The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
NOV,!9 1943
Final
New York, N.
Number 4230
158
By Dr. MELCIIIOR PALYI, Chicago
From
Monetary Inflation To Price Inflation
Prices Will Ensue Unless
in this country is approaching
$200 billions.
This includes the media of exchange in cir¬
culation (outside the Treasury and the central bank) and
deposits in savings institutions.
volume of potential money con¬
sisting of short-term obligations of the Treasury (outside
the banks)
^
$
ligations
Limitation 0! Profits On
'is
What
Transactions In Securities
the
is
ris¬
ing at the
monthly
some
continue
do
d
in
so
to
Dr'Melch5or Palyi
Federal deficit to continue for
(Continued
on page
1998)
a
material
with
and
reference
of
dealer
to
activities in the States of Connec¬
ticut, Michigan and Missouri
Connecticut,
gan,
ap¬
in this issue.
1995; Michi¬
page
1996; Missouri,
For index
see
1994.
2020.
page
no
s
Rwy.
in
o n a
hour
the
1
e
v
1
m
-
the
Ne.io
York
tment,"
Professor
said
The
impend¬
ing victory, he
laid, had freed
Russia, and he
free¬
forecast
"Regardless
Prof. S.
H. Slichter
of
what
the
National wage
policy is, regardless of whether
like it
be
or
we
not," he added, "it must
applied without fear
or
favor to
all groups, large and
Geneva
or
powerful.
of any
NEW YORK 4, N.Y.
CHICAGO 3, ILL.
135 So. LaSalle St.
25 Broad St.
State 8770
2-OfiOO
Teletype NY 1-210
Teletype CG 1219
Transport
on page
Established
INVESTMENT
64 Wall
Prospectus
1927
SECURITIES
HUGH
PHILADELPHIA
Albany
Buffalo
Pittsburgh
Williamsport
Troy
Syracuse
Dallas
Trading Markets, always
on
LONG
W.
Request
and
i
.
COMPANY
INCORPORATED
Street, New York 5
BOSTON
Actual
15 EXCHANGE PLACE
634 SO. SPRING ST.
JERSEY CITY
LOS ANGELES
United
in
scope
BONDS
Bond
which
would
his
be
con-
•
,Paul Mallon
ception of democracy.
he
But
attributed
his
to
lectivism
of
to
victory
He said the col¬
Russian
be
a
pooling
labor
and
:
For
■
INCORPORATED
EXCHANGE
Members
N.
Y.
Security Dealers
45 Nassau Street
Tel.
REctor 2-3600
Philadelphia
Ass'n
of
implements,
land,
harvest,
a
pure
New York 5
Teletype N. Y. 1-576
Telephone:
Enterprise 6015
REYNOLDS & CO.
120
York Stock Exchange
Broadway, New York 5, N. Y.
Telephone:
industry,
said
he
NY 1-635
his
so¬
cialist system equally had proved
its superiority in producing the
weapons
sition
of
from
in its swift tran¬
to war, its re-
war
peace
(Continued
2015)
on page
CHASE
THE
BANK
service with Chase
correspondent
HARDY& CO.
;
facilities
Members New York Stock Exchange
Members New
York. Curb Exchange
30 Broad St.
New York 4
Tel. DIgby 4-8400
Member Federal
Deposit Insurance
Corporation
Tele. NY 1-733
Virginia
Public Service Co.
6% & *7% Preferred
"
■•
*Dealt In on N.
:
■
lit
Y. Curb Exchange
HART SMITH & CO.
Members
New
York Security Dealers Assn.
52 WILLIAM ST., N.
Bell
Y. 5
HAnover 2-0980
Teletype NY 1-395
REctor 2-7400
Bell Teletype
com¬
V. ;,,.
-
^
Phonograph
Members New
nec¬
This collectivism is
food.
Broaden your customer
Idaho Power
Kobbe, Gearhart & Co.
system,
because it had furnished the
essary
had
farms
superior
a
pri¬
collectivist-
own
socialist system.
,
Bought—-Sold—-Quoted
people,
d w n
Brokerage
Common
TELEPHONE-RECTOR 2-6300
be
to
OF THE CITY OF NEW YORK
Emerson Radio &
Securities
N.Y.
govern¬
:hosen by their
Cigar-Whelan
*
.
in
Over-The- Counter
14 WALL ST., NEW YORK 5,
if Europe un¬
ments
PREFERRED
'
of national
NEW YORK STOCK
cupied nations
der
2002.)
Service
BROKERS and DEALERS
BULL, HOLDEN & CQ
con¬
quered and oc¬
anti-inflationary policy."
Professor Slichter's address, de¬
before the Academy of
livered
R. H. Johnson & Co.
-
Rep.
for
small, weak
That is the keynote
and Dealers
Members New York Stock Exchange
and other Exchanges
-
dom
munism.
chaos."
SECURITIES
Curlx
Hirsch, Lilienthal & Co.
MEMBERS
ly, confidently.
proved
re a
for Banks, Brokers
HAnover
them
calm¬
marily
Exchange
London
imple¬
clearly,
s.J'
e
Slichter,
"would quick¬
ly produce
(Continued
NEW YORK STOCKS, INC.
Air
Light & Pwr.
on
He
mented
NATIONAL
Preferred
Dealt
ments.
t
handling
2020)
on page
few
a
Common, W. I.
United
generalized text of
docu¬
those
to
pressure
for
preferential
known
(Continued
gain
"Yielding
BUT
quantity, so to speak. Consequently, if an investor
is interested in buying 100 shares of the common stock of the
ABC Corporation (or any other stock or bond) he can, if he
sees fit, readily "shop around" and "check his market" to
determine if his dealer proposes doing the right thing by
him.
And he does not even have to go out of his home or
office to do this.
He can do it right over the telephone. The
reason, of-course, being that 100 shares of the common stock
of the ABC Corporation is a known quantity, both he and
any dealer knowing precisely what is sought and that holds
true irrespective of whether the dealer is located in New
in order
for
ONE big differ¬
lies in the fact that dealers in securities are
at the
cents per
NOT IN THE WAY THE PROPONENTS OF PROFIT LIMI¬
TATION WOULD HAVE YOU BELIEVE!
men
ad d i t i
denying the fact that dealers in securities
handling rugs, furniture, jewelry or what have you.
.
United Lt. &
to
invest¬
to
sup¬
from
front
different than merchants in other lines such as those
are
a
items
some
the
are
There is
cree.
ence
In This Issue
successful in this direction that
plies
showing signs of swallowing this utterly
doctrine, as witness the NASD's 5'/o profit de¬
fallacious
certainty how long this
pear
so
ment dealers
process will last. As a matter
of fact, we expect "some"
interest
withhold
view to
a
have been
t ion.
Special
here a better understanding
Hull-Stalin-Eden declara¬
the
tions than the
willing
justifying their attempts to dictate to them
regarding what profits they may or may not take when con¬
summating transactions in stocks and bonds. • Indeed, they
Nor is there
any
of
Discussing "Wages and Infla¬
tion," Sumner H. Slichter, Lamont
University Professor, Harvard lJnL
Versity, on Nov. 10 declared that
"the
real
danger
of
inflation
springs from the possibility that
the
National
wage
policy will
be
wrecked
by
the
insistence
of
aggressive
and powerful
groups
upon
preferred
treat¬
ment."
According to Prof. Slich¬
ter "experience shows that some
groups
in the
community are
different than merchants in other lines of business
are
with
for the
u r a
variety of ways,
a
ties
will
and
ple
Level
.
persistently nurturing,
the false notion that dealers in securi¬
The SEC Bureaucrats have been
billions,
$5
Smaller
Following—Holds
on
short notice.
The lews
By PAUL MALLON
Wage And Price
Of 50 Or 60% Above Pre-War Desirable
Gap"
Copy
a
Stalin's victory speech gave peo¬
With Germany Will Terminate In Spring With
Meed Does Net Exist For Forced
re¬
deemable
rate of
War
"Inflationary
ob¬
its
flood
Feels
Cents
mi
ffii
Wage Policy Is Wrecked
Groups Upon Preferred Treatment
deposits as well as
It also includes the large
60
Behind
By Insistence Of Aggressive And Powerful
bank
more,
Formula Is Violated No Dangerous Rise In
Steel"
I
The Mews
Heart Of Inflation Problem—If "Little
Sees Wages As
The voluipe of money
and
Price
Y„ Thursday, November 18, 1943
Wages and Inflation
Outsmarting Inflation
.
2 Sections-Section
S. Pat, Office
Beg, U.
Volume
In
ESTABLISHED OVER 100 YEARS
Edition
New York
Montreal
Toronto
IRA HAUPT &
Members
of
CO.
Principal Exchanges
111 Broadway
Teletype NY
REctor 2-3103
1-1920
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, November
18, 1943
'.Trading Market§ in:
Emerson Radio
We
Maintain Act
United Gas
Markets
ABiTIBI PULP & PAPER 5's
Residuals
Common & Preferred
G
1920
Members
40
New
York
Security
,
-
Members IV. Y. Stock
55
|v[c ponnell & To. Steiner, Rouse & Co.
Members New York Stock
Members
Neio
Exchange and Other Principal Exchanges
Dealew A«'n
BROADWAY
115
Telephone
A
NEW YORK 6, N. Y.
BArclay 7-0100
Teletype
NY
120
25 Broad
York
Stock. Exchange
York Curb Exchange
New
■
Exchange PL. N.Y. 5 HA 2-2772
Osgood, Common
Walworth Pfd.
Goodbody & Co,
.
Birmingham Gas.
Warren Bros. Class "B" & "C"
1
61
GREAT LAKES PAPER 5's
ICING
&
Established
Alabama Mills
Remington Arms
•
CONSOLIDATED PAPER 5Vi's
Missouri-Kansas Pipe
Cyanamid Pfd.
Botany Pfd. & Common
'''/%/■
53
—
BROWN CO, 5'S-59
Tennessee Products
American
ire
■
Tel.
REctor
Direct wires to
2-7815
Reappraisal of
Axton-Fisher Tob. A & :B
NY 1-1557
NewOrleans, La.-Birmingham, Ala.
BROADWAY, NEW YORK
1-672
American
branch offices
our
Util.
Serv.
New England I\ S.
Du Moot Labor.,
Howe
Common
Scale, Com. & Pfd,
Announcement
that
McGinnis
Declares
Kearney & Trecker
Securities
Babies And Not Too
Mayflower Hotel, 5's & Com.
New York $c Richmond Gas, Pfd.
Railroad
Are
Not
War
has
James. Blaine
been
made
Walker,
New England P. S. 7% PI. Pfd.
Peoples
New
Expressing himself as optimistic as to the future of railroad New. York Stock
Exchange. Prior
securities, "whether border-lined, high-grade or defaulted issues/■; to/his, recent service ih govern¬
Patrick B. McGinnis,' of-Pflugf elder *'
Bampton & Rust, of Ne^v ;Yori:r ment he had, been with Stone
at the conclusion of
an address in Los Angeles on Nov.
5, in/which he; & Webster and Blodget., Incor¬
Reappraisal of Railroad Credit," summed up his present¬ porated;'
yd/, .'/J;
.-•/• Vv v
follows:
/// / //■/'
:"yL/' v.iV.'j-/-'.-• L/y'L'
.
Members' Baltimore 'Stock Exchange
Broadway, N. Y.'S
120
show
the
Teletype N. Y. 1-1227
prices are
high, they
not
tion
Common
has
t
Preferred
of
Preferred
pointed out that there is
es-
b 1 ished
a
tainly again
through regu¬
the
Members Nevi York
has
reor¬
New York 5
31 Nassau Street
Teiepiiorie COrtlandfc ■ 1-4079
Bell Systeoi Teletype MX T-1243
not
always been
that railroads
purchase
fear of
no
recognized
the
of
has
bonds
Curb Exchange,
I have
be any under
never
ganization and
where
cut
we
even
the
our
if
debt
be
would
have
of
cov¬
with
Patrick
B. McGinnis
then
I
plished - what $ I
.
ws
ered:,- I 'have
::r
shown you the increased efficiency
of management over all 'the old
•'
-4
came
"M
••
.
Mr.
Orders
Production
vision
McGinnis
(Continued
,to
-
-
'•
accom'1
v
-
■
.
»•/
delivered * his
on
page
.2003)
if
Broadway
Bell
WHitehall 4-8120
System Teletype NY 1-1919
Officer
of
the
Board, having
the
over
Central States Elec. (Va.)
War
preparation
Common
;;
•
super¬
Indiana Limestone
issuance of 'the Conservation and
S. E.
& Prefevreds
and
Limitation orders of the W. Pi B.
6s, 1952
Fred F. French
Beardsiey Y/iih
Securities
iascn, Ftloran & Go.
4 Special ■
cer¬
have / accom¬
Production
Industry Advisory Committees.
recently Mr. Walker has
been
to
Tlie Financial Ciircnick1)
-
CHICAGO,
ILL.
George E.
become associated
.
you.
Exchange
More
leff any those thoughts Beardsiey has
If I have
War
Pfd.
Members New York Curb Exchange,
65
in; Washington. His first
service there was with the Bureau
.
will
still
effort
war
the
Mr. Walker
Pwr.
Me mbers New York Slock
Board
tainly been greatly handicapped.
back,
go
the backbone of
are
transportation system of this
country and thai without them'
the debt down
Vanderhoef & Robinson
and
war
Section 77.. in my opinion., V /v
"Last but not least. I think' it
and
lation.
point
bankruptcy, that is. we have no
possibilities of bankruptcy. There
may be fears of it There will cer¬
rates
been
that
'United Cigar Wfaelan
less
that
stabiliza¬
MacMillea Co,
problems after the
problems than most.
more
with
spent
to
out that the railroads will have no
war
babies,
the
periods, and I have tried
you
not
are
Taggart Corporation
The last two years
"I have tried
to
WOrth 2-4230
Bell
.
Light &
Dumont Lab.
Edward A. Purceli & Co.
offered hA
ments as
Pfd.
6% PI, Pfd.
Jr.,
has become associated with Gold¬
man/Sachs & Co., 30, Pine Street,
York City, members of the
High
Exchange
St., New York 4, N. Y.
HAnover 2-0700
with
.Mason,
•
—
Moran
Frank C. Masterson & Co.
Members
South La Salle Street. Mr. Beards-
York
New
64 WALL ST.
Co./ 135
Curb
Teletype NY 1-1140
Exchange
NEW
■
,
YORK
5
HAnover 2-9470
ley-was formerly with Kneeland
& Co. in
their
Miuticipal Depart¬
Prior thereto he
ment.
was
with
Thompson Ross Securities Co.
Amer. Aviation
Common /
•
W. L.
Douglas Shoe
Prior
Expand Private Enterprise To
Unsmployineiif, Lewis H, Brown Proposes
Preferred
Urges Decentralization Of Federal Government
6a,. &. Ala* R. R*
5s,, 1945
C/D
'
1952 '' '
H. G. BRUNS & CO.
20 Pine Street, New York 5
Telephone: WHitehall 3-1223
Teletype .NY 1-1843
rather
t
men
than
the
Bak.t Com, & Pfd.
has
and
find
-Norfolk
&
Southern
R,
SR.
Peoples Light & Power, Pfd.
Punt,a
Alegre Sugar
Vertientes-Camaguey Sugar
highest
in
ft
X. Security Dealers Assa.'
Wail Street, New York
5, N. Y.
Tel;
HAnover
point
history and
when
our
sume
ple are aroused
dreams
2-4S50
Eell.,Teletypes—NY 1-1126
&
1127
ment
s u
as
11
new
prod
power
free
a
of
of
u
re-
the
that
trend
our
Lewis H.
Brown
leaders
already are
talking in terms of curing unem-
'
6s, 1931
Associated Gas
1
Teletyoe
WSitefaaU 4-48t0
NT
will
inevitably'have
toward
more
bureauc¬
and dictatorship of the Fed¬
Government over.the;individ-
(Continued
&
Co.,
45
Mont¬
Beane;
Midland Data Available
land
Utilities
Debenture
on
Siitisrj, linEarn & Co.
Members New York Stock
Exchange
St., New York 4, N. Y.
'
Tele.
NY 1-210
•
PITTSBURGH
•
RAILWAYS
•
SYSTEM
of
the reorganiza¬
completed with Midland
Estimated net earnings
tor 1943
~
after taxes
.
.
.
.
$4,400,000
(Equivalent lo owr 11// on total bonded
indebtedness)
equivalent
.
.
.
.
.
12,488,000
Panama
TRADER
Coca-Cola Bottling
WANTED
Coca-Cola Bottling
ilich held bonds
CURRENT
OF
Salary
or
Commission
.
.
;
,
MARKET
12,852,555
PRICES
BONDS
25% to 40%
Basis Or Both
Preferred
Bought-—Sold—Quoted
6s
v*//:"y United. Copies of this interesting
page 2014) / - / analysis may be had upon request.
FASHION PARK, Inc.
2-0600
CALIF.—
FRANCISCO,
Dean *■ Witter
Present cash and
Common
HAnover
survey,
Dean Witter To Admit
SAN
'
uai.
FASHION PARK, Inc.
25 Broad
new
1938,; following
Troster,Curries Summers
Members
€. A. Saxion A Co., Inc.
J 70 PINE ST., N. Y. $ WHi'
we
tion plan
Deb. 5s, 1963
1
WHitehall 3-7253
of the
which
racy,
FASHION PARK, Inc.
Securities Co.
high
savings, point to
discussed in this
eral
this
nation,
bv
questions
airlines, rates,/post¬
competition, and cargo planes
philosophy of despair or a > Doyle, O Connor & Co., 135 S.
desire
for
another
'emergency' La Salle Street, Chicago, 111. have
that will justify a continuance of compiled late information on Mid¬
ctive
of
possible
The
Exchange
Street, New. York 5, N. Y.
::Direct -Wires to Los Angeles
future of the
upon a
found
-
made
enormous
35,000,000 or 19.000,000" or even
9,000,000 unemployed in the transf
itiori period "can only be based
peo¬
great achieve¬
Teene^wompanu
37
time
;
63 Wall
,
cure.
a
BUCKLEY BROTHERS
Members New York Stock
realistically appraises the
wages and war
industry's prospects after the war. gomery Street, members of the
the dangers of a post-war. boom
New
York
and
San
Francisco
Copies' of the attractive 36-page
Stock Exchanges and other lead¬
during the transition period,; the illustrated
brochure, which con¬
defeatists already see our eco-t
tains analyses of 18 of the leading ing exchanges, will admit Shirley
nomic
machine
as
stalled/ and companies in the airline industry, Houghton to partnership in their
firm as of November 24th.
needing artificial stimulants."
may be had upon request from
Mr. Brown declared that'to as*Merrill Lynch, Pierce, Fenner &
when employ¬
ment is at the
to
Members N.
a
"At
are
demands
then trying to
/Co.r Com.' & Pfd.
war
pent-up needs, plus the
ma-
stalled"
Exchange.
ployment, rather than preventing
it," he said. "Although tremendous
"wating
chine
SVSoxie
our
as
unemploy
until
Columbia
air transportation from the in¬
cubator stage to one of the coun¬
can
York Stock
1
Bell
Seaboard Air Line 5s, 1931
prodigious rise of Ameri¬
try's foremost industries and its
leaders "are still thinking in
Outlook for the future are re¬
they approach the post-war em¬
viewed in the
1943
edition, of
ployment problem, Lewis H. Brown, President of Johns-Manvillg
"Airlines/' published by Merrill
mce
Corp., told an audience at the New York, "Herald Tribune" Forum or!
Lynch, Pierce,; Fenner & Beane,
Nov. 16 that there is nothing in this problem that is
impossible of ,70 Pine
St.,
New
York
City,
solution if the American people are
actually determined to prevent members of the New
Declaring that too many of
the defeatist terms of the 1930s"
Indiana Limestone
6s,
f
Missouri Pacific 5(4s
Hold For The Airlines?
The
And Modification Of Tax Laws
Baltimore & Ohio 4s, 1944
What Does The Future
74
N.
1".
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private
Wires to
Detroit
-
Analysis
,
Security Dealers Ass'n
Buffalo
Pittsburgh
-
Cleveland
St. Louis
«
.
upon;■
request
Apply By Letter Only
T. J. FEIBLEMAN & CO.
I SHASKAN & CO.
[Members
New
V
York Stock Exchange
Members New Orleans. Stock Exchange
41 Broad Street
BOwling Green 9-4433
New York 4
Tele. NY 1-493
-Volume 158
The
;
Number 4230
.THE COMMERCIAL & FINANCIAL CHRONICLE
COMMERCIAL and
FINANCIAL
CHRONICLE
v
4
::
;.;
William
v
1
•::G^i^e:' v
B. Dana
■;''!;■-■'
V
Company
-y:
Publishers ';
\25 Spruce .Street, New York 3
;.! .■''■>
'''
y
i'
Sugar Est.
William
■■,
William
\
:
-
; ,;
D.
Business
Rlggs,
'
!u
Manager
BANNED!
Published twice
bonds I
like
stuck,
tan
25 Broad Street* New York
week
a
dowt; (Leal wltfe '-"geMlfrmen"
own
aristocratic ■ gilt-ed'ged
•w'h.o.
Trask & Co.
encer
:
'
Thursday'
•
.every
(general
.
and
news
and
every
Monday
records,
corporation,
quo¬
STRAUSS BROSf
etc.)
Members
32
.'s Other Offices:
Chicago—In charge of
Gray. Western Representative,
Field EaiMiiig (Telephone State 0613).
London—-Edwards. & Smith,- 1 Drapers'
Gardens, London, E.G.
Fred
H.
Copyright,1943 by
Reentered
as
William
11.
Da.ua
"
""
'
■
of Canada,
-:
„■
The Effect Of
$27.50 per
DIgby 4-8640
CHICAGO 4
Harrison 2075
Teletype.CO 129
v :
■
|
Publications
-
BONDS
That question is being asked hundreds of times daily.:If any¬
he could become a very wealthy man indeed.
But, not knowing, all of us study the various factors, evaluate them,
teach a decision, and act accordingly. In this
process of reasoning,
one depends to a certain extent upon his
knowledge (based on facts,
hunches, or :
<&->
————;
——
prejudice) o f
by industrial companies between
how (the mar¬
1927 and 1.940, Railroad and pub¬
ALL ISSUES
Bought—Sold—Quoted
f
Monthly Earnings Record—Mth.,,$20 yr.;
u i
Semi-Annual...,,..$35.yr.: j
knew the answer,
has
ket
Newburger, Loeb & Co.
j
acted,
ilar
in the rate of exchange/ remittances for
foreign subscriptions and advertisements
il Members New York Stock Exchange
40 Wall
I
i
St., N.Y, 5
Bell
in
This; article is
1-2033
a
Enfoicing Profit
th
past.
e
'
fairly elab¬
Avalanche Of Opposition
Tuesday of officials in this district of
the National Association of Securities Dealers, Inc.,
Henry
G. Riter, 3rd, Chairman of the Board of the Association and
meeting
to
certain
type of
situa¬
tion j—'the
is¬
of
se-
suance;
on
partner in the New York Stock Exchange firm of Riter &
a
Co., made it clear that
hell
high water, the destruc¬
tive and arbitrarily enacted 5%
profit limitation decree
would stand and that the Association was prepared to
fight
any organized opposition to the scheme. Wallace H. Fulton,
Executive Director of the Association, was also present.
come
new
130
was
so
little
Teletype MY
2-5203
new
-"Editor's-
Myers
None—Mr.: Myers "is
Assistant
Professor of Statistics-and Accounting,: the
V'
It is
on
HAnover 2-8970
Common
Sr. 10
Stock:!''-:;
share
earned, 9
1943.. Dmdead $2.00.
share, record! Nov. 28,
per
montfes.
per
.
payable Dec.
Memo
10.
Request
on
!'-
J.F.Reilly&Co.
w
H.
John,
capital.
based
Broadway, New York 6, N. Y.
Members
curitibs to
.
raise
Members New York Security Dealers Assn.;
39
separate classifications
would pot give sufficient basis for
any' sound conclusions. The com¬
panies used, then, are such ones as
National Steel, Inland Steel, Texas
Corp., Shelly Oil, Firestone, Safe¬
way Stores, Continental Can, Gen¬
eral Foods, Philip Morris, Willys
Overland, J. I. Case and R. K. O.;
all trading or manufacturing com¬
panies
of
investment
interest;
%'
action
in. response
a
'
the
on
one
At
ft
,/
*
investiga¬
tion
market
there
which could have been considered
orate statisti¬
QUOTED
-
LI. GOLOIATEi! £ CO
financing by these concerns dur¬
ing
this period; the few cases
summary or
cal
as
because
::M€
SOLO
•
companies could not be
included
situations
NY
Teletype
lic utility
re¬
sim¬
to
Whitehall 4-633
a
NASD Seen
BOUGHT
,
in New York funds.
Street, New York
Complete -. Statistical! Information
"Which way and how far is the price of XYZ common going to
one
y..y';V' (.
NOTE—On account of the fluctuations
Wall!
TITLE Co.
By JOHN H. MYERS
:
'
PRUDENCE COMPANY
Bank and Quotation Record—Mth. $20
yr.
State & Municipal Compendium—
been
'-of ALL COMPANIES, and
REAL ESTATE SECURITIES i
go?"
South' and j
Mexico
and I
year;
Australia and Africa, $31.00 per year.
Oilier
have
dog-s.
certlficates
CORPORATION
j
Spain,
Cuba,
year;
Great Britain, I
Continental Europe (except. Spaink
Asia,r|.
be made
Issuing Securities
Board of Trade Bldg.
PRUDENCE
V':,-
America,
329.50 per
must
Exchange
second-class matter Feb¬
Central
,
99
Company
Subscriptions In United States and
Possessions, $26.00 per year: in Dominion
i
Security Dealers Asa'n
Teletype NY 1-832. 334
'
¥
New. York
Broadway
NEW YORK 4
ruary. 25, 1942; at the post; office at New
York. N. Y./' under "the Act of' • March
S, 1379.
specialty is fellows
Telephone':. 'Whitehall 4-6$5i
banking;
news,
Our
ourselves
wfto
with cats
O^Qlete Securities' Dept.
Teletype NY 1-5
Members New York Stock
'
/■
(com pie tea ta tistidat issue—market;
tation
Hearings,;state and city
Telephone HAnover 2-4300
Cuba Railroad
advertising issue)
f
IMP COMPMY
"ESQUIRES"
PREFERRED STOCKS
"We
<
liCHTfnsifin
"
:,
Dana' Seibert,:President:
Thursday, November 18, 1943,
v*r.
offerings of
Public Utility and Industrial
Editor aitd Publisher
'
interested in
are
High Grade
Vertientes Camag'y
•: W
•
We
Alegre Sugar
Antilla
BEekmah
:
Herbert D. Se'ibert,
■:,' /■ \
Punta
^-r'''-'V^'
V:
!
i
1991
Ill
University of Buffalo.
cases
of
.(Continued
expansion
on
page.
York Security
Kew
;
:
Dealers
Broadway,
York, :N« Y.,
'KJ5ctor.'2-$28$.
2003)
■-
Assn.
•,
.
'»
(
.
BeS3
Syaiem Teletype,
N. Y.
Z~248§
or
That the Association WILL HAVE to
S
CI!
I)
Theories Draws Further Comment
fight such organ¬
Comments continue to be received regarding the article writ¬
opposition would seem to be a foregone conclusion/ As
ten by Lewis H. Kaney, Professor of Economics, New York Univer¬
a matter of fact, dealers in each section of the
country obvi¬
sity, which appeared in the "Chronicle" of Oct. 7 under the heading
ously have no alternative than to band together and, through "The Theories Of The New Deal Economists." Dr.
Haney - asserted
legal counsel, petition the SEC to rescind the profit limita- that the "theories of the typical New Deal economists" rest upon
tion decree on the ground that it was
"aii extensive set of unreal assumptions" and have been "readily
illegally promulgated
and wholly inconsistent with the provisions of the
Maloney adopted by a government which, every corp¬
under -the
guise of extremely
Act and the by-laws of the Association.
r- A
:
oration with a
idealistic
ized
(Also
.
As
editorial starting on cover page in this issue.)
see
reforms, seeks through
spending to gain control over the
economic
life
of the nation."
was
"(5) The rules of the association
sentation of its members in the
the association
assure a
adoption of
fair repre¬
any
rule of
amendment thereto, the selection of
its officers and directors and in all other
phases of the
or
administration of its affairs."
We
quote further from this editorial;
(Continued on.page 2017)
Representative In Congress From
Michigan
The
article
by Mr. Lewis H.
Haney, published in your Thurs¬
day, Oct. 7, 1943, issue, is the
most
■'
powerful
analysis
of
Est. 1926
170 Broadway
Bell System
$10,000 now
operating <: in
this country
not
COrtlandt 7-6190
Teletype NY 1-34
only
but
read
Securities,
struc¬
in excess
of
to
inactive
or
Over-the-counter
to
thoro ughly
HON. FRED L. CRAWFORD
•
capital
ture
:
pointed out.in an editorial in the November 4th
Some of, the letters adduced by
issue of the ''Chronicle," the
Maloney Act, under which/the Dr;: Hanev's article were
given in
NASD came into being, states that an association, shall hot
these columns on Oct. 23 and Nov.
be registered unless it appears to the Commission that
:♦
A;'others are given,herewith:
..
Active
the
WANTED!
understand
Mr.
Haney's
Xot&g-establfoihedl
presentation.
It
is impos¬
vestment
Midi-Western In¬
has
opening'■•for
The
ipaHficatipns
.will have good opportunity for '.'ad¬
mam
sible for me to
,
"my
express
Mouse
experienced Security Analyst.
with the proper
vancement, ;
appreciation
Tell us about your background,.,
previous eottraeciiioras and salary
?xp©cietL Alii replies will he treated
.
New Deal economic philosophy I
More Dealer Comments On NASD Rule
have found anywhere.
DEALER NO. 17
I have read your editorial in the Nov. 4th issue of the
wherein you state that the limitation on dealer
the Executive
unjust.
I
am
sure
"Chronicle,"
Committee of the N. A.
that
inost
dealers
S.
D. is
both unsound
and
stand in this instance!
the country will agree
upon your
throughout
found value to the people
country.
way
to
I wish there
get
every
with your viewpoint, I.e. (a) that 5% is too small a
gross markup
for the average dealer upon which he can conduct his
business on
a
profitable basis, (b) and that the manner in which the decree
has been laid before the members of the Association is
both*
of this
were some
president
:
and
in
violation
■
t.
j of the
-.r./.*
,7
However, I would like to go
expressed
•
am
.
the
:
others, lio
they might be, I have lost control of my; business. * I
best judge of the profit to which I am. entitled.; : I : know
,bpst. how., much work and, effort- I've
an individual
account; an* analysis of
need to
run my
business in
a
profitable
(Continued
Mr.
has in
a
particular <- sale,
security,- or how much T
manner
on page
■.
a
Wyeth &Co.
1997)
'Since 1893'
NEW YORK
BEST
a
very
simple manner pre-
(Continued
of
13, c/o
Commercial & Financial Chronicle
on page
2010)
;
Public National
Distillery Co.
Bank & Trust Co.
Butterick Company
*
LOS ANGELES
National Radiator
Company
HoERgSESIBssim
Established
Members N.
Y. Security Dealers
"
.'VMettJjc+i Los
Siocf, Exzkanze
3.914
.
C. E. Unterberg &
Members New York
Asm.
Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwiing Green 9-7400
NY 1-373
74
and to pay my bills.
MAN".ISN'T "THE
Haney
ta'strict, confidence. •'
Write at om.ee to Bos: K. M.
Beryllium Corp.
.
put. into
•
Any :.'TIME- AN • -AMERICAN;- BUSINESS
•
.
Secufritiei
even
who
•.
F. L. Crawford
Tom Moore
farther and state that I am
one dealer who
believes that there should be no limitation
upon
profits except the limitation I wish to place upon them myself.
Any
time I have to subject my profits to the limitations
of
matter
tic.ular
hour.
provisions ' ofthe
•
par
n.
Un¬
democratic
Maloney Act itself.-
such
con¬
tribution by Mr. Haney is of pro¬
profits proposed by
I wish to congratulate you
This
lit¬
erature at this
for
61 Broadway,
Co.
Security Dealers Assn.
New York 6, N. Y.
9-3533
Telephone BGwBng Green
Teletype NY 1-2603
|
1
;
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, November 18,
1943
PUBLIC UTILITY PREFERRED STOCKS
Black Hills Power and
'.Cw.y
:
v
.
Missouri Utilities Company
:
,
Light Company
Central Power and Light Company
Minnesota Power and Light Company
;
Northern States Power
What does the future hold for the airlines ?... What about airline rates?
;
'
Sioux City Gas and Electric Company
-. - -
'
,.
W hat about
.
competition after the war?... JFhat about
cargo
these
to
questions
know the
to
on one
Southwestern Public Service
>
planes?
*
Investors would like
Company
Company of Indiana
Public Service
,
v
-
*
*...
Company
Bought—Sold—Quoted
answers
AC-ALLYN^COMEANY
of the fastest
Incorporated
growing industries in the world. We dis¬
cuss
them in
1943, just
our new
Chicago
Milwaukee
survey'-AIRLINES-
completed by
research
our
Revealing the spectacular part
experts.
which American air
american turf association
transport is playing
in the war,
the survey sets
guide posts
on
Stock
some
up
realistically appraises its
prospects in
BANKERS BONDk
S
•
18th
unique
not
or
you own
airline securities
It will be mailed
survey.
■
the industry's future,
the post-war world.
Whether
Bought and Sold
you
will
study this
want to
to you upon request
without
-
INCORPORATED
,
.
:
,
,
y
FLOOR, KENTUCKY HOME LIFE BLDG.
:
LOUISVILLE 2, KENTUCKY
Long Distance 238-9
cost or
Bell
Teletype LS 186
obligation. Since wartime restrictions have drastically limited the number
of
copies,
we urge you to
write
or
phone today.
r
u
■
Merrill Lynch, Pierce, Fenner
-
t -
715
FIFTH
%/:
v;A
A"
Bought
*
5', N. Y.
Sold
-
-
Co.
Exchange and Other Principal Exchanges
105 WEST ADAMS
NEW YORK
TELEPHONE
WE
have
openings in
our
entele.
We
are
of
men
who
becoming associated with
presently conducting
a
are
a
cli¬
con¬
the
security business.
Sales Tax, Higher Incomes*Groups
Still Bear Chief Tax Burden
member firm
successful Retail De¬
Inquiries will be held in
-
'
taxes
new
To
NEWBURGER & HANO
..
help
39
he
BROADWAY, NEW YORK (6)
Baltimore
Lebanon
taxes
Harrisburg
Scranton
of
re¬
Secretary
sales
tax
stated that
10%,
in¬
come
and sales taxes
two-thirds
of
raise
H|B»a
of
the
the
and
tern.
desirable
but
not
essential.
Successful security sales experience is essential.
Com¬
pensation
and
liberal
profit
sharing
arrangement.
Replies held in confidence.
Our client's
has been advised of this advertisement.
organization
with incomes under such amounts
would
grant
only sales taxes, and
limited income tax ex¬
pay
a
-
Tiecsury estimates, Mr. Magill
said, excess spending power ih
ALBERT FRANK-GUENTHER LAW, Inc.
Advertising
Rosweil MagilJ j
$2,000
couples so that those
to
married
emption for net annual savings. :
According
to
United
States
Department 36-C
131 Cedar Street
for
the
New York
6,
N.
Y.
current
fiscal
$63,000,000,000,
absorbed
by
Common
and
taxes
form
pf, income
sales-tax,-he stated, isany
Even with
fect,- he said,
a
Stock
:
in¬
not unfair to lower income groups
if it is not the sole tax in the,
taxes.?' A
in
.
exemptions'to
i
interest
Bag & Paper Co.
group.
than
continuing
a
Southern Advance
Treasury has
dangerous dollars
$1,000 for, sin-,
gle persons
lem,
have
We
such
by Large Investment Kouse for New York City
experience
N. Y. DI 4-1527
from persons earning
Salesmanager Wanted
Salesmanager
PH 265
—
of
"A general retail sales tax," Mr.
Magill 'said,.-"would strike more
directly at the inflationary prob¬
mhHL 4H
incom,e.jtax
Philadelphia 2, Pa.
Phila; RIT 4488
boenning & co.
•
luxury
items,
St.,
Bell Teletype
■
that
income
in- the hands of the lower
are
excise
«««■■■«
on
while
come
a
crease
1529 Walnut
$5,000 or more, .-who receive, only,
one-fifth of the total income. The
Gpve r n mgnt
tail
City
taxes,
that
Federal
impose
Philadelphia Stock Exchange
Members New York Stock Exchange
,
going to people earn¬
ing less than $5,000 a year, who
pay only one-third of the income
recom¬
the
(2)
BUCKLEY BROTHERS
Members
the nation is
program,
mended
1419 WALNUT ST., PHILADELPHIA
Atlantic
trol
Philadelphia Stock Exchanges
Treasury has estimated
four^fifths of the entire
back
MARKETS
$3 PREF. & COMMON
combating inflation, they must
The
pre¬
inflation
to
the price con¬
N. Y. Curb Exchange (Associate)
.
to be effective in
1-672
COMMON
that now possess the bulk
Magill told the Academy.of Po¬
litical Science at the Hotel Astor in New York
City on Nov. 10. Mr.
Magill is a partner in the law firm of Cravath, de Gersdorff, Swaine
& Wood, and was
formerly Under Secretary of .the United States
and
.
are
NY
PEOPLES LT. & PR. CO.
be collected from the lower income
groups
of the inflationary income, Rosweil
vent
.
TELETYPE
Would
Treasury.
the strictest confidence.
Members New York and.
'-A
SAFETY CAR HTG.<G.
Says Even With
possessing comprehensive facilserving investors in every branch* of
ities. for
■
.
Lower Income Groups
desirous
ST.
CHICAGO
-
PHILADELPHIA
Rosweil Magill Says New Taxes Must Come From
partment and
.:
7-0100
Combat Inflation
If
a
BARCLAY
TRADING
particularly interested in
tacting forward-looking
4
Urges Sales -Tax
various offices for
experienced retail salesmen possessing
L-v...
Quoted
115 BROADWAY
SALESMEN
'
Goodbody
AVENUE
Members N. Y. Stock
SECURITIES
,/
,
'
t
NEW YORK
OFFICE:
,
f:
|
Brokers in Securities and Commodities
UPTOWN
■
V
Underwriters and Distributors of Investment Securities
70 PINE STREET
W hen Issued
-
Beane
&
sys-.
sales tax in ef¬
by- far. the greater
160$ Walnut St., Philadelphia 3
Pennypacker 8200
'
>
"
"r ?1
-
fcOrtlandt
PH 30
'
Private Phone to
"
N.
Y.
7-T 202
C.
V
Profit Potentialities
The
"Rock
offers
Island"
reorganiza¬
profit po-:
part of the tax burden would still
tion
be
tentialities according to a detailed
circular on the situation issued by
borne
by
people with higher
incomes.
"Our
Federal
stated, "is
posed. of
tax
now more
system,"
largely
other
taxes
than
he
Wall
sales
bers
year
will
be
can
only
be
countries.
and
savings.
(Continued
Britain, Canada
on page
McLaughlin, Baird & Reuss, 1
Street, New York City, mem¬
com¬
taxes, than the tax systems of the
other
great
English - speaking
Great
attractive
2014)
of
change.
the-New York Stock Ex¬
Copies of this interesting
circular may be had upon request
from
McLaughlin, Baird & Reuss
upon
request.
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4230
1993
TT
NATIONAL WAR FUND
When you
give to the National War Fund your contri¬
help not only one but many organizations de¬
voted to the task of helping to cheer and comfort the
r;"Bond Brokers
vg
butions
members
for
of
armed
our
forces who
doing
are
much
so
Aldred Investment Trust
us.
4
Vilas & Hickey
Members
New
York
Exchange
Tflugfelder, bampton
New York 5, N. Y.
Members
Telephone: IIAnover 2-7909
61
:
.
Teletype: NY 1-911,
• v,
-
1
•
s,
.V:
New
York
Stock
3s, 1952
" New York 6 '
Telephone—Dlgby 4-4933
//>:'
1959
United Securities^ Ltd.
& rust
Exchange
Broadway
1967
Company
5s,
"
.
l/z
Brown
,
Stock
Wall Street--
49
THE NEED IS GREAT! Send your contributions to your
local National War Fund Committee.
;
HART SMITH & CO
Bell Teletype—ny 1-310
52
WILLIAM St., N. Y. 5
HAnpver 2-0980
Bell Teletype NY 1-395
N"ew York
Safeway Stores Seek Supreme Court Ruling On
I J
OPit Failure To Act Oh Protests
'
.
Safeway Stores,;
by law.
petition, said the Associated Press, the grocery chain said
.its complaints were dismissed, by*
the
emergency
court
on
the knows, that may never occur.'
with
In its
-ground
that
appeal was
an
protest in
:'rV
Attorneys for Safeway contend¬
in part.
or
even
as
in
outweighed by the price en¬
possibilities inherent
potential: reorganization devel¬
opments.
' ' :
had
cordance with law were arbitrary
measurable
and capricious and constituted, in
fact and in contemplation of law,
to
a
we
take the following:
"In
;
a
& Pacific
of OPA to prevent court
of protests. - The petition
sought review and reversal of an
Oct. 12 decision by the emergency
•court of appeals, which, the - at¬
torneys alleged, allows the Price
review
freeze
certainly it
'
appears reasonable to
near
future.
in
proposals pre¬
do not contem¬
July
1
I
Leads In
Thrift group Gains
would
the
complaint on the
•ground the action could not be
taken before he had actually demied the protests^ Supporting this
•position the emergency court said
the jurisdiction 'of this court may
be invoked only by a complainant
when his protest has been denied
A
of $3,643,396 in total
registered by the Twin
City Federal Savings ; and Loan
Association of Minneapolis andSt,
was
Paul for
the
first six
1943, according to
months
of
recent press
-a
allow
distribution of
to bondholders
basis of the interest rates
on
on
old bonds for, the .interim.
of
cash would meet the
tive
United
States
Savings
and
and
quantitative
63
of
compensa¬
tion to
plated
duce
dot
••
Equipment. Trust Certificates
Mortgage Bonds
v 7
'
Serial Obligations
Stocks
.
d'di
■■""":■
incorporated
v
v
d;:::
♦
;
/
123 South Broad Street
^
".v":'
;
PH 296 and! 297
-
N. Y.-Phila. Private
■
NEW
■
Wires—Rector
2-6528
YORK 5
& 2-6529
be
to
the
ridiculous
of
the
lower
than
the
r./b
would
out
work
new
to a
-'
quoted
f.
'
3-9200
retention
'
New York
Broad St.
WHitehall
of
-
in
than
t
market levels.
more
chance the Commis¬
sion turns down the bondholders'
If
Under
by
any
proposals the 5s, 1975 would still
be reasonably priced oh the basis
of
the
original
reorganization.
They would receive $179 in Series
"B" Incomes, $717 in preferred
prospective
hew.securities.;
In addition to the cash, the 5s,
1975 are allocated $179 in new
of
value
these
new
than 25%
above the recent
market.I
Rensselaer
The
and 2.99 shares of common.
securities
&
Saratoga
Railroad
The
Reorganization
a
redemption of the Receivers' Certificates, with
consequent saving of $450,000 per annum to the
:
;
Circular
on
;;
Leased Line
Potentialities
;:
SEABOARD AIR LINE
STOCK
plus the progress that has been made by the ComproCommitted leads Us to, believe that this situation
'mise
request
is of extreme 'interest.
,
•
Copies
of our
study
'
are
available
upon
request
Mclaughlin, baird & reuss
Members New York Stock
Exchange
1. h. rothchild &
■
co.
Adams & Feck
'
ONE WALL
STREET
NEW YORK 5
•••;.'•
specialists in rails
1201>roadway
TEL..HANOVER 2-1355
TELETYPE.1-1310
.
Teletype NY 1-515
$357.65 for .the 5s, 1975 ex the re¬ "B" Incomes should sell at least
quested cash distribution, or more at
60, the preferred at 45 and the
than
100% above the indicated I
common at 20 which would give
"net" cost of the bonds at recent'
a value of 49 to the 5s, 1975, or
Series "B" Income bonds, $832 in would be enhanced materially by
"Rock Island"
1
the treasury of the
$50,000,000 cash pro¬
posed for distribution under the
bondholders' plan.
With the im¬
plication of this cash backlog the
more
securities
value
sold
INC.
30
Even such realistic
the
for,
prices
or
at 15,
•
Arnhofd and S. Bleichroeder
level
preferred at 30 and the
new
common
re¬
16 %,
received.
be
proposed by the CommissionOn
any reasonable basis it is indi¬
cated that under present market
conditions the new Income "B"
bonds should sell at least at 45,
present earnings arid market con¬
ditions this prospective "net" cost
represents a valuation little short
of
120 Broadway
■;
•
><
PHIL AD;ELPH LA
Teletype
to
bought
original ICC
fixed charges
inasmuch as
would
tion securities this would repre¬
sent a low evaluation of the se¬
;
STROUD & CO.
V?*
cost
Railway Co.
and if issued
as
all,; issues
ity than those iri the
$165 per $1,000 bond. Even with¬
out ; the factor of war stimulated
curities
;
would
payment
"net"
preferred and 1.83 shares
Moreover, these se¬
5%
common.
plan
earnings and the present specu¬
lative enthusiasm for reorganiza¬
S
Special
and
Guaranteed
v
cash
the
Minneapolis, St. Paul &
Sault Ste. Maria
curities would be of better qual¬
39 for the old bonds the contem¬
•••
soo
When,
?
Railroad
1935
Incorporated
Wall Street
New York 5, N. Y.
Bell Teletype NY 1-897
new
lien holders for the loss of
the Supreme Court that CPA's Loan
League
:.v."
This gain,is;the largest shown their lien positions.
.withholding relief by inaction is
Under the compromise proposal
;'capable of more far-reaching ad¬ by any - member of this group.
total
verse
effect because under the With
holders of the 5s, 1975 would re¬
resources
now
over
.Administrator's own theory, now $25,000,000, the Twin City Federal ceive $225.78 in cash, represent¬
•adopted by the emergency: court, Savings and Loan Association is ing:, interest for the five years
"the protestant has no right to ju¬ the~ fourth largest Federal savings 1939-1943, inclusive, less the small
dicial review until positive action and loan association in the United1 interest disbursement made last
is taken.
For all a protestant States. ;■
V■;=:.v
•
year. \ Taking the recent price of
-
Teletype bs 259
1951
Fort Dodge 4s
major criti¬
the
1'
"Messrs. Hanson and Lovett told
Tel. cap, 0425
Frederic H. Hatch & Co.
their
On be¬
is also
distribution of
this
148 State St., Boston, Mass.
& St. Louis 4s 1949
Des Moines &
theproposal, it
that
& St. Louis 6s 1932
& St. Louis 5s 1934
Iowa Central 4s
the
fish, Executive Vice-President of
by the Price Administrator.''
request
War
cism of the Supreme Court on the
old plan, the question of qualita¬
release sent out by Morton Bod-
•
on
& St. Louis 5s 1962
Iowa Central 5s 1938
:
of
earnings
half
sent
(in reorganization)
Minneapolis
Minneapolis
Minneapolis
Minneapolis
bondholders tnerely pro¬
moving the effective
claimed
discussion
ST. LOUIS RAILROAD
the.; plan forward' from
1, 1939, which is obviously
unrealistic, to Jan. 1, 1944.
This
gain
assets
Odi
Teletype: NY 1-8050
New
Jam
.
Quoted
MINNEAPOLIS &
for
date,
—
4s, 2003
In effect the proposal presented
ttife;
5
WALL STREET, NEW YORK 5
WHitehall 3-3450
It is felt, there¬
fore, that there is an excellent
chance of affirmative action by
vides
Sold
LEROY A, STRASBUR6ER &
holders' groups.
by-
YORK
Registered
&
—
NEW
The
the ICC.
"The Price Administrator moves
=..
^ Coupon
Bought
expect a decision some time in the
plate any deviation from the prin¬
ciples set forth in the Commis¬
sion's original plan for reorganiation.
Also they represent the
compromise ideas of major bond¬
.
dismiss
72 WALL STREET
4s/88
Gen.
months, and
sented
plaints indefinitely in his office
by neither granting hor denying
.a citizen's legal protest.
.
to
an
com¬
.
proposed
.
him out of busi¬
Leased Line Issues
Rock Island
St. Paul re¬
ation for about four
zen's 'only hope is to shorten thb
period of his loss by a reasonably
speedy administrative action and,
failing in that, to obtain relief by
judicial review at the earliest
possible moment.'"
Lovett,
power
to
the
does
Safeway lawyers, challenged the
•Administrator
to such
even
;
has
modifications- to the
suffered by imposition of unlaw¬
ful regulations, an injured citi¬
brief filed with the court
Elisha Hanson and Eliot C.
irreparable loss
"They said that, since the law
not afford recovery of loss
of
"Times,"
:
v
Nov. 9 to the New York
and
to put
as
ness.'
protests."
Washington advices
the
protestant
a
extent
denial of the
From
;
i
V'and
organization plan under consider¬
by
Specializing in
:
The Interstate Commerce Cora-
of the Administrator to act in ac¬
tioned
and refusal
"failure
the
——
Underlying Mortgage
in
mission
that
RAILWAY COMPANY
low as 36 compared
as
——;
real peace market, are
a
emergency court,
the Administrator may cause imb
ed
SEABOARD AIR LINE
far
mandate of the act but sanc¬
press
a
hancement
the Ad¬
ministrator adrhits he employed
in this case, contrary to the ex¬
istrator had denied the
whole
continued
previous 1943 high of 44Vs.®
such levels the price risks,
At
"This brief also asserted that 'by
not
.permitted until the Price Admin¬ dilatory tactics such
have
break in the market last week the bonds sold
trator fails to act within the time required
.
Toronto
The
junior bond issues of Chicago, Milwaukee, St. Paul & Pacific
as the leaders,
in point of volume traded, of the
Inc., on Nov. 9 to decide whether a company^rotesting Office of Price reorganization group of. railroad securities, and during recent reces¬
Administration regulations has a right to carry: its complaint to the; sions many rail men bave pointed to the 5s, 1975 as affording par¬
United States Emergency Court of Appeals when the Price Admihis- ticularly interesting speculative potentialities. During the peace
The United States Supreme Court was asked by
Montreal
COrtlaadt 7-0136
n. y. c. 5
Tele, mr 1-1293
63 Wall
Street, New York 5
BOwling Green 9-8120
Boston
Tele. NY 1-724
Philadelphia
Hartford
■
THE
1994
"COMMERCIAL
An
EMPLOYERS REINSURANCE CORP.
Hearst CobsoL Pub. "A"
Class
Common
A
ACTIVE
,
Interesting
In
CENTRAL SURETY & INSURANCE CORP.
St, Louis Public Service
& FINANCIAL CHRONICLE
a
Growth.
Situation
-Thursday* November"! S;'i 943'
'
>•<
fP OFFERINGS; WANTED; Y%
lrrfustryitlfi?,-:£\
York Corporation
interested' .iiu offerings;
are
-
•
MARKETS
f.,J y'/Lv;y:.!:Pf large
•
Kansas City Public Service
Preferred
&
"'L
Inquiries Invited
Analysis
Common
;■
request
on
■;• /
■<
^
smallrblocks- of;v
.
Real Estate Securities i
;
YY1YY'''
,.ev
,or
Electric-Power
Portland
68.1950
Consolidated Dearborn'
.
Debenture
3s
.
.-
Baltimore
l(»o;»
"
Teletype KC 273*4
BOUGfiT
Avenue
KANSAS CITY
1954
'eltason, Tenenkum, Inc.
MO.
6,
803
long Distance 93
SOLD
—
\Y
602 INSURANCE
BLDG., OMAHA, NEB.
Landreth
Bldg. Y '•■■■
ST. LOUIS 2,
Teletype—SL 486
'k
Seligman, Lubetkin & Co.
YYYvY-;' Y;
\
-
L,
/
'VY
:.Y
V''
Incorporated
'Y"Y. :Y
v;,Members New York Security Dealer*
MO.,;y^'
Broad Street, New York 4
41
D. 240
YY''YY
■'
;Y'. ;Y'Y'Y:L
Association
Yx ;YY;. :;/Y
HAnover 2-2100
SCHHVGL UlCllTEK
[issouri Brevities
COMPANY YY:
Lamdreth Bldg.,
St. Louis 2,
Mo,.
Garfield 0225
Teletype
;:Sl|i
Ely & Walker Dry Goods Delisting ,;n'.
Securities
The
•' ..;v^"
An
Example Of Unusual Values In Real Estate Bonds
and
.Exchange Commission is permitting Ely &
Walker Dry Goods Company* St,
Louis, to withdraw from, listing and
registration on the St. Louis Stock Exchange its Preferred and
Com¬
,
In
,
SL 450
L. D.
123
,
stocks, thereby reversing its previous position when the original
application was denied, July TO, 1943. The principal reason given by
mon
ham
a
continuing interest in
Central Coal & Coke
W. S.
the company
the
Dickey Clay Mfg. Co,
record
occurred
Harvester,Corp.
off
that the
W. PRICE & CO.
Baltimore
Bell
B;
the
revealed
St.
issues and
bring forth
delisting of
confident
are
the
St. Louis Traders
ST.
ac¬
Traders Club of St. Louis held its
in
1878
and
has
10th. New officers installed at the
long record of successful dinner are: President: Emmet J.
Brennan,
Kinsella
&
operations. Capitalization consists Brennan,
of 14,647 shares 7%
cumulative Co.; First Vice-President, Joseph
G. Petersen, EckhardtrPetersen &
first
preferred stock, $100 par,
non-callable, quoted around 124 Co.; Second Vice-President, Ray
all
a
and
ft 'ire
to
Providence
i.jj
Offices
Members
York
Other
Stock Exchange end
Principal Exchanges
503
,
Locust
ST. LOUIS
Teletype SL
Street
3, MISSOURI
Tel Central
84
profes¬
-
—
provided by
the New York Steam
Corporation,
Bonds
may
be
purchased
price that places
than
value
a
at
of
$275,000 for the entire first
bond
issue,
yet
the
sional traders and the immediate
customers of the firms
property
in real estate securities.
We be¬
at $765,000 and at the time of
a
organization
specializing
active
absence of
more
a
less
mortgage
was assessed
of
the
for 1942-43
bond
re¬
issue
market
of
information
real
values
How
concerning
and
correct
we
their
attractive yields,
are
in this as¬
sumption is best borne out. by the
fact that the majority of issues
one of New York
City's
leading real • estate brokers, at
$-375,000.
Y,Y;'..; u.;yw.'.::'
The
original bond issue was
pany,-
.
n/m-
i_*t
discussed
in
this
column
have
on
.
G
Neic
Bond, Bankers Bond & Securities
Co.; Third Vice-President, James
bid; 13.953 shares 6%
SECURITIES
Direct Frit ate
few
a
—
steam is
as
$925,000, which was reduced by
Sinking Fund operation to $837,700
cumulative
done better in price marketwise by the time- reorganization was
second preferred, $100 par, nonafter, information concerning them necessary.
The owners of the
callable, quoted around 107 bid; M. Canavan, Smith, Moore & Co.; was
published here.
;
property thought so well of it that
215,949 shares common stock, $25»Secretary, Elmer Barkau,^Taussig,;
An example of a bond selling they bought and cancelled $100,ITnv Ar rn 4 Tvpflsmrer
Rnrlv Pi-at 1
par, quoted 26% bid, 28 asked. Day & Co.; Treasurer, Rudy Graf, far
•; below
what the writer be¬ 000 worth of bonds in order to
Net income in the year ended G. H. Walker l&
Co.; National lieves is'its
intrinsic value is the retain the equity; bringing the is¬
Nov. 30, 1942, totaled SI,028.5,20, Committeeman, '' Bert3 Horning, bond
known, as 320 East 57th sue- down to $737,700.
Subse¬
equivalent to S3.80 per share of Stifei, Nicolaus & CoYyYY;Y!Y.Y; Street
Corporation. The bonds are quently, $32,700 more bonds were
Departing from the custom of secured
common, after allowing for pre¬
retired by Sinking Fund operation
by a first mortgage on the
ferred dividends, compared with previous administrations,• Henry land
owned in fee located on the leaving $705,000 bonds presently
$1,004,310 and $3.76 per share in J. Richter, Scherek, Richter &.Co.* south side of 57th
t'i
Street, between outstanding.
the
president,
prepared
a
preceding year.
Dividends retiring
First and Second Avenues, New
Arrangement is made for fixed
this
year
have, totaled $2 per three-page report covering the ac¬ York City,
interest plus additional interest as
together with the 15
tivities of the club during the
share, the same as in 1942.
past story and penthouse
Y;1
well.
Sinking Fund operation is
apartment'
year and distributed .' this report
building erected thereon, contain¬ also provided for, earnings per¬
Chicago and Southern Air Lines to the members by mail, thereby
ing. 313. rooms divided into 91 mitting. Fixed rate of interest is
Offering
eliminating the possibility of, the
apartments of from two to six 3% until the issue is reduced to
Missouri dealers participated in membership being subjected to rooms. The small units
predomi¬ $600,000; 3%% until reduced to
numerous tiresome speeches as is
the
Chicago and Southern Air
nate, most of the floors having $450,000 and 4% thereafter to ma¬
sometimes experienced at affairs
2/4-room; apartments
Lines, Inc., offering of common
As much as
with two turity Feb.: 1, 1952.
of this nature. The
membership baths and 4/3-room
stock, v. t. c., which was made
apartments 6% interest must. be paid, how¬
appeared
unanimous
in
Their; and
by means of prospectus on Nov.
bath. The small suites are the ever, if there are enough earnings.
wholehearted acceptance-; of this
best marketable at the present Actually, the average interest, paid
10,1943. The offering was quickly
innovation and feel that they, have
oversubscribed and
time as is evidenced
trading has a much better
by the fact for the past, six years was 3.9% on
idea of the accom¬
been fairly active since the books
that
the
property is
currently the bonds, or a yield of over 10%
plishments of the Club during "the
were closed at prices
100% u rentedY, : Incidentally,": the at current market prices.-Pay¬
fractionally
ST. LOUIS
York
properties,
•—
inasmuch
among
of some of the under¬
LOUIS, MO.—The Security lieve that the
,
Nate
owners
lying
Elect New Officers yY;
delisting of Ely & Walker
established
was
had
in
with¬
i
for this type of during the real estate depression
Y L'.'Y".0"y■ annual election and dinner at the security has been due to
nothing .year of 1935, the property was ap& Walker Dry Goods Co. Mark Twain Hotel on November else than the lack of dissemination praised bv the Cruikshank Comuraised by
Com¬
Ely
MO,'
Markets
great many bonds
selling at noticeably depressed prices which,-in our
judg¬
ment, are considerably below their true or intrinsic values.
At these
prices, in many- instances, such securities have been
offering very
high yields.
Further investigation has also disclosed that not
have been
tivity.! :
Teletype KC 375
Fust and accurate
research to determine the relative
desirability of,various
estate securities, we found that a
bonds/except
Exchange.
issues will result in increased
Avenue
CITY
transfers
this development may
other applications for
inactive
1004
of
Louis unlisted traders believe that
Ore.-Amer, Lumber ۩Yp.
KANSAS
the disclosure of confidential
was
our
of real
;
■
■
.
;Y;Y—r-r« standing these attractive condiferred stock may be inaugurated tions, there has been
very limited
that a high percentage of transac-1
shortly.
J L%.-;Y,cY,Y public interest in the acquisition
tions in the company's securities
of real estate
Corp,
Employers Keinsmr, Corp,
'Gleaner
in asking for delisting
information; in addition, however,^.
issues
©338
;
SAINT LOUIS
5©9 OUVTE ST.
Bell
System
'
Teletype—SL
80
-
above
the
past twelve months. : >"*'•
original offering price
'Y;;YY ;;;Yproperty, is free from
fuel worries
ments per
of
ilezabcis
S3.
12V2 per share. I. M. Simon &
Co, of St. Louis, members of the
New York Stock
Exchange, was
one of the
principal underwriters.
ImU. Stoei l:<c>ai:g4
1938
To Pay On St. Louis Y
Joint Land Bank Bonds
Kansas City Public Service
Qualified In Missouri
Brothers, 2(1)8 South La
Street, Chicago, 111., mem¬
bers of the New York anci
Chicago
iStock Exchanges, have
recent
data
Corporation
on
prepared
Standard Silica
common
and
St.
Total
Faroll
Salle
Public
revenues
Service
months to
to
riod
over
of
-
the
1942.
or
Co.
Kansas
for
the
nine
increase
an
dead
of
were
recently qualified for sales in Mis¬
souri.
Copies of the analyses of
these two issues may be.had
upon
.request from Faroll Brothers.
an
income
cial
pond ition of the
tremendous
that
of
the
Ass'n To Hear Talk
Association
Lapd ;Bank ;pf ■
Greenville, and the unmatured in-'
teres! accrued thereon
not
on
up
to ,but
including June 1,1932,
10%
pre-
of
unpaid
interest matured
the St. Louis Bank-and Green¬
the Philco
on
—-
Sold
:
—
incorporated
Broadway, St. Louis
I960
•
dividend
is
being distri-
the respective
banks,
SL 392
occasioned
of
February,
by,
an
vacancies
un-
(re-
tered
Both
by the United
23, 1942, in the
v.
ex-
owllei4s informed the writer
ag
that
the
ntY
property
is
now
1005
meetings will be held in
',
■.
•• -
•
case
cates
as
coupons
paid
to the
'.
delivery of bonds,
and/or
checks
matured, interest
for
on
un¬
regis¬
tered bonds to the Receiver and of
en-
and to all other persons hav¬
ing claims against the bank, which
on
Sept.
of Andrews,
St. Louis Joint Stock Land
TRADING
MARKETS
IN
REAL ESTATE
SECURITIES
I
on,
are
based
the
a+'oresaid
and checks, if, as,
i Bank et ah, and is payable to per- and when, such persons deliver
j sons who, at the close of business. their respective obligations to the
; on Nov. 20, 1943, are registered Receiver and make the required
:
holders of the Receiver's Certifi- proof of claim relative thereto."
et al.
A better
the Board of Governors' Room of
the New YTork Stock Exchange at
States Dis-
| trict Court at St. Louis
I
•
tra- interest payment in February,:
1944, might be hoped for inasmuch
"
the making of proof of claim there¬
| in compliance with the- decree
Stifei, Nicolaus & Company
GArfield
"This
ed assets of
Quoted
1943.,was
usual.: amount
•
| buted out of the proceeds derived
j from the liquidation of the pledg¬
I
314 N,
before
1932, has been declared
Ither says:
7% First Preferred
Bought
as of the close of business Nov,
20, 1943." The announcement fur-- 3:45 p.m.
or
_
Corporation, will speak, ■
"Electronics."
1,
on
_
Tuesday, Dec. 14, David B,
Bank
bonds
Inflation
and
June
•
LOUIS
Common Stock
extra:interest
the armed services.
I
ELY & WALKER DRY GOODS COMPANY
Second Preferred
Customers.
:er>M-S0C1u i'1 °!
ailo S
?n Hedges.
On
ville
6%
of
We
advised that the drop in pay-
men! of
^
•
ST.
:'ri943_vu, 31
tional interest February 1st.
are
The
Y
40
.
company
on
1942.__.
Regular interest is paid Febru¬
ary and August 1st and the addi¬
dividend, designated as divK. Brokers, announces fhat on Tuesnumber 6, in Ythe~ amount;
day,.;N0V. ,23, Dr. Ivan -Wright,
Illinois Joint Stock
has
improvement
dividends
Nov. 4 that; "a fur¬
40
,ported at one time to be as many
Professor of Economics, of Brookas
16
apartments)
due
among
iyn
College^ and Benjamin Gra- btber reasons to cancellation of
St. Louis Joint Stock Land Bank
ham, of the Graham-Newman Corieas^s because of tenants entering
of St. Louis, or by the'1
Central. porahon wdl address a .meeting
in recent years and dealers active
in the
company's securities be¬
lieve
on
follows:
1941,.„$37
1940:Y;J 40
;
were as
equal to 10% of the face :amount
of farm loan bonds issued
by:the
compares with $387,775,
increase of $832,186.' Finan¬
shown
Customers Brokers
Cantley, Receiver of the
Louis Joint Stock Land
.Bank,;
ther
corresponding pe¬
Net
1939YA.
L.
City announced
$1,219,961
com¬
of
Sept. 30,1943, amounted
$8,748,720.
40.92%
Mer¬
chants Distilling Corporation
mon.
Both of these stocks
S.
Earnings
$1,000
___$45
bonds,
upon
coupons
SHASKAN & CO.
Members New York Stock Exchange
Members New York Curb Exchange
40 EXCHANGE PL.,N.Y.
Bell
p
Dlgby 4-4950
Teletype NY #-953
.Volume 158:
•'A
THE COMMERCIAL
Number; 4230
.
A-/
WE 'OFFER A
A
SERVICE%
It is available to all those interested in
,
TlFFT
/A
.
Associate Members New York Curb
.
;
included inan ■■investment portfolio or contemplated
ThiA service, consisting of primary market quotations
and statistical information, is based upon records and experience
covering a period «»f 37 years.
•
7. /■_
„■//. /;;■ :,AX y'
■A/AAAA
•
I
Inquiries
"
are
"
'*y "
and
n *
PUBLIC SERVICE
' Exchange
■
Primary Markets in
COMMON
/'•
Hartford and
/
y
Connecticut
invited from banks, institutions
individual investors.
Securities
'
■
Bought
■
—
*
•
Sold
Quoted
—
Hartford 7-3191
/
/Telephones: 5-0151
PUTNAM & CO.
New York,
Members New York Stock Exchange
6 Central Row
SOUTHWESTERN
'
Exchanges
f
now
.
lIltOTIIFltS
'
f or - purchase;; •
■
1995
Member.? New York and Boston Stock
Connecticut Securities
-.-whether;
FINANCIAL CHRONICLE
&
Hartford 4
& Curtis
A';// A.New York:
CAnal 6-1255
BOwiing Green 9-2211
Belt Teletype
HF 564
Beii
System Teletype; IIF 365
Conn. Traders Ass'n
Continuous machine gun fire has been made possible by an inV
vention of James A. Hendley of the Russell Manufacturing Company
of Middletown.
A link attachment -eliminates the pause for reload-
>■
ing between firing due to the fact that two or more already-loaded
belts can be run continuously through the gun.
These links may be
placed while the gun is in action.
This
same : company:
recently
perfected a new shocwsole mate- j
rial, namely,- "t r o 1 e n e - i z e d
leather." which will shortly have
a
nation-wide distribution/ / This,
hew sole, developed by Gustav
-
* •'
,A,
experiments
Walters^ utilizes parts of the hide
not used. Tests prove
that these various parts, processed
by a chemical compound, prove
comparable to high-grade leather.
formerly
''
■'
.
Bridgeport Brass Co. showed
bet earnings of SI.099,880 or SI.07
share
per
period
the
for
ended
Sept. 30, 1943, against SI .656.007
or S1.65 per share a year ago. The
,
1943 net figure is
after a 8941,300
reserve for contingencies.
Taxes
to Sept.
30, 1943, .amounted to
$4,683,670 after $481,900 post-war
refund credit.
The company now
operates 24 hours a day,
days a week,
•
v; ■?;
,*'
...'ft'-
'
■
of
Division
•"'■V ft,
Standard
Hamilton
United
seven
;
.
7
;
handed
were
charge,
to
food packers will market approx¬
imately 300,000 packed "g la scans"
in the
future.
near
;:y %
;
show
2
de¬
a
officers
chosen
were:
Richard
W.
■'
Aircraft,
to¬
stantial
capital leverage for the holding
for
common
Conning Co. and Ballard.
Hartford; second vice-president,
in 1940 and 4 cents in 1942.
James W. English, Cooley and Co.,
ferred
Hartford;
1.67 in 1936 to 1.27 in 1942,
secretary
treasurer;
-
E..
Graham, Brainard Judd
Co., .Hartford.,■/ '
' '~,
/: Named to
the board
of
gover¬
erage^
a
in
Sanford
earnings
of BigelowCo. Earnings on
Carpet
For the first nine months of this
nors
Cov-
•:
Special 'to The Financial Chronicle)
..
.
a
share basis, the correspond¬
per
concern
has shown
24 times its
an
increase of
September, 1939, out¬
Even at that time Hamilton
put.
Standard
was
the largest propeller
Cv- ..." J-'f *'&'•_// #
C Yale
&
•
A
•
Towne
wlS- J
aircraft.
//%■
in the world.
producer
/
hA
corni^S
Co.
Bcment-Pond
was
in
given
the / •outstanding
for
stock of Chandler-Evans.
:
Co. showed net
profit of $343,980
for the quarter ended Sept. 30,
3943 (after charges and Federal
taxes and reserve for renegotia¬
tion), This is equal to 70 cents
a share on
the common, against
56
cents
for
the corresponding
ago.
Net profit
for the nine months ending Sept.
quarter
a
year
1943/ totalled
At
recent
a
Clayton R. Burt, formerly Presi¬
klanager,/was
the Board,
and Charles W. Deeds, President
of Chandler-Evans Corp., succeeds
and
dent
Mr. Burt
as
Manager of
tax
the
provision for the same pe¬
riods were $3,002,797 and $1,970,'752, respectively, .'
A/■' A .;L •
A
•./■,;.••#:,ft-ft
.A.v
A
of
President and General
The
most
recent
earnings
Power Co. shows $2.26 a shore
ended
months
12
for;
30,
Sept.
compared to $2.58 for the
sponding period last year.
Several months ago
savings available in interest
preferred dividends (though
would be largely absorbed
by excess profits taxes, for the
present).
United Corp., as the
and
these
United Gas
step in its dis¬
program,
distributed a
Improvement,
as a
largest stockholder, should be in¬
terested in any plans for stream¬
lining the Public Service setup.
It
■.
Hartford-Empire
The
Co.
has
new" glass container
that will mean a substantial sav¬
developed
increased
share
Taxes
$3.01
or
a
As of
glass cap and a non-rubber gas¬
ket which is the result of' two
the
years' research by The HartfordEmpire Co. and its subsidiary, the
Corp.
Sept. 30, 1943, The Hart¬
value of $48,28
a
share,
increase of 92 cents per share over
previous quarter.
A':';' /
.■
-'ft 'ft
A
ft
Na-
The results of their jional Bank & Trust Co. reached
be stepped np to a
$4 billion:annual fate between now and the end"-',:■■rill.
of the year, War Production Board statesA
-
'
from
Butler-Huff
&
Co.,
upon
—News Item.
..
•
%
A;-'.,'
an
As
at
of
r-:.
Sept; 30, book value stood
S2I.77
share, against a value
of $21.66 on June 30.
a
The National Fire Insurance Co.
has plans
a
for the organization of
casualty insurance
to write limited lines.
new
pany
com¬
/
Recent additions to the List of
Legal Investments for Connecticut
Burlington, Vt.; HagersKingston, N. Y.; Los
Angeles,' CaL; Newburgh, N. Y.;
Rome, Ga.: Shreveport, La.: Utica,
N. Y., and Watertown, N. Y. Cor¬
porate
bonds
added
were:
Con¬
necticut River Power Co. 1st 3:?4s
Feb..
.
Power
&
15,
1961;
Light
1st 3s
Delaware
due
Oct.
1; 1973, and Pennsylvania Electric
Co.: 1st 3Lss clue Sept. 1, 1973.
Markets for Dealers in:
Aetna Life
Public
the
and preferred stock out¬ off the -books of Public Service
Chairman Mestanding/with high coupon and Electric & Gas.
dividend rates.
Recently, there Carter announced the company's
have been some rumors that the intention to fight the orders of the
commissions
through
the
parent company might dissolve by two
Exchange
of Public Service Electric & Gas,
the
Torrington Co.
$20,000,000
be
common
and cancel the preferred
deducted
$170,000,000.
would
the
pave
no
great
shares,
way
for
cut in the rate base
sharp
a
rates.
corresponding
and eventually
reduction
While
Coburn & Middiebrook
Pear!
St.,
Hartford Phone
In
Connecticut
for 52
Years
1, ^Conn.
New York Phone
HAnover 2-5537
7-3261
Boston
Hartford
Phone—Enterprise 1S50
Bell
Teletype HF 464
might
this
but
a
in residential
there
is
no
imme¬
diate indication that the local
subsid¬
mission
preferred to be cancelled,
leaving a net amount of $157,000,000.
How could this best be re¬
tired if the company decided to
iary
plans
to
cut rates,
com¬
it is
perhaps the fear of such an out¬
come
which pmompts the man¬
agement to contest the write-offs
put through a merger plan?
De¬ so vigorously. Moreover, the re¬
spite any necessary plant write- • duction would go far toward wip¬
offs,. the
operating > company's ing out the equity of the parent
credit position seems sound enough company's common stock in the
to warrant the issuance of a fair- consolidated balance sheet—now
sized amount of debenture 334s or carried at about $142,000,000.
The FPC blast highlights the ef¬
4s to replace the parent company
Perpetual 6s, and perhaps raise forts of Federal agencies to force
additional cash.
Possibly, how¬ utilities to eliminate "write-ups,"
and
also
to
restore
so-called
ever, a secured bank loan could
be worked out more profitably, "aboriginal cost"—the exact cost
retaining the present 7%. stock as when the plant was built, even
security.
A;/ '•'/ / A A A ''A ■
: though this may go back to 50
Some new preferred and com¬ years for some items, when con¬
struction costs and land values
mon might be tendered along with
cash
to
the
holders
of
the
old
only a fraction of present
(Continued on page 2014)
were
parent company preferred issues,
A
public Service Co. of Indiana,
Common Stock
\
inc.
.
Scovill Mfg. Co.
66
Stock
to
It might
selling below par).
Memorandum
on
request
for. information
NEW HAVEN
N.. Y.
highest courts having j urisdiction.
However, the company, as a pre-
By so doing, it could (pre¬ caution, plans to set up a capital
sumably) .retire all four issues of surplus item of $26,205,800 through
its
own
non-callable
preferred reduction of the stated value of
stock at 100 or less (due to recent common stock from $196,205,800
Gas.
"
Chas. W. Scranton & Co.
Members
Service
Radar
Electronics
Write
Landers
CO.
the
FPC
Russell Mfg. Co.
Conn. Lt.& Pr,
WIRE
some
and
bonds
New Britain Mach.
Am. Hardware
ACME
for
SEC
FPC have, been looking over the
stock,
i; These senior securities of the
parent company aggregate about
all-time peak of $175,590,000.
$177,000,000, from which may be
fequesL''i'A--V//;.> /'''; ^'',;:AA;7
due
/
..
Deposits of The Hartford
''Electronic equipment jyroduction will
A
a
an
known
the
Obviously there
difficulty in
Copies of this discussion, together also be desirable to retire the non- absorbing the full $105,000,000 by
with interesting developments in callable
Perpetual
6s,
secured making a stilT further reduction in
the'insurance field, may be had largely by the 7% preferred stock the value, assigned to the no par
town; Aldg
ford-Connecticut Trust Co. had
been
that both
books.
Recently
(supported by the local
State
Commission)
dropped its
ture.
/ ; / j ; ,; ;■ /,;••'• •/.■•
.A/".A bombshell—a statement that plant
The Public Service system has account was overstated by some
been
handicapped by having a $105,000,000 and that a consider¬
huge
amount of non-callable able part of this should be written
now
to the present time.
include:
against $2.19.
book
:
40%
a
ing of tons of vital war materials.
This so-called
"glascan" has a
PI ax
about
has
time
market declines, two of them are
up
corre¬
■
be consul ted
tial
despite
situation
Niles-Bement-Poiid.'
relport of The Connecticut Light &
:
Angeles, Calif.,
interesting dis¬
Doubtless the
to
able, and there should be substan¬
declined
cussion of the "insurance anti-trust
General
Chairman
$1,000,932, or
$2.06
a
share
compared
with
$344,603 or $1.73 for' the corre¬
sponding period in 1942. Federal
income taxes and excess profits
30/
meeting of. the di¬
rectors of Niles-Bement-PoncI Co.,
elected
prepared by Butler-Huff
& Co, of California, 210 West Sev-
the manufacture /of
enth"/Street, Los
and carburetors for contains a- most
Treasury stock of Niles-
exchange
Manufacturing
flatter
Mer den
engaged in
fuel: pumps
South
of
have
from
dividends
36% gain in revenues.
gether with its licensees, now
ing figures are $5.22 and $6.12. /
The Insurance Industry And
produces approximately 76% of
America's a i r c r aft
propellers
/;./, Xiles-Bement-Poiid Co. of West. The Anti-Trust Situation
Which are used by more than 30
merging with its principal sub¬
Hartford
recently acquired t the
The/ current issue of /'News & sidiary, Public' Service Electric &
Army and Navy war planes. This Chandler-Evans
Corp.
conjectured.
would
per¬
■—-——
..
of fixed charges and pre¬
&
HARTFORD, CONN.—Henry J.
Southern New England Tele¬
phone Co. reported net earnings Gerardi is now connected with
of $2,090,370 against $2,450,216 for Coburn '6c', Middiebrook, 66 Pearl
the same period a year ago.
Oh Street.;' aA'A-A'' .7; •••■.: ■;
equity, the
■■
-
regarding the new setup, but the
problem might not prove insuper¬
solution
were
nam
is
SEC
Andrew L. Takus, Put¬
Co., Aaron Cook, Putnam large block of Public Service to
its own stockholders
(including
&
Co., Robert C. Calvert, Tifft
the common Were approximately
United Corp;). At that time it was
39 cents a share against S3 for Bros'., and Henry C. Robinson, H.
that
United
Corp.
C .A Robinson & Co., all of Hart- anticipated
the first
nine months
of
1942;
ford. ' '
'L.a"
'AA:- v /"A AA'. might also offer some of its in¬
Sales for the first nine months of
creased holdings to its own pre¬
this year show a decline from
ferred stockholders—as part of an
$31,967,350 in 1942's corresponding With Coburn
exchange tender program — but
period to $27,644,124.
this proved incorrect or prema¬
& Middiebrook
cline
company
,
it
stockholders dropped,
from 12 cents in 1936 to 9% cents
Wilde,
year
Propellers
Public Service, one of the old-time utility leaders of the
Big
Board/has had a run of bad luck market wise in the past two years.
The company was hard hit by Federal Taxes, which increased from
$9,368,302 in 1940 to $23,340,435 in 1942 (the increase being equiva¬
lent to about $2.54 a share on the common stock).
Due to the sub¬
centage of the revenue dollar left*>
vice-president,
John
Preliminary figures for the nine
Oct.
president for the ensuing
Other
First
&
ended
Public Service of New Jersey Faces Readjustments
over, •year. T% •/•%;/
the Govern-*
ment, the glass industry and the
rubber
industry as a war-time
contribution.
It is expected that
without
Murray Pres.
'HARTFORD, CONN. — At the
annual meeting of the Connecticut
Security / Traders
Association,
Frank; J. Murray, Day, Stoddard
&
Williams.
New
Haven, was
elected
months
ft•••.'-.ft''• v!ft■:
v
y
Elects
Bear, Stearns
&
Co.
Mcfbcij New York Stcc«c C'.-Hwge
ONE WALL STREET, NEW
YORK
CHICAGO: 135 SOUTH LA
•
* ••
Dtsby 4-8503
SALLE SIREET--5Urf« 0933
THE COMMERCIAL & FINANCIAL CHRONICLE
1996
Cadillac
3670
Tele.
DE
Jerome S, Hess Awarded Aztec
189
Jerome
Charles A. Parcells & Co.
We
Have
Trading Markets in
NU ENAMEL
•
639 Penobscot
•*...
'
Building
•
•
.
Private
wires
to
Top piece of
Rogers & Tracy, Chicago and
Summers, New York
•
for the month
news
was
Troster,
Stock Exchange
Cadillac 5752
26
Currie
-
Company
Problem
Howell Electric Motors
1051
;
Teletype
DE
was
Lansing'
ElectsGovernors
Stock
Ex¬
change Firms, at its annual meet¬
ing held on Nov. 15, unanimously
elected
the
following Board of
Governors and Nominating Com¬
mittee, which is the slate proposed
by the outgoing Nominating Com¬
mittee headed by Albert H. Gor¬
don of Kidder," Peabody & Co.
Board
of Governors—(To serve
years): Wm. Wymond
Cabell, Branch, Cabell & Co., Rich¬
for
which
w<?re
i'"
"outside New
an
alcohol.
un¬
Trade
circles
hear
that
by
V loan
& •
:Js
•
credit.
!)*.,
Boekeler
Associates
under
beyond the duration'of the
'..J- /
•
a
PRESENTATION
war.
Michigan
Group of the Investment Bankers
Stockholders of Detrola •,* Corp.
and International Machine Tool of
Cleveland were told of plans to
merge
chairman
as
of
was
announced.
three
the two companies into the
are
Detrola
George C. International
Corpora¬
Dillman, Harrison, Ripley & Co., tion, last -.week.',
v.-j
>,
Inc., Vice-Chairman, and Harrison
International
would
issue
an
E. Thurston, Watling Lerchen &
additional 152,000 shares and De¬
and
trola
Alonzo
AZTEC
EAGLE
TO
JEROME
S.
HESS
from left to right: Hon. Eduardo Suarez, Minister of Finance of
Jerome S. Hess, of the law firm of Hardin, Hess &
Eder, New York
stockholders. would
receive
Hon,
;
,
the
officers
officers
OF
Reading
Reginald MacArthur,
partner of Miller, Kenower & Co.,
These
Ass'n Of S. E. Firms
of
Society,
■
contract which extends six months
Other
75
*
Association
Co., and President of the Pan American
'
a
Co., Secretary-Treasurer.
The
Trust
.
Association
Exchange
Penobscot Building
Creek
Colina,
especially significant be¬
Election of
DETROIT 26, MICII.
Battle
made by the Hon. Rafael de la
March
■
Request
Stock
it
in size only to the General Motors
Ailman, More land & Co.
Detroit
was
the
&
billion dollar
Company
Member
to
2, 1947 and carries the a three-year contract was sighed
usual Vz of 1 % commitment fee with a chemical
company whereby
for
the unused portion
of the that company would purchase the
credit. v'V
wheat germ,
which is removed
The Chrysler loan is the largest prior; to conversion into
alcohol.
of the VT variety and is second Trenton
Valley is now operated
With No Post-War
on
Mexico
;
til
Analysis
considered
The credit will be available
:r
Conversion
Mexico
clearing agents
—
—j
Chrysler's banking connections
GossipL There was considerable
throughout the country, consisting interest in the Detroit unlisted
of nearly 100 banks, will partici-I market in Trepton
Valley Distil
pate in the revolving credit which lers common. The
company was
will unfreeze the firm's working reorganized about two
years ago
and now manufactures industrial
capital. "
& Dolphyn
Outstanding
circles
this is the largest loan of its type on
York" bank
Mercier, McDowell
•
to
the naming of the National
'
Detroit financial
cause
An
counsel
United States, at a
reception at the
John B. Glenn, President of Pan American
Trust
Frederick E. Hasler, Chairman of the Continental Bank
the hosts.
.
DETROIT
as
$250,000,000 Chrysler Corpora¬
tion VT loan.
Request
Detroit
rendered
Bank of Detroit and the Central Hanover Bank & Trust Co. of New
York as clearing agents for the giant
Latest Information
Buhl Bldg.
recog¬
has
|f|§8- Michigan Brevities
Stamping Co.
Common
Members
he
BUILDING, DETROIT"
Private Wires
To All Markets
on
and
•
BUHL
Telephone
Randolph 5625
of
Co., and
,
•
BaKcnSimonds&Go.
DETROIT 26, MICH.
National
'
r
services
University Club.
■'
''
valuable
Minister
MILLER TOOL & MFG. CO.
■
of
Presentation of the award
SUPERIOR TOOL & DIE CO.
SECURITIES
Eagle
Hess, of the law firm of Hardin, Hess &
Eder, has
Eagle by the Mexican Government in
entailing-financial and legal problems of international
importance;
PALACE CORPORATION
INVESTMENT
S.
1943
been awarded the Aztec
nition
Members of Detroit Stock Exchange
Thursday, November 18,
Hasler
Rafael
de
la
Colina,
Mexico;
City;
Mexican Minister.
Urges newspapers Unile In Post-War
The newspapers of the American nations were
urged on Nov. 3
by Frederick E. Hasler, President of the Pan American
Society, to
unite in demanding of the peace conference that there
be "an end to
share for each 1.8 shares now
•selfish nationalism and special
privilege and the beginning of an
When completed, Interna¬
era in
which the principle of live and let live' shall
tional would have 490,000 shares
guide nations
and people alike.", At the same time Mr, Hasler
declared that "inde¬
outstanding..
pendence
and
freedom
cannot<4>—
——
———-———*'
Detrola
stockholders
vote
in flourish in a
country which does the hard way, In the light of our
Detroit on Nov. 27.
not permit freedom of the press."
past experiences we know that the.
Addressing a luncheon, given by precious tbfng we call freedom is
Appointment of W. H. Maxwell the society at the Waldorf Astoria secured
C.
one
Allen, Blyth & Co., Inc.; Fred
Bargman, Braun, Bosworth & Co.;
Merle
Bowyer,
Paine
Webber,
Jackson
&
Curtis;
Douglas H.
Campbell, First of Michigan Corp.;
Harold R. Chapel,- Crouse, Ben¬
nett, Smith & Co.; William Moore,
MacDonald, Moore & Co.; Charles
A. Parcells & Co.,
ex-officio,and
Philip K. Watson, Campbell McCarty & Co., Inc., Governor of the
Michigan Group, constitute the
held.
.
only at great cost and that
preservation calls lor eternal
vigilance and the courage to sac¬
as
general sales manager of the
Wolverine Tube division of Calu¬
met
& Ilecla, was announced in
Detroit by Vice-President Otto Z.
Costa Rica, Dominican Republic,
Nicaragua and El Salvador who
rifice even life
Klopsch.
executive committee.
Hotel in New York City, in honor
have
and
At
MacArthur's committee appoint¬
ments follow: '
;
^
R.
F.
the
same
time he promoted
Moody to assistant general
of
a
of
group
made
a
journalists
of
tour
war
centers,
Mr.
presided, said; :
from
American
Hasler,
who
its
"Being
tional
itself, if
experienced
familiar
scene,
with
our
necessary.
journalists
the
interna¬
guests know all
too well that independence and
deep freedom cannot flourish in a coun¬
Cumberland,
: '•Li"i
responsibility in the designing of try which does not permit free¬
Wellington & Co., New York; M.
On the
banking front, deposits the kind of a world we are going dom of the press. Once this free¬
Livingston Delafield, Delafield & old W.
Rademaker, Detroit Trust of Michigan's 25 largest banking to live in after the war ends. That dom is curbed—and it can be
Delafield, New York; Albert P.
Co.; Jones B. Shannon, Miller, institutions
responsibility is to accurately re¬ curbed only by show of force and
expanded
over
a
Everts, Paine, Webber, Jackson &
Kenower; and Harrison E. Thurs¬ quarter billion dollars during the flect and interpret to the Peace military power, as I regret to say,:
Curtis, Boston; Charles S. Garland, ton.
third
quarter, plus the first 18 Conference what is in the minds is currently the case in one of the
Alex: Brown & Sons,
Baltimore;
Business conduct
people---the Pan American nations—once this;
Ralph For- days of October, totaling $2,840,- and hearts of the
M. Donald Grant,, Fahnestock &
soldier^non the battlefront, the takes place order and democracy
den, chairman, Watkiris & Forden; 000,000.
V1-.
;' L
Co., New York; James M. Hutton, Harold R.
toilers fh the factories, the moth¬ give
way
to unrest and revolt
Chapel *and Betrand
For the year
through Oct. 18,
Jr., W. E. Hutton & Co., Cincinnati;
ers
in our homes—in regard to against oppressive use of
Leppel, Charles A. Parcells Co.
the rise was
govern¬
$522,259,000,000. :
Joseph Klingenstein, Wertheim &
the world of tomorrow.
Education
mental authority.
Merle
Bowyer,
Co., New York; Arthur F. Lind"To
chairman; Ralph A. Crookston,
my
"True, the free press of the
mind, an attempt to
ley, Clement, Curtis & Co., Chi¬ Hornblower &
world will not have an official curb the- freedom of the press in
Weeks; and Ray H.
cago; Leonard D. Newborg, Hallany of th American republics is
delegate at the peace table, but
Murray, National Bank of De¬
garten & Co., New York. (To serve troit.
nevertheless it will be an invis¬ as dangerous to the stability of
;
for two years): Sydney P. Bradible
Legislative
William
power
behind
the
scenes the government as the waving of
Moore,
shaw, Clark, Dodge & Co., New
William H. Long, Jr., President voicing the protest of the common a red flag in the face of a bel¬
chairman; Willim S. Gilbreath, Jr.,
■York,
First of Michigan; and
Doremus
people against further exploita¬ ligerent bull is dangerous to the
&
Harry W. of
Company
an¬
Nominating Committee: Sydney Kerr, Crouse, Bennett, Smith & nounces that in further
tion and presenting their demands life and limb of the flag-waver.v
expanding
P. Clark, E. W. Clark &
for the policing of the world to Either is an open invitation to dis¬
the Public Relations
Co., Phila¬ Co.
Department
delphia; F. Dewey Everett, HornMembership—Fred A. Bargman, of that agency, Edwin F. Gahan, prevent further outbreaks of in¬ aster." Not only must we have
blower & Weeks, New York; Rus¬ chairman; R. W.
Mittel, Paine, formerly of the New York Times, ternational gangsterism and for a strong and critical press, but:
sell E. Gardner, Reinholdt & Gard¬ Webber and
Jackson; and Philip has become associated with, the equal opportunity to enjoy a high¬ one which can lift itself above
K.Watson.
'
ner, St. Louis; Harold W. McEvoy,
petty politics and personal jeal¬
New York
office, 120 Broadway. er standard of living..
Winslow, Douglas & McEvoy, New
"The newspapers of the Amer¬ ousies.
Meetings and Entertainment— Mr. Gahan was a member of the
York;
Reuben
C.
Newspapers today are the most
Thorson, Paine, George
Dillman, chairman; business news staff of the New ican nations taken as a whole are
Webber, Jackson & Curtis, Chi¬ Cyrus H. King, Merrill Lynch; and York Times for 3 Vz
the mightiest champions of peace potent force for shaping human '
years.
Howard Parshall, Commonwealth
and
cago.
freedom
and
; '
\
equal oppor¬ destin^'that the world has ever
Bank.
tunity in the world today.
Their knowri/ 'I'heir editorial columns
Approximately 200 members of
an
George Currier Opens
influence
which
Publicity — Alonzo
combined voice can exert a great¬ wield
C.
is
the Association attended the meet¬
Allen,
ing, which was held in the Board chairman; Ray W. Davis; E. H.,
COLUMBUS^ OHIO—George T. er influence at the peace table eagerly sought by those inter¬
Rollins & Sons; and Wayne
than that of any statesman, be he ested in4 the common good and
Currier
of Governors' Room of the Ex¬
Spade,
is_engaging in the invest¬
mond;
William
W.
.
sales manager..'
Municipal securities — Douglas
H, Campbell,
chairman; William
M. Adams, Braun, Bosworth; Har¬
"The
v..-
.
)
have
newspapers
a
1
.
^
—
Doremus & Go. Adds
Edwin Gahan To Staff
^
—
.■
■
•
.
,
.
-
,
•
change,
sociation
The
new
Board of the As¬
convened
in
its
meeting yesterday
will also meet
(Nov. 17) and
today (Nov. 18) in
Richmond, Va.,
the
year.
to elect officers of
Association
for
the
coming
The three previous meetings
have been held in New
York, St
Paul and Boston.
Merrill Lynch.
The
Bond
ment
&
*
first
Club
elected H. Russell
board
to
dealer
*
of
Detroit
has
Hastings to the
fill the vacancy
created
by the* appointment of Charles C.
.
Bechtel
tain
of
of
the
ernment in
H.
V.
Allied
Sattley
as
cap¬
Military Gov¬
Occupied Territory.
business
from
as
an
offices
Vernon Avenue.
He
individual
at
997
Mt.
even
formerly
Roosevelt
or
a
Churchill.
demand the end to selfish
to
was
a
Let this voice ring loud and clear
tionalism
na¬
and
Currier which has been dissolved.
special privilege
and the beginning of an era in
which the principal of 'live and
Associated with
Mr.
let
be
Schoellkopf
a
partner in the firm
William
A.
of Koch
&
Currier will
and
Harry A. Miller, both previously
with Koch & Currier.
equally feared by those who seek
spe.cial privileges."
Lehigh Valley Interesting
Mr. Hasler further said;
Raymond & Co., 148 State St.,
Boston, Mass., have prepared an
interesting new discussion of the
Lehigh Valley 4s of 2003. Copies
"Like
of this memorandum
may
live'
shall
guide nations
and
people alike!"
nations
our
won
own
their
country,, these
independence
upon
request.
.
be had
Volume
158
Number
THE COMMERCIAL & FINANCIAL
4230
accomplish your avowed
legitimate dealer.' '' ' V ;
NASD Seen
Enforcing Profit Limitation Decree
Despite Avalanche Of- Oppositsors /
/
,
(Continued from page 1991)
JUDGE
OF
HIS
OWN
POSITION
you
series of trades
a
profits I made in
I
some
As
with
made
I
cases.
THESE
IN
BETTER GET OUT OF BUSINESS.
"r''
MATTERS
of my clients.
one
HE'D
show
me
wise
they amounted to very much more than 5%.
But also notice
customer has enjoyed an appreciation .in the value- of his
holdings that is far and above the general' average.
This sort
of thing just didn't happen, it.wasn't an. accident: There-was
thought,
planning, investigation, and years of training behind the analysis
of these particular securities WHICH PROMPTED RECOMMEN¬
that the
DATION TO THE CLIENT.
Here is
securities I sold to this client:
list of
a
-V."'-..--
/;/•"',-r
speculative,Tow-priced
*/'-/■
■
./•
T T
;
;
'
(serial)
Worsted A
Botany
St.
Paul
L_'
S.L.
6
4Vfe/41—
Choc. Okla, Gulf 5/52
Bendix
Home
Now
IV2 ;
/,:% V
Com
16
/
12
10
Appl.
Approx.
Price Today
2.V2' / / h;':;;5
/ 7
■■ '// V-27,
2
-
K.C.
/'
%'
5J/4
Sold
to Client
Cost Me
M.O.P.
makes
51
'
xy*■■■■,:
Governors
callous
and
continued
trade
to
everything's
(ALL ON A 2%
toward
his
just
the
customer
welfare
and
in
his
of
of
out
client
that he
so
securities
various
BASIS) he might eventually cause his customer to
lose practically all of his original investment, AND
RULING IT STILL WOULD BE PERFECTLY
UNDER SUCH
A
OK
JUST
AS
LONG AS HE DID IT AT THE RATE OF 2% PER TRANSACTION.
Arbitrary limitation of profits in actual
In
theory such
I
American
every
his
customers
TO
RETURN
of
profits
the
at
a
citizen
to
what he
buy
pleases,
and
it to
sell
price he thinks WILL CAUSE HIS CUSTOMER
AGAIN
DO
AND
WITH
BUSINESS
HIM
IN
THE
bring this about.
Personal integrity, knowledge
sell, and your own conscience are the only
fair dealing.
Any other artificial rules are silly.
can
securities
guides to
;/../
you
"5%
intention to direct
Limitation
Profit
tended
DEALER NO.
'
our
application.
Decree" until
-.
18
our
;;/.
know
we
7.//
-
/:/ ;.T
solely toward the
criticism
more
its
about
.//'/
yT-T
in¬
.///
The letter containing the "decree" was too vague for the aver¬
broker-dealer to interpret all of its implications with reasonable
I
age
:v-":
-v..s//
"v.v/:,...
accuracy.
v
\' :'\v"
/''V■ •"V. v-.'/
.'7-7
The average broker-dealer
pants,
concerns
actions:
firm, excluding selling group partici¬
itself largely with the following four types of trans¬
'
.
1
*
-
•!;' 1. Agency.
'■ *'}{.■>'■■■■'"/•/"-v*/■■;'7/7:/;/../••• //
2. Transactions that develop as a result of solicitation and service
/'/
: without benefit of option or
commitment.
77//
'/
3. Transactions that develop as a result of solicitation and service
and are confirmed from long position or against options.
4. Transactions that develop as securities are sold to make pos¬
;
to where the 5% applies.
The method used to arrive at the 5% conclusion
problem arises
of
many
/7,////■//
as
well and favorably
our
was
an
obvious
known broker-dealers
hold to the opinion that, as an industry, we must have maximum
fixed spreads or percentages based on cost or market on all principal
we
transactions and it is
considered judgment that,we will have
our
"peace of mind" within the industry until
"fixed, maximums."
a
we are
all operating under
the problems of the small broker-dealer, and, free from pressure
from any source, should arrive at a conclusion that will stand the
on
It
is
therefore
will
pending
rescind
-
the
in
///7/v:. ■/,.'
the
7
on a more
thorough study.
/-/ DEALER'NO.
Board
your
notice, published
;
/
of Governors'
conclusions
in the
Oct.
25th, setting forth
matter
to
congratulate
you
am
on
afraid
is
Recently I
and
district
of
setting, limits
profits taken by securities dealers, members of the Association/
seem
to
centages, upon which
me
that your method of arriving at your
per¬
base
conclusions, is wrong in that you
least part of the time, whole¬
salers for many small firms and who constantly give the lion's share
of concessions or mark-ups to the smaller firms, in
recognition of the
include many
fact that it costs
There
you
large firms that
more
your
are, at
in any business to retail than to wholesale.
thousands of small dealers who would be forced out
if they were limited to a gross spread which in
larger
are
of business
firms
yields a much greater net than many times the
would yield small dealers.
With
no
same
gross
intention to question the
of the Association's Board and
integrity or honesty of purpose
Committees, I believe that a division
"NASD" should be formed to consist exclusively of small overthe-counter firms; so that men of like business standing and
philoso¬
of
phy could approach the Association's problems
in consultation and cooperation with
a
lot of
friends of
recent
vided
our
readers
discussion,
like
are
who, during a
ours
equally di¬
were
point.
on one
One preferred
views, I do not wish
Bourbon, and the
other, Rye. But, neither knew how
and
they fined
point in
it
as
the
was
was
customer
not
so
much the
relation.
satisfactory to him.
more realistically and
larger "member" firms, would
use
amount of
They stressed the
stock at 85V2 and sold
a
was
■
v-7„
•
•
in the
brokerage business
much better for all of
is ill
Municipal Bonds
markup
-
day when
7/7/
you
again speak of the
can
7/7Z'!/'S'
•'
DEALER NO. 24 '
,
I have been
ting
■
:v;
7./.
:Z//Z /:
/:
NASD." and I
/V/'''7/^^
/
following with great interest the battlq
against .what
up
am
call
you
"the
not sure that
I
profit
am
on
an
limitation decree
of
totally in sympathy with
the
agency basis.
money.
./•
except
'
7 I am
on
transactions involving
very
small
amounts
are
of
'
noses
across
in the days of Daniel
on,
and
restless
Henderson,
on
-We
•;
are
in
It
the
appears
tucky, they took
continued their
an
pathway of the small dealer.
S.—We prefer that
the above..
'/-/J/;/ / 7
our
not be used in connection with
name
I
have
read
with
a
.7-7:; 7.7^
great
deal
of
for its distilleries, The
appearing in the last two issues, and it
out for the small dealers is to form
As
stated
seems
an
Bourbon whiskey.
to
as
It is still famous.
Pennsylvania became
a
favorite
territory for early German immi¬
grants. Rye
their favorite bread.
was
So, when they
It
was
in
to the new
came
world, they brought
rye
with them.
planted and milled, like
Virginia,
and
made into whiskey. ;■■■■:,.
a
producer
of alcoholic beverage,
and then followed
rye
was
/.,< "■/'//-
Maryland, too, became
of this type
corn
the surplus
preference for
a
in the central and northeastern
7._
the
Virginians,
staple
food
and
it
became
throughout
crop
your
me
two
articles
that the only
association of their
own.
your last article, the large dealer is
dependent to
a large extent on the
many small dealers scattered throughout the
length and breadth Of the country, in the distribution of his underwritings, and in the marketing of over-the-counter securities he
spe¬
These
became
known
as
Bourbon
territories.
have belonged to it ever since it
started, so we have paid in a lot in
the way of dues but fail to find
where it has been; worth five cents
to our
business, during all this time. We fail to see wherein it has
accomplished the things for which it was created. It has no
doubt
done some
good, as it would be difficult to spend all of the
money
that it has received in dues without
bringing about some things of
value to the
industry, but by far the larger portion of anything ac¬
complished was for the benefit of the large dealer/
years,
great progress has been made in the
field of blended whiskies.
these whiskies have
or
Bourbon
are
very
have
are
certainly in the majority, so there
is no reason
why they should be dictated to by the large
ones, and
especially by the autocratic policies of the NASD.
Just what good has the NASD
been to the small dealer? We
a
the
South and Southwest and far West.
no
in
cializes in. The small dealers
whiskey,
became known
But, during the past few
interest
Ken¬
born, and it became fa¬
was
made from corn,
DEALER NO. 26
7
with them and
corn
Corn made the trek westward with
insurmountable obstacle would be placed in
P.
new
early Virginia prac¬
tices. Then Bourbon County in
tucky
///^
thorough sympathy with the "Chronicle's" fight against
that
the
the mountains to seek
colonies.
DEALER NO. .25 '
^
when
Virginians went westward
homes, in what is now known as Ken¬
writing
you this letter only because you seem to be count¬
this question, and I should like to be counted
among
those who are inclined to favor the
policy as set forth by the NASD
as an alternate
preferable to having our business put under further
restriction by the SEC. '
1
•
ing
Later
your
Ours is. a very small firm, but it has
always been our policy to
limit our pro'fits on unlisted transactions to 5% or less.
It seems to me
that the cases in which a
profit, of over 5% would be
rare*
easily stored in liquid form
more
mous
put¬
you are
approach to the question. I have not discussed this with
any one
else, but it has always seemed to me that the NASD was
trying to
work ,out some sort of
self-regulation that would forestall the SEC
from forcing investment dealers to handle all
over-the-counter trans¬
actions
Eventually these millers dis¬
Boone
■
7
,
"
>
paid with part of
They made whiskey.
that you will
United States Government without
using all the letters of the alpha¬
bet and speak of the men at the head of
the Government without
using hell and damn? /
con¬
a sur¬
than in the grain, so they distilled it.
the 5%
so
their desire to protect the
public, and I hope
stay in-there and fight them until the battle is won.
wonderful
raised and
grinding the grain into
be
?
than
a
cleared,
was
corn was
were
flour.
seem like a tremendous
profit to us. For that reason I am not
position to judge whether or not 5% or 10% markup is
justified
by stock dealers;, however, I am firmly convinced that the
attempts
by the NASD and the SEC to regulate business are
prompted more
by the desire of the men in those organizations to obtain more
power
it*be-
of their
the crop for
a
Won't
one
7;///;'
covered that their surplus corn could
would
in
in the
plus developed in possession of the
sale, I do it at nejt cost.
business
our
crop
millers who
my name.
DEALER NO. 23
Most of
by the
grown
provender
a
When the land
siderable
NASD interference, I have restricted
my business entirely to invest¬
ment trusts. When I take in a
security for
use
as
staples. /,//;.
as
Please do not
product—maize.
colonists, who made it
for my particular
I expostulated with my salesman many times for
taking what ,1 thought were too large profits. These
profits ranged
up to 25% in an exceptional case on a
$2 stock, but in the main,
profits were held around ten to twelve per cent. As a result of this
inasmuch
food
corn, was
colonies. They introduced it to the
basis. I do not feel any ill, will toward the NASD
ease,
initiated into the
new
or
to
came
were
neighborhood of the first Virginia
;
among the small dealers, and it would be
if the business were done on a: reasonable
us
a
Indians
making four points,
';;;
of
Maize,
I believe your - contention that the small dealer cannot
operate
5% is fully justified, although I do feel that there are
many abuses
7
on
first settlers
/Virginia they
a case where, for instance, I bought
whether, had the customer known I
it wouid have been
When the
their decision in my case,
nominal amount.
Their main point of contention
at 89y2.
Rye in Pennsylvania and Maryland,
called
me a
profits charged
start—Bourbon in the South, and
.
It would
Maybe
some
charged by the NASD for making exorbitant
to a hearing before the
governors of this
was
was
October 8. I have just received
on
way
19//'////v-
on
[
1
'
solicitude
-i//
Board of Governors of the
the 5% limitation decree
abeyance
of the National Association of Securities Dealers:
Referring to
on
hope that
hold
Marvin & Co. of Philadelphia give us their permission to publish
following letter, which they sent to Henry G: Riter, 3rd, Chair¬
man
the
or
conclusion based
a
/»
reason.
our
NO. 21
opportunity
the profit limitation decree of the NASD.
*•/'-'•/•///7.7"'y
light of scrutiny'and
this
7
P. S.—Should you use this expression of
my
to have my name used.
;
no
Our leadership is quite capable of making or causing to be made,
comprehensive survey of this vital situation with proper emphasis
NASD
SCHENLEY DISTILLERS CORP.,
NEW YORK
since/for some time, I have
guilty of oyer-stepping its bounds and, in its
for the buying
public, betraying the little
dealer, who had every desire and intention of abiding by the rules
and practices of fair
play, wanting only reasonable profits and con¬
fidence and faith in the organization of which we are
members.
/ Thanking you for splendid championship for our cause.
very
"easy out" and contributes directly to the vagueness and confusion
of the decree.,
v/- //■'■ //■7.'/ ;■ //>.' ■ /
^;// ;//v.-, 'A.yA' /./
Unlike
take
justified
sible certain transactions in classes two and three.
The
to
felt that the NASD
*
It is not
like
over-zealous
practice cannot work.
FUTURE. A satisfied customer is what counts—no arbitrary limitation
upon
would
procedure sounds fine, but it is contrary to every
a
hope
will be of interest to our fellow Americans.
This is number seven of a series.
against ourselves?
what you are trying to do for- us—the little dealers—but I
it is a voice crying in the wilderness
concept of individual responsibility, personal integrity and the rights
of
construct defenses
we
7/v/" V'-Z^/y^/-/ DEALER
•
profits,
too 7 perfect for words to
describe.
But the CUSTOMER IS OUT $2,000 or 20% of his prin¬
cipal.
In fact, if this dealer were careless enough,' or sufficiently
inefficient
Must
•
5
another 2%, or another $160 gross.
He's made a total
2%, and according to this latest ruling of the N. A. S. D.
of
Board
-//7 ;■/.•'
these two American whiskies got their
compare
of $360 at
NOTE—Frew time to time, in this space7
there will appear an article which we
DEALER NO. 22
the above results yith a hypothetical case such
following: Assume that a "dealer opens an account and let
us
assume
for the sake of argument .that he sells this customer
$10,000 worth of securities.
He makes a gross of 2% or $200.
So
far so good.
Eventually these investments turn out to be un¬
profitable and they decline in value about 20%>
Our dealer then
goes back and trades those securities he originally sold for others
and
ADVERTISEMENT
hardship to any
/'■"■■■ 1
no
-7 DEALER NO. 20 ,7//;■
,
;
the
hs
or
v/* 77,7',1 /"•/////y'/? r/■ 7'
;;
Notice the
proud to admit that percentage¬
am
1997
Am I wrong in the assumption that the NASD is an
organization
of-the dealer by the dealer and for the
dealer, or is it an adjunct of
the New Deal philosophy of business.
.
illustration, let
an
with little
purpose
.
////• ///;
CHRONICLE
Many of
definite Rye
characteristics, and yet
popular with those who
preferred Rye
Bourbon.
or
The skillful blender is
for what appears to
able trend to the
has
discovered
eat
lighter food,
be
responsible
an
unmistak¬
lighter blends. He
that
people
wear
today j
lighter cloth-:
.
If
a
poll were taken of the industry and all the dealers
replied
honestly to the following questions, what do you think their answers
would be, especially the small dealers?
"Enumerate fully the benefits
you have received from belonging
ing, prefer lighter tobaccos. So,-he.
strives
a
universal
The
appeal.
next
time
drink of fine
member
that
been taken to
to the NASD?
Do you feel these benefits have
equaled, or exceeded,
the dues you have paid
in, and the time and trouble taken?"
In our honest and considered
opinion your paper has done much
skillfully to create light, pal-'
atable blended whiskies which have
ern,
a
enjoy
you
blended
lot
please
your
whiskey,
re¬
of pains have
your very
mod¬
sensitive tastebuds.
,
(Continued
on
page
1998)
MARK MERIT
of Schenley Distillers Corp.,
THE COMMERCIAL & FINANCIAL CHRONICLE
1998
States
could
nature"'
were
take
action
against
'
reported,
Between
Despite Avalanche Of Opposition
on
NASD
A
themselves
employed
methods
autocratic
NASD.
the
by
There
"
:".■■■
institutional
an
Y-'Y ;'
'
business
could
tried, because his institutions
price.
The
holds true of
same
a
(Continued from first page)
■v
not
are
make
an
very careful
"some" time
nanced
same
beyond, to
presumably
pattern
at
as
be fi¬
the
on
present;
very
.
.
is
DEALER NO. 27
if
follow
we
certain
accounts
limited to the
were
tional
congratulate you on- your demonstration of courage
to
'
y
■
words, if you sell a bond to a man, making 4 points,
$40.00, that does not compare to the profit made on a 25-bond
sale with only half a point, or $125.00, profit.
There may be just
as much and
possibly more work in selling the one bond as there
was in selling the 25 bonds.
For this reason, an investment house
which is doing a private investor business, such as our
own, could
not
We wish
•,
In "other
or
'.;Y'AV;',
■
profit
no
among most
or
just or equitable about them. I speak
you, and can prove everything I say,
nothing helpful, or fair,
•from experience ! assure
'
thin
of
large private We also
expect the banking
Furthermore, blocks of stocks and bonds sold to large
channels of commercial and
buyers, although carrying a small profit, show a large profit in
the aggregate on account of the size of the sale.
consumers' credit to
re-open,
.,
and
practices
18, 1943
investor.,
that he "must" in
participate in his
under writing's and distributions. This is, neither just or equitable.
If you publish the enclosed letter in the Chronicle, please do not
use our name or state the city.
Just say "an Indiana Dealer."
The writer has just and sufficient reasons for disliking the one¬
order
sided
doing
on
where
Thursday, November
„''
>Y Yv; ■
quoted above and
figure which would be considered fair
a
;Y-v. Y
dealer
dealer
a
' >,,
//
unconscionable profit
excessive profit if he
in behalf of the small dealer, and for his protection, than the
has ever clone. Then just why should he be "forced" to pay
his dues year after year? The only reason is
to do business, with
the big dealer and
in
security is
a
dealers.
(Continued from page 1997)
4more
the
•
buyers.
The
investing only $500 or $1,000 at a time
profit existing for larger institu¬
scale of
result
would
be
would
we
not
be
allowed
to
adding
It
fuel to the fire!.
more
is safe to
fore
that be¬
assume
stabilization
is
accom¬
plished, a total volume of
$300 to $350 billions of pur¬
chasing
.500 to
power, or at least
$3,000
$2,capita will
per
in the phamplet just issued by you, being a cover such small buyers and they would not be followed by any darken our financial horizon.
article in yOur paper under date of November 4 reputable house which would be limited in its profit to a figure .The
estimate^, may have to be
"CAN THE SMALL DEALER IN SECURITIES BE FORCED OUT making such solicitation irapossibie, on account of the expense.
raised if the end of the "du-s
Most dealers feel that a 10%
OF BUSINESS IN DEFIANCE OF THE WILL OF CONGRESS."
limit, and 5 points maximum
and desire for fair play
'
from the
reprint
'
The
'
has
writer
been
After
any nature.
having
earnings at
of the
have
we
We
,:
in
You
received
for
ask
of
Nov.
in
4
regard
opinions
of
expression
an
:Y.YYt
to
NASD letter.
subject and you
the
on
matter
a
In the first
place, in our opinion, you misrepresent the facts when
call the NASD letter a "5% profit limitation decree," It is not a
5% profit limitation ancl it is not a decree.
you
Also, you imply that the interpretation of a rule, as given #in
the NASD letter, was put over on the membership in an illegal or
improper manner. We do not agree with this viewpoint and we
If
Customer
is
will
you
recent
indicate that-The Chronicle is leading in a movement "to defeat this
scheme." Therefore, we give you our views briefly as follows:
■
As
petition.
L'%\%%Y
NO. 28
trade and
a
profit spreads
>
undated letter, enclosing" a reprint of article
your
"Chronicle"
the
in recent years.
DEALER
.
there is
still hopeful of making up for some
we are
suffered
and
of
you
'•
a
■
fact,
make
gone,
to
as
simply
profit
over
and
up
)
am
many
I
cases.
total
power,
capita, that has
far
ever
or
been
by any nation,
proportion to the
of
out
monetary inflation that
other countries. As a
sweeps
matter of
■
■
against this 5 %
of most dealers and I
case
largest volume of
accumulated
be
profit
believe
a
would not
limit of that amount.
a
It is the
per
active the account
in the account and
more
than
if prices
substantially in
purchasing
com¬
will
you
rise
more
or
the meantime.
subsequent business.
on
summing up, I wish to state that I
limitation as inadequate compensation in
limit is sufficient in the
should
ahead,
large
customer,; that
a
on
business
of
prices
In
10%
that
umbrella
becomes because the quicker profits are set
investors like to take profits.
object to.
knows
the loss of good wilt is such that
amount
your
dealer
the smaller the profit, the
course,
;
ration", should be
two years
both sides of the trade.
put an
excessive
or
on
good
every
an
decreased
Y;;Y:
A
straight sale is not large enough, unless
on a
business
usually
do
or large accounts of
maximum of 4 points would be
a
to 5% is allowed
up
on
checked carefully
Of
to cover small
case
,'
I do believe that 5%
our
time when
a
losses
any
I think that 10%
"\Y %'
enough.
dues increased, for what I don't know, it would
be rather disastrous if the Association is responsible for a cut in our
;
.
markup is sufficient in
now,
Inc. created to help the security dealer or to make
his business more technical and troublesome."
j
-
himself for quite some time
asking
"Was the NASD
fact, in its size and
this process outdoes
anything the Germans did in
the heyday of their record in¬
tempo,
flation. The way to measure
DEALER NO. 32
/%.:•% inflations in different cur¬
effectively,.
I want to commend the "Chronicle" for its fearless and
thorough rencies is
apparently defense not
by translating the
only of the securities business, but of the American
intended to arouse opposition, and it certainly raises a question which
available amount of purchas¬
Democratic' Tradition..
■:,-YY> ;•.. - J'/..YY% •
is not justified by the contents, of the letter or
any facts connected
I have read both the Memorial to the Senate
by Benjamin M, ing power into
comparable
therewith.
'"Yv
-'"/.".y.
■
'
vY.^^YYYY V'%Y ;Y %Y. Anderson and your editorial
regarding the "5% Profit Limitation." terms. Let us assume, for the
Your article also gives the impression that a large number of
From my own observation I would characterize the American
dealers "are thoughly aroused," etc.
sake of comparison, that the
We believe this impression or Public as
being' a crazy race; we always go to extremes.
In order
viewpoint is not in accordance with the facts.
dollar is worth only about
to overcome the "evils of liquor"
we had prohibition;
This law
It is not pur desire to go into any lengthy discussion of the
made us all criminals and scoff laws, and
finally, when an attempt l/60th of a standard ounce of
matter, because we believe it would serve no useful purpose. How¬ was
made to enforce the unpopular law, we repealed it.
Y.Y" gold—the approximate level
ever, we simply desire to add that it appears your paper has) de¬
We apparently have the same situation with securities.
There
at which dollar notes sell now,
parted from the high standards which were maintained by The
was
a
need for regulation but the regulatory
board, in the usual
Chronicle for so many years past. You now seem to be engaging in
bureaucratic manner has gone berserk and has done more to hurt on the free markets of Bom¬
partisan propaganda" pure and simple, rather than reporting financial
thefinancial growth of the country than any other single govern¬ bay,
Alexandria/Buenos
news and unbiased opinions.
(Editor's Note—This letter was writ¬
mental body.
I do not think that the .securities business, both trad¬
ten by a Governor of the NASD.)
Aires, Lisbon, etc.—thus re¬
■
; • ing and
underwriting, should be irresponsible but I think we should
."IYY^AY^)'
,
maintain that the facts in the situation, contradict it very
The caption of your article is in itself a "red herring"
■
■
•
•
.
-
.
.
.
DEALER
It is indeed
gratifying to
NO.
have
Y:
29
■
take up the fight for the small
see you
dealers regarding
who is
now
time, and
the new NASD 5% profit limitation. My partner,
in the Army, and I have been in this business for a long
over
the
years
the most part,
are
very
feel that
a
Our
we
it; but
should
One
so,
to determine what the fair
ones
profit
on
:/%%. ,Y; Y ::!';:'Y.Y
all
are
we
think
we
know where
we
sell
can
seem to get "stuck" with something every so
during the last half of the year, we lost all the
we
year,
profits of the first six months' work.
Y Y V
We have become quite versatile in
dealings with, our clients:
we
help them with their Income Tax "Returns; cash their coupons
apd at times even make out their wills, all withoutcharge.
Whenever we sell securities to our
clients, it is always with the
understanding that we will watch them and, keep them posted—we
-ourselves doing most of the
worrying.
Y
our
.
Better not
use
our
There is,
name.
obviously a well-organized
move on to eliminate the small
dealers, and as long as they may be
successful, we don't want to be eliminated first.
•:\%Y;Y.Y
I
,
.
V'.,,):'
DEALER NO. 30
am
writing concerning your article in the
concerning the NASD'attempt to curb profits.
/
.'%
Y
November 4th issue
The communication sent to dealers seems to
reach the conclusion
a definite limitation of
profits is not practicable. It is true that
the survey seems to show that a 5%
profit as a ceiling would be in
line with the general practice.
However, the communication does
not seem to establish that
Ceiling! In our own case it "would be ade¬
quate, except, possibly, for small items, and Our
report to the NASD
that
covering 30
days business brought forth
comment.
no
are disturbed by the tendency on the part of the SEC to
insist on a disclosure of profit on
unlisted items which, to the aver¬
age customer, would seem out of line however reasonable
it might
be, especially in relation to the net.
We
also in full sympathy with your
attempt to oppose
sponsored
by any commission without authorization
lation
are
'Congress.'
°
*
•
■;
.
DEALER
Please be advised
in
>
•
•
that
we
do
:■
NO.
not
•
?
i;
i-
•»#
-i
-,
,
,
.
•
N.
•
ulous
of
us.
wish to
have
our
ndme used
are
dealers have
done
unscrup¬
so,
and this has undoubtedly /hurt the
an
I know
one
dealer who made 25 points
on
a
Someone
should
Previous to
have
the
office of the State of
SEC
authority
and
to
prevent
the NASD
the
anything
Attorney
of
Professor,
purs Ding
end this letter
no
more
law.
In
view
.:/':sY)YY'.'
of its
1
appropriately than [ did the
,
'
,
one
referred to above; WHY DO WE HAVE AN NASD?
%/
DEALER
.
I
Is
it
true
that
the
NASD
is
that
General's
of
ume
inflated
German
in circulation, includ¬
ing giro - deposits in the
Reichsbank
and
on
postal
checking accounts, reached
its peak value of some 26 bil¬
lion gold-marks, i.e., 40 bil¬
money
lion
paper-marks
at
par,
gold
a
at the
of
September, 1918,
equivalent to $11.3 billions.
end
NO. 33
glad of the opportunity to express to you
the attempt of the NASD to limit profits of dealers.
am
1.
ducing the "real" value of the
outstanding dollar volume to
roughly $100 billions (at $35
per ounce of gold).
The vol¬
price of 138% of
views about
my
,
dominated
by. its officers who
represent stock exchange firms?
Y
Y:.'■'./'■
'
2.
Is this whole agitation part of an attempt to curtail the
over-the-counter business by exchange houses?
.% VY Y.Y;
3.
Why did the NASD include principal sales of listed secur¬
ities in their compilation showing 71% of the sales carried a
profit
of under 5%?
If they, did, were they concealing the true
figure on
It
declined
from
there
on.
(The depreciation of the
cur¬
..
over-the-counter business?
What
4.
percentage
Y
of
the
';YYY,
Y
transactions
from
came
stock
ex¬
change houses? What percentage included municipal and other lowprofit'bonds? >YY YYv'' ■ Y,Y
"YY-'V; }:■
YY;; Y>Y
5.
Why do they not furnish the members who pay the dues a
complete break-down of these profit items?
Is the main idea of this
6.
profit limitation to protect the pub¬
Then why is it fair to charge the public 9% on purchases of
investment trust shares?
"
.
Is
7.
to
the
the
main
dealers?
idea
on
the
other
Then why not find
•
hand, to allow
a
fair profit
their average cost of doing
business, according to volume turned over?
.:
Y v
out
8."
Is it a healthy thing to discourage and penalize small firms
entering the investment business?
Will the public gain or
in the long run from lack of competition?
YY
rency
point
;
progressed from that
faster
than
"money
printing" did.) In other words,
we have
already accumulated
eight times more purchasing
power—dormant as it may be
at
present
ever
—
depreciates
which
than Germany
Unless
did.
we
from
the
dollar
here
on,
do not expect,
we
may have ere long a
times
"bigger and
volume
monetary
German
15 or 20
better"
than the
printing
press
has
produce.
So far, however, the mone¬
ever
been able to
•
questions
will show
you
the
I am looking at this
friends in the business.
way
profit limitation, as well as many of my
Please do not publish my name to this letter, I am ashamed to
say that, but under present conditions of, the NASD and SEC, they
can
make it too tough for a small dealer to dare to oppose them
openly.—A SMALL BUT HONEST DEALER.
tary-flood did not succeed in
breaking the psychological
dams which protect our
price
The
system.
that
rise of
has occurred
prices
is far less
pronounced than in the last
rest
New, York and the State Commissions.of other
be
DEALER NO. 34
bonci selling it
aged widow, buying the bond at the market
price of around
45 and selling it
immediately to her at 70, on the same, day when
the market price remained around 45.
■
kind.
can
These
against the profit limitation decree.
I do feel,
however,
that it is wrong' for dealers to make
excess profits.
A few
to
I
lose
•
t think
the
ing to regulation by individuals and not by
origin and sponsorship, this is not surprising.
T
.
and
trying to force the small dealer out of business and
that policy with a great deal of vigor,; As
offshoot, and really a branch ol the) SEC, the NASD is also resort¬
from
31
by individuals,
constructive
very
was
to
seems
an
from
this matter.
We
it
legis¬
..
.
law and not
Under date of June 25, 1942, you published a letter that I wrote
regarding the NASD.
At that time I was not a member and I am
happy to relate I am not a member now.
It was my opinion That
lic?
We
^
by
comments
banks, exchanges,
and security dealers would do well to try to
accomplish this.
Labor,
the farmers and others are represented in
Washington and we should
not be ashamed to pursue the same
policy.
the NASD
probably "riskless," to the extent that
buy anything unless
even
often.
be.
transactions
never
have gathered together a clientele who, for
even to the extent that they seem to
loyal,
should be the
we
transaction
■
regulation
Anderson's
First I wish
dealers.
war,
to thank you for
You did
fighting the battles for the small
this when the NASD tried to put most of us out
of business by putting
to remain in business
a
as
$5,000 capitalization
a
on each of us in order
member of their association. • As this was
against the Constitution, of course, the SEC threw it out.
(Continued on page 2000)
Now
comes
and certainly bears
no
proportion to the growth of
volume
tial
in
actual
purchasing
anc^ poten¬
power.
It is
easily explained by war-time
Volume
158
Number 4230
THE COMMERCIAL
& FINANCIAL CHRONICLE
1999
shortages and related phenom¬ 1790, the orators assured the | —underlies Mr. Eccles' recent well as one of $300 millions. of Full
Employment is shown
which are temporary public that every livre was oratory to the same effect.
Indeed, if this were true, the by the fact that none of its
five-fold secured by the 2,000
by nature and may disappear
in.a more sophisticated edi¬ monetary volume could be in¬
protagonists bothers with de¬
when the war is over. But the million livres worth of landed
tion, the argument runs in flated to any extent.
fining what it means—does it
accumulated mass of money is domain
confiscated
by the | terms of technological progThe Meaning of Full
include, e.g., all the women,
going to stay with us. So will revolutionary government. As ! ress and the expansion of pro¬
minors and aged people, etc.,
Employment
the problem: whether or not a matter of fact, the "mort¬ duction facilities.
According
employed in war-time?—or to
Briefly, full employment is
the inflated monetary volume gage" turned out to be even To this
version, it is the cursupposed to cure the conges¬ explain how it would be com¬
will some day ignite the price better than that, land values
| rent production of goods, once tion
patible with such "minor"
of the
monetary chan¬
system. Or can one "control" rose promptly as did all other | it is converted for peace-time
matters as: Freedom of the
nels.
It is the
magic device
a
monetary inflation of such values, creating the "need" demand, that guarantees to
worker to choose his location
(or
magic word) that solves all
for more
dimensions?
offset the increased volume of
ena,
.
money,
Two
sult.
Two- sets of
inflation
away
Sets of Problems
problems face
the
The
One has to
of the
do with
a
run¬
the
re¬
crude idea and
'purchasing power. If so, we
; might be
able to carry a
problems at
more
arbitrary valuation $3,000 billion national debt—
assets of the nation- ! which,. means
virtually as
same
under these circumstances.
us
same
and
was
issues
no
stroke.
one
No
and
the
business
occupation;
consumer
Freedom
and of the
of
in¬
cycles, social
vestor to use their
purchas¬
worries, and
about the over- ing power; Freedom of the en¬
fiscal
or
worry
expanded volume of purchas¬ trepreneur to buy and sell, to
stopping
the flood: balancing the na¬ including those underground i much effective
demand—as ing power. The
(Continued on page 2000)
magic nature
tional budget.
The other has
to do with absorbing the pur¬
chasing power accumulated
by that time. Balancing the
This auiiOH/icemeiit is not an offer lo sell or a solicitation
of an offer to buy these securities.
budget is a preliminary to
1 he
Offering is made only by the Offering Circular.
stabilization
proper,
which
has to be brought about by
the
additional
process
of
"neutralizing" the vast
0
amount of prefabricated pur¬
chasing power. The two prob¬
lems are closely interrelated,
§15,000,0
0J'AT'-
The Atlanta and Charlotte Air Line
but the first, remote as it may
is by a long shot easier
accomplish than the sec¬
seem,
to
with the
F
unpleasant prospect
the
deflation,
a
Dated November
even more seri¬
economic and social im¬
plications.
It is the
particular,
in
one,
makes
all
increase
in
mone¬
by the economic system be¬
of the willingness of the
public, and of business, to
"hoard" liquidity.
But after
enormous
liquid holdings
have been piled up, and the
cash. savings of the nation
reach far beyond what the
public cares to hold perma¬
nently, control by monetary
manipulations becomes inef¬
the
Controlled
ished
from
the
For further information
regarding the Company and this issue of Bonds, and the relationship between
Company arid Southern Railway Company, reference is made to the Offering Circular and the accom¬
panying letter of The Atlanta and Charlotte Air Line Railway Company dated November 15, 1943,
which should be read prior to any purchase of these Bonds.
Price 100%% and accrued interest
that
Subject to the
of the Company s letter dated November 6,1943, inviting bids, the undersigned and others
Offering Circular have agreed severally to purchase these Bonds from the Company at 99.039% and accrued
interest. These Bonds are
offered subject to prior sale, when, as and if issued and accepted by the purchasers and subject to
authorization by the Interstate Commerce Commission
of their issuance and sale and to approval of counsel as to all legal
intellectual
place. Instead, the¬
ories are prevalent at present,
the
gist of which is the
claim that there are ways and
means to outsmart the
vastly
volume
demand.
The idea is that
can
have
avoid
at
in connection therewith. It is
expected that Bonds in. temporary form will be available for delivery on or about
the distribution of the Bonds by attempting to stabilize the price thereof, Halsey,
right to purchase and sell Bonds, in the open market or otherwise, for either long or short
account.
This statement is not
may not
be discontinued
circulated from
we
that the price of the Bonds will be stabilized, or that the
stabilizing, if commenced,
time. The Offering Circular may be obtained in any State in which this announcement is
an assurance
at any
only such of the undersigned-and other dealers
as may
lawfully offer these securities in such State.
an
and
matters
November 29,1943. In order to
facilitate
Stuart & Co. Inc. reserves the
effective
of
terms and conditions
named in the
van¬
market
inflated
'
the
Inflation talk
of the 1930's has almost
subject to authorization by the
Southern Railway Company will join in the new First
Mortgage and will agree to make the interest and
Sinking Fund payments required thereunder as they become due, and to subordinate all its estate, rights
and interest in the mortgaged premises to the new First
Mortgage Bonds.
.
wonder
are
The net proceeds to be
received,by the. Company from the sale of these First Mortgage 3^4% Bonds,,
together with funds to be. advanced by Southern Railway Company, which advance will be satisfied with
$5,000,000 principal amount of the Company's Second Mortgage 3^4% Bonds due 1963, will be used to
pay in full at or before maturity $20,000,006 aggregate principal amount of the Company's
presently out¬
standing First Mortgage Bonds, Series A and B 4y2% and 5%, due July 1, 1944.
cause
Small
1963
Company's entire line of railroad since 1881 has been in the possession of and operated by Southern
Railway Company or predecessor as an integral and essential part of its main line between Washington,
j). C. and. Atlanta, Ga.
r
tary volume is easily absorbed
fective.
1,
The
"con¬
Inflation may be controlled,
it has been time and again,
the
of these Bonds
Interstate Commerce Commission
trolled inflation" futile.
when
Due November.
i
The issuance and sale
second
which
about
talk
1,1943
second
might have
ous
as
Mortgage 3%% Bonds
If the first is burdened
ond.
of
First
Railway Company
overexpanded
money supply, use it to raise
living standards and to turn
the wheels of employment,
the
evil
the
same
distortion
of
HALSEY, STUART & CO. Inc.
time
LADENBURG, THALMANN & CO.
prices
and incomes.
OTIS L CO.
WERTHEIM &.CO.
^INCORPORATED)
HALLGARTEN & CO.
NEWTON, ABBE & COMPANY
BURR &.
COMPANY, INC.
Outproducing Inflation
The most popular, and crud¬
est, fallacy along that line is
the
proposition
that
the
flood is easily offset
by the sum total of available
GRANBERY, MARACHE & LORD
COURTS & CO.
HIRSCH, LILIENTHAL & CO.
THE MILWAUKEE COMPANY
DEMPSEY-DETMER &, CO.
GREEN, ELLIS &. ANDERSON
money
Two
assets.
John Law
centuries
ago,
argued that Louisiworth infinitely,
ana
than
COOLEY &. CO.
STEIN BROS. L BOYCE
CLEMENT A. EVANS & COMPANY
BIQREN & CO.
COHU &. TORREY
MARTIN, BURNS & CORBETT, INC.
INCORPORATED
was
more
HANNAHS, BALLIN &. LEE
the
million livres he
few
hundred
was
printing.
(Which is certainly true; the
trouble
was
that
Louisiana
unsaleable at the time.)
When the Assemblee Nationwas
ale Issued the first 400 million
livres
of
assignats in
April,.'
F. L.PUTNAM &
r
CO., INC.
THOMAS & COMPANY
WATKINS, MORROW &, CO.
Definitive Bonds in coupon form in the denomination of $1000
registerable as to principal and in fully registered form in denominations of $1000 and authorized
multiples thereof. Principal'and semi-annuaHnterest, May 1
and"November 1, payable at the office or agency of the Company in New York City. Redeemable
at the option of the
Company as a whole at any time and in pari on any interest date, on 30 days' notice if redemption is to be on an interest date and on
60 days'-notice otherwise, at 104%% and accrued interest .to and including November.1, 1946, and. thereafter at the reduced
redemption prices set forth in the
Offering Circular. Also redeemable for purposes of the Sinking Fund on any May 1 at 102%% and accrued interest to and including May 1, 1948, and,
there¬
after at the reduced redemption prices set forth in the
Offering Circular. The information contained herein has been carefully compiled from sources considered
reliable," and while not guaranteed as to completeness or accuracy, vre.believe it to be correct as of this date.
,
•"
November 18, 1943..
.
"
* \
■
.
.
2000
THE COMMERCIAL &
and yet the SEC allows
Seen
Enforcing Profit Limitation Decree
Despite Avalanche Of Opposition
ment
takes
5%.
second try and
vicious
a
also; it lines right up only in
one
I
a
small dealer has a position on any of
The whole set up is controlled by the large
that not
presume
houses and
one
year
who
we
now,
subscribers to the latest
are
assesment of $49.50
"No
at
are
heartily in
association if one
is needed whereby the small dealer has some say in the forming of
rules and regulations, which now he is not even considered but told
to take it and like it or else get out.
The whole set upx is very plain to all of us that the ones in
power are trying to hand over all the over-the-counter business to
the large wealthy firms.
They have no regard to local securities
markets, and evidently do not realize this market would dry up,
as no dealer can spend the time and energy necessary to find markets
for closed corporations stocks on a 5% profit.
This market alone
am
of forming
favor
manufacturers
have
which
association
an
is
nation-wide
This is the kind of
their sales.
on
be, and could be if the men at the head of it were not tied
up
use
name
my
wishes.
-
The
';;v
NASD
realize
this
visible."
with
A'?A
A A-'-
■
as
same
commissions
dealer
fees, and
or
Freedom
same
aside, let
the
/,/AA'.' AAvA? VaAA'A A\A%
price they will sell them to
us
or
other member dealer
any
the
time, and
the
Board,
In
of them is
one
Perhaps that accounts for it.
or
same
now
represented
are
'
.
oqp particular case, we put in many weeks of work and time
a particular bank on buying a certain class of securities in
which they have had
a.continuing interest ever since. But do we get
the business now?
Only a very small
The greater part
to Blank & Co., who sell it to them at the same price at which
buy it.
1
'
;
can
after
con¬
or
purchasing
including the house of Blank
Costs Under Full
a
Employment
&
As
to
ment
Full Employ¬
costs,
the full utiliza¬
means
of
tion
A DEALER NO. 39 AA'
ex¬
of the
be the
power
public, which will
hangover from the years of
an
unbalanced
budget, or
must keep it somehow from
being disbursed.
using
A;'AAAAAA'A'A:
Full Em¬
prevail
either have to absorb the
cess
selling
V;%
will
other small
There
do about it.
way as we
from
us
overcoming the in¬
flation hazard, it has to ac¬
complish two things. On the
supply side, it must not give
an
impetus to costs to rise.
On the demand side, it will
We complained to the NASD about
this, and while it seems
to be in direct violation of the rules of fair
practice, nothing
was done about it. I know certain members of that firm were on the
Board of Governors at the
on
of
To be useful in
war.
trolling
us
dealers here who feel the
all
us assume
ployment
broker.
to
for
Leaving these questions
ex¬
on
to
bureaucratic totalitarianism.
by such member accorded to the
are
small dealers.
"One Nation In¬
AA:/A A^A'AAA ■'AiAA..l:;Aa
;
.
conditions
Co.,1 it
would be preferable not" to head it * * * (name of
city omitted by
Editor), but merely say West Coast or Pacific Coast dealer.
Thank you again for your forthright comments in favor of the
A
■
applies to all.
..
prices, for the
from exposing his
political misuse;
taxpayer
welfare
all
plant capacities,
the reduction of overhead per
unit of output, and an incen¬
The small dealer, and the not so small, can be and is
being forced
out of business.
It applies not only to the securities business but to
other and all kinds of business.
It is a part of the sinister efforts
of the so called New Deal administration to control all
business to the
All of which should tend
point of exclusion of free enterprise and private initiative.
DEALER NO. 35
should
A (Continued from page 1999) A
fire; Freedom of the
hire and
the
on
us,
us and I trust this letter will also
along in arriving at a fair decision.
Kindly do not
in conjunction with this letter to you.
Sincere best
.'■■"■A ^ A/?
AlAA'A
' -
A,:-
over
they would treat a member broker or dealer. In other
words, they will buy or sell unlisted securities to the banks at the
not
Many thanks for trying to help
cause
good deal
a
Should you decide to publish this letter, I would
appreciate your
my name or the name of my firm, and as all local dealers
would readily identify
in
the big boys, to throw all the business to them.
help the
invest¬
The dealer
I know of any number of cases where the banks are treated
by a
certain large-Eastern
underwriting house with an extensive wire sys¬
tem the same as
we
association the NASD should
an
same
general public."'
goes
membership, but they are not telling their members what profit to
put
are
part of it.
I realize that your publication is the oldest of its kind and highly
respected, so perhaps you can do us a lot of good.
I don't know
of any other source that is even thinking of sponsoring our,cause.
The
we
terms and
same
another
constitutes millions of dollars from the East Coast to the West Coast.
an
on
member shall deal with any non-member broker or
cept at the
investment trust shares and some other issues.
I
more
and in each case
specifically states, "but does not include a bank."
Then, under1 Rules of Fair Practice, page C-13, Section 25(a), it states,
their mercy.
From an association of helpful
protection it has become one of almost personal persecution.
As
far as doing business as: only being registered under the SEC and
as not as a member of the NASD, the SEC investigators come around
just the same for routine inspection, so where is the real advantage
in belonging to the NASD.
Not any except to be able to distribute
a
or
load of 7% to 9%?
subject of discriminating against the small
dealer on the part of the NASD, I would like to have someone answer
this question for me.
On page B-10, Section 3, Paragraph A and B of
the By-laws of the,NASD is the definition of a broker and
dealer,
'
regional committees.
pays a
no risk
there, and the cost to the customer is
Why the difference?••
While
different way to put the small fellow out of business.
the
dealer to make 5%
a
trust, where the customer
Thursday, November 18, 1943
,
(Continued from page 1998)
their
FINANCIAL CHRONICLE
lower costs and to counteract
tive, in theory at least, to util¬
ize
technological inventions.
to
•
-("iAyAi.;;
DEALER NO. 36
is with
It
a great deal of interest that I have read
your article
4;. also, the article by Benjamin M. Anderson, Ph. D., under
date of Oct. 21, 1943."
;
:
•
:
(
I am particularly interested in knowing whether a
copy of these
of Nov.
,
articles
has/been placed in the hands of our Congressmen and
I, of ^course, realize /this would involve considerable ex¬
pense.
However, I would like to suggest that if it has not already
been done, it might be a good idea for each investment dealer in
two
Senators.
the various
States to
that
see
a
copy
be placed in the possession of
With reference to the limitation of members
profits an interest¬
ing side-light is the letter sent to members-by the NASD before Oet. 1
| boosting the annual
assessment 50% because the executive personnel
would require $321,000 for total expenses. Whew! 321 thousand for a
little association of approximately
2,200 members for the fiscal
year
beginning Oct. 1, 1943.
"A
by purchasing the articles through you.
offering the above as a suggestion and feel there is a possi¬
bility that this might be one way of helping a good cause along.
Would be interested in hearing from you.
am
-A A ' A AAA!
•
DEALER NO.
*
,
I.
heartening to "read the first of the hundreds of letters which
publication will receive pertaining to the profit ruling of the
NASD.
Most of them reveal facts that must be obvious to the indi¬
viduals responsible for this ruling,
assuming that they are all experi¬
enced in the securities business and thus
fully aware of the
problems
DEALER
We
are
small investment
a
NO.
37
!A-
banking house, and
the National Association of Securities Dealers.
mation relative to
our
A-
transactions
■
are
of the
?
members of
We submitted infor¬
recently requested by the As¬
sociation and subsequently received a copy of the letter sent
by the
NASD to its members.
After carefully reading the letter we feel
there is nothing in it which in
any way places a limitation of 5%
on the amount of
profit which can be taken by members.
It merely
sets forth that the average
bers
5%.
was
as
charge made by
We feel there
are
a
percentage of the
mem¬
certain limits to the
charges a dealer
can make Which
might be considered fair and equitable. There are
some instances where this
charge may be in-excess of 5% but we also
feel there
are
other instances where the
ably less than 5%.
\-A;
.
.
DEALER
Again
this time
the ."Chronicle"
in the matter
comes
charges should be consider¬
AiAAA
the
aid
of
the small .dealer—
of
profit limitations.
We dealers outside of
the larger financial centers are
fortunate in having such a publica¬
tion to champion our cause.
You are to be congratulated on your at¬
titude, not only in this, but other matters in connection with the wel¬
fare of the small dealer.
We have felt all
was
not
serving the best
as
small
our
margin of profit.
organization is concerned, I believe our average
profit is much less than 5„% on our total
transactions, but there are
times when it is not., It has run as
high as 10% on so-called diskless"
transactions, but in those particular cases I think it was
justified due
to
the
circumstances involved.
' I don't like the word
riskless any¬
have very few transactions that
are riskless.
Many
times we will verbally confirm securities
to customers at a
price, and
have the market changedn us before
we can
buy it. We certainly
have a degree of risk there.
Again, due to the difference in time be¬
tween the Coast and the
East, we often make a trade with the cus¬
tomer after the Eastern or Middle
Western markets-are closed.
The
prices at which we confirm such trades include* What we feel
is a fair
profit to ourselves. Now we are unable to buy or sell these
securities
to local or Pacific Coast
dealers, and are forced to await our opening
the -foil-owing
morning, at which time it is 11:30 a.m. in New
how, because
and
10:30
short
or
we
a.m.
long;
in
or
the
Middle West.
both, overnight.
Sometimes it works to our
but if it works the other
a
words^ we have been
Are these riskless transactions?
make less than
5%,
might make more than 5%.
Is it
such a transaction?
It's a so-called
we
we
fair for us to be censored on
"riskless transaction" but we are
Again, what about the
other
disadvantage and
way
shares of
York,
In
taking
customer
a
risk.
who says he
will take
certain
so
many
stock? We confirm it at a
price, and after we have
bought the stock to fill the order, he decides he would rather
have
something else.
We don't have many of these, but we do
few.
Can these be said
have
a
to be "riskless transactions"?
Why should profits be limited
to
5%
on
transactions of this kind,
law
of
there
on,
diminishing
turns becomes
re¬
operative, and
the
opposite development is
place. Costs of
obsolescence, losses due to
legion of small and large dealers comprising the membership
Association.
The "Chronicle" is rendering a distinct
public
accidents and
rise
etc.,
and tear,
wear
as
over-exploited
resources
are
actually
or
ex¬
Labor costs in par¬
hausted.
ticular, tend to rise due to the
employment of less efficient
service in opening its columns to a discussion of this
ruling. Let us
hope that the Governors of the NASD will read these letters and be¬
come
better acquainted with those whom they are
presumed to
workers, and to the overstrain
represent.
of all of them.
A'Aa
AAA .A.'*AAA
-
*AA AAA,--
■
A A AA
■
Quite obviously this 5% figure is something that must have been
pulled out of the hat.
I cannot subscribe to any theory that a man
or group of men
may be considered qualified to determine and de¬
cide upon any fixed percentage of profit as a solution to this
prob¬
lem.
I recognize that the problem
exists, but it is apparent that the
trying to solve it in much the same way as,was attempted a
generation or so ago in the treatment of another public issue.
As I
recall it, a minority group once became
powerful and in their effort to
NASD is
abolish
excesses
move
are
in
drinking they
now
matter of
a
gave
prohibition.
us
history.
The results
'.A'A.,..
.
'
A
>
Moreover, such
gives labor an ex¬
cellent
bargaining J; position
which the unions surely will
not miss, especially so when
situation
a
war-time
will
be
this writer studied and revised a
large portfolio for a widow.
The revision involved the sale of a small
part of her securities and
bat, to
In the first
case
the purchase of a
ence
similar
amount for
a
total turnover, of
assignment involved a considerable amount
to costly services and the application of our
some $36,000.
study and refer¬
own years of expe¬
of
of the
the
in
causes
very
process.
inhibitions
out
(if
any)
In
short, Full Employment
It is something of a coincidence that this office
has recently car¬
ried out two transactions which reveal the
fallacy of any attempt to
fix profits and be fair minded or consistent in the
The
along that the NASD
interest of the small dealer in
many ways, and this question of limit¬
ing profits is just another instance of its
being run for the benefit of
the dealers, located in the
large financial centers, who do a large
volume, and can well afford to work on a smaller
As far
the
of that
NO. 38
to
of
From
maximum.
bound to take
40
It is
your
inflationary price trends. But
only for the period
until employment reaches its
this holds
the
publish, this letter <1 beg to request
quite ready yet? to go way
that my name not be given as I am not
out on a limb. 'AAAA''....A'-A.
- AAA, .?■
expense
I
A
If by any chance you should
their Senators and Congressmen which might be done at a very small
A
?
:
'
the
from
side
way.
longer
of
run,
costs,
inflationary
the
course
which it is
say
supposed to com¬
nothing of the costs
of mal-investments which it is
likely to foster.
In addition, it is bound to
rience to this client's individual requirements.
Proper execution of
the various orders involved likewise called for the utilization of
be
equally costly quotaton and wire services.
ation.
The client upon completion of the transaction
expressed her grat¬
ification in writing both to this office as well as to her
attorneys.
If
we
were
to charge 5%
the extent of
on
the business
$1,800.
some
less than one-fifth of
that
would
we
Quite obviously
amount
as
our
have profited
to
accepted something
gross and we were satisfied.
we
accompanied by high tax¬
(The protagonists of
Full Employment claim that
it creates
come,
a
large national in¬
which in turn permits
the balancing of the national
budget, if not the partial re¬
stock selling at $12 per share., This
order, by the,way, came to us payment of debt, out of tax
by a member of our sales department to whom we paid the customary proceeds.) But a
high level of
commission.
A 5% mark-up on 15 shares of a
$12 stock gave us $9 business taxes
is; necessarily
gross profit.
From this. $9 our salesman received $5.40, leaving us
$3.60 for our own remuneration. And this $3.60 is a gross figure. We inflationary in effect; it raises
costs directly by the process
have projected our fixed monthly overhead
against a definite num¬
ber of transactions over a six months' period and find that the actual of
shifting the burden on the
At about the same time one of.
great many in this group, favored
clearance
runs
cost
of
every
slightly over -$5.
our
transaction
The
at
a
dollars
actual
and
which
conclusion
forced is that the small investor has
willing to accept his
smaller clients, and we have a
an order for 15 shares of
with
us
no
.her business "on
cents loss'.
These are
transactions.
or
to
transpires 'in
which
place with
a
us
office
we
are
complimentary basis and
not
hypothetical
cases
your
but
columns
what extent the public is protected under this
ruling. Are. we
to inform the small investors that because of
arbitrary and unstudied
to
as
VuAws
from
busiv's^?
in
those
-
high
authority
that
we
cannot
consumer—a
therefore
unless
May I, therefore, inquire through
.
this
are
we
accept
process
ment
This eo.mnany
is composed of individuals of 15
their
experience
and over,
We serve,a.list of clients having confidence in'our judg¬
ment and integrity.
These clients have been consistently improved
(Continued
on page
2012)
—
employ¬
and
indi¬
wasteful
manage¬
ment.
Production Volume
A
,
conditions
promising
full
rectly by inviting
extravagances
in
Volume of
.
.
very
under
years
vs.
Money
However, the essential
question is the absorption of
A
.
(Continued
on page
2002) '
Volume 158
Number 4230
THE COMMERCIAL & FINANCIAL CHRONICLE
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Today the United Nations
to
win
a
decisive
joined in their determination
are
victory. On
every
felSP
M|§fi
battle front and on every
farm and in every production centre a
singleness of
«i|
purpose
"
1®
is'Speeding vunconditional surrender."
;
?;
Tomorrotv millions of soldiers and workers
can
have steady
l|
|j
employment if they also unite with determination to bring
about -"a
just and durable peace."
Prosperity
1^
be realized only through the will of an
informed and a united people. With their courage and their
-
1
determination, the people's will to accomplish a righteous
i!
is irresistible. ;• •' j:'■'
peace
•
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can
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-
■.
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-
^
war
ends—but
the peoples of the United Nations make loud
*1
their demands for "a just and durabfcpeace."
T H EI NTE RNATIO N A L
■■1
..'
People here, in common with people of other lands, can
-
ll§|||2: :222:ohly'if now
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NICK E LC O MP A NY, IN C
Subsidiary of The International Nickel Company of Canada, limited
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New
York, N.Y.
Awarded to
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A'.® I
2002
THE COMMERCIAL & FINANCIAL CHRONICLE
1.
'ages and
in
tor
payrolls than the
public imagines. Had every wage
i
•
■.
will
Over 75
cents of every dollar paid out to
individuals will go into payrolls,
as
compared with 9 cents going
to property owners
in the form
of dividends, rent or interest, 9
cents going to farmers, and slight¬
ly more than 6 cents going to the
self-employed.
Since 1939, pay¬
this
billion.'
payrolls
history
$100
surpass
on
year
the increase of
rents)
had
The
rise
cent.
been 24 times
in
payments
risen
15
per
payrolls
in
by
has
as
the rise
property
owners
large
as
to
an
opportunity
shrinkage of about 3.8 billion in
the size of the working force, of
about 4%! in the length of work¬
earnings have fallen short of the
rise in the cost of living.
;%
more
people
for
counts
at
rise
or
next
largest
about
This
work.
one-third
over,
$21.2
billion.
the
The
of greater pay¬
source
and
industries.
$15.2'billion
opportunity
given men
paying jobs
to
33%
a
It
accounts
of the increase.
which
to
the
has
for
The
has
war
into
move
better
been
equivalent
increase.
About
wage
If the Little Steel formula
ac¬
of
revised
I have
as
ing. hours, and
and
has
been
four
all
as
times
other
im¬
as
of
causes
larger incomes put together. Of
the major economic groups in the
community only the farmers have
a
proportionately greater in¬
had
in income than wage earn¬
crease
and the average annual return
of farmers is still little more than
ers
half
that
of
factory
workers.
Plainly it larger incomes threaten
inflation,
wages
represent
the
heart
the
of
Wages
rate
problem,
may
either
mean
payrolls.
or
wage,
What part have
changes in wage rates or in pay¬
rolls played in
creating the prob¬
lem
of
inflation?
record
of
Up
to
the
now
pay¬
1944, by
about
about $7
one-third
of
billion—
the
increase
between 1942 and 1943.
time
Straight-
hourly earnings would
about
5%.
The
the
moderate
of
payrolls,
What
will
good.
The index of
the cost of living has risen only
25%
in
three
years
although
income payments have doubled.
What part has wage policy played
this result?
achieving
problems
are
ahead?.
are
preparing
What
The unions
drive
a
"Little SteeF' formula.
the
on
Is the na-
tonal wage policy about to
down? If, so, will there be
break
dis¬
a
orderly
and
dangerous
rise
in
prices? What is likely to happen
to payrolls and wage rates after
the
war?
Is there
for
need
na¬
a
tional wage policy after the war?
If so, what should it be and how
should it be implemented?
■
v
.
;
,
four
War, the prices of finished goods
and the cost of living would of
necessity have: risen
in
the
same
proportion, and the cost of living
would have been 50 to 100% above
its present level,
The
been
as
national
denounced
inflationary
raising
by
some
has
persons
the ground that
to meet increases
on
wages
in
policy
wage
cost
the
of living
would, in
turn, cause the cost of living to
rise, thus creating a vicious spiral.
Nevertheless,
for
the
last
two
the
years
rate
have risen has
creasing.
at
which
,,
wages
are
increasing started before the
nation had a wage
policy and the
institution of the policy has not
accelerated the decline in the rate
increase.
Must
conclude
we
that the
Wage rates have increased con¬
siderably less than the published
policy has had no effect?
Probably not, for pressures op
wage rates may have been grow¬
ing.. It does, mean, however, that
figures
the
'
,
II
:
•.
to indicate.
seem
Accord¬
most
important restraint
increase has been the
ing to the United States Bureau
wage
of
portunity
Labor
ings
in
Statistics, hourly earn¬
manufacturing have in¬
creased from 63.3 cents in
96.3 cents in
These
July, 1943,
hourly
however,
overtime.
1939 to
52.1%,
or
earning
figures,
affected by penalty
are
When overtime is elim¬
inated, the increase
was
from 62.2
cents in 1939 to 90.3 cents in
1943
July,
45.2%. Even these figures,
or
however,
not
are
satisfactory.
Since they are weighted
averages,
they are affected by the move¬
ment of
from
men
low-paying in¬
higher-paying in¬
dustries
into
dustries.
This movement has been
very
large because the
tries
pay
dustries.
more
than
When
war
indus¬
civilian
in¬
figures
the
are
corrected
for shifts from
low-pay¬
ing to high-paying industries, av¬
erage straight time hourly earn¬
ings in July, 1943, are found to be
82.3
cents—an
currently
pub¬
lished
figures.
In fifteen manu¬
facturing
industries,
employing
about 10 million
workers, the in¬
in
earnings
straight
was
from
1939 to 86.2 cents in
19.2%.
This
latter
time
72.3
to
hourly
eents
in
high-paying
ones.
all nonagricultural
workers
the increase in
price of labor betweeii
1939 and July,
1943,
little
more
than 20%
restraint
strikes.
was
has
op¬
higher-
most
disappearing.
The
size
It
Both
a wage
formula,
of
in
Curi¬
was
followed by a
rate
in¬
of
straight-time
hourly
earnings.
of how
it
has
however,
control
the
been
accomplished,
reasonably
has been
effective
established
over
price of labor.
%:v:.
Has
the
This, however, does
inflation,
mean
The
public
already,
demonstrated < a
disposition not to reach
marked
for
goods at fancy prices
in
be
IV
been
fair
the
community?
seems
on
Largely
working
to
the
policy
wage
workers
and
The
the whole to be:
because
of
conditions
to
answer
"Yes."
improved
which
have
enabled piece workers 1o
increase
their
earnings and fictitious
up¬
grading of time
work'prs,Hhe7ayprage straight-time hourly
earnings
factory
workers
have
and
cost .of
in
the
index
of
The
rise in prices does not spring
ly
from
the
increase
tionary gap
in
duced
in
the
infla¬
the slow increase
or
prices', which
would
be
pro¬
either by the present wage
policy
the proposed
by
or
modi¬
policy.
The real
danger of inflation springs from
the
possibility
that the national
policy will be wrecked by
wage
the
insistence
sentially fair, three
basic
should be made in it:
es-
changes
more
and
in¬
an
duced
are
In fact, it
painful way
tariff.
would
be
the
reduce
to
the
It would make it easier for
foreign countries to earn dollar
exchange and would thus help the
United States spread hope and op-
two
sides
be-*
of
the
If
and
equal
income pro¬
disbursed
so,
income
by definitionPeople's
earnings serve to purchase
the/goods and services pro¬
duced; the goods and services
coming on the market are
taken up by the current in¬
come of the
population.
be equivalent to a reduction in the
least
income
—•
whatever their size.
■.
tariff.
the
present.
easily corrected by rais¬
ing low wages and low prices than
by reducing high wages and high
prices.
%
:
3., A higher price level would
that
in
order to
cents
per
the
at
men
gain
hour
j
Worked
of
policy
wage
whether
must
be
we
all
to
it
fear
Board
and
time
to
reduce
tortions
to
are
Railroad
are
bar¬
in
aggravated.
the
Further¬
pressure for wage
have
no
the
prices.
increases
desired
If
that
assurance
the
bargaining
strong rela¬
wage
to raise prices, the
higher
wages
rapidly
so
result of wage
no
push
to
If
up
generate
prices rise
increases, there
that
assurance
pressure
may
as
excesses.
the rise
will
stop at about the right point in
relation. to foreign price levels.
The national interest in the re¬
duction of distortions in the wage
and price structure and in con¬
trolling the
rate
that
it
or
prices
at
which
and
and
the
seem
very great.
It
worthy of a nation
of grownups not to establish
ma¬
chinery for implementing the
tional
interest
in
these
na¬
matters.
But how would the national inter¬
est be
cial
enforced?
question.
That is the
Even
in
cru¬
time
of
With
from
pre¬
more
support
ferred treatment. In time of peace,
with the public weary of controls,
Mr. Byrnes, from Mr. Vinthe President, and es-
from
] peciallv from the public than
far
the, difficulties
received,
main
will
wage
some
get
happen
-
to
wage rates after the
j drop by
drop will
over S20
come
greater
years
war
payrolls
billion.
about
re¬
the
which
payrolls
rates after the war?
unchanged,
than
be
enforcement,
after the
the
war
na¬
adjustments
the
national
,
in
wages
interest
re-
This
This j
the markets than what is
disbursed
as
cur¬
2k>
says,
adds
of liquid re¬
turning around,
out
and
serves
times
volume
a
demand
a
of
year,
effective
amounting to $250
currently pro¬
billions to the
duced national income.
If the
latter is
equal to $150 billions
per annum,
then $150 plus
$250 billions, or a total of
$400 billions, bids for the
goods and services worth (at
given prices) only $150 bil¬
lions.
The
effective
tive
balance
demand
between
and
effec¬
supply is completely
(Continued
on
up-
2008)
page
nomie
institutions require such a
policy, and it is only a question of
time before the public recognizes
this need.
At present there is a
glaring gap in our institutions.
This gap spring's from the fact
that the level of employment de¬
pends
of
not
that
the
mean
wage
policy—except
war.
On
the
a
in
contrary,
national
time
our
upon
too
cerned
of
eco-
decisions and policies
groups which
economic
many
are
small
about
ployment.
to
the
Policy
be
much
level
con¬
of
em¬
making which
ignores the national interest in the
volume
tolerated
(for
of
employment
independent
icy of the
soon
can
be
only when employment
reasons)
high. Hence, though the
a
does
will ! country will never have
because of
to
j quires.
!
as
rently created by production.
The additional $100 billions
For
ever.
tion will have to trust to luck
VII
to
of
will
they
the markets
on
down-payments for consum¬
ers' loans.
Obviously, to the
extent that this is done, more
purchasing power flows into
wages
war, with keen hostility by the
many people disagree.
If public to
strikes, the government
country is to have a stable finds
great difficulty in enforcing
wage policy which is enforced re¬ its
wage
policy against unions
gardless of threats, the arbitrating which
are determined to get
have
disbursed
effective demand and used
amount
the
must
Suppose that
$100 billions will be
reserves,
or
they rise is
does not
rise
which
bodies
$50
effect
for
is
Emerg¬
decisions
distortions
there is
as a
bound from time
make
the
more,
speculative
groups,
the
Boards
assurance,
to
wages
wage structure. Bargaining power
may be so distributed that the dis¬
for
large, and
small, weak or powerful. That is
the
keystone of any anti-infla¬
tionary policy.
The War Labor
ency
of
easy
satis¬
not,
or
without
no
quid
be
increases, the pres¬
higher wages may be de¬
flationary. If employers find it
is, regardless
like
applied
and
will
gaining of employers and unions
pass on
factorily. Even worse than mere
prohibitions .of strikes, however,
tional
is
sure
prohibitions^ '.agahist
never
controls
however, that leaving the deter¬
%%•"""'V.-/"-; prices
have
arej
-
tive to the ability of employers to
front
few additional
for themselves.
tial treatment would quickly pro¬
General
■
annoying and
scrap
war
There
mination
upon
Yielding to pressure for preferen¬
strikes
terrific.
guns
suddenly
pressure
burdensome
the
Y\%v
power of unions is too
sup¬
a
duce chaos..
The
completely to
would
groups in the commun¬
some
after
years
;>%■' .1%•:.
strong
of.
aggressive and
powerful groups upon preferred
treatment.
Experience - shows
If
policy is
be
will
fications of the
What
V
the wage
in
evitable result of the war, would
foregoing analysis suggests
that the real danger of a disorder¬
and
wage
Distortions
silent?
the
living.
2.
price structure, which are
national
Discrepancies
equation due to changes in
inventory holdings and in the.
hoarding and dishoarding of
money may be disregarded at
reduction of taxes.
a
the
out.
tween
would increase the yield of given
income tax rates, thus facilitating
several
living since January, 1941—27.7% ! have thus
to August, 1943, as compared
22.5%
larger
prices
and
to
up
with
interests, etc.
paid
wages
dollar has.
a
wages,
That would be the skeleton
portuhity throughout the world.
purchasing power un¬
of a Fuil Employment econo¬
%%
til the" kind of goods which
vni
it
my—if there wouldn't be a
wishes to buy are available.
If
Should the movement of wages
fantastic volume of
the war against Germany ends by after
the war be left solely, to bar- i
savings
spring, which seems likely, the gaining between
employers and j carried over into it.
Suppose
"inflationary gap" next year will unions? Or should the
country re¬ that we enter the first peacebe
considerably
less
thanr this tain a national
wage policy, and a I
year with $300 billions of li¬
year.
%%■;
national price policy as well, for
j
risen ! son,
the index of the cost of
in¬
achieve a
and price level of about 50
60% above prewar.
There are
Higher
that
on
spent
rents,
The larger the
national output
produced, the
the general
wage
1.
of
its
conserve
favor
national
Although the
not
has
Likewise, the increase would be rewards for strikes (or
following the Holcl- threats of strikes) by giving fav¬
tbe-Line Order of
April, 1943, was ored treatment to groups which
slightly more than during the are
tough enough to insist upon
quarter preceding it.
Regardless it.
Regardless of what the na¬
Ill
have payrolls increased?
Increases in wage rates have had
than in 1943.
in the quarter
.
Why
or
plies from the
in¬
these
policy.
temporary rise in the
crease
living rises by
5%, the "inflationary gap"
will be roughly $8 billion greater
4%
ity are willing to withhold
ously enough, the most important
development of all, the - Little
Steel
if the cost of
even
the
been
presupposes
been
terest of the country to
Evidently,,
dollar-size
product, it must
be equal to the paid-out na¬
tional income. Every dollar's
worth of goods or services
\
would
the
the national
unsuccessful will
or
creases.
the
of
im¬
fluences affected
wages before the
country had
low-paying faster than
For
a
ward
July, 1943, or
figure is cor7 of
rected for shifts from
industries
portant
into
move
The next
strong hostility of the public to¬
increase, of 32.3%.
This is far less than the increase
of * 52.1%
which
seems
to
be
indicated by the
crease
to
paying jobs.
on
whatever
three reasons for this:
rate
at
which
straight-time
hourly
earnings (corrected for shifts from
low-wage tohigh-wage industries)
ployment ,set-up?
business conditions.
For the first several years after
the war, at least, conditions are
likely to be favorable to wage in¬
or
gradually been de¬
The decline in the
over
upon
increase in payrolls is
that three of the principal causes
^r.c'® ^
100%" in
of
■
■■
during the unbal¬
budget period. What
happens to that excess liquid¬
ity in a post-war Full Em¬
.
successful
are
accu¬
liquid
anced
increases will be numer¬
insistent.
Whether they
and
ous
power
savings
Demands
war?
for the recent rise in payrolls are
$7.2 billion of the increase in pay- Working
n<?, longer *n
Little further increase
is explained by the longer creasing.
is expected to be made in the hours
working weeks and $2, billion by
of work, and the large movement
penalty overtime.
from the low-paying plants and
This analysis shows that only a
industries to high-paying plants
small part of the problem of in¬
and industries is about over.
If
flation can be met by wage
policy. the war
against Germany contin¬
It does not. follow,
however, that ues
throughout most of next year,
wage policy has been' of negligible
the supply of consumer goods will
importance.
Had the price
of be smaller
than this year.
But
labor risen
75 or
years, as it did in the First World
but
purchasing
mulated in the form of
happen to the price
of labor after the
rise
for
reason
level
depend
rolls would increase between 1943
and
rolls
price control has been
reasonably
in
the
double the prewar level.
^
portant
(Continued from page 2000)
a
'high-paying to
for wage
were
suggested,
18, 1943
a
ent
separate
as
than one-fifth, or about
$11 billion, is attributable to the
years, less
low-paying to high-paying plants
than
more
Time workers should be giv¬
en
rise in the price of labor. The big¬
gest source of i nerease has been
During the same period payments
to nonagricultural property own¬
ers (dividends, interest payments,
and
living
.
groups to obtain wage adjustments
when their straight-time
hourly
rolls has been the movement from
have
of
should be continued beyond
May,
:
'
d : .:V
y
2. The linkage with the cost of
3.
approximately $60
billion in payrolls in the last four
doubled.
rolls
between
cost
.
.
American
the first time in
For
the
large shift from
low-paying, jobs.
living should be with the'straight- If payrolls reach $105 billion in
time hourly
earnings rather;than 1944, they may be expected to
rate in every plant in the United
rates.
To a considerable extent
States been frozen in 1939, pay¬
drop in two years to $83 billion.
this is already the practice.
rolls still would have doubled. Of
This is about 17%. below the pres¬
far less effect
Science, at the Hotel AsNew York, follows in full;
connection
and
;
1942.
(Continued from first page)
Political
The
wages
Thursday, November
war
will
be
wage
is
pol¬
scrapped
after peace returns, it is
only
question
country
tional
of
again
wage
time
before
establishes
a
the
na¬
policy to control the
operation of collective bargaining.
Volume
Number 4230
158
THE COMMERCIAL & FINANCIAL
road
rate
first
came
structure.
When
CHRONICLE
trucks
did
2003
not
happen.
For
the
12
ending Sept. 1941 the net
railroad operating income of Class
no
bank
I
much
you
that
iness
Railrbad Credit
the
on
floor" of
the
Los
dollar
Angeles Stock Exchange, and in
introducing the speaker, McCJarty
Harbison, President of the .Ex¬
of
change, referred
dends
the
field
son
as
"one of
outstanding speakers in his
today." The talk, Mr. Harbi¬
indicated, was "sponsored by
the
Ms
to tem
Bancamerica
Company ■' and
firm, Harbison & Greg¬
own
*
Except for the 'concluding
portion quoted above, the speech
ory,
of Mr.
ered
by the public and by the
fiduciaries as speculative securi¬
is
true there
was
an
ex¬
ception for a.few month's in 1936
1937
and
but, generally 'speaking,
the last thirteen*years, rail¬
over
railroad
busi¬
dollar
for
interest, divi¬
surplus.
The automo¬
industry saved 9 cents.
cheaper labor and all of the traf¬
The
fic
were interested in saving
nickel possible they could
on freight
As a result, the trucks
while
they
were
unregulated,
motion picture industry slaved 9.6
cents. The oil industry in which
you
are
interested
so
the
list
in
conjunction
chemicals.
here
out
with
'
roads
be
cracked the rate structure of the
the
rails
the
in
reason
cline
forgotten .infant in
in
railroad
That
corporate field?
credit.
Why should
they be speculative and not be on
credit
a
industry.
but
basis
like
The
are
ness
many
the
primarily financial. It is true,
of course,
years
erucks,
lines
and
12
months
business?
I
uo.
this
use
because
12
lion
and
billion;
improve¬
ments would affect
clusions because of tbe
of
be¬
wnr or
that
it
was
not; in
competition did
the
in 1941
There
the
listen to
is thatiymiare-in-
me
in
corporate^ -securities,
utilities, industrials orj^ils, JJEyou
interested
are
in'"'keeping1''ypyr
funds in cash, in v{/pvernmeMsMr
municipals, I see nothing in my
.speech that will Interest you^but,
if you are a corporafe-I|Westdr '.or
a
dealer or a salesman, selling
corporate securities, I
think it
should i nterest you;
'.'
y
;
(;
Why do we consider railroad
securities. - speculative?
A
great
many factors add up to give the
public that psychology. The past
record of the industry, the bank¬
ruptcies, the fear, of bankruptcies,
the
truck
competition have all
contributed to that point of view.
.Despite all of this that you hear,
the past record of rails has been
record
a
business
talk
America
of
is
concerned.
dollars, because of
in
the rate
structure,
changed only about $100,-
How did
they do it? In 1928 the
railroads employed 1,660,000 men
and women.
For the 12 months
am
talking about in 1941
employed 1,140,000 people.
structure, caused prim¬
the unregulated trucks,
did
railroads
the
but took in
same
busi¬
billion dollars
a
The railroads
ness
•
in
my r
busi¬
same
520,000 less employ¬
people said at that
Some
ees.
point, "How about the
the figures
on
1 will
that.
riod in
1941
which is
a
give
you
The compensation in 1928
$2,826,000,000.
was
a
billion
it
that
For
was
pe¬
$2,331,000,000
decrease of about half
dollars.
So
here
is
an
industry
that
we
always hear
being old-fashioned, run
by a bunch of old-fogies and so
forth, yet, in a ten year period,
about
they
as
were
able
to
the
do
same
for
the years
going
the net rail¬
not
happened
to r railroad
management
over
the net
opinion ^ was
forced to absorb the
was
decrease in
that period, and
primarily caused by the
unregu-
la ted trucks which .broke
the.rail- have been out of business but that
gross,
the rails would
.1928 and 194.1.
to
roads
•
•, L
factors
sure
there
American
will
ihe
of
:
■
,
had
aboiit '6%
So
and
you
to
hear
later.
If
about them in the forum
Those
we
are
efficiency factors.
look at the railroads from
that standpoint it is not
that
when
the
war
surprising
effort
work which
were
they
able to
are
do it.
I
doing, they
think they
have been the greatest single fac¬
tor in our war effort. They have
accomplished,
their
effort
with
such efficiency as was required of
them; as a matter of fact, we
found this out about the railroads
spend a
doing it.
Their maintenance figures were
down. Most people compare main¬
—that
tenance in the
more
of
amount
business
and
half billion less dollars in
'20s with the
'30s.
It should not be done for this
rea¬
We have about 235,000 miles
of roadbed in this country. Over
son.
that
roadbed
there
are
about
You do not
see
the den¬
sity out here in the West like
do in the East.
days will
all
as
of
you
The Pennsylvania
carry as many
your
tons
transcontinental
put together. The branch lines
longer required
no
to
are
be 'main-
tained in anything like the shape
the
volume
that
gross
192.9.
They
were called upon to
500,000 less freight cars,
with 25,000 less locomotives and
do it with
with
14,000 less passenger cars
they were able to do it and
do it well.
we
We may complain now
travel by train but don't
forget that we caused that condi¬
tion by abandoning -railroads as
a
mode of traveling before the
.
war.
The War Production
probably
for
good
of the
prohibited the production of
...
(Continued on page 2004)
Share
national inis
business
far .-as
Par Value $100 per
con-
cerned, railroads go: upr and down
with-the Ustftrti States. Likewise,
so'does SteeL, Motors and so forth.
As
business,
a
have been
the
foundations
Price
line with the foun¬
in
dations
of
SEC
$101
per
Share
the reports they issue on
this
That,
Sometimes, is hard to prove but
one
good thing we get from the
are
country.
plus accrued dividends from
November 1, 1943
certain listed corporations. I stud¬
ied
those
reports for the years
to find.out if there
Copies of the Offering Prospectus may be obtained from only such of ihfr
1939
1935
to
was
something
railroads
as
a
wrong
with
the
v,undersigned Xis
business, forgetting
■
may
legally offer these securities in compliance.
with the securities laws
.
of the other aspects, and you
some
; .i» s
of the respective States,
find
figures something like this,
taking the year 1937. That was
the best year we had in the pe¬
J l
riod 1930 to 1939.
In that year
that
the
saved
out of each dollar
railroads
18
cents
took
for
in
:
\
» I». ?.
M
Kidder, Peabody & Co.
'
they
interest
on
Lehman Brothers
The First Boston
their
bonds, dividends and sur¬
plus. That is 18 cents out of each
dollar.
Compare that with other
industries. This approximate fig¬
ure is true in 1935, 1936, 1933 and
1939.
listed
There
is
no
securities
other group of
with
the
excep¬
tion of the chemical industry that
saved
as
much money out of each
The First Cleveland Corporation
Noveprber i6>
nyij
Board,
reasons,
4%% Cumulative Preferred Stock
j.
revenues
are
called upon last year to take 40%
business than they did in
only and is under uo circumstances to be construed as an offering-of
'these securities for sale; or. as an offer to buy, or as a solicitation of an offer to buy, any of
i-V-"stick securities. The offering is made only by the Prospectus.
* «
they
capable of handling is unlimited,
absolutely unlimited. They were
The General Tire & Rubber Company
r
de¬
manded that the railroads do the
65,000 Shares
■i
no
many
mechanized
tools, too,-now. There is the cen¬
tral traffic control, the "Sperry"
car and so
forth, which I will be
glad to tell you about if you want
NWmuz
almost consistently
railroads
come.
..
railroads
find that
was
The rail¬
none.
for the last 20 years, year by year,
and look at the gross income of
the
true
have
TMs:mm<$iicwcti
F* X
are
too, but I am not
repeat them.
I tested
hitch and there is
some
1928
decline in their credit.
a
in other years,
when
year
was
Those figures I just give you for
business.
the
Railroad
answer.
able to make up
unregulated rates which
the
caused
and
-V
is
as
maintenance.
on
the
was
management
386,000 miles of rails but 10% of
that mileage carries 50% of the
■•.■%
money
and, that
compensa¬
tion?"
result it
a
Then, too, all the mechanization
which appears on the railroads
helps to bring the expenses down
had
man¬
The financial decline in railroad
securities
did the
and used
As
longer necessary to spend
them to make,
000,000.
that I
trucks.
no
as
Look at the national income
later.
so
maintained when there
were
will
We
financial
the
about
far
so
billion
a
the net
-
-
,
$990,000,000,
they
were
operating income, that is,
what you have left, was $1,100,000,000 so, obviously, if something
•
io
by
road
war
..ierested
rate
In
other words,
in and re¬
come
duced the rates but "railroad
gross was 5
the same busi¬
was
but because of the decline in
arily
earhmgsT-The :VOnly agement through efficiency made
assumption I "make- ite" asking1 fou up for the most of that in net.
cause
in 1941
plus passenger miles, was
about the same, 528 billion traffic
units. "In 1928 the gross was 6 bil¬
less gross.
con¬
months
the number of units, ton
operating
emphasize^ 'at' the
the
miles
ness
trying to draA
It is
add the two up you get the
business the railroads
you
the
not
What is
amount of
made the securities unpopular? It
fraid Tlfe might be from a superficial exam¬
ftedneiaf- stand¬ ination but I will try to .show you
will
busi¬
of
fast thirteen years both
1
ending
same
they did in 1923.
railroads'
In
moving freight and
passengers. * The term we use on
freight is how many ton miles do
they carry and how many pas¬
senger miles do they carry. When
a
pipe
as
business
that the railroads have
from
the
for
have occurred in railroads i'lvtlie
am
lost
the decline
they
.
reason.
Sept. 30, they did the
chemical
the
reasons
1941;
this
for
was
transportation
road securities is^dn'fdst filed ""be¬ in the Mississippi and Ohio water¬
cause of the
many chartges that ways but what is the thing that
start 1
primary
opinion for the de¬
my
ness
point.
was
management, through its ef¬
ficiency, made this possible.
>
the
<
and
the
was
.
monopoly in trans¬
portation which, they had in the
nized
as
speculative4 "'securities. '20s to a part in the transportation
Despite the many changes' :'that industry/by far the larger part in
have occurred, railroad securities normal times*
still doing about
are selling
in the corporate field 65% of all of the transportation
at the lowest prices ab"d the high¬ business in the
country.
It is not
est yield. There are more' sellers hard
to visualize that over the
than buyers in raiteoacl securities. last 25 years the introduction of
My effort this afternoon will be 30,000,000 automobiles, 5,000,000
to try to convince "you -that' this
pessimistic | attitude"' toward'- rail¬
that
and
•
changed in a great many ways.
road securities, bonds' and'stocks, They have changed in the last few
almost regard less of the name of
the company, have beqh 'recog¬
men
every
The railroads head
saved 12 cents.
McGinnis, follows in full.
.
It
the
Now I say, why should the rail¬
Railroad securities" have been
for the last thirteen years consid¬
ties.
bile
railroads
or four trucks, you had
tariffs, and just go up to
The efficiency is there because
and say, "Here, I will
they did the same business and
carry that for you cheaper than
they are in much better shape fi¬
the railroads
will charge you."
nancially. They produced $990,Naturally, being in a depression, 000,000 with a billion dollars less
they
started
out
by
having gross. Despite the fact that
they
example,' the steel in¬
and
that would be glad to loan
the rest, go out and buy your¬
fellow
a
dustry in 1937 saved 8.1 cents out
each
with
months
to file no
did
as
For
ness.
could go in bus¬
small capital
and a
self three
(Continued from page 1990)
speech
in you
Corporation
has
any
>
O
<
W
H
m
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H
2
>
a
w
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<s
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§
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c
to
h3
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03
to
Z
>
03
03
i—i
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to
<3
•-3
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h
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03
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03
03
co
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*
.
28 1 28 14 28 16 28 17 28 19 28 20 28 2 28 23 28 25 28 28 28 29 28830 28 32 28 43 28 50 28 52 28 68 28 70 28 72 28 75 28 79 28 81 28 84 28 85 28887 28 90 28905 28907 28909 28927 28929 28938 28939 28940 28941 28942 28950 28951 28952 28954 28956 28964 2896 28970 28980 28981 2898 28989 289 1 289 3 290 0 290 4 290 6- 290 7 290 8 29015 29020 29025 29027 29q30 29032 29034
28125 28129 2813 28137 28140 28143 28150 28159 28160 28162 28164 28182 28183 28195 28196 28218 282 0 28238 28248 28250 28251 2825 28257 28259 28261 28270 28274 28276 28279 28287 28296 28297 28298 28301 2831 28314 28324 28325 28340 28342 28345 28368 28372 28373 28374 28378 28382 28386 28394 28395 28408 28410 28413 28421 28428 28429 28437 284 5 284 8
29037 29039 29042 29045 29048 29052 29053 20o5 29060 29061 29065 29073 29075 29078 29080 29082 29083 29084 29089 29090 29094 29098 29104 29110 29111 29113 291 6 29120 29121 29124 29127 29129 29131 29132 29139 29141 29144 29146 29147 2915 29166 29169 29170 29174 2917629178 29184 29189 2919129195 29196 2919729206 29210 29212 29221 292 2 292 5 29229 29230 2923 29238 29252 29266292762927 29284 29285
28449 28452 28453 28454 2845 28457 28461 28463 2846 28470 2847 28480 28482 2848 28494 28503 28504 28506 28507 28510 28515 28516 28519 28525 28543 28544 28548 285 1 285 2 285 3 28558 285-59 28574 28576 28579 28580 28585 28586 28589 28590 28592 28594 28595 28596 28601 28606 28607 28613 28615 28618 28620 2862 28624 28627 28628 28637 28638 28642 28645 28646 28647 28656 286 0 286 1 286 2 28663 2866428665 28668 286 9 28674
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27103 27112 27116 27117 27120 27121 27123 27124 27125 27127 27130 27132 27134 27136 2714 27145 27153 27154 27158 27163 27164 27165 27166 27169 27176 27179 27183 2718427185 27190 27191 2719327195 27201 27202 27208 27213 27215 272 2 27223 27233 27237 27240 27241 2724327245 27246 27247 27248 27249 27256 27261 27267 27268 27269 27274 27275 2727 27280 27282 27284 27289 27290 2730627308 2730927310 27318
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.
27326 27327 2733027331
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'26498 26515 26517 26518 26520 26530 26531 26534 26535 26536 26538 26540 265432654 265 1 2655326555 26558 26559 26560 26562 26564 26572 26576 26577 2657826580 26582 26587 26592 26596 2659 26600 26602 26603 26 04 26 16 26 20 26 21 2662226 24 26 36 26637 26650 26 53 26 60 2666326664 26 67 26 69 26672 26678 26 89 26 91 26695 26698 26702 26710 26715 26719 26721 26724 26728 26735 26736 26738267402675326762 26764 2676 267 0 267 2 267732678326786 26789 26790 26797
25543 25 46 25 47 25 57 25563 25 72 25577 25594 25 97 25602 25609 25610 25614 25621 25641 25651 25653 25654 25656 2565725659 25.6 0 236 3 2506 25674 25675 25676 25696 25697 25700 25701 25713 2571425722 25725 257262573025737 25739 25762 25763 25773 25774 257 6 25778 25779 25786 25787. 25788 25790 25791 25793 25794 257952579925814 25821 25826 25829 25830 25831
25827
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NO-TICE
REDMPTION
$16,09ptr4aihonmcbue.flvthameoupndrfisn¬TsbdBTCTarakty",•. A:
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redmption described be n naumbserd $1,0 .
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25159 25172 251742517 25178 25181 25186 25188 25206 25207 25208 25209 25210 25217 252 6 25235 25238 25242 25245 25248 25256 25257 2526 25267 25268 25271 25272 25273 25283 2528725298 25301 25303 25304 25307 25308 2531 25316 2531725319 25323 25329 25330 25337 253 8 25346 25347 25351 25353 25358 25365 25369 25372 25374 2537 25378 25379 25383 25385 25386 25387 2538 25390 25398 25399
cipal have
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•15287
6
DENOMIAT 11340660146 1134066781477021134072147741134078614798311475981341839110489651311494135163715011358815162110356827111056139713526190157071110352732715736111052841510351844270111052956110352914851110522918103920469111092205740113094205911109203090113094214511092472111309422463110922414711309423459111092352405110393445011943241100346651110393447727110397635911946711039368811109367952110393793611109379-56811039468140211109485623198-6113968711094258110942-12f36t791104920885211320651102403586111023403571102406359611102340368.71112040636994112030476031110240771123073212077146110236o5828001127851102630781s5110260778249.311026079411012630879811026089255011102360789441102680760111023679541102695531110236795451110275573611023755791101276758195102376639111027766972110237693961128700110273971127032111023798764127054110123799736611027970498111023799853110279918211023799085111028053129026011230110289234411102825891235501129871102383350911237110238943346112388011023895319510128547871102389651110287195231123571102897630511240671265811240778211028983311240876812899101194220893110292945111029420958621101293206512450081101295319030192435025110129530412452101259112452331253141102954231981124546212830
THE 9 5 19044154 10 59 10 60 10 61 0 72 91405 -8 10 85 10 86 10 89 9463 10 97 10 9 10 10 3 10 4
9446 9449 9450 9454
9433
IN
9456 9459 9462
10 23 1029 10 39
10359 10382
1041 10423 10429
104 ft -1065 106 3
9465 9467 9469 9473 9475 9477 9478 9480 9481 9483 9490 9491 9495 9496 9500 9503 9505 9507 9508 9510 9514 9518 9519 9525 9530 9532 9533 9534 9545 9546 9560 9567 9568 9569 9570 9571 9574 9585 9598 9599 9607 9608 9610 9611
107 4 10780 10790
10810 10812 10827 10829 10834 10850 10872 10875 108 5 10890 10894 10913 10928 10935 10936 10937 10940 10946 10950
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9001
9011 9014 9021 903o 9033 9034 9039 9040 9042 9044 9050 9052 9055 9057 9065 9073 9074 9076 9082 9083 9084 9087 9090 9091 9096 9100 9103 9105 9110
9113 9115 9117 9118 9121 9130 9131 9138 9140 9141 9142 9147 9149 9150 9160 9164 9172 6173 9188 9389 9203 9204 9205 9207 9219 9326 9227 9233 9235 9236 9241 9242 9247 9253 6260 9261 9283 9284 9291
COFUOPRNM758821247589201775962078077680253176288763214076832247642507862485764967862554778625578625597680617626247862637786251767276827786237682507688576289178687786299276893034768395769097830197812507831266782316732873246783347355378357336847834687573078357178633- -78567397788955738978490317.8496788401750231-7884040 31.7805 06-84327215-.86788413478842378845127844657^84496788455197884564788456778845627884573785947886755788467 788467ft788469078801784893 48.782 498197894178849952784996378499 788590 79065789007895112789521037925789224789522878952367895377934407895351'7934878954407894367895415.795427895537956678956740789567178956782795674789507982679595178959379864789589 78960 886004880615480758806238806138062411880624498025628806348063548806356886037880645188065519860572080654188057388065f9t80538806599806178806044
BIONDN S 7031 7032 703 704 7051 7058 7067 070 70 1 70 3 70 5 707 7080 7085 709 7097 710 7101 7103 7104 7105 7106 71 0 71 7x12 71 3 71 9 7128 713 7137 139 7143 7145 67544.741 7149 715 716 71 0 71 7
7167 7171 71 8 7179 7181 7184 7187 .7192 7195 720 720 7207 7208 760'210 7213 72.17 72-19 "7?2 7241.724 7243 7245 7254726ft 672626-1 726 7269 7270 7271 72 3 72 7 280 7281 728 7285 729 7293 7298 729 730 7302 7303 7305 7307 31 7312 7313 7314 7315 7321 732 7325 7329 73 0 73 7342 7346 7347 7348 7351 7357 359 7360 7362 7365 736 7368 73 2 7375 73 7 379 7383 7387 38 7391 7392 7397 7398 7408 741 741 7416 742 7429 7430 74 7 7450 745 7458 7463
6371 6431 6432 6437 6438 6455 6457 6459 6462 6467 6472 6473 6478 6481 6484 6488 6491 6494 6502 6504 6508 6509 6510 6511 6513 6516 6518 6523 6523 6524 6534 6539 6543
6547 6550 6551 6563 6564 6566 6569 6572 6573 6582 6589 6591 6596 6598 6599 6600 6603 6604
5568 5570 5575 5577 5579 5583 5584 5585 5586 5590 5591 5592 5594 5600 5604 5605 5606 5621 5635 5642 5643 5645 5656 5663 5666 5669 5671 5672 5679 5686 5689 5691 5692 5694 5696 5700 5701 5710 5714 5715 5716 5717 5720 5725 5727 5728 5731 5733
Unifed
NOTICE
16017 16028 16029 16033 16037 16043 16046 16047 16051 16052 16053 16056 16064 16065 1606 16057 16071 16073 16075 16076 16078 16084 16087 16094 161 7 16125 16126 16130 16134 16135 16136 16138 16140 16141 16145 16146 16148 16301 16303 16306 16309 1631 16312 16316 16327 16328 16330 16331 16333 163 5 16336 163 8 16344 16348 16411 16415 1642 18428 16429 16430 16432 16438 164 7. 18450 16301 16504 16512 16517 16518 16527 16538. 16539 16543 165 1 165 6 16563
6611 6614 6615 6621 6625 6626 6633 6651 6652 6657 6658
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4928 4931 4939 4940 4942 4943 4944 4945 4952 4953 4956 4958 4962 4967. 4970 4971 4976 4981 4984 4997 4998 5000 5005 5010 5014 5015 5021 5022 5032 5035 5040 5045 5045 5047 5059 50g3 5067 5069 5072 5075 5079 5080 5082 5084 5087 5090 5091 §092 5093 5094 5095
.
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3205 3207
3208
1957 1962 1972 1973 1986 1989 1995 200-2 2004 2006 2009 2010 2011 2012 2013 2015 2020 2032 2034 2036 2042 2043 2050 2055 2061 2062 2071 2076 2079 2083 2088 2090 2091 2093 2095 2103 2107 2108 2110 2111 2112 2115 2116 2117 2123 2-124 2126
.197
2802 2804 2810 2812
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—
THE COMMERCIAL & FINANCIAL
ri006
A
] the
Reappraisal Of Railroad Credit
'few buyers for
and
out
•
came
the
the
income
new
today
I
sell
to
you;
are
in
5%
a
market. I
money
know where it is going to sell. It
is
going to sell at 65.
That
tried to point out to you
of the railroads'
have
but
utility bond call¬
107V2, selling at 110, yield
2.75—that is good. Does anyone
tell you where that bond is going
prices. Gradually
they became seasoned and entered
their place in the capital struc¬
ture of the American corporations.
the
rails
314%
a
able at
bonds
low
at
offered
not
and the preferreds and
they used to kick
out,
as
offered
commons,
around
I tried to
3%s at above par. They
are
now
stylish. What tires me
with investing" is that if you go in
for corporate bonds today, you are
recognized as such over the
next ,three, four or five years, per¬
haps, sooner, but it will be defin¬
itely restored. When the Atchison
was reorganized
in 1895 and the
new
first mortgage-bonds came
have
restoration
is
what
have—you
you
fashion in investing and if
a
you
follow the
credits, calling upon everyone to
reappraise
the
railroad
credits
lose
every
whether you are an
bonds. If you will go back in his¬
bank
to
or
a
company,
characteristics for
State
cor¬
porate securities, whether it is in
industrials
utilities or in
rails,
security you
are
forecasting. When you take
off the high-sounding descriptions,
investing is nothing but intelligent
crystal-gazing. Your broker, "when
you buy something from him, is
just trying to forecast somethingor
the minute you buy a
bonds
Banks
than
doing it that way.
made
efforts
some
real
for
method
I have
devi se
to
efforts because I cannot
the
utility bond or it
yield of 8^2% on the
some
new
Wabash
a
incomes,
forecasting.
prices
What
it
but
controls
banks
should
not
why
see
be
guided
by factors establishing the credit.
Why can't some system be devised
where you can add up the credit
factors, either taking a good rail¬
is
the
in
buying. and selling?
happened in rails? Up to
What
a
railroad
rating
bonds and I intend to continue my
2.56
be
cannot
buy them. That is the system?
I
think it is the system because no
one has thought up a better reason
income, it may. be ap¬
preciation, it may be a yield of
may
the
were
on
not be bank rated.
it may be
on
may
the dollar, 110
one told you to buy them. I say
our system of rating securities in
rails is wrong because if a railroad
bond sells at par it has to be bank
rated. If it is selling at 70 it can¬
to the indi¬
now
Arkansas
selling 35 cents
which 18 of them always had:
Getting down
of
for
are
not
change, the
organized
break
defaulted
-
railroad
down
securities
There
of
is
profit
securities
than
have
sellers
longer
for
more
this
.
new
buyers
reason.
It
is
this
for
business
all my life and I
thought of calling into
ask
them to ' buy
railroad bonds up to 1932, because
it was too much work. All
you bad
fiome
As*
and
to call up
sell them".
were
the market
institution
result
a
they
was
for railroad securities. I
ing
1931
the
70%
am
speak
of railroad bonds.
now
After
buyers who held about
of
all
these
*
bonds
became
-thej sellers. They sold them
con¬
sistently and they are still"sell¬
ing them on balance. This year
-they have sold about 180 million
par
value
the
on
balance. That is from
big life insurance companies
don't let that fool you. I
but
bought
-at 35
lot of Erie bonds in 1940
a
and 40
cents
the dollar.
on
I
bought these from institutions.
I
sold
them
back
to
institutions
this year at par. Those
prior
lien
4s.
were
Erie
In
January 1938
they were rated AA. They went
in bankruptcy 011
January 18,1938.
January 19th they were rated C.
You
can
see"
that
or
a
and
then
if
bond
a
is
sell¬
and
half.
a
going to get a $1,000 bond
just what you got. They
and that is
are
now
back at par and
you can
usually sell them to most institu¬
tions.
situation. You had to go out and
try to educate the country to buy
railroad bonds. I have to come out
art'd 'tell
when "you
to
you
know
buy them
insurance
panies and banks
com¬
selling them.
They are selling them on balance
and they have been doing so for
are
'
value.
Buyers
sellers create markets.
fas become
and
Our buyer
seller and, as a re¬
a
mit,, we have had these bonds at
prices which the institutions
jannot buy. The institutions can¬
not buy a single bond I can rec¬
sow.
this
ommend
afternoon.
It
is
profit for the
reason
I will
illus¬
you all realize when I
speak of 20 that is 20%' of 1,000
so they were
selling at $200 for
'i
$ 1,000 par value bond. ":f A ?
Where are they going to; im the
reorganization? By looking in the
ports
fashion
over
the
last
ten
years
following the ICC
or
knew
you
from
a
mortgage bond,
$500 income bond and 3 Vz shares
$100 preferred. You knew that.
What
the
was
risk.
and
the
could
could
insurance
not
and
in
there
this
buy them
individual.
so
reorganizations
the dollar.
50
what happened.
The West Texas
Utilities 5s of '57. You could buy
worth
Here is just one illus¬
tration but it is only symbolic of
them
in
dollar.
1934
It
was
at
50
not
cents
on
the
stylish to buy
utility bonds because of the T.V.A.
You
are
offered these
same
bonds
il¬
consummated
by* the'" Erie
Of
the
*:
and
railroads
the
the
think
Western
as
and if" is¬
that
I
Pacific
do
not
securi¬
ICC.
The
road
went
into,
!
bankruptcy
that
have
it
in
suffered
been
June
1933
and
from
,
iyithout exceptiori -cumulative
fo 1312%.
If
the interest
ruptcy" because we are in a 3%
corporate market.'-You have seen
your
last
tion.
You
up
sometime
is
any more
77
not
are
13 income bonds you can buy of
these railroad companies that have
been reorganized by having their
in
March or April of
At that • time you 'will
next year;
reorganiza¬ Earned it must be paid to the
going to have dearest quarter of one percent: "'
bankruptcies. There are) I?Another
thingJrto Tdmember:
Section
fixed
have
-when,'
and
as
if"
issued
[trading in hew.Rock
Island se/*"• •
' A >;• A/'A';
You buy a Wabash income bond at •r Now I'will
put down on the
50 for $500 and yoti will
get that r board what you: arc going to get
curitiesA
.
J
charges cut 75%
babies?
exception.
'
;v; Av
was
not
it
was
a
who
to
up
were
not
! You might get twd per cent. Don't
: •; ;■
One of the bonds I
am
going to
recommend
today is Rock Island.
they too high? Rock Island
the
and
$175,
selling at 60
or
preferred
is selling at
V'z shares are worth
the old bond today is
the
so
$725. That is what I call
a
331
down
bonds,
the amount of income
is
a
railroad
million. What is
6%?
Six
they
selling at 90
decent yield—
a
like
that?
.bond,
that
-sure, it is
is not the
earned
at$.1,000 bond but
principal you are
'
ion,
last time I
come and they afe selling still'at
,50, I will not have any apologies
|o make because' you have less
Hsk in my opinion than you can
get in corporation bonds selling" at
first
twice that price, v-:
ly
they had
71
over
which
of
Every
million in cash
are
you
time
get good news
from Europe, they sell off the de¬
faulted rails. Speaking of the war,
we
we
all have uncertainties both
individuals
as
around
and
my-opinion
good
$220.00 and your- poten¬
value, using the above prices
.
cash account
as
we
railroad
as
corporations.
are
going to
business
for
long a period as the war has
Yes. When we get down to the i
lasted, I mean the "European-war,
old defaulted bonds, we find there which
may be four or five years,
;
It
I pick out Wabash
was
last
of
reorganized
year
the
duced
Number .1.
the first of
as
and since then, on top
which re¬
reorganization
fixed
the
charges; drastic¬
ally, the company has bought in
25% of its
is
new
continuing
meantime
road
income bonds/and
to
do
so.
In
the
by.. 60-
bonds, and
40, and the com¬
by 20, the whole thing adds
up to $420.00 as against a cost of
$220.00, so your possible apprecia^
tion from your cost is about
91%,In other words, your net: cost - is
times
the
multiply
you
mons
tial
a
saw
and
the preferred by
nine is 54, so if protecting.
You hare protecting
$5,400,000 it would $500.
-v.'
A''-;-, v V'
good yield against market' |; If I come out here two or three
value. What is "war baby"'about years from now and you are re¬
them?
In addition to that, the, ceiving 8%% 011 a Wabash in¬
be
have
left
$1,000 bond) You also get $91.94
in'- first
mortgage "bonds
and
$232.72 in income AMs; $209.62 in
gef 2%%'you still
you
shows
There
In
any
you
be
to 31 million.: money,
the protection of your
how drastic the principal should cofne first. What
Rock
Island
reorganization
is.; principal? Your principal is the
Are they too high?
Last year the hmount of cash yohdtivest; If you
road
earned
35 million dollars. Lwant to describe
000 Wabash
mechanical profit from default to
there
would
are
million
That
solvency.
Are
forget, if
making inore than you
can now get in most
corporation preferred and $524.85 in common.
selling for 90 mil-; securities because 5% of $500 is If the plan is approved as I feej
Hon dollars in the. open market. only
$25, so if they paid only it will, be, you will immediately
There used to be 3$1 jniljion bonds 2V2 % ■ you
would{Still be getting get the cash so it will reduce your
and that is going., to be reduced 5% on your mohey.v Then, too, cost down by $100.00, so your cost
to 31,000,000 fixed .' interest bear- don't
forget another * thing 'about will be $220.00. Now if you multi¬
ittg bonds on the Rock Island— income bonds. When you invest ply by. 100 the First Mortgage
Are
securities
going to get
many individuals interested when about half. What have
they dis¬
they were selling at that. Today counted?
Certainly not war earn¬
that $250 bond is selling for
$250, ings.
$300,
on
the
companies
country
There
utility bonds for 30
40 cents
Would
plan go through? Yes!' Who could
buy these? The banks could not
that $500 bond is
or
bond
of
have made money. A
few years ago you could buy good
you would
that
re¬
in reorganization you were
going
to get a $250 first
the
the
Don't
the
like
.
You know, if you had been abso¬
with
sued.
war
interest of $42.50 *a'year which is
; I
recommend all the mortgage
selling at pl'2% 011 your investment unless bonds of the Rock Island at this
rated.
In the reorganization of
the average price of 50 to yield 1
he W abash does '60 % less busi - time but I am not going to illus-'
railroads you reach a point where
9%. What in the name of goodness
fiess than they ape ,now; doing. If trate them all. Here are the 4s.
bonds are selling around 25 or 30
are they discounting? They have
of 1934 which sold today around
Ive should hit
as; poor a year as
cents on the dollar and in the re¬
just been reorganized-—yet they 1938 but not udder
That means1 a'$1,000
bond
1938, they 32,
organization the bond is worth are
selling to yield 9%. That is an; might not earn
the; income inter¬ selling; for around $320. If the
65, 70, 75, 80, 85 or 90. From the indication of the public's psychol¬
est.
Everyone el.se%redueed their plan goes through as I think "it
defaulted bond to the solvent obli¬
ogy and .those interested in rail¬
payments in lOOk'so 'xvhy should will, you will get $102.22'in cash;
gations there
is
a
mechanical road
securities.
Are
they
war' the railroads be".' an
Your reduced cost is
$220 for a
against the system. They are not
fiduciary
inconsistent
trading "when,
now
"
potential
ten years. That is the system. That
is the stylish system of
investing.
lutely
shortly there are five;
Western
Pacific,
the
Chicago
North Western, the Soo, the St.
Paul,
the
Akron,
Canton
and
Youngstown.
These
bonds
are
'
papers
There you nad a technical situ¬
ation
added to a psychological
here
Pacific is selling .qner times.-earn¬
a
Everybody knew they
re¬
organized
-
uating predic¬ trate. In 1939, after the bank¬
tion
is
nothing, ratings follow ruptcy, and while they were fig¬
prices. They do not predict any¬
uring out a plan of reorganiza¬
thing. The bonds sold down to 32. tion, Erie General 4's sold at 20.
They stayed there for about a year I think
were
more
'
never
divi duals
to do to sell, them
lot
which should be
grasshoppers,
reorganized, • in my
j drought, etc. The management
ing at 70 and is good, you have.
the cheapest
security
ings. It is earningtaxes, opinion,
some
reward for your research.1
j was changed in 1936 and the road
I
am. talking
now
paying only $2.09.ianfFi'SeHipg af: relatively,
What judgment is required, to buy
about income bonds, are the. so- j iiow has what I consider one of
20.
A;
Xtieiy-:'
j the best managements in the Mid¬
called Wabash Income "B"
utility bonds two points above
Take your
414s. dle West.
.seeppd
bonds.
Its reorganization was
the call price. .Where you need
selling around 50,: What is an in-,
Southern Pacific jDebm®
j most severe, the most severe of
judgment in- investing is when., New York Cehlral^tefuncL^' Are come bond? Income bonds are
any.
They cut (their debt 83%!
second
you buy at discount. That is where these too
mortgage,; bonds • on the The
high?-"They99
plan was finally approved by
judgment, is involved. Jf you buy or -98 in 1937:
property. The income usually is
atuV4oHu}>3lJh<e>t 'are
the ICC in June, 1940, The courts
-ome bonds I am going to recom¬
selling at 60. The Dow-Jones 41y% a year. The definition of an did not like it and it kicked
mend this afternoon at 33 cents I
Second grade -bond averages- are, income bond is one whose interest
around for three more years. This
m the
dollar, I think that requires selling at 62 te»-yield-n¥er 8■%»■
plum*should*mow be finally apreal judgment and. an appraisal
The income bondsAare almost
They
are
discounting ~ ""bank¬
proved
by' * the District •" Court
first
railroad securities. I have been in
had
a
ones
I
going
than $500.
are
.■
Wabash.
market
Of the
pre¬
but
-
lustrated
the
to
v
are
banks,
insurance
savings banks
and
were
the
the
in
men
want
you
•
bad one, and then line
is over railroads Will
bjeatbrough.
and see where the bonds Why should
tbey-goadowTi when
selling. Determine the credit they did. not
gO*mp\Y,v Southern
road
the
-
have
the
effort.
defaulted bond. It is
a
them up
•trustees
.
not
where
of
add it up and ar¬
They are in Los Angeles, ties but I want to recommend
now a new
obligation of a solvent New York, Boston, Florida and something that is now where the
railroad reorganized, on ,;a basis many other places. Compare that Western Pacific was a
year ago.
to meet the future; -likewise the with 4 your
problem
here
with The income bonds of the Chicago;
new income
bonds, the ,ne\y; pre¬ half a million working in the air¬ North Western traded, when, as
ferreds
and
the -new
plane factories. I do not say the and if issued, and don't let that
common
stocks have a good -marlvet; There railroads are not; going to have scare you. A
when, as and if is¬
is the formula. vOf pourse; these problems but so is almost every¬ sued-security is no different than
things have to go through a lot of one '.else.
any other security in that respect;
Another thing to remember is You have the
legal red tape before- they get
obligation to pay
j that despite the tax bill of two for it when you
through the ICG and: before they
get it. -They are
billion dollars this year, according
finally go through; eoui;t: and are
selling today around 50.
to the last report I have with me,
approved. It is a.rJong; joad; and
The reorganization of the North
most of them
take-years,-iYpu do the railroads have, as of May, Western is one of the most
not have to buy thcvones,.that are
1943, a net working capital, and severe.
They have a situation
going to be tied upUo<> long.- You you know that means after taxes,
whereby ihey can pay off the RFC
of 1 billion 600 million.
can
time the
That is
thipg. a^id..evaluate
loan after
the road is reorgan-'
them. I do
not}.say the-• bonds• I not a bad nest egg to go on into ized, on top of a scale-down in
recommend do not have- some ele¬ the post-war period./
AAA
debt of about 76%. If this
oper¬
Another thing to remember in
ment of risk as
todiiping^Itdnight
ation goes through it will, remove
be one. month, twofm'o.nths, three line with the financial policies is
71 million par value of new se¬
months or a year biit, wha.t dif¬ that in 1942 the pet income after
curities at a cost of 23 million
ference does it maide ,uf wpu are all fixed charges was 774 million
dollars in cash.
So the income
right in the principle -as"T think dollars more than in 1940, yet
bonds of the North western should
I will be.
dividends increased only 36 mil¬
;
sell at 15 or 20 points over and
lion dollars. The: rest of it went
After a talk such, as •this; some¬
above the average price of the
back
into
one usually
property or
to
buy other income bonds which
goeS'AutdjPffeth^.apom
today is
and
;%%AA A,v. around 52.
says,
"Those-? rail roads are bonds.A,:
A':*A"
A'",
What railroads *" have been re¬
war babies."
They.siy Lfiad better
In the Chicago, Rock Island and
stop talking because-,oiice the. war organized? There, have been 13 Pacific that plan was approved
by
no
country,
'
do
53%
can
think the income bonds
which
additional
000
March 1931 the fiduciaries in this
companies,
ferred^ You
industry gener¬
ally has, They have no retooling
program. They are - going to be
able to use the same plant. You do
not have to rebuild anything. The
labor problem will be less for this
reason. They have taken on 300,-
from
buyers. For. the
you
railroads
problems
because at the lower prices as de¬
faulted. securities you have more
sellers than
now
to be worth
The
,
came
controls
am
see
solvency in. this nation,
to
where- my; definition
mechanical
I
reasons.
rive
resistance
against defaulted bonds,.
many
economist but I cannot
how national economy can go back
to
the 1938 level and maintain
to re¬
name
saies
the
bonds.
good
a
an
Thursday, November 18, 1943
„
the future
vidual situations, investing in
you
is absolutely
buy
railroad
to
tory in the municipals when
if most of them have now
see
the
individual,
insurance
an
fashion
time. It
unfashionable
this
leverage;,-for.
;|:reason. At this point', there
(Continued from page 2005)
and
greatest
CHRONICLE
is
91%. In
addition; in
4s
will: pay
interest
this. $220.00 investr
foreseeable future of
least four or five years. That
ment
at
on
for
:
a
adds up to around
.
my opin-"income and
dividends and
the preferreds,
or
on
close to 11%
your
.
a
year return
investment of $220.00.
I am not
cifically.
$24.50 annual¬
going to illustrate
any
of
the
other
mort¬
gage bonds of Rock Island but the
potential
your
appreciation
reduced net cost
against'
is
about
90%. In other'words, with 13 rail¬
roads
reorganized and 24 more
the-Pennsylvania Rail¬ ,to be reorganized out of those 24
which
owns
all the
common
'
spe¬
1
am
now
recommending two. To
Volume
,go
Number
158
4230
THE COMMERCIAL.& FINANCIAL CHRONICLE
the whole 24 would only
over
2007
that the1 orthodox economist is the
boxes, rather than trying to plan
post war output of autos,
confuse you. I will be glad to - do
it afterwards, but, in my
tool of the
the
the two to use, irt the term of the
street the two "hot situations" in
New Deal economist considers the
planes, electric gadgets and frigidaires. Yes, it appears, that under
the ruthless cut-throat competi¬
capitalist.
.
As Dr. Haney states, the typical
opinion,
reorganizations
.Island and the
given
Island.
you
the
are
St.
I
have
bond
in
Rock
V• - /■
one
In the St.
bit
Paul, there is a little
disagreement than in the
more
Rock
Island, but one plan or the
will go through and fairly
other
in my
soon
5s
oiS
opinion.
1.975
The St. Paul
selling
are
around
$400.00.
Under one plan you will
get about $225.00 in cash and un¬
der
the other plan you may get
$210.00 in cash. No matter which
.plan goes through, the resultant
securities
new
in
value
to
reduced
cash will add
ex
around
$450.00.
up!
Your
cost
by deducting cash
would be about $200.00, Your re¬
sulting capital appreciation could
be
oVer
Yersas Free
Rock
Paul.
100%.
Capitalism
laboring man as particularly de¬
serving and is anxious to increase
lute, and relatively to the income
shares
Lewis
timely.
assured,
H. Haney's article* on the New Deal Economists is
As victory for the United Nations is now apparently
number of individuals will again have the opportunity
to live under a system of comparatively free
capitalism if they so
a vast
vate
a
system
italism.
cient
Of
of regulated capwhen suffi¬
pottage, guaranteed him by strictly regulated capitalism, and at a
course,
is
introduced,
capitalism is difficult to distin¬
guish from
socialism
or
com¬
munism.
of
Although
all
bonds
of
the
St.
the
Will
he
feel
interested
How
the
border-lines—
Southern Pacific? How
The
the
about
illus¬
%
Illinois Central
and
about
the
New
York Central? They
a
have all done
pretty good job of reducing debt.
Southern
Pacific
tory has done
getting
rid
of
maturities
in
terri¬
your
excellent job of
an
all
of
but, they
their
short
still
are
con¬
fronted in the period 1949 to 1955
with
heavy
that their
by that
be
maturities.
credit
time
will
be
those
so
I
think
restored
bonds
can
refunded
through
regular
channels. Maybe I am hoping but
I
think
they will. Whether
I
should
recommend
cific debentures
is
to
Pa¬
me
that
academic
Southern
if
cause
tures
Southern
not, to
or
extent
some
be¬
Pacific
deben¬
good, and I think they
are
in
Washington,
which
he
is
dealing.
Under
any:
who
price
is
to
point the
materialistic
life
for
of
is
person
dox
tem.
in
the
capitalistic
sys-
The scientific economist in
capitalistic society
giance to
no
owes
a
drama
should
set
be
that
so
all
inhabitants
will
have
good.chance of reaping the har¬
(1)
a
vests
of
when peace returns? To what
continued
technological
advances, and that
these ad¬
shall proceed at the great¬
(2)
to
mists,
which
institutional
back, and
I
give
comes
it
the
will, it will
greater value
defaulted securities. To
an. even
these
honest
cided
cific
think
If
with
to
if
you,
buy
some
debentures,
ally, try to get
incomes
or
because
move
d
his store to Australia
is
probably benefit the
than any other
laboring
not
dollar.
un¬
absolute
or
relative
share
ex-
the
of
I
above
logic
Pacific
to
me
.
.
freedom
ideal
has
re¬
the
returning
person's
whether
of
con¬
time
or
;977
property.
Will
a
American
from
the
doughboy;
risks-
and
of
dis¬
seek
the
advice
of the
orthodox economist.
assume
To him the term
.that,
because
servant
common)
"The
Theories
mists," Oct, ,7,
and
of
Financial
the
1943, p.
New
one
must
not
be
economists.
presumed
that
possibly
the
the
or
laboring
man,
in
'
institutionalist is the friend of the
poor,
be
economists
It
wood
and
stoves,
and
genuine
ice
ton &
Co.
,
This is under
no
circuinsiancesto he construed
as an
solicitation
of-an offer to buy,
any
offering of this Preferred Stock for sale,
or as an
offer to buy,
or as a
of such Stock. The offer is made only by means of the Prospectus.
NEW ISSUE
a
the
am
future
of
yv
%
••
.
•
'
'
J
.
■
•
'
•
;::i♦.v
%
;
•'
railroad
securities, whether bor¬
der-lines, high-grade or defaulted
issues, but I recommend the ones
with the
greater leverage first;
the
defaults,
then
the
income
bonds, and then
your
the fact
stylish'
don't
they
are
that
that
;
'
(Par Value StOO Per Share)
:777777-: 7 7
because
it
railroad
convince
y
7;77.;-;-\ 7;/
UN:
•:
■.
%7.7'v'
7' 7; -.7 %;
germ
is
not
Price $103 per
bonds,
you
share
that
plus accrued dividends from September 15, 1943
not attractive.
N. Y. Stock
Exchange
Weekly Firm Changes
The New York
has
; v''
-■
buy
to
let
5% Cumulative Preferred Stock
border-line
So, if 1 have dropped the
of
'
Stock
Exchange
the
following
announced
Copies of the Prospectus
may
be obtained from only such of the undersigned as may
legally offer this Stock in compliance with the securities laws ,pf the respective States.
weekly firm changes:
of
Interest
the
late
J.
Denison
'tU V:
Sawyer in Eastman, Dillon & Co.,
New
York,
ceased
as
of October
31st.'
,
•
",r:-
'
7
J
SMITH, BARNEY & CO.
Interest of the late Clarence H.
Howard,
Jr.,
Hill Brothers,
special
partner,
in
St. Louis, ceased as
of October 22nd.
Interest in Shaskan & Co.,
York, of the late E.
ceased
on
Chronicle,
Deal
New
Felix Shaskan
October 31st.
Econo-
Ip97.,
THOMPSON PRODUCTS, INCORPORATED
about
not
man.
"Commercial
have any danger of bankruptcy in
the old border-lines. 1
is
labor, he is not the
of the common (and un¬
45,000 Shares
■
he
biased toward
greater leverage in the other ones
because they have already been
reorganized.
I do not think you
securities,
scientific
It is false to
non-existent.
The ! growth possibilities; of The NaWashington would I tional Cash Register Co. Copies
possibly be concerned with the
[of this interesting study may be
"fair", price, not only of labor, but
had upon request from W. E. Hutalso of horses, buggies, oil lamps,
seeking the ad¬
orthodox
charges by about
.must be better because there is
their
for
the
in
16 %
can continue, and I am only
using Southern Pacific symbolic of
the roads that were border-line,
because you know it out here, if
they do that, then the other ones
one.
.
if
says
which
A
non-
theory of
would, natur¬
fixed
any of
a
if the American
to buy Wabash
duced
optimistic
of
post war
world, they should not hesitate to
arguments concerning the "just"
distribution of goods and/services
during
the
choose
principal
less, and the promises of technol¬
ogy dwarf the importance of any
or
And
people
labor
"economic maturity" is meaning¬
econo¬
else's."
anyone
hands
(be
Consequently,
highest rate of techno-
logcal progress.
as
the
man
money
purchasing-power-deficiency
tribution of income, to the scien¬
tific economist, is that which per¬
mits
business
business depressions is certainly a
that
assume
only kangaroos
he filthy rich, or
small-time saver) is just as truly
purchasing power as any other
small-time-saver
arbitrarily
in
laborer'
in society. And the ortho¬
does not distin¬
the
good
as
dollar
more
the
Australia."
retorted, "So what? Their
economist
o x
business
a friend
you had de¬
Southern Pa¬
Rock Island 4s of 1934
the
advised by
was
be
you
Southern
its
to
who
not to
generation. If strictly
vances
during the
regulated capitalism had been in¬
est possible rate.
;
%%};%;■ period'.troduced successfully in the United
Growth Possibilities
In the event that the
Whereas socialism, communism^
people States in 1900 A.D., it is probable
W. E. Hutton & Co., 14 Wall
and regulated capitalism empha¬ demonstrate a preference for free¬ that the
goods and services con¬
size
the; "just"
distribution - of dom, rather than security, as they stituting national income would | St., New York City,, members of
cast their ballots (and it should
economic
goods and services in
today be more "justly" divided in the New York Stock Exchange
terms of human needs, ordinary be recognized that, as freedom is terms
of
human
needs.
Great
and other exchanges, have precapitalism stresses (1)
freedom enhanced, security; is diminished, concentrations of income in the
of thought and action in produc¬ and vice versa), they should not hands of the chosen few would I pared an illustrated study of the
tribution,
better.
credit
o
the national income going to
is inadequate.
The correct
orthodox,
for guidance
immediate post-war
be hesitant about
be
the
the people may look
vice
Pacific
of
group
t h
between
does
will the people vote for a
| competitive system of freedom,
\ rather than a regulated system of
security?
777 ;>7
j
When the answers to the above
I questions are learned, it will be
known
man,
underdog. The orthodox economist
segment of society, s tent
labor, employer, or other.
It is
his
principal task
to
describe
how
the.stage of the economic
heard the story about the
primarily
economist
guish
j era 1 react from wartime controls
his alie- j
will
derdog and
ington or Berlin? To what extent
will the American public in gen-
interested
This
inhabitants.
fering. They apparently have not
or¬
are
o r
fre¬
"inade¬
national income
that the
The
underdog
j whether it emanates from Wash-
the
economists
Deal
assume
quate" share of
going to labor is a major cause of
business depressions, and, there¬
fore, a major cause of human suf¬
the
in
New
quently
in
makes
duties; or will he find that unnecessary
a higher [ governmental interference in his
economic personal
affairs
is
distasteful
to
way
plane
ing to the value of
must
kill the
because "There
scientific
and not producing arty fruit cake);
tion, and (2) distribution accord¬
bonds
to
way
got richer.
The
laboring man,
is be primarily interested in
other group in society. How¬
ever,
any
contribution that the
of his primary
one
are, the income bonds of the re¬
organized companies and default-;
Southern
citi¬
nor
need
is
international
in1 engage in
studies of the
his methods are conditioned j structure of fruit, cake (eating all
the
economic
system
with I the while at the public trough,
ed
;
non-laboring
one
any
the
"protection" from price-fixing
economists
the
of
function
freedom?
particularly true of the economist
Paul,
trated by the 5s of 75.
that
It is true that the scientific
price per bowl; or will he
prefer to exercise his birthright of
economist
system
the
the
thodox economist is not
"fair"
regulation
and
of
tion
income
U;::V 7,.' 7'7:y':':" ■■'
"7; v7 7v-77i'
golden goose of capitalism is to
When economists of the institutional, or New Deal, variety object bleed
the
savers
or
capitalists
to the capitalistic system, they do-♦>.
white, yet they will not bluntly
not, as a rule, endorse socialism struggles of the battlefield, be advocate that a new system be
or communism, but rather advomore interested in a daily mess of
substituted for capitalism.
by
bonds
national
.choose.
I recommend to you the Wabash
and North Western Income bonds,
mortgage
of
realize
scope,
■Rock Island which I illustrated by
the Rock Island 4s of 1934. and
of the
Some New Deal economists
zens.
'
the
rich
share
going to labor both in the absor
Dr.
very
of those years immediately
preceding "social security" in this
country, the underdog got a good
break in spite of the fact that the
the
By HAROLD J. KING, Carnegie Institute of Technology, Pittsburgh
November 16,1943
McDONALD-COOLIDGE & CO.
\.
i
^wji^-^ifcif ^ppiiig^ m m
•;<-*!
THE COMMERCIAL & FINANCIAL CHRONICLE
2008
Thursday, November 18, 1943
The Effect Of Issuing Securities Outsmarting Inflation Says Proper Presentation Of Case To Congress
prices will skyrocket. Would Bring Quick Relief From Oppressive
future dishoarding of
For Mew Capital Upon The
Securities
(Continued from page 2002)
and
set
The
accumulated
the
'
Company's Common Steele Price
v
(Continued from page 1991)
"blue chips," some "cats
some
f
!
v
.
/
_
dogs.
\
When
and
<»<.'.
j
securities
new
always
'fho
COmA
the
evaluate
same
Laws
re¬
equilibrium.
Employinent,
The
issue
"Abolish the Securities and
Exchange Com¬
by
Raymond Williams, appearing in your
Sept, 2, 1943,
clear-cut, succinct expression, of conditions as
they exist.
weakness/however, is that ft does not endeavor to point
is
a
Its
out how matters could and can-be
remedied,: In short,
"Cancerous Condition" but docs hot recommend a
it points out
doctor to oper¬
.
a
what
or
;V.v (;;y
jv
article entitled
mission,"
It
by Full
large current
a
income,
have you.
Unless
(2) the
of correcting for the
refinement
economic
our
cash
real danger to
national'
event in the same way or
issued
are
ro1xrT**TC4
not
the
will not be alleviated
of two things: (1) the market does
^^4-
'
•...
•
is
serves
ate
the
on
patient and either kill®—^
;
;
■—
of raising new
we
have him or
cure him.
are
one
of the principal causes
might expect a bullish movement of all stocks in the in¬ reached the stage where we
Frankly, Mr, Williams' article is for the condition that
you com¬
reaction, because expansion should dustry by the use of Standard and can
produce at no cost (that typical of American Industry as plain of. You shout and hollerbring increased earning power— Poor's market averages prepared
a whole—and
is to say, at no
especially the "Se¬ instead of presenting to us in
otherwise why should the man¬ on .an industry basis did not elim¬
wages) the
curity Industry.", When a law is Congress
FACTS, FACTS, Facts
agement embark upon such a pro¬ inate completely all movement of problem of inflation will be
passed by Public Clamor (real or set forth in crystal-clear
gram? But; on the other hand, the the induividual company's stock with us under any circum¬
language/
manufactured) to remedy a cer¬ intelligently presented
reaction
by real ex¬
might be bearish:; (1) price associated with causes other
stances, and cannot be out¬ tain condition and the law turns perts."
Going on, he said: "Let
perhaps the new financing was a than the issuance of securities. We
out to be an "Oppressive Instru¬ me
smarted by
tell you a story about a 'Wall
technological effi¬
recognition of poor management all know that the first is true;; no 1
for
the
purpose
money, one
in that additional funds had to be
in
raised
order
to
on
carry
one
know better than
can
I, who
data,
Worked through all of these
the
business; (2) perhaps the manage¬
that the second is also true.
looking to the long range
future, sees bright prospects and
prudently~ plansTto "beTready to
classified in
various
The
ment,
! attempt
cases
cross'
were
numerous
in
ways
an
determine any other
reap the reward, but the market j significant relations that might be
has either a different opinion or! apparent. An analysis by industry
merely places
.
the
shorter
weight
more
in
term
will
was^attempted, but there
upon
which
<
to
the
,
sufficient
in
cases
were mone Indus-
any
paying for the j try, except for petroleum, to make
rise of money which it is not yet
any indication reliable. A groupable to use to its fullest extent, ing
according to the type of
These are only a few of the rea- capital structure before the new
company
be
that, could
sons
explain either
| financing
be suggested to
bullish or a bear-
a
ish reaction.
•
Let
us
also limited by the
cases,
happened.! fering their first 'bonds to show
has
what
see
was
number of
but there was a
j slight tendency for companies of•
a
tion
which
reach
into
the
approximately
where
cases
.
which
on
sold.
in
65%
bonds
were
price is not quite
falling
!
the
group of common and
pre-1
ferred stock issue cases; approxi-
■
evident in each
was
of the three, radically
econmic periods,
•
large in
as
reaction
same
An interesting
different
of
the
j study dealt with the time when
imately 60% of these show a de- ; the reaction took place. A series
.dining price tendency. A further * of stock prices (after adjustment
Subdivision of these cases accord- for movement of the market as a
ing to the amount of new
capital-j whole) was computed for each inraised—in relation to the former
j dividual case for a two-year period
size of the,company—reveals that 1 centered
at the date of the new
the
larger
the
expansion
the ' issue. From these composite ingreater the proportion of bond dexes were
prepared for several
,
issue
cases
price
declined.
stocks
were
ate
in
which
In
the
stock
where
cases
issued the
amount of
proportion¬
capital raised
new
apparently made no difference in
price reaction. Possibly
the stock
this difference between the bond
of the groups, and each group ex¬
hibited approximately the same
tendency
tion.
as
About
to the
four
the date of the
ing,
the
and
this
time
of
months
security offer¬
began to - decline,
new
price
decline
continued
with
has
paper
admitted
that
Germany is
printing huge: quan¬
again
money." But
he went on
promising his peo¬
ple that their money will buy
all
their hearts' desire when
the
gigantic munitions indus¬
tries
will
be
turned
into
"a
"The Committee
Now
all
of
the
ills
of
the
to Wash¬
came
ington headed by one of the most
imposing members of the Stock
sphere of endeavor.
Se¬
Exchange.
It
was courteously re¬
Congressional Room
curity and Exchange Commission
ceived in the
Act
where the hearing was to be held.
Thfe Chairman of the 'Wall Street
Committee' immediately
were
catalogued and made
plain to the real author
very, very
Frankfur¬
to him
Industrial
to
on
I pointed
that built our
out that the money
to
as
it is still operating in tjie
fashion you complain of." Here is
the story:
Meeting in his particular
great
so
why
maybe let off steam at
or
Trade
a
Industrialist
Exactly what Mr. Williams
done, write a letter to his
permanent investment in gov¬
Plants
was
going into "Race Tracks"
launching into
and
to
keep
whirling, instead
of providing opportunities for the
the
He
attempted
by
of
matters
loud, bulldozing
a
Makers in
gen¬
allowed to rant and
reasonable
a
and
gressman
real
Law
was
for
time,
"Venture Capital." The letter
so
plain and forthright that
as
all
eral.
rave
Country
our
charge
type of condemnation of Congress
now
the Pari-Mutuels
Industrial Growth of
take
then
period of
Con¬
quiet
one
sensing that j?e hacl
to deliver or
information to give
message
no
any
was
genuine
wily Felix would not acknowledge
a misuse of
would permit a
study of condi¬
tions, brutally and bluntly stated
it, because it pinned
real beneficent law
a
of
the part
on
outfit he has had
an
more
to
than
the Committee Chairman:
the
Hell
out
of
these Rooms and don't
to us ever
the so-called "New Deal."
tired
authority in
Now there
definite
caused
is
by
a
the
we
back
come
damned
are
loud-mouthed
clear and .windbags gassing us with canned
the
ill "Press Agents' Speeches"; all that
very
in
way
again;
having
of
'Get
Washington and
share in putting its representa¬
tives in positions of
a
that
which
inefficiencies
have spouted
you
of
the floor of
on
goods industry of those administering the Securities this room has been a detriment to
and Exchange Act can be reme¬ the cause you purpose to be ad¬
unimaginable size." Such un¬
died.
The
way
is simple and vocating,' and then this bit of
imaginable promises to mis¬ clear—yet "Wall Street" never has wisdom was added: 'When
you
lead the public are
worthy of invoked it. The reason is that it get back to New York send some¬
consumers'
totalitarian system.
a
reac¬
before
do?
ernment bonds
tities of "excess
section
American
average
mass-pocket that carries the
ter—in a letter I wrote
and by stimulating
Sept. 27/ 1941, wherein
of
securities
new
a beneficent act,
Street Committee' that came down
legitimate business and to Washington to
complain about
not
controlling the factors that the Securities and
Exchange Act
brought it about, what does the of 1933 and you .will then know
excess;
were
The per cent of cases
ment" instead of
hurting
of that Act—one Felix
keep
the slightly favorable stock price rethe surplus money from turn¬
issued, ■; action in contrast to the slightly
the
stock
price fell—with re- unfavorable tendency indicated by ing into effective demand.
Spcct to the average of the prices all cases. A study of.the eases beIn a speech last
June, the
of all stocks in the industry—dur-: tween
1927 and
1929, between finance minister of
the Reich,
ing a period extending several 11930 and 1932, and between 1933.
Count Schwerin von Krosick
months before and after the date! and 1940 indicated that about the
In
.
ciency or physical productiv¬
ity. It is not a problem in en¬
gineering. It can only be
overcome
by the orthodox
methods of combating infla¬
tion: by
eliminating extravagent expenditures; restraining the growth of excess purchasing power; by absorbing
it through methods of taxa¬
For
a
democracy, it is fundamental
that
it
should
willing
be, able
face
to
the
and
naked
back
one
fort
requires hard work, intelligent ef¬
and
cooperative effort.
It
to us
would require the formation of
tressed
a
to
by
working
body to present intelligently and
clearly to Congress the real heeds
the
present
matter
intelligently, with facts
"Front
the
opinions
experts.
Page
We
Boys,"
but¬
of
real
want
no
want
we
no
of "Wall Street."
minor interruptions until at least facts, and should not permit
Congress'wants great figures or representatives;
cases can be interpreted as an in¬
at all times genuine and definite what we do want is
a
simple, plain
year after
the new securities itself to be led by such cheap
dication that the market is wary had
information so that they may, its truths that can be checked and
been issued. The beginning of
propaganda into most dan¬
of industrial companies with large
proved and then you will get real
this reaction agrees very closely
Members, may act with intelli¬
gerous illusions.
A
bonded debt.
gence
and
decision.
with the first of the news items in
This, they acfion,' and a final statement: 'We
issue
and
cases
the
stock
issue
These per cents do not ■ show
the whole picture. They tell which
way most of the stock prices went,
but
they do not tell whether the
movement
minor.
substantial
was
only
or
each
stock
after the
issued
was
(after
of
at
expressed
adjustment
the
market
price at
selected
a
as
of
securities
For companies that issued
a
the
in the
common
to
industry. Where
while
dustrials.
stocks
the
has
no
common
indication of
in¬
stock
that
mean
results.
In
any
cases
very
where
the
the
price
high shortly after
announcement
of
a
dif¬
hardly
can
same as
be expected to
were
found
in
the
vestment rule:
|
1.81, about three-quarters; those
fall
within
10%
of
the
i
purposes—particularly
offering large bond issues,
For
investors
prepared to
typical ratio. This indicates either make adequate statistical
analysis
a.
Editor,
ness
Shortly after I wrote
Felix" I
and
in
in
was
the
to
"Wily
The
Treasury Department in
Washington has issued its custom¬
ary
monthly statement showing
the
tion
amount
of
money in circula¬
deducting the moneys
after
held in the United States
Treasury
and
by Federal Reserve Banks
and agents, The figures this time
are
for Sept. 30,. 1943 and show
that
the
at that date
that
ber
in
money
circulation
(including, of
System)
214,612
fore
course,
held in bank vaults of mem¬
banks of the Federal Reserve
was
$18,844,446,730,
against $18,529,420,890
on
the
World
Oct. 31,
that
1914, the total
of
is,
was
on
1920. Just be¬
outbreak
War,
as
Aug. 31,
on
Sept. 30,
with $5,698,-
compares
on
the
first
June
Broker
was
cases
30,
$3,459,434,174.
afford good ap¬
preciation possibilities,
b.
may
For investors not
our
If
going to have
a
clear,
a
ply,
Congress,
Result,
ciation of
of
the
as
President
to
prove
be
a
and
is
in
Broker
in
the
Until
arranged
City of a
likewise
Industrial- World.
to
earn
ing
a
his
own
Congressman
of
on
leading (members .of
by
an
conditions
the
living
•
v v
-.
kind
;
of: repre¬
thej- Securities
intelligent
and
.
there
.remedying of the.
of
were
during
Administration.
with
of
Congress
is clear and the road
charted,
intro¬
no
program
to
complained
present
way
;
was
the "right
there will be
He
necessity of meet¬
payroll.
This
foregoing is based
presentation of facts
A practical Idealist
had
Congress wants
all the .flaws of the
Commission Act is developed and
outstanding Members
who
real
a
sentation of the interests of those
affected
his
Congress.
of
form
the subject to me.
how
of the
one
-certainty,
The
can
be
and
if
presented to Congress
so
prepared duced to the Broker. The Broker an
intelligent, clear cut program
from such cases, for then went into his act
damning,
typical case experiences an .etc. The Congressman listened tc of rernecly there would be a
sur¬
unfavorable price action in com¬ it to the
-.
end
and
then » stated prising'-•reaction.'
parison to other companies in the
:
plainly and explicitly to the Bro¬
THOMAS F. MOLONEY •
same industry.
ker:
New York' City,. Oct.
"My dear sir, you directly
13, 1943. "
—stay
away
the
,
.
1
...
#
knowledge of the actual
thoughts
Congressman
who
understood
thoroughly conditions in Congress
and
;
speedily remedied.
absolute
his : "New
visit to New York
and
that
way
All of the
was! made
wrong he was
estimation of Congress, I
a
•
'
Industry" will
rep Congress, who clearly arid defi¬
denun¬ nitely expressed their thoughts on
genuinely
for
us
real
Securities and Exchange Act will
intelli¬
as
this
together
the
in
Deal."
To
of
the
was
vigorous
Congress
benefit
Securities
them stated,
gent way to the real source of
remedy of the condition you com¬
plain of?"
"Who is it," he de¬
manded.
Busi¬
giving
practical organization to
present its problems to,. Congress
When he was fin¬
ished, I plainly and bluntly asked
"Why do you not address
in
the
by
strong,
peal Crew."
remarks
fhe
get
him:
your
and
us
conver¬
He damned
and knows the
—such
of
help
knowledge and experience'."
Broker's Office,
a
course
help business—but
must
facts
Roosevelt to
Hell and Back and all of fus*"New
Money In Circulation
of
Ah.|
want to
The fol¬
conversation in
broker's office will attest:
a
stroke.
and
cases
to
-j/';
$1,3,703,465,041
examination of the individual ra- j
Beware of the common stock of
tios shows that, though there are
a company selling securities for
some as low as 0.30
and some as ' new
capital
as
■;
1942
Third, and probably
most important, the other factors
accompanying individual future
be the
them
Y3
and:
one.
typical price ratios. past. Therefore, I believe the stagives rise to the question of dis- tistics suggest the
following iripersion about the "typical."
high
addressed
in the future instead of art Unfav¬
ones.
of
be
orable
ference for relatively large stock
in contrast to the smaller
use
awaits
one
should
same
coming
issue of securities for new
capital.
In the -second
place, the issuance
of securities for new
capital may
be considered a favorable factor
issues
The
the.
tendency to
a
risen
the
and the preferred stock issue cases,
the typical price ratio was about
0.93, with
in
only a
individual-
dissatis¬
heavily bonded
For
ject
reference
the evidence shows
tendency;, there are some
were
with
others
with
a
stock of such a company
should be, eliminated automatically
from a portfolio
during this period
very
indication of market
an
faction
this article, or on
phases of the sub¬
under discussion. Comments
new
industry.
But I do not interpret this pres-
large
sold, the typical
price ration was much lower, ap¬
proximately 0.75. This again gives
bond issues
of
issuing securities for
price; first place,
all
in
related
any
a
the
to
bonds, the typical price
ratio was about 0.96; i. e., the stock
fell to about 96% of its former
price after eliminating the
movement
Palyi,
want at all times to do.
lowing story of
8, N.
tendency for the stock
a
smallj the
amount of
Dr.
com¬
the views expressed
by
sation somebody mentioned Roose¬
velt's name.
I frankly thought
issued, j ence of
were
CHRONICLE invites
on
icle," 25 Spruce Street, New York
capital to decline
time several months be
a
the
The
ments
"Commercial and Financial Chron¬
The facts show that there
company
.
fore
se¬
;;
/*"■"
/•%
This statistical summary has at¬
is
ratio
for, movement
average)
Financial
policy?
time
a
and
show what has hap¬
pened in the past. How: should it
influence an individual's market
securities had been
new
"Commercial
tempted to
In order to determine the
magnitude of this action, the price
of
the
Chronicle" about the issue of
curities.
v'
•
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4230
158
Mutt Denies WMG
the
FHA Bill Amended
that
there
muddle,
power"
Chairman
Paul
the
of
is
War
a
V. McNutt,
Manpower
Commission, asserted Nov. 10 that
there
dustry
workers in in¬
enough
are
to
,now
production
meet
schedules, provided they
In
talk
a
are prop¬
before the New
York
Advertising Post of the American
Legion at the Advertising Club of
New York, Mr. McNutt insisted
learn
we
"Herald
from
that
Tribune"
utilization
of
New
the
York
bill recently approved
by Congress and signed by the
President, it is now no longer le¬
gally necessary for a mortgage
lender to begin foreclosure of the
FHA mortgage loan of a man in
service if it becomes delinquent.
The
/., .///;
.
of
extending back
more
and
secure
a
half
to
servicemen from the
America
than
a
relief
year
for
provision in
relief
available
through
the
Soldiers' and
Sailors' Civil Relief
on Nov. 6 by HerAct did not apply in this case.
Woodruff,
Association
The first step was for the As¬
President, that the provision as¬
sumed an unexpected and serious sociation's
counsel, Miller B.: Penaspect when it was realized this nell,
and
the
then
President,
It
old
was
noted
G.
that
meant
a
in
man
the
armed
mortgage would have his property
long effort by the Mortgage
Association
of FHA mortgages and
to be placed in the
not want
iod.:/'
of
a
did
position of immediately foreclos¬
ing the loan of a man in service.
services
Bankers
of dollars
with
foreclosed
a
delinquent FHA
too
quickly. Life in¬
surance
companies and other in¬
stitutional investors were keenly
concerned since they held millions
Charles A. Mullenix, to work out
a
preliminary draft of
bill with
a
FHA officials, which was followed
by discussions with Sen. Radcliffe,
of
Maryland, who heads the Sen¬
ate
subcommittee of the
'and
Banking
Currency Committee
on
mat¬
ters
relating
real
to
estate
;
The Senate
passed the measure
26 and the House ap¬
Oct. 7. Signing of the
bill by the President came on Oct.
on
April
proved it
on
14.
The
vestor
interest
which
also
bill
in
FHA
the
on
are
protects
loans
in
FHA
received
make maximum
available-
from
closed property, will now
accrue
once
linquent
to
foreclose
quired
as
a
even
loan
immediately
our
workers—
margin of additional productive
carry us well
the
enough
today in
if
top," he said. "There
are
men
and women at work
our
plants and factories—
properly
utilized—to
the load
on
duction
schedules."
Tribune"
all of
of
Nov.
dicated
the
Nutt
take
up
current pro¬
our
"Herald
The
in¬
further
11
follows:
as
Replying to
.
of
remarks
a
Mc¬
Mr.
charge made Sun¬
day, by Representative Clare Luce,
Connecticut Renublican, that he
had, "confessed his many failures"
-
in
releasing last Saturday a report
the
National
Management-
of
Labor Policy
Committee, opposing
legislation,
war-service
national
Mr. McNutt said:
"One
politican,
'Luce'
in
lan¬
WITHOUT life insurance,
guage—and I don't care how you
spell it, the terms are synonymous
'
I had the jitters over
legislative maneuver
/—charged
obscure
some
when
she
I
read
ticed
the loss of
Had
report.
it, she would have no¬
was
not mine,
but the
it
committee's
I
report.
have
had
nine
that any of the
evidence
no
the
released
business
signers bent before the wind."
to
create
a
burden
compulsory labor force consisting
of Selective Service 4-F's and oth¬
ers,
Mr.
any
A
attempt
warned against
solve .the labor
McNutt
to
♦
shortage "by some simple formula,
such as drafting slackers and put¬
ting them to work."'
"There
puts
man
in
severe
a
he
introduced
has
key
did not mention
the bill wnich Mrs.
Although
specifically
Luce
a
is
no
the finances of
on
♦
surviving partners.
mud¬
man-power
dle/' he said. "The muddle
is in
the thinking of every person
who
sim¬
claims
a
formula
You
ple
solving- man¬
uproot the
for
cannot
power.
millions of workers—put
lives of
them
into
unfamiliar
jobs under
working con¬
their free¬
difficult living and
ditions,
circumscribe
dom of action
—by
by various controls
stiff, unbending rule.
a
"Our
we
single,
panacea—a
way—the American way—
have moved 20,000,000 into new
jobs, converted the world's great¬
est
industries, shifted
millions of
f>l
P.,
people to new homes. You can¬
not change thousands of factories
almost overnight into war produc¬
tion, demand of an employer a
higher standard of efficiency than
he had ever achieved, all by a sim¬
ple rule of thumb— a brainstorm,
a
formula. The problem of win¬
ning the war does not lie in cre¬
ating arbitrary power; it lies in
using
the
we
power
with
have
wisdom."
LIFE
Merchant Marine Mail
'
'
'
•
the
•
~
)
!
'.
;
•
informed pa¬
New York City has
trons
of
sending mail to personnel of
Merchant Marine
that no
insured,
mail
c.
can
o.
be
d.
or
to
service.
His
advices
•
'
'
•
'
; :
'
„
'
'
'
.
•
•
r.,
*
.....
SPRINGFIELD, MASSACHUSETTS
regis¬
for
accepted
the personnel of said
mailing
•
Organized 1851
American
tered
COMPANY
INSURANCE
:
Goldman
Albert
Postmaster
Nov.
8
Bertram! J.
Perry, President
also
state:
mailers prepare pack¬
other mail matter and
present them at the Post Office
for registration, insurance or c.o.d.
service and it is desired to avoid
"Many
ages
or
the annoyance to
the mailers in¬
cident to the inability of the Post
Office to accept such matter
which
cannot be sent to destination."
'■
•'»
'
;
,
ywr
-,ji.
sttw
y» ,
de¬
action
is
under present law.
effort which would
over
fore¬
a
no
eliminate Waste—-we could release
a
the
begin to
becomes
though
labor
of
use
of
supply
the; in¬
that
debentures,
supply" is the principal problem
now
facing the WMC. "If we
could
and
mortgages.
"under-
available
our
a
a
Enaction of the law marks the-end
.1
erly used.
Under
man¬
Housing Act which
mandatory to foreclose
FHA-insured mortgage loan after
it is delinquent for a stated per¬
'Muddle' On Manpower To Aid Servicemen
Denying
National
made it
2009
re¬
2010
THE COMMERCIAL &
FINANCIAL CHRONICLE
Thursday, November 1.&, 1943
Lpvsis Haney's Study Of New Deal
Refunding Of Egypt
Theories Draws Further Comment Public Debt Planned
Canadian Government Securities
(Continued from page 1991)
sented
Direct
&
Guaranteed
Obligations
External & Internal Payment
a
warning to the people of
country/and particularly to
this
free enterprise system. I have
our
read
and
re-read
and I believe I
stand
Wood, Gundy & Co.
Bell
given
able
when
it
is
testing
realized
that
sentative
Recent
reports,
however,
that this problem
of
I
Minister
The extraordinary prog¬
Canadian
tion
indi-«>
«
still
our
make
northern neighbors.
One sugges¬
tion is to the effect that Britain
with
could
were
provide
and
Canada
with
could
adequately support at least 4 mil¬
emigrants in the immediate
post-war period.
Nova
on
3%% basis,.
a
continued
could easily cope'with such a vol¬
of immigration.
The unde¬
ume
and
,
Peace
rich
veloped
could
tories
alone
When
number.
River
absorb
terri¬
such
a
Internal issues were
glected
l
it is remembered
rate
that following World War I Brit¬
and
was
the
free
almost
still
ne-
exchange
motionless
in
of
the neighborhood of 10%% dis¬
count.
Any resumption of in¬
skilled workers unemployed, it re¬
vestment demand in this section
quires little imagination to
would
ain
had
similar
a
number
see
a
fect
happy solution of this hitherto in¬
soluble problem. Moreover, previ¬
difficulties
ous
simplified
as
are
now
Canada
is
now
change
particular
interest
to
considerable
a
rate
the
it
as
have
ef¬
been
now
ties
erably larger scale this
were
the
figures
covering
Canada
of
riod of the
ing
the
pe¬
The outstand¬
of
these
sharp
With
external
during the
war.
feature
recently
the
statistics
regard
the
to
year.
market
in
general, normal developments are
momentarily retarded by "peace
complex" developments in other
Dominion debt payable abroad.
markets. It must be borne in mind
that in addition to supply
During the three
and la
was
decline
years
months from Jan. 1,
in
the
and nine
1940, Cana¬
dian obligations payable in Lon¬
don only were reduced by $627,-
and
000,000
New
York
those
only
payable
in
optionally
decreased by $395,000,000.
or
The market for Canadian securi¬
scarcity
widening of demand in this
country, Canadian securities have
the
following
unique
features
which make them
interesting for
retention in the post-war
period.,
,
(1) It is probable that
as more
soon
as
normal conditions
stored after the
are
re¬
the Canadian
war
in the past week, although dollar will return to
par.
steady and relatively unaffected
(2) The external securities are
by the "peace scare" atmosphere mostly payable at the option of the
prevalent in other markets, never¬ holder in two or more currencies,
ties
theless
was
headway
unable
that
it
to
make
otherwise
(3) Interest
the
un¬
doubtedly would have made with
the termination of the Fifth Vic¬
rates in the Domin¬
ion rule at least lk%
in this
higher than
country, and, with the dis¬
of
appearance
(wartime
tory Loan and the resumption of
tions, there should be
normal business.
towards equalization
the two countries.
Direct Dominions and Nationals
quiet and largely unchanged
although certain issues were
quoted slightly lower. Investment
a
restric¬
tendency
of
rates
in
were
demand still continues in the first
grade provincials and
was
high
registered for the Nova Scotia
5'sof 1959 at 120%.
Quebecs
a
new
Ontarios and
taken up when of¬
fered but there is still a
scarcity
were
of
supply of
provincials.
suitable
long-term
British Columbia's "'Were less
tive with
still
on
a
ac¬
the longer term issues
3.30% yield basis. New
Sees 56 Million Jobs
Needed To Achieve
Posl-War Prosperity
Some 56,000,000 Americans will
have to have jobs if
postwar pros¬
perity is to be achieved, Col. J. N.
Andrews, Re-employment Divis¬
ion, Selective Service System, de¬
clared
on Nov. 10.
In United Press
Pittsburgh ad¬
vices it was further
reported:
We specialize in
Of the
600,000 released from
the armed services since
Sept. 16,
1941
CANADIAN
Government
-
Municipal
Corporation Securities
virtually all
reinstated
their old jobs, Col. Andrews
told the eighth annual
meeting of
the Industrial
Hygiene Founda¬
tion.
Only
ferred
•
were
to
instate
one
a
to
case
of failure to
veteran
the
had
United
to
be
States
re¬
re¬
Dis¬
trict
Attorney and the employer
agreed to reinstate the worker and
H. E. SCOTT CO.
49 Wall
St., New York 5, N. Y.
WHitehail 3-47S4
Tele. NY 1-2673
pay
$648 in back wages when in¬
formed
prepared
added.
that
for
be
New
Deal
by
Lewis
same
have
the
*
papers
read
*
coverage
y
Hon.
C.
A.
ing"
Williams
the subject
were
being
trial, Col/Andrews
the
idle
nation.
Idle
machines
idle
to
each
are
who
be
future of
is
our
read
by every
in the
plates conversion
whole
of
School
of
Republic.
*
*
Case
Economics,
Applied Science,
dol¬
or
of
by
in part "into
and
to
Each factor in
receiver, of
income
the
contem¬
the
debt
in
debt less
a
bearing
interest rates ranging from
1% to
■
:::ry/'-./'v''
v..;;'
Press, in report¬
Washington advices,
^
The Associated
ing
this
in
further said:;
:
Repayment of the
balances
of
the
guaranteed 3% loan of
1885,
the Ottoman 4% loan of 1891
and
the Ottoman 3%% loan of 1894
began
of
on
the
will
Oct. 10 and the balance
Cotton
4%%
be paid Jan.
loan
of
1941
1, 1944. and the
balance of the Cotton 4%
1942 on Feb.
15, 1944.
loan
of
The unified and preference loans
will be converted into a
single
of
"boondoggl¬
or
foolish
and
inefficient
employing
men.
in
the
ment upon Section 2
pound in
of the "Chronicle,"
conversion
and
to
the
Egyptian
one
of conversion to the
ease
preference loan.
employment.
Dec.
employment
form
of
utilized
are
In
men
and
Bondholders living outside Egypt
apply for conversion until
31, 1943, for the unified and
1944, for the prefer¬
until Jan. 15,
ence, and such
paid wages. In
application may be
they and their families be¬ made to,the Public Debt Service,
purchasers of goods and Cairo, or to the Bank of England,
services
of Professor
Haney's article in the Oct. 7,1943,
loans
may
come
Cleveland, O.
of
case
unified
Building dams and roads and re¬
forestation projects, for example,
are more commendable forms
of
each
•
The writer wishes only to com¬
issue
United
Yl
costly"
through redemption
of
outstanding 3 and 4%% bonds by
issues
of
short-term,
medium-
each
interested
FRANK T. CARLTON
Professor
the
plan, authorized
Egyptian:1 Government,
governmental
citizen
of
The '
point di¬
workers
raking"
methods
should
it
and
and
"Leaf
f
o
na¬
the demands for 3lk % loan at par, to run 30
years-,
goods and services, which Amer¬ but redeemable after 20 years.
ican industry, farms, and mines Bondholders
applying for conver¬
using machinery and power, and sion will receive a bonus of two
guided by good management, are Egyptian pounds on each hundred
prepared to produce.
Egyptian pounds of the new issue
Y
'
fine
a
residents
now
States."'!!;;
3%%.
of
.
Mr.
certain 1
for¬
prices increase
has
made
power,
stems
from
The national income
goods and services purchased by
family depends upon its in¬
come.
High
wages / and
low
on
Haney
without
each
I
a
and
term and long-term loans
lars
Wash¬
of
families
income
subject.
*
desire
dis¬
as
proceeds to buy his share of the
stream of goods and services be¬
ing produced.
The amount of
one
best
the
capital, man¬
agement — gets
its
purchasing
power in the form of wages, in¬
terest, and profits; and with this
New
is
of
man.
shrinking markets.
H.
9
recomposition
tionalization
production—labor,
Univer¬
the
from
'
Pro¬
This
customer
r
sity, which
appeared
in
your issue of
Oct. 7. yyi
of
excellent
an
rectly
of Eco¬
York
be
at
depends- upon the national pro¬
duction. If little is produced, there
is little to distribute
among the
Wichita
f
o
Economists,"
with
vestors here in Canadian securi¬
issued
the
ex¬
the Alaskan Highway de¬
velopments will be on a consid¬
debt
of
largely
It
is also probable
that end-year demands for Ca¬
nadian
dollars
in
connection
in¬
private.
resources,
will also be sustained in the
purchasing
Lathrop-IIawk-
Co.
appears
absorbed.
a
great industrial as well as agricul¬
tural nation.% % YYt %■;.: %■
Of
have
on
that the market supplies of
greatly
Theories
Sas¬
quiet
unchanged
but
Albertas
were
slightly easier; the 4%'s and 5's
were quoted either side of 78 and
79, respectively.
;!Y -
There is little doubt that Canada
deal
nomics,
comparison
Scotia issues
scarce
katchewan
;
the
3.65% basis
yield of 3.30%. Mariitobas
with the longer term
a
maturities
lion
quiet and
011 a
favorable
similar
will
for
Egypt's
public
by charity, public or debt, saying that "many, if hot the
His
dependent family majority, of these bondholders are
production.
just read, with a great
of interest, the article "The
fessor
were
given j longer term issues
deficiency is being
thoughtful consideration by
job
a
mula
of
care
tinguished
have
Haney,
popula-j Brunswicks
for
Herrick
IIV2 millions.
eate
of
Fundamentally, demand
Repre¬
period is all the more remark¬
population is only
war
the
during
Member Kansas House 6f
Repre¬
sentatives and District
in the elevation of the Canadian
of the Dominion in the
ress
all
HON. C. A. WILLIAMS
Further recognition of the growing stature of Canada among the
was
taken
out
American business
By BRUCE WILUAMS
powers
contained
worker,
without
The Egyptian Legation
ington outlined on Nov.
An
fashion; but this family will not
System Teletype NY 1-920
Canadian Securities
world
sentence
every
and
living.
they have taken form
the past 11 years.
Street, New York 5
in Washington to the rank of Ambassador.
statement,
thoroughly under¬
American
of
therein, and I have been a close
observer of these
developments as
Incorporated
14 Wall
his
standard
some
which
industry
stands
London.
'
' Y y
Y;Y
;
In addition to these
latter,
long-term
something,, worthwhile results; in bonds, Egypt will offer a 3.000,000
the former, very little.
Egyptian pound three-year issue
; I
ready to produce.
In
the
.
:
at
1%%, redeemable after two
large percentage
and
a
5,000,000-pound,
used on public years,
government has no function in
works, enough food, clothing, and seven-year issue at 2%%. redeem¬
reducing
unemployment
harks
A 15-year
shelter might not be produced. able after five years.
back to the pioneer days of smallissue at 2%%, in an amount yet
But
in
the
normal
course
of
scale
industry.
For generations
to be determined, also will be of¬
events,
as
more
unemployed
unemployment aqd poverty were
fered. : !
■"'!;/
Y'"" / Yei/Y','.!
workers are used in public
works,
considered to be a matter of in¬
idea
The
dividual
ness.
that
a
inefficiency
democratic
and
weak¬
Today the individualism of
the pioneer needs dilution.
Dan¬
iel
Boone, a high type of fron¬
tiersman, placed upon our city
streets would find
himself in the
lock-up before many hours passed.
Municipal, regulations in the in¬
terest of greater safety for the
crowds
on
our
streets would have
seemed to Boone "socialistic."
Perhaps traffic rules and ordi¬
Of course, if a
of workers were
demand for workers in private in¬
dustry increases and the produc¬
tion of goods tends
upward, and
the
need
works
for
additional
declines,
in
a
public
period
of
Legation said all these loads
teed
by
the general
the Treasury and
prosperity and of little or no un¬
employment, the building of pub¬ ing fund.
lic
ing
should be reduced.
It
also be suggested that spend¬
by employers does actually
come
before production.
Men
are
employed and paid wages regu¬
larly, even though the production
may
resources
of
special sink¬
a
works
may
in
regard
to
carrying on which
they are now working is
deadly weapons, or in connection not
actually sold for six months,
with health, may not be the only
or a
year, or some other interval
changes which a marvelous, tech¬ of time.
Industry is carried on in
nological age will force upon a
anticipation of a demand. Pur¬
reluctant and individualistic peo¬
chasing power (credit) is regu¬
ple. May it not be reasonable to
larly
created
by
commercial
insist that unemployment is an
banks and utilized by business
"unhealthy", condition which a men to
buy raw materials and
government should try to elimi¬
pay wages.
By borrowing at the
nate in the interest of production
banks the
Federal.
Government
and of higher standards of
living?
nances
The
should be tax-exempt,
"including
inheritance tax, should the latter
be established." They are
guaran¬
also
obtain
and
utilize
in
Names WLB
Group
To Study Living Costs
President
on
Nov.
from
5
the
Board
to
Roosevelt
a
appointed
five-man
committee
National
W.ar
investigate the
Labor
cost
of
living and to report the findings
in 60 days.
The
named
liam
members
of
the
by the President
H.
Davis,
representing
Thomas,
WLB
the
of
Wil¬
Chairman,
public:
President
group
are
the
R.
J.
C.I.O.
United
Automobile Workers, and
pointed paying
wages and buying mate¬
job is not an end in it¬
GeOrge Meany, Secretary-Treaser
rials, the credit created by com¬
self; a job is a means to an end, mercial
of the A.F.L.,
banks.
representing labor;
and that end is primarily the
sup¬
To affirm
that every person, and H. B. Horton, Treasurer of the
port of one's family. Secondarily, able
and: willing to
work, should Chicago Bridge and Iron Co., and
if properly directed, jobs increase
be given an opportunity to
work,
the total output of the nation con¬
does not signify that the ineffi¬ George K. Batt, Vice President of
sidered as a great industrial or¬
cient or the slackers • should be Dugan Brothers, Newark. N. J.,
ganization to produce food, shel¬
paid high wages. 'Presumably a representing employers.
ter, and clothing,- plus comforts
public works program initiated to
and
services,
for
134,000,000 take up the slack left
by private a
American men,
job except another job. Men and
women, and chil¬
industry should pay slightly less
dren.
than prevailing wages for similar women who wish to see demo¬
Every
employed
worker jobs and skills. This
government and the dy¬
program will cratic
whether employed by
private in¬ cause workers to go back to pri¬ namic
system known as capitalism
dividuals and
corporations, or by vate industry as soon as there is
continued in this
governmental units,
complex, tech¬
becomes a opportunity.
purchaser of goods and services
Insofar as private industry can¬ nological age, so different from,
which industry is
prepared to pro¬ not maintain full employment and that of pioneer days, are well ad¬
duce.
"Business needs buyers." a
public works program cannot vised if they insist
that every
Business is "good" when the fam¬ be
developed to give work to
At the outset it may be
out that
a
.
ilies of the nation are
working at. all the unemployed willing to
good wpges and spending their in¬ work,
unemployment compensa¬
come
forts
for the necessities and com¬
which make up a whole-
tion should be
there is
no
provided. However,
able-bodied, normal
person
ing to work be offered
job
or,
a
will¬
suitable
failing in that, unemploy¬
adequate substitute for ment compensation.
j\
Volume
J
.THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4230
158
iip-a-bit market and this well
;|tep;aitefv;Qhv-Gov.ieriijn'e
■
%:''■/
By S. F
•
PORTER
v
,
•
■
;
■
be the
may
in the coming
course
15
>*'
,
the proper atmosphere
non-operating railroad unions
who
loan will be
war
011
and buyers the needed enthusiasm.
.
.
.
.
the
<
,
,
.
carriers
,
.
position of member banks.
haven't been able
''
now
of
dealers
be
being
indicates
Governments have
been
through
going
bad period.
a
.
.
in many a week.
hesitancy and
more
next 60
.
days, prefer to sit on'
improved technical position.
Treasury workers at a. feverish pitch even today as they go over
suggestions and methods for getting wider distribution of war borids.
confirms
...
.
,
.
/
•
far
as
possible.
The 2s hit 100.2
...
_
The 2
..
.
.
Breaking of the
,
pute,"
national
a
be averted
railroad
and
strike
railroads
put their, agreement to
wages of
the non-
Vinson
Mr.
Originally
for
20 cents
cents
employees .eight
hour,
award.
the
the
operating
an'
.
than
2V2S
Oemg Used As Weapon To
ses
par level on either of these issues would be a
be taken for granted that the bonds will
.
.
is
an
the
straight
a
hour.
vetoed this
had
men
increase
of
-
The presently proposed
increase,
effective with the regular payroll
Nov.
on
to
Feb.
wage
." It may
.
.
may
.
reached down
be held above par by official authorities if/for no other reason
the psychological one.
That means the drop in the 2s and
municipals
.
.//'■;¥/• v; /.v.,^^//-.\>-.:'."r
serious mistake,
.
.
.
...
as
t
.
have hit1 wartime
price peak.
Basing ideas on post-war expansion in offerings,
shift to Government bonds,
money market factors.
/
...
toloo.i....
.
.
ballot
25,
If Congress adopts-the Truman
asked
.
end
would
month,
resolution stating that the agree¬
ment of Aug. 7 is "an appropriate
and valid settlement of the dis¬
A corpcfrate bonds and best-rated
.
And you know what has been the price
range.
Using the 2s and 2¥>s as a guide—and that is logical,
for the latest loans are the key to the market and will continue
so until the fourth drive takes precedence—the market fell about
significant plan.
to
will carry
.
disappointed subscribers.
Perhaps it wouldn't have shown
through so clearly had commercial banks been greater buyers
but the fact is they couldn't come to the rescue on a sufficiently
.
Nov.
increase
.
this
strike
will
..
tabulated
later
scheduled
Some changes surely will be made.
And there's still a good
bet around that Morgenthau will be compelled to
accept a new type
Insiders in Wall Street expect
.
effective,
The nation-wide
large sales of municipal bonds
public enthusiasm.
by insurance companies and other institutions not mainly interested
in tax-exempt income as fourth war loan
approaches.
7 Sellers
going into. Government bonds and getting cash to make big purchases.
Lots of t tax-exempt men around Wall Street now believe
triple
.
reflected directly in Treasury bonds due simply to liquidation by
.
predic¬
in
care
Most firms
mildly bullish for the
,the sidelines righ^L now while market
,
.
announced
of bond for January in order to stimulate
And that has meant commercial banks
...
willing to enter the lists and buy on a large scale.
or
The weakness in the stock market since early November has been
•
Check
tions than
made
was
a
lots
THE MARKET
.
the
satisfactory adjustment was
reached, the results of strike bal¬
or
.
on the
2s.
,
And those in-and-out subscribers, including Stock
Exchange firms,, dealers, individuals and small corporations, have
.been' getting out at whatever sma,ll profit has been available this
past fortnight.,.
Second, the money situation in New York has
been tight, still is tight, probably will remain less than comfortable
until strong action is taken by the' authorities to ease the reserve
unless
bargaining agreement
signed Aug. 7 by the unions and
Add up all those points and you've the pattern of the Govern¬
ment list as the experts see it today.
INSIDE
that
announced
collective
and prices
presumably will be attractive at that time to give the campaign
in the Govern recognize two
important points,
Unpleasant though the recognition may be.
v
First, there was a terrific amount of margin buying and out¬
right free riding during the September war loan drive, especially
.
'/•,
.
(4) But in January, the fourth
■
To get the full story of what has been happening
.merit bond market these last two weeks, you must
.
weeks? V.
■;
2011
Joe G.
Texas
&
Southwest Cattle Raisers' Association, alleged
are
a
on
Nov.
new
be
retroactive
recommended
scale follows:
All wages
Montague, of Fort Worth, Tex., General Counsel for the
that the food subsidies
would
19.
1. The
15 hou r to
be
,
less than 47 cents an
increased
10 cents
aa
form of
"bribery and blackmail" and hOUr.
'77 7H7/\v'/7 •
7
Bre being used as a weapon to set up a
dictatorship. Associated Press
Wages between 47 and 56 cents
advices from Washington in reporting this/stated that coupled with
the "bottoms."
And chances are it will take some time to erase
to be increased 9 cents an hour.
this charge was a prediction by another livestock
the bad memory from the minds of dealers constantly in touch with
spokesman, P. O.
Wages between 57 and 69 centsWilson, of Ctiieago, tnat a coh-^>
—-r-;
the situation.
..A//-' /¥¥//;'.
A"/..,
to be increased 8 cents an hour.
tinuation of present price regula
was not consulted before the gov¬
And now to the factors gaining precedence.
This market,
tions will bring about an acute ernment recently1 set
Wages between 70 and 791 cents
to begin with; is now fairly well cleaned out.
up its system
The financial firms
of livestock price ceilings through to be increased 7 cents an hour.
which were loaded with 2s and 2V2S have taken their minor profit shortage of beef next year.
to
went
dangerously extended point.
back now, once again is under control.
a
.
.
.
The market has come
But we've bad a test of
.
.
.
...
.
.
.
.
.
.
and
shifted their
speculators who
those
—and
*
.
.
.
An Associated Press account
securities
.
were;
shoulders and turned elsewhere.
.
the
use
Wages between 80 and 89 cents
to be increased 6 cents an
Mr.
,'//■
.
figures
bank
member
on
Montague
.v
that, the Federal Reserve
activities in 101 leading cities
before
ness
was
the
the first wit¬
Senate
Rail
ture Comittee which opened hear¬
for
broaden the $800,000,000 a year
subsidy program, which President
four
Roosevelt
for
the purchase or carrying of securities
$600,000,000 since the first week in October.
obvious
that
those
of
most
loans
down
are
than
more
V
the
for
were
purpose
of
to
proposals to continue and
advocated
essential
as
increases
cents
1,100,000
road
check
to
non-
workers
ranging
ten
cents
operating rail¬
were
over
to
be increased 4 cents an hour.
from
hour
an
hour.
Wages between 90 and 96 cents
to be increased 5 cents an hour;
Wages of 97 cents and
To 10c Recommended
ings
on
Pay Rise of 4 Cents
Agricul¬
show bank loans to brokers and dealers in securities and bank loans
It's
of subsidies.
.,
To give you statistical confirmation of
System's
as
to more permanent investors.
The
given, in the New York "Su.i'
looking for an immediate ¥2 to % point profit
said:.■'"•/ 77.77;
-77.',, ;'v
legion—have to a great extent shrugged their
were
recommended
B, M.
:
Jewell, Chairman of the
Rail Employees
Wage Conference
Committee, said, "We consider the
inflationary trends and
proposals to be entirely unsatis¬
on Nov. 8 by a special
emergency
living posts.
bribery that I refer to," board with the approval of Fred factory, and that they would de¬
he continued, "is that system that M. Vinson, Director of Economic stroy our whole wage structure
And now the true, important factors in the price situation may
has become so prevalent in our Stabilization.
built up. through the years. The
These
recommen¬
come to the fore.
Namely, the extent of bank buying in the open
market. .The influence of the fourth war loan and its size.
The lives, the offering of a payment to dations,
however, met with prompt recommendations do not resolve
an individual as a dole or
gratuity.
position of the money markets,
;. The approaching Christmas holi¬
our difficulties at all."
-/.
The price demanded and extracted rejection from the/ chiefs of the
day and the seasonal increase in currency circulation.
,/,
is
the
surrender
of
personal
:
And the official support of a market which must be in good,
\77;W.'
receptive shape for the January drive.
:u;3j:;mption notice '
For a sloppy bond list liberty.
"The blackmail I refer to is that
and a multi-billion dollar financing—even if restricted to indivi¬
species of punishment by way of
duals and corporations—are mutually exclusive,
•
To the Holders of
withholding the gratuities, the
THE FOURTH LOAN
imposition of penalties, the en¬
Oddly enough, for the first time since the war drives began, forced reduction of prices and
Unified Mortgage 1% Bonds with Extension Agreements of Series B
even fines and imprisonment
private sources and what may be assumed to be official represen¬
;¥■::/
■/ clue January 1, 1000 attached
tatives of the Treasury are diametrically opposed on estimates of the when the individual citizen re¬
NOTICE IS HEREBY GIVEN that, pursuant to the. provisions of the Supplemental
fuses to accept the dole or'gra¬
size of the next war loan..
Latest reports from Washington indicate
Indenture dated January 1, 1940 between Louisville and Nashville Railroad Company
77
and Central Hanover Bank and Thist Company, as Trustee, supplemental to Unified
the Treasury is planning on borrowing $40,000,000,000 more between tuity."
77-•'77/7/
Mortgage dated June 2, 1890 from Louisville - and Nashville Railroad. Company to.
Mr.
Montague challenged the
now and June
30, the end of this fiscal year. ... Edward B. Hall,
Central Trust Company of New York, as Trustee, the undersigned has elected to
assistant to the Secretary of the Treasury, actually came out pub¬ legality of President Roosevelt's
redeem out of.'unexpended-Sinking Fund monies on deposit with the Sinking Fund
carrying 2s and 2¥>s.
Which
.
the in-and-out traders have
means
left the
picture, for they didn't have mariy more than $800,000,000
bonds to start with.
/"//■•:: :■. ■■ ■'■
- .• ■■'V
.
hold down
"The
.
.
».
,
.
.
...
.
,
.
_
.
.
,
.
.
.
.
.
.
...
licly
with this
estimate
recent convention.
circles
is
that
,
.
.
Investment
the
at
Agent and does hereby call for redemption and payment on. January 1, 1944, $157,000,
principal amount of bpnds as indicated below at 105% of the principal fimount
thereof and accrued interest on the principal amount to the date of .redemption.
The serial numbers of the bonds to be redeemed have been drawn .by lot by Central
Hanover Bank and Trust Company as Sinking Fund Agent.. and are numbered as
Association's, executive orders setting up price
control machinery. He said the
Bankers
But latest information from Government bond
half the
stated
will be
amount
sufficient.
.
.
.' The
effect of subsidies was to increase
the
dangers of- inflation by pre¬
$40,000,000,000 figure doesn't take into consideration the facts that
actual expenditures are running
behind expectations and actual venting normal price increases
arid thus,failing to drain off ex¬
revenue receipts are running ahead of expectations.
The Treas¬
cess consumer purchasing
power.
ury has a tremendous cash balance on hand now and that'too much
We likewise quote the following
must be brought into any intelligent appraisal of the outlook.
The larger figure is based on budget statistics.
And these can (Associated Press) from Washing¬
be misleading to an utterly bewildering degree if they're not viewed ton appearing in the New York
.
.
follows:
Unified
outside
a
.
The
huge loan in January would take a huge
work, .
And this already is mid- 7
The time is growing short.
.
What's more, the
point is
of
amount
November.
a
preparatory
...
.
.
difficulty absorbing another "basket"
some
—unless that basket contained a popular non-negotiable bond
which would go into the portfolios of individuals and which
would obviously not interfere with outstanding bonds.
...
/
Treasury then, must make a decision between two things.
it gives up the idea of a record-sized January loan or it
creates a new bond which will sell well and which will
market.
.
.
.
It doesn't want
to the obivous.
.
.
.
a
new
bond.
.
.
.
'7
V;/'
stay off the
And that leads directly
'/(tub'7i7\7--,/J:
.
It's
fairly certain, though, that commercial banks will be ex¬
cluded from the January campaign,
Now' tentativelyJset: for the
10th.There's also considerable pressure for excluding insurance
,
.
,
that
told
he
was
the
com¬
convinced
.
"complete And -perpetual
control
and dictatorship of every phase of
our lives is desired
by influences
that are directing the government
policies."//' s
.v.
.
..
ernment
those
•'closely attached" to
he declared, is
or
in
power,-
seeking, to revolutionize the "so¬
cial, economic and political struc¬
ture of this country." 1
•
He
argued
that
Presidential
orders
creating the price control
set-up
are
•'illegal, that subsidies
companies and savings banks but Secretary' Morgenthau probably actually are inflationary because
will be afraid to risk that much.
;
If the'drive is really restricted they block normal price increases
would
drain
off ' surplus
to individuals and individuals fail to'come,"through oh an impressive that
.
.
enough scale, the result may be disastrous both from a financial and
a
morale point of view.
And Morgenthau is a very cautious
.
man...
It
.
.
the current bill to another genera¬
.
comes
(1)
at any
and -that, in effect, the
subsidy system simply passes on
money,
tion.
down to this—
The market is in
better technical position today than
time since September clue to the cleaning out of the specu¬
lators.
a
...
However, we're entering the usual period of year-end
readjustments, currency circulation increases and we're up
(2)
against
(3)
an
unfavorable
money
market situatiom
Ordinarily, that would
mean
a
...
'
quiet, down-a-bit, then
Mr.
Wilson'/explaining his
diction
that
of
a
beef
production
shortage,
next
pre¬
said
will
total only. 5, 800,000 pounds, about
1,450,000,000. pounds
less
than
year
this year and 2,875,000,000. pounds
under
1942.
•
He contended: that the
industry
'."
;,-V
with the letter B
19707 21413 23284
20249 21500
20351 21542
20363 21545.
20412 21610
20446 21618
20465 22093
20808 22245
20960 22308
21009 22628
21230 22765
Unified Mortgage 4% Bonds with Extension Agreements of Series B attached
registered form without coupons and/or the respective
23460
23716
23744
23890
24105
249(4
24982
25120
25121
/ .
in fully
portions of the principal thereof:
/,;
BV10
$5,000
BV17
Some influence within the gov¬
The
Either
Montague,
.
.
market would have
Mr.
mittee
/•//■;.;/■,.
Extension Agreements of Series H attached in
•
"Herald Tribune".
7
Bonds with
form in the denomination of $1,000 each, all prefixed
202 2743 4568 6395
8661 10212 12232 13882 15727 17893
212 2758 4672 7259
9080 10413 12339 14048 15932 18006
334 2974 4706 7433
9236 10438 12390 14270 15960 18035
841
3159 4718 7546
9432 10455 12500 14436 16183 18115
892 3761
4853 8008
9454 11248 12531 14587 16406 18515
1573 3883 5051 8012
9685 -11602 12585 14748 16484 18776
1757 4038 5081 8058
9723 11633 12640 15032 16924 18845
1843 4078 5287 8377
9733 11674 12795' 15241 16928 18900
2032 4153 5723 8434,
9759. 11817 13538 15265 16962 19159
2391 4222 5798 8446
9865 11868 13629 15379 17030 19409
2503 4357 5925 8559
10191 11933 13721 15457 17630 19618
.
vacuum.v.
4%
coupon
.
.
.
V;
.."/
;
Mortgage
$5,000
BM120
BM 121
$1,000
$1,000
BM 656
$1,000
BM 659
-
$1,000
.$1,000
BM 660
A% Bonds with Extension
denomination of $1,000
each, the Unified Mortgage 4% Bonds with Extension Agreements of Series B attached
in fully registered form without coupons and /or the portions thereof which have been,
called for redemption, will become due and-payable at 105'/e of the principal amount
thereof and accrued interest on such principal amount to the date of redemption at
■the office of the undersigned, Room 900, 71 Broadway, New York City, and interest
on said Bonds and/or said portions of fully registered Bonds so called for redemption
will cease to accrue from and after said date.
Said Unified Mortgagei 4 /r Bonds with
Extension Agreements of Series B attached in coupon form should be presented for
redemption and payment at said office of the undersigned on January 1, 1944 accom¬
panied by" the interest coupons maturing July 1, 1944 and all s}lb®equ®nV.^0n^ ,"
The coupons due January 1, 1944 appurtenant to said-Unified Mmtoige 4/Bonds
with .Extension Agreements of Series B attached,called for
presented for collection in the usual manner.
The Unified Mortgage 4,r Bonds with
Extension Agreements of Series B attached in fully reg:btered :fotm and/<oi
tions thereof which have been called for redemption .should be piese:nted
gIlsi0^
able form and the holders thereof will receive a new bond and/or bonds with
^
Agreements of Series B due January 1. 1960 attached in fully
not
option of the holder in coupon form, for that portion of the re»iste ea
1, 1944 thei above described Unified Mortgage
Agreements of Series B attached in coupon form in the
On January
:
C°-on^Ser°12,1943 Bonds bearing the Mowing
above;issue previously called for redemption
had not been
presented foi payment,
BOND NUMBERS
B5765
B5767
B6110
B6113
B7708
By: W.
B19252
B19900
NASHVILLE RAILROAD COMPANY.
J. McDonald. Vice-President
LOUISVn.EE AND
DATED: November 12,1943.
E7876
2012
THE
COMMERCIAL & FINANCIAL CHRONICLE
both in vestments, and
deposits but
its cash remains
unchanged.
The Securities Salesman's Comer
It
taxes
Assistance
are
two
ooportunities for
during the period from
accounts,
be
In
capitalized if
order
to
you
increasing business, and
are
trade
or
SOME MONEY ON THEIR TAX BILL.
proposition—isn't it?
That's
7
pretty interesting
a
'
.7
The next thing is to make your
cialist
attention
as
tax
on
arresting
and
matters.
Of course this
but rep¬
in
now
the
result
the
taxes
those
a
no
reasoning applies
not
are
identical
many of the latter who will
find themselves possessed of ad¬
ditional idle funds available for
reinvestment.
The
however, that idle
be
no
fact
cash
greater
remains,
whole
as a
than
debt retirement took
before
place.
holman
Cincinnati, Ohio
"WHERE
IS
THE
MONEY
COMING FROM?"
From exactly
where it ought to
come, but only
if and when out economism
(see
through
7
efforts and
our
as
evidence of
7
our
satisfactory relationships we can proudly assert that in upwards o'
15 years no single client has
complained or terminated This or her
association with
us
because of dissatisfaction.
It hardly seems that
to that portion of the public served
by us if
by virtue of misguided reform we are obliged to suspend operation.
I suggest you follow
your usual procedure as regards signature
any
with
be
alfred
It is usually more effective for the salesman to offer the services
in their financial status
7
who
receive the proceeds
from debt retirement. There
may
will
(Continued from page 2000)
the
is
only to investors and the banking
system as a whole. Those who pay
as
77
:
system,
Enforcing Profit Limitation Decree
Despite Avalanche:-Of Opposition
%
not
vestment.
the
;
presentation of this capitivating
interesting to your customer
as
is possible.
This is not difficult if letters are kept free from
technicalities; if illustrations of what you have been able to do for
others is told in simple language; and if
your offer to supply informa¬
tion includes an opportunity for individual consultation with a
spe-r
subject
income
funds
do
NASD Seen
as
addition to idle funds seeking in¬
better
not asking them to invest money, spend money, speculate,
one security for another—YOU ARE
COMING TO THEM
WITH THE'SUGGESTION THAT THEY MAY BE ABLE TO SAVE
you
retirement
new
far
so
reduction in Federal debt with
a
appreciate the possibilties for conducting a
successful campaign based upon the presentation of an idea such as
"tax savings," consider for a moment the
psychological efficacy of
such an approach to your customer or your
prospects. For a change
that in
me
debt
idle
banking
new
now
in
are
from
resent
on until the year-end that
position to do so. (a.) Bring
before your regular clientele the advantages of establishing tax losses,
(b.) Use an offer to supply information and assistance in showing
non-customers how they can secure substantial tax savings by tak¬
ing advantage of the possibilties inherent in the Revenue Act of 1942.
should
for
come
Opportunity In Campaign Which Offers Tax Saving
There
to
seems
Thursday, November 18, 1943
benefit will
accrue
dealer no. 41
77;,,77-'''
I attended the
Antonio and
was
meeting of
a Kiwanis Club yesterday here in San
interested to hear about a new project the, Kiwanis
International is sponsoring,
"Keep His America American."
7
Although not a Kiwanian myself, I do believe that we would do
well to support this
move, because then possibly some of these re¬
strictions on our system of free
enterprise would not bear fruit. 7 >
-
You
doing a
houses to exist, and if
are
splendid
job
trying
to
assist
small
security
we finally have to close
up shop you should at
least be able to sleep well at
night, knowing that you did your best.
It was once said,
although I do not know the author, that an optimist
is wrong just as much of the time as is
a
pessimist, but the optimist
enjoys life to a greater extent.
It is becoming increasingly difficult
to remain an optimist as
regards the possibility of small shops re¬
maining open.
We don't particularly mind- the 5%
limitation, or a
2% or a 10% limitation, but it seems that these
restrictions lead to
even
more
limiting restrictions, they being only stepping-stones to
Jay Nock—Memoirs of a further
control.
An optimist will feel that
finally there will be no
For instance, let us assume that the salesman is mak¬ Superfluous Man) is scientifically more
stepping-stones—but some optimists are beginning to wonder
geared to the1 production, acqui¬
ing a call on his old clients—what is the situation in most cases?
if their philosophy is so well founded.
The customer usually knows the salesman
pretty well and they have sition and distribution of wealth;
/wealth being only the goods es¬
had numerous talks
v
' 7'':'
together on financial matters.
dealer no. 42 '
Although the
sential to mankind's
salesman has the client's confidence as to
sustenance,
This letter is written in
security values it is quite
response to your plea to fight the NASD's
comforts,
and
kindred
unlikely that the client also looks upon the salesman as a highly shelter,
attempt to limit profits on sales of securities. I agree with you whole¬
physical requirements.
qualified tax-expert.
But if the salesman knows enough about the
heartedly and disapprove of the move. In place of
making rules as
The sole reason money—circu¬
provisions of the Revenue Act of 1942 to point out just a few pos¬
to profits, I believe the Association should
advise all members as to
lating medium—(in no conceiv¬ what
sibilities for effecting tax
savings, and suggests to the client that
percentage of profits are being made on various types of securi¬
able sense "wealth"
there is someone in the office
or, what is the
ties and by various classes of dealers.
(a partner for instance who has spe¬
same thing
cialized in these matters—or even, some outside tax
"worth") is employed
specialist who
I firmly believe that the
big majority of dealers do not want to
might be hired by the firm to sit in on consultations) the possibilities is, because theoretically, at least, be
"out of line" in pricing securities and further
it is a measure of
believe they will re¬
for increasing the effectiveness of this entire
exchange of
campaign, in our
7
goods for goods, services for serv¬ spond to suggestion.
%
opinion would be immeasurably improved.
ONE OF THE MOST
The recent red herring of the NASD under date of
ices, any value for another value.
DIFFICULT FEATS THAT ANY SALESMAN CAN ATTEMPT
Oct. 25, gave
IS
a start
That is it is easier for me to
along this line. This same letter signed by the Chairman for
TO SELL HIMSELF AS THE EXPERT—NO
pay
of
other than
someone
himself when
it
comes
technical
to
Albert
matters
of this kind.
MATTER HOW MUCH
HE
IT'S ALWAYS PREFERABLE TO SELL THE EX¬
PERTS IN THE OFFICE.
In other words, is is our belief that the
pay
call upon me to render; and so on
ad infinitum.
7%
salesman
should sit in on the
conference, but his primary duty is
either to arrange a call to see the client at his
office, or to have the
customer come in to the office of the firm.
In either case a third
party should be present who is qualified to give advice and make
suggestions which the salesman
Here
are
a
few
visions of the Revenue Act of
good will,
Short
1942.
term
were
your
better.
never
also
welcome
additional
are
assistance
of
aware
and
the
advice.
It
you do a favor of this kind for a
prospect he
wilL surely become a
customer—and your regular customers will
be tied that much closer to
you and
us
that
worth, Prof.
Chase's | question of course is in¬
evitable; and, for the above rea¬
son, just as inevitably wrong. For,
losses
understand—others who
to
seems
to have true value
building
customers good," hard-
(under six months holding) can be matched
against BOTH short term gains (under six months
holding) and
long term gains (over six months holding).
Short term losses or
gains are computed at 100%.
Long term losses or gains are com¬
puted at 50%.
"
..c,/
.y:
Notice the opportunity afforded
by establishing short term losses
against long term gains.
They are worth twice as much as long
term losses when used as an
offset against profits—whether the
profits be either long or short term.
7;-?. '7.;' ■77: ;-77:.
The possibilties for
having saving money on taxes is something
that many people do not
situation should
stocks, all evidences of debt to be
wealth, or, what is the saine thing,
pro¬
The opportunities for
effecting trades, and saving
earned, tax dollars
Our economy, assuming money
and all of its incidents like
bonds,
follow up and execute.
can
high-lights of the capital gains and losses
once
your
organization.
,
in money than it is to
him in legal service he may
my grocer
KNOWS,
unless sufficient
and
by
here in the U, S, A. there
us
isn't a chance, in the world for
the people of the U. S. to
pay one
,
another what they
Germany tried
preceding this
Study Prepared By Stuart Chase
The Nov. 4 issue of the
"Chronicle" contained
special report entitled, "Where's the
prepared
for the. Twentieth
Century
known writer
on
economic, subjects.
safe
a
ment funds.
views
and
haven
for
invest¬
With reference to the
conclusions
expressed
by Mr. Chase,.the "Chronicle" has
been
favored
with
the
following
comments:
F. W. MARRINER,
Vice-President, The Union
summary of the
Money Coming From?" being
Fund, by Stuart Chase, well-
Prof.
tional
of Watertown, Mass.
article,
"Where's
the
Money Coming From?" appearing
in
an
the
Nov.
4
issue
of
"Chronicle," Stuart Chase
ed
as
the
is quot¬
saying, "If by some miracle
were paid off
tomorrow,
the debt
we
should have such
a
stupendous
pool of idle money in the bank¬
ing system that the Government
would be forced to open the sub¬
scription
whole
books
financial
again
lest
structure
the
col¬
lapse."
Truly it would require a mira¬
cle to bring about such a condi¬
tion.
We have been taught to be¬
of
need
from"
IF
wealth
And,
produce
we
above
as
won't
we
wealth
until
on
worry
our
defined.
economy
basis.
dation.
leave
on
any
worse
that foun¬
off
than
is
our
great
increase
we
as
ment
borrowing and spending. By
the same
token
debt
retirement
can
only be obtained by .tax¬
Payment of taxes reduces
bank deposits which are the ac¬
ation.
cumulated idle funds of the
pub¬
lic,
The proceeds from, the re¬
tirement
plenish
Thus
the
of
debt
these
the
pool
reduced
of
to
serves
idle
than
before
re¬
the
be
debt
in
no
re¬
tirement took place.
If debt is retired the
public as a
whole loses investments to the ex¬
tent of the retirement but the
pro¬
ceeds
merely offsets the cash
lected
in
process
the
taxes.
In
Inc.
13
of
of
the
reported
of
National
Securities
Robert
members of the
F.
the
col¬
same
profit
if I had sold them
as
buy, sell it to them
some
By the
same
unlisted stock,
standard, the New York Stock Exchange Commission
bought or sold just to get a turn¬
;77
•
.
I suspect the smaller dealer
the NASD.
is by and large antagonistic toward
He also closely associates the NASD with the
big dealer
as a class.
This-feeling on the part of the smaller dealer is probably
reciprocated, although as individuals there are many close relation¬
ships and feelings of confidence between large and small dealers.
7; If this situation exists, it certainly is not a healthy one and
should not be allowed to continue if our
organization is to be a real
association.
If this situation exists, it can be
readily cured. To do so
all the powers that be have to do is to
see that men
representing
small houses-get on the Board of
Governors, etc. Both large and
small dealers might get a different
viewpoint and come to a mutual
understanding of each others problems.
The
man
who calls
on
for the SEC does his
us
manly, courteous and unassuming
him and the SEC because of it.
v:v".:■■■."■I
;".";;;7'■■
way,
job in a gentle¬
and I'm darned if I don't like
7.
dealer no..43 .'
7
:?v,'.7.;.
■
much interested in your article in the Nov. 4 issue
concerning the attempt of the NASD to curb profits of dealers in se¬
curities.
I recently read a statement in a letter as
follows (relative
to another
situation), the question was this:
7;
was
very
"DO YOU REALIZE
that the State
insists that the insurance
industry operate
If the industry operated at a loss, its assets, and, thus,
the insurance protection it furnishes would soon
become im7/7," paired?
Hence, the State insists that insurance rates 'be suffi¬
.
.
.
solvency, at the
1
same
time being fair
..''''7-. :'7.
It is by
S.
board to succeed
Edward
Bosson, of Putnam &
Co., Hartford, and Lee M. Limbert of Blyth & Co., Inc.
observation, since returning to more activity in the busi¬
myself, that the average dealer in unlisted securities is only in¬
in taking care of his
employees and earning a reasonable
profit. During the last few years his expenses have climbed tremen¬
dously. This has been due to more detail required of him and com¬
pleter services to clients demanded.
ness
terested
It is rather, surprising that anyone would
say that he should be
limited to profits on some fixed percentage basis.
After all, condi¬
tions change;;,wages go up and they
go down and overhead
-
varies
from year to year.
Is there any kind of business that can stand some
agency saying your fees must be so much?
Generally rates in any
business, whether it is the business of a farmer, the grain dealer, the
manufacturer
A.
or merchant, the
railroad, or any other, are charged
according to what it costs to do business, plus a fair return.
Eckert,
Mohawk
Valley
Investing Co., Utica; Herbert F.
Boynton, F. S, Moseley & Co.,
New York; Wilbur G. Hoye, Chas.
If anyone will look into the
earnings of the average unlisted
dealer—and the character of the unlisted dealer is
getting better,
because the business has gradually been cleared of those not
desired—.
they will find that he has not been profiteering.
His business is
Named
the
as
regular candidates for
district
committee
were
deposits. James
money
banking system would
greater
No.
Association
committee
a
cient to insure company
to the assured? "
:.7': 7
Dealers,
Morris,
/Robert S. Morris & Co., Hartford,
and Henry W. Beebe, Harriman
of Ripley & Co., as candidates for
only exportation
flated deposits.
Funds for
the
nominating
good
profitably?
Slates Candidates
The
member purchases or sells
a
securities
is way out of line if the
security is
over.
Or is that done?
in
District
a
for that matter trust shares.
is put
Certainly, trying it won't
us
on
bond that I think is the
security for my people to
that
Henry
are
now, which obviously
horrible as it could be.
account
and make as
or
com¬
suffi¬
produce
scientific
a
not
"money is
particularly critical of the spreads
a security for his
exchange and effects the other side of
the transaction with his customer on a
principal basis."
I do not
know, nor did they say what, in their opinion, was too great a
spread.
However, it is a sorry state of affairs if I can't take a listed stock or
in transactions where
own
.....
us
NASD District No. 13
that
.
Bank
In
Chase
deposits and currency has resulted
first from our importation of
gold
and more
recently from Govern¬
of gold or retirement of
Govern¬
ment debt will reduce such
in¬
Na¬
war
George in his Progress and Pover¬
ment
viding
the
All
one.
ty tells how to put it
a
Mr. Chase asserted in his
paper
that a post-war national
debt of $200 to
$300 billions "need not ter¬
rify us and contended that the public debt
can be used as an instru¬
for
making full employ-**ment, checking inflation and pro¬ lieve
after
happened to her. That
is, she printed media of exchange
by billions in excess of exchange¬
able goods and services; finally
Using it for a good purpose—fuel.
about where the
Money Coming From?
owe each other.
it
know what
cient
Some Views On
wealth—exchange
services—is produced
goods
ing
Where's the
or
the Board of Governors
said, "The Board has instructed District Busi¬
Conduct Committees to be
ness
W.
Scranton
& Co., New Haven;
Currie, Jr., Troster,
Currie & Summers, New York.
Laurence M. Marks, Laurence
M. Marks & Co., New York, is
chairman of the nominating com¬
and
James
banking system loses mittee.
different from the Investment Banking House that is
large and does
financing.
His problem is different from the average
syndicate
brokerage house. If the distribution of securities costs a certain over¬
head, then the charge for the service rendered must be based on
that cost.
7
Everyone in this business has a real responsibility towards his
customers, and can only meet it properly if paid properly for his
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume
158
services,
The investment dealer to do
Number 4230
good job must be able to
a
.2013
iiiiiiiiimiiiiiiiiimiiiMiiiiiiiiiimiii'i
what the service given costs plus a fair profit.
I think you are doing a good job in bringing facts to the atten¬
tion of the public and to those who, through misinformation or un¬
democratic methods, would put out of business legitimate unlisted
earn
dealers who have
a
right to make a living in this democracy of ours.
dealer
Congratulations
no.
New
/
be forced out of business in defiance
can
it may this is the
as
be excluded from offerings.
England
brush.
dealer
.
■
no.
STOCK SERIES
Prospectus
Prospectuses
wouldn't want to
you
to
think
me
request
/
GENERAL
120
am
■
..
■
\
'
dealer
.
no.
v
and
:
,
.
n
46
.
NASD'S Article
on
the small dealer to vote against the wishes of the
■
&
■
25
Board of Gover¬
by forcing the dealer to sign his firm's name and his own name
to the ballot, said ballot consisting of an open-mail penny postal
card
(exhibit attached). These ballots are closely watched.
For
!
A. W. SMITH & CO., Inc. E
55
111
DEVONSHIRE
=
E
STREET
BOSTON, MASS,
~
^iiuiiiiiiiiiiiiiiiiriiiiiiiiiiiiiiiiiiiHiJ
i
Section
quote
3
of
from
Article
an
address
"Tax
annual
an
New
I, Adoption and Interpretation, states the
rules shall be interpreted in such manner, etc., shall be just, reason¬
Nov.
"building up" kind.
Every intelligent business
knows
the
to
Bar, declared in
on
Peculiar to the Close
before
and the
which
long
run
kind
is
for his
of
York
Matters
Corporation"
tax
meeting
State
of
of
at
on
in
busi-.
own
business.
of
most
for
to
us
build
Dut
to achieve
being
SHARES
easier
it
down
than
to
constructive
Hence,
up.
STEEL
some
common
makes
us
tear
competition is not
is
man
best
and for the welfare of his
field
Corporation
field, like in most other fields of
company
quirk of human nature
of the New York
the
investment
enterprise, competition provides the vital stimulus to
progress.
In the investment company field, like in other fields, we
have witnessed two kinds of competition—the "tearing down" kind
ness
Tax Mailers Peculiar
an
the
E American
Society
NASD letter to us of 7-10-42: "Up
Certified Public Accountants
to the close of business of July 9, your ballot on
proposed, etc.,
the
Hotel
Waldorf
Astoria,
had not been received in Philadelphia."
i
:
we
easy
an
in any field.
increasingly
A Class of
thing
That it
v
profit in
excess
with
conversant
everyone
facts
••
V
v.-
A recent
expression in the spirit
of constructive competition comes
from the Editor of
&
Co.'s
quote:
New
-
York
/■:
.
GROUP#
Hugh W. Long
"
Letter.
YORI
We
•
.
"Growing Public Demand for
any,
other
types of constantly available, and
always readily disposable, invest¬
ment vehicles.
"There
%
in
were
United
the
States at mid-year about one hun¬
dred open end companies.. Their
assets amounted to
approximately
$700,000,000.
Many
investment
firms, not previously identified as
distributors, have evidenced an
active
interest
Such
firms
and
shares.
prominent
stock
also
which,
underwriters
new
their
various
of
members
changes
zations.
in
include
larger
while
or
ex¬
organi¬
primarily
distributors
oL
issues, have found investment
company
shares
a
suitable invest¬
ment for their clients."
Another recent issue of the New
York Letter contains
(Continued
on
a
page
"Letter to
2016)
Keystone
Custodian Funds
Certificates of
fsM.
Participation in
Trust Funds
investing their capital
as
follows:
..
have
Board
no
quarrel
of
with
Governors
charge exceeds
The profit
a
that,
of
but we do
infers
NASD
have
we
are
quarrel
when
the
dishonest
when
our
a
on
new
Wood, Walker & Co., 63 Wall
justifying Street, New York City, members
the
profit on these issues; however, we do not subscribe to that
explanation and contend that expense is what governs a profit for
above-mentioned
or
the
small
dealer.
of the New York Stock
have
prepared
an
Exchange,
attractive bro¬
Furthermore, the
cost cannot be too excessive beca£ise\pf competition and because
the small dealer's success depends ion the^success of his
clients, and
the latter is particularly true of /small dealers operating in small
reviewing the bonds of the
new
Chicago & North Western
Railway Company, discussing the
territories.
investment and appreciation. Cop¬
ies of this
interesting brochure
When
■
an
important faction
like this 5%
profit
ceiling or the
Minimum Capital Requirement is trying to be taken by NASD, the
grapevine usually reports that it undoubtedly has SEC approval or
it is made to offset some worse contemplated action on the
part of the SEC.
If this is so, wouldn't it be more honorable for
NASD to fight SEC's contemplated or real action in the courts or
the halls of Congress, if necessary?
(Since when did two wrongs
make a right?) NASD's estimated income of $321,000 for 1944 should
chure
possibilities
may
be
of
certain
obtained
Walker &
issues
from
Series
SELECTED INVESTMENTS COMPANY
provide them with plenty of funds to fight with!
This ruling is wrong and vicious, and will npt work.
A blanket
profit policy, whether too low or too high, is dangerous and, there¬
fore. there is one and only answer to this problem: "THE DEALER'S
CONSCIENCE." After years of experience the average small dealer
operating in a small territory knows there is one, and only one,
reason for his success, and that is THE SUCCESS OF HIS CLIENTS.
(Continued
on page
2017)
s-l, 2, 3, 4 in Common Stocks
135 South La Salle Street
Prospectus may be obtained from
local investment dealer or
your
CHICAGO, ILLINOIS
The Keystone Corp. of Boston
50 CONGRESS
STREET,
BOSTON, MASS.
for
Wood,
COMMONWEALTH INVESTMENT COMPANY
Co. upon request.
A Mutual
that
Series
K-l, 2 in Preferred Stocks
issues, investment trusts, specials
and secondaries is usually given as one of the reasons for
either the
B-l, 2, 3 and 4 in bonds
be obtained
from authorized dealers, or
Situation Reviewed
5% profit.
disclosure
Series
Prospectus
may
Chicago-Northwestern
Investment Fund
Empire Sheet & Tin Plate
Situation Attractive
The first mortgage 6s of 1948 of
Empire
offers
Sheet
&
Tin Plate Co.,
possibilities ac¬
memorandum pre¬
PROSPECTUS
attractive
cording
to
a
by Hill, Thompson & Co.,
120 Broadway, New York
Copies of this interesting
memorandum may be- had upon
ON
REQUEST
General Distributors
pared
Inc.,
City.
request.
<
Incorporated
63 WALL STREET—NEW
guards found in few, if
14..
'
•
§ DISTRIBUTORS
Prospectus on Request
the
testify.
can
is wrong
of 5%
Group Securities, Inc.
V-'*•' /*•
/
achieved
He
(even though this excess see a steady liquidation of cor¬
occurs only
once in 10 or 20 sales) then why do agencies of the porations, the shares of which are
Government allow new issues, investment trusts, specials and sec¬ closely
held
or
controlled
by
ondaries to exceed 5% (some range as high as 25%)?
i
■
We believe families.
it is because the work requires a profit in excess of 5% and we
a
'
in the investment company field,
stated, "many executives and
Shares"
able, and'NOT UNFAIRLY. DISCRIMINATORY.
Was ;this over¬ directors of close corporations are
"As underwriters and national
looked?
Or perhaps the Board of Governors now has the right to not corporate minted, and their
wholesale distributors of open end
failure to get away from the in¬
interpret the definition of an interpretation.
%
/
investment companies with assets
NASD's report regarding the analysis of 82% of members is not dividual or partnership way of do¬
totalling more than $35,000,000, we
dependable because branch offices of large houses operating with ing business has resulted in many have
naturally been glad to note,
several retail salesmen, and dealing in over-the-counter securities, instances in additional taxes and
during the year now drawing to a
are not subject to questionnaires.
Also, reports from small dealers suits against them by minority
close, an increased public demand
do not give a true picture, because I believe hundreds of small stockholders. '
for investment company shares.
dealers like ourselves are forbidden by the questionnaire to report
Mr. Evans, who also lectures on
"Evidently this more general
that from week to week and, after careful study, we may advise taxation at Columbia and
Rutgers interest stems largely from inves¬
that a client hold all-or certain securities, and that we charge a
Universities, also pointed out that tor realization of the value of con¬
fair profit for this service only when a transaction takes place.
the close corporations, because of tinuous and
professional invest¬
Relative to NASD's veiled threat regarding doing business on their size and
relationship that ex¬ ment supervision
to
meet
the
a principal basis on listed securities.
(We do not make a charge on ists among the management, in
many
unusual problems of the
stocks listed on the NYSE.)
Isn't the small dealer without in¬ many'cases as stockholders, direc¬ war and
post-war periods.
Fur¬
ventory and commitments, and with the whole field to select from, tors, and officers, had to be very
thermore, under Federal regula¬
What does NASD think exacting and meticulous in the tion as it exists
going to do his level best to fit the case?
today, such com¬
he would sell if he carried an inventory?
' v conduct and management of their panies offer the investor safeIf this interpretation is enforced, hundreds of small dealers can
corporate affairs.
•;
either close shop, join the ranks of the large houses, or he can give
The fact that as long as taxes
us
his costly financial services, i.e., "Standard," "Moody," "Fitch,"
remain as high as they are today,
private wires, daily sheets, "Wall Street Journal," "Chronicle," Mr. Evans
emphasized, we cannot
"Dealer's Digest," dividend records, all other records, etc., and then
expect many new corporations to
sell and exchange securities without any trouble and as often as he
be started.
For the time being, at
wants to providing he does it under a 5% profit.
%
least, he contends, there are cer¬
If this ruling should drive even one small honest dealer out tain definitive tax and other ad¬
of business, it is wrong, and the NASD should realize that if they vantages in doing business as an
get away with it, it will not stop with the investment business, but individual or as a partnership. In
would eventually engulf us with a new form of government..
fact, he states, we will continue to
If
208 So. La Salle Street (4)
-
CONSTRUCTIVE COMPETITION
5
•
DISTRIBUTORS:
'"j To Close
nors
example,
CHICAGO
10 Post Office Square (9)
-
'^Investment Trasts
request
vote
a
(14)
TRUST
Prospectus
7, Section !, of the Rules of Fair Practice re¬
Many tax difficulties encoun¬
by the membership. on any rule of fair practice or
tered
by close corporations are
on an amendment to an existing
one, but all rules are nullified by
Section 3 of Article 7 giving the Board of Governors the right to chiefly caused by the corporations'
failure to follow proper mechanics
issue and interpret all rules of faic practice.
If this right to inter¬
and
the right procedure,
Peter
pret was not enough power, or if they were fair enough to submit
the issue to the members for a vote, they then were actually daring Guy Evans, C. P. A. and Member
quires
BOSTON
634 S. Spring Street
■
profit should be the yardstick because
all doctors the same fee, and it seems j
would hesitate to have my name used.
Broadway, New York (5)
LOS ANGELES
INVESTORS
E
45
if the emphasis is put entirely in the wrong, place,
active in the security business at the present time
as
I
pay
request
.
.
don't
I
upon
NATIONAL SECURITIES & RESEARCH CORPORATION
Be
In the "Chronicle" of Thursday, Nov, 11, there is an article en¬
titled, "An NASD Blunder," which I am in 100% agreement with,
because who is going to decide when the profits shall be reduced
V
that the
SERIES
on
In
to 2%?
INTERNATIONAL
•
FIRST MUTUAL TRUST FUND
predominant reason, together with the fear
same
SERIES
Fund
of persecution which the Dealers Association seems to inspire.
You
will note that in most publicity emanating from the Board of Gover¬
nors the policing angle is stressed.
In other words we are all "tarred
and feathered" with the
STOCK
LOW-PRICED COMMON
of
not members of Association should
PREFERRED
BOND SERIES
Congress, because the small dealer is in no position to
defend himself against organized opposition,
Furthermore he feels
obliged to belong to the National Association of Securities Dealers
to secure participations.
In our opinion this is discrimination and re¬
straint of trade and it might be wise for you to poll the large under¬
writing houses to obtain expressions from them as to why the dealers
this
SERIES
splendid article appearing in the issue
on your
Yes, the small dealer
INCOME
LOW-PRICED
44
of Nov. 4, 1943.
of the will
BOND
SERIES
North American Securities Company
2500
Russ
Building
San
Francisco 4
;
THE COMMERCIAL & FINANCIAL CHRONICLE
2014
DIVIDEND
DIVIDEND NOTICE
NOTICES
Imperial Oil Limited
NOTICE
AND
SHAREHOLDERS
TO
American Woolen
THE
HOLDERS OF SHARE WARRANTS
NOTICE
25c
been
payable
be
on
after
or
i
Ave.,New York 3,N. Y.
1943.
.
,
; ■
„'
,
■
,
;
.
'
.
■
of $2.00
:
The
of
■
Act
Tax
of
November
books
30,
deduct
tax when
the
account
paying
coupons
close,
to
must
accompany
coupons
presented
for
payment
of ,,Canada.. •
dividend
residents
by
On November
United
the
of
dence
States
the
of
said
with
a
It. E.
DODGE, Treasurer.
require evi¬
for winch
tax,
the
Shareholder.
If
Forms
No.
Bank
Royal
of
Canada,
Under existing Canadian Regulations:
Payment of this dividend to residents
or
countries
occupied
enemy
is
•
pro¬
1943.
II E.
Control rates into such foreign cur¬
are permitted by tire General Regula¬
of
dealer, i.e., a Canadian
Canadian Oh urtered Bunk.
residing
any
to
of business November 23. 1943.
in
States
United
the
may convert the Amount of the current divi¬
dend into United States currency at the offioiul
Canacnan
sending
at
61
Foreign . Exchaiigo Control rate
bytheir own risk and expense, cou¬
dividend cheques properly endorsed, to
Bank of Canada, 08
City, which will ac¬
cept them for collection through an authorired
dealer, or direct to any authorised doo.k-r of the
Canadian Foreign Exchange Control Board.
pons
DODGE, Treasurer.
per share has been
payable December 14, 1943,
declared,
through an authorired
Shareholders
27,
A dividend of 25£
tions of the Canadian Foreign Exchange <C>ontrol
Board,
Such conversion can only be effected
Branca
the
Tennessee
CORPOHATION
MHHti/SU COHKJWIOH,.
or
stockholders of record
the
at
Broadway, Tf
-
close
J. B. McOEE
Treasurer.
The Agency of The Royal
William Street, New York
Die-Board ol Directors has declared
Shareholders
residing in countries other than
the United States to whom payment in not pro¬
hibited
noted
as
tne
current
owu' risk
and
dividend
fay
2,'Vcenls per share mi
sending
at their
expense
coupons,
or
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, Oft William Street, New York City,
u
Exchange
Control- Regulations'
country in which they reside.
IMPORTANT
NOTICE
the
First
Sheets
.
issued
of
the
the
to
this
of
'should
Company,
detached
1
Serial
Number
the
as
Certificate
which the TeJon is detached, will
in exchange therefor.
■■■■",.,
oixler of
By
:;
56
W. J.
Church
Toronto !,
Tilth
the
'
.
1 .'.
1913.
..
able
on
this
Pepper, President.te
No.
the
values.
The
decision
preme Court in the
Gas
as
a
case
of
the
Su¬
Hope Natural
is awaited with interest
partial
However,
answer
since
to
the
this issue,
rate-making
rests
principally with the
local commissions and courts,
they
power
will doubtless
swer so
far
supply the f inal
rates
as
are
sions have partially followed the
of
Washington,
still maintain
though they
of in¬
some measure
the
write-off
Public
sider
extent
may
prove
item, which would
Federal
tax
savings and provide cash for
nec¬
essary
plant
expansion
though stated earnings
would be reduced
tried,
close to
came
we
solving
the unemployment problem.
The
only possible solution is work in
private enterprise. Hence, the first
requisite
is
for
the
Administra¬
and
Congress to announce
clearly that we are not going to
continue a war economy after the
war
is over; that private enter¬
prise must prepare to go forward
with
confidence, assured that the
Government will proceed at
to
remove
obstacle and to
every
reasonable
every
once
induce¬
the
building of new pro¬
ductive equipment that will pro¬
vide employment and eventually
raise the standard of living."
2
With this assurance, Mr. Brown
said that industry,
labor, agricul¬
and
ture
government
could
operatively bring about
that
would
co¬
a program
expansion
and prevent huge unemployment;
Among specific recommendations
encourage
thesis
a
were:
for
such
//'/
\
a
program
'''tev;%///
has
share on the Class A
been
declared,
G.
K.
pay¬
HUNTINGTON,
1943.
Treasurer.
Weekly Firm Changes
The New York Stock Exchange
has
announced
the
following
until
the
demand
great
caused by war shortages has been
filled, and then opened up grad¬
ually
as
a
abnormal
post-war
stimulus to spread the
demand
over
several
years.
"Take government out of the
field of direct loans, and, by mar¬
ginal insurance of loans through
the banking system, make avail¬
able venture capital to small en¬
terprises.
■
-V'.';
.
tax
Transfer of the Exchange mem¬
bership of John J. Robinson to
Joseph V. Shields will be consid¬
profits in new plant and equip¬
ment, to corporations at times
ered by the Exchange on Novem¬
ber 24th.
when
W.
Greenough
and
John Parkinson, Jr., general part¬
ners
in Hutchins
&
Parkinson,
Boston,
Mass.,
became
special
partners in the firm on November
it
is
desirable
to
stimulate
u; j,
employment.
.
"Amend the tax laws to permit
the loss-carryover in businesses to
be
Slaughter, Home Resumes
mem¬
bers of the New York Stock Ex¬
sumed
member
as
the
of November
status
firm.
On
of
an
1st
extended
per
re¬
active
September 1st,
from
three
moderately.
modifications
laws to offer
vestment
ployment."
of
the
tax
incentive for in¬
an
and
for- increased
,
our
policies of the past 20
years.
In the 1920's we followed
leaders who', told us this was a
New
and
Era
machine
that
works
the
economic
automatically
by
the mysterious process of perpet¬
ual motion, always 'up' and never
'down.'.
Then
told
were
New
in
the
1930's
we
the radio about
over
Deal—that
if
a
wanted
we
more.milk from the economic
cow
the way to get it was to feed her
sawdust
instead
chase her
around
and
bran
-
the pasture
Then
to
as
had
we
of The 'planned economy'
was
merely
American
an
of
/possible.
as
era
which
em¬
A.'G A//
"A;
Mr. Brown
anv
Five-Year Plan.
attempt at
Russia's
of
copy
We
now
have
an
said that
"Most
to
of
six
the world
will
badly
machine
need ' goods,
especially
tools, machinery and the products
of our mass production
industry.
The United States is prepared to
make
these
products
and
credit
will be needed to finance the5
pur¬
chases, since it will take time for
foreigners
to
develop
sufficient,
exports to the United States to pay
for their purchases. Some
people
in
Washington have suggested that
continue
we
to
on
'lend-lease'
a
long period of
over a
years
give
these
things away
That, I
basis.
think, would be most foolish.
We
can't
the.
play
whole
Santa
world
ourselves
Claus
without'
down
their poverty
to
to :
bringing
the
level2 of
and what we-need
do is to try to help them' lift
themselves up toward our level of
to
prosperity.
We must
member that unless
always' re¬
willing
we arc
to acceptinvoluntary defaults.,on
foreign, investments, we/can 'only
sel 1
more
are
willing to take
abroad
if;eventually
of merchandise in
Another
more
we
-imports
exchange,";////'
great-
problem,
■
-
Mr.
Brown said, involves organized, la-bor
and
collective
bargaining.
workers
gaining
and
question but that
no
our
needed
equality-of bar¬
They, have it now
power.
should
continue
have
to
it.
But, when the heavy hand of Gov¬
tion
and
bureaucrats, and that
they do want real jobs at produc¬
tive work and fair wages.
ness
and
who
understand
nomic
interest?"
Mr. Brown pointed out that "as
long
the
as
representatives' of
workers can
success¬
10,000.000
fully (apply
and higher
gard for
the
for
with
effect
of
higher
little
agriculture
how
the
eco¬
.
,
"We need a new approach to
the problem of employment in the
post-war world—a new philoso¬
phy
of
hope
methods
and
courage—new
to ;
keep the economic
machine, operating at high levels
of; production and new men in
high places who will bring co¬
operation instead of conflict to the
solution- of
these
vital
to
the people."
■
are
so
problems that
the, welfare of all
'•//-:;
'
■'''
;
Urges Sales Tax To
Combat Inflation
(Continued from page 1992)
and'Australia each imposes either:
a general sales tax in
terms, or a
sales tax
on a
wide range of
spedTreasury has
concluded that, of our total
taxes,.
18.8% are sales taxes, excises, and
fled
goods. V
Our
In great
Britain, the cor¬
figure is 29.6% ; in
3.1.6%;
in
Australia,
responding
Canada,
-
Even if the United States
imposed a 10% sales tasT, the per-:
centage figure of sales taxes, ex¬
cises and customs to total reve¬
nues
pressure
wages
and
works, who will
cooperate for the good of all the
people to encourage a period of
dynamic expansion.
/", /-l '"'"/.
36.6%.
public
labor
machine
What
about the
:
-
"They want," Mr, Brown said,
"leaders in government end busi¬
customs.
would
merely
approximate
that of Great Britain."
.
re¬
the .terms
they make upon prices, this can
mean that they are getting a
bigger piece of the available cake
only
Referring to the pressing need'
for increased saving, as a check
inflationary, tendencies,. Mr. •
Magill said, "We would increase
on
important, when
of workers
the attractiveness of savings
by
providing a limited income tax
credit, not merely for purchases
of government bonds, but for pay¬
gets out- of proportion with other
ment of life insurance premiums
and the
unorganized workers and
public must take
But
one.
wages
more
of
one
smaller
a
group
groups, the exchange of products
between the groups declines and
this
kills
off
the opportunity for
new
ventures, expansion and more
jobs for the oncoming generation
of young workers.
/:
A "• ■< ■ ■ :
or old
policies.
Life in-premiums are surely sav-'
ings,. and indeed are largely in¬
on
new
surance
vested in government bonds."
York Corp. Attractive
;
"Government," he said,, "can en¬
/ / Cbmmori, st ock of the York Cor¬
courage
enterprise arid provide
poration oilers an. interesting situ¬
increased employment
by/lifting
its
hand
maining
from
the
scales
and
after' the
interests
of
the'public
throw its weight
than
The
the
contending
par¬
should
Government
in favor of, rais¬
ing the total of national "income
instead of encouraging the strug¬
dum
according
to
a
memoran¬
issued: by
Peltason, Tenenbauiri, Inc., Landreth Building, St;
Loitis,; Mo.. Copies of this memo-:
randum may; be had upon request
from Peltason, Tenenbaum, Inc.
-
Christiana Securities
ment
gle
encourage enterprises to write off
the cost of new assets during the
over
national income."
first few years, thus reducing the
chance of having to pay taxes on
a 'dead horse' and
providing this
economic policies which can allow
bers of the
wages to rise too
change, have prepared an inter¬
esting circular on Christiana Se¬
incentive
for
the
re¬
savings."
between
ation.
re¬
friendly arbiter to look
a
reducing the risk of loss by
"Through a more flexible treat¬
of depreciation allowances,
among them the fact that they
don't like/ -rationing, -regimenta¬
put on only one side
justice in all labor
matters, another question is raised.
is
ernment
of the scales of
ties.
additional
service.
business ventures—one
new
tion
investment of corporate
war
work in a
that prevents the creation of
way
rather
during the period that all active
general partners were engaged in
even
share
actu a lly
thus facilitating accumula¬
of capital by new businesses
1943 the firm had become inactive
—
These
comes."
years,
and
change,
government to regulate and
control, and to laws which were
designed to limit profits -and in¬
the
reductions, based
upon reinvestment of part of the
Slaughter, Home & Co.,
of
from munitions to peacetime
over
"Offer
weekly firm changes:
Malcolm
this is due to the attempt
measure
"There is
decentralization
of
Federal Government and the
all businesses.
partial
inevitable,
might well con¬
amortizing
a
substantial
substantial
even
methods
a
Service
amount of the
permit
that
never
tinued
267
4th,
dependence.
To
different
an¬
concerned.
Unfortunately, the local commis¬
lead
the
and some, such as limitations on
partial payment credit, to be con¬
1943,
to stockholders
of
of business on November
15,
close
cap¬
ital, to find backers Willing to risk
savings in new ventures. In large
when
to peace.
goods and discontinued when sup¬
ply and demand are in balance,
New York Stock Exchange
(Continued from page 1995)
war
"Progressive demobilization of
war-time controls; some, like raw
materials control to be changed
November 9, 1943.
company
December
record at
19, 1943.
November 9,
.
the
com¬
Telegraph Co.
stock of
\
on
the
November
on
A dividend of 50 cents a
Ontario.
November,
of
DIVIDEND
:
ten
The Western Union
returned
Secretary.
from
"Vigorous
November 9,1943
from
Beard,
WHITLING,
P'reet,
be
payable
of
share
per
stock
B. F.
"At the "earliest date possible after the receipt
this Talon, new Coupon Sheets bearing, the
same
dividend
(10c)
record
attached
Warrant;
This
from
the. Share
Warrant Certificate,
and forwarded by regis¬
tered mail to the Office of the Secretary, 56
Church Street, Toronto 1, Ontario.
.of
EXPLOSIVES,Inc.
30, 1943, to stockholders of
sur¬
upon
KNOB LOCH Treasurer.
workers
war
over
"No amount of public works can
provide all the needed jobs. In the
ten years of the
1930V with all
in
a
ability
American: does
average
/conclusions,
and
reorganizing of local governments
to
handle problems
Washington
has unsuccessfully tried to solve;
pany,
Bearer
TALON
Share
the
be
vicemen
declared
the
cents
of
dividend of
nu
.1
with
men
ideas, but lacking
a
opportun¬ economy of Total / War which is
ities for expansion will be affected, just an American version of going
there are many ways it can be
in a large measure by the inter¬ Totalitarian Germany one better."
done successfully.
/ In spite - of this
■
•
%' national economic
confusion, \ the
policies pur¬
"Our first objective is to
pro¬
sued by the United States .after speaker, said, Americans have ar¬
vide jobs for the millions of ser¬
rived
at
certain
the war. He further stated:
'
the
common
holders
people are
really determined to provide jobs
for all. through
backing vigorous
expansion of private: enterprise,
The Board of Directors of
NOTICE
NUMBERED
bottom
the
Talon
of
American
Triumph Explosives, Inc., has
hereby given that on and after
of December, 1943, new Coupon
be
Warrants
render
to
is
day
will
Share
of
F
TRIUMPH
II. 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 acUon is not prohibited by the For¬
eign
a
additional dividend of
theCompauy'a capital stock,
per share and
'HViUleDeeemitfir t.j. 1P43. to stockholders of
roeord ar :tw close of business December 1, 1943.
above may convert the amount
of
TEXAS GULF SULPHUR COMPANY
>0 cents
1
the
offer
NAyw.bcr 9,1943s:
:
and good
the
as
economic
the
ment to
New York 6, N. Y.
harder for
come
limit
may
the
the inconsistencies in
see
much
tion
may conthis dividend at current Canadian Foreign
as
on
•"
■
(c) Other non-residents of Canada
rencies
85
dividend of Twenty-
record at the close of business, November
'
Exchange
a
Capital .stock of Magma Copper Company,
payable December 15, 1943, to stockholders of
of
'..
;
;
17, 1943,
five Cents (25c) per share was declared
hibited.
(b) Payment thereof to
residents of other
portions of Continental Europe or of the French
Empire and China is prohibited but such resi¬
dents may
direct the deposit to their credit
in a
Canadiau Bank of all amounts payable
them.
Dividend No.
On November
Toronto.
(a)
enemy
Magma Copper Company
are-not
601
available at local United States banks, they can
bj secured from the Company's office or the
/ •; ■'
"In the last 15 years
said:
not
drastic
they shift
the tax and return one Certificate
payment of
to
Corporation, pay¬
stockholders of rec¬
able December 15, 1943-to
ord at the close of business November 27,1943,
be
cashing
Vert
a dividend of 37%
declared on the capital
1943,
was
stock-of Newmont Alining
Ownership Certificates (Fonn No. 601)
completed in duplicate and the Bank
the coupons will < endorse both copies
Certificate relative to the deduction and
purpose
must
to
authorities
tax
deduction
16,
share
per
Brown
A'-"'
it has. be¬
of the greatest sources of employ¬
ment. The required action, here is
"If
Dividend No. Ol
cents
resident in the United States
are advised that a credit for the Canadian tax
withheld
at source
is
allowable
against the
tax- shown on their United States Federal In¬
come Tax return. In: order to claim such-credit
Shareholders
Mr.
of
country
whole, Mr. Brown said:
"The
enterprises,
which
but
prosperity
mits the disease and use other
methods to prevent its
spread,"
Mr. Brown continued:
;
i;
Corporation
'■>
new
turers
small
.
oi
in
imposition of tariffs designed to
protect given groups of manufac¬
Panama, you must re¬
the cause, drain the
swamps,
eradicate the mosquito that trans¬
Newmont Mining
all
Certificates
'Ownersnip
we
learned in
November 17. 1943,
shareholders.
imu-resid mt
of
quinine
have ma¬
malaria,
;.. F. S. CONNETT,
/
; Treasurer*:
oi
payable by Canadian debtors to Iioiit
residents of Canada.
The lax will be deducted
from all dividend cheques mailed to nou-resident .shareholders' .and the Company's Bankers
will
en¬
as
necessary after you
laria. But to prevent
dividends
for
unemployed, just
is
1943.
not
will
free
way
move
provides that a tax of la"o shall be
and deducted at/the source on ah
Canada
imposed
record
total mis¬
a
are
lions
vvas-
Transfer
'Dominion
the
share oil account of
a
public
on
of
necessary after you have
stalled the machine and have mil¬
''.Checks-will'be mailed.
<:
of
Income
$50,000,000,000
works is evidence
relief
declared,
payable
December 10,1045 to stockholders
arrears
Transfer
day
post-war
terprise works. Public works and
of the American
Woolen Company held today, a
dividend on tlie Preferred Stock
books will be closed from tlie
November to the Uul day of De¬
cember, 1943, inclusive a net no Bearer Share
Warrants will be "split"
during that perwd.
The
17tn
meeting of the Board ot
a
T\ Directors
The
payment to Shareholders of record at
the, close of business on the 16th day of Novcmber,A*te3, ana whose shares are represented by
Registered Certificates of the 1929 issue, will be
inuue
by cheque, mailed from the offices ol
the
company on tne 30th day of November,
•
our
understanding of the
AT
Church Streets Branch,
Toronto 1, Canada, , ■ "
and
;
start
other
225 Fourth
THE ROYAL BANK OF CANADA,
King
(Continued from page 1990)
'plan¬
ning' with the assumption that the
first thing to do is to
spend an¬
t.VCORPORA TKD
the 1st day oi
December, 1943, in respect to the?, shares speci¬
fied
in
any
Bearer Share
Warrants of the
Company of the 1929 Issufe upon presentation
and delivery of coupons No. 6i) at:
will
Expand Private Enterprise To Prevent
Unemployment, Lewis El. Brown Proposes
"To
COMPANY
per
has
rency,
*
given that a semi-annual
share in Canadian cur¬
declared, and that the same
hereby
is
of
diviuena
Thursday, November 18, 1943
the
conflicting groups
of a declining
division
Pointing
to
' r-
inconsistencies
in
high for full em¬
ployment, taxes to fall too largely
on
the
sources
of venture
capital
on
incomes
recommenda¬ and
derived
from
tions made to increase investments •daring
and innovation, and -the
Discussing
the,
Situation Attractive
Laird, Bissell & Meeds,
120
Broadway, New York City, mem¬
New York Stock Ex¬
curities Company.
Copies of this
circular may be had from the firm
upon
request;
.
Volume 158
Number 4230
.
V--'
THE COMMERCIAL & FINANCIAL CHRONICLE
/,
.
2015
The
Royal Bank of Scotland
■;!
Insurance & Bank Stocks
-■■■■■
Incorporated by Hoyal Charter. 1727
HEAD
Bought
ANALYZED
OFFICE—Edinburgh
Branches
The Hews
.i''
throughout Scotland
OFFICES:
moval
;
Market
3 Bishopsgate, E. C. 2
y,
8 West Smithfield, E. C. J
.
49
excitement
due
en¬
tirely to alcohols. No signs of
mg m
groups evi-
.
Charing Cross, S. W. /
s
Burlington Gardens, W. I
64 New Bond Street, W.
,
■
critical.'
/
;v, ;■.
1') I
By WALTER WHYTE
TOTAL
Stalin
what
Deacon's
liquor stocks, par¬
ticularly American Distilling,
zoomed
board
last
all
the
over
\
Bank, Ltd.;
market
week's
would have been
Glyn Mills & Co.
Australia and New Zealand
was
able to do
was
about
recover
week.
NEW SOUTH WALES
terest
(ESTABLISHED
Paid-Up
a
point
1817)
Fund
.....—-
6,150,000
Reserve
Liability of Prop.
8,780,000
£23,710,000
£150,939,35*
*
in all
States
of
efficient
banking
ture
countries.
In
A:Aa
E.
Street,
C.
Berkeley Square, \V. 1
l
Agency arrangements with Hank*
throughout the U. S.
A.
in
;.
stocks
have
Office
FULLY
PAID CAPITAL
FUND ;
RESERVE
.
LONDON
and
8
7
£3,000,000
4
£3,000,000
.
.
Cairo
1
AGENCY
King William Street, E.
,
&
,
WIRES
Chicago I
Nan Francisco
Li A. g:«)
L. A. 280
-
Seattle
for
Bank and Insurance Slocks
This Week
for industry.
represents
natural,
Just
like
is
system
he
us,
the
no
thinks
best
in
the
world.
But the
point which
our people
thoroughly in
understand
reading
the
international
news,
quite general, there being relatively little differentiation between
stocks and peace stocks, so-called.
New York City bank stocks,
however, held their place for several days before they succumbed to
the pressure.
The accompanying table shows the day by day changes
war
in
the Dow Jones Industrial Average
of New York City^-
bank
V' '
Date
as
they
We must not
ceive ourselves.
do
to
foolishly de¬
y) A/'')'1';-)
.
———
—
———*
stocks.
American
the words being used do not mean
us
compared with the American
Banker Index
the
to
Bank Stocks
The sharp decline in stock market prices from Oct. 27 to Nov. 8
was
speeches and declarations is that
same
—
By E. A. VAN DEL SEN
•'
'
.
V
Dow Jones
Banker
;
Industrials
Oct..
139.35
27
Oct.
,37.3
138.97
A
37.2
138.29
Oct. 29—
Christiana
Index
'
37.0
To us, freedom means the free¬
dom of the individual, not col¬
Nov.
lectivism.
Nov.
136.30
5AL--A-;
135.47
37.3
.'6-_—A-AA
135.24
37.3
131.68
Securities
37.2
Nov.
36.4
To
us,
means
138.27
Nov.;
3
Nov.
Nov.
37.1
Company
37.3
137.35
—
8
■
37.1
138.50
Oct.
Circular
on
Request
as¬
manufac¬
the
spirits
market at
open
Thus
the same words
have op¬
posite meanings in Russia and the
United
No
States.
one
will
as
a-
well
Nov.
or
question
can
this
simple truth, but some of our
people apparently want to pre¬
markets
disturbing
so, because
he has stated his position without
habit of
as
Total
Nov.
pretense, and with factual truths
decline,._
T.»
f 7.6
|5.5';
■
12.4'.;
131.85
9—
10
Members
120
36.7
132.68
-
Laird, Bissell & Meeds
New
York
Stock
36.7
Exchange
BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-8500
Bank
stocks, it will-be noted,
slightly to Nov. 1,
rallied to their Oct 27 level, and
down
moved
then broke
on
Nov. 8.
however,
decline,
Their total
less than
was
half that of the Dow Jones Indus¬
trial Average, being
compared with 5.5%.
only
2.4%
Teletype—NY
1-124H-49
ing fail to expand?
after
the
Immediately
there will first, of
period during which
shortages
must
be
war
course, be a
war-made
made up,
Technically, these bank stocks
in
Bell
1: A. Glbbs, Manager Trading Departments
ing
;new
as distinct from creat¬
products and new enter¬
very strong market posi¬ prises; afterwards will come the
tion, having moved up only 55.2% era of aviation, light metals, plas¬
from their
1932 lows compared
tics, electronics, television, chemwith 236.0% for industrial stocks,
urgy, and so forth.
There is no
as
measured by the Dow Jones end in
sight to the conceiving of
cluding : the collectivist-socialist Industrial Average, Thus they are new ideas, many of which, as the
well be repeated.
system, although our leaders have substantially behind the general years roll on, are bound to ma¬
'v
J
#■"
;c
not stressed the point as much as
market, despite a steady improve¬ terialize as new industries and
ment in earnings over the past new material wealth.
Where American Distilling Stalin emphasized his.
;%
/
A comparison of the wages and several years and
an
unprece¬
is concerned,
The Industrial Securities Com¬
story is a little hours of our
workers with those dented growth of earning assets
mittee of the Investment Bankers
different.
For not only does of
Russia, especially as truly ex¬ to the highest level in the history Association of America filed a
re¬
this '.stock
possess
all .the pressed in, terms of living such of American banking. It seems to
romance', now V generally at¬ as automobiles, telephones, home this writer that ."peace scares" port, within the ppst few days, on
the post-war financial needs of
tributed to whikey companies) electricities,
bathrooms,
roads, should little affect the position of the country.
It is of interest to
would show the point
bank
stocks,
relatively
clearly, al¬ choice
but"' having a
comparatively though such statistics are not speaking. Unlike general indus¬ present briefly its findings and
small. capitaliation is one of available from the Russian side trial corporations, banks will not conclusions, which are summar¬
ized under five divisions as fol¬
due to their collectivist censor¬ be plagued in the early post-war
the spirited (no
pun intended)
lows:
ship system.
period with problems of cancelled
movers of the
/
group. The fact
(1) New construction for the
A comparison of the lot of
contracts, reconversion, invento¬ manufacture
our
that a short position existed
of
products
per¬
independent farmer with the Rus¬ ries,
Government-owned plant, fected
during the war and for.
didn't hurt either.
Looked sian collectivist peasant in terms etc.
Conversion
to
peace-time
plant additions to handle post¬
like,! Auburn (remember that of living conditions and ownership business involves no such dislo¬
poned
consumer
demands
for
one?) for a while with its 10- also would shatter Stalin's patri¬ cations tp orderly banking oper¬ standard products.
Cairo
Register. No.
;
PRIVATE
New York
therefore, is made
.
of EGYPT
Commercial
is
Stalin.
CO.
CALIFORNIA
210 West 7th St., Los Angeles
His people in those coun¬
change.
must
(P. C. T.)
m.
Orders solicited.
and de¬
advocate
**'%
-:.;A,
running in cycles.' And the | as he sees them.
grief caused by the break in
Our people also think our
sys¬
the liquor stocks shortly after tem has proved itself
by this war
to be superior to
any other, in¬
prohibition was killed may
NATIONAL BANK
Head
will
prices. If your mem¬
ory goes back to those days tend, temporarily at least, that it
then you recall the aftermath. is not so. .! They say they fear
Nobody knows if the same offending Russia, or of injuring
the war- effort, but Stalin obvi¬
thing will happen again, but ously does not think
A,
OFFICES:
LONDON
47
remotely
the
fantastic
the**
v.".
Threadneedle
29
even
distillation of
or
sold
investor!,
to
interested
OF
tries will advocate collectivism for
his
to 5 p.
m.
BUTLER-HUFF
to
clearer than in the Moscow decla¬
This
COMPARED
-
,.
was
Australia, in
service
travellers
and
as
democracy
capitalism, the two-party
system, not one-party control, not
company socialism.
. J
A' -
any
sociated-. with
Zealand, Fiji, Papua and New Guinea,
and'London, it offers the most complett
traders
when
which
With over
New
and
thing is reminiscent
hectic liquor market of
1933,
IS the oldest
and largest bank in Australasia.
,
of the
Manager
Glorge Street, SYDNEY
The Bank of New South Wales
B70 branches
the
are
Whole
DAVIDSON, K.B.E.,
General
Head- Office:
now
30th
Aggregate
Assets
Sept., 1941
SIR ALFRED
the main in¬
liquor
stocks.
Apparently the in¬
spired stories of the shortage
of whiskey has' made every¬
body's throats dry.
Capital—£8,780,000
Reserve
Of course,
kind of freedom
rations.
Quoted
TELETYPE
mocracy
he
other nations,
from the extreme lows of last
BANK OF
vagueness
in, saying di¬
rectly the socialist state has been
shown by this war to be the "form
of organization" for both
peace
less affair. For since last week
all the market
no
a.
Inquiries invited.
believes
dull, life¬ farms, socialism
a
Trading daily 7
beyond
and war.
the
hadn't
Associated Banks!
left
he
What
If
/;
factories
vast
the reach of Nazi invaders.
ASSETS
£108,171,956
Williams
of
—-
Special Bulletin and Booklet Service to Dealers & Brokers
(Continued from first page).,
.
LONDON
Sold
REVIEWED
-
C.
are
a
.
Branches
ini till
principal
Towns
,■
EGYPT
-
and
l'
the
<
in
SUDAN
the
-
'
'1\';V':.
>.
.
NATIONAL BANK
.
of INDIA. LIMITED
Bankers
to
Head
Branches
the:
Government
Colony
Kenya
and
■
Uganda
in
;•
Office:
26, Bishopsgate, r * :
London, E. C; V
■J.C-'.l- A
ancl
in
India, Burma, Ceylon, - Kenya
Colony and Aden and'Zanzibar
Subscribed Capital--—£4,000,000
'•
Reserve
The
Fund-
' '
v.—-£2,200,000
conducts
every description
banking and exchange .business
Bank
'
Trusteeships
and
sjs'..•:
•;
Besides
boom
s;s.-
all
$
:
this
;
.Pr.i
ta-ra-ra
>
Boston. Securities Traders
announces ; that
the
following members are'now also
in the armed forces:''"
■"
/
John J. D'Arcy (en route)
Pvt. Birney S. Halliwill (Camp
Van- Dorn,
Pvt.
Miss.)
Walter
).
O.
Gruber, Okla.)
■
i.".
■*
-M inter
'l:
-V
lacking.
Thursday some good
buying did come in, but at no
V;
stock
of
possibilities,
memorandum
Norfolk,
according
being
stories of last week and
the week before have
appar¬
ently died down, though
-(Continued
on
you
page '2017)
Selected American Shares
Southern Railway offers interest¬
ing
peace
Outstanding Facts About
Possibilities Attractive
common
to
a
distributed
by J. F. Reilly & Co., Ill Broad¬
way, New York City.
Copies of
"this memorandum,-discussing the
situation in detail, may be had
from the firm upon request.
■
■
'
is j
reconvening hearings on pro¬
ceedings were ordered reopened
Rollins & Sons,
Incorporated of
New York City, and Walter Cecil
time did it show
any inclina¬
tion to follow
prices up. The Bawls,
(Camp
Norfolk. Southern Ry.
The
'strictly 'prohibited.j.
part
; A/
Hearings at the Chicago region¬
of the market—the kind that
al offices have been
ordered for
indicates a
coming break-out December 7th by the Securities
on ; the;.
and Exchange Commission
up-side—is •
which
In The Armed Forces)
Association
system.
de-ay-ing of the liquors
SEC Reopens Rollins Case
buying in the rest
Last
The
own
(Distributed by King Features
Syndicate,
Inc., reproduction
in
whole
or
in
the kind of
cf
Executorships
also undertaken
•••
.
Capital-—,--~k2,000,000
Paid-Up
otic argument for his
20-point daily swings.
Selected Investments
Company,
135 South La Salle
Street, Chicago,
III., has issued an attractive and
informative
American
booklet
Shares
on
Selected
discussing
the
advantages of these shares as a
hedge against inflation and a par¬
ticipant in post-war prosperity.
Copies of this interesting booklet
of
its
St.
Louis
alleging violations of the
securities exchange act. The
pro¬
ceedings
were
ordered
opened
after the SEC
was advised by at¬
torneys lor the Board, of Missions
of the Methodist
Episcopal Church,
South, that they had additional
evidence
to
submit
which
might
-Vr5:;
.
(2)
Primarily
bank
stocks
are
peace-time stocks, even though
bank earnings are increasing sub¬
stantially during the war, as they
did during World War I. To the
investor in
realistic
bank
stocks
such expansion
of earnings should
merely indicate to him that cur¬
rent dividends are secure and that
and
reserves
capital
funds
are
being built up for peace-time ac¬
tivities; not that some of these
higher earnings should be dis¬
tributed to him
If
bank
the
as
extra dividends.
statement
stocks
is
true
that
primarily peace¬
stocks, then the post-war
prospects for banks and bank
earnings should be good.
This
are
time
column
and
believes
that
after
commercial
this
the
banks
to
be
leading
war
will
true
enter
Purchase of plant facilities
by the Government.
(3) Retooling and replacement
of worn-out machinery.
(4) Building up inventories.
(5) Building up working capi¬
tal positions.
'
built
The
Committee
also
cited
the
following estimates made by the
United
States
merce
for
Chamber
immediate
of
Com¬
post-war
domestic needs:
housing, $7,175,autos,
$3,300,000,000;
household appliances, $1,216,000,000; furniture and floor coverings,
$711,000,000; improvements, addi¬
tions and repairs to homes and
farms, $7,500,000,000.
000,000;
Some of these needs will be met
through the issue of new securi¬
ties in the capital market, but a
substantial
portion will, as in
a
other periods of expansion, have
For one to be met through the extension
It is understood- that the ques¬ thing, and contrary to the doctrine
of bank credit.
Thus, the com¬
tion of whether the firm and Mr. of "New Dealism," ours is not a mercial banks of the country are
mature economy; the last frontier
likely to have a busy time dis¬
Rawls, or either, should be ex¬
has not been passed, the spirit
counting notes and lending money.
pelled or suspended from the "Na¬ of
private initiative and enter¬
Banking is the hand-maid of in¬
tional Association
of
Securities prise has not been quenched, and
dustry, and becomes active and
Dealers, Inc. will be threshed out the American economy has many
prosperous
as
industry becomes
of
progress,
expansion active and
also. The final decision, however, decades
prosperous. The post¬
and adventure ahead of it.
With war era is full of promise for
will be issued by the Commission
bear
"be had upon request from
Selected Investments Company.
in
may
manager
office
ations.
on
the case.
Philadelphia.
'f
/
.
very
such
prosperous
an
era.
outlook, how
can
bank-
American enter prise.
2016
THE COMMERCIAL & FINANCIAL CHRONICLE
refunding
Municipal News
The City of
"which
Chattanooga, Tenn.,
is
asking for bids until
Nov. 23 on an offering of $6,040,000
series
electric
A
power
re¬
with
which
Generally
vidual
State
debts
indi¬
due
to
are
increased revenues
reduced expenditures as well
greatly
1
as
of
to
The
revenue
maturities
certain
for
new
less
"debt
equalization bonds," which
is designed to equalize the city's
annual
eliminate
burden
service
debt
fluctuations
future
of
of
ansas,
and
the
program,
Roy D. Hazlett, certified public
accountant of Chattanooga, who
conducted the audit, stated that
"our investigation disclosed that
all
the
of
requirements
under
executed
indenture
bond
the
provisions attending the issue of
'debt
the
equalization
bonds'
have been met" and that the
sets which
the
sinking
as¬
pledged to meet
are
fund
interest
and
payment commitments "should,
when the program is completed,
sufficient
be
to
all
meet
bond
maturities, including interest."
Commenting further on the au¬
dit, the Mayor said that the $50,510.20
surplus
built
account
up
during the 1942-43 fiscal year rep¬
resents the difference between ap¬
and
propriations
ments.
disburse¬
net
•
,.
"There
funds in that
are no
sur¬
account except those saved
appropriations," Mayor Bass
asserted. "It is a genuine surplus.
plus
from
If
included
had
we
funds
the
Carolina
balance
sinking
our
would
we
have
a
terially.
and
Florida
Iowa,
Utah
and
Nebraska,
report
net
better than
$400,000
sinking
be
cannot
because
priated
and
fund
treated
the funds
for
be
were
the
appro¬
purpose
for
spent
thing except for that
to pay
surplus
a
as
specific
a
cannot
balances
obligations arising from
bonded
debt.
"The City of Chattanooga is re-r
quired by law to appropriate $1,000,000 a year for debt service
charges—that is, interest and bond
maturities.
Some $600,000 of that
appropriation
was
used to pay in¬
terest and the remainder
to
retire
bonds.
appropriation
The
was
used
$1,000,000
is
required under
our debt retirement plan.
If the
plan I have set up is followed,
Chattanooga's debt will be retired
at
maturity—every cent of it."
Mr.
Bass
explained the city
charter requires an audit of the
city's fiscal affairs every two
by "outside experts."
I have been Mayor I
have been having the audit made
each year by outside auditors in
years
"Since
order
that
I
keep fully in¬
as to the city's
financial condition."
/ '■[,
may
formed at all times
States Report Large
Decrease In Gross Debts
On
gross
ma¬
small
1943
are
smaller than
1932.
in
the Metal Series and Public Util¬
ities Industry Series of New York
Chicago to Redeem
'
$7,160,000 Bonds on Jan. 1
recent
series
New
on
City of Chicago will meet
York Stocks
y , Current port¬
maturity on Jan. 1 of $7,160,folio folders on both New York
bonds with¬
Stocks and Manhattan Bond Fund,
out a public refunding operation,
The latter Fund, as of Nov.
1,1943,
officials of- the Comptroller's of¬
had net assets of $14,815,374.
fice said recently.1 At the same
the
.
'
the city
oh the
first of the year approximately
$300,000 of its outstanding 3% re¬
funding bonds, which originally
became callable on Jan. 1, 1942.
time,
it
was
that
said
While
no
public
refunding
will be involved in meeting the
1
Jan.
follow
the
in
years
policy
of
preceding
borrowing
from
its
various funds to provide a por¬
tion
of
the
cash
necessary
to
retire the maturing obligations.
The
amount
will
be
last
of
this
borrowing
somewhat smaller than
year,
city
fiscal
officials
said.
the city faced actual
maturities of $7,145,000 on Jan. 1,
1943.
It
these
obligations
redeemed
$6,595,000 of
from
current
cash and sold a $550,000 issue of
five-year \xk% bonds to the city
sinking fund to provide the bal¬
ance
the
of
10
of cash necessary
demptions.
city placed
Two
'
for the
re¬
the
a $1,200,000 issue of
2%
refunding bonds
with the
sinking fund to provide a portion
of the cash necessary for meeting
maturing obligations.
The
$7,160,000 of maturing
ago
years
$5,210,000
on
of
Jan. 1,
various
4%
j* J.
«
funds
in
this
way—the
the
actual
amount of gross debts would be
much
are
in
less,
as
excess
surpluses
alone
of $1,000,000,000.
be
from
used
Index
this
financing
retire
to
the
Funds.
Keystone
These
little
Custodian
tive
additions
sales
to
Another
sum¬
Keystone
Keystone
new
folder
to
trustees, trust offi¬
cers,
bankers, institutions
and
corporations, discusses important
features
of Keystone Bond Fund
1, which has been recently re¬
vamped to hold 50% Government
B
Bonds. A security selector card and
a revised edition of the
Keystone
"A
Modern
Method
1938,
and
$700,000
of
1%%
Investing," have also come
hand recently, together with
to
copies
of the current
folder and the
now
chure entitled "10
The
data
familiar bro¬
Securities."
Investment
Research
Def
hensive surveys on steel stocks
and discount railroad bonds. Re¬
sales
literature
Distributors
folders
road
on
issued
Group includes
new
Steel Shares and Rail¬
Equipment
Shares.
These
two classes are both described
"Undervalued Groups."
appreciation
current
dated Jan.
classes
1, 1937.
Of this issue
presently are outstanding
Also available from
Distributors
Group
are
showing
Shares
fund to somewhere between
000,000 and $66,000,000.
$65,-
Without
Railroad
on
General Bond Shares
showing market appreciation pos¬
sibilities in the portfolio securities
and current return
a
current issue of
Stock
Market
Investments
Value
on
the
Funds;
Steel News.
y.v
Portfolio
Review
of
the
"Fitting the Fund
Accompanying
Fund
to
Purpose."
publication
folio
is
a
News
giving effect to the small issue of1 changes
in
the
this
two-page
showin/g
Fund
the
Port¬
recent
and'
com¬
motorized
military
;
V
;
Amount
and
aircraft
marine
$56,019,000
35.5
47.957.000
engines;
41,870,000
33.5
1936
36,830,000
1930-__^_—
-
•.
Calvin
'
-
28.1
24,640,000
-.y #/■.; sit ■. ^ /
ment
"
Bullock's Bulletin
gives,
number of good illustrations of
the value of diversification taken
from the market action of various
trial
in
the
Average
Dow-Jones
.;;'■
Selected
issue
of
y # 1
*
,
y.
«..y.•
engaged
•••
'■
Selections
Co.'s last
points
to
changes
in
the
form
of
the
monthly portfolio statement. This
statement is
now
number
ship
in
of
set
to show
up
dollars
of
owner¬
each
portfolio
thatywould result from
security
-
many
tractors.vThe
com-,
in
now
supplementing
the,
company's products with a view
to meeting the demands of
post¬
,
markets.
war
'
Investments
.servicing
types of automobiles,
and
,
pany's research department is
30, 1943.
>
original equip¬
replacement use.
for
and
trucks
Indus¬
portfolio changes in Divi¬
dend Shares for the nine months
ended Sept.
for
in
use
for
tributors
shows
;.y
and
makes
The Bulletin, also
y
aircraft
parts
industrial
,
Automotive parts are supplied to
more than 3,000 jobbers and dis¬
a
stocks
sold for
are
22.7
•.
and
at
ana
34.7
1940
for
engines,
present, certain ordnance
items. Most products are of mov¬
ing parts subject to wear which
Investments.
1941
equipment;
parts and accessories
•
q of General
y
"The
employs
company
20,000
persons; at its various plants and
has one of the youngest
manage¬
ments
tion
for
of
an
industrial
its size
corpora¬
in
the country, a
majority of "the officers being in
their forties or early fifties. F. C.
Crawford, president, is also presi¬
a $10,000
investment in Selected American dent of the National Association
of Manufacturers.
Shares, Inc.
'
Dividends
Affiliated Fund, Inc.—An extra
dividend, of 5 cents
able Dec.
ord
Dec.
Bond
per share pay¬
20^ 1943 to stock of rec¬
Investment
Trust
of
America—A semi-annual distribu¬
tion
of
$2.00 plus
an
extra of 40
cents
payable Dec. 1,
1943
holders of record Nov. 13.
New
dends
Pittsburgh Rys. Look Good
The
current
situation' in
I
Pitts-
burgh Railways System, particularly certain of the underlying
bonds, offers attractive possibili¬
ties for appreciation,
according to
a study
prepared by T. J, Feible- 1
man
& Co., 41 Broad
St., New
York City, t Copies of this inter- j
esting study, which is available to
dealers only,, may be had upon i
■
10.
York
to
DiviStocks, Inc
Nov. 25, 1943 to;
payable
holders of record
Nov.
5
as
fol-
from
request
T. J. Feibleman &
Co.
lows:
>
■■•'v"
Dividend
Industrial Series-
Agricultural
Alcohol and
per Share
A
-
distilling—..-,^-
-
Automobile
Bank
J
stock:
_
6upply.Tl.,^-„_»A-
Building
Business equipment
Chemical
•
Insurance
Machinery
Merchandise
_
:
—
:
„
—
-
_
_
_
—y
Public
Utilities:
Railroad
Tobacco'
0.33
0.12
0.05
-
_
0.10
Hpjiyell Electric Interesting
Howell
ties
equipment
Electric
Offers
pany
as
with
an
no
0.11
0.18
issued
by
0.12
0.22
0.12
Motors
Com¬
interesting- possibili¬
outstanding company
post-war.. conversion
accoraing to
problem,
Allman,
a
circular
Moreland
&
Co., Penobscot Building, Detroit,
0.14
Mich.,
members
0.18
Stock
Exchange.
of
the
Detroit
Copies of this
0.03
circular
Railroad
Steel
0.26
0.18
-
Metals.
Oil
$0.21
0.11
Aviation
Electrical equipment,.-,
George Putnam Fund has issued
engine and other parts for auto¬
mobiles,
trucks,
tractors
and
"■
.
stocks approved the
common
■
Pood
a
outstanding against the corporate
folders
and
entitled
indebtedness
holdings of the various
of Oct. 30,
1943; new
as
portfolio
the callable securities will cut the
bonded
At
will
The
company
was
formed in >
1916. It produces a wide range of
f
Common
conversion
financing program at a special
meeting in Cleveland on Nov. 15.
table is repro¬
Securities, IncM
city's
gross
Harvard's
as
The pos¬
from
and
herewith:
by
the following: Invest¬
ment Report of the Research
De¬
partment to Group
there
years. This
duced
the
partment of Distributors Group
has recently published
compre¬
cent
the sup¬
giving to
re¬
The
$300,000 of optional 3%
bonds, which the city plans to call
the first of the year, is part of
an
issue of $2,412,000 of 3% re¬
funding obligations, which are
on
recent
of
vised
is
such
to working capital.
Holders of the prior preference
shows Harvard University's com¬
mon
stock
investments
during
literature.
addressed
and
war
labor
1943
folders
the
that
from
be applied
the
enterpirse system. An inter¬
esting table in the Oct. 30 Brevits
; y;■>>
'
marize the important characteris¬
tics of each Fund and are attrac¬
booklet,
A year ago
.•£/:,/
•
result of the
port
Keystone Corporation has pub¬
lished pocket-size folders on each
maturities, the city will
the other
$1,411,000
families, highway construc- $1,001,000,
ti
and
capital improvements of having been previously called. Re¬
demptions planned for Jan. 1 will
hospitals and educational institu¬
cut the outstanding amount of this
tions.
'
issue to $701,000.
If all surpluses were used to
retire
State debts — in many
Redemption of the $7,160,000 of
cases such funds cannot be used
maturing bonds and $300,000 of
offi¬
will
Reserve
free
the
000 of its outstanding
their
use
Proceeds
Aspects."
"Federal
ceeds
tion of
The
securities
to;
:
prices, the various types of sav¬
ings which are being created as
a
being
want
(2)
Stocks, Inc. These are attractive
"picture" folders, are a continua¬
between 150%
not
Shields &
are:
investment Trusts
years, the current grand aggregate
do
Other
writers
Union
on
"The National Debt and Its
Future
$6,998,757 was represented by un¬
paid bills and payrolls. Corporate
highs for these
cials
revised folder
.
two groups ranges
to 200%.
for this purpose, in others
cities.
current composite sum¬
a
a
(1)
amounted to $12,142,867, of which
1,
and
no net
,
levels back to 1937
men
mary,
.
sible
rehabilitation of service
include
bonded in¬
$80,124,000 and
was
obligations, $1,250,000 of a
3% refunding issue, dated Jan.
$2,909,150,000 as compared
with $3,526,407,000 in 1940.
This
decrease, according to the Council
of State Governments, is exclusive
of surpluses which are being ear¬
marked either for special post¬
war projects or programs for the
showed
25,660
shares of outstanding $5 convert¬
Adjusted to War."
debt of all States was tax warrants^
y
ible prior preference stock and to
outstanding, how¬
9% less June 30, 1943, than one
(3) "The Necessity foil Careful
ever, totaled $30,712,000 at the end
provide additional working capi-y
Selection."
*
year prior—the sharpest declihf of the third
tal to meet the company's post¬
quarter, against $28,of any year in the last; decade-—
The last-named discussion is par-*
159,000 a year earlier.
war
requirements. The company
the
Council
said.
-.Short-term
ticularly interesting in its revel¬ plans to call the
prior preference
debts were reduced from $158,-'
ation of the vast divergence in
stock for redemption the latter
000,000 to $17,000,000,. or $141,performance of individual secur¬
part of December at $105. Holders
000,000, in the last year.
Many
ities even in the same
industry of the prior preference stock have
(Continued from page 2013)
States have taken advantage of a
group .or class.'
.7 -y.')yy'yy:.
the right of converting their shares
favorable bond market during re¬ a Soldier," which, for
;.y .yy.;. ,yyv
good read¬
into common stock at $30 per
cent years to obtain lower inter¬
ing and straight thinking, we
MIT's Brevits in recent weeks
share for the common, up to and .*
est.
Though the gross debt was highly recommend.
have
discussed,
among
other
including the fifth day prior to
Recent Hugh W. Long & Com¬ things,
larger in 1943 than in 1932, inter¬
the psychological influ¬ the
redemption date. Net pro¬
est rates for the year ending in
pany literature—New folders on ences
of
the
war
on
security
embrace
Increasingly during the past three
of
5% cumulative preferred
par
'•
The gross
bonds to be redeemed
Gross'State debts have declined
indebtedness
$51,048,303,
(
$100
principal
under-'
Co.; Clark, \
Preferred
Stock
net bonded debt was $58,522,667.
Fund,
and
a Dodge & Co.; Eastman, Dillon & {
Union
Dealer
Hemphill,
Noyes
&
Co.;
containing
news; Co.;
The third quarter statement re¬
about the performance and port-' Hornblower '& Weeks; W. E. Hutflected a reduction of nearly
$3,- folio
ton & Co.; Kidder,
Peabody &
changes in UPS. .':y;y;.
y::,y
000,000 in the city's floating debt.
V:;y/\v "i;y..#;
X*
lis\ '
;'* '' / hi' \
' Co.; Merrill Lynch, Pierce, FenOn Sept. 30 this
debt, represented
&
The last three issues of National ner
Beane;
Paine, Webber,
by judgments and unpaid bills
Jackson & Curtis; Spencer Trask
Securities
&
Research
Corp.'s
and payrolls totaled
$9,422,087, of Investment Timing have discuss¬ & Co.; White, Weld & Co.; and
which $4,355,634 was represented
ed the following subjects in the Dean Witter & Co. The new pre¬
by unpaid bills and payrolls. On
ferred stock was priced at $103
order named:
Sept.
30,
1942,
floating
debt
per share.
amounts, the Council said.
gross
any¬
purpose-
to
debtedness
would call for redemption
"But
bonded
Public offering of $4,500,000
I
stock
of
Thompson
Products,
change as of those two dates. The 1 Inc., Cleveland, was made Nov. 16 }
six Lord, Abbett-sponsored funds by an investment banking group
during the same period showed headed by Smith, Barney & Co.,
New York,' and McDonald-Cool- '
net gains ranging from 1.3%
to
idge & Co., Cleveland, and include i
12.4%.
: v
Other Lord, Abbett publications ing 40 other houses in different j
$72,817,000
was
Mr
i
Dow-Jones
the
because
Industrial Average
Giving effect* to
Sept. 30, 1942,
.
surplus of something
fund
amounted
Nevada
only
lected
sinking fund assets of $21,768,-
debt
no
the
of
Preferred
Lord, Abbett Group for the
period from April 10, 1943, to
Nov. 9, 1943. This period was se-
statement
third, quarter
Thompson Products
the
V:
Comptroller's
recent mail¬
a
I
Smith, Barney Offers
ing to dealers, lists the round-trip
j
performance of the six funds in1
just released, showed that
692,
them/'
the reasons for
on
Lord, Abbett, in
determined,
v'/V"- V'■
of Sept. 30.
as
Pennsyl¬
has
placed menting
place the total at $65,-
corporate
eight—Ark¬
and
been
not
the
year,
iana, Massachusetts, New York,
North
be
gross
bonded indebtedness of
the city outstanding against, the
California, Illinois, Louis¬
other
vania—have been reduced
discussing
for
$100,000,000, and the
debts
•tax levies.
In
than
would
357,000.':
and
bonds, will be the lack of construction work re¬
able to pay off all of its outstand¬
sulting in a minimum issuance
ing debt—every cent of it—at ma¬ and
a
greater
redemption
of
turity, if the debt retirement pro¬ bonds.
gram set up by his administration
Rates of decrease were ap¬
is adhered to, it was stated re¬
proximately
$70,000,000
from
cently by Mayor E. D. Bass. The
1940 to 1941; $250,000,000 from
Mayor expressed this opinion in
1941 to 1942; and $300,000,000
commenting on the results of the
from 1942 to 1943.
Comparing
audit of the city's finances for the
figures for 44 States, 11 had
fiscal year ended June 30;, 1943,
gross
debts of over $100,000,The
city continued
during the
000 in 1940. Of these, New Jer¬
year
the program
adopted on
sey,
Missouri
and
Minnesota
June 1, 1941, of exchanging bonds
have cut their indebtedness to
funding
has
to
funds, the size of
the redemptions planned for Jan.
in
decreases
bonds
of its
one
Thursday; November 18,1943
quest
Co.
may
be
had
upon
re¬
from Allman, Moreland &
V.,
{
.Volume 158
Number 4230
THE COMMERCIAL & FINANCIAL CHRONICLE
2017
——-—
:
Enforcing Profit Limitation Decree
Despite Avalanche Of Opposition
v
can
understand.
more
than
the
we
fair commission
dealer
has. carried
might place
;it,,"rT)vo
47;':
/■
:1
t think it a very unwise and Unfair
ruling, especially for the
Brokers: "and Salesmen who, sell unlisted securities.
What is
not often justified and in this particular we are
an
or
tomers
upon
a
extensively.
the profits of its members.
commission basis and have
I
am
advertised this
fact
cus¬
very
informed, however, that their profits in some
in excess of 5%, although I am not in
sells
a
►
a customer buys or
order to his Broker
completed as soon as possible at an established
The clerk who received the order is an order
on
sales?
When
to overcome them.
'
'
and bolts
and then arguing whether his profit margin is fair.
One doesn't argue with a lawyer or a doctor—why
>•<"• It is probably true that all of
an
investment man?
secure.
of the SEC
were
"
'.v'i:.;
-,v
■
/A-.-y
;
frontier.
sVJ-l.
*
.-
'v The fears of inflation, how¬
have hot been minim¬
the last few days.
Quite the opposite. The Smith
ever,
ized
in
Investigating Committee's
re¬
port on the OPA is probably
the first gun
to
by the farm bloc
get prices up.
*
I realize all this.
;
I
assure
you
I'm not interested in
either being for or against the
OPA. I'm primarily a stock-
interpreter, I'm
interested in facts.
Despite
"Does this not make it clear that it
and try to sell them unlisted
and cents
in
dollars
mean
determining the direction
the market will take.
(Continued from page 1991)
If the Governors of the NASD and the officers
Facts that
will
our
to call upon strangers
2015)
tion, particularly: if the Rus¬
sians cross the.; old ; 'Polish
market-trend
big corporations were made
possible by venture capital. The commissions for raising venture
capital have always been high and should be because it is more
difficult to
are
argue'with
me a check for 10% of the first sale I made and said, "This
commission is not just for the sale you have made, but also to recom¬
pense you for the time and effort you made in calling on those whom
you did not sell."
That was sound common sense and it is just as
true today.
,
,w
,
gave
.
page
expect an early resump¬
can
Stock
The first broker that I worked for called me into his office and
•.
'
(Continued from
a
listed stock, he goes or telephones his
a
and the transaction is
Whyte
Savs
instances have been much
position to cite cases and instances. Dealers not members of the
Exchange are also concerned at times with .regard to the large
percentage of the membership which are members of the New York
rate of commisison.
Stock Exchange and in some instances have used their influence to
taker, not a -salesman.
place the entire business upon a commission basis and full disclosure
:'y
The Broker does not search for the customer, the customer ■of profit.
'
-1 V---:-■■:•.■■■* '; ,v-;,V■.,■■■';V:-'/'/v
comes to him.
When a salesman sells unlisted securities, he pays
I believe you would be championing the cause of the
large
his traveling expenses and searches every day for investors who
majority of high grade houses if you fought any attempts at full
Will buy the stock or bonds he is. selling.
When. he calls upon disclosure of profits rather than attempts of the Association to use
strangers, he often meets skeptics who have lost money in unwise its influence to keep profits within reasonable limits. ;>
^
speculation—the fallacy that only a listed stock is safe to buydissatisfaction with the management of our national problems and
;; ;rdealer n. so
b ; 7;:'
It reminds me of asking a hardware dealer how much his nuts
many other reasons.
It requires a lot of patience and perseverance
,
Walter
inventory and the general market has
three houses, we observe, have decided to deal with
or
on
Tomorrow's Markets
where
advanced is he entitled to 10% or more profit margin. As a matter
of fact, we are far more concerned about the SEC's desire to force
disclosures of profits than of any limitation which the Association
Or do they?—(A Portland, Maine, Dealer.)
.>'!V■■■;;';DEALER NO.
are
:
inclined to agree with them.
We feel that it is only in very unusual circumstances
(Continued from page 2013)
Why in hell the NASD doesn't know all this is
of 5%
excess
NASD Seen
:
was
the intent of
; If some of the things the
Maloney association be conducted in a demo¬
Smith Committee wants done
cratic manner which precludes the issuance of a
profit limi¬
"to 5%, I know it will be impossible to employ a well educated highare
approved by Congress
tation decree sounding the death knell of the small dealers
grade salesmen because I could not pay him a liberal commission
then the beginnings of wild
in the towns and hamlets of the
or make any money myself.
v
"•
country and makes it man¬
inflation will not be around
In my humble opinion, members of the Stock Exchange firms
datory that such a proposal be voted upon by the member¬
and the brokers and salesmen who sell unlisted securities for cor¬
ship. Certainly neither the Association's officials nor the any corner; they will be here.
porations render a great service to these corporations and to the
So far the market refuses to
SEC are prepared to argue that Congressmen are so moronic
public for which they should be - amply rewarded.
believe that such inflation is
as to swallow the contention that the above
If this letter is published by you, it must be anonymous.
paragraph in
imminent.
If it did, then
the Maloney Act simply meant that the association had to
DEALER NO. 48
many more stocks than the
adopt a rule of fair practice, as it did initially, stating that
I read your statements as to the alleged NASD rule limiting
all members 'shall observe high standards of commercial liquors would have gone up.
profits to a maximum of 5%, both in your magazine, to which we sub¬
v':1'".:-;.;y..:* 7;>
honor and just and equitable principles of trade' and that
scribe, and also in your circular letter received today.
;
There is a possibility that
My understanding on this matter may be in error, but it now thereafter Wallace Fulton or the Board of Governors or any¬
runs along these lines.
The NASD is said to have stated that any one else could say well that's all there is to it boys, hereafter the averages are now build¬
profits in excess of 5% might be open to criticism, but only provided we'll
interpret that rule as we damn please and dictate to ing a base, If that is the case,
securities, I
am sure
soon want more than 5% for com¬
If Brokers' commissions are to be limited
they would
mission for their services.
Congress that
a
there were no relevant
facts, which might properly justify a greater
you in any manner we see fit with the exception of telling
The alleged rule applies only to a markup in a
relatively riskless transaction, where a market order might be ob¬ you how to vote."
tained prior to the acquisition of the security involved.
It does not
And while we are on the subject of lawyers, the attor¬
forbid any reasonable gain where the relevant facts will justify a
ney for one dealer informed the "Chronicle" over the tele¬
higher profit Nor did it forbid any profit, of any extent, from an
inventory position, provided the sale to the customer was priced in phone that he would advise his client to ignore the decree
line with the current market at the exact time of the consummation and conduct his business as heretofore. If as a
consequence,
of the sale,
"
then
percentage of profit.
disciplinary action against the client is taken by a Business
Conduct Committee,: the attorney stated that'he would fur¬
,
,
The
purpose
of the>reference to 5% .as a maximum suggested
profit applies only where a sale to a customer, already Rooked, was
confirmed at a price more than 5% in excess of the then current of¬
fering price, and even then,: only in such cases where the security
sold was in supply and could be readily obtained through the estab¬
lished channels of trade.
Dealers have not been prohibited from se¬
curing
greater profit, nor are they prohibited now,
a
vant and
Was it not intended to imply that any
over
5% should be
supported by abnormal and unusual circumstances?
Dealers are not
forbidden to charge more than 5%, but, when as and if they do, the
surrounding facts must substantiate a higher compensation for their
services.
.-V
because of the issuance of the
,
profit
-'•V'
?;
that
capitalism and our system of free enterprise and
regrets that it is obliged to take the stand that the Associa¬
tion is rendering a distinct disservice to the cause of both
when it advocates that the profits of its members be limited
at all, and
particularly when it attempts to do so through any
evidences than I have
-'
More next
matter df
a
on
all
be
seen
to
'"
*
Thursday.
■
,C\ :r /
[The
article
time
?
views
—Walter ■ Whyte
expressed
in
this
do not necessarily at any
with those of the
coincide
They
presented
are
as
those of the author only.]
LAMBORN & CO.
fact, in a great majority of cases, in actively traded!
such autocratic methods as availed of in thh instant case.
securities,.a 5% profit is far more than can fairly be charged.-'At the
same time, there are occasionally cases where a 5% profit would be
They say a BIG man is always willing to admit he is
too little.
;';r
wrong if, on reflection, he believes this to be the case.
;
You might care to refer to the commission rates charged on the
Surely, the majority of the Governors of the Association are
New York Stock Exchange. A stock selling at $1 carries a brokerage
BIG enough to admit that there was nothing democratic
of 60 per share, plus other expenses. This is a 6% markup, each way,
about the way the decree was adopted and will not let any¬
or .12% on the trade, plus taxes and shipping expenses, which dealers
one bulldoze them into
usually absorb when ,they act as principal.
believing the contrary, but will get
As
down
should
prices should go. But
the tape shows better
The "Chronicle" has always been, as it is now, a staunch Chronicle.
'
defender of
or so
date, my advice continues to
be, sit tight.
v; ■J';
ther advise his client to start suit
against every member of
member of the Business
the damages sustained
illegal decree.
point
a
downside
until
the Board of Governors and every
Conduct Committee involved for
where the rele¬
pertinent facts clearly justify.
the
99 WALL
STREET
NEW YORK S, N. Y.
,
t
,
Exports—Imports—Futures
at heart the good of the industry,'as I together and rescind it until the rule is submitted to a vote
have, but I cannot help but wonder if you have thoroughly sifted the of the
membership.
,
facts and;, analyzed, themtent; o„f the alleged "Rule" about which you
have written. " If ;any of ray statements are in error, I hope you will
Widespread opposition to the decree is manifest at every
turn in all parts of the country. As many of the comments
set me straight.
1 shall much appreciate your comments.
.1
am
confident you have
DIgby 4-2727
received
by the "Chronicle" as can be accommodated in this
given below. (As in the past, we are fully observ¬
protect the interests of* the security dealers at various times and I ing the dealer's request that neither his firm's name nor his
think the. publicity you have given to some of the attempts of the identity be revealed.) All of the favorable comments received
,SEC to deprive dealers oP'^bfit is commendable. In this instance, are included.
One of these comes from a member of the
however, I fear; .that the^ writer of your editorial did not exactly
Board of Governors. More will be given next week if the
have the;poinhpf.wiew.bhthe average dealer and I.shall endeavor
^.'dealer
I
have
been
to make their
.
.
For
'
SUGAR
over
in sympathy
k'
NO. 49'
with the "Chronicle's" intention to
pdsition clear for whatever value it
may
be to you.
twenty years we have been engaged in underwriting
issue
are
decree is not rescinded in the interim.
are
solicited
Established 1856
H. Hentz & Co.
Members
Dealers' comments
JJew
New
by the Editor,
participation arid in the purchase and sale of listed and unlisted stocks
and bonds. As we understand it, the National Association of Security
To Admit Frankhauser
.was formed, for the purpose of regulating the industry, elimi¬
nating if .possible the gross injustices in the form of excessive ^profits.
Charles - A.
Frankhauser
will
Otherwise-it was feared that unreasonable regulations of the SEC acquire the New York Stock Ex¬
with regard to this subject might be forced upon us.
change membership of Donaid M.
Up to this time I do not believe that the "NASD" has made any White and become a. partner in
arbitrary rule limiting profits but has naturally frowned upon profits Hackney, Hopkinson & Sutphen,
which were obviously excessive. I believe they have taken the atti¬ 14 Wall Street, New York City, on
tude, that circumstances in connection with the customer and the November 24th. In the past Mr.
sale should determine the, margin of profit. I do think that many Frankhauser was a member of
members of the. Board'feel that profits on riskless transactions in the New York Stock Exchange.
New
York
York
Commodity
Chicago
.
Attractive Situations
Dealers
Tork '
New
Machine
Co.,
obtained upon request from Her¬
& Co.
Exchange
Exchange:
Inc.
Exchange,
Board
other
of
Trade
Exchange
Exchanges
Strom-
berg-Carlson, and Haloid Co, of¬
fer attractive situations,
aceordT
ing to memoranda prepared by
Herzog & Co., 170 Broadway,
New York City. Copies of these
interesting memoranda may be
zog
Exchange
Curb
Cotton
Orleans. Cotton
And
,
Gisholt
■
Stock
N. Y. Cotton Exchange
NEW
CHICAGO
' '
Bltlg,
YORK 4,
N. Y.
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
mm
f
2018
IhnlnilllKHTlWi Iflimfmtttlffl^
THE COMMERCIAL & FINANCIAL
CHRONICLE
FOB Asks
Congress For Funds
UNRRA-
or
enactment of
Roosevelt
recommended
to
Congress on Nov. 15 the
bill
authorizing the appropriation of funds to permit
participation by the United States in the work of the United
a
7 :' Thursday, November 18. 1943
Halsey,
OUR
$ 15,000,000/ ifxi);
President
the
MM' ^ ^1 p'^'t' ^
Nations Relief and Rehabilitation Administration.
■Mr
/
General Tire Preferred
s
Atlanta Bonds
Offering was made Nov. 16 of
65,000 shares of The General Tire
& Rubber Co. 4'14%
cumulative
a
group of 46 investment banking
Underwriters: and dealers are
appropriation of a specific houses which made
public offering disposed to look forward to a
pe¬
sum now, explaining that after the results
of the conference now Nov. 17 of
$15,000,000 first mort¬ riod of sustained activity in the
in progress in Atlantic City
are'fgage 3%%
Bonds, due Nov. 1, new issue market between now
known he would send a further these later tasks "of reconstruc¬
1963, of The Atlanta and Char¬ and the middle of next month.
recommendation.
'/ ■' /"
However, Mr. tion.
lotte Air Line
Railway, part of
They calculated that, there is a
Roosevelt pointed out that Con¬
The devastation and disorgani¬
the
Southeim
Railway System. total of something like 40 pros¬
gress will determine from time to zation caused by the Nazi
and
The
President
did
not
■
the
nature
the
and
amount
of the contribution to be made to
the
UNRRA by this country, but
added that "only by bringing to
the
bear
United Nations will
relieve
a
of the
need help." He
said
that
part
the
agreement
Nations.
ciated
the
der
The
offering is being made sub¬
ject to authorization of the new
perferred stock by shareholders' at
a
special meeting to be held oh
tives of 44
which it
its
determine
cordance
is
hoped
with,
its
that
"a
ability, and it
small fraction
of the national income of the con¬
The text of the President's
was
;
The Atlanta
for
Each will
the
itself
amount
make.
can
income of the contributing mem¬
will, it
hoped,
is
sufficient to meet the needs.
the
of
liberated
by
nations
be
Some
may
and
Charlotte Air
Southern';
Railway,»
254.11
miles
of
main
lie
involving
road's
line
follows:
To the Congress of the United
States:
tion
track
happy to inform the Con¬
that on Nov. 9, 1943, repre¬
am
be able to relieve
we
stantial
part
a
of
public
Ga. forms
an
integral and essen¬
part of Southern Railway's
double tracked main line from
out of
a
:;/'- //77: / 7
'
,
Proceeds will be applied to the
redemption of the entire outstand¬
ing 21,875 shares of 6% cumula¬
tive perferred stock, series A, at
1.05,
and
the
balance,
together,
with, other company funds, to the
construction; of
distribu-
ities lor the manufacture of tires
of
875,000
common
plant
new
and tubes to meet
facil¬
immediate and
post-war demands.
The company
has options for the purchase of a
value, growing
plan of recapitalization.
tial
1
Colorado
prospective
the
stock, of $20
par
plant site in Waco, Texas, and has
This stock is in registration with
the Securities and
Exchange Com¬
placed
mission
chinery to be. installed there, but
definite plans have not yet been
•
Washington to Atlanta. Under the
be new first
mortgage Southern' Rail¬
sub¬
to
Co.
/shares of the company's
Charlotte, N. C. to Atlanta,
held
way in effect guaranteed interest
plies and services rendered. But and
sinking fund payments on the
only by bringing to bear the re¬ new
bonds.; - %
/;.%:/-V-A':'7/77M1
sources of all the United Nations
Proceeds of the issue, together
will
Service
19:
7;
operation Of
providing for competi¬
Among the largest individual
undertakings is that of the Pub-':
!
its
or-
predecessor, since 1881. The
Nov.
to reach
tive bidding.:
U/Z/vMiV/://
Railway has been operated
from
A small fraction of the national
States
Line
,7
virtually all destined
Rule U-50
,
of 99.039.
new
the market under the
awarded to the
able to make payment for the sup¬
mes¬
sage
I
ability.
and character of the contribution
ber
tributing member States will be
sufficient to meet the needs.
contribute in accord¬
will
establishing UNRRA, which was
signed on Nov. 9 by representa¬
nations, proposes that
each nation will contribute in ac¬
Accordingly, un¬
establishing
agreement
with
ance
-issues in sight, a
number of them substantial in size
and
Halsey Stuart group in compete
tive bidding Nov. 16 on their bid
UNRRA, it is proposed that each
nation
pective
war
of the 44 United Nations and Asso¬
the
all
be able to
we
substantial
millions who will
further
of
resources
The bonds were priced at 100
%
machines are so subject to
approval of the issue by
great that this world disaster can the Interstate
Commerce Commis¬
be met only by the united action
sion, The issue
Japanese
J
•••
request the
'
time
I
preferred stock at $101 per share
by 7 an ' underwriting -syndicate
headed by Kidder, Peabody & Co.,
and The 'First
Cleveland, Corp.
REPORT
Halsey, Stuart & Co, Inc. headed
and, hearings have been
its plea that the transac¬
on
tion be exempted
of Rule U-50.
Michigan
made
from operation
be
Consolidated
approximately $5,000,000 to
advanced by Southern Ry. for
to the
as
is
$1,ma¬
type of building to
constructed.,
project
The cost of this
estimated
at between
S2.500.000 and $3,500,000. Erection
of an additional
building at the
company's main plant in Akron-
Gas
Co. has registered
proposing the
sale of $38,000,000 of first mort¬
with
orders approximating
for a portion of the
250,000
suffering of be
help.
gage 314% bonds due 1968, plus
which it will acquire new second
amount of
40,000
Ohio, also is contemplated, If ma¬
shares
of
new
mortgage bonds will be used to
ples joined with our own Gov¬ the contribution to be made
terials arid labor can be obtained
by
cumulative preferred stock of
pay in full at or before maturity
ernment in signing the
accom¬
the United States will, in accord¬
as needed it is estimated
$100 par.
that the;
on
,V:/.7 4
July 1, 1944, all of the pres¬
panying UNRRA agreement, set¬ ance
with
the
terms
of
the
Waco plant and the addition to
The company plans to.
ently outstanding first mortgtage
ting up an international relief and UNRRxA
apply the the Akron
agreement,
be
deter¬ 4^% and
plant will be completed
5% debt of Atlanta and proceeds to retirement of its entire
rehabilitation
administration
to
mined
bv the middle or latter
by the Congress of the
part of
issue of first,
Charlotte aggregating
give first aid in the liberated United States under
mortgage 4s due in
$20,000,000.
its constitu¬
1944.; •
'"7'777%k;7.'77/ 7•
Southern Ry. will accept second 1963 along with its serial notes
areas.
This agreement provides
tional procedure.
In
addition
to
the
mortgage bonds in satisfaction of due 1944 to 1948 in the amount of
principal
only the framework. The imple¬
At this time I recommend to its
Akron plant, engaged
advance and additional second $4,150,000.
mentation is left to the constitu¬
primarily in
7777:7v/7 77777;//' the
the Congress the enactment of a
production of tires and tubes,
tional law making body of the
mortgage bonds in settlement of
By far the largest deal in sight
bill authorizing the appropriation
[The General Tire & Rubber Co.
member States.
sinking fund payments of $150,000
is that put forward by the Illi¬
of funds as Congress may from a
The task
of the organization
year which Southern Ry. will
} has two smaller units in that city
nois-Iowa Power
gress
of the
the millions who will need
sentatives of 43 nations and peo¬
The nature and the
'
,
■
,
will be to assist in
furnishing the
medicine, food, clothing and other
basic necessities and essential
vices
which
are
required
ser¬
to
re¬
store the
strength of the liberated
peoples. They have been deliber¬
ately stripped by the enemy in
order to support the Axis war
machine.
More
than
that, the
Axis leaders have boasted that
as
withdraw, they will leave
only devastation—what they have
not stolen, they will destroy.
As
our American soldiers fight their
way up the Italian Boot, they are
discovering at first hand that the
they
barbarism of the Nazis is equal to
their boasts. Their only rivals in
this respect are the Japanese.
UNRRA will be able to make
only a beginning in the vast task
of aiding the victims of war. The
greatest part of the job will have
to be done by the liberated peo¬
themselves.
ples
UNRRA
What
can
do is to help the liberated
peoples to help themselves, so
that they may have the strength
undertake the task of rebuild¬
to
ing their
ruined
destroyed homes, their
factories
and
their
plun¬
States
I
not
am
The
length of the war may be
materially shortened if, as we
free each occupied area, the peo¬
ple are enlisted in support of the
Nations' armies.
the
in
French
for
army
example,
has
been
a
new
created
UNRRA.
Co,
advance from Nov. 1. 1.944 to Nov.
1,
1962, inclusive. The "indenture
provides
that
the
total
■
The UNRRA
conference, which
in Atlantic City
10, is currently working
Nov.
on
plans
to determine how far the organi¬
zation should go in aiding the
victims
out
a
of
in
and
war
on
working
formula to finance the world
relief task.
;
At
the
Nov.
11
connection with
ses¬
the
again."
Mr. Lehman said
"guiding light" of the UNRRA
must,
always be
the principle of
"helping people to help them¬
selves," otherwise, the "oppor¬
tunity for sound permanent re¬
added that
lost."
be
may
interfering
as
He
little
as
necessary Mr.
The
the
original distribution of a $38,~
000,000 bond issue of Public Serv¬
military operations. Millions more
waiting for the,moment when
too,
can
strike a - blow
against the enemy.
are
they,
They do not want charity. They
seek the strength to fight and to
pose of
since
"the
pur¬
UNRRA is not To substi¬
tute international controls for
tional controls."
na¬
7:
pose.
necessary
for
What UNRRA
this
can
pur¬
do is to
lay the necessary foundation for'
formula
for
about
creating
flexible
be
members in the 33 united and 11
invaded countries
associated
1%
12
nations,
that
the
was
told
minimum
on
re¬
ago,
and is to be used
only
as a
basis
of the UNRRA's work.
The
finance
committee
a
14
fund
a
of
Under this pro¬
would
Nov.
Nov.
on
$2,500,000,000 to meet the
posed
•
be
discussed
The Council of the UNRRA, or
policy-making body, made up of
their
will
Council
world relief cost.
quirements of the European coun¬
part in securing the tries for six
months after their
peace. Aid to the liberated peo¬
liberation will be 45,855,000 metric
ples during the war is thus a tons
of supplies, which will need
matter of military necessity as
to be imported, This estimate was
well as of humanity.
presented in a report by Sir Fred¬
UNRRA will not, of course, be erick
Leith-Ross, Chairman of the
expected to solve the long-range i Inter-Allied Committee on Post¬
problems of reconstruction. Other war
Requirements, which studied
machinery and other measures the problem seven months
do
years ago.
formula
assigned
quotas
only
on
to un~
the basis'of
of their national
.
income..
contribution would be
a
possible
$1,500,000,000
with - the
British
Commonwealth of Nations and the
American Republics making up
the
J,
the
20% is in
rayon tire cord. A poly¬
merization plant in Texas, with an
A.
respect
did
discussion
not
to
appear
new
to
is¬
Rubber Reserve Co.
7/7M'-',/./;
arouse
in
Railroad Situations Offer
Attractive Possibilities
In
the
current
issue
ing and they have been endeavor¬
ing as much as possible to avoid
"Railroad; Securities
the
•
of
their
B. W. Pizzini &
necessity
for such operations
to the utmost.
/.'-A',■ 7;/ f /;/. -//-;;
data
tions
out
are
and
the
'
on
three railroad situations
which the firm believes are par-!
ticularly attractive at current lev¬
Copies of the "Quotations,'*
els.
business
had from B. W. Pizzini & Co, upon
request.
relatively small issue,
$5,500,000, the offering of South¬
a
Colorado Power Co. 1st mort¬
bonds,
brought out
due 1963, certainly
imposing array of
bids when sold on Tuesday.
an
the
seven
100.65
for the
issue
were
■
'
The
"
lowest
,
ing
as
«
made
by
with
/
Sjuart
the
of
'
,
•
Some underwriters have
the
foregoing
& Co. winning the award
basis
indications that rail¬
than in the past.
,
on
are
equipment trust certificates
are likely to be found attracting
noticeably fewer bids henceforth
rather
remainder. Objection to the
national income formula was
page 1924.
report¬
brisk out-of-town insurance
road
Surprise of Week
Ip contrast
a
company interest.
Halsey, Stuart & Co. of Chicago,
100.08 for 3Us.
reported meeting broad in¬
Therri
was,
,7%:;
reoffering,
upon
Railroad Equipments
/
bid
v;r".:*
bonds,
vestment demand, dealers
314 s./Reoffering was expected to¬
day, depending on SEC release, at
102,
3%s and 98,069 for
,
The
going to the New York
investment
banking
house
of
Harriman Ripley & Co, Inc.,- on
of
for
3us.
the bonds
bid
•/
only other bidders, offered
94.789
different groups
placed tenders for the issue, with
its
*
.
99.038, and reoffering the issue
publicly at 1001Shields & Co.,
gage
All. told
a
comprehensive: analysis of
the
speculative
of
possibilities
Boston & Mairxe Railroad, may be
Small Issue, Manjr Bids
ern
,
and
is done pretty much on the basis
of an entirely free market.
Though
Quotations,'!
Co., 55 Broadway,
City, give pertinent
New/ York
Recation to the latest blast on
that score seemed to be that, in
a broad sense,
stabilizing opera¬
reported in these cqluipns- Nov. 11,
of
annual
an
/ 7
outpouring of bids was the show-;.
ing in connection with the sale on
voiced on Nov, 15 by the Brazilian Monday of $15,000,000 of Atlanta
memtjer of the, Council1 proposing & Charlotte Air Line Railway 1st.
instead using, a certain percentage mortgage 3Us,<due 1953.,<
/
of foreign trade/ '/•;«
I The rail issue brought out
••
Setting up. of the UNRRA. was
only
two bids, with
Halsey,
1%
mechanical
mately
that the SEC is averse to stabiliz¬
It
is reported that the United 'States'
and
The company's Al-
Barnesville, Ga., has
capacity of approxi¬
5,000,000 pounds of tire
cord, of which at the present time
■//;,,
underwriting
circles.
.• ■
//,%/%//•',; %///;'■/ Underwriters are fully aware
action Sunder
agreement between se¬
curities dealers in connection with
a
be
/
to the production of
materials
annual capacity of 30,000 tons of
the other day synthetic rubber: is leased
to the
Treanor,,. head of the company by the Defense Plant
SEC's trading and
exchange divi¬ Corporation and operated on a fee
sion,-with regard to stabilization basis under contract with the
re¬
tenance
War
rubber goods.
dora Mills In
Views expressed
by
much
territories should be the adminis¬
policy,
would
sues,
was
taken by the NASD
following its investigations of al¬
leged violations of a price main¬
possible with the recognized gov¬
ice Co. of Indiana four
peoples of liberated
of commercial banks.
operations in
review
with
ihd., devoted
;
,
Fulton declared.
disciplinary
directly
Stabilizing Operations
six of its members, at the'
request'
UNRRA, and, in his acceptance
of Wallace H.
Fulton, executive
address, pledged his energies to
director of the NASD. The con¬
the "joint effort of the United Na¬
tinued illness of the Association's
tions to help the liberated peoples
counsel made the
postponement
of the world to become self-suf¬
tration's
tary installations required for our
the
| where, barrage balloons are manuj fa'ctured, and another in Wabash,
collateral
applied to
redemption of $69,856,000 of out¬
standing Series A and C bonds. /;,
The Securities and
Exchange
Commission has again
postponed,
to January 20,
1944, the oral argu¬
ment in
placed
Proceeds
view1 of the'
disciplinary / action
sion, Herbert H. Lehman, former
taken by the National Association
Governor
of
New
York, was of
Securities Dealers, Inc. against
elected Director General of the
Italy are falling in,step beside the
of the United Nations.
construct roads and mili¬
group
SEC Again Postpones
Hearing On NASD Action
ernments and
Others
to ; be
^
opened
and
bonds, plus $4,000,000 to
$5,000,000 Z.%% notes, the latter
of
.
mortgage
trust
recommending the first and second
mortgage bonds
a specific sum.
outstanding shall never exceed
At a later date, after the conclu¬
$20,000,000.
:
sion of the Atlantic City meeting,
Giving effect to the saving re¬
I shall send to you a further rec¬
sulting from this financing, South¬
ommendation, informing you of ern Ry's fixed
charges will be re¬
the result of the meeting and re¬
duced, on an annual basis, to apquesting the appropriation of spe¬
proximately $13,600,000 as com¬
cific funds.
:
pared with' fixed charges of4$ 15,FRANKLIN D. ROOSEVELT.
694,873 in 1942 and $17 626,128 in
The White House, Nov. 15, 1943.
1930,' '■
:•/./; >„>/>■■;
and, as we strike toward Berlin,
increasing numbers in Sicily and
soldiers
first
both
of
providing
/for the sale of $65,000,000 of its
now
construction
Already,
of
work
appropriation
ficient
dered farms.
United
time to time determine to permit
the participation by the United
its
tender
of
definitely
against
contention
longer
decided
participating
competition
'
in
hereafter,
that
offers
this
such
the
on
paper
no
satisfactory
a
'
margin.
•/ /"
■
■.
/'// 7
"
Tt 'Will be interesting to watch
developments; when the next. such1
issue is marketed.
■
n
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4230
158
'
Security Rotations
DOW
CHEMICAL
COMPANY
the
acquisition of an interest, in existing
plant facilities, for such purposes, but plans
for such acquisitions are not sufficiently
definite for,the company to make a state¬
ment
with
thereto.
If pursuant
respect
to
these
plans sufficient existing plant
facilities- are
acquired, it is' anticipated
that the cost of the plant at Waco will
Chemical Co. has
Dow
registered 309,741
shares of* cumulative-preferred stock, Series
A, without par value, $4 dividend.
//?.-.
Address—Midland, Michigan.
Business—Engaged in the manufacture of
a diversified line of inorganic
and organic
chemicals-,, also magnesium and magnesium
.
V ■'
alloys.
.
'/..•/
v
.
the acquisition of additional plant facilities
for the; manufacture of tires and tubes or
OFFERINGS
be
.■/
Underwriting—Smith, Barriey &. Co,, New
York, will head the group of underwriters,
Others will be supplied by /amendment;//
11
decreased
will
and
$2,000,000 and
between
aggregate
it
make
ferred
exchange such
stocky^hnre for share, for cumulative pre¬
ferred stock, Series A, such
right ;• to • ex¬
change expiring at 3 p.m. EWT. on Dec.
15,
1943,
Underwriters have
agreed to
purchase any of the 249,741 shares of
preferred, Series A, which are, not Sub¬
scribed for by the common stockholders.
Price
to
the public
will,-be supplied by
amendment. ■' ■ /
"• '-/■/ '• „'
Proceeds—To retire, the company's pres?
ently
outstanding
5/
preferred
stock
1,through exchange of such stock for the
cumulative preferred stock, Series: A, arid
to extent not retired through exchange to
use
a
portion - of the proceeds /from the
sale of
the cumulative -preferred
stock,
Series A, to redeem the 5//preferred stock
at $105 per 'share and accrued dividends
on Feb.
15, 1944, and to provide additional
working capital; .//■• --'
////
Registration Statement No. 2-52AQ, Form
■
right
Thompson
lows:
statement
Registration
{EWT}.
10,
Nov.
on
effective
1943.
3
"
Clark,
4.000;
&
lon
&
blower
Dodge
Weeks,
Jackson
&
&
&
Fenner
Pierce,
Hutton
Horn& Co.,
Merrill
Co.,
Beane,
Curtis,
and: White,
E.
Dil¬
Eastman,
Co.,
W.
Peabodv
Kidder,
&
Webber,
Trask
Spencer
&
Co.,
Co., Field, Richards & Co., First Cleveland
Boston
The
Corp.,
Cleveland
First
Weld &
Co.,
Shepard & Co., and HayCorp;':and associates,
//
pr A-/
den, Miller & Co., all of Cleveland, Janney
THOMPSON PRODUCTS. INC.
A
;■& Co., Philav, Laurence M. Marks & Co,,
Thompson 'Products'; Inc.,1 has. filed a
New
York, Merrill, Turben & Co., Mayregistration statement for 45,000 shares, ot
no rd
H. Murch & Co., Otis & Co., all of
cumulative preferred- Stock, par §100 per
Cleveland; Reynolds & Co., Riter & Co.,
'share.The dividend rate will be supplied
Tucker, Anthony & Co., and G. H. Walker
by,amendment,
■.■/'/
///,
& Co., all of New
York, 900 shares each;
Address—2196
Clarkwood Road,-.Cleve¬
Ball, Cooris & Co., Cleveland, George B. D.
23555 Euclid Avenue,
■////:: /y-.'T;y-lr y
//' >.
Euclid,.
land,arid
-
Business—Manufacture
Hawley,
-''/A
wide
of
range
parts and acces¬
aircraft engines;
military equipment;
sories': for aircraft and
for marine and
-parts
other parts of
arid mobil¬
engine and
trucks,^, tractors
automobiles,
Co., Rochester, E. W. Clark
Phila., J. M. Da in & Co., Minne¬
apolis, H. L. Emerson & Co,, Inc.,. Cleve¬
land,
Milwaukee
Company,
Milwaukee;
Moore, Leonard & Lynch, Pittsburgh, W. H.
Newbold's Son &; Co,, Phila.,, Ohio Com¬
Underwriting
p.m.
Cleveland,
Smith,
—
head
the
Barney
&
Co.,
& Co.,
underwriters.
Others
.
ments were
$4
grouped according to the dates
are
tion statements will in normal
which the registra¬
on
become effective, that
course
"•//
No
(10-28-43).
S-2.
*'■
Nov!
Offered
'
at $14.50
16
Form
share by
RUBBER CO.
<fc
Tire
General
A
Rubber
Co.
has
f
dend rate will be supplied by amendment.
authorization of
the new preferred
stock wdlj.be acted upon at a special: meet¬
Series
A. the opportunityto
exchange
their shares for cumulative preferred stock.
-// ,■■'///• '■/.//>: ,///
Ohio.'..
Business—Manufacture
for
and
share
Cleveland,
are
-.
to
the
public
ment.
■
■
■
'/..;
//
Proceeds—Of the net
///AAA///-'-
proceeds $2,296,875
■
,
statement
registration
a
for
portion
a
of
the machinery approxi¬
lit a general way-the
constructing
of
equipping
and
the
estimated between $2,500,000 and
plant is
Company,, also
$3,500,000.
proposes
to
payment plan—Series
400,000
"investment
units;
units'—single
create
13th St.," Oakland,
Address—416
filed
registration
for 197,954
value,
'y
West St., Rutland, Vt.
a
share
Proceeds —For
statement,
sol common stock, no par
y. v •
;
^
!.
■share.',
■.
(11-15-43).
Dates
of
integral
tires
of
and
tubes,
estimated
cost
of
,
der,
If
materials
"and
labor
can
be
Twin
Gas
State
Undetermined
VALLEY GAS
ELECTRIC
&
CO.
■/•Vy',/:
y/•//;;':./
Bla'ckstone. Valley Gas & Electric Co. has
registered $11,300,000 first mortgage and
trust bonds
1973.
series due
3'>.
High Street, Pawtucket, R. I.
;
Business—Operating public utility com¬
pany engaged in the electric and gas busi¬
ness.'/.-'
' -■.. /y 1
/•'.■./ ■•;■/
Address—55
supplied
be
competitive
at
Commission's
the
post-
by
amendment.
Offering—Company proposes
bonds
price
common
plan
stock
is
the
for
Electric
Co.
will
be
mortgage
terest
rate
furnished
the
the
of
stock
common
registered,
company will issue and sell privately
cash $500,000 in face amount of its
first
sale
bonds,
and
by
of
Series
price
received
amendment.
.the
common
a
to
The
C.
-
in¬
will
be
Proceeds
stock
and
to
were
to
effective
Utah
on
outstanding
',.
com¬
■"
Utah
at' March
:..
•
■
31.
.
.
Cdinpany.'s".first' lien
and
gold
bonds, Series of
1944", of which $4,068,000 face
outstanding at March 31,
mortgage
were
pay Utah
first
Light & Traction Co.'s 30-
and
refunding
bonds. Series A, 5/
face
amount
mortgage gold
of which $11,813,000
,
were-
outstanding
at, March
31, 1943, these bonds having been1 guaran¬
teed as to principal, and interest
by the
Utah Company.
5
first
mortgage
LIGHT
CO.
for
mortgage bonds,
Series
reg-
a
first
$37,000,000
will be supplied
1973.
Interest
by amendment.
Kearns
—
due
Building,,
Lake
Salt-
//:
a public utility operating in
Idaho, northern and central
southwestern
Wyoming.
will
sale
by
the
competitive
Commission.
be
of¬
pursuant
rule of
the
company
bidding
Names
supplied
of
July
on
27.
Nov.
10, company filed an amend¬
to its registration, statement in
which
changed the proposed issue and sale of
ment
it
securities
to cover $42,000,000 first mort¬
25-year bonds to be dated Doc. 1,
gage
1943.
The
underwriters
by ; amendment.
\
Offering-Offering
price to the
will be supplied; by amendment.
public
are
to
be
sold
at
com¬
bidding under Rule U-50 of the
Commission to yield the
company at least
$41,500,000,, The
interest
rate
will
be
bv
the successful bidder.
ceeds will be
balance
used
The pro¬
for
necessary
current
will
.
bonds
petitive
named
Underwriting—The. bonds
for
Approved—The -SEC
granted 'company permission to offer
for sale by competitive
bidding $45,000,000
1st mtgej bonds, series C.
Interest is not
to exceed 3(4Z,
On
Light Co. has filed
statement
(6-30-43}.
Issue
$5,500,000
Utah Power &
be
To
year
1943.
UTAH POWER &
the
be,
may
1943
istratioiv
to
case
were
of
A-2.
awarded
fered
be
1943.
p.m.
4,
3Ma /? bonds Nov, 1(3, 1943, on bid of 100.65,
rate
"4V!rt
Awarded—Harriman Ripley & Co.
.
refunding, with any
being
supplied
from
treasury funds.
Amendment
filed
Nov.
5,
1943,
to
defer
effective date.
(This
list
is
incomplete
this; week)
:
Salesmanagers' Commission Inequity
sales
managers, who have actually earned their commissions, may
prevented from receiving them, was made on Nov. 13 by the
Commerce and Industry Association of New York.
be
"I would point out that however drastic
may be your restriction
salary increases as applied to
——-—4—-—-——
——♦
in;
compensation computed
in the '
Publie
•
on
normal
bidding
to sell the
pursuant to
Offering
U-50.
Rule
bank loan of $150,holders
of
(10-23-43).
EWT on
Nov.
statement
10,
1943.
Bids—Proposals
whole
of
Indiana Is
arrangements
Service
quit
to
or
his
job
be
to
Nov,
dated
1,
pany
at
Coolidge
1973,
the
1,
The
of
as
mortgage
a
and
to
and
mature
issue
was
Stone
awarded
&
) Southern
to
Webster
series,
be
due
sold
at
Nov,
the
Public
interesting situation, ac¬
cording to a memorandum issued
by Bear, Stearns & Co., 1 Wall St.,
York City, members of the
basis and
has
New
York
Stock Exchange and
leading Exchanges.
Copies
of this memorandum may be ob¬
tained from Bear, Stearns & Co.
other
request.
upon
has earned
Seaboard Air Line
his
certain
a
amount
arrangement
un¬
to
only
be
told that he may not receive what
his contract of hire says he was
worthy of."
have given
their subordinates
definit9 policy to follow in
proving
overriding
each
and
no
ap¬
commissions
subordinate
followed
whatever
rule he pleased. It fol¬
lowed, he said, that businessmen
could
Situation Interesting
The
situation
Seaboard
in
Air
Lines offers most interesting pos¬
;.;/.
not make
such commission
arrangements, which in the past
proven
efficient,
because
they had no means of knowing
sibilities in view of
the redemp¬
tion of the Receivers' Certificates,
with
a
consequent saving of $450,-
000
per
the
progress
annum
to the Line, plus
that has been made
by the Compromise Committee,
according to a study prepared by
L.
H,
Rothchild
&
Co.,
120
Broadway, New York City. Copies
of this study are available from
the firm upon request.
had
what
the
financial
return
employee will be.
Mr.
to
that, until
Department has
Treasury
nounced
lowed
definite
a
subject,
receive
to
The
on
was
be
ruling
in
in
to
the
these
Bower,
of
current
in
situation
to
a
common
pre¬
stocks
memorandum
40
by
issued
&
Hornblower
Weeks,
Wall
Street, New York City, members
Exchange
of the New York Stock
other
national
leading
ex¬
changes. Copies of this memorandurh may be had upon request
from Hornblower & Weeks.
Executive
the
The
ferred and
and
Bower Honored
A.
Attractive V//';
of Heythe wood Wakefield Company, offers
al¬ interesting possibilities according
an¬
columns Nov. 4, page 1798.
Vice-President
Hey wood Wakefield
the
'
■
referred
:
earned
their
\
Treasury's
matter
rule
salesmanagers
commissions.
the
/ /A //./;
Miley asks
1968.
competitive
Bank
&
Chemical
&
Blodget,
Co.
has
regis¬
bonds,
bonds will
bidding and the
mortgage,
The
of New York,
the guest of honor at a
eon
given by the Board of Gov¬
lunch¬
of the Wall Street Club on
ernors
Estabrook
Co.
was
Nov, 16
and
Trust
his appointment as Di¬
rector of the Banking and Invest¬
on
ment Division of the War Finance
N.Y. Analysts To
Hear
Stanley B. Hunt, Editor of Ray¬
on Organon, will address the New
York
Society
of Security An¬
alysts, Inc. on Long Term Trends
in the Textile
Industry, at the
Society's
meeting
scheduled for
November 19th,
president of
New York State.
presented with an the Middle West Corporation, will
embossed scroll, by S. Stanwood speak on Monday, November 22nd.
All meetings are held at 12:30
Menken, President of the club. Mr.
Bower was a three-time President p. m. at 56 Broad Street, New
Committee
for
Mr. Bower
Power
first
1,
of
Company of Indiana, Inc.,
an
everything that his contract
of hiring obliged him to do and
com¬
COLORADO POWER CO.
Colorado
$5,500,000
over¬
an
upon
done
Best,
inc.,- on a hid, of 103.817,
tered
has
employee
an
contract
a
the
24,550
SOUTHERN
is, far different, how¬
case
where
Gray,
by
Ropes,
&
and
Associa¬
offers
stock
New
Joseph
p.m.
Rugg, 50 Federal St., Boston,
Mass., up to 11 o'clock a.m. EWT., Nov, 17.
Co.
Jefferson
the
tion.
series due 1973,
3/-
1943,
received
were
office
4
purchase
first
bonds,
Nov.
Thomas
wrote
Secretary of
Interesting
Common
.
for' the
$11,300,000
trust
collateral
effective
Service Co. of
the employee is
Seriously injured because he
is always at liberty to make other
manner,
not
.
Registration
from
bonds
at Akron plant will be completed shares of 7/
prior lien stock • of .Twin
by the middle or latter part of: 1944. „It is State as provided in merger agreement\in
presently expected that the: remainder of an amount equal to $110 perj share plus
the proceeds, if any, together, with other, unpaid
dividends; to acquire - $40,000 of
funds of the company, • will be applied to 3/ debentures due Dec. I, 1956, and $8,-
S-l.
providing that
Central Vermont pursuant to
into
merged
the
a
&
obtained as they are needed it is estimated
will be used to pay
that the plant at Waco and the additional^ 000;
to
pay
cash
building
resale
will
Registration Statement No. 2-5173. Form
statement
Nov.
on
Bonds
Registration Statement No. 2-5236. Form
of
of
part
issuance
tion
for
not
sold
:
.
Offering
BLACKSTONE
,■
.
Proceeds—Sale
an
its
building
being
$200,000
and
$250,000.
Machinery for. this building and for other
plants of the company and its subsidiaries,
costing approximately, $815,000, ..is on or¬
be
Under
the
present
Treasury
Form regulations, Mr. Miley pointed out,
-.-.y
the responsible Treasury officials,
:''.
investment,.
Registration Statement No 2-5255.
c-l
by
sponsored
fund
Underwriting—Trust
effective
the plan filed with the Commission some
time
ago.
Contemporaneously
with
the
plant to be used in the produc¬
will
notes
ac¬
of gen¬
used
any,
'
purposes;
first ; mortgage 5/
gold
1944,,of which $28,119,000 face
'
pay
amount
(10-20-43).
Registration
EWT
der
trust.
Business—Investment
■
^
Cal.
units.
investment
450,000
create
820
T to
1,400
D
to
plan—Series
units—accumulative
y'.y;'//.-:-';
Public Service Corp, has
Central Vermont
apply a portion of the p:roceed,s toward the
construction of an additional building at
Akron
The
riding commission
has
-
cost
principal amount plus
Registration Statement No. 2-5234. Form
A-2.
"The
the public will be supplied by
will be
Address—121
applied to the redemption of 21,875
post-effective amendment.
'
y
y
outstanding; shares... of the company's, .6//
Business—Operating public utility.
:
:.[■
Proceeds--Net proceeds will be applied
cumulative preferred stock, Series A,
at
to the redemption of $7,300,000 of' out¬
Underwriting—Shares are to be sold at
$105 per share.
It is the present intention
mortgage
and
collateral trust
competitive bidding pursuant to Commis¬ standing
of the company to apply a portion of the
bonds. Series C, 4/, due 1965, at 106/
sion's
Rule
U-50
and
names
of under¬
proceeds, together with other funds of the writers will be
requiring $7,738,000, and $4,000,000 of out¬
supplied by amendment.
-<
company to the extent
necessary, toward
standing
mortgage
and
collateral
trust
Offering—The company will invite bids
the construction of a new plant for .the
bonds. Series D, 3
due 1968 at* 107/)
manufacture of tires and tubes.
The com¬ for the purchase of 195,000 shares of the
requiring $4,280,000.
Treasury funds will
common
stock and offering price to the
pany has options for the purchase of a site
be used to make up. any balance, if neces¬
at Waco,
Texas,
but
no
definite plans public will be supplied by post-effective sary, while if proceeds from bond sales
amendment.
New England Public Service
have been made as to the type of building
are in excess of the $12,018,000 needed for
Co. has agreed to purchase The balance of
to be/constructed or as
to the equipment
redemption, such excess "will be added to
2,954 shares of common stock at $16.25 pel
to be installed.
Orders have been placed
the company's general funds.
mating $1,250,000.
the
general
,
public.
ever,
made
■
Incorporated
for
Securities
Insurance
filed
Underwriting—To
SERVICE
PUBLIC
VERMONT
CORP. ;
.
Form
INSURANCE' SECURITIES, INC.
collateral
,;
TUESDAY, NOV. 30
CENTRAL
plus ac¬
amend¬
,
exchange "of stock;!'
Registration Statement No.i2-5248. Form
/•/
/
named principal: under¬
dividends will be supplied by
dividends.
plus accrued
Purpose—To effect
Others will be supplied by amend¬
Offering—Price
Dec.
S-l. (11-4-43).
ment./';•','V. A'";';'../,''Acrued
about
ori. br
-
will be called for redemption
31, 1943, ats $108.75 per
for exchange
Underwriting—Kidder., Pea body & Co.,
Brothers ansbMnrst Boston Corp.
of New
York, and First Cleveland Corp;
writers^
5,10/
the
of
sale of. tires
automobiles, busses,
■'.< Lehman
of
Any shares
Series A stock not deposited
Series B stock plus $1 in cash.
trucks
and airplanes and other rubber goods.
tubes
and
will be
there
■
basis:
following
the
on
share- of 5.10/. Series A stock
delivered one share of 4.40/
each
For
Akron,
Ave,,
Englewood
Series. B,
4.40;V:
ing of stockholders on Nov.
Address-—1708
the
will
bonds series A, 6/
redemption price
privately to institutions
and
./:/■;•'
'
Offering—Company offers to the holders Insurance. Securities, Inc.
y Offering—At market.
of its cumulative preferred; stock, 5.10',e
The
,
Johns-
'' '
of
cumulative preferred
value $100 per share.
The divi-
par
Street,
(11-11-43).
SATURDAY, DEC. 4
changes of stock and to enlist,assistance
dealers hi obtaining such exchanges.
regis¬
tered 05,000 shares of
stock,
the
interest.
additional working capital,
Registration Statement No. 2-5250.
A-2.
■
.;;/.-/'/
F. Eberstadt & Co.
•? GENERAL TIRE
per
1
.
of subsidiaries
debentures
o'r
provide for
■to
.
"y- y
Business — Production; purchase,:- transnriss'on, distribution and sale of electricity,
Underwriting—Company has entered into
an
agreement ■ with V Mellon 1 Securities
Corporation and the First Boston Corpora¬
tion to use their'-best efforts to obtain ex¬
Town,; Pa,'-
/./ / .)■V,//•
,
V
Co.
B, $100 par value.,/.
Address—222
Levergood
stock will be received by
Registration Statement No. 5242.
-
the
stockholders.
the proceeds from the sale of
the company;
of
part
'such
of
C'.'y:;:.
has filed a
registration statement for 34,000 shares of
cumulative preferred; stock;; 4.40'7>: Series
Electric
Pennsylvania
'v/'"; ";':
sale
23
PENNS1LVAMA ELECTRIC CO.
•
the
serial
the
at
"
TUESDAY, NOV.
of
000
'
Offering—Price to the public will be
"supplied by amendment.
The names of the
selling stockholders will be: supplied by
selling
$1,200,000
serial
30-year
amount
To
amount, if
the company,
re¬
certain
principal and interest to matur¬
pay
as;
pany's
the
of
if the arrangements are not to his
,
the
such
of
following
be
of
plea to Robert E. Hannegan, Commissioner of Internal Rev¬
enue, asking the Treasury Department to modify its ruling
by .which
-■Underwriting—F. Eberstadt, New York
City, is named .principal underwriter, f......
Proceeds—Proceeds from
crued
of
A
i
stock will: go to
ity,
to
sale
amount
a
.
'
_
and
funds
the
to
and
face
and associates.
is twenty
amendment..
sale
issue
from
Commerce Association Asks Correction Of
preferred stock
5/
102/
1947
list of issues whose registration state¬
filed less than twenty days ago.
These issues
Following is
COMPANY
ELLIOTT
July 1,
Utah, and
days after filing (unless accelerated at the dis¬
A/;/;;/;.//). /////cretion of the SEC), except in the case of the securities of
Elliott Company has filed a registration
^statement for shares of common stock, S10
certain foreign public authorities which normally become
par value. ' The shares registered 'are issued and outstanding and are being sold
effective in seven days,
y-^'y^/y'y, ■.
by certain stockholders of the company.
These dates, unless otherwise specified, are as of 4:30
Address—Jeannette, Pa.
'//
".V'':
Business—Manufactures/ steam turbines,> P.M. Eastern War Time as per rule 930 (b). *
electric
generators
and
motors,
general
k
Offerings will rarely be made before the day follow¬
♦purpose heat exchangers, strainers, blowers^
etc,
•; V-■'/'
,■•'/'/',;/■ • •••'<•
ing.
yy'y
-y ^y.;y.d:-H; - :.Vy ;• 'y.. '-;-v'.';y,;:V: y,
■
of
first mortgage gold
due
southeastern
preferred stock (par $100) offered Nov. 16,
1943, at 8103 per share and div.. by Smith,
Barney & Co., McDonald-Coolidge & Co.
by amendment.
will be supplied
div. are also offered in exchange, share for
share,; for ,..outstanding
'
sale
the
Business—Is
Columbus, Piper, Jaffray & Hopwood, Minneapolis, - Chas, W. Scranton &
Co-V New Haven, Stroud & Co., Inc., Phila.,'
and Yarnall & Co., Phila,, 500 shares each.
Offered—45,000 shares of 5b' cumulative
industrial engines;.
and McDonald-Coolidge
York,
New
Rights expire 3 p.m. Nov, 22;
Un-'
subscribed shares; underwritten by Smith,;
new
com-'
redemption of company's
$6,763,400
principal amount
City, Utah.
pany,
and, at present, certain ordnance items.,
held.
Barney & Co. and Associates. '
Exchange Offer—60.000 shares
of
Address
Co.,
■'•preferred stock <no.par) at,$105 per share
in ration of 1 new share for each 5 shares
;
from
and
outstanding
Bonbrigb'
&
of. a
sale
and
ized
Rights—Common stockholders of record
are given
the right, to subscribe
»to
249,741 shares of $4 div. cumulative
♦
at,
,
Ohio.
botes,
To
sold
notes and other funds of the
company
be applied to the
-
Nov.- 10
5
be
Northwest¬
Co.
83,500,000
issue
$3,500,000
1943.'
of
Lynch,
Paine,
to
from
of
bonds due
bonds
York,
New
Hemphill, Noyes & Co.,
Co.,
■
are
Proceeds—Proceeds from
♦
//A':://;/;:
/
Co,,
amend¬
post-effective
■'
'
with
together
from
Insurance
1949-1953;
ceived
banks
amendment.
an
5,000
shares;
McDonald-Coolidge & Co.,
Cleveland,' 5,000; Shields & Co., New York,
Corp.,
'
1
&
Barney
by
serially
bidding pursuant to Rule U-50 of
the
Commission
and
price of bonds to
public will be supplied by post-effective
all of New York,
Dean Witer & Co., San Fran., 1,000 shares
each; Curtiss, House & Co., Fahey, Clark &
'
,
filed
Inc.,
supplied
Offering—Bonds
First
.
"
Products,
be
petitb'C
prefdrred stock offered Nov. 16, 1943,
at
$101 per
share and div, by Kidder,
Peabbdy; &
Co.,
Lehman Brothers;-."The
■
<10-27-43}.
ment.
.
duction,
proceeds,
received
Life
and sale of $3,500,000 face amount, of gen¬
eral mortgage serial bonds
of Utah, due
sub¬
has
engaged
company
terminated.
or
Mutual
for
on Nov,. 11
to its registration
.which lists, underwriters as fol¬
Smith,
Business—Is
Proceeds—Net
eral
amendment
statement
ern
will
The balance
connection
production
war
$3,500,000 to be
Col.
with
prior preference
in
a
lative
to
:
A-2
the
interest rate will be named by the bidders,
Address—401 North Main Street, Pueblo,
an operating public
utility
principally in the pro¬
transmission,
distribution,
and
sale of" electricity and is also engaged in
furnishing street railway and bus trans¬
portation service,.
Underwriting -- Names
of
underwriters
Registration Statement No. 2-52471 Form
:S-1.. (11-2-43). /
rata
the
stock
after
declined
stantially
common
the portion of the proceeds to be received
rights, to subscribe from the sale of 65,000 shares of preferred
to an aggregate of 249,741 shares of cumu¬
stock
which
would
have
been
used
for
lative
preferred - stock,
Series; A, in the such purposes will be added to the general
.ratio of one share,-for; each -five shares ■-funds. of the. company, /
;v;. //' Z:} Z':
then held at a price to be supplied later.
-Registration Statement No. 2-5243. Form
Such rights will expire at. 3 p.mi EWT on
S-.l < 10-29-43 ).
/,/' /A;,.;.; '■
.Nov, 22, 1943.
Company will offer, to the
Offered—65,000 shares of 41 aZ
cumu¬
-holders of its 60.000 shares of ,5%
pre¬
given pro
of
outstanding.
principally
operations
stock at the close hf business Nov. 10, 1943,
will ..be
presently
desired
is
plans for such construction and acquisition
may be postponed or abandoned and if so,
*//• Offering—Holders of record of
shares
25,660
are
stock
change in
advisable, the
$2.400,000,If
should
conditions
Offering—Price to the public will
be
supplied by ,amendment.,
Proceeds—Of the net proceeds, $2,694,■300 plus .an amount for accrued dividends,
will be used, for the redemption of all out¬
standing shares of $5 convertible prior
preference stock ot the company at 8105
per share plus accrued dividends.
There
'/
2019
Purcell
L.
Smith,
was
of the Wall Street Club.
Vnrlr
Pitx*
*
THE COMMERCIAL & FINANCIAL CHRONICLE
2020
Teletype
IIAnover 2-0050
N. Y, 1-971
Thursday, November 18, 1943
For Dealers
Merrimack Mfg. Co.
Firm Trading Markets
Subject
CUBAN SECURITIES
to prior sale
with
a
or
withdrawal,
small block of
we
are
stock
common
Moxie Co.
in touch
MEXICAN BONDS
of
all issues
FOREIGN SECURITIES
Laird & Co.
CARL MARKS & f,O. INC.
4
America's Oldest Family of
SECURITIES
FOREIGN
—
—
New York 4, N. Y.
INCORPORATED
4 5
TELEPHONE
Me., New Orleans, San Francisco,
Seattle, or for that matter in Buenos Aires, London, Zurich,
or
anywhere else in the world. The stock certificate that
one
dealer would deliver ^vould not be embellished with
gold, diamonds or other precious stones so that it would have
greater value than the certificate that would be delivered
by another dealer. Each would be exactly the same and
have equal value everywhere.
Does this not make it clear that it is quite simple for the
buyer of investment securities to protect himself, if he
chooses to exert himself to a slight decree, against dealers
who would exact too large a profit by going in for excessive
mark-ups?
of
business, generally
speaking, it is
equally AS DIFFICULT to determine at the time of pur¬
chase whether a merchant is endeavoring to exact an exor¬
bitant profit by adopting excessive mark-up practice AS IT
IS EASY to do so in the purchase and sale of securities. This
becomes obvious when you reflect on the fact that while one
can
get a price on a suite of bed room furniture, a Chinese
rug, a diamond ring, etc., from a number of stores or mer¬
chants, one has no way of determining, unless he happens
to be an expert, whether the quality of the merchandise of¬
fered in each
case
is the
REOTOB
House
to term "riskless transactions"
or
cases
on
what they choose
where
a
York
Security
STREET,
philadelphia
2-3600
House
begin
debate
on
Monday
on
the
overhead I must carry to render the
type
of service which
keeps you coming to me year after year, not to mention the
benefits that accrue to
you of my knowledge of the busi¬
ness."
v
'■
\v
So
the
we
ask you,
how
distinction between
can anyone
the
successfully
securities business
argue that
and other
lines of business demonstrates the need for the NASD
anyone
or
Bell
new
5
COUPONS MISSING
Teletype
yore
1-576
When
the
takes
House
there
up
is likely to
the
be at¬
for revisions in the pro¬
posed increases in liquor levies
and postal rates.
However, the
tempts
legislation
formally re¬
under
be
may
to the House floor
rule—as
closed
a
has
the
been
in several
previous tax bills
permit only
amendments offered by the Com¬
case
would
—which
the
Following House passage
bill, the Senate Finance
Committee will hold hearings.
When the House group was fin¬
each
sonal
increased
dependent;
taxes
incomes
on
per¬
above
$3,000 a year, along with a $25,000
ceiling on net income, after taxes,
an
increase
rate
from
kqthe corporate tax
40%
to
50%'
lowered
Committee
follow,
according
the Associated Press:
X.
Merger
of
40
N.
Y.
Security Dealers
Ass'n
Exchange PI., N. Y. 5, N. Y.
Phone
DI?by 4-4832
Teletype n.
Y.
1-1779
INDIANA
income
adjusting
tax
6
to
10%, and
some surtaxes.
provisions
the
from
rate
are
rolls
Special
made to retain
on
9,000,000 per¬
sons
now
paying Victory levies
but whose earnings are not large
enough to be affected by the reg¬
ular
income
tax.
For
these
the
income tax will approximate their
former net Victory payments.
2.
Boost
6s-1952
L. D. SHERMAN & CO.
j Members N. Y. Security Dealers
30
Pine
some
postal rates and
Ass'n.
Street, New York
5
Tel. WHitehall 4-7970 Tele. NY
1-2218
some
BUY WAR BONDS
cess
profits, to pick up
000 additional revenue.
4. It would add
$616,000,-
$140,000,000 by
disallowing
sonal
as deductions in per¬
tax
returns sums
income
excises, to bring in about paid on excises, such as gasoline,
$1,375,000,000 additional revenue cigaret and liquor taxes.
5.
The law governing
—around
$479,000,000 of which
renego¬
hike
would
from
come
consumers
of
liquor, beer and wine.
After
about-facing
tiation of
ery
four times,
war
contracts for
recov¬
of excessive profits would be
revised drastically.
The Commit¬
provided that contractors dis¬
the Committee decided to put the
tee
liquor tax
a gallon, com¬
present $6 rate.
The beer tax would be jumped
from $7 to $8 a barrel and wine
satisfied with
increased all
States,
are
at
with
pared
no
$9
the
along the line. There
increases in cigarette or
excess profits find¬
ings of Government renegotiation
boards have the right of
appeal to
the
Tax
Court
of
the
United
affecting
renegotiations
had after April 28, 1942.
A previous item on the tax bill
other tobacco excises.
The bill would raise the in-town
letter rate from 2 cents to
3, leav¬
ing the out-of-town charge at 3
cents; jump the air mail rate from
6 cents to 8 cents, double thirdclass
mail
rates,
insured
and
increased taxes C.O.D. mail and increase charges
for estates and gifts; elimination for registered mail and money
No change is made in
of the option for the computation orders.
of excess profits on the average- second-class rates or special de¬
earnings methods; elimination of livery charges.
3. It would raise the excess prof¬
mandatory joint returns, the per¬
centage depletion allowances for its tax on corporations and readoil and mining properties and for just the method of computing exexemptions
LIMESTONE
to
:
Victory tax
with the individual income levy,
picking up $12,000,000 in the proc¬
ess by repealing the Victory
levy
and raising the normal personal
appeared
page
in
our
Nov.
11
issue,
1922.
Situation Wanted:
and
a limit on the profit a
stock or bond unless he is
dealer may take
prepared to advo^ the people of our great country the
cate that the same
thing be done in the case of every other world.
line of business, from shoe laces to doctor's fees. In other
In conclusion we
a
Members
the
else putting
in the sale of
S. H. JUNGER CO.
approved by the Ways and Means
measure
ported
MUTILATED
Inquiries invited
Monday
22).
consignment but he does not say: "Now, tute for the Victory tax; restora¬
tion
of personal
exemptions to
So, I did not have to gamble on being able to
$750 for single persons, $1,500 for
sell this ring or rug at a
profit and therefore this is a risk- married couples, and $400 for
price that will
enable me to remain in business (and serve
you again, I will
ask a price that will yield me
only^a 5% profit which profit
will not begin to take into consideration all of the hidden
YORK
new
(Nov.
comes.
dealer gets
you a
NEW
telephone
$2,142,900,000 tax bill is scheduled
The wartime revenue measure,
which was approved by the House Ways and Means Committee on
Nov. 11, calls principally for higher postal rates, increased excises
on so-called luxury items and an increase in the
corporation excess
profits tax.
The Committee bill, designed to raise about one-fifth
of the $10,500,000,000 sought
the Administration, makes virtu¬ the taxation of
tax-exempt secur¬
ally no changes in the taxes on ities.
individual
The major provisions of the bill
and
corporation in¬
to
or rugs on
charging
1-1397
BIDS MADE ON BONDS WITH
'■
Group Voles $2,142,909,000 Tax Dill—
Mr. So and
less transaction and instead of
V
Association
Enterprise 6015
an order to
buy a security that he does not have on his ishing its work on the bill, eight
national organizations, including
shelf and implying that in such instances he should act as
the Congress of Industrial Organ¬
an
agent or broker and reveal to the customer his cost price izations, issued on Nov. 10 a state¬
plus his profit. The whole idea, of course, being to whittle ment assailing the proposed meas¬
ure
as
failing to tax adequately
the profit of the dealer down to next to
nothing in such cases.
"high personal incomes" and "un¬
Now a merchant in another line of business does not
paralleled corporate profits." The
turn around and become a broker or
agent simply because organizations suggested a sevenhe does not have the exact merchandise in stock at the point program as follows:
Elimination of a special levy on
moment that some customer wants. A diamond or
rug mer¬ low-income
groups
which
the
chant, unable to sell a customer from stock on hand, will get Committee approved as a substi¬
rings
Dealers
Debate On Floor To Start
of
harping
HAnover 2-8780
Y.
OR
mittee.
same.
Now the SEC has also been
New
NASSAU
Portland,
lines
n.
Kobbe, Gearhart & Company
(Continued from first page)
other
Y. Security Dealers Ass'n
25 Broad St., N.Y.
Teletype
©f Profits ©n Transactions In Securities
In
1780
AFFILIATE: CARL MARKS & CO. Inc. CHICAG0=^=
Members
City,
Members N.
Since
ileel Does Hot Exist For Forced Limitation
York
M. S. WlEH & Co.
Brandy Distillers
SPECIALISTS
50 Broad Street
CHICAGO TRADER
WANTS CONNECTION
15
years
deferred.
now
envy
of the whole wide
.
would stress the fact that
;'v
do not
Draft
and Jan. 1st.
Salary and
bonus arrangement.
;
we
experience.
Available between
words, in effect advocate the wisdom of kicking over our condone the
taking of excessive profits by those in any line
entire system of free enterprise which has made the lot of of business but this does not mean that we feel America
It must not be forgotten that in the SEC
greatest collection of zealots and "self-styled"
reformers ever brought together under one roof.
Nothing
ever suits these reformers.
They want change for change's
sake. The SEC boys seem to be actually jubilant when they
uncover a case of unethical business procedure on the part
of a dealer and immediately make the fact known from the
house tops. They want the world to know that the securities
business, without which this country would not be the great
country it is, isn't actually a one hundred percent Garden of
Eden, so they can go in for still more economic experimenta¬
tion. But it never can and never will be, no matter how-
Address, Box CI, Financial Chronicle
Suite 2349,135 So. La Salle St.,
Chicago 3
should be remade.
EAGLE
Page
Bank and
Insurance Stocks......... .2015
Calendar of New Secur. Flotations. .2019
LOCK
Canadian
Securities
Investment
Bought
——
Sold
—
Quoted
Our
71
Exchange
Broadway N. Y. BOwIing Green 9-7027
Yeliitypg 2TY l-Sl
Trusts
,.2013
Reporter
on
Governments..... .2011
Utility Securities,........... 1995
Railroad Securities.
Real
.2016
Reporter's Report.. .2018
Public
HAY, FALE5 & CO.
v.,.. .2010
Municipal News and Notes.
Our
Members New York Stock
we
INDEX
'
Estate
Tomorrow's
Says
'..
1........... 1993
Securities.............. 1994
Markets—Walter Whyte !
.........2015
have the
many rules
are human
and regulations these bureaucrats devise. People
beings and there are a few bad apples in every
barrel—and in
every
business.
Empire Sheet &
Tin Plate
First
Mortgage 6s, 1948
Memorandum
available
upon
request
Hill, Thompson & Co., Inc.
Markets and Situations
120
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER