including doctors, lawyers, den¬
tists, engineers, architects, artists
mines,

mills,

It includes barbers,
hair dressers and beauticians.
It
includes hucksters and peddlers.
and musicians.

abilities

and

energies

ambitions,

against the chances of success or
failure, who are willing to risk
their own capital and the capital
that
they may
have borrowed
from others in the hope of reaping
a reasonable return and who .are
bidding for employees. If we are
total of 60 million jobs

to have a

by 1949 or 1950, there should be at
least 12 million private business

professional concerns in oper¬
by that time.

and

ation

striving

prisers

number

sufficient

som£
well

employees. The key

there can be

enter¬

is the surest guaranty

businesses

If by 1949
less than 12
and if

of national prosperity.
there

may

not

million active enterprisers,

willing
be

give

work for
can

work

who

those

them

for

day's

honest

are

honest day's pay, you

that

sure

shall closely

full
employment.
Moreover, we shall all be able to
count on the continued success of
the free enterprise system.
It
does not seem at all impossible

approximate

difficult

too

even

nor

expect

that this country may be able to
reach

to exceed the goal

even

This thesis pre¬
sented by Mr. Wallace is interest¬
ing and challenging.
A
symposium on "Financing
American
Prosperity" based on
of 60 million jobs.

of six

conclusions

the

of Amer¬

leading economists has just

ica's

published by the Twentieth
Century Fund. These economists
represent the widest possible vari¬
ation
in
viewpoints upon most
ests.
subjects, but they unanimously
Sources of Jobs
agree that this country today has
There js a widespread but fal¬
all the ingredients for a sustained
lacious tendency to think of the
period of prosperity that should
factories, mills and the mines as
last for several years. As a stu¬
the sole sources/ of jobs;" As ;a
dent of business and economics I
matter of fact/as of 1940, out of
join in this conclusion most heart¬
the total labor force in this coun¬
ily. In my opinion, it is entirely
try, amounting to 52,020,023, the
possible to achieve national pros¬
factories provided less than oneperity and full employment under
fifth of all the jobs. >
our present free enterprise system
The running of a business is a
in the years that lie immediately
job. There are many of us who
ahead of us, IF.
think that it is much more of a

of these as well as
the wage earners and operatives
in "factories, mills, mines and for¬
It includes all

been

job than any hired man or woman
knows anything about. There is
no comprehensive, correct, up-todate statement of the number of
concerns
in this country; Even
the Census of 1939 did not report

Essentials to Prosperous Develop¬
ment

There

certain

however,

are,

fundamental essentials to

sound

these

figures.

But it did report
6,000,-

that there were more than
000 farmers;

1,770,000 retail stores;

389,000 personal service

establish¬

ments; 215,000 building and con¬
struction concerns; 184,000 manu¬

companies; 150,000 re¬
pair shops of various kinds; 92,000
wholesale
concerns;
44,000

facturing

movies

and theatres; and' 27,000

hotels.
Back

in 1935 the Bureau of the

Census

found

that

these

those kinds mentioned above. Pre¬

sumably there were more in 1939,

11,000,000.

So out of a

52,000,000 persons making
up the labor force of this country
in 1939 it may be assumed that at
least 11 million, or one person in
every five in the labor force of
the country, were owners, opera¬

total of

officers or executives of
privately owned and privately
operated business and professional
enterprises.
Many of these enterprises were
carried on by people working by
themselves
and
for
themselves
tors,

alone and

our

without hired help, but

certainly more than half of them

employers., Excepting the
Government, Federal and State,
these were the job givers of the
were

country-

development of
Mr. Wallace in his

prosperous
economy.

has

book

indicated

fields

industrial
should

number

which

there

important advances in
enterprise and employment.• This
excellent

There

far

goes.

still other requirements.

are

take

must

another

least

step in our analysis to see what
these

requirements

for

a
sound' national welfare.
Among
these conditions are the following;
t

are

1. Technical ability and capacity

were

10,707,315 privately owned
and
operated business and professional
enterprises of all kinds, including

perhaps

and

applied to production. This is, of
course,
a
high
essential,
but
American industry is already well
prepared ( in / this direction.
The
miracle
of
war
production has
conclusively shown that American
industry is highly competent and
well able to apply this competency
to the extent needed to supply our
markets,.
2.

Selling

before.

producers of

the

must

final

develop

raw

retailers who ef¬

materials to the
fect

have never sold

American industry all the

from

way

as we

sales

consumers

and

selling

sales

service from its present low levels
to

new

means

high of efficiency. This

not

merely

the

Have

Job Givers

it must be clear that if
jobs for job seek¬
ers we must also have job givers.
There must be employers before
Now,

there are to be

splendidly before this
past and because it
will undoubtedly be brought be¬
fore you again and again, I have
chosen to pass up the discussion of
cussed iso
Club

this

need

for

the

item

million

this time.

driving desire of at least

3. The
12

and

men

women

out

total labor force of 60 million

own, to engage in
professions, to ex¬
pand their old enterprises and to
establish new concerns.
This, as

to go

their

businesses

prime essential
employment but of

have seen, is a

not only of full

national

prosperity.

It is to this essential to the return
of

balanced, thriving

that

attention

economy
to direct your

would

I would not ask

today.

to abate your interest in the
slightest in the problems of bet¬

you

ter

selling than

before, but

ever

will be interested in

think you

this additional essential that will

possible.

make increases in selling

are always people who
the normal instincts to ex¬

There

„

have

pand their present businesses, or
if not already in charge of con¬
cerns of their own, to become the
officers

ments of

which

establish¬

and

businesses

old

others.
expansions

belonging

extent

busi-

executives

nesses

The

businesses occur is

new

unfailing index of the rise or
fall of our economic conditions.
When there is

num¬

daring and willing
businesses,

their

extend

who

increasing

ber of persons
to

desirous to prepare them¬
to take the risks of new

are

selves

ownership and management, then
there is business prosperity.
A
declining number of extensions of
old businesses and of establish¬
ments of new businesses is a sure

pessimism and

sign of economic
depression.'

'\r-

prise

present retardants
enterprise are the

the

Among

individual

ment control

serious

who

those

shadows

lengthening

over

govern¬
business. This

matter

only for

not

already operating

are

tional

employment need * to *- be
encouragement for
enterprise, such, for exam¬
ple, as the right to keep a rea¬
sonable
share
of
the gains or

given

some

their

profits from enterprises success¬
fully carried on, and the right to
engage in enterprises with rea¬

regulation,

freedom from

sonable

restrictions

harassments

and

government bureaucracies.
drains

The

made

comes

the

War

upon

by taxes as a
are
understandable

and excusable.
of

the

in¬
result

private

common

They were a part
burden of all of

people.
The huge costs of
repaying interest and principal of
our war debts will continue to lay
our

heavy

now

burden

that

time has

the

come

all.

But

over

the

upon

war

for

some

retrench¬

expendi¬
tures, for a prompt balancing of
the government budget and for
organizing the system of taxation
so
as
to encourage father than
ments

government

detail necessary to better
selling. The need for these essen¬
tials was never so great as it is
now

few

been

and

years.

dealt

it will be in the next

But
with

this
both

subject has
frequently

the

development of enter¬

have,

now

before Con¬

and every sound move for
and safe retrenchment
of government expense, for a bal¬
anced budget, and for a system of

gress
a

proper

taxation

terpriser

that
a

will

fair

leave

the

en¬

return

for

his

risks and labor deserves your ac¬

support.
We may well be
encouraged
by
the beginnings

tive

has

will
trol

over

Johnson,

ment bureau

comes

immortal¬

ity."
There

regulative

several

were

line

raw

trying

based

March

not

certain

hold

the

prices

Since. March

been

exceptions0

some

1942.

have

there

does

wages and
materials.

over

OPA

price line, with
a

government agencies in existence
before the war began.
Most of
these have extended their! regu¬

is,

The

nearest, of all

institutions

human

that

kinds of

had,

never

nor is it likely that it
have any effective con/;
the costs of production,

ever

Administrator
of the NRA, aptly expressed this
by the statement that "A govern¬
General

during coming months. The OPA*
has failed for the simple reason

Back in the early- 1930's

rid of it.

1942

enormous

wage'

increases at every stage of '
production and distribution. Now*
industries and trades of this:
rate

lative purposes

the

ing the war.

Nation

agencies

demands from

and powers dur¬
Other administrative
were brought into ex¬

during the
Some of the war
emergency agencies will probably
close up.
Others are striving to
the
utmost
to
continue indefi¬
istence solely to serve
war

emergency.

nitely.
the

Both

older

and

the

newer

government agencies exercise an
influence

intense
often

over

retarding

particularly

business,

effect on the
businesses and

old

extension

the

estab¬

lishment of new businesses.; When

the

considers

one

variety

and

kinds of

regulations now in effect
and applicable to the ownership
and operation of a private busi¬
ness, one
wonders at the hardi¬

hood, or even the sanity, of any
who attempts either to ex¬
tend an-old business, or to es¬

one

tablish

new one.

This influence is baleful on new

enterprise. I am sure you all have
acquaintances who have both the
the know-how to

and

means

ex¬

the

The

hesitate

extend their en¬

venture into new
businesses. They are merely ex¬
ercising
an
essential 'prudence.
The responsibility for this hesi¬
tancy rests squarely upon govern¬
terprise

those

and

ment

which

its

their

use

powers

agencies

the

advancement of

detriment of the
economy.

illustration I would like

This agency was
of5 Congress in

to cite the OPA.

created
1942

by act
exercise

control

over

prices and particularly to prevent
wartime inflation. In framing the

The American law was called the

"Emergency Price Control Act of

will result in

served

useful

Prices of many

purpose.

goods and particu¬

larly such as are included in the
statistics, have been

official price

kept down. The statistical showing
has been good. But even during

OPA did not and
could not prevent creeping infla¬
tion. It did not, or could not pre¬
the

War,

markets.

black

vent
or

the

did

not,

hidden infla¬
due to the general

could not prevent

tion-such

disappearance

low

priced

goods and
the substitution
of
higher priced goods in our whole¬
the

lished
can

retail

and

sale

markets.

basis of officially pub¬

price

statistics, the OPA

claim that it has kept inflation

down to a few per

knows. that

cent. But every

ilris is not. the

product 7

There have !

Instead of

the

outstanding causes of unem*

ployment, of depression, or more
extensive

government

relief, and

unbalanced budgets.

■( *

Price Control No Inflation

Remedy
This

as the OPA has
frequently reported, is threat¬
inflation; but the remedy

country,

ened by

inflation

for
in

artificial

from

is not;

now

controls, such
as the OPA may apply.
The surest
and soundest way to keep prices;from
going up is to encourage*'
production and employment tee¬
the fullest extent so that therd
be

may

seller's

price

plenty

kinds in

our

goods

all

wholesale and retail

With

markets.

change from
'
buyer's market the

dangers of inflation would quickly 7
disappear.

un/
pro/

The
policies of the OPA
fotunately do not encourage

Their

duction.

effect

just the

So if the OPA is to con-f7
tinue under its .present policies'/
without change we face the in-f

opposite.

and paradoxical pos¬
of continually increasing

congruous

sibility

costs and higher prices, on
the one hand, and decreasing* inr
adequate production with increas-r
wage

ing unemployment, on the other.1
The prospect is as simple and aSs
it

Up to the end of the War, the

decline in

ample

nings

Abolish OPA

OPA

evidences- of begin/*
such declines already.
an expanding economy
that will provide more and more
jobs, the OPA has become one of
been

dangerous

1942."

1942

present

tion and distribution.

and full
employment. I do not blame those

March

can

situation of the
OPA in trying to hold an out¬
dated price line is hopeless and
even
dangerous.
To the extent
that it may succeed, it will dis¬
courage production. To the extent,
that the OPA may apply squeezes
to wholesalers and retailers, the 7
so-called principle of cost absorp¬
tion, it will discourage the distri¬
bution of goods. If the OPA sue- '
ceeds
in its
present policies it/

invest, and to undertake new en¬
terprise is' one of the greatest
dangers to the development of a
sound operating economy

world

prices be maintained?

their

confronted by further

are

organized labor for
higher and higher wage rates. In
view of these wage increases, how5*

present businesses, or
to establish new ones; but who
are deterred from doing so by the
difficulties they would face. I be¬
lieve this hesitancy to venture to

tend

one

This matter is

certain

painful

that

act, Congress drew from the ex¬
perience
of
Canada,
England,
France,-Germany, Italy and other
countries in which similar legis¬
lation had already been passed.

businesses and give addi¬

new

are

now

easy

tend their businesses or who cre¬
ate

ation and its failures

to become more arid more

[to get

not

our

prises.

better

businesses, but also for those who
normally start new busi¬
nesses
in the future, and, even
more
importantly, for those who.
may be the employees of business.
If the free
enterprise system
is to continue, then those who ex¬

would

tising and selling, for better sales
management, for more market re¬
search, for better selection and
training of those who are to de¬
velop the markets and for every

for

established

OPA has failed to meet this situ¬

has once been

ernment regulation

who

Retardants to Individual Enter¬

retard

also

bureaucratic regulations and con¬
trol I am less hopeful. Afterja gov¬

adver¬

but

other
Must

ganization.
It will be discussed
again from new angles arid view¬
points. Because it has been dis¬

their

build

competently before this or¬

and

Thursday, November 15, 1945 H

as,

were

that.

possible at this late

date to do what should have been
done

by Congress back in Jan¬
1942, that is, to fix the rates
wages and of raw materials*:
and then to adjust prices so as to1
uary

cover

the increases that have oc¬

curred in wages and raw
and

materials

1942, then it might be fait

since

reasonable

attempt

some

price controls, to last through the
period of reconversion. I think:
you
will all agree that this is "
hopeless. The chances that ; this 5
Administration may order thor¬
ough-going wage control, or even
wage stabilization, at this stage,
are
practically nil.
The

alternative is
price control,
or
if the OPA persists, then the
breakdown
of
price
control/
the

only

other

elimination

Either

the

elimination

the'

There has already
been considerable inflation of a
kind not registered in the official

breakdown of price control will'
undoubtedly result in some price

price statistics. How much is not
known, but that it has been im¬

ficient to

whole

story.

portant

can

not possibly be

de¬

Now that the

war

is over, the

price and merchandise supply
become progressively worse.
.

has
The

cover

suf/ /

the increased costs

due to higher wage and raw ma-/
terial costs.
As wage cost trends
are

nied.

--,1:3

increases, additions at least

now

going,

the

longer

the

OPA attempts the present farce of

price control, the more difficult
the situation, will become and the
y; yyy;

Voiunfe'162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438

sharper the crisis when, it occurs
akjit surely will/

part to

the

labor

organized

■:&A Condition, 'Not

Theory

What I am at present

describing
condition;

theory, but a
It' is1 now several months
V-J

The

Day.

since

processes

re¬

been se¬

conversion have already

riously set back by a combination

policies and by labor
disturbances.
There
have . not
of-. OP A

merely been serious set-backs in
the ? reconversion of war indus¬

production, but even
which there was

tries to civil

in, industries in

prob¬

practically no reconversion

lem, the situation has grown pro¬

gressively worse.
*

illustrations

few

the

from

domination

the
women's
apparel
field
averaged only 36 to 37 hours per
week.
In the millinery industry
in

the

averaged less than
week, indeed during
worst periods of the

workers

32 hours per
some of the

w^r7°hiy 30 hours per week.
FsiS
t*le time of year when
retailers
shelves
and ' counters
should

with

loaded

winter merchandise.
are

and

fall

Instead, there
the most

extreme shortages of

needed items for fall and

winter

due

price controls and labor
hold-ups. The merchandise situ¬
ation is especially critical in regu¬
lar, standard low-priced domes¬
tics, blankets, sheets and pillow

might be cited will
show you what is holding us back
cases.
from moving into full employment
Unreasonable price ceilings have
and
sound economic conditions.
discouraged the manufacture of
Hardware retailers; for example*
these goods. The OPA is holding
have few, if any, hand tools to
the line,
but there are entirely
sell for the reason that the manu-inadequate supplies of merchan¬
macturers of tools have not yet
dise being produced and sold. Is
obtained price adjustments from
that what the public wants?
Is
the OP A that permit their pro¬
that what will build up our econ¬
duction at prices that cover their
omy
and provide full employ¬
that

many

costs.

thousands of families
that would like to buy washing
machines. None have been avail¬
able'"since the beginning of the
There are

There are as yet no wash¬
ing machines to be had and none

war..

in prospect

immediately

for the

simple reason that manufacturers
not afford to make and to sell

can

present OPA price ceilings.
iThe production and distribu¬
tion of farm machinery, so much

maintain adequate pro¬
food in this country, is
being held up for the reason that
needed to

duction of

manufacturers' ceiling
prices do not permit manufactur¬
ers
to recover their cost of pro¬
OPA

duction.

Other

goods,

heavy

including

refrigerators, electric irons and
radios are not coming off the pro¬
duction lines in a normal way.
In its attempt to maintain pre¬

OPA has choked

prices, the

war
'

production of former
goods and in some instances has
the

dffc

manufacturers

forced

who

for¬

such goods out of the
market. Now, new goods are ap¬
pearing of different types of man¬
ufacture and in different styles
but
at much higher prices.
In
some cases these goods are made

merly made

by concerns never before
in such production.
;
4

Shoe stocks in

engaged

retail stores are

Shoe pro¬
month of Septem¬

abnormally low.

now

duction in the

ber fell off sharply. I have been
informed that this was due, in

part' at least, to unsatisfactory
ceiling prices allowed by the OPA.
Men's clothing
retailers have
completely inadequate stocks ot
clothing,
take care of the
men's

mands

particularly

to
de¬

increase in
from returning service men

There has been
of merchandise re¬
in these trades,
the

for

civilian wear.

problem

conversion

said to be a

fault is

of. OPA rules

combination

covering price ceil-

.fr^/and rspecificatio^ -as tcyhow
such clothing should be^ made,
coupled with a highly restrictive
labor situation. This labor situa¬
tion will bear investigation. Dur¬
ing the entire period of the war,
5
Oven when there was the utmost
v
shortage
of
manpower,
men s
,

clothing workers never averaged
than 38 to 39 hours of work

week!

present time men s
supplies are far below

At the

clothing
normal.

shortages in
over-alls.y Some factories

There

men's

grave

are

stopped shipping#these goods
because of advances in prices of
denims and the OPA has, not yet,
have

date,

provided a higher price

cover

you

shortages

these

not
go

;

Increased costs. If

know about
out and se®

these

buy/in the line of clothing, shirts, or underwear.
In women's, children's and in¬
fants' garments the situation is

you can
>

equally bad, or worse. As in the
case of the men's wear industry,
these shortages are

said to be due

try can achieve full employment
and

ment?

The OPA Cost Absorption Theory
The obstructive influence of the

of our econ¬
omy is not only to observed in
the
inadequacies of production,
but also increasingly in the chan¬
of

nels

distribution.

and

The

econo¬

attorneys of the OPA

have

developed a "brilliant" idea
that some price increases can be
granted to manufacturers to stim¬
ulate production, but theft it is not
necessary to increase the prices
to

are

increased

The

consumers.

manufacturers
simply to be taken out of the
granted

pi ices

wholesalers

hides

retail¬

and

been

brilliant idea has

This

ers.

the euphonious designation
absorption.", The OPA has
looked
at
the
operating state¬
ments of a few wholesaling and

given

cost

retailing concerns, the most suc¬
cessful operators in the country,
has observed that these con¬

and

made

high profit before
taxes during the war years and
are
now
urging the
principle
of cost absorption on the ground
cerns

that

months

the

ahead

wholesalers and retailers

can

af¬

and
pay for them if necessary out of
their past profits. The fact that
most of these profits have already
gone to the Government is not a
ford

take

deterrent
can

this reasoning.

sure

price squeezes

You

that this cost absorp¬

policy will have precisely tne
effect in reducing distribu¬
tion through the channels of trade
that inadequate price ceilings for
manufacturers are now having on
the

^ ' * *' •

NdW/to/ draw: some
conclusions:
1. There

Andre de Saint-Phalle & Co. Underwrite Shares in Con¬

practical

to be

seem

present in

Earners.

this

country all of the essential
elements for a sound, substantial

and

progressive
recovery
of
peacetime prosperity. This should
If it does not

evident to all.

materialize it will be because of

inept, unsound and destructive
government and labor regulations.
2. If the economy of this coun¬
try were encouraged, or even if
simply allowed to expand in an
orderly, natural way, without the
retarding influences of destruc¬
tive

restrictions, it would seem
entirely possible to achieve a 60
million
job ,/ economy within a
very short time.
3. It is exceedingly important
that we should all recognize the
fact that a growing economic sys¬
tem dependent upon free enter¬
prise needs an adequate number
of job givers as well as job seek¬
.

ers.

60 million job economy

at least

one-fifth, that is, 12 mil¬

lion, should be men and women
engaged as owners, officers, ex¬
ecutives or professional workers
on

their

own.

4. The real key to

and

ment

in
of

full employ¬

economics

sound

found

number

growing thriving
enterprisers.
It is
a

through their efforts, their as¬
sumption of risks and their man¬
agement ability that jobs are cre¬
ated for the masses of wage and
salary

workers.

5. The

enterprisers of our sys¬

need

tem

some

rather

than

ments

the

encouragement
harass-

constant

which

they

are

corrw

monly subjected by Government.
Such encouragement might con¬
sist of the assurance that they

retain

may

sonable

their own a rea¬
share of their honestly

6. Enterprisers may be soundly
encouraged by the assurance of a
reasonable freedom from regula¬

restrictions

and

that

not

merely hamper opportunities for
business advancement, but tend to
make

business

life

unbearable.

The

outlived

OPA

its

usefulness.

8. Business men owe

it to their

country, as well as to themselves,
take their stand for principles

sound

shares of Class A stock and 50,000
shares of Class B stock of Anchorage Homes, Inc., was made Tuesday,

economic

life.

One

offering of

250,000

Nov. 13, by Andre de Saint-Phalle & Co., as

underwriters. Anchor¬
Homes is a newly-incorporated organization whose business will
designing, manufacturing, distributing and erecting factory-built
houses.
The initial product will be a line of 41 Colonial houses of
Cape Cod design, the tentative<$
.1'—prices on which have been set at,
This offering marks ? the first
a range of from $3,625 to $7,525.
public financing by a company
Anchorage houses have been de¬ devoted exclusively to home pre;
\ v
signed to satisfy FHA mortgage fabrication.
requirements. The company plans /I The subscription books have
to make the houses purchasable,
been closed and the offering over¬
through mortgage banks, on the subscribed, de Saint-Phalle an¬
nounced yesterday.
basis of minimum down payments
■/and
moderate
monthly; install¬
ments.
These
installments plus
age

maintenance costs, are
expected to compare favorably
with rentals paid by wage earners.
taxes and

A model of

of the new man¬

one

ufactured houses* which will cost
about $4,000, will be on exhibi¬
tion at Lord & Taylor for the next
two weeks.

Robinson, Sanders and

Yearley Are With Staff
of

Robinson-Humphrey |

ATLANTA,
son,

The

stock

being

offered

certain

sales
be

for

this

Yearley II have become as¬

sociated with Robinson-Humphrey

two shares of convertible Class B

Co.* Rhodes-Haverty/Building.

for

$60.20

per

unit*

The

will be separately traded over the
counter. The Class B stock is con¬
vertible into

Class A

stock

share for share basis upon pay¬
ment of $6 per share, which is
the same as the current offering

price, until May 1, 1948; then at
$7.50 per share up to May 1, 1951;
and at $9 per share thereafter.
Through the conversion feature of
the B stock, the prospective buy¬
ers
of this public offering \ will
have the opportunity to increase
their

investment

the

to the extent of 20%

company

at the initial

issue price.

Complete
stock

conversion

before

May

•

son

late

Sr.,

Robinson, the
Roby Robinson,

President and founder

It seems

sales

retail
vear

NEW

the

same

serve

service in the Pacific

years
as

retailers

are

1, 1948,

Western Pa. Group

pect of falling
common

Now that

This

ratio

1 to 60 is the same as the respec¬

tive
A

offering

prices

of the

Class

and B stocks.

Glover & MacGregor,.Inc.;

Chairman, L.

and Treasurer,

Kay Richards & Co.

prise system.

Co.

Also

elected

Governors for

offer to sell

nor a

sales

wage

•* /

solicitation of offers to buy

THE CROSS COMPANY
60,000 Shares

costs.

head

mean

($10 Par Value)

expenses.

means

■

5y2% Cumulative Convertible Preferred Stock

rising over¬
The rising wage
rates
together with the rising
overhead, point positively to ris¬
ing expense rates. This, in turn,

Lower

Price $10 per

that it will become increas¬

ingly difficult for retailers, and I
assume

that the

same

holds true

Copies of the Prospectus may be obtained from the undersigned.

handle the
goods on which the OPA is tryin**
to establish cost absorption. Thus
the outlook for production and,
distribution for the coming spring
wholesalers,

and .summer

F. H. HOLLER &

is already darkened

by the proposals of the OPA.
This is a clear illustration of what
is meant by the title -of this paper
on the effects of the "Lenthening
Shadows of Government Controls

Over Business.'' This is certainly
not the way by which this coun¬

November 9,

1945

Board

years

gnd George R. Young,

manufacturers

increased

the

three

were:

Franklin J. Maroney, Blair?& Co.,.

and wholesalers, are

greatly

Vice-

Nathan K7 Parker,

principles should be to op¬
pose any and every control that
may
prevent the country from
achieving
a
substantial,
selfmaintained, full employment
economy based on the free enter¬

these

ISSUE

also faced by
possibility of higher wage
rates, shorter working hours and

'•

Wainwright Voigt;

of these securities. The offering is made only by the Prospectus.

the

■

Hemphill, Nbyes & Co.; SecretaryT

retail sales" they,

with

IBA Elects HHulmo

coming

faced with the pros¬

area

Major in the U. S. Air Corps.

time.

will fall off considerably be¬

low the levels of 1945.

Robin¬

son-Humphrey Co., has been serv¬
ing as a Lieutenant m the U. S.
Navy in the Pacific area.
Mr/
Sanders is rejoining the firm after
several years in the U. S. Army, /
and will.again represent them in r
South Carolina with offices in the;
Carolina Life Building, Columbia,
S. C. Mr. Yearley is rejoining the
Sales Department after
several *

most certain that

during

finance the
i/PITTSBURGH, PA.—At a re¬
expansion of the corporation's ac¬ cent meeting of the Western Penn¬
tivities./
;
sylvania Group, Investment Bank¬
Dividends on the Class B stock* ers Association of
America, the
when declared, are limited to a
maximum of 1/60th of the; divi¬ following slate was. elected:'
Chairman,
Milton G. Huime,
dend paid on the Class A stock
may

This advertisement is neither
any

;

of the
former

>,//

the

would net the corporation an ad
ditional $1,500,000 paid-in capital,
which

| Mr.

year

because
that customers want for
this season of the year are not
available in sufficient quantities.
down,

the goods

for

GA.—Roby Robin^

Joe H. Sanders, Jr., and Alex--/

anaer

units of ten shares of Class A and

outstanding
example of a regulating agency
which began with a high ideal,
served a useful purpose during the
war,
but which should now be
brought to a speedy close. It has
7.

•

Public

gained earnings or profits. This
assurance may be effected through
a sound system of taxation;

tions

Planning to Sell Pre-Fabricated Homes to WageOffering Oversubscribed.

cern

production of goods.

Christmas
are

Anchorage Homes Stock Offered

./;/

•

Conclusions,

tion

same

-/;.',

UFA to the progress

mists

prosperity.

in this industry.

During the war years, the workers

is ' not

the OPA and in part

restrictive

235 f

COMPANY; INC.

Young &
? >

,.J'i.i'j' M/.^fc-':. .'v' VY Yr J***; i

V*V-

2352

Policy of World Trade i Expansion

(Continued from first page)
to foreign markets, and par¬
ticularly to see that we make
available enough goods to help
the
liberated
countries
and
UNRRA get their proper share of

■v.-.?

way

necessities.

scarce

Although

■

the; United

„

States are making progress in the
relaxation of controls, I am con¬
cerned

fact that there

the

over

prospect of
immediate general relaxation
to ,be little

appears,
any

throughout the world.
I do not think that any of us are
so naive or unrealistic as to
be¬
lieve that we shall see a return
to
"Laissez-faire" in foreign
trade.
That is a fact to which we
of controls

minds, and is a
situation that calls for a new role
on the part of the U. S. Govern¬
ment in connection with foreign
trade.
A major part of this new
mifsf adjust

our

wants to

one

peated.

the

establishment

the

doubt be related

carrying out of this program.
We should like to know
all of

the

that era re¬

see

merce

thinking

are

Com¬

Department

In ;the

our

particular role in connection with
these organizations as that of be¬
ing the advocate of the general
interest
a

the U.

whole

the

and

economy

business

still to

well-being is

be achieved.

Who

I
:

?•
'-li

there

that

feel

with

trade

each

unilateral

curb

practices and
agreement to

recognized set of
rules, and under
the

under

other

v,;y

pos¬

nations of

the world decide to carry on their

for

actions taken

of obtaining undue
advantages which can be only
temporary in character* purpose

Function of Commerce

Department
We in the Department of
feel that one of our

Com¬
most

merce

important responsibilities is to re¬
port on and to interpret these
new
proposals in the interna¬
tional

field

the

trade

United States.

also want

the

be the channel through which the
Ideas of the trade are brought to

bear

governmental

those

upon

officials

concerned

matters.

We shall welcome all of

the

ideas,

and

criticism

from you. '
: *

suggestions,
/

which

comment

get

can

Now

the

course

program

mit systems,

restrictive; exchange

controls, trade-diverting prefer¬
discriminatory trading ar¬
considered as part of the entire rangements, and increased import
duties. In addition, there is likely
international | picture
today.
I
think it is imperative for us here to be an appreciable increase in
today to spend some time ex¬ the practice, by some countries,
amining the world situation as it of state trading or state-controlled
trading.
These things may hap¬
now confronts us.
;
pen, indeed are almost certain to
The World Trade Situation
happen, unless this country as¬
A few days ago the Secretary sumes
aggressive leadership in
of State said, in a radio address,
pointing the way to an expanding
multilateral
"Today the world must make its world trade on a
We must not only use our
choice.
There must be one world basis.
which the Department

the field of

follows in

foreign trade must be

been ratified by

that Charter has

and the United Nations
Organization came into being on
October 24.
It now seems prob¬
able that the first meeting of the
General Assembly will be held
in London in
January of next
year.

United

The

Nations

Organiza¬

with

desire furnishes

that

and

peace,
a

foundation on

firm

United

Nations

which the

Organization

can

be built.

Nevertheless,
be

can

the

human

it.

And

organization

better

than

wiser

beings who constitute
all

still

much

have

to learn in the art of international

cooperation.
The achievement of
peace
and progressive economic
advancement will require a gen¬
uine effort on the part of each
nation

ences,

great economic power to aid other
nations that may require our as¬
sistance in the abandonment of

our

barriers
mote

thus

and

trade

best interest

our

pro¬

well

that of other nations.

and

views

interests.

quire

for

not

sacri¬

common s

that

We must

world.
selves

the

and

good,

action

such

loss, but gain, because no
can
long
be prosperous
peace in an impoverished

nation

and

re¬

temporary ad¬

the

realize

must

occasional

vantage

will

good

of vision.

breadth
fice

men

the

and

both

serve

world

our¬

taking

view rather than, the
Any contribution we
the. United States could con¬
long

these

newly

con¬

ceivably be called upon to

posed

organizations,
we
have
other plans for work of the De¬
partment of Commerce in the in¬

make

would be small in relation to the
blood

that

and treasure

have

There is much

the last 5 years.
And it would be insignificant, in

do in the way of new
trade promotion, as¬

comparison with the call upon us,
should another conflagration en¬

sistance in foreign industrial de¬
velopment, and in the reestablish-

velop the world.
This is not
idealism; it is sound business and

ternational field.
that

we can

methods

ment

We
are
we

trade

believe

with

that

war

these

areas.

poured

But

going to be so important that
proposing basic organizar

sided.
its

sense.

Each

nations
common

tion

that

with

international

hope

short

time

announce
a

trade

and

you

comprehensive and

concrete program of governmental
assistance in that field. We must,
of course, work as closely as we
can

with

the foreign

trade com¬

welfare.

made

During the
make

make

general

war we saw

sacrifices

defense.

these

must

the

1 The

sacrifices

the

people
because

fighting for
opportunity
higher level of living

they felt they
a

were
free world and the

United 'y Nations.

oner-more

block

Y
Y

con- *

the

are

create

job is

have saved

institutions.

only half done.
advancement -in'

But

the

Progres¬
economic

ute

divided

are

and

nessmen

lantic.

the

argeement is in force.
Ob¬
viously, then, if trade is to in¬
as

that

insist

trade

should

not

placed in a straitjacket by private
arrangements. The United States,,
therefore, suggests that the coun¬
should

tries

individual

take

would

tions world trade will shrink, the

jeopardized.

ments

But

The

Anglo-American

And

that

Parley

under

why the current
being
conducted

conversations
with the British

of such great

are

importance. ,: These conversations
are
concerned not only with the
extension

substantial

credit

the United

Kingdom, but also
with
commercial
policies
and
problems
affecting
the
trading
relations

between

nations.

The

subjects under consideration in¬
clude import and export tariffs,
discriminatory arrangements, and
nontariff trade barriers, such as
quotas, subsidies, and exchange
controls.
In addition, they em¬
brace such topics as state trading,
commodity agreements, interna¬
tional cartels, the establishment
of

international

trade

ization, and international
ation in

the

organ¬
cooper¬

maintenance of

em¬

States

has
We
of

been

of these subjects
abundantly clear.

most

made

favor
tariff

the

United

the

selective

barriers

reduction

accordance

with

provisions
of
the
Trade
Agreements Act, renewed by Con¬
gress last June.
We also favor
the
rapid elimination of
tariff
preferences and discriminations.
With
adequate
safeguards
this
country believes in the elimina¬
tion

quotas,

embargoes, or
restrictions; in
those, few instances in which
quotas might be required, pro¬
vision
should
be
made
for
other quantitative

their

nondiscriminatory applica*

tion.

Subsidies, including those on
production and exports,
should be brought under supersvision.
Local taxes on imported
products should be limited to
domestic

rates

higher than those levied

products

produced

home.

Although in times of peace
the .United -States does not itself
engage in state trading, it recog¬
nizes

that

countries

number

maintain

other

govern¬

mental

monopolies.
Agencies of
government
conducting
foreign

trade, therefore, should give fair
treatment

friendly

the

states,

and

commerce

make their

pur¬

may

sajes

the basis of

need

delude

our¬

are able
enterprise

make

must

financial
strength
to permit them to em¬

the

brace

this

only

which

conversations

officials

regarding

with

the

substantial credit

not

our
best interests, but
also.
It is for > that reason

that

system

theirs

British

extension

are

of such

vital

importance.
If the United
Kingdom is to abandon its system
of exchange controls which chan¬
nelize

and

to reduce

restrict

trade, if it is

eliminate tariff pref¬

within the British Empire,
it must have the financial

erences

then

backing to make that possible.
During the war the United King¬
dom
incurred,
despite
LendLease and Canadian mutual aid,
large obligations to Empire and

also prove desirable to
in¬

other

countries

the

form

blocked

sterling accounts.
These
obligations were accumulated be¬
of

cause

the

United

•

Kingdom's

tory shows that after a great war
extent and violence of price

urgent need for food and essential

fluctuations

ports

the

marked.

war

primary products
to
be
particularly

likely

are

instances

if the principal producing
consuming countries can par¬
ticipate with equal, voice in the
formation of a commodity agree¬
ment, a great forward step will
have
been
taken
in
alleviating
distress, establishing stability, and
promoting the general prosperity.

negotation

such

the

necessities

war.

Moreover, during the transition
period there will be need for in¬
creased imports into the. United
Kingdom to provide, in addition

kind,

materials, and because ex¬
were
drastically curtailed.

meet

this

and

food

the

stuffs,

materials

for

reconversion.

essential raw-

reconstruction'
And this will

and*

occur

at a time when exports can be
expanded only gradually because

productive capacity will be lim¬
the speed of reconversion.

agreement,
however,
concerted
efforts
should be made in
the

ited by

The

United

countries

will

require

Kingdom, therefore,
dollars to assist in
putting its financial house in order '
tion through the diversion of re¬
and to pay for its import deficits
sources from uneconomic utiliza¬
the
transition
period.
during
tion.
Such principles should, of Without this help, it will be im¬
course,
be incorporated in the possible for the United Kingdom*
agreements themselves
to
safe¬ to participate with us and other
guard the interest of consumers nations in the cooperative reduc¬
concerned

consumption

and

to promote
problem which

increase

reduce produc¬

tion of barriers to trade.

solution to the

originally

Without

this

called

forth the agreement.

help, they will be forced to
strengthen the sterling bloc and f

ly,

the

Undoubted¬
international
economic

machinery should also provide for

Empire preferential system;

&-.•

in considering the piight ;
agency to deal with the prob¬
of the British, we must not, and
lems of international water trans¬
we cannot, forget our other Allies"
portation.:
;
who fought ncr less; gallantly and'
heroically at our side. They too' >
An International Trade
suffered great loss, of life1 and" Organization
V: great destruction of property. The
In
addition
to
removingy the claim of these people for financial *?.•■
shackles from trade, and to the aid to alleviate their distress and'
establishment of equity in trading suffering, and to. assist in. reha-v
opportunities,
suggestions
have bilitating ? their, .war-torn coun- ,
been made for the creation of an
tries, cannot be ignored.
On the
International Trade Organization. basis of their contribution to the
Standing beside international War, and the need of their people, !
agencies dealing with currency, we / cannot neglect those
allies
investmentj agriculture, labor, and which require and seek our as-Y
civil aviation,^ it would be de¬ sistence.,-.
.Y'YYY*
Y
YYYY
This assistance to the devasted '
signed to cope with the problems
of international
trade, particular¬ countries of Europe and Asia I
ly tirade briers, .restrictive busi¬ submit to you as a business prop¬
ness practices, and international osition.
Without it, they cannot
commodity arrangements. As one quickly rebuild their damaged
of
the
specialized
agencies
it economies; they cannot soon be¬
should be brought into close re¬ come large markets for our goods;

But,

lation

producers; \ On these

private

trade,

necessary

pro¬

establishment of

not

available to those countries which

action

and

could

step

basis,

preserve

machinery to deal on
an
intergovernmental basis with
commodity problems causing
widespread
distress because of
ruinous prices resulting from a
burdensome world surplus.
His¬

Social

laws

This

foreign

consider the

to domestic

using

take

biisi-

conference

must

lateral

ternational

considerations,
and
monopoly of im¬
ports to afford undue protection
avoid

own

cedures.

Prior

their

must

and

both sides of the At¬

alone is not
enough.
If we are to achieve an
expanding world trade on a multi¬

rest with member govern¬

which

officials

Such

selves.

tion, trade, levels of employment,
real income.
To accomplish

world still be

endeavor,

this

Favors Foreign Financial Aid

and

action

cooperative

trade

reduction of tariffs, the ultimate 1
elimiijation Y of preferences / and :
other trade barriers, and the es- ...
tablisbment' ..ofYaiv Internatioiial
Trade Organization.
\ Y ^

governmental
barriers,
same
governments
must

these

have; for fts fagenda? the selective Y;

the result of the reduc¬

tion

success

employment which has been

suggested

goods under its control can move
between zones of influence while

crease

greatly to. the

international conference,

the

among

cartel, none of the

this

commercial

great price,
free

between the two largest
trading nations on the subject I
have mentioned, it would contrib-

and

sian group, the sterling group, and
the dollar group divided against
each other.
Under such
condi¬

world

members of

may

chases

our

reached

But when the markets of the

it.

Unless

find ourselves engaged in
costly trade war, with the Rus¬

for themselves and their children.

munity in the development and in sive

nation

contribution

to sanction

enlarged organiza¬
will deal
exclusively

' International Cartels

general welfare will be adversely
affected, 'and the peace of the

successful

are

cooperation cannot be oner

tional changes within the Depart¬
ment*
We are asking Congress
an

out

common

activities

are

the

building to peace
through international cooperation.T Y

objective, a special interna¬
tional agency might be established
to receive complaints concerning
restrictive
practices of interna¬
tional cartels, to obtain and ex¬
amine relevant facts, and to advise
the member governments regard¬
ing the remedies that may be re¬
quired.
Enforcement
of ,■ these
recommendations necessarily

the other's ployment.
problems and to adjust divergent Y The
position

pro¬

work in

arch,

relationship it would

stitute

acceptable and beneficial to all.

to curb the
activities of private combinations
which would prevent
access on
restrictive trade controls, but we
equal terms to markets and raw
must also give concrete evidence materials
and
would
interfere
of our willingness to reduce our with efforts to increase
produc¬

understand

short view.

yYYY-

In addition to

nection

these

with

In this

(

struc¬

great

are

sibilities in having the

Charter

points, this Government
fair principles

establish

foreign it. After all, goods can surmount
closest cooperation and we want countries to control foreign trade a tariff if they pay the duty, and
your support in making our pro¬ -are soon modified, world' trade enter into foreign markets
des¬
gram possible.
may be strangled by import per¬ pite a quota, if they fall within

upholding it. The State De¬ tion provides the machinery
partment must obviously take the through
which nations of the
lead in negotiating the arrange¬ world may cooperate to promote
ments with foreign countries and peace and economic well-being.
in considering the U. S. position This will not usher in the millen¬
in respect to its effect on foreign nium.
Progress at times Will be
There Will be discourage¬
relations. Both Departments must slow.
represent I strongly
the
general ments that we should be prepared
welfare of the U. S. in its broad¬ to
face, and obstacles that we
est sense and in its rightful and must strive to overcome.
But the
proper position in world economy. free peoples of the world
want

ate > concern

ture

;(,■

seeks

i The United States has long, be¬ The functions and activities of an I
with lieved that private international international- organization of this
business and foreign trade have cartels should not be permitted kind are one of the
subjects of '
a
special interest and a special to engage in practices which re¬ the current
conversations > with Y
those
matters
when you
bring obligation
in international co- strict trade, thus, defeating the the British.
them to our attention.
We intend operation.
Unless
the
present efforts of governments to expand
i
If substantial agreement can foe! to ask for and to give you our trends in the measures of
troubles and difficulties in
doing business abroad, so that we
can
really do something
about

35 nations,

( .

social

and

your

to
inter¬
national
economic organizations for all of us or there will be no
which I have spoken of and which world for any of us." Fortunately,
we
hope will lead to the substi¬ Franklin Roosevelt realized the
tution of rational discussion and truth of this statement long ago
mutual agreement for unilateral Under his leadership this country
action and outright economic war¬ called a conference of the United
in
San
fare.
In the decade just before Nations
Francisco, and
the war we all saw enough of the there a Charter was drawn pro¬
effects of unilateral action and the viding the mechanism for inter¬
retaliations that soon followed— national
cooperation.
Happily,
will

role

•

«*r«»

and other

Thursday, November 15, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

with

the

Council,

Economic

and

provided in the

and they cannot participate with Y
us

program

for, the expansion

{Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438,

(Continued from page 2334)
,
J
Weathers, City Securities Corp., Indianapolis, Ind.;
[Webster, E. W. Price & Co., Inc., Kansas City, Mo. 4;
W.

NSTA

SPECIAL

EXECUTIVE

hee

Arthur
,

COMMITTEE

A>; The Special Executive Committee

of the NSTA for 1945-46 will

Victor

Mosley, Chairman, Stroud & Company, Philadelphia;
Senator Stanley McKie, Vice-Chairman, The Weil, Roth & Irving
Co., Cincinnati; Russell Dotts, Bioren & Co., Philadelphia; Edward H

these

think

taken,

countries

mis¬

are

control

we have no quarrel
Such things are their

but

with them.

affair.

that

which

do want is

tions—we will take

chance

our

can;

countries

- ; AAA A A'

run /

lems

should

can

■

American

George L Burr Joins
Cole, Hoisington & Co*
.

business

has

>•"'*I•'*»*;•• A A*;;.'■'

Edward H. Welch

Thomas Graham

;

This Committee is "Contact Committee" between the NSTA and

various governmental and semi-governmental organizations, such as
the National Association of Securities Commissioners, Securities and

Exchange Commission and National Association of Securities Dealers,
Incorporated.

It also

has the

prime responsibility of directing the
contacts of the traders organization with the various Committees of

return

Welch, Sincere :& Company, Chicago; Thomas Graham, The Bankers
Bond Co., Louisville.
'
•
/

C^ngress';|iaying legislation affecting the inyestmen|: industry^ - A

NATIONAL SECURITY TRADERS ASSOCIATION
/
There 'will be a meeting of the Executive Council of the National
Security [Traders Association on Thursday, Nov. 29, at 1:00 p.m., at
the Palmer House, Chicago, to discuss various important matters of

the NSTA.

"After

::A;

poll of the National Comrrtittee; it was^ found that; a

would not be present for that day so the call could not be
a meeting of the National Committee,!
V ■■.:;
A
Chairmen and Vice-chairmen of the Various ] Committees/

quorum

made for

1! All
Presidents of Affiliates, and National Committeemen, who are in
Chicago on that day, are urged to attend the meeting in an advisory,

capacity.

private trading.

■•Another

reason

financial

Prior to

ing

join¬

Lazard
1927,

ranty
York,

where

Act

Mr.

was

the

since the revised
passed by Congress last
suggest that it is time

announcement

unessentials.

exactly what several Eu¬

countries are now doing,
will go on doing it until

ing circle, we mean

and they

had

years

Co.

oc-

George

cupied the po-, A

Corporate Bond Committee is anticipated on that
Committee Chairman will have his complete
plans for^ the present year ready for presentation to the Executive
It is hoped ever.y

Council.

■■

•

This odvertUement appears as a matier
\

sell

nor a

exactly that.

;

-m-A

of these securities.

offer ; \
'■ A

'The offering is

this;meeting it will ben determined; when ^ahdlwhere tthei

Annual Convention will be held.~

of record.only and h neither

solicitation of offers to buy any

made only Jby the Prospectus.

NEW ISSUES

A;>;T

of-world trade

This aid is not

basis.
a

credit,

gift; it is

credit which I

and

krtkraftlManufecturiiig Corporation

on/a multilateral, goods, ArContentment^A and - peace:

will be

am con¬

vinced

can

we are

Today

and

the

world

must

choose.

choice.

This time it must be One

But

there

really

successful in removing the

repaid if

barriers to world trade, thus
moting its expansion.
economic

pro¬

not

take into account the tremendous

which the

well-being of
ward

the

men

100,000 Shares 6% Cumulative
r *

1 '

enhanced

will make to¬

maintenance

world

George Predicts

Senator Walter F. George (D.,
Ga.), Chairman of the Senate Fi¬
nance Committee, in
commenting

lend

now

and

reap

the

Nov.

the

profit of expanding markets, in¬

bill recently signed

creased goods for our consump¬
tion, and enduring peace?
Or to

dent,

withhold

our

aid and watch trade

(Par Value $5

100,000 Shares Common Stock

stated

that

Price $5 Per

I submit to

by the Presi¬
Congress ex¬

Copies of the Prospectus are

pected to reduce taxes still fur¬
ther next year for the purpose of

dends

the

form

markets,

made

his

remarks

while

At¬

lanta with Secretary of the Treas¬
ury

Vinson

rally—-

(Unit—1 Share Preferred—1 Share

may

Common)

obtainable only from such of the -undersigned
securities in compliance with the

legally offer these

A securities laws of the respective

you that dollars invested now in
rehabilitation will pay rich divi¬

Unit

reduction

tax

diminish, free enterprise decline, relieving individuals and to give
apd the world, divide into, three additional relief to some types of
camps for
a
war of trade—the business, according to Un|ted Press
Russian bloc, the sterling bloc, Atlanta
advices;
The
Senator
and the dollar bloc?

Convertible Preferred Stock

Per'Share);•k'^AA-aA;A<

Further Tax Cuts

peace.
Which is the better bargain? To

wisely

And these

considerations

contribution

a
Victory Bond
A-V--, A - A;

for

Kobbe, Cearhart

V',!
'A; 4 ;
"
November 14,1945

-'J

Incorporated

Company

Burr
,

graduate
of
Harvard
College,
1910, he received a degree
engineering from Colum¬
bia University two years later.

class of
in civil

nary report of the

date.

Vice-President.
Mr. Burr is a director and mem¬
ber of the Executive Committee
of Associated Dry Goods Corp.
and Purity Bakeries Corp.
His
other directorships include Detroit
Edison
Co., Texas ; andPacific
Railway Co., Creole Petroleum
Corp., (Public Service Corp. of
New Jersey, United Corporation,
and Canada Dry Ginger Ale.
A

i " The first report of the Constitution Committee and a prelimi¬
'

sition of

trade-

Foreign Trade Council will do
everything it can to support a
program
of really effective re¬
ductions on both sides. We ought
to do our best to demonstrate that
the United States means business
in this matter and that when we
talk about the reduction of trade
barriers and the removal of dis¬
criminations all around the trad¬

Burr

been with the

agreement negotiations with sev¬
eral
important countries. When
that announcement is made the

transportation had
been bombed nearly out of exist¬
ence—if the only place we could
get < much
of
the
equipment
necessary to rebuild it was abroad
—and if our supplies of foreign
money
and foreign credit were
limited, we would insist on using
them for the equipment that we
and

;

Freres in

trade agreements

This, is wholly natural. ;i If our

ropean

con-

h ounced.

New

for

-G,u a
Trust

purposes,

not

m e n

for

June.

and

s't

good deal of
silence in official quarters about

are

needed

a n

There has been a

reason.

That is

goods, and in particular that
eliminate discriminations
against us.
' AAA AaA A
A/ AAA A.

short of foreign ex¬
change "and need to apply what
they have to the most essential
They

ted

they

of foreign trade and es¬
pecially of imports by some gov¬

restrictions

other

Co 1 e,

sultants,

Our

the A close

for

and

economic

other
tariffs

i t h

counselors and

course,; entitled to ask that
countries / reduce
their

control

ernments

industry

■i

emergency

Hoisington a &
Co., Inc., in-

intelligently

vigorously, the increased au¬
thority conferred by the recent
renewal of the Trade Agreements

reconstruc¬
tion will hasten by so much the

part¬

become

ass o c
w

and

operating trustee of Texas Pacific
Land Trust,
-

going ,on, foreign" trade aM
closely;. controlled by * Govern-? Act to make reductions in our
ment; order along ; with AeveryA tariff. When we do that we are;
give

Freres

exporters.
But
the
of a high level Of
activity at home itself
up

about, we must iuse,

Burr, formerly

Lazard

ner

requires the maintenance and ex¬
pansion of a .brisk foreign trade
in all directions;
To bring this

getting ■ production started
again; is so hfird' and sq; complir
Cated
that
everyone
concerned
seems to feel that only. Govern¬
ment
has
enough authority to
handle it.
Therefore, while that

Whatever

Government and business.
confident that neither will

recently during the war emergency

mean

and

can

car¬

orders. to

which

dollars

building

else.

The

world

for;

fail to do its part,

high gear, it chews up enormous
amounts of raw materials, J Many
of these come from abroad, and our

been, the
job of putting the pieces together

formulation and

both

main¬
regular operation of
American;; industry.; Whether
American
industry
operates
in

the United Nations have

help

elements

are

program

purchases of them produce many

thing

these

trade.

do to prevent dollars

smashed

dis¬

can

rying out of such a program im¬
poses great responsibilities upon

say!1

difficulty of the job of reconstruc¬
tion.
When a country has been
as some

policies

tain full and

One of the- mainAreasons is the

thoroughly

and

All

from becoming scarce is to

in¬

American

A" One extremely important thing
that

least

Nations ought to get
together to discuss trade matters,
and they ought to do it now.

scarce A in foreign
for that reason that

your arms, we

any

The United

exporters
not in /the

cussed, information and ideas ex¬
changed, and agreements reached;

agree¬

exporters .think
importers
are
pretty good people.
Strength ; to

they

deal with them,

dollars

long

think they have to.
We need to understand the rea¬
sons why this is so,/ko; that
wp

Dotts

all. American

that

hands.

is.

of these, and
important. We already
have an international organiza¬
tion of busipessmen, but govern¬
ments also act on trade matters,
and so far they have no organized
international forum where prob-"

are
permitted
currencies, * It is impor¬

Traae

at least as

restrictions

tant

closely.; They are doing this not
becauseA they Awant. to, but beM.

Bretton Woods

the

ments

ernment,Abie; cpntrpllingAit/Avery

Russell

op scarce

prefer private
principle, but they are
still
conducting
their
foreign
trade directly through the Gov¬

G. McKie:

tion.

ternational

imports and exchange
now
the greatest im¬

under

business in

cause

We now have-.United Nations or¬
ganizations "set up or proposed for
security* for relief, for banking,
for investment, for food and agri¬
culture, for labor, and for avia¬

AS Shortage of foreign exchange is,
of course, A a long-time as well
as
an
emergency
problem for
many countries.
This was recog¬
nized at Bretton Woods, and even

getting, in fair and open. com¬
petition, our share of whatever
foreign! business they originate.
Other

pediment our exporters face. A A

they

What

conduct their foreign
trade on trading principles, and
buy and sell where/goods are
sound and prices right and pay¬
ment prompt.
If they do that—
and leave political preference out
of the conduct of trading opera¬

Stanley

organization in the field of trade.

many

own

R. V. Mosley

It is time for some international

(Continued from page 2333)
they can [see their way clear to
foreign countries, and we release their control.
ought to take la good look at the
For this reason also, emergency
reasons for this.
A1// A A/A?/ help in reconstruction, especially
In: some countries there is a
financial help/will hasten the day
preference in principle for the when foreign countries can return
conduct of trade by Government
their; foreign
trade
to
private
rather than by private traders. We
hands and can remove the strict
?

;

States./

Newburger & Hano

Thursday, November 15, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

2354

Opposition to Si. Lawrence, Water Way Opposed

By Rail. Workers and Management in U. S.-Can.
By BRUCE

ing and the U. S. dollar, and

Canada no longer
and on the purely economic
the sterling area.
changed.

This area,

■

contrary to popular
has

not

come

their respective
sterling.
The

cur¬

feature is secondary. The
main advantage accruing to ad¬
rency

herents

bloc

Sterling

the

means

established

participation in
foreign
trade

system, with ramifications

throughout the commercial
world,

of the dis¬
British loan,

The present progress
cussions

the

concerning

success

of which presum¬

another

Dominion

embarrassed

been

develop¬

interesting

The

ment.

has

long

by the general

MUNICIPAL

consider

the

establishment

independent currency-unit linked
directly neither to sterling nor to
the

imple¬
Plan, the

ment the Bretton Woods

supplement the U. S. dollar
of the Sterling area.
The
greatest obstacle faced today by
this country in its effort to ex¬
pand foreign commerce is the
scarcity of U. S. dollars within
the Sterling area. Thus Canada's
inclusion in this group could help
to an important degree to give a
balance

the

world's

the

call

for

re¬

demption of the Dominion 3s of
1953, 1958 and 1968, duly brought
about a belated upturn in the high
grade section. The small floating

CANADIAN STOCKS

supply of direct Dominions, guar¬
anteed issuer, and high grade pro¬
was

INCORPORATED

TWO WALL STREET
NEW YORK 5,

N. Y„

supply

externals, that
ly called

RECTOR 2-7231

of the recent¬

some

With

regard

the

to
of

course

possible

the; market

high

grade Canadians are still
out of line with comparable do¬
mestic issues, and the Canadian

CANADIAN
STOCKS
—

Banks

—

Mines

Bought-~$old'*-Quot4d'

Membera Toronto Stock Exchange

61 Broadway, New York 6, N. Y.

private wires to
and Montreal

market level.

Toronto

and

Mr.

Fraser

said:

this

situation

go to
the
the railroad industry
unemployment, as well
as
to the public debt which is
bound to be involved, and that
means taxes super-imposed
upon
an
already
very
difficult
tax
problem." Railroad employes and
their families, he
said, number
somewhat above 4,000,000 persons
dependent upon a payroll of rail
carriers now running well above
$4 billion annually.
ers

and to the

importance of pre¬

Urging the
serving ? the

railroad
industry
against "unfair and unwarranted
competition," Mr. Fraser reviewed
the industry's impressive record
of performance during the war
and

said:

"The

Seaway project is

project

each

months
each

Runyon, a partner in
Carlisle and Jacquelin, 120 Broad¬
way, New York City, and a mem¬
ber of the

New York

change, died
age

of 71.
a

his

Stock Ex¬

home

Mr. Runyan, in
member

1908,

the firm of

Carlisle, Mellick & Co., which
succeeded

Carlisle

quelin,

the

&
,

was

Jac¬

those

and

railroads,

less business for the railroad

■

Exchange mem¬
M. Rosenthal to

year

ily follow the diversion
of a
large volume of tonnage during
months out of twelve, then

seven

the

of the

spending

be¬
serious matter indeed. I

comes

have not covered the field.

can

envision imports

coming into this
country as ballast via the St. Law¬
rence
Seaway,
and
at
ballast
freight rates;
coal from Nova
Scotia, Wales and Sweden; iron
Sweden

from

and

Belgium; wood

pulp from Scandinavia and Rus¬

sia; oil from Russia, Romania and
the middle east, all dumped on
American

the

rates

market

undersell

American

distress

and

displace

goods.

"There is

evidence that the

St. Lawrence Seaway has ever had
but it has been noisly agitated by

broad

American

public

—

which

Fraser

contended

Lawrence

Project

tradiction

added:

this

dilemma

will

take

and polit¬
ically, I think we can all agree
that huge expenditures of money
which will in the main only in¬
tensify our problems should be

economically

small group for many years.
The danger is that the noisy group
of advocates will prevail over lack
of

White

that

the

would

declared

St... Lawrence

would

this

believe

hurt

that

are

terest in it and don't know much
about

it, nevertheless their rep¬

resentatives

prevailed

Congress

political reasons—and when I

say

upon

political

axiom

I mean the old

reasons,

political

partner

Dean

''f

ingham to act
floor of

the

of Moore Leonard

Leonard

alternate

Exchange for Taihea
&

Lynch, * was withdrawn Nov. 1.
Privilege .of Sidney T. Bailey to
act a$
alternate for Frank K*
Hawkes of Hawkes & Co. will be

withdrawn

Nov. 15.

Privilege of John P. Cronin to
act

alternate

William' T.

for

of' Hilbert

Emmet

Co.:j

withdrawn Nov. 3.

was

Privilege of Edward B. Scbriell
to

act

Nov.

alternate

Meehan

will

for Joseph A.

withdrawn

14.

Richard

partner
became

in
a

Newburger, limited

Newburger & Hano,
general partner, as of

1. ' "'

Nov.

;;
' •'£:
21M. Fox, member of the
Exchange, retired from partner¬
.

James

ship in Robertson & Co. on Oct.
'*7*

1945.

iztt,

Richard. Kinnard

delphia,
Noel

firm

of Phila¬

partner in Van Alstyne,
Co., withdrew from the
3life,
? :

Oct.

Thomas

Berentsen

retired

from Ingalls & Snyder oh Nov% 7.

the

pretty

without

it.

EEworthy Forms
Additional Partnership
FRANCISCO,

SAN
Mark C.

CALJ8.—

Elworthy has acquired a

membership dn the San Franbfsco
Stock

Exchange, and has

Mark C. Elworthy & Co.,

ter

Street,

partnership Vitfi

Nion R. Tucker,

heimer,

formed

IILet¬

.Ralph E. Oppen-

Stanley

Dickover,

Henry J. Bates and Louis J. Spulleiy Jr.

Partners are all

and associates of
a

corporation,

officers

Elworthy & Co,t

have

got

this

well, in

war

another

the atomic bomb and pos¬

war,

sibly other engines of destruction
yet

developed

will undoubtedly

science

affect the out¬

have completed

the St. Lawrence

project or not.

whether

come,

"If

isn't

necessary

de¬

our

fenses, and if it won't make work
for American workmen, then we
view

must

entirely

from

an
■

economically

of defense.

purpose

along

Mark

"We have heard it advocated for

Seaway

asked

scratch

'you

back, and I'll scratch yours.'

the

hurt

be
for

may

support it

"all

that

America, American business and
American
labor,
and
to
bring
about

against the St. Lawrence
Project because they have no in¬
nor

economic viewpoint.

opposed to the utmost."
Mr.

Privilege • of Charles F. Froth-

for

St.

support,

months."

the

»■

equipped to take over the trans¬
portation during the other five
that

continue

Witter & Cq.

billion

understanding and because of
lassitude
on
the
part
of
the
American
people..? There, is al¬
ways, of course/ the further dan¬
ger that while American citizens
in some sections may be neither

Mr;

Bertrand J. Foley will be consid¬
ered on Nov. 15.
Mr. Foley will

road service that would necessar¬

months'
with
five

operations
would be impossible because of
ice conditions.
With the project
completed the railroads would be
in the position of standing by for
sevens months
with
a
plant
in

bondholders

Lawrence

St.

a seven

five winter months

—

year

men

suppliers, and a deteriorated rail¬

"The fears of the railroad work¬

socially,

Clarkson

became

WHitehall 4-8980

generally high¬

Clarkson RunyonDead
.

CHARLES KING & CO.

Direct

f concerned over the St.
plan and are on record
times in opposition to it.

that
jobs
and

fewer

railroad

bankrupt railroads,

miners,
loss

when

but

means

stockholders

many

where

replaced

by internal issues.
future

Industrials

Lawrence

that indicates

billion

American

for
and

are

policy of reducing external in¬
debtedness
is
another
factor

NY-1-1045

will

much;

means

other
coal

workers

"Recognizing that the develop¬
ment of atomic energy may in¬
tensify our difficult responsibility
of attempting to adjust ourselves
sociologically in a world where
scientific genius—under the stress
of two wars—has leaped ahead a
century. or more,
and without
knowing exactly at this moment

bonds

budget

pro¬

railroad

quickly absorbed at
un¬

the

foundly

the

from the standpoint of both trans¬
portation and power, is "the con¬
of
everything
we
un¬
learned" in the 20 years following
satisfied. As was to be expected,
World War I, namely, "that prog¬
Albertas were inclined to react on
ress
in
production, whether of
profit-taking, and some degree of
goods or services, is meaningless
new issue indigestion.
unless accompanied
by employ¬
Internals were in fair demand
ment and earnings
sufficient to
and free
funds held steady at
give balance to all elements in the
9|/4%. It is possible, especially in field of
private esnterprise."
He
view of the dearth of

vincials

higher prices, and a large
derlying demand went largely

A. E. AMES & CO.

billion and

about $260

now

likely to go to $300 billion before

damage

dollar.

In the event of failure to

nouncement

debt

Turning to the market for the
past" week, the anticipated an¬

;£§

Railroad

Western

the principal speakers.

in Opposition to the St. Lawrence
Project,
which
sponsored
the
meeting presided. Asserting that

economy,

CORPORATION

were

consequently that parity of ex¬
change is the proper relationship.
Canada has in any case reached
the stage of economic independ¬
ence, and if the
decision were
reached to join the Sterling area
it would then be Opportune to

better

PROVINCIAL

Co.,

balanced, I don't
suppose another billion added to

GOVERNMENT

Lackawanna

Huntress, Chairman of
the. New York State Conference

funds

CANADIAN BONDS

White, President of the Delaware,

Carroll

ably rests the fate of the Bretton inclusion of Canada within the
does not in¬
Sterling area would strengthen this
spire too many hopes in this di¬ economic
group immeasurably. The
rection.
Failing
a
universal Dominion would constitute a
per¬
scheme
permitting
multilateral fect link between the
sterling area
conversion of currencies, Canada
and this hemisphere, especially in
will be faced with the necessity
view of its strategic position at
of making a vital decision.
the center of the air map. A more
Should Canada join the Sterling
immediately practical considera¬
area it would no doubt give rise
tion would be Canada's capacity

;

Transfer of the

...

conception that the U. S. and Can¬
adian
dollars are identical, and

Woods currency plan,

changes;

States

vigorous opposition to the proposed St. Lawrence Seaway-Power bership of Paul
In the past the Dominion
development at a luncheon-meeting on Nov. 7, at the Hotel Biltmore, Henry March will be
considered
precarious balance between sterl¬
New York, attended by several hundred business arid labor execu- on Nov. 15.
Mr. March will con¬
its primary preoccupation had been the ^tives.^
T' ' ;• V;
'! :V tinue as a partner of
Ladenburg,
of U. S. dollars. Today the position is
H. W. Eraser, of Cedar Rapids,
Thalmann & Co.
has to seek to create U. S. dollar funds
Iowa, President of the Order of beneficial for our country to pay
Transfer of the Exchange mem¬
side Canada is ineradicably attached to
Railway Conductors, and William its share of over a billion dollars bership of Martin L. Cohn,
^
for the project. With the national

into
being merely by reason of the
linking by the members of this
conception,

rencies

The New York Stock Exchange
has announced the following firm

choice but to preserve a

conservation and acquisition

group

Exchange

WeeUY pirm Changes '(J

the Sterling area?

Canada join

Will

has had

Spokesmen for nearly 2,000,000 railway workers in the United
and Canada and for railroad management declared their

WILLIAMS

New York Stock

just
with

power

proved

aspect

that

much and

can't

get

.cheap power,
to i the "Amer¬

ican people, without it than

it."

Buy

remains

benefit

■-.* r.

With respect

More Bondsc

with

?j".

civJl -7®.'Z£ a

\
'

This Time

Buy Victory Bonds
% 5;f

Wood, Gundy & Co.
Incorporated
14 Wall

Street, New York 5

Taylor, Deale

Company

64 WALL STREET, NEW YORK 5

WHitehall 3-1874

PoHMibx Securities
Orporatiom ■;§;.
.

40 Exchange Placed New York 5, N.Y#
Bell System Teletype

NY 1-702-3

...

iVolume 162

Number 4438

THE COMMERCIAL & FINANCIAL CHRONICLE

Hays Exec. V.-P. of

Hits xCosts
W

Cinti First National

.CINCINNATI, OHIO—President
Waldo E. Pierson pf the First Na¬
That

the

market

for

highest

redemption

today
(Nov.
15)
OX 840,000,000. bonds. The Gov¬
ernment's; action naturally rein¬
forces the already acute need

grade State and municipal bonds
has recouped virtually ah of the
loss suffered in the aftermath oi
,Y-J pay was

$13,050,000
Md.

bonds

Issued for/ various

tal purposes, and due

1950 to

1964

headed

Corp.,

the

funds, the League of Vir¬
ginia Municipalities approved at
its

•

the

Despite

the

amount of bonds

^.received

bids

tain

property;

(3)

in¬

appropriations for

the hank stock tax; (7) Increase

Cincinnati,
bank's

has

board

Reuben

public utility

receipts.
*

5jS

retain much of their overtime f»ay
when

they

overtime

are

longer

The

work.

policy

because it

not succeed

Hays % Execu¬

c e

President / p f
the bank, ef-.

workers

pay

much

Mr.

Hays re¬
signed as First

possible
for 40

the

the
Re¬

Bank of

serve

to;?

the

First National

post.
dent

di¬

said

making

nouncement:.

"Mr.

National

Bank

experience
fields

the

an¬

Hays brings

the

wide

First

practical

as an executive in the

During

banking and finance.
the last 10 years, as an
of

the- Federal

Reserve

Bank, he has kept in close touch

The City and County of San with the
business, financial and
country.
In each Francisco, Calif., has completed a
agricultural interests of the areas
instance; the leading group mem- decade of continuous reduction of served
by our bank. As part of
;/j ber was a nationally known bank¬ debt, with the June 30,
1945, ag¬ his duties as First Vice-President,
ing institution, with the
three gregate of both direct and con¬ Mr.
Hays has had general super¬
-."also rans" being headed by the
tingent obligations (latter repre¬
vision of the Reserve Bank's
First National Bank of
Chicago, senting Golden Gate Bridge and
branches in Cincinnati and Pitts¬
(the Chase National Bank of New Highway District
bonds), esti¬ burgh."
•
York, and the Bankers Trust Co., mated at $142,013,300. This com¬
"We
welcome
to
our
official
,

JS houses in the

constant

labor

manage¬
amounts

crease
profits.
The new policy
Would promote stagnation.- There
just isn't any way to put costs
up, and to hold prices down, and
to be prosperous while doing those
two things."

divi¬

and

reserves

be paid out in wage in¬
there would be almost no

venture capital.
That would
bring disaster because it is ven¬
ture/: capital which creates new
jobs which we need now as never
before.
Finally if the proposed
procedure
went, into, effect
it
would stifle competition because
management would
be -1 i 111 e
tempted to strive to cut produc¬
tion costs in order to increase
volumes of sales and thereby in¬

profits which might be
earned would be allocated to the
for

young

new

any

company

creases

by which rather

restricted

and

chief

"In the second place if earningsrestricted amounts should

reduced

between

out

and

ment

the

above

profits have been increased,
how far these can' properly
be passed pn in the form of in¬
creased wages.
This appears -.to
imply that agreements would be
worked

that

by which American industry

have

and

Reuben B. Hays

the

Cincinnati Branch of the Reserve

B.ank,

been

expansions and bet¬

But

only possible way for
companies to grow.

and

Pierson,

who

rector

have

costs

extent

the

termine from time to time to what

;

Presi¬

form

way

policy is that the increases in the
pay should be taken out of prof¬
its. In his presentation of the new
policy the President said that
management and labor must de*

Federal

economy.

has financed its expansion during
its entire existence. ' It is almost

cism, "the key proposal in the new

dent

procedure

competitive

terments.

"In reality," continues the criti¬

Vice- Presi¬

this

in a
The
that it would greatly re¬
strict the volume of earnings that
could be retained by the company
in
years
of good earnings, and
plowed back into the company in
free,

as they have been
receiving for 48 hours would be
one in which they produced
as
much in 40 hours as they used to
produce in 48 hours."

«t

Sfc

investment

jections

first

hours of work

fective Dec. 1,

1945.

can¬

is costs of

under which it would

/V i

comings of the present wage-pr^ce
policy, the .Bulletin states, "There
are
three nearly insuperable ob¬

doing

production that determine prices.
If costs go up then prices have to
go up also.
The only condition

elected

official

the license tax

which

that the

■;,.directors

has

syndi-

included most of the top-ranking
banking
and
bond

State

Bank

Cleveland

schools;
(4)
increase
State
allowance for highway
mileage
through
cities
and
towns; (5) repeal State business
and
occupational licenses so
municipalities, alone may have
them; (6) give cities more of

five

cates, the memberships of

tangible

crease

issue

four

The pro¬

public

relatively
large
involved, the city

from

revenues

(1) pistribution pf two-thirds

■,.

reported as having proved of
-decided interest to investors.

/;®j>

de¬

program

of the revenue from beer; (2) al¬
low municipalities to tax cer¬

was

to .increase

posals include:

of the issue,
Mellon Securities Corp. and

The

meeting

local government units.

reoffering

being
applicable
to
longest dated bonds.

1945

signed

associates established si yield scale
of from 0.65% to 1%, the latter

own

need of

pre¬

Up-Prices Down' Policy

(Continued from first page)

tive

from the State in view of its

bonds in investment circles.
.

to;
;

by Governor Darden
municipalities could not ex¬
pect further financial assistance

mium, the city was able to
tfffept the financing at a net
Interest cost of 0.942 %, which
affords ample testimony of the
high rating accorded the city's

capital

Advised

syndicate
Mellon Securities

put

that

bid. of 100.554 for Is.

Baltimore,
hew capi¬

consequence

investors

\yo?k.

serially from

by the

award of

inclusive, the bopds

awarded

jyere

clearly evidenced in

the result of last week's

tional

announced

2355

dends,

and the rest would be
passed on to /labor as wage : in¬
creases."

Pointing directly to the short¬

New York.

£
$

.-.Although
the

with the June 30, 1935, total
of $202,482,700, according to the
Oct. 29 issue of "Business Out¬
pares

the winning bid of
Securities
group

Mellon

topped that of its; closest

com¬

petitor

mar¬

comfortable

gin, it Is of interest to note

that

look," published by the Wells
Fargo Bank & Union Trust Co.,
San Francisco.

I the terms of the first three oftcrs weie based
est cost

pet inter¬

Oh &

to the city of less than
final tender worked

The

ppt to a net basis of f.03%.

^syp»altimore, incidentally, just
cently

extended

was

re¬
unlimited

general taxing power for a period
years, pursuant to a bjll
signed by Gov. Herbert O'Conor

«f two
i

?$&&&£■

•

This

source

also

states

according

the

Controller,

City

tures and

data

that,

released

revenues

expendi¬

the

city

scheduled to present

•!

$2,350,000

the

bonds

issue of

market
but was

during the past week,
obliged to reject all/bids because

—of failure of the formal offering
notice to fully set forth the con¬
ditions of sale. Bids were entered

to 1955.

Immediately
following
the
.rejection of bids, the city asked
fpr

new

tenders

pq Nov. ?l../
=■■t ■.. / ■ -■;•:/ yyc

•.•

opened

;:;;;:.v/:/;v

ty. *,■ yy yy^y

Result&vof the; Nov. 6 bond elections justified predictions that the
;

bulk of the approximately $200,000,000. in issues; iip for cohsideral
tiojn -would find favor with the

cal year than in the
earlier
fiscal year. Bulk of the increase
Is attributed ta the city's acqui¬

University.

two
privately-owned street railways.

Terry Holdings Sold
To Schoellkopf Interests
In New York & Buffalo

stantial

stock

holdings to
the
Schoellkopf interests. Both have
been associated with Schoellkopf,
Hutton & Pomeroy for many years.
Charles

Terry, who was as¬
sociated with Harris, Forbes & Co.
from 1913 to 1919, joined Schoell¬
kopf, Hutton & Pomeroy when
that

firm

He is
the

was

organized

1919.

director and Chairman of

finance

committee

Colo¬

rado Fuel & Iron Corporation, a
Among major items to re¬
director and member of the execu¬
approval were $50,000,000
tive committee of Wickwire Spen¬
the ^mmonwealth of Penn¬
cer
Steel
Company which .'was
sylvania: 820,000,000 for San Fran¬
merged last month with Colorado
cisco, Califl; $9,500,000 Franklin
Fuel & .-.Iron, a director and mem¬
County, Ohio; $8,700,000 Colum¬
ber of the executive committee of
bus, Ohio, and $6,500,000 by the
U. S. Vitamin Corporation and a
city's school district; $8,500,000 by
director and member of the execu¬
Dayton. Ohio, and $2,000,000 by

its

school district; also $3,000,000
by Allentown School District, Pa.
.

/
■

■\y.-y

■

/'v /"*"• f

The Dominion of Canada hasl

decided to make

further sub¬

stantial reduction in its external

...Indebtedness by calling for re-;
Ademption on Jan. 15, next, a

total of 8115,000,000 of its bonds
which

are

payable in New York

^funds. The Government previ¬
ously had issued a call for the

certificate from the Gradu¬

School

voters.

by bankers and whose
ability is outstanding."
Mr. Hays fills the position va¬
cated last year by Mr. Pierson
when he was elected President.
Born 46 years ago in Arkansas,
Mr. Hays holds an A.B. degree
from Hendcix College, an M.A.
degree from Columbia University,
a

sition of the larger of the

tive

committee

Fidel

Associa¬

Banking,

Rutgers

After four years as a public re¬
lations executive in New York

Gity, Mr. Hays became an analyst
for Continental Shares, Inc., of
Cleveland in 1929.
Three years
later he joined the Reconstruction

Finance
a

Corporation and became
special assistant to the directors

of the RFC in Washington, D. C.
In 1934, Mr. Hays was named
Executive Secretary of the Indus¬
trial Advisory Committee of the
Fourth Federal Reserve District,

utility,

railroad

and

charge of the trading division in
the Buffalo office.
became

associated

He originally
with

Schoell¬

kopf, Hutton & Pomeroy in 1921.

Plant

bearing

interest

the

Power of

The City

Los

Angeles

Refunding

Bonds,

of lour

rate

per

bonds are CALLED FOR REDEMPTION .pN THE
1945, and are required to be surrendered for re¬
by all interest coupons, if any, maturing on and after such
redemption date, to the Bank of America National Trust and Savings Association,
in The City of Los Angeles, State of California or, at the option of Jae holder,
said bonds and coupons muy be surrendered for collection of the redemption price
thereof at The National City Bank of New York, in Thq City of New York, State of
New York., *
1 /
•
'
: •hereinabove

The

FIRST

described

DECEMBER,

DAY

demption accompanied

Interest
ber 1. 1945.

Dated: November 22.

bonds shell cease to accrue on Decem¬

the hereinabove described

•

1944.

WETT; V
Department of

ciyde

Auditor

the

and. power of The City of Los

Water

Angeles.

He is
ment

$11,500,000 Department of Water and Power
of The City of Los Angeles, California,

member of the Retire*

Committee

the

Retire¬

ment

Electric Plant Revenue Bonds,

System of the Federal Re¬

serve

Banks; a member of the In¬

Reserve
the

System, and a member
Adyisory Board of the

Cleveland Ordnance District,
Mr.

Hays

trustee

Cleveland Council

•

the

World

Af¬

fairs, and a member of the Cleve¬
Philosophical Society, the

land

Union

Chamber

Club,

Com¬

and Rotary Club, air of
Cleveland, and of the Shaker
Heights Board of Education.
He
was
listed
in
"Young Men of
America" and is listed in "Who's

tional

monetary
ence.

their
leave

the

fund
Bretton

Mr.

Woods

Confer¬

and

twin
their

Heights,

international
which
resulted

Mjs. Hays and
6-year-old /sons will
»

home

Cleveland

that, pursuant
the .Department of Water
GIVEN

aforementioned bonds are redeemable at the option of the Depart¬
15
1945, and on any interest payment date thereafter prior to
redemption price, if called on and alter December 15, 1945,^but prior
'o *«•>
redeemable 1938 bond bearrng

December

mftfuritv

with

interest

and

the

All
ment

cent, equal to 106 per
to each redeemable 1938

per

respect

York
T
ber

State of New York,

Interest
15.

the

'///■

Dale* NO""1""

hereinabove

1945.

future.

' r>,:

19«'
,

,»i Auditor
.

■

;

make their home in Cincinnati in
near

described bonds shall cease to accrue on Decem¬
•/•;

the

cent of the principal amount thereof,
bond bearing interest

the principal amount thereof, plus, lh each case, accrued
unpaid interest thereon to the date fixed for redemption.
thf
The hereinabove described bonds are CALLED FOR REDEMPTION ON THE
FIFTEENTH DAY OF DECEMBER, 1945, and are required to be surrendered for
redemption accompanied by all interest coupons, if any, maturing
a ®
such redemption date, to the Bank pf America National Trust and Savings Associatton/Tri The City of Los Angeles, State of California or at the option of the
holder, said bonds and coupons may be surrendered for collection of .he
™Jw
tion price thereof at The National City Bank of New York, in The City oi new
105 per cent of

Shaker

suburb,

to the provisions of the bonds
and Power of The City of Los

to redeem said bonds and hereby gives notice of such
and at the place hereinafter specified, to wit.
$11,500,000 Department of Water and ?owe£ of The pity of Los Angeles Elect c
Plant Revenue Bonds, First Issue of 1938^dated December 15, 1938
cons^ing^f
all the bonds of said issue maturing on December 15 in each and all of_ the years
1948 to 1972 inclusive, and numbered 751 to 8,740 inclusive, bearing interest a
the
rate of 3%
per cent; and consisting of all t^e bonds of said issue maturing on
December 15 in each and all pf the yea?s 1S73 to 19780t>
a 741
to 12 250 inclusive, bearing interest at the rate of 3 Yx per cent/
Angeles has determined
redemption on .the date

equal to

bank, and .an

described,

hereinafter

merce,

Who in America."

First Issue of 1938.

HEREBY

NOTICE

Committee of the Federal

surance

REDEMPTION

NOTICE

CLYDE
of

the

ERRETT.

* * v* •- -i

of Water
Los Angeles.

Department

and Power of The City of

4-..

bonds and hereby gives notice of such
hereinafter specified, to v/it:

and

Water

Issue, 1935, dated December 2, -1935,
cent per annum, consisting of all the
bonds of said issue maturing on December l in each and all of the years 1948 to
1975 Inclusive, and numbered 2,954 to 22,799 Inclusive.
All of the aforementioned bonds are redeemable at the option of the Depart¬
ment on December 1, 1945, and on any interest payment date thereafter prior- to
maturity at a redemption price, if called on and after December 1, 1945, but prior
to December 1, 1950, with respect to each such redeemable 1935 bond, equal to
107 per cent of the principal amount thereof, plus, in,each case, accrued unpaid
interest thereon to the date fixed for redemption. '
,
,
Revenue

Electric

and Secretary, Vice-President and
Secretary, and First Vice-Pres.

from

Frederick A. Terry has been in

Department

$19,846,000

tution to Assistant Vice-President

A; student of international fi¬

corporations.

described,

has determined to redeem said
redemption on the date and at the place
Angeles

Clever

Bank

nance, "he has given; special study
to the proposals for an interna¬

large

HEREBY GIVEN that/pursuant to the provisions of the bonds
the Department of Water and Power of The City of Los

NOTICE
hereinafter

land. During the next seven years
he rose successively in that insti¬

tion of New York, Inc., an invest¬

rious

Refunding Issue, 1935.
■

■>

Reserve

„

Electric Plant Revenue Bonds,

following year was ap¬
pointed Assistant Cashier of the
Federal

Angeles, California,

of The City of Los

the

and

ment Company.
He has handled
the underwriting^ of many securi¬
ties issues, including those of va¬

industrial

$19,846,000 Department of Water and Power

widely

known

ate

ceive

who

man

and

BUFFALO, N. Y.—-Charles G.
by nine groups, with an account
Terry and Frederick A. Terry
headed by Phelps, Fenn &
Co., have resigned as Vice-Presidents
Inc., reported to have made the and directors of
Schoellkopf, Huthighest' offer of 100.019
for
a
ton & Pomeroy, Inc., New York
combination
of
$2,150,000
IV4S, and Buffalo investment bankers,
due 1946-1970, and $200,000
5y2s, and bave disposed of their sub¬

■featuring from 1946

will he 17% greater during the
July 1, 1945-June 30, 1946, fis¬

if^^The City of Houston, Texas, was
*

family

REDEMPTION

NOTICE

•

,^:r

'!.j,»y&i,*,'.V 'r*V";?.
sion on Reparations

'"k'

2323)'
A,
v
by I European axis organizations that

(Continued from page
tails

first raised at Yalta

was

proposed:
war,

national

from the German

moved

in
these
removals,
the
R. recommended, should

The main determinant

wealth.

used

plant,

should be
reconstruc¬

be furnished
principally for

might

(1) Within two years of
the

Such

inal.

the end
equipment,
German investments abroad, and
other assets, to a value of ap¬
proximately $10 billion, be re¬
'!

adjudicated to be crim¬
reparations labor as

had been

Their representa¬

S. S.

the U.
tives

repair of war damage;
be limited to a definite

and

tion

should

and be subject to
employment and living

span of
humane

years

standards.

when the Big

than

less

Three assembled.

Problems

recent

The reparations agreement ar¬
rived at in Potsdam is too well-

France

known to

require much elabora¬
tion at this point, Briefly it pro¬
vides that the Soviets are to se¬
their

reparations from the
zone
they occupy in Germany,
together with certain German ex¬
ternal assets. They are also to re¬
ceive 10% of the industrial equip¬
cure

ment that may

be removed from

the Western zones, plus an

1,500
to

are

calories;

despatches

press

Indeed,
from

the effect that in

of the industrial areas cer¬

some

segments of the population
today averaging much
more
than 1,700 calories.
And
France, it might be pointed out,
is now in immeasurably better

tain

not

are

than

shape

many

the

devastated countries of Europe.
second reason why we

may

expect controversy on this point is
once the average standard of

living
for
Germany has been
agreed upon, agreement will have
to be reached on what productive

which they fur¬
thered the military and economic

during the discus¬
sions at either Moscow or Pots¬
dam was the question of repara¬
tions labor formally raised
by

in an equivalent value of
food, coal and other products.
Since the area occupied by the

disarmament of Germany.

either

Great
Britain
or
the
Indeed, the only offi¬
cial action taken on this matter
was
the
formal filing of the
United
States
official
policy,
that
reparations; labor
should be limited to war crim¬
inals and members of criminal

by the United States, the United
the

produce synthetic oil, or alu¬
or nitrates, or what allow¬
ance, if any, should be made for
accumulating new capital for the
future
growth of the German
economy.
The way these ques¬

organizations.

amount and character of German

tions will be resolved will deter¬

industrial

mine how much electrical gener¬

making
U, S. S.

be the extent to

;

(2) Recurrent reparations in the
deliveries of goods
the total of $10 billion should

form of annual
to

period of 10 years.

be paid over a
There

action taken at

was

of German
labor
as
reparations.
The
U. S. S. R. recommended that this
Yalta

the

use

put aside arid , con¬
sidered at a later date. She fur¬
ther proposed that reparations be
distributed in a manner which

U. S. S. R.

namely,

the

question

time

the

between

time

short

inauguration of the discussions in
Moscow and the meeting in Pots¬
dam—slightly

three

than

gave

weeks—considerable progress was

greatest

made toward agreeing on funda¬
mental reparations policies.
The

first consideration to those
countries which had carried the

burden

had

and

con¬

tributed the most toward victory.

and

make

proposal that the repara¬
fixed at $20 billion
with one-half going to the U.S.S.R.
did not materialize, due in part to
the fact that the unknown state of
German industrial equipment at
that moment 'made it impossible
to fix a final bill. Moreover, in
order to
avoid fixing financial
commitments which it might later

the

three

prove

this principle,
suggested that the U. S. S. H.

In conformity with
she

one-half

receive

the

repara¬

tions.

agreed that a reparations
commission
to
consist
of
the
United States, the United King¬
It

was

dom and the U. S. S. R. be set up

Moscow

study

recommendations

Soviet

governments. No commitment was
made either by the United States
or Great Britain on the proposals
made by the U. S. S. R.
They
were merely to be used as a basis
of discussion by the Commission
with the further proviso that an

tions bill be

impossible for Germany to
meet,' there was opposition to any

valuation in dollar terms.

in distributing the
plant, equipment and other assets
to be removed, as well as the re¬
current payments in kind, irre¬
spective
of
what
their value
turned out to be, each of the three
viding

additional criterion to be used in
of
reparations
should be the losses suffered at
the hands of the Nazis. The only
distribution

the

The is¬

finally resolved by pro¬

was

sue

that

pay

The

met from the Soviet's share.

claims of all other countries are
to be met from the zones

occupied

Kingdom and France.

equipment unnecessary
German
economy
and

the

for

available

therefore

tions

determination

The

for

repara¬

determined

•

2, 1946. This determination
is now being made by the Allied
Feb.

Control
with

Council

the

accordance

economic

and

political
principles embodied in the Pots¬
dam Protocol and such other pol¬
icies as may be recommended to
the Control Council by the Allied
Commission

Reparations.

Re¬

are to be completed in two
Pending the determination
of the total amount of plant and

Commission should

into the U. S. S. R.

the

look

the total should be

that

ultimately

went

all of the claimant nations.

suggestion that

this

Potsdam

arrangement was
changed and reparations were put
On a zonal basis,

$20 billion.

The United States delegation to
Moscow
was
specifically ,fin¬
structed among other things that
any plan
of reparations should

culty in reaching

conform

embodied

There

the

most

'virtually no diffi¬
an agreement on

iwas

fundamental

United

States

policy that industrial ca¬
pacity which might be dangerous
to
the
security of the United
States should

plan

The

provide for the
of plant and equip¬

distribution
a

which

manner

the

minimum

Throughout the pro¬
ceedings the. United States, as
well as Great Britain, contended
that
the
payment - for
imports
should take precedence over rep¬
arations deliveries from current

would

hastening

the restoration and
the standard of living of

production
tories.

and

With the

existing inven¬
knowledge that

World War I reparations plan, as
a result of which payments could

there

be made

food and otjier raw

only through the revival
German indus¬

and expansion of

German

building

economy

of the
require the

financing of German reconstruc¬
tion or reparations with foreign
funds.

Accordingly,

ring

reparations

agreed

should

possible
movals

such

recur¬

might

small

compared with re¬
plant arid equipment,

and should consist; to the greatest
extent
and

possible, of

natural

tions

the

resources,

the

question
form

criminal

latter

were

members

;

class.

public

unless

some
agreed
to

were

suqh
we

posi¬
financing the
German
while others were tak¬
ing out the products of German
factories and mines as reparations.
tion

economy

The Soviet point of view, on the
other hand, was that the peoples
of the devastated areas of all of

Europe, and particularly her own
citizens, should not be put into a
position where food and materials
for

goods.

repara¬

Among

the

to be included proven

evident that
provision

would find ourselves in the

materials

labor,J the
United States delegation was to be
guided by our policy that com¬
pulsory labor should be required
only from the judicially convicted
war

materials into

even

and

raw

minimum of manufactured
As

other

alternative

to maintain a sub¬
sistence standard of living, it was

Germany

plan which would promote of

was

than for the United States to ship

try by outside capital, the delega¬
tion was instructed to approve of
necessitate the

German

economy.

the non-enemy nations of Europe.
In order to avoid the fiasco of the

instructions

American

maintain

aid most effectively in rebuilding
the damage done by Germany and

raising

delegation'.
One
stumbling block, however, was
the question of paying for such
imports as were necessary; to

also to

was

ment

be eliminated.

the

principles

general

and

; i v'

private

Germans

preference

given

own

drastic

would

over

their

requirements, not only for
struction
of

their

booty
more

for

standard

problem,
dam.

but

later

well

and

the
of

recon¬

restoration

living.

resolved

This
Pots¬

definitions of

war

the

were

important of the unresolved

issues before the Allied Commis-

»*•».

V.-i'.'•«•

chemical

ca¬

pacity and how many blast fur¬
naces can

be removed for repara¬

tions. Although no

definite agree¬

ment has yet

been reached on the
of living, esti¬
of the annual steel capacity

German
mates

standard

required to meet Germany's needs
already put forth by responsible
officials, range from five million
tons to more than 10 million tons.

And when the 10 million ton

recommended,

ure

let

fig¬
not

forget that in

equipment eligible for delivery as
reparations, interim removals may
be made by the Control Council.
The Protocol also enlarges the size
of the Reparations Commission by
making France a member.
It is quite apparent that the ex¬
tent to which Germany will pay
will be determined
primarily.. by the nature and the
value of the plants and equip¬

reparations

that

Allied

the

Control

Council deems it essential to re¬
tain

Germany.

The'determine

ing factor will be: What industries

plants are necessary to pro¬
duce the goods and services re¬
quired to meet the needs of the
occupying forces and displaced
persons and to maintain in Ger¬
many an average standard of liv¬
ing not exceeding the average
standard of Europe (excluding the
United
Kingdom
and
the
U. S. S. R.). (It might be well to
point out in passing that this
formula Will eventually permit a
fairly decent standard for the
Germans, It provides for a stand¬
ard higher than that of many of
the
eastern European
countries
that were overrun by Hitler, for
it takes into the calculation of the

standards of such
Switzerland, France,
Belgium, Sweden and Denmark.)
Everything in excess of these re¬
quirements
are
theoretically
the

average

countries

available for removal
tions.
It
the

repara¬

is around this

productive

vital point of

capacity

required

to enable the German economy

function

within

the

terms

fixed

the Potsdam agreement that
may look for vociferous con¬
troversy. In the first place, agree¬
ment, will haye to be reached on
just what- is the average living
standard of the European coun¬
tries.
Is it the average of the
standards that prevail today or is
it, as one American advisor has
suggested*, the average that is ex¬
pected to prevail at some date in
the not distant future? Certainly
by

there is little justice in any pro¬
posal that provides the German
people with a better standard of
living than prevails generally in
many parts of Europe.
Steps are
now
under way to increase food
shipments from the United States
to the point where they will be
sufficient
to
bring the average
ration up to 1,550 calories a day.
This is certainly little enough, but
it

restitution,

capacity and

ating

movals

reparations.
In other
the amount that each of
the three powers would receive
would finally be determined by

that the

minum,

years.

al wealth of Germany and in an¬
nual deliveries in kind; that re¬

of disarming Germany both
militarily and economically and

make available to Ger¬

bursed for

but

want

the
it

that

reimV.

costs involved

our

But is

natural

army

riii:

occupa¬

good foresight to

these repayments, if to

get them we must retain in Ger¬
industrial machine which

many an

the

future

the

basis

revival?

ment

can

used

German

Would

again
arma¬

b£

not

and remove the threat to
safety of the world that will
lie in a Germany which still has
synthetic rubber, synthetic oil;
synthetic
nitrogen,
automotive

and

pose

and it

should

ranging all the way from whether
the Germans should be permitted

claims of all of the countries en¬

movals be primarily for the pur¬

many

insist

in- v>

U. S. S. R. includes German ter¬

reparations should be paid in the

tion.

from1

many

hungry.)
To be
want to be repaid for the
well as for any other

goods
we

going

sure, we

food

ritory already under Polish con¬
trol, Poland is to have its claims

form of removals from the nation¬

titled

stances

horribly

so
are

ment

words,

suffered

Hitler's hordes

equipment will be essential to
realize it. This involves questions

participating governments would
give up proportionately from their
respective shares such amounts as
were required
to meet the valid

agreement made at Yalta was thgit

have

other maintaining

addi¬ that

15% for which they are to

tional

Thursday, November 15, 1945

CHRONICLE

THE COMMERCIAL & FINANCIAL

2356

should

last
of

winter

the

tion

not

overlooked

that

considerable

French

were

W.<

portions
popula¬
get along on

industrial

forced to

Yhj

•j.i'.-s.

■•-•"Yii

1933 Germany got
along
with a steel output
of
slightly more than three million
tons.

these

assume

ourselves for the next few

years

the

and

heavy steel industries? Such
they will
premium
against any revival of German-

costs may be high, but
be a cheap insurance

militarism

within

least

must

are

the

resolved

two

issues

before the

reparations removals

determined.

Others

are

the

that
ex¬

are
ex¬

tent to which we are to make the

Germans bear the cost of the

the

present generation. The economic
demobilization of Germany will
no doubt be expensive to us.
In
return, however, we shall be pur¬
chasing many additional years of,
security.
,

A further factor which will de¬

what

termine

will

available

for reparations removals will be

policy toward the Ruhr. The
greatest concentration of heavy
industry lies in that area«-~indus<?
tries that are needed and badly
our

wanted by some of our Allies. If
the Ruhr is separated from Ger¬

cession to any of
European
powers,
probability is that much of
by

many

western

These

tent

costs

sensible

the
the
the

equipment there will be retained
and incorporated into the econ-.
omy of the neighboring countries.
If the Ruhr is internationalized, it

oc¬

is quite likely that much of the
cupying forces. Are we to charge
equipment will be used for thq
the total cost of maintaining our
manufacture of goods to pay for
troops, including wages and over¬
necessary imports into Germany
head, to occupations costs, despite and perhaps for recurrent repara¬
the fact that the, actual size of the
tions.
The extent to which the
occupying army may have little latter is done
will, of course, have
or no effect upon the size and cost
a
direct bearing on what will be
of the peacetime military estab¬
available from the existing wealth
lishment that we are going to of
Germany to recipient coun¬
maintain anyway?
Since agree¬
tries, although it may be offset
ment
was
finally
reached
at in time
by greater shipments of
Potsdam that the proceeds of ex¬
manufactured
goods as repara¬
ports from current production and tions.
inventories shall be available for
Whatever our policies turn out
paying for imports approved, by to be relative to the German
the Allied Control Commission,
standard of living, the cost of oc¬
the policies adopted and the ac¬
cupation, or the future: of, the
counting methods used iri rela¬
Ruhr, one conclusion appears to
tion to occupation costs will have
be definite. The total value of the
a
definite
bearing
upon
how
plants and equipment that will be
much
productive capacity
will removed from Germany wiUs
have to be retained in Germany
relatively insignificant, as cornto produce the exports necessary
pared either to what she paid ip
to meet these charges.
reparations after the last war or
Indeed,
according,
to
recent as
compared to the losses suffered
press
despatches, to
meet
the
by the United Nations or the cost
costs of occupation as figured out
of the war. Recent estimates place
by one official, will require the the value of all industrial mov¬
maintenance and operation of so
able capital assets in Germany , qfc
great ri part of heavy German the
present moment, after making
industry that very little will be
allowances, for war damage,
available for removal as repara¬
approximately 13 billion marks or
tions.
One
does
not
have
to
about
$5 billion at the inflated
stretch his imagination very far
prewar rate of exchange." Of this
to surmise what the attitude of
amount, capacity to the amount of
the people of devastated Europe
approximately 8 billion marks ds
will be toward such a policy. Al¬
located
in
the
three
western
though this policy has not been Zones. Tt is obvious, that all ; jo€
officially adopted, they know that this
capital cannot and should not
it has
been seriously proposed. be removed. Even that part which
Is it any wonder that responsible
will be removed will have con¬
persons are raising the question
siderably less value after, it has
j

whether it

is the

intention

to.

permit Germany to remain a
powerful industrial nation?
The alternatives facing us are:
Should
our
present concern be
the immediate
suffering of the
German people and repayment for
the cost of feeding and occupying
Germany, or should it be the long
term security of the world? y As
long as we continue, as a mem¬
ber of the Allied Control Council,
to be part of
Germany, we
of preventing
ease
in, that

the Government of
have the obligation
starvation and dis¬
country.. (It is an
interesting^ commentary that as
conquerors we assume the respon¬
sibility of seeing to it that those
whom we have vanquished shall
remain
alive
while
those
who
>

transported and erected at

been

site.
v uf
It should be noted that ; trip
Protocol makes no provision <for
its

new

deliveries.
The extent and duration of such
deliveries is still to be agreed
reparations

recurrent

upon.

worthwhile

noting

made, by ^
the U. S. S. R. in return for hep
15% share of the removals fropa
the western zone are to extend
that the deliveries to. be

over

may

period of five years. This

have

some

bearing

ultimate decision as to the
of

recurrent

such

are

length,

reparations f when

provided for. The extent

of these deliveries
be

the

directly

will, of course,

affected by what we
it

i: .r

'■

•

Volume 162

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438

2357

return Ori captial invested in
'

Wy'

Continued -from page 2325)
I i which both-arrived at the same
to the consumer dollar during the conclusion. These studies covered
forepart of 1937, ■iXk/yyvklXy.-i a long term of years prior to 1929

,v 'Effect of Prices

and

on Consumer

Demand

;

price-

disparities is
varying degrees with

purchasing
flexible

resistance

power

respect to different types of com¬
modities.
Salt is the classic ex¬

ample of one extreme—large Dercentage changes in pride affect
consumption relatively little.
Price-demand flexibility increases
rapidly toward the luxury end
of the commodity spectrum. Now,
an extremely important contribu¬

tion to this line of thought was
made by two distinguished econ¬
omists (the " American/, Paul. H.
Pouglas, and thd, Englishman, A.
C. Pigou) in concurrent but in¬
dependent |

labor

statistical

such,

studies

commodity, in

as a

jdeci&e t^:/do concerning plant re¬
movals.
440X40 v"' /' '40 '7'; V ,?;'i' 4. 1 \
k /Not/
is# there anything in7 the
* concerning

Protocol
This
to

of vital

matter

restitution.
concern

of the western European

some

nations, particularly those bor¬
dering upon Germany. Hundreds
of

millions

dollars

worth

property stolen from these coun-

tties#some of it vital for the/nefl
construction of their economies—

Some Dutch frontier towns have

been denuded of their
it has

been

German

Dutch
which

Yet

cows. '

reported that on the

side

can

the

see

the

border

their

own

cows

producing milk, which

are

cannot be made available to them

because,
is

needed

one

the

one-fourth

three-

manufacturing companies aver¬
aged 11% during the boom years
1925-29, and reached a peak of

fourths producer and merchant of
his product. The fact that he has

12,8% in the latter year. The same
ratio averaged 10.1% for the war

official stated, it

Dutch
and-

cars

freight and
some

four

passenger

million

bi¬

moved into Germany
Nazis.
The location of
man^ of thesd items/ has - been;
definitely verified. The return of
works of art and objects of re¬
ligious and historical value is al¬
ready under way. However, the
Dutch, the French and other peo¬
ples of Europe want their other
property
back
also.
They
are
fearful that; it may fihd; its :way?
into the reparations pool and not
cycles

were

the

available

returned

them

not

quickly.

Also omitted from the Protocol

reference

reparations
labor. Uiitil a final peace treaty
is written, the French, the Soviet,
and
other governments will no
doubt continue to use prisoners of
any

versus

industries,! leiss- inpothers)!
employment

and

none

may at

-desire

of the claimant nations

that time have any further
for * labor services from

Germany.

•.:'

ff These

are the more important of
the items that are still to be de¬

termined

with

connection

reparations. There remains also
the important task of determining
how these reparations will be di¬
vided
among
the
governments
with recognizable claims.
With
the
exception
of
Poland,
the
shares

these

countries

are

be paid out of the zones occupied
by the United States, the United
Kingdom and France.
Some 17
governments have been invited to

submit

their

reparation

claims.

The data they have furnished are

extreme

pened

alone, We find that wage rates in
automobile

manufacture

1937

increased

13.1%, auto prices 11%,
and the subsequent 1938 decline in
auto production amounted to well
Here

60%.

over

and

irrefutable

then

what

happen in the current recon¬
crisis if the unreasoning
socalled lead¬

can

version

substantially

are

ers

wholly

complied with and labor is priced
If

clear out of the market.
manager

sales

out of touch with

his competition as to

price his line
too high, he has a good chance
of being fired. Not so in the la¬
bor

hegemony.

War-Time

Purchasing Power *■
illusory

/Labor's argument - in the pres*
illusory

ent situation is false and

First,

points.
that

different

several

from

stand¬

£he alarm is raised

retreat from war-time pur¬

chasing power levels represented
by unprecedented weekly take-

their
There

created

respective shares.
also
a

still

pression. The war-time purchas¬
ing power level was. a fiction.
Mounting
national
purchasing
power* i$ dependent upon a free
exchange of goods and services
in volume. From 1941 on, we were

fighting an all-out war for exist¬
ence, with the supply of civilian
goods and services kept at an ab¬
solute minimum.
It is true that
the

politicians

the theory

that

sponsoring

were

there

you

were

can

none

made. The

permanent reparations

agency to carry out the adminis¬
trative tasks incident to the dis¬

tribution of reparations. The main
functions of the agency will be to
allocate specific plants, proper¬
ties and commodities to specific
•claimants and to settle any dis¬
putes that may arise with refer¬
ence

to such allocations..;

;

of the non-factory people.
In a smaller, more personal, and
great deal less mechanized; econ¬
power

9.8%

1944.

recovery in this profit ratio to
the 1929 level would be equivalent

to
a

30% increase above 1944, or

total of around $1.75 billion for

all

manufacturing enterprise. This

would
total
■

less

than

10%

the

straight time factory wages.

Furthermore,
of

ment

vealed

recent

Commerce

Depart¬
re¬

survey

that

might,, just might, work

that way.

out

for

power

Federal

every

deficit

dollar spent should have exploded

stream

that

theory by

now.

rb'7:

ih'

-;f

--.v-j
*.v«

into

pumped

the

production

if profits were threatened

the

extent

•«

indicated

above?

Probably less than in 1939 when

Question, What Will Consumer

ten million

hourly

mark despite further

wage

advances

above 1937*

No amount of trick bookkeep¬
ing, dollar juggling, or legislation
can
alter the willingness of the
investor to make commitments in
an

uncertain industrial future, or

the ability of the consumer in a
free

society to buy goods, and
they Will go begging if the price
high. In short, no matter
how you peel or slice it, there is
just so much juice in the orange.
is too

W. H. Bell Ihstalls Phone
From N. Y. to Boston;

Opens Portland Branch
W. H. Bell & Co., Inc., are an¬

that they have leased
the American Telephone &
Telegraph Co. a private telephone
wire
(Canal 6-3667) from New
York City to their Boston office,
nouncing
from

49 Federal Street.

The firm has just opened a new
office in Portland,

Me., under the
of Rex W. Dodge.
principal offices in
Philadelphia and Boston, the firm
has branches in Washington, Ah*
lentown, Easton and Harrisbyrg.;
management
its

Besides

mh SiiS

•

No,

plant
investment % totalled
$1.5
billion/ and unemployment hit th6

the

present day value of
labor cannot be -measured on the
basis
of war-time
weekly pay
levels.

The factory worker/ most
especially;/in tiurabjte :igoods pro¬
duction

has been out of the

ket

the

for

What the

duration

consumer

is the question.

mar¬

the

SOUTHERN RAILWAY COMPANY
;;

To the Holders of Southern Railway Company9s

war.

'■

Development and General Mortgage Bonds,

will pay now,

U. S. Department

6% Series, due April 1, 1956;

y" y

;

Labor. records
show; that
straight-time average hourly fac¬
tory wages in 1945 have risen 55%
since 1939 compared with 31% in
the cost of living index. More
significantly perhaps, wage rates
gained some 35% since .1941, the
last year of full peace-time pro¬
duction.

but tlie

Complete data is lacking
indications

that

are

manufacturiftg and white
incomes / have

barely

non-

collar

kept

pace

with the factory trend.

It is com¬
that/the politi¬

observation

cally
unorganized
white collar
workers' salaries were more ef¬

fectively

frozen than were fac¬
tory wages. Recent U. S. Depart¬

ment of Commerce estimates show

Development and General Mortgage Bonds,
6V£% Series, due April 1, 1936* ;
^^ ;
In furtherance of its program of retiring debt, Southern
Railway
Company has, within tne past thirty days, purchased substantial "
blocks of its Six Per Cent and Six and One-Half Per Cent Develop¬
ment and General
Mortgage Bonds, aggregating $2,650,000 principal
amount, at the respective prices of lid for the Sixes, and bf 122 for r"
the Six and One-Halfe.

The

31%

from October 1, 1945, to November 30,

amount

1945, inclusive, (being $10.00 for each $1,000 Bond)*

Six and One-Ilalf Per Cent Series

30% hourly

For each $1,000

Development and General Mort-

Bond, 6Vz% Series.. .$1,220.00,
together with accrued interest on the principal
gage

75% hourly wage boost over

and General Mort- v
u gage Bond, 6% Scries. ...................—$1,180.00,
together with accrued interest on the principal
For each $1,000 Development

for loss of overtime is equivalent
to

0^^74^44X4^04 4;

xrP^f Ccnt Series

rate advance to compensate

wage

Railway Company therefore offers to purchase, for retire¬
ment, up to $5,000,000 principal amount in the aggregate of the above
described issues, at the foiiowing prices;
'

ability and
willingness of the consumer to
support factory production at ad¬
vanced * wage
costs.
The labor
a

1945.

Southern

will be the measure of

lerders' demand for

same

retirements before the end 6f the year

1943. This

from 1941 to

opportunity (to the extent
its resources available for such purposes permit) to the remaining
holders bf these Bonds, and at the same time thus to augment its debt

that, full-time
average
annual
earnings of employees in private
enterprise outside manufacturing
rose

•:

Company desires to give the

major part of our vastly expanded
manufacturing capacity was given
to the

production of materiel
with the government as
the customer paying
negotiated
prices. War-time wage rates were
the product of political arrange¬
ment arrived at through bargain¬
ing and pressure between unions
and
the
government. The em¬
ployer, and the consumer where
civilian goods were involved, were
almost always mere bystanders.
High take-home pay was transr
latable into immediate purchasing
power only 'where available and
unrationed commodities and, serv¬
over

for war,

This

1941.

inordinate

increase

were

involved.'■

•

;

concerns

producer
other

and

posi¬

consumer,

consumers.

For

sumer

10%

difference which caused the

1938

The evidence indicates that

any wage

passed

rate increase at all to be

to the consumer would
meet stubborn sales resistance.
on

This offer is open

between Tuesday, November 13,1945, and
on Friday, November 30, 1945.

the close of business

Bonds should be presented at the office of the Company's Agent,

The First National Bank of the

City of New York, #2 Wall Street,

Coupon Bonds must be surrendered with
% April 1,1946, and all subsequent coupons attached. Registered Bonds
New York 15,

New York.

be assigned in blank or be accompanied by appropriate detached
assignments, with signatures guaranteed, /v
'
;
must

Can Wage Increases be Under-

Bonds will

what .extent could a wage
increase be underwritten by antic¬

ipated

comes

Department

estimates

total

Commerce

manufacturing

wages .at war-time levels to

been

about

have

$32 billion, including

$25

uct

also

The

$5.7 billion in 1943 and $6 billion

engaged in other occupations.
factory worker's purchasing
power,;it is true, is measured by
his weekly pay in relation to price
levels, but that take-home pay is
directly dependent upon the sale
of his product, which in turn is
predicated upon price, cost, and
finally wage rates and produc¬

4404X4

/"recession" look i like: piker

stuff.

earner in mine and
there are three or four
potential consumers of his prod¬

wage

factory

1945, inclusive, (being $10.83 for each $1,000 Bond).

with respect to the con¬
gain in non-factory con¬
income, making the similar

crepancy

current

Another labor delusion

from October 1, 1945, to November 30,"

amount

would produce a 35 to 45 %>■ dis¬

larger manufacturing .in¬
accruing from both peak
peace-time production and lower
Producer Depends on Sale of His
corporate taxes, but in the face of
/,
Product-^4444440 normally keen competition? The

ices

every

remains

mon

purpose of reaching agreement as
to

argument, of
fat pay envelope
is reflected in demand for
a

clear

measure

all

for

that

labor

is that

and was

years

bona-fide job-making dollars, but
how / much
would
actually >■ be

They

Paris

the

ditures in tlte :'3Q'& ^o^reate 2^ 3
or
4 dollars of total purchasing

and

only

rate

net

As an

tion

analyzed.

session

important
The

hole

end

The

of profits, after taxes,
net worth of all leading

example of what hap¬
in
one
major
industry

the July, 1938, low points,

the

being
in

the

stockholders.

But dismal failure
imported pump-priming theo¬
ries and huge government expen¬

are

now

burning

October, 1937, high and

the relationship between its

now

per

tween the

cause

that

omy

the

possible that if the signing
peace is long enough de¬
ferred, the problem of reparations
labor may solve itself in the sense

week

production according to U. S. Gov¬
ernment data declined 34%
be¬

purposes.

dollars

pocket

than

industry has been
planning to invest during the next
year or so $4.5 billion in plant and
equipment and $2.8 billion in in¬
creased inventories. ; These are

reconstruction

his

personal and recreational services,
which: ! y swells t
the
purchasing

wage

; income' disparity
amounted to about 10% (more in

for

the

consumer

eat your
cake and keep, it too,' but no
amount of: money ftn this dearth
could have bought a 1944 auto¬
mobile or refrigerator, simply be¬

war

lot

and

consumer,

course,

goods

approximately
one-fourth
disrupted national labor
force, the factory worker's posi¬
tion is, inversely, that of being

respondingly-reduced demand. In
1937, it has been indicated that

Durable

which

the much

namely, that

extent.

sorhe^

return

per

due to cor¬

goods

extent

ing power is 3 to 4 times. In other
words, if artificial • politico-bar¬
gaining pressure force a 1% rise
in
wage
rates with respect to
consumer
income, then employ¬
ment and production, on the aver¬

durable

to the

tutes

the elasticity of demand for labor
in relation to consumer purchas¬

age, decline 3 to" 4%

clue

potential increase in profits over
the next few years might become
available for wage earners rather

thereto.

subsequent

Their conclusion was,

hour.

validity

with

prevent unrest and
disease in Germany. It has been
estimated that more than 90% of
the

periods

tested

demands of labor's

is still in Germany.
*

can

to 1

tivity

The
1937-38
debacle is clear proof that there
is no escaping this simple fact of
life.
Since factory labor consti¬

Consumer

man¬

ufacturing enterprise will furnish

billion

straight time and $7
overtime.
Manufacturing
company profits after taxes are
billion

estimated

have

totalled

1944.

Obviously, a 10% in¬
crease in straight time wages out
of this level of profits would de¬
crease the latter 40-50%, while a
30%

pay

them into

increase
a

would

cocked hat.

knock

quick

glance at the yearly net rates of

be/paid for in the order in which presented until the
$5,000,000 principal amount shall have been ac«;

above mentioned

quired, provided, however, that the Company reserves the right (a)
Ho accept such additional principal amount of Bonds, if presented
within said period, as it may desire, accepting such proportion pf

$1,000) presented as the aggregate amount of
of said $5,000,000 determined by the Company to be

each lot (to the nearest

Bonds in

excess

accepted hears to the total additional principal amount presented,
without preference between the two Series, or (b) to reject any
offered in excess of the first $5,000,000 principal amount

amount

presented.v'^^
The

Bonds presented for
Bank, Trust Company, Mem¬

Agent will pay, with reference to any

account

ber of

of the

owners

thereof by any

National
Security Dealers, Inc. (such Bank, Trust Company or
being tne owner), a.commission of $2.50 per $1,000

National Securities Exchange or Member of the

Association of

Member not

/Bond/

yvw^-.-o.
^

•

All Bonds
Taxes

are

purchased are to be cancelled, and United States Stamp
not payable on the sale.
; ,
SOUTHERN RAILWAY COMPANY
♦

Washington, D. C.
November 13,1945.

:v,

By Ernest E. Norris
1.

President.

2358

■

hemi¬

western

the

influence

sphere but this does hot prevent
the countries of this hemisphere
from substantial independence in

policy. In time of
emergency the United States could
not and would not tolerate antitheir

foreign

governments in neigh¬
boring states; no more could or
Would Russia in her security Zone.
But this does not necessarily im¬
American

acceptability

concerned with the

governments. Are
these
governments fit company
for the society of nations and, if
not/what conventions must they
satisfy? Now, these are important
questions. But also of importance
and of more relevance to our sub¬
of the existing

ject is what has been happening
economic relations
between
these countries and Russia.
At

hrid

was} negligible
than

terial to, and
and

suiting expansion of world trade.
There is

would be

importers of manu¬
from central

The

one

in the

assurance

that

the

case

advantages

shared.

for world

consequence

the

period of occupation and
magnitude of the govern- : V
contemplated. If vie-,
tory over Germany were to hay
been followed by, 3: short period,
of
occupation
to
complete the ;
smashing
of; the German war
economy and the liquida tion of aj *;
"large segment of Nazi personhejt;!
the

mental task

it would not have made much

dif-|r|

ference whether smashing tech^ J
niques and results were approxir jf
Is' clear is that the channels of mately uniform in the zones of the ji
intra-European trade are being different occupying armies. Siri'cd,-v
profoundly altered and perhaps however, Germany is going to be
permanently.
Whether political governed by occupying forces foirjconsiderations
will
continue
to a considerable period of time t<*; ?
outweigh economic considerations accomplish
far-reaching
objec- :
indefinitely is merely one aspect tives, it is important, if the par-fit
of the larger security problem tition of Germany into spheres ojL
facing this post-war world. Let Western and eastern influence is to ^
be avoided, that GOrmany be gdvv! ,
us turn now to a consideration of
the consequences of policy toward erned as a Unit. Tho argument,
Germany for intra-European- by the way, against the division Of s'
trade.
Germany into a number of smaller 1}.
states is not merely that such a RolJcjjr Toward Germany

trade

Western

Europe. For all but
Finland, Germany was by far the
largest market for exports and

recent economic

in the Russian

In addition to

imports.

Russia

products

source 6f

terms

development
the advantages of
are shared through the ire-

annually. All these countries were
in the main
exporters of raw ma¬
factured

largely

which

dollars

million

few

Justify foreign lend¬

pretty

run

of the encouragement of economic

for Po¬

even

land and Finland amounted
more

ing

Countries

ropean
(Continued from page 2326)
undeniably possesses a sphere of

which

tions

■

i... »■

Vfc

the

events

s'ecurity zone which

countries mentioned it seems
Russia is en¬
probable that the foreign trade of
gaged in obtaining large quanti¬
ties of existing stocks and equip¬ both Austria and Czechoslovakia
ply that neighboring states are
ment from Bulgaria, Roumania, which, before the war, was also
pawns to be moved here or there
fttdre exclusively linked with Ger¬
Finland, and Hungary and to a
on a political chess board. It was
many thah with any other coun¬
possible until recently, I have smaller extent from Austria, jus¬
try Will now be largely oriented
said, to imagine that a substantial tified as reparations, war booty
toward Russia.
and restoration of looted prop¬
group of European states might
It should be noted that, apart
With these countries, and
emerge from the war in such a erty.
from Finland and Czechoslovakia,
position of relative independence. also with Yugoslavia and Poland
the foreign trade of the countries
My own final awakening from Russia has entered into extensive
here under discussion was small.
/<
this dream — already troubled — barter arrangements exchanging
division
would
create
economic,,
In fact inability to export or im¬
in the main industrial raw ma¬
The bulk of the very important difficulties or would
may be dated a few weeks after
prove
for
port except in trifling quantities
Yalta when apparent agreement terials and fabricated products for
intra-Europeari trade in the years political,; reasons
impracticable;
foodstuffs
and other
raw ma¬ was bdth a measure and a condi- before the war was trade between
'relating
to
the
Balkan
states
the argument is that partition'caft- J

the

time

present

turned out to

agreement at

Turning to the second point, few

;

people in this country have real¬
ized
the importance
of intraEuropean trade to the standard of
living
of ''at least the western
ificance of
this
furopean countries,trade the sigand for the
;

;

maintenance

the

J in

prosperity

world.

dther countries of the

the war, more
the total vol¬
consisted of
exports from and imports into
the countries of Europe, exclusive
before

years

one-third

than

of world trade

ume

Russia.

and

Britain

Great

than half of
of European
intra-European

Substantially more
die foreign trade
countries

was

tries

northern

and

western

Europe found markets for 67% of
their exports in Europe and drew
from
Europe 56% of their im¬

agricultural

mainly

The

ports-.1

Countries of the rest of the conti¬
nent

were

even

dependent

trade. IntraEuropean trade supplied to the
relatively small economies of the
intra-European
,

continent

some

conferred

the size

our

substantial

of the advantages

the United States by
domestic markets.

diminution

that

A similar agree¬

these countries.

ment, limited to oil, has been pro¬

of living. The
European im¬

standards

large

very

pre-war

ports of raw materials from the
rfest of the world were dependent
the

maintenance
If

standards.

the

network

trade is

litical

these

restoration

intra-European
the

forces

other

pro¬

fact the

network

influences

tional.

restoration

endangered
domestic

and

that

many

interna¬

Considerations of time and

space

will

three

limit

the

remarks

international

ques¬

tions which appear to be of great¬
est

significance for the future of

economic

relationships

rbpedn countries.

with

cerned

I shall be

Eucon¬

the implications of
security zone, of the

the Russian
treatment

among

world.

future, however, the political

ments

these

effect

The

arrange¬

being, to

for the time

is,

channel the whole of the exports

this large area into Russia

from

and to limit such imports as may

available, to Russian sourc6s.

The

trade

agreements
are
of
entirely intergovernmental
and lay the basis for a continua¬
tion of state trading throughout
course

the

whole

this

area.

rechan-

of European trade must,
however, at least nibble at these
questions. 1

intra-European

will

trade

have

other

and

What will be

economic

relationships

Russian economy and on her
with the rest of the world?

fortunately
first

two

the

the
trade
Un¬

the

answers

questions do not seem
any large amount; of

involve

The

Russian

the

Security

London

Zone

Conference

Foreign

Ministers, questions in¬
volving the relations of Russia to
those
what
to

countries
we

know

are

zone seem

Russian

to have been

1 T^ajrt'e of Nations,
The
World
Trade, Geneva,
1942,
,

trade

pre-war
per
_

are

source

figures

taken

from

quoted
the

and

Europe's

constitute

apparently destined
the

which

s'ecurity

primarily
Network
p.

this

The

Th6 transfers to date of repara¬
war booty and loot, which

tions,

have of necessity been pretty well
limited
to
existing stocks and

equipment, would
been

fail to

to have
can-hardly

seem

scale which

affect the ability of Bul¬

garia, Roumahia, and Huhgaryto
export. This Will riot, however,
prevent

the exaction

tions from current

repara¬

output. Taking

account of the absence of

transfer

difficulties and the magnitude of
Russian
the

seems

high traction "of
capabilities of the

export

former

requirements

probable that

German

reparations

satellites

for, many

come. Such additional

pluses

will

way

years

export

sur¬

these countries may be

barter

also

true
and

This

agreements.
the

exports from

Yugoslavia.

Russia

terials

may

ma¬

necessary

keep their economies functioning
though the terms are likely to be
extremely unfavorable.
This
trade
.more

the

rechanneling of the foreign
of

eastern

remarkable

war

the

Europe

before

that

trade with

the

Russia of

four of the six countries involved

volume,
2 State

Department

Bulletin.

lars and

billions.

the exchange of

rope

far

and the rest of the world are

from

over 1.7
Despite Nazi attempts to

terial

raw

ma¬

producing

commerce

cleat.
The implications of
these events, however, and of in¬
ternal Russian
development for
Russian trade with western Eu¬

two billion dol¬

over

her imports to

divert German trade to

remained

40 %

over

trade.

countries her
with industrial Europe
1928

total

been

had

her

over

50%. Industrial-Europe was bound

too

together
•

trade

network

vital importance to the ebhtiriued
prosperity of the area and Ger¬
many Was at the center of this
network..

partial or
predominantly

centuate

the

integratipp;,: 4'AAt the present time, of course,
complete, of trade between Germany and the

Germany would ae-*;,'

cleavage
between,
east and west iii EUrope.
j,
Yet partition obviously is well

underway.
It is unnecessary to
trace the steps by which this re*-

brought about. Per^;
haps it is inevitable in a fouiv
power
administration
of
Ger*many. Joint Anglo-American conrj;
duct of military government in
Italy proved difficult enough.
A
fotir-powers administration wltbij, j
separate occupation zones im- -J
measurably increases the difficql~fi|
suit is being

ties
most

administration.^;.

uniform

Whatever

basic

the

striking

the
date,

causes,

indication

of "the flow of events toward paifad--*
tition is the Potsdam decision pjri

Germany

Instead

reparations.

as a

treating^.

reparation^

unit for

exactions, Russia i£ invited to coir
from

her

lect
zone

the

The

clear.

the

eastern,^,

and the western powers

western

from

with the pro¬

zones

of collectible surr,> •
plus
over
and "above
German ;
needs, shall be supplied to Russia.
on reparations account and an
aq^w
that

viso

10%

agricultural world is at a complete standstill.
and south¬
Except for the removal of equip¬
into the larger ment and stocks from the eastern ditional 15% in
exchange for ship-J-]
Russian
economy
should make zone into Russia, a certain amount ments of
equivalent value from
possible the diversion of addi¬ of restitution of looted property the eastern zone. If
reparations^'n
tional resources to manufacturing
to the west, a small export of elec¬ policy were independent of other,!,
f
industries.
It
is
probable that tric power and coal and some
objectives with respect to thfc
Soviet production, after the long
shipments to occupying forces and German economy this might
period of expansion of heavy in¬
displaced persons chiefly in the considered a satisfactory comproAj^
dustry involved in the three Five British and American
mise.
But what is taken out of
economies
eastern

eastern

Europe

Year Flans and the

war

zones,

will

now

definitely to the manu¬
facture of consumers' goods.
It
can
be argued that
since such
more

manufacture
same

does

not

thfe

hatfe

significance for national

se¬

noth¬

ing is moving into or out of Ger¬
many. X)f highest immediate im¬
portance, in view of European

Germany on reparations account ; j
unfortunately affects the adminis¬

needs, is an increase in German
coal production and the restora¬
tion of transport facilities from
the Ruhr to carry this coal to
neighboring
countries.
Beyond

of * occupation, economic
demobilization,
and
the
main*tenance of a standard of living nd

curity

as does

heavy industry the

USSR will pay more attention to

comparative costs

and

engage

these

immediate

problems, how¬
ever, lies a series of questions, the
answers to which will go far to¬
ward
determining
the
future
course of European trade.

more selective program of im¬
porting and producing for export,
On these matters one guess is
about as gO'od as another. My own
guess would be that regard for
In order to put these questions
self-sufficiency is fairly basic in
in their proper setting account
Russian
planning and that al¬
must again be taken of the under¬
though foreign trade will increase;
somewhat the Increase Will riot be- lying political aims and security
considerations now shaping policy
very large.
toward Germany. If a dangerous
If Russia succeeds in borrowing
cleavage between east and west
bri a large scale from this coun¬
iii Europe were to be avoided, One,
try, her imports will of course in-' of the essential Conditions was the
a

but there

crease

believe
so

used

that

her

these

reason

funds

to increase

volume

will

increase

traditional

articles

and oil,

permanent¬

foreign

trade.

Russian gold holdings and
production
together
with

ber, furs

raw

amounted to

implications of events in
eastet-ri Europe for the structure
oi intra ^European * trade are all

articles

industrial

trade

The

small

and

this

For the immedi¬

portant than the economic.

appears to be able to export to
these countries such manufactured

pa¬

above-quoted

from a companion
Trade, Geneva, 1941.

68.

that

presently resume its west¬

facts of life seem to be more im¬

turn

speculation.

Poland
At

would

the

effects

what

able to generate appear to be des¬
tined for Russian consumption by

future

to believe

reason

whether

cluded.

Any consideration of the

In the absence of
political pressure there is every

likely to persist indefinitely?

devoted to supplying Russia with

trade

made up of

petitive position in this trade. De¬
spite Nazi attempts at self-suffic¬
iency German exports in 1938 still

lars per annum.

neling of eastern European trade

Germany and of
policy. Since each
one
of these subjects is a large
morsel, indigestion is not pre¬
British

was

manufactured goods on which the
different

to a few hundred million dol¬

ate

seriously impeded by po¬ 4

spects for peace and prosperity in
the world are inevitably and se¬
riously damaged.

Partition

orientation.

the effect of this reorientation of

ropean

What

ern

feconomic relations?

place without
decline in Eu¬

$250,000,000.

war

causing

serious

than

lost then to intra-European trade,
if commerce persists in its hew

Roumania, Bulgaria, Huhand Yugoslavia are apparent¬
ly
encouraged
to
make trade
agreements with each other and
discouraged from making trd'de
agreements with the rest of the
land,

gary

trade could not take
a

less

posed to Austria.
An agreemeht
countries making up this
with Poland provides for fairly, channels, are eastern sources group specialized. The central po¬
extensive
shipments
of
capital mainly of foodstuffs and raw ma-; sition of Germany, the excellence
terials and outlets for western and
of
her railway
equipment from Russia for pur¬
communications
central
European manufactured and the size of her domestic mar¬
poses of industrial development.2
products, which amounted pre¬ ket gave Germany a strong com¬
Finally the governments of Po¬

In 1938 the industrial coun¬

trade.

has entered into tioh 'of the lew level of economic, the industrial countries of west¬
hot take place except under oon- | j
ekistene'e m this £jrea. Even Ro¬
agreements with the
ern, northern and central Europe.2 ditions Which would force the
sepr.J
Roumanian and Hungarian gov¬ land, the largest of these coun¬ A substantial fraction of this trade
arate parts into alignment with
ernments for the joint exploita¬ tries, exported a value of only consisted
of
exchanges of coal the
neighboring
great
powers.
tion of the economic resources of $220,000,000 in 1938 and imported and iron ore but most of the rest
Russia

terials.

longer-run

all.

the

gold
some

export

such

as-

tim¬

would be suf¬

ficient to finance interest and

re¬

tirement charges on a debt of the
size customarily discussed. This, by
the way, is probably a consideration

which

should

affect

..lending
policy. Unless we are willing to
lend merely to increase employ¬
ment with the certainty that when
the debt is repaid the difficulty
of

maintaining

also be

our

employment

will

increased, the considera¬

administration

of Germany

tration

the

other

intentions

establish

tions

was

vital
of

'exactions,

importance

living,

and

repara¬

policies

This is riot hfec'essarily a crifem
icism of the policy of the Amer^&i
iOOn

GovOrnmeht nn GermOri
No one is in

arations.

It may

decision.
view

re^qij

position >h

fully aware |

well be that, in

the

mobilization

ready proceeded far toward

ent

Zones.

The

need

for uniform

policies increases with the length
3 Austria,

Belgium-Luxembourg,

events

have

aljv^
pa^?^

tition of Germany ihto eastern
the

spheres of influence.
that

extent

treatment of
mans

will

the

west

the

so,

and

/Jt

TO^e
the?j;

Germany and of Ger¬

a source

friction.

barter

this

inevitably be different

different

evitably
and

Czech¬
oslovakia, France, Germany, Italy, Nether¬
lands, Sweden, Switzerland.
.

action.

western

r.t

circumstances,:, the u
reparationsagreement; m
only practicable course ?

approximately
uniform
throughout
Germany.
The conditions imposed on Ger¬
many
might be harsh or they
might be lenient: it was impera¬
tive that, whether harsh or leni¬
ent, they be similar in the differ¬

altematiV'e;?.

all

Potsdam
was

demilitarization and ecohomic de¬
be

J
ru

]

many it is difficult to see.

to criticize who is not

standards

common

economic policies throughout Ger-

of the obstacles t6 an

that

'
,

cordance with

ers.

higher than that endured by sur*
rounding populations. If one zone
is stripped of productive equip* J
ment while other zones are not, J,
it becomes impossible to
main- "l,
tain anything like uniform levels \
of living throughout Germany no
matter what that level may be., !
How the reparations decision is to ! "
be reconciled with the Potsdam^

economic and

political unit in ac¬
principles mutually
acceptable to the occupying bow¬

announced^,

purposes

Trade

may

spheres and in—" !
of suspicion and Z]

between

limited

east

the

exchange contemplated by
reparations agreement.
The

Volume 162

import

and

Number 4438

THE COMMERCIAL

export

stantial

volume

program for
whole as planned at
become import-ex¬
port programs for the two halves

influenced

toward

foregn

Germany

as a

But the volume and

Potsdam

may

that

Germany.

/)-;i;

.The future position of Germany
in

trade

ities.

the trade of countries

trade.
character of

making

United

exclusively

Britain will lose

with

Russia,

part of her

some

customary European trade.

This brings us to the ques¬

volume

intra-European trade .:: clearly
depends very much on whether
there are-going to be two Ger¬

The Potsdam policy is oriented
in the direction of maximum self-

many's

sufficiency

tries

German

If the

trade

suffers

may, on

or only one.. If there are

two, there is every reason to expext that eastern Germany will
be integrated into the economies
which make up what is becoming
the Russian security, zone. If that
Is so, western Germany in order
to Jive would have to develop a

greater degree of specialization, a

larger foreign trade, and a closer
economic
interdependence with
the Test of the world than would

otherwise be necessary. , ■.
v;
-Whether or
not
Germany is
treated

economic

unit

is,
then, the first important question
mark in attempting to .forecast
the future position of Germany in
intta-European trade. The sec-?
vond is the course which may be
fallowed with respect to. de-in¬
dustrialization in Germany.
Ob¬
viously policy .toward a reduction
of Germany's • industrial capacity
iS closely linked to reparations
and
to
the
standard
of
living
which

as.

considered

desirable

A standard of

to maintain.

being-given,

living

the

larger repara¬
tions payments out of current out¬
put, the greater German's indus¬
trial capacity would have to be.
This obvious relationship has de¬
fined

British

the

and

the

Amer¬

ican

position against large repara¬
tions.';'This issue has, however,
become academic for it is already
cledr that no,- or at most neglig¬

ible, reparations from current out¬
put can be collected from Geririany, unless the United States, is
willing, as /after the last war, to
finance German reparations pay¬
ments.
'
'
\ ■';
1
We have, however, this time af¬
firmed as a guiding principle that

tion of de-industrialization.

for

restricted

have

would

will

involve

the

continent.

ments

this

can

seen.

done

-Vf

and

trade

agree¬

agreements, which

not

that trade will

assure

handicapped
of payment.

means

by lack of
These agree¬

ments
are
all
technically dis¬
criminatory in the sense that the

credits

provided
into

verted

cannot

con¬

other

currencies, but
must be used to pay for imports
from the country participating in
the agreement. Since, in the ab¬
sence of such
arrangements, it is

iU:^

I rule

out, as being unworthy of
consideration,
proposals
for an agrarianization of Germany
adequate to develop an export
surplus of foodstuffs. Hitler's ef¬
forts to stimulate agricultural out¬

doubtful

whether

much

By the
Germany has recovered suf¬
ficiently to balance her external
accounts

accumulated

the

deficit

oh previous imports is apt to be
sq large that, if the first charge

principle is followed, any export
balance

will

meeting

the

deficit.

may,

therefore, rule out reparations
current account as

exhausted

factor deter¬

mining Germany's future position
in world trade.
,

■;

There remains for consideration

pplic^ tpw?td de-industrializatiori
and the standard of living which
is sought to be attained in Ger¬

carried

volume

German

countries

trade with the rest of the world
be much less

will

raw

materials needed for

The

Potsdam

these? standards until three -years
after the end of the war.

tries^

con¬

;

The standard of living is a very

fuzzy

elastic

not

from

than

2/5 of British

possible
Britain

sumed

to what other

continental

Europe

th°t

peoples in
it is

consume

cannot

tained in Germany without

main-"
a

sub¬

trade

was more

the

;

i-r

of action open to
so clear-cut.

it would
importance

great

countries

western

Europe and her Empire without
losing the good will of the United
States.
These security conditions
set a

very

difficult problem for

British commercial policy.

can

only be solved, I believe, by full
British cooperation in a multilat¬
eral

and

trading system. The second
choices are so inferior

third

choice at all.

widely distributed
4 Cf.

Board

5 Cf.

increasing

percentage
going to
Empire countries. If, henceforth,

Sir

ployment

Trade

William
a

6 Ibid.

needs

from

order

Europe becomes

should

happen a permanent parti¬
of Germany between east and

tion

west appears to

ity.

Whether

curs

real possibil¬

not partition

policy

de-industrialization

Free

Beveridge,

Society,

■ '

i: < ,r

Full

Part

)

possible her cooperation in will reduce the volume of intramultilateral trading system is a .European trade disastrously for
good American investment.
years to come.
The recovery of
HOn the assumption that this in¬

western

Europe under these cir¬

vestment is made, one may prob¬

cumstances becomes

ably);/expect

difficult

western
of

that

the

Europe will also be

multilateral

trade

rather than

part

trade '* network

part

western

Empire preferen¬

tial system. If western
Europe can
succeed in replacing the trade lost

through a" permanent decline of
Germany's economic position, it
will probably be by way of an
expansion of
tries

commerce

outside

with

continental

Eu¬

Whether western Europe
this trade; whether
western Europe can in fact again
become prosperous with a Ger¬
many which is permanently de¬
pressed, is, however, a matter of
replace

grave doubt.

level of
the

high

intra-European trade and

avoidance

cleavage be¬

tween East and West can make an

important

contribution

much

'i'- i.!i,

;

i: '

.).

the

establishment

the

condi¬

necessary to integrate the
economies of western Europe into
a
world network of multilateral
trade.
task

the

fulfillment

United

interests,
great
resources,
great responsibilities.

peace

and

States

;

Herbert Stern Admits
Wm. Rosenfeld, Jr.
Herbert E. Stern &

Co., 30 Pine V
New York City, members,-:
the New York Curb Exchange,

the

ber

New

York

change.;)
Mr.
Rosenfeld

own

and

did

conducted

•.

•

Agreements of Series B attached,

due

January 1, 1960.

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of

dated January 1, 1940, between Louisville
Company and Central Hanover Bank and

the Supplemental Indenture
and

Nashville Railroad

Trust

Company,

Trustee, supplemental to Unified Mortgage dated

June 2, 1890, from Louisville and Nashville Railroad Company to
Central Trust Company of New York, as Trustee, Louisville and Nash¬

Company has elected to redeem and does hereby call for

ville Railroad

redemption and payment on January 1, 1946, the entire principal
amount of those bonds issued under said Unified Mortgage and said

Supplemental Indenture, designated as Unified Mortgage 4% Bonds
with Extension Agreements of Series B attached, due January 1, 1960,
which shall be outstanding in the hands of the public on said redemp¬

104% of the principal amount thereof and accrued interest
principal amount to the date of redemption. ■,
>
)

tion date, at
on

the

'On January 1, 1946, said Bonds will become due and payable at
104% of the principal amount thereof and accrued interest on such
principal amount to the date of redemption, and said redemption
price and accrued interest will be paid at the agency of Louisville
and Nashville Railroad Company, Central Hanover Bank and Trust
Company, 70 Broadway, New York IS, N. Y., on and after January
2, 1946, on presentation and surrender of such Bonds with all unma¬
tured coupons thereto appertaining. In case there shall not be
presented with any Bond in coupon form the coupon maturing on
January 1, 1946, such Bond will be paid at the redemption price,
and such interest will be paid to the bearer of such coupon on presenta¬
tion for payment.

Said Bonds in fully registered form, or in coupon

to principal, upon presentment for payment, should
be indorsed to bearer or accompanied by proper instruments of assign¬
ment and transfer in blank.
form

registered

Interest

said Bonds will

|
New York, N.

and after January 1, 1946.

cease on

LOUISVILLE AND NASHVILLE RAILROAD COMPANY
By: W. J. McDONALD, Vice President.

Y., November 8, 1945.

;

•

PREPAYMENT PRIVILEGE
Holders and

registered owners of above-mentioned Louisville and
Unified Mortgage 4% Bonds with Exten¬

Nashville Railroad Company

of Series B attached, due January 1, 1960, called for
1, 1946, may immediately, or at any time
prior to said redemption date, obtain payment of the redemption price
of said Bonds, together with interest accrued to January 1,1946, upon
surrender of their Bonds at the above-mentioned agency of the
sion Agreements

redemption on January

Company. Coupon Bonds must be accompanied by all coupons thereto
appertaining maturing on and after January 1, 1946. Bonds in fully
registered form, or in coupon form registered as to principal, should
be presented indorsed to bearer or accompanied by proper
instru-^
ments of assignment and transfer in blank. )
v
; ;
.On November 5,1945, B<>nds bearing the following distinctive,
numbers of the above issue previously called for redemption
had

:/) ;

not

been

presented for payment:

B 9783

B 9980

Em-

r- '

(

H.U-

1
'

nr'-i

his

REDEMPTION,

•

Curb

firm, William I. Rosenfeld &

Mortgage 4% Bonds

;

LOUISVILLE AND NASHVILLE RAILROAD COMPANY
Unified

Ex-,

formerly
individual

broker

•

Curb

To the Holders of

the admission to general :

partnership of William I. Rosenfeld, Jr., Captain, A. U. S., a mem-

business

NOTICE OF

Street,

floor

prosperity in the world, the
course of European events
offers food for melancholy reflec¬
tion. The absorption into the Rus¬

with Extension

great

present

;

this

has

and

„

tions

announce

who believes that

one

coun¬

rope.
can

task.

task, how¬
ever, which can be facilitated by

VI.
.

" 1 ;

oc¬

thoroughgoing
in
Germany

}

Brit¬

power

make

Journal.

'
.

*.t

lows that such assistance
ain"

eco¬

develop¬
only if
cleavage in
reality. If this

persist

can

potential

constitute, in effect, no
They may be feas¬
ible commercially but they can¬
not be embarked
upon
without
as

es¬

interests, therefore, it fol¬

grounds

the

with

British

with the rest of the world with

quite

security

courses
are

seem

exports were

continent.

security and

doubtful whether the

that Britain cement her relations

the trade of the countries

both of national

nomic

It furthermore

imp 1y.

seems

of, conditions

statement

would

of western Europe. In 1938 about
third of the U. K. imports came

sold

this

continental Europe and less

bination bears any resemblance to
what • Germans;;); previously
con¬

that

however, whether Britain is in a
position to be quite so "choosy"

and services. However, if the com¬

told

necessary

an
acceptable balance of
imports and exports and a stable
foreign economic policy fi It is no
doubt highly desirable that the
United States attain these objec¬
tives.
I consider it questionable,

was

further

are

ment,

closely linked to
the intra-European trade network
as

ar¬

coun¬

of the world—meaning the
United, States—of full employ¬

United

concept.
It
could embrace a wide variety of
combinations of consumers' goods
and

trade

tries

Kingdom in the period before the
was

which

to Brit¬
ain's co-operation in a multilat¬
eral trading system are the main¬
tenance by other industrial coun¬

production.
The
extensive pre-war trade between
Germany and the countries of
western Europe would be severe¬

war

within

the conditions

goods

the

confront

rangements with interested

declaration
envisaged for Germany a "pro¬
ly diminished.
These countries,
duction and maintenance of goods
would have to look elsewhere for
and services required to meet the
markets and sources of imports of
needs of the occupying forces and
manufactured products. Whether
displaced persons in Germany and or not German
heavy industry
essential to maintain in Germany
could
be transferred
to
neigh¬
average living standards not ex¬
boring countries is problematic.
ceeding the average of standards
It is one thing to destroy heavy
of living of European countries."
industry in Germany and another
Preliminary findings of American
thing to build or rebuild this in¬
experts indicate that this standard
dustry - elsewhere.
These
and
might be interpreted to mean a other
questions, however, cannot
per-capita consumption in Ger¬
be pursued further here. We must
man^- perhaps % as high as in turn to a brief
consideration of a
1938, or about equal to consump¬ third
major influence on intration ? in Germany in 1932 at the
European trade, British commer¬
depth of the depression. These cial
policy.
findings also indicate that even
on favorable assumptions it will
British Trade Policy
probably not be possible to attain
The commerce of
many.

that

the consummation of bilateral

exports would consist pre¬
dominantly of finished consumers'
goods and of coal and potash; her
imports would be* predominantly
sumers'

action

might be relatively free, and (3)

than pre-war;

her

the

courses

England in the field of commer¬
cial policy are (1) co-operation
in a multilateral trading system
with the rest of the world, (2) the
formation of a preferential bloc of
western
European and Empire

policy
through, the prospects

the

that

are

great interest, moreover, in

tablishing the conditions necessary
for multilateral trade. On grounds

these arrangements extend
beyond a period of transition and
are accompanied by such controls
as may be necessary to
keep trade

If the Potsdam industrial

ever,

could then develop a substantial
export of foodstuffs in a world
which
will
already
be glutted
with agricultural surpluses,
The
proposal makes no senseJ.:^

uneconomic

ment, which

any

paynient for imports into Ger¬ many has lost 25% of her arable
be a first charge on land and, if the existing program in the channels which haVe been
expfofcts from Germany. Since at of population transfer is carried established the basis will have
any*, Standard of living one wants through, will have somewhat more been laid for a
policy of great
to choose, imports into Germany
than
60 million people to
feed significance for the future course
are going to exceed exports for a from her restricted
territory. We of European trade.
Ion|; jtime to come, the possibility are asked to believe that Germany
We are told that the possible
of reparations from current out¬
time

thoroughly
the

sort Which might inj ure the in¬
terests of other countries. If, how¬

out¬

is true. We have

reverse

side of Germany. Since then Ger¬

interest

quite the

would move, it cannot be
said that the discrimination is of

many shall

put is out of the window.

has

trade

put failed to achieve self-suffi¬
ciency for Germany although wheat
and rye were produced at three
the cost of production

These

both sides to

serious

times

her

summer

pretty much the same
pattern, accept the prevailing ex¬
change control system, establish
or recognize a
rate of exchange,
and provide sufficient credit on

sug¬
to

the

"with

lands A

Whether

remains
*,

••

—

are

restore

Belgium,
Sweden,
France, Denmark and the Nether¬

for the imports
she would have to develop an ex¬
port of substantial volume pretty
much limited to coal, potash and
a
very few other basic products
and to consumers' goods not fab¬
ricated
from
heavy
materials:ceramics

taking

of 1944 she has entered into bilat¬

pay

possibilities.

countries

Since

financial

States

sian economy of the trade of east¬
and southeastern Europe is a

ern

jeopardizing that position; in fact,

Europe-British

Britain)

trade

and

Europe which

energetic
steps to
with various

all

for

consequences

Meanwhile

port large quantities of materials
which could not be domestically

economic

defy prediction.

eral

Textiles

augment

Britain's trade with

formerly imported products. The
extent to which this is possible,
however, is distinctly
limited.
Germany would stili have to im¬

gested

outside the .Russian
security
Political considerations will

in encouragirig the de¬
velopment of this trade relation¬
ship. If, however, the tug of war
between feast arid .west splits Ger¬
many in two, the subsequent in¬
tegration of western Germany, in¬
to the economy of western Europe

turn to the maximum extent pos¬
sible to domestic production of

produced. To

Britain

interests

she

and

undoubtedly

exports

contraction

the other hand, fall heir
part of this trade with coun*

zone.

Germany's ap¬
proved post-war peace time needs.
The German steel industry
would be reduced to a suggested
,7 million tons of ingot capacity
as compared with a pre-war ca¬
pacity of 25 million tons, and other
heavy industries proportionately.
This would, of course, deprive
Germany of her principal pre-war
.

permanent

Germany. "Pro¬
duction of metals, chemicals, ma¬
chinery and other items that are
directly necessary to a war econ¬
omy shall
be rigidly controlled
and

jeopardizing
Britain's
position in the world. The

power

production facil¬

2359

seriously

the Russian security zone is
large¬

may
be considerably
by the policy adopted

German

& FINANCIAL CHRONICLE

'•

Thursday, November 15, 1945

CHRONICLE

& FINANCIAL

THE COMMERCIAL

2360

long-term

Britain?—Two Different Views

Should We Subsidize
HERBERT M.

BRATTER

(Continued from page 2323)
some
opinion of current
proposals to do something for
Britain that will, take the place
;

(Continued from page 2323) $$ definite suggestions, stating:
"Britain cannot deal with this
now well established as the labor¬
'blocked sterling' problem as an
atory for the germination of inter¬
ordinary debt.
To liquidate $14
national
politico-financial plans.
billion
of
sterling indebtedness
Among its technicians one can

have

of Lend-Lease."

who

some

are. as

publisher of the Hous¬
ton "Chronicle." "In the editorial
columns of my paper my views on
financial help for Britain have
been clearly set down. That they
are
my views,
I do not deny.
There is nothing I could say on
the subject now that would not be
repetitious."

obligation of $550
in addition to the
indebtedness that will be incurred
to finance the transition, would
Mr. Jones' views, as reported
be beyond Britain's capacity, cer¬
below, are therefore based upon
tainly within the next decade. To
the Houston "Chronicle" editori¬
secure an export surplus of $550
als, eight in number, published
million a year to service the ster¬
toward
between
September 11 and Oc¬

job that needs to be done; that we
shall do only half or three-fourths
of a job, with all that this implies
for a few years hence.
This is the
view of some of those who listen
with the ' greatest sympathy to
Britain's -current demands; men

good-will

financial,

and

owner

with the British loan

add to this an
million

year,

ling balances would require in
fact an expansion of exports on
Washingtonthe order of $700 million a year,
ian, a close observer of the Angloif imports for British use are not
American negotiations, when in¬
to be curtailed below the low 1938
terviewed by this reporter last
level.
week, expressed the feeling that
"To resume the convertibility of
Congress will not likely make a
some
means
must be
loan to the British in an amount sterling,
found
to
reduce the aggregate
large enough to assure the pound
sterling a margin of safety. Lord sterling indebtedness and to fi¬
Britain.

Can't Be Called a Loan

;

*?:;

'ItT

Terms
'•

„

Important Than

/.W;.-

Amount

important than
the amount of credit to Britain are
the terms of the transaction, these
But

even

defense.

own

fi¬

nancial

has

been

the

arrangement which
under discussion with

ain would

be prepared to assume
the risk that a world economy can
made

This, in sub¬

work.

that British
spokesmen have
always taken.
Now, with the end of the war, the
magnitude of Britain's transition
It is worth a problem is clear. The countries
that stand to gain most from the
stance, is the position

good deal to India'to have kept
callirig for $4 billion. Japanese conquest from penetrat¬
If Canada makes available one- ing to that country; it is worth a
tenth of whatever we lend the good deal to Egypt and to the
British, as our Northern neighbor Middle East to have kept German
is said to be ready to do, and if and
Italian conquest from that
South Africa can be persuaded to I area.
The war payments which
make more than a token loan in Britain met for the defense of
supplement
thereof,
B r ita in | these areas, when difficult politiShould be able to count on not less cal negotiations could not be unthan $4y2 billions.
This, say the dertaken and when the aggregate
advocates of generosity, cuts the ■ cost of the war could not be decloth; too closely* and does not termined, should now be renegoleave enough room at the seams, tiated so that these areas and the
Peering into the future, they fore¬ British Empire countries assume
a
fair share of the cost of their
see that Britain will need not less
,

restoration of

United States,

Canada, and the countries of the
sterling area—should in their own
interests agree on a-program, that
will enable Britain to meet this
problem."

"A program for this purpose
will involve financial aid on terms

within Britain's capacity to repay
and in an amount that

will enable

dispense with the restrict¬
and discriminatory arrange¬

anonymous,

interest rate on a

long-term loan,to Britain "at Vz to
%% would be generous, at 1V2 to
2% would be liberal, but at more

busi¬
remember/ the
fix will be a pattern for

than 2% would be only on a
ness

basis.; And

rate we

others

If Britain

borrow.

must

Britain

whom

from

aid

can secure

without unduly burdening its

bal¬

of payments

in coming years
quickly give up
wartime restrictions on trade.
So

ance

can

the

sterling

United-States and other countries
would have to be about $5 billion.

creased by

heavy interest charges.

"If the transition problem were

gation to share in the, costs of the

met, Britain would be in a posi¬
tion to establish the full convert¬

generous

The

in this matter.
thing is to help

now

important

war.

ibility

"With a(substantial reduction in

hereafter

sterling

from

rived

current

de¬

transactions.

its
current international transactions

sterling

possible and to assure
that country the help needed to
bridge the transition period.
By
being liberal to Britain now we
may shorten that period, for liber¬
ality will give strength toasterling." This viewpoint, we may as¬
sume, has been discussed by the
British-American financial negoti¬
ators against the background of
what Congress is thought likely to
accept. Once the British Govern¬

balances could not be made freely
immediately an amount of sterling
convertible, even when they are
needed by these countries as normal working balances to finafice needed for current trade in other
until satisfactory ar¬
their international trade. The re-, countries,
are
made to scale
mainder could be funded in ster¬ rangements
down by 40 to 50% the large bal¬
ling annuities payable over a con¬
ances accumulated by the sterling
siderable period without interest.
Even a moderate rate of interest area countries as a result of Brit¬

Britain

restore

soon

balance

ment consents to the
a

financial

and

unveiling of

commercial

pro¬

result of the recent con¬
versations, one may expect to see

gram as a

the

views

above

elaborated

and

widely disseminated.
Disposal
In the
bination

"Blocked

Sterling"

parcel with a com¬
gift-loan to Britain, a

policy, and
Lend-Lease

plan

for

settling
there

obligations,
must be a suggestion for solving
the problem of the large
sterling
due

other

countries

have been accumulated

London during the

subject

to,

sterling balances corresponds
largely to the increase in cash
no

war.

informant

On this
has

some

war

view

informant,
who has had much opportunity to
study the matter, the British pub¬
lic would welcome any plan which
would enable that country to par¬
ticipate in a program for a world
economy.
On this point his com¬
my

ments were:

"If

the

transition

„

special problem
could

of the

solved.

essential

to
obli¬
convertibil¬
ity of sterling, it should be Dart of
the arrangements made by Britain
balances

enable Britain to assume the

Position Britain Takes

the

gress cautious about putting too
much additional strain on our own

credit.

The British

make

can

certain contributions in return for
form of aid from the United

some

States.
our

But until

have put

house in order the Brit¬

own

ish should not expect to find fur¬
ther aid here on anything but a

deal

lem.

"If

immediate

with the transition prob¬

'
means

provided to

en¬

able Britain to maintain her im¬

ports during the transition, and if
sterling were made convertible, it
would
be
possible to abandon

promptly the sterling area dollar
Brit- pool.

the

fact

that

saying that they were "not in the
mood" for a loan, Mr. Jones states
that the United States is not in
the mood for additional

gifts, be¬
yond those already made to bring
an end to the war. Alluding to the
British statement that they cannot

regular loan because

replies: "This may be true,
repayment of a reasonable
loan or advance heed not be all
in dollars. Certainly Britain is not
but

without

used.
1

the

Citing

worth

which

assets

could

billions

dollars

critical

and

scarce

ma¬

terials which the United States to

large extent purchased in
the British Empire under his di¬

ish Empire and were paid for in
cash, while at the same time we
were furnishing Britain with our
supplies through Lend-Lease and
many of
the supplies furnished
Britain through Lend-Lease were
made

from

the

materials

bought from
the British Em¬
pire.
V It would be to our ad¬
vantage to stockpile [such mate¬
rials] as President Truman sug¬
.

gested.^ The United States could
""properly;

make
advances
against the delivery of such arti¬
cles'.
say $500,000,000 to the
British in return for future deliv¬

very

the

"Early in the war Great Brit¬
ain obtained a credit of $425,000,000 from the RFC secured by as¬
sets which the Britiish held in this
with earnings
from British insurance companies
together

country,

the

business * in

doing

States....
collateral

United

It is estimated that the
and

the

income

now

"These

two

possibilities offer a
an

advance

approximately
$1,000,000,000.
an operation would provide
a method oi: repayment which the
British
can
afford,
and
would
make funds available while the
of

Such

departments and Con¬
considering any future
arrangements," Mr. Jones holds.
executive
are

Sees British Propaganda

Effective

Mr. Jones thinks the British are
skillful

mobilizing

American

opinion in support of what they
want here.
To get support for a

nature

;

Britain

sub¬

export

would

American

that

mean

the

already sad¬
$300,000,000,000 na¬
tional debt and facing an annual
budget of $25,000,000,000 for gov¬
ernment expenses, would assume
dled

taxpayer,

with

additional burden in

order to

protect markets abroad

for

spe»-

cial and limited classes of Ameri¬
There is

question
that American exporters need any1
cans.

reason

aid.
Germany and Japan,
both heavy exporters in the past,

such

have been eliminated
tors.

compete

It is indeed time to put

...

end to

subsidy operations* This
harmful, expedient, begun in the
field of agriculture, has become
far too widespread.
If we are
an

to subsidize the restoration of the

economies

France,

Great

Russia

loans

make

Britain,
China,and

and

other

many

coun¬

bei

tries,; Uncle Sam may soon
come fPoor Pa' indeed."

1 "

^r-v

Congress Getting Wise

Mr. Jones takes

hope frbm
opinions which certain

changed

members of Congress are

reported
to have undergone as a result of
personal observations in Europe.
He cites approvingly statements
made
by Senators
Moore
and
Morse, and by members of the
House
postwar committee
who
wefe
in
Europe
this summer.
"The
philosophy of the House
sub-committee that

must 'take'

'give' represents %
viewpoint which, fortunately,I is
gaining more and more adherents.
I ; It is believed that Great Brit¬
ain should recede from its pblicy
of imperial preference and that
applicants for loans should'first
show their willingness to exhaust
well

the

offered under

facilities

Woods

agreements
Export Bank. .
.

ton

Bret-

and ;"thb

expression^Yht

"If the' current

opinion strengthen

Congressional

the hands of the American nego¬

tiators in demanding that any ad¬
vance be based at least upon the
cost of the money

ment with

to this govern¬
businesslike arrange¬

repayment, much> jvill
gained, and no less can
accepted. If in addition we can
obtain other material offsets,
for

ment

have been
be

concessions

trade

and

bases,

it may be possible for us to' ma£e
an advance to the British that fjls
not

and

entirely one-sided. ..." More
members

{of Congress]

around to the view
expressed by Mr, Colmer, when
he said: '.
We feel the United
coming

are

States
to

necessarily want
comes a time

not

does

"take" but there

when

eries of such products.

of aid

advance made to

sidy.

very

rection, Mr. Jones records:
"A
large part of these purchases were
made from members of the Brit¬

form

some

from

please these interests would be

;

the British negotiators on arrival
in this country were quoted as

have

But, continues Mr. Jones, "any
loan

Commenting

they

producer? and ex¬
porters of durable goods, market¬
ers of oil, and the agricultural and
dairy interests.-V
.. ; ;
:

Assets Britain Could Use

gress
were

Britain

business basis."

businesslike basis for

gation

The

debt, together with, the increased
costs of government necessary to
reconversion, should make Con¬

pledged Would enable the RFC to
advance probably $500,000,000 ad¬
ditional, with good prospects of
repayment from the earnings in
from 25 to 30 years.
■
'

sterling

interest cost to

their monetary authorities."

obligations without interest.
Be¬
cause
such a settlement of the

sterling balances by monetary ex¬
pansion.
The increase in their

Monetary Fund, and the rest could
be funded into long-term sterling

nearly all of these countries
financed
their
accumulation
of
more,

volves little

sterling

expenditure. When this
has been done, some part of these
sterling balances, not to exceed $2
billion, could be held as work¬
ing balances
convertible under
the
terms
of the
International
ain's

enormously the
burden to Britain in liquidating
the
wartime balances, Further¬
increase

would

accumulated

Obviously,

convertible

make

same

ment of international commercial

which

balances in these countries and in¬

hoped-for Anglo-American agree¬

balances

undertake

could

Britain

balances

The only alternative
which has been sug¬
.

tor

designed to meet her tran¬
heeds. The
aggregate
amount
of
such aid from
the

multilateral • system of trade to

ments

countries. for

area

purpose. .
to a; Joaq

sition

&<■ Clearly, it would not be desirable
to reduce the amount to a level
to. ask
that would raise doubts as to its
these countries to give up all of
their sterling
balances as their adequacy and require the reten¬
The
contribution to meeting the costs tion of harmful restrictions.
of the war.
They have already aid should be in the form of
credits repayable over a long pe¬
made large sacrifices in providing
riod
after
Britain's balance of
the real resources for carrying on
the war in return for payments payments has been restored, re¬
that can be used only for deferred payment to begin in the post-tran¬
sition period,
about five years
imports. For some of these coun¬
from now. The interest rate must
tries, the sterling balances repre¬
of necessity be less than would be
sent nearly all of their monetary
reserves.
A
reasonable compro¬ expected on a banking basis. Brit¬
mise can be made by reducing, the ain will have to meet not only the
transition debt, but also a large
sterling balances and arranging
for their gradual liquidation. This part of the wartime sterling debt.
should not be in¬
would take account of the needs of The burden
the

adjusting

its debts, but does not
wish to use any of them for this
of

of the problem of repayment, the
former Federal Loan Administra¬

monetary reserves and their obli¬

our

applied

might

entertain

interest as seekers of

it is to

poverty or insolvency [but which]
not lacking
in assets which

ive

analysts think. V According to one
of them, who prefers to remain

problem
is one of reorganiz¬
ing, compromising and adjusting
debts of a nation that is pleading

some

interest

charge"

support for

"the

opinion,

Jones'

Mr.

dear.

her to

practicable

is -not

States

United

the

world economy—

Britain herself, the

Suggests Cancelling Part;
Gradually Repaying Rest

"It

is predicated on the errone¬
assumption that the British
cannot pay, is
all give and no
take, contains the dangers of other
secret agreements, and will cost
ness,

Mr. Jones believes that the

ment a plan

than $5 billions. .?

be called a loan,
elements of good busi¬

direct grant

Keynes is reported to estimate nance it without heavy^ interest
Britain can legitimately
Britain's probable need for hard- charges.
currency aid in the next 30 years request the holders of sterling bal¬
ances to reduce the aggregate of
as
between $3 and $6
billions,
whereas reports have it that the their claims as part of their con¬
tribution to the war.

cannot

the

gested by the British has been a
by the United States
Government.
Our own heavy

tober 27.

One well-informed

Anglo-American negotiators have
submitted to the British Govern¬

delegation now in Wash¬

ington

ous
,

right," said the present

"That is

unhappy even over a period of 50 years
prospect as would require annual payments of
is Mr. Crawford, although for un¬ $550 million a year on a 3% inter¬
like reasons.
They fear that this est basis. The expansion of Brit¬
ain's pre-war exports by 50% is
country will not be liberal enough
To
to do for the United Kingdom the difficult; but it can be done.
find

British

lacks

service

scared American export interests.
"The result has been a wave of

CALLS FOR CAUTION

JESSE JONES

"at

credit

which would amount to only

rate
a

giving must stop and value
is here."5--'

be received. That time

>4.97

.*'cy'A* <'■:-■}

-W'-S

•

Loan Plan Conceals

In current

Jfb'i

■ ■

Gift of Billion

suggestions that 'the

considering, a' $5

negotiators are

billion 55-year loan

to Britain in¬

terest-free the first five years, and
Jones

sees

concealed

American

from

mean

that

the

a huge gift
to the
plan would

txapayers

such

"Any

British.
er^

thereafter^ Mr.

nominal rate

at a

American taxpay¬

wouldhave

pay

rather

dearly for the privilege of extend¬

ing aid to
ment

Britain.

at the

The Govern¬

presnet time is pay¬

ing approximately 2J/2% for its
borrowing of long-term money, so
that it would have to pay $125,000,000 annually—or a total;so£
$625,000,000 — for the $5 billion
loaned Great Britain during the
five-year period during which the
borrowers

paid

nothing.

this must be added the differences
between

United

the

States

interest
receives

which
in

the

subse¬

quent years and what the Treas¬
pays
for the money.; It :is
probable that the differential may'
ury

[Volume 162

Number 4438

increase to $1 billion what it will
cost the' taxpayers of this country

give

Great Britain the assist¬
her representatives say she

ance

have.

must

The

would

cost

THE COMMERCIAL & FINANCIAL CHRONICLE

pay any part of the principal."
And Mr. Jones thinks Britain may

fail, for he adds:
"The negotiators are
looking
very far into the future when they
.

talk

making a loan with a
maturity of from 50 to 55 years.
v

That

covers

a
length of time in
history in which much can
happen.
Two world wars have
been fought at an interval of
only
;y 25 years, and it took Great Britain

world

less than half that time to
repudiate the debt she owed the United

■i

States after World War h

•

not

which
ment

encouraging

base

record on
commit¬

future

running

That is

half

century.

And Mr. Jones brings to his side
the testimony of Senator Walter

:
"

F-. George, Chairman of the Sen¬
ate Finance

Senator

Committee, when the

observes:

don't

think

this is the time to be pouring out
a lot of
money to; any nation oh

earth.

There

are

sound

reasons

why a policy of extreme caution
'•shodld be;: followed."
^ r f
•

{■ --Hits at Secret Negotiations
Jones hits-ait the.is^orecy of

j,l
the
.

Anglo-American negotiations
.which started in September, say¬
ing: "The American people, who
will
have j to
furnish whatever
money is advanced to the British,

stampede the effects

of which

Tomorrow's

are
#

cause

Public Interest Takes Precedence

greater if Great Britain failed to

•

2361

Markets

Labor-Management Strife

7-'i;7"' (Continued from
labor education long sponsored
by
the mature labor movement which

bargaining

European countries, Some of our
union
organizers
were
distin¬
guished by their physical force

wages or excessive hours of work

rather

can

their

training in

such

which

relations.

generally

burden.

interfere

be' such

can

Strikes

with : the

public

action indicated which, should

burden.

In many respects the same was
true with industry. Our great in¬

Too

dustries grew so fast that they had
no time to learn the complicated

buyers

standing of all the factors in in¬

business of labor relations.
of

high

prices
In short,

burden.

can
a

such

be used to

trained under¬

industries, too, were budt
by aggressive and dominant men

ference

who

panied by

impatient
with
the
practice or even' the idea Of deal¬
ing with their employees as
were

ment.

table

must

accom¬

reason and sound argu¬

equals. Even now, there are some

the general welfare,
the State of New York is estab¬

who

lishing here at Cornell

have

facts

refused

the

learn

industrial

modern,

serve

educational

life.

the

and

men

with these problems of

W-Ul'' 77i7 '

future.

Relations 7:;:7 77;77;7j
are

out of date as

mind

the posse which strung up a horse
thief op sight.". We are growing

We: must

up*

of reason.

now

ate

in the

It
broadening

Today, the bld rules of force

and violence

ours

is an adventure in
the
horizon
of the
man.
It is an effort to

men's

expand

not
a

on,

the

market

; This

::.,;

* ;,'7

■7;77

In the

in it¬

come repeatedly been said here that
things; fear; strikes in themselves are not
large if im¬ bearish. It is when they are

components

from all sorts of
and

effect

past few weeks the
an absolute.
At strike situation has beclouded
It has
relative. Its con¬ the market horizoh.

Bullishness

tributing

in a
field where too often passion and
prejudice over-ride judgment and

attain the age

best it is

knowledge

Qne of the things of truth77^7^^
iVV&i:'f.

trend.

self

guided by brok¬

are

considerable.

other will affect the immedi¬

who will deal

women

To Develop Leaders' )n Industrial
■'

mation of

train

averages

effect,
however, is belated in char¬
acter.
It represents the ex¬
plosive factor which make$
prices zoom at one time and
how such a confir¬ plummet
down {at another
time. .v77::7
one
'777' 77 :"7.7 7"
average by the

batable is

unique

institution

the

largely by technical factors,
its

strength in the mar¬
ket during the final days of
last week put both averages
through their old highs. That
is an accomplished fact and
not arguable. But what is de¬

* *

;

The

relationship must take
the place of force. The yes or the
no
from either side of the con¬

Many

until

but
was

buy stocks missed erage opinion, which is guided

advance.

recent

dustrial

our

doubt

buying

new

moved up

Says

economics^ industrial^ ahd; social

off

❖

„

little

into new high ter¬
—
ritory. It isn't that an es¬
tablishment of a new high
=By WALTER WHYTEmeans
very much to the pub¬
New highs point to still high¬
lic.
But as the greater ma¬
er
prices.
Intermediate re¬
jority of actual and potential

between

capital
and labor must scrupulously avoid
putting a burden on the public
too great for it to bear. Excessive

existed in Great Britain and other

than

held

j lie at large is paramount and that
the

that lots of

Walter

:7.7{7~7'777{

2331)

page

There

incalculable.
*

hope play

the

formative stage,

that
they
are
even
This is no labor school where
threatened, that they are seri¬
are entitled to know what is
goFear is a corollary to hope
dogma will be taught, from which
ous.
Having explained the
Jn£<on in the current negotiations;
in stock market transactions.
trained zealots will gp forth. This
-A loan or credit of $5 billion or in^the JStatebf New York; During
reason for this opinion in past
the war we led' the nation in is no management school where Right now it is the fear of in-:
more
from
the
United
States
columns no additional space
students will learn only to think flation
that is bringing in
^ Treasury. does i not fall into the avoiding strikes on the produc¬
need be taken up here. Now
-field a of personal (. government. tion front. We still maintain this of workingmen. and women as thousands of\ new
buyers.' another
There should be no secret under¬ leadership, thanks to the wisdom items on a balance sheet. This is
piece of news comes
But while fear in itself can
standing such as those by which and understanding that business a State, school under the sponsor¬
to the fore—^profits. .As the
attract buyers it can also in¬
and labor " leaders of our;' State ship
the United States agreed to
of our great,
progressive
sup¬
year approaches its end more
port Russia's demand for three have shown. Now, at this school, land-grant university and under crease the number of sellers
and more earning statements
we propose to develop the trained
the direct control of a board of
votes in the United Nations Orto
tremendous 7 proportions.
will be made public, There
ganization, and gave the Soviet leaders who will" krij6w how to trustees selected from all walks
For if hope of profits can at¬
our
industrial and
labor of life—from education, from bus¬
Government control of lower Sak- solve
seems to be considerable con¬
problems, of the f utuTe, 777{7777 iness, from labor, from agricul¬ tract many new 'buyers the
:halin and the Kurile Islands.
fusion about the smallness of
ture and from the professions. 7
.Oner way to avoid this is for the
We know now tliat the negotia¬
change of hope to fear can
profits that many companies
It is a school which denies the
-American and British negotiators tion and debate involved in labor
alien theory that there are classes
are reporting and
to make a progress report to the relations must be based upon a
will con¬
nation.
Continued secrecy knowledge and understanding of in our society and that, they must Cross Co. Preferred
tinue to report for 1945. The
wage war against each other. This
may lead to understandings be¬ the economic process, of the his¬
fact is, however, that many
tween
the;
negotiators
which tory of industrial development, of is a school dedicated to the com¬ Shares
companies are charging off
mon interest of employer and em¬
.would not be acceptable to Con- the effects of
.technological ad¬
/ Offering
of 60,000
shares of; practically everything
.gress or to the American people,
they
vances, and, of course, of the com- ployee and of the whole of the
v> and
result' in
charges of bad plicated inter-relationship of American people. It is dedicated ty% % cumulative convertible pre¬ can think of. If ordinary ac¬
ferred stock
•

which I have been proudest dur¬

ing

three years in Albany is
our
splendid record in the rela¬
tionship between capital and labor

■'/

■

'■

xv''

;irV
V \r'-y
r/:: .£•*■>:v

Dogma Not to Be Taught

■

measurable part.

7'77: >77:77

♦

before

:77:777{77:';

;

Publicly Offered

4faifh and broken promises."

Sees UK

Dragging Feet

■•

^7 prices, costs and wages.

Quid

Quo

tion

under

that

who; do

men

the

moral

any

com¬

not know

Our

whole

the

eco¬

between

depends on
intellectual capacity and the
determination

They want the

conference table.

signed and

industry

future

our

loan

can

production and consumption.1

mercial quid for the financial quo.

sealed

have among

the delicate balance

and

cOnimit

themselves

nomics effect of many- factors in
our
financial
system, of tariffs,
of the myriad types of taxation

which is apparently
consideration, there is,
according to his information, an
Unwillingness of the British to

afford

leaders of labor and

our

In the view of Mr. Jones,
apart
from the dubious quality of Brit¬
ish; promises to repay a loan of
anything like the size and dura¬
now

longer

now, and will talk about
commercial - policy commitments

ity

later.

problems

work

peaceably

out

the

But this capac¬

and

To quote Mr. Jones:

"The British evidently have

not

receded from their original posi¬
a loan with interest
pay¬

tion for

able only if,

and

when

con¬

venient, and at a very low rate.
.They also insist that a part of the
loan, if it can be called a loan,
may be used in reducing the debt
"which rthey owe to their colonies.
-It isiinderetood that the British

and

this

determination

must

solidly based upon knowledge
training. The future leaders

to the concept

that when

gether

harmoniously, then
only then, do they succeed.,
The
here

State

provide

abate the

claims
are

New

the

fevers

the

our

time.

which
■

•

5
■

notice of redemption

The

industrial

future

relations

to the holders of
'•
•

'v7v:';7V

'.L7 7-

both

broad fundamentals that

may'be found.

for

and get the capital which creates

alert

only

' '
to

for

need

community which takes
and

those

i-M

REFUNDING AND IMPROVEMENT MORTGAGE

SERIES B, DUE JULY

6% BONDS,

1, 2047

" ~

.the

leaders of broad vision is the need
a

•'/.? >:

NORTHERN PACIFIC RAILWAY COMPANY

leaders

for

-VVV-'v••CrT-S;''7'

here

Second

We will be

labor and management will learn

only earn more in the long run
by producing more with modern
facilities; that business can exist
jobs only if it makes

counting methods were fol¬

equipment: to

to do the sifting and win¬
nowing by which alone the truth

can

Thej

which rise from

in this field must understand the
men

Nov.

Inc. The stock i lowed I believe
profits would'
was
priced to the public at $10
(Continued on page 2363)
per share..
I

apply¬
ing the tested techniques of study,
research, and analysis to the cru¬
cial social and economic problems
of

made

F. H. Roller & Co.,

language of indus¬

trial relations.

was

will

York

and counter-claims

now

and

Co.

Cross

par)

($10

men un¬

derstand each other and work to¬

informed

interest

NOTICE IS HEREBY GIVEN that Northern Pacific! Railway Company has elected
redeem and pay off on January 1,1946. all of the above-mentioned Refunding and Improve¬

ment Mortgage

6%-Bonds, Series B, at 110% of their principal amount, together with accrued
said date, in accordance with the terms of said bonds and

interest on such principal amount to

which affect us
opinion is often the
arbiter in a labor dispute;
problems

and this school will seek to make'

Borough of Manhattan in The City of NewYork. N.Y., the principal thereof, together with
a premium of 10% of such principal amount; end accrued interest on euch principal amount
to said date. From and after January 1,1946, interest on said bonds.will cease to accrue and-?

have refused to make any conces¬

a good prof¬
piece of our econ¬
omy can be -happy or prosperous
if it attempts to profit at the1 ex-!
pense of the rest. Both sides must

the whole

any coupon

sions with respect to Empire pref¬

learn that the interest of the pub-

formed ;

ford to pay as much for the money

These, then,;,are the great pur¬
to which this school is ded¬
icated. We entrust its destiiny to
a distinguished faculty under the
leadership of a great public serv¬

let them have—if we let
them have any—as it costs us. The

ant who led the way in its crea¬
tion—Dean Irving Ives. I know it

will

that

one

erence, beyond

a general state¬
ment that members of the inter¬

national trade organization which
it

is planned to set up in June
Will undertake reciprocally to act

;ta IOvyer their tariff barriers grad¬
ually when they impede a high
TevCl

international

trade.

made 7to 7 Great

terms that cost the

Britain

American tax¬

anything. There is no rea¬
why Great Britain cannot af¬

payer
son

may

that decision is to be deferred

un¬

British in return should facilitate

til

ad¬

the

June,

1946,

any

loan

vance should be deferred
'whatever

iwhich

agreement

entails * money

so that
is made
from the

JJpited States Government

resumption of normal inter¬

national trade in every way pos¬
As long as blocked-sterling

sible.
areas

remain and the British Em¬

pire

preference policy continues,
be a part of an overall contract. /
this will be impossible.
Congress,
which will have to ratify
^
"Bo far as the contemplated
any
.agreement has been made 'public'? agreement
which
the
Britishby our negotiators; there is noth¬ American negotiators have made,
ing in it that can be recommended should reject any proposed loan

may

.to ?the American taxpayer. . . .
"No loan, credit or advance should

all.

Public

final

community better in¬
about the problems of
both management and labor. 7>
.

poses

receive

support of men
of good will everywhere.
7
I am happy and proud to dedi¬
cate this, ; the
New York State
School

Industrial' and

management and labor, to an ever
higher living standard for all our

people, and to the inner security

which lacks the elements of good

n* +ht>

only to free

this

one

appears

to do."

conl which
men.;...

can come
,

for interest appertaining to any
void;
•

become and be null and

such bond and maturing after said date will
.

;•

■

•

Coupon bonds should be presented and surrendered for payment and redemption as.
aforesaid with all coupons psorable July 1,1946, and thereafter attached. Coupons due January
1,1946, may be detached and.presented for payment in the usual manner. Interest due January'
l! 1946, on fully registered bonds will be payable only upon surrender-of such bonds for re-r
demption. Registered bonds, in cases where payment to anyone other than the registered owner
is desired, must be accompanied by proper1instruments of assignment and transfer.
.
;

:A'

NORTHERN PACIFIC RAILWAY COMPANY.

By
•

New York,

A. M.

'
.

Y., September 26,1945

Gottschald,.
.

Secretary

Labor

Relations, to the increased pro¬
ductivity of our economic system,
to
peaceable relations between

business

the

William S. Tod. Trustees, and tnat on January Jt, Ji»w, mere win oecomeena ue uue #uu.
payable upon each of said bonds at the office of J. P.:Morgan & Co. Incorporated, in the.

OFFER OF PREPAYMENT
Holders desiring to receive immediate payment

of the full redemption price

including-

interest to January 1, 1946, may do so upon presentation and surrender of said bonds at the.
office of J. P. Morgan & Co. Incorporated, in the Borough of Manhattan in The City of New -

York, with the January 1,1946, and eubsequent coupons

attached..

Thursday," November 15, 1945

THE COMMERCIAL & FINANCIAL CHRONICLE

2362

lished which may later have fts
repercussions in the sugar field.;

possibly a lit¬ substantially the incentive pay¬
f'' ■f ■r•/:) ments to insure, next year in¬
Again, the United Kingdom and creased production of sugar beets
Canada, as well as other countries, in Continental United States and
will be claimants for part of the sugarcane in Louisiana, Florida
*
available sugar supply.
Several and our insular areas.
And finally, on the sunshiny
hundreds of thousands of tons of :
ceived last year, or

tle more.

(Continued from page 2324)
in

family

modity

try¬

world

mains to be seen what will be de¬

ing to recover from the wounds of
war.
Victim
of
war-sundered

submarine sinkings,
destroyed plant and field facili¬
ties,
manpower
shortages ; and
strikes; victim, also, in the earlier

•

cided

years, of the emphasis placed
governmental edict on more
favored crops, and, in many cases,

war

planning,

Government

poor

from a supply standpoint,
probably reached the depths
of its misfortune. That state, how¬
sugar,

has

has its compensations. Mat¬
hardly get worse; in all
likelihood they will get better. In
ever,

ters

can

short,

probably witnessing
point right now.

we are

the turning

However, the climb back to

ade¬

quate sugar supplies for the United
States and for the world generally
will be slow and
not be

It will
of

difficult.

matter of months, but

Sugar, the first food commodity on the ration list, will
probably be the last off. But from
now on, sugar should progress step

.years.
*

by step up the percentage ladder
until that happy day when a ra¬
tion check is as obsolete as the
horse-car.

It would seem,
to

all of

over

will

that with profit

here, we might look

briefly these factors which
bear on sugar during 1946.

First, supplies; second, price, arid
third, rationing, both as to quan¬
,

tity and duration,
Prospective Sugar Supplies
In, order to give you a perspec¬
tive of just how this question of
supplies shapes up for the year
1946,* the following figures are
what we may reasonably expect
to be available in 1946 from the

tity of sugar which may be per¬
to enter this country free

undoubtedly

the total supply will

shipped abroad during 1946,
through allotments made by the
CCC. Another claimant for a part
be

preferential tariff,
the duration of such preferential
treatment
once
the' Philippines
achieve their independence next
July 4th, the credits ox grantsof duty, or at a

side

our

have

sugar

the

fact

of sugar it seems an al¬
foregone conclusion that this

most

control will have to be maintaingd

supply pattern,
that although

throughout all the

year

1946. Even

31, 1945 will be
cov¬
abnormally -low. there are no ering availabie supplies will not
of this sugar will be the United
longer large balances of sugar rat meet the minimum estimated de¬
Nations Relief and Rehabilitation tion evidence backed, up in banks mands were a free market to ex¬
Administration. Their takings, to hover as a sword of Damocles ist in the acquisition of sugar,' $n
in-aid to be extended to the new
while small in 1945, will undoubt¬ over year-end stocks. These bal¬ fact, it seems more than .probable
Philippine Government by this
that Government price controls
ances, in the main, were converted
edly be larger this coming year.
country, etc. Certainly, most firms
into
physical sugar, during the may have to be carried on well
Another
shadow
that
hovers
controlling sugar mills in the Phil¬
into 1947 to avoid runaway prices
third quarter of this year. V They
over our, potential supply is the
ippines, in the interest of their
nq longer constitute a potential onsugar.
,■•/,;//.A,A A ;AA:A/A
ever-present manpower problem
stockholders,, wjll
not commit that Confronts the domestic beet drain on supplies.
The third and last general topic
'
V
themselves to additional heavy
Summing up the sunshine and on sugar, in which all, classes of
processors.
This year large num¬
expenditures necessary for sub¬
siigisu/users ^reiihteres^d^is: that
bers of war prisoners were used shadow, balance sheet it wouto ap¬
stantial
sugar
production
until
of the probable Government ra¬
to achieve the final sugar beet pear, to us that, foreign withdraw¬
our
Government's program has
als from; pur potential supply of tioning program for 1946 and the
harvest by both the beet compa¬
been spread on the statute books.
nies of the west and the east. Most 8,200,000 tons should be substan¬ probable duration of rationing it¬
As,to Java, much public specu¬
self. A. Any, attempt to forecast the
of this type of manpower will be tially less next year than this year,
lation
and
hope have centered
in;fact/ with[g^<li^tune)m;th^ Government's rationing program
around the unexpected discovery lacking next year, and a real prob¬
lem faces the beet processors in way of weather ancf with restraint .J^^gar^as- we.:>swihg into
of a sugar stockpile in that Island
new
year
is naturally purely -a
the matter of a sufficient labor onrthe part of the. Government on
amounting to 1,600,000 tons. Sec¬
foreign commitments, it would ap¬ matter of guesswork. If one is to
retary of Agriculture Anderson, supply to assure, production of the peal that
JohhlCitiz^nf ;5the
size crop we have estimated..
according to press reports last
United States.' should*; have ;some abiltttesAareA4balA
A final shadowy point, wjiich
week, has again .confirmed the
800,000 to '■ I,0p0,000 tons; more; and industrial • rations on sugar
existence of this Sugar bonanza. must be borne in mind in trying
will in all likelihood remain the
sugar to eat and drink in 1946,
Here, again, however, you have to figure out just how much the than 1945.
sahie ;du;toquarterAirf
/
citizens of this country will bene¬
an insular area prostrated as a re¬
1946 as the last'quarter: of, 1945/
/
Sugar£rk;es
;
sult of World War II.
Further¬ fit during the coming 12 months
Now as to price, it is still a liThe/QPA in vits rafioning^
from the anticipated sugar supply,
more, an internal war is going on
gram Ahas/attempted to ; be a con¬
in Java as the Indonesians at¬ lies in the possibility that govern¬ ipoot; question; whether the Gov4
servative. This statem^tus; made
tempt to break loose completely mental agencies concerned with ernment . wiU ;seeVfit to raise the;
despite the brickbats thrown in its
from the type of control exercised sugar will go
on
a
stockpiling ceiling on refined sugar as we be¬
direction over the free issuance
by the Dutch. Government in pre¬ spree. After having been harried gin to use new crop raws after
of, home canning- certificates dur¬
war years.
Entirely apart from by acute shortages these many Jan. 1st. It is no secret that sugar;
ing 1944, a" development which ap¬
these tragically upset conditions months past, it is not unreasonable both cane and beet, in this country
parently was brought about .by
in this Netherlands' possession in to feel that there will be tempta¬ has been heavily subsidized by
several i contributing - factors..
y Jt
far eastern waters, there are many tion on their part to build up re¬ the CCC; in point of fact, Uhclei
would seem that a conservative
practical problems of finance and serve stocks. In other words, the Sam has subsidized sugar with a
It is estimated that viewpoint on sugar rationing will
distribution which will have to be pendulum might swing from one, vengeance.
the.'total subsidies of all types paid probably appeal ^ strongly to; the
worked out before one knows extreme to the other.
OPA until additional information
out during 1945 on sugar alone
whither this sugar will go and at
Despite the foregoing, there are
has been, developed as to the-akfcr
will amount to upwards of 100
what price.. Presumably it is. still
counterbalancing
points on the
tual size of the new sugar
crops
million dollars.
>
the property of the Dutch; pre¬
optimistic side of this
stocks

the most optimistic estimate

Dec.

•

sunshine

The CCC, after purchasing the
they will set the price pattern.
First and foremost of
Cuban crop in 1942, 1943 and 1944
for it, and presumably they will these is the fact that the
Army is
at
$2.65 per 10Q pounds,. were
have a voice in its ultimate dis¬
given in short tons, raw value.:
tapering off its buying and-begin¬
tribution.
There. will be many ning to live, iri some measure; on forced to pay $3.16 for the 1945
Latest estimates indicate a total
crop' and they have already bidj
claimants for it. All the pre-war Jts
sugar stocks.
Certain of the.
Cuban raw. sugar crop of approxi¬
$3.671/2 for the ACuban 1946 pro-;
mately 4;7OO;0OO tons." Puerto Rico purchasers of Java sugar, and we. empty bags and containers in the duction.;
The CCC, having ab¬
were
not; one, will undoubtedly hands of. refiners, originally des¬
is expected to produce about 1,sorbed the 1945 increase in price,;
000,000 tons, and Hawaii, 900,000 push the merits of their claims. tined for Army use, are now being
What quantities from this Javan
may find the additional increase
tons.
Domestic beet sugar crops,
prepared for resale under the
indicated for 1946 too much, fori
treasure trove may come to rest
Army's renegotiation authority.
figuring the; carryover from 1945,
them to swallow.
Based upon
and where, among the various, na¬
Furthermore, demobilization of
plus the amount to be distributed
published statements by high of¬
from the 1946 harvest, should be tions ravenously hungry fo? sugar, members of our armed, forces is
ficials, it is the. avowed intention
may well serve today as one of
proceeding rapidly. According to
"good for another 1,400,000- tons.
of the Government to reduce or.
the world's outstanding; guessing
press reports, demobilization will
Florida and Louisiana) combined
eliminate fpod subsidies, Wherever;
contests,
r
) ; A// P A
:
reach a peak of some 700,000 men
should
contribute' about -300,000

customarily supply
the United States; All figures are
which

areas

price

control

such matters as the quan¬

mitted

trade routes,

Duration of Price Control;
w//

•As regards the duration of

the * extent, to Twhicb' the ^ur-r
rent ration figures, both consumer

and

sumably

and. industrial, have evened,
outgo with sugar stocks? and
supplies^
.
a.Ay.
sugar

:
Despite1 the ' likelihood of rthe;
OPA's-maintaining a-conservatiye
policy in rationing early next year
there is at least -some ground:ifpr
the thought that if one takes l ap
optimistic view of this question an

increase of
be

well
as

some

16%

in the in¬

users' 'allotments

dustrial

considered

by the

might

Oi*A

start the new year, accomy

■

Odds

tons.

and

from

ends

the

Virgin Islands and full duty coun¬
tries, principally in the Caribbean
might
50,000 tons.

contribute

area,

another

very lucky, we
per month in December and Janu¬
of this sugar.;
At; ary, and by July 1st next year,
however, it seems some 8,000,000 men and women or
safer not to count upon it as any more
from
the
Army;
Navy,
part of our potential supply for Marine Corps and Coast
Guard,
we

get

may

the

are

very,

-be deducted
that

will

total of 450,000 tons

probably

consumed

locally in Cuba, Puerto Rico and
Hawaii, leaving a net balance of
8,200,000 tons.
Please remember
this figure of 8,200,000 tons for we
shall revert to it later.

;

No provision in this supply pic¬
ture has been made for arrivals
from the

Philippines

Java.

almost certain that little

.seems

no sugar may be expected in 1946
from the Philippines where much

devastation has been wrought both
in the mills
and in
the fields.

Armed

guerillas still roam the
countryside in all
Philippine

coming year.
Probably the
best that cap be said is that its
lighten somewhat the burden

the

production—in fact, just the
opposite.
In addition, latest re¬
ports indicate a decided tension

in these Islands between the field

Let

A
to

seems

sort

be in progress.

the

of dollars for

repair
such

the

properties, will

sugar

lions

bulk

of
time

Philippine

pour

the

in mil¬

necessary

their
as

properties until
the United States

Government's program for the re¬
habilitation of these Islands has
been

definitely decided

•enacted

into

law.

upon

This

has

yet been accomplished. It still

and
not
re¬

armed forces
approximated
pounds, per capita annually,
as civilians, based upon fig¬

ures

return to that round

figure of 8,200,000 tons which

for this year, their consump¬

tion will be reduced to around 78

In other words, the quan¬
estimated will be available for thej
tity of sugar allotted to this seg¬
United
States in
1946, granted ment of our population will be cut
pounds.

Providence smiles upon us in the
way of weather and granted the
human factors necessary for pro¬
duction

achieve

and

mixed pattern
Of sunshine and shadow,.
a

We might dwell upon
owy or

now

pessimistic side first. Cuba

the Cubans were allocated 150,000
tons for free export. Their desire
to augment this

quantity is read¬
in
light of

understandable
desire

retain

kets

among our
bors and also in

that

Peruvian

and

refined

their

mar¬

southern neigh¬
light of the fact

raw

cently sold at 8

sugar

cents

10 Vz

has

re¬

per pound

cents

per

pound.

There is a strong possi¬
bility this issue may be compro¬
mised; Cuba may receive again for
free

export

that

there

will

is
no

from the. United States
from Cuba. This year it looks
sugar,

shores-

fighting

kets.^ The Commodity Credit Cor¬

their

fact

about

or,
as

though approximately 300,0.06 tons
of refined sugar, for Lend-Lease
the shad¬ and. other exports will leave the

for 300,000 long
tons of this sugar to take care of
her pre-war Latin American mar¬

ily

the

harmony Lend-Lease shipments next, year
Just what quan¬ of sugar, or products
containing

efficiency.
tity will be available out of this
figure for the civilians of the
United States is

almost exactly in half.
Another optimistic sidelight

one

On top of all this it is
scarcely
likely
that
those > firms,
both
United States and foreign, who
own

Hemisphere stocks.

us now

poration, in its negotiations for the
purchase of the coming Cuban
on the
crop, wants to allow only 50,000
agrarian revolt tons for
this purpose.
Last year

workers and small farmers
hand and large landowners
other.

our

Government will face in aiding, 155
other
nations with sugar from but

very

sugar

mili¬

tary to civilian life.
Their sugar
consumption while members of

sugar-producing

areas.
Life
is
unsettled there.
Such con¬
ditions certainly do not make for

will have have passed from

over-all distribution may serve to

Western

some

moment,

the

v':,':,These figures add up to a total
of 8,650,000 tons from which must

feasible*.

what

she

re¬

States, and

Continental
a.

tons will leave Cuba....
!

There

United

little oyer .200,000
-

lack

■

«■

therefore, that
Office
Price Administration will raise
is

possible,

sometime after. J an. 1st the
of

the ceiling on refined sugar any¬
where from 5Q# to $1
per
100

flour,

reduce

sugar, /

the

have

the credit side of
for

siveness

who,

ever

'/.

';.vv•"•••. •/.

also

uation

outflow

our

year

supply sit¬
the aggres¬

Secretary Anderson
since he took office on

The, housewife

and: In
desirotis
augmented

is now,

the future will be, keenly

•

refinery in New York City cost
$5.35 per 100 pounds less the cus¬
tomary cash discount. On Oct. 15,
1945 the price for a
bag of sugar
at

the

$5.50.

New

York

refinery was
During this same four-year

period a bushel of wheat on the
farm advanced from 88!£# to $1.51;

their production somewhat, thiik
cutting costs and increasing em¬

ployment, both very desirable facr
tors in the conversion from War
to peace.

This idea of/a

10%

increase^

industrial allotments for the first

quarter of next year is not quiff*
corn from 70# to $1.13;
so daring as it might sound, even
pound of cotton from 15.3# to-, though yeaf-erid stocks "will '-:>bf»
22.3#, and a bushel of potatoes quite low. / Sugars withdrawn by
frbm;- 68;.6#. to $1.26.> 'Certainlyr it manufacturers from ; sugar sup¬
v

bushel of

/A/-//

factor

followed a little
later by some increase in the
housewife's ration. •
; 5»i,
tor

of having
access
to
pounds in order to shift part of. supplies of manufactured products
the subsidy burden from the Gov¬ containing sugar. A small increase
ernment and taxpayers to the ulti¬ in
the
industrial
users'
ration,
mate consumer.
This is by no therefore, will not annoy her a bit.
Here we have a neatly dovetailed
means a certainty, but it is. a dis¬
tinct possibility. : situation, which if recognized by
In very few commodities has the OPA, can kill two birds with
the hold-the-line policy been more one stone, i.e., give the housewife
tightly held than on sugar.
Let a better supply of beverages,
us look at the record.
On Aug. 14, baked
goods,
confections,
ice
1941, before price ceilings were cream, etc., and at the same time
inaugurated, a bag of sugar at the allow manufacturers to step-up

ship¬
ping tpnnage, nor will> there be should
m jnd of anyone familiar with com-:
next year. We have been blessed
with huge cereal crops of wheat paratiye pre-war and war com-,
modity prices to find that a; mod¬
and corn, and it is to.be hoped
est advance might be authorized
that tbe Government will,, utilize
its vast merchant tonnage, wherr by the Government in sugar • in
order to follow through on their
ever possible, to aid other nations
policy of cutting down subsidies,
with these crops, particularly in
b". One of the opening guns in the
the
form, of whole wheat and
efforts of the Government to get
now

panied

away

found
butter

from subsidization is to be
in the elimination oL the
rollback

which took place in
ter

prices

per

pound

October; But¬

immediately

advanced

a
corresponding amount as a re¬
July 1st, has been doing an out¬
standing job in stimulating pro¬ sult of this subsidy withdrawal.
duction.
He has already raised A precedent here has been estab¬

plied; will

not be \takeri out * in

lump sum right at the beginr

one

year, but deliveries,
the. OPA".30-day. inventory

ning of
under

the

regulation, will be spread oiit over
the quarter.
Therefore, refiners
and beet processors will not be
swamped with too much business
in any isingle month.
Later, as
the weeks of the new.year roll
on, sugar
increase.
;

When

supplies should steadily

reach the end of the

of next year and facq
probable sugar allotments for

first quarter
the

quarter usage very definite
may well
be expected
in both the household and indus¬

second

increases

trial

rations.' In the

case

of aver-

//':/>

162

Volume
•&*.

I -V

'/;// 'Tvi lr i

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438

industrial users such ration
reach 70 to 75% of

age

with the
current 50%.
Again, based upon
our estimated supply picture for
next year, it would seem that furt thef increases in all types of sugar
1941 usage as compared

allowances

may

pected in the third quarter.

ex¬
•

Rationing Outlook

Having come this far along the
pathway of surmise a possibility
"exists if our present optimistic

of/ 1946

forecast

■

production

; borne out that the household con¬
sumer may be freed of all sugar
/' Rationing by the fourth quarter of
the coming year after the canning
4 season has largely ended.? In the
/qase of industrial users, however,
; rationing or some other limitation
the acquisition and use of sugar

is most likely to continufe through//hut; the? entirb year ;bf |l 94ft and
/possibly some time into 1947./
;
sum
up,then, we are witJ nessing the first signs of a? break
ih

■

•7

the

skies

gloomy

short

imgatr supply," - Prospects'for/pro-^
duction/iathis countryand the
insular

which supply

areas

gjreatly

improved

t/feugrirs

compared

1945 picture.

with the

us are

Even

now,

months have found

all-absorb-

creeping
over the Rockies and filtering on¬
to the great plains east of the Con^tihentall pivide..
Western k beet
sugar
is flowing
into
Indiana
there,

market

are

Arid Ohio, permitting a better sup¬

ply of spgar for East Coast buyers
than otherwise would be the case.
New Orleans refiners, after having
•been, closed :throughout most -of
*

and

is to

valuable

speculator

mariner.

They are
based upon the general principle
that the technical position of the
market or of any individual se¬
curity is the one important factor
affecting price and trend. Experi¬
ence has proved
on innumerable
occasions, and without exception,
that "good news" cannot cause a
market which is technically weak
to advance, and that "bad news"
compass

does not break

market which is

technically strong.
Generally speaking,

in the market

7' <
advance
'

individual

security can be divided into three
phases, namely (1) Accumulation,
(2) Uptrend, and (3) Distribution.
When these

peated

three phases

several

times,

re¬

are

usually

least

three, at progressively high¬
prices/we have what is com¬

monly known as a bull market.
The. reverse of these phases is
generally known

as a

bear market..

Charts distinctly show the above
three phases with amazing clarity.
The

ideal time to purchase a

se¬

refined on thh^ Pacific curity is ;at
which^v for/many weary accumulation

ICpast,
ipg

are

investor

the

thfey

October;

receiving/A
steady volume of Louisiana raws.
'The Philadelphia refining indus¬
try which was two-thirds shut
'down by a- seven" weeks strike* is
ifow again back: in operation. Yes,
the future for sugar supplies is
looking/up and OPA. is doing a
now

are

ther, time when the
phase
has
been
completed and the uptrend phase
has just started.
The ideal time
to

sell this

security is at the be¬

hot

would
level

now

to present a few
histories. For almost

prior

last

fined

within

tween 42 arid 45 and

area be¬
fraction. It

had

registered? 11 tops over a pe¬
riod of several months at or frac¬
tionally above 45.
vious

that

the stock
rection

that

would

move

breaking out of this narrow
trading area. I accordingly advised
the purchase of Electric Auto-Lite
at 46- stop/ For; the. short-term
trader, a five-point profit became
available within

week after the

reached; 46.

months/holder,

For

the; six

now

are

The

re¬

from / Electric

Crown//Cork;

L i t

switch
into

Dehfield t Delafield S
Delafield

Delafield, 14 Wall
St., New York City, members of
the New York Stock Exchange,
announce

that Anson M. Beard has
from

returned

military

service

has joined the firm's invest¬
ment advisory staff.
Mr. Beard
and

thereupon

was

obvious

recommendation. And so
I could go on citing dozens of sim¬
ilar ease /histories; some: perhaps

was

with

:/ LOS

ANGELES, CALIF.

Theron

Martin

has

buying
price
range. By the time it reached
you,
s toe ksf had
already
started to move up.
Result
stocks

out

that

was

three

new

suggested only one was

available.

With

market

the

continuing to show strength
I see little point in chasing
them.

I still feel that buy*
ing should be done on reac¬
tions, not rallies.
Bo if you
haven't gotten them up ta
now, better let well enough
■,'/■ :/'/

//,/;

?//■,■•;

(Special to Th* Financial Chronicle)-

were

the

alone.

Staff of Fewel & Co.
'

purchase

recommended

within

T. A. Martin Is With

Cork and Seal.

column advised the

is not stocks

present advance

time when the six months holding
period expired, a somewhat simi¬
lar chart picture had developed in

»h //; ♦

./',' '',

—

become

associated with Fewel & Co., 453
South Spring St., members of the

■

this writing you
following: Allied

have

....-f.

'• ■.-/

the

Mills at 34

(available Sat¬

urday when it sold down to
/
3414).
Stop remains at 33.
A. M. Byers at
19 -with a;
HI
an officer of C. H.
Hatch & Co.
stop at 2114; current price*
1 What r Future Trend is Indicated
and R. C. Wade & Co. ; : ^
/
about 33; and finally, Paraf
the / charts indicate
mount at 3014, bought some
now? For the longer term, I can Electric " and Wool worth, * which
Bnvision-very much higher prices. have not shared in the bull mar¬ time ago. Latter still carries*
According to my interpretation, ket for the past two months. a stop At 43: It was also ad¬
-

good,, many

very

going to give you a
short synopsis of what the charts
hare demonstrated to me during:
the past few years. I see in this* we
^ill only on the second
audience quite- few. people whri leg- ofi^hC/p^esent bull market. I
have been receiving ray weekly- cannot -recall - any
bull market
market letters for more -than ten
am

not

are

formerly 7 associated
Hay den, Stone & Co.

Crown

note of

past events, they of new stocks. At the time
forecasters of the future. that was written all of the

17-point profit
accrued at; the expiration of the
six months period.
Just at the
a

sounding

stock

markets
flectors

It became ob¬

whatever direction the stock took

After

caution for weeks, last week's

important move in
impending. The di¬

was

will be better.

outstanding as many
people believe they should be.
as

con¬

trading

(Continued from page 2361)
be

* February,

Electric Auto-Lite had been

want

case

year

ginning of the period of distribu¬ not quite s so
tion.
A proper
analysis of the much abetter.
charts enables *>ne to pick these
spots clearly and easily.,

Interpreting the Recent Trend-

through that
first experiencing

without

recenta

advance

intermediate correction,

based on 1945 earnings.
They
point to 1946 income, at least
the first quarter of 1946.
To
that extent they say figures

Walter Wbyte Says—

(Continued from page 2322)
preted,

2363

Tomorrow's Markets

What Do the Ckaits Foiecast?

might" well

7 ration

' "Vl^i l',; I //'/;

Los

Angeles Stock Exchange. Mr.
Martin was formerly with R. D.
Bayly & Co. In the past he was

When Board Rooms become over¬

crowded and bullishness becomes

Lockheed

fhat

vised

^ehatis/^andifrom every economic
iadgle^suchtas tire supply of money,
the ?p^tlnp/deriiattd; for. goods of

at 3114-3214, -stop
wealth and Southern acts better 30; - and Western Union be/'
than General Motors, arid particu¬ tween 5114 and 5214 with
aj
larly when the market is so close
to an eight-year top, I believe stop at 50. Neither of thelastr
were available, by /tha:
that the time for caution and dis¬ two

lali ^kinds/fhe favorable tax posi-

crimination has arrived. Reactions

time the columil readhed you*

inflation which is evident in most

days** later;
om
charts indicated

always corrie when least expected
by trie public, and, the/ market
which in many instances has been
so thin on the Upside could prove
equally thin on the downside for
at least several points. I had very
little company when, guided by
the charts, I turned emphatically
and rampantly bullish on Aug.
20th, with the averages at 163.

ernment controls has been a

market culminated in April !942, tipnv'to/riame just a few,6 we can
with the averages around 93: Five •obnbiiida that the averages could

years.

You

can

be assured, there-'

fare, that 1- shall stick cid^eiy to
/ gjaod job in spreading these sup-. the' facts and forego what might
1 plies as they become available: • *; .be a natural
impulse to. exagger¬
??dtAs to price we have; a situation ate-As you' all know, a long bear
/

i^bere^sugar- urider its tight Gov¬
negli¬
gible participant in the creeping
the

the United
buys.
However,
since past experience teaches us
States
that

things

that

citizen

even

mild inflation in

ly 'ihtegra ted
later

catches

everything

close¬

society sooner of
with practically

would

well

in
mind the/possibility of
joining this inflation parade.
Ji certainly warrants keeping a
Weather eye to windward for it.
b'7 As to sugar rationing, it will, in
alt v probability,
be
with
us
throughout most of next year, and.
bear

sugar

lrir< the

cettain

case

classes

alL of, .next- year;
Nevertheless, the skies are begin-ning to clear and very definite
increases in the; ration allowances
sugar-

users,

;

in prospect for all of us dur¬
ing the second, third and fourth
quarters of 1946.
With a little
are

spice of daring

ihe parfc of OPA

Jhtown in foy good
.even; possible

measure^ it is

that industrial users

and housewivesmay be able to se¬
modest increase in their ,ra-

cure a

tions

come

ye4r. 1 Sugar is

into 3 the

even now

new

turning

Jhe/corner—let us therefore take
the optimistic approach and make
the>most of it.».

-ri} tf

stated

^ :N0RFOLK, V VA. — Announce¬
ttf&: Virginia

Securities Company

f^succeed Aycoek & Company*
Rpyster

Building.

the firm

are

Charles

L. Ivey.

'Theodore

Principals

Sullivan

Henry G. Isaacs and
*

M. Rust and William

will

associated

With the firm in the sales depart¬
ment.

•••

y:/7

had

,br'1947;/;The-

near

mention/this^ tor You/ not by /way

termediate reaction

tion of

self-praise, but in all humility
and modesty in pointing out what
were the chart indications at that

term* market

the forma*

might add that in Janu¬
ary
1942 I had already written
"The Coming Boom in Railroad
Securities," all based upon chart

long trading shelf before
penetration of the
1937 highs.
Frankly, the averages are already
about three points higher than I
had expected them to reach at
this time.
It would appear to me
to be good: market strategy to cut

work.7 What

and

when

Pessimism then was the

Common¬ bought

order of

a week the
eight points,
and hasn't stopped even to take a
good deep breath since. This does

the day.

Yet within

market had advanced

not

mean

that indiscriminate sell¬

suggest, however, that buy kept in Until advice
to the contrary appears here.
I suspect you'll get them be¬
orders be

fore this week is over.

railroad

securities

have-done since that time is
a

matter of

history;

now

[The vietvs

market

lime

'•
on

selling

stated

that

the

area

be regarded as

area.

1943

decline

was

These should be held and

moves.

that

highs are penetrated appears to
me sufficiently great to warrant
the procedure which I have just
outlined and which would be, in
my

Opinion, in the form of an in¬
policy. I recently char¬

surance

acterized

the

last

few

weeks

the advance

level, it

I call

as having been what
lop-sided. By that I meant,
of an Indicated supply area, in and still mean, that there have
which the market had been con¬ been far too many good stocks
fined
from- September
1939 to such as American Can, duPont,
May 1946, And so strong was the General
Electric,
International
picture of that supply area that it Harvester,; International Nickel,
was
obvious
that
the
market Union
Carbide,.
Westinghouse

the

are

presented at;
f

only.}

LAMBORN & CO.

periods of weak¬
This
time for cool heads and steady

added to during
ness

is a

This is

valor.

This is

pairt

time when I,

refuse to be swayed and
engulfed by the emotionalism of
for one,

not be

attitude may

This

moment.

the

STREET

NEW TORK 5, N. Y.

time when dis¬

cretion will prove the better
of

99 WALL

in the general market.

nerves.

SUGAR
/.

•

J."'.

Exports—Imports'—Futures

popular, but it is sincere,

and I believe that it is sound.

prgby 4-2727

Pacific Coast

lower part

ing here and

when the market reached the 145

reached

They

ing should be indulged in. There
are many stocks which have re¬
cently commenced major upward

repurchasing after
the
1937 tops
shall have been
penetrated.
On the other hand,
the possibility of a substantial re¬
action developing before the 1937

The
averages
reached about 146%. Thereafter,
an
intermediate decline brought
the averages back to 129 by No¬
vember; when the trend, accord¬
ing to the charts, again turned up¬
ward.
The reason for the JulyNovember

penetrates the
1937 , highs
ado/ which I am
much inclined to doubt, very
little will have been lost by sell¬
without further

very

145 should

those of thm

coincide .with

Chronicle.

those of the author

If the mar¬

until

early in July
1943, when, with the averages at
144, the charts indicated the ap¬
proach of an important resistance
and

niitments at this level.

tMtr

expressed

article do not necessarily at anjf

ket

The charts remained bullish
the

More next Thursday.
;
—Walter Whytt

down rather than to add to com-

time.

ment is made* of the formation of

market

completed. By the middle of nutlook", however, is not so dis¬
May, wrth-the: averages still below tinct, and in my opinion, not so
100, I was able to state that when bullish-*as;the recent action of the
the averages/would cross 100 a market might tend to indicate.
In
dynapiic advance would be indi¬ fact, for ma^y reasons, I am in¬
cated/and for- the first time I clined to the position that the
presented a long list of stocks for market must be regarded for the
purchase.
In looking over that time being as on the defensive.
list preparatory to today's talk, I This market has not experiericed
found that
I
then had
recom¬
anything in the nature of a sub¬
mended
only high grade peace stantial correction in over two
stocks. Please bear in mind that years—the longest period of sus¬
this was only four months after tained uptrend since the averages
Pearl Harbor. By July 14th, and
were
inaugurated in 1896. Fur¬
the averages then were only 107, thermore,
we
are : closely
ap¬
I stated
unequivocably that we proaching the 1937 highs of 195.59
for the Industrials and 65.08 for
were
in the primary phase of a
long-term
bull
market
which the Rails. Normal market proce¬
would last for several years,- I dure would call for either an in¬

above

Company Is Formed

bear

been

level

Virginia Securities

that the

May; 4th
the >rcath|lji#v220^250 level next year
to me/ and
audyperhaps the 275 level in 1946

rampant,

/777:/77777://7

Established

1856

Securities;

H. Hentz & Co.
Orders Executed on
Members.

Pacific Coast Exchanges

New

York

New

York

New

■

Stock

Exchange

Curb

Exchange

Cotton

Exchange

Excha nge.
Inc.
Gh-Ioa^go -Board
of (Trade
Commodity

Schwabacher & Co.
'

New

y;//'Members
;/

New York Stock Exchange
New York Curb Exchange (Associate)

Orleans Cotton

Exchange

And other Exchanges

Chicago Board of Trade
New

14 Wall Street

COrtlandt 7-4150

York 5, N. Y.

Teletype NY 1-928

N. Y, Cotton Exchange
NEW YORK 4,

Bldg.

N. Y.

Private Wires to Principal Offices
San Francisco —Santa

Monterey

—-

Oakland
Fresno

:—

Barbara

Sacramento

CHICAGO

PETROIT

PITTSBURGH

GENEVA. SWITZERLAND

7 7

& FINANCIAL

THE COMMERCIAL

2364

put out their hundred-year bonds
at 3%% and less. So sure was the
whole investment world that there

Low Interest Rates and Public Welfare
I

in
"The trouble, Tom,

(Continued from first page)
'
of modern business if I hadn't had
days of relationship to
angle now, law
touch us busi¬
and especially those of

nessmen

mine

Way, your business and
very much alike.
Also

are

alike in that we

we are

'')*> J

I'm

that the modern method of financ¬

days to look
'-z

The Investor

tomed to the Diesel

the

Club that not

Chicago Bond

The fellow
investor.

not

You Jcnow how

up.

the

rate

went to

4»/2% and 5% and higher.
You also know how in 1920 the

price of commodities was sure to
go up and up, you know how in
1928 and
1929 prices of stocks
could only go higher, you know
how

railroads

the

1938

were

all washed up.

The

history of human affairs,

world

merely

the

financial

the

economic

and

particularly, has a way of
moving in cycles. When everyone
thinks that

Suffers

suffers

thereafter

who suffers is the

because of lower yield at

gobbled

repre¬

senting the borrower,

think there has
been a little bit of trimming.
Now, with a little less emphasis,
a
little less sureness, may I tell

were

devel¬

corporate needs has
you into specialists

for

much

not

You

suffers, most from it.

mathematics,

trend is down and
to protect the one

one

protection,, But you must admit
ing

would be nothing better that they

soon

at; the

that

note

investment bankers used to serve

oped

while

and

really get accus¬
engine, we are
told that it may be replaced by
the steam turbine; and before we
Before

the borrower and protect the In¬
vestor.
Even we enjoyed your

program;

Well, the water got pretty high

long term; investments and have
look to the future. And it is a

to the future.

3%.

under

deal with

difficult thing these

announced

Come hell or high
water, the
Equitable wouldn't buy a cor¬
porate bond with a maturity of
more
than 20 years at a yield

In that

who

the
bankers,

York. investment

and

people's

other

care

these is no

Then I talked last spring to

New

who, like myself, pretty much
confine our business activities to
taking

have

;

Attitude

The Equitable's Buying

money,

-'/.'

Civil

Retirement Fund?

Service

moment, the

At every

Government

and

fall!"

did

its 4% bonds to its own

sues

self-defense,
was that the

meekly

heavens

those early
the law.

said

Thursday, November 15, 194£

CHRONICLE

condition

now

exist¬

ing will last forever, it is almost
ready to change. / PyMu

mo¬

We didn't buy those pub¬
we had satisfied

ourselves

that

the

then

legislation, including
sentence
provision,"
seriously

affect

pending

the

"death

would

not

the

underlying
generating and distributing pow¬
er
and
light
companies,
irre¬
spective of what that legislation
might do to the securities of the
parent or holding companies. We
didn't buy those railroad
bonds
until we analyzed the probabil¬
ities with respect to whether the
courts would sustain the priority'
of the underlying bonds as against
the second, third, or later liensHaving made up our minds that
this first lien would

be safe

with

the courts, we made up our minds
also that heavy
industry would

revive, and with it railroad earn*ings. Of course we didn't know-

Following Mass Judgment

ment, but he suffers also if and

search.

lic utilities until

buying these successive
yields?
lectors who' thought there were
I suppose the life insurance com¬
never going to be any more is¬
sues.
The customers, in a panic, panies own about 60% of all the
reach for what is offered like the public utility bonds outstanding;
ladies at a bargain counter. Once and I suppose twelve or fifteen
in
a
while, even the staid old institutional c u st omers h a ye

Chairman has said, I there was going to be a war, but /
when
the
interest trend turns.
did spend my early days in, Phila* irt/jadditipn to being a? bit/ of at*
The investor doesn't really care
;delphia> ond,-during, those days I poet/ to be successful, in "investor
very much what's the cause of his
ment, you must also have a little
came to admire both the edibility
loss if he suffers a loss, and be¬
and other qualities of the stur¬ bit of luck.
Y
lieve you me, he will suffer a loss
geon, a fish that enjoys the repu¬
if on his purchase the yield is
Insurance Companies/Not Limited:
of swimming upstream ! r / to Trustee Investments YvV
around 2%%, and he finds him¬ diation
when the tide is running out.
self faced in the future with an
Another/?thiriguthai/ L|tKinfeT r
! Thatrtakesa lot of courage, but
increased interest rate.
' > jusually- :|f that^ bourage is used pught> to take a few miimtes. Of>
/ You know the; figures better*
with judgment, the opportunities your time to explain is that wer"
than I, but I am told that the in¬
jof the business, financial and par¬ in the life insurance business arp:
vestor who pays 2%% for a 30not trustees. We are managers of :
ticularly the investment world,
year public utility bond today will
the funds
of
our
policyholders:
open to those who do not slavishly
find himself losing about 15 points
who fulfill their purposes as evi~:
follow mass "judgment.
'
f%
in five years if the interest rate
denced by the contracts which we
;
Xou remember that ,in 'Wall have issued and which
then goes to 3%%, ■
'
they hold;;
Street and La Salle Street in 1935
I used to tell my insurance peo?
There is a great difference be¬
the Equitable was
casually re¬
pie what I thought was of aca¬
tween investment by
managers
ferred to as buying second rate
demic interest; namely, that the
and investment by trustees.
You
old Equitable Life Assurance So¬ public utility bonds. We had to know that trustees' investments
absorb that criticism quite a lot
are carefully guarded
ciety of London would have been
by laws in
better off in 1917 if it had put all for a yea? or two. We bought 125 which the kind
of investments

Equitable steps out and grabs; an
itself!,

can
we

hell

until

appreciate what that may do,
are told that the jet propulsion,

freezes

will

over

lower!,
•
.
i
i Even, as I say f that/' I think of
the; possibility
that those atom

any
.

engine will send them both to the
switchyards. As your Chairman

busters may

suggested, who knows what
lies ahead for long terni business¬
men,'as a result, of the progress

energy even to create ice in that
far-off region, and I realize that
I may even have to revise that

yet devise sufficient

solemn formula for future invest¬
the atom busters?
- - • /
'.' '
* '
pleasant, too, tb be/with ment.
We experts' in the investment
the member^ of the ' Bond * Club,
at a time when everybody is in of money who are responsible for
made by
*

the

strong

enjoying a

good humor,

buoyant bond market. The in¬
bankers bid like col¬

funds

policyholders

our

looking into the long future, are

bull bond market,

bond market, a

bunch of boobs after all.

has

vestment

Who

been

issues at lower and lower

bought 75 % of these issues whose
rates have been declining down

issue all for

and down,

Refinancing

Ferocious

in the

was

of
who

er,

life

great investment bank¬
demanded, "Have you

mons,

why we do it? We in
the Equitable have made some ef¬
fort to resist the lower trend, and
in the process of resisting it our
net
investment in
public utiliy

sum¬

presence,

I wonder

that

I dreamed the other night

fellows

insurance

3i4%?"

few
he
summoned as by magic the Presi¬
dent of the Alaska Company and
demanded, "Why haven't you re¬
I

that

admitted

funded

had

Thereupon

Ice'"3%s.

Alaska

314s?" I/1/ 'fj ' Y*
of the company

those

President

The

to defend himself by
saying that there was a call price

attempted
six

of
r

and "it

points,

wouldn't

really

worthwhile.

" " •>

"Why not?" said the great

vestment banker.

in¬

"Take out .your

That call price would be

pencil.

absorbed

4 I

can

down

came

the

office

world

the

dream

isn't

different

from

The Northern

world.

Natural Gas bonds had just been
sold

for

20-year term with an
less than 214%.

You know, it's only a few years

that

trembled

pon

bonds?"

because

re¬

I don't think it
; afraid

were

sponsibility

anti-monopoly laws.

money

because

for
other people's
and its investment, when

there

I went along with our investment

department and bought the bonds
of that company on a 4%
basis,

panies. *

and

later

and

now

4V4

basis.,

refinanced

were

Then

ideas

314%,

all

at 214'.

Another

presented

occasion

trembled

when we stepped for¬
pioneers and bought, for
long-term investment, the Okla¬

refinanced
and

now

My friend Tom McCarter,
retired

from

Public

pointed

the.

amount

few

•

"There's

years

ago

that

break
..•>

iry

the

do
.

...

the

same

not

present port¬

true

guarantee that if

the trustees do buy in accordance
with the law, they

"legals"

are

possible prices.

will buy when
at the highest;

■

We in the life insurance

busi¬

not subject to those law?

ness are

governing "trust" investments. We

permitted

are

able

were

the

much greater lati¬
Therefore; we

of selection.

tude

take

indicated

cretion

advantage-q|,
dis¬

which our

opportunity

railroad
fol¬

the

bond market of 1938 and the

Altogether in that
bought over $400 mil¬
lion of the securities of carefully
selected railroads. We had learned

lowing years.

period

by experience that there are rail¬
roads which begin somewhere and

nowhere. We had, for example,

some

bought, and fre¬

years ago,

quently bought, the first mortgage
bohda of a divisiori of the: Coe/
tral of

I. think it .was,,

Georgia,

wonderful.
receivership
and in the more careful examina¬
tion of all the facts that we dls-/
covered that the reason for those
whose

earnings

wasn't

that
„

would

the

continue

prevailing

indefinitely

into

future.

Lyman Gage, then
Secretary of the Treasury, assured

the

that there
rate in the

might go

the

docu¬

moment.

much good to ob¬
Federal Govern¬

its

policy

much

the Federal
I i.#

good

know

Government

that

still

is-

Investments

is
going to happen, and usually is.
Even Henry Morgenthau
some¬
times can be very certain of what
is going to happen. We have some
ideas, but we do not feel that we

then

rates

Equitable

the

No Certainty in

imous in the view that the low
interest

was

chance

We in the

investment

the

Keynes

can be

assume

-Well,

rate of less than 3%.

know that low yield
period lasted for only two more
years. During those two years we
acquired some 3% corporate
bonds.
•

you

We still have the

Alton's.

During that period, second rate

—

then'

-'£.♦.41!

second
'-n-i

rate

—

borrowers,

:fJ'■>;J.s.

can

too

w o r

sure

sure as

i d-

Lord

of what

look to the

future, hoping for better times for
the investor.

that the

following twenty years
to 3 lk%<. But August

earnings

road for

were

until

the

was

Then,
■■

Equitable don't want
to be too sure about anything in

one

loans to those veterans of the .1st
World War who- still have war
risk insurance policies. It doesn't

said

4%."

The replies,, which are very; in¬

teresting, have been summarized
by Dwight Rose in a recent book.
The experts were practically unan¬
•

We do

mind

hope at

It doesn't do

that, though the heavens fall, he
wouldn't

legally make is

prescribed, and this is
also of the savings banks.

carefully

We/in Equitable have learned
that

cannot

investment

our

depend

vestor.

are -

You

work

statistics alone.
mostly
history.

You've got to have
you

something of

to be a good in¬
a little in¬

must look

the future, and yet we cannot
hope to have the gift of prophesy,
to

i" We

bought those so-called "sec¬

public utilities in 1935
because of legal as well as sta¬
tistical research. We bought those
railroad bonds in 1938 because of
ond grade"

legal

well

year or more

all the line's business.

System in great gobs at 75.

the poet in

ment

the

friends,

com¬

ex¬

period of twenty years.

Statistics

charges

good

pect for

that if the Equitable really wanted
to be conservative, it had better

ment

for

sentence

is not much with which to

other day and
said in the presence of several of
fellow who

death

Belmont, supposed to be some¬
thing of a leader of the day, said

that

what

hope for a little better
yield, though I must admit there

serve

finger at

same

haVe in

accusing

know

what rate of interest he could

constant

We still

just

Service

have

all

not

to the future.

has gone down.

were

4s, and then at 314s,
2%s.
/i;

New Jersey,

have

same

can

the

last couple of years by about

They

that trustees

pending legislation including the

You

large S us that there could be no reason¬
the John able hope for a better rate than
Hancock, whose public utility in¬ 3%. One very, optimistic leading
vestment has gone up during the banker in New York
suggested

homa 5s at around 90.

million dollars' worth of the bonds

of underlying

cost.

life insurance company,

was

the Public Service
Co. of Oklahoma. There
again, I
ward

1896

There is almost

I think it's

such

between/ our
/"
«■
1
"

do
as

folio.

similar

from

generating and dis¬
tributing utility companies, many
of them in the Insult, Associated
and like systems, and did it be¬
cause
after examining the then

was

competition

they

vault

bought its Brit¬
ish Consols, whose market value
in 1917, together with all interest
payments in the meantime, was
materially less than the Society's

ourselves provide the means of
refinancing our; own higher cou¬

average return of

ago

the

that that branch
had been
carrying great quantities of road?/
leading
making
machinery
and road-/
said, "We won't buy these con¬ financiers and experts in finance tic memorandum on the future of
building
material
which
pro¬
stantly declining
coupons,
and in the country and asked them CB&Q. We bought Central Pa¬ duced a
highway that took away ■
cific's
in the Southern Pacific

the

day and found that the fact¬

ual

cash

than to have

by your excess profits
sell your 2%s, and I
figure out that upon refinancing
at that rate, after you have made
allowance for the corporate and
excess profits taxes on your sav¬
ing, you will have a net saving of
$40 a week for the balance of the
term.":; ■;<; *yyyp?)?: 'fy'
tax.

its

holding com¬
mean.•/ The
bonds has gone down during the investor, who buys a, return of panies, we decided that that was
not going to adversely affect the
last two years by more than 200 2.8% on a long term bond today
underlying generating and dis¬
million dollars. There has been and pays,,a 50% incoine tax has
bought for himself at the end of tributing companies or their first
some
consolation
in.
that
we
have taken some nice profits on five years, $7 of net income per mortgage bonds. Those purchases
of so-called second class utilities
the call fn those instances where $100 of principal. Would you like
all
been
refinanced
and
to take the responsibility to your have
we did not participate in the new
policyholders enjoyed
customer investor of telling him Equitable
issue.
that there is no danger of his fine income while we had them,
I think my figures are about
and a nice profit when they were
right—but always remember, God principal being worth less than
taken away from us.
he paid for it by more than $7?
gave me a poet's license in the
I don't wonder that a new York
In 1939 we again stepped against
matter of
figures—when I say
house the other day, using just the current—I hope you won't
that we have parted during that
those figures, suggested that it mind if I boast a little—and we
period with
about
235
million
was
advising its clients to put bought railroad bonds when
dollars
of public utility
bonds
their money in the bank and live everybody else was selling them.
which we had bought with an ex¬
on it.
V,
We didn't have to go in search of
pectation of about,3%% for a pe¬
them. There was panicky selling
The Opinion Danger
riod of 30 years, but which by
of them. Institutions dumped them
reason
of: the
refinancings we
/You know, unanimity of opin¬
held for only about six years, and ion is a danger sign; When every¬ in our laps in great volume at
I say
the realized yield, if you will per¬ body thinks that interest rates are unbelievably low prices.
mit me now to add the little profit going to remain low or go lower, unbelievable in comparison with
present prices. We bought Atchi¬
that we took on the call, instead of look out.
Maybe that is just a
son General 4's at 96.
I'd hate to
being 3^4, was about 4%. •
pious wish on? my part. But in
tell you in the presence of Ralph
1899—of course that was way back
Budd where we bought CB&Q's,
Institutional Buying Competition
in the old era—the then president
Why have the life insurance of the Equitable Life addressed a and, incidentally, we did not pay
Lazard Freres for that pessimis¬
companies not ganged up • and letter to about 200 of the

any

paying as much as

bonds that are

your

has

statistical

re-

know,

you

Oven

wheji

do get the : facts, we; don't
always see them in the same light.
You know that little tale about
you

pals named Mike and Pat.
They-shared their worries and
their refreshments together, until
Mike had to lay up for repairs.
He went to the hospital and after
he had been there for a few* days;
two

stopped in to see him. As; he

Pat
was

leaving the

hospital he met

Foley, the parish priest/
who asked him,
"How did you
find Mike?"
;
Father

"Oh, Father,, he's in a

terrible

He's very bad. Why, you
Father, that man
don't
know
what he's
saying.
When
I was up there in his room Mike
said to me, 'Oh, I'm feeling fine,
I'm
gettingbetter every
day]
When I first came in here I could

way.

know,

see

elephants

and

snakes

and

things all over the wall and on
the ceiling, but now it's all cleared
up

and they've all gone.'y->; V:i.
of it, Father, that man

"Think

lying there and talking

like that,
'

yny t£■;

[\i-

.v-'V)

' '.V

'-Zi'Z,

(Volume 162
/When
•-

could

all

see

iphant and snakes just
the

•

nose

them

.douafs'.>• y; ji V

lion

face!"

your

of assets for the? year was 35

ele-

plain

\ You

notice

will

billion of bank deposits

mil¬

that

the

gains

I want to

about the

say

mortality and the gains
the
profit are just about equal to the
interest earnings.
In other words,
we coul d have gone without any

way

investors

word to you
life insurance

see

investment

our

problem; and I want to say it to
because I want to correct the

interest

last year : and
obligations to
policyholders without any diffi¬
culty. But without interest earn¬
ings we could not have paid over
still

you

."mistaken

notion

that

must

have income and therefore must

buy whatever is available, even
though the rate is low/z v■' />/
^
T;A That is not quite true. Life in¬

•

today

surance

done

earnings

have

met

policyholders, and

our

•

could

and for the

to insure you in those later years.

/Where

do
supplement
ments
are

early

your

and

They

with

Our and

large assets;

/assets -

are principally the exeess
funds charged in the early; years
:of rfour policyholders^
insurance

;

in order

invested

and

ments and

interest

future, that we should.

gains,

expense

along
-

none

We must have those funds in the
:

the

years

can't make up
that

supplemental

for

the

ing cost of insurance
holders grow older.
'■

that

assume'
"a

that

order

ness

do busi¬

may

basis

rate

policy¬

Those

"factors"

three

assure

you, you

••5lf

tell

you

the

what

interest you assume, let
it is 3%, and if you tell
him * the mortality table upon
which you depend, and let us say
rate
us

Government-Fixed Interest Rates

it is what

know

ican ' "Experience
which most of

the Amer¬

What

clearly to
1

been

is that

reduced

get: very

in the

business

insurance

yet

mortality table,

want

you

life

have

not

point

the

tell /where we have to buy just anything in order to have some in¬
come.
What we really need to do
-That net premium having been in view of our experience in the
vfixed/ then vdiscretion and estK past is to be/careful that we don't
"mate come into play to fix the commit too mueh of ourpolicyamount for expenses that shall be holders' funds for too long a time
at too low a rate of interest, be¬
: added to that mathematically de"termined net premium, and- the cause it is they who will suffer
maturity,
if the interest
result is the gross premium, which until
of course varies with the age of curve turns upward.
;
us

use,

can

you to a cent what net premiums
must be charged at each age.

•

the, policyholders.
which

consideration

The

/ziake for

promise^td

our

Why shouldn't it turn upward?

) Why is
where

pay

some

the' interest
is?

rate

the

down

result

circumstances from which it

'specified sum at death, is deter¬
naturally flowed?
No, it is not.
mined upon an assumed interest
It is there because it has been de¬
rdte for a given mortality table,
liberately set there* as" a fiscal
.and .an estimated expense factor.
policy of these United States.
I

■A
'

z'l]can't give

you

jthe/figures for

'the business generally, but let me
"give you: the Equitable- figures.
These are the laymen's figures,
the only kind that I can make use
of. In 1944, our interest earnings
^were approximately 100 million
dollars.A That

was

just 5 million

needed on
assumed interest rate on our
than

>; dollars more
our

outstanding

liabilities.

million dollars gave us

That 100
a margin

of 5 million dollars more than our

expectation

interest

fWc "assumed
contracts.

on our

at the rates

outstanding

gain over and
.above the expected mortality for
1944 was 33 million dollars. That,
mortality

Our

will note, is about 1% on our
outstanding liabilities. ^ Our

you

then

gain

the expense factor over
had expected
provided for in our premium
on

and above what we

and
was

24r million

cause

iing

of your

our

dollars;

And be-

ferocious refinanc-

profit on the sale and call

will

have

time.

in¬

with that

much bank credit
as

there

provide
money in

were

values

babe.

have

today: by

some process we

supply

created and awaifc
ing use, except as the Govern¬
ment by some method fnay con¬
trol that use. ■ I say/again that
that increase has been due to the

that

fact

the

moment to pay my

which is available for

country
/

today.

excessive

That

money

use

in this

amount
of
represented
by
$140

have

powers

them.

Know

ple.
the

They are not respon¬
representatives of the peo¬
They, are not the agents of

Congress who

sentatives

people.

the

much

confidence

except experts in
and

who have
to the

many

sense,

them,

direct responsibility

people,

I believe in

trolled

representative
we

gov¬

to avoid

are

these dangers Congress will have
to take back the policy-making

by the

Congress. 1 sup¬
pose that if that is to be accom¬
plished, the people, men like ,vou,
and me, will have to see to it that
the personnel of Congress is such
that we can expect them to take
over
the policy-making job of a
democracy and a representative
i

government. '
'
1 We
are all afraid of
Our

•-

•

inflation:

business is picked on all
the time as illustrative. But don't
own

forget, as Judge Hughes once said,
life insurance is still the best bet;
in

world.

the

of the member banks of the Fed¬

holder

pay

sudden

for

value

find

not

Treasury to

the cloak

of the

create
money

under

respectability of

the Federal Reserve System, they
cannot escape some share in the

much

because

money

I do not

ter.

death

banking

friends but
that A the
an

merely

optimist; IA' believe
out. One is erhphasis on production. Another is
one more sentence which I wpuld A A
add to the President's speech the.
other night: "If labor is not rea¬
am

are

ways

sonable in its demands it will not

have

the

support o|

the Government for its unreasonr
demands."

able

Still

another

increased

representation of the'
public good by our representa¬
tives
in V Congress.
Some such
changes in leadership will save
.

from

didn't think that I
the

take
the

of the things .that
suggesting here, and

some

have been

Equitable

wouldn't A

responsibility of urging
representatives

continue to sell Equitable policies.
We are suffering at this mo¬
•

from

ment

the/fact

that

for

labor has been told by irre¬
sponsible leaders who did not

years

have

the

labor

long
mind

term

welfare

&ut; only tempo¬
expediency,
that

rary /political,
there is plenty more for labor if

it will just ask Jor it, The trouble
has been in the past not with col¬
lective

bargaining,

fact that

but with the

haven't had true col¬

lective

have

the

collective

ever

the point where labor was

their

causes."

savings.

the

United

States

and

the

Con¬

of the United States make
their minds to handle the

gress
up

federal

financial

business

•

wonder

why

District

•

that

sentence

Columbia

concen¬

trate all Government in that little

financial: patch and to delegate all power
and es¬ to the experts in the administra¬
tive and /executive departments,
pecially
every
journal of the
and then to free the whole ma¬
banking world? I was brought up
doesn't appear in every

journal

the

country

believe

that: bankswere

re¬

chine

the

from

control 1 of

the

sponsible not merely for the safe
custody of the funds of their de¬
positors left with them, but re¬
sponsible also for the soundness
of the currency in which the de¬

courts, will have first to be driven
out of the garden so that com¬

posit was made and in which they
were payable.
,•
••
•

ica.

If the bankers will not take on

the

responsibility ! of

the

soundness

our

preserving
currency,

who will?

If the bankers go along

this

established practice of

with

initiative

bargaining, because when¬
bargaining got to
afraid
eral Reserve System :the?e has greatest concern. We know that
they weren't going to get what
been devised the most beautiful
not all the concern about prices,
indirect
method
of
creating not all the concern about wages, they were demanding, they have
greenbacks ever thought of by or controls of other things that.go turned to and they have had po¬
litical support from Government;
into making inflation, will pre¬
humankind.
Perhaps I am whining, but if so vent that terrible possibility if the That is not collective bargaining.
When labor really turns under
it's
because
there
is
so
much
money-printing machine goes on
intelligent leadership to speed up
money
more
and
more
seeking investment that grinding z out
the insurance funds for which I
money,
available; for, spending production and management sym¬
pathetically sees to it that labor
am
A ;,A
responsible have to take a and speculation.
has a fair deal, and Government
I brought with me a little clip¬
lower and lower interest yield.
But I am also emphasizing that
ping from the New York "Times" maintains its proper place as an
rthezlohg term: welfare r of this: editorial page of a few; months I umpire representing the general
country is not advanced by that ago .which says, "It is the spend¬ public welfare, then even with
abnormally
low
interest / rate ing of this excess bank credit: our; big debt, even with the big
produced by > that, indirect and and currency that has forced up burden, we are still a hard-work¬
sensible, producing, stable
cloaked creation of money, and I wages and prices and brings about ing,
democracy and we shall come
the results collectively known as
am saying/that Athere Is a; great
A
inflation. All the other causes of through.
//; r /;> • /■'::' "A A
.:/ />
source of: public Awelfare Ain /inA
I have faith in our institutions.
spiring the thrift and saving of inflation are secondary or deriva¬
tive. Most of them, in fact/ might But. I do believe that the termites
the people of this country by the
who have been working in the
incentive of a reasonable hire for be better calley 'symptoms' than
whom

for

of. its'

to criticize my

mean

suggest

continue

;

ernment, and if

and more fictitious

there

experts,

common

there daren't

bankers

to prevent their( institutions
from being used by an uncon¬

way

A I

They

substitutes for the representa¬
tives of the people. I have never
are

the face
against
the
premium/perhaps of a few
years.
It / is the older
policy¬

borrower,

Bankers

the repre¬

are

the

of the people themselves to
complain that they have too much
money
and by the same token
we cannot expect public officials
who depend ori the support of
the people to have the courage to
take the leadership in such a mat-

Vinson, but by the Treasury ex¬
perts.
Who are they?
I don't
sible

Responsibility

mass

been

States,
controls the Federal Reserve Sys¬
tem and through the cooperation *

principal

the Treasury of the United

dangerous?"

depreciating effect. A large sup¬
ply of money has always been
popular.
We cannot expect the

present,
delegated
by Congress, vested in the Treas¬
ury where, as a practical matter,
they are to be exercised not by
Henry. Morgenthau, not by Judge
the

make

flation.
#

Who will decide whether those

things will happen?

didn't

bankers

effective protest, how were
we to know that the drift was so
any

responsibility for consequent in¬
The problem is to avoid.

monkey

The Treasury Experts

//;//

nearly $200 billions of that

money

/Where are we going? - Is that
respects to those who fixed that volume of;; money to increase?
You ;know that
the process of
Izrepresenfr the ithriftyv /saving,- building up bank deposits with
capital-producing people of this the cooperation of the commercial
country. I maintain that the fu¬ banks began with the purchase
ture welfare of this whole coun¬
of gold through the banks which
try depends on the hard work, directly increased the bank de¬
the thrift, the saving of our peo¬
posits from around $35 billions in
ple.
I believe that the institu¬ 1935 to over $50 billions in 1939.
tions
that
represent thrift and Then when the deficits got big
saving must be soundly admin¬ enough to take over the job, the
istered/that they must provide an financing of the Treasury deficits
incentive to saving.
Who thinks through
the commercial
banks
that it is good financial policy for was used to increase those de¬
this country to maintain interest posits and money in circulation
rates at so low a spot that there
until we now have a staggering
really is no incentive to saving? amount approaching $200 billions.
If you ask how could anyone ever
Will it go'to $250 billions? We
fix and maintain interest rates at hope
that the deficits will be
the current low level, I answer by
brought under control. But we
the simple process of creating an submit they won't be brought un¬
excessive
amount
of
der control until the Treasury of
money
come

the

when* the

too

had

only here to point out the
Father Coughlin,

But

are very

say

banks

same

funds

with the price of gold.

framed

today.

you

;

in the! country.
We smiled in¬
differently because we knew on
that subject he' was as innocent as

actuary

savings

That in¬

process.

commercial

circulation

for

again

function and! Will have to* see to
it that the experts of the Treas¬
ury
keep
within
the
policies

consid¬ inspiring. I like to say to my life
eration which you must pay to insurance friends :when I talk to
us through the period of your life them, ; as
a
super-salesman, of
in consideration of our taking on course, that I will try either to inthe obligation of paying to you iform them, inspire them or prothe? fixed amount of the policy; I voke them. I hope that I may do
'a little of one or the other with
pt'^our death.

for; the

because

the Government shouldn't

see,

all

room.

banks

posits and money available to the
people, there was no reason why

danger when

call

worth of property in this country
and only $40 billion of bank de¬

vide

them, fix the premium

yields A

glorious oratorical brogue of his,
and that perfectly innocent con¬
ception of economics and money,
proposed a few; years 'ago that
sincev;: there
were A $300/ billion

afternoon, which is a great
a lawyer from Phil¬
adelphia without manuscript gets

actuaries

our

in bank

facts.

interest, select
mortality table, and then pro¬ before such an audience as this in
something - for - expenses. such a beautiful ' setting as this
a

point

consequent

creased in the

I have no
manuscript, and you have to have
some evidence that I'm not going
you

cause,

the

low
that

deposits is precise¬
ly the amount by which the hold¬
ings of Government obligations in

brings me, I hope, to my
remarks. I say that be¬

closing

payments

/You know the
crease

could

policyholders.

That

required to meet the increas¬

are

our

for
very

which he hires out for capital.

supple¬ on a
inadequate
payments
to insurance costs a policyholder $21
meet the greater cost of insurance a thousand; at 2%, $24 a thousand
in the later years.
It is for this at 1%: $27 a thousand; at no in¬
reason that we speak frequently terest, $31/ ,A/A- A; Az
•/f HzA-'/;
ofj those assets of ours as being
From our point of viewvfhis inf
trust funds. We don't mean trust terest rate is therefore principally
funds in the technical sense. What important from the point of view
wfei mean is very sacred funds. of the net cost of our protection to
later

competing

thrifty; saver;

ment

commercial

invest¬

corporate bonds do not give a fair
return - to A the - hard-working,

interest

for

causing these

rates.

these

and

a while with half
earnings or with
of it. To put it another way,
3% interest assumption our

get
our

available

money

these yields on Government bonds

present mortality gains,

our

that

mass

small volume of available invest-,

That is the reason

have

wet

accumulated

years

invested.

-that

years?

the result of the extra charges

•

later

great

becomes

ment,

million
dollars out in dividends, but the
payment of those /dividends de¬
creased the
present net cost of
insurance to our policyholders.
;
A What I am trying to say is that

your

that

We didn't have to. pay 45

get the; funds, to
inadequate pay¬

the

Some of it

war.

circulating in the country today,
piling up at various points, where

could not

you more

*•o£:yourkin$urance."jhan^it' costs

jhe

necessary

surplus, and

money

in order to finance; their desperation
the war, but not that much of it.
fiscal authorities
was

have put aside over 25 million
in the dollars to strengthen our reserves.
early days of your insurance than We didn't have to put all that
it costs us to insure you, but we money to surplus, but it was in the
charge you less in the later years interests of our policyholders, now

charge

"means we

finance

our

much

not have added 30 million dollars

been since 1760, on what is known
as the level premium plan.
That

other financial"business

every

handled; that "is, decide first how

our

45 million dollars in dividends to

has

2365

they cart afford to
spend and then appropriate it,
compared with $10 billions at that and not first appropriate every¬
time. There is more than twice as
thing that is demanded and after¬
much of that which people use
ward try to find where, the
money
for money available in this coun¬
is coming from to meet the
ap¬
try at this moment, as there was propriation If bank accounts and
in 1942.zA>" '■' i;., A;z/A:;z -pA;
AAAA; money in circulation go to $250
Now you
may
say
that that billions, it will be because further
increase was necessary in order* deficits are
financed through the:

the, expense factor and

from

compared;

with about $70 billions at the be-;
ginning of 1942 and by about $28
billions of money in circulation

V**,"f

from the

of Insurance Investments'

Role

;THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4438

"•V

l-'r

creating more and more money by
the process of selling the; Gov¬
ernment's obligations to the com¬
mercial banks, and if as a result
of it there comes a financial de¬
bacle in this, country, don't ever

mon

sense

citizens
anew on

responsible American

can

reconstruct

build

the institutions of Amer-'.

A;A':/zv/A' ,zA/'/Az zz:Vz A A./
talked

have

meant

to,

and

longer than. I
probably longer;

than I should have, because I was
told that you like. to get away
from these meetings early: and
that if
I talked too long
you
might not come back to the next
one.
I apologize for my trespass,
and assure you that your very

efficient

President

will

sell

the

guest speaker as he sold me.
I have enjoyed very much be¬

forget who will be responsible. ing here. I hope I have provoked
The politicians will turn, as sure you a little, or inspired you a
as
I am here, and -say, "Why, little, or informed you a little.

THE COMMERCIAL & FINANCIAL CHRONICLE

2366

With E. H. Rollins & Sons

DIVIDEND NOTICES

IND.—Addi¬
son
A. Ilowe has been -added to
the staff of E. H. Rollins & Sons
Incorporated, Circle Tower.

IMEEIH AX G\S

tO.MPAAV
..V

DIVIDEND NOTICES

outstanding in the
declared out
the company
for the quarter ending December 31,,1945/
payable January 2, 1946, to holders of
such stock of record on the books of the
compan/ at the close of business December

that a semi-annual
fn Canadian cur¬
declared, and that the same
win
be paytfDie on or after
the 1st day o 1
December, 1945, in respect to the shares speci¬
fied in any Bearer Share Warrants of the Com¬
pany of the
1929 issue upon presentation and
delivery oi coupons No. M at:
THE ROYAL BANK OP CANADA,
King and Church Streets Branch,
NOTICE Is hereby given
of 25c per share

Dividend

Common §to«k

quarterly dividend of ^
I Forty Cents (40c) per share on the
Common capita! stock of the company is¬
sued 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, 1945, payable De- ■
cember 15, 1945, to holders of such stock
THE regular

of record

Toronto

Dividend

ibutce,

York, N. Y., October 30, 1945.

of Directors of this? Company has
declared a dividend of Twenty (20)

share on the outstanding capital
payable December 15, 1945 to sharehold¬

ers

record

the

1945.

business

Novem-

BELL, Secretary,','..:^;

C. O.

COLUMBIAN
COMPANY;

.„Vf' Ninety-Sixth Consecutivex:e
'i >'i "i?S.

f\..

'4:

Quarterly Dividend
The

Directors

Columbian

/
Ai

tfi/Hrf

•

Carbon1':

Company have declared a regular
quarterly dividend of thirty-five cents
($.35) and

Under existing Canadian

Regulations:

;

Payment of this dividend to. residents
countries or countries formerly oc¬

(a)
of

the

per

to stockholders of record

November 23

1945, at 3 P. M.

;

A
/

GEORGE L. BUBB,

Treasurer

:.v

LANE
C

P A

non-residents of Canada may con¬
at current Canadian Foreign
Exchange Control rates into such foreign cur¬
rencies as are permitted by the General Regula¬
tions of the Canadian Foreign Exchange Control
Board.
Such
conversion can only be effected
through an authorized dealer, i.e., a Canadian
Branca of any Canadian Chartered Bank.
?: Shareholders
residing in the United States
may convert the amount of
the current divi¬
dend into United States currency at the official
Canadian Foreign Exchange Control rate by•(c) Other

dividend

this

vert

at their

sending

own

risk

and

expense,

cou¬

properly endorsed, to
Bank of Canada, 68
William Street, New York City, which will ac¬
cept them for collection through an authorized
dealer, or direct to any authorized dealer of the
Canadian Foreign Exchange Control Board.
:
Shareholders residing in countries other than
the

to whom payment is not proabove may convert the amount
dividend by sending at their

United States

hibited
of

noted

current

the

risk

own

-'WELLS

O M

thought that
lions of
be

I do not

of the mil¬

we, out

fellow soldiers,
to shoulder the

our

called

then

would
great

and

industrial

matchless

and-

forces

fighting

unequalled

scien¬

enemy

pons or dividend cheques
i'he Agency of The Royal

year-end or final dividend
year 1945 of ten cents ($.10)
share, payable December 10, 1945,

for

either

havej

payable to them.

that

she will

and

expense

coupons,

dividend

cheques properly endorsed, to The Royal Bank
of Canada, King and Church Streets Branch,
Toronto, Canada, or to any other authorized
dealer or to The Agency of The Royal Bank
of Canada, 68 William Street, New York City,
U. S. A., with a request for a draft in such
foreign currency as is permitted in settlement
of same, but they should first satisfy themselves
that this action is not prohibited by the For¬
eign
Exchange
Control
Regulations
of
the

country in which they reside.

tific resources of the United States

had been thrown without reserve

into

the

We rightly today
pay honor to all the Allies. There;
is honor enough for all; for those;
who fought in the West and in
pool.

the East,
and

in the air,, on the land

the

sea.

those

For

who

fought in the formed units of the
great states, for those who served
in
so

Movements

Resistance

the

countries and for those

many

who stood firm when their homes
were

bombed. All contributed but

the

greatest

contribution

was

made by

those with the greatest
resources,
the United States of
America, Russia and the British
Commonwealth
and
E mp ire.
Twice in

generation the coun¬
British

the

Common¬

made a

greater contribution*
Minis¬

than Canada, whose Prime
ter I

happy to

with

States'

All know that'

one.

to¬

DIVIDEND

NOTICE

pons

yet secured
numbered

notified

quarterly dividend of 25 cents

the

December

per

stock, payable

common

15, 1945, to stockholders

of record November 28,1945.
B. G. PETERS,

Secy.-Treas.

that

new

only should be. detached from

the Bearer Share

presented at or forwarded to the
Secretary, Imperial Gil Limited,
56 Church Street, Toronto 1, Ontario, Canada,
by registered mail (with return address clearly
indicated) when a new supply of coupons bear¬
ing the same serial number as the Warrant
from which the talon is detached, will be Issued
in exchange therefor.
Warrants and
office

the

By order of the Board,
J. A. NEW, General Secretary,

58 .Church
Toronto
7th

/ ''/V..."'';

1945.

Bnn-Klc^t, One.
DIVIDEND
CLASS
A

"A"

STOCK

has

she

done

past.!

the

We look upon

been
ber

declared,
15,

record

1945
at

stockholders

per share and an extradividend of lOtf /per share
have been declared on the"'

business

Capital Stock of this Company, both

November 5, 1945. Checks will be

able

mailed.

SUN-KRAFT, INC,
ckicago

dividend oi

25d

payable Novem¬

the

A quarterly

December 15,

record

■

1945,

November 30,

transfer books will

pay¬

stockholder!
The stock

1945.

remain

open.

//■/.//// E. W. ATKINSON, Treasure

A. V. ASHMAN, Secretary

Nrvember X.

1Q41

'V'

Manufacturers oi Sun-Kraft quartz
ultra-violet ray equiment.

Newmont Mining
The New York Central Railroad Co.
New
A

dividend

York, November 14,

One

the

capital stock of this

$he close of business Dec-.m'c*G.

J,
HOWE.

Treasurer.

Corporation
Dividend No.

1945

Dollar

<S1.G0) p2r share
Company has bem
declared payable Januarv is, 19/ 3, ' - t:h<* of4<c°
©f the Treasurer, 466
Lexington Avenue. New
York
17, N. Y., to stsesno/ders or record at
on

the

leaders

the

field, but I

own

tions

that

instruments

never be
employed save
interests of world security

ment

na¬

must;

the

part

moned

the Prime Minister of Great

Brit¬

ain, but in accordance with

prescience while

practice; X am also
Party Leader; the, leader of a
majority returned to poWer in the'
a

House of Commons.

war

The Labor Party

as victory was secured we
might have an instrument ready
to hand for the prevention of all

soon

in the future. :

wars

We have gone

destructive

ble
have

lost

have

here

numbers of the
flower of your young men.
Bo
Britain.

difference
and

So have all

countries that have

been

individual,

but

country;

striven for
and

those

freedom has to

every .generation;

who

threaten. it

are

not always the same. Sometimes
the battle of freedom. has had to
be "fought, .against

Kings, some*
against religious tyranny*
sometimes against the powmsiS&
the owners of the land, sometime#
against the overwhelming strength;
times

monied- interest.

Labor

past.' Defensive frontiers, moun¬
tain barriers* the seas and even
the oceans are no obstacle to at¬

the

Party declare that we are/

in line with those who

fought for;
Magna Charta, and Habeas Cor^

of •pus,-with the Pilgrim Fathers ancL
with the signatories of the Decla-^
by the continuity of the air.
In ration of Independence.
Let me clear
our
atlases that show the divi¬
The

tack.

earth and

sion

has been replaced

land

discontinuity

old

sea

and

water,

regard to some of these freedoms;
are thought to be in dangers
In fhe ranks of our Party in .the*

the

countries and states, there should

.that

blank

House of Commons

represent

element

the

which

If not

move.

now

men

few

the

years

that

have

entered

into

discus¬

some V

Catholics

Jews.*

some

tack freedom of

religion or .freer
As to freedom >
of speech, believe me, as Leader*
of our Party for ten years I have
never lacked candid critics in my:
own

ranks

and

have

been

top

long in the Opposition not to be a

strong

supporter

freedom

ofr

speech and freedom of the indi¬
vidual. We believe in the freedom
of the
life

may

arid

dom of the press..

that

at least .40!

not likely therefor to sat- *

are

sion with your

President in order
get together with all

are

practising journalists./ There
several
clergymen,
many
local;
preachers, plenty of Protestants,!

now

then

individual to live his
that

but

own,

eondir>,

freedom

the nations of the world and con¬ ,tioned by his not cramping and ?
today "with;
sider what kind of a world it is
restricting the freedom of hi^feL-i
in
the West, two in the East—Gen¬ necessary to have if civilization is low men. There is and always TyilL
to endure and if the common man be scope for enterprise, but when
eral Eisenhower, General MacAr-i
in all lands is to feel secure.
[big business gets too powerful. $p
thur and Admiral Nimitz.

must

content myself

names

of great men—one

call

facing

world

problems

vividly those critical days; said that the foundation of peace

in 1940 after Dunkirk,

How anx-; lay in the hearts of men and I
iously we awaited the arrival of hold it true that the more the
ships carrying rifles and ammuni-f citizens of the world can-get to
tion from America which gave us know each other the. less likely
at least something in our hands to are we to have the
eipotional con¬
fight the invader whose threat dition in!-which
was

wise

imminent.

and

generous

Lend Lease.

recall

that

provision

I recollect two years

We
war

have

shores. /

in this

been; fortunate
welcomed

have

many^

our

citizen^ of/the

There
friendships made,
many
misunderstandings have
been removed, which almost in¬

before the event General Marshall

United States of America.

per

unfolding

have been many

stock

H. E. DODGE, Treasurer.

which have always existed in our

en¬

Continent but we
behind our moat, the
sea.
Those
days are

inviolable

speech^

The Labor party is in the tradir
tion of freedom-loving movements*

the

safe

freedom

freedom of religion and freedom
of the press.
They are wrong.

destroyed in a few short
hours by attacks from the air. But
I know that you are fully con¬
scious of the tragic folly of war.
There was a time which I remem¬
ber when we in Britain enjoyed
the same immunity. Wars might
devastate

Republican,

Socialists but I won-i

imagine that Socialists are out • to;
destroy freedom, freedom of the

deavor

were

are

I think that some people over here?

You have not had the

centuries of human

You have heard*

der just what that means to youl

gaged in this great struggle but
have been spared the destruc¬
tion of your great cities, you have
not had in America the spectacle

their heads.

between

Democrat.

that

en¬

you

work of

always very well informed

politics of: other-countries.

I doubt in fact whether very many .
British citizens know the exact

great

not

the

are

horri¬

You

war.

I wonder how mifch you know
about the British Labor Party; We

through

cents

able December 17, 1945, to stockholders of rec¬
ord at the close of business November
30, 1945,

still raging in order that as

was

the

oujr

constitutional

wise

with

expression of the will'
people in every

common

assist

Francisco

San

Governments; ? rIt:

today in removing some misap^
prehensions. I come before you as

conference sum¬
President
Roosevelt

Conference,

the

bounty. Rerhaps 1/ might

the repression of the aggressor.
When I was last here I was tak¬

ing

between

must be

in the
arid for

On November

14, 1945, a dividend of 37%
share was declared on the capital
Newmont Mining, Corporation, pay¬

soon
com¬

that

puif
Organization, ;;Sh

Nations

our

her forces and
forces and those of other

must, it is a great mistake
Speaking here today when all in my view to think exclusively
our
enemies
have
been
beaten; of war and the prevention of war.
down, my -mind goes back over; We have to think rather of the
those five years in which I served; best means of building up -peace.
in the British War Cabinet. I re-;
Speaking last week in London, I

El Dorado, Arkansas

regular quarterly dividend oi

Greatness of U. S*

COMPANY

121/2 cents per share on the Class
"A" Stock of Sun-Kraft, Inc., has

United

therefore

agreed

than

But

LION OIL

NOTICE

I would like to recall many

three

Street;.

1, Ontario.

November,

tribute to the Combined Chiefs of
Staff.

hold

territorial aggran¬ which I profoundly believe, must
dizement in the future any more; be something more than an

Share Warrants who have
talons with Dividend cou¬
to 80 inclusive, are hereby
samei are
available.
The talon

Holders of Bearer
not

The board of directors has declared

em¬

■

IMPORTANT NOTICE

mon.

her power for

never use

selfish aims

devastating weapons
which are at present being de¬
day.
We were fortunate in finding, veloped may menace every part
'
great political leaders. We were of the world.
fortunate too, in the men of out¬
The Atomic;/Bomb and World
standing ability who planned our!
Peace
resources and our campaigns and
It is in the light of these facts
who led our Navies, Armies and
Air
Fleets
in
battle.
Standing and in particular in the light—the
here, I would like to pay a special terrible light-*of the atomic bomb,
see

are

is obscured but the British
soldier/
and /the American soldier when

wealth and Empire came

none

distorted

phasized. The underlying likeness

page which should
the air to make our
instantly .Children realize that these old and
to the help of Great Britain, and historic divisions do not exist in
a

tries

they came to close quarters
yet America is a. found how muca tney had in

And

other

All the differences

way.

cupied by enemies is prohibited.
(b)
Payment thereof to residents Oi other
portions of
Continental Europe is restricted,
and
to
residents of China is prohibited, but
such residents may direct the deposit to their
credit
in a
Canadian Bank oi all amounts,

CARBON

another World War.

think

threat

United

each

see

the mightiest power'

earth.

authorities require evi¬ Others the. ordeal which we
of said tax, lor which
endured.
We
have
ended
this
Ownership Certificates (Form No. 601)
completed in duplicate and the Bank Second World
hundreds
of
thousands* of
War, deadlier, long¬ of
;ashing the coupons will endorse both copies
broken homes, you have not had
er and more terrible than its pred¬
with a Certificate relative to the deduction and
payment of the tax and return one Certificate
ecessor.
We should none of us great* masses- of people, driven
to the Shareholder.
If Forms No. JB01 are not
be here today unless all the Allies from their habitations, wandering
available at looal United States banks, they can
be secured from the Company's office or the.
had done their part, unless the! about seeking somewhere to lay
Royal Bank ot Canada, Toronto.
, ;
s

;////'■///

thought then on
Nov. 11, 1918, that we should wit¬
ness

period.

Income

little

dence

must

per

Jt>er 16,

were

the First World

purpose

Board

The

when

fighters in

myself were

United States tax
of the deduction

the

PIPE LINE
COMPANY

THE BUCKEYE

Cents

of the President and

responsibilities of high office. Yet
I am sure there was present in
our minds last Sunday the same,
dividend
coupons
presented for payment by
residents .of Canada.
thoughts we had years ago—regret;
Shareholders resident In the United States; for lost
comrades, gratitude for;
are advised that a credit for the Canadian
tax
withheld at source
is allowable against the pur deliverance and the resolve!
tax shown on their United States Federal In¬
to do what in us lay to spare!
come Tax return. In order to claim such credit

November 14,1945,

this* day

be "split" during that

Tax
Act of the Dominion of
provides that a tax of 15% shall be
imposed and
deducted at the source on all
dividends payable by Canadian debtors to non¬
residents of Canada.
The tax will be deducted
from all dividend cheques mailed to non-resiJent shareholders and the Company's Banker!
will deduct the tax when paying coupons to oi
for
accounts
of
non-resident
shareholders..
Ownership
Certificates
must
accompany
all

ANDERSON, Secretary.

•

impressive ceremony of Armistice
I know that in the minds

Day.

War.

transfer

The

payable December 15,1945 to hold¬
ers of such stock of record on the books of
the company at the close of business No¬
vember 20, 1945.

Street

Prime Minister of Canada at that

both

Canada

pany,

Broad

On Sunday at Arlington, I stood
with President Truman and the

Warrants will

the Common capital
issued and outstanding

some

the

remembrances

Company

and

him

with

of those problems
ending of a great war
produces. Sirs, in what spirit shall
we approach these high matters?
which

books will be closed from the
17th
day of
November to the 30th day of
November, 1945, inclusive and no Hearer Share

the hands of the public has been declared
out of the surplus net earnings of the com¬

New

deal with

November,

made by cneque, mailed fiom
on the 30th day of

the

The

where

Generalissimo Stalin we"" sought to

the ottices

will
ot

/A(30c) per share on
stock of the company

H, D.

payment

1945.

dividend of Thirty Cents

extra

•

1, Canada.

to Shareholders of record at
business on the 16th day ot No¬
vember, 1945, and whose shares are represented
by Registered
Certificates of the 1929 issue,

Vf*

'
Extra
Common Stock

///

been

has

The

the

the books of the company at

the close of business November 20,

Potsdam

iivideno

rency

the advantage

had

observing "and admiring; his
courage
and
statesmanship
at

TBI

TO
SHAREHOLDERS
AND
HOLDERS OF SHARE WARRANTS

NOTICE

;

Today 1 the

war.

stands out

and

Toronto 1, Ontario

capifal stock of the

hands of the public has been
of the surplus net earnings of

4, 1945.

brief moment here

ing from the San Francisco Con¬

Imperial Oil Limited

and

issued

swiftly
weight;
from those who had borne the;
burden in the early years of the

ference

dividend of One
I Dollar Eighteen and Three - quarter
Cents ($1.18H) per jh$'e on the 4%%
THE regular quarterly

company

Truman for

j'jfvj n'VfT'

#*Y.

slowly at first and then
(Continued from page 2322)
r
I was glad to meet President developing to
take the
in Washington when I was return¬

Preferred Slock Dividend

cumulative Preferred

British

INDIANAPOLIS,

AS» ELECTRIC

Thursday, November 15, 1945

the

Cabinet

Room his conception of the inva¬
sion of Europe. Then I remember
the

well

the United States

tremendous

strength

of America,

evitably
each

arise

because,

other only from

knowing
distance,

that it becomes

monopolistic,;!;;^

"ip.

hold it is not safe to leave

Further in the !
world* today we believe; a# db!'
u'i
iriost /people in Britain,. Hthat" onb
'T
private

hands.

the economic activities
country if we are to assure,,
a fair deal! 'One

must plan

of the

the common man

further word. You may
the Labor Party

thinfc

consists

solely,7of

wage earners. It is our pride that
we draw the majority of our menfbers' frdm'
earners

the' ranks of." Jwagefj
of our MiniS-^,

and many

ters have

spent long years

wor^4"";

ing with their hands in the coal
-mines, the factory or in transpor- !
tation.
But
our
Party today is
drawn from all classes of

professional/ men,
and

the

what

are

society;

business

sometimes

irien.
called

privileged classes.. The. old
school tie can still be seen on the

Volume

Number 4438

162

Government benches.

pretty good

It is

THE COMMERCIAL & FINANCIAL CHRONICLE
understand

really

nations

section of the

cross

population.%' \

from

•'•'••V*.

f-You 'ftiay. ask why do people
trom the well-to-do classes be¬

long to

Party?

our

great cities.
that

adjuster foundation.
that

was

joined

Movement

The
the

have

result

Socialist

eventually after
of striving I find my¬

reasons

that

same

the

actuated

members

especially
young

the

.of

are

many

party,
number of

the

attitude

our

Foreign Affairs?

Heaven in

country and leave

side.

believe

this

ffcwn the moral basis of

ihent which is based
drhood

our

not

rest

the broth-

man,

world

the

and

ship
We

smaller

democ¬
common.

scale.

hundreds of millions

whole

a great

civilization

founded.

as;;they have had for a thousand
Man's material discoveries have
years. There is ample room in the
outpaced his moral progress. The
world for
the product? of the
greatest task that < faces us today
great industrial nations like our
is to bring home to all people be¬
®w& to raise the general levels
fore it is too late that our civiliza¬
throughout the world. We, like
tion can only survive by the ac¬
you, believe in an expansive econ¬
ceptance and practice in interna¬
and we can see no reason
Why the need being so great there
should be any undue rivalry be¬

omy

tween

world

that

peace

must

relations

and

members one of an¬

are

potential

Before the human
collaborate

race

take

individual shares which
only results in an immense in¬
crease in poverty.
We recognize

employees of the

Union

Securities

that

immediate

our

task

not

man

in Britain

average

error

in the estimate

In the

;

tough proposition.

that

We went all out to win

zlot

for 'six years

very

nomics.
;l

i h

now

him

•

fook

have to
are

enemies
"to be beaten by eco¬
-

co-operation

and

friendship between the U. S. A.
and

Britain—nnt

Great

exclusive

being

contribution

friendship but as a
to the knitting to¬

gether with

all peoples through

the United Nations

organization in

the fcohds of peace.
-'..a.'

Willi Embark

•tn?

our

y'-

forward to an era of an

e r e a s

:• 'V

Nationalization

internal

policies

each

will follow the course decided by

required by the Murray Bill

only useless
dangerous."

I Official

"would

but

■

ing: schemes of social insurance
designed to give security to the
common

man.

We shall be work¬

a planned economy. You.
it may be, will continue in your
more individualistic
methods.
It

ing out

important that we should

owned

except

off

Underwriters—Names

curities

will

spending would be a
net addition to private soending.
It completely overlooks the effect

Corp.

filed

registration

determinate

multiply

this

tion."
Mr.

Bill

existing

would

fears

Hazlitt

only
infla¬

the

figure

are

being

certain

for

in¬

shares,

.4,
of

shares/
through

through subscription war¬
will, be offered for sale to the of¬
and

ficers

directors

the

and/or

public

share.

per

Employees'

$16.50

Stock

Management

corporation

offering

issue

per

price

that

"the

employment
Murray Bill
these.

are

will

conditions.

measures

possible.
not
The

prevent

proper

unemploy¬
ment in the long run are simply
the proper measures for creating
a
sound, stable, and progressive
economy.
The only 'substitute'
...

:V£

value.

par

issue

filed

one

for

Sept.

held

filed

value.

common

for

stock

net

$2,000,000

number

The

each

the

company.

be. filed

Details—See issue

of Nov. $.
Offering—To be filed by amendment.
Underwriters—To be filed by
amend¬

Oct.

of common

Stock,

Details—See
;

TOBACCO

CO.,

registration

Nov.

issue

share,

for

each

Nov.

new

the

five

given

rate

purchase

right

the

common

scription

stock

common

were

one

$1,

Offering—The
units
and

stock

consisting
share

one

will

of one

Nov.

Underwriters—Floyd

share
at

common

offered

of: preferred
$15

unit.

per

Cerf Co.

heads

WEDNESDAY, NOV. 28
has

TELEPHONE

Dec.

filed

new

held.

holder
Stock
will

statement for

2%%

which

will

net

the

corporation

Care

Co.,

debentures

due

American

Telephone &
Broadway, New York,

195

Furnishing
'

communication

the

at 100,

series

bonds

are

being

is¬

retirement

the

company

outstanding
and
to
reimburse
the
treasury of the company in part for uncapitalized expenditures made for the re¬
now

tirement of

other

of 3Vis

series

the

BURRILLVILLE RACING

its

issue

/Offering—The

public

price

mortgage 3lA%

bonds,

the
exten¬

series

due April

1, 1966, and $24,916,000 refund¬
mortgage 3'/»% bonds, series C, due
1966.
Underwriting—The names will be fur¬
nished by amendment.
The company pro¬
poses to offer the bonds for sale at com¬
Room

2315,

11:30

will

195

receive

bids

Broadway, New

a.m.

Dec.

York,
1945.

10,

be¬

Registration Statement No. 2-5996. Form
(10-9-45).

A-2.

offering
mined

dates

are

have

but

ago,

not

been

unknown to

common

INC.,

Oct.

for

statement

stock

235,099

Offering — Present
Crosley Corp. as of
sold

stockholders

(no

shareholders
record

Nov.

the

and

Corp.

Crosley

who

their

shares
to
Aviation
Corp. are
right to subscribe for shares of
Motors for the same number of

the

Crosley

those

held

Crosley

Corp.

at
The

$6 per share.

Rights expire Nov. 27.
subscription rights are exclusive of a

cer¬

tain group who have already subscribed for
the stock.
Any stock not subscribed pur¬
suant

rights

board

directors.

may

be disposed of by

>7'

Underwriters—No

the

EUREKA

agree¬

18 filed
shares

has

issue

offered

money.

offered

Oct.

cisely the opposite course of the
one it proposes. This course would

Federal

budget

into

Congress
bring the

balance

its

remaining

//•' •-'/

CO.

for

statement
stock

May 31
990,793

filed

(par $1).

issue

June

7.1-u -I

the shares registered Ben¬
Co., Inc., parent of Red Bank, will
209,970 shares in return for a like

number of

shares loaned

the

registrant

connection with the acquisition of 54%
the outstanding stock of Seatex Oil
Co.,
Inc. *
In
addition, 150,000 of the shares
registered will be issued to stockholders of
Federal Steel Products Corp. in exchange
of

all

Inc.,

of Federal's stock,

the sole

Bennett

underwriter

Bennett & Co.,

not so acquired
to the public.

are

INSTRUMENT? CORP.

and

ferred

260,000 shares of common,
dividend rate on the pre¬
be filed by amendment.
The

will

registered Includes 100,000 shares
for issuance upon conversion
of
preferred. The 160,000 shares of com¬

common

reserved

the

stock

issued

moment."
I

and

outstanding

TOWING COMPANY on July
registration statement for $500,serial 4>/2%
equipment trust certifi

filed

000

issue

Offering—The

Nov.

price

Details—See

issue

July

19.
Offering—The price to the public of the
different
series
ranges
from 99 to 102.
price

average

the

100.47.

Pittsburgh,
Louis,

public

■

Oct,

Nordman

♦

GAS

TRANSMISSION

filed

registration

filed

Offering—The
new

$72

(par $50)
dividend in

Underwriters
Stone

Lehman

be
of

y .7

SECURITIES

Details—See

common

issue

Offering—The
$7.50

per

;7,i";

CORP.

accepted

underwriters

Inc.,

par

payment.
are

Blyth & Co.,

Inc.,

Corp., Kidder, Peabody & Co.,

Brothers,

Mellon

Securities

Corp.,,

Corp., White, Weld & Co.,
Langley & Co., Paine, Webber, Jack¬
son
& Curtis, Central Republic Co., Inc.,
Bosworth, j Chanute,
Loughridge
&
Co.,
George H. Clifford, H. Gardiner Symonds
W.

and

Robert
be

Hanger.
The
without
'

VALLEY

OSAGE

filed

registered
registrant

class

CO.

are

the

and

per

sold

price

crease

Oil

York,

Foun¬
...

16.
the public

share.

Underwriters—The

New

Gilcrease

issue of Aug.

•-

by the
issued

are

Details—See

143,659

the

dation.

$12.50

Aug.

for

being

are

sold

Thomas

•

being

30,191

and

outstanding

behalf

stock.

113,468

compensa-'
•,

registration statement

and

OIL

issue

new

underwritten

Co.

VIRGINIA

stock, par

price

Oct.

the

Sept.

for 200,$5.
,
.
'
:

;

public

220,000

underwriter

Texas,

165

Gil-

Broadway,

Finance

fiscal, agent.-

Co.,

At¬

RED

filed

LAKE

Details—See

MINES,

registration
of

capital

(Canadian).
:i

issue

LTD.

statement

stock,
'

Aug.

par

for

SI1

Offering—The offering price to the pub¬
is 60 Va
cents Canadian
or
55
cents

lic

United

share.

Ga.,

class

Union Securities

statement

Underwriters—General

lanta,

Old

cash

The

—

Webster,

First Boston

share.

may

lieu

the

offer

stockholders

common

per

3tock
and

will

company

its

common

rata

pro

registration

state¬

96,000 common shares, par $5.
S3 Details—See issue of Oct. 25.
/.•y//,///5/?

June

000

St.

Co.,

for

ment

Underwriters—Burr & Co. heads the un¬

GENERAL

given

Y /: r :77.Y ,7 ./.
Cunningham, Inc.,

John

and

Mo.

Offering—The

-5
will

;
public

the

be filed by amendment.

cates.

and

being sold by certain stockholders.
Details—See

the SEC.

ROBERTS
11

Oct.

The

ad¬

Inc., Dallas. Texas.

pended now pending before

will

geologist, offi¬

registration statement for 60,000
cumulative
convertible
preferred,

$1.

Co.,

Stop Order Hearings—Stop order hear¬
ings to determine whether the effectiveness
of
registration statement should be sus¬

par,

&
an

100,000 shares of common regis¬
The balance of 530,823 shares of

tered.

CO.

Ltd.,

commitment

195,000

remaining

par

be to take pre¬

the earliest practicable

firm

Finance,

the

GENERAL

offer the
preference
stock

announcement by

Sept. 28 filed
for
2,596,000

deter¬

exchange

determination to

OIL

TENNESSEE

Oct.

generally

derwriting group. /7

agreed

National

agreed to take

tion-77.7'

privilege of exchanging
convertible preference for common on the
basis of 4J/a_ shares of common for each

of its

purchase
480,000
shares
at $1.23
per
share, and has an option on 1,920,000
shares
at the same
price.
The offering
is to be made among the shareholders of
Ventures, Ltd., Frobisher,
Ltd., and La
Luz Mines, Ltd. (Canadian companies)
at
$1,95 per share,
and to Eureka stock¬
holders.
Price is expressed in terms of

the

for the Bill would

Mines

purchased by the company
and employees.

issue of Oct. 25.

convertible

statement
par $1.

into

entered

The

registration statement for 83,547
prior preferred stock, par $10,
shares of common, par $1.

Offering—Under

taken

Underwriters—S.

cials

whose

Na¬

stock

Offering—Of
receive

into.

CORP., LTD.,

registration

CO.

common

«•

BANK

common

nett

shares of common,

us.

CAR

one

Co.

holdings

not

Details—See

The

underwriting

ment has been entered

$20
BANTAM

each

Light

Power

for various obligations of the registrant.
Underwriters
—
Principal
underwriter

par).
Details—See issue of Oct. 25.

25 filed

AMERICAN

Pennsylvania

for
&

will

right

the basis of

stock being registered have heretofore been
Issued to Bennett & Co., Inc., in exchange

MOTORS,

registration

''.....

...

option not be
exercised by
Toronto Mines Finance, Ltd., the company
itself will make the offering, as aforesaid.

We present below
a list of
issues
whose registration statements were filed
more

stock

the

CROSLEY

filed

Should

DATES OF OFFERING
UNDETERMINED

National

'.V;

I.( underwriters.,:;

will

days

common.

Light Co."
1,818,700

for

Canadian

twenty

ditional

Offering—Toronto

and

Power

and National has

foi

receiving a commission of $25
Underwriters—Barrett & Co., Providence,

Details—See

bidding

to>

derwriter

ing

petitive

outstanding

new

registration

five

Dec. 1,

offering

share.

$10

common.

common

RED

..77-7

and

refunding

Will

Syr

Electric Bond & Share Co. has

its

ASSOCIATION

Sept.

holders

Underwriters—None.

unit consisting of $500 of debentures and
shares of stock is $500 with the un¬

improvement of telephone plant.
The bonds to be retired are the $29,652,000

fore

sub¬

take the number of shares proportionate

(46.56%)

Aug.

Details—See

CO.r

1,818,700

stockholders

the

Power

the

28 filed a registration statement
$1,000,000 6% 20-year debentures due
Sept. 1, 1965, and 10,000 shares class A
'stock (no,par),

;

LIGHT

and

stockholders.

100.

new

offer

common

dated

for

bonded indebtedness,

acquisition of property, completion,
sion

Co.'

entitling,

the

entitled

tional

Aug. 22 filed

$85,000 of 3y4s at 100 and $273,000

debentures
in connection with the

two

1,818,719 shares

par

stock

all

given

by amendment.

sued

new

Warner

POWER

Pennsylvania

held.

bonds

former
—

common

underwriter.

registered

such

turn

July 2, 1945,
djje serially Jan. 1, 1946 to July 1, 1957.
Details—See issue of Aug. 30.
Offering,— The
offering
price
to
thi
public will be as follows:
$82,000 of 3s

1, 1985.
—

31,001 Vi

Arthur

warrants

fund

TELEGRAPH

registration

40-year

the group.

PACIFIC

'■*
:

present

Issue of Sept. 27.
Offering—National Power & Light Co.

registration statement for $440,000 first
refunding
mortgage
serial
and
sinking

statement

Details—-See issue Of

20.77
offer

Details—See

Rights expire
(EST)There -are no

p.m.

stock,

Oct.

Sept.

common

the

per

INC.,

for
150.000
shares
6 %
cumulative
pre¬
ferred stock, par $10, and 150,000 shares of
common, par

this offer.

PENNSYLVANIA
on

par $1.

Offering—Holders

•

record

filed

CO.

utilize

make

principal

on; Sept. 28 filed
registration statement for 166,063 shares

Sept.
will

Underwriters—J.

Underwriters—B. C. Ziegler & Co., West
•Bend, Wis.; is named underwriter.

•

FLEMING-HALL

held

common

amendment.

ment.

$50.

r,y7/7

right to subscribe

basis

have

Would

amend¬

BARIUM/STEEL CORP.,

BENSON HOTEL CORP.

will

stock

$60 per share, tha
unsubscribed shares will be sold to under¬
writers
at
$58.30
per
share.
Company

least $3. per share.

underwritten.

AIRLINES, INC. on Oct. 31
registration statement for common

issue

holders

ALASKA
filed

the'

public of

common

Offering—Company

oamed

ment.

the

MANUFACTURING

common

per share.
Unsubscribed shares shall
be sold at such price as fixed by the board
of directors.
'■7;

Nov.

preferred

registered 31.085
par

Details—See

■•77

2Va

without

preferred

each

and

c°.

NASHUA

price

-V.

and

The

establish

Aug.

par.

price to

Light

holders

es¬

and

$52

mon

believes

issue

Underwriters—Group headed by Paine,
Webber, Jackson & Curtis; Stone & Web¬
ster and Blodget,
Inc., and Mitchum, Tuliy

sold

underwriters, but corporation reserves the
right to sell any unsubscribed shares at a

MONDAY, NOV.

Details—See

Government is responsible for

CO.

share.

per

contemplated

not

under

Plan

Purchase

will

directors

1975,

$103.50

Plan.

Purchase

Stock

Underwriters—It

the

In addition, a total of 76,310
being offered to officers and

are

employees .at

that

statement'

mortgage bonds, 3%
and 47,104 shares of $2'

stock,

TELEPHONE

registration

Offering—The
bonds

public

will

the

I
7

first

Details—See

■

Sept. 6.
rOffering—The
company
has ' granted
holders
of
its
preferred stock rights
to
subscribe to the new preferred at the rate

purchased

rants

the

95,544'

amendment

stockholders

subscription, warrants, the price and ratio
to be supplied by amendment.
The shares
not

\y\v J// Y:7..—77'
of

Underwriters—To

number

filed

due

preferred

cumuli

corporation.

FARMS

Details—See

„;<i

common

supplied

offered

by
Se¬

and 375,971

Oct.

ASSOCIATED

has

$3,400,000

Beries

\ '

registration statement for 50.000
cumulative and participating

on Oct, 29

:/:/
Detail8-~See issue of Nov. 8.

Offering;—A

statement

number

filed

Union

of Government

spending in fright¬
ening private capital away.
The

TRAD¬

11.

efforts

stock, without

selected

WESTERN AIR LINES, INC.,

he believes,
widespread psy¬

Government

Oct.

Sept/

$5.

con¬

registration

Details4-See issue of Nov. 1..

amendment,

the

ARDEN

12 owned, by directors.
y

guesses,

set

per share.
Underwriters—The

all

common

' 4

the; people's will. You will see us tablishing conditions under which
embarking on projects of na¬ maximum production
and
full

tionalization ; on wide all-embrac¬

and constitute

Corp.,

potentially

chological forces that would fal¬
sify them. The Bill assumes that

passage

;:;V^;v; "

are av¬

particular

the percentage of error was
higher. "It is obvious that er¬
rors
of this size, or even much
smaller
," Mr. Hazlitt con¬
cludes, "would render the fore¬

have not stood up to our

and

that in

far

casts

afresh.

means

years

start
facing
the future with courage and a
determination to win through. We

the;iwar

years

The fact that these

150%.
erages

country we are just like

man.

seven

same

re¬

ruined. He has to start afresh and
it's

outstanding

Proceeds—Tl\e

there was 'an
average error in estimating ex¬
turning from the war finds his penditures of 23%. The error in
home blitzed
and
his business
estimating net deficits averaged
Many

easy.

the

filed

receipts of about 10%.

filed

Offering—The„ price

Offering-—The price to the public will be

Details—See issue

are

Business

Oct.

tered

services.

(Continued from page 2324)
Mr. Hazlitt points out, there was

CORP.

par

Underwriters—None named.

CORP.

PALESTINE

CO.

registration statement for

INDIANA

AMPAL-AMERICAN

N. Y.

of
fight

two

for

through

filed

capital stock,
Details—See issue of

mentioned.

$5.50

advantage

it rather than scramble and

prior preferred and
for' each share of

CAMDEN FORGE CO. on Oct. 29 filed a
registration statement for 177,318 shares of
stock, par $1.
The shares regis¬

Telegraph

for larger

common

Address

abundance
we should

preference.
Underwriters—None

ING

NOV.

GRAY "MANUFACTURING
28

vertible

un¬

borliness.- That where science has

such

one

at the discretion of the

SATURDAY,

■

preference under Op¬
Option B they may ex¬

Under

statement for 400,000 shares of 4 %
preferred non-voting shares.

CO.

effective,

convertible

•

ative

$75,OCO,000

other.

twenty

BEC. '■»

ciple

than

become

course

less accelerated

na¬

our

prosperity and good neigh-

placed

normal

tional life of the Christian prin¬

the

believe

us.

tional

registration

less

of
A.

change
convertible
preference
for
prior
preferred and common stock on the basis

grouped according to dates
registration statements will

which

whose

filed

were

ago,

We have the memories of

adventure.
Above all things we share the
things of the spirit. Both of our
nations hold dear the rule of law;
the conception of freedom and the
principles and methods of democ¬
racy; and most vital of all we
acknowledge the validity of the
moral precepts upon which our

of people living in the world at a
standard of life which is the same

foundations

days

have the language of Milton

ferson.

exemplified in the United States
an immense output
of'goods and commodities of all
kinds. We in our turn show the
are

great

our

We have much in

comradeship in

has resulted in

results

eight

Shapespeare, of Burke and
Chatham, of Lincoln and of Jef¬

Yet there

and

methods of production so strongly

same

between

racies.

good

FILINGS

Issues

statements

example of

democratic principles. I hope that
there will be ever closer friend¬

wish to have prosper¬
customers. The advance in

ous

Commonwealth

offer

nev^ constitutions have
been adopted or are being worked
out, all based on the extension of

Move-

without distinc¬
tion .of fade or creed, but also
from an entirely practical stand¬
point. We seek to raise the stand¬
ard of life of our people. We can
only do so by trading with the
traders

British

good.

common

and in the Colonial Empire
or
nine

only

List

Even

Hell out¬

our

the

proaching, full self-govenrment.
during the war India was
given the opportunity of taking
complete charge of her own affairs

towards

We Relieve that

cannot make

own

for

many nations some of which have
reached, others of which are ap¬

'Foreign Policy
is

tion

well-run town, with citizens

Empire

Services.

vvWhat

NEW

•

good terms with them all

ating

Fighting

diverse in character but co-oper¬

great

from

men

of New Security Flotations

all alike.

and in close friendship with some.
I hope to see a world as orderly

that impelled me

join the Labor Movement

the

It would be

we were

sympathy
through
sharing their religious convictions
although perhaps estranged by
their political views.
Yet T may

self Prime Minister of Great Brit¬
ain.. The

Calendar

the

the townsfolk. To some of
neighbors I may be drawn
closely by ties of relationship or
by old memories; for others I may

and

many years

have

among

our

society

our

peaceful

I became convinced

must build

essential

In a town there may be a great
diversity' of character" and habit

ijiondon. I learned

hapd the facts of poverty in

differ

„

district in . East
from it first

poor

other

and

should

dull world if

constituency, Limehouse

very

build

that

unity in diversity.

ing-, law, just down from Oxford
University, I visited for the first
-—a

widest toleration recognizing that
our
aim
is
not
uniformity but

May I .refer

tomy
own; experience 4- forty
years' ago as a young man study¬

time my

other

institutions

own.

are

world

each

whose

our

2367

States

funds.

Underwriters—Willis
New

York.

Burnside

& Co.,

THE COMMERCIAL &

Chas. W. Scranton Has

INDEX

Washington Staff Under Got. M. Hanson

IBA

Thursday, November 15, 1945

FINANCIAL CHRONICLE

New Phone Number
Chas.

Scranton & Co., 209
Street,
New
Haven
7,
Conn., members of the New York

Church

Stock

Exchange,

that

announce

effective Nov. 13 their direct New
York-New

Haven

ire

was

changed to CAnal 6-3662.

New

England Public Service

Bendix Home

Appliances V

Du Mont Laboratories

Air

Cargo Transport
Majestic Radio
(J. S. Finishing

;

Kaiser-Frazer

M. S. Wi EN & Co
1

■

ESTABLISHED 1919

Membets N.Y,'Security Dealers Ass'n

40 Exchange PL,

Oceanic

Trading Co., Inc.

Amalgamated Sugar

Globe Aircraft

Artcraft Mfg.

Intl Resist 6% Pfd. & Com

Baltimore Porcelain Steel

Telecoin

Du Mont Laboratories

Wilcox &

Corporation

boston 0, mass.
Boston

New York

Hubbard €442

Gay

Hanover 2-7913

Foreign Securities
flil

1 HI

-MARKETS

Kobbe, Gearhart & Company
Members

New

York

Teletype
1-971

f!ARL MARKS & PO- iNCe

NASSAU

FOREIGN SECURITIES

Association

YORK

NEW

Enterprise 6015

Teletype
BS 328

specialize in

;

•

new york

■

Investment Trust Issues

Stocks and Bonds
I
with a New Eng. Market

Public Utility

BELL teletype

philadelphia telephone

telephone

REctor 2-3600

111 Industrial Issues

Security. Dealers

STREET,

Insurance and Bank Stocks

INCORPORATED

trusts.

Majestic Radio & Television

Clyde Porcelain Steel

investment

leverage

Lear Inc.

Bendix Home Appliances

to dealers interested in high

Ironrite Ironer Com. & Pfd.

Bendix Helicopter

HII

"MZK

suggestV&::. I|l||

Trading Markets in

Com* & Pfd

HA. 2-8780

' -. Teletvae N.Y. 1-1397

N.Y.S

1-576

TEXTILE SECURITIES |
Securities

specialists

Telephone

50 Broad Street

New York 4, N

•

Frederick C. Adams & Co.

HAnovor

CO. Inc. CHICAGO

AFFILIATE: CARL MARKS &

2-0050

Specialists in
New

/:;

England Unlisted Securities

24 FEDERAL STREET,

BOSTON 10

Established la 1922

RED ROCK BOTTLERS, Inc

Tele. BOston 22

HAXcock 8715

Tel.

Copy of company letter to stockholders,
dated October 20, 1945, outlining
Plan of

TYBOR STORES

Proposed International Expansion

V.,

•

available

request.
Retail food and

chandise stores,

plant, milk pasteuriz¬

cream

" '

;

ESTABLISHED 1914

ing plant, bakeries; else f ocs
rcneral wholesale and job¬

Specialists in Soft Drink Stocks

bing business.

Trinity Place, New York 6, N. Y.

Teletype: NY 1-375

Telephone: BOwling Green 9-7400

general mer¬
theatre, Ice¬

***

and earnings,

sales

Expanding

in each year
incorporation.
Manage¬

dividend payments
since

prominent.
tow-priced speculation.

ment

NEW ENGLAND

Recent

New England Local Securities

Write

WALTER J. CONNOLLY & CO.
;

INCORPORATED 1923

;•

24 FEDERAL STREET, BOSTON
Telephone Hubbard 3790

•

'.v,'

•

; |Bell

./ . :|,|.' |

BANK

—

' |';||.;<

10, MASS.

PUBLIC UTILITY

—

-2

Price..........

Specializing in Unlisted Securities

7.".

y,
J. :

or call for recent
analysis TS.

INSURANCE

INDUSTRIAL

—

REAL ESTATE

State

148
T=I.

System Teletype BS-128

CAP.

St.,

0425

Boston 9, Mass.

Telephcne

Teletype BS 259
HAnover

2-7914

LUMBER & TIMBER

Columbus

Auto

Parts

SHOE

RATIONING OFF

BONDS, PREFERRED AND COMMON STOCKS

WANTED

Sunshine Consolidated

Pressurelube, Inc.
U. S.

Radiator, Pfd.

Smith

BOUGHT

Common Stock

'
;

Wesson

1941

2.78

Circular

120

Broadway

New York 5

Telephone COrtlandt 7-0744
Bell Teletype NY 1-836

___

208 So. La Salle

"•I'll

Sti, New York
BO

9-4613

QUOTED

Blocks
of Securities

St., Chicago 4

4.41

Upon Request

Amos Treat & Co.
40 Wall

—

REMER, MITCHELL K REITZEL, INC

$2.66

1942

1943___

SOLD

I. ;:

EARNINGS PER COMMON SHARE

1944___$4.01

—

WESTERN

I;l'SK,;■

RANdolph 3736 -V " '

UNION

TELEPRINTER
'

"wux"

|'.|l'-

BELL
<•/

' '

SYSTEM TELETYPE

CG-989

Hill, Thompson & Co., Inc.
Markets

;l:;v|l| I:
r

5, N. Y.

120

and Situations for

Dealers

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : November 15, 1945, Vol. 162, No. 4438, Section 1

FRASER